SEOUL, March 06 (AJP) - South Korea extended its current-account surplus streak to a 33rd consecutive month in January, though the black figure narrowed from the record level seen the previous month as investment in overseas securities cooled from the frenetic pace of late last year.
The current account surplus reached $13.26 billion in January, narrowing from $18.7 billion in the previous month, according to the Bank of Korea (BOK) on Friday.
The robust surplus was fed by exports that surged 30 percent on year to $65.51 billion, more than doubling the pace of the 13-percent annual gain in the previous month.
Imports also rose 7 percent from a year earlier to $50.34 billion, faster than the 1.7-percent increase recorded a month earlier.
The services account remained in the red with a $3.8 billion deficit, largely weighed down by outbound travel. The travel account logged a deficit of $1.74 billion.
The primary income account posted a $2.72 billion surplus. Investment income totaled $2.86 billion, down from $4.9 billion in the previous month as dividend income narrowed to $2.3 billion from $3.7 billion.
The secondary income account recorded a $830 million deficit as outbound remittances from South Korea outpaced inflows from abroad.
Overseas investment by South Korean residents rose $13.46 billion, easing slightly from $14.37 billion in December. Their investment still dwarfed foreign investment in Korean securities, which increased $4.69 billion — mostly in bonds — slowing from $5.68 billion the previous month.
Reserve assets — assets held by state authorities to support the currency and meet foreign obligations — decreased by $4.83 billion, widening from a $4.44 billion decline a month earlier.
The trade balance also revealed a heavy reliance on a few key sectors. Semiconductor exports skyrocketed 102.5 percent year on year to $20.69 billion, more than doubling in value. Shipments of information and communication devices, including smartphones, surged 66 percent to $4.48 billion.
Automobile exports rose 19 percent from a year earlier to $5.74 billion, underpinned by record January sales in the United States by Hyundai Motor and Kia, driven by high-margin models such as hybrids.
Ship exports fell 1.5 percent to $2.36 billion, the third consecutive monthly drop since the sector posted a 135-percent jump in October.
Exports to the United States jumped 29.4 percent to $12.0 billion, sharply accelerating from 3.7 percent growth in December and a contraction in November. Shipments to China also surged 46.8 percent to $13.51 billion, up from 10-percent growth in December.
Imports also reflected skewed activity in Korea's industrial sector. Purchases of precision machinery jumped 31.6 percent on year to $6.81 billion, with semiconductor manufacturing equipment accounting for nearly half of that total at $2.94 billion, a 61.7-percent surge.
Imports of raw materials broadly declined. Crude oil imports fell 12.8 percent from a year earlier to $6.19 billion, while gas imports dropped 12.5 percent to $2.7 billion.
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