S. Korea's goods surplus outpaces Japan in first half

SEOUL, Oct. 21 (Yonhap) -- South Korea's trade surplus in goods stayed ahead of Japan during the first half of 2009, a report showed Wednesday, suggesting that Korean-made products were more competitive than their Japanese counterparts amid a global slowdown.

According to the report by the Organization for Economic Cooperation and
Development, South Korea's goods account surplus, based on the net flow of goods
in and out of the country, amounted to US$26.6 billion during the January-June
period. This marked the second largest among the 30 OECD member countries
following Germany with $71.9 billion.
During the same period, Japan ranked 7th by posting a goods account surplus of
$9.1 billion, the report showed. Japan, which had retained the top position until
2000, saw its ranking slide to 5th last year when the global financial crisis
erupted.
The figure marks the first time that South Korea has outperformed Japan in the
goods account surplus. Experts predict that South Korea will likely maintain the
lead over its neighboring country throughout the year.
The increased surplus is mostly attributed to a relatively weak local currency
against the U.S. dollar. A weak currency makes products sold in overseas markets
cheaper, raising their price competitiveness.
More diversified export items and markets also played a part, helping cushion the
impact of a protracted global economic recession.
"Even after excluding the currency effect, the latest data show that products
made by our companies are enjoying better price competitiveness," a finance
ministry official said.
"Our companies also are coping better with the global economic crisis than
Japanese rivals by stepping up efforts to diversify their export markets toward
developing countries."
kokobj@yna.co.kr