South Korea’s export and import prices turned negative after two months of gains in July, darkening prospects for turnaround in exports.

According to data announced by the Bank of Korea on Friday, the country’s export price index edged down 0.4 percent on month to 94.59 in July, reversing direction after the increases of 0.5 percent in May and 0.6 percent in June. Against a year ago, the index declined 5.8 percent, extending the losing streak for 14 consecutive months.

When factoring out the effect of the Korean won-U.S. dollar exchange rate change, export price index rose 0.3 percent on month but lost 7.7 percent on year.

The weakening was largely driven by subdued prices of chips.

The export price of computers, electronic and optic devices were down 2 percent due to the price decrease of DRAM (-6.4 percent), flash memory (-5.2 percent) and mobile phones (-0.9 percent). The price of fiber and leather products was off 1.3 percent, machinery and equipment 0.6 percent, and transportation equipment 0.6 percent.

Import price index in July also dropped 0.9 percent from a month ago and 9 percent against a year earlier. The index without the exchange rate effect slid 0.3 percent on month and 10.9 percent on year.

Prices of raw materials slipped 1.9 percent on month, intermediate products 0.8 percent, capital goods 0.1 percent, and consumer items 0.7 percent.

By Lee Ha-yeon

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]