The Bank of Korea released its June 2026 import and export price indices on July 15, showing import prices fell 4.4% month-over-month on a won basis - the steepest decline in three and a half years since December 2022. Export prices remained flat at 0.0% month-over-month while rising 48.9% year-over-year. The sharp import price drop was driven by falling international oil prices, with Dubai crude averaging 79.45 USD per barrel in June compared to 103.15 USD in May. This marks a significant shift from May when import prices had risen 0.2% month-over-month.
Import Prices Record Largest Monthly Drop Since December 2022
June import prices on a won basis fell 4.4% compared to May and rose 20.6% year-over-year, according to the Bank of Korea's provisional data. The 4.4% monthly decline represents the largest drop since December 2022. By category, raw material prices fell 10.3% and intermediate goods declined 3.2%, while capital goods and consumer goods each rose 1.6%. Coal and petroleum products experienced a 19.0% price plunge, and mining products dropped 11.3%. On a contract currency basis, import prices fell 6.4% month-over-month and rose 9.5% year-over-year.
Export Prices Show Flat Monthly Growth Amid Semiconductor Slowdown
Export prices on a won basis remained unchanged at 0.0% month-over-month in June while climbing 48.9% year-over-year - the highest annual increase since March 1998, 28 years and 3 months prior. Agricultural, forestry and fishery products rose 4.2%, and computer, electronic and optical equipment increased 4.5%, while coal and petroleum products fell 13.9%. Computer, electronic and optical equipment, which includes DRAM (+3.1%) and flash memory (+11.7%), showed decelerating month-over-month growth rates of 16.9%→5.4%→4.5% across April through June, though year-over-year growth accelerated from 88.7%→103.9%→117.4%. Lee Moon-hee, head of the Bank of Korea's price statistics team, stated that semiconductor price increases narrowed compared to April because quarterly contracts were largely concluded in April, with contract price volatility decreasing toward June. On a contract currency basis, export prices fell 2.2% month-over-month and rose 34.1% year-over-year.
Trade Indices and Terms of Trade Rise Year-Over-Year
June import and export volume indices rose 12.0% and 29.8% respectively compared to the same month last year. Import and export value indices increased 30.5% and 74.8% year-over-year respectively. The net commodity terms of trade index rose 15.6% year-over-year as export prices increased more than import prices, though it fell 1.3% month-over-month. The net commodity terms of trade index measures the quantity of goods that can be imported with one unit of export proceeds, indexed against the base period (2020=100). The income terms of trade index, which measures the quantity of goods that can be imported with total export value indexed against 2020, rose 50.0% year-over-year.
FAQ
Q: What caused South Korea's import prices to fall 4.4% in June 2026?
A: The decline was driven by falling international oil prices, with Dubai crude averaging 79.45 USD per barrel in June compared to 103.15 USD in May.
Q: How did semiconductor prices perform in June 2026 according to the Bank of Korea?
A: DRAM prices rose 3.1% and flash memory increased 11.7%. Month-over-month growth rates decelerated to 4.5% in June from 16.9% in April, while year-over-year growth accelerated to 117.4% from 88.7% in April.
