South Korea's import prices surged 16.1 percent in March, the sharpest rise in over 28 years, driven by soaring global oil prices amid the Middle East conflict, Bank of Korea data showed. Dubai crude jumped 87.9 percent to $128.52 per barrel. The export price index also rose 16.3 percent.
The Bank of Korea (BOK) reported Wednesday that the import price index rose 16.1 percent on-month in March, accelerating from a 1.5 percent gain in February. This marked the steepest increase since January 1998, when prices jumped 17.8 percent, and the ninth consecutive monthly rise since July 2025. On a yearly basis, it climbed 18.4 percent.
The surge stemmed from disruptions in global oil supplies due to the Middle East conflict, which began in late February following U.S.-Israeli strikes on Iran. South Korea's benchmark Dubai crude soared 87.9 percent on-month to US$128.52 per barrel. Crude oil import prices in won terms surged 88.5 percent, the steepest on record.
"Import prices for crude oil surged 88.5 percent from a month earlier in won terms, marking the steepest increase on record," BOK official Lee Moon-hee said at a press briefing. "Uncertainty remains high surrounding the Middle East situation. Even after the conflict ends, disruptions in raw material supply are unlikely to be fully resolved anytime soon."
The Korean won weakened against the U.S. dollar amid the crisis, averaging 1,486.64 won per dollar in March compared to 1,449.32 won the previous month. Raw material prices jumped 40.2 percent, while intermediate goods rose 8.8 percent.
Import prices drive inflation by affecting production costs and consumer prices. The export price index also rose 16.3 percent on-month, the sharpest since January 1998's 23.2 percent gain, and 28.7 percent year-on-year. "The increase in export prices was also driven by higher global oil prices, with petroleum product prices rising sharply," Lee said. "Gains in computers, and electronic and optical equipment, particularly semiconductors, also pushed up the export prices."
