SEOUL, April 28 (Yonhap) -- A 10 percent gain in the South Korean won against the Japanese yen may lead to a 1.9 percent year-on-year cut in South Korean firms' exports in the April-June period, a government report said amid concerns that Japan's recent monetary easing may cause the won to appreciate.
"As the U.S. dollar-yen exchange rate is nearing the ratio of (one dollar) to 100 yen, we are facing increasing threats the depreciating yen may bring to South Korea's exports," the report by the Ministry of Strategy and Finance said as it made the forecast.
South Korean firms' exports of steel, machines and electronics goods to Japan shrank by 25 percent, 23.9 percent and 19.2 percent, respectively, in the first three months of this year as the yen depreciation made South Korean goods more expensive in Japan.
The government report said local small- and medium-size exporters may be hit harder than their conglomerate peers from the depreciating yen.
"If the yen's descent continues for the long term, South Korea could face growing downward pressure in exports," a ministry official said. He said the finance ministry is planning to expand financial aid to smaller exporters and help them minimize foreign exchange losses.
The yen has been under downward pressure from the U.S. dollar, driven by Japan's powerful monetary easing earlier in April. The Korean won appreciated 4.7 percent per yen in the first quarter, compared with the end of 2012.
- (News Focus) Yen's sharp drop sounds alarm over Seoul's exports
- Most S. Koreans support Park's economic democracy drive: poll
- N.K. threats have little impact on S. Korean financial market
- S. Korean investors' woes deepen over shutdown of Kaesong complex
- Massive recall feared to hurt image of Hyundai, Kia
- Experts say S. Korea's measures likely to boost home transactions
- S. Korea goes all-out to boost economy
- CEO shake-up in store for S. Korean financial sector
- Samsung set to cement smartphone lead with Galaxy S4
- KORUS FTA presents opportunity, crisis for S. Korean farms
- FTA with U.S. helps S. Korea muddle through economic slump
- Absence of economic democratization raises questions on Park's commitment
- Chinese tourists emerge as big spenders in S. Korea
- Korea's housing market mired in slump amid global pickup
- S. Korean firms bracing for weaker yen
- Raising money top priority for incoming government
- Park to boost smaller firms for S. Korea's economic revival
- S. Korean consumer firms set to bask in China's economic recovery
- Korean economy feared to slip into low growth
- Korea seen to tighten macro-prudential steps amid won's gain
- (News Focus) Samsung to face challenges over looming leadership change
- Lee wraps up last overseas trip with focus on economic projects
- Real challenges ahead for China's new leadership
- China's power shift both boon and risk to S. Korean economy
- Experts sound alarm bells for S. Korea's high household debt
- Presidential candidates double down on chaebol reform
- Next year's budget focused on boosting economy
- S. Korea's credit ratings return to pre-crisis levels
- Political parties pledge 'economic democratization'
Home > Business > Economy