August Export Value Index Declines for 11th Month... Terms of Trade Improve for Third Consecutive Month

Export Amount Down 9.5% from a Year Ago
Import Prices Fall More Than Export Prices

As semiconductor export prices continued to weaken, South Korea's export value index declined for the 11th consecutive month last month. Although the terms of trade improved for three consecutive months, this was due to import prices falling more sharply than export prices.

According to the "Trade Index and Terms of Trade" (based on the dollar) statistics released by the Bank of Korea on the 27th, the export value index in August fell 9.5% compared to a year earlier. This index has been on a downward trend for 11 months since last October (-6.6%).

Yoo Sung-wook, head of the Price Statistics Team at the Bank of Korea's Economic Statistics Bureau, explained, "The export value index declined as transportation equipment (21.9%) and machinery and equipment (4.7%) increased, but computers, electronics, and optical devices (-17.3%) and coal and petroleum products (-35.0%) decreased."

The export volume index in August fell 0.6% compared to a year earlier, marking a decline for two consecutive months. Transportation equipment (17.9%) and chemical products (6.9%) increased, but coal and petroleum products (-27.4%) sharply decreased, leading to the decline.

The import value index in August dropped 23.3% year-on-year, continuing a downward trend for six consecutive months since March (-6.6%). This was due to increases in electrical equipment (0.6%) but decreases in mining products (-39.3%) and computers, electronics, and optical devices (-19.8%).

The import volume index fell 12.1% compared to a year earlier, declining for two consecutive months. Coal and petroleum products (17.0%) and chemical products (2.3%) increased, but mining products (-22.4%) and computers, electronics, and optical devices (-15.2%) decreased.

The net barter terms of trade index, which represents the quantity of goods that can be imported per unit of export, rose 4.4% year-on-year. Import prices (-12.8%) fell more sharply than export prices (-8.9%), resulting in a rise for three consecutive months.

This index has been on an upward trend for three months since turning positive in June for the first time in 27 months.

The income terms of trade index, which indicates the total quantity of goods that can be imported with South Korea's total export value, also rose 3.8% compared to a year earlier, marking a rise for three consecutive months.

Team leader Yoo said, "Although the export volume index declined (-0.6%), the net barter terms of trade index rose 4.4%, resulting in a 3.8% increase compared to a year ago."

[Image source=Yonhap News]

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