Aju Press - Asia News Hub

Journalist

Kim Yeon-jae김연재

ReporterBank of Korea & Market, Macroeconomics

Kim Yeon-jae is a journalist at AJU Press (AJP's English platform),
covering macroeconomics, international finance, and geopolitics.
He closely tracks central bank monetary policies, global energy supply chains,
and the Korean defense industry. "Peering into the risks behind the euphoria."

Latest by Kim Yeon-jae

Korea's producer inflation cools as chip prices retreat SEOUL, Oct. 21 (AJP) — South Korea’s producer inflation plateaued in September as weaker chip prices and a stronger won offset holiday food demand and higher utility charges. The producer price index rose 0.2 percent from August to 129.78, according to the Bank of Korea (BOK), while the annual increase slowed to 7.7 percent from 7.9 percent. August’s monthly gain was revised down to 0.1 percent from the preliminary 0.2 percent. Underlying price momentum softened. The index excluding food and energy was unchanged on month, while its annual increase slowed to 7.7 percent from 8.1 percent in August. The breakdown marked a shift from August, when energy and semiconductor prices helped drive producer inflation higher. Chip prices retreated in September, although energy costs continued to rise. Computer, electronic and optical equipment prices fell 1.7 percent from August, with semiconductor prices down 1.3 percent. Computer memory device prices dropped 11.8 percent, although DRAM prices remained 418.1 percent higher than a year earlier. The BOK said the stronger won helped lower producer prices for DRAM, flash memory and OLED panels, which are commonly priced in dollars even in domestic transactions. Food and utility costs nevertheless kept the headline index rising. Agricultural, forestry and fishery prices climbed 2.6 percent from August. Agricultural products rose 3.7 percent and livestock prices increased 2.7 percent amid holiday demand. Cabbage prices jumped 42.9 percent and beef prices rose 10.4 percent. Electricity, gas, water and waste prices increased 1.3 percent, led by a 13.4 percent rise in residential electricity prices after a summer discount under the progressive tariff system expired. Services prices edged down 0.1 percent as hotel and other tourism accommodation prices declined. The stronger currency also helped contain costs across the domestic supply chain. The domestic supply price index was unchanged from August after falling 1.3 percent the previous month. Raw-material prices rose 3.2 percent, but intermediate and final goods prices each declined 0.3 percent. Imported intermediate-goods prices fell 2.4 percent, while imported final-goods prices dropped 2.6 percent. The BOK said the figures reflected both lags in the pass-through of earlier oil-price movements and a 3.4 percent decline in the dollar-won exchange rate during September. The total output price index, which includes exports as well as domestic shipments, fell 0.1 percent for its third consecutive monthly decline. Export prices within the index dropped 0.9 percent, while industrial-product prices fell 0.4 percent. Upstream cost pressures, however, remained elevated. Coal and petroleum product prices rose 0.9 percent from August and 53.6 percent from a year earlier. Chemical product prices increased 1.0 percent on month and 17.5 percent on year. The broader energy index rose 1.3 percent and 11.4 percent, respectively. The BOK said declining international oil prices through mid-October could weigh on producer prices this month, while higher industrial city gas tariffs and fuel surcharges for air cargo and passenger flights could push in the opposite direction. Elevated intermediate-goods prices and accumulated production costs could eventually feed through to consumer inflation, it added. The mixed price picture comes a day before the BOK’s Monetary Policy Board meets Thursday, with the central bank widely expected to hold its base rate at 3.00 percent after back-to-back quarter-point increases in July and August. An AJP poll of seven economists published Monday found broad expectations for a pause this week, but most respondents anticipated further tightening. Five of the six who specified the next move expected another quarter-point increase in November. Four of the six who provided a forecast for the peak rate saw the tightening cycle topping out at 3.50 percent. 2026-10-21 08:06:32
Homebuyers in Seoul use cash for purchases SEOUL, October 20 (AJP) - More people relied on their own money to purchase apartments in Seoul this year as stricter loan rules made borrowing harder, accounting for nearly 70 percent of all buyers, government data showed on Tuesday. They spent 8 percent more of their own money or 54.18 trillion won (US$40.8 billion). Buyers relying on their own funds accounted for 66.8 percent of all apartment buyers, up from 58.4 percent a year earlier. The increase came even as the total amount spent on apartment purchases in Seoul fell 5.6 percent to 81.07 trillion won. The figures were based on data on Seoul apartment purchases from October 2025 to September 2026 submitted by the Ministry of Land, Infrastructure and Transport to lawmaker Yoon Jong-oh of the left-wing Progressive Party. Most buyers used savings, family gifts and other assets to pay for their apartments. Money from selling stocks, bonds and cryptocurrency more than doubled to 6.24 trillion won from 2.75 trillion won, up 126.6 percent. Money from gifts and inheritances rose 56.4 percent to 5.24 trillion won from 3.35 trillion won, while the total funds from these sources used for apartment purchases rose to 11.48 trillion won from 6.11 trillion won a year earlier. Loans, meanwhile, fell 6.8 percent to 19.08 trillion won from 20.48 trillion won a year earlier. Their purchases were concentrated in Seoul's three affluent districts of Gangnam, Seocho and Songpa, south of the Han River. Money from financial asset sales in these districts rose 131.6 percent to 2.90 trillion won from 1.25 trillion won a year earlier, accounting for 46.5 percent of the total. Their purchases largely took place after the government introduced tighter mortgage rules on Oct. 15 last year, designating all of Seoul and 12 areas in Gyeonggi Province as speculative real-estate zones and imposing stricter loan limits on higher-priced homes. Under the rules, the maximum loan is 600 million won for homes worth up to 1.5 billion won, 400 million won for homes worth 1.5 billion to 2.5 billion won, and 200 million won for homes worth more than 2.5 billion won. 2026-10-20 17:24:04
Equity falls, but won hits two-year high and bonds stronger SEOUL, October 20 (AJP) — South Korea's won closed at its strongest level in more than two years Tuesday as exporter dollar selling outweighed equity outflows, while government bond yields fell on foreign futures buying and a sharp stock selloff. The won closed up 2.2 won at 1,328.1 per dollar, its strongest closing level since Oct. 2, 2024, when it finished at 1,319.3 won. It was also the first close in the 1,320-won range since Sept. 26, 2024, when the currency ended at 1,327.2 won. The won opened at 1,330.3 and strengthened as far as 1,325.4 during morning trading. The currency strengthened despite a sharp decline in local stocks and continued foreign selling. The benchmark KOSPI fell 3.73 percent to 5,552.74, while foreign investors sold a net 530 billion won ($399 million) of shares. Persistent dollar selling by exporters outweighed dollar demand linked to foreign stock sales and import settlements, keeping the won on an upward course even as risk sentiment deteriorated in the equity market. Government bonds also strengthened after reversing losses earlier in the session. The three-year government bond yield fell 3.7 basis points to 3.840 percent, while the benchmark 10-year yield dropped 2.9 basis points to 4.176 percent. Korean bonds opened weaker after U.S. Treasury yields rose overnight, with two- and 10-year yields both climbing about 6.6 basis points as weakness in European government bonds spilled over into the U.S. market. The market reversed course later in the session as foreign investors increased purchases of three- and 10-year government bond futures. The sharp decline in Korean equities also supported demand for bonds, while U.S. Treasury yields edged lower during Asian trading. The moves came two days before the Bank of Korea's monetary policy meeting on Thursday. The central bank raised its Base Rate by 25 basis points to 3.00 percent in August and has said it will determine the timing and pace of any further increases based on inflation, economic growth and financial stability conditions. An AJP poll of seven economists published Monday found broad expectations for the BOK to keep the rate unchanged this week. Of six respondents who specified the timing of the next move, five expected another quarter-point increase in November, while four of six who gave a terminal-rate forecast saw the tightening cycle peaking at 3.50 percent. 2026-10-20 17:13:25
BOK, BoE discuss tokenization cooperation SEOUL, October 20 (AJP) — The Bank of Korea (BOK) and the Bank of England (BoE) discussed closer cooperation on tokenized finance after comparing domestic and cross-border digital-money projects, the BOK said Tuesday. Sarah Breeden, the BoE's deputy governor for financial stability, visited the BOK on Monday and exchanged views with officials on payment innovation and other issues. Officials from the two central banks reviewed progress on South Korea's Project Hangang, Project Agorá — in which both institutions participate — and broader asset-tokenization initiatives while exploring areas for further cooperation. Tokenization refers to representing money or financial assets such as deposits, bonds and securities as digital tokens, allowing transactions and settlement to be carried out on programmable digital infrastructure. Project Hangang is the BOK's domestic experiment combining tokenized commercial bank deposits with a wholesale central bank digital currency on a unified ledger. The project is designed to test how programmable payments can operate while retaining central bank money as the foundation for settlement between financial institutions. Project Agorá, meanwhile, focuses on wholesale cross-border payments. Led by the Bank for International Settlements and the Institute of International Finance, it brings together the BOK, the BoE and other central banks alongside more than 40 private financial institutions. A prototype unveiled in May showed that tokenized commercial bank deposits and central bank reserves could be combined to settle transactions across currencies and jurisdictions on an atomic, or all-or-nothing, basis. The talks come as the BoE is also examining how conventional and tokenized bank deposits, regulated stablecoins and potentially a digital pound could coexist within the financial system, while maintaining a central role for central bank money in settlement. The BOK's statement did not announce a new joint project or provide a timetable for further cooperation. The BOK said it plans to continue sharing experience from Project Hangang and other tokenization projects with the international community and participate actively in global discussions on digital finance. 2026-10-20 12:34:23
Korea's growth could reach 3.6% this year: finance chief SEOUL, October 19 (AJP) — South Korea's economy could grow around 3.5 percent, beating earlier government estimate of around 3 percent and helping to bolster growth potential, said finance minister Lee Hyung-il. "I would say 3.4, 3.5, or 3.6 percent," he told reporters on the sidelines of the meetings of Group of 20 and Group of Seven finance ministers and central bank governors and annual conferences of IMF and World Bank in Bangkok on Oct. 16. The Organization for Economic Co-operation and Development recently upgraded Korea's growth estimate to 3.7 percent. He said exports and facility investment staying strong into the third quarter could extend to next year as chip supply remains below demand. The economy expanded 1.8 percent from the previous quarter in the first quarter and another 0.6 percent in the second. Second-quarter gross domestic product was 3.7 percent higher than a year earlier. The BOK in August raised its 2026 growth forecast to 3.3 percent, pointing to strong semiconductor exports and investment, while warning that the outlook remained sensitive to the chip cycle and geopolitical developments. The OECD was more bullish in its September outlook, projecting 3.7 percent growth this year before a slowdown to 2.6 percent in 2027. Lee also said the government is considering overhauling the way it publishes economic forecasts as rapidly changing conditions make twice-yearly projections less useful. Under the plan, the government would issue a baseline outlook around year-end and update it twice during the following year, rather than publishing one annual outlook followed by a single midyear revision. The change could also reduce the need for the broad second-half economic policy package traditionally released around June or July, with more targeted measures introduced alongside forecast revisions when necessary. Lee also said Korea may be nearing a turning point in the long decline in its potential growth rate, pointing to strong capital spending and continued investment to meet semiconductor demand. He did not provide a specific estimate for potential growth, but said sustained investment could eventually raise productivity as new production capacity comes on stream. The next major test will come on Oct. 27, when the BOK is scheduled to release its advance estimate of third-quarter gross domestic product. A strong reading would add support to Lee's view that annual growth could reach the mid-3 percent range. 2026-10-19 13:32:30
AJP Poll: BOK likely to hold this week, with rate peak seen at 3.50% SEOUL, October 19 (AJP) — The Bank of Korea (BOK) will likely wait to assess the impact of back-to-back rate hikes at its first rate-setting meeting since the latest increase, even as hot U.S. inflation data bolstered the odds of another Federal Reserve hike on Oct. 27–28, an AJP poll of seven economists found. Governor Shin Hyun-song too projected policymakers will likely stay pat at Thursday's meeting, and economists agreed as a third consecutive increase would be excessive with domestic inflation below 3 percent and bond yields more stable. During a parliamentary audit last week, Shin said the central bank’s preemptive moves had eased the pressure to respond to further U.S. Federal Reserve rate hikes, while keeping additional hike possibility open depending on the inflationary pressures. “The hold would not signal the end of monetary tightening, but rather a brief pause,” said Kim Ji-na, a fixed-income analyst at Eugene Investment & Securities. The BOK delivered a rare quarter-point increases in July and August that lifted the benchmark rate from 2.50 percent to 3.00 percent. With a pause already priced in, the bond market will scrutinize the BOK’s post-meeting statements for clues to how far and how long the tightening cycle will run. The three-year bond yield fell 0.9 basis point to 3.845 percent, while the 10-year yield dropped 1.7 basis points to 4.165 percent at the end of Monday’s morning session. Both remained well below their recent peaks of 4.126 percent and 4.605 percent, respectively. Of six respondents who specified when they expect the next move, five forecast another quarter-point increase in November, while one sees either November or January as the likely window. Among six who provided a view on the peak rate, four expect 3.50 percent, one forecasts 3.75 percent and another says 3.75 percent remains possible if semiconductor-led growth stays strong. The survey points to broader agreement on the direction of policy than on the pace of tightening. Respondents generally view an October hold as a chance to assess the lagged effects of the two earlier increases, rather than a signal that the cycle is over. Strong growth and above-target inflation support further increases, while higher borrowing costs for households and companies give policymakers reason to avoid raising rates at every meeting. Hot U.S. inflation data have also complicated the backdrop ahead of the Federal Reserve’s Oct. 27–28 meeting. The BOK cited stronger-than-expected growth, persistent inflation and financial stability risks when it raised rates in August. Its outlook that month projected economic growth of 3.3 percent this year and 2.9 percent next year, supported by strong semiconductor exports and investment. It forecast consumer inflation at 2.7 percent and core inflation at 2.5 percent this year. The central bank’s six-month conditional rate outlook also pointed to further tightening, although at a relatively gradual pace. Of 21 dots published in August, five were at 3.00 percent, 10 at 3.25 percent and six at 3.50 percent, leaving the median at 3.25 percent. Shin said at the time that the median implied roughly one additional increase over the following four meetings. Some economists see a steeper path. JPMorgan economist Park Seok-gil expects three more quarter-point hikes — in November and once each in the first and second quarters of next year — taking the benchmark rate to 3.75 percent. Kiwoom Securities analyst Ahn Ye-ha also sees room for a higher peak if the current expansion proves durable. “If semiconductor-led growth continues, the possibility of raising the rate to 3.75 percent should remain open,” Ahn said. Thursday’s vote split could offer a more immediate signal. Of four respondents who explicitly forecast the vote, two expect one Monetary Policy Board member to favor an immediate hike, while two expect a unanimous hold. Shinyoung Securities economist Cho Yong-gu expects one dissenting vote for an increase, while NH Investment & Securities analyst Kang Seung-won forecasts a unanimous hold. Both nevertheless expect tightening to resume in November and the rate eventually to reach 3.50 percent. The October meeting will not include a new six-month conditional rate projection, which the BOK releases alongside its quarterly economic outlook in February, May, August and November. That leaves the vote split, policy statement and Shin’s press conference as the main clues to whether policymakers are leaning toward the higher rate paths forecast by private economists. The next formal update comes Nov. 26, when the BOK holds its final scheduled rate-setting meeting of the year. For markets, the focus this week will be less on the expected pause than on how clearly the BOK signals that it is temporary. 2026-10-19 11:22:42
Korea, U.S. hold first finance ministry-central bank 2+2 talks SEOUL, October 16 (AJP) — South Korean and U.S. finance and monetary authorities held their first four-way meeting in Thailand on Friday, discussing recent economic conditions and ways to strengthen bilateral economic and financial cooperation. South Korean Finance Minister Lee Hyung-il met Bank of Korea Governor Shin Hyun-song, U.S. Federal Reserve Chair Kevin Warsh and U.S. Deputy Treasury Secretary Francis Brooke on the sidelines of the annual meetings of the International Monetary Fund and World Bank, according to the Ministry of Finance and Economy (MOFE). Erin Browne, the U.S. Treasury's undersecretary for international affairs, also attended the meeting. The four officials exchanged views on recent economic developments and discussed ways to enhance economic and financial cooperation between the two countries. Lee said the meeting was particularly significant as it marked the first time the finance ministries and central banks of South Korea and the United States had met together in such a format. The “2+2” format brought together the finance ministry and central bank from each country, allowing fiscal, financial and monetary authorities to exchange views in the same bilateral setting. Finance ministers and central bank governors routinely meet together at multilateral gatherings such as the Group of 20 finance ministers and central bank governors meetings, but Seoul said Friday's talks were the first bilateral Korea-U.S. meeting combining the two sets of authorities in this format. The meeting did not constitute a joint policy-setting body. Monetary-policy decisions remain the responsibility of the two independent central banks, while finance ministries oversee fiscal policy and broader economic and financial cooperation. Warsh and Shin have also had previous professional contact dating back to discussions surrounding the global financial crisis and have maintained academic exchanges in later years, although Friday's meeting was the first formally announced Korea-U.S. 2+2 involving the two countries' finance and monetary authorities. Brooke, who became U.S. deputy treasury secretary earlier this year, is leading the Treasury Department's participation at the IMF-World Bank meetings alongside Browne after Treasury Secretary Scott Bessent opted not to attend the Bangkok gathering. The ministry did not disclose further details of the discussions or announce any specific agreements. 2026-10-16 17:25:31
Foreign investors pull $20 bln from Korean markets Sept SEOUL, October 16 (AJP) — Foreign investors pulled nearly $20 billion from South Korean stocks and bonds in September, more than quadrupling the previous month's outflow as withdrawals broadened across both markets. Net foreign portfolio outflows reached $19.97 billion, compared with $4.50 billion in August, according to data released Friday by the Bank of Korea (BOK). Equity funds swung back to a net outflow of $14.16 billion after a marginal $40 million inflow in August, while bond outflows widened to $5.81 billion from $4.53 billion. The BOK attributed the reversal in equity flows to rising global long-term rates and concerns over a slowdown in AI investment. For bonds, the central bank pointed to maturities of Korea Treasury Bonds and weak reinvestment as short-term arbitrage incentives remained negative. The three-month arbitrage incentive stood at minus 31 basis points on average in September, following minus 39 basis points in August and minus 26 basis points in July. Foreign portfolio investment has now recorded net outflows for eight consecutive months since February. Cumulative outflows through September reached $147.05 billion, driven almost entirely by $145.03 billion in equity outflows. The U.S. 10-year Treasury yield climbed to 5.28 percent at the end of September from 4.75 percent at the end of August before easing to 5.19 percent on Oct. 14. The won nevertheless strengthened despite the persistent portfolio outflows. The won closed at 1,352.8 per dollar at the end of September, up from 1,368.6 at the end of August, and strengthened further to 1,338.3 on Oct. 14. The BOK said the dollar-won rate initially rose as geopolitical uncertainty in the Middle East increased and expectations for further Federal Reserve tightening strengthened, before reversing as exporters stepped up dollar sales. Currency volatility also increased, with the average daily movement in the dollar-won rate widening to 7.0 won in September from 4.4 won in August and the average daily percentage change rising to 0.52 percent from 0.31 percent. Despite the sustained securities outflows, the BOK assessed overseas funding conditions for Korean banks as broadly favorable. The premium on short-term external borrowing edged up 1 basis point to 27 basis points in September, while the premium on medium- and long-term borrowing fell 5 basis points to 40 basis points. The five-year credit default swap premium on Korea's foreign exchange stabilization bonds remained unchanged at 22 basis points. 2026-10-16 15:12:56
UPDATE: Chip boom lifts Korea's factory jobs after 26-month slide SEOUL, October 16 (AJP) — The extraordinary chip boom fueling full-capacity production and expansion at South Korea’s chip factories has spilled over to the job front, lifting factory employment for the first time in more than two years, although opportunities for young people remained constrained. The number of employed people rose by 113,000 from a year earlier to 29.266 million in September, according to data released Friday by the Ministry of Data and Statistics (MODS). Manufacturing employment increased by 16,000, reversing a decline of 38,000 in August and snapping a 26-month losing streak. “Employment declined in automobiles and textile products, but increased in chemicals, fabricated metal products and other transportation equipment, turning overall manufacturing employment positive,” Bin Hyun-jun, director general of MODS’ Social Statistics Bureau, said at a briefing Friday. Separate employment-insurance data released by the Ministry of Employment and Labor this week also pointed to firmer labor demand in chip-related manufacturing. Manufacturing employment-insurance subscribers increased by 8,000 from a year earlier in September, marking a second consecutive month of gains, led by other transportation equipment, electronics and communications equipment and machinery. The labor ministry said employment growth in electronics and communications equipment accelerated mainly in semiconductor manufacturing as chip exports surged. Hiring in machinery also strengthened as increased semiconductor investment boosted demand for chip-making equipment. The two sets of figures are not directly comparable. MODS’ economically active population survey is based on households and covers a broader range of workers, while the labor ministry data tracks workers enrolled in employment insurance. Overall job growth slowed from an increase of 184,000 in August, although employment has now increased for four consecutive months. The employment rate for people aged 15 to 64, the comparison standard used by the Organization for Economic Cooperation and Development, rose 0.2 percentage point from a year earlier to 70.6 percent. The overall unemployment rate fell 0.1 percentage point to 2.0 percent. Employment gains remained concentrated in several service industries. Health and social welfare services added 207,000 jobs from a year earlier, while transportation and storage gained 54,000 and financial and insurance services added 32,000. By contrast, accommodation and food services lost 97,000 jobs, agriculture, forestry and fishing shed 94,000 and education services lost 53,000. Construction employment declined by 48,000. The sharp fall in accommodation and food-service employment partly reflected a high comparison base created by last year’s consumption-coupon program, according to MODS. Employment among people aged 15 to 29 fell by 147,000 from a year earlier, while their employment rate dropped 1.1 percentage points to 44.0 percent. The decline extended a prolonged deterioration in youth employment, with the number of employed people aged 15 to 29 falling for a 47th consecutive month. Their unemployment rate rose 0.6 percentage point from a year earlier to 5.4 percent. The age divide remained pronounced. Employment among people in their 20s fell by 170,000 and jobs among those in their 40s declined by 42,000. Employment among people aged 60 and older, meanwhile, increased by 172,000, while jobs among those in their 30s and 50s rose by 81,000 and 48,000, respectively. MODS also began publishing employment indicators for people aged 15 to 34 in September, reflecting the expanded definition of youth under the Youth Employment Promotion Special Act. Under the new measure, the youth employment rate stood at 56.1 percent, down 0.4 percentage point from a year earlier, while the unemployment rate rose 0.1 percentage point to 4.2 percent. The number of employed people aged 15 to 34 fell by 98,000 from a year earlier to 6.412 million, showing that weakness persisted even under the broader statutory definition of youth. The economically inactive population increased by 179,000 from a year earlier to 16.188 million. The number of people aged 15 to 29 classified as “resting,” meaning they were neither working nor actively seeking work for no specific reason, fell by 44,000 to 364,000. 2026-10-16 08:25:54
Oil surge lifts Korea's import prices despite stronger won SEOUL, October 16 (AJP) — South Korea's import prices rebounded in September on a double-digit surge in global oil prices despite a stronger won that weighed on export prices amid the strongest export volume growth in nearly 17 years. Won-denominated import prices rose 1.7 percent from August, marking their first monthly increase in four months, according to preliminary data released Friday by the Bank of Korea (BOK). Prices were 17.6 percent higher than a year earlier, accelerating from a 15.9 percent increase in August. The rebound came even as the average dollar-won exchange rate fell 3.4 percent to 1,359.00 won per dollar in September from 1,406.30 in August. Dubai crude, meanwhile, averaged $113.71 a barrel, up 28.1 percent from $88.75 in August and 62.4 percent from a year earlier. Import prices measured in contract currencies rose 4.9 percent from the previous month, compared with the 1.7 percent increase in won terms, showing that the stronger currency absorbed part of the increase in overseas costs. Raw-material import prices jumped 9.6 percent from August, led by a 10.8 percent increase in mining products. Crude oil import prices rose 21.6 percent over the month and 54.4 percent from a year earlier. Intermediate-goods prices fell 1.7 percent, while capital and consumer goods prices declined 2.4 percent and 2.3 percent, respectively. The BOK said oil-price movements have a substantial impact on import prices because mining products, including crude oil, carry a relatively large weight in the index. The central bank said pressure could ease as both the dollar-won exchange rate and international oil prices had fallen from September levels through mid-October. Heightened tensions in the Middle East, however, could renew upward pressure on import prices already posting double-digit annual gains. Export prices moved in the opposite direction. Won-denominated export prices fell 0.8 percent from August for a second consecutive monthly decline as the stronger currency pulled down prices across most categories despite gains in petroleum products. On a contract-currency basis, export prices rose 2.6 percent from the previous month. In won terms, they remained 40.9 percent higher than a year earlier, extending their annual increase to a 13th consecutive month. Semiconductors remained a major driver of the annual increase. DRAM export prices surged 239.5 percent from a year earlier, while flash-memory prices climbed 235.9 percent. Export volumes also strengthened sharply. The export volume index jumped 32.1 percent from a year earlier, extending its run of increases to 11 consecutive months. The gain was the largest since a 42.0 percent increase in January 2010. Computer, electronic and optical products, including semiconductors and memory devices, along with semiconductor-manufacturing equipment led the increase. The export value index surged 89.2 percent from a year earlier. Import volumes increased 11.1 percent, while the import value index rose 26.9 percent. Korea’s net barter terms of trade — the ratio of export prices to import prices — improved 25.4 percent from a year earlier. That was slower than August’s record 27.1 percent increase as rising oil prices accelerated import-cost growth. The income terms of trade index, which measures how much the country can import with its total export earnings, climbed a record 65.7 percent from a year earlier, surpassing August’s 59.9 percent increase. Stronger export volumes and improved net barter terms of trade together boosted Korea’s purchasing power. 2026-10-16 07:51:07