[Asia Economy Reporter Kim Eunbyeol] As global trade conditions show signs of recovery, South Korea's export volume and value continued to increase in February.
According to the trade index and terms of trade (based on the dollar) statistics released by the Bank of Korea on the 31st, the export volume index for February (109.26, provisional) rose 4.2% compared to a year earlier, marking six consecutive months of year-on-year growth since September last year.
Notable increases were seen in indices for transport equipment (26.2%), chemical products (9.9%), and computers, electronics, and optical equipment (6.1%). Meanwhile, coal and petroleum products (-18.9%) and primary metal products (-8.4%) declined.
A Bank of Korea official explained, "The February export volume index rose due to the recovery in automobile demand in major countries, strengthening of non-face-to-face businesses related to COVID-19, and expanded demand for home economy-related products, which also increased semiconductor demand." The export value index for February (107.50) rose 10.4% year-on-year, driven by increases in chemical products (22.5%) and computers, electronics, and optical equipment (11.9%), supported by rising international oil prices and strong sales of high-end smartphones. This marks four consecutive months of growth.
The import volume index (113.23) and import value index (117.76) for February increased by 15.7% and 15.1% respectively compared to the same period last year, marking six and three consecutive months of growth. Computers, electronics, and optical equipment led the increase with import volume and value rising by 15.9% and 18.2%. A Bank of Korea official stated, "Increased demand for computers due to remote classes and telecommuting, recovery in demand from upstream industries such as automobiles, and the impact of eco-friendly regulations have increased demand for iron ore and liquefied natural gas (LNG), leading to higher import volumes of computers, electronics, optical equipment, and mining products."
The export-import value index is a measure calculated by dividing the export-import value at the given time (in dollars) by the export-import value at the base period (2015). The export-import volume index is derived by dividing this export-import value index by the export-import price index. However, imports such as ships, weapons, aircraft, and artworks are excluded due to difficulties in price surveys, making it impossible to calculate their import price indices.
The net barter terms of trade index, which indicates South Korea's trade conditions, rose 6.4% to 94.61 last month. This index represents the quantity of imports that can be purchased with the proceeds from exporting one unit. The upward trend continued as export prices rose by 5.9% while import prices fell by 0.5%.
The income terms of trade index, which shows the quantity of goods that can be imported with total export value, increased 10.9% to 103.37. This marks the ninth consecutive month of growth, influenced by rises in the export volume index (4.2%) and the net barter terms of trade index (6.4%).
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