Professional Documents
Culture Documents
Republic of Korea
Economic Bulletin
Policy Issues
Lee administration’s economic achievement for the past two years 42
Statistical Appendices 53
The Green Book
Current Economic Trends
Overview
The Korean economy overall continued a recovery track, despite some indices becoming
stagnant affected by temporary factors such as a heavy snowfall and cold wave, and the
expiration of the tax credit for new car purchases.
Mining and manufacturing production in January remained flat month-on-month, while rising
36.9 percent year-on-year. Service output fell 0.8 percent month-on-month due to weak
performance in real estate and rent, education, and leisure businesses, but year-on-year the
index rose 4.6 percent.
Consumer goods sales, while gaining 6.9 percent year-on-year, lost 1.3 percent month-on-
month in January due to sluggish sales of durable goods, in particular automobile sales
affected by the expiration of the tax credit for new car purchases.
The total number of workers hired in January gained 5,000 year-on-year. The employment
rate (seasonally adjusted) posted 58.2 percent, shedding 0.1 percentage point from the
previous month. The unemployment rate jumped to 5.0 percent affected by temporary
factors, in particular soaring applicants for Hope Employment Program where economically-
inactive population such as the aged were counted unemployed persons.
Exports jumped 31.0 percent year-on-year in February, helped by the recovering global
economy. Imports soared 36.9 percent year-on-year, as an unusual cold wave increased
crude oil imports.
Consumer prices in February declined back to the 2 percent range, as stabilizing prices of
manufactured goods such as processed food and petroleum products offset increasing
prices of agriculture, livestock and fishery products.
Instability in the financial market grew in February, as stock prices and foreign exchange
rates fluctuated affected by rocky international financial markets.
To sum up, amid the global economy steadily recovering, external uncertainties rise as
international financial markets are vulnerable to fiscal difficulties in some European
countries and policies taken by the US and China.
The Korean government, to achieve a secure economic recovery, will keep pursuing
expansionary fiscal policies, while renewing its efforts to create jobs. On the other hand, the
government will keep an eye on any changes in internal and external situations including
international financial markets, and check risks in the Korean economy to timely respond to
possible worsening of economic conditions.
Economic Bulletin 3
1. Global economy
The global economy has been slowly rebounding, as major countries such as the US, Japan
and European countries continued to grow in the fourth quarter of 2009. There have been
some moves toward liquidity control such as the US discount rate hike and China’s further
increase in the bank reserve ratio. Concerns about sovereign credit risk from European
countries have been relieved to some degree after Greek government’s announcement of
new fiscal austerity plan.
US
US real GDP was revised upward to 5.9 percent (annualized q-o-q, preliminary) in the fourth
quarter from 5.7 percent (advanced). The real economy including consumption and
production continued a slow recovery, as industrial production and retail sales rose in
January from the previous month.
The US housing market recovery decelerated in January, despite the S&P/Case-Shiller Home
Price Index inching up 0.3 percent, as existing and new home sales fell 7.2 percent and 11.2
percent, respectively.
The job market slowed its fall, as the unemployment rate improved from the previous
month, landing at 9.7 percent, and non-farm payrolls decreased at a slower pace.
The Federal Reserve announced in the Federal Open Market Committee (FOMC) on February
18 that it would raise the discount rate by 25 basis points to 0.75 percent from 0.5 and
shorten loan terms to overnight from 28 days. Federal Reserve Chairman Ben Bernanke said,
at the House of Representative hearing on February 24, that the Fed would keep its main
interest rate at an all-time low near zero for an “extended period.”
4 March 2010
1-1 US GDP (q-o-q, annualized rate)
Source: US Department of Commerce
Economic Bulletin 5
China The Chinese government further raised the bank reserve ratio on February 25, aiming to
stabilize asset prices, amid increasing domestic demand and expanding exports. The
Manufacturing Purchasing Managers’ Index (PMI) in January stayed above the benchmark 50
for the 12th consecutive month, but compared with the previous month, it fell 3.8 points.
Japan
Japan’s economy grew 1.1 percent quarter-on-quarter in the fourth quarter, maintaining
recovery momentum, as exports increased and facility investment rebounded. Exports
surged, thanks to a low base effect from the previous year and growing demand from the
recovering global economy.
(Percentage change from previous period)
2008 2009 2010
Annual Q3 Q4 Annual Q1 Q2 Q3 Q4 Jan
Real GDP -0.7 -1.1 -3.0 -5.0 -3.2 1.3 0.0 1.1 -
Industrial and mining production -3.4 -3.3 -17.7 -22.3 -17.2 14.6 5.9 4.7 2.5
Retail sales (y-o-y, %) 0.3 0.8 -1.5 -2.2 -3.9 -0.9 -3.4 -0.7 2.6
Exports (y-o-y, %) -3.5 3.2 -23.1 -33.1 -46.9 -38.5 -34.4 -8.0 40.8
Consumer prices (y-o-y, %) 1.4 2.2 1.0 -1.4 -0.1 -1.0 -2.2 -2.0 -1.3
Source: Japan's Statistics Bureau and Statistics Centre
Eurozone
The eurozone economy showed a slow recovery, posting 0.1 percent quarter-on-quarter
growth in the fourth quarter, as Germany’s GDP stayed flat and Italy’s economy contracted
0.2 percent. Greek government's announcement on March 3 of additional deficit cuts worth
4.8 billion euros (US$6.6 billion) alleviated the country’s sovereign debt concerns to some
degree.
(Percentage change from previous period)
2008 2009 2010
Annual Q3 Q4 Annual Q1 Q2 Q3 Q4 Jan
Real GDP 0.8 -0.4 -1.9 -4.0 -2.5 -0.1 0.4 0.1 -
Industrial production -1.8 -2.0 -7.8 -14.9 -8.3 -1.4 1.9 0.2 -
Retail sales -0.7 -0.4 -1.1 -2.2 -0.8 -0.2 -0.1 -0.2 -0.3
Exports (y-o-y, %) 3.6 5.3 -4.9 -18.1 -20.9 -23.2 -19.4 -8.4 -
Consumer prices (y-o-y, %) 3.3 3.8 2.3 0.3 1.0 0.2 -0.4 0.4 1.0
Source: Eurostat
6 March 2010
1-4 China’s GDP and fixed asset investment
Source: National Bureau of Statistics of China
Economic Bulletin 7
2. Private consumption
Private consumption (advanced estimates of GDP) in the fourth quarter of 2009 edged down
0.1 percent quarter-on-quarter but increased 5.6 percent year-on-year.
Consumer goods sales in January 2010 dropped 1.3 percent month-on-month, negatively
affected by weak sales of durable goods including automobiles and non-durable goods, but
rose 6.9 percent year-on-year.
Durable goods sales continued an upward trend year-on-year, soaring 39.8 percent, but fell
5.7 percent month-on-month due to a drop in automobile sales as the tax break for new car
purchases expired.
Non-durable goods sales decreased 2.0 percent month-on-month or 5.2 percent year-on-
year, as gasoline sales dropped due to a cold wave and heavy snow.
Sales at department stores and specialized retailers jumped 6.5 percent and 10.9 percent
year-on-year, respectively, whereas those at large discounters posted a 9.0 percent year-on-
year drop.
8 March 2010
2-1 Private consumption
Source: The Bank of Korea (national accounts)
Economic Bulletin 9
Consumer goods sales in February are projected to rebound from a month earlier, given an
increased demand during the Lunar New Year holidays, improvements in advanced
estimates, and recovering consumer spending, with the year-on-year index continuing to
improve due to a low base effect from the previous year.
Domestic credit card spending rose 21.2 percent year-on-year, posting a 20 percent range
increase for three consecutive months since December 2009 when the index first landed at
20 percent.
Sales at department stores jumped 14.5 percent year-on-year, adding 9.7 percentage points
to the January figure. Sales at large discounters sharply rebounded by 31.3 percent year-on-
year in February, after the previous month’s fall of 13.4 percent.
Gasoline sales turned positive in four months, thanks to an increasing demand during the
Lunar New Year holidays.
The Consumer Sentiment Index, which slightly decreased in February but stayed above the
benchmark 100, is also projected to positively affect private consumption.
10 March 2010
2-4 Department store and discount store sales (current value)
Source: Ministry of Knowledge Economy (monthly retail sales)
Economic Bulletin 11
3. Facility investment
Facility investment (advanced estimates of GDP) in the fourth quarter of 2009 posted a
quarter-on-quarter increase of 4.7 percent, and a year-on-year gain of 12.9 percent.
Facility investment in January rose 20.4 percent year-on-year but the index fell 9.8 percent
month-on-month, affected by a high base effect from the previous month and seasonal
factors which caused machinery investment such as semi-conductors to fall by 12.7 percent.
(Percentage change from same period in previous year)
2007 2008 2009 2010
Annual Annual Annual1 Q1 Q2 Q3 Q41 Jan Nov Dec1 Jan1
Facility investment 8.2 -3.0 -8.0 -17.9 -12.9 -10.0 10.2 -21.1 10.2 21.1 20.4
(Seasonally adjusted) 2
- - - -10.2 5.6 2.4 13.9 -4.5 5.9 5.9 -9.8
- Machinery 7.5 -4.2 -12.9 -22.1 -18.9 -17.0 8.8 -22.2 7.2 19.5 15.1
- Transportation equipment 11.3 2.1 12.0 0.1 11.8 20.0 15.5 -16.4 21.5 27.4 41.7
Domestic machinery orders 20.6 -13.8 -11.8 -35.5 -17.7 3.4 20.0 -49.1 56.2 21.2 11.3
- Public -11.4 5.0 61.7 150.8 29.9 280.2 -27.2 56.5 110.1 -44.5 -27.1
- Private 24.5 -15.5 -19.9 -44.8 -22.3 -16.0 35.2 -54.4 45.5 52.4 18.0
- Machinery imports 22.1 6.4 -16.6 -27.9 -27.4 -15.9 -7.2 -33.6 21.6 24.7 34.8
Facility investment 1.7 -1.7 -4.0 -19.1 -8.9 1.2 12.8 -29.9 14.9 31.5 34.4
adjustment pressure3
1. Preliminary
2. Percentage change from previous period
3. Production growth rate minus production capacity growth rate in the manufacturing sector (%p)
Sources: Statistics Korea & The Korea International Trade Association
Facility investment in February is expected to increase from the previous month, given
improvements in leading indicators such as machinery orders and imports, corporate
investment confidence and facility investment adjustment pressure.
2009 2010
Oct Nov Dec Jan Feb Mar
12 March 2010
3-1 Facility investment by type
Source: The Bank of Korea (national accounts)
Economic Bulletin 13
4. Construction investment
Construction investment (advanced estimates of GDP) in the fourth quarter of 2009 rose
3.9 percent year-on-year, while remaining unchanged quarter-on-quarter.
Construction completed (current value) in January rose 8.9 percent year-on-year or 12.7
percent month-on-month thanks to an increase in SOC budget spending which affected
public sector performance. Both building construction and civil engineering works climbed
8.6 percent and 9.2 percent, respectively, from the previous year.
2009 2010
Oct Nov Dec Jan Feb
Business survey indices (base=100) for 110.8 90.1 83.6 74.8 91.4
construction projections
Source: The Construction and Economy Research Institute of Korea
14 March 2010
4-1 Construction investment
Source: The Bank of Korea (national accounts)
Economic Bulletin 15
5. Exports and imports
Exports in February rose 31.0 percent year-on-year to US$33.27 billion.
Exports, while staying on a positive track backed by the recovering global economy, grew at
a slower pace compared with the previous month, as the number of working days decreased
by 1.5 days with the Lunar New Year holidays falling on February instead of January.
Working-day-adjusted daily average exports rose to US$1.62 billion from the previous
month’s US$1.38 billion, helped by soaring vessel exports from US$1.9 billion to US$5 billion.
By export category, semiconductors (up 118.4%) and liquid crystal devices (up 60.3%) made
great strides, and by regional category, exports to Central and South America (up 62.2%)
and China (up 43.2%) surged.
(US$ billion)
2009 2010
Annual Q1 Q2 Q3 Q4 Jan Feb Jan Feb
Exports 363.53 74.42 90.36 94.78 103.97 21.13 25.40 31.01 33.27
(y-o-y, %) -13.9 -25.2 -21.1 -17.6 11.7 -34.5 -18.5 46.7 31.0
Average daily exports 1.30 1.10 1.30 1.32 1.49 0.98 0.91 1.38 1.62
Imports 323.09 71.42 74.00 84.84 92.85 24.90 22.60 31.47 30.94
(y-o-y, %) -25.8 -32.7 -35.6 -31.0 1.4 -31.4 -30.7 26.4 36.9
Average daily imports 1.16 1.06 1.06 1.18 1.33 1.16 1.03 1.40 1.51
Source: Korea Customs Service
The trade balance in February shifted back to the black from the previous month’s deficit of
US$460 million, posting a surplus of US$2.33 billion.
(US$ billion)
2009 2010
Annual Q1 Q2 Q3 Q4 Jan Feb Jan Feb
Trade Balance 40.45 3.00 16.39 9.94 11.12 -3.77 2.80 -0.46 2.33
Source: Korea Customs Service
16 March 2010
5-1 Exports (customs clearance basis)
Source: Korea Customs Service & Ministry of Knowledge Economy (export and import trend)
Economic Bulletin 17
6. Mining and manufacturing production
Mining and manufacturing production remained steady month-on-month in January, while
rising 36.9 percent year-on-year due to a low base effect from the same period of the
previous year.
By business category, semiconductors and parts (up 80.1%), automobiles (up 83.1%), and
primary metals (up 50.5%) posted an increase year-on-year, whereas refined petroleum
products (down 5.8%) and beverages (down 2.2%) decreased.
Shipments, led by semiconductors and parts, continued to improve, posting a 32.4 percent
increase year-on-year and 0.8 percent month-on-month, while the level of inventory fell at a
slightly slower pace year-on-year from 7.5 percent to 4.0 percent.
By business category, the shipments of semiconductors and parts (up 77.8%), and
automobiles (up 79.0%) rose year-on-year, while those of cigarettes (down 3.3%) and
refined petroleum products (down 0.7%) declined. The inventories of apparels (down
32.5%), non-metal minerals (down 20.2%), and primary metals (down 9.6%) fell.
The average operation ratio of the manufacturing sector was 78.8 percent, down 0.9
percentage points from a month earlier.
Manufacturing Average operation ratio (%) 77.5 74.6 78.8 78.4 62.8 78.2 79.7 78.8
activity Production capacity 5.1 3.1 3.2 4.0 2.6 3.9 4.5 4.5
1. Preliminary 2. Including mining, manufacturing, electricity and gas industry 3. End-period
Source: Statistics Korea
18 March 2010
6-1 Industrial production
Source: Statistics Korea (industrial activity trend)
6-3 Inventory
Source: Statistics Korea (industrial activity trend)
Economic Bulletin 19
7. Service sector activity
Service activity in January 2010 decreased 0.8 percent month-on-month due to sluggish
educational services and real estate & renting services. From a year earlier, service output
expanded 4.6 percent.
By business category, finance & insurance services (up 2.8%), business services (up 2.6%)
led the month-on-month increase in service activity.
On the other hand, educational services (down 7.9%) and real estate & rental (down 6.6%)
declined from a month earlier.
1. Preliminary
Source: Statistics Korea
Service activity in February 2010 is expected to slightly increase from a month earlier.
Amid robust expectations on wholesale & retail sales as well as advertisement &
broadcasting services affected by the lunar New Year’s holidays and Winter Olympics,
improved labor market conditions also served as a positive factor.
20 March 2010
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8. Employment
The number of workers on payroll in January 2010 increased by 5,000 from a year earlier,
while the employment rate fell by 0.7 percentage points to 56.6 percent.
Employment in construction (down 81,000), and agriculture, forestry & fishery (down
160,000) stayed on a downward track, while hiring in the manufacturing (up 29,000) and
service sector (up 213,000) increased. Manufacturing employment rose due to an increase in
both production and exports. Employment in construction continued to decline, although
decelerating the pace. Hiring in services soared as a result of the recovery of domestic
consumption and expanded expenditure. Employment in agriculture, forestry & fishery
sector tumbled with lower temperature and heavy snowfalls.
Wage workers rose by 244,000 led by an increase of 609,000 in regular workers, although
the number of daily workers plunged by 244,000. Non-wage workers including self-
employed workers (down 113,000), however, plummeted by 240,000 from a year earlier. In
the mean time, male workers (up 91,000) and workers in their fifties (up 233,000)
significantly increased.
22 March 2010
8-1 Number of employed and employment growth
Source: Statistics Korea (employment trend)
Economic Bulletin 23
The number of the unemployed in January 2010 climbed by 368,000 year-on-year to record
1,216,000, and the unemployment rate rose by 1.1 percentage points to 5.0 percent.
The number of female workers who have lost jobs (up 214,000) increased at a faster pace
than that of male workers unemployed (up 154,000) in January.
The unemployment rate was high among employers in their fifties and sixties or over as
applicants for public works allotted to seniors were categorized as economically active
population.
The economically inactive population in January 2010 was up 150,000 from a year earlier to
post 16,310,000. Meanwhile, the labor force participation rate was up 0.1 percentage point
year-on-year to 59.6 percent. Workers quit jobs due to childcare & housework (up 190,000)
and old ages (up 190,000) surged while those who stayed away from work to take a rest
(down 231,000) significantly decreased.
24 March 2010
8-4 Employment rate
Source: Statistics Korea (employment trend)
Economic Bulletin 25
9. Financial market
Worries over the Greek debt crisis persisted as European finance ministers failed to spell out
concrete measures to aid Greece and credit rating agencies, S&P and Moody’s, hinted that
they may downgrade Greece’s sovereign debt rating.
Due to the flight to safety assets, foreign investors shifted to a net-buying position on
Korean shares for the first time since February 2009.
(End-period, point, trillion won)
KOSPI KOSDAQ
Jan 2010 Feb 2010 Change 1
Jan 2010 Feb 2010 Change1
Stock price index 1,602.4 1,594.6 -7.9(-0.5%) 496.6 507.3 10.5(2.1%)
Market capitalization 848.1 844.1 -43.2(-4.4%) 84.8 84.4 -0.4(-0.5%)
Average daily trade value 6.2 4.0 -2.2(-35.5%) 3.2 2.3 -0.9(-28.1%)
Foreign stock ownership 32.5 32.1 -0.4(-1.2%) 7.6 7.5 -0.1(-1.3%)
1. Change from the end of the previous month
The exchange rate has shown higher volatility fluctuating in the 1,140 to 1,170 won range due
to external factors such as credit concerns in the eurozone and Dubai and the Fed’s discount
rate hike, rather than internal factors.
The won/yen exchange rate rose 5.8 won from 1,293.2 won to 1,299.0 won due to growing
demand for safe assets including yen affected by sovereign debt woes in Greece and other
eurozone countries.
(End-period)
2006 2007 2008 2009 2010
Dec Dec Dec Dec Jan Feb Change1
Won/Dollar 929.8 936.1 1,259.5 1,164.5 1,161.8 1,160.0 0.4
Won/100Yen 783.4 828.6 1,396.8 1,264.5 1,293.2 1,299.0 -2.7
1. Appreciation from the end of the previous year (%); the exchange rate is based on the closing price at 3:00 p.m., local time.
26 March 2010
9-1 Stock prices
Economic Bulletin 27
9.3 Bond market
Treasury bond yields were down in February 2010 due to expectations on the Bank of
Korea’s policy rate freeze after the bank’s monetary policy meeting and continuing concerns
over Greek financial troubles. Although treasury bond yields edged up in mid-February with
the Fed’s discount rate rise, they turned to a decrease as international credit rating company
warned Greece of a credit rating downgrade.
(End-period, %)
2005 2006 2007 2008 2009 2010
Dec Dec Dec Dec Dec Jan Feb Change1
Call rate (1 day) 3.76 4.60 5.02 3.02 2.01 2.00 2.01 1
CD (91 days) 4.09 4.86 5.82 3.93 2.88 2.88 2.88 0
Treasury bonds (3 yrs) 5.08 4.92 5.74 3.41 4.44 4.27 4.10 -17
Corporate bonds (3 yrs) 5.52 5.29 6.77 7.72 5.56 5.39 5.24 -15
Treasury bonds (5 yrs) 5.36 5.00 5.78 3.77 4.98 4.82 4.62 -20
1. Basis point changes in February 2010 from the previous month
In January 2010, bank deposits turned to a rise while asset management company (AMC)
deposits continued to fall.
Bank deposits shifted to an increase driven by time deposits which expanded at a record
pace fueled by deposit rate hikes. Asset management company (AMC) deposits continued to
decrease due to low yields and higher interest rates on time deposits.
28 March 2010
9-4 Interest rates
Source: The Bank of Korea
Economic Bulletin 29
10. Balance of payments
Korea’s current account recorded a US$450 million deficit in January 2010.
The goods account surplus decreased significantly to post US$1.55 billion from the previous
month’s US$4.02 billion as the trade account shifted to a deficit.
Although the travel account deficit expanded, the service account deficit was down to
US$2.16 billion from the previous month’s US$2.80 billion as the business service deficit fell.
The income account surplus declined to record US$470 million from US$700 million a month
earlier due mainly to reduced dividend income.
The current transfer account deficit edged down to US$300 million from the previous
month’s US$400 million with decreased outward remittance.
(US$ billion)
2008 2009 2010
Annual Annual Q1 Q2 Q3 Q4 Nov Dec Jan
Current account -5.78 42.67 8.62 13.10 10.40 10.56 4.28 1.52 -0.45
- Goods balance 5.67 56.13 8.31 17.58 14.70 15.54 5.84 4.02 1.55
- Service balance -16.67 -17.20 -1.93 -4.17 -5.33 -5.78 -1.66 -2.80 -2.16
- Income balance 5.90 4.55 0.92 0.29 1.69 1.65 0.39 0.70 0.47
- Current transfers -0.67 -0.81 1.31 -0.60 -0.66 -0.86 -0.29 -0.40 -0.30
Source: The Bank of Korea
The capital and financial account in January 2010 posted a net inflow of US$5.07 billion.
The direct investment account expanded the net outflow to register US$1.68 billion from the
previous month’s deficit of US$1.37 billion mainly as inbound foreign direct investment (FDI)
was down.
The portfolio investment account decreased the net inflow to record US$100 million from
US$970 million a month earlier as foreign investment in the Korean stock market declined.
The net inflow in the financial derivatives account was down to post US$320 million from
US$990 million in the previous month as payments related to overseas financial derivative
transactions increased.
The other investment account increased the surplus to US$6.40 billion from the previous
month’s US$1.01 billion as domestic financial institutions’ temporary borrowings from
overseas were up.
The current account is likely to record a surplus of around US$1 billion in February 2010 as
the trade account registered a US$2.33 billion surplus.
30 March 2010
10-1 Current account balance
Source: The Bank of Korea (balance of payments trend)
Economic Bulletin 31
11. Prices and international commodity prices
11.1 Prices
Consumer prices in February 2010 increased 2.7 percent year-on-year, decelerating from the
previous month’s 3.1 percent with price stabilization of processed foods and oil products,
although prices of agricultural, livestock and fishery products stayed on an upward track. From
a month earlier, consumer prices were up 0.4 percent.
Prices of oil products decreased 0.2 percent from a month earlier as the won’s appreciation was
reflected with time lag while international oil prices went down.
Core consumer prices, which exclude the prices of oil and agricultural products, rose by 1.9 percent
year-on-year. Consumer prices for basic necessities, a barometer of perceived consumer prices, were
up 3.4 percent compared to the same month of the previous year.
32 March 2010
11-1 Prices
Source: Statistics Korea (consumer prices, core inflation) & The Bank of Korea (producer prices)
Economic Bulletin 33
11.2. International oil and commodity prices
Average international oil prices in February 2010 decreased month-on-month as the dollar
strengthened amid fiscal woes in some European countries such as Greece.
The prices, however, turned to an increase after mid-February as energy demand for heating
was pushed up by cold weather and heavy snowfalls in the North Eastern region of the US.
In the domestic market, galsoline prices inched up month-on-month backed by the won’s
depreciation although international oil prices decreased. Meanwhile diesel prices declined
from the previous month as the prices fell at a steeper pace than gasoline in the
international market.
(Won/liter, period average)
2007 2008 2009 2010
Annual Annual Annual Aug Sep Oct Nov Dec Jan Feb
Gasoline prices 1,526 1,692 1,601 1,670 1,681 1,627 1,655 1,646 1,661 1,664
Diesel prices 1,273 1,614 1,397 1,447 1,453 1,409 1,452 1,441 1,450 1,443
Source: Korea National Oil Corporation
Monthly average prices of all non-ferrous metals in February decreased from a month earlier
with the exception of nickel whose prices increased due to long-term strikes in the Canadian
nickel mines. Non-ferrous metal prices, however, generally showed an upward trend after
mid-February as concerns over China’s monetary tightening eased.
International prices of grain including corn, wheat and soybean decreased from the previous
month as robust grain production in South America boosted the grain harvest outlook for
this year. A strong dollar also contributed to a fall in grain prices.
Reuters index*
(Period average)
2007 2008 2009 2010
Annual Annual Annual Aug Sep Oct Nov Dec Jan Feb
2,400 2,536 2,079 2,159 2,147 2,197 2,243 2,294 2,343 2,290
* A weighted average index of 17 major commodities
Source: KOREAPDS
34 March 2010
11-4 International oil prices
Source: Korea National Oil Corporation
Economic Bulletin 35
12. Real estate market
12.1 Housing market
In February 2010, nationwide apartment sales prices increased at a faster pace of 0.4
percent from 0.1 percent a month earlier.
In the Seoul metropolitan area (up 0.1%), the increase in apartment sales prices accelerated
month-on-month in Seoul (up 0.3%) including Gangnam (up 0.4%). On the other hand,
prices relatively stabilized in Gyeonggi province (up 0.0%) and Incheon (down 0.1%).
Meanwhile, apartment sales prices in areas excluding the Seoul metropolitan area
continued to increase led by some metropolitan cities such as Busan (up 1.3%) and Daejeon
(up 1.3%) without enough apartments put up for sale.
The increase in rental prices has been speeded up significantly to 0.9 percent from the
previous month’s 0.4 percent. In Seoul (up 1.0%), the acceleration was led by Gangnam (up
1.4%), Seocho (up 2.2%), Songpa (up 2.1%) and Gwangjin (up 3.1%) with rising demand in
good school districts and from newlyweds.
Apartment sales transactions in January 2010 plunged from 81,961 a month earlier to post
61,974. The transactions were up 26.3 percent from a year earlier and down 13.8 percent
compared with the monthly average recorded in the same month for the past 3 years.
36 March 2010
12-1 Real estate prices
Source: Kookmin Bank (national housing price trend)
Economic Bulletin 37
12.2 Land market
Continuing the moderate recovery pace since April 2009, nationwide land prices in January
2010 rose 0.25 percent, slightly decelerating from the previous month’s 0.34 percent. Land
prices in January were 3.0 percent lower than the pre-crisis peak reached in October 2008.
In the Seoul metropolitan area (up 0.31%), land prices in Incheon (up 0.45%) and Gyeonggi
province (up 0.35%) saw a robust increase.
Meanwhile, land price increases in areas excluding the Seoul metropolitan area slowed to
0.14 percent from 0.26 percent of the previous month.
Nationwide land transactions in January recorded 170,000 land lots, down 29.6 percent from
the previous month and up 26.9 percent from the same month of the previous year.
Nationwide land transactions decreased in terms of land lots led by Incheon (down 49.3%),
South Jeolla province (down 35.8%) and Gyeonggi province (down 33.5%).
38 March 2010
12-4 Land and consumer prices since 1970s
Source: Korea Land Corporation (land prices) & Statistics Korea (consumer prices)
Economic Bulletin 39
13. Composite indices of business cycle indicators
The coincident composite index increased 0.9 percent month-on-month in January 2010,
while the cyclical indicator of coincident composite index was up 0.5 points from the
previous month.
All components of the coincident composite index including the value of construction
completed, the domestic shipment index and the mining and manufacturing production
index increased with the exception of the number of non-farm payroll employment which
has remained flat.
The leading composite index climbed 0.3 percent from the previous month, while the 12-
month smoothed change in leading composite index slipped 0.3 percentage points month-
on-month.
The indicator of inventory cycle, the ratio of job openings to job seekers, the value of
machinery orders received and the value of capital goods imports were up.
2009 2010
Jul Aug Sep Oct Nov1
Dec 1
Jan1
Coincident composite index (m-o-m, %) 1.1 0.7 0.6 0.5 0.6 0.6 0.9
Cyclical indicator of coincident composite index 98.4 98.7 98.9 98.9 99.1 99.1 99.6
(m-o-m, p) 0.6 0.3 0.2 0.0 0.2 0.0 0.5
Leading composite index (m-o-m, %) 1.5 0.9 0.6 0.6 1.1 0.7 0.3
12 month smoothed change
7.6 8.8 9.6 10.3 11.3 11.6 11.3
in leading composite index (%)
(m-o-m, %p) 2.1 1.2 0.8 0.7 1.0 0.3 -0.3
1. Preliminary
40 March 2010
13-1 Cyclical indicator of coincident composite index
Source: Statistics Korea
94.2
92.6
Economic Bulletin 41
Policy Issues
Lee Administration’s Economic Achievement
for the Past Two Years
As the Lee Myung-bak administration started its third year at the end of February, the
government looked back on the achievement of the Lee administration in terms of efforts 1)
to weather the global economic crisis, 2) support the working class, 3) upgrade Korea’s
image in the international community, 4) restructure the economy, and 5) enhance potential
for future economic growth.
Korea is one of the three OECD economies seeing positive growth in 2009, achieving annual
growth of 0.2 percent. The financial and foreign exchange markets began to stabilize from
the second quarter of 2009, reflecting expectations of economic rebound, as anxiety over
the international financial market began to be eased: The KOSPI soared from end-2008’s
1124.5 points to 1682.8 points at the end of 2009, and during the same period the
won/dollar exchange rate continued to improve from 1259.5 won to 1164.5 won. The current
account balance recorded a surplus of US$42.7 billion in 2009, backed by brisk exports.
The IMF, OECD, and Fitch Ratings positively evaluated the role of the Korean government in
facilitating riding out the economic crisis (IMF at the annual consultation meeting in
December 2009, OECD at the 2010 annual meeting in February 2010, and Fitch Ratings in
September 2009).
The Korean government pursued expansionary fiscal policies along with tax cuts in 2008 and
2009, to supplement and stimulate demand. Some of the examples of the policies are 4.9
trillion won of supplementary budget to control rising oil prices, 11.4 trillion won of
additional budget at the end of 2008 to cope with the economic crisis, and the record high
level of supplementary budget for job creation of 28.4 trillion won. The increased budget
was complemented with early budget expenditure, with 62.9 percent of the 2009 budget,
171.5 trillion won spent in the first half of 2009. Both income tax cuts to boost domestic
demand and corporate tax cuts to promote investment were implemented in line with
consumption tax reduction and investment tax deduction.
42 March 2010
The Korean government responded swiftly in the financial market: The Bank of Korea
slashed the base rate from 5.25 to 2.0 percent, while supplying liquidity of 27.9 trillion won
through RP purchases, open market operation, bank recapitalization fund, total loan
increase, bond market stabilization fund, and increased interest-on-reserves. The
government also carried out measures exclusive for SMEs to provide them liquidity and
credit, which resulted in reduced default rates of corporate bonds and corporations.
The current account balance greatly improved from a US$5.78 billion deficit in 2008 to a
surplus of US$42.67 billion in 2009, backed by relatively strong exports compared to other
nations amid the global economic downturn. Korea was ranked the 9 th largest exporter in
2009, climbing from the 12th in 2008. The government increased support for export insurance
from 130 trillion won to 170 trillion won and credit guarantee for exporters from 1.5 trillion
won to 6 trillion won between 2008 and 2009 in addition to expanded budgets for R&D and
overseas marketing. The government’s efforts to help enhance Korean companies’
competitiveness will continue through its firm support for parts and service industries, and
green growth engines.
To help boost falling employment levels in face of the crisis, the government launched the
job sharing program. Government’s job creation programs include ‘Hope Employment
Program’ which provided 250,000 jobs to the vulnerable group, youth internship program
through which 99,000 college graduates were employed, and social welfare service program
for which the government financed 1.1 trillion won in 2008 and 16.4 trillion won in 2009 to
support employment of social welfare workers. In 2010 ‘the National Strategic Meeting on
Employment’, a monthly meeting presided by the president, was launched, in which mid-and
long term as well as short term measures to raise employment are discussed, laid out, and
implemented.
The government took various measures to stabilize prices directly affecting the lives of low
income class. The price stabilizing measures include oil tax reduction of 10 percent,
redemption of 3.5 trillion won for oil purchased in 2008, lowering tariff quotas and
stabilizing public utility charges, and monitoring prices of 52 necessities: lower tariff quotas
applied to 123 import items in 2009 and public utility charges up 2.4 percent in 2008 and 1.9
percent in 2009. The government will monitor and balance supply of and demand for
agriculture, livestock and fishery products to stabilize their prices, while it strictly bans price-
fixing of manufactured goods.
Economic Bulletin 43
The ratio of welfare budget to total budget was steadily increased from 2007’s 25.8 percent
to 26.2 percent in 2008 to 26.6 in 2010. To help the low income class with burden of
education and housing costs, the government adopted income contingent loans and low
interest rate student tuition loans, and planned to provide 1.5 million housing units
affordable to the low income group between 2009 and 2018. The government began
supporting those who have will to be self-reliant but with poor credit through micro-loan
programs which do not require any security for loans. The micro-loan programs will be
expanded to 2 trillion won for the next 10 years. Low income working families of 590,000
received earned income tax credit of 453.7 billion won in 2009 for the first time, which was
designed to encourage them to work.
In 2009 as one of the G20 Troika, Korea played an active role in working together in the
international community to ride out the crisis through the Washington, London and Pittsburg
summits, where Korea proposed a standstill on protectionism, sharing Korea’s experience of
dealing with toxic assets, and international cooperation in laying out exit strategies. Korea,
as the first emerging country to host a G20 summit, will try hard to effectively play a bridging
role between developed and developing countries, enhance cooperation among
international organizations, and actively collaborate with domestic and overseas think tanks
to reflect their expertise to the G20 Seoul summit in 2010.
Korea made one step forward to become a more reliable donor country by doubling the size
of Official Development Aid (ODA) from US$450 million in 2006 to US$900 million in 2009,
and expanding Knowledge Sharing Program (KSP), through which Korea shares its economic
development experience with other developing countries, from eight countries in 2008 to 11
countries in 2009 with increasing financial support from 2.5 billion won to 5 billion won.
Korea joined the OECD’s Development Assistance Committee (DAC) in November 2009, and
the legal basis for ODA has been established in January 2010.
On the trade front, five FTAs (FTAs with Chile, the EFTA, Singapore, the ASEAN, and India) are
in force, two (FTAs with the US and the EU) signed, seven (FTAs with Canada, the GCC,
Mexico, Peru, Australia, New Zealand, Columbia) under negotiation, and eight under study.
To raise Korea’s birth rate, the government announced measures covering five key areas of
easing bringing-up burden, supporting households with more than two children, creating
family-friendly working environment, supporting single parent and adopting parents, and
pursuing more open immigration policies. Action plans for 2011 through 2015 will follow, and
be reflected in budgeting.
44 March 2010
Restructuring the economy
The government founded a financial basis for corporate restructuring by launching the Bank
Recapitalization Fund of 20 trillion won and Corporate Restructuring Fund of 40 trillion won.
To promote corporate restructuring, the government introduced corporate tax reduction in
April 2009, which applies to a company or its major shareholders selling assets to repay
corporate debt. The revised capital market law was passed in the plenary session of the
National Assembly in February 2010, which allows Private Equity Fund to invest in
corporation under restructuring.
Household debt, in particular mortgage loans, has been on the rise. However, the debt is
relatively sound thanks to the government’s early response to increasing mortgage loans by
tightening the loan to value (LTV) ratio and debt to income (DTI) ratio.
Government’s efforts to scrap unnecessary business regulations were paid off as the World
Bank’s report “Doing Business 2010” ranked Korea 19th out of 183 countries in the business
friendliness scale, up 4 notches from the previous year. Korea lifted limitations on giant
corporations’ investment in other companies, by allowed non-financial companies to hold
bank shares up to nine percent, eased regulations on metropolitan area development and
military facilities protection zone development, and took market friendly measures in the
service sector.
The government designated 17 future growth engines in three areas: 1) green technologies
to generate and effectively use energy, 2) high-tech convergence industries such as IT and
communications, new materials and nano-technology, and medical devices and bio-
technology, and 3) value added services such as health care, education, content & software,
and tourism. The government increased support for those industries not only through R&D
budgets, tax incentives and deregulation but also by certifying new technologies to
encourage private investment in the promising technologies.
Economic Bulletin 45
Economic
News Briefing
Korea hosts the G-20 Deputy Finance Ministers’ and Deputy Governors’
meeting
The G-20 Deputy Finance Ministers’ and Deputy Central Bank Governors’ Meeting was held
at the Songdo, Incheon from February 27 to 28, marking the first G-20 meeting that Korea
chaired.
Some 150 participants included delegations from G-20 member nations and international
organizations such as the IMF, the World Bank and the OECD. The co-chairs were Shin Jae-
Yoon, the Deputy Minister for International Affairs of the Ministry of Strategy and Finance,
and Rhee Gwang-Ju, Deputy Governor of the Bank of Korea.
The focus of the meeting was to analyze the current situation of the global economy and
continue the follow-up of past G-20 agendas. On February 27, participants focused
discussions on framework for strong, sustainable and balanced growth, global financial
safety nets, and international financial institutions’ reform. On February 28, discussions
were centered on improving financial regulations, addressing problems of energy subsidies
and financial inclusion, and financing for the fight against climate change.
46 March 2010
About 100 of the global business leaders will gather in Seoul to attend the “Seoul G-20
Business Summit” from November 10 to 11, 2010. The summit will cover four topics on the
agenda: trade and investment, finance, green growth, and corporate social responsibility. It
will be the first time for the world’s top business leaders to get together on the sidelines of a
G-20 Summit, seeking economic cooperation between public and private sectors.
Amendments to the Financial Investment Services and Capital Markets Act (FSCMA) were
passed at a general meeting of the National Assembly on February 18, 2010. The revisions
were made based on six proposals submitted by legislators to address various issues raised
since FSCMA came into effect in February 2009.
The amendments are expected to take effect in June 2010, three months after a public
announcement. In regard with commercial papers (CPs), however, the new rule will be
enforced immediately after public hearings.
C. Strengthening requirements for financial investment companies to add Improving the quality of financial services
new business activities, while easing requirements for major shareholders through the extended scope of financial
D. Extending qualification requirements for financial investment companies’ investment businesses, as well as enhancing
E. Imposing mandatory ceilings on fund sales/service fees Providing better protections for financial
F. Conducting prior reviews for OTC derivatives trades investors and consumers
With the intent to utilize the capital markets and gather private funds to revitalize corporate
restructuring, a special exemption law will be enacted and enforced for three years on asset
management of funds specially purposed for enhancing corporate financial structure. Under
the revised law, private equity funds (PEFs) for corporate financial restructuring are able to
invest in a company without management participation, but are to invest more than 50
percent of their assets into corporate restructuring related assets. In regard to Mutual Funds
for corporate financial restructuring, the 10 percent rule, which limits investments in a single
company to a maximum of 10 percent of the funds’ assets, is alleviated to supply sufficient
liquidity to the SMEs. The funds are enabled to invest a maximum of 50 percent of its assets
in newly issued stocks of SMEs and mid-size corporations.
Economic Bulletin 47
The amended law will remove the potential hurdle for the issuance and trade of CPs. Before
revision, listed companies that are subject to external audits are required to issue electronic
notes when issuing promissory notes. The previous requirement of issuing electronic notes,
however, is waved for CPs.
Under the revised law, requirements for financial companies to expand into new business
activities are strengthened, while qualifications for major shareholders are eased. Also,
required qualifications for executives of financial companies are extended to cover non-
registered directors.
The new law stipulates that fund sales fees should not exceed 3 percent of paid-in capital
and service fees should not surpass 1.5 percent of the fund’s asset in order to curb excessive
fees taken by fund management companies and to protect investors. In addition, prior
reviews for over-the-counter (OTC) derivatives are introduced as an ex-ante regulations to
assess risks involved in OTC derivatives. A review committee will be created within the Korea
Financial Investment Association (KOFIA) to conduct a prior review of OTC derivatives newly
introduced by each financial company.
As of the end of 2009, the outstanding amount of Korea’s investment abroad stood at
US$604.7 billion, a rise of US$109.3 billion from the end of 2008. The outstanding amount of
Korea’s external assets in debt instruments amounted to US$417.1 billion, up US$69.3
billion year-on-year.
Meanwhile, the outstanding amount of foreign investment into Korea recorded US$752.8
billion at the end of 2009, expanding US$144.3 billion from the end of 2008. Korea’s external
debt stood at US$401.9 billion, an increase of US$24.0 billion from a year earlier.
The net international investment position (NIIP) as of the end of 2009 posted minus
US$148.0 billion, down US$35.0 billion from the end of 2008. Net external assets in the form
of debt instruments stood at US$15.2 billion, up US$45.3 billion year-on-year.
48 March 2010
International investment position
(US$ billion, end-period)
Sep changes
2007 2008 20092 during trade non-trade
20091 year factors factors
A. Assets (Korea’s investment abroad) 596.8 495.4 577.6 604.7 109.3 78.0 31.4
1. Direct investment 74.8 97.9 107.8 115.6 17.7 10.6 7.1
1.1. Equity capital & reinvested earnings 68.1 88.4 96.6 103.5 15.1 8.1 7.0
1.2. Other capital 6.7 9.5 11.2 12.1 2.6 2.4 0.1
2. Portfolio investment 158.6 75.1 98.2 102.4 27.3 -1.3 28.6
2.1. Equity securities 104.9 47.9 72.1 76.9 29.0 2.7 26.4
2.2. Debt securities 53.8 27.2 26.0 25.5 -1.8 -3.9 2.2
3. Financial derivatives 2.3 10.4 7.6 6.2 -4.1 - -4.1
4. Other investment 98.9 110.8 109.8 110.5 -0.3 -0.4 0.1
4.1. Trade credits 15.2 14.2 16.2 15.5 1.4 0.9 0.5
4.2. Loans 35.9 45.3 44.0 45.2 -0.2 -0.6 0.4
4.3. Currency & deposits 11.2 17.7 18.7 16.8 -0.9 0.3 -1.2
4.4. Others 36.7 33.7 30.9 33.1 -0.6 -1.0 0.4
5. Reserve assets 262.2 201.2 254.3 270.0 68.8 69.1 -0.3
<External assets in debt instruments> 420.6 347.9 400.4 417.1 69.3 67.2 2.1
Short-term 333.1 280.2 329.2 345.0 64.8 - -
Long-term 87.5 67.7 71.1 72.2 4.5 - -
B. Liabilities (Foreign investment in Korea) 826.3 608.5 735.3 752.8 144.3 39.7 104.6
1. Direct investment 122.0 94.7 107.4 110.8 16.1 1.5 14.6
1.1. Equity capital & reinvested earnings 118.2 90.2 102.2 105.2 15.0 0.8 14.2
1.2. Other capital 3.8 4.5 5.1 5.6 1.1 0.7 0.4
2. Portfolio investment 456.7 251.0 373.4 390.0 139.1 49.4 89.7
2.1. Equity securities 320.1 124.6 224.2 236.0 111.3 25.7 85.7
2.2. Debt securities 136.6 126.3 149.3 154.1 27.7 23.7 4.0
3. Financial derivatives 4.9 15.8 11.5 9.7 -6.0 - -6.0
4. Other investment 242.8 247.1 243.0 242.2 -4.9 -11.2 6.3
4.1. Trade credits 58.0 70.0 65.4 63.4 -6.6 -12.1 5.5
4.2. Loans 162.9 142.7 143.8 150.5 7.8 9.0 -1.2
4.3. Currency & deposits 15.9 26.9 22.4 17.4 -9.5 -11.8 2.3
4.4. Others 6.0 7.5 11.4 11.0 3.5 3.7 -0.2
<External debt> 383.2 377.9 397.4 401.9 24.0 13.2 10.7
Short-term 160.3 149.9 147.5 150.0 0.1 - -
Long-term 222.9 228.1 249.9 252.0 23.9 - -
C. Net IIP (C=A-B) -229.5 -113.1 -157.7 -148.0 -35.0 38.3 -73.2
<Net external assets in debt instruments> 37.4 -30.1 3.0 15.2 45.3 53.9 -8.7
1. Revised
2. Preliminary
Economic Bulletin 49
Domestic banks’ foreign currency liquidity conditions remain favorable
Domestic banks’ short-term borrowing conditions have largely remained intact from the
recent concerns over credit risk in Southern Europe. From January 1 to February 10 this year,
the spread over Libor for 2 to 364 day borrowings averaged 25.3 basis points with an
average maturity of 79.5 days, staying on a favorable track since the second half of last year.
The market conditions for long-term borrowings have also continued to improve since 2009
although the CDS premium for Korean paper has recently risen due to credit default risk
concerns in Southern Europe. The Libor spread for 1 year paper stayed benign albeit
widening from 67 basis points in January to 86 basis points during the first ten days of
February. The spread for 5-year paper narrowed recently to as low as 155 basis points
recovering to the levels before the collapse of Lehman Brothers.
As of February 10, 2010, domestic banks exceeded, on a preliminary basis, the recommended
levels to secure foreign exchange soundness measured by the 3-month foreign-currency
liquidity ratio as well as for the 7-day and 1-month maturity mismatch ratios.
The Korean government plans to inject one trillion won (US$870 million) to nurture the
nation’s software industry by 2012 as a way to keep abreast of a new competition structure
in the world’s software market. On February 4, the government announced four core
strategies and 12 major policy tasks dedicated to software development for the first time.
The government will foster fair trade practices in the software industry and strengthen the
nation’s embedded software industry development. A government-run vocational training
program will be set up to nurture software programming experts, with the cooperation of
enterprises. The trainees will be given chances to work for related companies upon finishing
their course. Further, a recruitment system will be launched to link 70,000 nationally
reported software engineers and relevant companies.
The government will also increase investment into software R&D to 670 billion won by 2013
from the current 370 billion won, and boost software development cooperation with India,
the world’s second largest software exporter, supported by the Comprehensive Economic
Partnership Agreement (CEPA) between the two countries.
The government expects that the country’s software exports will increase to US$15 billion
and 160,000 new jobs will be created by 2013, helped by the growth plan for the industry.
50 March 2010
Flexible working hour system to be spread
The Korean government has set up the plan to spread flexible work scheme in the second
national employment strategy meeting on February 18, 2010 so that more people can benefit
from more job opportunities. One key way to boost Korea’s low employment rate is to
promote the adoption of flexible working hours which will encourage women and the elderly
to remain active in the labor market.
Pilot programs for the flextime system will be launched in government offices and public
corporations. After a trial period, the government will encourage the private sector to adopt
the tested programs. Also the government will solidify institutional and political bases to
facilitate flexible work system and make efforts to form an agreeable social environment for
the flextime system. Relevant laws will be revised so that employers who offer flexible hours
do not suffer disadvantages. In addition, the government will work to protect the welfare of
employees who take alternative working arrangements. The exemption clause of national
health and annuity insurances will be adjusted to meet the given standard (working less
than 60 hours) of employment insurance.
The Korea Electric Power Cooperation (KEPCO) and Turkish state power company Electrik
Uretim Anonim Sirketi (EUAS) have reached an agreement of nuclear energy deal
cooperation on March 10, 2010, said the Ministry of Knowledge Economy. According to the
agreement, the two countries will carry out preliminary work to build a Korean-style nuclear
power plant in Sinop, northern part of Turkey. The deal is meaningful in that Korea has
secured a foothold to export nuclear power plants, APR1400, to Turkey. The Vice Minister
Kim Young-hak of the Ministry of Knowledge Economy has met Turkey’s Energy and Natural
Resources Minister Taner Yildiz and the Prime Minister Recep Tayyip Erdogan to discuss
ways to form a cooperative tie-up with the signing of the joint declaration.
Economic Bulletin 51
Statistical
Appendices
Tables & Figures
1. National accounts
2. Production, shipment and inventory
3. Production capacity and operation ratio
4. Consumer goods sales index
5. Consumer goods shipment index and consumer sentiment index
6. Machinery orders received, domestic machinery shipment,
and estimated facility investment index
7. Value of construction 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
Economic Bulletin 53
1. National accounts
(year-on-year change, %, chained 2005 year prices)
P: Preliminary
Source: The Bank of Korea
54 March 2010
Growth rate by economic activity
Economic Bulletin 55
2. Production, shipment and inventory See graphs 6-1, 6-3, 7-1, 7-2 & 7-3
(constant prices, 2005 = 100)
Service
Production Shipment Inventory
Period Y-o-Y Y-o-Y Y-o-Y production Y-o-Y
index index index
change (%) change (%) change (%) index change (%)
56 March 2010
3. Production capacity and operation ratio See graph 6-2
Economic Bulletin 57
4. Consumer goods sales index See graphs 2-2, 2-3, 2-4 & 2-5
(constant prices, 2005 = 100)
Consumer
goods
Period Durable Semi-durable Non-durable
sales
Y-o-Y goods Y-o-Y goods Y-o-Y goods Y-o-Y
index
change (%) change (%) change (%) change (%)
58 March 2010
5. Consumer goods shipment index and consumer sentiment index
See graph 2-6
Domestic consumer
goods shipment index Consumer
Period (2005=100) Durable Non-durable sentiment index
Y-o-Y goods Y-o-Y goods Y-o-Y
change (%) change (%) change (%)
Economic Bulletin 59
6. Machinery orders received, domestic machinery shipment
and estimated facility investment index See graph 3-2
Domestic machinery orders received Domestic
Estimated
excluding ship (billion won, constant prices) machinery
facility investment
Period shipment
index
excluding ship
Total Public Private (2005=100)
Manufacturing (2005=100)
60 March 2010
7. Value of construction completed and domestic construction
orders received See graphs 4-2 & 4-3
(current prices, billion won)
Economic Bulletin 61
8. Composite indices of business cycle indicators and BSI
See graphs 13-1, 13-2 & 13-3
Cycle of
Leading Coincident
coincident
Period index Y-o-Y index BSI (results) BSI (prospects)
index
(2005=100) change (%) (2005=100)
(2005=100)
62 March 2010
9. Balance of payments (I) See graphs 5-1, 5-2, 5-3, 10-1 & 10-2
(million US$)
P: Preliminary
Source: The Bank of Korea & Korea Customs Service
Economic Bulletin 63
10. Balance of payments (II) See graph 10-3
(million US$)
64 March 2010
11. Prices See graphs 11-1, 11-2 & 11-3
(2005 = 100)
Producer prices
Consumer prices Export & import prices
(2005=100)
Period
All Items Commodity Service Core All items Commodity Export Import
Economic Bulletin 65
12. Employment See graphs 8-1, 8-2 & 8-3
2008 1 23,738 22,964 4,022 17,651 3.3 16,032 8,815 5,115 2,102
2 23,703 22,884 4,017 17,510 3.5 15,836 8,804 5,055 1,977
3 24,114 23,305 3,999 17,732 3.4 15,993 8,898 5,023 2,073
4 24,495 23,711 4,001 17,929 3.2 16,258 8,894 5,127 2,238
5 24,692 23,939 3,987 18,046 3.0 16,405 9,010 5,165 2,231
6 24,727 23,963 3,993 18,067 3.1 16,385 9,039 5,132 2,214
7 24,673 23,903 3,975 18,088 3.1 16,363 9,054 5,163 2,146
8 24,380 23,617 3,899 17,872 3.1 16,104 9,107 4,970 2,027
9 24,456 23,734 3,928 17,951 3.0 16,221 9,142 5,015 2,064
10 24,582 23,847 3,945 18,005 3.0 16,314 9,138 5,034 2,142
11 24,566 23,816 3,897 18,086 3.1 16,377 9,111 5,071 2,195
12 24,032 23,245 3,888 17,935 3.3 16,189 9,068 5,082 2,040
2009 1 23,709 22,861 3,895 17,663 3.6 16,053 9,102 4,982 1,969
2 23,667 22,742 3,842 17,539 3.9 15,953 9,194 4,862 1,897
3 24,062 23,110 3,813 17,701 4.0 16,076 9,174 4,941 1,961
4 24,456 23,524 3,846 17,899 3.8 16,353 9,227 5,051 2,076
5 24,658 23,720 3,846 18,016 3.8 16,484 9,316 5,076 2,092
6 24,927 23,967 3,836 18,251 3.9 16,736 9,340 5,281 2,115
7 24,756 23,828 3,802 18,210 3.7 16,589 9,383 5,255 1,952
8 24,525 23,620 3,761 18,048 3.7 16,479 9,472 5,117 1,890
9 24,630 23,805 3,810 18,155 3.4 16,687 9,606 5,151 1,931
10 24,655 23,856 3,858 18,130 3.2 16,690 9,628 5,170 1,892
11 24,625 23,806 3,855 18,267 3.3 16,790 9,603 5,256 1,931
12 24,063 23,229 3,872 18,104 3.5 16,555 9,632 5,074 4,860
2010 1 24,082 22,865 3,924 17,796 5.0 16,297 9,712 4,860 1,725
2 24,035 22,867 3,886 17,762 4.9 16,282 9,786 4,838 1,657
Y-o-Y change (%)
2008 0.5 0.6 -1.3 1.3 - 1.5 4.5 -1.8 -2.6
2009 0.2 -0.3 -3.2 0.5 - 1.5 4.3 0.4 -7.4
66 March 2010
13. Financial indicators See graphs 9-1 & 9-4
(period average)
Economic Bulletin 67
14. Monetary indicators See graph 9-5
(period average) (billion won)
68 March 2010
15. Exchange rates See graphs 9-2 & 9-3
Economic Bulletin 69
Editor-in-Chief
Park, Cheol-Kyu (MOSF)
Editorial Board
Kim, Young-Min (MOSF)
Shim, Jae-Hak (KDI)
Lee, In-Sook (KDI)
Coordinators
Kim, Dae-Hyun (MOSF)
Cho, Hyun-Joo (KDI)
Editors
Lim, Keun-Hyuk (MOSF)
Kim, Sun-Young (MOSF)
Kang, Ji-Eun (KDI)
Ministry of Labor
http://english.molab.go.kr/english
Statistics Korea
http://kostat.go.kr