BL: South Korean April Exports Rise 27%, Led by Middle East Demand
By Seyoon Kim
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May 1 (Bloomberg) -- South Korea's export growth accelerated in April, buoyed by sales to the Middle East, China and Latin America.
Overseas shipments jumped 27 percent from a year earlier, the Ministry of Knowledge Economy said in Gwacheon today. That exceeded a 21.6 percent increase in a median estimate of 17 economists surveyed by Bloomberg News. Imports gained 28.6 percent, leaving a trade deficit of $46 million.
Demand from China and other emerging markets is helping South Korean exporters withstand a slowdown in the U.S. The central bank said last week that while export growth may cool as the global economy slows, overseas shipments will still record ``double-digit'' increases for the rest of the year.
``Exports are the main pillar that helps Korea sustain the current pace of growth,'' said Lee Sang Jae, an economist at Hyundai Securities Co. in Seoul. ``South Korea's exporters are more competitive and they've diversified markets.''
Samsung Electronics Co., whose exports represent about 15 percent of South Korea's total, last week reported its biggest profit gain in two years as it shipped more liquid-crystal displays and mobile phones.
Hyundai Heavy Industries Co., the world's largest shipbuilder, said earlier this week first-quarter profit climbed almost a fifth as the company built more vessels to move fuel and consumer goods at record prices.
South Korean exporters have also benefited from a weaker currency, Vice Finance Minister Choi Joong Kyung said on SBS radio today in Seoul. The won has fallen 6.6 percent against the dollar and 13 percent versus the euro this year.
Exports make up about 40 percent of South Korea's gross domestic product and China is the nation's biggest market, followed by the U.S.
Exports to the Middle East surged 43.9 percent in the first 20 days of April, exports to Latin America rose 28.5 percent and those to China climbed 17.9 percent today's report showed. Shipments to the U.S. fell 0.9 percent in the 20-day period.
To contact the reporter on this story: Seyoon Kim in Seoul at skim7@bloomberg.net
Last Updated: April 30, 2008 21:02 EDT
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