S. Korea's trade terms continue to improve on cheaper oil

South Korea's trade terms kept improving for a five straight month as energy import costs declined amid cheaper crude oil, central bank data showed on Thursday.

The net terms-of-trade index for goods, which gauges how many goods can be imported with a unit export, rose 8.4 percent in January from a year earlier after gaining 3.9 percent in the previous month, according to the Bank of Korea.

It maintained an upward trend for the fifth consecutive month. From a month earlier, the index gained 2.6 percent, going upward for six months in a row.

The index stood at 95.82 in January, which means the country can import 95.82 goods with unit-export proceeds compared with the standard year of 2010 when 100 goods can be imported with a unit export.

The enhanced result came as cheaper crude oil reduced energy import costs for the economy. In terms of volume, the country's imports grew 6.3 percent in January from a year earlier, but the import value tumbled 11.3 percent on lower prices of mining, coal, chemical and oil products.

The income terms-of-trade index, which measures how many goods can be imported with total export proceeds, surged 14.9 percent in January on a yearly basis.

The surge was attributable to an export growth in terms of volume. The export volume index increased 6 percent on-year in January due to solid demand for locally-made industrial products. Endi