''In March 1998, the country exported $300 million worth of gold
as an extraordinary factor,'' Cho said.
FOCUS-SKorea exports under siege, surplus
shrinks
02:39 a.m. Apr 01, 1999 Eastern
By Kim Myong-hwan
SEOUL, April 1 (Reuters) - South Korea announced on Thursday
that its trade surplus shrank in March as the won's strength
gnawed at the price competitiveness of its exports.
Analysts said the price handicap and dim prospects for the
Chinese economy could dent the government's target of attaining a
$25 billion trade surplus this year.
The Ministry of Commerce, Industry and Energy said the
customs-cleared trade surplus dropped to $2.43 billion in March
from $3.72 billion a year earlier.
''Exports fell from a year earlier because of the won's strength
against the dollar,'' said Cho Young-jai, deputy director of the
ministry's export division.
''But they improved from February.''
Free-on-board (FOB) exports in March fell 1.9 percent to
$11.78 billion from a year earlier, while imports on a cost,
insurance and freight (CIF) basis rose 12.8 percent to $9.35
billion, the ministry said.
''In March 1998, the country exported $300 million worth of gold
as an extraordinary factor,'' Cho said. ''If exports of gold and
other special items, including idle facilities, were excluded, the
March exports would show positive growth.''
''Exports in March performed better than expected. But the
slowing Chinese economy will likely hamper South Korean
exports,'' said Lee Hahn-koo, president of Daewoo Research
Institute.
''Rising prices of crude oil and other raw materials would be
another burden,'' Lee said. In short, the country's trade surplus this
year would be somewhere between $15 billion and $20 billion, far
below the government's target of $25 billion.''
Imports of consumer products and capital goods would rise on
recovering domestic demand, analysts said.
''Domestic consumption has increased and inventories have hit
rock bottom, so imports are bound to rise,'' said Kim Hun-soo,
the head of research at Merrill Lynch Korea.
Hank Morris, director of Industrial Research and Consulting Ltd,
said: ''Probably, the government's target of attaining a $25 billion
trade surplus looks too optimistic.
''If crude oil prices rise further from the current level, the suplus
will be below $20 billion this year.''
The trade surplus during the first three months of this year totalled
$4.86 billion, down from $8.58 billion a year before, the ministry
said.
It said exports of industrial electronics and ships during the first 20
days of March rose 26.4 percent and 19.5 percent respectively
from a year earlier.
Semiconductor exports increased 7.0 percent year-on-year, but
car exports fell 20.9 percent, the ministry said.
Imports rose in March due largely to a surge in capital goods
imports, it said.
Imports of capital goods during the first 20 days of March rose
29.4 percent, and those of consumer goods rose 4.1 percent.
Imports of raw materials slid 0.3 percent.
Imports of crude oil fell 7.6 percent, while machinery purchases
rose 28.5 percent.
Copyright 1999 Reuters Limited |
