Traders attributed the sharp rise to production capacity expansion by LG Metals Corp early this year. LG Metals, the country's only refined copper producer, currently has 350,000 tonnes of smelting capacity based on copper concentrates and 420,000 tonnes of refining capacity.

South Korea's copper concentrate imports were 346,603 tonnes in the first five months of 1998 against 234,098 tonnes in the same period a year ago. South Korea's copper concentrate imports totalled 518,112 tonnes in all of 1997.

Korea's refined zinc exports are expected to surge to 160,000 tonnes in 1998 from 88,600 tonnes in 1997. Korea Zinc Co Ltd, the largest of the nation's two zinc producers, said,``We exported actively to make up for slumping domestic demand in the first half of this year and will do the same for the second half," Kim Jae-sun, generalmanager of Korea Zinc's zinc business team, told Reuters.

Korea Zinc accounts for about 75 per cent of the country's zinc production and the other producer, Young Poong Corp accounts for the remainder. Kim said the two companies have expanded their shipments to the United States and Europe, which consumed only a small portion of South Korean exports.

Exports to their traditional markets, the Philippines, Taiwan and Indonesia, have slumped this year due to their economic slowdown.

The country's zinc production rose 27 per cent to 192,000 tonnes in the first half of 1998 from a year ago but domestic sales fell 19 per cent to 110,000 tonnes as the country's financial crisis slashed demand, Kim said.