FX.co ★ S Korea’s Export Prices Decline as Tariff Pressures Mount

In May 2025, South Korea experienced a 2.4% year-on-year decline in export prices, contrasting with a 0.4% increase noted in the preceding month and ending a period of 16 consecutive months of annual growth. This downturn was primarily due to a decrease in the prices of manufactured goods, which dropped by 2.4% following a 0.4% rise in April. Meanwhile, the price growth of agricultural, forestry, and marine products decelerated to 6.9% from the previous 9.4%. On a month-over-month basis, export prices decreased by 3.4%, succeeding a 1.5% reduction in April, largely attributable to the appreciation of the Korean won. This slowdown coincides with escalating external pressures, notably the recent announcement of U.S. tariffs reaching up to 49% by President Trump, which add to an existing 10% general duty. Although the enforcement of these tariffs has been postponed by 90 days, concerns are intensifying about their potential impact on South Korea's export-driven economy. Concurrently, political instability is rising as the nation approaches a snap presidential election on June 3, prompted by the dismissal of President Yoon Suk Yeol following his brief imposition of martial law.