November 18, 2014 13:03
Japan's share of Korea's foreign trade has fallen to the lowest in almost 50 years.
According to the Ministry of Trade, Industry and Energy on Monday, Korea's exports to Japan from January to October of this year totaled US$26.06 billion or 5.7 percent of total exports. That is just a quarter of the proportion of exports to China (25.1 percent) and half of those to the U.S. (12.1 percent).
In 1973, Japan accounted for 36.8 percent of Korea's exports.
Imports from Japan, meanwhile, totaled $43.15 billion, just 10.2 percent of total imports. That was the lowest since statistics began in 1966.
Trade with Japan has declined for three years now. The reasons are the weak Japanese yen and the domestic economic slump. Korean exports have become less price competitive due to the weak yen, while slow economic conditions here have reduced imports of Japanese goods.
Shin Seung-kwan at the Korea International Trade Association said, "If Japanese exporters cut their prices, Korea will suffer an even heavier blow."
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