S Korea’s Export Prices Decline as Tariff Pressures Mount

South Korea's export prices dropped 2.4% year-on-year in May 2025, reversing from a 0.4% increase the previous month and ending a 16-month streak of annual growth.

The decline was driven by a downturn in manufactured goods prices, which fell 2.4% after rising 0.4% in April, while growth in agricultural, forestry, and marine product prices slowed to 6.9% from 9.4%.

On a monthly basis, export prices fell 3.4%, following a 1.5% drop in April, largely due to the Korean won’s appreciation.

The slowdown comes amid growing external pressure, including newly announced US tariffs of up to 49% by President Trump, adding to an existing 10% blanket duty.

Although implementation has been delayed by 90 days, fears are mounting over the impact on the country’s export-dependent economy.

At the same time, political instability is escalating ahead of the June 3 snap presidential election, triggered by the ouster of President Yoon Suk Yeol after his brief declaration of martial law.