First Trade Surplus in Four Months

The balance of payments has turned back to black in four months as of April. The rising rate of exports to China however has decreased due to SARS.

According to the export and import record for April collected by the Ministry of Commerce, Industry and Energy, trade surplus reached 1 billion and 10 million dollars with 15.8 billion and 62 million dollars worth of exports and 14.8 billion and 52 million dollars worth of imports.

Exports have risen 20.3 percent compared to the same month last year and recorded the highest percentages by month until present.

The total amount of exports this January to April stood at 59 billion and 7 million dollars while the total amount of imports for the same period was 59 billion and 89 million dollars, with the total trade deficit reduced to 82 million dollars.

Despite such bad factors as the Iraqi War and SARS, the export rate has continued to rise with an improving trade surplus, with the exception of exports to China.

Exports to China in April stood as high as 39.2 percent, but lower than 55.7 percent in January, 81 percent in February and 50.1 percent in March. Exports of mobile phones to China dropped 9.4 percent as Chinese companies increased their own production. This drop was the first time since June of 2001.

By item, exports of automobiles reached the highest level with 1.6 billion and 90 million dollars, up 39.8 percent compared to the same month last year. Exports of wireless devices also went up by 44.9 percent. Exports of semiconductors dropped for two consecutive months down by 0.8 percent. Exports of computers also dropped for the second time this year after it lowered by 0.3 percent in January.

“Exports after May will be mostly influenced by SARS and labor disputes,” said the Ministry`s Trade Policy Advisor Lee Seung-hoon. “It is uncertain yet whether the surplus will go on.”

Ja-Ryong Koo bonhong@donga.com