South Korean exports slip into reverse as Japan steps on the gas

Seoul

SOUTH Korea's much-vaunted export machine is losing steam as the won rises against the euro and the yen, undercutting sales in global markets.

That's in sharp contrast to Japan, where currency depreciation is giving a leg up to large manufacturers that ship their wares abroad. While domestic demand and consumer sentiment in Korea have shown signs of a pickup following three interest rate cuts since August, exports have dropped for four straight months this year. The weakness extends to cars and ships: two mainstays of the nation's manufacturing base. In a worrying sign for Korean policymakers and economists, the latest data for April shows exports not only contracting in value terms, but also shrinking in volume.