South Korea incurred a deficit in its prized current-account in August as the tumble in the Korean won worsened trade deficit as well as the services balance, further building the downside for the battered currency.

According to the Bank of Korea Friday, the country’s current account delivered a deficit of $3.05 billion in August, compared with $7.44 billion surplus a year ago, largely owing to widening deficit in the trade balance.

The cumulative surplus from January to August came to $22.52 billion, more than halved from $56.9 billion a year ago.

The BOK projected the balance to return to a surplus in September as trade deficit eased last month.

The U.S. dollar added 10 won to finish Friday at 1,412.4 won. The Kospi ended 0.2 percent down at 2,232.82 and Kosdaq 1.07 percent lower at 698.49.

The balance of goods was in the red of $4.45 billion, widening from a deficit of $1.43 billion in July and in a stark contrast against a surplus of $6.03 billion in the same period last year.

Exports rose 7.7 percent to $57.28 billion in August, overwhelmed by imports surge of 30.9 percent to $61.73 billion.

The value of imports in raw materials jumped 36.1 percent on year, with coal imports surging 132.3 percent, 117.1 percent, and crude 73.5 percent.

The services account reversed to a deficit of $770 million from a surplus of $290 million in the previous month and $840 million a year ago on softening shipping prices and increases in overseas travel.

The surplus in the transportation thinned to $1.23 billion from $1.34 billion a year ago as the Shanghai Containerized Freight Index (SCFI) fell 19.4 percent on year in August.

The deficit in the travel account widened to $970 million from $610 million amid reopening of borders from waned virus threat.

The primary income account, which tracks wages of foreign workers and dividend payments overseas, posted a surplus of $2.24 billion in August, sharply up from $640 million a year ago on surge in dividend income by $1.38 billion.

Net assets in financial account dwindled by $610 million

Direct investment of Koreans overseas increased $3.6 billion while that of foreigners in Korea added $1.81 billion.

Overseas securities investment by Koreans increased $610 million while foreign stock investment surged $2.59 billion won.

By Hye-seung Seo

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]