Export Volume Index Rises for 10 Consecutive Months, Terms of Trade Down 3.7% YoY

Announcement of 'June 2021 Trade Index and Terms of Trade' on the 28th

[Asia Economy Reporter Jang Sehee] Due to strong exports of automotive semiconductors and other products, South Korea's export volume index has risen for 10 consecutive months. However, the terms of trade deteriorated as the prices of imported goods increased more than those of exported goods.

According to the "Trade Index and Terms of Trade for June 2021" released by the Bank of Korea on the 28th, the export volume index for June this year was 121.15, up 15.7% compared to the same month last year, marking the 10th consecutive month of increase. This was due to increases in transport equipment (68.7%), computers, electronics, and optical devices (16.1%), among others.

A Bank of Korea official stated, "The export volume index has risen for 10 consecutive months as exports of automobiles and semiconductors increased."

The dollar-based export value index (130.55) also rose 40.6% year-on-year, driven by increases in chemical products (45.7%), computers, electronics, and optical devices (29.4%), among others.

The import volume index for June (121.96) rose 11.0% year-on-year, despite a decrease in textiles and leather products (-0.6%), due to an increase in computers, electronics, and optical devices (12.6%). This marks the 10th consecutive month of increase.

The dollar-based import value index (138.84) increased 40.1% year-on-year, driven by rises in mining products (97.6%) and primary metal products (86.5%), among others.

Meanwhile, the net goods terms of trade index for May fell 3.7% year-on-year as import prices (26.2%) rose more than export prices (21.5%). The income terms of trade index rose 11.4% year-on-year, as the export volume index (15.7%) increased despite the decline in the net goods terms of trade index (-3.7%).