South Korea’s current account surplus hits three-month low in July

South Korea’s current account surplus fell to a three-month low in July, partly owing to sluggish exports.

South Korea posted a current account surplus of $8.71 billion in July, down from the downwardly revised USD12.06 billion surplus in June (originally USD12.17 billion), data released by the Bank of Korea showed Thursday.

The financial account registered a USD9.39 billion increase in net assets in July. The goods account surplus narrowed to USD10.81 billion, compared to USD12.71 billion in June. Further, the services account deficit increased to USD1.53 billion, from USD1.38 billion the month before, owing to deterioration in the travel account.

In addition, the primary income account surplus narrowed from USD1.26 billion the previous month to USD0.05 billion, in line with a decrease in income on equity. The secondary income account witnessed a deficit of USD0.62 billion.

In the direct investment, there was a USD2.20 billion expansion in assets, down from that of USD2.82 billion in June, while liabilities increased by USD1.25 billion, an amount similar to that in the previous month.

Moreover, portfolio investment assets grew by USD4.62 billion in July, after their USD3.98 billion growth in June, while portfolio investment liabilities reversed to a USD4.53 billion increase from a USD2.22 billion decline the month before.

Meanwhile, financial derivatives contracted by USD0.48 billion. In the other investment, there was a USD4.63 billion increase in assets and a USD2.24 billion decrease in liabilities. Reserve assets expanded by USD1.97 billion.