Sakong Il, the chairman of the Korea International Trade Association, said yesterday that Korea's total trade volume could reach of $1 trillion next year.
Korea reported trade volume last year reached $686.6 billion, while it is expected to be $869.7 billion this year.
Considering that Korea's trade grew annually by an average of 16.7 percent between 2002 and 2008, Sakong said that Korea will likely attain the $1 trillion threshold.
Only five countries exceeded $1 trillion in trade volume as of 2009.
Sakong said there were four "opportunities" that Korea should take advantage of to reach that goal.
One was the recovery of the global economy, which is expected to expand by 4.6 percent this year and 4.3 percent in 2011.
A second opportunity is offered by emerging economies, including China, India and Southeast Asia, which are expected to have higher growth rates, including 6.8 percent this year and 6.4 percent next year.
Korea's network of free trade agreements is also creating another opportunity.
Finally, Sakong, who also heads the committee to host the G-20 in Seoul in November, believes the event will result in the creation of a "Korea Premium," which will replace the "Korea Discount," which refers to the consistent undervaluation of Korean stocks.
"We will assist our trade companies and offer overseas marketing in emerging countries," said Sakong. "Establishing a healthy export market is one of the big tasks that KITA needs to accomplish."
KITA, which was established on July 31, 1946, will hold its 64th anniversary ceremony today at the Trade Tower in Samseong-dong, southern Seoul.
According to the Ministry of Knowledge Economy yesterday, Korea's trade surplus is expected to exceed $4 billion in July, with the total surplus for the first seven months of this year reaching $23 billion. Korea has earlier set a surplus target of $23 billion for the entire year.
"Our main exports, including semiconductors, are doing well and the trade surplus is rising," said a ministry official. "With this momentum, our surplus can exceed $30 billion this year."
With higher than expected growth, the ministry is planning to revise its forecast for the year and announce it in mid-August. However, "it will be hard to expect the growth rate will continue at the same rate as in the first half," said the ministry.
Economic analysts say, however, the trade surplus is still subject to potential negative factors, including a reduction in global economic stimulus measures, the European sovereign debt crisis and a rise in the value of the Korean won.
A ministry official said the trade surplus may not increase much further in the second half if imports outpace exports.
(Source: JoongAng Daily)
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