S. Korea comes up with measures to cut trade deficit with Japan
24/9/2008 17:26
The Bank of Korea (BOK) said today that in order to reduce the country's
chronic trade deficit with Japan, South Korea should focus on boosting key
component technology and on nurturing smaller companies.
"South Korea's
continued trade deficit with Japan results from a lack of key technology in the
local component industry, and there has been a social and cultural difference in
terms of public awareness about the manufacturing sector," the BOK report
said.
According to the BOK, South Korea's trade shortfall with its neighbor
last year amounted to US$29.9 billion, significantly higher than US$24.4 billion
in 2005.
Moreover, the country's total trade deficit already stands at
US$23.2 billion in the first eight months of this year, and over 60 percent of
the shortfall comes from imports of Japanese industrial parts, the BOK
said.
The central bank said the country needs to strengthen global
competitiveness by developing technology and seeking a long-term plan to nurture
human resources in order to cut the trade deficit with Japan.
Xinhua
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