S. Korea's textile exports to hit 10-year high in 2011: report

SEOUL, July 12 (Yonhap) -- South Korea's textile exports are expected to reach a 10-year high in 2011 thanks to a steady rise in overseas demand for fabrics and clothing, a report by a local think tank said Tuesday.
Overseas exports of textiles, fabrics and clothing are expected to jump 14.5 percent on-year to US$15.9 billion this year, the Institute for International Trade (IIT) said. In the first half of this year, exports jumped 22.2 percent on-year to $8 billion.
The forecast is just under the $16.1 billion reached in 2001, which was the highest number tallied in the past decade. The country shipped out a record amount of textiles in 2000 when the total topped $18.8 billion.
"The expected gain is mainly due to the revival of demand for fabrics that make up the bulk of exports and a steady global economic recovery," said Park Gi-im, an IIT senior researcher. "The free trade agreement (FTA) with the European Union (EU) that went into effect this month can also boost orders for raw textile materials."
Textiles are expected to be one of the beneficiaries of the EU FTA because many European countries maintained high tariff rates, Park said, adding non-clothing demand for textiles, particularly in the industrial sector, is helping fuel demand for value-added products.
"Textiles are now widely used in cars, ships, electronics and various metal products," the researcher pointed out.
Such a trend, she said, has triggered fresh investment by foreign companies and caused the Seoul government to strengthen support for the industry as a whole.
yonngong@yna.co.kr