South Korean current account surplus surges to new record in April

South Korea's current account surplus surged to a record in April as exports rose sharply, central bank data showed yesterday, but a fall in imports reinforced a worrying erosion in its domestic consumption.

Asia's fourth-largest economy posted a current account surplus of US$9.81 billion in April on a seasonally adjusted basis, much bigger than a revised surplus of US$6.6 billion for March, data from the Bank of Korea showed.

Exports rose by a seasonally adjusted 5.9 per cent to US$55.38 billion from March on shipments of cars, petroleum and steel products, while imports fell 3.7 per cent to US$43.46 billion, bringing the goods account surplus to a record US$11.92 billion.

Sluggish imports underscored depressed domestic consumption and investment, and weakness in global prices of energy and raw materials.

"As local companies' investments and domestic spending stay soft, the current account surplus will be maintained through the fourth quarter, but the surplus will narrow around then as the global economy gains traction," said Park Sang-hyun, chief economist at HI Investment & Securities in Seoul.

Highlighting soft demand at home, a recent consumer sentiment survey by the central bank found it had fallen to an eight-month low.