S. Korea`s trade surplus reaches record $41 bln in 2009

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SEOUL, Jan. 1 (Yonhap) -- South Korea's trade surplus reached a record 41.0
billion in 2009 mainly due to a sharp drop in imports caused by the worldwide
economic slump, a government report showed Friday.
The report showed exports falling 13.8 percent on-year to $363.8 billion, with
imports plunging 25.8 percent to $322.8 billion, the Ministry of Knowledge
Economy said.
The favorable trade balance for last year surpasses the previous record of $39.0
billion reached in 1998 as the country tried to recover from the Asian financial
crisis by cutting back on imports, it said.
Last year's tally marks a turnaround from the $13.2 billion trade deficit posted
in 2008.
The ministry also said the country's global export ranking rose to ninth place
last year from 12th in 2008 as its outbound shipments were hurt less than those
of other leading trading nations. Global market share of South Korean made
products reached the 3.0 percent range for the first time ever in 2009.
By product, overseas sales of ships and liquid crystal displays helped exports
despite a general fall-off in demand caused by the economic crisis, which sapped
private consumption and corporate investment around the world.
Exports of liquid crystal devices soared 28.5 percent on-year as local companies
expanded their dominance in this field, with sales of ships gaining 4.4 percent
despite a sharp drop in new orders.
Foreign sales of semiconductors were down 5.3 percent, with textiles, mobile
communication equipment, petrochemicals and textiles all posting losses in the 10
percent range. Exports of steel products, autos and general machinery reported
contractions exceeding 20 percent vis-a-vis the year before with fuel products
plunging 39.2 percent.
The ministry, which is in charge of the country's trade promotion policies, said
exports to developed economies fell 21.2 percent annually, while numbers for
developing countries decrease 12.5 percent.
"Overall exports to developing economies made up 71.2 percent of all outbound
shipments in 2009 from 68.9 percent in the previous year," said Kang Myung-soo,
head of the ministry's export-import division.
Kang said exports to Oceania jumped 47.3 percent thanks to surge in ship orders,
while those to China, South Korea's largest trading partner, fell 7.5 percent.
Overseas sales to the United States and the European Union fell 18.9 percent and
21.6 percent respectively, with volume to Japan dropping 23.7 percent.
The official said imports were affected by weak crude oil and raw material prices
that nosedived 32.9 percent on-year. The sluggish local economy also hurt demand
for capital goods and consumer products.
Imports of capital goods like machinery to make semiconductors and liquid crystal
devices all fell off sharply along with autos and furniture, Kang said.
In December, meanwhile, South Korea's exports surged 33.7 percent on-year to top
$36.2 billion, with imports gaining 24.0 percent to 32.9 billion for a monthly
surplus of $3.3 billion. The gain in trade volume represents the second straight
month that the country's exports grew compared to the previous year.
For 2010, the ministry said the country's trade surplus should reach around $20
billion with exports gaining 13 percent on-year to $410 billion. Imports are
expected to move up 21 percent to $390 billion.
yonngong@yna.co.kr
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