Professional Documents
Culture Documents
12
Republic of Korea
Economic Bulletin
Policy Issues
2011 Economic policies 42
Statistical Appendices 53
The Green Book
Current Economic Trends
Overview
The Korean economy continued a recovery track, although some economic indicators posted
a decrease amid the economy returning to normal from the speedy pick-up after the crisis.
Mining and manufacturing production in October, while gaining 13.5 percent year-on-year,
lost 4.2 percent month-on-month affected by production adjustments made to
semiconductors and automobiles. Service output rose 0.5 percent month-on-month and 3.0
percent year-on-year backed by improving employment and income.
Consumer goods sales, despite sluggish durable goods sales, increased 0.2 percent month-
on-month and 4.2 percent year-on-year in October as winter clothing sales jumped.
Exports in November, led by brisk semiconductor and automobile exports, rose 24.6 percent
year-on-year, while imports jumped 31.2 percent affected by increasing raw material prices.
The total number of workers hired in October gained 316,000 year-on-year, with the private
sector mainly contributing to the increase. The employment rate (seasonally adjusted)
posted 59.4 percent, adding 0.1 percentage point year-on-year. The unemployment rate
(seasonally adjusted) rose 0.1 percentage point year-on-year, registering 3.3 percent, as
those from economically inactive population applied for census jobs but were not selected
were counted as unemployed persons.
The consumer price in November posted a greatly decelerated growth from 4.1 percent in the
previous month to 3.3 percent, thanks to falling agricultural product prices, while core
consumer prices stayed stable, increasing 1.8 percent year-on-year.
In November stock prices rose as the G20 Seoul Summit positively affected investment
sentiment. However, worries over the possible European fiscal crisis and Korea’s geopolitical
risks raised foreign exchange rates afterwards.
Housing prices began to rebound in the Seoul metropolitan area toward the end of
November, while rental prices continued to rise due to seasonal demands and wait-and-see
attitudes held by potential home buyers.
To sum up, although the global economy has made a steady recovery, downside risks still
exist as to uncertainties over a possible European fiscal crisis and the danger from North
Korea.
The Korean government will go on with macroeconomic policies which facilitate sustainable
growth, while renewing efforts to restructure the economy so that the economy can deal
with any external changes. On the other hand, the government will continue to support the
working class by stabilizing basic necessities prices, boosting domestic demand and
creating jobs, as well as enhancing support for vulnerable groups.
Economic Bulletin 3
1. Global economy
The global economy showed steady recovery as major economies continued an upward
track, and China and other emerging countries posted a fast recovery. However, downside
risks exist as the possibility of a European fiscal crisis led by Ireland resurfaced and worries
over capital market volatility in emerging economies grew. The OECD maintained its
economic growth outlook for 2010 at 4.6 percent, but revised down the 2011 prediction from
4.5 percent made in May to 4.2 percent on November 18.
US
Although US real GDP in the third quarter revised up to 2.5 percent (preliminary, annualized
q-o-q) from the advanced estimate, the housing and job markets still struggle.
Industrial production in October stayed flat month-on-month, while retail sales accelerated
growth, up 1.2 percent.
In October, both new and existing home sales shifted to a decrease month-on-month by 8.1
percent and 2.2 percent, respectively.
Employment in October remained sluggish with slowing down new non-farm payroll
employment and the rising unemployment rate which landed at 9.8 percent.
The Federal Reserve at the FOMC meeting in November decided to purchase US$600 billion
long-term treasury securities by the end of the 2nd quarter of 2011, and Fed Chairman Ben
Bernanke mentioned a possible increase in the securities purchase on December 5. The Fed’s
Beige Book reported that 10 out of 12 Federal Reserve Districts showed economic improvement.
4 December 2010
1-1 US GDP (q-o-q, annualized rate)
Source: US Department of Commerce
Economic Bulletin 5
China China’s economy, while domestic demand steadily improving, slightly slowed down due to
decelerating exports affected by difficult external situations and tightening measures. The
Chinese government raised the banks’ reserve requirement ratio twice on November 10 and 19
by 100 basis points to curb inflation as consumer prices had surpassed the 3.0 percent target
for four straight months and liquidity expanded at a faster pace.
Housing price (%, y-o-y)
12.4 (May 2010) 11.4 (Jun) 10.3 (Jul) 9.3 (Aug) 9.1 (Sep) 8.6 (Oct)
M2 growth (%, y-o-y)
21.0 (May 2010) 18.5 (Jun) 17.6 (Jul) 19.2 (Aug) 19.0 (Sep) 19.3 (Oct)
(Percentage change from same period in previous year)
2009 20101
Annual Q1 Q2 Q3 Q4 Q1 Q2 Q3 Sep Oct
Real GDP 9.1 6.2 7.9 9.1 10.7 11.9 10.3 9.6 - -
Industrial production 11.0 5.1 9.1 12.4 18.0 19.6 17.6 13.5 13.3 13.1
Fixed asset investment (accumulated) 30.5 28.6 33.6 33.3 30.5 26.4 25.5 24.5 24.5 24.4
Retail sales 15.5 14.9 15.0 15.4 16.9 17.9 18.5 18.4 18.8 18.6
Exports -16.0 -19.7 -23.4 -20.3 0.2 28.7 40.9 32.5 25.1 22.9
Consumer prices -0.7 -0.6 -1.5 -1.3 0.7 2.2 2.9 3.5 3.6 4.4
Producer prices -5.4 -4.6 -7.2 -7.7 -2.1 5.2 6.8 4.5 4.3 5.0
1. Preliminary
Source: China National Bureau of Statistics
Japan Japan’s economy grew 0.9 percent (advanced, quarter-on-quarter) in the third quarter of
2010, backed by government’s subsidies for eco-friendly car purchase. Although consumer
prices rose for the first time in 22 months, industrial production decreased at a faster pace
and retail sales dropped in 10 months, showing continuing deflation. Japan’s Cabinet Office
revised down its assessment of the current economic situation for 9 local economies out of
11 on December 1.
(Percentage change from previous period)
2009 20101
Annual Q1 Q2 Q3 Q4 Q1 Q2 Q3 Sep Oct
Real GDP -5.2 -4.4 2.3 -0.1 0.9 1.2 0.4 0.9 - -
Industrial and mining production -21.8 -20.1 6.6 5.3 5.9 7.0 1.5 -1.8 -1.6 -1.8
Retail sales (y-o-y, %) -2.2 -3.9 -0.9 -3.4 -0.7 3.8 3.7 3.2 1.4 -0.2
Exports (y-o-y, %) -33.1 -46.9 -38.6 -35.5 -8.7 44.8 35.2 19.0 15.9 -
Consumer prices (y-o-y, %) -1.4 -0.1 -1.0 -2.2 -2.0 -1.2 -0.9 -0.8 -0.6 0.2
1. Preliminary
Source: Japan’s Statistics Bureau and Statistics Centre
Eurozone The eurozone economy slowed down and grew 0.4 percent (advanced, quarter-on-quarter)
in the third quarter of 2010, while worries over a possible European fiscal crisis resurfaced.
Despite the agreement on the massive bailout for Ireland, there were continuing concerns
that the Ireland’s fiscal woes might spread to Spain and Portugal. The EU and the IMF agreed
on the US$85 billion bailout plan for Ireland on November 28.
(Percentage change from previous period)
2009 20101
Annual Q1 Q2 Q3 Q4 Q1 Q2 Q3 Sep Oct
Real GDP -4.0 -2.5 -0.1 0.4 0.2 0.4 1.0 0.4 - -
Industrial production -14.8 -9.2 -1.7 2.7 1.3 2.3 2.3 0.9 -0.7 -
Retail sales -2.3 -1.0 -0.1 -0.2 0.1 0.5 0.1 0.5 -0.1 0.5
Exports (y-o-y, %) -18.2 -21.1 -22.7 -18.7 -9.3 12.9 22.3 22.6 22.2 -
Consumer prices (y-o-y, %) 0.3 1.0 0.2 -0.4 0.4 1.1 1.5 1.7 1.8 1.9
1. Preliminary
Source: Eurostat
6 December 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 (preliminary GDP) increased 1.3 percent quarter-on-quarter and 3.3
percent year-on-year in the third quarter of 2010.
Consumer goods sales in October shifted to a month-on-month increase for the first time in
three months, recording a highest rise since January 2009, as semi-durable goods sales jumped.
On a month-on-month basis, consumer goods sales went up 0.2 percent backed by strong
semi-durable goods sales such as clothing sales (up 5.7 percent), although durable goods
sales such as automobiles sales (down 2.2 percent) and non-durable goods sales such as
grocery sales (down 0.7 percent) fell.
On a year-on-year basis, the index, despite a fall in durable goods sales, increased 4.2
percent thanks to improving sales of durable goods such as computer and communications
equipment and semi-durable goods such as clothing and hobby related products.
Sales at large discounters declined for the first time since January 2010, while those at
department stores and specialized retailers accelerated an increase.
8 December 2010
2-1 Private consumption
Source: The Bank of Korea (national accounts)
Economic Bulletin 9
Consumer goods sales is projected to continue an upward trend as consumer sentiment is
expected to improve in line with increasing employment and household income, and
considering positive advanced estimates. Nominal income rose at a faster rate while
employment continued to recover.
Consumer sentiment went up, which shows growing confidence in improving economy and
increasing consumption.
Both domestic credit card spending and department store sales continued a steady increase
year-on-year, with the former rising 16.0 percent and the latter 8.1 percent.
Sales at large discounters and gasoline sales, which showed little change in the previous
month, turned to an increase year-on-year, up 1.9 percent and 12.5 percent, respectively.
Consumer goods imports rose at a faster pace year-on-year by 31.8 percent, led by non-
durable consumer goods which soared 46.1 percent.
There is a possibility that consumer spending will grow at a limited pace given possible price
increases in raw materials including oil and agricultural products.
10 December 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 (preliminary GDP) in the third quarter of 2010 posted a quarter-on-quarter
increase of 5.5 percent and a year-on-year gain of 24.3 percent.
Facility investment in October rose 10.2 percent year-on-year but fell 9.5 percent month-on-
month, as machinery investment, in particular that in semiconductor equipment, slowed
down, and transportation equipment investment, in particular that in other transportation
equipment, declined.
Although facility investment decelerated an increase due to a high base effect, the positive
trend is projected to continue given that machinery imports and other leading indicators
show upward movements.
2010
Jun Jul Aug Sep Oct Nov
Business survey indices (base=100) for
107 106 106 106 105 102
manufacturing facility investment projections
Source: The Bank of Korea
12 December 2010
3-1 Facility investment by type
Source: The Bank of Korea (national accounts)
Economic Bulletin 13
4. Construction investment
Construction investment (preliminary GDP) in the third quarter of 2010 rose 1.3 percent
quarter-on-quarter, while decreasing 2.3 percent year-on-year.
(Percentage change from same period in previous year)
2008 2009 20101
Annual Annual Q1 Q2 Q3 Q4 Q1 Q2 Q3
Construction investment 2
-2.8 4.4 2.8 5.1 4.4 5.0 2.3 -2.9 -2.3
(Seasonally adjusted)3 - - 5.9 1.8 -0.7 -0.1 1.3 -3.6 1.3
- Building construction -4.6 -1.8 -9.6 -2.4 1.2 2.5 1.7 -6.3 -9.7
- Civil engineering works -0.2 13.3 26.1 15.7 9.7 7.5 3.1 1.1 8.5
1. Preliminary
2. National accounts
3. Percentage change from previous period
Source: The Bank of Korea
Construction completed (constant value) in October fell 10.4 percent month-on-month and
9.5 percent year-on-year, as both building construction and civil engineering works
decreased, due to weak construction sentiment and slow SOC budget spending.
Construction completed and the leading indicator of construction orders stayed in negative
territory, leading to weak construction sentiment. However there have been some signs of
recovery in construction and housing markets recently, which requires a close watch on how
they develop.
2010
Sep Oct Nov Dec
Business survey indices (base=100)
71.5 67.8 75.6 81.3
for construction projections
Source: The Construction and Economy Research Institute of Korea
14 December 2010
4-1 Construction investment
Source: The Bank of Korea (national accounts)
Economic Bulletin 15
5. Exports and imports
Exports in November increased 24.6 percent (preliminary) year-on-year to US$42.36 billion.
Although the November exports, due to a drop in vessel exports, slowed down from the
previous month when exports hit an all-time high, the index continued an upward trajectory.
By regional category, exports to China and other emerging countries, and to the US, Japan
and other developed countries both soared, whereas exports to EU fell as worries over the
European fiscal crisis resurfaced.
(US$ billion)
2008 2009 2010
Annual Annual Q1 Q2 Q3 Q4 Q1 Q2 Q3 Oct Nov1
Exports 422.01 363.53 74.42 90.36 94.78 103.97 101.36 120.31 117.27 43.36 42.36
(y-o-y, %) 13.6 -13.9 -25.2 -21.1 -17.6 11.7 36.2 33.1 23.7 27.6 24.6
Average daily exports 1.53 1.30 1.10 1.30 1.32 1.49 1.51 1.76 1.69 1.84 1.77
Imports 435.27 323.09 71.42 73.97 84.85 92.85 98.08 105.86 105.66 36.88 38.75
(y-o-y, %) 22.0 -25.8 -32.7 -35.6 -31.0 1.4 37.3 43.1 23.5 21.3 31.2
Average daily imports 1.58 1.16 1.06 1.06 1.18 1.33 1.46 1.55 1.52 1.57 1.61
1. Preliminary
Source: Korea Customs Service
The current account surplus in November (preliminary) was US$3.61, staying in the black for
ten consecutive months, while the surplus decreased from the previous month as imports
rose considerably.
(US$ billion)
2008 2009 2010
Annual Annual Q1 Q2 Q3 Q4 Q1 Q2 Q3 Oct Nov1
Trade Balance -13.27 40.45 3.00 16.39 9.94 11.12 3.27 14.44 11.61 6.48 3.61
1. Preliminary
Source: Korea Customs Service
16 December 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 in October, while improving 13.5 percent year-on-
year, fell 4.2% month-on-month due to production adjustment in semiconductors and
automobiles.
By business category, chemical products (up 4.2%) and basic metal (up 3.8%) rose month-
on-month, while semiconductors and parts (down 8.7%) and automobiles (down 12.4%)
went down.
Shipments and inventories fell month-on-month by 3.4 percent and 1.2 percent, respectively,
while staying on an upward track year-on-year.
By business category, the shipments of semiconductors and parts (up 16.8%), and
machineries (up 38.3%) rose year-on-year, while those of clothing and fur (down 18.0%) and
other transportation equipment (down 0.7%) declined. The inventories of semiconductors
and parts (up 59.7%) and automobiles (up 38.4%) increased year-on-year while those of
clothing and fur (down 18.0%) and leather and shoes (down 12.2%) fell.
The average operation ratio of the manufacturing sector lost 2.0 percentage points to 79.5
percent from the previous month, while the ratio excluding semiconductors and automobiles
posted a slight increase.
Manufacturing Average operation ratio (%) 74.6 79.9 78.4 80.5 83.0 83.0 81.6 81.5 79.5
activity Production capacity 3.1 3.6 4.0 5.1 5.8 5.8 6.9 6.5 6.4
1. Preliminary
2. Including mining, manufacturing, electricity and gas industry
3. Information and Communications Technology
4. End-period
Source: Statistics Korea
Mining and manufacturing production in October decreased in line with semiconductor and
automobile production which had surged just after the crisis returning to normal. Given
rising exports and improving production in major industries, mining and manufacturing
production is expected to increase.
Exports (y-o-y, %)
30.6 (Jun 2010) 27.5 (Jul) 28.3 (Aug) 16.2 (Sep) 27.6 (Oct) 24.6 (Nov1)
18 December 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 October increased 0.5 percent month-on-month as various international
events such as Pusan International Film Festival (PIFF) and Formula 1 Korean Grand Prix
contributed to the accelerated growth of entertainment, cultural & sports services. In
addition, professional, scientific & technical services and educational services shifted to an
increase.
On a year-on-year basis, real estate & renting, professional, scientific & technical services,
and educational services showed sluggishness while cultural services, transportation services
and business facilities management services turned for the better, increasing 3.0 percent.
Service activity in November is expected to increase from the previous month as domestic
consumption improves following a recovery in employment and income conditions.
Meanwhile, service activity is expected to be weighed down by sluggish rental market and
worries over geopolitical risks.
20 December 2010
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Economic Bulletin
21
8. Employment
The number of workers on payroll in October increased by 316,000 from a year earlier, while
the employment rate (seasonally adjusted) rose by 0.1 percentage point year-on-year to
59.4 percent.
Despite decreasing employment in public administration (down 207,000), the service sector
continued to increase, helped by a rise in health & welfare (up 158,000) and business
assistance (up 92,000).
By status of workers, despite a decrease in daily workers (down 84,000) and temporary
workers (down 81,000), wage workers (up 488,000) continued to expand growth as the
number of regular workers (up 652,000) increased. Non-wage workers (down 172,000)
including self-employed workers (down 146,000) continued to decline.
22 December 2010
8-1 Number of employed and employment growth
Source: Statistics Korea (employment trend)
Economic Bulletin 23
The number of unemployed persons in October increased by 33,000 year-on-year to record
832,000 as people who applied for census jobs but were not selected were counted as
unemployed persons. The unemployment rate (seasonally adjusted) rose 0.1 percentage
point to record 3.3 percent.
By gender, male unemployment (down 5,000) decelerated the decrease while female
unemployment (up 38,000) continued to increase.
By age, unemployment increased in all age brackets except youths aged 15 to 29 (down
23,000). The youth unemployment dropped 0.5 percentage points, recording 7.0 percent.
The economically inactive population in October was up 130,000 from a year earlier to post
15,710,000. Meanwhile, the labor force participation rate (seasonally adjusted) was up 0.1
percentage point year-on-year to 61.4 percent.
The number of workers quitting jobs due to housework (up 234,000), and education (up
37,000) increased, while those who quit jobs due to childcare (down 125,000) and rest,
time-off and leisure (down 25,000) decreased.
24 December 2010
8-4 Employment rate
Source: Statistics Korea (employment trend)
Economic Bulletin 25
9. Financial market
9.1 Stock market
The Korean stock market in November rose with expectations of economic recovery. At the
beginning of the month, KOSPI hit a 12-month high of 1,967.85 points on November 10,
fueled by China’s strong manufacturing index and the Fed’s announcement of a second
round of quantitative easing.
However, KOSPI decelerated growth as the expiration of options contracts spurred heavy
sales of equities by foreign investors. In addition, North Korea’s artillery attack on
Yeonpyeong Island and recurrence of financial instability in the eurozone negatively affected
the performance of KOSPI.
Despite a series of international and domestic anxiety factors, foreign investors kept their
net-buying position for the third consecutive month, purchasing 1.6 trillion won, expecting
global liquidity expansion.
The won/yen exchange rate was down 15.9 won month-on-month as worries over the
eurozone’s financial crisis and geopolitical risks associated with North Korea contributed to
the weak yen.
(End-period)
2006 2007 2008 2009 2010
Dec Dec Dec Dec Oct Nov Change1
Won/Dollar 929.8 936.1 1,259.5 1,164.5 1,125.3 1,159.7 0.4
Won/100Yen 783.4 828.6 1,396.8 1,264.5 1,394.9 1,379.0 -8.3
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 December 2010
9-1 Stock prices
Economic Bulletin 27
9.3 Bond market
Treasury bond yields marginally increased in November with expectations of a rate hike.
Early in the month, Treasury bond yields rose amid prospects of a rate hike and concerns
over regulations associated with capital flows. However, Treasury bond yields decelerated
growth as expectations of a rate freeze until the year-end spread and industrial activities in
October showed sluggishness.
(End-period)
2006 2007 2008 2009 2010
Dec Dec Dec Dec Sep Oct Nov Change1
Call rate (1 day) 4.60 5.02 3.02 2.01 2.27 2.26 2.51 +25
CD (91 days) 4.86 5.82 3.93 2.88 2.66 2.66 2.80 +14
Treasury bonds (3 yrs) 4.92 5.74 3.41 4.44 3.32 3.25 3.19 -6
Corporate bonds (3 yrs) 5.29 6.77 7.72 5.56 4.26 4.03 4.03 0
Treasury bonds (5 yrs) 5.00 5.78 3.77 4.98 3.71 3.86 3.88 +2
1. Basis point changes in November 2010 from the previous month
In October, bank deposits turned to a rise as money market deposit accounts (MMDA)
significantly increased following the inflow of treasury surplus in the end-month. Expanded
amounts of time deposits led by money inflows from local governments also contributed to
the trend.
Asset management company (AMC) deposits slightly increased due to declining redemption
in equity funds and the inflow of treasury surplus into money market funds (MMFs).
28 December 2010
9-4 Interest rates
Source: The Bank of Korea
Economic Bulletin 29
10. Balance of payments
Korea’s current account surplus (preliminary) expanded in October from the previous month
to record US$5.37 billion.
The goods account surplus increased to post US$6.54 billion from the previous month’s
US$3.95 billion driven by robust exports of key products including semiconductors.
The service account deficit narrowed to post US$1.69 billion from the previous month’s
deficit of US$1.96 billion as the transportation account surplus widened while the travel
account deficit was slashed.
The income account surplus slightly increased to US$760 million from US$510 million a
month earlier while the current transfer account deficit marginally widened to US$240
million from the previous month’s deficit of US$160 million.
(US$ billion)
2008 2009 2010
Annual Annual Q1 Q2 Q3 Q4 Q1 Q2 Aug Sep Oct Jan-Oct
Current account -5.78 42.67 8.62 13.10 10.40 10.56 1.34 10.28 2.19 4.06 5.37 29.00
- Goods balance 5.67 56.13 8.31 17.58 14.70 15.54 7.43 15.65 3.81 5.67 6.54 46.22
- Service balance -16.67 -17.20 -1.93 -4.17 -5.33 -5.77 -6.04 -4.17 -1.78 -1.96 -1.69 -17.14
- Income balance 5.90 4.55 0.92 0.29 1.69 1.65 0.76 -0.75 0.61 0.51 0.76 2.31
- Current transfers -0.67 -0.81 1.31 -0.60 -0.66 -0.86 -0.81 -0.45 -0.45 -0.16 -0.24 -2.40
Source: The Bank of Korea
The capital and financial account (preliminary) in October shifted to an outflow as locals’
overseas investment increased and financial institutions redeemed borrowings.
The direct investment account accelerated the net outflow to register US$6.13 billion from the
previous month’s deficit of US$3.60 billion as locals’ overseas investment significantly increased.
The portfolio investment account greatly expanded the net inflow to US$7.45 billion from
US$4.41 billion a month earlier as foreigners’ investments in the Korean stock market
increased amid expectations of the new round of US quantitative easing.
The financial derivatives account deficit narrowed to post US$100 million from the previous month’s
deficit of US$370 million as losses from overseas financial derivative transactions decreased.
The other investment account deficit increased to US$5.13 billion from the previous month’s
deficit of US$240 million due to financial institutions’ redemption of borrowings.
The current account is expected to remain in surplus, although diminishing in amount, owing
to an increase in imports associated with domestic consumption recovery and rising price of
raw materials.
30 December 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 stabilized in November as the price of agricultural products, in particular,
plunged 9.8 percent from the previous month and public utility charges also fell. November
consumer prices rose 3.3 percent year-on-year while on a monthly basis it fell 0.6 percent.
Core consumer prices, which exclude the prices of oil and agricultural products, rose at a
slower pace in November, suggesting that inflation remains stable. November core
consumer prices rose 1.8 percent year-on-year and 0.1 percent month-on-month. Consumer
prices of basic necessities, a barometer of perceived consumer prices, were up 3.6 percent
compared to the same month of the previous year.
Grain and fish prices posted a slight gain due to lower production levels, but the overall price
of agricultural and livestock products were down 6.5 percent from the previous month due
to a sharp fall in vegetable prices
Although prices of durable goods and oil products surged due to high gold and oil prices,
prices of industrial products stabilized with a 0.2 percent rise month-on-month as prices of
other industrial products fell.
Public utility charges stabilized due to factors such as lower gas prices (down 4.5%, m-o-m),
and personal service charges also remained steady.
32 December 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
In October, international oil and domestic oil product prices rose from the previous month.
International oil prices (Dubai crude) poked above US$80 a barrel due to the US
government’s announcement of extra quantitative easing, but the rise was limited as
concerns on the eurozone crisis resurfaced.
(US$/barrel, period average)
2007 2008 2009 2010
Annual Annual Annual May Jun Jul Aug Sep Oct Nov
Dubai crude 68.4 94.3 61.9 76.8 74.1 72.6 74.2 75.2 80.3 83.6
Brent crude 72.8 97.5 61.7 75.2 74.9 75.7 77.2 77.9 83.2 85.8
WTI crude 72.3 99.9 61.9 73.7 75.3 76.3 76.6 75.3 81.9 84.4
Source: KOREAPDS
Domestic oil product prices rose due to factors such as lower exchange rates and higher
international oil prices.
Prices of overall non-ferrous metals fell due to the possibility of a tighter monetary policy in
China. International grain prices were mixed despite expectations of lower production, as a
result of concerns regarding the eurozone crisis.
A decrease in grain production is expected to persist, but international grain prices were mixed
due to renewed concerns regarding the eurozone crisis and China’s tighter monetary policy.
34 December 2010
11-4 International oil prices
Source: Korea National Oil Corporation
Economic Bulletin 35
12. Real estate market
12.1 Housing market
In November, nationwide apartment sales prices increased 0.5 percent month-on-month.
Apartment sales prices in the Seoul metropolitan area fell for the eighth consecutive month
in November with a 0.1 percent decrease. The pace of decrease is, however, slowing
steadily, and into mid-November prices have started to inch up.
Apartment sales prices in areas excluding the Seoul metropolitan area showed a continuing
strong upward trend. In particular, prices in South Gyeongsang province rose 2.5 percent
from the previous month and prices in Busan were up 2.1 percent. Apartment prices in 5
metropolitan cities and other cities each advanced 1.2 percent month-on-month.
Apartment rental prices in November were up 1.4 percent from the previous month. In
Seoul’s Gangbuk area (up 0.8%), the pace of an increase decelerated as the autumn moving
season ended. In Gangnam (up 1.4%), however, rental prices around major school districts
continued to rise.
Apartment sales transactions in October increased 27.8 percent from 56,848 the previous
month to post 72,629. The transactions were down 16.8 percent from a year earlier and 7.3
percent compared with the monthly average of 78,000 recorded in the same month for the
past 3 years
36 December 2010
12-1 Real estate prices
Source: Kookmin Bank (national housing price trend)
Economic Bulletin 37
12.2 Land market
Nationwide land prices in October were down 0.03 percent from the previous month, with
the pace of a decrease shown to be slightly decelerating. Land prices in October were 2.34
percent lower than the pre-crisis peak reached in October 2008.
Land prices in the Seoul metropolitan area fell for the fourth consecutive month (down
0.08%). Seoul posted the biggest price fall (down 0.13%), followed by Gyeonggi Province
(down 0.03%) and Incheon (down 0.02%).
Land price increases in areas excluding the Seoul metropolitan area (up 0.05%) continued in
October, led by Daejeon (up 0.14%) and South Gyeongsang province (up 0.07%).
Nationwide land transactions in October recorded 181,000 land lots, increasing 24.9 percent
from the previous month and decreasing 14.6 percent from 212,000 a year earlier.
Land transactions in Busan (up 46.2%), Daegu (up 43.7%), and North Chungcheong
Province (up 41.2%) increased significantly.
38 December 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 cyclical indicator of the coincident composite index fell 1.3 points month-on-month to
post 99.9 in October.
All components of the coincident composite index excluding the service activity were lower
compared to the previous month.
The year-on-year leading composite index in October fell 1.5 percentage points from the
previous month due to last year’s high base effect and a decline in leading composite index
this month.
Among the components of the leading composite index, only the composite stock price
index rose.
2010
Apr May Jun Jul1 Aug1 Sep1 Oct1
Coincident composite index (m-o-m, %) 0.9 0.7 0.8 0.9 0.3 -0.4 -0.9
Cyclical indicator of coincident composite index 101.1 101.4 101.7 102.2 102.1 101.3 99.9
(m-o-m, p) 0.5 0.3 0.3 0.5 -0.1 -0.8 -1.3
Leading composite index (m-o-m, %) -0.2 0.6 0.3 0.9 0.2 -0.1 -0.7
12 month smoothed change
in leading composite index (%) 8.6 8.0 7.1 6.8 5.9 4.9 3.4
40 December 2010
13-1 Cyclical indicator of coincident composite index
Source: Statistics Korea
Economic Bulletin 41
Policy Issues
2011 Economic Policies
The Korean economy is expected to grow around 5 percent in 2011 amid the global economy
steadily recovering and the domestic demand improving: Consumer spending to rise in the 4
percent range backed by increasing employment and income; facility investment to go up
around 7 percent with growing investment sentiment in line with recovering demand;
financial markets continue to stabilize and business performance to improve; and
construction investment to add around 2 percent backed by rising private construction
despite slowing down civil engineering works.
In 2011 the private sector is expected to lead employment growth, with the total number of
workers hired gaining around 280,000. Consumer prices is likely to be affected by rising
international commodities prices and wages, increasing around 3 percent. The current
account surplus will shrink and is projected to be around US$16 billion with exports
increasing more or less 10 percent amid the recovering global economy, and imports rising
around 15 percent due to improving domestic demand and climbing oil prices.
42 December 2010
<Economic outlook, 2010 and 2011>
2010 2011
Real GDP (y-o-y, %) 6.1 Around 5
Employment (y-o-y, thousand) 310 280
Consumer prices (y-o-y, %) 2.9 Around 3
Current account balance (US$ billion) 1
29 16
1. IMF’s new balance of payment statistics used
The 2011 economic policies are directed towards 1) achieving sustainable recovery, 2)
supporting the working class, 3) nurturing future growth engines, and 4) expanding
overseas cooperation.
To help the economy continue to recover, the government will keep the early budget
spending it has carried out since the outbreak of the global crisis, allocating 57 percent of
the budget in the first half of 2011. Foreign capital inflows and the level of liquidity will also
be closely monitored so that they cannot negatively affect prices and asset markets. Other
emerging economies’ situations as well as that of China will be checked regularly to respond
timely to their changes, along with efforts to diversify export markets to avoid dependence
on specific countries.
Economic restructuring will be pursued in household, corporate, finance, foreign capital, and
public sectors. The government will more tightly regulate the level of household debt with
total loan growth not exceeding GDP growth. Corporate restructuring will go on led by
creditor institutions, and they are scheduled to evaluate corporate risks within 2011: Large
conglomerates in May, large companies in June, and SMEs between July and October. Loans
to marginal firms will be phased out and start-ups phased in. Excessive loans to real estate
projects have been a serious future risk in the financial market. Loans to real estate projects
will be re-categorized, with tighter allowance reserve applied. Savings banks’ real estate
project loans, which currently account for 30 percent of the banks’ total credit, will be
reduced to 25 percent in 2011, and 20 percent by 2013.
To avoid the impact of sudden foreign capital movements spurred by loose monetary
policies in developed countries, the government will examine current systems related to the
foreign exchange market and introduce new ones if necessary: Under consideration are
setting new limits on banks’ foreign exchange forward position and imposing charges to
improve macro-prudence. To achieve a fiscal balance between 2013 and 2014, the
Economic Bulletin 43
government will keep the budget expenditure increase under control so that budgets rise 2-
3 percentage points slower than revenue increases. Public firms and other public institutions
will be under government’s close watch, and those financially unhealthy will be required to
come up with plans for financial restructuring. To improve municipal governments’ fiscal
health, the government will limit the size of municipal governments’ debt, and the total
amount of local tax reduction will be determined based on the previous year’s reduction.
Measures to curb inflation involve securing supplies of agricultural products and diversifying
purchase channels in the wholesale market, providing necessitics price information through
Korea Consumer Agency’s web site, regularly monitoring unfair trade practices, controlling
service charge increases by keeping public service rates low and putting up local public
service rates, all of which are expected to lower prices through competition, and financially
supporting universities without tuition hike.
2. Stimulating the real economy and supporting the working class: working class friendly policies
The 2011 policies for the working class are directed towards creating jobs and strengthening
less competitive sectors of the economy in order to found a basis for expanding the middle
class, and increasing government support for the working class and vulnerable groups.
To help create jobs, the government will give corporate tax reduction to companies
relocating businesses in Korea: 100 percent for the first five years and 50 percent for the next
two years. For a more adaptable job market, the government will adopt more flexible and
worker-friendly regulations: The 40 hour work week to be required to businesses with less
than 20 employees as well, the 2 year maximum period of contract employment not to be
applied to start-up businesses and businesses mainly employing contract workers such as
cleaning and guarding services, the pay system of flexible work arrangement which allows
employees to schedule their own work hours to be changed in favor of workers so that they
can be paid more, the calculating method used to convert the number of part-time
employees into the number of regular workers to be revised from an employee-basis to a
work hour-basis so that more SMEs can be eligible for the government support given to
SMEs with less than 300 workers, laws to be enacted to secure part time positions for
mothers and the sick, and regulations to be revised so that overtime payment can be made
with vacations.
The government will step up efforts to remove unfair treatment of irregular and subcontract
employees: Guidelines for subcontract employee protection to come out in the first half of
2011 along with expanded government inspection for unfair treatment to distribution and
service industries in addition to manufacturing industries, regulations to be revised so that
employees under unfair treatment can report the unfair dealings within 6 months instead of
3 months, and construction companies delaying payment to have disadvantages in public
project bidding with the list of the companies disclosed.
44 December 2010
To effectively use foreign labor force, the government will develop foreign employment
guidelines based both on economic benefit and social cost: Under review is charging
companies for employing foreign workers so that the size of foreign labor force can be
determined by supply and demand. More jobs will be available to foreign workers, with visa-
issuing process simplified and skills and techniques other than the Korean language
proficiency added to the criteria for selecting foreign employees.
To help foster healthy cooperation between large conglomerates and SMEs, the government
will correct unfair price-setting practices by large purchasing firms, as it will give Korea
Federation of Small and Medium Business rights to request price adjustment. Other
measures to support SMEs will involve new subcontractor protection which will cover all
tiers of subcontractors in addition to first subcontractors, designation of SME businesses in
which SMEs have competitiveness over large companies with follow-up measures to support
SMEs in those businesses, and a close watch over the abuse of the intellectual property
rights by large companies, which harms SMEs with innovative technologies.
To revitalize agricultural and fishing industries, the government will help those industries
develop into high-value-added ones with increased R&D support and by creating new
markets. To promote functional food markets, the government will develop various methods
to evaluate and certify functional food. The government will finance domestic fisheries’
overseas facility investment, and in case of overseas fish stock search, it will provide support
to raise the competitiveness of the distant water fishing industry.
To support the working class, the government will continue its efforts to reduce their
housing, medical, childcare, and financial cost: 123,000 rental houses to be available in 2011
with financial support of 5.7 trillion won for those who want loans to rent a house, the
national health insurance to cover more of medical expenses in the eight cases of serious
illnesses such as cancers and maternity checkups, day care expenses to be fully supported
for those in the lower 70 percent of the income bracket, a 20 percent increase from the lower
50 percent, and seniors, disabled, and basic social security recipients exempted from tax on
their savings.
There will be continuous efforts to improve the social security system so that those who
need support have to get support, while any moral hazard can be detected: business owners
employing 50 workers or less to be eligible for employment insurance, a large expansion
from 5 workers or less, and social security recipient information to be shared among
ministries to avoid dishonesty in receiving social security, emergency sensors installed in
living-alone senior houses, which work in case of fire, gas leak, and other emergent
Economic Bulletin 45
situations, to be expanded from 30,000 houses in 2010 to 52,000 in 2011. The center for
multicultural families to be increased from 159 centers in 2010 to 200 in 2011, where the
families get help in learning the Korean language, taking care of children, and finding jobs.
Illegal private lenders will be cracked down regularly and rewards will be given for reporting
such lenders.
The 2011 policies focus on raising service sector competitiveness and promoting green and
other innovative technology development, the former as a way to find a balance between
exports and domestic demand, and the latter to secure future growth potential.
To raise service sector competitiveness, the government will remove entry barriers to health
care, broadcasting and communications, education, and energy industries in the first half of
2011, help provide new IT convergence services, review and improve the existing plans for
service sector development, and restructure the service sector to produce high-added-value.
To help restructure the service sector to become a high-value-added one, the government
will encourage convergence between industries, such as tourism and health care, consulting
and manufacturing, and technology and art. Under review are service industry-friendly taxes,
financial and R&D support, and a think tank exclusive for the service sector.
Green technologies will have unwavering support in 2011, but ways to more effectively
support them will be sought: All green technology- related government projects will be
reviewed to avoid multiple support for the same technologies. When green technologies
such as new renewable energies and water industries are exported to developing countries,
part of Official Development Assistance (ODA) is appropriated for green technology export
support. Key construction for the four river restoration project such as reservoir construction
will be completed in the first half of 2011, and water protection zones will be designated by
December 2011 to avoid improper development.
Korea will actively use FTAs in effect as well as pursue FTAs in negotiation, while providing
support to the industries affected by the trade deals. ODA will be increased from 1.3 trillion
won in 2010 to 1.6 trillion in 2011, with KSP reinforced and expanded as KSP demand from
46 December 2010
developing countries increase.
Korea will more actively finance plant and infrastructure exports to developing countries,
while promoting exports of agricultural technologies, which will lead to trade and investment
in related areas such as training and development cooperation. Korea will start bilateral
ministerial level talks with countries in Asia, Middle East and Africa, an expansion from those
with BRICs and UAE. Asian + 3 Macroeconomic Research Office (AMRO) will be launched in
the first half of 2011, which aims at facilitating the Chiang Mai Initiative, the regional financial
safety net, to take hold.
Economic Bulletin 47
Economic
News Briefing
Korea’s real GDP expanded 0.7 percent from a quarter earlier (seasonally adjusted) in the
third quarter. This figure is the same as the advanced estimate released on October 27. On a
year-on-year basis, the GDP rose 4.4 percent in July-September compared to its earlier
estimate of 4.5 percent.
On the production side, the manufacturing sector was up 2.2 percent from the previous
quarter mainly due to the robustness of general machinery and transport equipment. On the
expenditure side, private consumption rose by 1.3 percent with increased expenditures on
durable and semi-durable goods.
Nominal gross national income (GNI) increased by 1.0 percent in the third quarter from the
previous quarter. Meanwhile, Korea’s real GNI expanded mere 0.2 percent as trading losses
increased with worsening terms of trade.
Meanwhile, the GDP growth rate for 2011 is expected to register 4.5 percent, the Bank of
Korea said on December 10. For 2012, GDP growth is likely to expand 4.7 percent. The bank
projected that the jobless rate will decline to 3.5 percent next year from 3.8 percent this
year. The year-on-year CPI growth is forecast to register 3.5 percent in 2011. Korea’s current
account surplus is expected to narrow to US$18 billion in 2011 from US$29 billion this year.
48 December 2010
<GDP by production and expenditure*> (Percentage change from previous period)
20091 20101
Annual Q1 Q2 Q3 Q4 Q1 Q2 Q3
GDP 0.2 0.2 2.4 3.2 0.2 2.1(8.1) 2
1.4 (7.2) 0.7 (4.4)
Agriculture, forestry and fishery 1.6 -0.1 -0.4 2.9 0.4 -4.9 (-1.9) 0.1 (-2.2) -3.50 (-7.5)
Manufacturing -1.6 -2.5 8.0 9.4 -1.7 4.2 (20.7) 5.2 (18.0) 2.2 (10.1)
Construction 1.9 4.4 1.2 -1.0 -0.6 1.9 (1.5) -0.9 (-0.5) 0.6 (1.0)
Services 3
1.0 0.3 1.0 0.9 0.9 1.6 (4.4) 0.1 (3.6) 0.1 (2.7)
Private consumption 0.2 0.3 3.3 1.7 0.4 0.7 (6.3) 0.8 (3.7) 1.3 (3.3)
Government consumption 5.0 2.9 0.7 0.0 -2.4 5.8 (3.8) 0.1 (3.2) -0.7 (2.8)
Facility investment -9.1 -10.5 9.0 10.8 5.3 2.4 (29.9) 9.1 (30.2) 5.5 (24.3)
Construction investment 4.4 5.9 1.8 -0.7 -0.1 1.3 (2.3) -3.6 (-2.9) 1.3 (-2.1)
Goods exports4 0.0 -1.7 13.5 5.1 -1.5 3.7 (21.6) 7.0 (14.9) 1.9 (11.5)
Goods imports4 -7.9 -5.8 8.7 8.0 -1.3 5.1 (21.8) 9.5 (22.1) 2.1 (16.1)
Nominal Gross National Income 3.3 0.1 4.2 3.1 1.1 2.8 (11.3) 2.2 (9.3) 1.0 (7.1)
Real Gross National Income 1.5 -0.7 4.9 1.1 2.7 0.9 (8.9) 0.5 (5.4) 0.2 (4.3)
*At 2005 chained prices in seasonally adjusted terms
1. Preliminary
2. Percentage changes from the same period in the previous year in original terms
3. Wholesale & retail sales, 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.
4. FOB basis
Korea and the US made substantial progress in the Korea-US Free Trade Agreement (KORUS
FTA) after four days of talks between top trade negotiators of Korea and the US. During the
meeting from November 30 to December 3, Trade ministers of Korea and the US reached an
agreement named “agreed elements”, which is expected to pave the way for the KORUS FTA
to officially take effect. The updates made on December 3 aimed at clarifying the 2007
Korea-US trade agreement.
Although Korea and the US signed the KORUS FTA on June 30, 2007, its ratification has
been delayed for more than three years. Under the 2007 FTA, nearly 95 percent of bilateral
trade in consumer and industrial products would become duty free within three years of the
date the FTA enters into force, and most remaining tariffs would be eliminated within 10
years. The supplemental agreement announced on December 3 showed a number of
improvements as follows:
Korea and the US agreed to completely remove tariffs on all passenger cars after the trade
pact comes into effect. Korea will immediately cut its tariff on US auto imports from 8 percent
to 4 percent and fully eliminate the tariff in the fifth year of the implementation, while the US
will maintain its tax on Korean cars at 2.5 percent until the fifth year of the implementation. In
addition, as many as 25,000 cars per US automaker will be considered safety-compliant when
Economic Bulletin 49
imported into Korea provided they meet US federal safety standards. A special safeguard for
motor vehicles is also added to the agreement. The special auto safeguard is available for 10
years beyond the full elimination of tariffs for each Korean auto product.
Meanwhile, the two countries agreed to extend the deadline for the removal of tariffs on US
pork to 2016. On pharmaceuticals, Korea and the US agreed to extend the time period for
fulfilling obligations related to patents from 18 months to three years. They also agreed to
lengthen the L-1 visa validation period for Korean workers residing in the US to five years.
Currently, Korean workers are required to extend their L-1 visas every three years.
The Organization for International Cooperation and Development (OECD) raised the 2010
growth outlook for Korea to 6.2 percent from the previous projection of 5.8 percent, in its
biannual Economic Outlook report released on November 18. The growth forecast for 2011,
however, was lowered to 4.3 percent from 4.7 percent. After reaching a 7.3 percent annual
rate during the first half of 2010, growth has slowed, in line with other countries in Asia. The
Paris-based agency pointed out that although Korea’s strong recovery from the 2008 global
recession slowed in the latter half of 2010, double-digit export growth and buoyant domestic
demand are projected to boost growth to around 5 percent by late 2011.
On December 8, the National Assembly approved next year’s budget bill of 309.1 trillion
won. Compared to the initial proposal by the government, the total revenue is slashed by 0.2
trillion won to record 314.4 trillion won while the total expenditure is cut by 0.5 trillion won
to stand at 309.1 trillion won. The fiscal balance is expected to improve 0.7 percentage
points from -2.7 percent of GDP in 2010 to -2.0 percent in 2011. The national debt will be
decreased by 0.8 percentage points to 35.1 percent of GDP in 2011 from 36.1 percent of 2010.
Fewer amounts of national bonds to supplement the general account will be issued in 2011,
as 21.0 trillion won of the bonds are planned to be on the market in 2011 compared with 29.3
trillion won of 2010.
50 December 2010
<2011 budget bill> (Trillion won, %)
2011 Changes
2010
(A) Initial Final
(C-B) (C-A) %
proposal (B) budget bill (C)
Total revenue 290.8 314.6 314.4 -0.2 23.6 8.1
Total expenditure 292.8 309.6 309.1 -0.5 16.2 5.5
Operational budget balance -30.1 -25.3 -25.0 0.3 5.1
(Percentage to GDP) (-2.7) (-2.0) (-2.0) (-) (0.7%p)
The National Assembly’s Strategy and Finance Committee approves tax reform plan
The 2010 tax reform plan was approved by the National Assembly’s Strategy and Finance
Committee on December 7, and will be presented at the plenary session of the National
Assembly for final approval before being implemented on January 1, 2011. After the
Committee’s revision of the tax reform plan, government tax revenue has been adjusted to
1.3 trillion won from the original 1.9 trillion won.
According to the Committee, the Temporary Investment Tax Credit, which was originally
planned to be switched to the Job Creation Investment Tax Credit, has been extended by
another year. However, the tax deduction rate, which is currently at 7 percent, will now vary
by region and business scale: 5 percent for small- and medium-sized enterprises (SMEs) and
4 percent for big businesses in the Seoul metropolitan area. The Job Creation Investment Tax
Credit, which was presented as an alternative to the Temporary Investment Tax Credit,
would lower the tax deduction rate to 1 percent.
The Committee revised and approved amendment bills for the Personal Income Tax Law and
the Corporation Tax Law as well. The bills will re-impose a 14 percent withholding tax on
interest income on bonds that foreigners buy, as well as a 20 percent capital gains tax. A
flexible tax rate will be applied, and the withholding tax rate can be lowered to as low as zero
when the need arises to urgently stabilize financial markets. Thus, for interest income, the
tax rate will vary from 14 percent to zero, and for capital gains it will range from 20 percent to
zero. The revised law will come into force on January 1, 2011, and will not apply to interest
income and capital gains acquired before November 12. According to the Ministry of Strategy
and Finance, the revised law is expected to reduce systemic risks in the Korean economy by
restraining the excessive inflow of short-term bond capital and reducing the volatility of the
financial market. Meanwhile, revisions on laws regarding inheritance and gift tax, added
value tax, special excise tax and others were also approved by the Committee.
Economic Bulletin 51
Korea hopes to be the 7th largest exporter by 2015
Korea aims to rank as the world’s 7th largest exporter by 2015, said the Ministry of
Knowledge Economy on November 30 on occasion of the country’s 47th Trade Day. To
achieve the ambitious target, the Ministry suggested three preemptive measures to counter
changes in the global trade environment: first, expanding market penetration in emerging
countries; second, enhancing the competitiveness of small- and medium-sized enterprises
(SMEs); and third, establishing advanced infrastructure for trade.
Meanwhile, President Lee Myung-bak urged Korea to seek new trade policies to cope with a
rapidly changing trade environment. In the celebratory speech to mark the 47th Trade Day,
President Lee stressed the importance of newly emerging countries as the center of world
trade. In addition, the president declared that Korea will further foster SMEs to raise the
proportion of SMEs in Korea’s total exports to 40 percent from the current level of 30 percent.
The Korean Economy: Six Decades of Growth and Development, a book on the history of
economic development in Korea which discusses numerous factors behind Korea’s
economic success, was published on December 2. The five-volume book is the result of an
ambitious project steered by the Committee for the Sixty-Year History of the Korean
Economy and involves various research institutions including Korea Development Institute
(KDI). The work is grouped into five areas: general economic policies, industrial growth,
external economic relations, territorial development, and social policies. It is expected to be
a valuable source for other developing countries that want to catch up with advanced
economies in a short period of time as Korea did, and will also serve as a tool for charting
Korea’s future path in the face of new challenges. An English version, which is in a
condensed and revised form, is also available.
52 December 2010
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)
54 December 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 December 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 December 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 December 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 December 2010
9. Balance of payments (I) See graphs 5-1, 5-2, 5-3, 10-1 & 10-2
(million US$)
Economic Bulletin 63
10. Balance of payments (II) See graph 10-3
(million US$)
64 December 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
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
3 24,382 23,377 3,924 18,047 4.1 16,617 9,926 4,976 1,714
4 24,858 23,924 3,991 18,285 3.8 16,994 10,011 5,147 1,836
5 25,099 24,306 4,036 18,499 3.2 17,255 10,078 5,223 1,953
6 25,158 24,280 4,017 18,422 3.5 17,193 10,089 5,165 1,938
7 25,232 24,301 4,040 18,489 3.7 17,228 10,107 5,215 1,905
8 24,863 24,005 4,058 18,175 3.3 17,048 10,151 5,122 1,775
9 24,911 24,054 4,062 18,216 3.4 17,103 10,217 5,106 1,780
10 25,004 24,172 4,098 18,264 3.3 17,178 10,280 5,089 1,809
Y-o-Y change (%)
2009 0.2 -0.3 -3.2 0.5 - 1.5 4.3 0.4 -7.4
66 December 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 December 2010
15. Exchange rates See graphs 9-2 & 9-3
Economic Bulletin 69
Editor-in-Chief
Yoon, Yeo-Kwon (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
Cho, Eun-Hyung (MOSF)
Kang, Ji-Eun (KDI)
Lee, Ji-Youn (KDI)
Ministry of Labor
http://english.molab.go.kr/english
Statistics Korea
http://kostat.go.kr