Korea will shift its focus from conglomerates to small and medium enterprises for reviving falling exports along with structural changes, the head of the state-run investment and export promotion agency said Wednesday.

“The outlook for the nation’s outbound shipments this year looks grim not only because of the prolonged global economic downturn but also due to structural issues,’’ said Kim Jae-hong, CEO of Korea Trade-Investment Promotion Agency, during a press conference in Seoul. 
The KOTRA head said exports this month are forecast to post a double-digit decline on-year for the second consecutive month.

Alarm bells have been ringing as Korea’s outbound shipments -- one of the key pillars for its economic growth along with domestic consumption -- dipped 18.5 percent last month from a year ago, the largest monthly drop since August in 2009. 

Deep-rooted problems surrounding sagging exports include lack of diversification in export markets and items, and high dependency on conglomerates, he said. 

When it comes to the structural imbalances in exports, China accounted for a quarter of Korean exports last year. Further, 13 export items manufactured by conglomerates took about 80 percent of the total outbound shipments.  

“It appears to be difficult to see a rebound in exports any time soon unless Korea tackles these issues,’’ he said. 

“Most of all, as the export facilitator, the agency will focus its budget and personnel on nurturing SME exporters this year to reboot trade, while exploring new markets and new industries.”

According to the KOTRA data, only about 3 percent of SMEs are exporting their goods and services as of now. 

By Seo Jee-yeon  (jyseo@heraldcorp.com)