SEOUL, Sept. 29 (Xinhua) -- South Korea's current account surplus fell last month due to seasonal factors such as a deficit in the travel account, but the balance stayed in black for 30 months in a row, central bank data showed Monday.
The current account surplus declined to 7.27 billion dollars in August from 7.84 billion dollars in July, according to the Bank of Korea. The current account balance is the broadest measure of cross-border trade.
The reduction came on the back of seasonal factors, including an increase in the travel account deficit during the summer vacation and a widening deficit in the intellectual property right.
The travel account deficit climbed to 770 million dollars in August from 550 million dollars in July. The intellectual property right deficit expanded from 20 million dollars to 380 million dollars in the same period.
Despite the reduction in August, the current account balance stayed in black for the 30th straight month.
For the first eight months of this year, the surplus was 54.31 billion dollars, higher than a surplus of 46.45 billion dollars tallied in the same period of 2013 when it logged a record yearly high in current account surplus.
Imports reduced at a faster pace than exports, causing worries about weak domestic demand. South Korea vowed to maintain an " expansionary" fiscal policy until people feel confident about growth, and the central bank cut the policy rate by a quarter percentage point to 2.25 percent in August.
Concerns escalated about sluggish private consumption after the April ferry sinking disaster, which claimed lives of more than 300 people, mostly high school students. Deep grief swept over the country, worsening the already fragile domestic demand.
Exports, which account for about half of the economy, fell 8.9 percent from a month earlier to 49.01 billion dollars in August. Imports tumbled 11.6 percent to 41.56 billion dollars in the cited period.
By item, exports of consumer electronics, automobiles and auto parts plunged 23 percent, 18.2 percent and 6.6 percent each in August on a yearly basis, leading the August export decline.
Imports of transport equipment and machinery declined 33.5 percent and 17.2 percent respectively, but those for foreign luxury cars and crude oil increased 51.5 percent and 19.4 percent each.
The service account balance, which measures the flow of travel, transport costs and royalties, posted a deficit of 730 million dollars in August, widening from a 10 million dollar deficit in July.
The primary income account, which includes monthly salaries and investment income, recorded a surplus of 1.05 billion dollars in August, down from a 1.49 billion dollar surplus in July. It was attributed to a reduction in interest income.
Financial account, which gauges cross-border capital flow without transaction of goods and services, logged an outflow of 7. 8 billion dollars in August, up from an outflow of 5.92 billion dollars in July.
By item, direct investment registered an outflow of 750 million dollars in August, down from a 1.01 billion dollar outflow in the prior month.
Portfolio investment, which measures stock and bond transactions, recorded an inflow of 500 million dollars in August, a turnaround from an outflow of 1.74 billion dollars in July due to an increase in investment into overseas securities.
Other investment account, including trade credit and foreign debts, logged an inflow of 7.29 billion dollars in August, up from an inflow of 340 million dollars in July.
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