Korea's current account surplus this year to surpass Japan's
Korea posted a current account surplus of around 42-billion U.S. dollars in the first eight months of this year, beating Japan by some 700 million dollars.
This according to data released by the Bank of Korea.
It's the first time for Korea to top Japan since 1980 when tracking of related data began.
For the entire year, Korea is also forecast to log a current account surplus of 63-billion dollars, 3-billion dollars more than Japan.
Only five years ago Korea was no match for Japan, a major exporting nation with the current account surplus five times larger than that of Korea.
But now Korean companies have emerged as strong competitors against Japanese manufacturers.
Korean exports of key products like mobile phones and automobiles have been strong, helping Korea post monthly exports that surpass 50 billion dollars for the first time last month.
Japan, on the other hand, saw its energy imports surge after the devastating earthquake crippled its nuclear industry in March 2011, amid the recent trend of the weak Japanese yen.
Analysts say it remains unclear how long Korea can continue posting a strong current account surplus as the weak yen is expected to have a negative impact on the nation's exports.
Hwang Ji-hye, Arirang News.
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