Korea's trade surplus reaches US$120 mln in early March

SEOUL, March 12 (Yonhap) -- South Korea recorded a trade surplus of US$120 million in the first 12 days of March as the ongoing economic slump hurt demand for imports, the customs office said Thursday.

The country exported $8.65 billion worth of goods during the period, while
bringing in $8.53 billion in foreign products and raw materials, the Korea
Customs Service (KCS) said.
The modest surplus raises prospects for a favorable trade balance for March, as
the country normally posts a trade deficit until the 20th of each month before
exports rally in the last 10 days. This trend is due to a steady inflow of raw
materials and energy that takes place evenly throughout the month, while
companies stockpile products before shipping them all at once to cut back on
transportation costs.
South Korea reported a trade deficit of $3.35 billion in January, caused mainly
by a record drop in exports, but reverted to a surplus of $3.29 billion in
February as imports fell at a steeper pace than exports.
Policymakers, meanwhile, said that while exports will likely post negative growth
in the first half, things should improve after July.
Seoul said earlier in the year that it expected exports to grow 1 percent on-year
to $426.7 billion, but officials conceded that it may be hard to reach last
year's total of $422.4 billion in the face of weak consumption by most trading
partners.