Korea's export volume index and net terms of trade index have both shown positive growth for the first time in several months, according to data released by the Bank of Korea. The export volume index, which measures the volume of exports in US dollar terms, increased by 7.5 percent in June compared to the previous year. This marks a turnaround after three consecutive months of decline. Meanwhile, the net terms of trade index, which compares import and export prices, also rebounded by 0.2 percent compared to the previous year. The drop in import prices outweighed the drop in export prices, leading to this positive outcome.
One of the key drivers behind the increase in export volume was the semiconductor industry, with exports of semiconductors rising by 21.6 percent in June compared to the previous year. This is a significant improvement from the 8.1 percent growth seen in May. Additionally, the value of Korea's exports dropped by 28.0 percent in June, showing a slower decline compared to the previous month. The increase in export volume can also be attributed to higher exports of transportation equipment and chemicals.
With the positive growth in both the export volume index and net terms of trade index, Korea's income terms of trade index rose by 7.7 percent in June compared to the previous year. This indicates an improvement in the country's overall trade performance. The increase in export volume and the rebound in net terms of trade can be seen as positive signs for Korea's economy, suggesting a recovery in global demand for its products and a favorable trade environment.
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