Inter-Korean trade falls off 8.5 pct in 2009

SEOUL, Jan. 18 (Yonhap) -- Trade between South and North Korea declined 8.5
percent on-year in 2009 due mainly to the worldwide economic slowdown that sapped
demand and investments, a government report said Monday.

The Korea Customs Service (KCS) said inter-Korean trade reached US$1.66 billion
last year, down from a record high of $1.82 billion tallied for 2008.
Outbound shipments reached $732.62 million while imports totaled $933.46 million
for a trade deficit of $200.84 million, the latest report said.
Last year, financial turmoil triggered by the collapse of Lehman Brothers caused
global trade to decline sharply. South Korean exports fell 13.9 percent on-year
to $363.5 billion, while imports dropped 25.8 percent to $323.1 billion.
The deficit figure is the highest since cross-border trade began in earnest in
1999. It also marks the second year in a row that Seoul exported less than it
imported from the communist country. In 2008, the deficit reached $53.94 million.
The KCS said despite frayed relations between Seoul and Pyongyang exacerbated by
Pyongyang's detonation of a second nuclear device in May last year and a naval
clash off the west coast in November, overall trade volume began to pick up in
the second half.
"Trade fell to a low of just over $100 million in February but rebounded to $173
million in September and gained momentum in the last three months of the year,
which stemmed the overall decline," the report said.
Two-way trade had increased steadily over the past decade from $328.65 million in
1999 to $651.68 million in 2002 and surpassing the $1 billion mark for the first
time in 2005.
It reached $1.79 billion in 2007 and peaked at $1.82 billion the following year.
yonngong@yna.co.kr
(END)