South Korea Posts Record Exports to China in January

[chatchai]

South Korea Posts Record Exports to China in January

South Korean exports to China in January almost doubled from a year earlier to post their biggest annual growth, easing worries that shipments to the world's third-largest economy may not be as bad as previously feared.

Shipments to the United States in January also posted the largest annual rise in 16 months, South Korea's revised trade data showed on Friday.

Sales to China, South Korea's largest overseas market, in January jumped 98.5 percent over a year earlier, Korea Customs Service said in a statement.

"With debt problems in Europe, all countries are growing cautious on exit strategies and China is not an exception. If China postpones tightening, we don't need to worry about Korean exports," said Kim Jae-eun, an economist at Hyundai Securities.

China and a number of countries' attempts to unwind stimulus policy measures prompted worries that it may hit global demand and exports from South Korea, Asia's fourth-largest economy.

But an unexpected fall in China's consumer price inflation last month raised hopes that Chinese tightening steps need not be as aggressive as some had feared.

On Thursday, South Korea's central bank warned of considerable uncertainties in the economic outlook, citing Europe's debt woes, prompting economists to push back expectations for a rate rise to the second half of the year.

Shipments to the United States also rose 16.5 percent from a year ago for the same period, the biggest annual gain since a 19.3 percent rise in September 2008.

China and the United States combined took in more than one-third of South Korea's exports last year.

The total value of exports last month was revised down to $36.01 billion, according to the data.

http://www.cnbc.com/id/35360507