South Korean Exports Fall Less-Than-Estimated 8.3%

[Adeel Sami]

Sungwoo Park and Seyoon Kim

Nov. 1 (Bloomberg) -- South Korea’s exports fell less than economists estimated in October, adding to signs that trade may start to rebound from the slump triggered by the global financial crisis.

Overseas shipments declined 8.3 percent from a year earlier to $34 billion, the Ministry of Knowledge Economy said today in Gwacheon. The median estimate of 10 economists surveyed by Bloomberg News was for an 11.8 percent decrease. Imports fell 16.3 percent to $30.2 billion, resulting in a trade surplus of $3.8 billion.

“Exports are still on the decline, but Korea will see an increase in coming months,” said Lee Sang Jae, an economist at Hyundai Securities Co. in Seoul. “Demand from China is helping sustain South Korean exports, while orders from the U.S. and elsewhere still remain weak.”

Exports, which make up more than half of the economy, may start to rebound in November, the government said last month. Samsung Electronics Co., Asia’s biggest maker of chips, flat screens and mobile phones, said Oct. 30 profit tripled to a quarterly record. LG Electronics Inc. reported quarterly profit that beat analysts’ estimates, boosted by record shipments of televisions and higher sales of appliances.

The nation’s gross domestic product expanded 2.9 percent in the third quarter from three months earlier, the fastest pace in seven years. Finance Minister Yoon Jeung Hyun said full-year economic growth is possible in 2009, compared with a previous government forecast of a 1.5 percent contraction.


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