S Korea current account surplus slips in August

SEOUL, Sept 29 (AFP) : South Korea's current account surplus narrowed to $7.27 billion in August due to heavy royalty payments and overseas travel spending during the summer holiday season, state data showed Monday.

The preliminary figure compared with a surplus $7.84 billion in July, according to the central Bank of Korea.

The current account -- the broadest measure of foreign trade in goods and services -- has been in the black for 30 months in a row.

Exports last month amounted to $46.23 billion, down from $48.22 billion in July, while imports declined to $42.86 billion from $45.89 billion.

The services account, which includes spending on overseas trips, showed a deficit of $730 million compared with $10 million in July.

The deficit in the travel sector also expanded to $770 million from $550 million a month earlier, while the shortfall in royalty payments -- largely in the technological sector -- grew to $380 million from $20 million.

The central bank forecasts South Korea -- Asia's fourth-largest economy -- will post a record current account surplus of $84 billion this year.