Export prices fall 3.7 percent in August as terms of trade rise
South Korea's export price index fell 3.7 percent in August 2026 on a Korean won basis, while import prices decreased 2.4 percent. Bank of Korea preliminary data shows export prices and import prices rose 42.4 percent and 15.6 percent year-on-year.
Monthly drop contrasts with annual strength
Export prices on a Korean won basis fell 3.7 percent month-on-month in August 2026 to 183.23, but remained 42.4 percent higher year-on-year.
Manufacturing exports drove the monthly decline with a 3.7 percent drop, including decreases in wood and paper products (-6.8 percent), fabricated metals (-5.8 percent), and transport equipment (-5.4 percent).
Computers, electronic and optical equipment dropped 3.1 percent over the month while maintaining a 113.2 percent annual expansion.
On a contract currency basis, export prices rose 2.2 percent from July.
Import prices on a won basis declined 2.4 percent month-on-month to 156.31, but increased 15.6 percent year-on-year, with raw materials up 26.6 percent.
Tech shipments lift export volumes and purchasing power
Trade indexes reflected broad trade activity in August 2026.
The export volume index rose 25.9 percent year-on-year to 153.48, driven by a 30.5 percent expansion in computers, electronic and optical products.
Export value increased 75.8 percent to 237.04. Import volume grew 12.0 percent to 126.61, while import value increased 23.1 percent.
South Korea's net barter terms of trade index rose 27.1 percent year-on-year and 1.5 percent month-on-month to 119.90, lifting the income terms of trade index by 60.0 percent to 184.02.
Brittle foundations beneath strong terms
The divergence between contract and won-based prices highlights how exchange rate movements distort monthly readings.
Outsized annual gains in electronics mask underlying volume declines in transport and consumer goods.
Favorable terms of trade support national purchasing power, but extreme tech concentration leaves trade balances vulnerable.