SOUTH KOREAN EXPORTS FORECAST TO RISE STEADILY IN 2008.

SEOUL, Jan 1 Asia Pulse - South Korean exports are projected to have a heyday this year because of strong demand for ships, steel and autos, although the country's strong won against the U.S. dollar and an expected slowdown in the global economy pose risks, analysts said.

Overseas sales by South Korean companies are expected to increase 11.4 per cent this year to US$413 billion, slowing a bit from last year's estimated 13.9 per cent gain, according to the Korea International Trade Association (KITA).

"Exports are expected to increase at a double-digit rate in 2008 - for the sixth year in a row - boosted by brisk overseas shipments of autos and ships and strong demand from emerging markets," the association said.

South Korean exports soared in 2007 in the midst of high energy costs, high prices of raw materials and the uncertainties surrounding U.S. sub-prime mortgage loans.

South Korea, the world's fourth-largest crude oil buyer, depends entirely on imports to meet its oil needs. South Korea's currency has been rising against the U.S. dollar this year, making its exports more expensive.

This year's strong export gain will be possible despite high-flying oil prices and volatile foreign exchange rates that are expected to dampen the South Korean economy, it said.

"The export gains are a testament to improvements in the international competitiveness of locally made products that are less susceptible to price fluctuations, and to strong global economic growth," said Oh Jung-kyu, head of the Ministry of Commerce, Industry and Energy's trade and investment promotion bureau.