S. Korea forecast to log US$3 bln trade surplus this month: gov't

SEOUL, March 5 (Yonhap) -- South Korea is set to record a second-consecutive
monthly trade surplus in March thanks to a continued increase in overseas
shipments of vessels, the government said Thursday.
"The March trade balance is expected to reach around US$3.3 billion, similar to
the level in February, on the back of sustained growth in exports of ships," the
prime minister's office said in a statement on the outcome of a meeting of top
economic policy makers.
Officials who were at the meeting, including Prime Minister Han Seung-soo,
Finance Minister Yoon Jeung-hyun and Financial Supervisory Commission head Chin
Dong-soo, predicted that total exports for the year will likely surpass the
initial forecast of $12 billion.
South Korea reported its first trade deficit in over a decade in 2008 with the
imbalance reaching $13.3 billion, mostly on a surge in crude oil prices. January
2009 saw a deficit of $3.35 billion but the country recorded a $3.3 billion
surplus last month.
The office also said that meeting participants agreed to seek measures to
encourage businesses to increase investment since the government's fiscal
measures alone are of limited efficacy in reviving a slump in domestic
consumption.
"Respective government agencies will listen to companies and provide means to
reduce investment risks," the officials agreed at the meting.
In January, facility investment plunged 25.3 percent from a year earlier, slowing
further from the previous month's 23 percent decline, according to the National
Statistical Office.
The officials also said that they would, if required, seek to inject more
foreign-exchange stabilization bonds at an "adequate time" as part of measures to
cope with volatile financial market conditions.
odissy@yna.co.kr
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