Korea Suffers 1st Trade Deficit in 57 Months

Skyrocketing oil prices have worsened Korea`s trade conditions, with the country suffering a trade deficit in December for the first time in 57 months.

A report released yesterday by the Commerce, Industry and Energy Ministry said exports increased 15.5 percent to 33.25 billion U.S. dollars in December 2007. Imports surged 24 percent to 34.11 billion dollars over the same period, resulting in a trade deficit of 860 million dollars.

The monthly trade deficit is Korea`s first since March 2003.

A ministry official blamed the deficit on high oil prices, saying, “Last month, oil import volume slipped eight percent from a year ago. Nevertheless, the surging cost of oil has caused oil import prices to jump a whopping 52.3 percent.”

In annual trade balance, Korea’s exports increased 14.2 percent from 2006 to 371.8 billion dollars last year. Imports grew 15.3 percent year-on-year to 356.7 billion dollars for a yearly trade surplus of 15.1 billion dollars for 2007.

The ministry said Korea’s trade volume will exceed 800 billion dollars this year, with exports jumping 11.6 percent year-on-year to 415 billion dollars and imports rising 12.7 percent to 402 billion dollars, for a trade surplus of 13 billion dollars.

cha@donga.com