Lee Dong-won, head of the Bank of Korea's section on financial statistics, on July 7 gives a briefing on the nation's international balance of payments in May. (Yonhap News)

By Lee Jihae

The current account in May returned to the black in a month.

The rise of dividends from overseas subsidiaries fueled a goods balance surplus for the second consecutive month, leading to the surplus.

The Bank of Korea on July 7 said preliminary data on the international balance of payments found that the current account surplus in May was USD 1.93 billion (KRW 2.5 trillion).

The figure returned to the black a month after posting a deficit of USD 790 million in April.

The goods balance saw two straight months of surplus of USD 580 million in April and USD 1.82 billion in May.

Exports fell 14.7% or USD 9.06 billion to USD 52.75 billion from May last year.

Imports reached USD 50.93 billion, down 13.5% or USD 7.93 billion, with those of raw materials falling 20.3%.

The service account suffered a deficit of USD 910 million, up USD 760 million from USD 150 million in May last year but smaller than the red figure of USD 1.21 billion in April this year.

The primary income account went from minus USD 90 million in April to USD 1.42 billion in the black thanks to higher dividends from corporate affiliates abroad. The dividend income account scored a major reversal within a month from a deficit of USD 550 million to a surplus of USD 900 million.

The transfer income account saw a deficit of USD 390 million.

Financial account net assets rose USD 2.65 billion.

Direct investment abroad by Koreans grew USD 3.17 billion, while that in Korea by foreign investors rose USD 1.07 billion.

Investment by Korean nationals in overseas stocks rose USD 1.54 billion, while that by foreign nationals in Korean shares did far better by jumping USD 13.5 billion.

The growth in foreign buying of domestic stocks was the highest since the government began compiling the statistic in January 1980.

jihlee08@korea.kr