Statistical Handbook of Republic of Korea 2002

Transcription

1 Statistical Handbook of Republic of Korea 2002 Chapter 10 Foreign Trade and Balance Payments 11-1 Korea's exports in 2001 reached US$150,439 million, a sharp decline of 12.7% over the preceding year which is a figure that significantly exceeds the 2.8% decline recorded in 1998, the year when the nation's export volume plummeted for the first time since the launch of the economic development plan. Imports also registered a decline of 12.1% at US$141,098 million. Although the nation recorded trade surpluses for four consecutive years since 1998, recording a surplus of US$9,341 million in 2001, the margin of the surplus continues to trace a downward trend. Exports registered a double-digit decline in 2001 due to a combination of adverse factors including stagnation of the world economy, reduced demand overseas in the information and telecommunication industry and the Sept. 11 terrorist attack in the US.

2 The decline in 2001 imports, meanwhile, is largely attributable to sluggish exports triggered by overall slowdown in the world economy and import price of crude oil that recorded a steady decline since the second half of the year I n 2001, export of crude materials and fuels declined by 13.6% from a year earlier, while overseas sale of light industrial products declined by

3 13.1% and heavy chemical products by 12.6%. Exports were reduced by a large margin for a majority of products. With strengthened competition for woven & fabrics by the developing nations including China coupled with the sluggish demand by advanced nations, the overseas sales of light industrial products declined 17.7% from a year earlier. Exports of heavy chemical products also fell by 12.6% to register US$111,477 million. The downtrend in exports was mainly triggered by the decline in exports of electronics products including semiconductors. In particular, exports of semiconductors registered a steep decline of 45.2% over the preceding year prompted by a sharp drop in prices which was caused by the sluggish IT sector. Exports of iron & steel and chemicals also registered a sizable decrease over the previous year due to a drop in international prices and reduced demand resulting from excess supply worldwide. Exports of automobiles and vessels, meanwhile, recorded an increase of 3.1% and 17.9%, respectively.

4 In terms of imports by type of goods, capital goods and raw materials showed a decline while consumer goods registered a marginal increase. Imports of raw materials showed a decline of 8.9%, which was primarily attributable to the drop in the import price of raw materials and overall business stagnation. Imports of capital goods registered a steep decline of 19.7% from a year earlier owing to sluggish exports to the major markets of the US and Japan as well as reduced investments in domestic facilities. Consumer goods, on the other hand, increased by 3.5% over the previous year owing to an increase in imports of clothing and automobiles, reflecting the trend of improved consumer confidence.

5 In terms of exports by region and country, exports to advanced nations had been relatively brisk compared to the developing nations for three years since In 2001, however, exports to both advanced and developing economies declined. Exports to advanced nations were relatively more sluggish, registering a decline of 17.4% from a year earlier whereas exports to developing nations declined by 7.6%. Meanwhile, Korea's share in the markets of advanced nations fell slightly while that of the developing nations rose slightly. Among advanced nations, Korea's share in the markets of the US and Japan decreased slightly while among the developing nations, its share in China, Latin America and the Middle East went up slightly. The US continued to be the top destination for Korean products, accounting for 20.7% of the nation's total exports in 2001, down slightly from 21.8% in China overtook Japan to emerge as the second largest buyer of Korean products, accounting for 12.1% of the total, up from 10.7% in the preceding year. Korea's share in the Japanese market went down slightly from 11.9% in 2000 to 11.0% in The shares of these three major markets shrank slightly to 43.8% in 2001 from 44.4% in 2000.

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8 As regards Korea's imports by region and country, imports from both advanced and developing nations decreased over the previous year. As to imports from advanced nations, imports from the US and Japan recorded sizable reductions of 23.5% and 16.3%, respectively from the preceding year, registering a combined decrease of 15.8% from Imports from developing nations were sluggish from most nations, with the exception of Latin America and China, to register a decline of 7.6% from the previous year. The three largest importing nations to Korea continued to be in the order of Japan, the US and China in 2001 as in the previous year. In terms of shares of imports to Korea by nation, Japan and the US accounted for 18.9% and 15.9%, respectively of the total imports in 2001, down from 19.8% and 18.2% in the preceding year. China, on the other hand, accounted for 9.4% of Korea's imports, up from 8.0% recorded in the previous year.

9 In 2001, the nation's current accounts posted a surplus of US$8.62 billion, recording a surplus for four consecutive years since The scale of current accounts contracted from the previous year (US$12.24 billion), however, this was largely attributable to the reduction in the scale of surplus in the balance of goods, resulting from reduced imports as well as increased deficit in the balance of service due to expanded margin of deficit in the balance of travel. The balance of goods recorded a decline in both imports and exports but exports declined by a larger margin than imports and the scope of surplus recorded US$13.39 billion, down US$3.48 billion from the preceding year (US$16.87 billion). The balance of services recorded a deficit of US$3.53 billion, up US$640 million from a deficit of US$2.89 billion in the preceding year. This is attributable to a expanded margin of deficit in the balance of travel due to reduced number of foreigners traveling to Korea and the increased number of Koreans traveling overseas despite the reduction in the deficit in the balance of other services.

10 The deficit in income account balance improved significantly from US$2.42 billion in 2000 to US$886 million in 2001, triggered by an increase in interests revenue resulted from the increase in overseas assets as well as a reduction in the payment of interests overseas thanks to a reduction in foreign debts.

11 Meanwhile, balance of current transfers recorded a deficit of US$363 million for the first time in five years since 1996, as a result of an increase in overseas remittance by Koreans. The balance of capital and financial accounts also shifted to a deficit of US$3.58 billion (net outflow) from a surplus of US$12.11 billion (net inflow) primarily due to the redemption of borrowings from IMF and overseas borrowings by financial institutions despite the inflow of direct investment funds from foreigners as well as influx of stock investment funds The value of the Korean won against the US dollar floated at a relatively stable rate of around 1,280 won to 1,310 won from late April to mid November. Starting from the latter half of November, it temporarily dropped to 1,260 won but a sharp decline in the Japanese yen in December triggered by anxieties over prolonged business recession in Japan led the won currency to rise. As of the end of 2001, the exchange rate of the Korean won currency against the US dollar recorded 1,314 won, a slight increase from the 1,265 won recorded at the end of 2000.

12 In 2001, the supply of foreign currency played a dominant role with a surplus in the nation's current accounts and continued influx of investment funds from foreigners. Its scale, however, fell significantly from the end of 2000 (an increase of US$22.15 billion). As of the end of 2001, Korea's official foreign reserves totaled US$ billion, up US$6.62 billion from the previous year. Source: Korea National Statistical Office (Republic of Korea) Access time: 11/22/2003