ed Record surplus

Korea posted a record current account surplus of $70.7 billion last year. The figure represented a 47-percent jump from the previous record of $48 billion in 2012, and almost tripled the central bank’s initial forecast of $25 billion in October 2012.

Exports were the major contributor, reaching an all-time high of $570.9 billion, up 3 percent, while imports fell 0.8 percent to $510.2 billion. The trade surplus for goods came in at $60.7 billion. Stable crude oil prices, coupled with lower global commodity prices, helped Korea reap the huge surplus.

All these figures are welcome as a reminder that our economic fundamentals remain strong, buoyed by increased competitiveness in the manufacturing sector. It’s also encouraging that Korea is expected to post a current account surplus of more than $50 billion this year despite the spreading crises in emerging economies.

Some experts are concerned about a recession-type surplus, citing a fall in imports in terms of value. But this speculation appears premature, considering that imports rose 4.3 percent in terms of volume last year.

However, the record surplus should not mask the down side in our economy. More than anything else, the external economic environment is quite precarious because of the looming dark cloud in emerging markets in the aftermath of the U.S. Federal Reserve’s continuous tapering of quantitative easing.

True, Korea sets itself apart from these crisis-hit countries, given its huge current account surplus and enough foreign exchange reserves ― $346.4 billion at the end of last year.

Nonetheless, the greater confusion in the global financial markets could shake our real economy as well as the local financial markets at any time, taking into account that the Korean economy depends too heavily on a handful of large conglomerates and China.

No less worrisome is that the huge surplus may prompt Seoul to be a target of a fresh currency war with foreign countries. We in particular take note of the fact that Washington expressed concern about Seoul’s alleged intervention in the currency market late last year.

The record surplus also may turn into a deficit in accordance with changes in the external economic environment ― rising oil and commodity prices. This is why Korea should focus more on boosting domestic demand. The government ought to come up with viable measures to stimulate domestic consumption and investment, given that it pledged to give top priority to activating local markets.

What’s needed is to respond calmly to the latest global economic plight by being neither complacent nor apprehensive, as Strategy and Finance Minister Hyun Oh-seok pointed out.