Korea: Oil import cost nearly doubled this year

The import cost of crude oil has nearly doubled this year, sharply weakening the price competitiveness of Korean export items, officials said yesterday.

According to the Ministry of Commerce, Industry and Energy, the nation has brought in 530 million barrels of crude oil in the first seven months of this year, up only 4 percent from that of the same period of last year. However, the import cost has skyrocketed 105.4 percent to be totaled at $14.1 billion.

For the increased expenses, officials blamed the unit cost of importing crude oil, which has risen a whopping 97.4 percent to be $26.50 as of July, this year, from $13.40 posted during the same period last year.

Throughout last year, a total of 870 million barrels of crude oil were imported. And this year, government officials expect that the import amount would exceed the 900-million-barrel mark.

Based on this amount, an increase of $1 per barrel in oil prices means that the nation would have to pay an additional $900 million, the officials said.

"The rise in import costs of crude oil directly affects the price competitiveness of Korean export items. Given that the cost of importing crude oil has doubled this year, it can be assumed that the competitiveness of export items has weakened just as much," said a ministry official.

Updated: 09/15/2000

by Shin Hye-son Staff reporter http://www.koreaherald.co.kr/news/2000/09/__05/20000915_0540.htm

-- Carl Jenkins (Somewherepress@aol.com), September 15, 2000