South Korea's services account deficit hit a record high last year as the number of Chinese tourists visiting the country tumbled, central bank data showed Monday.
Services account deficit amounted to 34.47 billion U.S. dollars in 2017, after recording 14.92 billion dollars in 2015 and 17.74 billion dollars in 2016 respectively, according to the Bank of Korea (BOK).
The deficit kept a record-breaking trend for the third consecutive year as the travel account deficit increased amid the falling number of Chinese visitors to South Korea.
The travel account deficit posted 17.17 billion dollars in 2017, surpassing the previous record high of 15.84 billion dollars tallied in 2007.
The number of Chinese tourists visiting South Korea plunged 48.3 percent in 2017 from the previous year, leading to a 22.7-percent decline in the total number of foreigners traveling to South Korea last year.
In contrast, the number of South Koreans who traveled abroad jumped 18.4 percent in 2017 from the prior year.
The construction account surplus fell to 7.71 billion dollars in 2017 from 9.56 billion dollars in the previous year as local companies won less construction orders from the Middle East countries amid the lower crude oil prices.
The transport account balance logged a deficit of 5.3 billion dollars, the biggest-ever deficit amid the global slump in the shipping industry.
Despite the record-high services account deficit, current account balance stayed in the black for 20 years since 1998 as trade surplus for goods marked the second-biggest yearly figure last year.
Current account surplus amounted to 78.46 billion dollars in 2017, down from 99.24 billion dollars in the prior year.
Trade balance for goods posted a surplus of 119.89 billion dollars in 2017, marking the second-biggest figure ever recorded by the South Korean economy.
Exports, which account for about half of the export-driven economy, advanced 12.8 percent over the year to 577.38 billion dollars in 2017 thanks mainly to strong demand for locally-made semiconductors and the global economic recovery.
Imports expanded 16.4 percent to 457.49 billion dollars, posting the first increase in six years.
The primary income account, which reflects salary, dividend and interest income, registered a surplus of 120 million dollars in 2017 despite the record high of dividend payment to foreign investors reaching 16.77 billion dollars last year.
Meanwhile, the financial account, which reflects capital flow in and out of the country without transactions of goods and services, posted a net inflow of 87.1 billion dollars in 2017.
Direct investment posted a net outflow of 14.63 billion dollars last year as local residents increased investment into foreign countries.
Portfolio investment, including investment into stocks and bonds, logged a net outflow of 578.5 billion dollars as local residents raised holdings of foreign securities.
In December alone, current account surplus amounted to 4.09 billion dollars, keeping the monthly surplus trend for 70 months in a row.
Trade surplus in December was 8.21 billion dollars, while the services account balance posted a deficit of 3.77 billion dollars.
Services account deficit amounted to 34.47 billion U.S. dollars in 2017, after recording 14.92 billion dollars in 2015 and 17.74 billion dollars in 2016 respectively, according to the Bank of Korea (BOK).
The deficit kept a record-breaking trend for the third consecutive year as the travel account deficit increased amid the falling number of Chinese visitors to South Korea.
The travel account deficit posted 17.17 billion dollars in 2017, surpassing the previous record high of 15.84 billion dollars tallied in 2007.
The number of Chinese tourists visiting South Korea plunged 48.3 percent in 2017 from the previous year, leading to a 22.7-percent decline in the total number of foreigners traveling to South Korea last year.
In contrast, the number of South Koreans who traveled abroad jumped 18.4 percent in 2017 from the prior year.
The construction account surplus fell to 7.71 billion dollars in 2017 from 9.56 billion dollars in the previous year as local companies won less construction orders from the Middle East countries amid the lower crude oil prices.
The transport account balance logged a deficit of 5.3 billion dollars, the biggest-ever deficit amid the global slump in the shipping industry.
Despite the record-high services account deficit, current account balance stayed in the black for 20 years since 1998 as trade surplus for goods marked the second-biggest yearly figure last year.
Current account surplus amounted to 78.46 billion dollars in 2017, down from 99.24 billion dollars in the prior year.
Trade balance for goods posted a surplus of 119.89 billion dollars in 2017, marking the second-biggest figure ever recorded by the South Korean economy.
Exports, which account for about half of the export-driven economy, advanced 12.8 percent over the year to 577.38 billion dollars in 2017 thanks mainly to strong demand for locally-made semiconductors and the global economic recovery.
Imports expanded 16.4 percent to 457.49 billion dollars, posting the first increase in six years.
The primary income account, which reflects salary, dividend and interest income, registered a surplus of 120 million dollars in 2017 despite the record high of dividend payment to foreign investors reaching 16.77 billion dollars last year.
Meanwhile, the financial account, which reflects capital flow in and out of the country without transactions of goods and services, posted a net inflow of 87.1 billion dollars in 2017.
Direct investment posted a net outflow of 14.63 billion dollars last year as local residents increased investment into foreign countries.
Portfolio investment, including investment into stocks and bonds, logged a net outflow of 578.5 billion dollars as local residents raised holdings of foreign securities.
In December alone, current account surplus amounted to 4.09 billion dollars, keeping the monthly surplus trend for 70 months in a row.
Trade surplus in December was 8.21 billion dollars, while the services account balance posted a deficit of 3.77 billion dollars.
Latest comments