February Growth Rate Reaches 15-Year High


By Seo Jee-yeon
Staff Reporter
South Korea’s exports grew by 45.9 percent in February over January, to $19.46 billion. The monthly export growth rate is the highest in 15 years and six months since August in 1988, when the rate reached 52.6 percent.

The Ministry of Commerce, Industry and Energy (MOCIE) on Monday reported that monthly exports have increased by more than 30 percent for the past three straight months.

In addition, export growth last month hit a record high for the month of February.

``The global economic recovery, coupled with the continued efforts of local firms to exploit overseas markets to break through falling domestic demand, are behind the record export growth rate last month,’’ MOCIE official Lee Kye-hyung said.

The trade surplus also remained heavy last month thanks to the record export increase, but inched down to $2.5 billion from the record-high surplus of $2.95 billion in January due to import expansion.

Customs-cleared imports have also grown at a double-digit rate for the past six months since last September.

The imports of capital goods and raw materials rose by 28.5 percent last month over January.

The import increase rate of consumer goods stayed below the 1-10 percent range due to the falling domestic demand. The import of beef and chicken fell by 70 percent and 62 percent, respectively, due to fears over the spread of the bird flu epidemic.

``The trade account continued strong, posting a surplus for the 11 consecutive months to February, and it exceeded $2 billion for three straight months,’’ Lee said.

The strong export growth was powered by semiconductors, cars, shipbuilding, computers and wireless communication devices, which grew by 75.5 percent, 60.5 percent, 59 percent, 50.5 percent and 48.1 percent, respectively.

Exports to China grew by 71 percent last month over January, the MOCIE reported.

The outbound shipment to other key export markets _ the United States, the European Union, ASEAN countries and Japan _ all increased, by 32.8 percent, 36 percent, 46.7 percent and 52.6 percent, respectively.

The trade account with China and the U.S. amounted to $1.24 billion and $390 million, respectively. However, chronic trade deficit with Japan continues to linger.

``Exports will continue to grow this month, but the growth rate will slow down due to currency appreciation and the hike in raw material prices,’’ Lee added.

jyseo@koreatimes.co.kr