Biggest service deficit in 'Golden Holiday' in October

In October, the current account surplus in Korea decreased more than the same period last year, with Korea 's service balance plunging to its record high. The number of foreign tourists visiting China, including tourists from China, is decreasing, and the number of travelers going abroad for the longest golden holidays is increasing. The current account surplus continued for 68 consecutive months. 

According to the Bank of Korea (BOK) announced on October 5, "the balance of payments in October 2017", the current account surplus, including goods and services, totaled $ 5.72 billion in October. The longest record for the 68 consecutive months was followed, but the surplus shrunk compared to the same period last year ($ 7.69 billion). It is the smallest in six months. 

The service deficit has had the biggest impact ever. The service balance, including travel, intellectual property fees and transportation, was $ 3.53 billion, more than twice the deficit of the same period last year ($ 178 million).The service deficit shrank its record high for the second time this year. The second largest deficit was $ 3.36 billion in January. 

The travel deficit was also large this time. It is the second largest after last July with $ 1.67 billion. More than three times more than the same period last year ($ 490 million). 

After the deployment of the SAD (High Altitude Missile Defense System), the Chinese authorities continued to suffer a sharp decline in the number of Chinese tourists visiting Korea, as well as tourists from other countries. In October, the number of foreigners entering Korea dropped 26.6% from the same period last year, while Chinese arrivals fell 49.3%.

On the other hand, the number of foreign tourists in Korea continued to increase. The number of outbound travelers in Korea last October was 22.322 million, up 19.6 percent from the same period last year. According to the Korea Tourism Organization (KNTO), the number of outbound travelers is expected to reach a record high this year, exceeding 20 million visitors this year. 

The balance of transport and construction, intellectual property royalties, and other business services also recorded losses. In particular, the loss of other business services such as overseas advertising, consulting services, and settlement of accounts between affiliates was $ 1.37 billion. 

Meanwhile, merchandise sales surged to $ 8.6 billion, a slight drop from the same period last year ($ 9.16 billion).The long Chuseok holiday season will have a 4.5-day working days decrease. 

Exports rose 3.1 percent to $ 44.43 billion last year. Semiconductor imports, which are the export items, grew 72.7% YoY to USD9.7bn, leading the market. Revenue rose to $ 35.83 billion, up 5.6 percent from the same period last year. "The demand for semiconductor manufacturing equipment continued to be driven by the boom in the semiconductor market, and the rise in energy prices, including coal and natural gas, was also affected," the official said. 

Income and wages, including salaries, wages, dividends and interest, were in a surplus of $ 1.17 billion. The increase was due to an increase in dividend income.