South Korea Has $7.91 Billion Current Account Surplus



South Korea posted an unadjusted current account surplus of $7.91 billion in July, the Bank of Korea said on Thursday - remaining in the black for the 29th consecutive month. The headline figure is little changed from June's surplus of $7.92 billion. The goods account surplus widened to $6.86 billion, from $6.65 billion in the previous month. The services account deficit narrowed to $0.01 billion from $0.58 billion a month earlier as deficit on the use of intellectual property account improved, the bank said. The primary income account surplus narrowed to $1.49 billion from $2.23 billion in the previous month due to a substantial decrease in income on the equity account. The secondary income account recorded a deficit of $0.43 billion. The financial account recorded a net outflow of $5.92 billion, down from $9.84 billion in June. Direct investment recorded a net outflow of $1.01 billion down from $2.06 billion a month earlier, as residents' outward investment decreased. Portfolio investment recorded a net outflow of $1.74 billion, down from $4.22 billion in June, due primarily to a large net inflow of foreign investors' equity securities investment. Financial derivatives posted a net inflow of $0.50 billion. Other investment shifted to a net outflow of $0.34 billion, from a net inflow of $0.28 billion in the previous month due mostly to increased lending by domestic financial institutions. Reserve assets increased by $3.33 billion. Through the first seven months of 2014, the current account surplus is $47.1 billion.

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