Export Value Index Declines for One Year Due to Weak Semiconductor Prices

September Export Value Index Down 4.8% Year-on-Year
Terms of Trade Improve for 4th Consecutive Month... Import Prices Fall More Than Export Prices

Due to the continued weakness in semiconductor export prices, South Korea's export value index declined for the 12th consecutive month compared to the same month last year.

However, import prices fell more sharply than export prices, leading to an improvement in terms of trade for the fourth consecutive month.

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 value index for September was 131.45 (2015=100), down 4.8% from a year earlier.

Yoo Seong-wook, head of the Price Statistics Team at the Bank of Korea's Economic Statistics Bureau, explained, "The export value index declined due to decreases in computers, electronic and optical equipment (-13.7%) and chemical products (-4.3%), despite increases in transport equipment (5.5%) and electrical equipment (8.8%)." Among these, the export value index for semiconductors was 210.15, showing a 13.8% decrease compared to the same month last year.

The export volume index for September rose 1% compared to a year earlier, marking a turnaround to an increase. Although coal and petroleum products (-7.6%) decreased, computers, electronic and optical equipment (4%) and chemical products (5.7%) increased, contributing to the rise.

The import value index for September fell 16.7% compared to the same month last year, marking a decline for seven consecutive months since March (-6.6%). This was due to increases in coal and petroleum products (15.8%) and electrical equipment (2.8%), but decreases in mineral products (-33.8%) and computers, electronic and optical equipment (-18.8%).

The import volume index also declined 7.6% compared to a year earlier, falling for three consecutive months. While coal and petroleum products (32.3%) and chemical products (9.6%) increased, mineral products (-21%) and computers, electronic and optical equipment (-14.9%) decreased.

The net barter terms of trade index, which represents the quantity of goods that can be imported per unit of exports, rose 4.5% compared to the same month last year. Import prices (-9.9%) fell more sharply than export prices (-5.8%), resulting in a four-month consecutive increase. This index has been rising for four months since turning upward in June after 27 months.

The income terms of trade index, which indicates the total quantity of goods that can be imported with South Korea's total export value, also rose 5.6% compared to a year earlier, marking a four-month consecutive increase.

Yoo explained, "The income terms of trade index rose due to increases in both the export volume index (1%) and the net barter terms of trade index (4.5%)."