Parts and materials trade surplus hits record volume in 2009

SEOUL, Jan. 6 (Yonhap) -- South Korea's trade surplus in industrial parts and
materials reached a record US$51.3 billion in 2009 thanks to improved product
quality and favorable exchange rates, a government report said Wednesday.

The report by the Ministry of Knowledge Economy said the nation's exports of
parts and materials reached $171.0 billion last year, down 6.8 percent from the
year before, while imports plunged 19.5 percent to $119.7 billion.
It said the surplus figure marked a gain of $16.5 billion from the previous year
and a 19-fold increase over $2.7 billion recorded for 2001.
The ministry explained that exchange rates, which made Korean products much
cheaper abroad, and various economic stimulus programs implemented by countries
such as China helped push up the size of the surplus.
The value of the Korean won fell from an average 1,103 won to the U.S. dollar in
2008 to 1,276 won last year.
The report said overseas sales to China, South Korea's largest trading partner,
shot up sharply to $61.3 billion during the year with the surplus more than
doubling to $33.8 billion.
The country also reported a trade surplus for most countries, excluding Japan and
the European Union.
On imports, sluggish economic growth caused a fall-off in demand for steel-based
products, as well as various electronic and petrochemical products.
Imports of steel products plunged 74.7 percent on-year, with inbound shipments of
the plastic additive bisphenol contracting 39.9 percent, although domestic demand
for parts used in planes and other value-added products increased vis-a-vis 2008.
yonngong@yna.co.kr
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