By Kang Seung-woo
Korea’s current account surplus rose sharply in February from the previous month on the back of strong exports and decreased overseas travel, the central bank said Tuesday.
According to the Bank of Korea (BOK), the current account surplus amounted to $1.18 billion (1.31 trillion won), up from a revised surplus of $154.7 million in January. The current account is the broadest measure of trade that reflects the movement of goods and services.
The sharp growth helped the country extend its surplus streak to 12 months thanks to solid exports, which account for more than 50 percent of the Korean economy.
The BOK said the nation’s current account is expected to register a similar or even larger surplus in March because of continued brisk exports.
“In March, dividend payouts for overseas investors usually rise, and a surge in oil prices seen in February will begin to affect import bills. But robust exports are expected to offset the impact of such factors,” Yang Jae-ryong, director of the BOK’s monetary and financial statistics division, said at a press conference.
The country’s balance of goods reached a surplus of $1.58 billion in February, compared with a revised $1.56 billion in January.
The growth of exports and imports slowed due to the Lunar New Year holiday that cut working days.
On a daily basis, exports reached a record high of $2.03 billion, according to the BOK.
“Local companies may obtain some benefits from Japan's earthquake, which may make Korea’s export figures for March look better,” Yang said.
Exports gained 19.6 percent year-on-year to $37.2 billion in February and imports expanded 16.7 percent to $35.6 billion.
The service account, which includes outlays by Koreans on overseas trips, posted a deficit of $569 million, down from $1.64 billion in January.
The travel deficit stood at $513 million, narrowing from $1.16 billion.