SEOUL - SOUTH Korea logged a current account surplus for the fourth straight month in May as imports fell faster than exports during the ongoing global economic slump, the central Bank of Korea said on Friday.

The current account surplus stood at US$3.63 billion (S$5.28 billion) in May, compared with US$4.25 billion a month earlier.

For the first five months, the accumulated current account surplus amounted to US$16.46 billion.

The current account, which measures trade, service and investment flows with the rest of the world, has been in the black since February thanks to a sharp fall in the value of imports.

The trade surplus in May was US$5.02 billion, down from a US$6.13 billion surplus in April. Imports plunged 39.4 per cent from a year earlier to US$22.9 billion while exports fell 27.3 per cent to US$27.9 billion.

The income account, which tracks wages for foreign workers and dividend payments overseas, shifted to a surplus of US$360 million from an US$860 million deficit in the previous month as overseas stock dividend payouts fell for seasonal reasons.

The capital account, which tracks cross-border investments, posted a net inflow of US$6.72 billion, up from a US$2.16 billion surplus in April.

Last year South Korea posted its first annual current account shortfall in 11 years - US$6.41 billion - due mainly to soaring oil prices. -- AFP