Roundup: S.Korea posts third-largest current account surplus in March

South Korea posted the third-largest current account surplus in March, but it came as imports reduced at a faster pace than exports, boosting concerns about a so-called recession-type surplus, central bank data showed Monday.

Current account surplus was 10.39 billion U.S. dollars in March, logging the third-biggest in the country's history except a surplus of 11.32 billion dollars in November 2014 and 11.11 billion dollars in October 2013, according to the Bank of Korea ( BOK).

The March figure was up 41.9 percent from the same month of last year and up 3.95 billion dollars from a month earlier.

The current account balance has stayed in black for 37 straight months since March 2012, coming close to the longest surplus trend of 38 months recorded between June 1986 and July 1989.

The BOK estimated this year's current account surplus at the new record high of 96 billion dollars, citing cheaper oil. The country kept a record-breaking surplus trend with 81.15 billion dollars in 2013 and 89.22 billion dollars in 2014.

The surplus trend came amid a reduction in both exports and imports, indicating the recession-type surplus. Such surplus put upward pressures on the South Korean currency versus the dollar, hampering price competitiveness of exporters.

The local currency appreciated 2.8 percent this year alone, ranking third among 32 major global currencies except the Swiss franc and the Taiwanese dollar.

Imports reduced at a faster pace than exports on the back of lower crude oil prices. Exports slid 8.4 percent from a year earlier to 49.57 billion dollars in March, and imports tumbled 16. 8 percent to 38.36 billion dollars.

Trade surplus for goods was 11.21 billion dollars in March, up from 7.32 billion dollars in February and 7.97 billion dollars in March 2014.

Service account balance, which measures the flow of travel, transport costs and royalties, posted a deficit of 970 million dollars in March, down from a deficit of 2.06 billion dollars in February. The fall was due to an improved intellectual property rights balance.

Surplus in primary income account, which includes monthly salaries and investment income, narrowed from 1.4 billion dollars in February to 530 million dollars in March on the back of a rise in dividend by local companies.

Financial account, which gauges cross-border capital flow without transactions in goods and services, logged an outflow of 11.02 billion dollars in March, up from an outflow of 5.54 billion dollars.

Direct investment registered an outflow of 2.39 billion dollars in March, up from an outflow of 1.99 billion dollars in the previous month.

Portfolio investment, which includes stock and bond transactions, recorded an outflow of 1.21 billion dollars in March, down from a 3 billion dollar outflow in February.

Other investment account, including trade credit and foreign debts, posted an outflow of 4.62 billion dollars in March, up from an outflow of 370 million dollars in February. Endi