Emerging markets are expected to help South Korea maintain its export momentum in the second half amid slowdowns in advanced economies, a report said Thursday.

   The Korea Trade-Investment Promotion Agency (KOTRA) report predicted that shipments to Europe and the United States may decline in the second half as these countries struggle to deal with financial and fiscal uncertainties.
Consumer spending gains stood at just 0.4 percent in the United States, while numbers in Britain, France and Japan fell into minus territory, it said.

   "Such developments can hurt exports of autos, auto parts, ships and mobile telecommunication products," it said.

   However, overall conditions in emerging markets will likely remain stable, fueling demand for foreign-made products, the report predicted.

   Emerging markets already account for 71.8 percent of South Korea's exports and have been instrumental in the two-way trade boom that reached a record US$891.6 billion in 2010.

   South Korea, Asia's fourth-largest economy, expects trade to top the $1 trillion mark for the first time this year.

   KOTRA said large emerging markets such as China, India and Indonesia have been less affected by worldwide economic uncertainties, and are all moving to stimulate their domestic markets.

   The agency, meanwhile, said that because advanced economies are eyeing emerging markets to offset sluggish demands at home, the competition to sell more products will intensify in the coming months, which will require special attention by South Korean businesses.

Source: Yonhap News (Sept. 15, 2011)