Export prices for South Korean products declined for two straight months on the back of cheaper oil and firm local currency, boosting worries about profitability of exporters, central bank data showed.
The export price index fell 4.2 percent in January from a month earlier, after sliding 2.6 percent in the prior month, according to the Bank of Korea (BOK).
Lower export prices indicated that South Korean exporters reaped less profit relative to export volume, triggering weak corporate profitability.
The export price fall came as cheaper oil pulled down prices for oil-related products. The South Korean currency's appreciation to the U.S. dollar reduced export earnings converted into the domestic currency.
The won/dollar exchange rate averaged 1,088.86 won in January, down 1.4 percent from the previous month.
By Ruchi Singh
reporter
Park Sae-jin
swatchsjp@ajunews.com
