Last Year's Export and Import Prices Saw the Largest Increase Since 2008

Bank of Korea Announces 'December 2021 Export and Import Price Index'

The Busan New Port Sinsundae Pier, piled high with import and export cargo, brightly illuminates the night sky to continue nighttime operations. South Korea surpassed $640 billion in annual export value in 2021, setting a new record. After reaching its first $100 million in 1964, it exceeded $10 billion in 1977, $100 billion in 1995, and $600 billion in 2018. This year, surpassing $640 billion marks a new milestone in 66 years of trade history. Photo by Kang Jin-hyung, Busan aymsdream@

[Asia Economy Reporter Jang Sehee] Last year, the annual export and import prices rose by over 10% compared to the previous year, reaching the highest level since 2008 due to the sharp increase in international oil prices and raw material costs, as well as base effects. However, in December last year, export and import prices slightly declined compared to the previous month, continuing a downward trend for the second consecutive month.

According to the 'December 2021 Export and Import Price Index' statistics released by the Bank of Korea on the 13th, the annual export price last year increased by 14.3% and the import price by 17.6% compared to one year earlier. These are the highest increases since 2008, when export and import prices rose by 21.8% and 36.2%, respectively.

Choi Jinman, head of the Price Statistics Team at the Economic Statistics Bureau of the Bank of Korea, explained, "The significant rise in export and import prices last year appears to be influenced by the base effect from the negative records in 2020. In particular, in 2021, international oil prices and raw material prices surged sharply, leading to a large increase in import prices."

The export price index for December last year (provisional figure in Korean won, base year 2015=100) was 114.64, down 1.0% from November (115.84). This marks a decline for two consecutive months. Coal and petroleum products (-5.3%) and chemical products (-1.7%) decreased compared to the previous month, influenced by the continued rise in the won-dollar exchange rate. The exchange rate rose from an average of 1,182.91 won per dollar in November to 1,183.70 won in December.

However, compared to the same month a year earlier, it was 23.5% higher. Although the increase slowed somewhat from the previous month (25.5%), it remains at a high level. This marks 11 consecutive months of increase.

Excluding the exchange rate effect, the export price based on contract currency fell 1.1% compared to November. Compared to the same month last year, it rose 15.3%.

The import price index for December last year (127.11) also fell 1.9% from the previous month, mainly due to a decline in international oil prices affecting mining products (4.6%) and coal and petroleum products (-5.6%). Compared to the same month last year, it rose 29.7%. The import price based on contract currency fell 1.9% from the previous month but rose 21.6% compared to the same month last year. This marks 10 consecutive months of increase.

However, there are concerns that inflationary pressures may increase in the future as international oil prices have recently shown signs of rising. Regarding this, Team Leader Choi stated, "While Dubai crude oil fell 8.8% in November compared to the previous month, recently oil prices have shown a slight upward trend. We need to monitor how international oil prices will move going forward."

This content was produced with the assistance of AI translation services.