Korea's exports to China decreased for the first time in two and a half years, and are expected to remain in a slump in the coming months due mainly to a slowdown in one of the world's fast-growing economies, a report said Tuesday.
According to the report by the Korea International Trade Association (KITA), Korea's outbound shipments to China dipped 1.5 percent on-year to US$63.4 billion in the first six months of the year.
The country's overall first-half exports rose 0.6 percent on-year, with shipments to the United States jumping 10.2 percent.
It saw the first decline in nearly three years since exports to the neighboring country fell 5.1 percent on-year in the second half of 2009 in the aftermath of the global financial crisis, said the report.
In 2010, South Korea posted a 34.8 percent on-year growth in exports to China and a 14.9 percent gain in 2011.
The KITA report said that the decrease in exports to China is attributed to a slowdown in the world factory amid a global slowdown stemming from the European debt crisis.
China's exports gained 9.2 percent from a year ago in the January-July period, a slowdown from a whopping 20.3 percent expansion in 2011.
Domestic demand in China also stagnated as the Beijing government has tried to cool down the consumption and real estate market, which hurt investor confidence.
The report forecast that South Korea's exports to China will remain weak as well in the second half as there are no clear signs of a recovery in the European economy and China will be reluctant to take more active stimulus measures on concerns of inflation and a property bubble. (Yonhap)