S. Korea posts trade surplus of US$1.22 bln in Oct.

By Lee Joon-seung

SEOUL, Nov. 3 (Yonhap) -- South Korea posted a trade surplus of US$1.22 billion in October on a surge in exports of ships and oil products as well as lower crude prices, a government report showed Monday.

Exports rose 10 percent on-year to $37.89 billion last month, while imports
gained 12 percent to $36.67 billion, according to the report by the Ministry of
Knowledge Economy. It was the nation's first trade surplus since May.
In the January-October period, South Korea's cumulative trade deficit reached
$13.45 billion, compared with a surplus of $13.62 billion a year earlier.
According to the report, ship exports jumped 118 percent annually to $4.17
billion, with overseas shipments of oil products and mobile communication
equipment surging 45 percent and 14 percent, respectively.
Oil product exports topped $3.36 billion thanks to steady demand from China and
Southeast Asia, with overseas shipments of mobile telecommunication equipment
reaching $3.98 billion.
Besides ships, oil products and mobile telecommunication equipment, exports of
steel increased 40 percent with slight gains being posted for textiles, auto
parts and general machinery.
Petrochemicals posted zero growth, while exports for crystal displays, autos,
semiconductors, consumer electronics and computers declined during the month
vis-a-vis October 2007.
The ministry said the October surplus also resulted from a 14.8 percent drop in
crude prices. Oil products fell to an average of $98 per barrel last month from
$115 per barrel in September, while steel imports dropped $890 million from the
previous month.
The latest report, meanwhile showed exports to Central and South America gaining
32.1 percent, while those to the Middle East and Oceania gained 22.4 percent and
20.9 percent.
Exports to the United States jumped 10.8 percent, with outbound shipments to the
10-member Association of Southeast Asian Nations moving up 6.3 percent. South
Korea's exports to Japan gained 5.5 percent, with numbers for China and the
European Union dropping 1.8 percent and 8.2 percent each as repercussions of the
slowdown in the global economy start to take effect.
Government officials said that a drop in energy prices and slowdown in the
domestic economy were helping to contain import growth and stressed that
continued efforts will be made to help local companies expand overseas market
share so the country can achieve a trade surplus in the fourth quarter.
"Seoul will check to remove administrative red tape, support overseas marketing
endeavors and increase export insurance coverage to help companies ship products
abroad," a official said.