3129

Korean exports to Hong Kong rose about 13 percent during the first five months this year largely due to a surge in vessel exports, industry data showed Friday.

The Korea International Trade Association (KITA) said South Korea's exports to Hong Kong reached US$14 billion in the January-May period, up 12.9 percent from the same period last year.

It was attributed mainly to a 127.2 percent surge in the exports of vessels, which rose to $2.31 billion.

Those vessels were mostly ordered in 2010 and took about one and half or two years to be delivered, the KITA said.

The growth in exports also resulted from the growing number of South Korean companies that are re-exporting their products to China from Hong Kong, the industry group said.

Under the Closer Economic Partnership Arrangement (CEPA) between mainland China and Hong Kong, some of the goods imported in Hong Kong can enjoy zero or low tariffs when going into the mainland.

Such products included electronics parts, semiconductors, security alarm systems, leather and precious metals.

"More Korean exporters are applying the CEPA to their businesses in order to export items that are levied as high level tariffs in China," the KITA said.

Hong Kong is a Separate Customs Territory from China, with import or export declaration being required for Hong Kong's trade with China. The special administrative region plays an important intermediary role in China's external merchandise trade.

By (Yonhap)



# The Korea Times [July 06 2012]