Inter-Korean trade broke $400 million last year

Last year, Inter-Korean trade broke the historic record, $400 million.

According to the Korea Customs Service, total Inter-Korean trade recorded $425.14 million, up 28 percent from the $333.43 million of the previous year, importing $152.37 million worth (in 3,952 individual transactions) from the North and exporting $272.77 million worth of products (in 3,442 individual transactions) to the North.

Inter-Korea trade has been on the rise year by year standing at the $100 million level in 1991, $200 million in 1995, and $300 million in 1999. The exception was during the currency crisis in 1998 when trade stagnated for the first time since it was begun in 1989. When trade first began according to the open economy strategy declaration of July 7th, 1988, the total amount stood at a modest $18.72 million.

A Customs Service official said that exports (to the North) have been on the increase, breaking records year after year on the back of increasing supply to North Korea. However, imports shrunk to 68 percent of the amount ($222.85 million) in 1995.

By import item, agricultural and sea products took the lion's share with $71.93 million, and textiles following behind with $53.69 million. Steel and hardware is third on the list with $11.74 million and then electronics and electric products with $8.25 million.
The official explained, "In the beginning stages of trade with North Korea, most import products consisted of iron and mineral products such as gold and zinc. However agricultural and seafood products, and garments, for example, fish, dried vegetables, medicinal herbs, song-i mushroom and p'yogo mushroom, have since gained importance."

In the case of exports, industrial chemical products such as fertilizer and medicine topped the list with 35 percent or $95.52 million. Textiles followed with 16 percent, machinery and transportation equipment with 12 percent, and electronic and electric products with a 10 percent share.

Processing trade has contributed 30.4 percent to overall trade amounts, or $129.19 million, increasing by 30 percent from $ 99.62 million in 1999.
The official went on to predict, "Ocean trade has risen by over 30 percent year-on-year. Trade with North Korea will grow more and more when the land route opens."