By Lee Hyo-sik
Staff Reporter

Korea has overtaken Japan in terms of trade surplus this year for the first time in its history on the back of local exporters' efforts to diversify their overseas markets coupled with the Japanese yen's strength against the dollar.

According to the Organization for Economic Cooperation and Development (OECD) Wednesday, the nation posted a trade surplus of $26.6 billion in the first half of the year, the second-largest among the 30 OECD member economies after Germany's $71.9 billion.

Japan ranked seventh with a $9.1 billion surplus. If the current trend continues, South Korea, Asia's fourth-largest economy, will post a larger trade surplus in 2009 than Japan, the world's second-largest economy, for the first time ever.

The nation ranked between the seventh and ninth spots over the past decade after becoming the world's third-largest trade earner in 1998. But in 2008, its ranking plummeted to 11th due to plunging sales at home and abroad in the wake of the global financial market turmoil and economic slump.

Until 2000, Japan was the world's most profitable trader, but in 2001 Germany snatched the top spot. Last year, Japan ranked fifth with a $37.6 billion surplus.

Korea's increased surplus is mainly attributed to the won's weakness against the dollar during the January-to-June period, making Korea-made goods cheaper overseas, an official at the Ministry of Strategy and Finance said. ``Besides the favorable foreign exchange rate, the competitiveness of domestic companies has strengthened over the years. Additionally, exporters here have diversified products and markets, easing the extent of negative impact from the worldwide economic downturn. They are selling more goods in relatively resilient emerging economies than in hard-hit advanced countries.''

The official added the recent strengthening of the local currency may dampen Korea's outbound shipments toward the year's end. ``But the yen is also appreciating against the greenback, which more or less levels the playing field between the two neighboring economies.''

The U.S. posted the largest trade deficit in the first six months of the year at $239.5 billion, followed by Britain at $60.6 billion and France at $33 billion.

In the current overall account balance, Germany recorded the largest surplus of $58.4 billion, followed by Japan ($58 billion) and Norway ($28 billion). Korea ranked fourth with a $23.4 billion surplus.

leehs@koreatimes.co.kr