February 1, 2010
SEOUL (AFP) - South Korea Monday reported its first monthly trade deficit for the past 12 months, posting a shortfall of 470 million dollars in January compared to a 3.09 billion surplus the previous month.
Exports were worth 31.08 billion dollars last month, up 47.1 percent year-on-year, with imports rising 26.7 percent to 31.55 billion, the Ministry of Knowledge Economy said.
Higher oil and raw material prices and strong demand for fuel during an abnormally cold winter helped pushed the balance into deficit.
"A rise in demand for crude oil, and an overall hike in international prices, resulted in the trade deficit last month despite the strong export gain," said Lee Dong-Geun, a deputy minister in charge of trade and investment promotion.
Average temperatures in Seoul for the month were minus 4.5 degrees Celsius (24 Fahrenheit) compared to minus 2.0 C the year before.
Lee, quoted by Yonhap news agency, said the trade balance should return to surplus this month.
"Ship and information technology-related exports are expected to push up the surplus to around two billion dollars in February," Lee said.
