SEOUL - SOUTH Korea posted a record current account surplus in October as imports decreased due to the sharp decline in crude oil prices, the Bank of Korea said on Thursday.

The surplus came in at US$4.91 billion (S$7.4 billion), the central bank said in a statement. It was only the second monthly surplus this year. The country recorded a deficit of US$1.35 billion million in September.

The current account, South Korea's broadest measure of trade, includes goods and services, as well as transfers such as aid and remittances. The figures are preliminary.

October's surplus was the biggest ever, according to central bank economist Lee Sang-hyun. The previous high was US$4.27 billion in November 2006.

Despite the surplus, South Korea may still record its first annual current account deficit since 1997 when the economy was hit by the Asian financial crisis.

For the first 10 months of this year, South Korea had a current account deficit of US$9.01 billion.

South Korea's deficit this year came amid a steady rise in the price of crude oil. The resource-poor country imports nearly all its oil.

Oil prices, however, have fallen dramatically in recent months amid slowing world economic growth and the global financial crisis. -- AP