Trade in June ‘Deterioration in terms of trade for 26 consecutive months due to export decline for 6 consecutive months’
In the June trade performance, the Korean media focused on turning to a trade surplus, while foreign media reported “export decline for six consecutive months,” and the Bank of Korea announced “26 consecutive months of deterioration in terms of trade” until May.
As for the deterioration of the trade balance according to the Bank of Korea figures, the decline in export prices (-14.4%) fell more than the decline in import prices (-11.9%), and this deterioration continued for 26 months in a row.
In the calculation of the export and import price index (at the time of contract) and the index of import and export price (at the time of customs clearance) as of May by the Bank of Korea, the decline in export prices (-14.4%) fell more than the decline in import prices (-11.9%), and this deterioration has continued for 26 months. .
On the afternoon of the 1st, Reuters updated the title of “South Korea’s 6th consecutive month of export decline” to “Slowdown in Korea’s export stagnation, turn to trade surplus”
Reuters said, "Korea's exports in June fell more than expected, continuing the slump for six months in a row, and the trade balance turned to a surplus for the first time since early last year."
Chosun Biz reported, “Korea’s trade balance has successfully turned to surplus in 16 months.”
Exports in June decreased by 6% compared to the same period last year, and average daily exports of working days decreased by 10.1%.
As for the decline in imports, imports of energy (-27.3%) such as crude oil (-28.6%), gas (-0.3%), and coal (-45.5%) declined by 11.7%, leaving the country in the black despite a 6% decrease in exports.
In semiconductors (-28.0%), petroleum products (-40.9%), and petrochemicals (-22.0%), which led the decline in exports, the declining export unit price dragged down the Korean economy as the terms of trade deteriorated.
The Bank of Korea announced on the 28th of last month that the net commodity terms of trade index of 83.29 as of May fell 2.8% from the previous year on the deterioration of the terms of trade, “export prices fell more than import prices.”
In May, the export value index led by semiconductors, computers, electronics, optical equipment, coal and petroleum products, fell 14.5% year-on-year, and fell for 8 consecutive months.
In the Bank of Korea’s export/import price index (at the time of contract) and export/import price index (at the time of customs clearance), the decline in export prices (-14.4%) fell more than the decline in import prices (-11.9%), and this deterioration continued for 26 months in a row.
In May, the semiconductor export volume index rose 8.1% year-on-year, but the export value index fell 35.7%.