Korea imported more clothing than it exported for the first time last year.
According to the Ministry of Commerce, Industry and Energy Sunday, the nation exported caps, gloves and other articles of clothing, which amounted to $3.56 billion, while importing products worth $3.65 billion. The shortfall amounted to $91 million.
The ministry said that the nation had never recorded losses in clothing trade since the 1960s, when clothing exports served as one of the few dollar-earning industries.
"The China factor is most attributable,'' said an industry source.
China is taking advantage of cheap labor to increase their price competitiveness and, at the same time, is narrowing the technological gap with Korea, according to the source. ``Chinese products are replacing Korean products in the global markets,'' he said.
The ministry also cited as another reason for an increase in imports of high-end products from Italy and France.
The ministry statistics showed Korea's textile and clothing imports from China rose 9 percent, amounting to $2.6 billion. Italian imports jumped 11.4 percent to $267 million; Japanese and U.S. imports amounted to $160 million and $98 million, respectively. French imports jumped a whopping 48 percent to $74 million.
Korean textile exports have been sliding ever since they peaked at $10 billion in 1989. In 2001, the exports dropped to $5.28 billion and to $4.34 billion in 2004.
In contrast, imports amounted to $1.59 billion in 2000 and rose to $3.32 billion in 2004.
