S. Korea's trade surplus rises to US$5.37 bln in Sept.

(ATTN: UPDATES with more details, comments from para 3)
SEOUL, Oct. 1 (Yonhap) -- South Korea's trade surplus reached US$5.37 billion in
September, up sharply from $1.7 billion the month before mainly due to a plunge
in imports, a government report showed Thursday.
The country's exports came to $34.97 billion last month, falling 6.6 percent
on-year, with imports plummeting 25.1 percent to $29.60 billion, according to the
report by the Ministry of Knowledge Economy.
September marks the eighth consecutive month that the country exported more than
it imported, with the size of the trade surplus in the past nine months reaching
$32.06 billion. The export decline also represents the first time this year that
outbound shipments fell by a single digit compared to 2008.
"At the present rate, the trade surplus will top a record $40 billion by year's
end from the previous high of $39 billion reached in 1998," said Lee Dong-geun, a
deputy minister in charge of trade and investment promotion.
He stressed that while weak imports were the leading factor in the sizable
monthly surplus, exports have steadily regained much of their past buoyancy as
global markets are showing signs of making a comeback from the financial crisis
triggered by the collapse of Lehman Brothers last year.
"Daily export volume for last month topped $1.46 billion, the highest since
October of 2008," the official said. He added that the total monthly export
volume of just under $35 billion for September was on par with the monthly
average reached in 2008.
"The government thinks exports are clearly on the mend, which can be interpreted
as another sign that the economy as a whole is recovering," the official claimed.
The latest report, meanwhile, said that improvements in exports were helped by
liquid crystal displays, semiconductors, automobiles and auto parts.
Outbound shipments of display panels jumped 29.4 percent on-year, with numbers
for semiconductors and autos gaining 22.8 percent and 20.5 percent, respectively.
Exports to China, the United States and Europe continued to fall due to weak
worldwide demand, although the level of decline has eased.
Outbound shipments to China -- South Korea's leading overseas market -- declined
just 1.9 percent, with numbers for the United States dropping 7.8 percent
on-year.
The ministry in charge of the country's trade promotion policies said despite
some gains in domestic demand and investment, imports remained well short of last
year's total of $39.52 billion.
It said this is partly the result of low international prices for raw materials
and crude oil that stood at 40 percent below last year's levels as the sluggish
global economy affected overall demand.
The ministry said that while exports may contract compared to the year before up
till October, numbers should rebound into positive territory from November
onwards.
It said on-year export growth for the fourth quarter may actually reach the 10
percent range from the minus 20.6 percent calculated for the first nine months of
this year.
yonngong@yna.co.kr
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