October Data Show Imports Outgrowing Exports

By Kim Hyun-cheol
Staff Reporter

South Korea's trade balance stayed in the black for the ninth-straight month in October, but the number dropped substantially from the previous month due to an increase in imports.

In an analysis of tentative trade data, the country posted a $3.79 billion surplus, the Ministry of Knowledge Economy said Sunday. The figure contracted 29.4 percent from September's $5.37 billion.

Korea exported goods worth $34.9 billion, down 8.3 percent from a year ago, and imported $30.2 billion, a 16.3-percent fall, last month.

The year-on-year gap in exports widened in outbound shipments as exports fell 6.6 percent from the previous year in September. Imports, on the other hand, continued to grow, reaching the $30-billion mark.

Decline in imports also came below 20 percent for the first time this year. In signs of a rebounding economy seen across the world ― a growth in imports means the country is escaping a period of ``recessive surplus,'' in which it records a positive trade balance ― mainly thanks to declines in imports exceeding that of exports, the ministry said.

Imports of crude oil grew from $4.87 billion to $5.24 billion, with a price rise on international markets overlapping with increasing domestic demand, while those of gas soared from $850 million to $1.45 billion, according to the ministry's report.

As consumer sentiment improved, shipments of consumer goods to Korea turned positive ― a 0.9-percent growth for the first time this year.

A 10-month accumulated trade surplus this year was tallied at $34.6 billion, hitting a new high from the $31.9 billion in 1998.

Following September, liquid crystal displays (LCDs) and semiconductors led Korea's exports. Display panels jumped 38.8 percent and semiconductors were up 36.8 percent.

Strong sales to emerging markets continued, as did struggles in advanced countries. Exports to China and Southeast Asian countries rose 3.4 and 9.0 percent, respectively, but fell 37.4 percent to the United States, 22.5 percent to Japan and 19 percent to the European Union.

The ministry predicted both imports and exports will rebound into positive territory from next month, following the country's overall trade suffering from around November last year with the advent of the global financial crisis.

``Considering the indications for an economic revival overall, there could be a problem for Korea to reach a record-high $40-billion mark at the end of the year,'' it said in the report.

hckim@koreatimes.co.kr