Arirang News | Nov 14, 2011

Korea’s imports exceed exports after FTA with EU

Hwang Ji-hye

The rate of imports has overwhelmed that of exports for the past three months from July when the Korea-EU FTA kicked into effect.

The Ministry of Knowledge Economy and Korea International Trade Association said Sunday that the country’s exports from this July to September rose for point-8 percent year on year, while imports surged up 26 and a half percent.

The ministry went on to say that the trade volume between Korea and EU for the three months reached over 25 billion US dollars, rising nearly 12 percent compared to the same period last year.

The country’s exports stood at around 4.2 billion dollars going down for over 15 percent in July compared to a year earlier but rose for the next two months by almost 12 percent in August and 10 percent in September.

Imports on the other hand, jumped over 36 percent in July and the trend continued for the next two months, rising over 17 percent in August and 26 percent in the following month.
Accordingly, Korea’s trade surplus reached around 6-hundred million dollars from this July to September but the trade balance nosedived compared to the same period last year which reached over 3-billion dollars.

Overseas demand for Korean computers, automobiles and petroleum products remained strong, while the country’s semiconductor industry weakened.

New airplanes topped the list of imported goods in terms of value, while other items like raw materials used to produce fine chemicals and auto parts also expanded.

Trade authorities say that items that have their tariffs reduced after free trade agreements usually prosper in the long term but are boosted little in the short term.