SEOUL (AFP) — South Korean exports fell sharply in November compared to a year earlier as the global recession began to bite, a government report showed Monday.
Shipments dropped 18.3 percent year on year to 29.26 billion dollars, the largest fall in percentage terms since December 2001, the Ministry of Knowledge Economy said.
Imports fell 14.6 percent to 28.96 billion last month, resulting in a trade surplus of 297 million dollars.
"Some buyers are asking for delays, cuts or cancellation of their orders... export conditions will likely be very difficult going forward," the ministry said in a statement.
It said ship exports surged 34.7 percent year-on-year in November, but overseas shipments of all other major export items dropped by double digits.
Exports of auto parts and petrochemicals fell 30.8 percent and 36.6 percent respectively, while those for general machinery were down 24.4 percent.
"The decline in exports came earlier than anticipated as the liquidity crunch triggered by the US financial crisis caused importers to reduce and cancel orders," said Chung Jae-Hwan, head of the ministry's trade and investment bureau.
"The collapse of US consumer electronic giant Circuit City and similar retailers took its toll on exports," Yonhap news agency quoted Chung as saying.
The ministry, giving a regional breakdown covering the first 20 days of the month, said sales fell everywhere except in the Middle East -- where South Korea exported 30.6 percent more compared with a year earlier.
Exports to the US were down 6.2 percent during the first 20 days while those to China fell 27.8 percent. Exports to the European Union were 12.5 percent lower, while Japan imported 13.5 percent less.
South Korea's export-dominated economy is also suffering from stubbornly weak domestic demand.
The government's official 2009 growth forecast is four percent but local and international analysts see a far lower figure.
The International Monetary Fund predicts 2.0 percent and the Organisation for Economic Cooperation and Development forecasts 2.7 percent growth.
Copyright © 2009 AFP. All rights reserved. More »
