EXPORTS DROP FOR 7 STRAIGHT MONTHS

[Anchor Lead]

There are no signs of recovery in the sluggish export market. Last month, exports decreased by about 14% compared to the previous year, marking a decline for the seventh consecutive month. The trade balance has been recording a deficit for 14 straight months.

[Pkg]

Last month, South Korea's exports stood at slightly over 49.6 billion U.S. dollars, down 14.2 percent on-year. Exports have seen on-year declines for seven straight months since last October. The biggest reason is a sluggish chip market. Due to a fall in DRAM prices, the nation's semiconductor exports shrank more than 40 percent on-year in April. Exports of displays, petroleum products and steel also dropped. Shipments to the EU and the Middle East increased. But those to China and ASEAN decreased by 26.5 percent and 26.3 percent, respectively. In particular, exports to China have declined for the 11th month.

[Soundbite] Kim Wan-ki(Ministry of Trade, Industry and Energy) : "Exports to China and ASEAN dropped year-on-year, due to a fall in exports of chips, a key export item, as well as a slowdown in demand amid the global economy's delayed recovery."

With the fall in exports, Korea posted a trade deficit of 2.62 billion dollars. It has been recording a trade deficit for 14 straight months since last March - the longest deficit period the nation has seen since the 1997 Asian financial crisis. The government explained that despite the continuing deficit, the volume, however, has shrunk since January. The government says it will improve the trade balance by nurturing more industries that can contribute to exports. It also plans to devise more measures to aid exporters in sync with China's economic recovery.