South Korea’s external purchasing power improved sharply in August as strong semiconductor exports and favorable export prices widened the gap between what the country earned from overseas sales and paid for imports. The Bank of Korea (BOK) said Tuesday that the net barter terms-of-trade index rose 27.1% year on year, while the income terms-of-trade index, which also reflects export volumes, surged 60%. Export volumes increased 25.9%, led by computer, electronic and optical products, whose volumes rose 30.5% and export values jumped 174.7%.

The gains came despite a sharp monthly fall in won-denominated trade prices. Export prices declined 3.7% from July