S. Korea posts trade deficit of US$470 mln in Jan.

(ATTN: UPDATES with more details, comments from para 3)
SEOUL, Feb. 1 (Yonhap) -- South Korea posted a trade deficit of US$470 million in
January mainly due to a surge in energy imports caused by higher prices and a
prolonged cold snap, a government report showed Monday.

The deficit is a sharp turnaround from the $3.09 billion surplus tallied for the
previous month, according to the monthly report by the Ministry of Knowledge
Economy. The negative trade balance is also the first since a $3.76 billion
deficit reported in January 2009.
The provisional findings said the country's exports came to $31.08 billion last
month, up 47.1 percent on-year and the sharpest gain tallied since August 1999,
while imports jumped 26.7 percent to $31.55 billion.
"A rise in demand for crude oil, and an overall hike in international prices
resulted in the trade deficit last month, despite the strong export gain," said
Lee Dong-geun, a deputy minister in charge of trade and investment promotion.
He added, however, that seasonal factors have caused the country to post a
monthly trade deficit in January from 2008 but that the trade balance should
return to the black this month.
"Ship and information technology-related exports are expected to push up the
surplus to around $2 billion in February," the official claimed, adding that if
crude and foreign exchange rates remain at current levels, the country will be
able to post a trade surplus of $20 billion for this year.
The average price of Dubai brand crude, which makes up the bulk of the country's
oil imports, hit $76.8 per barrel in January, up 74.1 percent from just $44.1 a
year earlier. Total crude oil imports rose to $5.82 billion from $4.03 billion a
year earlier.
Average temperatures in Seoul for the month stood at minus 4.5 C from minus 2.0 C
the year before, causing a spike in demand for fuel.
Lee said last month's exports were led by automobile parts, semiconductors and
liquid crystal devices, which all rose by more than three digits, followed by
gains in consumer electronics, petrochemicals and autos.
Auto parts and liquid crystal displays increased 158 percent and 103.4 percent,
respectively, with semiconductors posting gains of 121.6 percent.
Mobile communications and ship exports remained in negative territory.
Inbound shipments of crude oil, petroleum products and nonferrous metals rose
sharply last month, along with capital and consumer goods.
Local demand for petroleum products that covers naphtha and Bunker-C oil
skyrocketed 201.1 percent with imports of nonferrous metals jumping 134.4
percent.
"Crude oil is mostly used for power generation, while petroleum products are
capital goods that can be interpreted as a sign of an economic recovery," the
deputy minister said.
The latest report, meanwhile, showed outbound shipments to China -- South Korea's
largest trading partner -- increased 88.5 percent, while those to the United
States and the European Union jumped 12.4 percent and 27.7 percent.
Exports to Japan, the Association of Southeast Asian Nations, the Middle East and
Latin America all posted double digit gains in January vis-a-vis the previous
month.
The ministry said that to fuel exports, it will work with trade promotion
agencies such as the Korea Trade-Investment Promotion Agency to reflect demands
raised by exporting companies.
yonngong@yna.co.kr
(END)

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