S. Korean exports reach record US$28.2 bln in June

South Korean exports reached a record high of US$28.2 billion in June fueled by strong overseas demand for autos, semiconductors and ships, a government report said Saturday.

The figure represents a 19.2 percent increase compared to the same month of last year, and reflects the high level of international competitiveness of locally made products, despite unstable exchange rates and steep oil prices, the Ministry of Commerce, Industry and Energy said.

Imports for the month reached $25.9 billion, up 22.1 percent from a year ago, with the country's trade surplus standing at just under $2.3 billion.

The figures are a tentative tally of last month's two-way trade volume and could change later.

The latest report also showed the exports rising 13.9 percent to $155.5 billion for the first six months of the year, while imports climbed 19.3 percent to reach $148.3 billion, resulting in a surplus of $7.2 billion. The surplus is a sharp drop from the $12.2 billion surplus posted a year ago.

Na Do-sung, head of the ministry's trade policy bureau, said the surge in exports in June, and to a larger extent in the first half, reflected double digit growth in key sectors.

The six-month findings showed autos and auto parts exports rose 14.9 percent, while those of semiconductors and ships rose 14.2

percent and 19.8 percent, respectively, on an annual basis, the official said.

Exports of general machinery, a key industry, posted an increase of 15.8 percent during the six-month period, with those of petrochemicals growing 45.0 percent.

"The overall strength of the global economy caused demand for South Korean goods to rise," the official said.

The official said export growth was particularly pronounced in the emerging markets of India and Latin America that grew over 30 percent. Shipments of goods to developing countries rose 17.3

percent, while those to industrialized countries climbed 6.4

percent.

Na also said a steep rise in prices of raw materials, such as iron ore, and fuel costs was a main contributor to a sharp rise in imports. Raw material prices rose 22.6 percent until June, while the cost of energy imports surged 41.0 percent from the corresponding six-month period in 2005.

A gradual recovery of the domestic economy also contributed to a rise in imports of household goods, the official added.

Seoul, July 1 (Yonhap News)