Roundup: S.Korea keeps current account surplus for 43 months

South Korea kept the longest monthly trend of current account surplus for 43 months in a row, but it came on the back of faster decline in imports than exports, boosting concerns about the so-called "recession-type" surplus, central bank data showed Monday.

Current account surplus amounted to 10.61 billion dollars in September, up 2.21 billion dollars from a month ago and 3.16 billion dollars from the same month of last year, according to the Bank of Korea (BOK).

The current account balance stayed in the black for 43 months in a row since March 2012, the longest surplus in the country's history.

During the January-September period, the current account surplus came in at 80.63 billion dollars, up from 61.99 billion dollars for the same period last year.

The surplus trend stemmed mainly from faster fall in imports than exports, bolstering worries about the so-called "recession-type" surplus trend.

Exports, which account for about half of the economy, retreated 10.8 percent from a year earlier to 45.27 billion dollars in September, while imports tumbled 23.2 percent to 33.21 billion dollars.

Trade surplus for goods reached 12.06 billion dollars in September, up from 8.89 billion dollars in the prior month and 7.45 billion dollars a year earlier.

The "recession-type" surplus is worrisome especially for the export-driven economy as the continued surplus puts an upward pressure on the South Korean currency to the dollar and worsens export conditions further.

Deficit in the service account balance, which measures the flow of travel, transport costs and royalties, increased to 1.73 billion dollars in September from 1.34 billion dollars in August.

Among the service account items, travel account deficit reduced from 1.06 billion dollars in August to 0.71 billion dollars in September, but costs for the usage of intelligence property rights recorded a deficit in September after logging a surplus in the previous month.

Primary income surplus, which includes monthly salaries and investment income, declined from 950 million dollars in August to 790 million dollars in September due to an increase in dividend payment.

Financial account, which gauges cross-border capital flow without transactions in goods and services, logged an outflow of 10.6 billion dollars in September, up from an outflow of 9.15 billion dollars in August.

Outflow in direct investment soared from 0.43 billion dollars in August to 4.66 billion dollars in September due to a rise in overseas direct investment among local residents and a turn into net outflow in foreign direct investment into South Korea.

Outflow in portfolio investment, which includes stock and bond transactions, expanded from 2.54 billion dollars in August to 4.28 billion dollars in September as local investors increased purchase in foreign securities.

Other investment account, including trade credit and foreign debts, registered an inflow of 400 million dollars in September, a shift from an outflow of 8.45 billion dollars in August as local financial institutions repaid foreign debts rather than refinance them. Enditem