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Korea: Decline in Apparel exports during the first half of 2004 |
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2004-8-2
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A continuous decline was noted in South Korea''s apparel exports in the first half, although at a lower pace than in the past year.
Shipments of woven apparel to the United States are even increasing in the last year with quotas. Apparel exporters are expecting a sharp decline in the free-quota period, however.
Korea''s exports of knitted apparel (HS chapter 61) were only down 0.39% in volume terms (kilos) in the first six months of the year, compared with a decline of 13.51% experienced in 2003.
Exports of woven apparel under chapter 62 decreased by 3.60% at the same time after falling 13.51% in the past year.
The Korean exporters are facing rising competition from low-cost countries due to higher demand from the United States, by far their primary market.
Shipments of woven apparel to the US were up more than 7% over the first part of the year while rising 4.20% in value terms at US$347 million.
Exports of knit apparel to the United States were down 5.13% in volume terms but only fell 1.19% in value terms at US$386 million.
Korean exports to the US are expected sharply falling as the quotas end beginning next year, since they were protected by US limits, until now.
Korea-located production on the other hand could resist more competition after it progressively focused on the higher end of the global market in the past years.
The major part of Korean apparel production was already relocated to low-cost countries in the past fifteen years as costs were progressively rising at home. Korean investments boosted apparel industries in South-East Asia or Central America, as a consequence.
South Korea sold apparels to China and the European Union also.
China is the second largest buyer of Korean woven apparels; accounting for 17% of total exports in volume terms in the first half.
From a lower level, exports of knitted apparel to China are further rising, up 16% in value terms 2003 before growing by 15.80% in the first half of 2004.
Shipments of knit apparel to France were also very strong at the same time, up 32% in value terms in 2003 before increasing 21% in the first part of the current year.
Sales of woven apparel to Russia and more surprisingly to Vietnam are also relatively strong. |
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