A new report shows trade between the two Koreas in the year's first half was down 27 percent from the same period last year.

The Korea Customs Service says inter-Korean trade volume in the first six months came to 650 million U.S. dollars.

South Korea, in the first half, racked up 18-thousand-200 export transactions totaling some 264 million dollars, and 16-thousand-600 import transactions worth 385 million dollars.

The sharp drop is attributed to a series of North Korean provocations, including a long-range rocket launch and a nuclear test.

Cross-border trade will likely worsen as South Korea will strictly monitor the transfer of jewelry and luxury goods into North Korea in line with a United Nations sanctions resolution on Pyongyang.