South Korea's exports are likely to drop nearly 30 percent this month amid the deepening global economic crisis, a private trade promotion association said Tuesday.
Exports may post a "double-digit" decline in the first half of this year, according to Lee Hee-beom, head of the Korea International Trade Association. Exports suffered a 17.4 percent drop in December following an 18.3 percent decline a month earlier.
"Given leading indicators, exports are expected to fall by about 30 percent in January," Lee said in an interview with Yonhap News. He added that this year's export volume would still top $450 billion.
Exports are expected to bottom out in the second half due to economic stimulus packages in advanced economies and falling oil and commodity prices, Lee said.
South Korea's export-dependent economy has been hit hard by the global economic crisis as the United States and Europe have slid into recession and China has seen a slowdown in growth.
Some economists predict South Korea's economy could sink into a technical recession this year.
The central Bank of Korea expects the economy to grow 2 percent this year, compared with an estimated 3.7 percent expansion in 2008. The economy grew 5 percent in 2007.