S. Korea's industrial parts exports gain 15 pct in H1

SEOUL, July 12 (Yonhap) -- South Korea's exports of industrial parts and components rose 15 percent on-year in the first half on growing global demand following the March earthquake that affected production in Japan, the government said Tuesday.
   Exports amounted to US$125.7 billion from January through June, up from $109.4 billion from a year earlier and a record first-half figure, with imports growing 18.2 percent to $85.4 billion, according to the Ministry of Knowledge Economy.
   The country's trade surplus in the sector rose to US$40.3 billion, also a new first-half high, from $37.1 billion in the same period last year.
   "Both exports of parts and trade surplus rose to record levels in the first half of the year despite many uncertainties in the domestic and global markets," the ministry said.
   "This shows that the capability of local parts and components industry have improved and can now better cope with outside shocks."
   The ministry partly attributed the gains in exports and trade surplus to increasing shipments to Japan, which was hit by a powerful earthquake and tsunami on March 11 that significantly undermined the production capacity of all its industrial sectors, including parts and components manufacturers.
   Exports to Japan surged 35.1 percent to $8.4 billion in the first half of the year while the growth of imports from Japan slowed to a gain of 9.4 percent to $20 billion to post a trade deficit of $11.6 billion. This represents a decrease of $460 million from the same period last year.
   South Korea's exports of industrial parts and components to China increased 8.7 percent on-year to a new half-year high of $43.4 billion with imports growing 29.8 percent to $22.7 billion.
   The ministry said the country's parts and components exports should rise in the second half of the year helped by the steady recovery of global demand for computers and other electronic products.
   Exports in the July-December period are estimated to go up 10.7 percent on-year to $132.5 billion with imports reaching $86.5 billion.
   For the entire year, the ministry forecast the country's exports may rise 10.7 percent from 2010 to $258.2 billion and its imports could reach $171.9 billion for a trade surplus of $86.3 billion.