S. Korea's exports reach record high of US$325.9 bln in 2006

Posted on : 2007-01-01 17:37 KST Modified on : 2019-10-19 20:29 KST

South Korea's exports gained 14.6 percent from a year earlier reaching a record US$325.9 billion in 2006 a government report said Monday.

The sharp rise in growth numbers marks the fourth straight year that the country's exports have grown by double digits, the Ministry of Commerce, Industry and Energy said.

The preliminary tally showed the country's imports rising 18.4 percent to $309.3 billion on a customs clearance basis, resulting in a trade surplus of $16.6 billion. South Korea's trade surplus has stayed above $10 billion since 2002.

In 2005, exports grew 12.0 percent from the previous year to $284.4 billion, while imports reached $261.2 billion. The trade surplus amounted to $23.1 billion.

Cha Dong-hyun, head of the export and import division at the ministry said the export gains are noteworthy since they come amid unfavorable exchange rates and rise in raw material prices that adversely affected competitiveness of locally made products. The Korean won had appreciated by around 9 percent versus the U.S.

dollar by the end of 2006 compared to a year before, while oil and other raw materials had reached record highs during the year.

"Despite difficult conditions export exceeded earlier estimates of $318.0 billion by roughly $8 billion," the official said. He said the solid growth in the world economy and global competitiveness of key products buoyed export figures last year.

For the new year, the official said double digit growth of 10-11 percent is expected by the government, although export volume may not reach $370 billion.

"The world economy is expected to lose steam this year, while linger instability in foreign exchange rates can pose problems," Cha said. He added the size of the country's trade surplus will be about the same as 2006 as raw material prices stabilize and a slacking off of domestic consumption is expected to reduce imports.

The latest report said high overseas demands for petroleum products, ships, semiconductors and auto parts caused exports in these sectors to rise by more than 20 percent last year.

Petroleum product exports shot up 32.9 percent, while those for ships and semiconductors hit 24.7 percent and 23.5 percent respectively.

Export of steel and cars also rose by more than 10 percent last year.

Last year marked the first time that South Korea's exports surpassed the $300 billion mark. Overseas shipments of semiconductors, autos also exceeded record $30 billion each during the year, while ship exports topped the record $20 billion level.

The ministry said export of mobile telecommunication products fell 1.6 percent from the year before, while those for general machinery gained by only 7.7 percent.

By region, the report showed shipments to Latin American countries jumping 34.6 percent, followed by India at 21.6 percent, with exports to developing countries rising 19.7 percent on average for the entire year. Exports to so-called developed countries stood at 7.4 percent.

Imports were fueled by high energy and raw material prices that shot up by more than $13.3 billion compared to 2005, while imports of capital goods and general machinery rose by more than 10 percent.

The strong Korean won made foreign made products more cheap causing import of consumer goods to rise 20.6 percent during the year. Mobile phone and auto imports rose 199.3 percent and 49.6 percent respectively.

The ministry said for December, South Korean exports rose 13.8 percent year-on-year to $29.1 billion, while imports rose 13.8 percent to $27.5 billion.

It said last month marked the 11th month in a row that exports have posted double digit growth.


Seoul, Jan. 1 (Yonhap News)