S. Korean imports take up record portion of national income

The ratio of South Korea's imports to its national income soared to a 23-year high in 2005 as high-flying crude prices sharply increased the country's oil bills, a report said Monday.

According to the report by the Bank of Korea, imports accounted for 41.5 percent of the nation's gross national income last year, the highest since the early 1980s when the second oil shock gripped the world.

In particular, the percentage soared to 43.1 percent in the first quarter of this year, the report said.

GNI refers to a nation's gross domestic product (GDP) plus its trade gain or loss arising from changes in trade terms.

The figure was 44.9 percent in 1980 when the second oil shock erupted, and it jumped to 46 percent in 1981 before dropping to 41.8 percent in 1982, it said.

South Korea, the world's fourth-largest crude buyer, depends entirely on imports for its oil needs.

The central bank predicted the percentage may exceed the levels in the early 1980s should international oil prices continue to rise.

Crude prices have soared past the US$70-a-barrel mark, and analysts forecast they may go beyond $80 per barrel if tension in the Middle East keeps escalating.

Seoul, July 17 (Yonhap News)