S Korean export shows robust growth

SEOUL, Jan 30 (Reuters): South Korea's exports were expected to show robust annual growth in January, rising for a 15th consecutive month on strong global demand for computer chips and petroleum products as well as more working days than the previous year.

A Reuters poll of 12 economists saw exports growing a median 22.9 per cent on a yearly basis, jumping from December's 8.9 per cent annual gain.

"The Lunar New Year holiday fell in January last year, resulting in more working days this year from a year ago. This must have pumped up both exports and imports," said Park Ok-hee, an economist at IBK Securities.

"Global demand for semiconductors and petroleum goods increased, speeding up export growth, although automobile shipments are seen to have declined due to weaker sales in major overseas markets," Park added.

Hyundai Motor and Kia Motors, South Korea's leading car manufacturers, flagged only modest sales growth in 2018, suggesting a slow recovery in the United States and China.

Hyundai and Kia were in dispute with their labour unions last year with production disrupted by strikes over wages. Union members approved a renegotiated pay deal last week.

"Hampered automobile production due to strikes was probably offset by firm production of semiconductors and petroleum goods, as shown by a continued rise in exports despite the strong won," said Kwon Ah-min, an economist at Dongbu Securities.