Fierce competition batters textiles exports, says MOCIE

02 Aug '05

2 min read

According to the monthly data released by the Ministry of Commerce, Industry and Energy (MOCIE), Korea's exports stood at USD $23.39 billion in July 2005, an increase of 11.4 percent from a year earlier, while imports climbed 16.9 percent year-on-year to $21.29 billion. In total, the nation recorded a trade surplus of $1.9 billion in July.

Exports have remained above the $23 billion mark since March 2005, boosted by steady growth worldwide, especially in the U.S and China. This month's double-digit increase (11.4 percent in exports was all the more remarkable taking into consideration high oil prices and disrupted cargo flights caused by the walkout by Asiana Airlines pilots. The average daily sales in July reached $1 billion in July, exceeding $1 billion level for six straight months.

Shipments of semiconductors (22.1 percent), automobiles (21.6 percent), general machinery (19.2 percent), petrochemicals (11.5 percent), automobile parts (56.6 percent), and petroleum products (52.3 percent) recorded double-digit growth. By contrast, sales of computers (-13.9 percent), consumer appliances (-5.0 percent) and textiles (-7.0 percent) were down due to fierce competition emerging from developing countries. In addition, a growing number of Korean companies are increasingly looking to low-cost countries as production bases and export products from there.

By region, sales to Brazil, Russia, India, and China (BRICs) climbed 40.2 percent. Meanwhile, shipments to EU (22.8 percent) and to ASEAN (10.7 percent) have also seen a growth.

More Textiles News - South Korea...