ID :
59273
Wed, 05/06/2009 - 17:56
Auther :
Shortlink :
https://www.oananews.org//node/59273
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Gov`t aims to reduce trade deficit with Japan by US$10 bln this year
SEOUL, May 6 (Yonhap) -- South Korea aims to reduce its trade deficit with Japan
by US$10 billion within the year by fueling exports of consumer products and farm
goods, the government said Wednesday.
The plan calls for cutting the deficit to around $22.7 billion, which can help
South Korea reduce its trade dependence on Japan, the Ministry of Knowledge
Economy said.
It said to buoy outbound shipments, the government will support 100 small- and
medium-sized enterprises (SMEs) that have the potential to expand their market
share in Japan by providing access to trade assistance funds, export insurance
coverage and offering guarantees to overseas marketing efforts.
The companies eligible to receive aid mostly export consumer goods, agriculture
products, processed food and industrial parts and components.
Last year, South Korea's trade deficit with its neighbor topped $32.7 billion,
with $20.9 billion in industrial parts and components.
"The policy can help companies maximize price competitiveness brought on by
favorable exchange rates and cut back on imports from Japan," a ministry official
said.
He said if the plan is successful, Japanese imports vis-a-vis the total brought
into the country may fall under the 10 percent range by 2012 from 14 percent
tallied for last year.
The move to be coordinated with the Korea International Trade Association, the
Small Business Corp. and the Korea Trade-Investment Promotion Agency will also
help arrange trade talks and investor relations tours that can boost outbound
trade and attract more foreign direct investment.
The measures come as the strong Japanese yen caused the trade deficit to fall to
$7.5 billion as of April 20 of this year, from $11.7 billion reached the year
before.
The ministry in charge of industrial policies and trade promotion, meanwhile,
said it will provide aid to 50 key research and development (R&D) programs that
can enhance the competitiveness of South Korean products down the road.
yonngong@yna.co.kr
(END)
by US$10 billion within the year by fueling exports of consumer products and farm
goods, the government said Wednesday.
The plan calls for cutting the deficit to around $22.7 billion, which can help
South Korea reduce its trade dependence on Japan, the Ministry of Knowledge
Economy said.
It said to buoy outbound shipments, the government will support 100 small- and
medium-sized enterprises (SMEs) that have the potential to expand their market
share in Japan by providing access to trade assistance funds, export insurance
coverage and offering guarantees to overseas marketing efforts.
The companies eligible to receive aid mostly export consumer goods, agriculture
products, processed food and industrial parts and components.
Last year, South Korea's trade deficit with its neighbor topped $32.7 billion,
with $20.9 billion in industrial parts and components.
"The policy can help companies maximize price competitiveness brought on by
favorable exchange rates and cut back on imports from Japan," a ministry official
said.
He said if the plan is successful, Japanese imports vis-a-vis the total brought
into the country may fall under the 10 percent range by 2012 from 14 percent
tallied for last year.
The move to be coordinated with the Korea International Trade Association, the
Small Business Corp. and the Korea Trade-Investment Promotion Agency will also
help arrange trade talks and investor relations tours that can boost outbound
trade and attract more foreign direct investment.
The measures come as the strong Japanese yen caused the trade deficit to fall to
$7.5 billion as of April 20 of this year, from $11.7 billion reached the year
before.
The ministry in charge of industrial policies and trade promotion, meanwhile,
said it will provide aid to 50 key research and development (R&D) programs that
can enhance the competitiveness of South Korean products down the road.
yonngong@yna.co.kr
(END)
