S. Korea Posts First Trade Surplus in 5 Months

South Korea posted a trade surplus of $1.22 billion in October, buoyed by a surge in exports of ships and oil products as well as lower crude prices, according to a report released by the Ministry of Knowledge Economy Monday. It was the nation's first trade surplus since May.

Exports rose 10 percent to $37.89 billion last month, while imports gained 12 percent to $36.67 billion.

In the January-October period, South Korea's cumulative trade deficit reached $13.45 billion, compared with a surplus of $13.62 billion a year earlier, according to Yonhap News.

Ship exports jumped 118 percent to $4.17 billion and overseas shipments of oil products and mobile communication equipment surged 45 percent and 14 percent, respectively.

Oil product exports topped $3.36 billion thanks to steady demand from China and Southeast Asia, with overseas shipments of mobile telecommunication equipment reaching $3.98 billion.

Besides ships, oil products and mobile telecommunication equipment, exports of steel increased 40 percent with slight gains reported for textiles, auto parts and general machinery.

The ministry said the October surplus also resulted from a 14.8 percent drop in crude prices. Oil products fell to an average of $98 per barrel last month from $115 per barrel in September, while steel imports dropped $890 million from the previous month.

Exports to Central and South America gained 32.1 percent, while those to the Middle East and Oceania rose 22.4 percent and 20.9 percent.

Exports to the United States jumped 10.8 percent, with outbound shipments to the 10-member Association of Southeast Asian Nations moving up 6.3 percent. South Korea's exports to Japan gained 5.5 percent, with numbers for China and the European Union dropping 1.8 percent and 8.2 percent each as repercussions of the slowdown in the global economy start to take effect.

Government officials said a drop in energy prices, coupled with a slowdown in the domestic economy, helped contain import growth and stressed that continued efforts will be made to help local companies expand overseas market share so the country can achieve a trade surplus in the fourth quarter.