SEOUL, Oct. 29 (Yonhap) — South Korea’s terms of trade rose for the sixth straight month in September, as import prices fell at a faster pace than export prices, central bank data showed Thursday.
The country’s net terms-of-trade index for goods — a gauge of trade terms — came in at 96.9 in September, up 5.6 percent from a year earlier, according to preliminary data from the Bank of Korea (BOK).
It marked the sixth straight month of an on-year rise since April, when the trade terms posted the first on-year gain in over two years on low oil prices amid the fallout of the COVID-19 pandemic.
The figure is calculated by dividing the index for export prices by that for import prices, showing the amount of imports a country can buy for each unit of exports. The base year is 2015 with a benchmark index of 100.
Last month, export prices declined 5.2 percent from the previous year on a customs-clearance basis, and import prices fell by a wider margin of 10.2 percent, causing the trade terms to improve, the BOK said.
South Korea’s exports, which account for about 50 percent of the economy, rebounded for the first time in seven months in September on increased shipments of chips and automobiles.
The subindex measuring the country’s export volume rose 13.9 percent on-year, while that of import volume gained 11.2 percent in the cited period.