Exports Slowdown for 8 Consecutive Months

The continue slowdown of export for 8 months anticipates the future economy of Korea.

According to the report of the Ministry of Commerce, Industry and Energy about `the record of import-export in October` the export of October recorded 12.31 billion dollars, decreased by 19.3 percent (2.9 billion dollars) from the same period of last year. The range of the decrease, which was reduced a little bit during August and September after recording the worst reduction of –21.0 percent in July, has bounced up again in October.

MOCIE analyzed that Thanksgiving holidays seems to influence on the reduction of the export at least 600 million dollars. Import of the same period also has reduced by 18.0 percent (ca. 2.5 billion dollars) to 11.568 billion dollars. The trade balance in October recorded surplus by 742 million dollars. Particularly, the import and the export to the U.S. and the Middle East area have plunged down by 32.4 percent and 16.4 percent respectively compared to the same period of last year. The export of Semi-conductors and computer were also reduced 60 percent and 22 percent respectively.

Kim Chil-Du, head of Trade & Investment Policy Office, anticipated ``the range of decrease is better than expected considering the Thanksgiving holidays and the terror in the U.S. The ratio of import and export is expected to number positive by the second quarter of next year.``

The total export of the year recorded 11 percent-reduced 126.5 billion dollars and the import also decreased by 11.2 percent to 118.2 billion dollars. The total trade balance marked 8.3 billion dollars surplus.

ysshin@donga.com