Press Release

Embargo:

Release Date: June 10, 2014

Contact Information: Jeon Bo-ram (044-215-2733/ Economic Analysis Division)

CURRENT ECONOMIC SITUATION, JUNE 2014

The Korean economy suffered from a fall in retail sales and service output in April, however,
employment and inflation remained stable, and manufacturing production, facility investment and
construction improved.
The economy added less jobs in April, adding 581,000 jobs year-on-year compared to 649,000 jobs
in March.
Inflation in May remained stable in the 1 percent range, increasing 1.7 percent year-on-year, up from
1.5 percent in the previous month.
Mining and manufacturing production continued to increase for the second consecutive month in
April, despite the sales ban on mobile carriers, helped by strong mobile phone exports and
automobile production. The index increased 0.1 percent quarter-on-quarter.
Service output, which increased 0.5 percent in March, fell 0.1 percent in April as the Sewol ferry
disaster had a negative effect on wholesale & retail, entertainment, cultural & sports service, hotel &
restaurant industries. Retail sales, which increased 1.8 percent in the previous month, fell 1.7
percent due to weak durable and semi-durable goods sales in the wake of the Sewol ferry disaster.
Facilities investment, which increased 1.2 percent in March, continued to improve in April, rising 2.6
percent, as investment in both transportation equipment and machinery increased. Construction
completed also increased 6.9 percent month-on-month after declining 3.8 percent in March.
The composite index of coincident indicators fell 0.3 points month-on-month in April due to a fall in
retail sales and service output, but the composite index of leading indicators rose 0.1 points.
Exports in May fell 0.9 percent year-on-year due in part to 1.5 fewer days worked, but average daily
exports increased and a trade surplus continued at US $5.35 billion.
The stock market had plummeted in the beginning of May, but rebounded and remained stable as
foreign investors bought more Korean shares than they sold. The value of the won rose.
In May, housing prices across the country rose at a slower pace from 0.1 percent to 0.0 percent
month-on-month, and the fall in prices in the Seoul metropolitan area accelerated from 0.02 percent
to 0.1 percent. Jeonse (lump-sum deposits with no monthly payments) prices continued to increase
at the same pace as the previous month, rising 0.1 percent owing to the ending of the spring moving
season.

MINISTRY OF STRATEGY AND FINANCE

www.mosf.go.kr

The economy continues to recover, but the recovery in the private sector has yet to fully take hold,
and consumption and service industry indicators appear to be slowing down in the wake of the April
Sewol ferry disaster.
The Korean government will continue to closely monitor internal and external economic trends as
external risks remain, including US QE tapering, uncertainties in emerging economies, and the
weakening of the yen, and at the same time will work to help the economic recovery take hold and
protect domestic markets from external shocks.
The government will implement policies to support the working class and boost the economy, and
will continue to successfully implement the Three-year Plan for Economic Innovation to strengthen
Koreas economic fundamentals.

Key Statistics
Employment
2012
Q3

Q4

24.68

24.9
9

59.1

59.4

59.1

59.4

2010
23.8
3

58.7

(Seasonally
adjusted)

24.2
4

58.7

Number of
employed
(million)
Employment
rate (%)

2011

Annua
l

2013
Q2
Q3

Q4

Apr

Q1

2014
Mar

24.18

25.3
3

25.4
1

25.3
5

25.1
0

24.9
1

25.1
6

25.68

59.5

57.7

60.2

60.3

60.0

59.8

58.8

59.4

60.6

59.5

59.2

59.4

59.7

59.9

59.4

60.4

60.2

60.2

Annua
l

Q1

24.8
0

25.07

60.0

59.4

59.4

59.2

Apr

Consumer Price Index

m-o-m
y-o-y

May
0.0
1.1

Jun
-0.1
1.2

Jul
0.2
1.6

2013
Aug Sep
0.4
0.2
1.5
1.0

Oct
-0.3
0.9

Nov
0.0
1.2

Dec
0.1
1.1

Jan
0.5
1.1

2014
Mar
0.2
1.3

Feb
0.3
1.0

Apr
0.1
1.5

May
0.2
1.7

Mar
0.9

Apr
0.1

Mining and Manufacturing Production

Q1
-0.5

Q2
-0.9

Q3
0.1

Q4
1.9

Apr
0.3

2014
Q1
0.3

Feb
-2.1

0.3
-

-0.8
-0.4

0.0
-1.0

0.2
0.0

1.7
2.1

2.2
0.2

0.6
0.3

3.9
-2.3

2.6
1.0

2.4
0.0

0.3
0.4
-1.4
2.3
5.0
76.2

-0.8
-0.3
-1.7
1.6
-0.6
77.3

0.0
-0.6
-1.1
-0.2
-2.1
75.9

0.1
-0.1
1.6
-2.0
5.7
75.1

1.8
1.7
1.7
1.6
2.4
76.6

2.1
-0.3
-0.1
-0.4
-0.9
75.9

0.6
-0.2
0.0
-0.2
-0.5
77.1

4.1
-1.1
-1.1
-1.0
-1.2
75.8

2.7
1.5
0.7
2.4
1.5
77.2

2.5
-0.5
0.8
-1.9
1.5
77.5

MINISTRY OF STRATEGY AND FINANCE

www.mosf.go.kr

Manufacturing
indicators

Mining
(q-o-q, m-o-m)
(y-o-y)
Manufacturing
(q-o-q, m-o-m)
(y-o-y)
Shipping
-Domestic demand
-Exports
Inventory
Average operation ratio
(%)

Mining and
manufacturing
activity

2013
Annual
-

Production capacity (yo-y)

1.
2.
3.

1.7

1.8

1.6

1.8

1.7

1.5

1.2

1.2

1.2

1.2

Preliminary
Including mining, manufacturing, electricity and gas industry
End-period

Service Output
2012
Annual
Q4
1.6
0.1

Service activity index

1.

2013
Q1 Q2
0.2 0.4

Annual
1.4

Q3
0.2

Q4
0.9

(q-o-q, %)
2014
Mar Apr
0.5
-1.0

Q1
0.4

Preliminary

Retail Sales
2011
2012
Annual Annual Q3
Retail
sales
y-o-y
1.

Q4

2013
Q1 Q2

Annual

Q3

Q4

(q-o-q, %)
2014
Q1 Mar Apr

1.4

-0.1

-1.0

0.9

0.8

0.3

0.4

1.8

-1.7

4.5

2.4

2.7

2.5

0.8

0.3

1.2

0.7

1.2

2.5

2.1

-0.1

Preliminary

Facility Investment Index

(q-o-q, %)
2012
Annual

Annual

Q1

2013
Q2

Q3

Q4

Q1

-2.8

-1.3

-3.1

1.1

5.0

5.9

-13.1

-4.0

2.7

10.4

-5.3

-4.4

-0.6

1.2

2.6

5.8

-1.6

12.3

7.0

10.7

Mar

1.

2014
Feb

Apr

Facility investment
index
y-o-y

Jan

Preliminary

Construction Completed
(q-o-q, %)
2012
Annual

Annual

-5.0
-

Construction
completed
(constant)
y-o-y
1.

2013
Q1
Q2

Q3

Q4

Q1

Jan

10.1

3.5

6.3

-0.1

-0.7

1.4

8.4

-3.4

-3.8

6.9

4.4

15.0 10.5

9.7

6.4

11.4

6.5

2.2

2.9

2014
Feb Mar Apr

Preliminary

Composite Index of Coincident and Leading Indicators

Sep
Composite index of
coincident indicators
(2010=100)
m-o-m, %

2013
Oct
Nov

Dec

Jan

2014
Mar
Feb

Apr

115.1

115.7

116.1

116.8

117.5

117.9

118.4

118.5

0.2

0.5

0.3

0.6

0.6

0.3

0.4

0.1

MINISTRY OF STRATEGY AND FINANCE

www.mosf.go.kr

Composite index of leading

indicators
(2010=100)
m-o-m, %
1. preliminary

114.6

115.3

116.2

117.0

117.6

118.0

118.2

118.8

0.2

0.6

0.8

0.7

0.5

0.3

0.2

0.5

Exports and Imports

2013
Exports
y-o-y
Average
daily
exports
Imports
y-o-y
Average
daily
imports
1.

Annual
Q1
559.63 135.32
2.1
0.3

Q2
141.16
0.7

Q3
136.79
2.8

Q4
146.37
4.7

May
48.31
3.1

Q1
137.60
1.7

(US$ billion, y-o-y, %)

2014
Mar
Apr
May
49.09 50.31
47.88
3.7
9.0
-0.9

2.05

2.02

2.06

2.00

2.11

2.10

2.07

2.13

2.1

2.23

515.56
-0.8

129.73
-2.9

126.76
-2.8

126.03
0.3

133.06
2.5

42.39
-4.7

132.39
2.1

45.54
3.6

45.85
5.0

42.53
0.3

1.89

1.94

1.85

1.84

1.91

1.84

1.99

1.98

1.91

1.98

Preliminary

MINISTRY OF STRATEGY AND FINANCE

www.mosf.go.kr