S. Korea seeks to become 8th largest trading nation by 2014

SEOUL, Nov. 30 (Yonhap) -- South Korea hopes to pull off double-digit export
growth in the coming years to become the world's eighth largest trading nation by
2014, the government said Monday.

The country wants exports to grow 12.5 percent annually over the next six years,
and to bring international trade up to US$1.3 trillion, the Knowledge Economy
Ministry said at a Trade Day ceremony in Seoul. To achieve this, it plans to
widen support for new small businesses and the emerging green technology sector.
During the annual trade event, attended this year by President Lee Myung-bak, the
ministry said government-run pension funds could invest in industrial and export
insurance support projects to reduce risks.
The government will also ask local banks to examine firms' export potential when
reviewing loan requests, according to the ministry. The Export-Import Bank of
Korea will more than double the amount of funding given to green tech businesses
-- to 2.2 trillion won (US$1.8 billion) by 2010 from 1 trillion won at present.
The ministry's mid-term strategy calls to build up at least 10,000 new small- and
medium-size exporters that can each export more than $2 million worth of good
every year. These companies could account for 40 percent of all outbound
shipments and reduce the country's dependence on large conglomerates for exports.

Helping smaller-sized companies grow can also generate new jobs that are vital
for sustained growth.
South Korea will also use free trade agreements with various countries to promote
exports, and will lower transportation related costs by building up
infrastructure at local ports and industrial parks, the ministry said.
The government hopes Korea's global market share will reach near 3 percent by
2014, when it expects exports to total $650 billion -- with the number of
individual export items exceeding 12,500.
Its exports and imports are expected to fall this year by 13.9 percent and 26.3
percent, respectively, to $363 billion and $321 billion, due mainly to the
worldwide economic crisis. That would create a record trade surplus of $42
billion.
In 2010, the ministry said exports may grow 12.9 percent to $410 billion, with
imports increasing 21.5 percent to $390 billion for a surplus of $20 billion.
South Korea's global export ranking is expected to climb to ninth place this year
from 12th tallied for last year. The gain will make it the third in the world to
enter into the list of top 10 exporters after Japan and China since 1955.
yonngong@yna.co.kr
(END)

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