The won-denominated import price index fell 4.4 percent from May, reversing a 0.2 percent increase a month earlier, according to preliminary export-import price data released by the central bank. It was the sharpest monthly decline since December 2022, when import prices fell 6.5 percent.
The reversal followed a volatile second quarter. Import prices surged 18.0 percent in March after the U.S.-Iran conflict pushed crude prices sharply higher, before falling 2.1 percent in April and edging up 0.2 percent in May.
The Bank of Korea said the June decline reflected lower prices for mining products, coal and petroleum products as international crude prices retreated.
Dubai crude, the benchmark used in Korea's import price calculations, averaged $79.45 a barrel in June, down sharply from $103.15 in May.
The monthly decline would have been even steeper without the weaker won.
Import prices measured in contract currencies fell 6.4 percent from May, compared with a 4.4 percent decline in won terms, as the average won-dollar exchange rate weakened to 1,527.30 in June from 1,490.11 a month earlier.
Compared with a year earlier, import prices were still up 20.6 percent, although the pace slowed from 25.4 percent in May.
Raw material prices fell 10.3 percent from May, led by an 11.3 percent decline in mining products.
Intermediate goods prices dropped 3.2 percent as coal and petroleum products and chemical products became cheaper.
Capital goods and consumer goods each rose 1.6 percent, reflecting the weaker won and firmer non-energy import prices.
Energy-related prices nevertheless remained well above year-earlier levels. Import prices for mining products rose 25.2 percent from a year earlier, while coal and petroleum products increased 38.9 percent.
Export prices, meanwhile, were unchanged from May as higher semiconductor prices offset weaker petroleum products.
The flat monthly reading was the weakest since June 2025, when export prices fell 1.2 percent. On an annual basis, however, export prices surged 48.9 percent, the fastest increase since March 1998.
Contract-currency export prices fell 2.2 percent from May, indicating that the weaker won helped prevent the headline export price index from declining.
The contrast between energy and technology became more pronounced during the month.
Export prices for coal and petroleum products fell 13.9 percent from May, led by declines in diesel and jet fuel.
By contrast, prices for computer, electronic and optical products rose 4.5 percent from the previous month and jumped 117.4 percent from a year earlier.
Memory chips continued to drive the gains.
DRAM export prices rose 3.1 percent from May and soared 277.9 percent from a year earlier, while flash memory prices gained 11.7 percent during the month and climbed 268.1 percent on the year.
The strength extended beyond prices into export volumes.
Export volumes increased 29.8 percent from a year earlier in June, marking the eighth consecutive month of growth and the fastest expansion since January 2010.
The Bank of Korea attributed much of the increase to continued global investment in artificial intelligence infrastructure, which boosted shipments of computer, electronic and optical products. Export volume growth in the sector accelerated to 40.0 percent from 25.9 percent in May.
Outside the semiconductor sector, export performance remained mixed.
Chemical product export volumes slipped 0.7 percent from a year earlier, while transport equipment and electrical equipment posted single-digit growth. Primary metals and machinery performed better, with export volumes rising 20.5 percent and 11.5 percent, respectively.
Export value climbed 74.8 percent from a year earlier, accelerating from a 57.0 percent increase in May.
Import volumes rose 12.0 percent, supported by computer, electronic and optical products as well as machinery and equipment, while import value increased 30.5 percent.
Korea's net barter terms of trade improved for a 36th consecutive month, rising 15.6 percent from a year earlier in June, although the pace slowed from 18.6 percent in May as import prices continued to reflect earlier spikes in oil costs.
The income terms of trade index climbed 50.0 percent on stronger export volumes.
Looking ahead, easing oil prices could provide further relief after the June 18 U.S.-Iran framework agreement helped calm energy markets. However, uncertainty surrounding shipping through the Strait of Hormuz and continued volatility in global crude prices remain key risks.
Lower oil prices are easing pressure on import costs, but the weaker won is limiting the benefit. At the same time, Korea's external sector remains increasingly dependent on semiconductors, with AI-driven demand continuing to offset softer momentum across much of the rest of manufacturing.
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