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Libyan Crisis Hurt Korean Exports

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2011-02-24

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Libya is the second largest used car export market for Koreafollowing only Jordan.
Exporters sold over 26 thousand used cars in Libya last year‚ raking in 134 million US dollars.
However last month‚ Korean exporters suffered losses of around 20 billion won or 17 million dollars as they couldn't ship over 2-thousand cars to Libya due to the escalating unrest in the region.
[Interview : Lee Byung-ha‚ Vice President
Korea Used Car Export Association] "The cars that we procured are not selling and even if it's sold we can't ship it so we're having a hard time as people are asking for refunds."
Buyers from Libya are getting anxious as well.
They are stuck in Korea as they can't even find tickets to return home.
[Interview : Libyan buyer] "Now we are finishing our job and we're still waiting and we are staying in our hotel and spend the money and we are waiting for going back to Libya."
On Wednesday‚ the Korea Trade Investment Promotion Agency said that out of around 5-hundred Korean companies doing business with Libya over 30 percent have not received payments and they estimate that damages could run to about 18 million dollars.
[Interview : Park Boo-kyu‚ Trade Policy & Strategy Director
Korea Intl. Trade Association] "Communication lines have been cut off with buyers so exports can't be shipped and payments can't be received‚ these are the various complaints we have received."
KOTRA cites the communication issues as the number one reason for trade losses followed by restrictions in shipping and logistics.
The fact that the Libyan companies that they are dealing with. are privately owned. makes any potential compensation process even more complicated.
Last year‚ Korean exports to Libya totaled around 1.4 billion dollars.
Kim Han-ul‚ Arirang News.
Reporter : chkim@arirangtv.com

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