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The prospects for positive growth in Korea's export market are fading,... as the global
economy has yet to pick up steam, and that includes China -- Korea's largest trading
partner.
Seoul may need to review its strategy.
Kim Min-ji turns to some experts for their analysis.
Korea's exports have fallen every month for over a year and a half now,... and there had
been hopes of a recovery in the second half of the year.
But with the slow growth in the global economy,... especially China,... the prospects for a turnaround
are dimming.
"China accounts for about a quarter of Korea's exports, which is an important factor determining
whether Korea's outbound shipments can improve.
Exports to China have fallen, so it depends on how much it can pick up."
According to the Korea International Trade Association,... Korea's exports to China came
to 10-point-1 billion U.S. dollars in July,... down 9-point-4 percent from a year ago.
That extends the country's downward streak for a record 13 straight months.
However, in a glint of light,... the pace of decline slowed from the previous month.
Imports also shrank over 8 percent to just over seven billion dollars during the same
period,... resulting in a trade surplus of about 3-point-1 billion

dollars.
Exports of key items, such as semiconductors and flat panel displays,... led the decline.
Semiconductors, Korea's number one export item to China,... fell over 14 percent from
the same period last year,... while display panels fell more than 19 percent.
But petroleum products spiked 35 percent,... while auto parts also jumped nearly 13 percent.
"Until now, growth has been centered around exports of intermediary goods.
But Korea now needs to focus on consumer goods... and ramp up investment in areas it is good
at,... such as food products, cosmetics and cultural content,... and open new markets."
Another option for Korea is to diversify its export partners and reduce its dependence
on China.
One country where analysts see potential is Vietnam,... which has risen as Korea's third
largest export partner,... thanks to a free trade deal that took effect last year,...
and as it is a production base for many companies.
However, experts say that... at the end of the day,... for a tangible recovery,... it's
all down to how soon the global economy picks up steam, which will in turn drive up the
demand for exports.
Kim Min-ji, Arirang News.

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