FX.co ★ South Korea Import Prices Fall for Fifth Month

In June 2025, South Korea experienced a 6.2% year-on-year decline in import prices, worsening from the 5.1% drop observed in May. This trend is largely attributed to the decrease in global oil prices and the strengthening of the Korean won, both of which are contributing to reduced costs. There was a notable 13.2% plummet in raw material prices, slightly improving from the 13.9% fall seen in the previous month. Similarly, intermediate goods experienced a greater decline of 4.9%, compared to the 2.7% decrease reported for May. Meanwhile, the growth in prices for consumer goods decelerated to 0.9% from the earlier 2.5%, and capital goods saw a moderation in growth to 1.2% from 2.5%. On a monthly scale, import prices dropped by 0.6% in June, continuing a five-month streak of declines following a 3.7% decrease in May. This ongoing reduction highlights global trends, especially within energy markets, and points to the sustained deflationary pressures affecting import costs.