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Korea's current account surplus amounted to $28.21 billion in 2010, its fourth-highest annual total ever, thanks to robust exports in semiconductors and automobiles, the Bank of Korea (BOK) said Thursday.

However, the figure was smaller than the $32.79 billion the country achieved in 2009 and fell short of the central bank's full-year target of $29 billion.

For December, the country's current account surplus reached $2.11 billion, up slightly from the previous month's $1.93 billion. Exports, which account for more than 50 percent of the Korean economy, provided the strength that allowed Korea's current account to stay in the black for the 10th straight month and 13th consecutive year.

The central bank predicted another current account surplus for January, with the country expecting to maintain its pace in exports amid an improving outlook in world markets. The current account reflects Korea’s balance of trade with other nations.

"The size of the 2010 surplus was smaller than what we had been expecting and this was because the payout of interim dividends for November proved to be larger than anticipated. The deficit in the service account widened, although copyright payments, advertisement payments and other business-related spending overseas were also linked to the growth in domestic manufacturing output or exports," said Lee Young-bog, an official from the central bank's balance of payment statistics team.

"Imports continue to rise on high oil prices and larger energy consumption for the winter season, but the momentum in the exports of cars, ships and other industrial areas predicts that the current account surplus will be extended in January."

Korea's balance of payments for goods in 2010 reached $41.9 billion, up from the $37.87 billion in 2009, representing the country's highest total ever, thanks to robust exports, which reached a record $464.3 billion last year, the BOK said.

For December, the goods balance marked a surplus of $3.68 billion, up from a revised $3.17 billion the previous month.

The service account deficit widened to $1.15 billion in December from November's $304.5 million due to larger spending by Koreans on overseas travels.

The capital and financial account, covering cross-border investments, posted a net outflow of $336.2 million in December, compared with a net outflow of $2.19 billion in November.


By Kim Tong-hyung(thkim@koreatimes.co.kr )



# The Korea Times [MAY 2 2011]