S.Korea's export prices fall for two months on cheap oil, firm currency

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 Wednesday.

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.

Import prices tumbled 7.3 percent in January from a month ago, after retreating 5.1 percent in December, due to falling global crude prices.

Dubai crude, South Korea's benchmark, averaged 45.77 U.S. dollars per barrel in January, down 24 percent from a month earlier.

Prices for imported raw materials dropped 14.6 percent last month on a monthly basis amid falling oil prices.

Intermediate goods prices imported from overseas slid 5.3 percent on the back of lower oil and chemical product prices.

Prices for imported capital and consumer goods slid 1.9 percent and 2.1 percent respectively. Endi