South Korean export slows

Exports are integral to the South Korean economy as they make up more than half the gross domestic product, although there is now concern as they have only increased by 10 percent from last year.

Exports increased at their slowest pace for over a year, as shipments to China have fallen for the first time in 6 years as a fear of recession is heightened in south east Asia, as global demand for their products has fallen.

The Ministry of Knowledge Economy said that fear for their economy is due to the lack of stability in the emerging markets of Asia being pulled down, driven by the US slowdown.

In order to tackle the economic crisis head on, the government has announced a 14 trillion won spending injection, which is the largest programme put into operation since 1997 when the country needed the aid of the International Monetary Fund.

It is predicted that things are likely to get worse before they get better, as the emerging markets are slowing quicker than expected and so China’s economy is said to have a real impact as the South Korean’s have become quite dependent on China.

The country’s trade surplus of $1.22 billion in October is the first positive in over 5 months as imports have fallen as a result of oil prices, although whether this is sustainable is yet to be seen.

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