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S. Korea's trade deficit with Japan exceeds $30B

(Xinhua)
Updated: 2008-12-22 16:54

SEOUL -- South Korea's trade deficit with Japan amounted to $30.9 billion in the first 11 month of the year, as strong yen lifted overall import prices, the Korea times reported Monday.

According to the National Customs Service (NCS), the deficit increased significantly from the same 11 month period last year when the trade shortfall posted $3.4 billion.

The NCS attributed South Korea's huge deficit with its neighboring country to South Korea's growing reliance on high-tech Japanese firms as well as the weakening won against Japanese yen.

As the semiconductor, mobile handset and plant construction businesses picked up throughout the year, imports of core parts and equipment from their Japanese counterparts grew accordingly, which led to a greater deficit with Japan, the NSC said.

Sharp depreciation of the Korean currency, which has lost over 40 percent against the Japanese yen so far this year, also influenced the trade imbalance by boosting import prices of Japanese-made items, it added.