Korea to Post 1st Trade Deficit Since Financial Crisis

Korea is expected to post a trade deficit this year for the first time since the global financial crisis of 2008.

Both exports and imports will likely reach fresh records of over $700 billion after posting records of over $600 billion just last year. But a trade deficit seems inevitable as imports have grown faster than exports due to sky-high energy prices.

According to the Korea International Trade Association on Tuesday, the country will post a $14.7 billion trade deficit this year as exports rise 9.2 percent to $703.9 billion but imports jump 16.8 percent to $718.5 billion.

Exports of semiconductors and vehicles are expected to keep growing, but the trade deficit for the first half is likely to reach $11.4 billion as imports of crude oil, natural gas and coal jumped. Oil imports increased 12.5 percent in volume from January to April despite a 58 percent increase in prices, which will likely hover around $100 per barrel until the end of the year.