With the rise of Global Value Chains, the production of final goods relies more on imported intermediate inputs. In fact, the share of foreign content of Koreas manufactured exports in 2011 is close to 47%. This significant use of imported inputs by Korean manufacturing industries has a crucial effect on the exchange rate pass-through on exports. With a relatively high share of imported intermediates in exports, the effect of exchange rate fluctuations on export prices of final goods produced domestically using foreign inputs is ambiguous. For instance, positive effects on Korean exporting firms following the depreciation of the Korean won will be mitigated by the higher costs of imported intermediates, and the overall exchange rate pass-through on export prices is determined by the extent to which exchange rate changes are transmitted to the prices of imported intermediate inputs. In line with the growing participation of global value chains, this article emphasizes the role of foreign intermediate inputs in determining the exchange rate pass-through on exports.