Professional Documents
Culture Documents
Republic of Korea
Economic Bulletin
The Green Book : Current Economic Trends
Overview
2. Private consumption
3. Facility investment
12
4. Construction investment
14
16
18
20
8. Employment
22
9. Financial markets
9.1 Stock market
9.2 Exchange rate
9.3 Bond market
9.4 Money supply & money market
26
30
32
36
40
Featured Issue
Korea-China Economic Relations of 20 Years: Past and Future
42
Policy Issues
2012 Tax Revision Plan
44
50
Statistical Appendices
55
US
The US economy slowed for a second straight quarter. The US GDP expanded 1.5 percent in
the second quarter and 2.0 percent in the first quarter of this year. Growth was 4.1 percent in
the fourth quarter of last year.
Industrial output rose slightly month-on-month, but the ISM Manufacturing Index, an
indicator for business sentiment, fell below the base level of 50 in July for a second
successive month.
ISM Manufacturing Index (base=50)
53.9 (Dec 2011)
52.4 (Feb)
53.4 (Mar)
54.8 (Apr)
53.5 (May)
49.7 (Jun)
49.8 (Jul)
With personal consumption expenditure falling 0.1 percent in May and remaining unchanged
in June, consumer sentiment in July dropped for two successive months to the lowest level
this year.
University of Michigan Consumer Sentiment Index (1964 = base 100, original)
69.9 (Dec 2011)
75.3 (Feb)
76.2 (Mar)
76.4 (Apr)
79.3 (May)
73.2 (Jun)
72.3 (Jul)
Housing prices continued to rise in May for the fourth consecutive month, but both existing
home sales and new home sales in June decreased by 5.4 percent and 8.4 percent, respectively.
Case-Shiller home price index (seasonally adjusted)
203.4 (Dec 2006)
136.6 (Feb)
137.7 (Mar)
138.6 (Apr)
139.9 (May)
8.0 (Feb)
-3.8 (Mar)
1.7 (Apr)
6.7 (May)
-8.4 (Jun)
The unemployment rate in July rose slightly to 8.3 percent compared to the previous months
8.2%, but nonfarm payrolls went up from a month ago by 163,000.
Nonfarm payroll increase (q-o-q, thousand)
275 (Jan 2012)
259 (Feb)
143 (Mar)
68 (Apr)
87 (May)
64 (Jun)
163 (Jul)
20121
2011
Annual
Annual
Q1
Q2
Q3
Q4
Q1
Q2
May
Jun
Jul
Real GDP 2
2.4
1.8
0.1
2.5
1.3
4.1
2.0
1.5
1.8
2.5
3.1
1.0
1.7
2.0
2.4
1.5
0.7
8.6
-1.3
14.5
19.0
9.5
7.5
5.3
-3.7
-1.4
-1.4
4.1
1.4
12.1
20.5
9.7
5.3
4.1
1.2
0.2
1.7
0.9
1.4
0.6
-0.2
0.4
Consumer prices
1. Preliminary
August 2012
3.8
4.7
1.5
1.0
1.0
0.8
1.2
0.5
-0.1
0.0
-3.4
2.5
9.0
-5.2
-0.2
3.1
4.6
-0.7
0.0
-5.4
9.6
9.0
8.9
9.1
9.1
8.7
8.3
8.2
8.2
8.2
8.3
1.6
3.1
1.3
1.0
0.8
0.2
0.6
0.2
-0.3
0.0
3. Seasonally adjusted
1-1
1-2
1-3
Economic Bulletin
China
The Chinese economy continues to slow down, with the year-on-year GDP growth in the
second quarter falling by 0.5 percentage points from the previous quarters 8.1 percent to
7.6 percent. However, consumer prices, which had remained high last year, have stabilized
within a 2 percent range.
(Percentage change from same period in previous year)
2010
Annual Annual
2011
Q2
Q1
Q4
Q3
Q1
Q2
20121
Apr
May
Jun
Real GDP
10.3
9.2
9.7
9.5
9.1
8.9
8.1
7.6
Industrial production2
15.7
13.9
14.9
13.9
13.8
12.8
11.6
9.5
9.3
9.6
9.5
24.5
25.1
32.5
27.0
28.0
28.0
21.3
20.8
20.5
20.7
21.0
Retail sales
18.4
17.1
17.1
18.2
17.3
17.5
14.9
13.9
14.1
13.8
13.7
Exports
11.3
31.3
20.3
26.4
22.0
20.5
14.3
8.9
10.5
4.6
15.3
Consumer prices2
3.3
5.4
5.1
5.7
6.3
4.6
3.8
2.9
3.4
3.0
2.2
Producer prices2
5.5
6.0
7.0
6.9
7.1
3.1
0.1
-1.4
-0.7
-1.4
-2.1
1. Preliminary
Japan
The Japanese economy still has not experienced a full recovery as industrial output has been
weak for three consecutive months while retail sales have grown at a slow pace.
The current account balance in June was 6 billion, which was the first surplus since March,
but the trade deficit in the first half of this year hit a record high of 2.9158 trillion.
Current account balance (billion)
-1,482 (Jan 2012)
25 (Feb)
-87 (Mar)
-522 (Apr)
-907 (May)
60 (Jun)
(Percentage change from previous period)
2010
Annual
Annual
4.4
-0.7
16.5
2.5
Exports (y-o-y)
Consumer prices (y-o-y)
Real GDP
Industrial production
Retail sales (y-o-y)
1. Preliminary
20121
May
Apr
Q1
2011
Q2
Q3
Q4
Q1
-2.0
-0.3
1.9
0.0
1.2
-2.4
-1.5
-4.2
5.4
0.4
1.2
-0.2
-3.4
-0.1
-1.2
-3.0
-1.7
-1.0
0.8
5.2
5.7
3.6
0.2
26.1
-2.6
2.7
-8.1
0.6
-5.4
-2.0
7.9
10.0
-2.3
-0.7
-0.3
-0.5
-0.4
0.1
-0.3
0.3
0.4
0.2
-0.2
Jun
Sources: Japan's Cabinet Office, Ministry of Economy, Trade and Industry, Ministry of Finance, Statistics Bureau of Japan
Eurozone
Despite a slight rise in industrial production and retail sales in May, the eurozone economy
continues to struggle as the manufacturing PMI hit a new low since June 2009.
Manufacturing PMI (base = 50)
48.8 (Jan 2012)
49.0 (Feb)
47.7 (Mar)
45.9 (Apr)
45.1 (May)
45.1 (Jun)
44.0 (Jul)
10.9 (Feb)
11.0 (Mar)
11.0 (Apr)
10.6 (Nov)
10.7 (Dec)
11.2 (May)
2010
Annual
Annual
Q1
2011
Q2
Q3
Q4
Q1
Apr
May
Jun
Real GDP
1.8
1.5
0.7
0.1
0.1
-0.3
0.0
Industrial production
7.4
3.5
0.9
0.2
0.8
-1.9
-0.4
-1.0
0.7
Retail sales
0.9
-0.6
-0.2
-0.4
0.3
-1.1
0.2
-1.4
0.6
20.1
12.7
21.5
13.0
9.4
8.3
8.6
5.9
5.6
1.6
2.7
2.5
2.8
2.7
2.9
2.7
2.6
2.4
2.4
Exports (y-o-y)
Consumer prices (y-o-y)
1. Preliminary
August 2012
Source: Eurostat
1-4
1-5
1-6
Economic Bulletin
2. Private consumption
Private consumption (advanced estimates of GDP) climbed 0.5 percent quarter-on-quarter
and 1.2 percent year-on-year in the second quarter of 2012.
(Percentage change from previous period)
20111
2010
Private consumption
y-o-y
20121
Annual
Q2
Q3
Q4
Annual
Q1
Q2
Q3
4.4
0.7
1.2
0.4
2.3
0.6
0.8
3.9
3.9
3.0
2.9
3.0
Q4
Q1
Q2
0.2
-0.4
1.0
0.5
2.1
-1.1
1.6
1.2
1. Preliminary
2. National accounts
Source: The Bank of Korea
Retail sales in June fell 0.5 percent month-on-month due to a decrease in the sales of
durable goods, semi-durable goods and non-durable goods. On a yearly basis, sales
increased 0.6 percent.
Durable goods sales slid 0.8 percent month-on-month, led by a slowdown in automobile
sales. Semi-durable goods and non-durable goods sales, which had slightly increased in the
previous month fell again 1.7 percent and 0.2 percent, respectively.
(Percentage change from previous period)
2010
Automobiles
- Semi-durable goods3
- Non-durable goods
2011
2012
Annual
Annual 1
Q1
Q2
Q3
Q4
Q1
Q21
May1
Jun1
6.7
4.3
1.5
0.1
1.6
-1.3
1.0
0.2
0.7
-0.5
5.4
5.7
4.7
1.9
2.0
1.0
2.2
0.6
14.8
10.8
4.3
-0.5
1.8
-2.4
3.0
1.3
0.6
-0.8
11.1
5.9
5.9
-4.9
3.6
-11.3
2.8
8.1
3.7
-1.4
6.8
4.2
0.8
0.7
1.2
-0.3
-0.3
-0.2
3.0
-1.7
2.2
1.1
0.2
0.0
2.1
-0.5
0.7
-1.0
0.7
-0.2
1. Preliminary
2. Durable goods: Automobiles, electronic appliances, furniture, telecommunications devices, etc.
3. Semi-durable goods: Clothing, footwear, etc.
4. Non-durable goods: Food, medicine, cosmetics, fuel, tobacco, etc.
Source: Statistics Korea
Department stores, large discount stores, specialized retailers and nonstore retailers all saw
their sales decrease.
(Percentage change from previous period)
2010
- Department stores
- Large discounters
- Specialized retailers
- Nonstore retailers
2011
Annual
Annual 1
Q1
Q2
Q3
Q4
Q1
Q21
May1
Jun1
8.8
8.1
2.2
0.5
1.2
-0.6
-0.8
1.2
5.9
-5.2
4.5
3.9
1.2
1.0
0.2
0.3
-1.2
-2.0
0.8
-1.3
5.7
3.3
1.3
-0.5
2.1
-3.1
1.5
-0.2
1.8
-0.2
15.6
8.6
1.4
1.2
2.8
0.6
2.7
2.4
2.9
-2.8
1. Preliminary
2. Specialized retailers are defined as stores carrying a few (1 to 3) specialized items.
Source: Statistics Korea
August 2012
2012
2-1
Private consumption
Source: The Bank of Korea (national accounts)
2-2
2-3
Economic Bulletin
July retail sales are expected to stay on the recent downward trend given weak advanced
indicators.
Credit card sales rose year-on-year, but at a slower pace than the previous month. Sales at
both department stores and discount stores shrank compared to the previous year, but the
decline in department stores sales has eased. Gasoline sales dropped due to a base effect
from last year when refiners discounted their oil prices between April 7 and July 6.
Automobile sales dropped for two months in a row due to a lack of demand for cars
excluding newly launched models.
(y-o-y, %)
2012
Jan
Feb
Mar
Apr
May
Jun
Jul
11.2
24.9
14.5
18.3
15.3
13.7
12.6
2.7
-6.4
3.2
-2.4
-5.7
-7.2
-8.3
-4.1
2.9
1.6
-3.4
1.0
-2.0
-0.9
7.6
4.4
4.1
5.6
5.2
9.4
-2.9
-19.9
5.5
-9.9
-6.8
0.7
-3.7
-4.6
Sources: Credit Finance Association of Korea, Ministry of Knowledge Economy, Korea National Oil Corporation, Korea Customs Service, Korea Automobile
Manufacturers Association, Ministry of Strategy and Finance (for July data)
With inflation easing and income recovering, the consumer environment has improved, but a
recovery in consumer sentiment is being held back by external and domestic uncertainties.
Consumer prices (y-o-y, %)
3.4 (Jan 2012)
3.1 (Feb)
2.6 (Mar)
2.5 (Apr)
2.5 (May)
2.2 (Jun)
1.5 (Jul)
4.2 (Feb)
5.5 (Mar)
4.4 (Apr)
4.7 (May)
Consumer sentiment in July fell for a second consecutive month as the eurozone crisis has
weighed on the financial market.
Consumer sentiment index (CSI, base=100)
98 (Jan 2012)
10
August 2012
100 (Feb)
101 (Mar)
104 (Apr)
105 (May)
101 (Jun)
100 (Jul)
2-4
2-5
2-6
Economic Bulletin
11
3. Facility investment
Facility investment (advanced estimates of GDP) in the second quarter of 2012 decreased 6.4
percent quarter-on-quarter and 2.9 percent year-on-year.
(Percentage change from previous quarter)
2010
Facility investment
- Transportation equipment
20121
Annual
Q4
Annual
Q1
Q2
Q3
Q4
Q1
Q2
25.7
-0.2
3.7
-1.6
4.7
-1.8
-4.3
10.3
-6.4
16.9
10.3
7.7
1.2
-3.3
8.6
-2.9
31.2
-1.4
4.1
-1.9
5.0
-2.5
-2.5
11.4
8.3
4.9
1.9
-0.7
3.7
0.9
-11.2
6.1
y-o-y
- Machinery
2011
1. Preliminary
2. National accounts
Source: The Bank of Korea
20121
2011
Annual
Annual
Q1
Q2
Q3
Q4
Q1
Apr
May1
Jun1
24.2
0.7
-1.9
3.6
-1.5
-5.0
11.3
4.7
0.1
-6.3
5.4
5.7
-3.1
-4.7
9.3
5.1
-1.0
-5.6
29.4
1.7
-3.5
6.0
-2.2
-3.1
10.2
5.8
1.6
-10.2
4.5
-4.1
6.1
-7.2
1.6
-12.9
14.7
-0.3
-5.7
13.5
20121
2011
Annual
Annual
Q1
Q2
Q3
Q4
Q1
Apr
May1
Jun1
8.3
11.0
19.5
10.0
3.4
11.5
-2.4
-6.9
-10.9
-33.5
9.2
-0.3
-5.4
8.8
-7.1
21.5
-3.7
-18.7
- Public
-37.7
11.2
-10.5
81.1
6.1
-3.1
104.5
-1.2
-42.4
-58.1
- Private
18.3
11.0
22.7
4.9
3.2
14.7
-10.8
-7.2
-8.9
-27.9
Machinery imports
40.4
7.1
8.1
10.6
9.3
1.0
15.2
11.3
-7.8
-14.5
80.9
79.9
82.2
79.9
79.6
78.0
79.9
79.3
79.3
78.2
8.9
1.6
3.6
1.1
1.0
0.8
0.8
-2.6
-0.4
-2.0
1. Preliminary
2. Production growth rate minus production capacity growth rate in the manufacturing sector (%p)
Sources: Statistics Korea, Korea International Trade Association
12
August 2012
Jan
Feb
Mar
Apr
May
Jun
Jul
97
98
99
99
99
99
98
3-1
3-2
3-3
Machinery imports
Source: Korea International Trade Association (KITA)
Economic Bulletin
13
4. Construction investment
Construction investment (preliminary GDP) in the second quarter of 2012 increased 0.3
percent quarter-on-quarter, but decreased 1.4 percent year-on-year.
(Percentage change from previous quarter)
20111
2010
Annual
Q4
Annual
-3.7
-1.9
-5.0
-5.2
- Building construction
-1.6
0.1
-4.1
-6.2
-4.6
-6.0
Construction investment
y-o-y
Q1
20121
Q2
Q3
Q4
Q1
-4.4
3.5
-11.0
-4.2
-5.3
-3.2
Q2
-0.5
0.1
-1.2
0.3
-4.0
-2.1
1.5
-1.4
4.5
-1.1
-0.6
3.8
2.3
0.3
1.0
-7.7
1. Preliminary
2. National accounts
Source: The Bank of Korea
The value of completed construction (constant) in June fell 3.3 percent month-on-month due
to a decline in building construction, and 16.5 percent year-on-year.
(Percentage change from previous quarter)
2010
20121
2011
Annual
Annual
Q1
Q2
Q3
Q4
Q1
Apr
May1
Jun1
-3.3
-6.7
-3.8
2.0
-4.3
5.7
-6.8
-5.8
2.5
-3.3
-12.6
-6.6
-8.4
-0.5
-3.7
-8.0
-6.4
-16.5
-7.0
-8.4
-4.7
1.0
-3.7
4.9
-3.4
-7.9
2.0
-7.2
2.2
-4.5
-2.5
3.1
-5.1
6.6
-11.2
-3.1
3.2
1.5
1. Preliminary
Source: Statistics Korea
2011
2012
Annual
Annual
Q1
Q2
Q3
Q4
Q1
Apr
May1
Jun1
-17.7
4.0
-11.8
-1.7
1.5
22.4
36.6
-4.4
2.9
2.6
12.5
11.7
3.3
-1.9
25.4
-5.4
0.7
29.5
-8.9
10.9
-7.7
-2.5
9.8
40.6
31.3
-3.2
5.4
-12.6
-28.3
-6.6
-17.2
0.1
-11.0
-1.1
44.5
-7.5
-5.4
25.8
19.3
9.9
21.5
3.8
58.7
-14.8
8.7
-4.9
0.5
8.8
1. Preliminary
Sources: Statistics Korea, Ministry of Land, Transport and Maritime Affairs
14
August 2012
-28.4 (Feb)
-29.8 (Mar)
-26.8 (Apr)
-20.2 (May)
-29.3 (Jun)
4-1
Construction investment
Source: The Bank of Korea (national accounts)
4-2
4-3
Economic Bulletin
15
2.10 (Apr)
2.09 (May)
2.10 (Jun)
1.86 (Jul)
Exports of general machinery (up 3.5%) and car parts (up 1.9%) increased year-on-year, but
vessels (down 57.5%), steel (down 20.2%), petroleum products (down 12.2%), and mobile
phones (down 34.7%) fell.
A plunge in vessel orders during the financial crisis in 2009 led to recent decreases in vessel
exports which fell by US$2.8 billion in July from the previous year, from US$4.9 billion to
US$2.1 billion. That decline weighed heavily on July exports. If vessel exports were excluded,
a decrease in exports would be smaller.
Exports (y-o-y, %)
3.0 (Q1 2012)
-1.6 (Q2)
-8.8 (Jul)
0.1 (Q2)
-3.2 (Jul)
(US$ billion)
2010
Exports
(y-o-y, %)
2011
2012
Annual
Annual
Q1
Q2
Q3
Q4
Q1
Q2
Jun
Jul1
Jan-Jul1
466.38
555.21
130.99
142.69
141.24
140.37
134.89
140.33
47.25
44.62
319.84
19.6
19.0
29.6
18.7
21.4
9.0
3.0
-1.6
1.1
-8.8
-0.8
1.70
2.01
1.98
2.08
2.03
1.98
1.97
2.09
2.10
1.86
2.01
425.21
524.41
123.91
134.29
134.92
131.26
133.40
131.11
42.34
41.88
306.43
(y-o-y, %)
31.6
23.3
26.1
27.2
27.7
13.4
7.6
-2.4
-5.5
-5.5
1.3
1.46
1.91
1.87
1.96
1.96
1.85
1.95
1.96
1.88
1.74
1.92
1. Preliminary
Source: Korea Customs Service
Trade balance
1. Preliminary
Source: Korea Customs Service
16
August 2012
2011
2012
Annual
Annual
Q1
Q2
Q3
Q4
Q1
Q2
Jun
Jul1
Jan-Jul1
41.17
30.80
7.08
8.40
6.30
9.16
1.45
9.22
4.91
2.75
13.41
5-1
5-2
5-3
Trade balance
Source: Korea Customs Service & Ministry of Knowledge Economy (export and import trend)
Economic Bulletin
17
2011
Annual
Q2
Jun
Q1
Q21
Apr
May1
Jun1
0.4
0.9
2.2
-0.1
0.9
1.3
-0.4
6.9
7.2
6.4
3.8
1.5
0.0
2.9
1.6
0.5
0.8
2.2
-0.1
0.9
1.1
-0.5
7.0
7.3
6.3
4.2
1.5
0.0
2.7
1.6
6.7
7.0
5.4
3.3
1.4
-1.0
3.6
1.8
3.3
3.8
3.1
0.3
-1.5
-2.4
0.2
-2.1
10.8
10.9
8.2
6.7
4.9
0.6
7.5
6.6
20.8
8.9
8.9
16.0
10.7
16.2
15.3
10.7
79.9
79.9
80.5
79.9
78.9
79.2
79.4
78.2
5.4
6.2
5.5
3.4
3.3
2.7
3.3
3.6
1. Preliminary
2. Including mining, manufacturing, electricity, and gas industry
3. End-period
4. Percentage change from same period in previous year
Source: Statistics Korea
3.87 (Feb)
4.31 (Mar)
3.83 (Apr)
4.23 (May)
4.35 (Jun)
3.92 (Jul)
4.17 (Apr)
3.94 (May)
4.50 (Jun)
3.68 (Jul)
18
August 2012
4.41 (Feb)
4.57 (Mar)
6-1
Industrial production
Source: Statistics Korea (industrial activity trend)
6-2
6-3
Inventory
Source: Statistics Korea (industrial activity trend)
Economic Bulletin
19
4.2 (Feb)
-13.1 (Mar)
-6.4 (Apr)
-7.0 (May)
-14.0 (Jun)
1.6 (Feb)
-14.4 (Mar)
-8.7 (Apr)
4.1 (May)
-3.7 (Jun)
Financial & insurance services declined for the fourth straight month due to unstable
financial markets, while real estate & renting also fell considerably as a result of fewer
transactions in the real estate market.
Housing transactions (y-o-y, %)
-58.8 (Jan 2012)
-28.4 (Feb)
-29.8 (Mar)
-26.8 (Apr)
-20.2 (May)
-29.3 (Jun)
Publishing & communication services rose for the third consecutive month, due to the
release of new games.
(Percentage change from previous period)
Weight
2010
2011
2012
Annual
Annual
Q1
Q2
Q3
Q4
Q1
Q2
May1
Jun1
100.0
3.9
3.3
1.6
0.2
1.3
-0.5
1.0
0.0
0.4
-0.4
21.8
5.7
3.8
1.4
1.4
0.7
-0.7
0.1
0.5
1.6
-1.0
- Transportation services
9.0
11.9
3.9
2.6
-1.6
1.0
-1.0
1.5
-0.6
1.0
-0.8
7.7
1.2
-0.5
-0.4
1.0
-0.3
-1.5
-0.2
2.4
1.1
-0.7
8.4
1.7
4.4
1.1
0.5
2.8
0.3
1.0
0.6
1.3
1.7
15.3
4.6
7.3
3.0
0.1
2.7
0.1
1.4
-2.0
-0.8
-0.4
6.3
-8.5
-10.2
3.3
-2.2
-0.3
-6.4
-0.2
3.1
0.0
-3.7
4.8
-0.5
0.3
-1.5
2.0
1.0
1.4
1.8
-1.3
-0.5
-0.8
- Business services
2.9
7.5
4.3
0.8
0.9
0.2
0.4
1.7
1.1
2.0
0.6
10.8
2.0
2.4
0.2
-0.9
1.7
0.4
1.2
-1.3
-0.7
-0.4
6.0
8.8
6.3
3.3
0.6
1.4
1.6
1.7
2.6
0.0
-0.4
2.9
-0.4
2.3
1.1
0.0
0.7
0.1
4.3
-2.8
0.4
4.2
- Membership organizations
3.8
4.3
1.1
-0.3
1.1
-0.3
-2.1
-0.2
0.5
-1.5
3.0
0.4
5.1
0.0
0.1
-0.5
0.2
3.1
1.0
4.1
-2.6
2.5
- Educational services
1. Preliminary
Source: Statistics Korea
Service activity in July is expected to maintain a similar trend as the previous years.
Although transportation services and hotels & restaurants may improve as the shorter rainy
season allowed better conditions for external activities, wholesale & retail are expected to
remain sluggish.
The rainy season in the central region of Korea lasted 19 days, which was shorter than the
average of 32 days. The national average precipitation level (292.1mm) and days of rainfall
(14 days) were also less than the average year (357.9mm, 17 days).
20
August 2012
els
& re
serv
tail
l&
ntin
e se
ranc
es
ion
rvic
l, sc
i
tech entific
nica &
l se
rv
iona
& re
insu
Bus
bus iness f
ices
ines acil
s su ity m
ppo ana
rt se gem
rvic ent
es
Edu
&
cati
ona
l se
rvic
es
Hea
serv lthcare
ices & s
ocia
l we
lfar
e
Ente
r
serv tainm
ices ent
, cu
ltur
al &
spo
Me
rts
m
& o bersh
ther ip o
pers rgan
ona izat
l se ions
Sew
rvic , re
es
pair
mat erage,
e
w
r
i
acti als r aste
vitie eco
very manag
s
& re eme
med nt,
iatio
n
ess
tate
ncia
l es
Prof
Rea
Fina
icat
ices
stau
rant
s
Pub
lish
serv i n g
ices & c o
mm
un
Hot
ion
& re
rtat
ale
spo
oles
Tran
Wh
ex
7-3
l ind
7-2
Tota
7-1
Service industry
Economic Bulletin
21
8. Employment
The number of workers on payroll in June increased by 365,000 from a year earlier to
25,120,000 and the employment rate rose by 0.1 percentage point year-on-year to 60.4 percent.
Overall employment remains robust, although the number of workers on payroll increased
by less than 400,000 for the first time in nine months due to a high base effect.
Job growth was lead by the service sector (up 416,000), with employment expanding in
health & welfare (up 91,000), education (up 73,000) and wholesale & retail sales (up 63,000).
Although employment in manufacturing is continuing to wane, the pace of decline has been
gradually decelerating and the number of regular workers in the manufacturing sector has
begun to grow since March.
By status of workers, the number of regular workers (up 441,000) continued to rise and selfemployed workers (up 169,000) also maintained the upward trend.
2010
Annual
Number of employed (million)
Q3
2011
Q4
Annual Jun
2012
Q2
Q1
Q3
Q4
May
Jun
Q1
Q2
23.83 24.12 23.99 24.24 24.75 23.46 24.57 24.48 24.46 25.13 25.12 23.93 25.00
58.7
59.3
58.9
59.1
60.3
57.4
59.9
59.5
59.4
60.5
60.4
57.8
60.2
(Seasonally adjusted)
58.7
58.9
58.7
59.1
59.3
58.8
59.1
59.1
59.2
59.5
59.3
59.3
59.4
323
369
358
415
472
423
402
363
474
472
365
467
430
405
414
393
440
501
451
399
414
497
493
386
498
454
- Manufacturing
191
262
269
63
118
228
112
-12
-75
-67
-51 -102
-66
33
92
57
-2
-42
-3
-41
-35
71
33
14
79
33
- Services
200
83
80
386
436
224
331
472
514
531
416
541
491
-82
-45
-35
-25
-29
-28
-51
-23
-21
-21
-31
-24
- Wage workers
517
541
532
427
527
519
421
392
374
309
212
360
281
Regular workers
697
671
699
575
627
605
621
572
500
356
441
413
379
Temporary workers
-34
-26 -114
-78
-33
-88 -137
-76
-10
89
-38
110
73
- Construction
Daily workers
-146 -104
-53
-70
-66
- Non-wage workers
-11
-55
-96
Self-employed workers
-29
100
163
153
108
150
-53 -115
-39
34
125
186
169
149
173
- Male
181
207
212
238
265
266
221
208
257
276
207
238
242
- Female
142
163
146
177
207
157
181
155
216
196
158
230
188
- 15 to 29
-43
-44
-57
-35
-52
-49
-74
-1
-18
-19
-29
-8
- 30 to 39
-4
21
17
-47
-7
-34
-13
-83
-56
-95
-70
-65
-80
- 40 to 49
29
40
50
57
73
77
59
46
47
25
-4
28
- 50 to 59
294
295
287
291
306
286
294
270
315
282
246
326
260
47
57
60
149
152
143
137
131
185
278
222
178
251
- 60 or more
Source: Statistics Korea
22
August 2012
8-1
8-2
8-3
Economic Bulletin
23
2010
2011
Annual
Q3
Q4
Q3
Q4
May
Jun
Q1
Q2
920
873
808
855
839 1,028
865
786
740
807
822
947
841
31
-13
-10
-65
-38
-101
-3
-88
-68
-12
-17
-82
-23
- Male
-7
-48
-16
-48
- Female
38
35
-17
-59
-70
-32
-48
-41
-21
-1
-54
-19
21
-32
29
-40
-27
-16
-28
-4
3.7
3.5
3.3
3.4
3.3
4.2
3.4
3.1
2.9
3.1
3.2
3.8
3.3
(Seasonally adjusted)
3.7
3.6
3.4
3.4
3.3
3.8
3.4
3.2
3.1
3.2
3.2
3.5
3.3
- 15 to 29
8.0
- 30 to 39
3.5
7.6
7.1
7.6
7.6
8.8
7.9
6.7
7.1
8.0
7.7
8.2
8.1
3.5
3.2
3.4
3.4
4.0
3.5
3.2
2.9
3.1
3.0
3.2
3.2
- 40 to 49
2.5
2.5
2.2
2.1
2.1
2.5
2.1
2.0
1.9
1.8
2.1
2.4
2.0
- 50 to 59
2.5
2.3
2.3
2.1
1.9
2.7
2.0
2.1
1.8
1.8
2.0
2.3
2.0
- 60 or more
2.8
2.0
1.9
2.6
2.2
4.5
2.3
2.1
1.8
1.7
1.9
4.4
2.0
Q1
2012
Q2
Annual Jun
The economically inactive population in June was up 181,000 from a year earlier to
15,620,000. Meanwhile, the labor force participation rate remained unchanged at
62.4 percent.
The number of workers quitting jobs due to housework (up 221,000) and old age (up
180,000) increased while those who quit jobs due to education (down 45,000) and rest,
time-off and leisure (down 49,000) decreased.
2011
2010
Annual
Q3
Q4
Annual Jun
Q1
2012
Q2
Q3
Q4
May Jun
Q1
Q2
Economically inactive population (million) 15.84 15.66 15.96 15.95 15.44 16.39 15.56 15.85 16.01 15.58 15.62 16.50 15.67
Labor force participation rate (%)
61.0
61.5
60.8
61.1
62.4
59.9
62.0
61.5
61.1
62.5
62.4
60.1
62.3
(seasonally adjusted)
61.0
61.1
60.8
61.1
61.3
61.1
61.2
61.0
61.1
61.5
61.3
61.4
61.4
143
128
133
112
26
138
66
191
53
56
181
103
110
-5
-15
-44
-16
17
23
21
-13
- Childcare
- Housework
201
203
189
101
-19
130
27
143
103
157
221
85
181
- Education
12
46
55
-51
-14
-16
-39
-78
-69
-65
-45
-28
-64
- Old age
80
43
25
-45
-34 -103
-58
-22
170
180
76
174
-56
15
-27
182
125
163
193
131 -103
-49
126
-71
24
August 2012
241
8-4
Employment rate
Source: Statistics Korea (employment trend)
8-5
Unemployment rate
Source: Statistics Korea (employment trend)
8-6
Economic Bulletin
25
9. Financial market
9.1 Stock market
The Korean stock price index in July rose 1.5 percent to 1,882 points from the previous
months 1,854 points.
The Korean stock market fell into a slump amid concerns over a domestic economic
slowdown after the Bank of Koreas decision to cut its key interest rate. However, the stock
market later rebounded as foreign investors shifted to a net buying position and Koreas
current account surplus hit a record high in June.
Foreign investors sold a net 1 trillion won worth of Korean stocks in June, but shifted to a net
buying position the following month, purchasing a net 600 billion won worth of stocks.
(End-period, point, trillion won)
KOSPI
KOSDAQ
Jun 2012
Jul 2012
Change
Jun 2012
1,854.0
1,882.0
28.0 (+1.5%)
489.2
467.6
-21.6 (-4.4%)
Market capitalization
1,068.3
1,086.4
18.1 (+1.7%)
106.0
101.9
-4.1 (-3.9%)
4.1
4.1
0 (0%)
1.71
1.73
0.02 (+1.2%)
33.8
34.2
0.4 (+1.2%)
8.03
7.92
-0.11 (-1.4%)
Jul 2012
Change1
2009
2010
2011
Dec
Dec
Dec
Dec
Jun
2012
Jul
Change1
Won/Dollar
1,259.5
1,164.5
1,134.8
1,151.8
1,145.4
1,130.6
1.9
Won/100 Yen
1,396.8
1,264.5
1,393.6
1,481.2
1,443.3
1,445.2
2.5
1. Appreciation from the end of the previous year (%); the exchange rate is based on the closing price at 3:00 p.m., local time.
26
August 2012
9-1
Stock prices
9-2
9-3
Economic Bulletin
27
2007
2008
2009
2010
2011
Dec
Dec
Dec
Dec
Dec
Dec
Jun
2012
Jul
Change1
4.60
5.02
3.02
2.01
2.51
3.29
3.26
3.02
-24
CD (91 days)
4.86
5.82
3.93
2.88
2.80
3.55
3.54
3.20
-34
4.92
5.74
3.41
4.44
3.38
3.34
3.30
2.85
-45
5.29
6.77
7.72
5.56
4.27
4.21
3.87
3.44
-43
5.00
5.78
3.77
4.98
4.08
3.46
3.42
2.97
-45
M12
2008
2009
2010
2011
2012
Annual
Annual
Annual
Q4
Annual
Q2
Q3
Q4
Q1
Apr
May
May1
-1.8
16.3
11.8
11.2
6.6
7.5
4.8
2.6
1.8
2.8
3.54
438.54
1,782.84
2,358.64
M2
14.3
10.3
8.7
7.4
4.2
3.5
3.8
4.4
5.3
5.5
5.5
Lf 3
11.9
7.9
8.2
7.1
5.3
4.3
5.3
6.2
7.5
8.6
8.44
Bank deposit growth accelerated in June as instant access deposits surged due to increased
fiscal spending by the government. Meanwhile, despite a small decrease in money market
funds (MMF) due to slower inflows of corporate funds, asset management company (AMC)
deposits maintained an upward track as inflows into stock-type funds increased.
(Monthly change, end-period, trillion won)
2009
Annual
2010
Annual
2011
Jun
Annual
2012
Jun
May
Jun
Jun1
Bank deposits
54.8
36.9
5.4
58.9
6.7
11.6
13.2
1,122.0
AMC deposits
-27.6
-16.7
-9.5
-16.6
-1.9
3.6
3.1
1,311.9
28
August 2012
9-4
Interest rates
Source: The Bank of Korea
9-5
9-6
Economic Bulletin
29
2011
2012
Annual
Annual
Q1
Q2
Q3
Q4
Q1
Q2
May
Jun1
Jan-Jun1
Current account
29.39
26.51
2.61
5.49
7.00
11.52
2.56
11.14
3.57
5.84
13.7
- Goods balance
40.08
30.95
5.84
7.66
7.20
10.25
2.62
8.48
1.72
5.01
11.09
- Service balance
-8.63
-4.38
-2.54
-0.80
-1.20
0.15
-0.65
2.31
1.59
0.17
1.66
- Income balance
1.02
2.46
0.39
-0.82
1.31
1.58
1.48
0.82
0.34
0.90
2.31
-3.08
-2.52
1.08
-0.55
-0.42
-0.47
-0.89
-0.47
-0.08
-0.25
-1.36
Current transfer
1. Preliminary
The capital and financial account (preliminary) in June posted a net outflow of US$5.24 billion.
Capital & financial account balance (US$ billion)
1.31 (Jan 2012)
-0.92 (Feb)
-1.76 (Mar)
0.16 (Apr)
-2.90 (May)
-5.24 (Jun)
Net outflow in direct investment narrowed to US$0.69 billion from the previous months
US$1.38 billion due to an increase in foreign direct investment.
The portfolio investment account posted a net outflow of US$2.33 billion, up from US$0.94
billion a month earlier, as investment in foreign bonds increased.
The financial derivatives account, which had registered a net outflow of US$0.39 billion in
May, achieved a balance in June. The other investment account showed a similar level of net
outflow as the previous month, rising from US$1.60 billion to US$1.67 billion, as domestic
banks reduced both lending and borrowing.
The current account in July is expected to maintain a surplus, helped by a goods account
surplus resulting from a trade surplus.
30
August 2012
Economic Bulletin
31
4.0 (Feb)
3.9 (Mar)
3.8 (Apr)
3.7 (May)
3.7 (Jun)
3.6 (Jul)
5.2 (Feb)
3.5 (Mar)
1.7 (Apr)
2.1 (May)
-1.2 (Jun)
(%)
2011
2012
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
Month-on-Month
0.5
0.7
Year-on-Year
4.5
4.7
3.8
3.6
3.5
4.9
-0.1 -0.2
0.1
0.4
0.5
0.4
-0.1 0.0
0.2
-0.1 -0.2
3.6
4.2
4.2
3.4
3.1
2.6
2.5
2.5
2.2
1.5
3.3
3.2
3.5
3.6
3.2
2.5
1.9
1.8
1.6
1.5
1.2
2.8
2.6
2.6
2.8
2.7
2.5
2.6
1.7
1.6
1.5
1.4
1.2
5.2
3.8
3.6
4.5
4.4
3.3
2.8
2.0
2.0
2.2
1.8
0.8
The prices of overall agricultural, livestock & fishery products excluding some vegetables
declined month-on-month.
The prices of manufactured products fell at a faster pace, led by oil products, pharmaceuticals
and other manufactured products.
Housing rents rose at the same pace as in previous years. Personal service prices excluding
dining out costs slightly increased.
Agricultural,
Oil
livestock & fishery Manufactured
products products
products
Public
utilities
Housing
rents
Public
services
Personal
services
-0.2
-1.6
-1.0
-4.1
2.0
0.2
-0.2
0.4
Contribution (%p)
-0.19
-0.13
-0.33
-0.24
0.10
0.02
-0.03
0.12
Year-on-Year (%)
1.5
1.5
1.4
-0.7
6.2
4.2
0.3
0.6
Contribution (%p)
1.53
0.12
0.46
-0.04
0.30
0.39
0.04
0.18
32
August 2012
11-1 Prices
Source: Statistics Korea (consumer prices, core inflation) & The Bank of Korea (producer prices)
Economic Bulletin
33
After Irans threat to block the Strait of Hormuz, the US announced tighter sanctions on Iran
and made military threats against Iran.
(US$/barrel, period average)
2009
2010
2011
Annual
Annual
Annual
Jan
Feb
Mar
2012
Apr
May
Jun
Jul
Dubai crude
61.9
78.1
105.9
109.5
116.2
122.5
117.3
107.3
94.4
99.1
Brent crude
61.7
79.7
110.0
111.0
119.3
124.9
120.0
109.7
95.2
102.7
WTI crude
61.9
79.5
95.1
100.4
97.4
106.3
103.4
94.7
82.4
87.9
Due to rising international oil product prices, domestic oil product prices continued to rise
after mid-July and surpassed 1,900 won per liter.
(Won/liter, period average)
2010
2011
2012
Annual
Annual
Jan
Mar
Jun
Jul
early-Jul
mid-Jul
late-Jul
Gasoline prices
1,710.4
1,929.3
1,955.1
2,030.0
1,968.8
1,901.4
1,910.1
1,892.6
1,910.0
Diesel prices
1,502.8
1,745.7
1,805.1
1,853.6
1,777.7
1,726.6
1,724.2
1,719.6
1,735.6
International grain prices surged for the second straight month in July due to droughts in
major grain-producing countries, while most non-ferrous metal prices remained weak.
Overall non-ferrous metal prices fell due to concerns over weak demand affected by
deteriorating economic conditions in major countries such as China, the US and the
eurozone and also due to the continuing weak investor sentiment.
Prices of non-ferrous metals in July (m-o-m, %)
Lead (-3.3), nickel (-2.4), aluminum (-1.0), zinc (-0.3), copper (2.3)
International grain prices rose amid continued droughts in major grain-producing areas such as
the US and Russia, and also due to a possible grain export ban by countries such as Russia.
Prices of grain in July (m-o-m, %)
Wheat (31.7), corn (25.5), soybeans (11.4), coffee (15.0), raw sugar (12.5)
Reuters index*
(Period average)
2009
2010
2011
Annual
Annual
Annual
Jan
Feb
Mar
Apr
May
Jun
Jul
2,079
2,553
3,062
2,832
2,935
2,968
2,969
2,912
2,876
3,065
34
August 2012
2012
Economic Bulletin
35
2012
Nationwide
Feb
Mar
Apr
May
Jun
Jul
Jul 21
1.6
2.5
9.6
0.5
0.2
0.2
0.2
0.1
0.0
-0.1
-0.1
-0.02
Seoul
2.6
-2.2
-0.4
-2.1
-0.2
-0.1
-0.2
-0.4
-0.3
-0.3
-0.5
-0.11
Gangnam2
3.9
-1.8
-0.6
-2.5
-0.2
-0.2
-0.3
-0.6
-0.3
-0.4
-0.6
-0.13
Gangbuk
0.9
-2.7
-0.2
-1.6
-0.1
-0.1
-0.2
-0.3
-0.2
-0.2
-0.5
-0.08
0.7
-2.9
0.4
-1.8
-0.2
-0.1
-0.2
-0.4
-0.3
-0.3
-0.4
-0.07
5 metropolitan cities
2.8
8.7
20.3
2.7
0.5
0.5
0.6
0.6
0.3
0.1
0.1
0.02
0.02 -0.01
1. Weekly trends
3. Northern Seoul
0.02
Nationwide apartment rental prices climbed at a faster pace in July (up 0.2%, m-o-m). Rental
prices in the Seoul metropolitan area shifted to a rise (up 0.1%, m-o-m) while the pace of growth
of rental prices in areas excluding the Seoul metropolitan area (up 0.1%, m-o-m) decelerated.
Apartment rental price increase in major districts in Seoul (m-o-m, %)
Gangnam (-0.1), Seocho (-0.1), Songpa (-0.1), Yeongdeungpo (-0.8)
2012
Feb
Mar
Apr
May
Jun
Jul
Jul 21
Nationwide
4.5
8.8
16.2
2.3
0.3
0.4
0.6
0.5
0.2
0.1
0.2
0.02
0.04
0.03
Seoul
8.1
7.4
13.4
0.3
-0.1
0.2
0.2
0.0
-0.1
0.0
-0.1
-0.01
-0.01
-0.03 -0.02
0.03
Gangnam2
10.4
8.8
12.5
0.1
0.0
0.2
0.2
-0.1
-0.1
0.0
-0.1
0.00
-0.02
-0.01 -0.01
Gangbuk3
5.4
5.6
14.6
0.5
-0.1
0.2
0.3
0.2
0.0
-0.1
0.0
-0.02
0.00
-0.04 -0.03
5.6
7.2
13.9
0.7
-0.1
0.3
0.3
0.1
0.0
0.0
0.1
-0.01
0.00
0.00
0.00
5 metropolitan cities
3.9
12.0
18.9
3.5
0.5
0.7
0.7
0.8
0.4
0.2
0.1
0.04
0.05
0.02
0.05
1. Weekly trends
3. Northern Seoul
Apartment sales transactions in June decreased 18.8 percent from the previous months
45,641 to 37,069, and were down 32.9 percent from 55,239 a year earlier.
2009 2010
2011
53
48
65
59
36
August 2012
55
Jul
51
2012
50
55
77
18
Feb
39
45
46
37
Economic Bulletin
37
0.07 (Feb)
0.11 (Mar)
0.11 (Apr)
0.10 (May)
0.10 (Jun)
Land price increases in areas excluding the Seoul metropolitan area slowed down, rising
0.14 percent month-on-month.
Land price increases in areas excluding Seoul metropolitan area (m-o-m, %)
0.12 (Jan 2012)
0.13 (Feb)
0.14 (Mar)
0.14 (Apr)
0.14 (May)
0.13 (Jun)
2009
2010
2011
2012
Q1
Q2
Q3
Q4
Jan-Jun
Q1
Q2
Mar
Apr
May
Jun
Nationwide
-0.31
0.96
1.05
1.17
0.29
0.30
0.29
0.29
0.63
0.30
0.33
0.12
0.12
0.11
0.10
Seoul
-1.00
1.40
0.53
0.97
0.40
0.28
0.17
0.12
0.43
0.17
0.26
0.10
0.10
0.09
0.06
Gyeonggi
-0.26
1.22
1.49
1.47
0.26
0.38
0.43
0.39
0.68
0.34
0.34
0.12
0.12
0.11
0.11
Incheon
1.37
1.99
1.43
0.66
0.17
0.18
0.15
0.15
0.37
0.21
0.16
0.13
0.05
0.06
0.05
Nationwide land transactions in June were 163,000 land lots, down 12.3 percent from the
previous month. On a year-on-year basis, nationwide land transactions were down 17.2
percent from 197,000 a year earlier.
Land transactions decreased in Seoul (down 12.0%, m-o-m), Gwangju (down 20.6%,
m-o-m), Gangwon Province (down 17.5%, m-o-m), and South Jeolla Province (down 24.2%, m-o-m).
Transactions of vacant land decreased 10.6 percent year-on-year to 75,000 lots, making up
46.4 percent of the total amount of transactions.
2011
2012
Jul
Aug Sep
Feb Mar
208
203
187
208
198
197
184
183
171
184
195
240
129
165
187
182
186
163
Seoul
26
22
16
18
17
16
14
15
14
15
15
19
12
14
15
15
13
Gyeonggi
45
46
41
43
39
38
37
36
36
37
39
48
24
30
37
36
35
32
Incheon
13
10
10
10
10
1. Monthly average
Source: Korea Land & Housing Corporation
38
August 2012
Economic Bulletin
39
The cyclical indicator of the leading composite index in June rose 0.5 points from the
previous month.
Three components of the leading composite index, including the value of construction
orders received, increased while six components, such as the domestic shipment of
machinery, were lower compared to the previous month.
Components of the leading composite index in June (m-o-m)
Value of construction orders received (8.9%), indicator of inventory cycle (2.4%p), ratio of export to import
prices (1.8%), consumer expectations index (-0.5p), spreads between long & short term interest rates
(-0.1%p), KOSPI (-3.0%), international commodity prices (-3.7%), ratio of job openings to job seekers
(-0.3%p), domestic shipment of machinery (-1.4%)
2011
2012
Nov
Dec
Jan
Feb
Mar
Apr1
May1
Jun1
-0.3
0.1
1.0
1.3
-1.1
-0.2
0.5
-0.3
3.7
1.6
-1.0
8.7
0.5
0.4
1.8
0.1
0.0
0.4
0.1
0.8
0.1
0.2
-0.1
0.3
99.8
99.8
99.6
100.0
99.6
99.4
98.9
98.9
(m-o-m, p)
-0.5
0.0
-0.2
0.4
-0.4
-0.2
-0.5
0.0
0.2
0.4
0.7
1.0
0.4
0.4
0.1
1.0
99.0
99.0
99.2
99.9
99.8
99.8
99.5
100
(m-o-m, p)
-0.2
0.0
0.2
0.7
-0.1
0.0
-0.3
0.5
1. Preliminary
40
August 2012
Economic Bulletin
41
Featured Issue
Korea-China Economic Relations of 20 Years:
Past and Future
Chang-Kyu Lee
Director, Center for Emerging Economies Research
Korea Institute for International Economic Policy
The year 2012 marks the 20th anniversary of the establishment of diplomatic ties between
Korea and China. During the past two decades, economic relations between Korea and China
have progressed quite rapidly. Lets see the volume of trade and foreign investment, the
measurement of bilateral economic relations. The bilateral trade volume has soared at an
explosive rate, increasing by about 35 times from a mere US$6.4 billion in 1992 to US$221
billion in 2011. China has become the largest trading partner of Korea.
In terms of foreign direct investment, the outflow of capital from Korea to China grew about
25 times from US$141 million to US$3.6 billion in the period of 1992-2011. Meanwhile, the
outflow of capital from China to Korea has been relatively insignificant. It can be said that
most capital movement has been dirested toward China from Korea.
Since the establishment of formal diplomatic ties in 1992, several sectoral agreements, such
as the investment protection agreement and marine transportation agreement, were also
concluded. Such institutional supports by the Korean and Chinese governments clearly
constructed a foundation for the future promotion of economic exchanges between the
two nations.
Nonetheless, the dominant factors in the explosive growth of bilateral economic exchanges
would, after all, be economic factors, such as mutually complementary economic structures
of the two countries and geographical closeness. The Korea-China relations since 1992 may
42
August 2012
be an excellent example of how opening an economy and promoting free trade can
significantly advance economic welfare, as is well explained in economic textbooks.
Korea-China economic relations inevitably experienced fluctuations of one kind or another
during the past two decades. In 2001, however, China became a member of the WTO, which
clearly motivated some Korean companies to make decisions to move their production
facilities from Korea into mainland China. At that time, a significant number of Korean
companies had been suffering from rising production costs, resulting in the erosion of their
competitiveness in the global market. Therefore moving into China actually allowed some
Korean companies to get second business opportunities.
On the other hand, China also has clearly benefited from the inflow of foreign direct
investments by Korean companies, which has created lots of jobs and promoted some
regional economic development in China, for example, Shandong province and the
northeastern provinces. It goes without saying that the Korean investment has in general
been accompanied by advanced technologies and management skills, and their spillovers
have obviously helped further economic development in China.
In 2008, the global economy was hit by a financial crisis of unprecedented nature. China,
however, was able to recover from the crisis through its prompt and timely implementation
of a huge fiscal stimulus. Some observers maintained that Chinas capability to recover from
the global financial crisis demonstrated the real strength of the Chinese economy. Since the
outbreak of the global financial crisis, Korean companies have made every effort to take
advantage of Chinas stimulative economic policies and achieved some degree of success in
capturing part of the huge Chinese market, which obviously contributed to the relatively
quick recovery of the Korean economy from the global financial crisis.
It is, however, quite difficult to predict the future of Korea-China economic relations. Some
uncertainties lie ahead. China isnt just the worlds factory anymore; it is a huge market.
Despite being not so successful in Chinas domestic market so far, tapping into the Chinas
huge market will be the best strategy for the Korean firms. The future of the economic ties
between the two countries will mainly depend on the outcome of this strategy.
Economic Bulletin
43
Policy Issues
2012 Tax Revision Plan
Background
Uncertainties surrounding the global economy have increased as the deepening European
debt crisis has affected global financial markets. The US economic recovery has been
restrained by weak job growth, and emerging economies including China have experienced a
slowdown due to decreasing exports. Meanwhile, the domestic economic recovery has been
restrained by unfavorable global economic conditions, although employment, led by the
service sector, has been improving. There has been a growing need to boost domestic
demand and support the working class. Against this backdrop, the Korean government has
unveiled the 2012 tax revision bill with four main focuses aimed at successfully dealing with
the global economic slump and restructuring the tax system.
The first focus is to create jobs and develop growth engines. The 2012 tax revision bill
encourages job creation, R&D investment to explore future growth engines, and the start of
venture and small businesses.
The second focus is to boost domestic demand and support middle and low income classes.
To this end, the tax revision bill was designed to stimulate sound consumption and real
estate while increasing support for the working classes and vulnerable groups.
Next, the government will emphasize improving fiscal health by increasing tax transparency
and reviewing tax exemptions and reductions.
The last focus is to transform the current tax system into one that is more appropriate for an
advanced society. Improving the capital income tax system is one of the main subjects of the
2012 tax revision bill, along with changes in the pension and retirement allowance tax
system to prepare for the ageing population.
44
August 2012
Economic Bulletin
45
funds and bonds will be exempt until the end of 2014. Hybrid cars will be eligible for an
exemption on the individual consumption tax of up to 1.3 million won for three more years
until the end of 2015, while buses using natural gas will be exempt from the value added tax
for the same period. The gasoline tax refund for cars with engines smaller than 1,000 cc will
be extended by two years until the end of 2014.
R&D related tax incentives will be provided for three more years until the end of 2015, while
a new R&D tax incentive for leading enterprises will be adopted with the tax deduction of 8
percent of the total investment.
Angel investors will receive increased income tax deductions for up to 30 percent of their
investment. Tax incentives for venture startups will be extended for two years until the end
of 2014, while newly established SMEs will be given a 50 percent tax reduction for five years,
an increase from four years, until the end of 2015.
There will be an increased tax deduction, from 3 percent to 7 percent, for facility investment
by SMEs which is aimed at preventing technology theft, while all facility investment by SMEs
will receive an extended tax deduction for three more years until the end of 2015. The
income transfer tax on fixed business assets incurred by a merger between SMEs will be
transferred to the acquiring company, and the same will apply when private businesses
convert into corporations. The payment of the income transfer tax will be made when the
acquiring corporations sell those assets.
2. Boosting Domestic Demand and Supporting the Middle and Low Income Classes
Boosting domestic demand
To boost domestic demand, the 2012 bill includes an individual consumption tax exemption
for high energy efficiency electronics, while the individual consumption tax on heavy energy
consuming electronics will be maintained until the end of 2015 to promote energy
conservation. The individual consumption tax on golf club fees will also be postponed
temporarily until the end of 2014. Corporate spending on employee activities such as dinner
or lunch gatherings and employment welfare spending on dispatched workers will be
regarded as business expenses.
The heavy property transfer tax on multiple home owners, introduced during the housing
boom, will be lifted and the basic tax rate of 6-38 percent will be applied, while high transfer
tax rates for the short-term ownership of properties will be eased from 50 percent to 40
percent for transfers that occur within a year. The rate for houses transferred to new
ownership within two years will also be eased to the basic rate of 6-38 percent from 40
percent. However, for houses purchased by the end of 2014, the basic rate will be applied
even when they are transferred in less than a year. The heavy transfer tax of 60 percent on
vacant land will be abolished, and the basic rate will be applied with a special deduction for
46
August 2012
Economic Bulletin
47
The R&D tax deduction will be adjusted to a more appropriate level, by reflecting an
increased investment amount in the previous year instead of an averaged increase during
the past four years. However, when the R&D expenditure in the previous year is less than
the annual average of the previous four years, the fixed deduction rate of 3-6 percent for
large enterprises and 25 percent for SMEs will be applied.
The tax system for bond yields will be revised. For yields from long-term bonds of more than
10 years, bond holders will be able to choose a 30 percent rate taxed separately from their
total income on the yields generated after more than 3 years of ownership. This revision is
aimed at encouraging long-term investment. Currently, such an option is available
regardless of the period of ownership. Yields from inflation-linked government bonds, being
taxed only on interest accrued, will be taxed both on interest and principal increases
produced by inflation beginning in 2015.
4. Improving Taxation System
The amount of aggregate taxable financial income will be reduced to 30 million won from 40
million won. The definition of major shareholders who will be liable for capital gains tax
incurred from stock transactions will be revised to include those who hold more than 2
percent of outstanding shares or the equivalent of 7 billion won. Taxes on equity derivatives
transactions will be newly introduced, but the tax rate will be set low in order to promote tax
fairness among financial products. The period where overseas fund profits can be offset with
the previous losses will be extended until December 31, 2013. To promote a stable long-term
foreign currency supply, certified foreign currency deposits of one year or longer will be
exempt from taxes on interest gains.
While the flat tax rate of 9 percent has been applied to net profits of cooperatives, in order to
achieve fairness with other corporate taxes, the 15 percent tax rate will be applied to the
cooperatives tax base exceeding 200 million won with a three year grace period ending on
December 31, 2015. The depreciation period for each industry will be adjusted to reflect the
period companies are actually applying to their accounting. To achieve fair taxation, the
loan-loss provision for financial companies will be reduced from 2 percent to 1 percent, the
(%)
VAT rate
Revised
20 (For retail, 15 %
48
August 2012
30
40
Manufacturing, Agriculture,
Accommodation, Transportation
Construction, Rent services and others
VAT rate
5
10
20
30
same rate as general corporations. Taxation for foreign consortiums will be improved by
clarifying the classification of those consortiums into corporations, according to which their
profits are subject to corporate taxes or personal income taxes. The value added tax system
will be revised to be more reasonable.
Tax refund offices will be set up in urban areas so that foreign tourists can receive refunds
for value-added tax paid on the goods that they purchased in the country.
Total
2013
2014
2015
2016
2017
Income tax
0.09
-0.09
0.14
0.03
0.01
Corporate tax
1.12
0.39
0.60
0.02
0.02
0.09
VAT
0.03
0.03
Gift tax
0.24
0.23
0.01
Others
0.17
-0.39
0.16
0.21
0.17
0.01
Total
1.66
0.19
0.90
0.23
0.23
0.11
<Tax burden>
(trillion won)
Others **
Total
-0.24
1.65
0.25
1.66
(-14.5%)
(99.8%)
(14.7%)
(100%)
Between August and September 2012, the government will make a preliminary
announcement of the revisions, which will then be reviewed by the cabinet after consulting
with the ministries. At the end of September this year, the tax revisions will be submitted to
the National Assembly.
Economic Bulletin
49
Economic
News Briefing
50
August 2012
2010
Q2
Q1
Q3
Q1
Q4
Q2
20121
Q3
Q4
Q1
Q2
2.2(8.7) 1.4(7.6) 0.7(4.5) 0.6(4.9) 1.3(4.2) 0.8(3.5) 0.8(3.6) 0.3(3.3) 0.9(2.8) 0.4(2.4)
2
GDP
-2.1
-2.1
-2.9
0.5
-3.0
4.5
-5.2
8.2
-5.6
2.1
Manufacturing
4.2
3.7
2.1
0.5
3.3
1.2
1.1
-0.3
2.0
-0.1
Construction
0.5
-0.7
-1.8
-2.6
-4.3
1.8
2.8
-0.2
-1.7
-2.1
Services
1.7
0.3
0.4
1.0
1.0
0.3
0.4
0.7
1.1
0.5
Private consumption
0.7
0.7
1.2
0.4
0.6
0.8
0.2
-0.4
1.0
0.5
Government consumption
3.0
0.3
-0.2
0.5
0.7
0.8
1.2
-0.8
3.4
-0.2
Facility investment
4.4
7.3
4.6
-0.2
-1.6
4.7
-1.8
-4.3
10.3
-6.4
Construction investment
1.0
-4.0
-0.9
-1.9
-4.4
3.5
-0.5
0.1
-1.2
0.3
Exports of goods
3.2
7.3
2.6
3.2
4.1
0.4
2.1
-2.7
4.2
-1.4
Imports of goods
5.3
6.2
3.4
0.4
3.2
2.7
1.4
-3.6
4.0
-1.6
1.8
1.3
0.3
0.3
-0.1
0.5
0.6
0.6
0.2
1.0
Economic Bulletin
51
institutions, the government will increase its investment in the Korea Housing Finance
Corporation (KHFC) and establish rules for issuing covered bonds, while encouraging banks
to extend more fixed-rate and long-term loans. Financial institutions are also encouraged to
reserve sufficient loan-loss provisions.
The government will provide business consulting programs to support the self-employed
and strengthen risk management in financial companies. Meanwhile, the government will
minimize the impact of the housing market slump and continue to implement measures to
boost the housing market. In addition, microfinance programs will be strengthened to cover
those who are financially excluded, such as wage workers and small merchants. The size of
funds for microfinance programs will expand from 3 trillion won to 4 trillion won.
52
August 2012
process with the financial regulators when their documents are submitted to Fn Hub Korea
for verification of qualification. However, the new procedure no longer requires a review
process and allows the card to be issued immediately for those who meet the requirements.
It is expected to shorten the time for issuing the card from an average of 21 days to a
maximum of 10 days.
The new system also expands the scope of card grantees based on the size of operation
funds of foreign financial companies. Employees recommended by the head of a branch
office whose operation funds exceed 150 billion won are eligible for the express card. In
addition, F-5 visa holders who were previously not entitled to the express card are now
eligible for it. The qualification-verifying step is waived for those who changed their passport
numbers, after losing passports and the cards will be immediately re-issued on request.
Economic Bulletin
53
Statistical
Appendices
Tables & Figures
1. National accounts
2. Production, shipment and inventory
3. Production capacity and operation ratio
4. Consumer goods sales index
5. Consumer goods shipment index and consumer sentiment index
6. Machinery orders received, domestic machinery shipment,
and estimated facility investment index
7. Value of construction completion and domestic construction orders received
8. Composite indices of business cycle indicators and BSI
9. Balance of payments (I)
10. Balance of payments (II)
11. Prices
12. Employment
13. Financial indicators
14. Monetary indicators
15. Exchange rates
Economic Bulletin
55
1. National accounts
(year-on-year change, %, chained 2005 year prices)
Real GDP
Period
2004
2005
2006
2007
2008
2009
2010
2011P
Final
consumption
expenditure
Agri., fores.
& fisheries
Manufacturing
4.6
4.0
5.2
5.1
2.3
0.3
6.3
3.6
9.1
1.3
1.5
4.0
5.6
3.2
-4.4
-2.0
10.0
6.2
8.1
7.2
2.8
-1.5
14.7
7.2
1.0
4.6
5.1
5.1
2.0
1.2
4.1
2.2
Construction
Facilities
2.1
1.9
3.4
4.2
-1.9
-1.0
5.8
-1.1
1.3
-0.4
0.5
1.4
-2.8
3.4
-3.7
-5.0
3.8
5.3
8.2
9.3
-1.0
-9.8
25.7
3.7
2004
I
II
III
IV
5.2
5.9
4.8
2.7
8.2
7.6
8.3
11.6
10.9
12.9
10.4
6.2
-0.1
1.3
1.0
1.8
2.3
4.9
3.1
-1.4
5.3
4.2
1.2
-3.5
-0.6
6.4
7.7
1.8
2005
I
II
III
IV
2.7
3.4
4.5
5.1
0.4
4.8
3.8
-3.1
4.8
3.9
6.7
9.3
2.7
4.7
5.9
4.9
-0.3
1.8
1.5
3.9
-3.1
0.9
-0.3
0.3
3.4
2.8
4.1
10.8
2006
I
II
III
IV
6.1
5.1
5.0
4.6
3.9
-0.3
-1.4
4.2
9.4
9.1
8.7
5.4
5.8
4.9
4.6
5.1
3.8
0.1
4.0
5.7
1.9
-4.2
-0.5
5.1
7.2
8.0
12.0
5.7
2007
I
II
III
IV
4.5
5.3
4.9
5.7
1.6
7.0
8.2
-0.7
4.5
7.2
6.3
10.2
5.1
5.4
5.3
4.7
7.3
5.7
1.5
3.1
4.4
2.0
-0.2
0.4
12.6
13.0
4.0
8.0
2008
I
II
III
IV
5.5
4.4
3.3
-3.3
7.8
4.6
4.3
6.5
8.9
8.3
5.3
-9.4
4.3
3.0
2.4
-1.7
-0.6
0.6
2.1
-8.7
-2.5
-0.5
0.4
-7.7
2.8
2.0
5.3
-13.3
2009
I
II
III
IV
-4.2
-2.1
1.0
6.3
2.5
0.0
5.0
5.0
-13.6
-7.1
1.8
13.1
-2.2
0.7
1.5
4.8
-7.5
-3.0
-1.0
6.2
1.6
4.3
3.2
4.0
-21.9
-18.1
-9.4
12.2
2010
I
II
III
IV
8.7
7.6
4.5
4.9
-0.1
-2.2
-7.8
-5.9
22.4
17.6
9.5
11.0
6.1
3.6
3.5
3.0
11.2
5.8
5.6
2.3
1.8
-4.7
-4.9
-5.2
29.6
32.0
26.3
16.9
2011P
I
II
III
IV
4.2
3.5
3.6
3.3
-7.9
-1.9
-4.1
3.7
10.0
7.5
6.3
5.4
2.6
2.7
2.3
1.3
-2.1
0.7
-1.5
-1.8
-11.0
-4.2
-4.0
-2.1
10.3
7.7
1.2
-3.3
2012P
I
II
2.8
2.4
0.7
-1.5
4.1
2.7
2.2
1.8
4.6
-1.5
1.5
-1.4
8.6
-2.9
P: Preliminary
Source: The Bank of Korea
56
August 2012
Economic Bulletin
57
2. Production, shipment and inventory See graphs 6-1, 6-3, 7-1, 7-2 & 7-3
(constant prices, 2005 = 100)
Period
Production
index
2010
2011
Y-o-Y
change (%)
Shipment
index
Y-o-Y
change (%)
Inventory
index
Y-o-Y
change (%)
Service
production
index
Y-o-Y
change (%)
139.1
148.8
16.2
6.9
133.5
142.1
14.4
6.5
135.6
163.6
17.4
20.7
122.9
127.0
3.9
3.3
2010
I
II
III
IV
129.8
141.0
139.0
146.6
25.4
18.8
10.9
11.7
124.0
135.1
132.7
142.0
20.9
15.9
9.9
11.9
124.6
127.7
134.6
135.6
7.5
17.5
19.1
17.4
119.9
122.9
121.6
127.3
6.2
4.2
2.3
3.2
2011
I
II
III
IV
143.6
151.2
146.1
154.0
10.6
7.2
5.1
5.0
138.7
144.8
139.3
146.4
11.9
7.2
5.0
3.3
137.4
142.7
149.0
163.6
10.3
10.0
10.7
20.7
123.1
126.8
127.1
130.8
2.8
3.2
4.5
2.7
2012
I
II
149.1
153.4
3.8
1.5
142.5
146.4
3.0
1.4
159.0
157.1
16.0
10.8
126.2
128.7
2.5
1.5
2010
1
2
3
4
5
6
7
8
9
10
11
12
129.3
119.1
141.1
140.0
140.0
142.9
143.1
136.5
137.3
145.3
145.3
149.2
37.0
18.3
22.4
19.5
20.6
16.5
14.8
15.9
2.9
13.4
11.2
10.7
123.1
113.6
135.2
134.7
133.4
137.3
135.7
131.0
131.4
140.8
141.4
143.9
31.4
13.3
18.8
16.5
17.2
13.9
13.0
15.3
2.4
13.5
11.7
10.6
119.8
123.3
124.6
126.3
129.9
129.7
134.1
134.5
134.6
133.5
132.8
135.6
-3.3
4.8
7.5
12.5
16.5
17.5
20.3
20.1
19.1
18.8
16.9
17.4
118.5
116.7
124.4
121.5
123.3
124.0
122.4
120.9
121.6
123.2
123.8
134.9
5.7
6.2
6.6
3.8
4.8
4.0
3.8
3.3
-0.2
3.3
3.8
2.5
2011
1
2
3
4
5
6
7
8
9
10
11
12
146.9
129.8
154.0
149.7
151.5
152.3
148.7
142.9
146.8
154.6
153.7
153.7
13.6
9.0
9.1
6.9
8.2
6.6
3.9
4.7
6.9
6.4
5.8
2.8
141.4
125.2
149.6
144.6
144.4
145.4
135.9
136.5
141.3
147.0
145.8
147.0
14.9
10.2
10.7
7.3
8.2
5.9
3.1
4.2
7.5
4.4
3.1
2.4
135.4
137.1
137.4
137.3
140.2
142.7
147.2
150.4
149.1
153.1
157.4
163.6
13.0
11.2
10.3
8.7
7.9
10.0
9.8
11.8
10.8
14.7
18.5
20.7
124.1
116.9
128.2
125.2
127.4
128.4
127.0
126.8
126.2
127.4
127.2
137.1
4.7
0.2
3.1
3.0
3.3
3.5
3.8
4.9
3.8
3.4
2.7
1.6
143.7
148.4
155.2
149.6
155.9
154.6
-2.1
14.4
0.6
0.0
2.9
1.6
137.2
141.7
148.5
142.8
149.0
147.5
-2.6
13.5
-0.5
-1.0
3.5
1.7
164.0
164.0
159.0
158.6
160.7
157.1
21.4
20.0
16.0
16.2
15.3
10.8
124.7
123.6
130.4
126.7
129.8
129.7
0.6
5.6
1.6
1.0
2.3
1.2
2012
1
2
3
4
5P
6P
P: Preliminary
Source: Statistics Korea
58
August 2012
Period
Y-o-Y
change (%)
Operation
ratio index
(2005=100)
Y-o-Y
change (%)
Average
operation
ratio (%)
128.7
135.7
7.9
5.4
101.7
100.5
8.4
-1.2
80.9
79.9
Production
capacity index
(2005=100)
2010
2011
2010
I
II
III
IV
124.9
127.3
130.4
132.1
6.8
7.9
8.6
8.1
97.1
105.3
99.3
105.0
18.8
10.5
1.5
4.7
80.3
81.9
80.6
80.8
2011
I
II
III
IV
133.7
135.2
136.0
138.1
7.0
6.2
4.3
4.5
99.0
103.7
98.0
101.4
2.0
-1.5
-1.3
-3.4
82.2
79.9
79.6
78.0
2012
I
II
138.3
139.6
3.4
3.3
97.6
101.1
-1.4
-2.5
79.9
78.9
2010 1
2
3
4
5
6
7
8
9
10
11
12
124.2
124.5
125.9
126.3
127.4
128.3
129.5
130.6
131.1
131.6
131.9
132.9
6.2
6.5
7.5
7.3
8.2
8.3
8.5
9.0
8.3
8.2
8.2
8.0
96.9
88.1
106.4
105.8
103.5
106.7
104.9
96.1
96.8
106.1
104.8
104.2
31.5
10.4
16.2
12.4
10.9
8.4
6.2
5.6
-6.6
7.1
4.3
3.0
79.2
80.5
81.2
81.7
81.7
82.2
81.7
80.4
79.7
79.5
80.5
82.3
2011 1
2
3
4
5
6
7
8
9
10
11
12
133.1
133.4
134.5
135.0
135.2
135.4
135.7
135.8
136.6
137.8
138.2
138.2
7.2
7.1
6.8
6.9
6.1
5.5
4.8
4.0
4.2
4.7
4.8
4.0
101.6
88.5
106.8
103.0
103.1
104.9
101.0
95.3
97.6
102.9
101.9
99.5
4.9
0.5
0.4
-2.6
-0.4
-1.7
-3.7
-0.8
0.8
-3.0
-2.8
-4.5
83.6
81.8
81.3
79.4
79.9
80.5
79.9
79.8
79.0
78.8
78.4
76.9
2012 1
2
3
4
5P
6P
138.2
138.3
138.5
138.7
139.7
140.3
3.8
3.7
3.0
2.7
3.3
3.6
92.6
97.6
102.6
98.8
102.5
101.9
-8.9
10.3
-3.9
-4.1
-0.6
-2.9
80.5
81.0
78.1
79.2
79.4
78.2
P: Preliminary
Source: Statistics Korea
Economic Bulletin
59
4. Consumer goods sales index See graphs 2-2, 2-3, 2-4 & 2-5
(constant prices, 2005 = 100)
Period
2010
2011
Consumer
goods
sales
index
Y-o-Y
change (%)
Durable
goods
Y-o-Y
change (%)
Semi-durable
goods
Y-o-Y
change (%)
Non-durable
goods
Y-o-Y
change (%)
121.2
126.4
6.7
4.3
157.1
174.0
14.8
10.8
113.5
118.3
6.8
4.2
113.8
115.0
2.2
1.1
2010
I
II
III
IV
116.6
118.8
120.4
128.8
9.5
4.8
7.6
5.2
148.7
149.9
158.5
171.5
29.6
5.6
17.0
10.6
105.9
114.6
100.4
133.3
2.7
6.4
6.5
10.9
110.8
112.9
118.0
113.4
2.9
3.4
3.2
-0.4
2011
I
II
III
IV
122.9
125.6
126.0
131.2
5.4
5.7
4.7
1.9
167.3
175.9
175.6
177.3
12.5
17.3
10.8
3.4
112.0
120.3
104.5
136.5
5.8
5.0
4.1
2.4
112.4
112.2
120.1
115.3
1.4
-0.6
1.8
1.7
2012
I
II
125.3
126.9
2.0
1.0
173.3
179.7
3.6
2.2
112.8
120.8
0.7
0.4
115.0
113.4
2.3
1.1
2010
1
2
3
4
5
6
7
8
9
10
11
12
115.5
113.9
120.3
116.5
121.2
118.8
120.8
116.6
123.9
125.8
127.8
132.9
6.5
12.5
9.7
7.3
3.6
3.7
9.0
9.3
4.8
4.3
6.9
4.6
145.5
141.4
159.2
144.5
147.1
158.0
163.9
154.4
157.1
165.3
171.9
177.3
39.8
21.9
28.4
16.6
2.2
0.0
18.6
26.0
7.7
14.2
12.0
6.1
108.4
99.7
109.6
113.6
120.9
109.2
103.4
90.1
107.6
129.8
133.0
137.0
4.6
2.7
1.0
3.9
6.7
8.8
8.4
4.2
6.4
11.8
9.2
11.7
108.2
111.7
112.6
110.5
116.0
112.1
115.4
116.3
122.3
111.7
111.9
116.7
-5.7
12.6
3.1
3.5
2.6
4.2
4.2
3.0
2.5
-4.2
2.5
0.6
2011
1
2
3
4
5
6
7
8
9
10
11
12
128.2
113.5
126.9
122.6
128.6
125.7
127.5
123.1
127.5
128.8
129.3
135.6
11.0
-0.4
5.5
5.2
6.1
5.8
5.5
5.6
2.9
2.4
1.2
2.0
164.9
153.7
183.2
167.0
175.8
184.9
185.5
173.3
167.9
169.8
183.0
179.0
13.3
8.7
15.1
15.6
19.5
17.0
13.2
12.2
6.9
2.7
6.5
1.0
120.1
101.7
114.1
120.9
126.4
113.7
107.5
93.4
112.6
134.7
130.2
144.6
10.8
2.0
4.1
6.4
4.5
4.1
4.0
3.7
4.6
3.8
-2.1
5.5
119.2
104.6
113.3
109.0
115.9
111.7
117.7
119.5
123.1
114.8
112.2
119.0
10.2
-6.4
0.6
-1.4
-0.1
-0.4
2.0
2.8
0.7
2.8
0.3
2.0
129.2
119.6
127.0
123.0
131.4
126.4
0.8
5.4
0.1
0.3
2.2
0.6
168.0
170.8
181.1
167.5
183.7
187.9
1.9
11.1
-1.1
0.3
4.5
1.6
119.4
104.2
114.9
120.1
128.8
113.6
-0.6
2.5
0.7
-0.7
1.9
-0.1
121.9
108.4
114.7
110.6
117.5
112.2
2.3
3.6
1.2
1.5
1.4
0.4
2012
1
2
3
4
5P
6P
P: Preliminary
Source: Statistics Korea
60
August 2012
Period
2010
2011
Domestic consumer
goods shipment index
(2005=100)
Y-o-Y
change (%)
Durable
goods
Y-o-Y
change (%)
Non-durable
goods
Y-o-Y
change (%)
Consumer
sentiment index
122.4
121.1
5.2
-1.1
140.5
135.4
4.0
-3.6
115.2
115.3
5.8
0.1
2010
I
II
III
IV
118.9
120.2
122.6
128.1
10.4
4.7
2.3
3.9
137.3
140.2
140.3
144.1
21.1
0.2
0.6
-2.5
111.4
112.2
115.5
121.7
5.8
7.2
3.1
7.3
2011
I
II
III
IV
121.3
117.9
121.7
123.3
2.0
-1.9
-0.7
-3.7
135.5
135.2
137.1
133.9
-1.3
-3.6
-2.3
-7.1
115.6
111.0
115.5
119.1
3.8
-1.1
0.0
-2.1
2012
I
II
119.9
120.9
-1.2
2.5
135.5
137.6
0.0
1.8
113.6
114.3
-1.7
3.0
2010 1
2
3
4
5
6
7
8
9
10
11
12
124.2
110.7
121.7
120.8
117.6
122.2
122.4
121.3
124.1
129.7
128.7
125.9
15.4
6.6
9.0
7.3
3.6
3.2
2.9
9.4
-4.3
6.6
8.6
-2.9
136.5
130.2
145.1
136.0
136.2
148.4
146.7
134.7
139.6
146.7
145.8
139.9
37.9
12.7
15.4
12.8
-3.2
-6.3
0.3
7.1
-4.4
5.2
-0.6
-10.9
119.2
102.8
112.3
114.8
110.2
111.7
112.7
116.0
117.9
122.9
121.9
120.2
7.4
3.8
5.9
5.0
7.4
9.2
4.4
10.6
-4.2
7.3
13.7
1.3
113
111
110
110
111
112
112
110
109
108
110
109
2011 1
2
3
4
5
6
7
8
9
10
11
12
130.2
106.3
127.3
118.8
115.8
119.2
120.2
122.2
122.6
124.3
121.5
124.2
4.8
-4.0
4.6
-1.7
-1.5
-2.5
-1.8
0.7
-1.2
-4.2
-5.6
-1.4
134.0
126.1
146.5
133.7
132.0
139.9
142.5
132.9
136.0
132.5
131.4
137.8
-1.8
-3.1
1.0
-1.7
-3.1
-5.7
-2.9
-1.3
-2.6
-9.7
-9.9
-1.5
128.7
98.4
119.6
112.8
109.3
110.9
111.3
117.9
117.3
121.0
117.5
118.7
8.0
-4.3
6.5
-1.7
-0.8
-0.7
-1.2
1.6
-0.5
-1.5
-3.6
-1.2
108
105
98
100
104
102
102
99
99
100
103
99
2012 1
2
3
4
5P
6P
7
120.4
117.3
122.1
119.7
123.2
119.9
-
-7.5
10.3
-4.1
0.8
6.4
0.6
-
128.2
136.6
141.6
129.4
139.2
144.1
-
-4.3
8.3
-3.3
-3.2
5.5
3.0
-
117.2
109.5
114.2
115.9
116.9
110.2
-
-8.9
11.3
-4.5
2.7
7.0
-0.6
-
98
100
101
104
105
101
100
Economic Bulletin
61
2011
Estimated
facility investment
index
(2005=100)
Domestic
machinery
shipment
excluding ship
(2005=100)
Total
Public
Private
25,240
2,599
22,641
13,848
133.1
134.2
Manufacturing
2011
I
ll
III
IV
6,445
6,676
5,703
6,416
470
728
404
998
5,975
5,948
5,300
5,418
3,695
3,677
3,109
3,367
126.7
144.5
133.3
127.9
127.8
147.3
128.4
133.2
2012
I
ll
6,292
5,435
960
383
5,332
5,052
2,986
2,771
138.5
143.5
130.3
136.5
2011 1
2
3
4
5
6
7
8
9
10
11
12
2,009
2,045
2,391
1,951
2,113
2,611
1,990
1,800
1,913
1,977
2,317
2,122
115
122
233
99
142
487
152
115
137
301
474
223
1,894
1,923
2,158
1,853
1,971
2,124
1,838
1,685
1,776
1,676
1,843
1,899
1,109
1,146
1,441
1,155
1,186
1,336
1,027
1,006
1,076
966
1,124
1,277
123.3
112.4
144.5
134.4
146.8
152.3
133.7
135.0
131.3
114.8
129.3
139.3
121.5
118.3
143.7
137.5
149.4
154.9
135.2
124.1
125.8
122.5
127.3
149.8
2012 1
2
3
4
5P
6P
2,012
2,490
1,790
1,816
1,883
1,736
115
712
133
98
82
204
1,897
1,778
1,658
1,719
1,801
1,532
1,131
1,013
842
941
972
859
129.3
139.8
146.4
141.3
145.4
143.8
119.7
132.5
138.6
134.0
135.9
139.5
11.0
11.2
12.8
0.7
1.4
2011
2011
I
ll
III
IV
19.5
10.0
3.4
11.5
-10.5
81.1
6.1
-3.1
22.7
4.9
3.2
14.7
26.8
3.1
3.1
21.0
5.4
5.7
-3.1
-4.7
9.2
3.6
-2.9
-3.7
2012
I
ll
-2.4
-18.6
104.5
-47.3
-10.8
-15.1
-19.2
-24.6
9.3
-0.7
2.0
-7.3
2011 1
2
3
4
5
6
7
8
9
10
11
12
15.6
28.0
16.2
9.0
-0.8
21.4
-1.7
6.8
6.1
18.0
33.9
-9.6
-32.1
14.0
-6.3
-22.3
23.4
205.2
44.9
8.0
-19.1
197.7
333.3
-72.8
20.7
29.0
19.3
11.4
-2.2
6.7
-4.3
6.7
8.8
6.4
13.7
24.3
9.8
29.8
40.9
9.4
-10.8
13.1
-3.9
12.0
2.5
0.0
13.6
54.4
19.4
-0.2
-0.2
2.2
11.7
3.5
-3.0
-2.9
-3.2
-10.9
-2.8
-1.0
11.5
14.1
4.0
0.2
8.5
2.2
-0.2
-3.5
-5.3
-4.7
-4.5
-2.0
2012 1
2
3
4
5P
6P
0.1
21.8
-25.1
-6.9
-10.9
-33.5
0.2
485.1
-43.0
-1.2
-42.4
-58.1
0.1
-7.5
-23.2
-7.2
-8.6
-27.9
2.0
-11.6
-41.6
-18.6
-18.1
-35.7
4.9
24.4
1.3
5.1
-1.0
-5.6
-1.5
12.0
-3.5
-2.5
-9.0
-9.9
P: Preliminary
Source: Statistics Korea
62
August 2012
Period
Type of order
Private
Public
Private
35,508
51,273
93,428
28,459
60,333
Public
91,638
2011
Type of order
Domestic
construction
orders received
(total)
Value of
construction
completion
(total)
2011
I
ll
llI
lV
19,088
23,904
21,499
27,146
7,325
9,324
7,841
11,017
10,852
13,182
12,533
14,706
16,276
25,101
19,638
32,413
4,095
6,307
6,593
11,463
11,102
17,509
12,245
19,477
2012
I
ll
19,195
21,887
7,496
8,785
10,778
12,059
22,232
25,304
5,640
5,557
15,959
18,782
2011
1
2
3
4
5
6
7
8
9
10
11
12
6,208
5,247
7,633
7,053
7,430
9,422
6,786
6,901
7,813
8,022
7,945
11,179
2,480
2,015
2,831
2,724
2,817
3,783
2,432
2,513
2,896
2,963
3,250
4,804
3,475
2,991
4,386
3,978
4,222
4,982
4,046
4,056
4,431
4,678
4,300
5,729
4,927
4,088
7,262
6,670
6,984
11,448
5,098
7,300
7,240
7,111
8,745
16,556
1,330
1,397
1,369
1,432
1,895
2,979
1,819
1,504
3,270
2,295
2,948
6,220
2,904
2,546
5,651
4,609
4,598
8,303
3,103
5,509
3,633
4,630
5,668
9,179
5,901
5,978
7,316
6,714
7,139
8,033
2,227
2,364
2,905
2,608
2,822
3,355
3,382
3,363
4,034
3,818
3,997
4,224
7,033
8,193
7,006
6,374
7,186
11,744
1,973
2,175
1,491
1,438
1,063
3,056
4,920
5,912
5,127
4,483
6,028
8,271
-0.7
1.0
4.0
-2.5
9.5
2012
1
2
3
4
5P
6P
2011
2011
I
ll
llI
lV
-6.2
-0.7
-2.4
5.1
-2.1
2.2
0.5
2.5
-9.4
-5.4
-4.7
6.9
-11.8
-1.7
1.5
22.4
-49.2
-8.4
-3.1
54.2
20.2
3.8
6.7
11.3
2012
I
ll
0.6
-8.4
2.3
-5.8
-0.7
-8.5
36.6
0.8
37.7
-11.9
43.7
7.3
2011
1
2
3
4
5
6
7
8
9
10
11
12
-4.5
-14.7
-0.8
-4.0
-4.0
4.7
-8.9
-3.4
5.3
8.8
-0.9
7.1
9.5
-12.6
-2.7
3.8
-0.8
3.3
-9.7
2.2
9.2
3.9
-0.1
3.4
-12.5
-17.2
-0.2
-10.7
-6.9
0.7
-8.3
-7.1
1.3
12.4
-2.3
10.4
-31.9
-16.0
14.2
0.1
-21.0
14.1
-32.8
72.8
-3.9
61.4
14.1
15.0
-46.6
-36.2
-59.6
-21.0
12.7
-12.2
-53.1
12.5
105.4
94.1
44.7
47.6
-33.3
10.7
119.0
3.0
-31.8
46.9
-8.4
101.8
-32.2
52.0
7.1
0.1
-5.0
13.9
-4.1
-4.8
-3.9
-14.7
-10.2
17.3
2.6
-4.2
0.2
-11.3
-2.7
12.4
-8.0
-4.0
-5.3
-14.8
42.8
100.4
-3.5
-4.4
2.9
2.6
48.4
55.7
9.0
0.4
-43.9
2.6
69.4
132.2
-9.3
-2.7
31.1
-0.4
2012
1
2
3
4
5P
6P
P: Preliminary
Source: Statistics Korea
Economic Bulletin
63
Period
Leading
index
(2005=100)
Coincident
index
(2005=100)
Cycle of
coincident
index
(2005=100)
BSI (results)
BSI (prospects)
2008 1
2
3
4
5
6
7
8
9
10
11
12
115.8
115.3
114.7
114.4
113.9
113.0
112.3
112.8
113.7
114.4
114.5
114.9
119.9
120.4
120.7
120.8
120.8
120.4
120.3
120.6
121.1
121.1
120.1
118.1
103.1
103.0
102.9
102.6
102.1
101.4
100.9
100.7
100.7
100.3
99.1
97.1
95.2
95.6
101.1
101.7
98.1
79.1
80.8
83.1
76.8
64.6
53.7
52.4
103.0
94.8
102.1
98.1
104.7
95.3
83.2
80.8
98.3
84.9
63.7
55.0
2009 1
2
3
4
5
6
7
8
9
10
11
12
115.5
116.6
117.4
119.7
121.5
123.7
124.6
125.6
126.7
128.5
130.1
131.0
116.7
116.7
117.7
119.2
120.0
122.0
123.0
123.8
124.7
125.8
126.8
127.5
95.6
95.2
95.6
96.4
96.7
97.7
98.3
98.5
98.8
99.2
99.6
99.7
58.1
62.4
89.0
93.7
100.9
96.6
98.5
96.0
110.5
107.5
103.8
104.8
52.0
66.0
76.1
86.7
103.8
100.2
98.7
99.8
117.0
116.5
109.0
105.9
2010 1
2
3
4
5
6
7
8
9
10
11
12
131.5
131.5
131.5
131.2
131.6
132.1
132.9
133.2
133.5
133.0
133.3
133.5
128.2
129.4
130.2
131.1
131.8
132.4
133.3
133.6
133.6
133.5
134.0
135.0
99.8
100.3
100.5
100.7
100.8
100.9
101.1
100.9
100.5
99.9
99.9
100.2
99.2
98.7
113.1
108.9
111.9
109.4
105.0
98.6
104.1
104.3
103.5
102.1
103.1
102.3
116.2
111.2
113.4
108.9
107.3
100.7
111.1
113.1
107.1
104.2
2011 1
2
3
4
5
6
7
8
9
10
11
12
134.6
134.8
134.7
134.3
134.8
135.7
136.4
136.6
136.6
136.8
137.1
137.7
136.7
137.1
137.6
137.5
138.2
139.1
140.0
140.7
140.7
141.1
141.1
141.7
101.1
100.9
100.8
100.3
100.4
100.6
100.8
100.9
100.4
100.3
99.8
99.8
99.1
92.2
107.8
98.4
98.9
99.6
96.2
86.8
96.4
95.0
93.0
90.1
101.8
98.0
113.5
99.3
104.3
104.3
101.3
98.9
96.3
101.4
96.4
94.8
2012 1
2
3
4
5
6
7
8
138.7
140.1
140.6
141.2
141.3
142.7
-
141.9
143.1
143.3
143.6
143.5
144.0
-
99.6
100.0
99.6
99.4
98.9
98.9
-
88.6
92.2
101.4
97.5
95.7
90.4
82.1
-
88.3
91.0
106.1
98.4
104.7
98.3
89.7
82.7
64
August 2012
9. Balance of payments (I) See graphs 5-1, 5-2, 5-3, 10-1 & 10-2
(million US$)
Period
2010
2011
Current
balance
Goods
trade
balance
Exports
29,393.5
26,505.3
40,082.5
30,950.3
Imports
Services
trade
balance
Income
trade
balance
Current
transfers
461,444.9
552,564.3
421,362.4
521,614.0
-8,626.0
-4,377.4
1,015.9
2,455.8
-3,078.9
-2,523.4
2010
I
II
III
IV
67.8
10,734.7
10,121.7
8,469.3
4,296.2
12,307.0
11,566.2
11,913.1
100,951.1
117,120.4
116,756.4
126,617.0
96,654.9
104,813.4
105,190.2
114,703.9
-4,067.7
-200.0
-1,787.5
-2,570.8
595.6
-901.4
1,289.2
32.5
-756.3
-470.9
-946.2
-905.5
2011
I
II
III
IV
2,610.3
5,492.2
6,896.0
11,506.8
5,842.7
7,661.0
7,197.7
10,248.9
127,691.2
142,722.8
141,393.5
140,756.8
121,848.5
135,061.8
134,195.8
130,507.9
-2,538.0
-796.0
-1,198.2
154.8
387.9
-824.8
1,314.9
1,577.8
-1,082.3
-548.0
-418.5
-474.7
2012P
I
II
2,559.9
11,144.7
2,612.4
8,477.7
134,627.6
138,829.3
132,015.2
130,351.6
-648.4
2,312.8
1,487.6
821.4
-891.7
-467.2
2010
1
2
3
4
5
6
7
8
9
10
11
12
-599.5
-549.2
1,216.5
724.5
4,923.1
5,087.1
4,779.0
1,668.5
3,674.2
5,489.1
2,024.4
955.8
891.0
633.2
2,772.0
3,333.9
3,625.4
5,347.7
4,934.9
2,224.0
4,407.3
5,403.2
3,241.2
3,268.7
31,782.7
31,111.0
38,057.4
38,740.1
38,083.5
40,296.8
40,473.4
37,186.1
39,096.9
42,008.4
41,822.0
42,786.6
30,891.7
30,477.8
35,285.4
35,406.2
34,458.1
34,949.1
35,538.5
34,962.1
34,689.6
36,605.2
38,580.8
39,517.9
-1,596.2
-1,495.3
-976.2
-561.5
932.8
-571.3
-219.6
-630.1
-937.8
-352.6
-201.2
-2,017.0
456.5
549.9
-410.8
-1,514.5
390.0
223.1
359.9
540.2
389.1
654.2
-775.6
153.9
-350.8
-237.0
-168.5
-533.4
-25.1
87.6
-296.2
-465.6
-184.4
-215.7
-240.0
-449.8
2011
1
2
3
4
5
6
7
8
9
10
11
12
154.7
1,126.1
1,329.5
1,277.6
2,183.9
2,030.7
3,773.6
292.6
2,829.8
4,132.9
4,564.6
2,809.3
1,557.9
1,530.8
2,754.0
3,327.6
1,633.8
2,699.6
4,728.0
371.5
2,098.2
3,547.2
3,997.2
2,704.5
42,662.8
37,228.3
47,800.4
47,879.4
47,149.8
47,693.6
48,555.9
45,634.9
47,202.7
46,451.7
46,656.2
47,648.9
41,104.9
35,697.2
45,046.4
44,551.8
45,516.0
44,994.0
43,827.9
45,263.4
45,104.5
42,904.5
42,659.0
44,944.4
-1,640.9
-569.1
-328.0
-178.8
15.5
-632.7
-690.9
-577.9
70.6
2.8
357.2
-205.2
703.7
542.6
-858.4
-1,581.9
517.3
239.8
72.3
699.6
543.0
643.5
445.6
488.7
-466.0
-378.2
-238.1
-289.3
17.3
-276.0
-335.8
-200.6
118.0
-60.6
-243.5
-178.7
2012P 1
2
3
4
5
6
-968.8
557.3
2,971.4
1,734.0
3,574.9
5,835.8
-1,624.0
1,310.1
2,926.3
1,750.8
1,751.9
5,011.0
41,383.8
45,863.0
47,380.8
45,820.3
46,162.8
46,846.2
43,007.8
44,552.9
44,454.5
44,069.5
44,446.9
41,835.2
-128.8
-1,219.3
699.7
549.7
1,593.0
170.1
1,191.7
613.4
-317.5
-422.0
341.6
901.8
-407.7
-146.9
-337.1
-144.5
-75.6
-247.1
P: Preliminary
Source: The Bank of Korea & Korea Customs Service
Economic Bulletin
65
Period
Capital &
financial
account
Direct
investment
Portfolio
investment
Financial
derivative
2010
2011
-27,478.5
-31,964.6
-22,184.3
-15,694.0
42,479.8
10,312.2
828.9
-1,735.3
-21,414.4
-11,084.9
Changes in
reserve
assets
Errors and
omissions
-217.9
150.0
-26,970.6
-13,912.6
-1,915.0
4,960.1
Capital transfers
Other
& acquisition of
investment non-financial
assets
2010
I
II
III
IV
743.2
-8,818.0
-9,103.9
-10,299.8
-2,873.4
-2,898.6
-6,617.3
-9,795.0
11,725.9
7,207.0
15,659.9
7,887.0
829.9
-882.1
-241.4
1,122.5
-191.2
-6,727.8
-7,519.0
-6,976.4
-179.8
20.3
-8.2
-50.2
-8,568.2
-5,536.8
-10,377.9
-2,487.7
-811.0
-1,916.7
-1,017.8
1,830.5
2011
I
II
III
IV
-2,754.1
-6,808.0
-8,320.9
-14,081.6
-4,696.3
-4,138.1
-2,807.6
-4,052.0
-1,379.1
2,035.4
8,108.4
1,547.5
730.3
-542.9
-1,490.7
-432.0
6,251.6
-1,432.5
-18,692.6
2,788.6
-181.4
-111.9
235.5
207.8
-3,479.2
-2,618.0
6,326.1
-14,141.5
143.8
1,315.8
1,424.9
2,574.8
2012P I
II
-1,377.1
-7,986.0
-7,203.3
-3,015.2
15,156.1
5,481.3
1,355.0
-65.3
-4,232.7
-599.2
134.3
284.3
-6,586.4
890.7
-1,182.8
-3,158.7
2010 1
2
3
4
5
6
7
8
9
10
11
12
-1,176.7
2,454.3
-534.4
1,044.1
-5,831.6
-4,030.5
-3,182.5
-615.0
-5,306.4
-4,519.4
-3,996.0
-1,784.4
-936.1
-549.9
-1,387.4
-1,102.5
-677.6
-1,118.5
-1,758.4
-1,139.5
-3,719.4
-6,893.6
-1,119.5
-1,781.9
171.9
2,771.5
8,782.5
6,093.5
1,073.0
40.5
8,698.4
1,650.2
5,311.3
8,528.1
2,243.9
-2,885.0
230.0
593.4
6.5
126.2
-799.8
-208.5
-227.3
124.6
-138.7
366.2
251.4
504.9
6,410.8
-912.6
-5,689.4
5,337.6
-12,610.7
545.3
-3,633.0
-25.7
-3,860.3
-3,814.4
-3,627.2
465.2
-70.6
-46.1
-63.1
-120.5
100.2
40.6
-0.5
12.0
-19.7
-47.1
-25.3
22.2
-6,982.7
598.0
-2,183.5
-9,290.2
7,083.3
-3,329.9
-6,261.7
-1,236.6
-2,879.6
-2,658.6
-1,719.3
1,890.2
1,776.2
-1,905.1
-682.1
-1,768.6
908.5
-1,056.6
-1,596.5
-1,053.5
1,632.2
-969.7
1,971.6
828.6
2011 1
2
3
4
5
6
7
8
9
10
11
12
-1,282.0
-1,996.2
524.1
394.7
-3,956.7
-3,246.0
-2,469.2
-1,690.6
-4,161.1
-4,391.9
-6,191.9
-3,497.8
-1,725.4
-1,635.1
-1,335.8
-7.38.8
-1,254.7
-2,144.6
327.1
-1,036.4
-2,098.3
-1,132.2
-2,077.1
-842.7
904.6
-3,004.0
720.3
4,575.0
-1,140.1
-1,399.5
9,258.3
-2,923.0
1,773.1
3,919.1
39.8
-2,411.4
569.3
-363.3
524.3
-206.2
165.1
-501.8
526.6
-1,868.6
-148.7
108.5
-379.9
-160.6
1,773.3
5,126.9
-648.6
-145.9
-821.7
-464.9
-6,581.0
4,638.4
-16,750.0
2,784.7
-6.2
-640.0
-120.7
-32.7
-28.0
-33.6
-49.9
-28.4
13.8
41.5
180.2
109.7
98.1
10.1
-2,683.1
-2,088.0
1,291.9
-3,055.8
-855.4
1,293.2
-6,014.0
-542.5
12,882.6
-10,181.7
-3,866.6
-93.2
1,127.3
870.1
-1,853.6
-1,672.3
1,772.8
1,215.3
-1,304.4
1,398.0
1,331.3
259.0
1,627.3
688.5
2012P 1
2
3
4
5
6
1,305.6
-920.3
-1,762.4
157.7
-2,897.4
-5,246.3
-2,013.3
-3,572.6
-1,617.4
-940.4
-1,382.0
-692.8
7,737.0
6,115.2
1,303.9
-2,213.3
-937.1
-2,330.9
434.2
214.1
706.7
320.5
-390.4
4.6
-2,190.4
-1,526.1
-516.2
2,667.4
-1,600.9
-1,665.7
-1.7
36.0
100.0
102.3
144.2
37.8
-2,660.2
-2,186.8
-1,739.4
221.2
1,268.8
-599.3
-336.8
363.0
-1,209.0
-1,891.7
-699.7
-589.5
P: Preliminary
Source: The Bank of Korea
66
August 2012
Producer prices
(2005=100)
Period
All Items
Commodity
Service
Core
All items
Commodity
Export
Import
2010
2011
100.0
104.0
100.0
105.7
100.0
102.7
100.0
103.2
115.1
122.1
117.0
125.8
106.4
111.1
145.0
164.4
2010 7
8
9
10
11
12
99.8
100.3
101.1
101.1
100.6
101.0
99.5
100.3
102.0
102.0
100.8
101.5
100.2
100.3
100.4
100.4
100.6
100.7
100.1
100.3
100.4
100.4
100.4
100.7
114.9
115.2
116.3
116.4
116.7
117.8
116.7
117.1
118.6
118.6
118.9
120.5
109.4
107.4
106.9
105.0
106.3
109.6
147.0
147.4
147.4
146.1
149.2
156.1
2011 1
2
3
4
5
6
7
8
9
10
11
12
102.2
102.9
103.3
103.4
103.6
103.8
104.3
105.0
104.9
104.7
104.8
105.2
103.4
104.4
104.9
104.6
104.7
105.0
105.9
107.1
107.1
106.6
106.8
107.3
101.2
101.7
102.1
102.4
102.6
102.8
103.1
103.3
103.1
103.2
103.3
103.5
101.4
102.1
102.4
102.6
103.0
103.4
103.7
103.8
103.7
103.6
103.9
104.3
119.7
120.5
122.0
122.4
122.3
121.9
122.4
122.8
122.9
122.9
122.6
122.9
122.7
123.9
125.8
126.2
126.0
125.5
126.0
126.7
126.9
126.9
126.5
127.0
108.6
110.6
113.5
111.8
110.2
109.4
108.0
109.4
113.1
114.7
112.0
112.4
156.1
160.9
166.5
167.6
163.9
163.2
161.4
162.1
168.1
169.5
166.8
167.2
2012 1
2
3
4
5
6
7
105.7
106.1
106.0
106.0
106.2
106.1
105.9
107.9
108.5
109.2
108.9
109.2
108.8
107.9
103.9
104.2
103.5
103.7
103.9
104.0
104.2
104.6
104.7
104.3
104.4
104.6
104.9
104.9
123.8
124.7
125.4
125.3
124.6
122.9
122.3
122.8
129.0
129.9
129.7
128.8
126.5
125.7
113.6
112.8
113.4
114.1
113.7
111.8
110.4
168.5
169.3
172.3
170.5
167.2
161.2
159.8
2010
2011
3.0
4.0
4.6
5.7
1.9
2.7
1.8
3.2
3.8
6.1
4.6
7.5
-2.6
4.4
5.3
13.4
2010 7
8
9
10
11
12
2.5
2.7
3.4
3.7
3.0
3.0
3.8
4.1
5.8
6.4
4.9
4.9
1.8
1.7
1.8
1.8
1.9
1.9
1.7
1.8
1.8
1.7
1.5
1.7
3.4
3.1
4.0
5.0
4.9
5.3
4.1
3.7
5.0
6.1
5.7
6.5
0.3
-1.7
-0.4
1.0
1.9
4.3
7.5
5.7
7.8
8.1
8.2
12.7
2011 1
2
3
4
5
6
7
8
9
10
11
12
3.4
3.9
4.1
3.8
3.9
4.2
4.5
4.7
3.8
3.6
4.2
4.2
5.2
5.9
6.1
5.0
5.2
5.8
6.4
6.8
5.0
4.5
6.0
5.7
2.0
2.3
2.6
2.7
2.7
2.9
2.9
3.0
2.7
2.8
2.7
2.8
2.1
2.6
3.0
3.0
3.2
3.5
3.6
3.5
3.3
3.2
3.5
3.6
6.2
6.6
7.3
6.8
6.2
6.2
6.5
6.6
5.7
5.6
5.1
4.3
7.7
8.2
9.1
8.4
7.6
7.6
8.0
8.2
7.0
7.0
6.4
5.4
4.9
5.6
9.1
7.7
3.3
-0.4
-1.3
1.8
5.8
9.2
5.4
2.5
14.1
16.9
19.6
19.0
13.2
10.5
9.8
10.0
14.0
16.0
11.8
7.1
2012 1
2
3
4
5
6
7
3.4
3.1
2.6
2.5
2.5
2.2
1.5
4.4
3.9
4.1
4.1
4.3
3.6
1.9
2.7
2.5
1.4
1.3
1.3
1.2
1.1
3.2
2.5
1.9
1.8
1.6
1.5
1.2
3.4
3.5
2.8
2.4
1.9
0.8
-0.1
4.2
4.1
3.3
2.8
2.2
0.8
-0.2
4.6
2.1
-0.0
2.0
3.2
2.2
2.2
7.9
5.2
3.5
1.7
2.1
-1.2
-1.0
Economic Bulletin
67
Unemployment (%)
Regular
Temporary
Daily
24,748
25,099
23,829
24,244
4,028
4,091
18,214
18,595
3.7
3.4
16,971
17,397
10,086
10,661
5,068
4,990
1,817
1,746
2010 7
8
9
10
11
12
25,232
24,863
24,911
25,004
24,847
24,538
24,301
24,005
24,054
24,172
24,109
23,684
4,040
4,058
4,062
4,098
4,139
4,156
18,489
18,175
18,216
18,264
18,340
18,272
3.7
3.3
3.4
3.3
3.0
3.5
17,228
17,048
17,103
17,178
17,300
17,154
10,107
10,151
10,217
10,280
10,334
10,347
5,215
5,122
5,106
5,089
5,069
4,999
1,905
1,775
1,780
1,809
1,898
1,808
2011 1
2
3
4
5
6
7
8
9
10
11
12
24,114
24,431
24,918
25,240
25,480
25,592
25,473
25,257
25,076
25,409
25,318
24,880
23,196
23,336
23,846
24,303
24,661
24,752
24,636
24,495
24,318
24,673
24,589
24,125
4,148
4,149
4,122
4,108
4,137
4,135
4,079
4,031
4,014
4,044
4,054
4,071
18,007
18,019
18,244
18,536
18,731
18,812
18,844
18,739
18,595
18,856
18,921
18,833
3.8
4.5
4.3
3.7
3.2
3.3
3.3
3.0
3.0
2.9
2.9
3.0
16,832
16,856
17,065
17,357
17,626
17,720
17,667
17,510
17,378
17,608
17,650
17,496
10,305
10,390
10,543
10,618
10,708
10,716
10,718
10,710
10,764
10,796
10,838
10,824
4,848
4,781
4,782
4,928
5,064
5,132
5,137
5,031
5,047
5,094
5,047
4,986
1,680
1,684
1,740
1,812
1,854
1,872
1,811
1,769
1,567
1,718
1,765
1,686
2012 1
2
3
4
5
6
24,585
24,825
25,210
25,653
25,939
25,939
23,732
23,783
24,265
24,758
25,133
25,117
4,034
4,060
4,018
4,027
4,071
4,084
18,631
18,599
18,870
19,103
19,292
19,248
3.5
4.2
3.7
3.5
3.1
3.2
17,184
17,225
17,421
17,679
17,935
17,932
10,769
10,807
10,899
10,957
11,064
11,157
4,868
4,877
4,997
5,095
5,153
5,094
1,547
1,542
1,525
1,627
1,718
1,681
2010
2011
1.5
1.4
1.4
1.7
5.0
1.6
1.2
2.1
3.1
2.5
7.4
5.7
-0.7
-1.5
-7.4
-3.9
2010 7
8
9
10
11
12
1.9
1.3
1.1
1.4
0.9
2.0
2.0
1.6
1.0
1.3
1.3
2.0
6.2
7.9
6.6
6.2
7.4
7.3
1.5
0.7
0.3
0.7
0.4
0.9
3.9
3.5
2.5
2.9
3.0
3.6
7.7
7.2
6.4
6.8
7.6
7.4
-0.8
0.1
-0.9
-1.6
-3.6
-1.5
-2.4
-6.1
-7.8
-4.4
-1.7
-2.2
2011 1
2
3
4
5
6
7
8
9
10
11
12
0.1
1.6
2.2
1.5
1.5
1.7
1.0
1.7
0.7
1.6
1.9
1.4
1.4
2.1
2.0
1.6
1.5
1.9
1.4
2.0
1.1
2.1
2.0
1.9
5.7
6.7
5.1
2.9
2.5
2.9
1.0
-0.7
-1.2
-1.3
-2.1
-2.1
1.2
1.4
1.1
1.4
1.3
2.1
1.9
3.1
2.1
3.2
3.2
3.1
3.3
3.5
2.7
2.1
2.2
3.1
2.5
2.7
1.6
2.5
2.0
2.0
6.1
6.2
6.2
6.1
6.3
6.2
6.0
5.5
5.4
5.0
4.9
4.6
-0.3
-1.2
-3.9
-4.3
-3.0
-0.6
-1.5
-1.8
-1.2
0.1
-0.4
-0.3
-2.6
1.6
1.5
-1.3
-5.1
-3.4
-4.9
-0.3
-11.9
-5.0
-7.0
-6.7
2012 1
2
3
4
5
6
2.0
1.6
1.2
1.6
1.8
1.4
2.3
1.9
1.8
1.9
1.9
1.5
-2.8
-2.1
-2.5
-2.0
-1.6
-1.2
3.5
3.2
3.4
3.1
3.0
2.3
2.1
2.2
2.1
1.9
1.8
1.2
4.5
4.0
3.4
3.2
3.3
4.1
0.4
2.0
4.5
3.4
1.8
-0.7
-7.9
-8.5
-12.3
-10.2
-7.4
-10.2
68
August 2012
Stock
Period
Call rate
(1 day)
CD
(91 days)
Corporate bonds
(3 years, AA-)
Treasury bonds
(3 years)
Treasury bonds
(5 years)
KOSPI
(end-period)
2008 1
2
3
4
5
6
7
8
9
10
11
12
5.0
5.0
5.0
5.0
5.0
5.0
5.0
5.2
5.2
4.9
4.0
3.3
5.8
5.3
5.3
5.4
5.4
5.4
5.5
5.8
5.8
6.0
5.6
4.7
6.6
6.3
6.1
5.9
6.2
6.7
7.0
7.1
7.5
8.0
8.6
8.4
5.4
5.1
5.2
5.0
5.3
5.7
6.0
5.8
5.8
5.1
5.0
4.0
5.5
5.1
5.2
5.0
5.4
5.8
6.0
5.8
5.8
5.2
5.2
4.3
1,624.68
1,711.62
1,703.99
1,825.47
1,852.02
1,674.92
1,594.67
1,474.24
1,448.06
1,113.06
1,076.07
1,124.47
2009 1
2
3
4
5
6
7
8
9
10
11
12
2.4
2.1
1.8
1.8
1.9
1.9
1.9
2.0
2.0
2.0
2.0
2.0
3.2
2.7
2.5
2.4
2.4
2.4
2.4
2.5
2.6
2.8
2.8
2.8
7.3
7.1
6.1
5.7
5.2
5.2
5.5
5.7
5.6
5.6
5.4
5.4
3.4
3.8
3.7
3.8
3.8
4.1
4.1
4.4
4.4
4.5
4.3
4.2
4.0
4.6
4.5
4.4
4.5
4.7
4.6
4.9
4.9
4.9
4.8
4.8
1,162.11
1,063.03
1,206.26
1,369.40
1,395.89
1,390.07
1,577.29
1,591.85
1,673.14
1,580.69
1,555.60
1,682.77
2010 1
2
3
4
5
6
7
8
9
10
11
12
2.0
2.0
2.0
2.0
2.0
2.0
2.2
2.3
2.3
2.3
2.4
2.5
2.9
2.9
2.8
2.5
2.5
2.5
2.6
2.6
2.7
2.7
2.7
2.8
5.4
5.3
5.0
4.7
4.5
4.7
4.8
4.7
4.4
4.1
4.2
4.2
4.3
4.2
3.9
3.8
3.7
3.8
3.9
3.7
3.5
3.2
3.4
3.3
4.8
4.8
4.5
4.4
4.4
4.4
4.5
4.3
3.9
3.7
4.0
4.0
1,602.43
1,594.58
1,692.85
1,741.56
1,641.25
1,698.29
1,759.33
1,742.75
1,872.81
1,882.95
1,904.63
2,051.00
2011 1
2
3
4
5
6
7
8
9
10
11
12
2.7
2.8
2.9
3.0
3.0
3.2
3.3
3.3
3.3
3.2
3.3
3.3
2.9
3.1
3.4
3.4
3.5
3.5
3.6
3.6
3.6
3.6
3.6
3.6
4.5
4.7
4.5
4.5
4.4
4.4
4.5
4.2
4.2
4.3
4.2
4.2
3.7
3.9
3.7
3.7
3.7
3.7
3.8
3.6
3.5
3.5
3.4
3.4
4.3
4.4
4.1
4.1
4.0
3.9
4.0
3.7
3.6
3.6
3.5
3.5
2,069.73
1,939.30
2,106.70
2,192.36
2,142.47
2,100.69
2,133.21
1,880.11
1,769.65
1,909.03
1,847.51
1,825.74
2012 1
2
3
4
5
6
7
3.3
3.3
3.3
3.3
3.3
3.3
3.1
3.6
3.5
3.5
3.5
3.5
3.5
3.3
4.2
4.3
4.4
4.3
4.0
3.9
3.0
3.2
3.4
3.6
3.5
3.4
3.3
3.1
3.5
3.6
3.7
3.6
3.5
3.4
3.6
1,955.79
2,030.25
2,014.04
1,981.99
1,843.47
1,854.01
1,881.99
Economic Bulletin
69
Period
(billion won)
Reserve money
M1
M2
Lf
2010
2011
67,585.1
75,232.0
399,412.3
425,675.1
1,639,675.1
1,708,984.5
2,096,534.8
2,974,440.3
2010 7
8
9
10
11
12
66,958.2
67,318.7
70,266.5
69,905.0
69,476.8
71,472.9
403,785.1
400,882.5
403,413.5
405,000.1
414,912.8
425,673.9
1,653,057.5
1,653,907.2
1,659,400.1
1,669,376.6
1,679,909.9
1,682,871.9
2,111,672.2
2,113.052.7
2,123.558.2
2,134,385.4
2,145,901.5
2,154,538.9
2011 1
2
3
4
5
6
7
8
9
10
11
12
73,540.8
75,432.1
73,012.7
73,206.1
73,828.5
74,705.5
74,069.7
75,642.3
77,942.2
76,944.6
76,617.3
77,842.5
429,368.1
432,482.8
430,936.6
425,420.5
423,994.7
421,885.3
418,973.1
422,649.3
425,196.4
421,480.1
423,111.9
432,602.2
1,676,448.8
1,674,390.5
1,677,475.9
1,684,792.3
1,690,543.0
1,697,204.2
1,705,451.5
1,719,437.8
1,729,531.1
1,742,645.4
1,753,296.4
1,756,597.4
2,152,814.0
2,148,254.1
2,152,736.5
2,163,485.7
2,175,557.3
2,189,729.2
2,208,624.3
2,230,191.9
2,243,675.6
2,263,627.7
2,279,234.1
2,288,816.9
2012 1
2
3
4
5
6
81,635.4
81,655.3
79,068.0
80,641.8
80,547.7
81,804.0
439,352.9
437,193.9
440,075.4
437,445.3
438,795.3
441,611.0
1,757,058.7
1,762,988.4
1,773,172.9
1,777,114.7
1,784,220.5
1,796,981.5
2,292,213.5
2,302,065.8
2,341,626.9
2,349,723.2
2,357,701.0
2,377,045.8
9.5
11.3
11.8
6.6
8.7
4.2
8.2
9.4
2010 7
8
9
10
11
12
12.7
11.1
17.8
9.8
13.6
14.1
11.1
11.0
10.2
9.0
11.8
12.9
9.3
8.5
8.1
7.6
7.4
7.2
8.8
8.0
7.7
7.2
7.3
6.9
2011 1
2
3
4
5
6
7
8
9
10
11
12
13.0
13.3
11.2
13.9
8.8
12.8
10.6
12.4
10.9
10.1
10.3
8.9
12.6
11.5
11.6
9.6
7.4
5.4
3.8
5.4
5.1
4.1
2.0
1.6
6.5
5.0
4.3
3.9
3.7
3.0
3.2
4.0
4.2
4.4
4.4
4.4
6.6
5.2
4.7
4.5
4.4
4.0
4.6
5.5
5.7
6.1
6.2
6.2
2012 1
2
3
4
5
6
11.0
8.3
8.3
10.2
9.1
9.5
2.3
1.1
2.1
2.8
3.5
4.7
4.8
5.3
5.7
5.5
5.5
5.9
6.5
7.2
8.8
8.6
8.4
8.5
70
August 2012
/US$
/100
/Euro
Period
End-period
Average
End-period
Average
End-period
Average
2010
2011
1,138.9
1,153.3
1,156.3
1,108.1
1,397.1
1,485.2
1,320.6
1,391.3
1,513.6
1,494.1
1,532.9
1,541.4
2010 7
8
9
10
11
12
1,187.2
1,189.1
1,142.0
1,126.6
1,157.3
1,138.9
1,207.3
1,179.9
1,167.0
1,123.4
1,126.2
1,147.6
1,370.0
1,406.0
1,363.3
1,390.7
1,373.4
1,397.1
1,377.7
1,380.2
1,384.2
1,371.1
1,366.6
1,376.7
1,552.4
1,505.9
1,556.0
1,569.3
1,518.3
1,513.6
1,540.3
1,523.3
1,518.7
1,559.6
1,541.3
1,515.4
2011 1
2
3
4
5
6
7
8
9
10
11
12
1,114.3
1,127.9
1,107.2
1,072.3
1,080.6
1,078.1
1,052.6
1,071.7
1,179.5
1,104.5
1,150.3
1,153.3
1,120.1
1,118.1
1,122.5
1,086.8
1,083.5
1,081.3
1,059.5
1,073.2
1,118.6
1,155.5
1,132.3
1,147.5
1,356.6
1,380.7
1,331.9
1,313.8
1,335.6
1,335.7
1,353.2
1,396.8
1,536.6
1,458.0
1,475.7
1,485.2
1,356.3
1,351.0
1,376.2
1,304.8
1,333.6
1,342.8
1,333.4
1,391.4
1,456.5
1,508.2
1,460.0
1,473.4
1,514.0
1,549.5
1,563.5
1,591.2
1,549.7
1,560.5
1,507.9
1,547.3
1,601.4
1,562.7
1,532.9
1,494.1
1,495.4
1,524.6
1,572.6
1,569.4
1,551.3
1,555.4
1,515.4
1,538.7
1,542.4
1,584.0
1,536.6
1,511.0
2012 1
2
3
4
5
6
7
1,125.0
1,126.5
1,137.8
1,134.2
1,177.8
1,153.8
1,136.2
1,145.9
1,123.4
1,125.9
1,135.6
1,154.3
1,165.5
1,143.4
1,473.1
1,399.2
1,380.7
1,412.0
1,489.1
1,453.8
1,453.6
1,488.7
1,433.7
1,364.1
1,393.9
1,447.1
1,469.1
1,446.4
1,478.2
1,516.3
1,513.4
1,501.7
1,456.6
1,435.0
1,393.1
1,477.2
1,486.0
1,487.1
1,495.6
1,478.6
1,462.3
1,407.0
2010
2011
-2.5
1.3
-9.4
-4.2
-3.1
5.4
-9.6
-1.3
-13.6
0.6
2010 7
8
9
10
11
12
-4.3
-4.5
-3.9
-6.2
-0.9
-2.5
-4.5
-4.7
-4.3
-4.4
-3.3
-1.6
5.4
5.5
3.4
5.9
1.9
10.6
3.0
5.8
3.9
5.4
4.8
5.8
-11.1
-15.4
-10.3
-11.9
-13.3
-9.6
-13.4
-13.8
-14.4
-10.5
-11.2
-11.1
2011 1
2
3
4
5
6
7
8
9
10
11
12
-3.6
-2.6
-2.1
-3.9
-10.0
-10.9
-11.3
-9.9
3.3
-2.0
-0.6
1.3
-1.6
-3.4
-1.3
-2.7
-6.8
-10.8
-12.2
-9.0
-4.1
2.8
0.5
0.0
5.4
6.3
9.4
10.7
1.3
-2.1
-1.2
-0.7
12.7
4.8
7.4
6.3
8.7
5.4
9.6
9.2
5.4
0.7
-3.2
0.8
5.2
10.0
6.8
7.0
-6.2
-1.3
3.0
7.6
5.1
5.8
-2.9
2.7
2.9
-0.4
1.0
-1.3
-8.1
-3.8
1.8
4.5
6.2
5.0
-1.6
1.0
1.6
1.6
-0.3
-0.3
2012 1
2
3
4
5
6
7
1.0
-0.1
2.8
5.8
9.0
7.0
7.9
2.3
0.5
0.3
4.5
6.5
7.8
7.9
8.6
1.3
3.7
7.5
11.5
8.8
7.4
9.8
6.1
-0.9
6.8
8.5
9.4
8.5
-2.4
-2.1
-3.2
-5.6
-6.0
-8.0
-7.6
-1.2
-2.5
-5.4
-4.7
-4.7
-6.0
-7.2
Economic Bulletin
71
Editor-in-Chief
Park Chun-Sup (MOSF)
Editorial Board
Kim Young-Min (MOSF)
Shim Jae-Hak (KDI)
Lee In-Sook (KDI)
Coordinators
Choi Jae-Hoon (MOSF)
Cho Hyun-Joo (KDI)
Editors
Cho Eun-Hyung (MOSF)
David Friedman (MOSF)
Kim Dae-Hyun (MOSF)
Lee Ji-Youn (KDI)