S/Korea exports slow as Southeast Asia demand declines

South Korea’s exports slowed last month as demand from Southeast Asian nations fell and the won’s advance weighed on exporters’ price competitiveness.

Overseas shipments rose 0.2 per cent in November from a year earlier, down from a revised 7.2 percent gain the previous month, the Ministry of Trade, Industry and Energy said in an e-mailed statement.

The median estimate in a Bloomberg News survey of 12 economists was for a three per cent increase.

The slowdown in exports threatens to derail the recovery in Asia’s fourth-largest economy, making it unlikely the Bank of Korea will raise its benchmark rate this month. The won was the best performer among Asian currencies last month, rising 0.2 per cent against the dollar and hitting a five-year high against the yen.

“Major economies are improving, which will boost our exports,” the ministry said in the statement. “However, the won’s appreciation and the expected tapering of the US quantitative easing program will remain as a risk.”

Imports fell 0.6 per cent from a year earlier, bringing the monthly trade surplus to $4.8bn, today’s report showed.

Overseas shipments to members of the Association of Southeast Asian Nations dropped 11.2 per cent from a year earlier, and those to Japan fell 6.4 per cent, the ministry said. In contrast, exports to China and the US climbed 3.7 per cent and 2.9 per cent, respectively.

The ministry’s statement cited Indonesia’s economic slowdown as one reason for the fall in shipments to the ASEAN region.

Indonesia’s growth in the three months through September slowed to the weakest since the 2009 global recession as a declining rupiah restrained investment in Southeast Asia’s largest economy. The Indonesian currency fell 5.8 per cent against the dollar in November.

South Korean authorities are watching the foreign-exchange market for drastic movements, Finance Minister Hyun Oh Seok told reporters in Seoul on Nov. 25. The weak yen may hurt some South Korean exporters, the Bank of Korea warned in its quarterly report on domestic regional economies.

The BOK kept its benchmark interest rate unchanged in November for a sixth straight month, as 14-year-low inflation provided room to support growth against risks from currency volatility. The monetary policy committee meets to decide on the rate.

Berlin startup factory targets peer lending market

Serial startup firm Rocket Internet is targeting the growing market for peer-to-peer lending with the launch of a new site in Germany.

Berlin-based Rocket Internet says the site called lendico.de will link up private lenders and consumers seeking loans of €1,000- €25,000 ($1,360-$34,000).

According to the Associated Press, the market for so-called peer-to-peer loans has grown rapidly in recent years with sites such as Prosper.com and Zopa.com among the biggest incumbents.

Lendico said Sunday that interest rates on loans would start at 2.99 per cent. That is about half the typical rate of consumer loans in Germany, Europe’s biggest economy.