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ISSN 2287-7266

ECONOMIC BULLETIN (Republic of Korea)

Republic of Korea

Vol.36 No.9
September 2014

conomic
u l l e t i n

Vol.36 No.9 September 2014

The Green Book:


Current Economic Trends
Policy Issues

2015 Budget Planned to Support Expansionary Fiscal Policies


Government to Promote Private Pension Plans

Economic News Briefing

Government to Implement Emissions Trading System in 2015


Korea Grows 0.5% in Q2
Plans to Innovate Financial Industry Unveiled
S&P Raises Koreas Credit Rating Outlook

Statistical Appendices
ECONOMIC
BULLETIN
(Republic of Korea)

For free subscriptions and enquiries, please contact:


Foreign Press Spokespersons Office
Ministry of Strategy and Finance
Government Complex, 477 Galmae-ro

September 2014

Sejong, 339-012
Republic of Korea
Tel. +82 2 731 1530
Fax. +82 2 731 1540
E-mail. fppr@mosf.go.kr
Website. http://english.mosf.go.kr
Economic Information and Education Center
Korea Development Institute
15 Giljae-gil (Bangok-dong)
Sejong, 339-007
Republic of Korea
Fax. +82 44 550 4941
E-mail. jiyounlee@kdi.re.kr

MOSF / KDI

Tel. +82 44 550 4645

Website. http://eiec.kdi.re.kr

EB 9 .indd 1

14. 9. 25. 6:05

Danyang, North Chungcheong Province


Danyang is a county located in North Chungcheong Province.
Noted for its beautiful scenery, thanks to the surrounding
mountains and the river that runs through it, Danyang is a popular
destination for hikers and paragliders.

Useful economyrelated websites

EB 9 .indd 2

Ministry of Strategy and Finance


http://english.mosf.go.kr

Fair Trade Commission


http://eng.ftc.go.kr

Ministry of Trade, Industry and Energy


http://www.motie.go.kr/language/eng

Ministry of Employment and Labor


http://www.moel.go.kr/english

Financial Services Commission


http://www.fsc.go.kr/eng

The Bank of Korea


http://www.bok.or.kr/eng

Financial Supervisory Service


http://english.fss.or.kr

Statistics Korea
http://kostat.go.kr/portal/english

14. 9. 25. 6:05

contents

02 The Green Book:


Current Economic Trends
03

Overview

04

1. External economic situation

09

2. Private consumption

11

3. Facility investment

13

4. Construction investment

15

5. Exports and imports

17

6. Mining and manufacturing production

19

7. Service sector activity

21

8. Employment

25

9. Financial markets
9.1 Stock market
9.2 Exchange rate
9.3 Bond market
9.4 Money supply & money market

29

10. Balance of payments

31

11. Prices and international commodity prices


11.1 Prices
11.2 International oil and commodity prices

37

12. Real estate market


12.1 Housing market
12.2 Land market

42

13. Composite indices of business cycle indicators

44 Policy Issues
45

2015 Budget Planned to Support Expansionary Fiscal Policies

51

Government to Promote Private Pension Plans

53 Economic News Briefing


57 Statistical Appendices

Editor-in-Chief
Editorial Board
Coordinators
Editors

EB 9 .indd 2

Kim Joo-Hoon (KDI), An Il-Whan (MOSF)


 hoi Jae-Hyuk (MOSF), Lee Seong-Pyo (KDI), Lee Jae-Yeal (KDI)
C
Kim Dae-Hyun (MOSF), Lee Ji-Youn (KDI)
David Friedman (MOSF), Kim Seul-Ki (MOSF)

14. 9. 25. 6:03

Th
Gr e
ee
nB
oo
k
Cu
rre
nt

E c o n o m i c B u l le t i n

Ec
on
om
ic T
ren
ds

Overview

1. External economic situation


2. Private consumption
3. Facility investment
4. Construction investment
5. Exports and imports

6. Mining and manufacturing production


7. Service sector activity
8. Employment
9. Financial markets
10. Balance of payments
11. Prices and international commodity prices
12. Real estate market
13. Composite indices of business cycle indicators

EB 9 .indd 2

14. 9. 25. 6:03

OVERVIEW

The economic recovery has continued as industrial


activities have been recovering from a slump in April
and May while employment has been stabilizing.
However, the pace of recovery is still slow.
The economy added more jobs in July than it did in
June, adding 505,000 jobs year-on-year.

index of leading indicators slightly picked up from


the previous month, rising 0.1 points.
Exports, which grew 5.4 percent year-on-year in
July, dropped 0.1 percent in August due to fewer
days worked and auto worker strikes.

Inflation in August remained stable in the 1 percent


range and rose 1.4 percent year-on-year.

In August, the KOSPI declined somewhat, interest


rates went down slightly, and the dollar-won and
100 yen-won ratios fell compared to the previous
month.

Mining and manufacturing production, despite weak


semiconductors & parts, increased 1.1 percent
month-on-month in July, improving for two months
in a row. Strong automobiles which had been
positively affected by summer vacations planned in
August, contributed to an increase in July.

Both housing prices and Jeonse (lump-sum


deposits with no monthly payments) prices
increased in August, rising 0.1 percent and 0.2
percent, respectively.

Service output fell 0.4 percent in July, mainly due to


increases in wholesale & retail and publishing &
communications services, while retail sales
continued to improve, led by semi-durable goods and
nondurable goods sales, rising 0.3 percent.
Facility investment increased significantly monthon-month in July from a fall of 1.2 percent to an
increase of 3.5 percent as transportation equipment
investment surged backed by aircraft imports.
Construction completed fell from a 2.8 percent
rise to a 1.4 percent decline due to weak building
construction.
The composite index of coincident indicators
remained unchanged from July, and the composite

EB 9 .indd 3

3
The Green Book

T h e G r e e n B o o k : Current Economic Trends

The economy has continued to suffer from weak


domestic demand as consumption and investment
have yet to fully recover.
The Korean government will continue to closely
monitor internal and external economic trends as
external risks remain, including political unrest in
the Middle East and the US tapering its quantitative
easing policy, and at the same time will work to
protect domestic markets from possible external
shocks.
The government will also focus on boosting
domestic demand by successfully implementing the
regulatory reform plans and fostering promising
service industries as well as continue to work on
economic innovation.

14. 9. 25. 6:03

T h e G r e e n B o o k : Current Economic Trends

1. External economic situation


The global economy continues to recover at a
moderate pace, led by the US. However, downside
risk factors remain, such as the possibility of an
early interest rate hike in the US and geopolitical
risks arising from sanctions against Russia and the

US launching airstrikes in Iraq. Other uncertainties


in the global economy include the property slump in
China, deflation concerns in the eurozone and the
possible failure of Abenomics, Japan's economic
policies.

US

E c o n o m i c B u l le t i n

US economic growth in the second quarter of 2014


was revised up to 4.2 percent (annualized q-o-q)
from the advanced estimate of 4.0 percent. Economic
data on consumption and investment continued to
improve.

The housing market recovery has slowed, with


new home sales declining 2.4 percent monthon-month in July. However, home prices rose 1.0
percent in June.
Case-Shiller Home Price Index (q-o-q, m-o-m, %)

Industrial production in July rose 0.4 percent monthon-month. The ISM Manufacturing Index, which
forecasts business sentiment, posted 59.0 in August,
the highest since March 2011.
ISM Manufacturing Index (base=50)
56.5 (Dec 2013) > 51.3 (Jan 2014) > 53.2 (Feb) > 53.7 (Mar) >
54.9 (Apr) > 55.4 (May) > 55.3 (Jun) > 57.1 (Jul) > 59.0 (Aug)

Consumption conditions have continued to improve.


Although retail sales remained unchanged in June, the
Conference Board Consumer Confidence Index was
92.4 in August, the highest level since October 2007.

5.3 (Q3 2014) > 1.0 (Q4)


-0.1 (Jan 2014) > 0.0 (Feb) > 0.9 (Mar) > 1.2 (Apr) > 1.2
(May) > 1.0 (Jun)
New home sales (m-o-m, %)
-1.1 (Nov 2013) > -0.7 (Dec) > 3.4 (Jan 2014) > -5.5 (Feb) >
-6.7 (Mar) > 2.5 (Apr) > 9.9 (May) > -7.0 (Jun) > -2.4 (Jul)

Nonfarm payrolls were up 142,000 in August,


rising at the slowest pace since the beginning of
2014. The unemployment rate inched down to 6.1
percent in line with the decrease in the labor force
participation rate (62.9% > 62.8%) .
Nonfarm payroll increase (m-o-m, thousands)

Conference Board Consumer Confidence Index (1985=100)

84 (Dec 2013) > 144 (Jan 2014) > 222 (Feb) > 203 (Mar) >

77.5 (Dec 2013) > 79.4 (Jan 2014) > 78.3 (Feb) > 83.9 (Mar) >

304 (Apr) > 229 (May) > 267 (Jun) > 212 (Jul) > 142 (Aug)

81.7 (Apr) > 82.2 (May) > 86.4 (Jun) > 90.9 (Jul) > 92.4 (Aug)
UniversityofMichiganConsumerSentimentIndex(1966=100)
82.5 (Dec 2013) > 81.2 (Jan 2014) > 81.6 (Feb) > 80.0 (Mar) >
84.1 (Apr) > 81.9 (May) > 82.5 (Jun) > 81.8 (Jul) > 82.5 (Aug)

EB 9 .indd 4

Unemployment rate (m-o-m, %)


7.2 (Aug 2013) > 7.2 (Sep) > 7.2 (Oct) > 7.0 (Nov) > 6.7 (Dec)
> 6.6 (Jan 2014) > 6.7 (Feb) > 6.7 (Mar) > 6.3 (Apr) > 6.3

(May) > 6.1 (Jun) > 6.2 (Jul) > 61 (Aug)

14. 9. 25. 6:03

US GDP growth and industrial production


Sources: US Department of Commerce, Federal Reserve Board
10 (%)
8
6
4
2
0
-2
-4
-6
-8
-10
2004.Q1

2005.Q1

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

GDP (q-o-q, annualized rate)

2013.Q1

2014.Q1

Industrial production (q-o-q)

US nonfarm payroll growth and unemployment rate


Source: US Department of Labor
(thousands)

(%)

12

600
10
400
200

0
6
-200
-400

The Green Book

800

-600
2
-800
-1000

2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

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

2013.1

2014.1

Unemployment rate (right)

(Percentage change from previous period)

2012
Annual Annual
Real GDP
- Personal consumption expenditure
- Nonresidential fixed investment
- Residential fixed investment
Industrial production
Retail sales
Existing home sales
Unemployment rate
Consumer prices (y-o-y)

2.3
1.8
7.2
13.5
3.8
5.1
8.9
8.1
2.1

2.2
2.4
3.0
11.9
2.9
4.2
8.9
7.4
1.5

Q1
2.7
3.6
1.5
7.8
1.0
1.5
0.7
7.7
1.7

2013
Q2

Q3

Q4

Q1

Q2

2014
Jul

1.8
1.8
1.6
19.0
0.5
0.3
3.5
7.5
1.4

4.5
2.0
5.5
11.2
0.6
1.0
4.4
7.2
1.5

3.5
3.7
10.4
-8.5
1.2
0.9
-7.1
7.0
1.2

-2.1
1.2
1.6
-5.3
1.0
0.2
-6.9
6.7
1.4

4.2
2.5
8.4
7.2
1.3
2.3
1.5
6.2
2.1

0.4
0.0
2.4
6.2
2.0

Aug
2.4
6.1
-

1. Preliminary 2. Annualized rate (%) 3. Seasonally adjusted


Sources: US Department of Commerce, Bloomberg

EB 9 .indd 5

14. 9. 25. 6:03

T h e G r e e n B o o k : Current Economic Trends

China
In China, economic data on production and
consumption slowed in July, and the manufacturing
PMI fell for the first time in six months.
Manufacturing PMI (base=50)
50.5 (Jan 2014) > 50.2 (Feb) > 50.3 (Mar) > 50.4 (Apr) >
50.8 (May) > 51.0 (Jun) > 51.7 (Jul) > 51.1 (Aug)

(Percentage change from same period in previous year)

2011
2012
2013
Annual Annual Q4 Annual Q1 Q2

E c o n o m i c B u l le t i n

Real GDP

9.3

7.7

7.9

Q3

Q4

Q1

2014
Q2 Jun

7.8

7.7

7.7

7.5

7.7

7.4

7.5

9.7

9.5

9.1 10.1 10.0

8.7

8.9

Jul

9.2

9.0

Industrial production

13.9

10.0 10.0

Fixed asset investment (accumulated)

23.8

20.6 20.6

19.6 20.9 20.1 20.2 19.6 17.6 17.3

17.3 17.0

Retail sales

17.1

14.3 14.9

13.1 12.4 13.0 13.3 13.5 12.0 12.3

12.4 12.2

Exports

20.7

8.3

9.5

8.6 18.9

4.2

4.0

7.5 -4.7

5.0

7.2 14.5

Consumer prices

5.4

2.6

2.1

2.6

2.4

2.8

2.9

2.2

2.3

Producer prices

6.0

-1.7 -2.3

2.4

2.3

-1.9 -1.7 -2.7 -1.7 -1.4 -2.0 -1.5

2.3

-1.1 -0.9

1. Preliminary 2. Quarterly change: average of monthly change


Source: China National Bureau of Statistics

Chinas GDP growth and fixed asset investment


Source: China National Bureau of Statistics
18

(%)

(%)

16

60

14

50

12

40

10

30

20

10

0
2004.Q1 2005.Q1

GDP (y-o-y, left)

EB 9 .indd 6

70

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

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

14. 9. 25. 6:03

Japan
The Japanese economy contracted considerably in
the second quarter of 2014 (down 1.7%, q-o-q) due
to the sales tax hike, and indicators related to
economic data on consumption and production
remained sluggish in July.
The consumer price index (CPI) rose at a slower
pace in July (up 3.4%, m-o-m) , and the core CPI
increased 3.3 percent.

(Percentage change from previous period)

2011
2012
Annual Annual Q4

Annual

Q1

2013
Q2

Q3

Q4

Q1

2014
Q2
Jun

Jul

-0.5

1.4

0.0

1.5

1.1

1.0

0.2

0.2

1.6

-1.7

Industrial production

-2.4

-0.5

-0.1

0.2

0.1

-0.1

1.3

0.6

2.8

-3.7

-3.4

0.2

Retail sales

-1.2

0.0

0.1

0.2

0.1

0.4

0.4

0.1

3.9

-7.0

0.4

-0.5

Exports (y-o-y)

-2.7

-2.8

-5.5

9.7

1.2

7.1

12.8

17.4

7.0

0.1

-2.0

3.9

Consumer prices (y-o-y)

-0.3

-0.0

-0.2

0.4

-0.6

-0.3

0.9

1.4

1.5

2.8

3.6

2.3

The Green Book

Real GDP

1. Preliminary
Sources: Japan's Cabinet Office, Ministry of Economy, Trade and Industry, Ministry of Finance, Statistics Bureau of Japan

Japans GDP growth and industrial production


Source: Japan's Cabinet Office, Ministry of Economy, Trade and Industry
6

(%)

(%)

25
20
15
10

5
0

0
-5

-2

-10
-15

-4

-20
-25

-6

-30

-8
2004.Q1

2005.Q1

GDP (q-o-q, left)

EB 9 .indd 7

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

Industrial production (q-o-q, right)

14. 9. 25. 6:03

T h e G r e e n B o o k : Current Economic Trends

Eurozone
The eurozone economy slowed in the second quarter
of 2014 (up 0.0%, q-o-q) , and inflation remains low,
with consumer prices rising 0.3 percent year-on-year
in August.
In order to overcome deflation, the European Central
Bank (ECB) lowered its benchmark interest rate
(0.15% > 0.05%) and overnight deposit rate for banks
(-0.1% > -0.2%) on September 4. In addition, the ECB
announced plans to purchase asset-backed securities
(ABS) and covered bonds.

(Percentage change from previous period)

2012
Annual Annual

Q1

2013
Q2

Q3

Q4

Q1

Q2

2014
Jun

Jul

Aug

E c o n o m i c B u l le t i n

Real GDP

-0.6

-0.4

-0.2

0.3

0.1

0.3

0.2

0.0

Industrial production

-2.5

-0.7

0.3

0.6

0.0

0.5

0.2

0.0

-0.3

Retail sales

-1.7

-0.9

0.0

0.1

0.5

-0.4

0.6

0.3

0.3

-0.4

Exports (y-o-y)

7.6

1.0

1.0

1.8

0.3

1.0

1.2

0.6

2.9

Consumer prices (y-o-y)

2.5

1.4

1.9

1.4

1.3

0.8

0.7

0.6

0.5

0.4

0.3

1. Preliminary
Sources: Eurostat, Bloomberg

Eurozones GDP growth and industrial production


Source: Eurostat
3

(%)

(%)

10
8

6
4

2
0

-2
-1

-4
-6

-2

-8
-10

-3
2004.Q1

2005.Q1

GDP (q-o-q, left)

EB 9 .indd 8

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

Industrial production (q-o-q, right)

14. 9. 25. 6:03

2. Private
consumption

Private consumption in the second quarter of 2014


(preliminary GDP) decreased 0.3 percent compared
to the previous quarter but rose 1.5 percent
compared to a year ago.

(Percentage change from previous period)

Annual

Q1

2012
Q2

Private consumption

1.9

0.8

0.2

1.2

0.4

2.0

(y-o-y)

1.7

0.7

2.6

2.7

2013
Q2

Q3

Q4

2014
Q1
Q2

-0.1

0.7

1.0

0.6

0.2

-0.3

1.7

2.1

2.1

2.2

2.5

1.5

Q3

Q4

Annual

Q1

1. Preliminary 2. National accounts


Source: The Bank of Korea

Private consumption
Source: The Bank of Korea (national accounts)
12

(%)

10

The Green Book

8
6
4
2
0
-2
-4
-6
2004.Q1

2005.Q1

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

Private consumption (q-o-q)

2013.Q1

2014.Q1

Private consumption (y-o-y)

Retail sales in July rose 0.3 percent compared to


the previous month as gains in semi-durable (up
2.4%) and nondurable goods (up 0.7%) offset

declines in durable goods sales (down 2.1%).


Compared to a year ago, retail sales rose 0.6
percent.

Retail sales
Source: Statistics Korea (industrial activity trends)
15

(%)

10
5
0
-5
-10
2004.1

2005.1

Retail sales (m-o-m)

EB 9 .indd 9

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Retail sales (y-o-y)

14. 9. 25. 6:03

T h e G r e e n B o o k : Current Economic Trends


Retail sales by type
Source: Statistics Korea (industrial activity trends)
50
40

(y-o-y, %)

30
20
10
0
-10
-20
-30
2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

Durable goods

2010.1

2011.1

2012.1

2013.1

2014.1

Nondurable goods

Semi-durable goods

(Percentage change from previous period)

10
E c o n o m i c B u l le t i n

Retail sales
(y-o-y)
- Durable goods
Automobiles
- Semi-durable goods
- Nondurable goods4

2012
Annual Q3
1.4
2.4
2.7
5.3
3.2
2.4
-4.4
-0.4
-0.1
2.0
1.3

Q4
-0.1
2.5
2.1
12.0
1.1
-1.8

Annual
0.8
0.3
2.1
2.0
0.6

Q1
-1.0
0.3
-4.1
-7.2
1.4
-0.6

2013
Q2
0.9
1.2
1.8
2.2
-0.4
1.3

Q3
0.8
0.7
-0.3
2.1
0.9
1.5

Q4
0.3
1.2
0.2
-2.1
-0.8
0.8

Q1
0.3
2.5
4.4
12.0
-1.5
-1.0

2014
Q2
Jun
-0.5
0.1
0.7
1.0
-1.1
2.6
4.6
3.0
-1.3 -1.5
0.2 -0.5

Jul
0.3
0.6
-2.1
0.8
2.4
0.7

1. Preliminary 2. Durable goods: Automobiles, electronic appliances, furniture, telecommunications devices, etc.
3. Semi-durable goods: Clothing, footwear, etc. 4. Nondurable goods: Food, medicine, cosmetics, fuel, tobacco, etc.
Source: Statistics Korea

In August, sales of semi-durable goods will rise, but durable goods sales are expected to decline.
Domestic sales of cars fell due to summer vacations and auto worker strikes, and cellphone service transfer
sales declined due to the additional sales ban on mobile carriers.
Cellphone service transfer sales (thousands, Korea Telecommunications Operators Association)
1,226 (Jan 2014) > 1,297 (Feb) > 592 (Mar) > 398 (Apr) > 890 (May) > 865 (Jun) > 644 (Jul) > 523 (Aug)

Sales at department stores and large discount stores increased year-on-year as Chuseok came earlier than
usual. Credit card use continued to rise, while domestic sales of gasoline declined due to above-average
precipitation levels.
(y-o-y, %)

2014
Credit card use
Department store sales
Large discount store sales
Domestic sales of gasoline
Domestic sales of cars

Jan
9.1
6.8
18.6
-2.9
4.1

Feb
2.5
-2.4
-23.1
2.2
9.6

Mar
7.0
-1.1
-3.7
-0.2
0.9

Apr
5.2
-1.4
-4.1
-0.9
10.1

May
3.8
0.8
1.2
2.5
3.9

Jun
5.2
-4.6
-5.9
2.2
7.5

Jul
5.1
2.0
-4.6
0.6
0.7

Aug
8.6
11.7
3.1
-6.2
-4.8

Sources: Credit Finance Association of Korea, Ministry of Trade, Industry and Energy, Korea National Oil Corporation, Korea Automobile Manufacturers
Association, Ministry of Strategy and Finance (for August data)

EB 9 .indd 10

14. 9. 25. 6:03

3. Facility
investment

Facility investment (preliminary GDP) rose 1.1


percent quarter-on-quarter and 7.7 percent yearon-year in the second quarter of 2014.

(Percentage change from previous quarter)

2012
Annual
Q4

Annual

Q1

2013
Q2

2014

1.5

1.0

2.7

5.6

-1.9

1.1

-12.7

-3.9

1.5

10.9

7.3

7.7

Q3

Q4

Q1

Q2

Facility investment

0.1

-3.3

-1.5

(y-o-y)

-6.4

0.3

-5.3

-3.5

-2.6

4.4

6.5

3.7

-4.9

0.2

-0.4

1.8

4.0

11.3

-6.4

-6.5

10.7

5.5

3.1

- Machinery
- Transportation equipment
1. Preliminary 2. National accounts
Source: The Bank of Korea

11
Facility investment
40

The Green Book

Source: The Bank of Korea (national accounts)


(%)

30
20
10
0
-10
-20
-30
2004.Q1

2005.Q1

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

Facility investment (q-o-q)

2013.Q1

2014.Q1

Facility investment (y-o-y)

The facility investment index in July rose 3.5 percent month-on-month as both machinery investment and
transportation equipment investment increased. The index rose 3.0 percent year-on-year.
(Percentage change from previous quarter)

2012
Annual Annual
Facility investment index

Q1

2013
Q2

Q3

2014
Q4

Q1

Q2

Jun

Jul

-2.8

-1.3

-3.1

1.1

5.0

5.9

-5.2

2.2

-1.2

3.5

-13.1

-4.0

2.7

10.4

5.9

6.2

2.5

3.0

- Machinery

-2.7

-2.6

-3.5

2.9

4.5

7.3

-8.6

1.5

-2.4

0.9

- Transportation equipment

-3.0

2.3

-2.0

-4.0

6.4

2.5

4.7

3.4

2.1

9.0

(y-o-y)

1. Preliminary
Source: Statistics Korea

EB 9 .indd 11

14. 9. 25. 6:03

T h e G r e e n B o o k : Current Economic Trends


Facility investment by type
Source: The Bank of Korea (national accounts)
60

(y-o-y, %)

50
40
30
20
10
0
-10
-20
-30

12

-40
2004.Q1

2005.Q1

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

Transportation equipment

2014.Q1

Machinery

E c o n o m i c B u l le t i n

Facility investment is expected to slow down, due to declines in business sentiment and domestic machinery
orders.
Business survey index for manufacturing sector (Bank of Korea)
78 (Dec 2013) > 79 (Jan 2014) > 81 (Feb) > 85 (Mar) > 86 (Apr) > 86 (May) > 81 (Jun) >78 (Jul) > 75 (Aug) > 74 (Sep)

Leading indicators of facility investment


Sources: Statistics Korea (machinery orders), Korea International Trade Association (machinery imports)
10

(trillion won)

(y-o-y, %)

60
50
40

30

20
10

-10
-20

-30

-40
-50

2
2004.Q1 2005.Q1

2006.Q1

Machinery orders (left)

EB 9 .indd 12

70

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

Machinery imports (right)

14. 9. 25. 6:03

(Percentage change from same period in previous year)

2012
Annual Annual
Domestic machinery orders

-13.9

(q-o-q, m-o-m)

6.7

-Public

-11.0

20.6

-Private

Q1
-11.4

2013
Q2
8.8

6.8

3.9

-47.0

94.2

Q3

2014
Q2
Jun

Q4

Q1

2.2

32.4

17.9

-6.9

27.7

-2.8

-9.6

3.3

0.6

-9.7 129.7 184.6

-45.0

-56.7

-75.4
11.3

4.4

Jul

5.6

-4.8

-14.2

5.2

-6.1

4.0

3.8

22.1

4.1

9.6

13.5

Machinery imports

-3.0

6.5

-11.8

-2.1

6.8

13.2

2.3

11.2

7.0

8.7

Average manufacturing operation ratio

78.5

76.2

77.3

75.9

75.1

76.6

77.2

76.3

76.4

78.0

Facility investment adjustment pressure

-0.7

-1.4

-2.6

-1.6

-1.7

0.1

-0.6

-0.9

-0.8

2.2

1. Preliminary 2. Production growth rate minus production capacity growth rate in the manufacturing sector (%p)
Sources: Statistics Korea, Korea International Trade Association

13
Construction investment (preliminary GDP) in the
second quarter of 2014 rose 0.4 percent quarteron-quarter and 0.2 percent year-on-year.

(Percentage change from previous quarter)

2012
Annual
Q4
Construction investment

Annual

Q1

2013
Q2

2014
Q3

Q4

Q1

Q2

-3.9

-2.4

6.7

6.5

4.6

0.2

-5.2

5.1

0.4

-6.2

1.9

9.8

8.8

5.4

4.3

0.2

- Building construction

-1.6

-1.6

8.8

5.4

7.2

0.5

-4.0

5.1

2.3

- Civil engineering works

-7.1

-3.6

3.7

8.1

1.0

-0.1

-6.9

5.1

-2.5

(y-o-y)

The Green Book

4. Construction
investment

1. Preliminary 2. National accounts


Source: The Bank of Korea

Construction investment
Source: The Bank of Korea (national accounts)
15

(%)

10

-5

-10
2004.Q1

2005.Q1

2006.Q1

Construction investment (q-o-q)

EB 9 .indd 13

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

Construction investment (y-o-y)

14. 9. 25. 6:03

T h e G r e e n B o o k : Current Economic Trends


The value of construction completed (constant) in July declined 1.4 percent month-on-month as declines in
building construction offset gains in civil engineering works. The index fell 0.6 percent year-on-year.
(Percentage change from previous period)

Construction completed (constant)


(y-o-y)
- Building construction
- Civil engineering works

2012
Annual Annual
-5.0
10.1
-6.6
14.8
-3.0
4.3

2013
Q2
6.3
15.0
7.7
4.6

Q1
3.5
4.4
5.6
1.0

Q3
-0.1
10.5
0.4
-0.9

Q4
-0.7
9.7
2.9
-5.5

2014
Q2
Jun
0.3
2.8
0.1
-1.4
2.9
1.7
-4.0
4.7

Q1
1.5
6.5
6.0
-5.0

Jul
-1.4
-0.6
-3.2
1.7

1. Preliminary
Source: Statistics Korea

Construction investment by type


Source: The Bank of Korea (national accounts)

14

40

(y-o-y, %)

30
20

E c o n o m i c B u l le t i n

10
0
-10
-20
-30
2004.Q1

2005.Q1

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

Residential buildings

Building construction

2013.Q1

2014.Q1

Civil engineering works

The construction investment outlook is mixed, as construction orders and the building permit area have been
rising since the fourth quarter of 2013, while unsold houses have also been increasing.
Unsold houses (thousands, Ministry of Land, Infrastructure and Transport)
64 (Oct 2013) > 64 (Nov) > 61 (Dec) > 59 (Jan 2014) > 52 (Feb) > 48 (Mar) > 46 (Apr) > 49 (May) > 50 (Jun) > 51 (Jul)
New apartment supplies (thousands, Ministry of Land, Infrastructure and Transport)
50 (Oct 2013) > 44 (Nov) > 12 (Dec) > 6 (Jan 2014) > 11 (Feb) > 24 (Mar) > 39 (Apr) > 39 (May) > 29 (Jun) > 18 (Jul) > 18 (Aug)
(Percentage change from same period in previous year)

Construction orders (current value)


(q-o-q, m-o-m)
- Building construction
- Civil engineering works
Building permit area

2012
Annual
-6.2
-4.7
-9.1
-0.5

Annual
-15.3
-13.4
-19.2
-7.3

Q1
-40.8
-2.2
-34.0
-50.4
-12.4

2013
Q2
-29.5
0.3
-29.6
-29.4
-14.6

Q3
-10.6
16.8
-10.8
-10.0
-3.4

Q4
22.4
2.9
17.9
33.4
-0.2

Q1
15.5
-1.4
10.7
24.4
18.4

2014
Q2
Jun
24.6
24.7
9.4
6.4
44.6
25.1
-11.2
23.2
21.6
24.3

Jul
21.5
7.8
21.5
21.4
9.0

1. Preliminary
Sources: Statistics Korea, Ministry of Land, Infrastructure and Transport

EB 9 .indd 14

14. 9. 25. 6:03

Leading indicators of construction investment


Sources: Statistics Korea (construction orders), Ministry of Land, Infrastructure and Transport (building permit area)
340

(y-o-y, %)

290
240
190
140
90
40
-10
-60
-110
2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

Construction orders

2014.1

Building permit area

Export growth by item (y-o-y, %)


8.7 (mobile phones), 9.5 (steel), 6.7 (petroleum products),
5.1 (semiconductors), 7.5 (vessels), -16.9 (automobiles)

Exports in August decreased 0.1 percent (preliminary)


year-on-year to US $46.28 billion.

The Green Book

5. Exports and
Imports

15

Export growth by region (y-o-y, %)


7.1 (US), 9.7 (EU), -8.0 (Japan), -4.9 (ASEAN countries),

Exports fell due to fewer days worked (down 1 day) ,


auto worker strikes, summer vacations in the auto
industry and a decline in shipments to China.

-3.8 (China)

Average daily exports, an indicator adjusted to days


worked, was up 4.4 percent year-on-year, posting
US $2.06 billion in August.

Shipments of most export items, such as mobile


phones and semiconductors, increased, but
automobile exports declined sharply. By region,
exports to the US and EU rose but exports to China,
Japan and the ASEAN countries fell.

Average daily export growth (y-o-y, %)


8.8 (Jan 2014) > -3.3 (Feb) > 1.5 (Mar) > 9.0 (Apr) > 5.9
(May) > 4.9 (Jun) > 5.4 (Jul) > 4.4 (Aug)
(US $ billion)

2013
Exports
(y-o-y, %)
Average daily exports

2014

Annual

Q1

Q2

Q3

Q4

Jul

Q1

Q2

Jul

Aug

559.63

135.32

141.16

136.79

146.37

46.31

137.59

145.75

48.29

46.28

2.1

0.3

0.7

2.8

4.7

7.6

1.7

3.3

5.4

-0.1

2.05

2.02

2.06

2.00

2.11

1.97

2.07

2.19

1.93

2.06

1. Preliminary
Source: Korea Customs Service

EB 9 .indd 15

14. 9. 25. 6:03

T h e G r e e n B o o k : Current Economic Trends


Exports by item
Sources: Korea Customs Service, Ministry of Trade, Industry and Energy (export and import trends)
140
120

(y-o-y, %)

100
80
60
40
20
0
-20
-40
-60
-80
2004.1

2005.1

2006.1

2007.1

Export growth rate

16

2008.1

2009.1

2010.1

Semiconductors

2011.1

2012.1

2013.1

2014.1

Automobiles

Steel

Imports in August rose 3.1 percent (preliminary) year-on-year to US $42.87 billion.

E c o n o m i c B u l le t i n

Although capital goods imports declined, imports of commodities rose due to an increase in supply, and
consumer goods surged, led by automobiles and clothes.
Import growth by category (y-o-y, %)
6.0 (commodities), -8.5 (capital goods), 16.5 (consumer goods)
(US $ billion)

2013
Imports

2014

Annual

Q1

Q2

Q3

Q4

Aug

Q1

Q2

Jul

Aug

515.58

129.73

126.76

126.03

133.06

41.59

132.38

130.76

45.90

42.87

(y-o-y, %)

-0.8

-2.9

-2.8

0.3

2.5

1.2

2.0

3.2

5.8

3.1

Average daily imports

1.89

1.94

1.85

1.84

1.91

1.77

1.99

1.97

1.84

1.91

1. Preliminary
Source: Korea Customs Service

Imports by item
Sources: Korea Customs Service, Ministry of Trade, Industry and Energy (export and import trends)
80

(y-o-y, %)

60
40
20
0
-20
-40
-60
-80
2004.1

2005.1

Import growth rate

EB 9 .indd 16

2006.1

2007.1

2008.1

2009.1

Commodities

2010.1

2011.1

2012.1

2013.1

2014.1

Capital goods

14. 9. 25. 6:03

Exports and imports


Sources: Korea Customs Service, Ministry of Trade, Industry and Energy (export and import trends)
70

(US $ billion)

60
50
40
30
20
10
0
-10
2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

Trade balance

2010.1

2011.1

2012.1

2013.1

2014.1

Exports

Imports

(US $ billion)

2013
Trade balance

2014

Annual

Q1

Q2

Q3

Q4

Aug

Q1

Q2

Jul

Aug

44.05

5.59

14.40

10.76

13.30

4.72

5.21

14.98

2.40

3.41

1. Preliminary
Source: Korea Customs Service

The Green Book

The trade balance (preliminary) in August remained in the black for the 31th consecutive month, posting a
surplus of US $3.41 billion.

17

6. Mining and manufacturing production


Mining and manufacturing production increased
1.2 percent month-on-month in July, as gains in
automobiles and refined petroleum offset declines
in semiconductors & parts and electrical equipment.
Compared to the same period in the previous year,
the index was up 3.5 percent.
Compared to the previous month, production of
automobiles (up 10.7%), refined petroleum (up
7.5%) and other transportation equipment (up
4.3%) rose, while semiconductors & parts (down
4.9%) , electrical equipment (down 4.8%) and

EB 9 .indd 17

petroleum products (down 1.2%) fell.


Compared to a year ago, production of automobiles
(up 20.3%) , processed metals (up 8.4%) and
primary metals (up 4.4%) rose, while audio-visual
communications equipment (down 4.2%) and other
transportation equipment (down 3.0%) declined.
The manufacturing inventory-shipment ratio rose
3.4 percentage points month-on-month to 122.8
percent as inventories rose 2.8 percent and
shipments fell 0.1 percent.

14. 9. 25. 6:03

T h e G r e e n B o o k : Current Economic Trends


Industrial production
Source: Statistics Korea (industrial activity trends)
50
(%)
40
30
20
10
0
-10
-20
-30
2004.1

18

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

Industrial production (m-o-m)

2013.1

2014.1

Industrial production (y-o-y)

E c o n o m i c B u l le t i n

(Percentage change from previous period)

2013
Q2
Q3

Q4

Jun

Q1

2014
Q2 Jun

-0.9

1.9

-0.6

0.3

-1.0

Jul

Annual

Q1

Mining production (q-o-q, m-o-m)

-0.5

(y-o-y)

0.3

-0.8

0.0

0.2

1.7

1.4

0.7

0.3

0.4

3.4

Manufacturing production (q-o-q, m-o-m)

-0.4

-1.0

0.0

2.1

-0.6

0.4

-1.1

2.7

1.2

0.3

-0.8

0.0

0.1

1.8

1.4

0.6

0.2

0.2

3.5

0.4

-0.3

-0.6

-0.1

1.7

-1.2

-0.1

-0.6

-2.0

-0.1

-1.4

-1.7

-1.1

1.6

1.7

0.1

0.0

-0.3

-2.5

1.1

2.3

1.6

-0.2

-2.0

1.6

-2.8

-0.1

-0.8

1.9

-1.4

5.7

2.4

3.2

-0.5

0.1

0.6

2.8

Mining and
(y-o-y)
manufacturing
Shipment
activity
- Domestic demand
- Exports

0.1

2.6

1.1

Inventory

5.0

-0.6

-2.1

Manufacturing Average operation ratio (%)


activity
Production capacity4

76.2

77.3

75.9 75.1 76.5 74.8 77.2 76.3 76.4 78.0

1.7

1.8

1. Preliminary

2. Including mining, manufacturing, electricity and gas industry

3. End-period

 4. Percentage change from same period in previous year

1.6

1.8

1.7

1.9

1.2

1.1

1.0

1.3

Source: Statistics Korea

Inventories of automobiles (up 15.6%) and primary metals (up 5.2%) rose, while petroleum products (down
3.8%) and nonmetallic minerals (down 10.4%) declined.
Shipments of automobiles (up 13.1%) and mechanical equipment (up 2.3%) rose, while semiconductors &
parts (down 2.2%) and primary metals (down 1.6%) fell.
The average operation ratio of the manufacturing sector rose 1.6 percentage points month-on-month to
78.0 percent.

EB 9 .indd 18

14. 9. 25. 6:03

Shipment and inventory


Source: Statistics Korea (industrial activity trends)
10
8

(m-o-m, %)

6
4
2
0
-2
-4
-6
-8
-10
-12
2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

Shipment growth

2014.1

Inventory growth

19

Average manufacturing operation ratio


Source: Statistics Korea (industrial activity trends)

The Green Book

100
90
80
70
60
50
2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Mining and manufacturing production may have slowed in August, due to summer vacations, fewer days
worked and auto worker strikes.

7. Service sector activity


Service output in July declined 0.4 percent month-on-month, led by wholesale & retail, publishing &
communications services and financial & insurance services. Compared to the same period of the previous
year, service output increased 2.7 percent.
Wholesale & retail (down 1.6%, m-o-m), publishing & communications services (down 3.6%, m-o-m), financial
& insurance services (down 1.4%, m-o-m) and professional, scientific & technical services (down 2.9%,
m-o-m) fell after rising for the last two months.
Hotels & restaurants (up 3.8%, m-o-m) and entertainment, cultural & sports services (up 5.0%, m-o-m)
remained robust.

EB 9 .indd 19

14. 9. 25. 6:03

T h e G r e e n B o o k : Current Economic Trends


Service output is likely to improve in August, as sales at department stores and large discount stores recovered,
stock transactions increased and box office ticket sales rose.
Average daily stock transactions (trillion won)
5.5 (Jan 2014) > 5.4 (Feb) > 5.6 (Mar) > 5.6 (Apr) > 5.5 (May) > 5.4 (Jun) > 6.0 (Jul) > 6.3 (Aug)
Box office ticket sales (billion won)
170 (Jan 2014) > 140 (Feb) > 100 (Mar) > 70 (Apr) > 130 (May) > 130 (Jun) > 160 (Jul) > 250 (Aug)

Service sector activity


Source: Statistics Korea (industrial activity trends)
20

(%)

15

20

10
5

E c o n o m i c B u l le t i n

0
-5
-10
2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

Service sector activity (m-o-m)

2013.1

2014.1

Service sector activity (y-o-y)

(Percentage change from previous period)

Weight

2012
2013
Annual Q4 Annual Q1 Q2

Q4

Q1

2014
Q2 Jun

0.2

0.9

0.5

0.0

1.7 -0.4

Jul

Service activity index

100.0

1.6

0.1

1.4

0.2

- Wholesale & retail

21.6

0.8

0.3 -0.2

-0.8

0.1 -0.1

0.6

0.1 -0.4

0.8 -1.6

- Transportation services

8.5

1.2

-0.1

1.1

0.7

0.1 -1.0

0.6

- Hotels & restaurants

7.2 -1.2

-2.4

0.4

0.1

0.6

- Publishing & communications services

8.4

3.0

-0.3

1.9

0.6 -1.0

14.7

- Financial & insurance services

0.4

Q3

1.1 -0.3

0.9

0.7

2.7 -0.9 -1.6 -2.2

3.3

3.8

0.9

3.4 -2.0

0.8

4.7 -3.6

2.8

1.0

0.5

-0.1 -1.1 -0.5

0.6

2.7

1.3

2.6 -1.4

- Real estate & renting

5.3 -4.8

0.7

2.5

-2.2

7.4 -3.6

3.6 -3.2

7.6

0.0 -3.0

- Professional, scientific & technical services

5.6

3.7

-0.2

3.3

0.2

4.9 -2.9

0.7

0.4

2.8

4.3 -2.9

- Business services

3.3

3.5

0.2

2.2

1.6 -0.4

1.6

0.4

1.6 -0.5 -0.4

0.4

- Education services

10.9

0.9

0.8

0.8

0.8 -1.0

1.2

0.7

1.1 -2.2

0.2

1.4

- Healthcare & social welfare services

7.5

6.7

0.7

5.0

0.8

1.1

2.5

1.6

1.5

0.5

0.8

0.2

- Entertainment, cultural & sports services

2.9

2.8

-3.0 -0.5

1.7

0.6

- Membership organizations & personal services

3.6 -1.4

- Sewerage & waste management

0.6 -0.6

0.0

5.3

-4.3 -0.4

0.2 -0.2

1.4 -6.8

2.2

5.0

3.1 -0.7

3.5

0.2

0.1 -3.4 -1.9

8.5

0.5

0.9

1.2

0.2 -1.4

2.1

0.6

6.0

1. Preliminary
Source: Statistics Korea

EB 9 .indd 20

14. 9. 25. 6:03

July 2014 service output by business


Source: Statistics Korea (industrial activity trends)
12

(y-o-y, %)

10

Financial &
insurance services

8
6

Professional,
scientific &
technical services

Hotels &
restaurants

Entertainment,
cultural &
sports services
Education
services

Wholesale
& retail

Sewerage &
waste
management

0
Total index

-2

Transportation
services

-4

Publishing &
communications
services

Real estate
& renting

Business
services

Health &
social welfare
services

Membership
organizations &
personal services

-6
-8
-10
-12

21

The number of workers on payroll in July increased by 505,000 from a year earlier to 25,980,000 and the
employment rate rose 0.7 percentage points to 61.1 percent.
By industry, employment grew faster in services and manufacturing.

The Green Book

8. Employment

By employment status, the number of regular workers continued to increase, while nonwage workers,
such as the self-employed, decreased.

Number of persons employed and employment growth


Source: Statistics Korea (employment trends)
1,000

(thousands)

(millions)

27
26

1,000

26
800

25
25

600

24

400

24

200

23
23

22
-200

22

-400

21

2004.1

2005.1

2006.1

Employment growth (y-o-y, left)

EB 9 .indd 21

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Number of employed (seasonally adjusted, right)

14. 9. 25. 6:03

T h e G r e e n B o o k : Current Economic Trends


Employment rate
Source: Statistics Korea (employment trends)
62

(%)

61
60
59
58
57
56

2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

Original data

2014.1

Seasonally adjusted rate

22
E c o n o m i c B u l le t i n

2010 2011
2012
Annual Annual Annual Q4 Annual Q1
Number of employed (millions)

2013
Q2 Q3

Q4

Jul

Q1

2014
Q2 Jun Jul

23.83 24.24 24.68 24.80 25.07 24.18 25.33 25.41 25.35 25.47 24.91 25.79 25.88 25.98

Employment rate (%)

58.7 59.1 59.4 59.4 59.5 57.7 60.2 60.3 60.0 60.4 58.8 60.8 60.9 61.1

(Seasonally adjusted)

58.7 59.1 59.4 59.2 59.5 59.2 59.4 59.7 59.9 59.5 60.4 59.9 59.8 60.1

Employment growth (y-o-y, thousands)

323 415 437 342 386 257 324 421 541 367 729 464 398

505

(Excluding agriculture, forestry & fisheries)

405 440 451 344 394 266 351 402 556 364 717 518 474

616

- Manufacturing

191

63

14 140

191

33

-2

22 -40

- Construction

79 119 122

53 123 136 165

-9

11

57

- Services

200 386 416 236 318 199 212 354 507 283 570 387 304

388

- Agriculture, forestry & fisheries

-82

- Wage workers

517 427 315 303 483 329 472 526 604 503 711 485 430

532

Regular workers

697 575 436 469 615 554 638 632 637 661 606 478 462

351

-34

Temporary workers

-2

-9 -27

19 -15

78

235

-37 -73

3 -42 -35 -61

31 -111 -110

-54

- Nonwage workers

-194

-11 121

39

-97 -71 -148 -105 -63 -136

19 -22 -32

-27

Self-employed workers

-118

1 124

33

-67 -28 -104 -83 -54 -113

-7 -14

-7

-17

- Male

181 238 234 172 186 123 179 179 262 166 373 228 195

287

- Female

142 177 203 170 200 135 145 242 279 202 357 236 203

218

- 15 to 29

-43

-35

-36 -80

-50 -117 -88 -41

42

107

- 30 to 39

-4

-47

-31 -10

-21 -15

-6 -42 -25

16

29

57

- 60 or more

-3

22

12

2 -98

12 -54 -76 -111

-70 -120 -57

11

-96 -152 -169 -65

12

-146

- 50 to 59

-2 -109

-8

27

Daily workers

- 40 to 49

-78

-14

-6

49

23

-25

-19 -64

26

46 -102

8 -34 -42 -49


-6

30

53

31

74 118

97

99

53

13

294 291 270 220 254 196 254 279 285 285 323 227 181

34

203

47 149 222 215 181 181 156 187 200 201 218 192 187

179

Source: Statistics Korea

EB 9 .indd 22

14. 9. 25. 6:03

Employment by industry
Source: Statistics Korea (employment trends)
100
80
71.0 70.8 70.3 69.7 69.2 69.1 69.3 69.2 69.0 68.7 69.0 70.4 70.9 71.1 70.2 69.4 69.2 69.1 69.4 69.6 69.4 69.1 69.7 70.8 71.1 71.2 70.6 69.7 69.4 69.3 69.6

60
40

7.2 7.1 7.2 7.2 7.2 7.2 7.1 7.1 7.1 7.3 7.2 7.2 6.9 6.7 6.9 7.1 7.1 7.1 7.0 6.9 7.0 7.1 7.0 7.0 6.8 6.7 6.8 6.9 7.1 7.1 7.1

20

17.0 17.1 16.6 16.3 16.2 16.3 16.4 16.5 16.6 16.7 16.9 17.1 17.4 17.3 16.9 16.7 16.4 16.4 16.4 16.3 16.4 16.5 16.7 17.1 17.3 17.2 17.0 16.7 16.8 16.8 16.8
4.4 4.7 5.6 6.5 7.0 7.0 6.8 6.8 6.8 6.9 6.5 4.9 4.3 4.6 5.6 6.3 6.7 6.9 6.7 6.8 6.8 6.9 6.2 4.7 4.4 4.5 5.3 6.1 6.4 6.5 6.2

2012.1 2

Services

9 10

11 12 2013.1 2 3

Construction

10 11 12 2014.1 2

Manufacturing

Agriculture, forestry & fisheries

Employment by status of workers


Source: Statistics Korea (employment trends)
100 4.5 4.5 4.8 5.1 5.4 5.4 5.3 5.3 5.4 5.3 5.2 4.5 4.2 4.2 4.7 5.0 5.0 5.2 5.1 5.2 5.2 5.3 5.1 4.3 4.2 4.3 4.6 4.8 5.0 5.0 5.0
80

23.1 23.1 23.4 23.4 23.3 23.2 23.4 23.3 23.2 23.1 22.9 22.7 22.7 22.8 23.0 22.8 22.6 22.5 22.6 22.7 22.5 22.4 22.2 21.9 22.1 22.0 22.3 22.2 22.1 22.1 22.1

20.5 20.5 20.6 20.6 20.5 20.3 20.2 19.9 19.8 19.8 19.9 20.0 19.9 19.7 19.5 19.5 19.5 19.5 19.6 19.2 19.4 19.4 19.5 19.5 19.2 19.4 19.6 19.7 19.7 19.5 20.1

40
20

45.4 45.4 44.9 44.3 44.0 44.4 44.4 45.1 45.2 45.1 45.2 46.2 46.9 47.3 47.0 46.3 46.2 46.1 46.4 46.8 46.7 46.5 46.9 47.8 48.3 48.2 47.8 47.3 47.1 47.2 46.8

0
2012.1 2

Unpaid family workers

10

11 12 2013.1 2

Self-employed workers

Daily workers

10

11 12 2014.1 2

Temporary workers

The Green Book

6.5 6.5 6.3 6.6 6.8 6.7 6.7 6.4 6.4 6.7 6.8 6.6 6.2 6.0 6.0 6.5 6.7 6.7 6.3 6.1 6.3 6.5 6.4 6.4 6.3 6.0 5.7 6.0 6.1 6.1 6.0
60

23

Regular workers

The number of unemployed persons in July increased by 84,000 year-on-year to 910,000, and the
unemployment rate rose 0.3 percentage points to 3.4 percent. The unemployment rate rose in all age groups.

Unemployment rate
Source: Statistics Korea (employment trends)
6
(%)

2
2004.1

2005.1

Original data

EB 9 .indd 23

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Seasonally adjusted rate

14. 9. 25. 6:03

T h e G r e e n B o o k : Current Economic Trends


2010 2011
2012
2013
Annual Annual Annual Q4 Annual Q1 Q2 Q3 Q4 Jul
Number of unemployed (thousands)

24

Q1

2014
Q2 Jun Jul

920

855

820

722 807

907 812 777 733 828 1,031 977 949 912

Unemployment growth (y-o-y, thousands)

31

-65

-35

-18 -13

-40 -29

11

33

- Male

-7

-48

-26

-13

-6

-7 -20

11

-7

28

- Female

38

-17

-9

-6

-7

-4

18

Unemployment rate (%)

3.7

3.4

3.2

2.8 3.1

3.6 3.1 3.0 2.8 3.1

4.0 3.7 3.5 3.4

(Seasonally adjusted)

3.7

3.4

3.2

3.0 3.1

3.2 3.1 3.1 3.0 3.2

3.5 3.7 3.6 3.4

-15 to 29

8.0

7.6

7.5

7.0 8.0

8.4 7.9 7.9 7.9 8.3

9.8 9.4 9.5 8.9

- 30 to 39

3.5

3.4

3.0

2.7 3.0

3.3 3.0 2.9 2.6 3.0

3.2 3.4 3.3 3.2

- 40 to 49

2.5

2.1

2.0

1.8 2.0

2.1 2.1 1.9 1.7 2.1

2.3 2.4 2.1 2.2

-33

-9

125 165 136


40

84

62

42

-3

84 103

95

87

- 50 to 59

2.5

2.1

2.1

1.8 1.9

2.3 1.8 1.8 1.5 1.9

2.2 2.3 2.3 2.1

- 60 or more

2.8

2.6

2.4

1.6 1.8

3.4 1.6 1.2 1.4 1.2

4.4 1.9 1.7 1.6

Source: Statistics Korea

E c o n o m i c B u l le t i n

The economically inactive population in July was down 206,000 from a year earlier to 15,640,000, while the
labor force participation rate rose 0.8 percentage points to 63.2 percent.
The number of those economically inactive due to old age (up 94,000, y-o-y) and disabilities (up 21,000, y-o-y)
increased, while those due to education (down 111,000, y-o-y), rest (down 71,000, y-o-y) , and childcare (down
56,000, y-o-y) decreased.

Labor force participation rate


Source: Statistics Korea (employment trends)
65

(%)

64
63
62
61
60
59
58
2004.1

2005.1

Original data

EB 9 .indd 24

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Seasonally adjusted rate

14. 9. 25. 6:03

2010 2011
2012
Annual Annual Annual Q4 Annual Q1

2013
Q2 Q3

Q4

Jul

Q1

2014
Q2 Jun Jul

Economically inactive population (millions) 15.84 15.95 16.08 16.26 16.22 16.83 15.91 15.98 16.17 15.84 16.40 15.69 15.67 15.64
Labor force participation rate (%)

61.0 61.1 61.3 61.1 61.5 59.9 62.2 62.1 61.7 62.4 61.3 63.1 63.1 63.2

(Seasonally adjusted)
Growth in economically inactive
population (y-o-y, thousands)

61.0 61.1 61.3 61.1 61.5 61.2 61.3 61.6 61.7 61.5 62.6 62.2 62.1 62.3
143

112

- Childcare

-125

-5

- Housework

201

101

123 126

-3 143

- Education

12

-51

-12

77 118 147

88 -44 152 -76 -68 -117 -111

- Old age

80

-45

148 186

54 154

32

21

-56

182

-53 -125

-7 -106

44

12

21 -19 -197 -90

- Rest

128 244
-2

-3

39

141 336 242


1

10

78 -91 116 -433 -226 -141 -206


9 -14

24 -29 -57 -59

-56

36 -80 -112 -83 -230 -127 -64

-47

22

81 113 113
-1

94
-71

Source: Statistics Korea

25
The Green Book

9. Financial markets
9.1 Stock market
The KOSPI in August fell 7.6 points to 2,069 points from 2,076 points in the previous month. The KOSPI fell
earlier in the month due to increasing concerns over Ukraine and Iraq, but later gained some ground as
concerns over an early interest rate hike in the US eased.

Stock prices
2,200
2,000

(monthly average)

1,800
1,600
1,400
1,200
1,000
800
600
400
200
2004.1

KOSPI

EB 9 .indd 25

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

KOSDAQ

14. 9. 25. 6:03

T h e G r e e n B o o k : Current Economic Trends


(Closing rate)

Jul 2014

KOSPI
Aug 2014

Change

Stock price index (points)

2,076.1

2,068.5

Market capitalization (trillion won)

1,242.4

Average daily trade value (trillion won)


Foreign stock ownership (%, %p)

Jul 2014

KOSDAQ
Aug 2014

Change

-7.6 (-0.4%)

536.3

570.2

33.9 (6.3%)

1,238.9

-3.5 (-0.3%)

130.6

139.2

8.6 (6.6%)

4.0

4.1

0.1 (2.5%)

2.0

2.2

0.2 (10.0%)

35.9

35.5

-0.4 (-1.1%)

10.7

11.0

0.3 (2.8%)

1. Change from the end of the previous month


Source: Korea Exchange

9.2 Exchange rate


26
E c o n o m i c B u l le t i n

The dollar-won exchange rate in August fell 13.9 won to 1,014.0 won from 1,027.9 won at the end of July.
Despite the Bank of Koreas decision to cut its benchmark interest rate (2.50% > 2.25%), as well as talks
over an early interest rate hike in the US, the dollar-won exchange rate declined due to inflows of portfolio
investment funds.
The 100 yen-won exchange rate declined from 1,000.6 won in July to 976.7 won in August, as the yen remained
weak due to diverging monetary policies between the US and Japan.

(Closing rate)

2008
Dec

2009
Dec

2010
Dec

2011
Dec

2012
Dec

2013
Dec

Jul

2014
Aug

Change

Dollar-Won

1,259.5

1,164.5

1,134.8

1,151.8

1,070.6

1,055.4

1,027.9

1,014.0

4.1

100 Yen-Won

1,396.8

1,264.5

1,393.6

1,481.2

1,238.3

1,002.3

1,000.6

976.7

2.6

1. Appreciation from the end of the previous year (%); the exchange rate is based on the closing price at 3:00 p.m., local time.

Foreign exchange rates


1,800

(month-end, \)

1,600
1,400
1,200
1,000
800
600
2004.1

2005.1

Dollar-Won

EB 9 .indd 26

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

100 Yen-Won

14. 9. 25. 6:03

Daily foreign exchange rate trend


1,800

(\)

1,600

1,400

1,200

1,000
800
2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Dollar-Won

100 Yen-Won

27

9.3 Bond market

Interest rates
Source: The Bank of Korea
10

(monthly average, yearly, %)

The Green Book

3-year Treasury bond yields fell from 2.52 percent in July to 2.51 percent in August. Treasury bond yields,
which had been rising due to diminishing expectations for additional interest rate cuts, inched down as longterm interest rates in major countries fell.

9
8
7
6
5
4
3
2
1
2004.1

2005.1

2006.1

2007.1

2008.1

Overnight call rate (daily)

2009.1

2010.1

2011.1

2012.1

3-yr Treasury bond yield

2013.1

2014.1

3-yr corporate bond yield

(Closing rate, %)

2009
Dec

2010
Dec

2011
Dec

2012
Dec

2013
Dec

May

Jun

2014
Jul

Aug

Change

Call rate (1 day)

2.01

2.51

3.29

2.77

2.52

2.49

2.49

2.49

2.24

-25

CD (91 days)

2.88

2.80

3.55

2.89

2.66

2.65

2.65

2.65

2.40

-25

Treasury bonds (3 yrs)

4.44

3.38

3.34

2.82

2.86

2.82

2.68

2.52

2.51

-1

Corporate bonds (3 yrs)

5.56

4.27

4.21

3.29

3.29

3.24

3.10

2.92

2.88

-4

Treasury bonds (5 yrs)

4.98

4.08

3.46

2.97

3.23

3.04

2.88

2.76

2.74

-2

1. Basis point, changes from the previous month

EB 9 .indd 27

14. 9. 25. 6:03

T h e G r e e n B o o k : Current Economic Trends

9.4 Money supply &


money market

M2 (monthly average) in June rose 6.1 percent from


a year earlier. Money supply in the government
sector fell as loans to the public sector declined,
but money supply in the overseas sector rose due
to inflows of portfolio investment funds.

(Percentage change from same period in previous year, average)

28

2009
Annual

2010
Annual

2011
Annual

2012
Annual

2013
Annual

Apr

May

2014
Jun

Jun

M1

16.3

11.8

6.6

3.8

9.5

9.1

10.0

9.3

532.0

M2

10.3

8.7

4.2

5.2

4.8

5.5

6.0

6.1

1,999.4

Lf

7.9

8.2

5.3

7.8

6.9

6.2

6.6

6.7

2,703.1

2011.1

2012.1

2013.1

2014.1

1. Balance at end June 2014, trillion won


2. M1 excluding corporate MMFs and individual MMFs while including CMAs

E c o n o m i c B u l le t i n

3. Liquidity aggregates of financial institutions (mostly identical with M3)

Total money supply


Source: The Bank of Korea
40

(y-o-y, monthly average balance, %)

30

20

10

-10

-20
2004.1

2005.1

Reserve money

2006.1

2007.1

2008.1

2009.1

M1

2010.1

Lf

Bank deposits fell sharply in July, led by instant access deposits (10.7 trillion won > -10.9 trillion won) , as
corporations withdrew funds for value-added tax payments.
Asset management company (AMC) deposits surged, led by money market funds (MMF) (-4.0 trillion won >
6.5 trillion won) , due to the inflow of the funds that had been withdrawn the previous month to raise banks
BIS ratios at the end of the first half.

EB 9 .indd 28

14. 9. 25. 6:03

(Change from previous period, end-period, trillion won)

2009
Dec

2010
Dec

2011
Dec

2012
Dec

2013
Dec

Apr

May

2014
Jun

Jul

Jun

Bank deposits

54.8

36.9

58.9

37.0

41.0

-3.3

13.9

9.3

-8.8

1,198.8

AMC deposits

-27.6

-16.7

-16.6

18.8

17.7

-3.1

6.0

-1.1

11.5

357.8

1. Balance at end June 2014, trillion won

Deposits in financial institutions


Source: The Bank of Korea

30

(y-o-y, end of month balance, trillion won)

20

29
10

-10

-20
2004.1

2005.1

2006.1

2007.1

10. Balance of
payments

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

The Green Book

Koreas current account (preliminary) in July posted a


surplus of US $7.91 billion, staying in the black for 29
consecutive months.
The goods account surplus expanded from US $6.65
billion in June to US $6.86 billion in July, as export
growth exceeded import growth.
Goods exports (US $ billion)
50.28 (Jun 2014) > 53.89 (Jul)
Goods imports (US $ billion)

43.63 (Jun 2014) > 47.03 (Jul)

EB 9 .indd 29

14. 9. 25. 6:03

T h e G r e e n B o o k : Current Economic Trends


U S $0.58 billion to US $0.01 billion due to
improvements in the construction and intellectual
property rights accounts.

Compared to the same period of the previous year,


the goods account surplus contracted by US $1.05
billion as import growth exceeded export growth due
to a rise in consumer goods imports.

Services account (US $ billion, June > July)


Export growth by item (y-o-y, %)

-0.51 > -0.54 (manufacturing), 0.52 > 0.26 (transportation),

5.8 (total), 4.5 (commodities), 4.0 (capital goods), 17.0

-0.48 > -0.55 (travel), 1.33 > 1.61 (construction), -0.59 >

(consumer goods)

-0.02 (intellectual property rights), -0.78 > -0.94 (other


businesses)

Export growth by region (y-o-y, %)


5.4 (total), 24.6 (mobile phones), 22.4 (steel), 20.8

The primary income account surplus contracted


from US $2.23 billion to US $1.49 billion due to a
decrease in dividend income, while the secondary
income account deficit expanded from US $0.38
billion to US $0.43 billion.

(automobiles), 12.4 (petroleum products), 1.0


(semiconductors), -13.7 (vessels)

30

The services account deficit contracted from

E c o n o m i c B u l le t i n

Current account balance


Source: The Bank of Korea (balance of payments trends)
12
10

(US $ billion)

8
6
4
2
0
-2
-4
-6
2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

Services account

Goods account

2014.1

Current account

(US $ billion)

2013

2014
Jun

Annual

Q1

Q2

Q3

Q4

Jul

Q1

Q2

Current account

79.88

10.46

20.80

23.78

24.84

7.99

15.07

24.13

7.92

Jul
7.91

- Goods balance

80.57

12.08

20.00

23.88

24.62

7.91

17.75

26.42

6.65

6.86

- Service balance

-7.93

-3.51

-0.41

-2.06

-1.94

-1.06

-3.62

-1.95

-0.58

-0.01

- Primary income balance

11.42

2.78

1.84

3.16

3.64

1.40

1.91

1.33

2.23

1.49

- Secondary income balance

-4.18

-0.89

-0.62

-1.19

-1.48

-0.26

-0.96

-1.68

-0.38

-0.43

1. Preliminary
Source: The Bank of Korea

EB 9 .indd 30

14. 9. 25. 6:03

The capital and financial account (preliminary) in


July posted a net outflow of US $5.93 billion.
Capital & financial account balance (US $ billion)
-4.48 (Jan 2014) > -6.92 (Feb) > -5.78 (Mar) > -6.24 (Apr)
> -8.13 (May) > -9.84 (Jun) > -5.93 (Jul)

Net outflows of direct investment contracted from


US $2.06 billion to US $1.01 billion as overseas direct
investment declined.
Net outflows of portfolio investment contracted
from US $4.22 billion to US $1.74 billion as foreign

investors equity investment increased.


Net inflows of financial derivatives investment
contracted from US $0.69 billion to US $0.50 billion,
while other investment switched to a net outflow of
US $0.34 billion from a net inflow of US $0.28 billion
as financial institutions increased loans.
The current account in August is expected to
maintain a surplus, helped by the surplus in the
goods account, which resulted from a trade surplus
(US $3.41 billion).

31

Capital & financial account balance


Source: The Bank of Korea (balance of payments trends)

The Green Book

15

(US $ billion)

10
5
0
-5
-10
-15
2004.1

2005.1

Direct investment

2006.1

2007.1

2008.1

Portfolio investment

11. Prices and


international
commodity prices

EB 9 .indd 31

2009.1

2010.1

2011.1

Financial derivatives

2012.1

2013.1

2014.1

Capital & financial account

11.1 Prices
Consumer prices rose 0.2 percent month-onmonth in August, up from 0.1 percent in July.
Compared to the same month of the previous year,
consumer prices rose 1.4 percent, down from 1.6
percent in July.

14. 9. 25. 6:03

T h e G r e e n B o o k : Current Economic Trends


Consumer price inflation

(%)

Aug

Sep

2013
Oct

Nov

Dec

Jan

Feb

Mar

2014
Apr May

Jun

Jul

Aug

Month-on-Month

0.4

0.2

-0.3

0.0

0.1

0.5

0.3

0.2

0.1

0.2

-0.1

0.1

0.2

Year-on-Year

1.5

1.0

0.9

1.2

1.1

1.1

1.0

1.3

1.5

1.7

1.7

1.6

1.4

Source: Statistics Korea

Consumer price inflation


Source: Statistics Korea (consumer price trends)
7
(%)
6
5

32

4
3

E c o n o m i c B u l le t i n

2
1
0
-1
2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

Consumer price inflation (m-o-m)

Agricultural, livestock & fishery product prices


rose 1.5 percent month-on-month (agricultural
products up 3.9%, livestock products down 1.5%,
fishery products down 0.1%) . Vegetable prices
rose due to unfavorable weather conditions, while
the prices of other items stabilized.
Price increases by item (m-o-m, %)
spinaches (73.6), lettuces (50.4), Chinese cabbages (32.9),
pork (-5.2), mackerel (-4.6)

Manufactured product prices fell 0.1 percent from


the previous month. Processed food prices rose 0.1
percent, while petroleum product prices fell 0.9

EB 9 .indd 32

2010.1

2011.1

2012.1

2013.1

2014.1

Consumer price inflation (y-o-y)

percent due to stabilizing international oil prices.


Price increases by item (m-o-m, %)
cereals (6.8), televisions (-2.2), imported cars (-2.0), gasoline (-0.7)

Personal service prices rose 0.3 percent month-onmonth, as travel service prices rose due to summer
holidays. Dining out expenses rose 0.1 percent, and
personal service prices excluding dining out costs
were up 0.5 percent.
Price increases by item (m-o-m, %)
domestic group tour expenses (11.3), overseas group tour
expenses (6.0), condominium fees (8.6)

14. 9. 25. 6:03

Contribution to consumer price inflation


Source: Statistics Korea (consumer price trends)
5

(%p)

4
3
2
1
0
2003

2004

2005

2006

2007

2008

2009

2010

2012

2013

2014

Agricultural, livestock & fishery products

Manufactured products

Housing rents

Public services

Personal services

Public utilities

33
the previous month, fresh food prices rose 4.2
percent.
Fresh food price increases (y-o-y, %)

Price increases for basic necessities (y-o-y, %)


0.6 (Jan 2014) > 0.4 (Feb) > 0.8 (Mar) > 1.0 (Apr) > 1.4 (May)
> 1.4 (Jun) > 1.4 (Jul) > 0.8 (Aug)

Fresh food prices declined 11.8 percent year-onyear, led by vegetables (down 19.1%) . Compared to

-12.9 (Jan 2014) > -12.4 (Feb) > -11.3 (Mar) > -12.0 (Apr) >
-9.2 (May) > -7.7 (Jun) > -8.3 (Jul) > -11.8 (Aug)

The Green Book

Consumer prices for basic necessities rose 0.8


percent year-on-year and 0.1 percent month-onmonth.

Core consumer prices, which exclude oil and


agricultural products, rose 2.4 percent year-on-year
and 0.1 percent month-on-month.

Prices
Source: Statistics Korea (consumer price trends)
16

(y-o-y, %)

13
10
7
4
1
-2
-5
2004.1

2005.1

2006.1

Consumer price inflation

EB 9 .indd 33

2007.1

2008.1

2009.1

Core inflation

2010.1

2011.1

2012.1

2013.1

2014.1

Producer price inflation

14. 9. 25. 6:03

T h e G r e e n B o o k : Current Economic Trends


Core inflation and prices for basic necessities

(y-o-y, %)

2013
2014
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Consumer prices excluding oil and agricultural products 1.5 1.7 1.8 2.0 1.9 1.7 1.7 2.1 2.3 2.2 2.1 2.2

2.4

Consumer prices excluding food and energy

1.3 1.5 1.6 1.7 1.6 1.5 1.4 1.7 1.9 1.8 1.7 1.9

2.1

Consumer prices for basic necessities

1.1 0.2 0.0 0.5 0.5 0.6 0.4 0.8 1.0 1.4 1.4 1.4

0.8

Source: Statistics Korea

The expected annual inflation was unchanged at 2.8 percent, while import prices fell 8.5 percent year-on-year.
Expected inflation (%, over the next 12 months)
2.9 (Dec 2013) > 2.9 (Jan 2014) > 2.9 (Feb) > 2.8 (Mar) > 2.9 (Apr) > 2.8 (May) > 2.8 (Jun) > 2.8 (Jul) > 2.8 (Aug)

34

Import price increases (y-o-y, %, won base)


-3.5 (Dec 2013) > -3.0 (Jan 2014) > -4.8 (Feb) > -4.5 (Mar) > -7.0 (Apr) > -6.8 (May) > -8.8 (Jun) > -8.5 (Aug)

E c o n o m i c B u l le t i n

11.2 International oil and


commodity prices

International oil prices declined in August as risk


premiums associated with tensions in Iraq fell.
Despite geopolitical tensions in the Middle East,
Dubai crude prices continued to fall due to stable
global supply and declining seasonal demand.
Dubai crude (US $/barrel)
104.9 (Aug 1) > 103.9 (Aug 8) > 101.0 (Aug 15) > 100.5 (Aug
22) > 100.2 (Aug 25) > 100.5 (Aug 29)

(US $/barrel, period average)

2011 2012
2013
Annual Annual Annual Sep Oct

Nov

Dec

Jan

Feb

Mar

2014
Apr May

Jun

Jul

Aug

Dubai crude

105.9

109.0

105.3

107.9 105.6 105.5 107.5 104.0 105.0 104.4 104.6 105.6 107.9 106.1 101.9

Brent crude

111.0

111.7

108.7

111.6 109.3 108.0 110.7 107.7 108.9 107.7 107.8 109.4 111.8 107.4 102.6

95.1

93.8

98.0

WTI crude

106.2 100.5

94.0

97.9

94.9 100.7 100.5 102.0 101.8 105.2 102.6

96.3

Source: Korea PDS

EB 9 .indd 34

14. 9. 25. 6:03

International oil prices


Source: Korea National Oil Corporation
160

($/B)

140
120
100
80
60
40
20
0
2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Dubai crude

WTI

35

Gasoline prices (won/liter)


1,850.0 (1st week Aug) > 1,846.1 (2nd week) > 1,841.3 (3rd week) > 1,833.7 (4th week)
(Won/liter, period average)

2011 2012
Annual Annual Annual Sep

2013
Oct

Nov

Dec

Jan

Feb

Mar

2014
Apr May

Jun

Jul

Aug

The Green Book

Domestic gasoline prices continued to fall, as stabilizing domestic oil prices and the strong won were reflected
with a time lag.

Gasoline prices 1,929.3 1,985.8 1,924.5 1,934.6 1,907.3 1,880.0 1,881.1 1,886.4 1,880.7 1,880.8 1,875.9 1,869.5 1,861.7 1,856.7 1,842.0
Diesel prices 1,745.7 1,806.3 1,729.6 1,734.3 1,711.8 1,692.9 1,699.1 1,705.1 1,698.5 1,696.0 1,688.9 1,680.9 1,670.8 1,661.8 1,644.5
Source: Korea National Oil Corporation

Dubai crude prices and import prices


Source: Korea National Oil Corporation
160

($/B)

(thousand won/B)

160

140

140

120

120

100

100

80

80

60

60

40

40

20

20

2004.1

2005.1

2006.1

2007.1

Dubai crude (import prices, won, left)

EB 9 .indd 35

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Dubai international prices (dollar, right)

14. 9. 25. 6:03

T h e G r e e n B o o k : Current Economic Trends


International grain prices declined due to increased production in major production areas and optimistic
estimates as to global production and inventories.
International grain price increases in August (m-o-m, %)
wheat (0.8), soybeans (-3.8), corn (-5.3)

Aluminum, lead and zinc prices rose due to tight supply*, while tin and copper prices fell as demand was
expected to slow down due to the sluggish real estate market in China.
Nonferrous metal price increases in August (m-o-m, %)
aluminum (4.4), lead (2.2), zinc (0.8), tin (-0.4), copper (-1.5), nickel (-2.5)
* Aluminum: Major smelting factories in the US cut production, while demand from car manufacturers has been rising.
Zinc: Major mines in Australia are due to close, and production growth in China slowed.

36
E c o n o m i c B u l le t i n

Reuters index*

(Period average)

2011
2012
Annual Annual Annual
3,062

3,006

2,774

Sep

2013
Oct

2,630

Nov

Dec

Jan

Feb

Mar

2014
Apr May

Jun

Jul

2,655 2,623 2,642 2,574 2,586 2,641 2,650 2,608 2,569 2,548

Aug
2,510

* A weighted average index of 17 major commodities


Source: KOREA PDS

International commodity prices


Sources: Bloomberg (CRB), The Bank of Korea (Reuters Index)
* CRB demonstrates a futures price index of 21 commodities listed on the US Commodity Transaction Market, including
beans and other crops, crude oil and jewelry.
470

4000

430
390

3000

350
310

2000

270
230

1000

190
150

2004.1

2005.1

CRB (left)

EB 9 .indd 36

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Reuters index (right)

14. 9. 25. 6:03

12. Real estate market


12.1 Housing market
Nationwide apartment sales prices in August rose
0.1 percent month-on-month.

(up 0.1%) . Prices in areas excluding the Seoul


metropolitan area rose 0.1 percent. Apartment
prices in the five metropolitan cities and the eight
provinces were up 0.1 percent.
Apartment sales price increase in five metropolitan cities

Apartment sales prices rose in the Seoul


metropolitan area (up 0.1%), which includes Seoul
(up 0.0%), Incheon (up 0.1%) and Gyeonggi Province

(m-o-m, %)
Busan (0.1), Daegu (0.3), Gwangju (0.1), Daejeon (0.1),
Ulsan (0.3)

Nationwide apartment sales prices

(Percentage change from previous period)

2010 2011 2012 2013


Annual Annual Annual Annual Annual

Feb

Mar

2014
Apr

May

Jun

Jul

Aug

0.0

0.0

0.1

1.9

6.9

0.0

0.3

0.9

0.2

0.2

0.2

0.1

0.0

Seoul metropolitan area

-1.7

0.5

-3.0

-1.1

0.7

0.2

0.2

0.3

0.0

-0.1

0.0

0.0

0.1

Seoul

-1.2

0.3

-2.9

-1.4

0.5

0.2

0.2

0.2

0.0

-0.1

-0.1

0.0

0.0

Gangnam

-1.0

0.3

-3.5

-1.1

0.5

0.2

0.2

0.2

-0.1

-0.1

-0.1

0.0

0.0

Gangbuk

-1.4

0.3

-2.3

-1.7

0.6

0.2

0.2

0.2

0.1

0.0

0.0

-0.1

0.1

6.4

15.1

3.1

1.7

1.1

0.3

0.2

0.2

0.1

0.1

0.1

0.1

0.1

2012.1

2014.1

Areas excluding the Seoul


metropolitan area

The Green Book

Nationwide

Jan

37

1. Upscale area of Southern Seoul 2. Northern Seoul


Source: Korea Appraisal Board

Apartment sales prices by region


Source: Korea Appraisal Board
3.0

(m-o-m, %)

2.0

1.0

0.0

-1.0
2009.1

Nationwide

EB 9 .indd 37

2010.1

2011.1

Seoul metropolitan area

2013.1

Areas excluding Seoul metropolitan area

14. 9. 25. 6:03

T h e G r e e n B o o k : Current Economic Trends


Nationwide apartment rental prices in August rose 0.2 percent month-on-month.
Rental prices rose 0.2 percent in the Seoul metropolitan area, and were up 0.1 percent in regions excluding the
Seoul metropolitan area.
Apartment rental price increase in major districts in Seoul (m-o-m, %)
Gangnam (0.1), Seocho (0.2), Songpa (0.0), Gangdong (0.6), Nowon (0.4)

Nationwide apartment rental prices

(Percentage change from previous period)

2010 2011 2012 2013


Annual Annual Annual Annual Annual

38

Jan

Feb

Mar

2014
Apr

E c o n o m i c B u l le t i n

May

Jun

Jul

Aug

Nationwide

7.1

12.3

3.5

4.7

2.2

0.6

0.5

0.5

0.1

0.1

0.1

0.1

0.2

Seoul metropolitan area

6.3

11.0

2.1

6.2

3.0

0.8

0.8

0.7

0.1

0.0

0.1

0.2

0.2

Seoul

6.4

10.8

2.1

6.6

2.3

0.8

0.6

0.5

0.1

0.0

0.0

0.1

0.1

Gangnam

7.6

11.1

2.4

6.7

2.0

0.9

0.7

0.4 -0.1 -0.1

0.0

0.1

0.2

Gangbuk

5.1

10.6

1.8

6.4

2.6

0.7

0.6

0.6

0.2

0.1

0.1

0.1

0.1

Areas excluding the Seoul


metropolitan area

9.2

14.5

4.6

3.3

1.4

0.4

0.2

0.2

0.2

0.1

0.1

0.1

0.1

1. Upscale area of Southern Seoul 2. Northern Seoul


Source: Korea Appraisal Board

Apartment rental prices by region


Source: Korea Appraisal Board
3.0

(m-o-m, %)

2.0

1.0

0.0

-1.0

-2.0
2009.1

Nationwide

EB 9 .indd 38

2010.1

2001.1

2012.1

Seoul metropolitan area

2013.1

2014.1

Areas excluding Seoul metropolitan area

14. 9. 25. 6:03

Apartment sales transactions in July increased 5.1 percent from 73,108 transactions in the previous month to
76,850 transactions, and were up 94.0 percent from a year earlier (39,608), when transactions plunged
immediately after the expiration of the property acquisition tax cut.

Apartment sales transactions

(Monthly average, thousands)

2009 2010 2011 2012


2013
2014
Annual Annual Annual Annual Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Nationwide

73

67

82

61

40

47

57

90

85

93

59

79

89

93

78

73

Jul
77

Source: Ministry of Land, Infrastructure and Transport

Monthly apartment transaction volume


Source: Ministry of Land, Infrastructure and Transport
160

(thousands)

140

39

120
100

60
40
20
0

2009.1

2010.1

Nationwide

2011.1

2012.1

Seoul metropolitan area

2013.1

2014.1

The Green Book

80

Areas excluding Seoul metropolitan area

12.2 Land market


Nationwide land prices in July rose 0.17 percent month-on-month.
Land price growth accelerated in the Seoul metropolitan area (up 0.15%), which includes Seoul (up 0.21%) and
Gyeonggi Province (up 0.11%).
Land price increases in Seoul metropolitan area (m-o-m, %)
0.15 (Dec 2013) > 0.11 (Jan 2014) > 0.14 (Feb) > 0.22 (Mar) > 0.18 (Apr) > 0.15 (May) > 0.13 (Jun) > 0.15 (Jul)

Land price growth also accelerated in areas excluding the Seoul metropolitan area (up 0.20%), led by Busan
(up 0.22%), Daegu (up 0.27%) and Sejong (up 0.54%).
Land price increases in areas excluding Seoul metropolitan area (m-o-m, %)
0.16 (Dec 2013) > 0.10 (Jan 2014) > 0.14 (Feb) > 0.17 (Mar) > 0.18 (Apr) > 0.15 (May) > 0.18 (Jun) > 0.20 (Jul)

EB 9 .indd 39

14. 9. 25. 6:03

T h e G r e e n B o o k : Current Economic Trends


Land prices by region

(Percentage change from previous period)

2008 2009 2010 2011 2012


Annual Annual Annual Annual Annual Annual Q1

2013
Q2

Q3

Q4 Annual

2014
Q2 May

Q1

Jun

Jul

Nationwide

-0.31 0.96 1.05 1.17 0.87 1.14 0.21 0.37 0.10 0.46 1.10 0.45 0.48 0.15 0.15 0.17

Seoul

-1.00 1.40 0.53 0.97 0.33 1.21 0.10 0.41 0.08 0.61 1.50 0.69 0.59 0.18 0.18 0.21

Gyeonggi

-0.26 1.22 1.49 1.47 0.97 0.91 0.17 0.33 0.07 0.34 0.74 0.26 0.37 0.13 0.09 0.11

Incheon

1.37 1.99 1.43 0.66 0.36 0.87 0.21 0.37 0.07 0.23 0.70 0.37 0.25 0.07 0.09 0.07

Source: Korea Appraisal Board

Land prices by region


Source: Korea Appraisal Board
15

40

(%)

12
9
6

E c o n o m i c B u l le t i n

3
0
-3
-6
-9
-12
-15
-18
1994

1995

1996

1997

1998

1999

National average

2000

2001

2002

2003

2004

2005

2006

Metropolitan city

2007

2008

2009

2010

2011 2012

City

2013

County

Land and consumer prices since 1970s


Sources: Korea Appraisal Board (land prices), Statistics Korea (consumer prices)
60

(y-o-y, %)

50
40
30
20
10
0
-10
-20
1974

1977

Land price inflation

EB 9 .indd 40

1980

1983

1986

1989

1992

1995

1998

2001

2004

2007

2010

2013

Consumer price inflation

14. 9. 25. 6:03

There were 219,000 land transactions in July, up 9.9 percent from the previous month and 29.3 percent from
169,000 a year earlier.
Land transaction growth was led by Seoul (up 17.3%, m-o-m), Gyeonggi Province (up 15.3%, m-o-m), Gwangju
(up 33.7%, m-o-m) and Jeju (up 15.4%, m-o-m).
Vacant land transactions, which accounted for 39.5 percent of the total land transactions, rose 9.9 percent
month-on-month to 86,000 and were up 8.7 percent from 79,000 a year earlier.

Land transactions
2008

(Land lots, thousands)

2009

2010

2011

2012

2013

2014

Annual Annual Annual Annual Annual Annual Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
Nationwide

203

187

208

170

187

26

22

16

18

13

17

153 144 208 201 236 183 205 227 233 207 199 219
13

14

20

19

22

17

20

24

22

18

18

21

Gyeonggi

45

46

41

43

33

37

29

30

44

41

50

37

42

47

49

42

39

45

Incheon

13

10

10

10

10

10

11

1. Monthly average
Source: Korea Land & Housing Corporation

The Green Book

208

Seoul

41

Land transaction volume


Source: Korea Appraisal Board
500,000

(thousand m)

400,000

300,000

200,000

100,000

2004.1

2005.1

2006.1

Seoul metropolitan area

EB 9 .indd 41

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Areas excluding Seoul metropolitan area

14. 9. 25. 6:03

T h e G r e e n B o o k : Current Economic Trends

13. Composite indices of


business cycle indicators
Industrial output in July rose 0.2 percent month-on-month and 2.7 percent year-on-year. Output rose in mining
& manufacturing (up 1.1%, m-o-m) and public administration (up 1.8%, m-o-m), but fell in services (down
0.4%, m-o-m) and construction (down 1.4%, m-o-m).

Index of all industry production


Source: Statistics Korea (industrial activity trends)

42

20

(%)

15
10

E c o n o m i c B u l le t i n

5
0
-5
-10
-15
2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

Index of all industry production (m-o-m)

2012.1

2013.1

2014.1

Index of all industry production(y-o-y)

2013
Dec

Jan

Feb

Mar

2014
Apr

May

Jun

Jul

Index of all industry production (m-o-m, %)


(y-o-y, %)

0.4
2.0

1.1
0.9

-1.5
1.4

0.7
2.7

-0.6
1.4

-1.0
-0.6

2.2
1.6

0.2
2.7

Coincident composite index (m-o-m, %)

0.6

0.6

0.3

0.4

0.1

0.0

0.3

0.4

100.4
0.2

100.7
0.3

100.6
-0.1

100.7
0.1

100.5
-0.2

100.1
-0.4

100.1
0.0

100.1
0.0

0.7

0.5

0.3

0.2

0.5

0.3

0.6

0.4

101.5
0.4

101.6
0.1

101.5
-0.1

101.3
-0.2

101.4
0.1

101.3
-0.1

101.5
0.2

101.6
0.1

Cyclical indicator of coincident composite index


(m-o-m, p)
Leading composite index (m-o-m, %)
Cyclical indicator of leading composite index
(m-o-m, p)
1. Preliminary

EB 9 .indd 42

14. 9. 25. 6:03

The cyclical indicator of the coincident composite index was unchanged in July. Among the components of the
coincident composite index, mining & manufacturing production, service output, retail sales and domestic
shipments rose, while the value of construction completed and imports fell.
Components of the coincident composite index in July (m-o-m)
mining & manufacturing production (0.4%), service output (0.7%), retail sales (0.6%), domestic shipments (0.4%), value of
construction completed (-1.4%), imports (-0.7%)

Cyclical indicator of coincident composite index


Source: Statistics Korea (industrial activity trends)
110

(points)

43

100

2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

The cyclical indicator of the leading composite index rose 0.1 points. Four components of the leading composite
index declined, while five others rose.

The Green Book

90

Components of the leading composite index in July (m-o-m)


indicator of inventory cycle (0.3%p), domestic shipments of machinery (0.9%), ratio of export to import prices (0.2%),
international commodity prices (1.8%), KOSPI (0.5%), consumer expectations index (-1.2p), value of construction orders
received (-2.9%), ratio of job openings to job seekers (-4.1%p), spreads between long & short term interest rates (-0.11%p)

Cyclical indicator of leading composite index


Source: Statistics Korea (industrial activity trends)
110

(points)

100

90
2004.1

EB 9 .indd 43

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

14. 9. 25. 6:03

44
E c o n o m i c B u l le t i n

PO
LIC
Y
ISS
UE
S
2015 Budget Planned to Support Expansionary Fiscal Policies
Government to Promote Private Pension Plans

EB 9 .indd 44

14. 9. 25. 6:03

2015 Budget Planned to Support


Expansionary Fiscal Policies
The 2015 budget proposal promotes expansionary policies as total budgets will be increased by 20 trillion
won, or 5.7 percent compared with the 2014 budget. A total of 376 trillion won will be spent to help the economy
build up recovery momentum, improve safety and support the working class. Deficits in fiscal balance and
national debt are projected to temporarily increase from 1.7 percent to 2.1 percent and from 35.1 percent to
35.7 percent, respectively, but the government is confident that fiscal soundness will continue to improve in
the mid- to long-term.

I. 2015 budget proposal

45

1. Key policies

Budgets will be more efficiently spent in 2015 by getting rid of wasteful spending on similar or overlapping
projects and benefit fraud.

Policy Issues

The 2015 budget proposal supports expansionary fiscal policies, while emphasizing increased investment in job
creation, domestic consumption and the creative economy in order to achieve sustainable growth. Investment
to guarantee infrastructure safety will be increased, and supports for the working class will be strengthened.

2. The 2015 budget proposal


The government revenues are projected to increase 3.6 percent, which is smaller than a 6.2 percent increase
forecast in the 2013-2017 national fiscal management plan.
The total government expenditures will rise 20 trillion won, or 5.7 percent, which is larger than a 3.5 percent
increase projected in the 5 year national fiscal management plan. The increase is larger than the average
supplementary budget of 5-6 trillion won in the past few years.
The 2015 budget proposal lays the foundations for creating a virtuous cycle of expansionary fiscal spending,
increased consumption, economic recovery and increased revenues, while continues to purse fiscal expenditure
efficiency.
(trillion won, %)
Total government revenues
Total government expenditures
Consolidated fiscal balance minus social security
(% to GDP)
Consolidated fiscal balance
(% to GDP)
National debt
(% to GDP)

EB 9 .indd 45

2014 budget
369.3
355.8
-25.5
(-1.7)
13.5
(0.9)
527.0
(35.1)

2015 budget proposal


382.7 (+3.6%)
376.0 (+5.7%)
-33.6
(-2.1)
6.8
(0.4)
570.1
(35.7)

14. 9. 25. 6:03

Policy Issues
Budgets by area

(trillion won)
Change
(B-A)

376.0

20.2

5.7

115.5

9.1

8.5

13.2

14.3

1.1

7.6

50.7

53.0

2.3

4.6

Sports, tourism, culture

5.4

6.0

0.6

10.4

Environment

6.5

6.7

0.3

4.0

17.8

18.8

1.0

5.9

7.1

8.3

1.2

17.1

2014 budget (A)

2015 budget
proposal (B)

Total expenditures

355.8

Social security

106.4

Job creation
Education

R&D
Creative economy

46
E c o n o m i c B u l le t i n

Industry, SME, energy

15.4

16.5

1.1

7.0

SOC

23.7

24.4

0.7

3.0

Agriculture, forestry, fisheries, food

18.7

19.3

0.6

3.0

National defense

35.7

37.6

1.9

5.2

4.2

4.5

0.3

6.9

Social order & safety

15.8

16.9

1.1

7.1

Safety

12.4

14.6

2.2

17.9

Local government

57.2

59.2

2.0

3.4

Diplomacy, reunification

3. Budget proposal by initiative


Revitalizing the economy

EB 9 .indd 46

1) Create jobs and


support regional
economy

- Increase the number of social workers from 199,000 to 206,000


- Raise employment support from 13.2 trillion won to 14.3 trillion won, which
includes support for young adults overseas employment, daycare support and
flexible work hours for women
- Increase SOC investment from 23.7 trillion won to 24.4 trillion won
- Launch regional projects, such as those to fulfill regional campaign pledges and
the establishment of the Happy Living Zone, an integrated area of cities and towns
set up to improve living quality

2) Stimulate corporate
investment and
promote exports

- Increase SME support funds by 5 trillion won to 97 trillion won


- Improve infrastructure in industrial complexes
- Foster exporters and help them enter foreign markets

3) Increase support
for creative economy,
promising services and
R&D investment

- Increase the creative economy support from 7.1 trillion won to 8.3 trillion won
- Develop a high-tech community in Pangyo, while increasing the number of the
Creative Economy Centers
- Increase R&D investment to foster future growth engines including the 5th
generation mobile communications technology, while maximizing research

14. 9. 25. 6:03

outcomes by promoting the trade of technologies and the work on industrial


convergence
- Launch new funds for promising services while increasing the size of the existing funds
- Reform traditional industries, such as agricultural and fishery industries, to
produce high added value

Budgets to foster the creative economy


increased from 7.1 trillion won in 2014
to 8.3 trillion won in 2015, which will
finance the development of the Pangyo
Techno Valley, Korea's Silicon Valley
equivalent.

47
Improving public safety
- Greatly increase the safety budget from 12.4 trillion won to 14.6 trillion won
- Thoroughly overhaul public infrastructure, and increase repair and maintenance
budget from 1.4 trillion won to 2.0 trillion won
- Provide 100 billion won support for firefighting equipment purchases
- Newly invest 50 billion won to integrate the current eight emergency
communication systems into one in order to improve efficiency
- Foster safety experts and strengthen safety education

Policy Issues

1) Increase investment
in public infrastructure
safety

2) Improve public safety - Increase the number of security cameras to 170,000 in and around schools, while
more closely watching school meal safety
and quality of life
- Increase electric car subsidies from 800 cars to 3,000 cars, and introduce the
hybrid car subsidies of 1 million won per car, for which 40,000 cars will be made
eligible
3) Enhance national
defense capabilities

- Invest to enhance military capabilities


- Improve the safety and welfare of armed forces

Strengthening social security


1) Support small
businesses

EB 9 .indd 47

- Increase small business funds from 1.2 trillion won to 2.0 trillion won, and provide
low interest rate loans in order to help develop traditional markets
- Launch the Hope Return Package, a financial support scheme for small business
owners who want to close their businesses and return to paid employment jobs

14. 9. 25. 6:03

Policy Issues

2) Introduce 3 packages - Introduce the monthly regular employee wage support of up to 600,000 won per
of vulnerable class
employee for up to one year from the time the employee was transferred from a
support
nonregular position to a regular position
- Introduce the Unemployment Credit, which will pay some of the National Pension
Insurance payments for those temporarily losing jobs
- Launch SME retirement pension funds, which will provide the amount equivalent
to 10 percent of the money saved by SME employees for the past three years and
also pay 50 percent of fund management fees
3) Strengthen tailored
welfare programs

48

- Young adults: Reduce tuition fees by half, promote starting business and provide
vocational training
- Women: Increase the number of public daycare centers by 171 and part time
jobs by two folds, of which the working hours are decided by woman employees
- Elderly: Increase the budget for the basic old age pension from 5.2 trillion won
to 7.6 trillion won
- Farmers and fishermen: Provide low interest rate loans and increase the number
of farm reverse mortgages

E c o n o m i c B u l le t i n

Children are playing at a workplace


daycare center that opened earlier this
year. The 2015 budget proposal includes
plans to increase the number of public
daycare centers to help working moms.

4) Increase basic living


expenses support

- Provide vaccination against hepatitis A to children and flu vaccination to the elderly
- Introduce an around 100,000 won energy voucher to 960,000 households in order
to support heating expenses

II. 2014-2018 national fiscal management plan


1. Key policies
The government will adopt expansive fiscal policies in the short-term to prop up the economic recovery and
develop future growth engines, while the mid- to long-term fiscal management plans focus on improving
fiscal soundness and strengthening fiscal fundamentals by developing a virtuous cycle of high growth and
improved fiscal soundness. The government will continue to work on fiscal restructuring, while increasing
spending efficiency.

EB 9 .indd 48

14. 9. 25. 6:03

2. Mid-term fiscal outlook and fiscal management goals


- Total government revenues are projected to increase at an average of 5.1 percent every year in 2014-2018.
- Total government expenditures will increase at an average of 4.5 percent every year in 2014-2018.
- The consolidated fiscal balance minus social security will temporarily worsen as it will post a deficit of 1.7
percent to GDP, but will gradually improve to a deficit of 1.0 percent in 2018.
- National debt will be in the mid-30 percent range to GDP.
2014-2018 national fiscal management plan

(trillion won, %)

2014

2015

2016

2017

2018

Total government revenues


( % growth)
- National taxes

369.3
(-0.9)
216.5

382.7
(3.6)
221.5

404.6
(5.7)
238.1

428.1
(5.8)
254.1

450.8
(5.3)
272.3

Total government expenditures


(% growth)
Fiscal balance
(% GDP)
National debt
(% GDP)

355.8
(4.0)
-25.5
(-1.7)
527.0
(35.1)

376.0
(5.7)
-33.6
(-2.1)
570.1
(35.7)

393.6
(4.7)
-30.9
(-1.8)
615.5
(36.4)

408.4
(3.8)
-24.0
(-1.3)
659.4
(36.7)

424.0
(3.8)
-18.1
(-1.0)
691.6
(36.3)

1) Reform fiscal
management system

The government will work on improving the fiscal management system on the
basis of the following three directions:

Policy Issues

3. Managing Koreas fiscal resources management

49

- Redesign fiscal projects from the public perspective


- Reform fiscal structure
- Adopt private sector expertise
The government will continue to pursue reducing expenditures and increasing
revenues by reforming the fiscal management system, and will adjust 600 fiscal
projects, 10 percent of the total, by 2017, by combining overlapping or similar
projects.
Funds which have been managed outside of the budget plan, such as revenues
from sports lottery sales and the Korea Racing Authoritys special reserve fund,
will be managed according to the budget plan.
The government will strengthen the connection between budget allocation and
project performance.
2) Broaden the tax base Tax reductions and exemptions that are evaluated to be no longer effective will be
reformed, while tax breaks to support SMEs, working classes and middle-income
households will be kept or gradually phased out.

EB 9 .indd 49

14. 9. 25. 6:03

Policy Issues

The government will increase tax transparency by avoiding tax fraud, in particular
strictly treating overseas tax evasion. The government will continue to work on
revising and enacting laws to efficiently tackle tax evasion.
3) Strengthen fiscal
risk management

The government will more tightly manage public sector debt by strengthening the
monitoring and analysis of fiscal risk factors in public entities. The establishment of
a public sector debt management system will be reviewed in the mid-term, and the
government will produce a public sector fiscal risk report to do in-depth analyses of
public sector debt, including debts in public enterprises, public pension funds and
government guarantee programs.
Risk factors that may lead to a fiscal crisis will be more strictly monitored, which
include risk factors in national debt, central government fiscal balance, public
enterprises and local government fiscal conditions.

50

4) Budget allocation
plan by area

E c o n o m i c B u l le t i n

Regarding social welfare, the government will build a welfare policy framework
while at the same time making expenditures more efficient and expanding
investment in income redistribution.
The government will continue to pursue establishing work-friendly welfare
programs and a strong basic social security system, and will provide a better
environment for research and higher education while at the same time
strengthening job training programs and increasing lifelong learning opportunities.
Regarding the economy, the government will increase investment in 2015 to prop
up the economic recovery. However, it will work on making fiscal investment more
efficient in the mid-term.
The government will increase spending on public infrastructure safety and
maintenance, and will continue to invest in SOC projects currently under
construction.
Support to stimulate corporate investment, exports and SMEs will continue to be
strengthened, and at the same time R&D support for future growth engines, which
includes fostering new industries and creating new markets, will be increased.
With respect to agriculture and fishery, the government will strengthen the
foundations of rural income creation by providing an improved social safety net and
promoting the industries competitiveness.
The government will continue to invest in public safety, and will found a basis for
developing it into an industry.

EB 9 .indd 50

14. 9. 25. 6:03

III. Future plans


The 2015 budget proposal and the 2014-2018 national fiscal management plan will proceed through the
Cabinet Meeting on September 18, and will be submitted to the National Assembly by September 23.

Government to Promote Private


Pension Plans
51

Measures to promote private pension plans

Policy Issues

Korea has a number of systems in place to guarantee that the elderly have a source of income: The National
Pension Plan was introduced in 1988, personal pension plans were introduced in 1994, and retirement pension
plans were introduced in 2004. Government pension plans, such as the basic pension and national pension
plans, are in a good place, and now it is time to start strengthening private pension plans, including retirement
pension plans.

1. Increase the number of beneficiaries


Beginning in 2016, the government will make it mandatory for businesses with 300 or more employees
to provide retirement pensions to their employees, and this requirement will gradually be extended to all
businesses by 2022.
Schedule for mandatory retirement pension plan
January 1,
2016

January 1,
2017

January 1,
2018

January 1,
2019

January 1,
2022

Number of employees for the plan


to be mandatory

300 or more

100-300

30-100

10-30

10 or less

Number of businesses newly joining


the plan

672

4,936

30,609

112,227

1,276,659

The mandatory plans will allow more employees to enjoy the superior benefits of retirement pension plans,
compared to the severance pay they are receiving now, and temporary workers working for less than a year
will also be made eligible for the pension plan.
The government is looking into ways to ensure that this mandate does not place an undue burden upon
employees as well as businesses.

EB 9 .indd 51

14. 9. 25. 6:03

Policy Issues
2. Reduce burdens
The government will launch an SME retirement pension fund in July 2015, which will provide retirement
pension contribution support to SME employees for three years. The fund will provide matching funds of 10
percent of the employee contribution if the employee earns less than 1.4 million won a month, and 50 percent
of fund management fees. In addition, employees will receive tax deductions for retirement pension contributions
of up to 3 million won a year.

3. Improve fund management


The government will ease excessive asset management regulations concerning retirement pensions in order
to balance stability and profits, and introduce a fund-type retirement pension system in order to guarantee
pension benefits.

52

The investment ceiling on the total amount of risky assets will be eased from 40 percent to 70 percent for the
defined contribution pension plans and the individual retirement pension plans, and investment restrictions
on individual risky assets will be lifted.

E c o n o m i c B u l le t i n

The government will introduce a fund-type retirement pension system in July 2016, which requires corporate
retirement pension funds to be managed as an independent fund. This system will guarantee retirement
pension benefits even in the case that the company goes out of business.
Large companies adopting the defined benefit pension plans will be required to form an investment advisory
committee and produce a report on their investment principles. As for small companies adopting the defined
contribution pension plans, the government will promote joint fund management by those small companies,
and will provide necessary rules and guidelines. The government will also promote the launch of various types
of private retirement pension plans which reflect different demand, for example pension plans whose funds
are managed by commissioned institutions and pension plans which allow medical costs to be withdrawn.

4. Increase consumer protection


The government will develop comprehensive consumer protection regulations regarding private retirement
pension plans by December 2014, which will cover the entire process of sales, fund management and
publication.
The 70 percent requirement for funds to be managed as an independent fund will be tightened to 100 percent
for the defined benefit pension plans starting in 2020.
* 70% (2014-2015) > 80% (2016-2017) > 90% (2018-2019) > 100% (from 2020 on)

Deposits in the defined contribution pension plans and the individual retirement pension plans will be
protected for up to 50 million won per financial institution, and the tax code will be revised in favor of those
receiving pension benefits instead of severance pay.

EB 9 .indd 52

14. 9. 25. 6:03

Ec
o
Ne no
ws mi
c
Br
iefi
ng

53
E co n o m i c New s B r i e f i n g

Government to implement emissions trading system in 2015


Plans to innovate financial industry unveiled
G20 Finance Ministers and Central Bank Governors Meeting
Regulations on urban land use and construction to be eased
S&P raises Koreas credit rating outlook
Korea grows 0.5% in Q2

EB 9 .indd 53

14. 9. 25. 6:03

Economic News Briefing


The government announced on September 2 that it
will implement an emissions trading system in 2015
and find a way to minimize any negative impacts on
industries while working to meet the nation's
emissions reduction target.

emission vehicle purchases. However, studies have


shown that these standards can negatively affect
certain industries, while reducing emissions by only a
small amount. Instead of postponing the low
emission vehicle standard, the government will
increase subsidies for environmentally-friendly
vehicles, as well as develop emission and fuel
economy standards for cars sold in Korea on par
with other advanced countries by 2020.

Plans to innovate financial industry unveiled

54
E c o n o m i c B u l le t i n

Government to implement emissions trading


system in 2015
The government will implement an emissions
trading system in 2015 and find a way to minimize
any negative impacts on industries while working to
meet the nations emissions reduction target.
According to the Ministry of Strategy and Finance on
September 2, the emissions target for all industries
will be reduced by 10 percent from the original plan,
and additional reductions will be provided for indirect
emissions and power-generating industries by using
the 2013-2014 emissions as a baseline for 2015. The
base price for emissions will be set at 10,000 won
per ton. In addition, the BAU scenarios for 2015-2020
will be reviewed in order to develop a post-2020
national greenhouse gas emission forecast.
Meanwhile, the government has agreed to postpone
the implementation of low emission vehicle
standards until 2020. The low emission vehicle
standards were designed to reduce greenhouse gas
emissions by imposing levies on the purchases of
high emission vehicles, while giving subsidies to low

EB 9 .indd 54

The Financial Services Commission announced on


August 26 a set of action plans to innovate the
financial industry. The three-pronged plan involves
facilitating technology finance, fostering venture
capital markets to finance startups and venture
businesses, and cultivating an innovation-friendly
culture in the financial sector.
Banks will be encouraged to offer credit loans based
on tech credit ratings, in addition to conventional
collaterals and guarantees. The Korea Development
Bank and the Industrial Bank of Korea will increase
the size of the technology loan fund to 1 trillion won
from the current 10 billion won in order to promote
commercial banks technology finance.
The Growth Ladder Fund will be reinforced to
revitalize the venture capital market. The Startup
Fund, a subordinate fund of the Growth Ladder
Fund, will be expanded by 120 billion won from the
current 250 billion won, while the M&A Fund, which
aims to raise 1 trillion won in the next three years,
will support startups in their growth stages.
Financial supervisory authorities practice of
excessively sanctioning financial institutions will be
scaled down so that banks can provide technology
finance more actively free from concerns about
possible disciplinary actions. In addition, banks will
be evaluated for innovation, and those that score
high in that category will be rewarded.

14. 9. 25. 6:03


G20 Finance Ministers and Central Bank Governors
Meeting
Deputy Prime Minister and Minister of Strategy and
Finance Choi Kyung-Hwan attended the G20
Finance Ministers and Central Bank Governors'
Meeting that was held on September 19-21 in
Cairns, Australia. At the meeting, Deputy Prime
Minister Choi stated that if weak demand continues
to drag down the global economy, it would chip away
at growth potential and make the economy
lethargic. He also warned that slow and insufficient
policy responses will trigger a prolonged period of
low growth, and urged the G20 to take action
towards bold stimulus measures.

Around 20 percent of regulations related to urban


land use and construction will be eased in order to
revitalize the economy, the Ministry of Infrastructure
and Transport announced on September 2. Mixeduse development will be allowed in areas around
bus terminals and train stations, which will help
boost the local economy and create sustainable

EB 9 .indd 55

S&P raises Koreas credit rating outlook


Standard & Poors (S&P) raised Koreas sovereign
debt rating outlook from stable to positive, citing
the nations favorable policy environment, sound
fiscal position and balanced external liability
position as reasons for the move. S&P stated that
the positive outlook reflects expectations that
Korean economic growth will continue its strong
performance relative to that of other developed
market economies in the next one or two years.

55
E co n o m i c New s B r i e f i n g

Regulations on urban land use and construction


to be eased

jobs. Also, movie theaters, hospitals and restaurants


will be allowed to open in public facilities such as
schools, libraries, government office buildings and
youth centers. Regulations on green belts will also
be eased, so that campsites, soccer fields and
indoor sports facilities may be built in developmentrestricted areas. These measures are expected to
induce around 5.7 trillion won in investments each
year, and the investment will amount to a total of 29
trillion won over the next five years.

Deputy Prime Minister Choi Kyung-Hwan (right) is posing


with IMF managing director Christine Lagarde at the G20
Finance Ministers and Central Bank Governors' Meeting in
Cairns, Australia on September 19.

14. 9. 25. 6:03

Economic News Briefing

Korea grows 0.5% in Q2 (Preliminary)


Koreas real gross domestic product (GDP) expanded 0.5 percent quarter-on-quarter and 3.5 percent year-on-year
in the second quarter of 2014, according to preliminary data released by the Bank of Korea (BOK) on September 4.
The figures were down 0.1 percentage points from the advanced estimates that were released on July 24.

S
A

The quarter-on-quarter growth rates for manufacturing, construction and services were revised down from
earlier estimates. Manufacturing grew 0.9 percent, down from 1.1 percent. Construction grew 0.2 percent and
services grew 0.6 percent, down from 0.4 percent and 0.7 percent, respectively.

56

On the expenditure side, private consumption growth declined 0.3 percent, staying at the same level as the
advanced estimate while government consumption growth was adjusted down from 0.4 percent to 0.2 percent.
Facility investment was up 1.1 percent and construction investment grew 0.4 percent, down from 1.3 percent and
0.5 percent, respectively. Investment in software and technology, which declined 3.6 percent, was revised up
from the advanced estimate of -4.2 percent.

E c o n o m i c B u l le t i n

Export growth was revised down from 1.9 percent to 1.7 percent, while import growth was revised up from 0.8
percent to 1.1 percent.

GDP by production and expenditure*

GDP
Agriculture, forestry & fisheries
Manufacturing

Q1
0.5
(2.6)

2012
Q2
Q3
0.5
0.4
(2.4) (2.1)

-6.7

-0.2

-0.4

(Percentage change from previous period)


2013
Q2
Q3
1.0
1.1
(2.7) (3.4)

Q4
0.6
(2.1)

Q1
0.6
(2.1)

6.1

-4.1

1.9

4.6

Q4
0.9
(3.7)

2014
Q1
Q2
0.9
0.5
(3.9) (3.5)

7.4

-4.4

-3.7

1.5

0.3

0.3

0.1

1.2

1.2

1.2

0.8

2.2

0.9

-2.9

-0.2

0.4

-1.2

2.7

1.7

1.9

-2.4

1.2

0.2

Services

0.9

0.7

0.4

0.6

0.5

1.2

0.7

0.8

0.6

0.6

Private consumption

0.8

0.2

1.2

0.4

-0.1

0.7

1.0

0.6

0.2

-0.3

Government consumption

2.4

-0.4

1.0

0.2

0.5

1.6

0.4

0.9

0.0

0.3

Facility investment

11.5

-8.0

-3.2

-3.3

1.5

1.0

2.7

5.6

-1.9

1.1

Construction investment

-2.1

-3.0

1.2

-2.4

6.5

4.6

0.2

-5.2

5.1

0.4

Intellectual property investment

9.0

-3.2

3.3

-2.8

9.4

-2.2

1.2

1.8

6.5

-3.6

Exports

0.5

2.5

1.9

0.9

0.2

2.6

-1.1

1.4

1.5

1.7

Imports

3.0

-0.2

0.3

-1.3

0.6

1.8

-0.4

2.9

-0.8

1.1

Construction

*At 2010 chained prices in seasonally adjusted terms


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

EB 9 .indd 56

14. 9. 25. 6:03

1. National accounts

57
Statistical Appendices

Sta
tist
App ic
a
en l
dic
es
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 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

EB 9 .indd 57

14. 9. 25. 6:03

Statistical A ppendic es
1. National accounts
(year-on-year change, %, chained 2010 year prices)
Real GDP

Period

58

Agri., fores. &


fisheries

Manufacturing

Final
consumption
expenditure

Gross fixed capital formation


Construction

Facilities

E c o n o m i c B u l le t i n

2005
2006
2007
2008
2009
2010
2011
2012
2013P

3.9
5.2
5.5
2.8
0.7
6.5
3.7
2.3
3.0

1.4
1.6
4.1
5.6
3.2
-4.3
-2.0
-0.9
5.8

5.8
7.7
8.4
3.7
-0.5
13.7
6.5
2.4
3.3

4.4
5.2
5.3
2.2
1.3
4.3
2.7
2.2
2.2

2.0
3.6
5.0
-0.9
0.3
5.5
0.8
-0.5
4.2

-0.1
0.7
1.5
-2.7
3.5
-3.7
-3.4
-3.9
6.7

4.8
8.4
9.7
-0.2
-7.7
22.0
4.7
0.1
-1.5

2005

2.5
3.6
4.5
4.9

0.5
4.8
3.8
-3.1

3.6
4.5
7.0
8.1

2.6
4.5
5.4
5.3

0.6
1.7
2.1
3.3

-2.5
1.1
0.0
0.3

3.7
2.1
4.3
9.1

2006

6.3
4.7
2.1
4.8

4.1
-0.2
-1.3
4.2

9.6
7.4
8.2
6.1

5.9
5.1
4.7
5.0

3.0
0.7
4.3
5.9

1.7
-4.1
-0.3
5.4

4.6
8.8
13.5
6.8

2007

4.7
5.6
5.1
6.3

1.7
7.0
8.1
-0.6

6.5
8.6
7.4
10.9

5.2
5.6
5.5
5.0

6.6
6.3
2.1
5.2

3.8
2.0
0.0
0.9

10.3
14.2
2.1
12.2

2008

5.5
4.1
3.9
-1.6

7.7
4.6
4.3
6.4

8.2
7.1
6.1
-5.3

4.7
3.1
2.4
-1.4

1.8
0.9
2.3
-7.0

-2.0
-0.7
0.2
-7.3

7.0
1.4
5.6
-13.0

2009

-1.9
-1.1
0.9
4.8

2.5
0.0
5.0
5.0

-8.4
-5.7
1.6
10.4

-1.9
0.9
1.7
4.5

-5.4
-1.1
0.8
5.8

1.9
4.4
3.1
4.1

-19.4
-13.6
-5.9
9.5

2010

7.2
7.4
5.4
6.0

0.0
-2.2
-7.8
-5.7

16.1
17.2
10.1
11.9

6.2
3.6
3.9
3.4

12.0
6.8
3.8
1.2

1.6
-4.8
-4.8
-5.2

27.6
28.8
20.6
12.9

2011

4.9
3.6
3.3
3.1

-9.2
-2.4
-5.8
7.0

11.4
6.5
5.6
3.4

3.3
3.3
2.8
1.7

-0.7
2.5
1.7
-0.3

-8.3
-2.5
-2.1
-2.0

8.2
8.3
3.4
-0.9

2012

2.6
2.4
2.1
2.1

-0.3
-2.2
-0.1
-0.7

2.7
2.8
2.0
2.0

2.2
1.3
2.7
2.7

6.2
-2.3
-1.0
-3.4

-0.2
-5.4
-2.7
-6.2

11.1
-1.8
-4.2
-4.0

2013P

2.1
2.7
3.4
3.7

0.4
2.9
7.4
9.9

1.8
2.8
3.8
4.5

1.6
2.4
2.3
2.4

-2.6
5.0
5.9
7.8

1.9
9.8
8.8
5.4

-12.7
-3.9
1.5
10.9

2014P

3.9
3.5

7.7
3.4

5.6
5.3

2.6
1.5

5.9
3.4

4.3
0.2

7.3
7.7

P: Preliminary
Source: The Bank of Korea

EB 9 .indd 58

14. 9. 25. 6:03

2. Production, shipment and inventory


(constant prices, 2010=100)
Period

Production index

Shipment index

y-o-y
change(%)

Inventory index

y-o-y
change(%)

Service production index

y-o-y
change(%)

y-o-y
change(%)

106.0
107.4
107.7

6.0
1.3
0.3

105.6
107.2
107.6

5.6
1.5
0.4

119.9
125.2
131.4

15.0
4.4
5.0

103.2
104.8
106.3

3.2
1.6
1.4

2011

102.6
107.5
104.0
109.7

9.1
6.2
5.4
3.4

103.4
106.6
103.2
109.3

10.0
5.4
4.7
2.8

104.9
109.8
112.3
119.9

7.8
11.8
11.4
15.0

99.4
103.4
103.2
106.7

2.8
2.7
4.2
3.0

2012

106.6
108.9
103.7
110.6

3.9
1.3
-0.3
0.8

106.6
108.4
103.8
109.8

3.1
1.7
0.6
0.5

117.7
114.8
114.5
125.2

12.2
4.6
2.0
4.4

102.0
104.9
104.8
107.6

2.6
1.5
1.6
0.8

2013

105.7
108.9
103.9
112.5

-0.8
0.0
0.2
1.9

105.7
108.9
104.0
111.8

-0.8
0.5
0.2
2.0

123.1
119.4
125.0
131.4

4.6
4.0
9.2
6.2

102.9
106.7
105.6
109.9

0.9
1.7
0.8
2.1

2014
P

106.4
109.2

0.7
0.3

105.9
108.7

0.2
-0.2

130.1
128.9

5.7
8.0

104.9
108.2

1.9
1.4

2012 1
2
3
4
5
6
7
8
9
10
11
12

102.0
106.1
111.6
106.8
110.7
109.2
106.0
100.3
104.7
108.8
112.6
110.3

-3.1
15.3
0.9
0.0
3.3
0.7
0.0
-1.3
0.3
-0.8
3.0
0.1

102.8
106.1
111.0
106.2
109.9
109.2
105.2
99.9
106.2
108.2
111.0
110.1

-2.8
13.5
0.1
-0.6
3.7
2.0
1.0
-1.4
1.9
-0.9
2.6
-0.3

119.3
117.4
117.7
116.5
118.2
114.8
115.4
119.3
114.5
116.1
121.3
125.2

14.2
14.1
12.2
10.2
8.8
4.6
3.2
6.5
2.0
0.6
3.1
4.4

100.3
99.9
105.7
102.8
105.9
105.9
104.8
103.9
105.7
104.7
105.5
112.7

0.3
6.2
1.5
0.7
2.4
1.2
1.6
0.8
2.2
0.5
1.5
0.7

2013 1
2
3
4
5
6
7
8
9
10
11
12

110.9
96.9
109.2
109.1
110.2
107.4
107.5
103.5
100.7
112.7
111.8
113.0

8.7
-8.7
-2.2
2.2
-0.5
-1.6
1.4
3.2
-3.8
3.6
-0.7
2.4

109.5
97.8
109.8
108.8
109.8
108.1
106.6
104.4
100.9
112.0
111.3
112.1

6.5
-7.8
-1.1
2.4
-0.1
-1.0
1.3
4.5
-5.0
3.5
0.3
1.8

128.3
124.6
123.1
121.0
122.2
119.4
124.2
123.8
125.0
126.9
129.2
131.4

7.5
6.1
4.6
3.9
3.4
4.0
7.6
3.8
9.2
9.3
6.5
5.0

102.1
100.2
106.4
105.4
107.7
107.0
105.6
105.6
105.5
107.7
107.4
114.7

1.8
0.3
0.7
2.5
1.7
1.0
0.8
1.6
-0.2
2.9
1.8
1.8

2014 1
2
3
4
5
6P
7P

106.1
100.7
112.3
111.8
107.9
107.8
111.2

-4.3
3.9
2.8
2.5
-2.1
0.4
3.4

104.5
100.8
112.5
110.8
108.1
107.2
108.2

-4.6
3.1
2.5
1.8
-1.5
-0.8
1.5

133.1
129.3
130.1
131.3
129.8
128.9
133.1

3.7
3.8
5.7
8.5
6.2
8.0
7.2

104.3
101.3
109.0
106.4
108.5
109.6
108.5

2.2
1.1
2.4
0.9
0.7
2.4
2.7

59
Statistical Appendices

2011
2012
2013

P: Preliminary
Source: Statistics Korea

EB 9 .indd 59

14. 9. 25. 6:03

Statistical A ppendic es
3. Production capacity and operation ratio
Period

60

Production capacity index (2010=100)

Operation ratio index (2010=100)

y-o-y change (%)

y-o-y change (%)

Average operation
ratio (%)

E c o n o m i c B u l le t i n

2011
2012
2013

104.7
106.9
108.7

4.7
2.1
1.7

100.2
97.5
94.8

0.2
-2.7
-2.8

80.5
78.5
76.2

2011

103.5
104.5
105.0
105.6

5.7
5.1
4.3
3.5

97.8
103.5
97.7
101.9

2.2
0.8
0.1
-2.0

81.4
80.6
80.9
79.1

2012

106.3
106.7
107.0
107.5

2.7
2.1
1.9
1.8

97.5
101.0
93.2
98.3

-0.3
-2.4
-4.6
-3.5

79.9
79.5
76.6
78.0

2013

108.2
108.4
108.9
109.3

1.8
1.6
1.8
1.7

93.3
97.4
90.5
97.9

-4.3
-3.6
-2.9
-0.4

77.3
75.9
75.1
76.5

2014
P

109.5
109.6

1.2
1.1

92.5
96.8

-0.9
-0.6

77.2
76.3

2012 1
2
3
4
5
6
7
8
9
10
11
12

106.2
106.2
106.4
106.6
106.7
106.8
106.7
107.2
107.0
107.3
107.5
107.6

2.9
2.7
2.4
2.1
2.2
2.1
1.8
2.1
1.7
1.4
1.9
1.9

92.5
97.2
102.9
98.9
102.6
101.4
97.2
88.3
94.1
98.1
100.7
96.1

-8.0
11.3
-2.6
-3.6
-0.6
-3.1
-3.5
-6.9
-3.6
-4.6
-1.7
-4.5

80.0
80.4
79.2
79.6
79.9
78.9
78.4
74.3
77.2
77.4
78.3
78.2

2013 1
2
3
4
5
6
7
8
9
10
11
12

108.1
108.2
108.2
108.2
108.4
108.6
108.7
109.0
109.0
109.1
109.3
109.6

1.8
1.9
1.7
1.5
1.6
1.7
1.9
1.7
1.9
1.7
1.7
1.9

98.5
84.5
96.8
97.4
99.0
95.9
94.3
90.4
86.7
99.2
97.9
96.7

6.5
-13.1
-5.9
-1.5
-3.5
-5.4
-3.0
2.4
-7.9
1.1
-2.8
0.6

78.8
77.1
75.9
75.9
75.9
75.9
74.8
76.3
74.3
76.2
76.2
77.2

2014 1
2
3
4
5
6P
7P

109.6
109.5
109.5
109.5
109.7
109.7
110.1

1.4
1.2
1.2
1.2
1.2
1.0
1.3

91.6
87.2
98.7
99.8
95.6
95.1
98.1

-7.0
3.2
2.0
2.5
-3.4
-0.8
4.0

78.2
75.8
77.5
77.8
74.6
76.4
78.0

P: Preliminary
Source: Statistics Korea

EB 9 .indd 60

14. 9. 25. 6:03

4. Consumer goods sales index


(constant prices, 2010=100)
Consumer goods sales index
Period

y-o-y
change (%)

Durable goods
y-o-y
change (%)

Semi-durable goods
y-o-y
change (%)

Nondurable goods
y-o-y
change (%)

104.5
107.0
107.9

4.5
2.4
0.8

110.6
116.2
116.6

10.6
5.3
0.3

103.7
103.8
105.9

3.7
-0.4
2.0

102.1
104.1
104.7

2.1
2.0
0.6

2011

100.7
104.8
103.7
108.9

5.3
6.2
4.0
2.6

105.4
112.2
111.4
113.3

11.5
16.9
10.3
4.4

98.3
105.5
94.2
116.7

5.1
5.2
3.6
1.2

99.6
101.2
104.4
103.3

2.7
2.0
1.5
2.4

2012

103.4
106.4
106.5
111.6

2.8
1.4
2.7
2.5

109.4
114.9
118.4
122.0

4.0
2.6
6.4
8.3

99.0
105.5
92.3
118.4

0.6
-0.5
-2.3
0.5

102.6
102.8
107.2
103.8

3.1
1.7
2.8
0.5

2013

103.7
107.7
107.2
112.9

0.3
1.2
0.7
1.2

110.9
118.2
116.8
120.2

1.4
2.9
-1.4
-1.5

101.7
107.2
95.0
119.6

2.7
1.6
2.9
1.0

101.2
103.0
108.0
106.7

-1.4
0.2
0.7
2.8

2014
P

106.3
108.5

2.5
0.7

117.5
121.2

6.0
2.5

99.9
104.6

-1.8
-2.4

103.9
104.3

2.7
1.3

2012 1
2
3
4
5
6
7
8
9
10
11
12

107.5
97.8
105.0
103.0
110.1
106.1
108.2
102.3
109.1
109.0
111.6
114.3

2.1
5.5
1.1
0.4
2.6
1.2
3.8
1.3
2.9
1.5
4.1
2.1

107.2
107.2
113.7
107.3
117.3
120.0
125.6
114.0
115.7
117.1
123.1
125.9

3.3
9.8
-0.4
1.0
4.4
2.2
7.4
4.0
7.6
8.0
6.5
10.6

104.7
91.9
100.4
104.8
111.4
100.3
97.3
82.1
97.6
114.8
118.8
121.5

-0.2
2.0
0.1
-1.3
0.8
-0.9
0.9
-5.1
-3.0
-2.0
5.1
-1.4

108.8
96.0
102.9
100.1
106.1
102.1
104.9
105.7
111.1
102.7
103.0
105.8

2.4
4.8
2.2
0.8
2.4
1.6
3.0
2.2
3.2
0.0
2.2
-0.5

2013 1
2
3
4
5
6
7
8
9
10
11
12

104.6
99.5
107.0
105.3
110.8
106.9
109.2
104.6
107.7
111.2
113.1
114.5

-2.7
1.7
1.9
2.2
0.6
0.8
0.9
2.2
-1.3
2.0
1.3
0.2

112.2
105.9
114.7
115.0
119.5
120.2
127.4
116.3
106.8
120.4
120.2
120.0

4.7
-1.2
0.9
7.2
1.9
0.2
1.4
2.0
-7.7
2.8
-2.4
-4.7

102.9
93.1
109.2
106.4
113.8
101.5
98.1
87.1
99.9
113.6
123.5
121.8

-1.7
1.3
8.8
1.5
2.2
1.2
0.8
6.1
2.4
-1.0
4.0
0.2

101.7
99.3
102.5
100.3
105.5
103.1
105.5
106.9
111.6
105.9
105.3
108.8

-6.5
3.4
-0.4
0.2
-0.6
1.0
0.6
1.1
0.5
3.1
2.2
2.8

2014 1
2
3
4
5
6P
7P

110.5
99.1
109.3
105.5
112.0
108.0
109.9

5.6
-0.4
2.1
0.2
1.1
1.0
0.6

116.8
117.1
118.6
114.1
121.7
127.6
131.3

4.1
10.6
3.4
-0.8
1.8
6.2
3.1

100.2
91.6
107.9
105.4
111.3
97.1
95.3

-2.6
-1.6
-1.2
-0.9
-2.2
-4.3
-2.9

112.1
94.0
105.5
101.5
107.8
103.6
106.3

10.2
-5.3
2.9
1.2
2.2
0.5
0.8

61
Statistical Appendices

2011
2012
2013

P: Preliminary
Source: Statistics Korea

EB 9 .indd 61

14. 9. 25. 6:03

Statistical A ppendic es
5. Consumer goods shipment index and consumer
sentiment index
Domestic consumer goods shipment index (2010=100)
Durable goods

Period

62

y-o-y
change (%)

Nondurable goods

y-o-y
change (%)

y-o-y
change (%)

Consumer
sentiment
index

E c o n o m i c B u l le t i n

2011
2012
2013

100.9
102.5
101.9

0.9
1.6
-0.6

100.3
102.8
103.1

0.3
2.5
0.3

101.2
102.4
101.4

1.2
1.2
-1.0

2011

101.0
97.9
101.5
103.3

4.6
0.9
0.8
-2.2

99.5
100.7
100.9
100.1

3.8
3.1
-0.1
-5.0

101.6
96.8
101.7
104.6

4.7
0.2
1.1
-1.1

2012

100.8
99.9
103.5
106.0

-0.2
2.0
2.0
2.6

97.8
99.1
102.5
112.0

-1.7
-1.6
1.6
11.9

102.0
100.2
103.9
103.4

0.4
3.5
2.2
-1.1

2013

102.8
98.4
102.1
104.5

2.0
-1.5
-1.4
-1.4

108.0
100.6
102.3
101.5

10.4
1.5
-0.2
-9.4

100.5
97.4
101.9
105.8

-1.5
-2.8
-1.9
2.3

2014
P

100.4
99.9

-2.3
1.5

103.2
102.7

-4.4
2.1

99.2
98.8

-1.3
1.4

2012 1
2
3
4
5
6
7
8
9
10
11
12

100.6
98.6
103.1
99.2
101.6
98.9
102.8
101.5
106.1
106.6
105.7
105.7

-7.0
10.9
-2.6
0.9
5.9
-0.6
2.4
-0.8
4.3
1.7
4.7
1.5

92.5
98.3
102.5
94.1
100.4
102.8
105.3
98.4
103.9
108.5
110.9
116.5

-8.3
6.0
-2.4
-3.6
1.2
-2.4
0.7
0.1
4.1
8.0
12.0
15.5

104.0
98.7
103.3
101.3
102.1
97.3
101.8
102.9
107.0
105.7
103.5
101.1

-6.6
13.1
-2.6
2.6
8.0
0.2
3.4
-1.1
4.4
-0.8
1.6
-4.1

98
102
102
106
106
101
100
101
99
100
100
99

2013 1
2
3
4
5
6
7
8
9
10
11
12

108.4
96.7
103.2
99.1
99.3
96.7
103.2
103.7
99.3
108.7
102.8
102.0

7.8
-1.9
0.1
-0.1
-2.3
-2.2
0.4
2.2
-6.4
2.0
-2.7
-3.5

110.4
106.1
107.6
97.9
101.3
102.6
108.8
103.6
94.6
104.3
102.9
97.4

19.4
7.9
5.0
4.0
0.9
-0.2
3.3
5.3
-9.0
-3.9
-7.2
-16.4

107.5
92.6
101.3
99.6
98.5
94.1
100.8
103.7
101.3
110.6
102.7
104.0

3.4
-6.2
-1.9
-1.7
-3.5
-3.3
-1.0
0.8
-5.3
4.6
-0.8
2.8

102
102
104
102
104
105
105
105
102
106
107
107

2014 1
2
3
4
5
6P
7P
8

102.2
96.3
102.6
101.2
99.6
99.0
103.7
-

-5.7
-0.4
-0.6
2.1
0.3
2.4
0.5
-

99.8
106.5
103.3
97.8
103.4
106.8
106.6
-

-9.6
0.4
-4.0
-0.1
2.1
4.1
-2.0
-

103.3
91.9
102.3
102.7
97.9
95.7
102.6
-

-3.9
-0.8
1.0
3.1
-0.6
1.7
1.8
-

109
108
108
108
105
107
105
107

P: Preliminary
Source: Statistics Korea

EB 9 .indd 62

14. 9. 25. 6:03

6. Machinery orders received and estimated


facility investment index
Domestic machinery orders received excluding ship (billion won, constant value)
Total

Period

2011
2012
2013

Public

y-o-y
change (%)

Private

y-o-y
change (%)

y-o-y change
(%)

Estimated facility investment


index
y-o-y
(2010=100)

change (%)

7.6
-13.9
6.7

2,407
2,142
2,580

-2.6
-11.0
20.5

22,741
19,506
20,524

8.8
-14.2
5.2

103.5
100.6
99.3

3.5
-2.8
-1.3

2011

6,383
6,723
5,666
6,376

15.3
9.6
-0.7
6.4

358
708
310
1,031

-36.7
83.1
-18.6
-9.5

6,025
6,015
5,356
5,345

21.2
4.6
0.6
10.1

97.0
109.4
104.5
103.0

5.2
7.4
3.2
-1.4

2012

6,310
5,391
5,036
4,910

-1.1
-19.8
-11.1
-23.0

810
285
579
468

126.1
-59.7
86.7
-54.6

5,500
5,106
4,458
4,442

-8.7
-15.1
-16.8
-16.9

105.0
104.8
96.2
96.4

8.2
-4.2
-7.9
-6.4

2013

5,592
5,867
5,148
6,498

-11.4
8.8
2.2
32.4

429
554
522
1,075

-47.0
94.2
-9.7
129.7

5,163
5,313
4,625
5,423

-6.1
4.0
3.8
22.1

91.2
100.6
98.8
106.4

-13.1
-4.0
2.7
10.4

2014
P

6,594
6,126

17.9
4.4

1,221
305

184.6
-45.0

5,373
5,821

4.1
9.6

96.6
106.8

5.9
6.2

2012 1
2
3
4
5
6
7
8
9
10
11
12

1,933
2,541
1,836
1,845
1,830
1,716
1,835
1,509
1,693
1,511
1,656
1,743

-0.8
25.1
-23.6
-4.4
-14.4
-35.4
-9.4
-14.2
-10
-22.5
-27.8
-18.3

52
695
63
56
39
190
310
169
100
86
127
255

-22.2
829.0
-70.9
-10.3
-72.8
-62.2
135.5
105.9
3.5
-72.3
-75.8
31.2

1,881
1,846
1,773
1,789
1,791
1,526
1,525
1,339
1,593
1,425
1,529
1,488

0.0
-5.7
-18.9
-4.3
-10.2
-29.1
-19.5
-20.1
-10.7
-13.1
-13.5
-23.3

97.7
109.1
108.2
106.2
105.8
102.3
105.4
90.1
93.1
94.5
92.4
102.2

5.6
26.4
-3.5
3.0
-4.9
-10.2
-1.6
-16.5
-5.5
1.1
-10
-9.3

2013 1
2
3
4
5
6
7
8
9
10
11
12

1,847
1,666
2,079
1,846
2,127
1,894
1,935
1,623
1,589
2,606
2,109
1,784

-4.4
-34.4
13.2
0
16.2
10.4
5.5
7.6
-6.1
72.4
27.4
2.4

139
168
121
92
250
212
359
92
71
788
163
124

169.8
-75.8
92.2
63.8
542.9
11.5
15.8
-45.4
-28.5
815.4
28.2
-51.4

1,708
1,498
1,957
1,754
1,877
1,682
1,576
1,531
1,518
1,818
1,946
1,660

-9.2
-18.8
10.4
-2.0
4.8
10.2
3.4
14.3
-4.7
27.5
27.3
11.6

89.8
83.5
100.4
98.2
101.6
102.0
108.0
100.1
88.2
108.9
101.4
108.9

-8.1
-23.5
-7.2
-7.5
-4
-0.3
2.5
11.1
-5.3
15.2
9.7
6.6

2014 1
2
3
4
5
6P
7P

1,716
1,848
3,029
2,283
1,842
2,001
1,842

-7.1
10.9
45.7
23.7
-13.4
5.6
-4.8

88
120
1,013
97
116
92
88

-36.9
-28.8
735.6
5.1
-53.4
-56.7
-75.4

1,628
1,728
2,016
2,187
1,726
1,909
1,754

-4.7
15.4
3.0
24.7
-8.1
13.5
11.3

88.4
93.8
107.6
108.7
107.2
104.5
111.2

-1.6
12.3
7.2
10.7
5.5
2.5
3.0

63
Statistical Appendices

25,148
21,648
23,105

P: Preliminary
Source: Statistics Korea

EB 9 .indd 63

14. 9. 25. 6:03

Statistical A ppendic es
7. Value of construction completed and domestic
construction orders received
(current value, billion won)
Period

64

Value of
construction y-o-y
completed change
(Total)
(%)

Type of order
Public

Private
y-o-y
change (%)

Domestic
construction
y-o-y
orders
change
received
y-o-y
(%)
(Total)
change (%)

Type of order
Public

Private
y-o-y
change (%)

y-o-y
change (%)

E c o n o m i c B u l le t i n

2011
2012
2013

91,717
88,713
97,938

-0.6 35,120
-3.3 33,807
10.4 34,532

-0.1
-3.7
2.1

51,663
50,622
59,492

-2.2
-2.0
17.5

95,332
89,395
75,644

6.1
-6.2
-15.4

28,624
26,071
24,574

-2.0
-8.9
-5.7

61,839
59,811
48,888

12.3
-3.3
-18.3

2011

19,277
24,057
21,423
26,960

-5.2 7,322
-0.1 9,290
-2.7 7,684
4.4 10,825

-2.1
1.8
-1.5
0.7

11,031
13,339
12,597
14,696

-7.9
-4.3
-4.3
6.9

16,335
25,319
20,444
33,233

-11.5
-0.9
5.6
25.5

4,119
6,311
6,711
11,483

-49.0
-8.4
-1.4
54.5

11,107
17,653
12,871
20,209

20.3
4.7
12.1
15.4

2012

19,275
22,410
21,351
25,676

0.0
-6.8
-0.3
-4.8

7,442
8,892
7,598
9,876

1.6
-4.3
-1.1
-8.8

10,893
12,440
12,676
14,613

-1.2
-6.7
0.6
-0.6

22,671
25,732
18,395
22,596

38.8
1.6
-10.0
-32.0

5,655
5,570
5,401
9,443

37.3
-11.7
-19.5
-17.8

16,309
19,100
12,522
11,877

46.8
8.2
-2.7
-41.2

2013

20,145
25,707
23,679
28,407

4.5 7,005
14.7 9,345
10.9 8,083
10.6 10,099

-5.9
5.1
6.4
2.3

12,375
15,377
14,674
17,066

13.6
23.6
15.8
16.8

13,425
18,143
16,454
27,621

-40.8
-29.5
-10.6
22.2

4,289
5,348
4,910
10,025

-24.1
-4.0
-9.1
6.2

8,781
12,108
11,165
16,832

-46.2
-36.6
-10.8
41.7

2014
P

21,626
26,101

7.4
1.5

7,144
8,693

2.0
-7.0

13,630
16,462

10.1
7.1

15,501
22,598

15.5
24.6

5,968
6,573

39.1
22.9

9,102
15,725

3.6
29.9

2012 1
2
3
4
5
6
7
8
9
10
11
12

5,796
6,035
7,444
6,844
7,307
8,259
7,037
6,582
7,732
7,343
8,098
10,235

-6.3
13.2
-4.1
-4.5
-1.8
-12.6
4.2
-4.6
-0.5
-7.8
3.0
-8.1

2,123
2,373
2,945
2,644
2,873
3,374
2,372
2,322
2,904
2,591
3,003
4,282

-12.9
17.0
3.1
-3.6
3.0
-10.2
-0.3
-5.6
2.1
-10.7
-5.3
-9.9

3,373
3,405
4,115
3,903
4,106
4,431
4,281
3,943
4,452
4,452
4,773
5,387

-3.3
11.3
-8.2
-4.0
-3.4
-11.8
5.4
-3.8
0.3
-4.7
11.2
-6.0

7,468
8,488
6,714
6,428
7,310
11,993
6,823
5,390
6,181
5,800
7,239
9,556

52.0
108.1
-8.6
-4.2
2.3
4.6
32.3
-28.8
-19.9
-22.6
-19.9
-42.8

2,034
2,218
1,402
1,453
1,061
3,056
2,304
1,316
1,780
1,970
2,105
5,366

54.6
57.5
0.6
1.7
-43.9
2.2
24.2
-12.5
-46.9
-14.9
-29.5
-13.1

5,269 81.4
6,121 144.1
4,918 -13.6
4,461 -3.6
6,133 29.4
8,505
2.7
4,329 39.9
4,032 -30.3
4,161
4.2
3,787 -24.1
4,798 -18.3
3,290 -64.8

2013 1
2
3
4
5
6
7
8
9
10
11
12

6,266
6,222
7,657
8,089
8,142
9,476
7,839
7,657
8,183
8,628
9,083
10,696

8.1
3.1
2.9
18.2
11.4
14.7
11.4
16.3
5.8
17.5
12.2
4.5

2,072
2,345
2,589
2,839
2,805
3,700
2,643
2,561
2,878
2,958
3,124
4,017

-2.4
-1.2
-12.1
7.4
-2.4
9.7
11.5
10.3
-0.9
14.2
4.0
-6.2

3,956
3,650
4,769
4,954
5,062
5,361
4,885
4,810
4,979
5,329
5,625
6,112

17.3
7.2
15.9
26.9
23.3
21.0
14.1
22.0
11.8
19.7
17.8
13.5

3,546
4,431
5,447
4,946
6,073
7,124
5,675
4,708
6,070
7,346
7,895
12,379

-52.5
-47.8
-18.9
-23.1
-16.9
-40.6
-16.8
-12.6
-1.8
26.7
9.1
29.5

1,289
1,287
1,713
1,558
1,559
2,231
1,412
1,493
2,004
1,500
2,648
5,877

-36.6
-42.0
22.1
7.2
47.0
-27.0
-38.7
13.5
12.6
-23.9
25.8
9.5

2,108
2,992
3,680
2,962
4,393
4,753
4,153
3,171
3,840
5,756
5,004
6,070

-60.0
-51.1
-25.2
-33.6
-28.4
-44.1
-4.1
-21.4
-7.7
52.0
4.3
84.5

2014 1
2
3
4
5
6P
7P

7,034
6,654
7,938
8,457
8,173
9,471
7,900

12.3
6.9
3.7
4.6
0.4
-0.1
0.8

2,310
2,207
2,627
2,737
2,580
3,376
2,461

11.5 4,434
-5.9 4,226.0
1.5 4,971.0
-3.6 5,445
-8.0 5,302
-8.7 5,715
-6.9 5,122

12.1
15.8
4.2
9.9
4.8
6.6
4.9

5,300
5,393
4,807
7,290
6,427
8,881
6,895

49.5
21.7
-11.8
47.4
5.8
24.7
21.5

2,102
2,242
1,625
1,892
2,000
2,681
1,601

62.9
74.2
-5.2
21.4
28.3
20.1
13.3

3,026
3,001
3,075
5,388
4,359
5,978
5,230

43.5
0.3
-16.4
81.9
-0.8
25.8
25.9

P: Preliminary
Source: Statistics Korea

EB 9 .indd 64

14. 9. 25. 6:03

8. Composite indices of business cycle


indicators and BSI
Cyclical indicator
of leading index
(2010=100)

Coincident index
(2010=100)

Cyclical indicator
of coincident
index (2010=100)

BSI (results)

BSI (prospects)

2011 1
2
3
4
5
6
7
8
9
10
11
12

101.2
101.5
101.6
101.3
101.6
102.1
102.5
102.8
103.0
103.1
103.1
103.4

100.8
100.7
100.4
99.6
99.4
99.4
99.5
99.3
99.0
98.7
98.3
98.1

103.3
103.4
104.0
104.0
104.8
105.4
106.0
106.5
106.5
106.9
106.8
107.2

101.1
100.9
101.0
100.6
101.0
101.2
101.3
101.4
101.0
101.0
100.5
100.5

99.1
92.2
107.8
98.4
98.9
99.6
96.2
86.8
96.4
95.0
93.0
90.1

101.8
98.0
113.5
99.3
104.3
104.3
101.3
98.9
96.3
101.4
96.4
94.8

2012 1
2
3
4
5
6
7
8
9
10
11
12

104.2
105.3
105.8
106.3
106.5
107.5
107.9
108.0
107.8
108.1
108.8
109.5

98.5
99.2
99.2
99.4
99.1
99.7
99.8
99.5
98.9
98.8
99.1
99.4

107.3
108.1
108.4
108.6
108.8
109.2
109.9
109.8
110.3
110.2
110.8
111.4

100.2
100.6
100.5
100.4
100.2
100.2
100.5
100.0
100.1
99.6
99.8
100.0

88.6
92.2
101.4
97.5
95.7
90.4
82.1
84.4
89.3
88.9
82.2
87.0

88.3
91.0
106.1
98.4
104.7
98.3
89.7
82.7
99.5
97.0
92.5
82.0

2013 1
2
3
4
5
6
7
8
9
10
11
12

109.8
110.1
110.7
111.3
112.0
113.1
113.8
114.4
114.6
115.3
116.2
117.0

99.2
99.2
99.3
99.5
99.7
100.3
100.5
100.7
100.4
100.8
101.1
101.5

111.7
112.2
112.3
112.9
113.2
113.9
114.3
114.9
115.1
115.7
116.1
116.7

100.0
100.0
99.7
99.9
99.8
100.1
100.1
100.3
100.1
100.2
100.2
100.4

85.0
83.0
101.3
94.1
97.6
95.0
91.1
89.8
93.0
94.7
91.9
90.5

85.7
86.7
104.4
101.5
99.8
97.2
90.7
92.7
94.4
101.1
94.7
92.6

2014 1
2
3
4
5
6
7
8
9

117.6
118.0
118.2
118.8
119.1
119.8
120.3
-

101.6
101.5
101.3
101.5
101.3
101.5
101.6
-

117.5
117.9
118.4
118.5
118.5
118.9
119.4
-

100.7
100.6
100.7
100.4
100.1
100.1
100.1
-

89.4
87.0
100.7
95.8
93.0
91.3
90.8
89.0
-

93.4
88.7
104.4
99.5
101.7
94.5
94.0
91.6
93.1

65
Statistical Appendices

Leading index
(2010=100)

Period

Sources: Statistics Korea, The Bank of Korea

EB 9 .indd 65

14. 9. 25. 6:03

Statistical A ppendic es
9. Balance of payments (I)
(US $ million)
Current
account

Goods

2011
2012
2013

18,655.8
50,835.0
79,883.6

29,089.9
49,406.0
80,568.6

587,099.7
603,509.2
617,127.6

2011

-3,769.1
-1,921.2
11,994.5
12,351.6

2,453.6
2,520.5
11,435.4
12,680.4

2012

-746.0
11,605.1
16,886.8
23,089.1

2013

Services

Primary
income

Secondary
income

558,009.8
554,103.2
536,559.0

-12,279.1
-5,213.6
-7,927.4

6,560.6
12,116.7
11,424.8

-4,715.6
-5,474.1
-4,182.3

133,839.7
150,171.3
150,723.9
152,364.8

131,386.1
147,650.8
139,288.5
139,684.4

-4,746.0
-3,468.8
-2,163.6
-1,900.7

-195.2
372.1
3,723.5
2,660.2

-1,281.5
-1,345.0
-1,000.8
-1,088.3

1,661.5
8,535.0
15,894.6
23,314.9

144,260.1
150,834.0
149,619.5
158,795.6

142,598.6
142,299.0
133,724.9
135,480.7

-2,970.8
172.0
-679.8
-1,735.0

2,045.3
3,942.3
2,972.2
3,156.9

-1,482.0
-1,044.2
-1,300.2
-1,647.7

10,458.1
20,804.7
23,782.0
24,838.8

12,075.8
19,998.5
23,876.5
24,617.8

146,933.9
153,981.4
153,754.8
162,457.5

134,858.1
133,982.9
129,878.3
137,839.7

-3,512.2
-409.8
-2,062.7
-1,942.7

2,782.6
1,835.0
3,162.8
3,644.4

-888.1
-619.0
-1,194.6
-1,480.6

2014P

15,070.7
24,125.2

17,745.2
26,428.1

152,688.6
159,385.4

134,943.4
132,957.3

-3,618.6
-1,953.9

1,905.8
1,330.9

-961.7
-1,679.9

2012 1
2
3
4
5
6
7
8
9
10
11
12

-2,151.2
-2,409.5
3,814.7
87.8
5,265.5
6,251.8
8,413.0
1,808.7
6,665.1
7,494.2
8,293.6
7,301.3

-1,727.4
-863.1
4,252.0
-222.9
3,387.9
5,370.0
7,529.7
2,118.1
6,246.8
7,472.8
8,580.9
7,261.2

44,738.1
48,304.2
51,217.8
49,330.2
50,854.0
50,649.8
51,530.7
47,379.6
50,709.2
53,409.2
54,492.4
50,894.0

46,465.5
49,167.3
46,965.8
49,553.1
47,466.1
45,279.8
44,001.0
45,261.5
44,462.4
45,936.4
45,911.5
43,632.8

-1,017.2
-2,018.3
64.7
288.4
545.9
-662.3
110.0
-844.3
54.5
-415.4
-833.9
-485.7

1,243.3
873.2
-71.2
364.5
1,660.1
1,917.7
1,260.7
965.2
746.3
867.8
988.6
1,300.5

-649.9
-401.3
-430.8
-342.2
-328.4
-373.6
-487.4
-430.3
-382.5
-431.0
-442.0
-774.7

2013 1
2
3
4
5
6
7
8
9
10
11
12

1,969.3
2,146.5
6,342.3
4,552.9
9,752.2
6,499.6
7,985.1
7,198.0
8,598.9
11,107.9
6,854.8
6,876.1

2,855.2
2,733.1
6,487.5
5,103.3
9,591.6
5,303.6
7,911.7
7,378.1
8,586.7
9,816.8
8,175.6
6,625.4

51,027.4
44,778.4
51,128.1
51,587.2
53,548.1
48,846.1
53,353.6
49,839.2
50,562.0
56,702.8
52,756.9
52,997.8

48,172.2
42,045.3
44,640.6
46,483.9
43,956.5
43,542.5
45,441.9
42,461.1
41,975.3
46,886.0
44,581.3
46,372.4

-1,783.5
-1,394.1
-334.6
5.7
-298.2
-117.3
-1,058.1
-805.9
-198.7
393.5
-1,923.2
-413.0

1,434.6
1,035.1
312.9
-354.1
670.3
1,518.8
1,396.1
912.4
854.3
1,260.6
1,010.9
1,372.9

-537.0
-227.6
-123.5
-202.0
-211.5
-205.5
-264.6
-286.6
-643.4
-363.0
-408.5
-709.1

2014P 1
2
3
4
5
6
7

3,285.3
4,499.1
7,286.3
7,124.7
9,080.8
7,919.7
7,908.8

4,367.0
5,403.4
7,974.8
10,648.0
9,133.5
6,646.6
6,859.9

50,599.8
47,993.3
54,095.5
56,721.4
52,383.0
50,281.0
53,887.2

46,232.8
42,589.9
46,120.7
46,073.4
43,249.5
43,634.4
47,027.3

-1,912.1
-1,058.7
-647.8
-1,042.8
-336.1
-575.0
-7.4

1,211.4
371.8
322.6
-1,619.7
725.1
2,225.5
1,488.8

-381.0
-217.4
-363.3
-860.8
-441.8
-337.4
-432.5

Period

66

Exports

Imports

E c o n o m i c B u l le t i n

P: Preliminary
Source: The Bank of Korea

EB 9 .indd 66

14. 9. 25. 6:03

10. Balance of payments (II)


(US $ million)
Capital transfers
& acquisition of Reserve assets
nonfinancial
assets

Direct
investment

Portfolio
investment

Financial
derivatives

Other
investment

2011
2012
2013

-24,315.8
-51,582.4
-76,881.1

-19,931.7
-21,136.2
-16,951.5

13,142.7
6,747.8
-8,287.1

-1,031.3
2,627.8
3,839.7

-2,542.7
-26,637.3
-41,003.7

-112.0
-41.7
-27.8

-13,952.8
-13,184.5
-14,478.5

2011

3,231.1
-8.5
-11,957.3
-15,581.1

-4,872.2
-5,028.1
-4,652.9
-5,378.5

-472.1
4,043.3
8,344.5
1,227.0

922.4
-160.6
-1,535.5
-257.6

11,172.4
3,754.9
-20,439.5
2,969.5

-30.0
-9.7
-5.4
-66.9

-3,519.4
-2,618.0
6,326.1
-14,141.5

2012

-4,564.4
-4,278.7
-18,096.1
-24,643.2

-7,579.6
-4,057.3
-5,705.4
-3,793.9

14,759.6
-6,803.0
4,177.7
-5,386.5

1,198.5
-270.6
595.3
1,104.6

-6,495.1
6,181.1
-13,247.2
-13,076.1

-19.2
-6.7
-9.0
-6.8

-6,447.8
671.1
-3,916.5
-3,491.3

2013

-11,560.0
-16,194.8
-23,107.8
-26,018.5

-5,148.2
-3,297.9
-3,988.6
-4,516.8

-6,461.9
-8,919.2
8,996.0
-1,902.0

1,418.9
-604.6
1,694.0
1,331.4

2,562.0
-7,439.0
-23,231.0
-12,895.7

-3.5
-27.5
12.8
-9.6

-3,930.8
4,065.9
-6,578.2
-8,035.4

2014P

-17177.8
-24,208.1

-3,657.7
-7,552.9

-13,596.7
-5,867.2

892.6
2,083.5

6,207.4
-1,701.9

-2.1
-4.3

-7,023.4
-11,169.6

2012 1
2
3
4
5
6
7
8
9
10
11
12

-1,295.1
435.0
-3,704.3
1,566.7
-2,645.3
-3,200.1
-9,113.6
-3,219.3
-5,763.2
-7,172.4
-9,211.9
-8,258.9

-2,022.6
-3,631.3
-1,925.7
-1,225.9
-1,687.4
-1,144.0
-1,695.4
-1,719.8
-2,290.2
-1,001.3
-1,599.7
-1,192.9

7,904.1
6,238.0
617.5
-3,114.3
-1,893.6
-1,795.1
1,730.8
646.6
1,800.3
-4,742.4
-3,886.7
3,242.6

452.6
245.8
500.1
215.0
-480.7
-4.9
358.8
-35.5
272.0
-137.8
631.8
610.6

-5,167.1
-190.9
-1,137.1
5,832.0
147.6
201.5
-8,171.9
-1,016.0
-4,059.3
185.2
-1,759.5
-11,501.8

-9.6
-5.8
-3.8
0.3
-1.0
-6.0
-5.5
-1.9
-1.6
-4.9
0.7
-2.6

-2,462.1
-2,226.6
-1,759.1
-140.1
1,268.8
-457.6
-1,335.9
-1,094.6
-1,486.0
-1,476.1
-2,597.8
582.6

2013 1
2
3
4
5
6
7
8
9
10
11
12

-3,288.5
-3,297.9
-4,973.6
-1,908.3
-9,945.6
-4,340.9
-9,155.6
-7,937.6
-6,014.6
-9,880.0
-8,399.9
-7,738.6

-1,631.9
-1,145.9
-2,370.4
-21.0
-1,659.7
-1,617.2
-1,301.4
-1,275.8
-1,411.4
-296.1
-2,303.1
-1,917.6

-5,226.0
2,023.2
-3,259.1
-1,873.5
-1,091.4
-5,954.3
1,825.5
1,435.1
5,735.4
4,467.7
-1,522.8
-4,846.9

586.9
686.9
145.1
-313.2
649.2
-940.6
443.3
218.1
1,032.6
713.1
14.0
604.3

3,380.1
-2,870.9
2,052.8
-643.1
-6,804.3
8.4
-8,131.5
-6,631.3
-8,468.2
-10,064.8
-1,742.0
-1,088.9

-8.0
-3.3
7.8
-1.4
-11.2
-14.9
1.1
18.2
-6.5
-2.0
0.0
-7.6

-397.6
-1,991.2
-1,542.0
942.5
-1,039.4
4,162.8
-1,991.5
-1,683.7
-2,903.0
-4,699.9
-2,846.0
-489.5

2014P 1
2
3
4
5
6
7

-4,477.0
-6,920.5
-5,780.3
-6,238.8
-8,132.4
-9,836.9
-5,916.9

529.9
-2,163.5
-2,024.1
-2,157.8
-3,338.8
-2,056.3
-1,011.5

-4,193.1
-7,394.4
-2,009.2
1,662.3
-3,311.0
-4,218.5
-1,743.7

155.5
223.1
514.0
858.1
534.5
690.9
504.1

1,937.4
4,739.0
-469.0
-5,935.6
3,950.6
283.1
-338.1

-3.0
3.5
-2.6
2.6
-4.3
-2.6
-6.3

-2,906.7
-2,324.7
-1,792.0
-665.8
-5,967.7
-4,536.1
-3,327.7

67
Statistical Appendices

Capital &
financial
account

Period

P: Preliminary
Source: The Bank of Korea

EB 9 .indd 67

14. 9. 25. 6:03

Statistical A ppendic es
11. Prices
(2010=100)
Consumer Prices
Period

All Items

Commodity

y-o-y
change (%)

68

Producer prices

Services

y-o-y
change (%)

Core

y-o-y
change (%)

All Items

y-o-y
change (%)

Commodity

y-o-y
change (%)

y-o-y
change (%)

E c o n o m i c B u l le t i n

2011
2012
2013

104.0
106.3
107.7

4.0
2.2
1.3

105.7
108.9
110.1

5.7
3.0
1.0

102.7
104.2
105.8

2.7
1.4
1.5

103.2
104.9
106.6

3.2
1.6
1.6

106.7
107.5
105.7

6.7
0.7
-1.6

108.7
108.9
106.2

8.7
0.2
-2.5

2011 7
8
9
10
11
12

104.3
105.0
104.9
104.7
104.8
105.2

4.5
4.7
3.8
3.6
4.2
4.2

105.9
107.1
107.1
106.6
106.8
107.3

6.4
6.8
5.0
4.5
6.0
5.7

103.1
103.3
103.1
103.2
103.3
103.5

2.9
3.0
2.7
2.8
2.7
2.8

103.7
103.8
103.7
103.6
103.9
104.3

3.6
3.5
3.3
3.2
3.5
3.6

107.2
107.4
107.4
107.3
107.0
107.1

7.0
6.9
6.3
5.8
5.1
4.3

109.3
109.5
109.6
109.4
108.9
109.0

9.1
8.9
8.0
7.4
6.5
5.3

2012 1
2
3
4
5
6
7
8
9
10
11
12

105.7
106.1
106.0
106.0
106.2
106.1
105.9
106.3
107.0
106.9
106.5
106.7

3.4
3.1
2.6
2.5
2.5
2.2
1.5
1.2
2.0
2.1
1.6
1.4

107.9
108.5
109.2
108.9
109.2
108.8
107.9
108.8
110.4
109.8
108.9
109.0

4.4
3.9
4.1
4.1
4.3
3.6
1.9
1.6
3.1
3.0
2.0
1.6

103.9
104.2
103.5
103.7
103.9
104.0
104.2
104.4
104.4
104.6
104.6
104.8

2.7
2.5
1.4
1.3
1.3
1.2
1.1
1.1
1.3
1.4
1.3
1.3

104.6
104.7
104.3
104.4
104.6
104.9
104.9
105.1
105.2
105.2
105.3
105.5

3.2
2.5
1.9
1.8
1.6
1.5
1.2
1.3
1.4
1.5
1.3
1.2

107.7
108.4
108.9
109.0
108.4
107.1
106.6
107.2
107.6
106.8
106.1
105.8

3.2
3.1
2.4
1.9
1.0
0.0
-0.6
-0.1
0.2
-0.5
-0.9
-1.2

109.5
110.5
111.2
111.1
110.3
108.4
107.6
108.6
109.2
107.8
106.8
106.4

3.6
3.6
2.7
1.9
0.7
-0.7
-1.5
-0.9
-0.4
-1.4
-1.9
-2.3

2013 1
2
3
4
5
6
7
8
9
10
11
12

107.3
107.7
107.6
107.5
107.5
107.3
107.6
107.9
108.1
107.8
107.8
107.9

1.6
1.6
1.5
1.3
1.1
1.2
1.6
1.5
1.0
0.9
1.2
1.1

109.9
110.4
110.4
109.9
109.6
109.4
109.7
110.3
110.9
110.1
110.1
110.2

1.7
1.6
1.1
0.9
0.4
0.7
1.7
1.5
0.4
0.3
1.0
0.9

105.3
105.6
105.4
105.6
105.7
105.7
105.9
106.1
106.0
106.0
106.0
106.2

1.5
1.5
1.7
1.7
1.8
1.6
1.5
1.5
1.5
1.4
1.3
1.3

105.9
106.2
106.0
106.0
106.4
106.6
106.7
106.7
107.0
107.1
107.4
107.5

1.3
1.4
1.6
1.6
1.7
1.6
1.7
1.5
1.7
1.8
2.0
1.9

106.0
106.7
106.3
105.9
105.6
105.5
105.5
105.8
105.7
105.3
105.1
105.4

-1.6
-1.6
-2.4
-2.8
-2.6
-1.4
-1.0
-1.3
-1.8
-1.4
-0.9
-0.4

106.8
107.8
107.1
106.6
106.1
106.0
106.0
106.2
106.1
105.5
105.2
105.5

-2.5
-2.5
-3.7
-4.1
-3.8
-2.2
-1.6
-2.1
-2.8
-2.2
-1.5
-0.9

2014 1
2
3
4
5
6
7

108.5
108.8
109.0
109.1
109.2
109.1
109.3

1.1
1.0
1.3
1.5
1.7
1.7
1.6

110.9
111.4
111.6
111.3
111.5
111.2
111.2

0.9
0.9
1.1
1.3
1.7
1.7
1.4

106.6
106.7
107.0
107.3
107.5
107.4
107.7

1.3
1.1
1.5
1.6
1.6
1.6
1.7

107.7
108.0
108.3
108.5
108.8
108.9
109.1

1.7
1.7
2.1
2.3
2.2
2.1
2.2

105.6
105.8
105.7
105.6
105.5
105.6
105.7

-0.3
-0.9
-0.5
-0.3
0
0.1
0.2

105.7
105.9
105.7
105.4
105.3
105.4
105.5

-1.0
-1.7
-1.3
-1.1
-0.7
-0.6
-0.4

Source: The Bank of Korea

EB 9 .indd 68

14. 9. 25. 6:03

12. Employment

Period

Economically active
persons (thousand)

Employed persons (thousand)


All industry

y-o-y
change (%)

Manufacturing

y-o-y
change (%)

SOC & services

y-o-y
change (%)

y-o-y
change (%)

Unemployment
(%)

25,099
25,501
25,873

1.4
1.6
1.5

24,244
24,681
25,066

1.7
1.8
1.6

4,091
4,105
4,184

1.6
0.3
1.9

18,595
19,033
19,347

2.1
2.4
1.6

3.4
3.2
3.1

2011 7
8
9
10
11
12

25,473
25,257
25,076
25,409
25,318
24,880

1.0
1.7
0.7
1.6
1.9
1.4

24,636
24,495
24,318
24,673
24,589
24,125

1.4
2.0
1.1
2.1
2.0
1.9

4,079
4,031
4,014
4,044
4,054
4,071

1.0
-0.7
-1.2
-1.3
-2.1
-2.1

18,844
18,739
18,595
18,856
18,921
18,833

1.9
3.1
2.1
3.2
3.2
3.1

3.3
3.0
3.0
2.9
2.9
3.0

2012 1
2
3
4
5
6
7
8
9
10
11
12

24,585
24,825
25,210
25,653
25,939
25,939
25,901
25,623
25,755
25,787
25,652
25,139

2.0
1.6
1.2
1.6
1.8
1.4
1.7
1.4
2.7
1.5
1.3
1.0

23,732
23,783
24,265
24,758
25,133
25,117
25,106
24,859
25,003
25,069
24,941
24,402

2.3
1.9
1.8
1.9
1.9
1.5
1.9
1.5
2.8
1.6
1.4
1.1

4,034
4,060
4,018
4,027
4,071
4,084
4,114
4,111
4,153
4,188
4,218
4,183

-2.8
-2.1
-2.5
-2.0
-1.6
-1.2
0.8
2.0
3.5
3.6
4.0
2.8

18,631
18,599
18,870
19,103
19,292
19,248
19,265
19,040
19,125
19,128
19,088
19,010

3.5
3.2
3.4
3.1
3.0
2.3
2.2
1.6
2.8
1.4
0.9
0.9

3.5
4.2
3.7
3.5
3.1
3.2
3.1
3.0
2.9
2.8
2.8
2.9

2013 1
2
3
4
5
6
7
8
9
10
11
12

24,901
24,973
25,397
25,928
26,195
26,291
26,301
26,074
26,186
26,268
26,230
25,736

1.3
0.6
0.7
1.1
1.0
1.4
1.5
1.7
1.7
1.9
2.3
2.4

24,054
23,984
24,514
25,103
25,398
25,478
25,473
25,291
25,466
25,545
25,530
24,962

1.4
0.8
1.0
1.4
1.1
1.4
1.5
1.7
1.9
1.9
2.4
2.3

4,189
4,139
4,141
4,192
4,175
4,180
4,167
4,116
4,174
4,218
4,253
4,264

3.9
1.9
3.1
4.1
2.6
2.3
1.3
0.1
0.5
0.7
0.8
2.0

18,810
18,736
18,989
19,303
19,492
19,531
19,577
19,438
19,540
19,558
19,670
19,514

1.0
0.7
0.6
1.0
1.0
1.5
1.6
2.1
2.2
2.2
3.0
2.7

3.4
4.0
3.5
3.2
3.0
3.1
3.1
3.0
2.7
2.8
2.7
3.0

2014 1
2
3
4
5
6
7
8

25,650
25,997
26,187
26,714
26,762
26,825
26,891
26,775

3.0
4.1
3.1
3.0
2.2
2.0
2.2
2.7

24,759
24,819
25,163
25,684
25,811
25,875
25,979
25,885

2.9
3.5
2.6
2.3
1.6
1.6
2.0
2.3

4,280
4,274
4,284
4,288
4,324
4,345
4,358
4,335

2.2
3.3
3.5
2.3
3.6
3.9
4.6
5.3

19,376
19,407
19,538
19,819
19,815
19,841
20,003
19,940

3.0
3.6
2.9
2.7
1.7
1.6
2.2
2.6

3.5
4.5
3.9
3.9
3.6
3.5
3.4
3.3

69
Statistical Appendices

2011
2012
2013

Source: Statistics Korea

EB 9 .indd 69

14. 9. 25. 6:03

Statistical A ppendic es
13. Financial indicators
(period average)
Period

70

Yields(%)

Stock

E c o n o m i c B u l le t i n

Call rate (1 day)

CD (91 days)

Corporate bonds
(3 years, AA-)

Treasury bonds
(3 years)

Treasury bonds
(5 years)

KOSPI(end-period)

2010 7
8
9
10
11
12

2.2
2.3
2.3
2.3
2.4
2.5

2.6
2.6
2.7
2.7
2.7
2.8

4.8
4.7
4.4
4.1
4.2
4.2

3.9
3.7
3.5
3.2
3.4
3.3

4.5
4.3
3.9
3.7
4.0
4.0

1,759.33
1,742.75
1,872.81
1,882.95
1,904.63
2,051.00

2011 1
2
3
4
5
6
7
8
9
10
11
12

2.7
2.8
2.9
3.0
3.0
3.2
3.3
3.3
3.3
3.2
3.3
3.3

2.9
3.1
3.4
3.4
3.5
3.5
3.6
3.6
3.6
3.6
3.6
3.6

4.5
4.7
4.5
4.5
4.4
4.4
4.5
4.2
4.2
4.3
4.2
4.2

3.7
3.9
3.7
3.7
3.7
3.7
3.8
3.6
3.5
3.5
3.4
3.4

4.3
4.4
4.1
4.1
4.0
3.9
4.0
3.7
3.6
3.6
3.5
3.5

2,069.73
1,939.30
2,106.70
2,192.36
2,142.47
2,100.69
2,133.21
1,880.11
1,769.65
1,909.03
1,847.51
1,825.74

2012 1
2
3
4
5
6
7
8
9
10
11
12

3.3
3.3
3.3
3.3
3.3
3.3
3.1
3.0
3.0
2.8
2.8
2.8

3.6
3.5
3.5
3.5
3.5
3.5
3.3
3.2
3.1
2.9
2.9
2.9

4.2
4.3
4.4
4.3
4.0
3.9
3.6
3.4
3.3
3.3
3.3
3.3

3.4
3.4
3.6
3.5
3.4
3.3
3.0
2.8
2.8
2.8
2.8
2.9

3.5
3.6
3.7
3.6
3.5
3.4
3.1
2.9
2.9
2.9
2.9
3.0

1,955.79
2,030.25
2,014.04
1,981.99
1,843.47
1,854.01
1,881.99
1,905.12
1,996.21
1,912.06
1,932.90
1,997.05

2013 1
2
3
4
5
6
7
8
9
10
11
12

2.8
2.8
2.7
2.8
2.6
2.5
2.5
2.5
2.5
2.5
2.5
2.5

2.9
2.8
2.8
2.8
2.7
2.7
2.7
2.7
2.7
2.7
2.7
2.7

3.2
3.1
3.0
2.9
3.0
3.2
3.4
3.3
3.3
3.3
3.4
3.4

2.8
2.7
2.6
2.6
2.6
2.9
2.9
2.9
2.9
2.8
2.9
2.9

2.9
2.8
2.7
2.6
2.7
3.1
3.2
3.2
3.2
3.1
3.2
3.3

1,961.94
2,026.49
2,004.89
1,963.95
2,001.05
1,863.32
1,914.03
1,926.36
1,996.96
2,030.09
2,044.87
2,011.34

2014 1
2
3
4
5
6
7
8

2.5
2.5
2.5
2.5
2.5
2.5
2.5
2.3

2.7
2.7
2.7
2.7
2.7
2.7
2.7
2.5

3.3
3.3
3.3
3.3
3.3
3.2
3.0
3.0

2.9
2.9
2.9
2.9
2.8
2.7
2.6
2.5

3.3
3.2
3.2
3.2
3.1
3.0
2.8
2.8

1,941.15
1,979.99
1,985.61
1,961.79
1,994.96
2,002.21
2,076.12
2,068.54

Source: The Bank of Korea

EB 9 .indd 70

14. 9. 25. 6:03

14. Monetary indicators


(billion won)
Period

Reserve money

M1

y-o-y
change (%)

M2
y-o-y
change (%)

Lf
y-o-y
change (%)

y-o-y
change (%)

75,232.0
82,131.1
91,379.4

11.3
9.2
11.3

425,675.1
441,963.6
484,062.9

6.6
3.8
9.5

1,708,984.5
1,798,625.7
1,885,781.3

4.2
5.2
4.8

2,208,170.4
2,379,518.7
2,543,299.4

5.3
7.8
6.9

2011 7
8
9
10
11
12

74,069.7
75,642.3
77,942.2
76,944.6
76,617.3
77,842.5

10.6
12.4
10.9
10.1
10.3
8.9

418,973.1
422,649.3
425,196.4
421,480.1
423,111.9
432,602.2

3.8
5.4
5.1
4.1
2.0
1.6

1,705,451.5
1,719,437.8
1,729,531.1
1,742,645.4
1,753,296.4
1,756,597.4

3.2
4.0
4.2
4.4
4.4
4.4

2,208,624.3
2,230,191.9
2,243,675.6
2,263,627.7
2,279,234.1
2,288,816.9

4.6
5.5
5.7
6.1
6.2
6.2

2012 1
2
3
4
5
6
7
8
9
10
11
12

81,635.4
81,655.3
79,068.0
80,641.8
80,547.7
81,804.0
81,555.7
82,369.1
82,958.7
85,078.6
82,956.5
85,302.7

11.0
8.3
8.3
10.2
9.1
9.5
10.1
8.9
6.4
10.6
8.3
9.6

439,352.9
437,193.9
440,075.4
437,445.3
438,795.3
441,611.0
441,760.6
439,573.2
440,034.3
444,477.8
445,463.9
457,778.9

2.3
1.1
2.1
2.8
3.5
4.7
5.4
4.0
3.5
5.5
5.3
5.8

1,757,058.7
1,762,988.4
1,773,172.9
1,777,114.7
1,784,220.5
1,796,981.5
1,807,289.2
1,817,134.9
1,819,290.1
1,822,420.9
1,830,280.3
1,835,556.7

4.8
5.3
5.7
5.5
5.5
5.9
6.0
5.7
5.2
4.6
4.4
4.5

2,292,213.5
2,302,065.8
2,341,626.9
2,349,723.2
2,357,701.0
2,377,071.3
2,393,737.7
2,405,239.9
2,415,263.5
2,424,000.4
2,440,062.8
2,455,962.9

6.5
7.2
8.8
8.6
8.4
8.5
8.4
7.8
7.6
7.1
7.1
7.3

2013 1
2
3
4
5
6
7
8
9
10
11
12

85,839.3
88,855.7
89,523.5
87,729.0
89,654.8
91,207.6
90,643.7
93,729.6
95,130.6
93,640.4
93,609.9
96,988.5

5.1
8.8
13.2
8.8
11.3
11.5
11.1
13.8
14.7
10.1
12.8
13.7

464,914.5
472,239.6
472,430.1
475,330.0
475,526.7
486,587.5
488,982.7
481,416.9
490,518.7
491,947.9
499,242.7
509,617.9

5.8
8.0
7.4
8.7
8.4
10.2
10.7
9.5
11.5
10.7
12.1
11.3

1,841,128.1
1,857,135.0
1,862,405.5
1,867,726.3
1,870,289.7
1,884,193.2
1,890,728.6
1,888,658.4
1,903,187.1
1,908,557.6
1,923,339.2
1,932,026.4

4.8
5.3
5.0
5.1
4.8
4.9
4.6
3.9
4.6
4.7
5.1
5.3

2,469,789.3
2,488,539.0
2,499,718.1
2,512,459.7
2,518,239.1
2,533,750.8
2,549,443.5
2,557,336.3
2,577,546.7
2,587,071.4
2,605,873.9
2,619,029.5

7.7
8.1
6.8
6.9
6.8
6.6
6.5
6.3
6.7
6.7
6.8
6.6

2013 1
2
3
4
5
6
7

98,541.6
100,547.9
100,624.0
98,898.5
101,791.4
101,412.3
101,164.2

14.8
13.2
12.4
12.7
13.5
11.2
11.6

515,742.5
518,475.5
520,299.0
518,809.3
523,069.9
532,041.2
534,028.8

10.9
9.8
10.1
9.1
10.0
9.3
9.2

1,937,045.6
1,954,340.7
1,964,954.0
1,970,361.6
1,982,390.9
1,999,376.3
2,013,935.1

5.2
5.2
5.5
5.5
6.0
6.1
6.5

2,635,100.1
2,647,674.0
2,659,370.7
2,669,341.4
2,684,643.9
2,703,088.1
2,725,737.6

6.7
6.4
6.4
6.2
6.6
6.7
6.9

71
Statistical Appendices

2011
2012
2013

Source: The Bank of Korea

EB 9 .indd 71

14. 9. 25. 6:03

Statistical A ppendic es
15. Exchange rates
(end-period)
\/US $
Period

72

\/100

E c o n o m i c B u l le t i n

Won

y-o-y
change (%)

Won

2011
2012
2013

1,153.3
1,071.1
1,055.3

1.3
-7.1
-1.5

1,485.2
1,247.5
1,004.7

2011 7
8
9
10
11
12

1,052.6
1,071.7
1,179.5
1,104.5
1,150.3
1,153.3

-11.3
-9.9
3.3
-2.0
-0.6
1.3

2012 1
2
3
4
5
6
7
8
9
10
11
12

1,125.0
1,126.5
1,137.8
1,134.2
1,177.8
1,153.8
1,136.2
1,134.6
1,118.6
1,094.1
1,084.7
1,071.1

2013 1
2
3
4
5
6
7
8
9
10
11
12
2014 1
2
3
4
5
6
7
8

\/Euro

y-o-y
change (%)

Won

y-o-y
change (%)

6.3
-16.0
-19.5

1,494.1
1,416.3
1,456.3

-1.3
-5.2
2.8

1,353.2
1,396.8
1,536.6
1,458.0
1,475.7
1,485.2

-1.2
-0.7
12.7
4.8
7.4
6.3

1,507.9
1,547.3
1,601.4
1,562.7
1,532.9
1,494.1

-2.9
2.7
2.9
-0.4
1.0
-1.3

1.0
-0.1
2.8
5.8
9.0
7.0
7.9
5.9
-5.2
-0.9
-5.7
-7.1

1,473.1
1,399.2
1,380.7
1,412.0
1,489.1
1,453.8
1,453.6
1,444.0
1,441.1
1,374.5
1,320.6
1,247.5

8.6
1.3
3.7
7.5
11.5
8.8
7.4
3.4
-6.2
-5.7
-10.5
-16.0

1,478.2
1,516.3
1,513.4
1,501.7
1,456.6
1,435.0
1,393.1
1,419.6
1,444.3
1,418.3
1,407.3
1,416.3

-2.4
-2.1
-3.2
-5.6
-6.0
-8.0
-7.6
-8.3
-9.8
-9.2
-8.2
-5.2

1,082.7
1,085.4
1,112.1
1,108.1
1,128.3
1,149.7
1,113.6
1,110.9
1,075.6
1,061.4
1,062.1
1,055.3

-3.8
-3.6
-2.3
-2.3
-4.2
-0.4
-2.0
-2.1
-3.8
-3.0
-2.1
-1.5

1,188.5
1,176.2
1,180.1
1,132.0
1,116.6
1,167.2
1,135.4
1,129.2
1,098.7
1,077.5
1,038.2
1,004.7

-19.3
-15.9
-14.5
-19.8
-25.0
-19.7
-21.9
-21.8
-23.8
-21.6
-21.4
-19.5

1,469.3
1,425.8
1,425.2
1,451.3
1,471.4
1,498.2
1,476.7
1,470.6
1,451.3
1,456.6
1,444.8
1,456.3

-0.6
-6.0
-5.8
-3.4
1.0
4.4
6.0
3.6
0.5
2.7
2.7
2.8

1,079.2
1,067.7
1,068.8
1,031.7
1,021.6
1,014.4
1,024.3
1,013.6

-0.3
-1.6
-3.9
-6.9
-9.5
-11.8
-8.0
-8.8

1,043.7
1,044.8
1,038.7
1,005.3
1,004.2
1,000.0
995.7
977.6

-12.2
-11.2
-12.0
-11.2
-10.1
-14.3
-12.3
-13.4

1,473.6
1,463.6
1,469.4
1,425.0
1,389.6
1,384.2
1,371.8
1,336.2

0.3
2.7
3.1
-1.8
-5.6
-7.6
-7.1
-9.1

Source: The Bank of Korea

EB 9 .indd 72

14. 9. 25. 6:03

Danyang, North Chungcheong Province


Danyang is a county located in North Chungcheong Province.
Noted for its beautiful scenery, thanks to the surrounding
mountains and the river that runs through it, Danyang is a popular
destination for hikers and paragliders.

Useful economyrelated websites

EB 9 .indd 2

Ministry of Strategy and Finance


http://english.mosf.go.kr

Fair Trade Commission


http://eng.ftc.go.kr

Ministry of Trade, Industry and Energy


http://www.motie.go.kr/language/eng

Ministry of Employment and Labor


http://www.moel.go.kr/english

Financial Services Commission


http://www.fsc.go.kr/eng

The Bank of Korea


http://www.bok.or.kr/eng

Financial Supervisory Service


http://english.fss.or.kr

Statistics Korea
http://kostat.go.kr/portal/english

14. 9. 25. 6:05

ISSN 2287-7266

ECONOMIC BULLETIN (Republic of Korea)

Republic of Korea

Vol.36 No.9
September 2014

conomic
u l l e t i n

Vol.36 No.9 September 2014

The Green Book:


Current Economic Trends
Policy Issues

2015 Budget Planned to Support Expansionary Fiscal Policies


Government to Promote Private Pension Plans

Economic News Briefing

Government to Implement Emissions Trading System in 2015


Korea Grows 0.5% in Q2
Plans to Innovate Financial Industry Unveiled
S&P Raises Koreas Credit Rating Outlook

Statistical Appendices
ECONOMIC
BULLETIN
(Republic of Korea)

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