S.Korea's trade terms improved on lower oil prices

South Korea's trade terms were improved for the first time in five months due to lower global oil prices, central bank data showed Thursday.

The net terms-of-trade index for goods, which gauges how many goods can be imported with a unit export, rose 0.7 percent in September from a year earlier, according to the Bank of Korea (BOK) .

It was the first increase in five months as import costs fell at a faster pace than export prices amid lower global oil prices. Import costs slid 2 percent last month, with export prices falling 1.3 percent.

Oil prices imported from overseas declined 4.9 percent in September, and imported iron ore prices plunged 21.5 percent last month.

The income terms-of-trade index, which measures how many goods can be imported with total export proceeds, surged 8.1 percent in September from a year earlier.

The export volume index jumped 7.3 percent, and the import volume advanced 9.1 percent on demand for farm goods and products of coal and oil.