South Korean exports grew 14.4 percent in August from a year earlier as buoyant demand from China offset weaker gains in shipments to the U.S. The figure, released by the commerce ministry in Gwacheon today, was close to the 14.7 percent median estimate of 11 economists surveyed by Bloomberg News. Exports climbed 17.8 percent in July.

Asia's third-largest economy had its biggest expansion in almost four years in the second quarter, fueled by overseas shipments, according to revised figures issued by the central bank Monday. Soured home loans to the riskiest borrowers in the U.S. have raised concern that weaker world growth will curb demand for South Korea's ships, mobile phones and semiconductors.
“It's too early to be complacent about the sub-prime issue and its possible impact on the economy,” said Lim Jiwon, an economist at JPMorgan Chase & Co. in Seoul. “South Korea's economy can be indirectly affected.”
The won was little changed today, trading at 938.40 against the dollar at 10:30 a.m. in Seoul. The benchmark Kospi index of stocks gained 0.1 percent to 1,875.04.
A weaker won helps exporters by making goods cheaper for overseas buyers. The currency has fallen about 3 percent since July 20, when global fund managers cut holdings of riskier emerging-market assets because of the U.S. sub-prime crisis.
-------------China Shipments
Shipments to China, the nation's biggest market, rose 12.9 percent in the first 20 days of August from a year earlier. The Chinese economy grew 11.9 percent in the second quarter from a year earlier, the fastest pace in more than 12 years.
Exports to the U.S., the second largest, gained 3.3 percent in the first 20 days. The decline in growth from 24.7 percent in July was mainly because of reduced sales of oil products, the commerce ministry said.
The economy grew 1.8 percent in the second quarter from the previous three months, the quickest pace since the fourth quarter of 2003 and more than the initial estimate of 1.7 percent, the Bank of Korea said.
From a year earlier, the expansion was 5 percent, up from July's estimate of 4.9 percent.
The central bank's 2007 GDP growth forecast of 4.5 percent remains ``valid,'' Ahn Kil Hyo, a central bank official said at a press briefing in Seoul.
“Exports are holding up well, thanks to demand from China, which is expanding at a fast pace, and also Japan and Europe,” said Lee Sung Kwon, an economist at Good Morning Shinhan Securities Co. in Seoul.
Exports rose to $31.2 billion in August and imports gained 9.8 percent to $29.7 billion, leaving a monthly surplus of $1.5 billion.
(Source: Bloomberg