S. Korea`s trade surplus may reach US$20 bln:gov`t

By Lee Joon-seung
SEOUL, March 2 (Yonhap) -- The government said Monday that weak international
energy prices and favorable exchange rates could allow the country to post a
trade surplus of US$20 billion for this year.
Exports are expected hover at last year's level of $422 billion with imports
contracting roughly 7.5 percent on-year to $402 billion, according to the
Ministry of Knowledge Economy.
"If South Korea can pull off exports equivalent to last year it should be
considered as a success in light of current worldwide economic woes, and would be
better than most other trading countries," said Lee Dong-geun, head of the
ministry's trade investment office.
The deputy minister added that because the current account usually exceeds the
country's trade surplus, South Korea's overall balance sheet in terms of goods
and services may hit the $30 billion mark for this year from a previous forecast
of $12 billion.
"This should help stabilize the sharp depreciation of the Korean won versus the
U.S. dollar," he said.
The won has fallen 52.5 percent annually to 1,440 won to the greenback as of last
month from 944 won to the dollar tallied for February 2008.
Energy prices, however, have also dropped. The average price of Dubai crude,
which makes up the bulk of the country's oil imports, stood at an average $43.5
per barrel in the first two months of this year down from $94.2 per barrel
reached in 2008.
Lee said that to better reflect overall trade conditions, the ministry in charge
of trade promotion and industrial policies will release an updated trade estimate
for 2009 later this month.
Earlier in the year the government predicted exports would grow 1 percent
annually to $426.7 billion with imports dropping 4.7 percent to $414.8 billion
for a surplus of $11.9 billion.
Senior policymakers also said that with concerted efforts by the government and
businesses, exports may reach the $450 billion mark.
yonngong@yna.co.kr
(END)