Import and export price fluctuations in October

The profitability of trading companies is being threatened as export prices declined while import prices rose for the third consecutive month last month.

According to the Bank of Korea Tuesday, Korea's won-based import prices climbed 0.4 percent in October from the previous month, while export prices in terms of the local currency dropped 0.1 percent.

Officials said that export prices fell sharply due to a plunge in chip prices, despite the fall in the value of the won against the dollar. They said that the drop is also attributable to the prices of petrochemical products, fiber and clothes, which dropped due to the stabilization of international oil prices and the slowdown of the U.S. economy.

On the other hand, despite the sharp fall in international prices of nonferrous metals and petrochemical products, import prices rose due to the won, which shed much of its value against the dollar. Officials said that the rise of import prices was also fuelled by the increase in imported agricultural products following reports that the United States would have a poor harvest this year.

Import prices rose 0.6 percent in August and 2.8 percent in September, continuing their upward trend for the third consecutive month.