Semiconductor Slump Causes Export Value Index to Drop 16%... Terms of Trade Worsen for 25 Consecutive Months

As the semiconductor market slump continues, South Korea's export value index fell sharply by 16% compared to a year ago last month. This marks seven consecutive months of decline.

Accordingly, the net barter terms of trade index has also deteriorated for 25 consecutive months.

According to the "Trade Index and Terms of Trade" (based on the dollar) statistics released by the Bank of Korea on the 31st, last month's export value index dropped 16% compared to a year ago.

By item, transportation equipment (27.7%) increased, but computers, electronics, and optical equipment (-38.8%), coal and petroleum products (-27.3%), and chemical products (-12.3%) decreased. The decline in computers, electronics, and optical equipment widened compared to the previous month (-34.6%).

The export volume index fell 3.2% compared to a year ago, marking two consecutive months of decline. Transportation equipment (25.2%) and primary metal products (2.3%) increased, but computers, electronics, and optical equipment (-17.8%) and textiles and leather products (-13.1%) decreased significantly.

The import value index also fell 13.5% during the same period, marking two consecutive months of decline.

Machinery and equipment (21.6%) and transportation equipment (19.4%) increased, but computers, electronics, and optical equipment (-17.5%) and coal and petroleum products (-40.6%) decreased.

The import volume index fell 0.9% as coal and petroleum products (-16.4%), primary metal products (-12.1%), and computers, electronics, and optical equipment (-10.1%) decreased.

The net barter terms of trade index, which represents the quantity of goods that can be imported per unit of export, decreased by 0.5% compared to a year ago, showing a decline for 25 consecutive months.

This was due to export prices (-13.2%) falling more than import prices (-12.8%). However, the rate of decline narrowed compared to the previous month (-5.0%).

In the case of the income terms of trade index, both the export volume index (-3.2%) and the net barter terms of trade index (-0.5%) declined, resulting in a 3.7% decrease compared to a year ago. This marks 15 consecutive months of decline.

The income terms of trade index represents the total quantity of goods that can be imported with South Korea's total export amount.

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