Roundup: S.Korea's current account surplus posts 10.36 bln USD in May

South Korea's current account surplus posted 10.36 billion U.S. dollars in May, the largest monthly figure in 2016, central bank data showed on Friday.

The current account balance, the broadest measure of cross-border transactions, came in at a surplus of 10.36 billion dollars in May, staying in black for 51 months since March 2013, according to the Bank of Korea (BOK). It marked the longest monthly surplus in the country's history.

The surplus tumbled from 10.09 billion dollars in March to 3.37 billion dollars in April, before jumping to 10.36 billion dollars in May.

The May rebound came as trade surplus increased from 9.56 billion dollars in April to 10.74 billion dollars in May amid the faster fall in imports than exports.

Exports, which account for about half of the economy, shrank 2.4 percent from a year earlier to 42.43 billion dollars in May, while imports slumped 8.6 percent to 31.69 billion dollars.

The falling pace of exports was the slowest in 11 months, helping contribute to the expanded current account surplus last month. The imports fall was much lower than an 18.7 percent drop in April.

A BOK official said that both exports and imports have been declining at a slower clip, predicting such trend continuing in the future.

By item, shipments of display panels and oil products tumbled 34.8 percent and 25.5 percent each in May, but heat-process materials exports increased 5.5 percent.

Services account balance, which measures the flow of travel, transport costs and royalties, logged a deficit of 1.14 billion dollars in May, down from a 1.62 billion-dollar deficit in April.

Construction account surplus expanded from 550 million dollars in April to 840 million dollars in May, while the travel account deficit reduced from 530 million dollars to 250 million dollars.

Intellectual property rights deficit amounted to 450 million dollars, and transport account deficit reached 160 million dollars in May.

Primary income account, which gauges investment and interest income as well as salary, posted a surplus of 910 million dollars in May. Dividend income turned from a deficit of 4.51 billion dollars in April to a 470 million-dollar surplus in May, while interest income account posted a surplus of 460 million dollars.

Financial account, which measures cross-border capital flow without transactions in goods and services, registered an outflow of 8.93 billion dollars in May.

Direct investment posted an outflow of 720 million dollars in May as local companies built more factories and facilities in foreign countries.

Portfolio investment, which includes stock and bond transactions, recorded an outflow 4.36 billion dollars as foreign investors reduced holdings of domestic securities.

Other investment, including trade credit and foreign debts, logged an outflow of 3.92 billion dollars as local financial institutions lent money rather than borrow foreign funds. Endit