Korean hunger for wood boosts profit

When Port of Tauranga reported its profit jump this year, a good part of the rise could be attributed to the pick-up in forestry volumes going to northeast Asia, particularly Korea.

During the Asian crisis, with Korea as the single largest destination for New Zealand forestry exports, Port of Tauranga's forestry volumes were virtually halted.

But with the resumption of the Korean log intake, activity has returned to the Port of Tauranga.

Korea is New Zealand's sixth largest export market, buying some $702 million-worth of products, including forestry, dairy, animal hides, aluminium, seafood and deer velvet.

Total exports to Korea fell 26 per cent in 1998 from the 1997 level, while our imports from Korea rose 6 per cent to $449 million. The New Zealand Trade Development Board expects exports to rebound by between 15-20 per cent in 1999.

And New Zealand has been a growing market for Korean products. Imports from Korea have risen by over 46 per cent since 1990. Besides cars from Hyundai and consumer electronics items from Samsung, we also buy Korean iron, steel, pitch, boilers and tyres.

Korea is also a source of immigrants for New Zealand. From just 400 before 1990, immigrant numbers stood at 16,649 at the end of December 1998.