S. Korea’s current account surplus hits 13-month high

South Korea’s current account surplus rose to its highest level in 13 months in November as exports of petrochemical goods and cars remained firm, the central bank said Thursday.

The current account surplus reached US$5.05 billion in November, up from a revised $4.13 billion the previous month, according to the Bank of Korea (BOK). The current account is the broadest measure of cross-border trade.

The November data marked the largest surplus since the $5.49 billion tallied in October last year.

The current account has remained in the black for the 21st straight month on the back of exports, which account for about 50 percent of Asia’s fourth-largest economy.

In the first 11 months of this year, the combined surplus amounted to $24.2 billion. The BOK revised its yearly surplus target to $27.2 billion for this year.

In October, South Korea posted a current account surplus, primarily because imports fell on-month at a faster pace than exports amid the global slowdown. But the country’s overseas shipments remained firm in November, withstanding developments in the eurozone and global economic uncertainty.
The eurozone debt crisis and the dimmer global economic outlooks, however, are blurring prospects for the export-dependent South Korean economy for next year. The BOK puts its 2012 current account surplus at $13 billion.

South Korea’s goods balance posted a surplus of $4.49 billion in November, up from a revised $3.55 billion in October, the central bank said.

Exports rose 12.6 percent on-year to $47.1 billion and imports gained 10.4 percent to $42.6 billion.

The service account, which includes outlays by South Koreans on overseas trips, posted a surplus of $357.2 million last month, up from $2.8 million the previous month.

The primary income account, which tracks wages for foreign workers and dividend payments overseas, logged a surplus of $445.6 million in November, down from $643.5 million tallied in October.

Meanwhile, the capital and financial account, covering cross-border investments, posted a net outflow of $6.63 billion in November, larger than the net outflow of a revised $4.5 billion in October, the central bank said.