Quotes from Barclays Capital:
-South Korea's current account surplus widened to USD11.4bn in November (October: USD8.8bn, September: USD7.4bn), beating the previous record of USD11.1bn recorded in October 2013 and our forecast of USD7.6bn. The widening was driven by a pickup in the trade surplus, as had been indicated by the second highest YTD surplus of USD5.5bn recorded in the customs data previously. YTD, the current account surplus has reached USD81.9bn, comfortably beating our 2014 forecast of USD80.0bn. The falling oil price will likely help to keep the current account surplus large in 2015.
-The previous narrowing in the gap with the customs trade balance reversed in November, as shipbuilding deliveries are accounted for on a «work-in-progress» basis in the BoP data. Overall, given the perceived impact of yen weakness on Korea's exporters, and lower oil prices, the current account surplus remains very strong. However, with the KRW REER still above its 20-year average despite the recent decline, we think the authorities are likely to be reluctant to allow a resumption of appreciation in the near term.
The material has been provided by InstaForex Company – www.instaforex.com