S Korea June exports beat forecasts to hit record

SEOUL, July 1: South Korean exports in June rose faster than expected to set a record for the second consecutive month, data showed on Saturday, defying concerns that a firm won and high oil prices could hurt shipments abroad.

Exports jumped 19.2 percent to a provisional .27 billion in June from a year earlier, led by increased shipments of flat screens and ships, the commerce ministry said, beating a median 17.4 percent rise forecast in a Reuters poll.

Imports rose 22.1 percent in June from a year earlier to .98 billion, matching expectations in the survey, thus generating a trade surplus of SEOUL, July 1: South Korean exports in June rose faster than expected to set a record for the second consecutive month, data showed on Saturday, defying concerns that a firm won and high oil prices could hurt shipments abroad.

Exports jumped 19.2 percent to a provisional $28.27 billion in June from a year earlier, led by increased shipments of flat screens and ships, the commerce ministry said, beating a median 17.4 percent rise forecast in a Reuters poll.

Imports rose 22.1 percent in June from a year earlier to $25.98 billion, matching expectations in the survey, thus generating a trade surplus of $2.28 billion, just below a $2.42 billion surplus a year earlier.

''Exports showed sharp growth because of resilient growth in the global economy,'' the ministry said in a statement.

''Companies have also actively pushed out shipment on concerns that export conditions may deteriorate in the second half.'' Sales abroad of liquid crystal display (LCD) panels soared 71 percent in June from a year earlier, while ship deliveries and oil products exports jumped 49 percent and 40 percent, respectively, the commerce ministry said in a statement.

South Korea, Asia's fourth-biggest economy, is home to the world's top suppliers of chips, flat screens and ships, such as Samsung Electronics Co., LG.Philips Co. and Hyundai Heavy Industries Co.

Economists also said global monetary tightening could dampen consumer demand in the major economies, especially in the United States, Korea's second-largest export market.

''There are growing concerns about rising interest rates at home and in the United States because that can not only slow down export growth but weigh down domestic demand,'' said Park Sang-hyun, chief economist at CJ Investment & Securities.

The won's value rose 6 percent on average in June from a year earlier, slightly slower than a 6.5 percent annual gain on average in May, but still posing a threat to the price competitiveness of exporters.

The trade data comes ahead of the central bank's monetary policy meeting on July 7.

South Korea's debt market appeared largely divided on whether the Bank of Korea will raise interest rates this time, but the market's consensus is that the central bank will lift rates in the next couple of months.

In June, the Bank of Korea unexpectedly raised the overnight call rate target by 25 basis points to a three-year high of 4.25 percent, the fourth rise since October 2005 aimed at pre-empting inflation as domestic demand picked up.

The commerce ministry said it would release on July 4 its forecasts on foreign trade for the second half of the year, meaning it may revise its export target for entire 2006, earlier set at 11.8 percent higher than last year.

REUTERS.28 billion, just below a SEOUL, July 1: South Korean exports in June rose faster than expected to set a record for the second consecutive month, data showed on Saturday, defying concerns that a firm won and high oil prices could hurt shipments abroad.

Exports jumped 19.2 percent to a provisional $28.27 billion in June from a year earlier, led by increased shipments of flat screens and ships, the commerce ministry said, beating a median 17.4 percent rise forecast in a Reuters poll.

Imports rose 22.1 percent in June from a year earlier to $25.98 billion, matching expectations in the survey, thus generating a trade surplus of $2.28 billion, just below a $2.42 billion surplus a year earlier.

''Exports showed sharp growth because of resilient growth in the global economy,'' the ministry said in a statement.

''Companies have also actively pushed out shipment on concerns that export conditions may deteriorate in the second half.'' Sales abroad of liquid crystal display (LCD) panels soared 71 percent in June from a year earlier, while ship deliveries and oil products exports jumped 49 percent and 40 percent, respectively, the commerce ministry said in a statement.

South Korea, Asia's fourth-biggest economy, is home to the world's top suppliers of chips, flat screens and ships, such as Samsung Electronics Co., LG.Philips Co. and Hyundai Heavy Industries Co.

Economists also said global monetary tightening could dampen consumer demand in the major economies, especially in the United States, Korea's second-largest export market.

''There are growing concerns about rising interest rates at home and in the United States because that can not only slow down export growth but weigh down domestic demand,'' said Park Sang-hyun, chief economist at CJ Investment & Securities.

The won's value rose 6 percent on average in June from a year earlier, slightly slower than a 6.5 percent annual gain on average in May, but still posing a threat to the price competitiveness of exporters.

The trade data comes ahead of the central bank's monetary policy meeting on July 7.

South Korea's debt market appeared largely divided on whether the Bank of Korea will raise interest rates this time, but the market's consensus is that the central bank will lift rates in the next couple of months.

In June, the Bank of Korea unexpectedly raised the overnight call rate target by 25 basis points to a three-year high of 4.25 percent, the fourth rise since October 2005 aimed at pre-empting inflation as domestic demand picked up.

The commerce ministry said it would release on July 4 its forecasts on foreign trade for the second half of the year, meaning it may revise its export target for entire 2006, earlier set at 11.8 percent higher than last year.

REUTERS.42 billion surplus a year earlier.

''Exports showed sharp growth because of resilient growth in the global economy,'' the ministry said in a statement.

''Companies have also actively pushed out shipment on concerns that export conditions may deteriorate in the second half.'' Sales abroad of liquid crystal display (LCD) panels soared 71 percent in June from a year earlier, while ship deliveries and oil products exports jumped 49 percent and 40 percent, respectively, the commerce ministry said in a statement.

South Korea, Asia's fourth-biggest economy, is home to the world's top suppliers of chips, flat screens and ships, such as Samsung Electronics Co., LG.Philips Co. and Hyundai Heavy Industries Co.

Economists also said global monetary tightening could dampen consumer demand in the major economies, especially in the United States, Korea's second-largest export market.

''There are growing concerns about rising interest rates at home and in the United States because that can not only slow down export growth but weigh down domestic demand,'' said Park Sang-hyun, chief economist at CJ Investment&Securities.

The won's value rose 6 percent on average in June from a year earlier, slightly slower than a 6.5 percent annual gain on average in May, but still posing a threat to the price competitiveness of exporters.

The trade data comes ahead of the central bank's monetary policy meeting on July 7.

South Korea's debt market appeared largely divided on whether the Bank of Korea will raise interest rates this time, but the market's consensus is that the central bank will lift rates in the next couple of months.

In June, the Bank of Korea unexpectedly raised the overnight call rate target by 25 basis points to a three-year high of 4.25 percent, the fourth rise since October 2005 aimed at pre-empting inflation as domestic demand picked up.

The commerce ministry said it would release on July 4 its forecasts on foreign trade for the second half of the year, meaning it may revise its export target for entire 2006, earlier set at 11.8 percent higher than last year.

REUTERS