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South Korean exports are likely to be dampened by the global financial crisis next year as consumption and investment in major economies are expected to slow down, a state agency said on Sunday.
Korea Trade-Investment Promotion Agency said that global import demand was seen steady or slowing down in 2009 and consumption would be hit further because of high inflation.
Exports have been the main engine of South Korea's economic growth while domestic demand remains subdued in Asia's fourth-largest economy.
The state agency said it became urgent to bolster competitiveness of major export goods as demand for cars and chips, which account for over 15 percent of the country's total exports, has been hit by US financial crunch.
Chip exports fell 7.6 percent during the first eight months of the year from a year ago while passenger car exports fell 3.1 percent, government data showed.

Copyright Reuters, 2008

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