Semiconductor Boom... Export Value Index Rises for 6 Consecutive Months

Both Export Volume Index and Export Amount Index on the Rise
Import Volume Index and Import Amount Index on the Decline

[Image source=Yonhap News]

With semiconductor exports showing strong performance, the export volume index and export value index continue their upward trend. Import prices are falling while export prices are rising, leading to an ongoing improvement in terms of trade.

According to the "March Trade Index and Terms of Trade (Provisional)" released by the Bank of Korea on the 30th, the export volume index in March rose by 0.1% compared to the same month last year. During the same period, the export value index also increased by 1.1%. These represent the seventh and sixth consecutive months of growth, respectively.

The improvement in export indices was driven by semiconductors. The export volume index for computers, electronics, and optical equipment including semiconductors rose 14.3% year-on-year. The export value index for the same category increased by 23.6%. Specifically, the semiconductor export volume index rose 17.4% year-on-year, and the export value index increased by 35.4%.

The import volume index fell 9.0% year-on-year, marking the ninth consecutive month of decline, while the import value index dropped 13.2%, continuing a 13-month downward trend. Although imports of computers, electronics, optical equipment, coal, and petroleum products increased, decreases in minerals and chemical products contributed to the overall decline.

The net barter terms of trade index for March rose for the tenth consecutive month, increasing 5.9% year-on-year as import prices fell by 4.6% and export prices rose by 1.0%.

The net barter terms of trade index represents the ratio of the price of one unit of exported goods to the price of one unit of imported goods, indicating the quantity of goods South Korea can import per unit of export.

The income terms of trade index also rose for the tenth consecutive month, increasing 6.1% year-on-year as both the export volume index (0.1%) and the net barter terms of trade index (5.9%) increased. The income terms of trade index quantifies the amount of goods that can be imported with total export revenue, serving as a complementary indicator that addresses the limitation of the net barter terms of trade index, which only considers price changes.