Korean Export in March Recorded 13.4 Billion Dollars, Sliding Continuously for 13 Months.

Korean export amount in March decreased 5.2 percent compared to the same month of last year, continuing the slide for 13 months. However, as the rate of decrease is considerably slowed down and the international trade surplus recorded two digit growth for the first time since June last year, the external sector showed some signs of improvement, in step with the domestic economic upturn. According to a tentative international trade statistics announced by the Ministry of Commerce, Industry, and Energy (MOCIE), the export amount of March recorded 13,392 million dollars (by customs basis), which is a decrease of 5.2 percent compared to the same month of last year when the amount recorded 14,125 million dollars. However, the rate of decrease was the lowest since March last year. Additionally, the monthly export of over 13 billion dollars is the first record since May last year. The international trade in March recorded a surplus of 1,430 million dollars, which is the two digit growth for the first time after nine months since 1,213 million dollars recorded in May last year. The aggregate export amount between January and March this year recorded 35,909 million dollars, which is a decrease of 10.5 percent compared to the same period of last year, and the import of the same period recorded 33,754 million dollars, which is a decrease of 11.4 percent, and the international trade surplus recorded 2,155 million dollars so far. When viewed by country, the export to Japan decreased 27.4 percent as the value of Japanese Yen dropped, and the exports to the Middle East and the Central and South Americas were sluggish as they recorded minus 7.8 percent and minus 1.0 percent, respectively, while the exports to China, ASEAN region, and the U.S. increased 11.9 percent, 5.8 percent, and 1.9 percent, respectively. The Director of the Trade and Investment Bureau of the MOCIE, Kim Jae-Hyeon remarked, `There is a possibility that the export volume in April may increase in view of the economic recovery in the U.S., the international price hikes of semiconductors, LCD, and petroleum products`, but he added, “However, the unstable factors following the trade disputes such as emergency import restriction measures (safeguards) on steel products imposed by the U.S. government and recent oil price surge may affect negatively on our international trade prospect.`

Ja-Ryong Koo bonhong@donga.com