The Bank of Korea's preliminary data on the international balance of payments released on May 10 said March saw a current account surplus of USD 270 million (KRW 358.2 billion). Shown are containers on March 1 piled at the wharfs of the terminals Gamman and Sinseondae at the Port of Busan. (Yonhap News)

By Lee Jihae

March saw a current account surplus for the first time in three months.

The Bank of Korea's preliminary data on the international balance of payments released on May 10 said the month saw a current account surplus of USD 270 million (KRW 358.2 billion).

The surplus margin was USD 6.5 billion less than USD 6.77 billion in the same month last year.

January saw a current account deficit of USD 4.21 billion and February USD 520 million, the first time in 11 years for the figure to finish in the red for two consecutive months.

The first quarter saw a current account deficit of USD 4.46 billion, down USD 19.34 billion from a surplus of USD 14.88 billion year on year.

March's current account turnaround was thanks to the large surplus of USD 3.65 billion in the primary income account. The dividend income balance finished USD 3.15 billion, up USD 2.86 billion year on year, in the black as dividend incomes rose from overseas investments by domestic companies.

The primary income account saw its surplus streak continue since January last year, when a non-inclusion of income system was adopted to provide corporate tax breaks on profits earned abroad that are remitted to Korea. 

The goods and service accounts, two major factors affecting the current account, continued to see deficits.

The goods balance suffered its sixth straight month of deficit with USD 1.13 billion but the figure was drastically lower than USD 6.69 billion in the same month last year. The red figure was also lower than the record highs this year of USD 7.32 billion in January and USD 1.3 billion in February.

Exports reached USD 56.4 billion, down 12.6% or USD 8.16 billion from March last year.

The global economic slowdown saw the nation's exports of semiconductors drop 33.8% on a customs clearance basis, while those of chemical industry products decreased 17.3%, petroleum products 16.6% and steel goods 10.8%. By region, shipments to China fell 33.4%, Southeast Asia 23.5%, Japan 12.2% and the European Union 1.2%.

Those of passenger cars, however, surged 65.6%. 

Imports dipped 2.5% or 1.47 billion to USD 57.72 billion.

Imports of raw materials dropped 10% including gas and oil products, which declined 25.2%, petroleum products (19.1%) and crude oil (6.1%). Those of capital goods fell 2.4% overall including semiconductors (10.8%), while consumer goods dipped 1.2% like grains (17.3%) and electronic appliances (3.5%).

March also suffered a service account deficit of USD 1.9 billion, down from a surplus of USD 170 million year on year. This means the figure plummeted USD 2.08 billion in a year to finish in the red.

The service account thus saw its 11th straight month of deficit since May last year.

jihlee08@korea.kr