Скачать или смотреть Rising FX rate in S. Korea adds inflationary pressure to imported food prices

지난 몇 년간 지속돼 온 고환율에 수입물가 부담 현실화

The costly ramifications of a weaker South Korean currency are becoming tangible for ordinary consumers here of products like beef and coffee.
Our economics correspondent Park Jun-han explains.

The effects of the weakening Korean won are beginning to show in the costs of imports, as while year-on-year import prices fell by more than 2 percent on a contractual currency basis, they rose by over 2 percent when calculated in Korean won.

According to the Bank of Korea Economic Statistics System on Sunday, the import price index for November shows that, with 2020 set as 100, import prices on a contractual currency basis rose by just over 18 percent as of November 2025.
However, when those same price changes are converted into Korean won, the increase jumps to nearly 42 percent.
This widening gap highlights how exchange rate movements add pressure to Korea’s import costs.

When looking at the won–dollar exchange rate, the amount of won needed to buy one U.S. dollar now stands at around 1-thousand-4-hundred-80 won.
That marks an increase of 7-point-63 percent over the past six months, and a rise of 34-point-3 percent over the past five years.

South Korea imports nearly 100 percent of key staples, such as coffee, corn, wheat and soybeans, making it vulnerable to currency fluctuations.

Notably, the import price index for coffee stood at 379-point-71 in won terms last month, compared with 3-hundred-7-point-12 in dollar terms, underscoring how the weak won amplifies costs.
Over the past five years, dollar-based coffee prices have tripled due to climate-driven supply shortages, but in won terms, they have nearly quadrupled, rising nearly 280 percent since 2020.
Beef has also risen by over 60 percent in the same period, compared to an increase of around 30 percent on a contractual currency basis.

“Even when buying the same amount, imports inevitably cost more when the exchange rate rises, pushing up import prices and ultimately fueling inflation. Compared with other G7 countries, South Korea is more sensitive to exchange rate swings and raw material price increases due to its heavy reliance on imports.”

Meanwhile, the Bank of Korea's analysis shows that if the won-dollar rate persists around the 1-thousand-4-hundred-70 won level, inflation could exceed its 2-point-1 percent forecast and rise to the mid 2 percent range.

Park Jun-han, Arirang News.

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2025-12-22, 17:00 (KST)