South Korea’s current account surplus hit a 12-month high in October as imports dipped in double-digit numbers on reduced demand and decline in travel deficit.

Asia’s fourth-largest economy posted a current account surplus of $7.83 billion in October, the biggest since October last year when it came at $9.47 billion, according to preliminary data released by the Bank of Korea on Thursday.

The October figures inched up 0.9 percent from a month earlier but shriveled 17.3 percent from a year ago.

The central bank said the improvement in service and primary income has helped offset the on-year fall in goods account surplus. One of main drivers that led the current account surplus was the subdued oil prices that reduced the country’s import value by 12.5 percent in October, larger than a 2.4 percent fall in September, the bank added.

The goods account surplus sank to $8.03 billion in October from $10.52 billion a year earlier as the country’s exports tumbled 14.5 percent to $49.12 billion and extended the losing streak to 11th months amid lingering uncertainties on the external front. Imports also fell for the sixth consecutive month, down 12.5 percent on year to $41.09 billion.

The service account, however, narrowed its deficit to $1.72 billion in October from $2.06 billion a year ago. The travel account deficit improved to $820 million thanks to the continuous rise in inbound travelers from China and Southeast Asian countries.

The surplus in primary income account totaled $1.83 billion, widening from $1.41 billion on increased collection of dividends. The investment income account surplus jumped from $1.47 billion to $1.9 billion during the period. Dividend income climbed from $740 million to $1.22 billion, while interest income was down from $720 million to $690 million.

Net assets added $10.24 billion in October. Koreans’ overseas direct investment grew $2.24 billion and that of foreigners $1.2 billion. Korean investment in foreign securities rose $3.4 billion whereas offshore investment in local securities just $660 million.

By Lee Ha-yeon

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