(2nd LD) S. Korea's exports reach record high in October while imports dip

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SEJONG, Nov. 1 (Yonhap) -- South Korea's trade surplus expanded from a year earlier in October as exports climbed to a new monthly high while imports shrank, the government said Saturday.

The country's overall exports came to US$51.76 billion last month, up 2.5 percent from the same month last year, according to the Ministry of Trade, Industry and Energy. It also marked the third time the country's monthly exports exceeded $50 billion.

Imports dropped 3 percent on-year to $44.26 billion.

The country posted a trade surplus of $7.5 billion, compared with a surplus of $4.88 billion in October 2013.

October marked the 33rd straight month the country has posted a trade surplus.

"Most key export items, including ships, computers, semiconductors and steel products, saw their shipments grow amid a significant rise in shipments to the United States and China," the ministry said in a press release.

Shipments to the U.S. spiked 25 percent on-year with those to China, the world's single largest importer of South Korean products, gaining 3.7 percent.

Shipments to Japan, on the other hand, slipped 1.4 percent with exports to EU countries dropping 8.6 percent.

By products, exports of ships jumped 35.1 percent on-year to $4.31 billion with shipments of computers, including solid-state drives, surging 15.3 percent to $740 million.

Shipments of automobiles plunged 13.9 percent on-year to $3.94 billion in October with exports of mobile communication devices, including smartphones, also dropping 16.3 percent to $2.72 billion, an apparent outcome of growing competition from the recently launched latest version of Apple Inc.'s iconic iPhone, the ministry noted.

Overall imports dropped despite a large gain in inbound shipments of consumer goods as imports of both raw materials and capital goods shrank.

In the first 20 days of October, the country's imports of consumer goods rose 7.6 percent on-year while inbound shipments of raw materials dropped 3.4 percent.

The drop in imports of raw materials was largely attributed to a fall in oil prices. In the first 20 days of October, the amount of crude oil shipped to South Korea dropped 7.7 percent from the same period last year while the amount of money South Korea spent on oil plunged 18.2 percent on-year to some $7.2 billion, according to the ministry.

Imports of capital goods, such as machinery and other equipment, dropped 9 percent on-year over the cited period.

The ministry said the country's annual exports were expected to reach a record high in 2014 with the overall trade volume expected to top $1 trillion before the end of this month. The country's trade volume has topped $1 trillion for three consecutive years since it breached the mark for the first time in 2011.

bdk@yna.co.kr
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