Korean trade deficit increases in the first half of 2003

Korean trade deficit increases in the first half of 2003

According to an announcement by the Korea Steel & Iron Association, the trade deficit for steel has reached to $82.8 million in the first half of 2003 which accounts for 80% of the deficit recorded in the same period last year. Total exports from Korea amounted to $4.2 billion while imports reached to $4.3 billion during the first six months of this year. Korea recorded a trade surplus ranging between $9-19 million in the period from January to April. However, the imports started to increase in May and in line with this the association expects the deficit to be around $60 million in these two months. Korea shipped 7.2 million tons of steel with a 4.4% increase in the first half while imported 12.5 million tons with a 3.7% increase. According to the association, imports from Japan were the main reason of trade deficit because Korea loses all its profits gained from exports to China, through purchases from Japan. Korea exported $576 million of steel to Japan in the first six months of 2003 while importing $2.1 billion worth. Consequently, trade deficit calculated as $1.5 billion with an increase of 29.4% compared to same period last year. In addition, Korean steel exports amounted to $1.6 billion to China, up by 68.8% while imports were $550 billion with a 116.6% increase in the first half. Trade surplus reached to $1.02 billion with a 50.9% increase compared to corresponding period last year. As a result of US safeguard on Korean steel goods, the shipments decreased to 698'209 tons by 10.5%. Imports from the US reached to $330 million with an increase of 1.7%. Trade surplus calculated as $64.4 million. The demand for reinforcing bars were picked up due to construction projects. Reinforcing imports raised to 567'918 tons by 204.9% year-on-year which worth $158.8 million with a 314% increase.