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/ Yonhap

Last month, Korea's export prices continued their upward trend for the 11th consecutive month, ticking up slightly from the previous month due to a rising won-dollar exchange rate and robust semiconductor prices. On the other hand, import prices turned downward after a single month of increase, dragged down by falling international oil prices.

According to preliminary data on the "May 2026 Export and Import Price Indices and Terms of Trade Indices" released by the Bank of Korea on June 16, the export price index in won terms stood at 188.58 last month, up 0.3% from the previous month. Compared to the same month last year, the index surged by 46.9%.

This expansion was largely driven by a stronger won-dollar exchange rate, alongside price gains in computer, electronic, and optical products, as well as primary metal products. In May, the monthly average won-dollar exchange rate edged up 0.2% to 1,490.11 won, compared to 1,487.39 won in the preceding month.

By product category, agricultural, forestry, and marine products rose 1.8% month-on-month, while manufactured goods increased by 0.8%. The rally in semiconductor prices was particularly pronounced; computer, electronic, and optical products advanced 5.4% from the previous month and skyrocketed 104.0% year-on-year. Looking at specific items, DRAM and flash memory jumped 7.6% and 19.5% month-on-month, respectively. On a year-on-year basis, DRAM soared by 259.7% and flash memory surged by 223.0%.

In contrast, coal and petroleum products plummeted 11.0% from the prior month, heavily impacted by slides in diesel and jet fuel, which dropped 18.9% and 12.7%, respectively. Nonetheless, this figure still represented an 88.6% spike compared to the same month last year.

Meanwhile, import prices fell compared to the previous month. The import price index in won terms for last month came in at 168.05, down 0.3% month-on-month but up 24.8% year-on-year. The downturn in import prices was predominantly pushed by retreating global crude benchmarks. The monthly average price of Dubai crude dropped 2.4% to $103.15 per barrel in May, down from $105.70 in April. Among major import items, crude oil decreased by 1.9% month-on-month, while naphtha and diesel also lost 7.5% and 19.2%, respectively.

Lee Moon-hee, head of the price statistics team at the BOK, noted, "Following the ceasefire agreement between the U.S. and Iran, the trajectories of international oil prices and exchange rates could shift depending on the normalization of oil facilities in the Middle East and navigation conditions in the Strait of Hormuz." She added, "Uncertainty regarding the future path of import prices still remains."

Regarding the trade indices for May (measured in dollar terms), the export volume index and import volume index grew by 14.7% and 5.2% year-on-year, respectively. The export value index and import value index also expanded by 56.8% and 21.3%. The net terms of trade index for goods climbed 18.7% as the gain in export prices outpaced that of import prices, while the income terms of trade index jumped 36.1% due to the concurrent increases in both the net terms of trade and export volume indices.

                                                                                                          Han Sang-wook