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S. Korea's trade terms up for 7th consecutive month in October

Stacks of cargo containers at South Korea's largest seaport in Busan, 450 kilometers southeast of Seoul. (Yonhap)
Stacks of cargo containers at South Korea's largest seaport in Busan, 450 kilometers southeast of Seoul. (Yonhap)
South Korea's terms of trade rose for the seventh consecutive month in October, as import prices fell at a faster pace than export prices, central bank data showed Wednesday.

The nation's net terms-of-trade index for goods -- a gauge of trade terms -- came in at 97.76 in October, up 7.6 percent from a year earlier, according to preliminary data from the Bank of Korea (BOK).

It marked the seventh 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 3.5 percent from the previous year on a customs-clearance basis, and import prices fell by a wider margin of 6.7 percent, causing the trade terms to improve, the BOK said.

South Korea's exports, which account for about 50 percent of the economy, fell 3.8 percent on-year in October, after marking the first monthly gain in seven months in September. (Yonhap)
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