Inter-Korean trade dips 20 pct in January

SEOUL, Feb. 22 (Yonhap) -- Trade between South and North Korea declined 19.6 percent in January from a year earlier, apparently hit by the slumping South Korean economy and frayed Seoul-Pyongyang relations, official data showed Sunday.

Inter-Korean trade reached US$113 million in January, down from $140.5 million a
year ago, marking the fifth straight monthly fall, the Unification Ministry data
said.
"The decline in inter-Korean trade appears compounded by several factors like the
slowing economic downturn and frozen relations between the two Koreas," the
ministry said in a statement.
Inter-Korean relations have been chilled since conservative South Korean
President Lee Myung-bak took office a year ago, pledging to get tough on North
Korea.
The South Korean economy is sharply slumping, due to tumbling exports and
sluggish domestic demand. South Korea is widely expected to post negative
economic growth this year, the first annual contraction since the 1997-98 Asian
financial crisis.
sooyeon@yna.co.kr