South Korea's Korea Development Bank Research Institute predicted that exports to China, the largest trade partner of South Korea, may decrease by 30 percent this year, South Korea's Korea Times reported on Wednesday.

According to the institute, China's imports and exports in 2009 would drop by 10 percent and 5 percent, respectively, adding to the fact that China's imports have been plunging since last October.

As total imports shrink, shipments from South Korea are also expected to decline.

The institute said that a 9 percent drop in China's imports would lead to a 15 percent decline in Korea's exports to China.

South Korea's trade account in such case would post a 7.4 billion-U.S. dollar surplus, which marks just one-half of last year's size.

The institute attributed the possible export decrease to changes in business patterns between the two countries.

While the number of South Korean parts and material exporters to China is decreasing at a rapid pace, the portion of parts and materials imported to South Korea from China is soaring, from 50 percent last year to 54 percent this year.

"As the chain reaction of global demand falls deep into negative territory, China's trade and Korea's exports to China may not turn out for the better in the near future," said Park Seok, an analyst at the institute.

Source: Xinhua