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S. Korea’s Tourism Account Deficit Fell to 23-month Low in October
More Tourists from China and Japan Visiting Korea
S. Korea’s Tourism Account Deficit Fell to 23-month Low in October
  • By Choi Moon-hee
  • December 7, 2018, 11:59
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South Korea's tourism account deficit totaled US$950 million in October this year, the lowest since November 2016.

South Korea’s tourism account deficit reached the lowest level in 23 months as more tourists visited South Korea from China and Japan. In the meantime, the country posted a current account surplus for the 80th consecutive month.
 

According to the Bank of Korea, the tourism account deficit totaled US$950 million in October this year. It is the lowest since November 2016, when the deficit was US$750 million. In October 2018, the numbers of inbound tourists from China and Japan increased 37.6% and 61.7% year on year to 475,000 and 290,000, respectively. Tourist arrivals increased year on year for the eighth consecutive month and the tourism revenue totaled US$1.54 billion, the highest level since May 2016.

In October, South Korea’s service account deficit fell to US$2.22 billion, led by the tourism sector performance. For reference, the service account deficit was US$2.52 billion in September 2018 and US$3.53 billion in October 2017.

In the meantime, South Korea’s monthly exports totaled US$57.24 billion in October, up 28.8% from a year ago. This was led by petroleum product and machinery exports and led to a record-high goods account surplus of US$11 billion.

The primary income account surplus added up to US$960 million whereas the secondary income account showed a deficit of US$540 million. The net wealth, overseas investment from South Korea, and foreign investment in the country increased US$10.59 billion, US$4.32 billion and US$960 million, respectively.

The overall current account surplus was US$9.19 billion, and the country remained in the black for 80 months in a row. For reference, its current account surplus was US$10.83 billion in September this year and US$5.72 billion in October last year.