Seoul Sees Record Trade Deficit In '96

Separately, the finance ministry said the year-on-year consumer price index rose 4.7 per cent in the first nine months of this year, exceeding the government's 1996 target of 4.5 per cent.

But a finance ministry official said there was no reason for concern. As we are expecting a good harvest this year, the targeted inflation rise for this year will be easily met, he said.

Trade ministry official Lee Jae-gil blamed the trade deficit on plunging international prices for semiconductors, steel and petrochemical products. The ministry earlier predicted the annual deficit would reach $11-$12 billion.

The revised forecast looks reasonable as the sluggish exports of semiconductors are expected to continue until the end of this year, said Rhee Namuh, head of research of Dongbang Peregrine Securities.

 

The September trade gap soared to $1.54 billion against $643 million a year earlier, but was sharply down on August's record $3 billion shortfall. Exports reached $9.84 billion and imports $11.38 billion. September figures were helped by a generally lower trade volume.