South Korean Exports Rise for First Time in 13 Months

By Seyoon Kim

Dec. 1 (Bloomberg) -- South Korea’s exports rose for the first time in 13 months in November as demand for the nation’s semiconductors, display panels and auto parts increased.

Overseasshipments gained 18.8 percent from a year earlier to $34.3 billion, the Ministry of Knowledge Economy said today in Gwacheon. The median estimate of 12 economists surveyed by Bloomberg News was for a 22.8 percent increase. Imports rose 4.7 percent to $30.2 billion for a trade surplus of $4 billion.

A recovery in overseas shipments, which make up more than half of the economy, helped gross domestic product expand 2.9 percent in the third quarter, the fastest pace in seven years. South Korea’s exports in November 2008 recorded their biggest fall of the year as the financial crisis savaged demand, making a low base for comparison.

“Exports rebounded thanks to a base effect from last year and also on rising overseas orders,” said Go You Sun, an economist at Daewoo Securities Co. in Seoul. “Exports are likely to be on the rise in coming months, supporting economic growth in South Korea.”

Companies including Samsung Electronics Co. reported surging profits, and Hyundai Motor Co. and affiliate Kia Motors Corp. expect their combined sales in China to surge 83 percent this year to 800,000 units.

The benchmark Kospi stock index rose 0.3 percent to 1,559.42 in Seoul while the won was little changed at 1,163.70 against the dollar.

Exports in 2010

South Korean exports will increase 13 percent to $410 billion next year, boosted by demand for semiconductors, cars and display panels, the government said yesterday. Imports will rise 21 percent to $390 billion for a trade surplus of about $20 billion, half of this year’s estimate of a record $40 billion, it said.

Exports are likely to total about $34 billion in December, resulting in a trade surplus of about $3 billion to $4 billion, Deputy Minister for Trade and Investment Policy Lee Dong Geun told reporters in Gwacheon today.

Exports to China, the biggest buyer of South Korean goods, surged 52.2 percent in the first 20 days of November. Shipments to the U.S. rose 6.1 percent, the ministry said. Shipments to Japan climbed 11.2 percent over the same period.

China’s manufacturing growth held at the fastest pace in 18 months in November, aiding the rebound of the world’s third- biggest economy, a report showed today. Economic growth in China accelerated to 8.9 percent last quarter, the fastest pace in a year.

Shipments of semiconductors jumped 80.7 percent last month while display panel exports rose 66.8 percent, the government said. Auto parts exports gained 50.7 percent.

South Korean President Lee Myung Bak said Nov. 28 he expects GDP to expand about 5 percent next year. The Organization for Economic Cooperation and Development said last month Asia’s fourth-largest economy will expand 0.1 percent this year and 4.4 percent in 2010.

To contact the reporter on this story: Seyoon Kim in Seoul at skim7@bloomberg.net.