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South Korea’s exports increased at the fastest pace in 17 months, adding to signs that Asia’s fourth-largest economy is recovering from the global recession.

Overseasshipments gained 33.7 percent in December from a year earlier to $36.2 billion, the Ministry of Knowledge Economy said today. That was more than the median 27.9 percent forecast in a Bloomberg News survey of 10 economists. Imports rose 24 percent to $32.9 billion for a trade surplus of $3.3 billion.

Higher overseas sales suggest a strengthening recovery in South Korea’s $929 billion economy, which grew 3.2 percent in the third quarter. Exports in November 2008 recorded their biggest fall of the year as the financial crisis weakened demand, providing a low-base comparison for the figures released today.

“Exports will post growth for the coming months given the low base from last year and also as demand from overseas rises,” said Kim Jae Eun, an economist at Hyundai Securities Co. in Seoul. “South Korea should benefit from orders from China and emerging nations less affected by the global recession.”

Hyundai Motor Co. and other South Korean carmakers may sell 1.4 million vehicles in the domestic market this year from an estimated 1.37 million in 2009, the Korea Automobile Manufacturers Association said in December. Hyundai Heavy Industries Co., the world’s biggest shipbuilder, aims to win $17.7 billion in new orders in 2010.

Markets Closed

For 2009, the country’s trade surplus reached a record $41 billion as imports dropped 25.8 percent while exports declined 13.8 percent, the ministry said in a statement.

Exports in January will grow at a double-digit pace from a year earlier after the global financial crisis cut January 2009 overseas shipments by 34.5 percent, according to the statement.

South Korea’s financial markets are closed for a public holiday today. The nation’s benchmark Kospi stock index gained 50 percent last year, the most since 2005.

South Korean exports will increase 13.2 percent this year, after a 13.9 percent decline in 2009, the finance ministry said last month. Earlier reports showed industrial production climbed 1.4 percent from October while an index of leading economic indicators and manufacturers’ confidence increased.

Exports to China, the biggest buyer of South Korean goods, surged 74.4 percent in the first 20 days of December, today’s report showed. Shipments to the U.S. rose 8.7 percent and shipments to Europe gained 49.4 percent over the same period.

Shipments of semiconductors and display panel exports more than doubled last month, the government said. Petrochemicals exports gained 61.1 percent.

South Korean President Lee Myung Bak said Dec. 30 the nation’s economy is likely to expand more than 5 percent in 2010, the fastest pace in three years helped by exports and domestic spending. Both the finance ministry and the central bank in December raised economic growth forecasts for 2009 and 2010.

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