A Breathtaking
Export Milestone

Trade Day celebrates $300 bln in exports this year with pledge to record $500 bln soon

The 43rd Trade Day ceremony held on Nov.30 with the theme of "Achieving $300 billion in Exports, and Early Realization of $1 trillion won in Trade,"with President Roh Moo-hyun attending with hundreds of dignitaries from the government and executives of trading companies at the COEX Center in southern Seoul. Among the dignitaries were Minister of Commerce, Industry and Energy Chung Sye-kyun, Rep. Lee Yoon-sung, chairman of the National Assembly Commerce, Industry, and Energy Committee, and Chairman Lee Hee-bum of the Korea International Trade Association along with some 1,500 participants to celebrate the nation achieving $300 billion in exports this year for the first time in history with the resolve to increase total trade to reach $1 trillion in the near future.
President Roh, in his congratulatory speech, said the government will see that the result of the expanding exports will increase jobs, especially in the service industry, to fan the growth of the industry.
He said $300 billion in exports have been realized despite high oil prices, and low exchange rate for the Korean won, owing to hard work by companies and their employees engaged in the export sector night and day.
When the Participatory Government was installed in 2003, the growth of exports recovered a double digit growth and in the following year, exports totaled over $200 billion. Last year, the two way trade amounted to over $500 billion and this year, exports alone will exceed $300 billion for the first time in the nation'a history. We can feel that Korea is a strong export country when we go abroad and every where we go we can see ads put on by our companies with their products winning high praises, he said. All this is due to your hard work shedding sweat. The government has been focusing on the technology innovation and manpower training all these years to help enhance the competitive edge of our exporters. The government allocation for R&D activities amounted to 8.9 trillion won this year,from 6.5 trillion won last year and it will be increased to 10 trillion won next year. The government will introduce the knowledge export insurance system to enable the service industry to enjoy the same benefits allowed to the export firms in export finance legally.
From this year on, the tourism and shipping industries will be recognized as the export industries. From now on, the government will concentrate on fostering the service industry including the exports of services.
The government will also push exports of plants because the country has the advantages in technology, prices and speed in producing them. The government will solidify its ties with Middle East countries which need these plants, in addition to building up electronics export network further and improve Korea'a images abroad continuously, along with the expansion of the Hallyu industry including film and entertainment sectors.
Indicating that the international trading environment is growing difficult due to high oil prices, low foreign exchange rates, growing gap between export and domestic economy and the sluggish state of SMEs, he said the only way to overcome all the difficulties is to strengthening competitiveness in areas of the industry through technology innovation and manpower training.
The chief executive said the government will do all it can to help the development of high-tech to boost value-added portion in automobile, shipbuilding, semiconductor, and handsets and further spur the industrialization of next-generation growth engines. The government will step up its support to SMEs and venture firms to upgrade their technologies along with the provision of assistance to parts and material industries so that the results from spiraling exports will perk up domestic economy, too.
The FTA with the United States is another opportunity for Korea to make inroads to be an advanced country by expanding our position in the largest market in the world and enhancing the competitive edge of our service industry. It will also be a big help in attracting foreign capital into the country. The government has put in hard work to study the advantage of the FTA with the U.S. and the government will do all it can to speed up the conclusion of the negotiation by all means as early as possible. He said his very confident about the country's future with business firms going all out to develop new technologies and find markets for their products abroad. Achieving $500 billion in exports and $1 trillion in two-day trade will come soon if current efforts to increase exports continue all around the country, the President predicted.
In 1964, Korea's exports amounted to $100 million consisted mostly of primary goods including marine products like fresh shell fish. But it became diversified with the addition of more export products including plywood and fabrics in 1971, when exports amounted to $1 billion. Clothes accounted for the largest share with 41.7 percent of total exports, followed by plywood with 30.8 percent, wigs 8.9 percent and electronic products 8.2 percent. In 1995, when exports reached $10 billion, the largest item was semiconductor chips with 14.1 percent, automobile 6.7 percent, ships and marine installations 4.5 percent and synthetic fibers 4.3 percent, among others.. This year, semiconductor chips led all others with 11.2 percent totaling $29.695 billion followed by cars with 9.8 percent amounting to $26.179 billion and wireless communication equipment with 8.5 percent valued at $22.515 billion.
Export market has expanded, too, from 113 countries in 1971 to 226 countries this year. In 1977, exports to the United States and Japan accounted for 52.4 percent of total exports, but reduced to 32.9 percent in 1995 due to continuous attempts to expand the market to the EU, and the Central and South America.
Since 2003, China has become the largest importer of Korea products and services, taking up 21.4 percent of the total as of the end of October this year.
Up until 2000, trading companies handled a bulk of exports for manufactures, but it changed coming into the new century with manufacturers handling exports of their products by themselves. In 1995, when the country's exports amounted to over $10 billion, the Daewoo International Co. led exports, but Kia Motors took over in 2004, followed by Samsung Electronics, S-Oil and LG Electronics. This year, the situation remained the same with Kia Motors still in the lead, followed by Samsung Electronics, S-Oil and LG Electronics. There has been a substantial increase in the number of export companies. In 1964, the number totaled 708 and it zoomed to 2,268 in 1977 and then to 65,763 in 1995. The number now totaled 88,637 as of the end of October.
Despite the difficult problems such as the high value of the Korean won, high oil prices and raw material prices, exports have been rising steadily as in the past. By items, oil product exports rose 41.7 percent over the same period last year at $172.1 billion as of the end of October, LCD panel exports totaled $119.4 billion, up 86.7 percent YoY, semiconductor chips exports amounted to $297 billion, up 18.5 percent YoY and auto exports rose 11.3 percent YoY at $262. billion. nw

Chairman Lee Hee-bum of the Korea International Trade Association makes an opening speech at the 43rd Trade Day ceremony Nov. 30 at Coex Center in Seoul.

A number of dignitaries led by President Roh applaud at the Trade Day ceremony.

A view of the Trade Day ceremony.