Seoul - South Korea's current-account deficit widened to 1.56 billion dollars in April, from 110.6 million dollars in March, according to the Bank of Korea.

"Bigger deficit in service trade and higher dividend payments to offshore investors are to blame for the wider April deficit," explained Yang Jae-ryong, head of the central bank's balance of payments statistics team.

The shortfall of dividend payments increased to 2.78 billion dollars in April from 407.4 million dollars in March.

A deficit in services trade, including spending by South Koreans in offshore tourism, rose to a record 1 billion dollars in April.

Yank said the central bank expects the current-account balance to improve, because exports are growing faster than imports and most of the dividend payments have been made.

Higher import costs and a weaker currency may force Asia's fourth-largest economy to post its first annual current-account deficit since the Asian crisis of 1997.

The won fell more than 10 percent this year against the dollar. South Korea depends on overseas oil supply to meet 97 percent of its energy needs. (dpa)