SEOUL: Export prices in South Korea experienced the sharpest decline last month since January, with the Bank of Korea noting the index hitting 82.12, falling by 3.5 percent from September.
The central bank noted on Tuesday that the country’s export prices continued to drop as local currency catch up with the U.S. dollar. The average won-dollar rate in October closed at 1,148.18 won, decreasing from September’s 1,184.76 won.
“The average won-dollar exchange rate fell 3.1 percent on-month in October, having a great impact on weaker export, import prices,” said a Bank of Korea official. “But the pace of a drop in international oil prices slowed.”
In October, the prices of Dubai crude, the global price benchmark, also reportedly increased by 0.1 percent on-month at $45.83 per barrel.
Korea Herald also noted in their article on Oct. 13 that the central bank data showed South Korea’s import prices continued to decline in September for the 37th consecutive month.
The Bank of Korea’s preliminary data revealed that import prices dropped 13 percent on-year in September, with a gradual drop by 13.6 percent on-year in August.
The continuous drop was mainly viewed as a result of the slash in import prices of oil and petroleum products. In September, a drop by 35.1 percent in import prices of oil on-year was noted, while coal and petroleum prices decreased by 42.3 percent.
The Dubai crude, accounting for 80 percent of South Korea’s oil imports, fell to $45.77 per barrel in September from $47.76 in August.
Export prices in September also reportedly dropped by 1.9 percent on-year, slightly increasing from a 1.6 percent decline in August. The won-dollar exchange rate in August closed at 1,179.10.
On the bright side, Korea Times noted on Tuesday that despite South Korea’s weak exports, domestic demand continue to boost industrial output and economic growth, with a 1.9 percent on-month increase has also been reported in September in the manufacturing, mining, gas and electricity industries.
