South Korean exports hit in global recession

South Korea’s exports lost one-third of their value in January from a year ago. The exports is said to be the biggest engine of the country’s economy has seen a sharper drop than expected.

According to a preliminary government data showed Sunday, the fall of 32.8% is far more than drops of 19% in November and 17.9% in December.

With exports accounting for nearly half of South Korea’s economic output, the plunge represents the biggest challenge that South Korea has faced so far in the global economic downturn that began more than a year ago with the housing crisis in the U.S.

The latest export data appeared on the Web site of the Korea Customs Service on Sunday. Reuters first reported the news. The Ministry of Knowledge Economy officially released the data on Monday morning Asia time.

The magnitude of the drop in demand for South Korean products outside the country started to become apparent two weeks ago when the customs agency reported that the value of exports through the first 20 days of January fell by nearly 29%.