A low cost YBCO oxide powder was employed as a starting precursor for MOD process. YBCO oxide is advantageous over metal acetates or TFA salts which are popular starting precursors for conventional MOD-TFA process because that YBCO oxide precursor is cheap and easy to control molar ratio. YBCO thin films were prepared by this oxide-precursor-based MOD process and annealing condition was optimized. The YBCO thin film annealed at below $780^{circ}C$ shows no transport $I_c$ and poor microstructure. Raman spectroscopic study of YBCO thin film indicates that YBCO thin film prepared at below $780^{circ}C$ contains a number of imperfections such as non-superconducting $BaCuO_2$ phase, cation disorder, etc. However, the YBCO thin film treated at above $800^{circ}C$ shows improvement in microstructure and current transport properties. This research was supported by a grant from Center for Applied Superconductivity Technology of the 21st Century Frontier R&D Program funded by the Ministry of Science and Technology, Republic of Korea.