South Korea's exports, buoyed by strong sales in automobiles, steel and shipbuilding, are expected to reach US$367 billion this year, the government said Sunday. The revised estimate represents a 12.8 percent year-on-year gain from 2006, when exports topped $325 billion, the Ministry of Commerce, Industry and Energy said. They also forecast that overall export volume will grow $7 billion more than January estimates, when export growth for 2007 was forecast at 10.6 percent, Yonhap reported. "The good showing is a sign that exports were not seriously hurt by unfavorable exchange rates, while helped by steady gains in the world economy that may grow 4.9 percent this year," said Cha Dong-hyung, head of the ministry's export-import team. He added that higher value-added products made by South Korean companies improved brand recognition, while successful overseas market diversification also contributed to the upbeat forecast. The South Korean won has appreciated 30 percent against the U.S. dollar since 2002, while Dubai-brand crude prices are likely to hover at $65 per barrel in the coming months from an average of $61 last year. The official said that while export growth from January to June soared to 14.7 percent, it is forecast to dip to 11.2 percent in the second half. Imports could rise 13.9 percent on an annual basis to $352 billion, with the country's trade surplus reaching $15 billion, down by roughly $2 billion from last year, said Cha. Reflecting better export numbers for the first half and rosier forecasts by think tanks, the revisions said that shipbuilding, steel and general machinery will all rise this year by more than 20 percent on an annual basis. Ship exports are expected to surpass $28.2 billion, while those for steel and general machinery may hit $24.1 billion and $29.0 billion respectively. Overseas shipments of locally made autos may jump to $38.7 billion, 17.6 percent higher than last year. The latest numbers, however, showed a drop in growth for semiconductors, liquid crystal displays and petroleum products, the ministry said.
