International oil prices have dropped significantly, leading to a decline in import prices for the second consecutive month last month. On the other hand, export prices rose due to price increases in electronic products such as semiconductors and metals, as well as the effects of exchange rates.
According to the export and import price index statistics released by the Bank of Korea on the 16th, the import price index for March (preliminary figure based on Korean won, with 2020 as the base year set to 100) was 143.04, down 0.4% from February (143.60). Compared to the previous month, this marks a decline for two consecutive months. Compared to a year ago, it increased by 3.4%.
Import prices fell significantly for materials and supplies (-3.3%), while prices for intermediate goods (0.7%), capital goods (1.6%), and consumer goods (0.9%) rose. Although prices for intermediate goods such as primary metal products (2.3%) and computers, electronic and optical devices (1.5%) increased, the decline in mining products (-3.3%) led the drop in import prices.
Lee Moon-hee, Head of Team at the Bank of Korea, noted that "In March, the decline in import prices continued, centered on mining products, due to the drop in international oil prices, but some items rose due to the increase in exchange rates." He explained that "Excluding the effects of exchange rates, the import prices based on contract currency fell by 1.4% compared to the previous month and 4.9% compared to the same month last year."
According to the Bank of Korea, Dubai crude oil prices fell from $77.92 per BARREL in February to $72.49 in March. This represents a 7.0% decrease from the previous month and a 13.9% decrease compared to the same month last year. During the same period, the Korean won to U.S. dollar exchange rate rose from 1445.56 won to 1456.95 won, an increase of 0.8%.
In response to a question about the impact of the tariff policies of the Trump administration, the Head of Team stated, "In March, there was no clear direct effect of the tariffs," but noted that "Tariffs can have both upward and downward factors, making it difficult to interpret in only one direction, and in the near term, it is necessary to watch related policies and negotiation processes more closely."
The export price index for March (based on the Korean won) was recorded at 135.00, a 0.3% increase from the previous month (134.56). Compared to the same month last year, it rose by 6.3%. By item, prices increased mainly for computers, electronic and optical devices (1.2%), primary metal products (2.0%), and agricultural, forestry, and fishery products (1.6%).