S. Korea's 2009 trade surplus to top that of Japan

SEOUL, Nov. 4 (Yonhap) -- South Korea's full-year trade surplus is expected to surpass that of Japan for the first time ever this year, helped by favorable exchange rates and successful export diversification strategies, the governmentsaid Wednesday.

The Ministry of Knowledge Economy said the country's accumulated trade surplus
from January through October reached US$34.5 billion, and should exceed a record
$40 billion for the entire year.
In contrast, Japan's total trade surplus stood at just $11.0 billion between
January and September, with the total likely to hover around $20 billion by the
end of 2009, it said.
"The main contributing factor can be found in favorable exchange rates that made
locally made products more affordable abroad, along with steady gains made by
South Korean companies in product quality which bolstered overall
competitiveness," a ministry official said.
The Korean won stood at an average 1,312.7 won to US. dollar in the first nine
months of this year, from 1,012.6 won to the greenback in the same period last
year.
Locally made products have also made steady gains in market share in areas like
information technology products and autos.
He added successful diversification efforts by South Korean companies that made
inroads into developing economies helped soften the impact of the recent global
financial crisis. The global shock hurt demand across the board but affected
advanced industrialized economies more.
"Japan's exports are oriented towards industrialized markets that suffered the
most from the aftermath of last year's Lehman Brothers collapse," the official
said.
The ministry, meanwhile, said South Korea may not be able to repeat such a feat
in 2010 since the country may not benefit from a weak won.
yonngong@yna.co.kr
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