Deficits of US$ 459.9 Million

As overseas trips have increased owing to holidays and vacations, there are the maximum deficits in travel balance of August.

According to a report of ‘Trend of Payment Balance in August’ published by Bank of Korea (BOK) on September 27, the travel balance of last month showed deficits of US$459.9 million, the monthly maximum deficits over the deficits of US$ 409 million in July.

Overseas traveling expenses of native tourists were US$ 944.9 million, but Korea traveling expense of foreign tourists were just US$ 465 million.

There is the monthly largest number of 773908 overseas travelers in August.

Up to the end of August, the deficits of travel balance were US$2,577 million, double the annual deficits of last year (US$1,292.9 million).

In particular, in terms of the overseas studying and costs, US$953.4 million has been paid, increased by 81.6% over the same period of the last year up to the end of August, owing to early studying abroad. It exceeded the annual costs of last year (US$698 million).

As the deficit of travel balance has increased and the payment of consulting expense and royalty has largely increased, the service balance has increased to the maximum deficit of US$1,032 million.

Besides, the balance of goods account of August showed the profit of US$ 1,011 million increased by US$ 120 million through increasing exports and decreasing imports.

The balance of current account of August was the deficit of US$150.9 million. The profit of the balance of current account arisen up to the end of August was US$3,633.9million decreased by 46.8% over the same period of last year.

Cho, Seong-jong, a chief of economic statistics bureau, BOK forecasted “We forecast that the exports will take a favorable turn and the travel balance will be improved from September. Also, the deficits of the balance of current account will increase.”

Sang-Chul Kim sckim007@donga.com