By Jane Han
Staff Reporter

South Korea is set to become the ninth largest exporter by the end of this year, but it aims to climb up a notch by 2014 on the back of government-backed support and aggressive overseas marketing.

The country seeks to post annual trade growth of 12.5 percent over the next six years, cranking up outbound shipments to $650.8 billion and total international trade of $1.3 trillion, the Ministry of Knowledge Economy said Monday on the occasion of the nation's 46th Trade Day, an annual event.

"We must continue to sharpen our edge in industries we're already leading and explore new markets to sustain our trade growth," President Lee Myung-bak said in a speech at the ceremony marking the country, surpassing Britain, Canada and Russia in exports.

Korea is likely to see an estimated trade surplus of $40 billion this year with overseas sales falling 14 percent amid sluggish demand due to the global economic downturn.

In 2010, the government said exports may grow 12.9 percent to $410 billion, with imports increasing 21.5 percent to $390 billion for a surplus of $20 billion.

"Next year may be tough for South Korean exporters as competition with global rivals will be fiercer," said Lee, adding that the nation must make creative investments for the future to ensure sustainable growth.

The Ministry of Knowledge Economy said the government-run pension funds could invest in industrial and export insurance projects to reduce financial risks.

It also said the government would call on local banks to evaluate companies' export potential when reviewing loan requests instead of evaluating financial statements.

The ministry's strategy envisions supporting at least 10,000 new small- and medium-sized businesses that can each export more than $2 million worth of products annually.

A plan to foster new exporters ― which could make up to 40 percent of all outbound shipments ― is aimed at reducing the country's dependence on large conglomerates, government officials said.

jhan@koreatimes.co.kr