South Korea’s current account balance bounced back to a surplus in May, although the figure was nearly halved from a year ago as exports remained subdued from the coronavirus impact.

Korea registered a current account surplus of $2.29 billion in May, a sharp reversal from the $3.33 billion deficit in the previous month, preliminary data from the Bank of Korea (BOK) showed on Tuesday.

The number, however, was humble compared with the $5.18 billion surplus in May 2019.

The goods account surplus in May was $2.5 billion, up $1.87 billion from the previous month but narrowed by $3 billion from a year earlier.

The global lockdowns started to ease from May, which helped the latest trade figures, a BOK official said.

Exports in May plunged 28.2 percent on year to $34.6 billion, the biggest fall in more than 11 years. Imports also dropped 24.8 percent on year to $32.1 billion. Exports and imports both extended their year-over-year decline for the third straight month.

The service account balance improved, with the deficit narrowed to $480 million from $950 million in May 2019.

Korea’s primary income account surplus was $540 million, down from the $1.29 billion surplus a year ago on reduced dividend income. Net financial assets, which measure net asset inflows, rose $3.24 billion.

Korea’s direct investment overseas fell $70 million while foreign direct investment at home dropped by $110 million. On the securities front, Korea’s investment abroad rose by $4.1 billion while foreign investment in Korea dipped $380 million.

By Kim Hyo-jin

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