DECLINE IN KOREAN EXPORTS OF 2019

[Anchor Lead]

Korea's exports declined more than 10 percent in 2019, posting the first two-digit decrease since the global financial crisis. The major factors behind the steep decline are the stagnated semiconductor market and the trade war between China and the United States.

[Pkg]

The Ministry of Trade, Industry and Energy says Korea's exports in 2019 recorded slightly over 542 billion dollars, down 10.3 percent from the previous year. It's the first two-digit decline since the 2009 global financial crisis. The Trade Ministry estimates that a 10.7-billion-dollar decrease stems from the ongoing trade dispute between the United States and China, while the stagnated semiconductor market resulted in a 32.8-billion-dollar decline, and the plummeting oil prices caused an export decrease of 13.4 billion dollars. Although the overall amount of exports contracted, the export volume expanded 0.3 percent. The automobile sector's export volume grew 5.3 percent, while bio and health products, secondary batteries, agricultural produce and fisheries also posted an increase. Exports to Southeast Asia grew exponentially to account for more than 20 percent of Korea's overall exports for the first time. And exports to northern nations such as Russia posted two-digit growth for the third straight year. Korea's imports contracted 6 percent in 2019, but the nation's overall trade surpassed one trillion dollars for the third consecutive year posting a trade surplus for the 11th year in a row. This year's exports are predicted to grow 3 percent from 2019.

[Soundbite] SUNG YUN-MO(MINISTER OF TRADE, INDUSTRY & ENERGY) : "We expect external factors to improve on a rebound in the semiconductor and shipbuilding sectors."

To promote export growth, the government has decided to pour funds into trade finance and overseas marketing in the first half of the year.