Semiconductor Market Improvement... Export Conditions Rising for 4 Consecutive Months

Busan Nam-gu Sinsundae Pier [Image source=Yonhap News]

As semiconductor exports increase, the export index and terms of trade continue to improve.

According to the "December Trade Index and Terms of Trade" released by the Bank of Korea on the 30th, the export volume index last month rose 6.2% compared to the same month last year. The export volume index has been rising for four consecutive months since September last year. During the same period, the export value index also increased by 3.3%, continuing its upward trend for three consecutive months.

The improvement in indicators was driven by a 16.4% increase in export volumes of computers, electronics, and optical devices, including semiconductors, compared to the same period last year. Export volumes of transportation equipment, including electric vehicles, also rose by 7.1%.

The overall export volume index for last year increased by 0.6% compared to the previous year, while the export value index fell by 8.3%.

Yuseong Wook, head of the Price Statistics Team at the Economic Statistics Bureau of the Bank of Korea, explained, "Since the second half of last year, exports have improved mainly due to high-spec semiconductors, leading to better indicators."

The import volume index for December fell 7.1% compared to the same month last year, affected by decreases in minerals and computers, electronics, and optical devices. The import value index also dropped by 11.7% during the same period.

The overall import volume index for last year decreased by 3.8% compared to the previous year, and the import value index declined by 12.5% year-on-year.

With exports increasing and imports decreasing, the terms of trade are improving.

The net barter terms of trade index for December, which indicates the quantity of goods that can be imported per unit of export, rose 2.4% compared to the same month last year. It has been rising for seven consecutive months, continuing the improvement in trade indicators.

The income terms of trade index, which represents the total quantity of goods that can be imported with the total export value of South Korea, also increased by 8.7% year-on-year, marking seven consecutive months of growth.

The overall net barter and income terms of trade indices for last year rose by 0.2% and 0.8%, respectively, compared to the previous year.

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