Although Korea’s export value index reached an all-time high last month, the terms of trade fell to the lowest level in more than eight years as the price of raw materials such as international oil and natural gas continued to rise.
According to the Bank of Korea on the 29th, the export amount index for last month recorded 140.66, up 27.1% from the same month of the previous year, thanks to strong exports of industrial products such as semiconductors and chemical products. This is the highest level ever.
However, the terms of trade deteriorated as international oil prices, raw materials and LNG prices rose in all directions. In particular, the net commodity terms of trade index fell 10.1% from the same month of the previous year to 88.27, the lowest level in eight years and eight months.
This is because the import value index rose by more than 42%, reaching an all-time high, higher than the export value index.
As for the outlook for December, the BOK predicted that the terms of trade could improve given that the rise in international oil prices and raw material prices is slowing.
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