SEOUL, Sept. 5 (Xinhua) -- South Korea's current account surplus fell in July as the travel account deficit hit a new record high amid the falling Chinese tourists, central bank data showed Tuesday.
Current account balance, the broadest measure of cross-border trade in goods and services, recorded a surplus of 7.26 billion U.S. dollars in July, down from the surplus of 8.41 billion dollars a year earlier, according to the Bank of Korea (BOK).
For the first seven months of this year, the current account surplus reached 43.53 billion dollars. The current account balance stayed in the black for 65 months in a row.
Trade surplus for goods increased to 10.71 billion dollars in July from 10.67 billion dollars a year earlier.
Exports, which account for about half of the economy, advanced 11.4 percent over the year to 47.21 billion dollars in July thanks to strong demand for semiconductors and higher steel product prices. The exports kept growing for the ninth consecutive month.
However, the services account balance, which measures the flow of travel, transport costs and royalties, registered a deficit of 3.29 billion dollars in July. It was the second-biggest deficit ever recorded by the South Korean economy.
The services account deficit more than doubled compared with the same month of last year as the travel account deficit logged a new record high of 1.79 billion dollars in July amid the falling Chinese tourists.
The number of foreigners entering South Korea in July was 1.009 million, down 40.8 percent from a year earlier. Among them, the Chinese tourists plunged 69.3 percent to 281,000 in the same period.
The number of South Koreans going abroad reached a new monthly high of 2.389 million in July during the summer vacation season. It was up 14.5 percent from a year ago.
Rising geopolitical risks also hit hard the tourism industry. The Democratic People's Republic of Korea (DPRK) tested what it called an intercontinental ballistic missile (ICBM) twice in July, raising tensions on the Korean Peninsula.
It was followed by the UN Security Council's new resolution toughening sanctions on Pyongyang. It was unanimously adopted by the international society.
The travel account balance was predicted to remain in the red amid the lingering geopolitical risks. Pyongyang fired an intermediate-range ballistic missile (IRBM) over the northern Japanese island of Hokkaido in late August.
On Sunday, the DPRK conducted its sixth nuclear test, detonating what it claimed a hydrogen bomb warhead that can be loaded onto an ICBM.
The intellectual property rights balance logged a deficit of 300 million dollars in July as some of large corporations paid costs for the usage of foreign patents and trademark rights.
The transport account balance was a deficit of 410 million dollars, but the construction account balance posted a surplus of 510 million dollars.
Primary income account, which gauges investment and interest income as well as salary, registered a surplus of 580 million dollars in July, turning around from a deficit of 50 million dollars a year ago.
The turnaround came from a fall in dividend paid by local companies to foreign investors.
Financial account, which measures cross-border capital flow without transactions in goods and services, recorded an outflow of 9.77 billion dollars in July.
Overseas direct investment by locals was 740 million dollars in July, rising for 191 months in a row. Domestic direct investment by foreigners stood at 340 million dollars.
Locals bought 6.86 billion dollars in foreign stocks and bonds in July, posting the 23rd straight month of purchase. Foreign purchase of domestic stocks and bonds came in at 3.66 billion dollars in the month.
