Mon, 02 Oct 2023

S. Korea logs current account deficit in April

09 Jun 2023, 16:44 GMT+10

SEOUL, June 9 (Xinhua) -- South Korea logged current account deficit in April due to a dividend payment to foreign investors and a travel account deficit, central bank data showed on Friday.

Current account balance, the broadest measure of cross-border trade, posted a deficit of 790 million U.S. dollars in April, after recording a surplus of 160 million dollars in March and deficits of 4.21 billion dollars in January and 520 million dollars in February each, according to the Bank of Korea (BOK).

Trade surplus for goods came to 580 million dollars in April, turning into black in seven months since last September.

Export declined 16.8 percent from a year earlier to 49.11 billion dollars in April, while import dwindled 13.2 percent to 48.53 billion dollars.

Services account deficit stood at 1.21 billion dollars in April, down from a deficit of 1.9 billion dollars in the previous month.

Travel account balance continued to record deficit as more South Koreans went on overseas trips amid moderated concerns about the COVID-19 pandemic.

Primary income account, which includes monthly salary and investment income, logged 90 million dollars in deficit on the back of the dividend payment to foreign investors.

Dividend income account registered a deficit of 550 million dollars in April, shifting into red from a surplus of 3.15 billion dollars in the prior month.

Financial account, which measures cross-border capital flow without transactions in goods and services, recorded a net inflow of 4.82 billion dollars in April.

Overseas direct investment by domestic residents rose by 980 million dollars, but foreign direct investment in South Korea reduced by 740 million dollars.

For the portfolio investment, which includes stock and bond trading, overseas investment by local residents, climbed by 1.75 billion dollars, while foreign investment in local stocks and bonds jumped by 5.38 billion dollars.

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