ID :
43338
Fri, 01/30/2009 - 18:39
Auther :
Shortlink :
https://www.oananews.org//node/43338
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S. Korea expected to post large trade deficit in Jan.
SEOUL, Jan. 30 (Yonhap) -- South Korea is expected to post a sizable trade deficit in January due to a sharp drop in outbound shipments and increasing energy imports, government and industry sources said Friday.
The nation's trade deficit may amount to US$3.8-4.0 billion this month, roughly
equal to the shortfall reported in the first month of 2008, according to the
sources at the Ministry of Knowledge Economy and the Korea International Trade
Association (KITA).
Last year, the country's trade deficit reached $13.3 billion, a dramatic reversal
from the surplus of $14.6 billion reported for the previous year and the first
shortfall since 1997.
According to the ministry, exports in January have contracted 35 percent from a
year earlier with sales down by $3 billion from December, when the country's
trade surplus reached $540 million despite a 17.9 percent contraction in exports.
"Cold weather caused a surge in demand for fuel imports and the four-day-long
Lunar New Year holiday hurt overall production, which played a part in the
imbalance," said a government official who declined to be identified.
Imports of natural gas, used for heating, rose by $1 billion compared to
December. The surge in imports of gas and coal used for heating largely offset
weak crude oil prices that have fallen to around $40-50 per barrel in recent
weeks.
KITA also said the global liquidity crunch triggered by the collapse of Lehman
Brothers Holdings Inc. in September and troubles surrounding U.S. automakers have
significantly cut into exports.
Trade experts said, meanwhile, that while the drop in exports is not as severe as
that in Japan and Taiwan, conditions do not look good at least up to June.
They added that more working days and warmer temperatures in February should help
the country post a trade surplus.
The government said it is aiming for a trade surplus of $11.9 billion this year
with exports targeted to reach $426.7 billion, or a 1 percent gain from the year
before.
yonngong@yna.co.kr
The nation's trade deficit may amount to US$3.8-4.0 billion this month, roughly
equal to the shortfall reported in the first month of 2008, according to the
sources at the Ministry of Knowledge Economy and the Korea International Trade
Association (KITA).
Last year, the country's trade deficit reached $13.3 billion, a dramatic reversal
from the surplus of $14.6 billion reported for the previous year and the first
shortfall since 1997.
According to the ministry, exports in January have contracted 35 percent from a
year earlier with sales down by $3 billion from December, when the country's
trade surplus reached $540 million despite a 17.9 percent contraction in exports.
"Cold weather caused a surge in demand for fuel imports and the four-day-long
Lunar New Year holiday hurt overall production, which played a part in the
imbalance," said a government official who declined to be identified.
Imports of natural gas, used for heating, rose by $1 billion compared to
December. The surge in imports of gas and coal used for heating largely offset
weak crude oil prices that have fallen to around $40-50 per barrel in recent
weeks.
KITA also said the global liquidity crunch triggered by the collapse of Lehman
Brothers Holdings Inc. in September and troubles surrounding U.S. automakers have
significantly cut into exports.
Trade experts said, meanwhile, that while the drop in exports is not as severe as
that in Japan and Taiwan, conditions do not look good at least up to June.
They added that more working days and warmer temperatures in February should help
the country post a trade surplus.
The government said it is aiming for a trade surplus of $11.9 billion this year
with exports targeted to reach $426.7 billion, or a 1 percent gain from the year
before.
yonngong@yna.co.kr
