Economic Bulletin (Vol. 35 No. 4)

ISSN 2287-7266
Republic of Korea
ECONOMIC BULLETIN (Republic of Korea)
ECONOMIC
BULLETIN
Vol.35 No.4
03 The Green Book:

Current Economic Trends
50 Policy Issues
Park Geun-hye Administrations Economic Policy Directions for 2013

Supplementary Budget of 17.3 Trillion Won Proposed
60 Economic News Briefing
Korea Grows 2.0% in 2012

Government Structure Reorganized
Housing Market Boosting Measures Unveiled
Korea, China and Japan Hold First Round of FTA Talks
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65 Statistical Appendices
Vol.35 No.4 April 2013
Foreign Press Spokespersons Office

Ministry of Strategy and Finance
Government Complex, 477 Galmae-ro
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| Economic Information and Education Center
April 2013
Republic of Korea
Vol.35 No.4
April 2013
Contents
Economic Bulletin
The Green Book: Current Economic Trends
Overview ......................................................................................................................... 03
1. External economic situation ..................................................................................... 04
2. Private consumption .................................................................................................. 10
3. Facility investment ..................................................................................................... 15
4. Construction investment ........................................................................................... 17
5. Exports and imports .................................................................................................. 20
6. Mining and manufacturing production .................................................................. 22
7. Service sector activity ................................................................................................ 25
8. Employment .............................................................................................................. 27
9. Financial markets ........................................................................................................ 31
9.1 Stock market
9.2 Exchange rate
9.3 Bond market
9.4 Money supply & money market
10. Balance of payments ................................................................................................ 35
11. Prices and international commodity prices ......................................................... 38
11.1 Prices
11.2 International oil and commodity prices
12. Real estate market ................................................................................................... 43
12.1 Housing market
12.2 Land market
13. Composite indices of business cycle indicators .................................................. 48
Policy Issues
Park Geun-hye administrations economic policy directions for 2013 ................... 50

Supplementary budget of 17.3 trillion won proposed ............................................ 58
Economic News Briefing

Statistical Appendices
........................................................................ 60
.............................................................................. 65
The Green Book

Overview
The Korean economy has seen inflation remain stable, with economic indicators such as service
output and investment improving. However, employment growth has been slowing down, while
production and consumption continue to fall.
Taking into account the Lunar New Year effect, major indicators of the real economy, including
production, consumption and investment, have been sluggish in the first two months of 2012.
In February, the economy added 201,000 jobs year-on-year, down from 322,000 in the previous
month, while the employment and unemployment rates remain weak.
Consumer price inflation stayed stable in the 1.0 percent range in March, falling to 1.3 percent
from the previous months 1.4 percent, as agricultural product prices fell due to improving weather
conditions and personal service prices declined due to the expansion of childcare subsidies.
Mining and manufacturing production fell 0.8 percent month-on-month in February due to
weakness in the semiconductor sector, while service output increased by 1.7 percent led by real
estate & renting.
Meanwhile, the average month-on-month growth rate for mining and manufacturing production
in January and February was 0.1 percent, which was low compared to 2.9 percent posted in the
fourth quarter of 2012. The average monthly growth rate for service output in the first two months
of the year was also 0.1 percent, nearly on par with the fourth quarter of 2012, when the average
growth rate was 0.0 percent.
Despite an increase in durable and semi-durable goods sales, retail sales in February fell 0.1
percent from the previous month due to a decrease in nondurable goods sales. In January and
February, retail sales declined by an average of 1.6 percent, whereas in the fourth quarter of the
previous year retail sales had increased by an average of 0.4 percent.
Facility investment in February rose 6.5 percent month-on-month due to strong machinery and
transportation equipment investment. However, facility investment declined by an average of 1.8
percent in January and February, while it had grown 0.8 percent in the fourth quarter of 2012.
Construction investment went up 7.0 percent, led by an improvement in building construction
and civil engineering works. The January-February average growth rate was 5.2 percent, posting
an improvement from 1.4 percent in the fourth quarter of the previous year.
The Green Book | 3
Exports rose 0.4 percent year-on-year in March, thanks to the strong performance of IT-related
items including mobile phones and semiconductors. The trade balance remained in the black at
US$3.36 billion.
The cyclical indicator of the coincident composite index rose 0.1 point percent month-on-month
in February, and the leading composite index fell 0.1 point.
In March, both the stock prices and the won fell, as geopolitical risks related to North Korea
escalated, uncertainties over the eurozone spread, and foreign investors became net sellers of
Korean stocks.
The decline in housing prices slowed from 0.2 percent to 0.1 percent in March, while the upward
trend in rental prices accelerated from 0.3 percent to 0.5 percent.
Uncertainties linger both at home and abroad due to fiscal anxiety in the US, slow economic
recovery in Europe and risks concerning North Korea. Meanwhile, the domestic economy remains
stagnant due to weak consumption and sluggish investment.
The Korean government will closely watch the global and domestic economic situations, and
reinforce policy responses by aggressively managing macroeconomic policies.
At the same time, the government will focus on securing the lives of the low- and middle-income
classes through job creation and by stabilizing the prices of necessities, while continuing to adopt
policies to improve the health of the economy.
1.
External
economic
situation
Although the US economy shows signs of moderate recovery, external risks remain,
such as fiscal anxiety in the US, political uncertainty in Italy and the aftermath of
the bailout of Cyprus.
The US averted a government shutdown when Congress passed the budget plan for
Fiscal Year 2013, but anxieties remain as the suspension of the debt ceiling is due
to end on May 19.
The eurozone crisis persists due to the possibility of contagion stemming from the
prolonged political vacuum in Italy* and the bailout agreement over Cyprus**.
* Fitch Ratings cut Italys sovereign credit rating from A- to BBB+, citing political uncertainty
and diminishing prospects of additional structural reform.
** The EU agreed on March 25 to provide 10 billion euros in bailout loans to Cyprus and require
the nation to undergo restructuring of its banking sector. The original bailout agreement
reached on March 15 included plans to levy a tax on bank deposits, but the terms were
renegotiated after Cypruss lawmakers rejected the bailout package amid opposition within
the nation.
4 | The Green Book
World GDP growth

6
(%)
5
4
3
2
1
0
-1
US
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
The US growth rate in the fourth quarter of 2012 was revised upward to 0.4 percent
and major economic indicators such as industrial production and retail sales have
improved in the first two months of 2013, but business sentiment and job data have
slumped in March.
The growth rate adjustment reflects accelerating growth in business and housing
investment.
Growth rate (adjusted [ final, %)
0.1 [ 0.4 (GDP), 2.1 [ 1.8 (private consumption), 9.7 [ 13.2 (business investment),
17.5 [ 17.6 (housing investment), -3.9 [ -2.8 (exports), -6.9 [ -7.0 (government spending)
Industrial production and retail sales both rose at a faster than expected pace in
February. Industrial production rose 0.7 percent month-on-month, up from the
initial estimate of 0.4 percent, while retail sales increased 1.1 percent from the
previous month, exceeding expectations of 0.5 percent.
The housing market continued to recover as housing prices continued to rise for
the 12th consecutive month and existing home sales in February increased by 0.8
percent month-on-month.
Case-Shiller Home Price Index (percentage change from the previous period)
-0.4 (Q1 2012) [ 2.3 (Q2 2012) [ 1.7 (Q3 2012) [ 1.8 (Q4 2012), 1.0 (Jan 2012)
Meanwhile, the ISM Manufacturing Index declined in March, registering below

the expected 54.0.
ISM Manufacturing Index (base=50)
50.5 (Jul 2012) [ 50.7 (Aug) [ 51.6 (Sep) [ 51.7 (Oct) [ 49.9 (Nov) [ 50.2 (Dec) [ 53.1 (Jan
2013) [ 54.2 (Feb) [ 51.3 (Mar)
Although the unemployment rate fell to 7.6 percent, nonfarm payroll growth fell
short of expectations by a significant margin (190,000 [ 88,000) and the labor
force participation rate fell to the lowest since May 1979.
The Green Book | 5
Nonfarm payroll increase (m-o-m, thousand)

153 (Jul 2012) [ 165 (Aug) [ 138 (Sep) [ 160 (Oct) [ 247 (Nov) [ 219 (Dec) [ 148 (Jan
2012) [ 268 (Feb) [ 88 (Mar)
Labor force participation rate (%)
2012) [ 63.5 (Feb) [ 63.3 (Mar)
(Percentage change from previous period)
2010
2011
Annual Annual
2012
2013
Q4
Annual
Q1
Q2
Q3
Q4
Jan
Feb
Mar
Real GDP
2.4
1.8
4.1
2.2
2.0
1.3
3.1
0.4
- Personal consumption expenditure
1.8
2.5
2.0
1.9
2.4
1.5
1.6
1.8
- Corporate fixed investment
0.7
8.6
9.5
7.7
7.5
3.6
-1.8
13.2
- Housing construction investment
-3.7
-1.4
12.1
11.9
20.5
8.5
13.5
17.6
Industrial production
5.3
4.1
0.9
3.8
1.4
0.6
0.0
0.6
0.1
0.7
Retail sales
5.5
8.0
1.9
5.0
1.7
-0.3
1.3
1.5
0.2
1.1
Existing home sales
-3.4
2.4
2.8
9.9
5.5
-2.0
5.1
3.3
0.8
0.8
Unemployment rate
9.6
9.0
8.7
8.1
8.3
8.2
8.1
7.8
7.9
7.7
7.6
Consumer prices
1.6
3.2
0.2
2.1
0.6
0.2
0.6
0.5
0.0
0.7
1. Preliminary
2. Annualized rate (%)
3. Seasonally adjusted
Source: US Department of Commerce
US GDP growth and industrial production

Source: US Department of Commerce & US Federal Reserve Board
10
8
6
4
2
0
-2
-4
-6
-8
-10
2001. Q1
2002. Q1
2003. Q1
GDP (q-o-q, annualized rate)
6 | The Green Book
2004. Q1
2005. Q1
2006. Q1
2007. Q1
2008. Q1
2009. Q1
2010. Q1
2011. Q1
2012. Q1
Industrial production (q-o-q)
US nonfarm payroll growth and unemployment rate

Sourse : US Department of Labor
12
800
600
10
400
200
0
-200
-400
-600
-800
-1,000
2001. 1
2002. 1
2003. 1
2004. 1
2005. 1
2006. 1
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
US nonfarm payroll growth (m-o-m, left)
China
2012. 1
2013. 1
Unemployment rate (right)
The Chinese economy continues to gradually recover, with exports registering

double-digit growth for two straight months. However, there are increasing
concerns that the recovery momentum may lose steam, as domestic consumption
growth had slowed down in the first two months of 2013.
Exports are continuing to show signs of improvement, with exports in January and
February growing 23.6 percent compared to the same period of the previous year.
However, domestic consumption growth is slowing, with industrial production
and retail sales rising 9.9 percent and 12.3 percent, respectively.
Meanwhile, the lower than expected manufacturing PMI*, real estate regulations
and concerns over bird flu infections** may hamper economic recovery in the
coming days.
* The manufacturing PMI in March rose 0.8 points month-on-month to 50.9. This is lower than
market expectations (51.2) and past trends (March PMI was usually 3.0 points higher than that
in February).
** As of April 7, 21 people have been infected with bird flu in China, of which six have died.
(Percentage change from same period in previous year)
2011
2012
2013
Annual
Q3
Q4
Annual
Q1
Q2
Q3
Q4
Dec
Jan
Feb
9.3
9.1
8.9
7.8
8.1
7.6
7.4
7.9
13.9
13.8
12.8
10.1
11.6
9.5
9.1
10.0
10.3
9.93
Fixed asset investment (accumulated)
24.8
24.9
23.8
20.6
20.9
20.4
20.5
20.6
20.6
21.23
Retail sales
17.1
17.3
17.5
14.3
14.9
13.9
13.5
14.9
15.2
12.33
Exports
Real GDP
20.7
20.7
14.4
8.3
8.8
10.5
4.5
9.5
14.1
25.0
21.8
Consumer prices
5.4
6.3
4.6
2.6
3.8
2.8
1.9
2.1
2.5
2.0
3.2
Producer prices
6.0
7.1
3.1
-1.7
0.1
-1.4
-3.3
-2.3
-1.9
-1.6
-1.6
1. Preliminary
2. Quarterly change: average of monthly change
3. Jan-Feb aggregate
Source: China National Bureau of Statistics
The Green Book | 7
Chinas GDP growth and fixed asset investment

Source: National Bureau of Statistics of China
18
(%)
(%)
70
16
60
14
50
12
40
10
30
20
10
4
2001. Q1
0
2002. Q1
2003. Q1
2004. Q1
2005. Q1
2006. Q1
2007. Q1
2008. Q1
2009. Q1
GDP (y-o-y, left)
Japan
2010. Q1
2011. Q1
2012. Q1
Fixed asset investment (accumulated, y-o-y, right)
The Japanese economy continues to tread on thin ice, with the trade balance
registering a deficit for the eighth straight month in February due to sluggish
exports, and industrial production contracting.
Trade account balance (billion yen)
-529 (Jul 2012) [ -768 (Aug) [ -568 (Sep) [ -556 (Oct) [ -957 (Nov) [ -646 (Dec) [ -1,631
(Jan 2013) [ -779 (Feb)
Retail sales rose 1.6 percent from the previous month, but declined 2.3 year-on-year.
Deflation persisted even though import prices were up 13.2 percent year-on-year,
with consumer prices falling 0.7 percent from the same period of the previous year.
2011
Annual
Q3
2012
Q4
Annual
Q1
2013
Q2
Q3
Q4
Dec
Jan
Feb
-
Real GDP
-0.6
2.5
0.1
2.0
1.5
-0.2
-0.9
0.0
-2.4
4.3
-0.4
-0.3
1.2
-2.0
-4.2
-1.9
2.4
0.3
-0.1
Retail sales
-1.2
0.5
-0.5
1.6
1.2
0.3
-0.9
-0.2
0.0
-0.2
1.6
Exports (y-o-y)
-2.6
0.5
-5.5
-2.8
-1.6
4.8
-8.2
-5.5
-5.8
6.4
-2.9
Consumer prices (y-o-y)
-0.2
0.0
-0.2
-0.1
0.5
-0.2
-0.3
-0.1
-0.1
-0.3
-0.7
1. Preliminary
Sources: Japan's Cabinet Office, Ministry of Economy, Trade and Industry, Ministry of Finance, Statistics Bureau of Japan
8 | The Green Book
Japans GDP growth and industrial production

Source: Japans Cabinet Office, Ministry of Economy, Trade and Industry
6
(%)
(%)
25
20
15
10
5
0
-5
-2
-10
-15
-4
-20
-6
2001. Q1
-25
2002. Q1
2003. Q1
2004. Q1
2005. Q1
2006. Q1
2007. Q1
2008. Q1
2009. Q1
2010. Q1
GDP (q-o-q, left)
Eurozone
2011. Q1
2012. Q1
Industrial production (q-o-q, right)
The eurozone economy remained weak in February, with the unemployment rate
reaching a record high level of 12.0 percent and the manufacturing PMI falling
below its baseline of 50 for the 20th consecutive month.
Unemployment rate (%)
2013) [ 12.0 (Feb) (youth unemployment: 23.9%)
Manufacturing PMI (base = 50)
2013) [ 47.9 (Feb) [ 46.6 (Mar)
2010
2011
Annual Annual
2012
2013
Q4
Annual
Q1
Q2
Q3
Q4
Dec
Jan
Feb
Real GDP
2.0
1.4
-0.3
-0.5
0.0
-0.2
-0.1
-0.6
7.4
3.5
-2.1
-2.4
-0.5
-0.5
0.4
-2.4
0.9
-0.4
Retail sales
Exports (y-o-y)
Consumer prices (y-o-y)
0.9
-0.5
-1.2
-1.7
-0.3
-0.8
0.0
-1.5
-0.8
1.2
-0.3
20.1
12.7
8.3
7.4
8.6
8.1
7.4
5.5
-3.1
5.0
1.6
2.7
2.9
2.1
2.7
2.7
2.5
2.3
2.2
2.0
1.8
1. Preliminary
Source: Eurostat
The Green Book | 9
Eurozones GDP growth and industrial production

Source: Eurostat
3
(%)
(%)
10
8
6
4
2
0
-2
-1
-4
-6
-2
-8
-3
2001. Q1
-10
2002. Q1
2003. Q1
2004. Q1
2005. Q1
2006. Q1
2007. Q1
2008. Q1
2009. Q1
2010. Q1
GDP (q-o-q, left)
2.
Private
consumption
2011. Q1
2012. Q1
Industrial production (q-o-q, right)
Private consumption in the fourth quarter (preliminary GDP) of 2012 increased 0.8
percent quarter-on-quarter and 2.7 percent year-on-year.
2011
Private consumption
(y-o-y)
2012
Annual
Q1
Q2
Q3
Q4
Annual
Q1
Q2
Q3
Q4
2.4
0.7
0.6
0.1
-0.2
1.7
0.8
0.4
0.7
0.8
3.2
3.1
2.1
1.2
1.3
1.0
1.7
2.7
1. Preliminary
2. National accounts
Source: The Bank of Korea
Despite an increase in sales of durable goods, such as automobiles, and semidurable goods, such as clothes, retail sales fell 0.1 percent month-on-month in
February, as sales of nondurable goods, including car fuel, decreased. On a yearon-year basis, however, retail sales rose 1.8 percent.
Durable goods sales rose 3.2 percent as automobile sales recovered after taking
a sharp dive in January due to the expiration of the individual consumption tax
cut. Semi-durable goods sales also rose 1.9 percent, led by demand for clothes.
However, nondurable goods sales dropped 2.7 percent due to poor car fuel sales
resulting from a rise in gasoline prices and diminished outdoor activities caused by
heavy snowfalls and the cold weather.
10 | The Green Book
Private consumption
Source: The Bank of Korea (national accounts)
14
(%)
12
10
8
6
4
2
0
-2
-4
-6
2001. Q1
2002. Q1
2003. Q1
2004. Q1
2005. Q1
2006. Q1
2007. Q1
2008. Q1
2009. Q1
2010. Q1
2011. Q1
Private consumption (y-o-y)
2012. Q1
Private consumption (q-o-q)
2011
20131
2012
Annual
Q1
Q2
Q3
Q4
Annual
Q1
Q2
Q3
Q4
Dec
Jan
Feb
4.5
1.4
0.8
0.5
0.0
2.3
1.0
0.3
1.2
0.4
0.4
-2.2
-0.1
5.3
6.2
4.0
2.6
2.8
1.4
2.6
2.5
2.0
-3.1
1.8
- Durable goods
10.6
3.8
0.5
0.7
-0.9
5.3
2.5
1.9
2.8
2.3
2.9
-7.8
3.2
Automobiles
7.0
5.2
-3.3
4.6
-11.3
2.4
2.4
9.4
-1.6
9.0
3.8
-13.8
3.8
- Semi-durable goods
3.7
0.9
1.4
1.7
-2.7
-1.1
-0.4
0.3
-1.1
1.7
0.0
-0.5
1.9
- Nondurable goods
2.1
0.4
0.6
-0.1
1.6
2.3
0.9
-0.6
1.5
-1.1
-0.8
0.0
-2.7
Retail sales
(y-o-y)
1. Preliminary
2. Durable goods: Automobiles, electronic appliances, furniture, telecommunications devices, etc.
3. Semi-durable goods: Clothing, footwear, etc.
4. Nondurable goods: Food, medicine, cosmetics, fuel, tobacco, etc.
Source: Statistics Korea
Retail sales
Source: Statistics Korea (industrial activity trend)
25
(%)
20
15
10
5
0
-5
-10
2001. 1
2002. 1
2003. 1
Consumer goods sales (y-o-y)
2004. 1
2005. 1
2006. 1
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
2012. 1
2013. 1
Consumer goods sales (m-o-m)
The Green Book | 11
Retail sales by type

50
(y-o-y, %)
40
30
20
10
0
-10
-20
-30
2001. 1
2002. 1
2003. 1
2004. 1
2005. 1
2006. 1
Durable goods
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
Semi-durable goods
2012. 1
2013. 1
Nondurable goods
Department store sales rose, but sales at large discount stores, specialized retailers
and nonstore retailers decreased.
2011
20131
2012
Dec
Jan
Feb
0.4
Q4
2.5
-3.9
-4.8
2.6
Annual
Q1
Q2
Q3
Q4
Annual
Q1
Q2
Q3
Department stores
7.7
2.6
0.3
0.7
-0.1
1.8
-0.6
1.1
Large discount stores
5.6
-0.1
2.5
0.8
0.7
2.0
-0.7
0.8
1.2
-0.6
-2.3
-3.8
-0.9
Specialized retailers2
3.5
0.0
2.8
-1.2
0.8
-0.5
0.0
-1.6
1.4
-2.2
0.4
0.4
-0.1
Nonstore retailers
8.3
-0.6
2.6
2.0
1.2
9.8
3.0
2.8
2.6
2.4
-1.7
-1.1
-3.4
1. Preliminary
2. Specialized retailers are defined as stores carrying a few (1 to 3) specialized items.
Retail sales in March may have recovered from January and Februarys slump, as
negative temporary factors, such as poor car sales resulting from the expiration of
the individual consumption tax cut, were relieved, and sales of car fuel increased.
Domestic sales of automobiles in March recovered from the negative effects of the
expiration of the individual consumption tax cut.
Domestic sales of automobiles (thousand)
76 (Aug 2012) [ 101 (Sep) [ 102 (Oct) [ 106 (Nov) [ 115 (Dec) [ 83 (Jan 2013) [ 81 (Feb)
[ 98 (Mar)
Department store sales grew by a wider margin as there were two more weekend and
holiday openings in March compared to the previous month. However, discount
store sales growth turned negative due to an increase in mandatory closure days.
Gasoline sales rose in March, as domestic gasoline prices fell and more weekends
and the holiday led to an increase in outdoor activities.
12 | The Green Book
Gasoline prices (won/liter)

1,988 (4th week Jan) [ 1,994 (1st week Feb) [ 1,992 (2nd week) [ 1,985 (3rd week) [ 1,978 (4th week)
Growth in credit card use expanded due to an overall increase in consumption.
(y-o-y, %)
2012
Aug
Sep
2013
Nov
Dec
Credit card sales
8.0
15.7
Oct
9.2
14.2
7.1
Jan
6.2
Feb
3.4
Mar
5.6
Department store sales
-6.9
-0.8
-0.4
9.1
-0.2
-8.2
1.7
5.9
-4.5
Large discount store sales
-3.3
0.2
-6.6
-1.7
-5.0
-24.6
8.9
Domestic sales of gasoline
-2.7
1.6
7.9
3.7
-2.8
2.9
-8.0
7.3
-13.5
-1.0
Domestic sales of cars
-20.2
-3.1
4.3
13.2
7.5
1.6
Sources: Credit Finance Association of Korea, Ministry of Knowledge Economy, Korea National Oil Corporation, Korea Automobile Manufacturers Association
Ministry of Strategy and Finance (for March data)
Department store and discount store sales (current value)

Source: Ministry of Trade, Industry and Energy (monthly retail sales)
40
(y-o-y, %)
30
20
10
0
-10
-20
-30
2004. 1
2005. 1
2006. 1
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
2012. 1
Department store sales
2013. 1
Discount store sales
Domestic sales of cars

Source: Korea Automobile Manufacturers Association (monthly automobile industry trend)
180
(thousand)
(y-o-y, %)
100
80
160
60
140
40
20
120
100
-20
80
60
2001. 1
-40
-60
2002. 1
2003. 1
Domestic car sales (left)
2004. 1
2005. 1
2006. 1
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
2012. 1
2013. 1
Domestic car sales growth (right)
The Green Book | 13
Consumption has been constrained due to a slowdown in employment and

the burden of household debt, but it may show gradual improvement as the
governments policies for economic revitalization take effect.
Employment growth has been slowing since the fourth quarter of 2012, households
continue to suffer from the burden of debt repayments, and the individual
consumption tax cut on automobiles has expired, leading to a slowdown in
consumption.
Employment growth (y-o-y, thousand)
467 (Q1 2012) [ 430 (Q2) [ 506 (Q3) [ 342 (Q4), 322 (Jan 2013) [ 201 (Feb)
Interest costs compared with household income (%)

1.7 (2007) [ 1.9 (2008) [ 2.0 (2009) [ 2.1 (2010) [ 2.3 (2011) [ 2.3 (2012)
However, consumption may be boosted by stable prices and satisfactory consumer
sentiment, and also when the governments policies result in job creation,
housing market stabilization and reinforcement of the role of public finances.
Consumer price inflation (y-o-y, %)
1.5 (Jul 2012) [ 1.2 (Aug) [ 2.0 (Sep) [ 2.1 (Oct) [ 1.6 (Nov) [ 1.4 (Dec) [ 1.5 (Jan 2013)
[ 1.4 (Feb) [ 1.3 (Jan)
Consumer Sentiment Index (CSI, base=100)
100 (Jul 2012) [ 101 (Aug) [ 99 (Sep) [ 100 (Oct) [ 100 (Nov) [ 99 (Dec) [ 102 (Jan 2013)
[ 102 (Feb) [ 104 (Mar)
Consumer sentiment index

130
(base=100)
120
110
100
90
80
70
2001. Q1
14 | The Green Book
2004. Q1
2007. Q1
2009. 1
2010. 1
2011. 1
2012. 1
2013. 1
3.
Facility investment (preliminary GDP) decreased 1.8 percent quarter-on-quarter

and 5.2 percent year-on-year in the fourth quarter of 2012.
Facility
investment
(Percentage change from previous quarter)
2010
Facility investment
(y-o-y)
- Machinery
- Transportation equipment
2011
2012
Annual
Annual
Q3
Q4
Annual
Q1
Q2
Q3
Q4
25.7
3.6
-1.8
-3.6
-1.9
10.4
-7.8
-5.2
-1.8
1.1
-3.6
8.8
-3.5
-6.9
-5.2
31.2
4.2
-2.3
-1.8
-1.1
11.3
-8.5
-6.0
-3.2
8.3
1.4
-0.1
-10.8
-5.0
6.7
-5.2
-1.7
3.7
1. Preliminary
Facility investment
40
(%)
30
20
10
0
-10
-20
-30
2001. Q1
2002. Q1
2003. Q1
2004. Q1
2005. Q1
2006. Q1
2007. Q1
2008. Q1
2009. Q1
2010. Q1
Facility investment (q-o-q)
2011. Q1
2012. Q1
Facility investment (y-o-y)
Facility investment by type

50
(y-o-y, %)
40
30
20
10
0
-10
-20
-30
-40
2001. Q1
2002. Q1
2003. Q1
Transportation equipment
2004. Q1
2005. Q1
2006. Q1
2007. Q1
2008. Q1
2009. Q1
2010. Q1
2011. Q1
2012. Q1
Machinery
The Green Book | 15
The facility investment index in February increased 6.5 percent month-on-month

as both machinery and transportation equipment investment improved. The
index fell 18.2 percent year-on-year. In the first two months of the year, the index
declined by an average of 1.8 percent, compared with the fourth quarter of 2012, in
which the average monthly growth rate was 0.8 percent.
2010
2011
2012
Annual Annual Annual

Facility investment index
(y-o-y)
- Machinery
- Transportation equipment
Q1
2013
Q2
Q3
Q4
Dec
Jan
Feb
25.8
4.0
-2.0
6.4
-5.0
-6.8
0.8
6.3
-8.7
6.5
10.7
-2.7
-8.2
-6.9
-6.3
-15.6
-18.2
30.2
2.7
-2.2
8.1
-5.5
-6.9
-3.8
2.7
-6.4
6.9
8.9
9.8
-1.1
-1.0
-1.8
-6.7
22.0
21.2
-16.7
5.9
1. Preliminary
The improving consumer sentiment may bode well for facility investment, but poor
leading indicators, such as machinery orders and facility investment adjustment
pressure, may act as negative factors.
Business survey index for manufacturing sector (Bank of Korea)
81 (Jul 2012) [ 70 (Aug) [ 75 (Sep) [ 72 (Oct) [ 70 (Nov) [ 67 (Dec) [ 70 (Jan 2013) [ 72
(Feb) [ 76 (Mar) [ 80 (Apr)
2010
2011
2012
2013
Q1
Q2
Q3
Q4
Dec
Jan
Feb
-13.4
-1.1
-19.8
-10.4
-21.5
-17.0
-6.0
-32.7
-5.3
-18.7
-2.0
3.9
-0.3
1.9
-1.3
Domestic machinery orders
8.0
7.6
(q-o-q, m-o-m)
- Public
-45.7
-2.6
-11.0
126.1
-59.7
86.7
-54.6
31.2
155.1
-77.1
- Private
22.3
8.8
-13.6
-8.7
-15.1
-16.0
-15.1
-21.8
-10.4
-16.0
Machinery imports
40.4
7.1
-3.0
15.3
-4.3
-12.2
-8.2
-7.5
-4.4
-23.4
Average manufacturing operation ratio
80.3
80.2
78.1
79.6
79.0
76.2
77.8
78.4
78.7
77.8
Facility investment adjustment pressure
8.8
1.1
-1.4
0.7
-1.3
-3.0
-1.5
-1.8
6.9
-10.8
1. Preliminary
2. Production growth rate minus production capacity growth rate in the manufacturing sector (%p)
Sources: Statistics Korea, Korea International Trade Association
16 | The Green Book
Machinery orders and machinery imports

Source: Korea International Trade Association (KITA), Statistics Korea
10
(trillion won)
(y-o-y, %)
60
50
40
30
20
10
0
-10
-20
-30
3
2
2001. Q1
70
-40
-50
2002. Q1
2003. Q1
2004. Q1
2005. Q1
2006. Q1
2007. Q1
2008. Q1
2009. Q1
2010. Q1
2011. Q1
Machinery orders (left)
4.
Construction
investment
2012. Q1
Machinery imports (right)
Construction investment (preliminary GDP) in the fourth quarter of 2012 decreased

1.2 percent quarter-on-quarter and 4.2 percent year-on-year.
2010
Construction investment
(y-o-y)
2011
Annual
Annual
-3.7
-4.7
Q3
2012
Q4
Annual
Q1
Q2
Q3
Q4
-0.4
0.1
-2.2
-1.5
-1.3
0.7
-1.2
-3.6
-1.7
-0.4
-3.1
-0.3
-4.2
- Building construction
-1.6
-2.7
-0.3
-1.0
-1.7
0.3
-2.6
0.1
-0.3
- Civil engineering works
-6.2
-7.3
-0.7
1.5
-2.9
-3.9
0.4
1.5
-2.4
1. Preliminary
The value of construction completed (constant) in February increased 7.0 percent

month-on-month and 5.1 percent year-on-year, led by an improvement in building
construction and civil engineering works. The January-February average growth
rate of the value of construction completed improved from that of the fourth
quarter of 2012, surging from 1.4 percent to 5.2 percent.
The Green Book | 17
2010
2011
2012

Construction completed (constant)
Q2
Q3
-5.8
-5.6
-0.9
1.0
-4.9
-9.7
-2.3
Q4
Dec
Jan
Feb
1.4
2.1
-0.2
7.0
-5.6
-8.3
8.9
5.1
-3.2
-6.4
-7.0
-6.9
-7.6
-4.5
-4.8
1.0
1.8
3.0
1.9
7.6
2.2
-5.6
-3.5
-6.9
4.1
0.9
1.0
1.1
-2.7
6.2
(y-o-y)
2013
Q1
1. Preliminary
20
(%)
15
10
5
0
-5
-10
-15
2001. Q1
2002. Q1
2003. Q1
2004. Q1
2005. Q1
2006. Q1
2007. Q1
2008. Q1
2009. Q1
2010. Q1
Construction investment (q-o-q)
2011. Q1
2012. Q1
Construction investment (y-o-y)
Construction investment by type

50
(y-o-y, %)
40
30
20
10
0
-10
-20
-30
2001. 1
2002. 1
2003. 1
Building construction
18 | The Green Book
2004. 1
2005. 1
2006. 1
2007. 1
2008. 1
Residential buildings
2009. 1
2010. 1
2011. 1
2012. 1
Civil engineering works
Construction investment is expected to continue to suffer due to poor leading

indicators such as construction orders and building permit area.
However, the housing market stabilization measures announced on April 1 may
boost housing transactions and have a positive effect on construction investment.
Housing transaction growth (y-o-y, %)
-22.1 (Jul 2012) [ -34.6 (Aug) [ -44.3 (Sep) [ -15.2 (Oct) [ -8.0 (Nov) [ 2.4 (Dec) [ -5.7
(Jan 2013) [ -14.2 (Feb)
(Percentage change from same period in previous year)
2010
2011
2012

Construction orders (current value)
2013
Q1
Q2
Q3
Q4
Dec
Jan
Feb
-17.7
6.1
-8.9
33.3
-0.7
-13.6
-33.1
-43.0
-52.7
-46.4
15.1
-14.8
-6.1
-20.4
-10.8
-23.7
59.6
-8.9
14.0
-8.7
27.4
-7.0
-7.1
-27.4
-37.5
-65.1
-7.1
-28.3
-6.0
-9.3
42.0
12.5
-26.3
-43.7
-51.6
-22.6
-72.6
Building permit area
19.3
9.9
-0.5
8.7
1.2
-7.3
-2.3
9.2
-4.8
-17.6
(q-o-q, m-o-m)
1. Preliminary
Sources: Statistics Korea, Ministry of Land, Infrastructure and Transport
Leading indicators of construction investment

Source: Statistics Korea (construction orders)
Ministry of Land, Infrastructure and Transport (building construction permit area)
340
(y-o-y, %)
290
240
190
140
90
40
-10
-60
-110
2001. 1
2002. 1
2003. 1
Construction orders
2004. 1
2005. 1
2006. 1
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
2012. 1
2013. 1
Building permit area
The Green Book | 19
5.
Exports in March increased 0.4 percent (preliminary) year-on-year to US$47.50

billion.
Exports and
imports
Despite the fact that there was one fewer working day compared to the same
period of the previous year, exports increased thanks to the strong performance of
IT-related items such as mobile phones and semiconductors.
Export growth by item (y-o-y, %)
22.9 (mobile phones), 6.5 (semiconductors), 3.9 (petroleum products), -10.4 (automobiles), 2.9
(automobile parts), -13.2 (steel), -12.5 (vessels)
Average daily exports, an indicator adjusted to days worked, amounted to US$2.11

billion, up 4.8 percent year-on-year and posting growth for the fifth straight month
since November 2012.
Average daily export growth (y-o-y, %)
-2.4 (Sep 2012) [ -1.2 (Oct) [ 3.9 (Nov) [ 7.1 (Dec) [ 1.6 (Jan 2013) [ 2.5 (Feb) [ 4.8 (Mar)
Average daily exports (US$ billion)
2.01 (Mar 2012), 1.97 (Q1) [ 2.10 (Q2) [ 1.90 (Q3), 1.90 (Jan 2013) [ 2.07(Feb) [ 2.11 (Mar)
Exports to China and the ASEAN countries continued to show robust growth, but
exports to the US, EU and Japan remained weak.
Export growth by region (y-o-y, %)
6.2 (China), 17.5 (ASEAN countries), -8.4 (EU), -15.4 (US), -18.0 (Japan)
In the first quarter of 2013, exports inched up 0.5 percent year-on-year despite
a decrease in days worked (1.5 days), while average daily exports increased 2.7
percent.
Exports by type
Source: Korea Customs Service, Ministry of Trade, Industry and Energy (export and import trend)
160
(y-o-y, %)
140
120
100
80
60
40
20
0
-20
-40
-60
-80
2001. 1
2002. 1
2003. 1
Export growth rate
20 | The Green Book
2004. 1
2005. 1
2006. 1
Automobiles
2007. 1
2008. 1
2009. 1
2010. 1
Semiconductors
2011. 1
2012. 1
2013. 1
Steel
(US$ billion)
2012
Exports
2013
Annual
Mar
Q1
Q2
Q3
Q4
Jan
Feb
Mar
Q1
547.87
47.33
134.85
140.13
133.13
139.77
45.70
42.34
47.50
135.54
(y-o-y, %)
-1.3
-1.5
3.0
-1.7
-5.7
-0.3
10.9
-8.6
0.4
0.5
Average daily exports
2.00
2.01
1.97
2.09
1.90
2.04
1.90
2.07
2.11
2.02
1. Preliminary
Source: Korea Customs Service
Imports in March dropped 2.0 percent (preliminary) from the previous year to
US$44.14 billion.
Despite a slight increase in consumer goods imports, imports fell year-on-year as
commodities and capital goods imports declined.
Import growth by category (Mar 1-31, preliminary, y-o-y, %)
0.3 (consumer goods), -2.4 (commodities), -2.2 (capital goods)
Imports by type
Source: Korea Customs Service, Ministry of Trade, Industry and Energy (export and import trend)
100
(y-o-y, %)
80
60
40
20
0
-20
-40
-60
-80
2001. 1
2002. 1
2003. 1
2004. 1
2005. 1
2006. 1
2007. 1
Import growth rate
2008. 1
2009. 1
2010. 1
2011. 1
2012. 1
Commodities
2013. 1
Capital goods
(US$ billion)
2012
Imports
2013
Annual
Mar
Q1
Q2
Q3
Q4
Jan
Feb
Mar
Q1
519.58
45.05
133.67
130.43
125.65
129.83
45.20
40.32
44.14
129.66
(y-o-y, %)
-0.9
-1.1
7.8
-2.8
-6.9
-1.0
3.9
-10.7
-2.0
-3.0
Average daily imports
1.90
1.92
1.95
1.96
1.79
1.89
1.88
1.96
1.96
1.94
1. Preliminary
The Green Book | 21
Exports and imports

Source: Korea Customs Service, Ministry of Knowledge Economy (export and import trend)
60
(US$ billion)
50
40
30
20
10
0
-10
2001. 1
2002. 1
2003. 1
2004. 1
2005. 1
2006. 1
2007. 1
Trade balance
2008. 1
2009. 1
2010. 1
2011. 1
2012. 1
Exports
2013. 1
Imports
The trade balance (preliminary) in March posted a surplus of US$3.36 billion.

(US$ billion)
2012
Trade balance
2013
Annual
Mar
Q1
Q2
Q3
Q4
Jan
Feb
Mar
Q1
28.29
2.28
1.18
9.70
7.47
9.94
0.50
2.02
3.36
5.88
1. Preliminary
6.
Mining and
manufacturing
production
Mining and manufacturing production in February fell 0.8 percent monthon-month and 9.3 percent year-on-year, as weakness in processed metals and
semiconductors & parts offset growth in clothing & fur and medicine & medical
products. The average production growth of January and February registered 0.1
percent, down from 2.9 percent in the fourth quarter of 2012.
Compared to the previous month, production of clothing & fur (up 30.3%), medicine
& medical products (up 6.3%) and medical, precision & optical instruments (up
6.1%) rose, while production of processed metals (down 6.5%), semiconductors &
parts (down 4.0%) and other transportation equipment (down 5.0%) fell.
Compared to a year ago, production of medical, precision & optical instruments
(up 1.0%) and petrochemicals (up 0.3%) increased, while production of mechanical
equipment (down 20.7%), processed metal (down 17.5%) and automobiles (down
16.5%) went down.
22 | The Green Book
The manufacturing inventory-shipment ratio declined by 1.9 percentage points

month-on-month as inventories decreased 2.6 percent and shipments fell 1.0
percent.
Inventories of electric equipment (up 3.8%), automobiles (up 2.7%) and groceries
(up 2.6%) rose month-on-month, while semiconductors & parts (down 13.2%),
mechanical equipment (down 3.9%), and primary metals (down 1.6%) declined.
Shipments of clothing & fur (up 16.0%), audio-visual communications equipment
(up 3.3%) and semiconductors & parts (up 1.4%) climbed, while other transportation
equipment (down 14.8%), processed metals (down 7.4%) and refined petroleum
(down 5.3%) slipped.
The average operation ratio of the manufacturing sector fell by 0.9 percentage
points month-on-month to 77.8 percent.
50
(%)
40
30
20
10
0
-10
-20
-30
2001. 1
2002. 1
2003. 1
2004. 1
2005. 1
2006. 1
2007. 1
2008. 1
2009. 1
2010. 1
Industrial production (m-o-m)
2011. 1
2012. 1
2013. 1
Industrial production (y-o-y)
Shipment and inventory

10
(m-o-m, %)
8
6
4
2
0
-2
-4
-6
-8
-10
2001. 1
2002. 1
2003. 1
Shipment growth
2004. 1
2005. 1
2006. 1
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
2012. 1
2013. 1
Inventory growth
The Green Book | 23
Average manufacturing operation ratio

100
( %)
90
80
70]
60
50
2001. 1
2002. 1
2003. 1
2004. 1
2005. 1
2006. 1
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
2012. 1
2013. 1
(Percentage change from previous quarter or month)
2011
2012
2013
Annual
Q4
Annual
Q1
Q2
Q3
Q4
Dec
Jan
Feb
Mining production (q-o-q, m-o-m)
-0.7
1.7
-0.5
-2.2
2.9
1.6
-1.2
-0.8
(y-o-y)
5.9
3.3
0.8
3.6
1.1
-1.0
-0.1
-0.4
7.6
-9.3
-0.7
1.7
-0.5
-2.3
3.0
1.5
-0.9
-1.2
6.0
3.5
0.8
3.8
1.0
-1.1
-0.2
-0.5
8.0
-9.8
5.6
-0.4
0.7
1.8
-0.3
-2.4
2.0
2.2
-0.9
-1.0
4.0
-1.4
-1.1
0.7
-0.3
-1.4
1.0
1.6
-0.8
-0.4
- Exports
7.7
0.9
3.0
3.2
-0.3
-3.6
3.2
3.1
-1.2
-1.8
Inventory3
1.8
1.8
2.3
1.6
-1.8
-3.0
2.3
2.3
1.1
-2.6
Manufacturing Average operation ratio (%)

activity
Production capacity4
80.2
78.8
78.1
79.6
79.0
76.2
77.8
78.4
78.7
77.8
4.9
4.0
2.2
3.1
2.3
1.9
1.3
1.3
1.1
1.0
Manufacturing production (q-o-q, m-o-m)

Mining and
(y-o-y)
manufacturing
2
Shipment
activity
- Domestic demand
1. Preliminary
2. Including mining, manufacturing, electricity, and gas industry
3. End-period
4. Percentage change from same period in previous year
Although exports of IT-related products such as semiconductors and mobile

phones improved, mining and manufacturing production may decrease due to
production disruptions in the automobile industry.
Average daily export growth (y-o-y, %)
-6.0 (Aug 2012) [ -2.4 (Sep) [ -1.2 (Oct) [ 3.9 (Nov) [ 7.1 (Dec) [ 1.7 (Jan 2013) [ 2.6
(Feb) [ 4.8 (Mar)
Export growth by item (y-o-y, %, Feb [ Mar 2013)

semiconductors (0.9 [ 6.4), mobiles phones (15.1 [ 22.9), automobiles (-16.3 [ -10.4)
24 | The Green Book
7.
Service sector
activity
Service output in February rose 1.7 percent month-on-month due to growth in

most sectors including professional, scientific & technical services, real estate
& renting, and wholesale and retail. On a yearly basis, service activity remained
steady. The average growth of January and February registered 0.1 percent, similar
to that of the fourth quarter of 2012.
Professional, scientific & technical services increased 5.5 percent from the previous
month, as growing construction investment boosted construction technology and
engineering services.
Real estate & renting grew 5.3 percent month-on-month as housing transactions
recovered (27,000 in January to 47,000 in February) from the expiration of the
property acquisition tax cut.
Despite weakness in retail sales, wholesale & retail rose 1.5 percent compared
to the previous month, as growing facility investment helped wholesale-related
consumption such as machinery equipment.
Educational services increased 1.4 percent month-on-month, thanks to a rise
in overhead spending such as college scholarships and Lunar New Year holiday
bonuses in elementary, middle and high schools.
Hotels & restaurants improved for the first time in four months, rising 1.2 percent
from the previous month.
Weight
Service activity index
- Wholesale & retail
- Transportation services
2011
Annual Q1
Q2
20131
2012
Q3
Q4 Annual Q1
0.0
1.6
Q2
Q3
Q4
Dec Jan1 Feb1
100.0
3.2
1.2
0.5
1.2
0.5
0.1
0.9
0.0
0.5 -1.2
1.7
21.6
3.8
1.6
1.0
0.4 -0.3
0.7 -0.1
0.6
0.1
0.7 -1.0 -1.7
1.5
8.5
4.5
2.6 -0.4
1.1 -1.3
1.2
0.2
0.9
0.6
1.2
0.8
0.5 -0.6
- Hotels & restaurants
7.2 -1.3 -0.4
2.2 -2.7 -1.4 -1.2 -0.1
0.9
1.3 -1.9 -1.1 -0.8
1.2
- Publishing & communications services
8.4
5.1
0.7
0.7
0.6
1.6 -0.6
0.2
0.0
14.7
6.8
2.9 -0.5
3.1
2.7 -0.5
1.9
1.6 -0.9 -6.7
5.3
- Financial & insurance services

- Real estate & renting
5.3 -7.6 -0.5 -0.6
3.3
1.0
3.9 -0.8
3.0 -0.4
2.8
2.3 -2.6
0.9 -2.9 -4.3 -4.0
2.3 -1.3
0.5
- Professional, scientific & technical services
5.6
0.5 -3.7
2.7
1.1
4.1
4.0 -0.6
0.8
- Business services
3.3
5.2
1.2
0.5
0.3
3.5
1.2 -1.7 -0.2
- Educational services
- Healthcare & social welfare services
1.2
2.9
0.4 -0.7
1.8
1.3 -5.4
5.5
1.1
2.2
0.7
10.9
2.2
0.5 -1.0
1.1
1.0
0.9
0.6 -1.4
0.0
0.9
3.3 -2.7
1.4
7.5
6.4
3.0
1.4
1.5
5.8
1.4
2.5
1.0
0.2
0.1 -0.4
1.7
1.4
2.8
0.9
2.7 -1.5 -3.0 -5.2 -2.3
0.9
- Entertainment, cultural & sports services
2.9
2.7
0.4
3.0 -1.0
- Membership organizations
3.6
1.6
0.4
0.0 -0.2 -1.2 -1.4 -0.8 -0.4
1.9 -0.6
- Sewerage & waste management
0.6
3.3 -3.2
8.6
0.3 -4.8 -7.9
0.8
2.9 -0.3 -7.3
5.8
1.0
0.5
6.0
2.7
6.4 -7.4
1. Preliminary
Despite a high base effect and weakness in professional, scientific & technical
services, service output is expected to improve in March as rising retail sales
and stock transactions could boost wholesale & retail and financial & insurance
services.
Average daily stock transactions (trillion won)
6.2 (Aug 2012) [ 7.9 (Sep) [ 6.8 (Oct) [ 6.2 (Nov) [ 5.8 (Dec) [ 6.3 (Jan 2013) [ 5.5 (Feb)
[ 6.0 (Mar)
The Green Book | 25
Service industry
Source: Statistics Korea (service industry activity trend)
20
(%)
15
10
5
0
-5
-10
2001. 1
2002. 1
2003. 1
2004. 1
2005. 1
2006. 1
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
2012. 1
2013. 1
Service industry activity (m-o-m)
Service industry activity (y-o-y)
Wholesale & retail

20
(%)
15
10
5
0
-5
-10
2001. 1
2002. 1
2003. 1
2004. 1
2005. 1
Wholesale & retail (y-o-y)
2006. 1
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
2012. 1
2013. 1
Wholesale & retail (m-o-m)
February 2013 service industry by business

(y-o-y, %)
4
2
-2
Wh
ole
sal
e
Tot
al i
nde
x
&r
eta
il
Tra
nsp
ort
atio
ns
erv
ice
Ho
s
tels
&r
est
aur
ant
s
Pub
lish
ing
&c
om
mu
Fin
nic
anc
atio
ial
ns
&i
ser
nsu
vic
es
ran
ce s
Rea
e
r
l es
vic
es
tat
e&
ren
Pro
t
i
ng
ser fess
vic ion
es al,
scie
nti
fic
B
&t
sup usine
ech
s
por s fa
nic
al
t se cili
rvic ty m
es an
age
Edu
me
nt &
cat
ion
bus
al s
ine
erv
ss
i
ces
He
alth
car
e&
soc
ial
we
Ent
lfar
ert
e se
ain
rvic
me
es
nt,
c
u
M
ltu
ral
oth emb
&s
er p ersh
por
ers ip o
ts s
ona rga
erv
l se niz
Sew
ice
a
r
t
v
s
ma era
ice ion
s s, r
ter ge
epa
ial , w
rec ast
ir &
ove e m
ry & an
a
g
rem em
edi ent
atio ,
na
ctiv
itie
s
-4
-6
-8
26 | The Green Book
8.
Employment
The number of workers on payroll in February increased by 201,000 from a year

earlier to 23,980,000 and the employment rate fell 0.3 percentage points from the
previous year to 57.2 percent.
Employment growth plunged as the Lunar New Year holiday fell on the same week
as the February employment survey (Feb 10-16).
Growth in the number of workers in the manufacturing sector slowed down, while
construction workers declined by a larger margin.
By status of workers, the number of regular workers continued to show strong
growth, while the decline in the number of temporary and daily workers accelerated
due to the Lunar New Year holiday.
2010
2011
Annual Annual Q2
Number of employed (million)
2012
Q3
Q4 Annual Feb
Q1
2013
Q2
Q3
Q4
Jan
Feb
23.83 24.24 24.57 24.48 24.46 24.68 23.78 23.93 25.00 24.99 24.80 24.05 23.98
Employment rate (%)
58.7
59.1
59.9
59.5
59.4
59.4
57.5
57.8
60.2
60.0
59.4
57.4
57.2
(Seasonally adjusted)
58.7
59.1
59.1
59.1
59.2
59.4
59.4
59.3
59.4
59.5
59.3
59.2
59.1
Employment growth (y-o-y, thousand)
323
415
402
363
474
437
447
467
430
506
342
322
201
(Excluding agriculture, forestry & fisheries)
405
440
399
414
497
451
484
498
454
504
344
337
216
191
63
112
-12
-75
14
-88 -102
-66
85
140
156
79
33
-2
-41
-35
71
22
77
79
33
17
-40
-48
-95
- Services
200
386
331
472
514
416
516
541
491
397
236
220
222
- Agriculture, forestry & fisheries
-82
-25
-51
-23
-14
-37
-31
-24
-2
-15
-15
- Wage workers
517
427
421
392
374
315
369
360
281
317
303
397
267
Regular workers
697
575
621
572
500
436
417
413
379
485
469
523
529
Temporary workers
-34
-78 -137
-76
-10
-2
95
110
73
- Manufacturing
- Construction
Daily workers
-79 -109
-77 -151
-49 -110
-146
-70
-63 -104 -115 -120 -143 -163 -171
-89
-57
-194
-11
-19
-29
100
121
77
108
150
189
39
-75
-66
-118
-39
34
125
124
133
149
173
143
33
-21
-15
- Male
181
238
221
208
257
234
244
238
242
284
172
173
47
- Female
142
177
181
155
216
203
203
230
188
223
170
149
154
- 15 to 29
-43
-35
-74
-1
-18
-36
-1
-8
-57
-80
-82 -141
- 30 to 39
-4
-47
-13
-83
-56
-31
-53
-65
-80
33
-10
-26
-17
- 40 to 49
29
57
59
46
47
11
32
28
12
-3
48
13
- 50 to 59
294
291
294
270
315
270
308
326
260
273
220
200
176
47
149
137
131
185
222
160
178
251
245
215
182
170
- Non-wage workers
Self-employed workers
- 60 or more
The Green Book | 27
Number of persons employed and employment growth

Source: Statistics Korea (employment trend)
1,200
(thousand)
(million)
25
1,000
800
24
600
400
23
200
0
22
-200
-400
2001. 1
2002. 1
2003. 1
2004. 1
2005. 1
2006. 1
2007. 1
2008. 1
2009. 1
2010. 1
Employment growth (y-o-y, left)
2011. 1
21
2013. 1
2012. 1
Number of employed (seasonally adjusted, right)
Share of persons employed by industry

100
(%)
80
60
70.3 69.9 69.2 68.8 68.4 68.4 69.1 68.9 69.1 68.7 69.2 70.2 71.0 70.8 70.3 69.7 69.2 69.1 69.3 69.2 69.0 68.7 69.0 70.4 70.9 70.9
40
7.0
20
0
7.0
7.0
7.1
7.2
7.3
7.1
7.3
7.1
7.4
7.5
7.6
7.2
7.1
7.2
7.2
7.2
7.2
7.1
7.1
7.1
7.3
7.2
7.2
6.9
6.9
17.9 17.8 17.3 16.9 16.8 16.7 16.6 16.5 16.5 16.4 16.5 16.9 17.0 17.1 16.6 16.3 16.2 16.3 16.4 16.5 16.6 16.7 16.9 17.1 17.4 17.4
4.9
6.1
6.8
7.2
7.2
6.9
7.0
7.0
7.1
6.5
5.0
4.7
5.6
6.5
7.0
7.0
6.8
6.8
6.8
6.9
6.5
4.9
2011. 1 2
10
11
12 2012. 1 2
10
11
12 2013. 1 2
4.4
Services
4.4
Construction
Manufacturing
4.3
4.3
Agriculture, forestry & fisheries
Share of persons employed by status of workers

100
80
(%)
4.7
5.1
5.4
5.6
5.5
5.3
5.3
5.1
5.4
5.2
4.6
4.5
4.5
4.8
5.1
5.4
5.4
5.3
5.3
5.4
5.3
5.2
4.5
4.2
4.2
22.8 23.0 23.3 23.2 23.0 22.9 23.0 23.2 23.4 23.2 23.0 22.9 23.1 23.1 23.4 23.4 23.3 23.2 23.4 23.3 23.2 23.1 22.9 22.7 22.7 22.8
7.2
60
4.8
7.2
7.3
7.5
7.5
7.6
7.4
7.2
6.4
7.0
7.2
7.0
6.5
6.5
6.3
6.6
6.8
6.7
6.7
6.4
6.4
6.7
6.8
6.6
6.2
6.0
20.9 20.5 20.1 20.3 20.5 20.7 20.9 20.5 20.8 20.6 20.5 20.7 20.5 20.5 20.6 20.6 20.5 20.3 20.2 19.9 19.8 19.8 19.9 20.0 19.9 19.7
40
46.9 47.3
20 44.4 44.5 44.2 43.7 43.4 43.3 43.5 43.7 44.3 43.8 44.1 44.9 45.4 45.4 44.9 44.3 44.0 44.4 44.4 45.1 45.2 45.1 45.2 46.2
0
2011. 1 2
Unpaid family workers
28 | The Green Book
10
11
Self-employed workers
12 2012. 1 2
Daily workers
Temporary workers
10
11
12 2013. 1 2
Regular workers
The number of unemployed persons in February decreased by 53,000 year-onyear to 990,000, while the unemployment rate fell 0.2 percentage points from the
previous year to 4.0 percent.
The month-on-month unemployment rate (seasonally adjusted) rose 0.3 percentage
points, but this was mostly due to seasonal factors such as school vacation, job
searching and bids for government job projects, which tend to push up the
unemployment rate in February.
2010
2011
Annual Annual
2012
Q2
Q3
Q4
Annual Feb
2013
Q1
Q2
Q3
Q4
Jan
Feb
Number of persons unemployed (thousand)
920
855
865
786
740
820 1,042
947
841
770
722
847
990
Unemployment growth (y-o-y, thousand)
31
-65
-3
-88
-68
-35
-52
-82
-23
-16
-18
-6
-53
- Male
-7
-48
-32
-48
-41
-26
-49
-54
-19
-16
-13
13
- Female
38
-17
29
-40
-27
-9
-3
-28
-4
-6
-13
-65
Unemployment rate (%)
3.7
3.4
3.4
3.1
2.9
3.2
4.2
3.8
3.3
3.0
2.8
3.4
4.0
(Seasonally adjusted)
3.7
3.4
3.4
3.2
3.1
3.2
3.7
3.5
3.3
3.1
3.0
3.2
3.5
- 15 to 29
8.0
7.6
7.9
6.7
7.1
7.5
8.3
8.2
8.1
6.8
7.0
7.5
9.1
- 30 to 39
3.5
3.4
3.5
3.2
2.9
3.0
3.4
3.2
3.2
2.8
2.7
3.3
3.5
- 40 to 49
2.5
2.1
2.1
2.0
1.9
2.0
2.6
2.4
2.0
2.0
1.8
2.0
2.1
- 50 to 59
2.5
2.1
2.0
2.1
1.8
2.1
2.5
2.3
2.0
2.2
1.8
2.2
2.6
- 60 or more
2.8
2.6
2.3
2.1
1.8
2.4
6.7
4.4
2.0
1.9
1.6
3.3
4.6
The economically inactive population in February was up 409,000 from a year

earlier to 16,950,000, while the labor force participation rate decreased 0.4
percentage points to 59.6 percent.
The number of those economically inactive due to housework (up 177,000), old age
(up 159,000) and education (up 117,000) increased while those due to rest (down
66,000) decreased.
2010
2011
Annual Annual Q2
Economically inactive population (million)
2012
Q3
Q4 Annual Feb
Q1
2013
Q2
Q3
Q4
Jan
Feb
15.84 15.95 15.56 15.85 16.01 16.08 16.54 16.50 15.67 15.90 16.26 16.98 16.95
Labor force participation rate (%)
61.0 61.1 62.0 61.5 61.1 61.3 60.0 60.1 62.3 61.8 61.1 59.5 59.6
(seasonally adjusted)
61.0 61.1 61.2 61.0 61.1 61.3 61.6 61.4 61.4 61.4 61.1 61.1 61.2
Growth in economically inactive population

(y-o-y, thousand)
143
112
66
191
53
128
96
103
110
57
244
239
409
- Childcare
-125
-5
-16
17
23
-2
-9
-7
-3
-9
-7
- Housework
201
101
27
143
103
123
83
85
181
101
126
134
177
- Education
12
-51
-39
-78
-69
-12
-28
-64
39
103
117
174
156
186
175
159
-71 -142 -125 -184
-66
- Old age
- Rest
80
-45
-58
-22
148
90
76
-56
182
163
193
131
-53
107
126
The Green Book | 29
Employment rate
64
(%)
63
62
61
60
59
58
57
56
55
2001. 1
2002. 1
2003. 1
2004. 1
2005. 1
2006. 1
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
Original rate
2012. 1
2013. 1
Seasonally adjusted rate
Unemployment rate
6
(%)
2
2001. 1
2002. 1
2003. 1
2004. 1
2005. 1
2006. 1
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
Original rate
2012. 1
2013. 1
Labor force participation rate

65
(%)
64
63
62
61
60
59
58
57
2001. 1
2002. 1
Original rate
30 | The Green Book
2003. 1
2004. 1
2005. 1
2006. 1
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
2012. 1
2013. 1
9.
Financial markets
9.1 Stock market

The Korean stock price index in March fell 1.1 percent to 2,005 points from the
previous months 2,026 points.
The KOSPI Composite fell until mid-March due to North Korea-related risks and
uncertainties over the bailout of Cyprus, but the KOSPI somewhat recovered later
in the month as the Dow Jones hit record highs and expectations rose over the new
governments stimulus measures.
Foreign investors became net sellers of Korean stocks in March, selling 2.1 trillion
won worth of stocks compared to buying 1.9 trillion won in the previous month.
(End-period)
KOSPI
KOSDAQ
Mar 2013
-21.6 (-1.1%)
535.9
555.0
1,161.7
-11.5 (-1.0%)
119.1
124.0
4.9 (4.1%)
3.8
0.1 (2.7%)
1.9
2.2
0.3 (15.8%)
34.6
-0.4 (-1.1%)
8.5
8.8
0.3 (3.5%)
Mar 2013
Change
Stock price index (points)
2,026.5
2,004.9
Market capitalization (trillion won)
1,173.2
3.7
35.0
Foreign stock ownership (%)
Change1
Feb 2013
Feb 2013
Average daily trade value (trillion won)
19.1 (3.6%)
1. Change from the end of the previous month

Source: Korea Exchange
Stock prices
2,200
(monthly average, KOSPI Jan 4, 1980=100, KOSDAQ Jul 1, 1996=1,000)
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
2001. 1
2002. 1
2003. 1
2004. 1
2005. 1
2006. 1
KOSPI
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
2012. 1
2013. 1
KOSDAQ
9.2 Exchange rate

The won/dollar exchange rate in March rose 28.1 won to 1,111.1 won from 1,083.0
won at the end of February.
The won/dollar exchange rate gradually inched up as the bailout of Cyprus and
political unrest in Italy put eurozone concerns back into the spotlight, and also as
North Korea posed geopolitical risks.
The Green Book | 31
The won/100 yen exchange rate rose 9.5 won in March. Amid a strong won trend,
the weakening of the yen was diluted due to a preference for safe assets resulting
from concerns over the eurozone.
(End-period)
2008
2009
2010
2011
2012
2013
Dec
Dec
Dec
Dec
Dec
Feb
Mar
Change1
Won/dollar
1,259.5
1,164.5
1,134.8
1,151.8
1,070.6
1,083.0
1,111.1
-3.6
Won/100 yen
1,396.8
1,264.5
1,393.6
1,481.2
1,238.3
1,172.0
1,181.5
4.8
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.
Foreign exchange rate

1,800
(month-end, )
1,600
1,400
1,200
1,000
800
600
2001. 1
2002. 1
2003. 1
2004. 1
2005. 1
2006. 1
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
Won/dollar
2012. 1
2013. 1
Won/100 yen
Daily foreign exchange rate trend

1,800
()
1,600
1,400
1,200
1,000
800
600
2008. 1. 2
2008. 8. 11
Won/dollar
32 | The Green Book
2009. 3. 18
2009. 10. 19
2010. 5. 25
2010. 12. 27
2011. 8. 3
2012. 3. 9
2012. 10. 16
Won/100 yen
9.3 Bond market

3-year Treasury bond yields fell 11 basis points in March to 2.52 percent from the
previous months 2.63. Yields fell as external uncertainties resulted in a growing
appetite for safe assets, and also as the government lowered its growth forecast for
the Korean economy to 2.3 percent from 3.0 percent.
(End-period, %)
2007
2008
2009
2010
2011
2012
2013
Dec
Dec
Dec
Dec
Dec
Dec
Feb
Mar
Change1
Call rate (1 day)
5.02
3.02
2.01
2.51
3.29
2.77
2.76
2.75
-1
CD (91 days)
5.82
3.93
2.88
2.80
3.55
2.89
2.82
2.81
-1
Treasury bonds (3 yrs)
5.74
3.41
4.44
3.38
3.34
2.82
2.63
2.52
-11
Corporate bonds (3 yrs)
6.77
7.72
5.56
4.27
4.21
3.29
2.99
2.88
-11
Treasury bonds (5 yrs)
5.78
3.77
4.98
4.08
3.46
2.97
2.74
2.58
-16
1. Basis point, changes from the previous month
Interest rates
10
(monthly average, yearly, %)
9
8
7
6
5
4
3
2
1
2001. 1
2002. 1
2003. 1
2004. 1
3-yr corporate bonds yield
2005. 1
2006. 1
2007. 1
2008. 1
2009. 1
3-yr treasury bonds yield
2010. 1
2011. 1
2012. 1
2013. 1
Overnight call rate (daily)
9.4 Money supply & money market

M2 (monthly average) in January expanded 4.8 percent from a year earlier.
Although the money supply in the foreign sector declined due to the outflow
of foreign investors securities investment capital, M2 growth accelerated as the
money supply in the government sector expanded resulting from an increase in
fiscal spending at the beginning of the year.
The Green Book | 33
(Percentage change from same period in previous year, average)
2008
2009
2010
2011
2012
Annual Annual Annual Annual Annual

2
Q1
Q2
2013
Q3
Q4
Nov
Dec
Jan
Jan1
M1
-1.8
16.3
11.8
6.6
3.8
1.8
3.6
4.3
5.5
5.3
5.8
5.8
454.4
M2
14.3
10.3
8.7
4.2
5.2
5.3
5.6
5.6
4.5
4.4
4.5
4.8
1,831.8
Lf3
11.9
7.9
8.2
5.3
7.8
7.5
8.5
7.9
7.1
7.1
7.34
7.74
2,446.34
2010. 1
2011. 1
2012. 1
1. Balance at end January 2013, trillion won

2. M1 excluding corporate MMFs and individual MMFs while including CMAs
3. Liquidity aggregates of financial institutions (mostly identical with M3)
4. Preliminary
Total money supply

40
(y-o-y, monthly average balance, %)
30
20
10
0
-10
-20
2001. 1
2002. 1
2003. 1
2004. 1
2005. 1
2006. 1
2007. 1
Reserve money
2008. 1
2009. 1
M1
2013. 1
Lf
Bank deposit growth turned positive in February while the growth of asset
management company (AMC) deposits slowed.
Bank deposit growth turned positive (-7.6 trillion won [ 7.7 trillion won) as instant
access deposits soared due to Lunar New Year holiday bonuses and income tax
refunds.
The growth of AMC deposits slowed substantially (15.4 trillion won [ 0.9 trillion
won), led by diminishing seasonal factors such as the re-inflow of corporate funds
from money market funds (MMF).
(Monthly change, end-period, trillion won)
2009
2010
Annual
Annual
2011
2012
Annual
Feb
Annual
2013
Feb
Jan
Feb
Feb1
Bank deposits
54.8
36.9
58.9
14.3
37.0
8.8
-2.4
4.4
1,137.8
AMC deposits
-27.6
-16.7
-16.6
-8.5
18.8
-4.7
15.4
0.9
333.5
1. Balance at end February 2013, trillion won
34 | The Green Book
Deposits in financial institutions

30
(y-o-y, end of monthly balance, trillion won)
20
10
0
-10
-20
2001. 1
10.
Balance of
payments
2002. 1
2003. 1
2004. 1
2005. 1
2006. 1
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
2012. 1
2013. 1
Koreas current account (preliminary) in February posted a surplus of US$2.71

billion, staying in the black for 13 consecutive months.
The goods account surplus inched down from US$2.62 billion in January to
US$2.56 billion in February. There were fewer working days in February due to the
Lunar New Year holiday, leading to a decrease in both exports and imports.
Goods exports (US$ billion)
47.16 (Jan 2013) [ 42.22 (Feb)
Goods imports (US$ billion)
44.55 (Jan 2013) [ 39.66 (Feb)
For the first two months of the year, exports of IT products such as mobile phones
and exports to China improved while vessel exports and exports to the EU
continued to drop.
Export growth by item (y-o-y, %)
11.7 (mobile phones), 5.0 (semiconductors), 1.6 (automobiles), -32.9 (vessels)
Export growth by region (y-o-y, %)
7.5 (China), 2.4 (US), -1.2 (Southeast Asia), -5.4 (Japan), -9.8 (EU)
The Green Book | 35
Despite a deteriorating intellectual property account, the service account narrowed

the deficit from US$0.93 billion in the previous month to US$0.46 billion in
February, helped by improving business service and travel accounts.
The primary income account surplus narrowed to US$0.63 billion from US$0.97
billion due to a decrease in interest income. The secondary income deficit narrowed
to US$0.02 billion from US$0.33 billion in the previous month.
(US$ billion)
2012
2013
Annual
Q1
Feb
Jan-Feb
Q2
Q3
Q4
Jan
Feb1
Jan-Feb1
Current account
43.14
2.56
0.56
-0.41
11.19
14.56
14.94
2.33
2.71
5.04
- Goods balance
38.34
2.61
1.31
-0.31
8.52
13.34
13.98
2.62
2.56
5.18
- Service balance
2.68
-0.65
-1.22
-1.35
2.31
0.65
0.36
-0.93
-0.46
-1.39
- Primary income balance
4.89
1.49
0.61
1.80
0.82
1.04
1.54
0.97
0.63
1.60
- Secondary income balance
-2.76
-0.89
-0.15
-0.56
-0.47
-0.47
-0.93
-0.33
-0.02
-0.35
1. Preliminary
The capital and financial account (preliminary) in February posted a net outflow
of US$3.27 billion.
Capital & financial account balance (US$ billion)
-1.38 (Q1 2012) [ 7.97 (Q2) [ -13.34 (Q3) [ -20.96 (Q4), -0.91 (Jan 2013) [ -3.27 (Feb)
Net outflow in direct investment contracted to US$0.78 billion from the previous
months US$1.42 billion due to a decrease in overseas direct investment.
The portfolio investment account switched to a net inflow of US$1.99 billion from
a net outflow of US$4.37 billion as foreign investors equity investment turned to
a net inflow and also due to expansion of foreign investors bond investment.
The net inflow of financial derivatives expanded slightly to US$0.69 billion from
US$0.59 billion in the previous month, while the other investment account
switched to a net outflow of US$3.22 billion from a net inflow of US$4.64 billion
as banks foreign borrowings switched to a net redemption.
The current account in March is expected to maintain a surplus, helped by a
goods account surplus resulting from a trade surplus in March.
36 | The Green Book
Current account balance

Source: The Bank of Korea (balance of payments trend)
(US$ billion)
8
6
4
2
0
-2
-4
-6
2001. 1
2002. 1
2003. 1
2004. 1
2005. 1
2006. 1
Goods account
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
Service account
2012. 1
2013. 1
Current account
Travel account balance

(US$ billion)
4
3
2
1
-1
-2
-3
2001. 1
2002. 1
2003. 1
2004. 1
2005. 1
2006. 1
Travel balance
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
Travel revenue
2012. 1
2013. 1
Travel payment
Capital & financial account balance

15
(US$ billion)
10
5
0
-5
-10
-15
2001. 1
2002. 1
2003. 1
Portfolio investment
2004. 1
2005. 1
2006. 1
Direct investment
2007. 1
2008. 1
2009. 1
Financial derivatives
2010. 1
2011. 1
2012. 1
2013. 1
Capital & financial account
The Green Book | 37
11.
11.1 Prices
Prices and
international
commodity
prices
Consumer prices in March rose 1.3 percent year-on-year, staying stable at the 1.0
percent range for five consecutive months. On a year-on-year basis, prices fell 0.2
percent month-on-month,
Core consumer prices, which exclude oil and agricultural products, rose 1.5 percent
year-on-year but fell 0.2 percent month-on-month. Core consumer prices based
on the OECD method, which exclude food and energy, rose 1.4 percent year-onyear but fell 0.4 percent month-on-month. Consumer prices for basic necessities,
a barometer of perceived consumer prices, were up 0.8 percent year-on-year and
down 0.4 percent month-on-month.
The average annual expected inflation remained unchanged from the previous
month and the import prices declined 8.6 percent year-on-year.
Expected inflation (%)
3.7 (Jul 2012) [ 3.5 (Aug) [ 3.3 (Sep) [ 3.3 (Oct) [ 3.2 (Nov) [ 3.1 (Dec) [ 3.2 (Jan 2013)
[ 3.2 (Feb) [ 3.2 (Mar)
Import price increases (y-o-y, %, won base)
0.5 (Aug 2012) [ -2.2 (Sep) [ -6.4 (Oct) [ -7.9 (Nov) [ -9.0 (Dec) [ -10.6 (Jan 2013) [ -8.6 (Feb)
<Consumer price inflation>
(%)
2012
2013
Month-on-Month
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
0.4 -0.1 0.0 0.2 -0.1 -0.2 0.4 0.7 -0.1 -0.4 0.2 0.6 0.3 -0.2
Year-on-Year
3.1 2.6 2.5 2.5 2.2 1.5 1.2 2.0 2.1 1.6 1.4 1.5 1.4 1.3
Consumer prices excluding oil and agricultural

products (y-o-y)
2.5 1.9 1.8 1.6 1.5 1.2 1.3 1.4 1.5 1.3 1.2 1.2 1.3 1.5
Consumer prices excluding food and energy (y-o-y)

Consumer prices for basic necessities (y-o-y)
2.6 1.7 1.6 1.5 1.4 1.2 1.2 1.4 1.4 1.4 1.4 1.4 1.2 1.4
2.8 2.0 2.0 2.2 1.8 0.8 0.6 1.7 1.6 1.0 0.7 0.8 0.8 0.8
Prices
Source: Statistics Korea (consumer price trend) & The Bank of Korea (producer prices)
16
(y-o-y, %)
13
10
7
4
1
-2
-5
2001. 1
2002. 1
2003. 1
Consumer price inflation
38 | The Green Book
2004. 1
2005. 1
2006. 1
2007. 1
2008. 1
Core inflation
2009. 1
2010. 1
2011. 1
2012. 1
2013. 1
Producer price inflation
The prices of manufactured products (up 0.5%, m-o-m) rose due to an increase
in international oil and grain prices, but those of agricultural, livestock & fishery
products (down 2.2%, m-o-m) and personal services (down 0.8%, m-o-m) fell as a
result of improved weather conditions and government policies such as childcare
subsidies, allowing the growth in overall consumer prices to stabilize.
Agricultural, livestock & fishery product prices decreased 2.2 percent month-onmonth. Fishery product prices (up 0.3%, m-o-m) rose slightly, while the prices of
agricultural (down 2.7%, m-o-m) and livestock products (down 2.7%, m-o-m) fell.
Manufactured product prices climbed 0.5 percent month-on-month. The prices
of durable goods (down 0.3%, m-o-m) decreased, while those of oil products (up
1.4%, m-o-m) and processed food (up 0.8%, m-o-m) increased.
Personal service prices fell 0.8 percent month-on-month due to falling dining
out expenses (down 0.2%, m-o-m) and other personal service prices (down 1.2%,
m-o-m) due to expanded subsidies for childcare, preschool and school meals.
<Consumer price inflation in major sectors>

Agricultural, livestock & Manufactured products

fishery products
Oil products
Total
Month-on-Month (%)
Public
utilities
Housing Public Personal

rents
services services
-0.2
-2.2
0.5
1.4
1.8
0.3
0.1
-0.8
-0.19
-0.19
0.15
0.08
0.09
0.03
0.01
-0.27
Year-on-Year (%)
1.3
-0.6
0.8
-2.6
6.1
2.9
0.8
1.4
Contribution (%p)
1.32
-0.05
0.27
-0.16
0.30
0.27
0.11
0.45
Contribution (%p)

Source: Statistics Korea (consumer price trend)
7
(%)
6
5
4
3
2
1
0
-1
2001. 1
2002. 1
2003. 1
2004. 1
Consumer price inflation (m-o-m)
2005. 1
2006. 1
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
2012. 1
2013. 1
Consumer price inflation (y-o-y)
The Green Book | 39
Contribution to consumer price inflation

Source: Statistics Korea (consumer price trend)
5
(%p)
4
3
2
1
0
-1
2004
2003
2005
2006
Agricultural, livestock &

fishery products
2007
2008
2009
2010
Manufactured products
Housing rents
Personal services
Public utilities
2011
2012
Public services
11.2 International oil and commodity prices

International oil prices were steady in March due to stabilized supply and demand.
Meanwhile, domestic oil product prices rose early in the month but slid later.
Dubai crude prices were steady around US$105 per barrel as a result of stabilized
supply and demand due to increased production in non-OPEC countries, the
resumption of nuclear talks with Iran and the Cyprus crisis.
Dubai crude ($/barrel)
106.0 (1st week Mar) [ 105.4 (2nd week) [ 105.0 (3rd week) [ 105.9 (4th week, down 5.0%
compared to February average)
International oil prices

Source: Korea National Oil Corporation
160
($/B)
140
120
100
80
60
40
20
0
2001. 1
2002. 1
Dubai crude
40 | The Green Book
2003. 1
2004. 1
2005. 1
2006. 1
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
2012. 1
2013. 1
WTI crude
(US$/barrel, period average)
2010
2011
2012
2013
Annual
Annual
Annual
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Dubai crude
78.1
105.9
109.0
111.2
109.0
107.3
106.4
107.9
111.1
105.6
Brent crude
79.7
111.0
111.7
113.0
111.6
109.3
109.2
112.7
116.2
109.0
WTI crude
79.5
95.1
93.8
94.5
89.5
86.6
88.2
94.8
95.3
92.9
Domestic oil product prices rose early in the month, hitting a yearly high of 1,994.1
won on March 6, then slid later in the month. Domestic gasoline prices fell for
three consecutive weeks since the first week of March.
Gasoline prices (won/liter)
1,993.8 (1st week Mar) [ 1,992.4 (2nd week) [ 1,985.5 (3rd week) [ 1,978.2 (4th week)
(US$/barrel, period average)
2010
2011
2012
2013
Annual
Annual
Annual
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Gasoline prices
1,710.4
1,929.3
1,985.8
2,024.5
2,005.7
1,956.0
1,935.6
1,924.6
1,952.5
1,986.5
Diesel prices
1,502.8
1,745.7
1,806.3
1,836.7
1,820.8
1,777.7
1,760.0
1,749.6
1,766.7
1,786.0
Dubai crude prices and import prices

160
(thousand won/B)
($/B)
160
140
140
120
120
100
100
80
80
60
60
40
40
20
2004. 1
20
2005. 1
2006. 1
Dubai crude (import prices, won, left)
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
2012. 1
2013. 1
Dubai international prices (dollar, right)
The Green Book | 41
International grain prices declined as US inventories exceeded expectations, while

nonferrous metal prices continued to fall.
The prices of wheat and corn increased for most of March but decreased
substantially at the end of the month due to the supply forecast* and better than
expected US inventories. Soybean prices, which had been weakening all month,
also plunged at month-end.
* The US Department of Agriculture (USDA) upgraded its 2012-13 world grain production
forecast by 0.1 percent in its March report.
US grain inventories (March 1st, billion bushel)
Corn (5.40) (market expectation: 5.00), soybean (1.00) (market expectation: 0.95), wheat (1.23)
(market expectation: 1.17)
Despite an improvement in Chinas PMI (50.4 in Feb [ 51.7 in Mar), nonferrous

metal prices continued to fall due to the Cyprus crisis and reappearing concerns
over the eurozone fiscal crisis.
Prices of nonferrous metals in March (m-o-m, %)
Zinc (-8.8), lead (-7.8), aluminum (-6.8), nickel (-5.6), copper (-5.1)
<Reuters index*>

(Period average)
2010
2011
2012
2013
Annual
Annual
Annual
Sep
Oct
Nov
Dec
Jan
Feb
Mar
2,553
3,062
3,006
3,172
3,110
3,067
3,037
2,996
2,990
2,947
* A weighted average index of 17 major commodities

Source: KOREA PDS
International commodity prices

Source: Bloomberg (CRB), The Bank of Korea (Reuters index)
* CRB demonstrates a futures price index of 21 commodities listed on the US Commodity Transaction Market, including beans and other
crops, crude oil and jewelry.
470
4,000
430
390
3,000
350
310
2,000
270
230
1,000
190
150
1997. 1
1998. 1
1999. 1
CRB (left)
42 | The Green Book
2000. 1
2001. 1
2002. 1
2003. 1
2004. 1
2005. 1
2006. 1
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
2012. 1
0
2013. 1
Reuters index (right)
12.
12.1 Housing market
Real estate
market
Nationwide apartment sales prices continued a downward trend in March, falling

0.1 percent from the previous month.
Apartment sales prices in the Seoul metropolitan area (down 0.3%, m-o-m)
declined by a smaller margin than the previous month (down 0.4%, m-o-m).
Apartment sales price growth accelerated in areas excluding the Seoul metropolitan
area, in particular Daegu (up 0.3%, m-o-m), North Gyeongsang Province (up 0.7%,
m-o-m) and Sejong (up 1.3%, m-o-m). Apartment prices in the five metropolitan
cities remained unchanged and other cities rose 0.1 percent.
<Nationwide apartment sales prices>

2012
2013
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec Jan-Mar Jan
Feb
Mar Mar 41 Mar 111 Mar 181 Mar 251
Nationwide
-0.1
-0.3
-0.4
-0.4
-0.3
-0.3
-0.2
-0.3
-0.7
-0.3
-0.2
-0.1 -0.03 -0.01 -0.01 0.01
Seoul
-0.5
-0.8
-0.7
-0.9
-0.7
-0.6
-0.5
-0.6
-1.1
-0.6
-0.4
-0.1 0.01 0.00 -0.04 -0.03
Gangnam
-0.6
-1.0
-0.9
-1.3
-0.9
-0.7
-0.4
-0.7
-1.0
-0.8
-0.3
0.0 0.07 0.05 0.03 0.01
-0.5
-0.6
-0.5
-0.5
-0.4
-0.5
-0.6
-0.5
-1.2
-0.5
-0.5
-0.3 -0.06 -0.06 -0.13 -0.08
-0.4
-0.6
-0.6
-0.8
-0.7
-0.6
-0.5
-0.6
-1.3
-0.7
-0.4
-0.3 -0.05 -0.05 -0.07 -0.04
0.1
-0.1
-0.2
-0.3
-0.1
0.0
0.1
0.1
0.0
0.1
0.0
0.0 0.02 0.03 0.07 0.08
Gangbuk
Seoul metropolitan area

5 metropolitan cities
1. Weekly trends
2. Upscale area of Southern Seoul
3. Northern Seoul
Source: Korea Appraisal Board (since Jan 2013)
Apartment sales prices by region

Source: Kookmin Bank
4
(m-o-m, %)
3
2
1
0
-1
-2
2009. 1
7
Nationwide
2010. 1
2011. 1
2012. 1
2013. 1
Metropolitan cities
The Green Book | 43
Nationwide apartment rental prices continued to rise in March (up 0.5%, m-o-m).
Rental prices in the Seoul metropolitan area and the five metropolitan cities rose
0.5 percent and 0.4 percent, respectively.
Apartment rental price increase in major districts in Seoul (m-o-m, %)
Gangnam (0.7), Seocho (0.0), Songpa (0.4), Yangcheon (1.4), Seongdong (1.4), Jungnang (1.3)
<Nationwide apartment rental prices>

2012
Nationwide
2013
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec Jan-Mar Jan
Feb
0.0
-0.1
-0.2
-0.1
0.3
0.4
0.4
0.3
0.3
1.0
0.3
Mar 41 Mar 111 Mar 181 Mar 251
Mar
0.5 0.11 0.18 0.15 0.13
Seoul
-0.5
-0.4
-0.5
-0.3
0.6
0.8
0.7
0.2
1.7
0.4
0.6
0.7 0.22 0.23 0.19 0.12
Gangnam2
-0.5
-0.4
-0.6
-0.4
0.8
1.0
0.9
0.3
1.7
0.5
0.6
0.6 0.22 0.21 0.11 0.11
Gangbuk3
-0.4
-0.4
-0.4
-0.1
0.4
0.6
0.4
0.1
1.6
0.3
0.6
0.8 0.23 0.25 0.28 0.13
Seoul metropolitan area -0.2
-0.2
-0.4
-0.2
0.4
0.5
0.4
0.1
1.1
0.2
0.3
0.5 0.14 0.22 0.17 0.13
0.1
-0.1
-0.2
0.2
0.3
0.4
0.4
1.0
0.3
0.3
0.4 0.10 0.10 0.14 0.15
5 metropolitan cities
0.3
1. Weekly trends
2. Upscale area of Southern Seoul
3. Northern Seoul
Source: Korea Appraisal Board (since Jan 2013)
Apartment rental prices by region

Source: Kookmin Bank
4
(m-o-m, %)
3
2
1
0
-1
-2
2009. 1
7
Nationwide
2010. 1
2011. 1
2012. 1
2013. 1
Metropolitan cities
Apartment sales transactions in February increased 100.9 percent from the

previous months 16,968 to 34,089, but were down 11.9 percent from a year earlier
(38,694).
44 | The Green Book
<Apartment sales transactions>

2009 2010
2011
Annual Annual Nov Dec

Nationwide
53
48
(Monthly average, thousand)
55
77
2012
2013
Jan
Feb
Mar
Apr May
Jun
Jul
18
39
47
45
37
38
46
Aug Sep
31
Oct
Nov Dec
Jan
Feb
45
50
81
17
34
2012. 1
26
Source: Ministry of Land, Infrastructure and Transport
Monthly transaction volume

Source: Ministry of Land, Infrastructure and Transport
140
(thousand)
120
100
80
60
40
20
0
2006. 1
7
Nationwide
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
2013. 1
Areas excluding the Seoul Metropolitan area
12.2 Land market

Nationwide land prices in February rose 0.07 percent month-on-month, but were
still 0.01 percent lower than the pre-crisis peak reached in October 2008.
Land price growth in the Seoul metropolitan area (up 0.05%, m-o-m) turned
positive, with prices in Seoul (up 0.06%, m-o-m) showing significant growth.
Land price increases in Seoul metropolitan area (m-o-m, %)
0.10 (Jun 2012) [ 0.03 (Jul) [ -0.01 (Aug) [ -0.02 (Sep) [ 0.03 (Oct) [ 0.04 (Nov) [ 0.06
(Dec) [ -0.01 (Jan 2013) [ 0.05 (Feb)
Land prices continued to rise in areas excluding the Seoul metropolitan area (up
0.11%, m-o-m), with Sejong (up 0.63%, m-o-m) posting the highest growth rate in
the nation for the 12th straight month in February.
Land price increases in areas excluding Seoul metropolitan area (m-o-m, %)
0.13 (Jun 2012) [ 0.13 (Jul) [ 0.11 (Aug) [ 0.10 (Sep) [ 0.11 (Oct) [ 0.12 (Nov) [ 0.12
(Dec) [ 0.11 (Jan 2013) [ 0.11 (Feb)
The Green Book | 45
<Land prices by region>

2008 2009 2010
2011
2012
2013
Annual Annual Annual Annual
Q1
Q2
Q3
Q4
Annual
Q1
Q2
Q3
Q4
Jan-Feb Jan
Feb
Nationwide
-0.31
0.96
1.05
1.17
0.29
0.30
0.29
0.29
0.87
0.30
0.33
0.12
0.21
0.10
0.03
0.07
Seoul
-1.00
1.40
0.53
0.97
0.40
0.28
0.17
0.12
0.33
0.17
0.26 -0.14
0.09
0.00 -0.06
0.06
Gyeonggi
-0.26
1.22
1.49
1.47
0.26
0.38
0.43
0.39
0.97
0.34
0.34
0.17
1.32
0.07
0.04
0.03
Incheon
1.37
1.99
1.43
0.66
0.17
0.18
0.15
0.15
0.36
0.21
0.16 -0.03
0.13
0.09
0.01
0.08
2005
2006
2007
Source: Korea Appraisal Board
Land prices by region

Source: Korea Land & Housing Corporation (land price trend)
15
(%)
12
9
6
3
0
-3
-6
-9
-12
-15
-18
1994
1995
1996
National average
1997
1998
1999
2000
2001
2002
Metropolitan area
2003
2004
City
2008
2009
2010
2011
2012
County
Nationwide land transactions in February were 142,000 land lots, up 0.6 percent
from the previous month but down 14.4 percent from 165,000 a year earlier.
Monthly land transactions increased in Seoul (up 1.1%, m-o-m), Gwangju (up
42.9%, m-o-m), Daejeon (up 33.1%, m-o-m), and Daegu (up 22.9%, m-o-m).
Transactions of vacant land decreased 14.1 percent month-on-month to 65,000
lots, making up 45.6 percent of the total amount of transactions, and were down
17.8 percent from 79,000 a year earlier.
46 | The Green Book
<Land sales transactions>

(Land lot, thousand)
2008 2009 2010 2011
2012
Annual1 Annual1 Annual1 Annual1 Annual1 Feb

Nationwide
2013
Mar
Apr May
Jun
Jul
Aug Sep
Oct
Nov Dec
Jan
Feb
208
203
187
208
170
165
187
182
186
163
167
150
133
172
185
224
141
142
26
22
16
18
13
12
14
15
15
13
12
10
15
16
20
10
10
Seoul
Gyeonggi
45
46
41
43
33
30
37
36
35
32
34
30
27
35
36
45
29
28
Incheon
13
10
10
10
10
1. Monthly average
Source: Korea Land & Housing Corporation
Land and consumer prices since 1970s

Source: Korea Appraisal Board (land prices), Statistics Korea (consumer prices)
60
(y-o-y, %)
50
40
30
20
10
0
-10
-20
1975
1980
1985
1990
1995
2000
2005
Land price inflation
2010
2012
Land trade volume

Source: Korea Land & Housing Corporation (land trade trend)
500,000
(thousand square meter)
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
2001. 1
2002. 1
2003. 1
2004. 1
2005. 1
2006. 1
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
2012. 1
2013. 1
Areas excluding the Seoul metropolitan area
The Green Book | 47
13.
Composite
indices of
business cycle
indicators
Industrial output in February increased 1.2 percent month-on-month but

decreased 1.9 percent year-on-year. Output in construction (up 7.0%, m-o-m),
public administration (up 3.2%, m-o-m) and services (up 1.7%, m-o-m) rose, while
output in mining & manufacturing (down 0.8%, m-o-m) fell.
The cyclical indicator of the coincident composite index rose 0.1 point in February.
Four components, such as the value of construction completed, service activity,
imports and domestic shipment, increased while mining & manufacturing
production and retail sales decreased.
Components of the coincident composite index in February (m-o-m)
value of construction completed (3.0%), service activity (0.6%), imports (1.2%), domestic
shipment (0.2%), mining & manufacturing production (-0.2%), retail sales (-0.6%), nonfarm
payroll employment (0.0%)
The cyclical indicator of the leading composite index fell 0.1 point from the
previous month.
Five components, including construction orders received, KOSPI and consumer
expectations index, were higher compared to the previous month while the ratio
of job openings to job seekers, domestic shipment of machinery and indicator of
inventory cycle fell.
Components of the leading composite index in February (m-o-m)
value of construction orders received (3.1%), KOSPI (1.3%), consumer expectations index
(0.9p), international commodity prices (0.3%), ratio of export to import prices (0.2%), ratio
of job openings to job seekers (-3.7%p), domestic shipment of machinery (-2.6%), indicator of
inventory cycle (-0.7%p), spreads between long & short term interest rates (0.0%p)
2012
Jul
Aug
Sep
2013
Oct
Nov
Dec
Jan
Feb1
Industrial output (m-o-m, %)
0.7
-1.4
1.1
-0.4
1.1
1.0
-1.0
1.2
(y-o-y, %)
1.5
-0.5
1.0
-1.0
1.4
-0.2
3.1
-1.9
Coincident composite index (m-o-m, %)
0.5
-0.1
0.5
-0.1
0.6
0.5
0.4
0.5
99.8
99.3
99.3
98.9
99.1
99.2
99.2
99.3
(m-o-m, p)
0.1
-0.5
0.0
-0.4
0.2
0.1
0.0
0.1
Leading composite index (m-o-m, %)
0.6
0.1
-0.1
0.3
0.7
0.7
0.2
0.3
100.1
99.8
99.4
99.3
99.6
100.0
99.8
99.7
0.1
-0.3
-0.4
-0.1
0.3
0.4
-0.2
-0.1
Cyclical indicator of coincident composite index
Cyclical indicator of leading composite index

(m-o-m, p)
1. Preliminary
48 | The Green Book
Industrial output
20
(%)
15
10
5
0
-5
-10
-15
2001. 1
2002. 1
2003. 1
2004. 1
2005. 1
2006. 1
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
Industrial output (m-o-m)
2012. 1
2013. 1
Industrial output (y-o-y)
Cyclical indicator of coincident composite index

110
(points)
105
100
95
90
2001. 1
2002. 1
2003. 1
2004. 1
2005. 1
2006. 1
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
2012. 1
2013. 1
2006. 1
2007. 1
2008. 1
2009. 1
2010. 1
2011. 1
2012. 1
2013. 1
Cyclical indicator of leading composite index

110
(points)
105
100
95
90
2001. 1
2002. 1
2003. 1
2004. 1
2005. 1
The Green Book | 49
Policy Issues
Key economic policy directions

The government economic policies for 2013 are aimed at realizing the national
vision of a new era of hope and happiness, by supporting the working class and
promoting a creative economy.
The government will adopt aggressive macroeconomic policies, improve
regulations to be more employment-friendly, and create an environment where a
creative economy can flourish.
The administration will pave the way for securing the livelihoods of low- and
middle-income families through stable inflation and tailored welfare programs,
which range from micro-financing to housing and education support.
The government will pursue economic democratization by creating fairer and
more transparent markets, and developing a system which protects economically
vulnerable groups.
To more efficiently manage risks in such volatile domestic and global situations,
the 2013 policies incorporate reinforcing crisis response systems and improving
risk management.
The government will improve its fiscal situation in order to successfully implement
the new administrations priorities and set up a policy implementation system by
facilitating intra-governmental cooperation.
50 | Policy Issues
<2013 policy directions of the Park Geun-hye Administration>

Aim
Economic recovery and creative economy promotion
Key policies
Employment growth
Better living conditions
Economic democratization
Aggressively managing
macroeconomy
Stabilizing prices
Promoting fair competition
Tasks
Boosting both exports and Increasing micro-financing Requiring transparent

domestic demand
and easing housing and
and responsible business
education burdens
management
Adopting employmentfriendly regulations
Providing an environment
that creates a creative
economy
Requirement
Developing tailored
welfare programs
Protecting the
economically vulnerable
Strengthened risk
management
Reinforcing crisis response

systems
Dealing with sectoral risk
factors
Improving fiscal soundness and promoting intra-governmental cooperation
Major policy tasks for 2013

1. Job creation
1) Active macro-policy management
The government will exceed its target to frontload 60 percent of the budget in the first
half of the year and the working classes will be supported through supplementary
spending. In April, the government will work on devising supplementary
budgets and changing fund management plans in order to support the working
class, promote economic recovery and preserve revenues. The government
will contribute to a recovery in middle and long-term fiscal soundness through
economic revitalization. Investments in public institutions will be expanded by 1
trillion won mainly through SOC areas.
The Bank of Korea will strengthen its Aggregate Credit Ceiling Loan support
for small- and medium-sized enterprises (SMEs) and exporters that are having
difficulties with financing, and other policy funding programs will be expanded.
* SME policy financing will be frontloaded by 60% in the first half of the year and additional
increases will be reviewed.
Financial support will be strengthened for the working class, and measures, such as
house poor support and the National Happiness Fund will be prepared to relieve
the household debt burden.
* Support will be expanded (3.5 [ 4.0 trillion won) through the Smile Microcredit, the Sunshine
loan, the New Hope loan, the Switch-over Dream loans and etc.
Policy Issues | 51
The government will respond to any excessive volatility in foreign exchange markets
caused by advanced economies quantitative easing programs. The government will
seek to strengthen international cooperation through various channels, such as the
G20, in order to minimize the negative effects of advanced economies monetary
policies on the Korean economy.
2) Fostering domestic demands and exports
Growth will be boosted by revitalizing investment and consumption. In May,
the private and public sectors will jointly prepare for measures to improve the
investment climate.
* Personnel and location-related regulations will be eased and financing support will be given
for SMEs to change out used facilities.
In order to revitalize foreign investment, various measures will be prepared in

May, such as employment-friendly incentive reforms, an expansion of immigrant
investor programs, and an exemption of tax on intra-transaction profits of foreigninvested firms. Working class income will increase through SME worker support
and a reasonable minimum wage.
SME and service industry-centered export support will be strengthened. Export
financing will be frontloaded by 60 percent during the first half, and SMEs
capability to fight intellectual property rights disputes will be boosted. In April,
measures to support export SMEs that are vulnerable to exchange rate volatility
will be prepared. A report on trade barriers for services will be published in
September and foreign tourist administrative expediency will be improved. The
Trade Investment Promotion Meeting will be held quarterly to conceive of
measures to vitalize exports.
Financing support for home buyers will be expanded, tax burdens, such as the
acquisition tax and transfer tax, will be relieved, and housing market-related
regulations will be eased.
3) Improving systems to be more employment-friendly
The government will push ahead with major projects and policies from the
perspective of job creation. A middle-term Job Roadmap will be prepared to
achieve 70 percent employment and results will be monitored through the Job
Recovery Meeting. The evaluation result of major fiscal projects in terms of job
creation will be actively utilized in the formulation and execution of other fiscal
projects, and an employment-friendly tax system will be drawn up.
Jobs will be created through public sector job creation programs and by increasing
employment support for businesses. More jobs will be available in the public sector
throughout the year, and public institutions recruitment will be expanded from
15,374 to 16,251. Jobs will also be created by promoting connections among local
governments, universities and businesses. Working conditions will be improved
to be more employment-friendly: The government will come up with a system
which will shorten the working hours for pregnant workers, and childcare-friendly
policies will include Fathers Month. The support system for female-owned
businesses will be reformed, and benefits will be made accessible to female-friendly
businesses in addition to companies with female CEOs. Work hour conditions
for long-hour workers will be improved, through rolling-over hours worked. The
52 | Policy Issues
Comprehensive Job Information Network, which links together public and private
sector job information, will provide a broader range of employment information.
4) Laying the foundations for a creative economy
The government will promote a positive environment where entrepreneurs are
unafraid to start businesses, even though they may fail, and try again in the event
that they do. Measures to support new businesses and ventures at each stage of the
business life cycle will be prepared in June.
At the business creation stage, the government will encourage increased investment
in new businesses. In order to induce adventurous investment by the private
sector, public institutions, such as the Korea Fund of Fund and the Korea Finance
Corporation, will share more investment risks by launching a pilot program called
the National Creative Economy Creation Fund. Conditions for the financing of new
businesses will be improved through the introduction of crowd funding programs.
To facilitate withdrawals by early investors, a market will be opened for those who
wish to sell their stakes in venture businesses. Tax support will be expanded to
promote mergers and acquisitions of technological innovation SMEs, and the
KONEX market, a capital market for SMEs, will be established.
At the rechallenge stage, financial burdens from past failures will be eased,
including burdens owing to joint sureties, and comebacks will be supported. Joint
sureties required by nonbanking institutions will be lifted and postponements will
be granted on delinquent taxes for people trying to start another business.
Support for creative service industries will be increased to the same level of support
that the manufacturing industry receives, which is expected to foster creative
entrepreneurship.
* Creative service industries include film, computer games, tourism, entertainment, consulting,
health insurance, MICE and industries that converge with the aforementioned industries.
Measures to advance the service industry by revitalizing R&D and utilizing IT

will be prepared in May. Tax support and budgets for R&D investments will be
expanded to develop creative human resources, the core competency of creative
service industries.
There will be additional tax incentives for creative service industries, including
the following areas: job creation investment, SME investment, and SME startups.
Corporate and income tax credits will be given to SMEs that profit from technology
transfers, such as patent rights. Exports by creative service industries, such as MICE
and tourism, will receive the same level of tax incentives and financial support that
other merchandise export industries receive.
2. Supporting the working class

1) Price stabilization
The government will focus on stabilizing prices by improving the distribution
structure, and will abolish the current item-by-item price management scheme as
well as strengthen the market monitoring function of the private sector.
Policy Issues | 53
The government will work with relevant private sector industries to come up
with a comprehensive distribution channel improvement plan which will cover
agricultural products and monopoly-oligopoly items. The government will also
ease the regulations on petroleum and telecommunications market entry, and
promote fair competition among market players.
* The government will allow large distributors to enter the low-end phone market, and promote
an increase in low and middle end mobile devices.
The government will address tightened agricultural goods supply through various
measures including contract farming and by increasing reserves, and develop
a reasonable cost verification system for public utility fees by revising the fee
calculation method.
2) Easing the financial, housing, and educational burdens of the working class
The government will ease the debt burden of the working class by allowing debtors
to write-down their debt or have it consolidated into lower interest loans through
a program called the National Happiness Fund. The government will also help
debtors with multiple loans repair their credit and will reorganize the lending
system for the working class in May.
* Debtors eligible for the free work out program will be expanded from those with debts
overdue by less than a year to those with debt overdue by more than a month.
The government will increase public rental housing and increase its support for
renting loans.
The government will fully cover the cost of the care and education of toddlers, and
lower the tuition burden of college students from low-income families through
various scholarship offerings. Regardless of their income level, parents of toddlers
aged 0-5 will be eligible to apply for financial support for early childhood education,
or receive a toddler care allowance.
The government will offer national scholarships and working scholarships to more
people, and lower the college burden by offering customized national scholarships
aligned with the beneficiaries income level.
3) Strengthened welfare
The government will develop a customized basic livelihood security system that
monitors people who receive livelihood assistance and potential welfare recipients
to help them move up to the middle class.
The current integrated benefit system will be reconfigured to provide the benefits
that individual recipients need.
Potential welfare recipients will be expanded to include those who earn 50%
percent of the median income, and welfare qualification requirements for those
with dependents will be adjusted.
The government will build a welfare system which benefits people who work. The
eligibility for the Earned Income Tax Credit (EITC) will be expanded to cover
those receiving basic livelihood benefits. The government will also increase social
insurance support for low-income workers and expand the eligibility to access the
54 | Policy Issues
Asset Building Account from employees and startups to those in self-sufficiency

programs and potential welfare recipients.
National Health Care will cover essential treatment for four critical diseases, such
as heart, cardiovascular, rare incurable diseases and cancer, while the government
will run programs to fight alcohol, drug and gambling addiction, and internet
overuse.
The government will offer universal social security to the elderly. The elderly will
be eligible to receive at least one pension, such as the National Happiness Pension.
The government will also create jobs for the elderly, and improve care for seniors
without families to support them.
To more effectively and efficiently deliver welfare services, local community centers
will be restructured to provide tailored welfare services, and services, such as
entitlement application and payment, and employment arrangement, will be made
available at the centers. Community centers will be the frontline for identifying
new demand for tailored welfare.
3. Economic democratization
1) Fair competition
The government will strengthen insider-trading laws and conduct a comprehensive
reorganization of related laws and regulations.
The Fair Trade Commission will no longer have exclusive rights to file complaints,
and the government will introduce punitive damages and will bring class action
lawsuit claims against any business that violates fair trade laws and regulations.
* The right to request to file a complaint will be given to the heads of Small and Medium Business
Administration, Korea Customs Service and the Board of Audit and Inspection of Korea.
2) Protecting the economically vulnerable

The government will reduce unfair trading practices such as transfer of foreign
exchange losses and levying excessive sales incentives, set up a new provision
prohibiting unfair terms in subcontracts, and recognize mid-sized companies
as subcontractors. The government will broaden the business areas appropriate
for SMEs in the service industry, in addition to the current livelihood-centered
services, and shorten the business adjustment period from a year to less than two
months.
The government will strengthen the structural foundations for consumer damage
relief and consumer competency.
4. Strengthen risk management

The Korean government will establish a crisis management system, and manage
individual risks, such as household debt.
1) Total control over external and domestic risks
Policy Issues | 55
The government will act as a control tower, and facilitate intra-governmental

cooperation and public-private cooperation through the ministerial meeting on
macroeconomy and finance, and public-private meetings on market situations.
Risks will be managed according to contingency plans in order to prevent market
uncertainties, and government responses will become more extensive, covering
the real economy, finance and foreign exchange.
2) Close monitoring of riskier sectors
The size of household debt will be strictly managed. There will be improved
supervision of nonbanking lenders, and the government will adopt early warning
systems.
Macro-prudential stability measures, including the macro-prudential stability levy,
caps on banks foreign exchange forward positions and taxes on foreign investment
in local bonds, will be reintroduced if necessary.
There will be more systematic monitoring regarding the yen exchange rate and its
effect on domestic industries as well as domestic financial and foreign exchange
markets. SME exporters will be able to access increased liquidity, and foreign
exchange risk related insurance will receive increased government support. The
government will require highly indebted companies to undergo restructuring.
Enhancing capabilities to successfully implement the policies

1. Fiscal resources
A total of 135 trillion won will be spent over five years in order to fulfill campaign
pledges. 40 percent of the budget, or 53 trillion won, will be financed through
revenue increases, and 60 percent, or 81.5 trillion won, will be financed through
spending cuts.
1) Increasing revenues
A total of 53 trillion won will be added to the budget over five years by ending
or adjusting tax reductions and exemptions, taxing the shadow economy and
increasing non-tax revenues.
2) Spending restructuring
Financial resources needed to support campaign pledges will also be obtained
through efficient spending, restructuring and transparent government
management. A total of 81.5 trillion won over five years is expected to be saved.
56 | Policy Issues
3) Fiscal soundness
Fiscal soundness is a key component of the fiscal management plan for 2013-2017,
and will include middle- and long-term fiscal sustainability. The government will
make plans to finance its pledges, along with detailed strategies to restore fiscal
soundness.
4) Public debt management and fiscal risk management
Public sector debt management will include managing debts of public firms as
well as central and local government debts. Public sector debt will be calculated
according to the 2012 IMF manuals, and allowances and guarantees will be included
in the debt calculation. The government will also develop indices for fiscal risks,
and highly indebted companies with less than 2 trillion won in capital will also be
required to submit their middle- to long-term financial plans, in addition to those
with more than 2 trillion won in capital.
5) National asset and fiscal management
Fiscal management and national asset management will be directed towards
increasing fiscal sustainability. Government agencies will cooperate to assess both
the feasibility of fiscal projects and later evaluate the performance of those projects.
National asset management programs will first prioritize maximizing profit.
2. Intra-governmental cooperation
Various ministerial meetings on the economy will be at the center of policy design,
implementation and evaluation. Ministerial cooperation as well as real economyrelated measures and other government tasks will be dealt with in those meetings,
in addition to regularly evaluating the effectiveness of current policies and
checking the progress of policy-related planning. There will also be public-private
joint evaluation of policies and pilot projects, through which decisions on effective
models will be made.
<Intra-governmental cooperation>
Ministerial Meeting on the Economy

(newly organized)
Ministerial Meeting on the International

Economic Affairs
Economic policies, real economy,

tasks related to economic policies,
policies and mid-to long-term plans
which require public financing
FTA, ODA and other issues outside of the

domestic economy
Implementation and evaluation

Communication with the people
Policy Issues | 57
Policy Issues
A supplementary budget of 17.3 trillion won will be spent throughout 2013, the
largest since 1998 when the country was faced with the global financial crisis,
mostly in supporting the working class and stimulating the economy.
Of 17.3 trillion won, 5.3 trillion won will be used to supplement budget
expenditures the amount reaches 7.3 trillion won when 2.0 trillion won of
available resources from funds is taken into account, and 12 trillion won will be
used to finance revenue losses. Tax revenue losses of 6 trillion won is forecast with
economic growth outlook being revised down, and nontax revenues are expected
to be less than what was originally planned by 6 trillion won due to a delay in sales
of government holdings in the Korea Development Bank and the Industrial Bank
of Korea.
The supplementary budget will be financed mostly by issuing government bonds,
along with 0.3 trillion won from government surplus, 0.3 trillion won from the
Bank of Korea surplus and 0.3 trillion won by cutting spending. The government
will also utilize available resources in funds.
The importance of planning for the future

Of a total of 7.3 trillion won, 3.0 trillion won will be used to help create jobs,
stabilize consumer prices, including streamlining agricultural product distribution
systems, and finance housing market revitalization measures released on Aril 1.
Small- and medium-sized enterprises (SMEs) and export SMEs will have 1.3 trillion
won support through the Korea Credit Guarantee Fund, the Korea Technology
Finance Corporation, the Export-import Bank of Korea and the Korea Trade
Insurance Corporation. The budget also includes facilities investment support,
emergency business operation support, startup financing and the purchase of
credit notes.
58 | Policy Issues
A total of 3.0 trillion won will be used to support regional economies. Local
governments will be reimbursed for their tax revenue losses, which resulted from
extending the acquisition tax cut until June 2013, while they will be allowed to
defer paying back the overpaid amount of central government subsidies. The
overpayment arose as central government tax revenues dropped. The budget will
also fund disaster prevention investment.
Fiscal situation with the supplementary budget

Total expenditures will increase by 7.0 trillion won to 349.0 trillion won, and total
revenues will decrease by 11.8 trillion won to 340.8 trillion won.
1. 7.3 trillion won of a supplementary budget increase minus 0.3 trillion won of spending cuts
2. 12.0 trillion won of revenue losses plus nontax revenues of 0.2 trillion won (BOK surplus)

(trillion won, %)
2012
2013 Original budget
2013 Supplementary budget
(A)
Increase (%)
(B)
Increase (%)
Change
(B-A)
Total revenues
343.5
372.6
8.5
360.8
5.0
-11.8
Total expenditure
325.4
342.0
5.1
349.0
7.2
7.0
Fiscal account deficit will decrease by 1.5 percentage points from 0.3 percent of
GDP to 1.8 percent of GDP, or from 4.7 trillion won in deficit to 23.4 trillion won
in deficit.
National liabilities will increase by 1.9 percentage points from 34.3 percent of GDP
to 36.2 percent of GDP.
* National liabilities to GDP (%, OECD Economic Outlook in December 2012): 102.2 (US),
205.3 (Japan), 99.9 (UK), 102.9 (OECD Average)
The supplementary budget is proposed to help stimulate the economy, and

eventually pave a way to fiscal soundness. The government will minimize the
issuance of government bonds by utilizing the excess in funds, reducing operating
costs of public institutions and streamlining national projects. The government
will also restructure inefficient fiscal spending systems and review tax breaks.
The supplementary budget proposal will be submitted to the National Assembly on
April 18 after it is approved by the Cabinet Meeting on April 16.
Policy Issues | 59
Economic News Briefing
Korea grows 2.0% in 2012 (Preliminary)

Koreas real gross domestic product (GDP) expanded by 2.0 percent in 2012
compared to the previous year. The growth rate in 2012 was down from the
previous years 3.7 percent due to slowing private consumption as well as poor
construction and facility investment.
On the production side, manufacturing expanded by 2.2 percent year-onyear, thanks to sustained growth in electronics, metal products, oil & coal,
and petrochemicals. Services grew by 2.5 percent, led by financial & insurance
services, business services, healthcare & social welfare services, and cultural &
sports services. On the other hand, agriculture, forestry & fisheries contracted by
0.6 percent due to weakness in the fishery sector, and construction declined by
1.6 percent as both building construction and civil engineering works performed
poorly in 2012.
On the expenditure side, private and government consumption increased by 1.7
percent and 3.9 percent, respectively. Facility investment declined by 1.9 percent,
mainly as a result of a plunge in transportation equipment investment, while
sluggish building construction and civil engineering works caused construction
investment to fall by 2.2 percent. Exports and imports increased by 4.2 percent and
2.5 percent each.
Real gross national income (GNI) in 2012 grew 2.6 percent, and per capital GNI
increased to US$22,708 from US$22,451 a year earlier. Meanwhile, per capita
personal gross disposable income (PGDI) rose from US$12,906 in 2011 to
US$13,150 in 2012.
60 | Economic News Briefing
<GDP by production and expenditure*>

2011

1
2012
Annual Annual
20121 (seasonally adjusted)3
2012 (original)
Q1
Q2
Q4
Q1
GDP
Agriculture, forestry & fishery
3.7
-2.1
2.0
-0.6
2.8
-0.4
2.4
-1.8
1.6
0.3
1.5
-0.5
0.8
-6.5
0.3
0.2
0.0
-2.6
0.3
7.9
Manufacturing
7.3
2.2
4.1
2.7
0.9
1.3
1.6
-0.2
-0.3
0.2
Construction
-4.3
-1.6
2.5
1.9
-1.5
2.7
-1.4
2.5
-4.0
2.2
-1.4
1.1
-1.8
0.5
0.9
0.3
-2.0
0.4
2.4
1.7
1.3
1.0
1.7
2.7
0.8
0.4
0.7
0.8
4.9
8.8
3.6
3.5
3.4
3.5
-0.1
0.8
-0.6
Facility investment
2.1
3.6
3.9
-4.7
-3.5
-3.1
-6.9
-0.3
-5.2
-4.2
10.4
-1.5
-7.8
-1.3
-5.2
0.7
-1.8
-1.2
Exports
Services4
Private consumption
Government consumption
2.6
2.6
-1.9
-2.2
-0.4
Q3
Q2
Q3
Q4
9.1
4.2
5.7
3.5
3.2
4.4
3.9
-0.3
1.9
-1.1
Imports
6.1
2.5
4.7
0.5
1.4
3.5
4.3
-1.8
1.8
-0.8
GNI
1.5
2.6
2.3
2.7
2.9
2.4
-0.1
1.5
0.7
0.3
*At 2005 chained prices in seasonally adjusted terms

1. Preliminary
2. Percentage change from the same period of the previous year
3. Percentage change from the previous quarter
4. Wholesale & retail, hotels & restaurants, transportation & storage, communication services, financial & insurance services, real estate & renting, business
services, public administration, defense & social security, educational services, healthcare & social welfare services, entertainment, cultural & sports services
and other services are included.
Government structure reorganized

The Park Geun-hye administration has reorganized the government structure,
creating two new ministries and renaming several others. The Ministry of Science,
ICT and Future Planning and the Ministry of Maritime Affairs and Fisheries have
been newly established, while the deputy prime minister for economic affairs has
been revived, with the Minister of Strategy and Finance filling the post.
The Ministry of Knowledge Economy has been renamed as the Ministry of Trade,
Industry and Energy, and the Ministry of Public Administration and Security is
now Ministry of Security and Public Administration. In addition, the Ministry of
Food, Agriculture, Forestry and Fisheries has become the Ministry of Agriculture,
Food and Rural Affairs, and the Ministry of Foreign Affairs and Trade has been
renamed as the Ministry of Foreign Affairs. The creation of two new ministries
has led to the renaming of the Ministry of Education, Science and Technology
and the Ministry of Land, Transport and Maritime Affairs, which have become
the Ministry of Education and Ministry of Land, Infrastructure and Transport,
respectively.
Economic News Briefing | 61
Housing market boosting measures unveiled

The government has introduced comprehensive measures to stimulate the housing
market. Koreas property market has been in a slump since 2008, hampering private
consumption and threatening to harm the broad economy in the long term. The
measures, which were announced on April 1, aim to boost housing transactions
and provide relief for the so-called house poor and rent poor.
Under the plan, first-time home buyers will be allowed to borrow more and be
subject to a lower interest rate than before when borrowing from the National
Housing Fund. The government will encourage individuals to buy homes by
temporarily cutting the real estate sales tax, and ease regulations that had previously
been tightened during the real estate boom.
Various measures had been introduced to help the house poor and rent poor.
Home owners who have overdue debt can go through a debt restructuring
process if they want to keep their homes, or sell their property to a real estate
investment trust (REIT) and continue to live there as a tenant under a sale and
lease back arrangement. Meanwhile, the government will also provide incentives
to individuals who take out loans from the National Housing Fund to pay rent, by
raising the maximum loan amount and lowering the interest rate.
National Happiness Fund launched to ease household debt burden

The government launched on March 29 a fund to tackle Koreas household debt
problem, which has been regarded as one of the economys main weaknesses. The
fund, dubbed the National Happiness Fund, aims to relieve the debt burden of the
low- and middle-income classes.
Those eligible for debt restructuring are individuals who were overdue on loan
payments by six months or more as of February 28 and whose total debt is less than
100 million won. Depending on the applicants age, income and overdue period,
liabilities will be cut by up to 50 percent and will be required to pay off over up to
10 years. The fund will also be used to help reduce student loan delinquencies and
convert high-interest loans to bank loans with lower borrowing costs and longer
maturities.
62 | Economic News Briefing
Korea, China and Japan hold first round of FTA talks

Trade representatives from Korea, China and Japan convened in Seoul on March
26-28 to hold the first round of negotiations aimed at signing a three-way free trade
agreement (FTA). The three nations discussed basic principles of the negotiations,
including the scope and method of the talks. The representatives agreed to create
subcommittees to work on areas such as goods, services and investment, and will
continue to discuss creating subcommittees or working groups for intellectual
property and e-commerce. The second round of talks will take place later this year
in China.
Consolidated fiscal balance shows 18.5 trillion won surplus in 2012

Koreas consolidated fiscal balance posted a surplus of 18.5 trillion won in 2012,
up 100 billion won from the previous year. However, the consolidated fiscal
balance excluding social security funds showed a deficit of 17.4 trillion won, which
increased by 3.9 trillion won from 2011 as tax revenue declined due to sluggish
growth and spending increases.

(trillion won)
Consolidated fiscal balance
2011
2012
y-o-y change
18.6
18.5
-0.1
Social security funds
32.1
35.9
3.8
Consolidated fiscal balance excluding social security funds
-13.5
-17.4
-3.9
Economic News Briefing | 63
Statistical Appendices
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 completed 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
Statistical Appendices | 65
1.
National accounts
Real GDP
Manufacturing
Final
consumption
expenditure
4.6
4.0
5.2
5.1
2.3
0.3
6.3
3.7
2.0
Agri., fores.
& fisheries
9.1
1.3
1.5
4.0
5.6
3.2
-4.4
-2.1
-0.6
10.0
6.2
8.1
7.2
2.8
-1.5
14.7
7.3
2.2
1.0
4.6
5.1
5.1
2.0
1.2
4.1
2.3
2.2
Period
2004
2005
2006
2007
2008
2009
2010
2011
2012P
(year-on-year change, %, chained 2005 year prices)

Gross fixed capital formation
Construction
Facilities
2.1
1.9
3.4
4.2
-1.9
-1.0
5.8
-1.0
-1.7
1.3
-0.4
0.5
1.4
-2.8
3.4
-3.7
-4.7
-2.2
3.8
5.3
8.2
9.3
-1.0
-9.8
25.7
3.6
-1.9
2004
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
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
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
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
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
-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
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
2011
4.3
3.5
3.6
3.4
-9.7
-2.6
-5.8
7.1
10.3
7.4
6.4
5.5
2.8
2.8
2.4
1.3
-1.4
0.4
-1.4
-1.8
-10.0
-4.7
-3.6
-1.7
10.5
7.7
1.1
-3.6
2012P
2.8
2.4
1.6
1.5
-0.4
-1.8
0.3
-0.5
4.1
2.7
0.9
1.3
2.1
1.6
2.1
2.8
3.7
-2.6
-2.5
-4.2
-0.4
-3.1
-0.3
-4.2
8.8
-3.5
-6.9
-5.2
P: Preliminary
66 | Statistical Appendices
2.
Production, shipment and inventory
(constant prices, 2010=100)
Production index
Period
2010
2011
2012
100.0
105.9
106.8
Y-o-Y change
(%)
16.3
5.9
0.8
Shipment index
100.0
105.6
106.4
Y-o-Y change
(%)
14.3
5.6
0.8
Inventory index
Service production index
104.6
120.2
124.1
Y-o-Y change
(%)
18.0
14.9
3.2
100.0
103.2
104.8
Y-o-Y change
(%)
3.8
3.2
1.6
2010
93.9
101.2
98.7
106.2
26.3
18.7
9.7
12.6
93.9
101.1
98.6
106.4
22.0
15.6
9.0
11.8
97.2
98.2
100.7
104.6
9.3
15.9
16.2
18.0
96.8
100.5
99.8
103.8
5.4
4.7
2.2
3.4
2011
102.6
107.4
103.9
109.7
9.3
6.1
5.3
3.3
103.3
106.6
103.1
109.2
10.0
5.4
4.6
2.6
104.7
110.0
112.7
120.2
7.7
12.0
11.9
14.9
99.5
103.4
103.2
106.7
2.8
2.9
4.5
2.8
2012
106.3
108.6
102.9
109.6
3.6
1.1
-1.0
-0.1
106.3
108.1
102.6
108.4
2.9
1.4
-0.5
-0.7
117.8
115.2
114.6
124.1
12.5
4.7
1.7
3.2
102.1
104.9
104.7
107.6
2.6
1.5
1.5
0.8
2010
1
2
3
4
5
6
7
8
9
10
11
12
94.1
86.0
101.6
101.2
100.2
102.3
102.2
96.6
97.4
105.3
105.6
107.6
38.7
18.9
22.6
20.2
20.1
16.0
14.1
14.1
1.6
14.4
12.4
11.1
93.8
85.9
102.0
101.5
99.4
102.4
101.1
97.2
97.5
105.4
106.2
107.6
33.5
14.2
19.5
17.1
16.5
13.3
12.3
14.1
1.3
13.3
11.9
10.3
97.2
98.7
97.2
98.3
99.2
98.2
101.0
101.2
100.7
101.8
102.0
104.6
2.3
9.3
9.3
14.1
16.0
15.9
18.1
17.8
16.2
18.1
17.0
18.0
95.2
93.8
101.5
98.8
101.2
101.6
99.5
98.1
98.9
100.5
100.6
110.2
4.4
4.9
7.0
3.7
5.7
4.7
3.8
3.0
-0.2
3.5
3.6
2.9
2011
1
2
3
4
5
6
7
8
9
10
11
12
105.3
91.8
110.6
106.8
107.1
108.3
105.9
101.5
104.4
109.7
109.3
110.1
11.9
6.7
8.9
5.5
6.9
5.9
3.6
5.1
7.2
4.2
3.5
2.3
105.8
93.3
110.8
106.8
106.0
107.0
104.0
101.2
104.2
109.1
108.2
110.3
12.8
8.6
8.6
5.2
6.6
4.5
2.9
4.1
6.9
3.5
1.9
2.5
104.6
102.8
104.7
105.8
108.6
110.0
111.8
112.2
112.7
115.6
117.9
120.2
7.6
4.2
7.7
7.6
9.5
12.0
10.7
10.9
11.9
13.6
15.6
14.9
100.1
94.2
104.1
102.1
103.5
104.7
103.1
103.1
103.3
104.2
103.7
112.3
5.1
0.4
2.6
3.3
2.3
3.1
3.6
5.1
4.4
3.7
3.1
1.9
2012
1
2
3
4
5
6
7
8
9
10
11
12
101.9
105.8
111.2
106.4
110.4
108.9
105.6
99.4
103.6
107.6
111.6
109.7
-3.2
15.3
0.5
-0.4
3.1
0.6
-0.3
-2.1
-0.8
-1.9
2.1
-0.4
102.6
105.8
110.6
105.9
109.6
108.9
104.8
98.5
104.6
106.6
109.5
109.0
-3.0
13.4
-0.2
-0.8
3.4
1.8
0.8
-2.7
0.4
-2.3
1.2
-1.2
119.4
117.5
117.8
116.6
118.4
115.2
115.8
119.5
114.6
115.5
120.4
124.1
14.1
14.3
12.5
10.2
9.0
4.7
3.6
6.5
1.7
-0.1
2.1
3.2
100.5
100.0
105.9
102.7
105.9
106.0
104.7
103.8
105.9
104.6
105.2
113.1
0.4
6.2
1.7
0.6
2.3
1.2
1.6
0.7
2.2
0.4
1.4
0.7
2013
1P
2P
109.6
96.0
7.6
-9.3
107.7
96.8
5.0
-8.5
128.0
123.0
7.2
4.7
101.8
100.0
1.3
0.0
P: Preliminary
3.
Production capacity and operation ratio
Period
Production capacity index (2010=100)
2010
2011
2012
100.0
104.9
107.2
Y-o-Y change (%)

7.9
4.9
2.2
Operation ratio index (2010=100)

100.0
99.8
97.0
Y-o-Y change (%)

7.7
-0.2
-2.8
Average operation
ratio (%)
80.3
80.2
78.1
2010
97.8
99.5
100.7
102.0
7.6
8.5
7.9
7.4
95.7
102.7
97.6
104.0
18.3
8.9
0.8
4.8
79.4
80.6
80.4
80.9
2011
103.6
104.7
105.2
106.1
5.9
5.2
4.5
4.0
97.6
103.1
97.3
101.3
2.0
0.4
-0.3
-2.6
81.4
80.4
80.4
78.8
2012
106.8
107.1
107.2
107.5
3.1
2.3
1.9
1.3
96.9
100.3
92.8
97.9
-0.7
-2.7
-4.6
-3.4
79.6
79.0
76.2
77.8
2010
1
2
3
4
5
6
7
8
9
10
11
12
97.3
97.6
98.5
99.0
99.4
100.0
100.4
100.6
101.1
101.7
101.9
102.4
7.1
7.4
8.2
8.2
8.7
8.6
8.3
8.1
7.4
7.6
7.6
7.0
95.9
87.1
104.0
103.3
101.3
103.6
103.1
94.4
95.2
104.3
103.5
104.2
31.4
10.2
14.7
10.9
9.7
6.3
5.4
4.8
-7.2
6.3
4.0
4.0
78.1
79.9
80.2
80.5
80.4
80.9
81.7
79.6
80.0
79.8
80.4
82.5
2011
1
2
3
4
5
6
7
8
9
10
11
12
103.2
103.4
104.2
104.6
104.6
104.9
105.1
105.2
105.4
106.0
106.1
106.2
6.1
5.9
5.8
5.7
5.2
4.9
4.7
4.6
4.3
4.2
4.1
3.7
100.3
87.0
105.4
102.3
102.8
104.3
100.4
94.4
97.2
102.4
101.6
99.9
4.6
-0.1
1.3
-1.0
1.5
0.7
-2.6
0.0
2.1
-1.8
-1.8
-4.1
82.5
80.3
81.3
79.6
80.2
81.3
80.9
80.0
80.4
79.7
78.9
77.7
2012
1
2
3
4
5
6
7
8
9
10
11
12
106.7
106.8
106.9
107.0
107.1
107.2
106.9
107.4
107.3
107.4
107.6
107.6
3.4
3.3
2.6
2.3
2.4
2.2
1.7
2.1
1.8
1.3
1.4
1.3
91.8
96.5
102.3
98.2
102.0
100.8
96.8
87.9
93.8
97.7
100.3
95.8
-8.5
10.9
-2.9
-4.0
-0.8
-3.4
-3.6
-6.9
-3.5
-4.6
-1.3
-4.1
79.7
80.4
78.7
79.0
79.5
78.4
77.8
74.0
76.7
77.0
78.0
78.4
2013
1P
2P
107.9
107.9
1.1
1.0
98.0
84.7
6.8
12.2
78.7
77.8
P: Preliminary
4.
Consumer goods sales index
(constant prices, 2010=100)
Consumer goods sales index
Durable goods
Period
2010
2011
2012
100.0
104.5
106.9
Y-o-Y change
(%)
6.7
4.5
2.3
Semi-durable goods
100.0
110.6
116.5
Y-o-Y change
(%)
14.8
10.6
5.3
100.0
103.7
102.6
Y-o-Y change
(%)
6.7
3.7
-1.1
Non-durable goods
100.0
102.1
104.4
Y-o-Y change
(%)
2.2
2.1
2.3
2010
95.6
98.7
99.7
106.1
8.9
5.4
8.0
5.0
94.5
96.0
101.0
108.5
29.5
6.2
17.0
9.8
93.5
100.3
90.9
115.3
3.0
5.7
9.4
8.9
97.0
99.2
102.9
100.9
2.4
3.4
2.4
0.8
2011
100.7
104.8
103.7
108.9
5.3
6.2
4.0
2.6
105.4
112.2
111.4
113.3
11.5
16.9
10.3
4.4
98.3
105.5
94.2
116.7
5.1
5.2
3.6
1.2
99.6
101.2
104.4
103.3
2.7
2.0
1.5
2.4
2012
103.5
106.3
106.4
111.6
2.8
1.4
2.6
2.5
110.0
115.5
118.8
121.8
4.4
2.9
6.6
7.5
98.0
104.4
90.9
117.1
-0.3
-1.0
-3.5
0.3
102.9
102.8
107.5
104.3
3.3
1.6
3.0
1.0
2010
1
2
3
4
5
6
7
8
9
10
11
12
95.0
93.3
98.4
96.6
100.7
98.7
100.1
96.2
102.7
104.0
105.3
109.1
6.1
11.7
8.7
7.8
4.4
4.3
9.5
9.3
5.3
4.5
6.7
4.0
92.8
90.4
100.3
92.7
94.6
100.7
104.0
98.2
100.7
105.4
108.3
111.9
40.0
22.5
27.1
17.5
3.2
0.1
18.2
25.9
8.4
14.3
10.8
5.2
95.0
88.5
96.9
99.7
105.0
96.2
92.7
83.4
96.5
113.6
114.9
117.4
4.1
3.4
1.4
3.5
5.2
8.7
10.2
9.4
8.3
11.0
7.1
8.7
96.0
96.8
98.2
97.1
101.6
98.8
101.6
100.9
106.3
99.1
99.6
104.0
-4.9
11.0
2.3
3.5
2.2
4.4
4.3
1.7
1.4
-4.3
3.8
2.1
2011
1
2
3
4
5
6
7
8
9
10
11
12
105.4
92.8
103.9
102.5
107.3
104.7
104.2
100.9
106.0
107.4
107.2
112.0
10.9
-0.5
5.6
6.1
6.6
6.1
4.1
4.9
3.2
3.3
1.8
2.7
104.0
97.8
114.5
106.4
112.6
117.5
117.0
109.7
107.6
109.0
116.3
114.5
12.1
8.2
14.2
14.8
19.0
16.7
12.5
11.7
6.9
3.4
7.4
2.3
104.9
90.0
99.8
105.6
109.9
100.9
96.2
86.2
100.1
116.1
111.9
122.1
10.4
1.7
3.1
5.9
4.7
4.9
3.8
3.4
3.7
2.2
-2.6
4.0
106.3
91.7
100.8
99.4
103.6
100.5
101.8
103.4
107.9
102.7
100.9
106.4
10.7
-5.3
2.6
2.4
2.0
1.7
0.2
2.5
1.5
3.6
1.3
2.3
2012
1
2
3
4
5
6
7
8
9
10
11
12
107.5
97.9
105.0
102.9
110.0
105.9
108.0
102.0
109.1
109.0
111.5
114.2
2.0
5.5
1.1
0.4
2.5
1.1
3.6
1.1
2.9
1.5
4.0
2.0
107.7
107.9
114.4
107.8
118.1
120.5
126.2
114.3
115.9
117.1
123.0
125.3
3.6
10.3
-0.1
1.3
4.9
2.6
7.9
4.2
7.7
7.4
5.8
9.4
103.6
91.0
99.3
103.7
110.4
99.2
96.0
80.7
96.0
113.5
117.8
119.9
-1.2
1.1
-0.6
-1.8
0.5
-1.7
-0.2
-6.4
-4.1
-2.2
5.3
-1.8
109.2
96.3
103.1
100.2
106.0
102.1
105.0
105.8
111.7
103.2
103.3
106.5
2.7
5.0
2.3
0.8
2.3
1.6
3.1
2.3
3.5
0.5
2.4
0.1
2013
1P
2P
104.2
99.7
-3.1
1.8
111.0
106.1
3.1
-1.7
102.3
93.4
-1.3
2.6
102.0
99.6
-6.6
3.4
P: Preliminary
5.
Consumer goods shipment index and consumer sentiment index
Domestic consumer goods shipment index (2010=100)
Durable goods
Period
2010
2011
2012
100.0
109.2
101.1
Y-o-Y
change (%)
5.2
0.9
0.2
Non-durable goods
100.0
100.2
98.5
Y-o-Y
change (%)
4.0
0.2
-1.7
100.0
101.2
102.3
Y-o-Y
change (%)
5.8
1.2
1.1
Consumer
sentiment
index
-
2010
96.6
96.9
100.6
106.0
9.8
3.3
2.8
5.3
95.6
97.7
101.2
105.5
18.4
-1.9
2.0
0.3
96.9
96.5
100.4
106.2
6.0
6.2
3.3
7.9
2011
100.8
97.9
101.2
103.8
4.3
1.0
0.6
-2.1
99.5
100.7
100.8
99.9
4.1
3.1
-0.4
-5.3
101.4
96.7
101.4
105.4
4.6
0.2
1.0
-0.8
2012
100.0
99.7
100.9
103.9
-0.8
1.8
-0.3
0.1
97.4
98.9
96.0
101.7
-2.1
-1.8
-4.8
1.8
101.2
100.1
103.0
104.8
-0.2
3.5
1.6
-0.6
2010
1
2
3
4
5
6
7
8
9
10
11
12
101.5
90.1
98.1
97.3
95.2
98.1
100.5
99.8
101.4
106.7
106.1
105.3
15.5
6.3
7.5
5.8
2.7
1.4
3.4
10.2
-4.3
7.4
9.6
-0.5
96.0
91.2
99.7
95.2
95.4
102.4
105.5
97.7
100.3
106.0
106.5
104.1
36.2
10.9
11.4
10.9
-4.7
-9.2
1.3
9.1
-3.6
6.7
2.0
-6.9
103.8
89.6
97.4
98.2
95.1
96.2
98.4
100.8
101.9
106.9
105.9
105.8
7.7
4.3
5.9
3.5
6.8
8.3
5.0
10.7
-4.6
7.6
13.8
2.8
115
113
112
112
112
114
114
112
111
110
113
112
2011
1
2
3
4
5
6
7
8
9
10
11
12
108.6
88.7
105.2
98.2
96.1
99.3
99.7
102.1
101.8
105.0
102.1
104.2
7.0
-1.6
7.2
0.9
0.9
1.2
-0.8
2.3
0.4
-1.6
-3.8
-1.0
100.9
92.6
105.1
97.3
99.3
105.4
104.2
98.1
100.0
100.3
98.6
100.9
5.1
1.5
5.4
2.2
4.1
2.9
-1.2
0.4
-0.3
-5.4
-7.4
-3.1
111.9
87.1
105.2
98.6
94.7
96.7
97.8
103.8
102.6
107.0
103.6
105.7
7.8
-2.8
8.0
0.4
-0.4
0.5
-0.6
3.0
0.7
0.1
-2.2
-0.1
111
109
110
102
105
103
103
99
99
101
105
100
2012
1
2
3
4
5
6
7
8
9
10
11
12
100.2
97.9
101.9
98.7
101.9
98.6
101.6
98.5
102.7
103.7
104.2
103.7
-7.7
10.4
-3.1
0.5
6.0
-0.7
1.9
-3.5
0.9
-1.2
2.1
-0.5
92.2
98.0
102.1
93.6
100.2
102.9
105.1
87.5
95.4
98.4
101.0
105.7
-8.6
5.8
-2.9
-3.8
0.9
-2.4
0.9
-10.8
-4.6
-1.9
2.4
4.8
103.7
97.9
101.9
100.9
102.7
96.7
100.1
103.1
105.8
105.9
105.6
102.8
-7.3
12.4
-3.1
2.3
8.4
0.0
2.4
-0.7
3.1
-1.0
1.9
-2.7
98
102
102
106
106
101
100
101
99
100
100
99
2013
1P
2P
3
103.9
92.6
-
3.7
-5.4
-
96.9
93.9
-
5.1
-4.2
-
106.9
92.1
-
3.1
-5.9
-
102
102
104

6.
Machinery orders received, domestic machinery shipment and estimated
facility investment index
Domestic machinery orders received excluding ship
(billion won, constant value)
Period
2011
2012
Private
Total
Public
25,148
21,789
2,407
2,142
22,741
19,647
Manufacturing
14,147
10,482
Estimated
facility investment
index
(2005=100)
Domestic
machinery shipment
excluding ship
(2010=100)
139.2
136.4
104.3
98.8
2011
6,383
6,723
5,666
6,376
358
708
310
1,031
6,025
6,015
5,356
5,345
3,772
3,802
3,163
3,411
130.5
149.8
139.5
136.9
99.0
110.1
101.8
106.4
2012
6,310
5,391
5,079
5,004
810
285
579
468
5,500
5,106
4,500
4,536
3,055
2,765
2,320
2,339
144.5
145.7
128.1
127.4
103.4
104.6
90.9
96.4
2011
7
8
9
10
11
12
2,026
1,759
1,881
1,950
2,293
2,133
132
82
96
311
526
194
1,894
1,676
1,785
1,639
1,767
1,939
1,040
1,024
1,098
969
1,110
1,332
141.0
140.0
137.5
124.0
139.4
147.4
103.5
100.0
102.0
101.3
102.4
115.6
2012
1
2
3
4
5
6
7
8
9
10
11
12
1,933
2,541
1,836
1,845
1,830
1,716
1,835
1,516
1,729
1,545
1,689
1,771
52
695
63
56
39
190
310
169
100
86
127
255
1,881
1,846
1,773
1,789
1,791
1,526
1,525
1,347
1,629
1,458
1,562
1,516
1,158
1,036
860
927
988
850
779
689
852
733
833
773
139.4
146.8
147.4
143.1
145.9
148.1
140.4
118.2
125.7
119.7
124.4
138.1
95.0
106.0
109.1
104.1
103.8
105.8
96.4
87.8
88.6
92.7
93.8
102.6
2013
1P
2P
1,817
1,711
132
159
975
860
117.6
120.1
81.0
77.2
7.6
-13.4
-2.6
-11.0
13.0
-25.9
4.0
-2.0
4.3
-5.3
2011
2012
1,685
1,551
Y-o-Y change (%)
8.8
-13.6
2011
15.3
9.6
-0.7
6.4
-36.7
83.1
-18.6
-9.5
21.2
4.6
0.6
10.1
27.7
6.5
0.7
19.5
7.8
8.9
0.1
-0.1
12.8
3.2
1.2
1.4
2012
-1.1
-19.8
-10.4
-21.5
126.1
-59.7
86.7
-54.6
-8.7
-15.1
-16.0
-15.1
-19.0
-27.3
-26.6
-31.4
10.7
-2.7
-8.2
-6.9
4.4
-5.0
-10.7
-9.4
2011
7
8
9
10
11
12
-2.6
2.4
-1.4
12.7
30.5
-15.0
51.0
-17.3
-50.4
236.6
376.6
-79.2
-4.9
3.6
4.2
0.1
7.3
23.3
-6.3
11.1
-1.0
-3.8
11.3
56.9
0.1
-0.1
0.2
-5.0
3.0
1.3
1.8
1.5
0.5
3.6
-0.2
1.2
2012
1
2
3
4
5
6
7
8
9
10
11
12
-0.8
25.1
-23.6
-4.4
-14.4
-35.4
-9.4
-13.8
-8.1
-20.8
-26.4
-17.0
-22.2
829.0
-70.9
-10.3
-72.8
-62.2
135.5
105.9
3.5
-72.3
-75.8
31.2
0.0
-5.7
-18.9
-4.3
-10.2
-29.1
-19.5
-19.7
-8.7
-11.0
-11.6
-21.8
3.9
-12.3
-41.7
-22.4
-19.1
-38.7
-25.1
-32.7
-22.4
-24.3
-25.0
-42.0
10.3
27.3
-1.7
2.8
-3.3
-7.0
-0.4
-15.6
-8.6
-3.5
-10.8
-6.3
1.0
16.5
-2.5
-0.3
-6.8
-7.6
-6.9
-12.2
-13.1
-8.5
-8.4
-11.2
2013
1P
2P
-6.0
-32.7
155.1
-77.1
-10.4
-16.0
-15.8
-17.0
-15.6
-18.2
-14.7
-27.2
P: Preliminary
7.
Value of construction completed and domestic construction orders received
(current prices, billion won)
Period
2011
2012
Value of
construction
completion
(total)
91,717
88,031
Type of order
Public
Private
35,120
33,578
51,663
50,260
Domestic
construction
orders received
(total)
95,332
86,821
Type of order
Public
Private
28,624
26,103
61,839
57,202
2011
19,277
24,057
21,423
26,960
7,322
9,290
7,684
10,825
11,031
13,339
12,597
14,696
16,335
25,319
20,444
33,233
4,119
6,311
6,711
11,483
11,107
17,653
12,871
20,209
2012
19,106
22,203
21,135
25,587
7,385
8,813
7,499
9,881
10,795
12,333
12,584
14,548
21,772
25,136
17,665
22,248
5,531
5,602
5,478
9,492
15,549
18,515
11,632
11,506
2011
7
8
9
10
11
12
6,754
6,896
7,772
7,961
7,859
11,140
2,378
2,461
2,845
2,902
3,171
4,752
4,061
4,099
4,437
4,672
4,292
5,733
5,157
7,574
7,714
7,491
9,039
16,703
1,885
1,504
3,352
2,415
2,989
6,179
3,094
5,783
3,994
4,991
5,870
9,347
2012
1
2
3
4
5
6
7
8
9
10
11
12
5,742
5,979
7,385
6,789
7,225
8,189
6,970
6,508
7,658
7,298
8,030
10,259
2,106
2,358
2,921
2,625
2,839
3,349
2,337
2,292
2,870
2,574
2,974
4,333
3,339
3,371
4,086
3,875
4,066
4,393
4,254
3,907
4,423
4,432
4,742
5,375
7,244
8,122
6,406
6,033
7,215
11,887
6,450
5,120
6,195
5,501
7,232
9,516
1,796
2,165
1,390
1,448
1,072
3,082
2,284
1,341
1,852
1,962
2,148
5,382
5,100
5,812
4,636
4,097
6,034
8,385
3,886
3,738
4,008
3,507
4,743
3,255
2013
1P
2P
6,258
6,299
2,065
2,313
3,423
4,355
1,306
1,262
1,970
3,024
-0.6
-4.0
-0.1
-4.4
3,948
3,747
Y-o-Y change (%)
-2.2
-2.7
6.1
-8.9
-2.0
-8.8
12.3
-7.5
2011
2012
2011
-5.2
-0.1
-2.7
4.4
-2.1
1.8
-1.5
0.7
-7.9
-4.3
-4.3
6.9
-11.5
-0.9
5.6
25.5
-49.0
-8.4
-1.4
54.5
20.3
4.7
12.1
15.4
2012
-0.9
-7.7
-1.3
-5.1
0.9
-5.1
-2.4
-8.7
-2.1
-7.5
-0.1
-1.0
33.3
-0.7
-13.6
-33.1
34.3
-11.2
-18.4
-17.3
40.0
4.9
-9.6
-43.1
2011
7
8
9
10
11
12
-9.3
-3.5
4.7
7.9
-1.9
6.7
-11.7
0.1
7.2
1.7
-2.5
2.3
-8.0
-6.1
1.4
12.3
-2.5
10.5
-32.0
79.2
2.3
70.0
17.9
16.0
-52.2
12.5
110.6
95.8
46.7
46.7
-8.6
111.9
-25.5
63.8
10.9
2.0
2012
1
2
3
4
5
6
7
8
9
10
11
12
-7.2
12.2
-4.8
-5.4
-2.9
-13.3
3.2
-5.6
-1.5
-8.3
2.2
-7.9
-13.6
16.3
2.3
-4.3
1.8
-10.9
-1.7
-6.8
0.9
-11.3
-6.2
-8.8
-4.3
10.1
-8.8
-4.7
-4.3
-12.5
4.8
-4.7
-0.3
-5.1
10.5
-6.2
47.5
99.1
-12.8
-10.1
0.9
3.7
23.1
-32.4
-19.7
-26.6
-20.0
-43.0
50.2
53.7
0.3
1.4
-43.3
3.0
23.1
-10.9
-44.7
-15.3
-28.1
-12.9
75.6
131.7
-18.6
-11.5
27.3
1.3
25.6
-35.4
0.4
-29.7
-19.2
-65.2
2013
1P
2P
9.0
5.4
-2.0
-1.9
18.3
11.2
-52.7
-46.4
-33.9
-41.7
-61.4
-48.0
P: Preliminary
8.
Composite indices of business cycle indicators and BSI
Period
Leading index
(2010=100)
Coincident index
(2010=100)
Cycle of
coincident index
(2010=100)
BSI
(results)
BSI
(prospects)
2009
1
2
3
4
5
6
7
8
9
10
11
12
87.4
88.2
88.7
90.5
91.9
93.6
94.3
95.0
95.9
96.9
98.2
98.8
88.5
88.5
89.2
90.3
90.8
92.3
93.1
93.7
94.3
95.3
96.0
96.5
95.3
95.0
95.4
96.1
96.4
97.5
98.0
98.3
98.6
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
99.2
99.1
99.0
99.0
99.6
100.1
100.7
100.8
101.0
100.5
100.5
100.5
97.0
97.7
98.4
99.1
99.8
100.3
100.9
101.1
101.1
101.0
101.4
102.2
99.9
100.2
100.5
100.8
101.1
101.2
101.4
101.1
100.7
100.2
100.2
100.6
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
101.3
101.6
101.7
101.3
101.6
102.0
102.6
102.9
103.2
103.3
103.4
103.7
103.5
103.6
104.0
104.0
104.7
105.3
105.9
106.5
106.5
107.0
106.9
107.4
101.4
101.1
101.1
100.7
100.9
101.1
101.2
101.4
101.0
101.0
100.6
100.5
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
9
10
11
12
104.4
105.4
105.7
106.2
106.3
107.4
108.0
108.1
108.0
108.3
109.1
109.9
107.4
108.2
108.3
108.6
108.7
109.1
109.7
109.6
110.1
110.0
110.7
111.3
100.2
100.5
100.2
100.0
99.7
99.7
99.8
99.3
99.3
98.9
99.1
99.2
88.6
92.2
101.4
97.5
95.7
90.4
82.1
84.4
89.3
88.9
82.2
87.0
88.3
91.0
106.1
98.4
104.7
98.3
89.7
82.7
99.5
97.0
92.5
82.0
2013
1
2
3
4
110.1
110.4
-
111.7
112.3
-
99.2
99.3
-
85.0
83.0
101.3
-
85.7
86.7
104.4
101.5
Source: Statistics Korea & The Bank of Korea

9.
Balance of payments (I)
(million US$)
Current balance
Goods trade balance
Period
2010
2011
2012
29,393.5
26,068.2
43,138.5
40,082.5
31,660.0
38,337.7
Exports
461,444.9
551,765.4
552,565.3
Imports
421,362.4
520,105.4
514,227.6
Services trade
balance
Income trade
Balance
Current transfers
-8,626.0
-5,849.5
2,676.2
1,015.9
2,890.9
4,885.5
-3,078.9
-2,633.2
-2,760.9
2010
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
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
2012
2,559.9
11,188.8
14,561.7
14,828.1
2,612.4
8,520.5
13,341.2
13,863.6
134,627.6
138,784.9
137,086.0
142,066.8
132,015.2
130,264.4
123,744.8
128,203.2
-648.4
2,312.7
654.4
357.5
1,487.6
821.4
1,041.3
1,535.2
-891.7
-465.8
-475.2
-928.2
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
2012
1
2
3
4
5
6
7
8
9
10
11
12
-968.8
557.3
2,971.4
1,734.0
3,574.9
5,879.9
6,144.3
2,504.3
5,913.1
5,781.7
6,906.2
2,140.2
-1,624.0
1,310.1
2,926.3
1,750.8
1,715.9
5,053.8
5,340.6
2,514.0
5,486.6
5,168.9
6,777.4
1,917.3
41,383.8
45,863.0
47,380.8
45,820.3
46,162.8
46,801.8
46,620.5
42,895.6
47,569.9
48,144.1
49,636.8
44,285.9
43,007.8
44,552.9
44,454.5
44,069.5
44,446.9
41,748.0
41,279.9
40,381.6
42,083.3
42,975.2
42,859.4
42,368.6
-128.8
-1,219.3
699.7
549.7
1,593.0
170.1
593.3
-262.2
323.3
378.3
-51.6
30.8
1,191.7
613.4
-317.5
-422.0
341.6
901.8
401.9
435.5
203.9
521.9
374.3
639.0
-407.7
-146.9
-337.1
-144.5
-75.6
-245.7
-191.5
-183.0
-100.7
-287.4
-193.9
-446.9
2013P
1
2
2,331.7
2,712.9
2,617.7
2,562.9
47,163.0
42,218.6
44,545.3
39,655.7
-927.1
-461.0
968.4
628.9
-327.3
-17.9
P: Preliminary
10.
Balance of payments (II)
(million US$)
Capital & financial account
Period
2010
2011
2012
Direct
investment
Portfolio
investment
Financial
derivative
Other
investment
-27,478.5
-26,778.0
-43,619.1
-22,184.3
-16,410.0
-18,628.1
42,479.8
13,109.3
10,114.8
828.9
-1,031.3
3,075.2
-21,414.4
-8,468.6
-26,897.7
Capital transfers Changes in

& acquisition of reserve assets
non-financial
assets
-217.9
-26,970.6
-24.7
-13,952.8
602.1
-11,885.4
Errors and
omissions
-1,915.0
709.8
480.6
2010
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
-2,754.1
-6,808.0
-8,320.9
-20,931.2
-4,696.3
-4,138.1
-2,807.6
-2,980.7
-1,379.1
2,035.4
8,108.4
-5,338.8
730.3
-542.9
-1,490.7
1,086.4
6,251.6
-1,432.5
-18,692.6
-11,733.2
-181.4
-111.9
235.5
106.8
-3,479.2
-2,618.0
6,326.1
-2,071.7
143.8
1,315.8
1,424.9
6,103.1
2012
-1,377.1
-7,968.0
-13,342.8
-20,931.2
-7,203.3
-3,015.2
-5,428.9
-2,980.7
15,156.1
-5,481.3
5,778.8
-5,338.8
1,355.0
-65.3
699.1
1,086.4
-4,232.7
-581.2
-10,350.6
-11,733.2
134.3
284.3
76.7
106.8
-6,586.4
890.7
-4,118.0
-2,071.7
-1,182.8
-3,220.8
-1,218.9
6,103.1
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
-738.8
-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
1,773.30
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
10.1
-120.7
-32.7
-28.0
-33.6
-49.9
-28.4
13.8
41.5
180.2
109.7
98.1
0.0
-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
2012
1
2
3
4
5
6
7
8
9
10
11
12
1,305.6
-920.3
-1,762.4
157.7
-2,897.4
-5,228.3
-7,840.1
-605.0
-4,897.7
-7,259.3
-9,838.2
-3,833.7
-2,013.3
-3,572.6
-1,617.4
-940.4
-1,382.0
-692.8
-1,443.6
-1,607.1
-2,378.2
-975.0
-1,336.2
-669.5
7,737.0
6,115.2
1,303.9
-2,213.3
-937.1
-2,330.9
2,529.2
580.9
2,668.7
-4,657.2
-3,875.8
3,194.2
434.2
214.1
706.7
320.5
-390.4
4.6
267.1
68.3
363.7
-135.3
612.6
609.1
-2,190.4
-1,526.1
-516.2
2,667.4
-1,600.9
-1,647.7
-7,625.3
1,464.0
-4,189.3
-15.5
-2,683.7
-9,034.0
-1.7
36.0
100.0
102.3
144.2
37.8
36.3
8.0
32.4
-6.1
5.8
107.1
-2,660.2
-2,186.8
-1,739.4
221.2
1,268.8
-599.3
-1,603.8
-1,119.2
-1,395.0
-1,470.2
-2,560.9
1,959.4
-336.8
363.0
-1,209.0
-1,891.7
-677.5
-651.6
1,695.8
-1,899.3
-1,015.4
1,477.6
2,932.0
1,693.5
2013P
1
2
-910.3
-3,269.1
-1,417.7
-777.8
-4,374.3
1,993.5
586.9
686.9
4,643.9
-3,218.3
48.5
37.8
-397.6
-1,991.2
-1,421.4
556.2
P: Preliminary
11.
Prices
(2010=100)
Consumer Prices
Producer prices
Export & import prices
Period
All Items
2011
2012
Export
Import
104.0
106.3
Commodity
105.7
108.9
Service
102.7
104.2
Core
103.2
104.9
All Items
106.7
107.5
Commodity
108.7
108.9
100.2
97.9
111.6
110.8
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
104.3
105.1
106.3
107.0
107.3
107.1
107.2
107.4
107.4
107.3
107.0
107.1
105.7
106.7
108.3
109.1
109.5
109.1
109.3
109.5
109.6
109.4
108.9
109.0
98.7
100.7
103.7
102.3
100.5
99.3
97.4
98.1
101.0
102.2
99.5
99.4
106.3
109.3
113.2
113.9
111.5
110.9
109.5
109.8
113.6
114.8
113.1
113.3
2012
1
2
3
4
5
6
7
8
9
10
11
12
105.7
106.1
106.0
106.0
106.2
106.1
105.9
106.3
107.0
106.9
106.5
106.7
107.9
108.5
109.2
108.9
109.2
108.8
107.9
108.8
110.4
109.8
108.9
109.0
103.9
104.2
103.5
103.7
103.9
104.0
104.2
104.4
104.4
104.6
104.6
104.8
104.6
104.7
104.3
104.4
104.6
104.9
104.9
105.1
105.2
105.2
105.3
105.5
107.7
108.4
108.9
109.0
108.4
107.1
106.6
107.2
107.6
106.8
106.1
105.8
109.5
110.5
111.2
111.1
110.3
108.4
107.6
108.6
109.2
107.8
106.8
106.4
100.4
100.0
100.6
101.0
100.2
98.8
97.5
97.5
97.6
95.6
92.9
92.3
114.4
115.0
116.9
115.6
113.5
109.4
108.5
110.3
111.1
107.4
104.3
103.2
2013
1
2
3
107.3
107.6
107.4
109.8
110.2
110.3
105.2
105.5
105.1
106.0
106.7
106.3
106.8
107.8
107.1
92.2
94.4
94.7
102.3
105.1
104.3
4.0
2.2
5.7
3.0
105.9
106.1
105.9
Y-o-Y change (%)
2.7
3.2
1.5
1.6
6.7
0.7
8.7
0.2
0.2
-2.4
11.6
-0.7
2011
2012
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
6.8
7.4
8.2
8.1
7.5
7.2
7.0
6.9
6.3
5.8
5.1
4.3
9.1
9.8
10.7
10.6
9.7
9.3
9.1
8.9
8.0
7.4
6.5
5.3
0.8
1.6
5.1
3.4
-0.9
-4.8
-6.0
-2.7
1.0
5.3
2.0
-1.0
11.7
14.5
17.7
17.4
11.7
8.6
7.6
8.0
11.9
14.5
10.7
6.1
2012
1
2
3
4
5
6
7
8
9
10
11
12
3.4
3.1
2.6
2.5
2.5
2.2
1.5
1.2
2.0
2.1
1.6
1.4
4.4
3.9
4.1
4.1
4.3
3.6
1.9
1.6
3.1
3.0
2.0
1.6
2.7
2.5
1.4
1.3
1.3
1.2
1.1
1.1
1.3
1.4
1.3
1.3
3.2
2.5
1.9
1.8
1.6
1.5
1.2
1.3
1.4
1.5
1.3
1.2
3.2
3.1
2.4
1.9
1.0
0.0
-0.6
-0.1
0.2
-0.5
-0.9
-1.2
3.6
3.6
2.7
1.9
0.7
-0.7
-1.5
-0.9
-0.4
-1.4
-1.9
-2.3
1.7
-0.7
-3.0
-1.2
-0.3
-0.5
0.1
-0.7
-3.4
-6.5
-6.6
-7.2
7.7
5.2
3.3
1.5
1.8
-1.3
-0.9
0.5
-2.2
-6.4
-7.9
-9.0
2013
1
2
3
1.5
1.4
1.3
1.8
1.6
1.0
1.3
1.2
1.5
1.2
1.3
1.5
-1.6
-1.6
-2.4
-2.5
-2.5
-3.7
-8.1
-5.6
-5.9
-10.6
-8.6
-10.8

12.
Employment
Economically active persons (thous.)
Employed persons (thous.)
Period
2011
2012
Wage workers
25,099
25,501
All industry Manufacturing

24,244
4,091
24,681
4,105
S.O.C &
service
18,595
19,033
Status of Worker
Unemployment (%)
Regular
Temporary
Daily
3.4
3.2
17,397
17,712
10,661
11,097
4,990
4,988
1,746
1,627
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
7
8
9
10
11
12
24,585
24,825
25,210
25,653
25,939
25,939
25,901
25,623
25,755
25,787
25,652
25,139
23,732
23,783
24,265
24,758
25,133
25,117
25,106
24,859
25,003
25,069
24,941
24,402
4,034
4,060
4,018
4,027
4,071
4,084
4,114
4,111
4,153
4,188
4,218
4,183
18,631
18,599
18,870
19,103
19,292
19,248
19,265
19,040
19,125
19,128
19,088
19,010
3.5
4.2
3.7
3.5
3.1
3.2
3.1
3.0
2.9
2.8
2.8
2.9
17,184
17,225
17,421
17,679
17,935
17,932
17,911
17,734
17,862
17,958
17,941
17,763
10,769
10,807
10,899
10,957
11,064
11,157
11,153
11,203
11,291
11,302
11,281
11,282
4,868
4,877
4,997
5,095
5,153
5,094
5,081
4,935
4,961
4,964
4,960
4,875
1,547
1,542
1,525
1,627
1,718
1,681
1,676
1,595
1,610
1,692
1,700
1,606
2013
1
2
3
24,901
24,973
25,397
24,054
23,984
24,514
4,189
4,139
4,141
17,581
17,493
17,743
11,292
11,336
11,510
4,791
4,725
4,769
1,498
1,431
1,465
1.4
1.6
1.7
1.8
1.6
0.3
18,810
3.4
18,736
4.0
18,989
3.5
Y-o-Y change (%)
2.1
2.4
-
2.5
1.8
5.7
4.1
-1.5
0.0
-3.9
-6.9
2011
2012
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
7
8
9
10
11
12
2.0
1.6
1.2
1.6
1.8
1.4
1.7
1.4
2.7
1.5
1.3
1.0
2.3
1.9
1.8
1.9
1.9
1.5
1.9
1.5
2.8
1.6
1.4
1.1
-2.8
-2.1
-2.5
-2.0
-1.6
-1.2
0.8
2.0
3.5
3.6
4.0
2.8
3.5
3.2
3.4
3.1
3.0
2.3
2.2
1.6
2.8
1.4
0.9
0.9
2.1
2.2
2.1
1.9
1.8
1.2
1.4
1.3
2.8
2.0
1.7
1.5
4.5
4.0
3.4
3.2
3.3
4.1
4.1
4.6
4.9
4.7
4.1
4.2
0.4
2.0
4.5
3.4
1.8
-0.7
-1.1
-1.9
-1.7
-2.5
-1.7
-2.2
-7.9
-8.5
-12.3
-10.2
-7.4
-10.2
-7.5
-9.8
2.7
-1.5
-3.6
-4.7
2013
1
2
3
1.3
0.6
0.7
1.4
0.8
1.0
3.9
1.9
3.1
1.0
0.7
0.6
2.3
1.6
1.8
4.9
4.9
5.6
-1.6
-3.1
-4.6
-3.1
-7.1
-4.0

13.
Financial indicators
(period average)
Yields(%)
Period
Stock
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
Corporate bonds
(3 years, AA-)
6.6
6.3
6.1
5.9
6.2
6.7
7.0
7.1
7.5
8.0
8.6
8.4
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
8
9
10
11
12
3.3
3.3
3.3
3.3
3.3
3.3
3.1
3.0
3.0
2.8
2.8
2.8
3.6
3.5
3.5
3.5
3.5
3.5
3.3
3.2
3.1
2.9
2.9
2.9
4.2
4.3
4.4
4.3
4.0
3.9
3.6
3.4
3.3
3.3
3.3
3.3
3.4
3.4
3.6
3.5
3.4
3.3
3.0
2.8
2.8
2.8
2.8
2.9
3.5
3.6
3.7
3.6
3.5
3.4
3.1
2.9
2.9
2.9
2.9
3.0
1,955.79
2,030.25
2,014.04
1,981.99
1,843.47
1,854.01
1,881.99
1,905.12
1,996.21
1,912.06
1,932.90
1,997.05
2013
1
2
3
2.8
2.8
2.7
2.9
2.8
2.8
3.2
3.1
3.0
2.8
2.7
2.6
2.9
2.8
2.7
1,961.94
2,026.49
2,004.89
Call rate (1 day)
CD (91 days)

Treasury bonds
(3 years)
5.4
5.1
5.2
5.0
5.3
5.7
6.0
5.8
5.8
5.1
5.0
4.0
Treasury bonds
(5 years)
5.5
5.1
5.2
5.0
5.4
5.8
6.0
5.8
5.8
5.2
5.2
4.3
KOSPI
(end-period)
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
14.
Monetary indicators
(billion won)
Period
Reserve money
2011
2012
M1
M2
Lf
75,232.0
82,131.1
425,675.1
441,963.6
1,708,984.5
1,798,625.7
2,208,170.4
2,379,518.7
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
7
8
9
10
11
12
81,635.4
81,655.3
79,068.0
80,641.8
80,547.7
81,804.0
81,555.7
82,369.1
82,958.7
85,078.6
82,956.5
85,302.7
439,352.9
437,193.9
440,075.4
437,445.3
438,795.3
441,611.0
441,760.6
439,573.2
440,034.3
444,477.8
445,463.9
457,778.9
1,757,058.7
1,762,988.4
1,773,172.9
1,777,114.7
1,784,220.5
1,796,981.5
1,807,289.2
1,817,134.9
1,819,290.1
1,822,420.9
1,830,280.3
1,835,556.7
2,292,213.5
2,302,065.8
2,341,626.9
2,349,723.2
2,357,701.0
2,377,071.3
2,393,737.7
2,405,239.9
2,415,263.5
2,424,000.4
2,440,062.8
2,455,962.9
2013
1
2
85,839.3
88,855.7
464,914.5
472,239.6
Y-o-Y change (%)
6.6
3.8
1,841,128.1
1,857,135.0
2,469,789.3
2,488,539.0
4.2
5.2
5.3
7.8
2011
2012
11.3
9.2
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
7
8
9
10
11
12
11.0
8.3
8.3
10.2
9.1
9.5
10.1
8.9
6.4
10.6
8.3
9.6
2.3
1.1
2.1
2.8
3.5
4.7
5.4
4.0
3.5
5.5
5.3
5.8
4.8
5.3
5.7
5.5
5.5
5.9
6.0
5.7
5.2
4.6
4.4
4.5
6.5
7.2
8.8
8.6
8.4
8.5
8.4
7.8
7.6
7.1
7.1
7.3
2013
1
2
5.1
8.8
5.8
8.0
4.8
5.3
7.7
8.1

15.
Exchange rates
/US$
/100
/Euro
Period
2011
2012
End-period
Average
End-period
Average
End-period
Average
1,153.3
1,071.1
1,108.1
1,126.9
1,485.2
1,247.5
1,391.3
1,413.1
1,494.1
1,416.3
1,541.4
1,448.2
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
8
9
10
11
12
1,125.0
1,126.5
1,137.8
1,134.2
1,177.8
1,153.8
1,136.2
1,134.6
1,118.6
1,094.1
1,084.7
1,071.1
1,145.9
1,123.4
1,125.9
1,135.6
1,154.3
1,165.5
1,143.4
1,131.7
1,124.8
1,106.9
1,087.5
1,077.0
1,473.1
1,399.2
1,380.7
1,412.0
1,489.1
1,453.8
1,453.6
1,444.0
1,441.1
1,374.5
1,320.6
1,247.5
1,488.7
1,433.7
1,364.1
1,393.9
1,447.1
1,469.1
1,446.4
1,438.4
1,438.6
1,400.9
1,344.0
1,288.1
1,478.2
1,516.3
1,513.4
1,501.7
1,456.6
1,435.0
1,393.1
1,419.6
1,444.3
1,418.3
1,407.3
1,416.3
1,477.2
1,486.0
1,487.1
1,495.6
1,478.6
1,462.3
1,407.0
1,402.8
1,446.0
1,436.0
1,395.9
1,411.4
2013
1
2
3
1,082.7
1,085.4
1,112.1
1,065.4
1,086.7
1,102.2
1,196.8
1,166.4
1,161.1
1,469.3
1,425.8
1,425.2
1,415.7
1,452.3
1,427.5
1.3
-7.1
-4.2
1.7
1,188.5
1,176.2
1,180.1
Y-o-Y change (%)
6.3
-16.0
5.4
1.6
-1.3
-5.2
0.6
-6.0
2011
2012
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
8
9
10
11
12
1.0
-0.1
2.8
5.8
9.0
7.0
7.9
5.9
-5.2
-0.9
-5.7
-7.1
2.3
0.5
0.3
4.5
6.5
7.8
7.9
5.5
0.6
-4.2
-4.0
-6.1
8.6
1.3
3.7
7.5
11.5
8.8
7.4
3.4
-6.2
-5.7
-10.5
-16.0
9.8
6.1
-0.9
6.8
8.5
9.4
8.5
3.4
-1.2
-7.1
-7.9
-12.6
-2.4
-2.1
-3.2
-5.6
-6.0
-8.0
-7.6
-8.3
-9.8
-9.2
-8.2
-5.2
-1.2
-2.5
-5.4
-4.7
-4.7
-6.0
-7.2
-8.8
-6.3
-9.3
-9.2
-6.6
2013
1
2
3
-3.8
-3.6
-2.3
-7.0
-3.3
-2.1
-19.3
-15.9
-14.5
-19.6
-18.6
-14.9
-0.6
-6.0
-5.8
-4.2
-2.3
-4.0

Editor-in-Chief
Koh Il-Dong (KDI)
Kim Yong-Jin (MOSF)
Editorial Board
Sohn Woong-Ki (MOSF)
Lee Seong-Pyo (KDI)
Lee In-Sook (KDI)
Coordinators
Kim Dae-Hyun (MOSF)
Lee Ji-Youn (KDI)
Editors
David Friedman (MOSF)
Joung Hye-Sun (MOSF)
Park Jin (KDI)
Useful Economy-related Websites

http://english.mosf.go.kr
Ministry of Trade, Industry and Energy
http://www.motie.go.kr/language/eng
Financial Services Commission
http://www.fsc.go.kr/eng
Financial Supervisory Service
http://english.fss.or.kr
Fair Trade Commission
http://eng.ftc.go.kr
Ministry of Employment and Labor
http://www.moel.go.kr/english
The Bank of Korea
http://www.bok.or.kr/eng
Statistics Korea
http://kostat.go.kr/portal/english
ISSN 2287-7266
Republic of Korea
ECONOMIC BULLETIN (Republic of Korea)
ECONOMIC
BULLETIN
Vol.35 No.4
03 The Green Book:

50 Policy Issues

60 Economic News Briefing
Korea Grows 2.0% in 2012

Government Structure Reorganized
Housing Market Boosting Measures Unveiled
Korea, China and Japan Hold First Round of FTA Talks
For free subscriptions and enquiries, please contact:
MOSF/KDI
Economic Information and Education Center

Korea Development Institute
47 Hoegiro, Dongdaemun-gu
Seoul, 130-740
Republic of Korea
Tel. +82 2 958 4645
Fax. +82 2 3295 0748
E-mail. jiyounlee@kdi.re.kr
Website. http://eiec.kdi.re.kr
65 Statistical Appendices
Vol.35 No.4 April 2013
Foreign Press Spokespersons Office

Government Complex, 477 Galmae-ro
Sejong, 339-012
Republic of Korea
Tel. +82 2 6908 8701
Fax. +82 2 6908 8705
E-mail. fppr@mosf.go.kr
Website. http://english.mosf.go.kr
| Economic Information and Education Center
April 2013

Economic Bulletin (Vol. 35 No. 4)

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ISSN 2287-7266

03 The Green Book:

Park Geun-hye Administrations Economic Policy Directions for 2013

60 Economic News Briefing

Korea Grows 2.0% in 2012

For free subscriptions and enquiries, please contact:

Economic Information and Education Center

Foreign Press Spokespersons Office

| Economic Information and Education Center

Park Geun-hye administrations economic policy directions for 2013 ................... 50

Economic News Briefing

The Green Book

4 | The Green Book

World GDP growth

Meanwhile, the ISM Manufacturing Index declined in March, registering below

Nonfarm payroll increase (m-o-m, thousand)

- Personal consumption expenditure

- Corporate fixed investment

- Housing construction investment

Existing home sales

US GDP growth and industrial production

GDP (q-o-q, annualized rate)

6 | The Green Book

Industrial production (q-o-q)

US nonfarm payroll growth and unemployment rate

US nonfarm payroll growth (m-o-m, left)

Unemployment rate (right)

The Chinese economy continues to gradually recover, with exports registering

Fixed asset investment (accumulated)

The Green Book | 7

Chinas GDP growth and fixed asset investment

GDP (y-o-y, left)

Fixed asset investment (accumulated, y-o-y, right)

Consumer prices (y-o-y)

8 | The Green Book

Japans GDP growth and industrial production

GDP (q-o-q, left)

Industrial production (q-o-q, right)

The Green Book | 9

Eurozones GDP growth and industrial production

GDP (q-o-q, left)

Industrial production (q-o-q, right)

(Percentage change from previous period)

Private consumption (y-o-y)

Private consumption (q-o-q)

(Percentage change from previous period)

Consumer goods sales (y-o-y)

Consumer goods sales (m-o-m)

The Green Book | 11

Retail sales by type

Large discount stores

12 | The Green Book

Gasoline prices (won/liter)

Credit card sales

Department store sales

Large discount store sales

Domestic sales of gasoline

Domestic sales of cars

Department store and discount store sales (current value)

Department store sales

Domestic sales of cars

Domestic car sales (left)

Domestic car sales growth (right)

The Green Book | 13