Deleveraging To Dominate Balance Of Payments

We expect South Korea to post a current account surplus of US$4.6bn in 2009 on the back of an improved trade account - as imports contract more sharply than exports - and a narrowing services deficit. However, a continued deleveraging of foreign debt will keep the financial account in the red, with the Bank of Korea continuing to supply US dollars to the market to avoid too sharp a decline in the won.

To read the full article, please choose one of the following options: