S Korea exports rise to record

SEOUL, May 2 (Bloomberg): South Korea's exports climbed to a record in April as exporters weathered the won's gains, adding pressure on the central bank to boost borrowing costs next week to rein in consumer prices. Exports climbed 26.6 per cent from a year earlier to a record $49.77 billion, the Ministry of Knowledge Economy said yesterday. This compares with a revised 28.9 per cent gain in March and the median estimate of a 23.7 per cent increase in a Bloomberg News survey of 13 economists. South Korea's won has advanced to the highest levels since 2008, reaching 1,070.5 per dollar on April 29, as the nation reported accelerating economic growth. Deputy Finance Minister Choi Jong Ku said last week that it's the government's job to reduce exchange-rate volatility, adding that gains in the currency are partly from "speculative" trading. "Exports are surprisingly strong and I'm more confident now that the central bank will raise the interest rate again next week," said Kong Dong Rak, a fixed-income analyst at Taurus Investment & Securities Co. in Seoul. "A strengthening won and the earthquake in Japan have not hurt local exporters much yet." The won advanced 3.6 per cent in the past month, the best performer among the 10 most actively traded currencies in Asia excluding Japan, according to data compiled by Bloomberg. Gains in the currency are helping to curb inflation that exceeded the central bank's 4 per cent target ceiling in each of the first three months of the year. Consumer prices rose 4.6 per cent last month, according to the median forecast of 13 economists surveyed by Bloomberg News. The data is scheduled to be released at 8 a.m. today in Gwacheon, south of Seoul. Bank of Korea Governor Kim Choong Soo and his policy board will discuss May 13 whether to raise the benchmark seven-day repurchase rate after boosting it by a quarter of a per centage point each in January and March to 3 per cent. Exports, equivalent to about half the gross domestic product, helped the economy expand last year by the most since 2002 and boosted earnings at companies including Hyundai Motor Co., South Korea's largest carmaker. Exports rose from a revised $48.07 billion in March, yesterday's report showed. Imports climbed 23.7 per cent to $43.95 billion. The trade surplus was $5.82 billion. Shipments to Japan jumped 70.1 per cent from a year earlier in the first 20 days of April, driven by oil products, steel, and mobile phones, the ministry said. Imports from the earthquake-stricken country rose 3.1 per cent over the 20 days after an 8.4 per cent gain in March. Imports of Japanese cars and semiconductor equipment fell 62.8 per cent and 24.6 per cent respectively. Shipments to China, the biggest buyer of South Korean goods, increased 9.3 per cent. Exports to the U.S. climbed 23 per cent. Data for exports to individual countries are only available for the first 20 days of the month.