Korea output up less than expected


South Korea's tourism has not seen quite the boost anticipated from the World Cup, but the team still has one game to play

SEOUL, South Korea -- Industrial output jumped 7.7 percent in South Korea for the month of May, compared with a year ago.

Month on month production rose a seasonally adjusted 0.5 percent from April.

The National Statistical Office, which released the figures, stated that Korea's car, chip and machine sectors boosted the data.

The figures were slightly lower than forecast by economists. Other heavy industries such as shipbuilding and textiles declined in Korea in May.

Separately, the Bank of Korea reported a jump in the country's current-account surplus, up $1.05 billion for May.

That was half the rise in the surplus the same time last year. But it comes after a sizeable $11.8 billion deficit in April.

Tourism boost not that great

The figures show that exports lifted 7.8 percent over the same time last month to $14.2 billion. Imports were up 1.2 percent.

But the situation is reversed when year-ago data is used. Imports jumped 9.8 percent over May 2001, while exports rose 6.9 percent.

The soccer World Cup has not produced quite the tourism boost that was anticipated. The country hosted the tournament along with Japan, which will hold the final on June 30 near Tokyo.

Still, it was a boost. Elsewhere in Asia, industries such as Hong Kong's legal gambling have been hurt by the tournament (full story).

South Korea's tournament is also not over. Asia's first semifinalist plays European qualifier Turkey in Taegu on Saturday for third place. Each game has sparked infectious celebrations from the Red Devil fans (full story).

Thanks in part to the 'World Cup effect,' the current account surplus for the first five months of the year hit $2.7 billion. That's up $0.6 billion over the first five months of 2001.

Rating agency Fitch gave South Korea's ability to raise money a boost on Thursday. It lifted Korea's national creditworthiness by two notches, the first time it has done that in Asia since the 1997 financial crisis.

It credited that to South Korea's economic performance and successful reforms. According to Fitch, South Korea's economy is set to grow 6.25 percent this year.