Korea's export prices fall to lowest level in over six yearsUpdated: 2014-06-13 03:49:39 (KST)
Korean exporters saw their profitability decline for the third straight month in May, as export prices fell to their lowest level since December 2007.
The figure stood at 86.8,.. which is a drop of one.six percent from the previous month, according to the Bank of Korea.
That means exporters were earning that much less, when shipping out the same amount of products.
The continued fall is attributed to the strengthening Korean won.
The won rose two percent against the greenback last month when Korea posted a sizable current account for the 26th straight month.
Foreign stock investors also helped push the value of the won higher as they bought the Korean currency to buy local shares seen as safe investment.
Experts say the won is expected to keep strengthening against the dollar in coming months, given that the United States has no plan to increase interest rates any time soon.
Even then, they don't see any major decline in the country's exports.
"A growing number of exporters, particularly conglomerates, have grown largely immune to currency fluctuations,.. and research results since 2000 show that the country's exports are not negatively affected by exchange rate changes. So I don't see much immediate impact on exports from a stronger won."
Huh adds however, it's a different story for export-dependent small- to medium-sized companies whose profitability has worsened since the global financial crisis in 2008.
That, could signal a widening gap between mid-sized businesses and conglomerates.
Yoo Li-an, Arirang News.
Reporter : Lian.email@example.com