Export prices rise 1.0 percent as import prices fall 1.0 percent
The Bank of Korea reported that South Korea's export price index increased 1.0 percent month-on-month in July 2026, while the import price index fell 1.0 percent. Year-on-year, export prices rose 49.1 percent and import prices gained 18.7 percent.
Electronics drive export growth
Manufacturing products led the increase in export prices, rising 1.1 percent month-on-month and 49.1 percent year-on-year.
Computers, electronic and optical equipment posted a 4.8 percent monthly increase, pushing year-on-year growth to 122.3 percent.
Coal and petroleum export prices also advanced 4.8 percent over the month.
Conversely, chemical products fell 3.8 percent and basic metals dropped 3.9 percent.
On the import side, prices declined 1.0 percent month-on-month despite raw materials edging up 0.8 percent.
Intermediate goods imports dropped 2.2 percent, led by a 3.9 percent decrease in petroleum products and a 3.8 percent decline in basic metals.
Capital goods import prices dropped 1.8 percent.
Terms of trade expand sharply
Trade volume and value figures posted strong year-on-year gains in July 2026.
The export volume index grew 20.0 percent while export value surged 64.2 percent, boosted by manufacturing shipments.
Import volume and value expanded by 14.7 percent and 25.8 percent respectively.
Consequently, the net barter terms of trade index, which measures the quantity of imports reachable per unit of exports, rose 24.7 percent year-on-year and 6.9 percent month-on-month.
The income terms of trade jumped 49.7 percent.
A temporary cushion
The improved terms of trade provide a temporary boost to South Korea's external account.
Heavy reliance on the tech sector leaves export gains vulnerable to external demand shocks.
Falling intermediate import prices point to underlying weakness in domestic manufacturing.