Monthly easing in import cost for Korea snapped Sept due to stronger USD

South Korea’s import prices turned stronger from the past month for the first time in three months due to sharp fall in the Korean won versus the U.S. dollar despite easing in oil prices.

According to the Bank of Korea on Friday, the import value index stood at 154.38 in September, gaining 3.3 percent from the previous month, the first increase in three months. Against a year ago, it was up 24.1 percent.

The rise in import prices comes as the dollar gained 5.5 percent from the previous month to 1,391.59 won in September.

From August, import price of raw materials including crude oil added 3.4 percent. Natural gas including liquefied natural gas (LNG) import cost soared 13.7 percent while oil prices dropped by 0.7 percent.

Korea’s benchmark for oil prices - Dubai crude - tumbled 5.9 percent compared to the previous month to $90.05 per barrel on average but was still 25.2 percent higher from a year ago.

Intermediary goods rose 3.1 percent with computers, electronics, and optical devices gaining 5.4 percent from a month earlier. By item, semiconductors climbed 9.7 percent on month.

The export price index stood at 131.74, up 3.2 percent from the previous month and 15.2 percent from a year earlier to imply protracted deterioration in trade balance as the on-year gain import cost continues to outweigh the rise in export prices.

Export prices were bolstered mainly by chemical goods which added 3.9 percent as well as computers, electricity, and optical devices up by 3.4 percent. By item, export prices of DRAM chips rose 2.6 percent and semiconductors 5.5 percent.

The export price of agricultural, fishery and forestry goods gained 3.2 percent compared to the previous month.

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