CA surplus in Jan. stands at $680 million

The nation posted a $680 million current account surplus in January, which was regard as a favorable start to the year. According to statistics unveiled by the Bank of Korea (BOK) Monday, the figure marked a decline from $560 million the previous month but an increase from $390 million in the same month last year.

Considering that seasonal factors typically boost the current account surplus at year-end, BOK officials said the nation could easily attain its goal of a surplus this year. BOK had estimated the surplus level to remain at last year`s level of $4.5 billion but recently adjusted the figure to $7 to 8 billion.

The surplus in the merchandise balance amounted to $490 million, down $1.21 billion from the previous month, but the income balance registered a surplus of $300 million, contributing to an improvement in the nation`s balance-of-payment position. The service balance was $190 million in the red, but the shortfall shrank $260 million from the previous month.

A massive foreign capital inflow of $2.35 billion was introduced during the surveyed period but the capital balance posted a net outflow of $1.44 billion, mainly due to the early repayment of bailout funds to the International Monetary Fund (IMF) and payment of trade-related credit and loans owed by banks.

[Yonhap]