Exports to China rise on Beijing's stimulus programs

SEOUL, Aug. 30 (Yonhap) -- South Korean exports to China are on the mend thanks
mainly to various stimulus efforts being pursued by Beijing, a local economic
think tank said Sunday.
The Institute for International Trade (IIT) said exports to China contracted 12.9
percent on-year in July compared to the 21.8 percent drop tallied for all
outbound products made in South Korea in the same month.
In the cited month, South Korean companies sold US$7.86 billion worth of goods to
the neighboring country.
It also said that while exports to South Korea's No. 1 overseas market have yet
to fully recover, there are signs that things are improving.
South Korean exports, which contracted 25.6 percent on-year in May, posted minus
growth of 16.1 percent the following month, helped in part by better sales of
products like automobile parts and displays, said the IIT under the Korea
International Trade Association.
"Such gains are the result of Beijing's effort to revive the economy by
stimulating domestic consumption," the IIT report said.
The think tank added that such developments spells good news for the country that
relies heavily on trade to fuel its economy.
Earlier this month, the government said the country shipped $198 billion worth of
goods from January through July -- a drop of over 22 percent compared to last
year. It added imports topped $172 billion in the same period for a surplus of
$26 billion.
For the whole of this year, Seoul expects the trade surplus to exceed $31
billion, a turnaround from a deficit of a little over $13 billion last year.
yonngong@yna.co.kr
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