South Korea's current account surplus narrowed sharply in January on shrinking exports, central bank data showed Thursday.

The country's current account surplus came to $1.01 billion in the month, compared with a surplus of $4.33 billion the previous month and a $3.3 billion surplus the same month last year, according to the data from the Bank of Korea (BOK).

The drop was largely attributed to a dip in South Korea's goods account surplus, which shrank to $1.93 billion in January from $5.03 billion a month before.

Its exports, on a customs clearance basis, plunged 12.3 percent on-year to $43.44 billion, while imports slipped 5.2 percent to $41.52 billion.

The country continued to post a deficit in its service account, but the shortfall decreased slightly to $2.48 billion from $2.5 billion the previous month and was significantly down from a $3.53 billion deficit in the same month last year.

Its primary income surplus came to $1.69 billion, shrinking from a $2.68 billion surplus the month before. (Yonhap)