Trade Deficit Tops $470 Million
By Kim Tae-gyu
Staff Reporter
Korea chalked up almost a 50 percent growth in exports last month but even the fast expansion failed to prevent the nation's economy from falling into negative territory for the first time in a year.
The Ministry of Knowledge Economy said Monday that Korea recorded $31.1 billion in outbound shipments in January, up 47.1 percent from a year ago to rack up the highest growth since 1990.
However, its imports also rocketed 26.7 percent on a year-on-year basis to $31.6 billion so that the country ended up with a deficit of $470 million, for the first time since last February.
"Traditionally, the nation has clocked a deficit in January because of increased crude oil imports for heating during the cold winter season," Kang Myung-soo, a director of the ministry, said.
"In particular, crude oil prices have substantially risen to worsen the trade balance. But things will be different in February. We expect a surplus of up to $20 billion this month."
Imports of oil rose 44.1 percent last month from the corresponding period last year while those of oil products more than doubled at a time when oil prices have headed upward to move in the vicinity of $75 a barrel.
Kim said that Korea Inc. saw many encouraging numbers, which he said would lead to a bright future for Korean exporters.
For example, the exports of car components rocketed 158 percent while those of flat-panel displays and semiconductors also surged 103.4 percent and 121.6 percent, respectively.
"It is abnormal for exports of a certain product go up more than 100 percent in just a year. On a more positive note, the three items are flagship products of the country," Kang said.
Exports to developing countries such as China or neighboring Asian countries have spearheaded the country's strong figures.