Exports Show Signs of Rebound

By Kim Hyun-cheol
Staff Reporter

South Korea maintained its trade surplus for the eighth consecutive month in September posting $5.37 billion in the black.

Analysts said the surplus comes on the back of a turnaround in key industries including semiconductors, automobiles and ships, adding it represents further signs of a possible economic rebound.

Overall outbound shipments were $34.97 billion won, down 6.5 percent from a year ago, and imports stood at $29.6 billion ― a 25.1-percent year-on-year contraction, the Ministry of Knowledge Economy said Thursday.

As in the previous months, Korea managed an overall surplus in spite of a fall in both exports and imports. But exports are showing signs of turning positive in the near future, the ministry said.

Overall reduction rates improved from a 20.9-percent fall in August, marking a single-digit decrease for the first time since the global financial crisis hit the country.

The government estimated Korea's surplus to be around $3 billion won earlier last month.

Traditional bellwethers led the way ― exports of liquid crystal displays continued to roll with growth of 29.4-percent growth, while several other items also turned positive.

Semiconductor exports posted 22.8-percent growth, up from a 7.2-percent decrease the previous month. Thanks to recovering demand and rising prices, their shipments were tallied at $3.61 billion, the largest in 33 months.

Autos and auto parts also saw their exports rise 20.5 percent and 8.8 percent, respectively, from 24.1-percent and 15.2-percent declines the previous month.

Most products maintained growth, but at smaller rates than in August. Exports of vessels, which recorded a 7.4-percent fall year-on-year, grew 30.4 percent from August.

Exports to key destinations such as China and the United States also improved as shrinkage eased.

In the fourth quarter, both exports and imports will return to growth on the back of the recovering global economy, ministry officials said.

Korea's accumulated trade surplus this year stood at $32.1 billion, raising the hopes of hitting a record high at the end of the year. Before this year, the biggest surplus for the first nine months was reported in 1998 at $28.9 billion.

If the trend goes on as expected, the country will reach a record high $40 billion trade surplus this year, the ministry said.

With global trade still staggering, Korea is estimated to be showing a relatively solid performance this year so far. In the first half, its overall exports jumped to ninth in the world, ahead of rivals Russia, Canada and the United Kingdom, making it into the top 10 for the first time.

hckim@koreatimes.co.kr