S. Korea's Jan. exports plunge record 32.8 pct

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By Lee Joon-seung
SEOUL, Feb. 2 (Yonhap) -- South Korea's exports plunged a record 32.8 percent in
January from a year earlier as the worldwide economic slump cut into overseas
demand for locally made goods, a government report showed Monday.

The country's exports reached US$21.7 billion, with imports decreasing 32.1
percent to $24.6 billion for a trade deficit of $2.9 billion, according to the
report by the Ministry of Knowledge Economy.
The export drop is the steepest since the country started announcing monthly
tallies in 1980, while the drop in import numbers is the highest reached since
July 1998. The deficit is also a turnaround from a trade surplus of $542 million
in December.
The ministry said exports of most products posted negative growth with
automobiles, car parts, computers, consumer electronic goods contracting by more
than 50 percent compared to the year before. Only ships managed to increase
exports by 20 percent.
"Besides the general drop off in demand around the world, a reduced number of
working days due to the Lunar New Year holidays, and halting of production by
carmakers to deal with rising inventory contributed to drop in exports," said
Chung Jae-hoon, head of the ministry's trade and investment promotion office.
Exports to most countries fell into negative territory last month with outbound
shipments to China, and the European Union nosediving 32.2 percent and 46.9
percent in the cited month. Shipments to the United States and Japan fell 21.5
percent and 29.3 percent, respectively, the report said.
Imports, meanwhile, fell last month as South Korean demand for foreign consumer
and capital goods fell more than 20 percent.
Cold weather, however, caused imports of gas and coal to go up 51 percent and 62
percent last month from a year earlier.
The ministry said that exports may continue to loose ground for the near future
with global trade volume likely to contract 2.8 percent in 2009 from a gain of
more than 4 percent last year.
South Korea, which relies heavily on exports to fuel growth reported a trade
deficit of $13.3 billion last year from a surplus of $14.6 billion in 2007. For
this year it is aiming for a surplus of around $11 billion.
yonngong@yna.co.kr
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