South Korea’s current account surplus in December narrowed by more than $1 billion from the previous month amid widening deficit in the services trade, but nevertheless kept up record-breaking positive streak for 58 months. For full 2016, Korea registered a surplus of $98.68 billion last year, the second historic-high.

According to preliminary balance of payments data released by the Bank of Korea on Friday, the nation’s current account surplus slipped to $7.87 billion in December from $8.89 billion in November.

Last year’s current account surplus was largely driven by commodities trade. Although the goods account surplus decreased to $120.45 billion from $122.27 billion in 2015, it exceeded $122 billion mark for two consecutive years in spite of Samsung Electronics’ debacle with Galaxy Note7 and Hyundai Motor’s lengthy strike. Subdued oil prices also provided better trade conditions and helped goods account to stay in the black.

Based on the international balance of payments, the country’s exports dwindled 5.7 percent to $511.78 billion from the previous year and imports also shrank 7.0 percent to $391.33 billion.

Deficit in service account accumulated to $17.61 billion won in 2016, replacing the highest-ever deficit amount for two consecutive years. Transport account turned to deficit of $630 million from $4.63 billion surplus in the previous year amid prolonged slump in the global shipping industry that ended up liquidating Hanjin Shipping. It is the first time for the transport account to be in the red since 1996.

Construction service account surplus contracted to $8.69 billion, the lowest record since $7.87 billion won of 2007, due to softening in offshore demand. Travel account deficit in 2016 narrowed to $9.43 billion from $10.06 billion of the previous year.

By Boo Jang-won

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