Korea's trade surplus for this year was forecasted to range between US$20.4 and US$27.7 billion. However, export growth in the first quarter has reached only 17.4% of what was expected from the devaluation of the Korean Won. Korea's terms of trade have deteriorated by 35% as well. The trade surplus reflects a sharp drop in imports of raw materials and capital goods, engendering the possibility of a collapse of the Korean economy's production base. Therefore, the government needs to implement appropriate export support measures as well as import incentives for raw materials if the Korean economy is to emerge from the current financial crisis. The expansion of commercial banks' purchases of D/A export bills is essential for expediting exports. For this reason, it is important for the government to negotiate with the IMF so that the Bank of Korea can use some of its excessive foreign reserves to facilitate exports.