|Title||Will Current Account Surplus in Korea Be Sustainable? Population Aging and Accumulation of Foreign Assets|
|Author||KIM Hyo Sang|
Korea has experienced a long-lasting surplus in its current account since the Asian financial crisis in 1998. Recently the surplus has grown wider, with Korea recording a current account surplus of 7.7 percent of GDP in 2015 and 7.0 percent of GDP in 2016. We analyze the determinants of the current account and find that the current account balance is statistically significantly affected by demographic factors, net foreign asset, the relative GDP gap, oil price, fiscal balance and real exchange rate.