South Korea vows action on falling China exports after posting record trade deficit in August
- South Korea’s overall deficit hit US$9.47 billion last month, the highest figure since records began in 1956
- August also marked four consecutive months of trade deficit with the world’s No 2 economy, its biggest trading partner
The South Korean government has identified slowing trade with China as a major risk and vowed to strengthen economic cooperation with its neighbour after the country logged its highest ever trade deficit in August.
Analysts said China’s stringent coronavirus policies were to blame for the widening bilateral deficit, but gradual changes to the structure of trade between the two countries needed long-term strategies from Seoul.
The Korean government on Thursday said the direct reason for the trade deficit was increased energy prices, although it added it was taking imminent risks seriously and announced a comprehensive “strategy to strengthen export competitiveness”.
Slowing trade with China, strengthening the country’s semiconductor competitiveness and managing energy import demand and efficiency are “three key risks” South Korea must deal with, according to the government.
