Trade surplus reflects economic slump

By Choi Sung-jin

Korea registered the fifth-largest trade surplus among the G20 countries in the third quarter. 

According to the OECD quarterly trade report Sunday, the nation's trade surplus amounted to 24.26 trillion won ($20.9 billion) in the July-September period, the fifth largest among the world's 20 largest economies. 

China recorded the biggest black-ink figure in foreign trade with $154.3 billion, followed by Germany with $71 billion, Russia with $31.2 billion and Saudi Arabia with $23.6 billion. The United States topped the list of countries registering trade deficits, with $184.7 billion, and Japan's trade balance was also in the red, to the tune of $9.1 billion. 

Ministry of Trade, Industry and Energy officials said the nation had recorded a trade surplus for 46 consecutive months in November with the accumulated surplus figure hitting a record high. 

They said the problem was that the surplus was due less to an increase in exports than to a fall in imports, reflecting Korea's prolonged business slump. Korea's foreign trade had been in negative territory for four straight quarters, the OECD report said. 

China's protracted business slump and interest rate hikes by the U.S. are darkening export prospects for 2016, too, which explains why the government is going all out to boost domestic demand by cutting excise tax and encouraging the Korean version of Black Friday discount marketing. 

The Ministry of Strategy and Finance is expected to soon unveil its economic management plan for next year, along with a mid- to long-term growth strategy.