Slump in exports depresses annual Trade Day

By Park Jae-hyuk

Enterprises failed to receive the $10 billion Export Tower Award at the 53rd annual Trade Day ceremony hosted by the Korea International Trade Association (KITA) at COEX in southeastern Seoul, Monday.

It was the first time since 2002, when Hyundai Motor posted the highest exports at $7 billion among the firms at that time.

In 2014, Samsung Electronics garnered a $75 billion Export Tower Award, and the next year SK hynix took the top spot by exporting $15 billion worth of products.

Firms can recieve the Export Tower Award by surpassing certain amounts of exports, but only once. KITA explained the long-lasting slump in exports resulted in poor records this year.

According to a report from the Institute for International Trade, Korea is estimated to have exported $497 billion this year, down 5.6 percent from last year.

As the country’s exports dropped 8.0 percent last year, Korea will likely post negative growth for two consecutive years, for the first time since 1958, the report said.

On Nov. 14, the World Trade Organization (WTO) announced Korea’s exports fell below France and Hong Kong for the January-to-August period, which placed Korea in 8th place, two steps lower than where it was last year.

KITA said 1,209 companies received Export Tower Awards this year, the lowest since 2004 when 1,191 received the award. Last year, more than 1,300 firms received the prizes.

The number of firms that received Export Tower Awards for $100 million and more this year was 55, less than half the number in 2011 at 129.

However, KITA anticipated Korea will show growth in exports next year, followed by the economic recoveries of the U.S. and newly emerging countries, an increase in global oil prices and the removal of oversupply.

“Because Korea is less likely to expect rapid growth than before, we have to find a new growth model,” KITA Chairman Kim In-ho said in an opening speech at the ceremony.

“Quantitative growth of exports is important, but we should try harder to overcome structural problems for the long-term.”

About 1,400 officials from the government and related organizations attended the event, including Prime Minister Hwang Kyo-ahn and Minister of Trade, Industry and Energy Joo Hyung-hwan.

President Park Geun-hye who is embroiled in the political scandal did not attend the event. The President’s absence was the first time since 1989, when then-President Roh Tae-woo was on an overseas trip.

At the event, 30 CEOs received their prizes on the platform, representing the 760 meritorious entrepreneurs and 1,209 Export Tower awardees.