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Korea's trade terms worsen in Feb.

All News 12:00 March 25, 2020

SEOUL, March 25 (Yonhap) -- South Korea's trade terms continued to deteriorate last month, with its export prices falling at a faster rate than import prices, central bank data showed Wednesday.

The terms of trade index for products came to 89.06 in February, down 5.8 percent from a year earlier, according to preliminary data from the Bank of Korea (BOK).

The index measures the amount of imports a country can purchase for each unit of exports.

Stacks of import-export cargo containers at South Korea's largest seaport in Busan, located some 450 kilometers south of Seoul. (Yonhap)

"The terms of trade index for products dropped 5.8 percent from the same month last year in February as export prices dropped by a greater margin than import prices," the BOK said in a press release.

South Korea's export prices plunged 7.2 percent on-year in the month, while import prices slipped 1.4 percent.

The trade terms index has dipped for 27 consecutive months since December 2017.

Despite a steady decline in terms of trade, the country's exports increased, both in terms of volume and value, for the first time in 15 months.

South Korea's exports had dropped for 14 consecutive months before gaining 4.5 percent on-year to US$41.2 billion in February.

The BOK said the export volume index spiked 11.4 percent on-year in the month, with the export price index also adding 3.4 percent.

The indices for import volume and price added 1.5 percent and 0.1 percent on-year, respectively.


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