S. Korean exports reach US$26.1 bln in July

South Korea's exports rose 12.4 percent from a year ago to US$26.1 billion in July, fueled by demand for oil products, steel and petrochemicals, a government report said Tuesday.

Imports for the month reached $25.4 billion, up 18.4 percent from a year ago, with the country's trade surplus standing at $670 million, according to the report by the Ministry of Commerce, Industry and Energy. The size of the trade surplus is $1.06 billion smaller than the amount for July 2005.

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

The sixth straight month of double digit export growth, however, follows a record high of exports in June. Exports for that month grew 18.6 percent annually to $28.1 billion with the country's trade surplus topping $2.1 billion. Imports grew 21.9 percent to $26.0 billion for the month.

"The drop is mainly due to the strike at Hyundai Motor Co. that cost $500 million worth of lost production for the cited month," said Jung Joon-suk, the deputy minister for trade and investment policy. Car exports plummeted 30.6 percent compared to the same one month period last year, He said if the strike did not occur, export growth could have reached 14 percent, which is roughly the same level of growth posted for the first half of this year.

The official said overseas demand for refined oil products shot up 64.1 percent for the month, while steel and petrochemical exports soared 27.2 percent and 26.2 percent respectively. Exports for ships, LCD panels and general machinery also boosted the numbers.

Foreign sales of car parts and telecommunication-related products grew by a relatively small margin of 8.1 percent and 3.4 percent respectively, he said.

"In addition to cars, there is concern for LCDs that grew an average 120 percent up till June," said Jung. He said the sharp drop may continue into the second half as the world economy is expected to cool down.

Import growth generally slowed during the month, though domestic demand for crude oil and naphtha continued to rise sharply.

The latest report showed South Korean companies shipping out $1.16 billion worth of goods a day last month, marking the 11th straight month that the figure exceeded the $1 billion mark.

In the first seven months of this year, exports rose 13.7 percent on-year to $181.6 billion, while imports climbed 19.3 percent to $173.9 billion, according to the report.

The trade surplus for this period reached $7.7 billion, a sharp drop from the $13.9 billion surplus posted during the same period a year earlier, it said.

On future prospects, the report said if exports grow by more than 10 percent for the rest of the year, annual exports will meet the $318.0 billion target for this year.

Seoul, Aug. 1 (Yonhap News)