Invest KOREA

South Korea's industrial parts and components exports rose 18.3 percent on-year to US$61 billion in the first quarter thanks to the steady pace of global economic growth, a government report showed Thursday.

   The report by the Ministry of Knowledge Economy showed imports of industrial parts and components gained 21.1 percent on-year to $41 billion in the January-March period, with the country's trade surplus in this sector reaching a record $20 billion.

   "The gains come despite political uncertainties in some North African and Middle Eastern countries and the fallouts caused by the devastating quake that hit Japan last month," the report said.

   It added that outbound shipments to Japan and Europe were key contributors to growth as well as a rise in prices for locally made parts and components.

   Exports of primary metal products such as pressed and hot rolled steel surged 36.3 percent vis-a-vis the first quarter of 2010, with general machinery exports rising 36.4 percent.

   Shipments of chemical and general machinery products to Japan jumped 48.1 percent and 41.1 percent each, with engineering plastic- and construction-related parts surging 57.6 percent and 140.9 percent, respectively.

   The country's trade deficit with the neighboring country, however, increased by $200 million to $5.8 billion, mainly due to the dependence of South Korean companies on Japanese components.

   Meanwhile, overall imports led by chemicals, organic compounds and metal products rose by double digits.

   The ministry in charge of the country's industrial and trade promotion policy said no short-term problems were expected because of developments taking place in countries such as Japan and Libya, although complications may arise in the long run.

Source: Yonhap News (April 7, 2011)