By Kim Hyun-cheol
Staff Reporter
South Korea posted a trade surplus in May for the fourth consecutive month, but the trend appears unstable as the pace of export decline accelerated.
The nation's trade surplus in May amounted to $5.2 billion, down from $5.8 billion in April, the Ministry of Knowledge Economy said Monday.
Outbound shipments reached $28.2 billion last month, down 28.3 percent from the same month in 2008, while imports plunged 40.4 percent to $23.1 billion. So far this year, the nation has posted a $14.5 billion trade surplus.
The year-on-year export decline slowed down from 22 percent in March to 19.6 percent in April, but accelerated again to 28.3 percent in May.
Display panels were the only major export item that grew by 6 percent year-on-year. In stark contrast, most bellwether products struggled amid the ongoing global economic slowdown.
Exports of petroleum products and automobiles showed the deepest fall, plummeting 63 percent and 53 percent, respectively. Steel products and semiconductors fell by 34 percent and 24 percent, respectively, in the same month.
Overseas shipments of vessels also contracted by 16.7 percent.
Exports to Oceania countries jumped 168.4 percent but shipments to other regions fell by double digits.
A sharp decline continued in imports, as prices of crude oil and other commodities remained stable on international markets, along with sluggish domestic demand.
Increased holidays in May were also attributable to the sharp decline in exports, as many companies here were closed for three to five straight days at the beginning of the month as part of reducing labor costs and inventory, the ministry said.
The trade surplus is likely to further contract in the coming months, as oil prices have started to rebound lately and the won-dollar rate is becoming stable, it added.
The Korean government is bracing for some tough times ahead, in spite of recent signals of a rebound. The Bank of Korea has said the economic downturn is neither slowing down nor stopped.