South Korea's trade deficit with the European Union (EU) topped the US$10-billion mark last year, largely due to a slump in the shipbuilding sector and European carmakers' expanded presence here following the implementation of the bilateral free trade agreement in 2011, industry data showed on Monday.
According to the data, South Korea's exports to the world's single largest economic bloc gained 5.5 percent through Dec. 20 last year to $50.04 billion, while imports from the eurozone countries surged 9.9 percent over the cited period to a record high of $60.27 billion, resulting in a trade deficit of $10.17 billion.
The country's customs office did not reveal the latest tally, but estimated last year's exports to the EU at $51.7 billion. And imports from the economic bloc are estimated at $62.3 billion.
South Korea's trade shortfall with the EU reached $7.37 billion in 2013 and $970 million in 2012, ending its trade surplus for 14th consecutive years since 1998.
South Korea saw its exports to the EU improve last year from a 11.4 percent drop in 2012 and a 1.1 percent decline in 2011, but its 2014 outbound shipments to the EU fell short of the record high of $58.5 billion posted in 2008, the data showed.
Market watchers attributed the expanded trade deficit with the EU to a slump in the eurozone economy, which posted a 0.7-percent decline and a 0.5 percent fall in its growth, respectively, in 2012 and 2013. Last year, the eurozone economy is estimated to have expanded 0.8 percent.
By item, shipbuilding exports took a beating from a severe slump in the eurozone economy. In the first 11 months of last year, shipbuilding exports surged 12 percent on-year to $6 billion, but the comparable figures for 2011 and 2012 were far higher at $12.7 billion and $8 billion, respectively, the data showed.
Auto exports to the EU also fell 0.8 percent in the first 11 months of the year to reach $5.25 billion, and exports of smartphones and other wireless equipment dropped 16.8 percent on-year to $2.77 billion.
In contrast, auto imports from the eurozone economy surged 50.4 percent on-year in the first 11 months of the year to reach $6 billion. Imports of crude oils, medicines, luxury brands and cosmetics also surged, according to the data. (Yonhap)
