(2nd LD) S. Korea trade surplus rises to US$4.37 bln in May

(ATTN: UPDATES with more details, comments throughout from para 4)
SEOUL, June 1 (Yonhap) -- South Korea posted a trade surplus of US$4.37 billion
in May thanks to strong overseas demand for semiconductors and automobiles, a
government report showed Tuesday.
The favorable trade balance is larger than the $4.06 billion surplus tallied for
the previous month and marks the fourth straight month that the country exported
more than it imported, the Ministry of Knowledge Economy said.
Exports came to $39.49 billion last month, up 41.9 percent on-year, with imports
jumping 50.0 percent to $35.12 billion, the monthly report said.
"Trade figures for last month are noteworthy since worldwide demand for locally
made products continued to grow despite the financial crisis unfolding in some
European countries and the sinking of a South Korean naval ship raised
geopolitical risks that could have hurt international transactions," said Kim
Kyung-sik, assistant minister for trade and investment.
He said the solid export gains are being fueled by better-than-expected global
economic growth.
Seoul originally predicted that the global economy will expand 3.1 percent in
2010, but recent forecasts by the International Monetary Fund have raised growth
figures to 4.2 percent.
The official said with the exception of mobile communication equipment that
contracted 29.2 percent on-year, outbound shipments of autos, semiconductors,
consumer electronic appliances, display panels and ships all posted double-digit
gains compared to the year before.
Exports of cars and semiconductors surged 70.2 percent and 81.0 percent,
respectively.
On a daily basis, South Korea exported $1.84 billion worth of goods up from $1.66
billion exported per day in April, although there were 2.5 less working days
compared to the previous month.
In the first five months of this year South Korea's trade surplus reached $11.87
billion.
The official added that exports to most countries grew last month, with 55.8
percent gains reported for China, South Korea's largest trading partner.
Shipments to the Association of Southeast Asian Nations and Japan surged more
than 60 percent, with exports to the United States and the European Union also
moving up by double digits. Exports to Europe gained 38.1 percent in the cited
month.
"Imports, meanwhile, shot up mainly due to demand for crude oil, steel products
and manufacturing machinery for semiconductors," Kim said. Raw material imports
surged 90.8 percent vis-a-vis the year before, with 36.4 percent and 60.7 percent
gains being tallied for capital goods and consumer products.
The country imported $6.39 billion worth of oil last month, a 84.2 percent
increase from May 2009 as the average price for a barrel of crude reached $84.9.
The assistant minister, meanwhile, claimed volume of exports and imports have
recovered to the pre-global financial crisis levels.
"At the present pace, the country's trade surplus may exceed $14 billion in the
first half and surpass the $20 billion target set for the entire year," he said.
Kim, however, said that troubles in Europe, and instability in raw material and
foreign exchange markets, may have an adverse effect on exports and trade balance
in the second half.
yonngong@yna.co.kr
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