During the first seven months of this year, Korean exports marked a 0.8 percent drop on a year-on-year basis. Given the worldwide slump, the decline may look to be nothing to fuss about. But it is a matter of grave concern for a nation that generates much of its economic growth with exports.

The problem is that few expect an early rebound. On the contrary, the decline in exports may accelerate in the months ahead. Hardest hit is the shipbuilding industry, whose seven-month exports stood at $38.19 billion, down 57 percent from the same period of 2011. Deliveries are being delayed as the European crisis is dragging on.

The prospects for months to come are still grimmer. The Federation of Korean Industries, a lobby for business conglomerates, says exports by the shipbuilding, steelmaking and petrochemical industries will fall 28 percent, 13.9 percent and 5.9 percent, respectively, in the second half of this year.

Imports dropped as well, but at a slower pace. As a result, the trade surplus was slashed to $13.5 billion, or two-thirds of the amount of trade earnings from January to July last year.

Of grave concern to the nation is that it may have a trade deficit this month. During the first 20 days of this month, the nation had $22.51 billion in exports and $26.99 billion in imports. True, shipments are back-loaded. But many doubt an increase in shipments during the final 11 days of the month will cover up the deficit of more than $4 billion.

Moreover, consumers are tightening the purse strings. Large retailers and department stores say sales are declining.

No wonder, many business enterprises are on an emergency footing. Some of them say the business environment is worse now than during the 2008-09 global crisis of U.S. origin.

There may not be much that the administration can do to improve the worsening domestic economic conditions at a time when all nations in the world are going though hardship. Nevertheless, the administration will have to pay keen attention to demands from business concerns and do what little it can to help them tide over the crisis.

Given the fiscal constraints, the administration may not be able to increase spending as much as demanded by the business community. But it should push for deregulation in its effort to create a business-friendly environment. It will also have to help shield Korean exporters from the rising protectionist sentiment abroad.