 |
| Strategy and Finance Minister Kang Man-soo |
By Lee Hyo-sik
Staff Reporter
Korea's top economic policymaker said Friday that the nation will post a current account surplus next year, as a weaker won enhances the price competitiveness of domestic goods overseas, boosting outbound shipments.
Falling oil and other raw material prices are also expected to help the world's 13th largest economy improve its international balance of payments, with fewer Koreans heading overseas on the weak local currency and stagnant income amid worsening economic conditions.
Strategy and Finance Minister Kang Man-soo said the nation's current account balance will turn to a surplus next year from this year's estimated $10 billion deficit. ``We will continue to post a surplus in the current account in 2009. The improving travel account balance will play a key role in converting the current account balance into the black,'' he said.
The surplus brought the cumulative deficit for the year until October to $9.01 billion, compared with a surplus of $5.26 billion a year earlier, according to the Bank of Korea (BOK).
Kang also projected that Korea will post over a $1 billion surplus in November and December, following October's record-high. The current account surplus reached $4.91 billion last month, the largest since 1980, when the central bank began tracking data. It was a dramatic turnaround from a deficit of $1.35 billion in September.
With fewer outbound travelers and an increase in inbound tourists because of the weakened won, Korea's travel account recorded a $500 million surplus in October, compared with a $390 million shortfall a month earlier.
``To raise our international credibility, it is important to have currency swap arrangements with the U.S. and other countries and the nation should be able to borrow dollars from foreign institutions. But more important is to run a current account surplus, which is crucial to overcoming current economic difficulties facing the nation,'' Kang stressed.
He then said despite the current account surplus, the domestic foreign exchange market has remained volatile, as foreigners continue to sell local stocks and bonds, and take dollars out of the country in the wake of the ongoing global credit crunch.
The capital account, which tracks cross-border investments, posted a record high net outflow of $25.53 billion in October, as foreign investors sold off local stocks and Korean lenders repaid part of their foreign loans. The banking sector paid back $20.5 billion of short-term debt after increasing debt for four straight months.
``We expect the unfolding financial and economic crisis to last longer than initially thought. The government will take a series of unprecedented measures to effectively cope with it,'' the minister stressed.
Kang then stressed the nation should also prepare for the future, adding the government will make an all-out effort to train workers and generate jobs, particularly for the young.
``We will spend more than 4 trillion won out of the 10 trillion won supplementary budget next year to construct roads and other infrastructure across the nation because we think creating jobs is the best and most effective welfare policy. It is also important to enhance Korea's growth potential,'' he said.
[출처 : 코리아타임스]
