South Korea current account surplus widened to a maximum of three months in October

South Korea current account surplus widened to a maximum of three months in October, indicating that exports have so far resisted the appreciation of the won against the dollar.

The surplus was 5.37 billion U.S. dollars in October, down from a revised 3.95 billion in September, the Bank of Korea said in a statement today in Seoul. The current account is the broadest measure of international trade, tracking goods, services and investment income.

The nation is one of a number of emerging markets from Asia to Latin America trying to limit currency appreciation this year to support exports. North Korean bombing of a South Korean island three days ago sent the cattle to a minimum of two months after the investors against disturbing.

"Exports are likely to remain firm," Hwang In Seong, vice president of Samsung Economic Research Institute in Seoul, said before the launch. "The recent weakness of livestock due to the risks of North Korea and Europe will help you."

The currency fell 0.4 percent to 1,142.44 per dollar as of 10:08 am in Seoul. The cattle of 9.7 percent advance in the last six months is the highest increase in Asia. The Kospi stock index fell 0.6 percent to 1,916.31.

The government of President Lee Myung Bak-out limited economic impact of the incident with the North and is committed to providing sufficient liquidity to meet any crisis.

Capital controls

The government last week endorsed the revival of a tax on foreigners investing in bonds of the nation to stem the flow of funds to drive the cattle.

"The government may delay additional measures to control capital flows to international investors feel confident about the security situation," said Hwang.

Bank of Korea Governor Kim Choong Soo increased borrowing costs by 0.25 percentage points in November, the second increase this year, 2.5 percent. The current interest rate falls behind inflation, which climbed past the roof of the monetary authority of a 4 percent last month.

Exports account for about half of the economy and grew by 12 consecutive month in October. Overseas shipments have been boosted this year's earnings at companies such as Hyundai Motor Co., the largest automaker in South Korea.

The current account surplus is set to exceed 30 billion U.S. dollars this year, Lee Young Bog, an official of the Bank of Korea in Seoul, said today. November surplus is likely to be lower than the October figure, he said, without giving a specific forecast.

Accounting Change

The central bank also said it will change the way it calculates the South Korean balance of payments as recommended by the International Monetary Fund. The new method is applicable to the November data and the above figures are updated.

Setting "will reduce the enormous volatility in the nation's current account and external debt data due to export of vessels in size," said Lee.

Total exports a customs-cleared basis, excluding ships, rose 27.6 percent last month from a year earlier, compared with an increase of 16.2 percent in September revised. Imports advanced 21.3 percent.

The tradable surplus widened to 6.54 billion U.S. dollars in October from a revised 5.57 billion in September, the report showed today. The services deficit, which measures the flow of travel, transport costs and royalties, was $ 1.69 billion months passed, compared with a revised 1.96 billion in September.

The income account recorded a surplus of $ 756 million, from a revised 509 million U.S. dollars surplus in September.

South Korea's economy is expected to grow 6.2 percent this year and 4.3 percent in 2011, the Organization for Economic Cooperation and Development estimates that on 18 November.