China fuels over 20 pct of S. Korea's total trade volume in 2009

SEOUL, Feb. 1 (Yonhap) -- More than 20 percent of South Korea's trade volume last
year derived from its commerce with China, Korea's central bank and customs
office said Monday, marking the first year bilateral trade has exceeded that
level.

According to the Bank of Korea (BOK) and the Korea Customs Service, South Korea's
trade with China accounted for 20.5 percent of its total global trade in 2009,
edging up from 19.6 percent the previous year.
It was the first time South Korea's reliance on China for trade came in higher
than 20 percent since data began being compiled in 1991, when the corresponding
figure was just 2.9 percent, the central bank and the customs agency noted.
South Korea exported US$86.7 billion to China, or 23.9 percent of its total
outbound shipments, while imports from Asia's largest economy reached $54.2
billion, 16.8 percent of the total, they said.
The country chalked up a record trade surplus of $40.4 billion in 2009, turning
around from a $13.2 billion deficit a year earlier, as imports shrank faster than
exports.
"South Korea's record-high surplus last year was mainly driven by China," a BOK
official said.
Meanwhile, trade with the United States and Japan made up just 9.7 percent and
10.4 percent, respectively, of South Korea's total trade volume last year.
The heavy reliance on China for trade means its economic strategy will heavily
influence South Korea in the coming months, according to some experts.
"The biggest economic factor for this year is China's exit strategy," said Kwon
Hyeok-bu, an official with the Korea Chamber of Commerce and Industry, referring
to a China's rolling back of stimulus measures implemented during the downturn.
"If China fails to make a soft landing, our economy could slump into a
double-dip", a second economic downturn followed by a brief recovery, Kwon said.
pbr@yna.co.kr
(END)

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