S. Korea's exports to top US$356 bln this year: trade report

SEOUL, July 12 (Yonhap)-- South Korea's exports are expected to reach US$356 billion this year amid improvements in global trade, which would make the country the world's ninth-biggest exporter, a trade association said Sunday.

In a report, the Institute for International Trade also forecast that the
country's trade surplus would reach $29 billion in 2009 with a decline in exports
slowing down in the second half.
The institute, which is under the Korea International Trade Association, forecast
that exports will fall 8.7 percent on-year in the July-December period. They
tumbled 22.3 percent in the first half due to the global economic recession.
Those predictions, if accurate, would make South Korea the world's ninth-largest
exporter this year, its highest ranking in history, it added.
Korea's trade surplus reached a record $7.4 billion in June as imports fell
sharply. Diversification of export markets and the Korean currency's weakness
against the U.S. dollar helped overseas shipments by Asia's fourth-largest
economy.
But recently rising oil prices and a strengthening won could serve as downside
risks to exports, experts say.
"Although there are high expectations that exports will pick up in the second
half, rising raw materials costs and the won's gain could dent exports," an
economist at the institute said.
The association said the won is likely to remain moderately strong against the
greenback, hovering at the 1,200-won range.
The local currency tumbled 25.7 percent to the dollar in 2008 alone. Since
hitting an 11-year low of 1,570.3 won in early March, the won has gained about 22
percent.
sooyeon@yna.co.kr
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