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Containers stacked at Pyeongtaek Port in Gyeonggi Province on September 4. / Source: Yonhap News

Korea’s export and import prices both rose in August for the second consecutive month, driven by a weaker won and higher prices for computers and electronic equipment, the Bank of Korea said on September 16.

Export prices climbed 0.7% from July but fell 1.0% from a year earlier. The average won-dollar exchange rate rose from 1,375.22 in July to 1,389.66 in August, while prices for computers, electronic and optical devices increased, pulling overall export prices higher. On a contract-currency basis, however, export prices dropped 0.3% month-on-month.

Import prices rose 0.3% from the previous month, despite Dubai crude oil falling from $70.87 a barrel in July to $69.39 in August. The effect of the weaker won offset the oil price decline. Compared with a year earlier, import prices dropped 2.2%. Raw materials fell 0.4% on-month, while intermediate goods, capital goods and consumer goods rose 0.5% and 0.7%, respectively. On a contract-currency basis, import prices slipped 0.6%.

Trade indices showed that export volumes grew 5.4% year-on-year in August, outpacing the 2.0% rise in export values. Import volumes rose 2.2%, but import values declined 3.8%. As import prices fell more sharply than export prices, the net barter terms of trade improved by 2.9%, while gains in export volumes pushed the income terms of trade up 8.5%.

Separately, Korea logged a current account surplus of $10.78 billion in July.