S. Korea's exports expected to pull off positive growth in H2: official

SEOUL, March 11 (Yonhap) -- South Korea's exports could post positive gains in
the second half as stimulus programs implemented by governments around the world
start to take effect, a senior official said Wednesday.
Knowledge Economy Minister Lee Youn-ho said in a radio interview that while
exports plummeted a record 33 percent on-year in January, they contracted by 17
percent last month, with the balance of trade reverting back to a surplus of
US$3.29 billion. In the first months of the year, the country's trade deficit
soared to $3.35 billion.
"The government expects a poor showing in terms of export volume and growth in
the first half of this year, but things may turn around from July as overseas
demand for locally made information technology products, autos and ships start to
pick up pace," he said.
The official also said that while total export volume has decreased compared to
2008, market share for key goods has actually improved.
"In the case of autos, South Korean cars accounted for 7.6 percent of all U.S.
sales last month, up from an average 4.3 percent for the whole of 2008," Lee
said. He said global market share for locally made memory chips and ships have
all improved on an annual basis.
The minister said that in order to ensure steady growth in outbound shipments,
the government plans to expand export-related financial services for
shipbuilders, while implementing measures so local companies can better produce
equipment and key components that can enhance the competitiveness of local
chipmakers.
For the auto industry, the policymaker said research and development support for
eco-friendly technology may be given, with efforts made to stimulate domestic
demand and help some companies deal with liquidity shortfalls.
Lee, however, said that while foreign countries have announced extensive plans to
help various industries, Seoul is not considering similar steps.
"We have to consider World Trade Organization rules, and any support offered will
be limited to what is permitted," he said.
Earlier in the year, Seoul said it aims to export $426.7 billion worth of goods
this year, or a gain of 1 percent from $422.4 billion tallied for 2008.
Government sources, however, hinted that the country may be hard pressed just to
maintain last year's levels as the worldwide economic slump has sapped
consumption across the board.
yonngong@yna.co.kr
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