S. Korea's trade surplus hits US$3.3 bln in Feb.

(ATTN: UPDATES with more details in paras 5, 9; ADDS new information, comments by
official in paras 6-8, 15)
By Lee Joon-seung
SEOUL, March 2 (Yonhap) -- South Korea's trade surplus reached US$3.3 billion in
February thanks to a sharp drop in imports and surge in ship exports, a
government report showed Monday.

The country's exports reached $25.8 billion last month falling 17.1 percent
on-year, with imports nosediving 30.9 percent to $22.5 billion, according to the
Ministry of Knowledge Economy. The monthly surplus is the largest since $3.5
billion tallied for July 2007.
It also said favorable exchange rates and more working days compared to February
2008 helped the trade balance revert back into positive territory after falling
into the red in the first month of this year.
The Korean won slid 52.5 percent on-year against the U.S. dollar in the cited
month, making locally made goods cheaper abroad, while the Lunar New Year holiday
that fell January instead of February, increased the number of working days by
two compared to the previous year.
In January, the country's monthly trade deficit topped $3.36 billion with exports
plunging a record 33.8 percent annually. The country posted a trade surplus in
the fourth quarter of 2008, although the balance of trade posted a deficit of
$13.3 billion for the entire year.
The positive trade balance is expected to help the current account surplus reach
$4.5 billion for the month.
"Besides the surplus, exports rose $4.5 billion in the cited month vis-a-vis
January, with imports dropping by $2.2 billion," Lee Dong-geun, head of the
ministry's trade investment office.
He forecast that if imports continue to fall off, the country should be able to
pull off monthly surpluses in the future.
The ministry in charge of industrial policy, commerce and trade promotion said
while overall export conditions remained unfavorable due to the global economic
slump, exports of ships soared 47.4 percent annually, with mobile communication
equipment moving up 3.1 percent.
Exports of steel, general machinery, textiles, display panels, petrochemicals,
cars, auto parts, consumer electronics, petroleum products, semiconductors and
computers all posted negative export growth.
Imports were down as energy prices continued to remain weak and economic
uncertainties sapped local demand.
Crude oil and petroleum product were down 48 percent and 32 percent each, with
demand for foreign cars and household goods all dipping by double digits.
In the first 20 days of the cited month, exports to Oceania shot up 324.5
percent, with numbers for Latin America, the Middle East and China all going up.
Exports to the United States, the European Union fell 2.5 percent and 5.7
percent, respectively, with outbound shipments for Japan and the Association of
Southeast Asian Nations decreasing 19.4 percent and 31.1 percent year-on-year.
Seoul, meanwhile, said it is aiming for a trade surplus of at least $20 billion
for 2009 with exports remain roughly the same as 2008 at $422 billion. Imports
are expected to fall 30 percent.
In the first two months of this year the country's exports reached $47.21
billion, with imports topping $47.27 for a deficit of about $6 million.
yonngong@yna.co.kr
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