South Korea's current account balance returned to a surplus in May, one month after the country posted its first deficit in seven years.

According to preliminary data by the Bank of Korea on Thursday, the country's current account surplus came to four-point-95 billion dollars in May, marking a turnaround from a 660-million dollar deficit posted the previous month.

The reversal is largely attributed to a surplus in the products account and the absence of seasonal impacts, such as the surge in dividend payments that contributed to the deficit posted in April.

In May, the country's products account surplus narrowed to five-point-39 billion dollars, a five-year low due largely to a ten-point-eight percent on-year drop in exports. 

The service account deficit also narrowed to 900 million dollars, the lowest mark since December 2016.