Inter-Korean trade volume hit a year-on-year record in the first half despite cross-border confrontation triggered by North Korea's sinking of a South Korean warship in March.

The Korea Customs Service says South Korea exported 430 million dollars worth of goods to North Korea and imported over 550 million dollars worth of goods in the first half for a deficit of 120 million dollars.

The 980 million dollars in trade volume was a 52-percent increase from last year's first half.

But the customs service forecasts the figure will fall by 30 percent year-on-year in the second half if the government ban on any inter-Korean projects, excluding the Gaeseong Industrial Complex in the North, continues. The ban was put in place in response to Pyongyang's sinking of the “Cheonan” warship.