South Korea's deficit in trade of food and agricultural goods widened in the first half from a year earlier as the country increased port and vegetable imports to tame inflation, a state agency said Thursday.

   The country's food and farm trade deficit reached US$12.96 billion in the January-June period, compared with a $10.1 billion shortfall a year earlier, according to the Korea Rural Economic Institute (KREI).

   In the first six months of the year, South Korea shipped some $3.44 billion worth of food products, up 33.2 percent from $2.58 billion a year earlier, with imports rising 29.4 percent on-year to $16.45 billion,
"Imports of agricultural goods increased 31.4 percent on-year in the first half due to increased shipments of vegetables with imports of farm products, such as pork, also jumping 69.4 percent, pulling up the overall amount of imports," the KREI said.

   The country's trade deficit in the food sector is expected to further grow in the second half as the Seoul government recently added entire import amounts of four food items, including radishes and white cabbage, to its list of foodstuffs temporarily exempt from any import tariffs.

   South Korea recorded the largest deficit in trade with the United States in the first half. The country shipped $192 million worth of food products to the United States while purchasing over $4.14 billion worth of goods from the North American country, according to the KREI.

   The country's food exports to China jumped 57.4 percent on-year to $528 million, but the country still posted a deficit of nearly $2 billion as its imports from China also grew 18.9 percent to $2.52 million.

   The country recorded a surplus of $290 million in trade with Japan as its imports came to $334 million. Exports surged 42.5 percent to $614 million following Japan's nuclear power plant problems and subsequent radiation scare sparked by a massive earthquake.

Source: Yonhap News (Aug.4, 2011)