South Korea Export Prices Hit 28-Year High
South Korea’s terms of trade improved last month by the widest margin since data collection began, as rising semiconductor prices and falling international oil prices converged simultaneously. The Bank of Korea assessed that both export prices and volumes increased in tandem, indicating strengthened
South Korea's export prices reached a 28-year high in July 2026, as rising semiconductor costs and falling oil prices combined to boost the terms of trade, according to the Bank of Korea. The net barter terms of trade index surged 24.7% compared to the same period last year, indicating that more imports could be purchased with the same amount of export earnings.
Export prices, excluding a time lag, jumped 36.8% year-on-year, with the semiconductor sector driving the increase. The export price index for July hit a record high, surpassing levels not seen since 1998. Meanwhile, import prices stayed relatively stable, falling 1.0% month-on-month as international oil costs declined and the won weakened against the dollar.
This resulted in a notable improvement in the income terms of trade index, which rose 49.7%, reflecting both higher export volumes and prices. Bank of Korea officials noted that stronger export competitiveness and improving external purchasing power among domestic firms contributed to these gains. However, the persistent rise in import prices could still pose a risk to consumer price levels in the future.
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