South Korea's trade surplus hit an all-time high in February as imports declined at a faster pace than exports, a government report showed Sunday.
Trade surplus amounted to a fresh record high of 7.66 billion U. S. dollars in February, according to the Ministry of Trade, Industry and Energy. The trade balance stayed in the black for 37 months in a row.
Exports, which account for about half of the economy, retreated 3.4 percent from a year earlier to 41.46 billion dollars last month. Imports plunged 19.6 percent to 33.8 billion dollars.
A decline in business days and a fall in export prices for oil products led to the weak exports. The number of working days in February slid by 2.5 days in February compared with the same month last year due to the three-day Lunar New Year's holiday.
Lower crude oil price resulted in a slide in prices of oil product exports. Dubai crude, South Korea's benchmark, traded at an average of 55.7 U.S. dollars per barrel in February, down 53 percent from a year earlier.
Excluding oil and petrochemical products, the February exports increased 0.8 percent, the ministry said.
Daily average exports jumped 9.3 percent from a year earlier to 2.18 billion dollars in February, the ministry said, noting that the country's exports showed robust picture excluding the effect from less business days.
Lower crude oil prices led to a fall in imported raw material prices and subsequently a plunge in overall imports. It resulted in the all-time high of trade surplus, the ministry said.
By item, ship exports more than doubled compared with a year earlier, leading the February exports. Shipments of semiconductors and computers increased 6.9 percent and 5.1 percent each.
Exports of petrochemical and oil products tumbled 24.2 percent and 44.1 percent each last month, with those for automobiles and auto parts reducing 16.3 percent and 14.4 percent respectively.
Outbound shipments of steel products and general machinery retreated 4.1 percent and 5 percent each in February from a year ago, with those for telecommunication products such as smartphones falling 6.4 percent.
By country, exports to the United States expanded 7.4 percent in February, but shipments to China, South Korea's largest trading partner, declined 7.7 percent. China accounts for about a quarter of South Korea's total exports.
Exports to Japan tumbled 23.4 percent amid the weak Japanese yen, with those to the ASEAN and Middle Eastern countries sliding 26 percent and 6.7 percent respectively.
Shipments to the European Union (EU) plunged 30.7 percent last month on the back of economic crisis in Russia.
Imports of raw materials dropped 29.7 percent in February from a year ago on cheaper oil, but those for capital and consumer goods increased 2.9 percent and 14.6 percent each.
The ministry said that the country's trade showed a positive picture given a 9.3 percent increase in daily average exports and a rise in capital and consumer goods despite a decline in raw material imports and overall exports./.