S. Korea Posts Record Trade Surplus

South Korea posted a record high monthly trade surplus in March as the country severely cut back on investment and consumption. However, analysts said it would be difficult to sustain the surplus at the current levels because exporters had nearly exhausted inventories of raw materials and must soon import a massive volume of goods. “The surplus looks impressive, but imports will certainly rise as companies must restock raw materials and components through imports,” said Richard Samuelson, head of research at SBC Warburg Dillon Read. The Industry and Energy Ministry said the country registered a customs-cleared trade surplus of $3.74 billion in March, the largest monthly surplus ever. There was a $1.73-billion deficit a year earlier. The surplus was $3.29 billion in February, the previous record.