S. Korea post trade surplus in first 20 days of Feb.

(ATTN: UPDATES with more details in paras 3, 5; ADDS with new information in paras
5, 7-10)
SEOUL, Feb. 22 (Yonhap) -- South Korea posted a trade surplus in the first 20
days of this month thanks to slight gains in exports growth and weak demand for
imported goods, the government said Sunday.

The Ministry of Knowledge Economy said exports gained 0.4 percent on-year to
$17.79 billion in the cited period, while imports plunged 23.2 percent to $16.86
billion for a surplus of $930 million.
"The gains were brought on by $1.5 billion increase in ship exports vis-a-vis the
previous month, a drop in crude oil prices and seasonal factors like the Lunar
New Year holiday," a official said. He cautiously added that despite overall
uncertainties, the country may be able to pull off a surplus in March if current
trends continued.
Ships make up a sizable part of the country's exports and are not easily affected
by sudden downturns as they are ordered well in advance. The Lunar New Year
holiday, which fell in February last year, took place in late January, leaving
more working days this month and helping industrial production.
Autos and consumer electronics benefited the most from more working days this month.
The ministry in charge of industrial policy and trade said the figures reflect a
turnaround from the record 33.8 percent annual plunge in exports tallied for
January. It added that the surplus is noteworthy since the country's trade
balance usually stays in the red in the first 20 days of a month, before making a
comeback. The surplus reported as of last Friday should translate into a gain in
export growth and a larger surplus for the month.
In January, the country's trade deficit reached $3.35 billion after posting a
modest surplus in the fourth quarter. South Korea reported its first trade
deficit in over a decade in 2008 with the imbalance reaching $13.3 billion.
The deficit, for the most part, was caused a the surge in crude oil prices that
topped an average $94 per barrel last year compared to around $68 in 2007. Coming
into this year the average stands at $43 per barrel.
Others in the ministry said the surplus should help stabilize the sudden plunge
in the foreign exchange rate. The won has depreciated 16.4 percent against the
greenback this year.
yonngong@yna.co.kr
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