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

(ATTN: UPDATES with more details, comments from para 3)
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 into industrial and
export insurance support projects to reduce risks.
"Since the recent financial crisis there has been an overall increase in the size
of funds that can be used to help exporters, but not enough of this has gone to
help smaller sized companies, those entering new industries," said Kang
Myung-soo, head of the ministry's export-import division.
Seoul has increased the size of funds set aside for export insurance to 170
trillion won (US$146 billion) this year, but there has been criticism that not
enough has gone to firms that need it the most.
Broader export insurance coverage is critical if smaller-sized companies want to
ship out goods without worrying about getting paid later on.
Kang also said the government will ask local banks to examine firms' export
potential when reviewing loan requests instead of looking at financial
statements.
The Export-Import Bank of Korea will more than double the amount of funding given
to green tech businesses -- to 2.2 trillion won by 2010 from 1 trillion won at
present, he said.
The ministry's mid-term strategy to boost trade 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 exporting companies grow can also generate new jobs vital
for sustained growth. In the first nine months of this year, smaller firms made
up 32 percent of all exports, while top 10 exporters including giants such as
Samsung Electronics Co. and Hyundai Motor Co. made up 38 percent of all overseas
sales.
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, meanwhile, 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
after Japan and China to enter into the list of top 10 exporters since 1955.
yonngong@yna.co.kr
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