(Adds detail, analyst comment)* Feb exports up 4.0 pct y/y, imports up 14.8 pct y/y* Fewer working days due to Lunar New Yr crimps exportsgrowth By Cynthia KimSEOUL, March 1 (Reuters) - South Korea's export growthslowed in February to its weakest in more than a year,government data showed on Thursday, showing the effects of along Lunar New year holiday and a potential slip in overseasdemand for Korean goods. The 4 percent year-on-year increase in exports was theslowest expansion since November 2016 and deeply underperforms a22.3 percent jump in January, but was better than the medianestimate for a 0.4 percent increase. Shipments were hit by fewer working days due to the changeof the timing of the Lunar New Year. There were 19.5 workingdays in February this year, versus 22 last year.
"This slowdown is likely to be temporary, exports willcontinue to grow going forward on solid demand for Koreangoods," said Kim Doo-un, an economist at Hana FinancialInvestment.Economists expect South Korea's exports to grow at a slowerbut steady pace in 2018 after 2017's bumper growth, reflecting astatistical base effect from last year's strong performance andongoing trade friction with the United States.
Bank of Korea Governor Lee Ju-yeol said on Tuesday that theauto and steel industries could be hit hard if U.S trade curbswere to be further stiffened, because they run the biggest tradesurpluses with the United States. The U.S. Commerce Department has recommended PresidentDonald Trump impose steep curbs on steel imports, includingthose from South Korea, after slapping bigger taxes on washersand solar panels in January. "Further wild cards will be the renegotiation of theKorea-U.S. Free Trade Agreement. How the talks unfold willaffect export sentiment," said Kim at Hana.Trump has criticised the current U.S. trade deficit withSouth Korea, while South Korean President Moon Jae-in has saidthe Korea-U.S. FTA benefits both countries by expanding theirtrade. Imports jumped 14.8 percent in February from a year earlier,exceeding the 13.1 percent expansion seen in the survey. Annualimport growth in January was 21.1 percent.
(Reporting by Cynthia KimEditing by Eric Meijer)
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