European crisis to have 'limited' impact on Korean exports

SEOUL, May 14 (Yonhap) -- The fiscal crisis in Europe will likely have a
"limited" impact on South Korea's overall exports as bilateral trade volume is
relatively small, leading South Korean exporters said Friday.
In a meeting with government officials, executives from Samsung Electronics Co.,
LG Display, POSCO, Hyundai Heavy Industries Co. and STX said that the so-called
PIIGS -- Portugal, Ireland, Italy, Greece and Spain -- accounted for only a small
percentage of all outbound shipments.
They said total exports to these countries reached $1.4 billion, or 1.4 percent,
of South Korea's total exports in the first three months of this year.
The large companies -- leaders in electronics, shipbuilding, auto and steel
production -- also said the decision by European Union finance ministers earlier
this week to set up a 750 billion euro (US$939.5 billion) fund to guard against
financial instability has helped ease jitters.
Company executives, however, said that because the latest crisis is the result of
weak economic fundamentals in these countries, a considerable amount of time may
have to pass before their concerns subside completely.
While the fallout may not be severe for South Korean exporters, wider
developments in the global financial markets should be carefully monitored in the
future, they added.
Officials from the Ministry of Knowledge Economy said they will keep close tabs
on changes taking place in Europe and share information with exporters so they
will be less affected by unforeseen trouble.
Without going into details, officials said they may set up industry-specific
support measures if conditions deteriorate.
yonngong@yna.co.kr
(END)

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