ISSN 2287-7266

Republic of Korea
ECONOMIC BULLETIN (Republic of Korea)

ECONOMIC
BULLETIN
03 The Green Book:
Current Economic Trends
47 Featured Issue

“Government Aims to Break Shackles of Low Growth”
(Interview with Deputy Prime Minister Oh-Seok Hyun)

52 Policy Issues

Government to Remove Regulatory Obstacles to Boost Investment
Guidelines for FY 2014 Budget

59 Economic News Briefing

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65 Statistical Appendices
Vol.35 No.5 May 2013

Foreign Press Spokesperson’s Office
Ministry of Strategy and Finance
Government Complex, 477 Galmae-ro
Sejong, 339-012
Republic of Korea
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Bank of Korea Cuts Key Rate to 2.50%
Korea Grows 0.9% in Q1
National Assembly Approves Supplementary Budget
G20 Finance Ministers and Central Bank Governors’ Meeting

| Economic Information and Education Center

Vol.35 No.5

May 2013

Republic of Korea
Vol.35 No.5

May 2013

Contents

Economic Bulletin
The Green Book: Current Economic Trends
Overview ......................................................................................................................... 03
1. External economic situation ..................................................................................... 04
2. Private consumption .................................................................................................. 09
3. Facility investment ..................................................................................................... 12
4. Construction investment ........................................................................................... 14
5. Exports and imports .................................................................................................. 17
6. Mining and manufacturing production .................................................................. 19
7. Service sector activity ................................................................................................ 22
8. Employment .............................................................................................................. 24
9. Financial markets ........................................................................................................ 28
9.1 Stock market
9.2 Exchange rate
9.3 Bond market
9.4 Money supply & money market
10. Balance of payments ................................................................................................ 32
11. Prices and international commodity prices ......................................................... 35
11.1 Prices
11.2 International oil and commodity prices
12. Real estate market ................................................................................................... 40
12.1 Housing market
12.2 Land market
13. Composite indices of business cycle indicators .................................................. 45

Featured Issue
“Government aims to break shackles of low growth” ................................................47
(Interview with Deputy Prime Minister Oh-Seok Hyun)

Policy Issues
Government to remove regulatory obstacles to boost investment ....................... 52
Guidelines for FY 2014 budget ..................................................................................... 56

Economic News Briefing .......................................................................... 59
Statistical Appendices ................................................................................ 65

The Green Book
Current Economic Trends
Overview
The Korean economy has seen inflation remain stable and consumption somewhat improve.
However, employment growth has been slowing, and some real economic indicators, such as
production, investment and exports, have continued to fall.
In March, the economy added 249,000 jobs year-on-year, slightly improving from 201,000 in the
previous month, when the job market took a hit due to the Lunar New Year holiday. However,
employment growth has been poor, staying in the lower 200,000 range for two consecutive months.
Consumer price inflation remained stable in the 1.0 percent range in April, falling to 1.2 percent
year-on-year from 1.3 percent of the previous month, as agricultural and petroleum product
prices fell.
Mining and manufacturing production fell 2.6 percent month-on-month in March due to
weakness in automobiles and audio-visual communications equipment, while service output
decreased by 1.0 percent led by sluggish real estate & renting and hotels & restaurants.
Retail sales increased by 1.4 percent month-on-month in March, as brisk nondurable and semidurable goods sales offset poor durable goods sales.
Facility investment in March fell 6.6 percent from the previous month due to a fall in machinery
investment, while construction investment declined by 3.0 percent led by poor civil engineering
works.
Exports inched up by 0.4 percent year-on-year in April despite an increase in days worked, as it
was negatively affected by a slowdown in exports to Japan along with exports of steel, automobiles
and vessels. The trade balance remained in the black at US$2.58 billion.
The cyclical indicator of the coincident composite index declined 0.4 points month-on-month in
March, and the leading composite index fell 0.2 points.
In April, stock prices fell as risks concerning North Korea remained and there were worries over
Korean enterprises’ business performance taking a hit from the weak yen. The won gained against
the dollar due to poor US economic indicators.
Housing prices shifted to an increase in April, from a 0.1 percent decline to a 0.2 percent rise,
while the upward trend in rental prices accelerated from 0.5 percent to 0.7 percent.

The Green Book | 3

The economy grows at a slow pace, with real economic indicators, such as exports and investment,
continuing to be sluggish and amid lingering uncertainties from US debt ceiling negotiations, the
slow economic recovery in Europe and the weak yen.
The Korean government will closely watch the global and domestic economic situations, and
reinforce policy responses to stimulate the economy by promoting investment and strengthening
support for exports.
At the same time, the government will focus on securing the lives of the low- and middle-income
classes through job creation and by stabilizing the prices of necessities, while continuing to adopt
policies to improve the health of the economy.

1.

Although the US and China are showing gradual signs of recovery, its pace is
slower than expected, and the economic recession in the eurozone continues. The
IMF lowered its world economic growth outlook for 2013 from 3.5 percent to 3.3
percent, taking into account the effects of recession in the eurozone and the US
budget sequester.

External
economic
situation

Political uncertainties have somewhat eased in Italy as it formed a new coalition
government, but downside risks remain in the eurozone as there are worries
regarding the possibility of a bailout for Slovenia due to heavy losses in its banking
sector.
* Moody’s downgraded Slovenia’s sovereign credit rating from Baa2 to Ba1 on April 30 due to
banking losses, a poor fiscal situation, and the growing possibility of a bailout.
* The European Commission revised down its 2013 growth forecast for the eurozone from -0.3
percent in March to -0.4 percent.

World GDP growth
6

(%)

5
4
3
2
1
0
-1

2001

4 | The Green Book

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

US

The US economy grew 2.5 percent (annualized, quarter-on-quarter) in the first
quarter of 2013, an improvement over the fourth quarter of 2012, when the
economy grew at a rate of just 0.4 percent, but fell short of estimates, which forecast
annual growth in the first quarter at 3.0 percent, and economic indicators have
been mixed since March.
Private consumption in the first quarter of 2013 grew at the highest rate since the
fourth quarter of 2010, leading the economic recovery, and housing investment
continued to grow. However, imports turned positive and government spending
fell for the second straight month.
Growth rate (annualized q-o-q, %)
3.2 (private consumption), 12.6 (housing investment), -4.1 (government spending),
2.9 (exports), 5.4 (imports)
Industrial production growth somewhat slowed down in March, rising 0.4 percent,
and retail sales fell compared with the previous month, down 0.4 percent.
The ISM manufacturing index fell for the second consecutive month in April.
ISM Manufacturing Index (base=50)
50.7 (Aug 2012) [ 51.6 (Sep) [ 51.7 (Oct) [ 49.9 (Nov) [ 50.2 (Dec) [ 53.1 (Jan 2013)
[ 54.2 (Feb) [ 51.3 (Mar) [ 50.7 (Apr)
Housing indicators were somewhat mixed as existing home sales fell 0.6 percent in
March while new home sales rose 1.5 percent compared with the previous month,
but the housing market continued to recover as housing prices rose for the 13th
consecutive month.
Case-Shiller Home Price Index (q-o-q, %)

-0.4 (Q1 2012) [ 2.2 (Q2) [ 1.7 (Q3) [ 1.9 (Q4), 1.0 (Jan 2013) [ 1.2 (Feb)

New Home Sales (m-o-m, %)

-4.0 (Oct 2012) [ 8.2 (Nov) [ -1.0 (Dec) [ 14.1 (Jan 2013) [ -7.6 (Feb) [ 1.5 (March)

The unemployment rate fell to 7.5 percent in April, while nonfarm payroll
employment increased by 165,000, surpassing expectations (140,000).
Nonfarm payroll increase (m-o-m, thousand)
165 (Aug 2012) [ 138 (Sep) [ 160 (Oct) [ 247 (Nov) [ 219 (Dec) [ 148 (Jan 2013) [ 332
(Feb) [ 138 (Mar) [ 165 (Apr)
Nonfarm payroll increase in April by industry (A total of 165,000, thousand)
176 (private sector): -3 (mining), 0 (manufacturing), -6 (construction), 185 (service)
-11 (public sector)

The Green Book | 5

(Percentage change from previous period)

2011

2012

Annual Annual

2013¹

Q1

Q2

Q3

Q4

Q1

Jan

Feb

Mar

Apr

Real GDP²

1.8

2.2

2.0

1.3

3.1

0.4

2.5

-

-

-

-

- Personal consumption expenditure

2.5

1.9

2.4

1.5

1.6

1.8

3.2

-

-

-

-

- Corporate fixed investment

8.6

8.0

7.5

3.6

-1.8

13.2

2.1

-

-

-

-

- Housing construction investment

-1.4

12.1

20.5

8.5

13.5

17.6

12.6

-

-

-

-

Industrial production

4.1

3.8

1.4

0.6

0.0

0.6

1.2

-0.1

1.1

0.4

-

Retail sales

8.0

5.0

1.7

-0.3

1.3

1.5

1.0

-0.1

1.0

-0.4

-

Existing home sales

2.4

9.9

5.5

-2.0

5.1

3.3

0.8

0.8

0.8

-0.6

-

Unemployment rate³

9.0

8.1

8.3

8.2

8.1

7.8

7.7

7.9

7.7

7.6

7.5

Consumer prices

3.2

2.1

0.6

0.2

0.6

0.5

0.4

0.0

0.7

-0.2

-

1. Preliminary
2. Annualized rate (%)
3. Seasonally adjusted
Source: US Department of Commerce

US GDP growth and industrial production
Source: US Department of Commerce & US Federal Reserve Board
(%)

10
8
6
4
2
0
-2
-4
-6
-8

-10
2001. Q1

2002. Q1

2003. Q1

2004. Q1

2005. Q1

2006. Q1

2007. Q1

2008. Q1

2009. Q1

2010. Q1

GDP (q-o-q, annualized rate)

2011. Q1

2012. Q1

2013. Q1

Industrial production (q-o-q)

US nonfarm payroll growth and unemployment rate
Sourse : US Department of Labor
800

(thousand)

(%)

600

10

400

8

200
0

6

-200

4

-400
-600

2

-800
-1,000
2001. 1

12

0
2002. 1

2003. 1

2004. 1

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

6 | The Green Book

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Unemployment rate (right)

Worries that China’s recovery momentum is weakening grew as the economy fell
short of market expectations, growing 7.7 percent in the first quarter of 2013.

China

Despite growing exports and investment, poor domestic demand, which was
attributable to the drive to cut lavish government spending, anticorruption policies
and tightened food safety regulations, led the slowdown in the economic recovery.
The Chinese economy is expected to gradually recover due to the effects of
quantitative easing and a push for urbanization that will increase investment, but
constraints remain due to a lower than expected manufacturing PMI index* and
housing market regulations.
* The manufacturing PMI in April was 50.6, falling short of both market expectations (50.7) and
the average for April from 2005 to 2012 (56.0).

(Percentage change from same period in previous year)

2011

2012¹

2013¹

Annual

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Dec

Q1

Feb

9.3

9.1

8.9

7.8

8.1

7.6

7.4

7.9

-

7.7

-

Real GDP

Mar
-

9.9

3

8.9

Industrial production

13.9

13.8

12.8

10.1

11.6

9.5

9.1

10.0

10.3

9.5

Fixed asset investment (accumulated)

24.8

24.9

23.8

20.6

20.9

20.4

20.5

20.6

20.6

20.9

21.23 20.9

Retail sales

17.1

17.3

17.5

14.3

14.9

13.9

13.5

14.9

15.2

12.4

12.33 12.6

Exports

20.7

20.7

14.4

8.3

8.8

10.5

4.5

9.5

14.1

18.4

21.8

10.0

Consumer prices²

5.4

6.3

4.6

2.6

3.8

2.8

1.9

2.1

2.5

2.4

3.2

2.1

Producer prices²

6.0

7.1

3.1

-1.7

0.1

-1.4

-3.3

-2.3

-1.9

-1.7

-1.6

-1.9

1. Preliminary
2. Quarterly change: average of monthly change
3. Jan-Feb aggregate
Source: China National Bureau of Statistics

China’s GDP growth and fixed asset investment
Source: National Bureau of Statistics of China
18

(%)

(%)

70

16

60

14

50

12

40

10

30

8

20

6

10

4
2001. Q1

2002. Q1

2003. Q1

GDP (y-o-y, left)

2004. Q1

2005. Q1

2006. Q1

2007. Q1

2008. Q1

2009. Q1

2010. Q1

2011. Q1

2012. Q1

0
2013. Q1

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

The Green Book | 7

Despite retail sales falling month-on-month in March, the Japanese economy
showed signs of recovery, led by exports and manufacturing production.

Japan

Deflation continued as consumer prices fell 0.9 percent despite import prices
rising 8.2 percent from the previous month.
(Percentage change from previous period)

2011

2012¹

2013¹

Annual

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Jan

Feb

Mar

Real GDP

-0.6

2.5

0.1

2.0

1.5

-0.2

-0.9

0.0

-

-

-

Industrial production

-2.4

4.3

-0.4

-0.3

1.2

-2.0

-4.2

-1.9

0.3

0.6

-0.2

Retail sales

-1.2

0.5

-0.5

1.6

1.2

0.3

-0.9

-0.2

-0.2

1.7

-1.4

Exports (y-o-y)

-2.7

0.5

-5.5

-2.8

-1.6

4.8

-8.2

-5.5

6.4

-2.9

1.1

Consumer prices (y-o-y)

-0.2

0.0

-0.2

-0.1

0.5

-0.2

-0.3

-0.1

-0.3

-0.7

-0.9

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

Japan’s GDP growth and industrial production
Source: Japan’s Cabinet Office, Ministry of Economy, Trade and Industry
6

(%)

(%)

25
20

4

15
10

2

5
0

0

-5
-2

-10
-15

-4

-20
-6
2001. Q1

-25
2002. Q1

2003. Q1

GDP (q-o-q, left)

Eurozone

2004. Q1

2005. Q1

2006. Q1

2007. Q1

2008. Q1

2009. Q1

2010. Q1

2011. Q1

2012. Q1

Industrial production (q-o-q, right)

Economic recession in the eurozone continued as the manufacturing PMI
fell short of its baseline of 50 for the 21st consecutive month in March and the
unemployment rate peaked at 12.1 percent.
Unemployment rate (%)
11.4 (Jul 2012) [ 11.5 (Aug) [ 11.6 (Sep) [ 11.7 (Oct) [ 11.8 (Nov) [ 11.8 (Dec) [ 12.0 (Jan
2013) [ 12.0 (Feb) [ 12.1 (Mar) (youth unemployment: 24.0)
Manufacturing PMI (base = 50)
44.0 (Jul 2012) [ 45.1 (Aug) [ 46.1 (Sep) [ 45.4 (Oct) [ 46.2 (Nov) [ 46.1 (Dec) [ 47.9 (Jan
2013) [ 47.9 (Feb) [ 46.8 (Mar) [ 46.7 (Apr)

8 | The Green Book

(Percentage change from previous period)

2011

2012

2013¹

Annual

Q4

Annual

Q1

Q2

Q3

Q4

Dec

Jan

Feb

Mar

1.4

-0.3

-0.5

0.0

-0.2

-0.1

-0.6

-

-

-

-

Industrial production

3.5

-2.1

-2.4

-0.5

-0.5

0.4

-2.4

0.9

-0.6

0.5

-

Retail sales

-0.5

-1.2

-1.7

-0.3

-0.8

0.0

-1.5

-0.8

0.9

-0.3

-

Exports (y-o-y)

12.7

8.3

7.4

8.6

8.1

7.4

5.5

-3.1

5.1

-1.1

-

2.7

2.9

2.1

2.7

2.7

2.5

2.3

2.2

2.0

1.8

1.7

Real GDP

Consumer prices (y-o-y)
1. Preliminary
Source: Eurostat

Eurozone’s GDP growth and industrial production
Source: Eurostat
3

(%)

(%)

10
8

2

6
4

1

2
0

0

-2
-1

-4
-6

-2

-8
-3
2001. Q1

-10
2002. Q1

2003. Q1

2004. Q1

2005. Q1

2006. Q1

2007. Q1

2008. Q1

2009. Q1

2010. Q1

GDP (q-o-q, left)

2.
Private
consumption

2011. Q1

2012. Q1

Industrial production (q-o-q, right)

Private consumption in the first quarter of 2013 (advanced estimates of GDP) fell
0.3 percent quarter-on-quarter but rose 1.6 percent year-on-year.

(Percentage change from previous period)

2011
Private consumption²
(y-o-y)

2012¹

2013¹

Annual

Q1

Q2

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Q1

2.4

0.7

0.6

0.1

-0.2

1.7

0.8

0.4

0.7

0.8

-0.3

-

3.2

3.1

2.1

1.2

-

1.3

1.0

1.7

2.7

1.6

1. Preliminary
2. National accounts
Source: The Bank of Korea

The Green Book | 9

Retail sales in March increased 1.4 percent month-on-month and 1.7 percent yearon-year as nondurable goods such as automobile fuel and semi-durable goods
such as clothing saw their sales increase, but the sales of durable goods such as
communications devices fell.
(Percentage change from previous period)

2011

20131

2012

Annual

Q1

Q2

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Q1¹

Feb¹

Mar1

4.5

1.4

0.8

0.5

0.0

2.3

1.0

0.3

1.2

0.4

-1.2

-0.6

1.4

-

5.3

6.2

4.0

2.6

-

2.8

1.4

2.6

2.5

0.2

1.7

1.7

- Durable goods²

10.6

3.8

0.5

0.7

-0.9

5.3

2.5

1.9

2.8

2.3

-4.4

2.8

-3.1

• Automobiles

7.0

5.2

-3.3

4.6

-11.3

2.4

2.4

9.4

-1.6

9.0

-8.9

2.8

4.6

- Semi-durable goods³

3.7

0.9

1.4

1.7

-2.7

-1.1

-0.4

0.3

-1.1

1.7

1.3

1.1

4.7

- Nondurable goods⁴

2.1

0.4

0.6

-0.1

1.6

2.3

0.9

-0.6

1.5

-1.1

-0.7

-3.1

2.3

Retail sales
(y-o-y)

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

There is a possibility that April’s retail sales will be somewhat worse than March’s
as sales of major retail items, such as food, beverages and clothing, are all slowing
down along with durable goods sales.
Domestic sales of cars turned positive owing to an increase in business days.
Department store sales turned negative due to a decrease in weekend and holiday
openings by two days, and discount store sales took a sharp fall owing to an increase
in the number of mandatory Sunday closures.
Gasoline sales slowed down due to fewer holidays in April, despite a drop in
gasoline prices.
Gasoline prices (won/liter)
1,978 (4th week Mar), 1,971 (1st week Apr), 1,964 (2nd week), 1,955 (3rd week), 1,934 (4th week),
1,915 (5th week)
Credit card use grew at a slower pace in line with slowing consumption.
(y-o-y, %)

2012
Sep

2013

Oct

Nov

Dec

Jan

Feb

Mar

Apr
4.5

Credit card sales

15.7

9.2

14.2

7.1

6.2

3.4

5.6

Department store sales

-0.8

-0.4

9.1

-0.2

-8.2

1.7

7.5

-1.6

Large discount store sales

0.2

-6.6

-1.7

-5.0

-24.6

8.9

-4.4

-10.3

Domestic sales of gasoline

1.6

7.9

3.7

-2.8

2.9

-8.0

7.6

4.4

Domestic sales of cars

-3.1

4.3

13.2

7.5

1.6

-13.5

-1.0

0.8

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 April data)

10 | The Green Book

Private consumption
Source: The Bank of Korea (national accounts)
14

(%)

12
10
8
6
4
2
0
-2
-4
-6
2001. Q1

2002. Q1

2003. Q1

2004. Q1

2005. Q1

2006. Q1

2007. Q1

2008. Q1

2009. Q1

2010. Q1

Private consumption (y-o-y)

2011. Q1

2012. Q1

2013. Q1

Private consumption (q-o-q)

Retail sales
Source: Statistics Korea (industrial activity trend)
25

(%)

20
15
10
5
0
-5
-10
2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Consumer goods sales (m-o-m)

Consumer goods sales (y-o-y)

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

(y-o-y, %)

40
30
20
10
0
-10
-20
-30
2001. 1

2002. 1
Durable goods

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

Semi-durable goods

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Nondurable goods

The Green Book | 11

3.

Facility investment (advanced estimates of GDP) increased 3.0 percent quarter-onquarter but decreased 11.5 percent year-on-year in the first quarter of 2013.

Facility
investment

(Percentage change from previous quarter)

2011
Facility investment²
(y-o-y)

Annual

Q3

3.6
-

2012¹
Q2

2013¹

Q4

Annual

Q1

Q3

Q4

Q1

-1.8

-3.6

-1.9

10.4

-7.8

-5.2

-1.8

3.0

1.1

-3.6

-

8.8

-3.5

-6.9

-5.2

-11.5

- Machinery

4.2

-2.3

-1.8

-1.1

11.3

-8.5

-6.0

-3.2

-

- Transportation equipment

1.4

-0.1

-10.8

-5.0

6.7

-5.2

-1.7

3.7

-

2012. Q1

2013. Q1

1. Preliminary
2. National accounts
Source: The Bank of Korea

Facility investment
Source: The Bank of Korea (national accounts)
(%)

40
30
20
10
0
-10
-20

-30
2001. Q1

2002. Q1

2003. Q1

2004. Q1

2005. Q1

2006. Q1

2007. Q1

2008. Q1

2009. Q1

2010. Q1

Facility investment (q-o-q)

2011. Q1

Facility investment (y-o-y)

Facility investment by type
Source: The Bank of Korea (national accounts)
50

(y-o-y, %)

40
30
20
10
0
-10
-20
-30
-40
2001. Q1

2002. Q1

2003. Q1

Transportation equipment

12 | The Green Book

2004. Q1

2005. Q1

2006. Q1

2007. Q1

2008. Q1

2009. Q1

2010. Q1

2011. Q1

2012. Q1
Machinery

Despite an increase in transportation equipment investment, the facility investment
index in March declined 6.6 percent month-on-month due to weakness in
machinery investment. The index fell 9.2 percent year-on-year.
(Percentage change from previous quarter)

2011

2012

Annual Annual

Q1

2013¹

Q2

Q3

Q4

Q1¹

Jan

Feb¹

Mar¹

6.4

-5.0

-6.8

0.8

-3.3

-8.8

6.3

-6.6

10.7

-2.7

-8.2

-6.9

-14.4

-15.7

-18.5

-9.2

Facility investment index

4.0

-2.0

(y-o-y)

-

-

- Machinery

2.7

-2.2

8.1

-5.5

-6.9

-3.8

-4.5

-6.5

6.5

-11.3

- Transportation equipment

9.8

-1.1

-1.0

-1.8

-6.7

22.0

1.2

-16.7

5.9

9.3

1. Preliminary
Source: Statistics Korea

The improving corporate sentiment and an increase in machinery orders may bode
well for facility investment, but the low average manufacturing operation ratio and
facility investment adjustment pressure may act as negative factors.
Business survey index for manufacturing sector (Bank of Korea)
70 (Aug 2012) [ 75 (Sep) [ 72 (Oct) [ 70 (Nov) [ 67 (Dec) [ 70 (Jan 2013) [ 72 (Feb) [
76 (Mar) [ 80 (Apr) [ 81 (May)

(Percentage change from same period in previous year)

2011

2012

Annual Annual

2013¹

Q1

Q2

Q3

Q4

Q1¹

Jan

Feb¹

Mar¹

-13.4

-1.1

-19.8

-10.4

-21.5

-7.9

-3.6

-32.0

21.1

-5.3

-18.7

-2.0

3.9

8.3

4.5

-2.8

3.0

Domestic machinery orders

7.6

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

-

-

- Public

-2.6

-11.0

126.1

-59.7

86.7

-54.6

-47.4

169.8

-76.5

95.4

- Private

8.8

-13.6

-8.7

-15.1

-16.0

-15.1

-2.0

-8.3

-15.3

18.4

Machinery imports

7.1

-3.0

15.3

-4.3

-12.2

-8.2

-12.0

-4.4

-23.4

-7.2

Average manufacturing operation ratio

80.2

78.1

79.6

79.0

76.2

77.8

77.3

78.6

77.6

75.7

Facility investment adjustment pressure²

1.1

-1.4

0.7

-1.3

-3.0

-1.5

-2.8

6.9

-10.8

-4.0

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

The Green Book | 13

Machinery orders and machinery imports
Source: Korea International Trade Association (KITA), Statistics Korea
10

(trillion won)

(y-o-y, %)

60

9

50

8

40
30

7

20

6

10
0

5

-10

4

-20
-30

3
2
2001. Q1

70

-40
2002. Q1

2003. Q1

2004. Q1

2005. Q1

2006. Q1

2007. Q1

2008. Q1

2009. Q1

2010. Q1

2011. Q1

Machinery orders (left)

4.
Construction
investment

2012. Q1

-50
2013. Q1

Machinery imports (right)

Construction investment (advanced estimates of GDP) in the first quarter of 2013
increased 2.5 percent quarter-on-quarter and 0.7 percent year-on-year.

(Percentage change from previous quarter)

2011¹
Construction investment²
(y-o-y)

2012¹

2013¹

Annual

Q3

Q4

Annual

Q1

Q2

Q3

Q4

1Q

-4.7

-0.4

0.1

-2.2

-1.5

-1.3

0.7

-1.2

2.5

-

-3.6

-1.7

-

-0.4

-3.1

-0.3

-4.2

0.7

- Building construction

-2.7

-0.3

-1.0

-1.7

0.3

-2.6

0.1

-0.3

-

- Civil engineering works

-7.3

-0.7

1.5

-2.9

-3.9

0.4

1.5

-2.4

-

1. Preliminary
2. National accounts
Source: The Bank of Korea

The value of construction completed (constant) in March improved 3.2 percent
year-on-year, but decreased 3.0 percent month-on-month due to sluggish civil
engineering works despite an improvement in building construction.

14 | The Green Book

(Percentage change from previous quarter)

2011

2012

Annual Annual
Construction completed (constant)

-6.4

(y-o-y)

2013¹

Q1

Q2

Q3

Q4

Dec

Q1¹

Jan

Feb¹

Mar¹

-5.8

-5.6

-0.9

1.0

1.4

2.1

4.3

-0.3

5.6

-3.0

-

-

-4.9

-9.7

-2.3

-5.6

-8.3

5.0

8.8

3.6

3.2

- Building construction

-6.9

-7.6

-4.5

-4.8

1.0

1.8

3.0

7.3

1.8

5.5

0.7

- Civil engineering works

-5.6

-3.5

-6.9

4.1

0.9

1.0

1.1

0.6

-2.8

5.7

-7.5

2006. Q1

2007. Q1

2008. Q1

2009. Q1

1. Preliminary
Source: Statistics Korea

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

20
15
10
5
0
-5
-10

-15
2001. Q1

2002. Q1

2003. Q1

2004. Q1

2005. Q1

2010. Q1

Construction investment (q-o-q)

2011. Q1

2012. Q1

2013. Q1

Construction investment (y-o-y)

Construction investment by type
Source: The Bank of Korea (national accounts)
50

(y-o-y, %)

40
30
20
10
0
-10
-20
-30
2001. 1

2002. 1

2003. 1

Building construction

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

Residential buildings

2009. 1

2010. 1

2011. 1

2012. 1
Civil engineering works

The Green Book | 15

Construction investment is expected to continue to suffer due to poor leading
indicators such as construction orders and building permits.
However, the Housing Market Normalization Measures announced on April 1 may
boost housing transactions and have a positive effect on construction investment
by increasing new home sales and housing construction demand.
Housing transaction growth (y-o-y, %)

-34.6 (Aug 2012) [ -44.3 (Sep) [ -15.2 (Oct) [ -8.0 (Nov) [ 2.4 (Dec) [ -5.7 (Jan 2013) [
-14.2 (Feb) [ -1.4 (Mar)
(Percentage change from same period in previous year)

2011

2012

Annual Annual
Construction orders (current value)

2013¹

Q1

Q2

Q3

Q4

Dec

Q1¹

Jan

Feb¹

Mar¹

6.1

-8.9

33.3

-0.7

-13.6

-33.1

-43.0

-42.2

-52.7

-47.0

-24.1

-

-

15.1

-14.8

-6.1

-20.4

-10.8

-7.2

-23.7

57.7

-17.2

- Building construction

14.0

-8.7

27.4

-7.0

-7.1

-27.4

-37.5

-35.3

-65.1

-8.8

-18.9

- Civil engineering works

-6.0

-9.3

42.0

12.5

-26.3

-43.7

-51.6

-51.4

-22.6

-72.5

-33.3

9.9

-0.5

8.7

1.2

-7.3

-2.3

9.2

-12.4

-4,8

-17.6

-14.2

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

Building permit area

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

Leading indicators of construction investment
Source: Statistics Korea (construction orders)
Ministry of Land, Infrastructure and Transport (building construction permit area)
340

(y-o-y, %)

290
240
190
140
90
40
-10
-60
-110
2001. 1

2002. 1

2003. 1

Construction orders

16 | The Green Book

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Building permit area

5.

Exports in April increased 0.4 percent (preliminary) year-on-year to US$46.30
billion.

Exports and
imports

Exports grew only slightly despite strong IT exports, brisk exports to China and
two more days worked, due to a decrease in exports of automobiles, steel and
vessels and exports to Japan.
Export growth by item (y-o-y, %)
51.3 (mobile phones), 12.5 (semiconductors), -2.4 (automobiles), -13.6 (steel), -44.8 (vessels)
Export growth by region (y-o-y, %)
16.3 (China), 15.4 (ASEAN countries), 2.1 (US), -11.1 (Japan), 4.9 (EU), -12.5 (Middle East)

Average daily exports, an indicator adjusted to days worked, amounted to US$1.93
billion, down 7.9 percent year-on-year and posting a downturn for the first time in
six months since October 2012.
Average daily export growth (y-o-y, %)

-1.2 (Oct 2012) [ 3.9 (Nov) [ 7.1 (Dec) [ 1.7 (Jan 2013) [ 2.5 (Feb) [ 4.7 (Mar) [ -7.9 (Apr)

Average daily exports (US$ billion)

2.10 (Apr 2012), 2.10 (Q2) [ 1.90 (Q3), 1.90 (Jan 2013) [ 2.07(Feb) [ 2.11 (Mar) [ 1.93 (Apr)

The effects of the weakening yen on the economy are increasing; exports to Japan
continue to slow down and exports of items in competition with Japan, such as
automobiles and steel, are poor.

Exports by item
Source: Korea Customs Service, Ministry of Trade, Industry and Energy (export and import trend)
160

(y-o-y, %)

140
120
100
80
60
40
20
0
-20
-40
-60
-80
2001. 1

2002. 1

2003. 1

Export growth rate

2004. 1

2005. 1

2006. 1
Automobiles

2007. 1

2008. 1

2009. 1

2010. 1

Semiconductors

2011. 1

2012. 1

2013. 1
Steel

The Green Book | 17

(US$ billion)

2012

2013

Annual

Apr

Q1

Q2

Q3

Q4

Q1

Feb

Mar

Apr¹

547.87

46.10

134.85

140.13

133.13

139.77

135.47

42.34

47.44

46.30

(y-o-y, %)

-1.3

- 5.0

2.9

-1.7

-5.8

-0.4

0.5

-8.6

0.2

0.4

Average daily exports

2.00

2.10

1.97

2.09

1.90

2.04

2.02

2.07

2.11

1.93

Exports

1. Preliminary
Source: Korea Customs Service

Imports in April dropped 0.5 percent (preliminary) year-on-year to US$43.72
billion.
Despite an increase in consumer goods imports, imports slightly fell year-on-year
as commodities and capital goods imports declined.
Import growth by category (Apr 1-30, preliminary, y-o-y, %)
12.9 (consumer goods), -7.0 (commodities), -0.1 (capital goods)

Imports by type
Source: Korea Customs Service, Ministry of Trade, Industry and Energy (export and import trend)
100

(y-o-y, %)

80
60
40
20
0
-20
-40
-60
-80
2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

Import growth rate

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

Commodities

2013. 1

Capital goods

(US$ billion)

2012
Imports

2013

Annual

Apr

Q1

Q2

Q3

Q4

Q1

Feb

Mar

Apr¹

519.58

43.96

133.67

130.43

125.65

129.83

129.68

40.31

44.15

43.72

(y-o-y, %)

-0.9

-0.5

7.8

-2.9

-6.9

-1.1

-3.0

-10.6

-2.0

-0.5

Average daily imports

1.90

2.00

1.95

1.96

1.79

1.89

1.94

1.96

1.96

1.82

1. Preliminary
Source: Korea Customs Service

18 | The Green Book

Exports and imports
Source: Korea Customs Service, Ministry of Trade, Industry and Energy (export and import trend)
60

(US$ billion)

50
40
30
20
10
0
-10
2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

Trade balance

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

Exports

2013. 1
Imports

The trade balance (preliminary) in April posted a surplus of US$2.58 billion.
(US$ billion)

2012

Trade balance

2013

Annual

Apr

Q1

Q2

Q3

Q4

Q1

Feb

Mar

Apr¹

28.29

2.14

1.18

9.70

7.47

9.94

5.78

2.02

3.29

2.58

1. Preliminary
Source: Korea Customs Service

6.
Mining and
manufacturing
production

Mining and manufacturing production in March fell 2.6 percent month-onmonth and 3.0 percent year-on-year, as weakness in automobiles and audiovisual communications equipment offset growth in mechanical equipment and
semiconductors & parts.
Compared to the previous month, production of mechanical equipment (up 3.8%),
semiconductors & parts (up 1.3%) and electrical equipment (up 1.1%) rose, while
automobiles (down 9.8%), audio-visual communications equipment (down 9.1%)
and other transportation equipment (down 5.4%) fell.
Compared to a year ago, production of semiconductors & parts (up 5.9%) and
medical, precision & optical instruments (up 12.1%) increased, while production
of automobiles (down 10.0%), mechanical equipment (down 8.4%) and audiovisual communications equipment (down 17.8%) went down.
The manufacturing inventory-shipment ratio rose by 1.5 percentage points monthon-month as inventories decreased 0.4 percent and shipments fell 1.8 percent.
The Green Book | 19

Inventories of chemical products (up 2.7%), audio-visual communications
equipment (up 13.3%) and refined petroleum (up 4.1%) rose month-on-month,
while semiconductors & parts (down 4.7%), automobiles (down 6.4%) and
mechanical equipment (down 3.2%) declined.
Shipments of electrical equipment (up 3.3%), semiconductors & parts (up 0.8%)
and nonmetallic minerals (up 2.7%) climbed, while automobiles (down 6.8%),
chemical products (down 4.3%) and audio-visual communications equipment
(down 8.0%) slipped.
The average operation ratio of the manufacturing sector fell by 1.9 percentage
points month-on-month to 75.7 percent.

Industrial production
Source: Statistics Korea (industrial activity trend)
50

(%)

40
30
20
10
0
-10
-20
-30
2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

Industrial production (m-o-m)

2012. 1

2013. 1

Industrial production (y-o-y)

Shipment and inventory
Source: Statistics Korea (industrial activity trend)
10

(m-o-m, %)

8
6
4
2
0
-2
-4
-6
-8
-10
2001. 1

2002. 1

2003. 1

Shipment growth

20 | The Green Book

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Inventory growth

Average manufacturing operation ratio
Source: Statistics Korea (industrial activity trend)
100

( %)

90

80

70]

60

50
2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

(Percentage change from previous quarter or month)

2012

2013¹

Annual

Q1

Q2

Q3

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

-

1.7

-0.5

-2.2

(y-o-y)

0.8

3.6

1.1

-1.0

Manufacturing production (q-o-q, m-o-m)
Mining and
(y-o-y)
manufacturing
Shipment
activity2
- Domestic demand
- Exports

Q4

Dec

Q1¹

Jan

Feb¹

Mar¹

2.9

1.6

-0.9

-1.2

-0.9

-2.6

-0.1

-0.4

-1.7

7.7

-9.4

-3.0

-

1.7

-0.5

-2.3

3.0

1.5

-0.9

-0.9

-1.2

-2.5

0.8

3.8

1.0

-1.1

-0.2

-0.5

-1.7

8.0

-9.7

-3.0

0.7

1.8

-0.3

-2.4

2.0

2.2

-0.3

-0.7

-1.1

-1.8

-1.1

0.7

-0.3

-1.4

1.0

1.6

-0.7

-0.6

-0.6

-2.8

3.0

3.2

-0.3

-3.6

3.2

3.1

0.0

-1.2

-1.5

-0.7

Inventory3

2.3

1.6

-1.8

-3.0

2.3

2.3

-0.4

0.9

-2.6

-0.4

Manufacturing Average operation ratio (%)
activity
Production capacity4

78.1

79.6

79.0

76.2

77.8

78.4

77.3

78.6

77.6

75.7

2.2

3.1

2.3

1.9

1.3

1.3

1.1

1.1

1.1

1.0

1. Preliminary
2. Including mining, manufacturing, electricity, and gas industry
3. End-period
4. Percentage change from same period in previous year
Source: Statistics Korea

Although mining and manufacturing production is expected to pick up from the
previous month, with brisk exports of mobile phone parts projected following the
launch of new models, its recovery is likely to be limited due to large scale facility
repair in the petroleum sector and continuing disruptions to production in the
automobile industry.
Growth of mobile phone exports (y-o-y, %)

16.3 (Oct 2012) [ 23.4 (Nov) [ 12.6 (Dec) [ 32.2 (Jan 2013) [ 15.1 (Feb) [ 21.8 (Mar) [ 51.3 (Apr)

Growth of petroleum product exports (y-o-y, %)

27.1 (Oct 2012) [ 10.1 (Nov) [ -1.5 (Dec) [ 11.1 (Jan 2013) [ -1.5 (Feb) [ 3.3 (Mar) [ -11.2 (Apr)

Growth of automobile exports (y-o-y, %)

-4.4 (Oct 2012) [ 1.9 (Nov) [ -6.3 (Dec) [ 23.3 (Jan 2013) [ -16.3 (Feb) [ -11.5 (Mar) [ -2.4 (Apr)
The Green Book | 21

7.
Service sector
activity

Service output in March declined 1.0 percent month-on-month as weaknesses
in publishing & communications services and professional, scientific & technical
services offset growth in wholesale & retail. On a yearly basis, service output rose
0.7 percent. Meanwhile, service output in the first quarter of 2013 grew 0.2 percent
quarter-on-quarter, showing a slight improvement from the previous quarter,
when output remained unchanged.
Wholesale & retail increased 0.7 percent month-on-month as retail sales improved
due to increasing sales of automobiles, clothes and car fuel.
Real estate & renting rose 0.5 percent, with housing transactions increasing from
47,000 in February to 67,000 in March.
Publishing & communications services declined 6.0 percent as wireless
communications production faltered due to a slowdown in LTE subscriber growth.
Professional, scientific & technical services fell 6.3 percent as a decline in
construction investment led to weaknesses in construction technology and
engineering services.
Hotels & restaurants, which in February had improved for the first time in four
months, declined again in March, falling 0.9 percent from the previous month.
(Percentage change from previous period)

Weight
Service activity index
- Wholesale & retail
- Transportation services

2011
Annual Q1

Q2

20131

2012
Q3

Q4 Annual Q1
0.0

1.6

Q2

Q3

Q4

Q1

1

100.0

3.2

1.2

0.5

1.2

0.5

0.1

0.9

0.0

21.6

3.8

1.6

1.0

0.4 -0.3

0.7 -0.1

0.6

0.1

0.7 -1.1

8.5

4.5

2.6 -0.4

1.1 -1.3

1.2

0.2

0.9

0.6

1.2

0.2

Feb1 Mar1
1.8 -1.0
1.0

0.7

0.6 -0.5 -0.4

- Hotels & restaurants

7.2 -1.3 -0.4

2.2 -2.7 -1.4 -1.2 -0.1

0.9

1.3 -1.9 -0.8

1.0 -0.9

- Publishing & communications services

8.4

5.1

0.7

0.7

0.6

1.6 -0.6

0.6

0.5 -6.0

14.7

6.8

2.9 -0.5

3.1

1.7

- Financial & insurance services
- Real estate & renting

5.3 -7.6 -0.5 -0.6

3.3

1.0

3.9 -0.8

3.0 -0.4
2.8

2.3 -2.6

0.9 -2.9 -4.3 -4.0

2.3 -1.3

0.5

1.6 -2.6

- Professional, scientific & technical services

5.6

0.5 -3.7

2.7

1.1

4.1

4.0 -0.6

0.8

- Business services

3.3

5.2

1.2

0.5

0.3

3.5

1.2 -1.7 -0.2

- Educational services
- Healthcare & social welfare services

1.2

2.9

0.4 -0.7 -2.0
2.1

1.9 -1.7
4.9

0.5

8.2 -6.3
2.3 -0.4

10.9

2.2

0.5 -1.0

1.1

1.0

0.9

0.6 -1.4

0.0

0.9

1.2

2.0

0.5

7.5

6.4

3.0

1.4

1.5

5.8

1.4

2.5

1.0

0.2

0.8

1.6

0.4

1.4

2.8

0.9

2.7 -1.5 -3.0 -0.3

3.9

2.4

0.9

- Entertainment, cultural & sports services

2.9

2.7

0.4

3.0 -1.0

- Membership organizations

3.6

1.6

0.4

0.0 -0.2 -1.2 -1.4 -0.8 -0.4

1.9 -0.6

- Sewerage & waste management

0.6

3.3 -3.2

8.6

0.3 -4.8 -1.0 -7.4

0.8

2.9 -0.3 -7.3

5.8

1.8

3.2 -2.6
6.5

1. Preliminary
Source: Statistics Korea

In April, wholesale & retail is expected to decline due to sluggish retail sales, but
financial & insurance services and real estate & renting may improve thanks to
increasing stock and real estate transactions.
Average daily stock transactions (trillion won)

7.9 (Sep 2012) [ 6.8 (Oct) [ 6.2 (Nov) [ 5.8 (Dec) [ 6.3 (Jan 2013) [ 5.5 (Feb) [ 6.0 (Mar)
[ 6.9 (Apr)
22 | The Green Book

Service industry
Source: Statistics Korea (service industry activity trend)
20

(%)

15
10
5
0
-5
-10
2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Service industry activity (m-o-m)

Service industry activity (y-o-y)

Wholesale & retail
Source: Statistics Korea (service industry activity trend)
20

(%)

15
10
5
0
-5
-10
2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

Wholesale & retail (y-o-y)

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Wholesale & retail (m-o-m)

March 2013 service industry by business
Source: Statistics Korea (service industry activity trend)

4
2

Tot
al i
nde
x

0
-2

&r
eta
il
Tra
nsp
ort
atio
ns
erv
ice
Ho
s
tels
&r
est
aur
ant
s
Pub
lish
ing
&c
om
mu
Fin
nic
anc
atio
ial
ns
&i
ser
nsu
vic
es
ran
c
e se
Rea
rvic
l es
es
tat
e&
ren
Pro
tin
ser fess
g
vic ion
es al,
scie
nti
fic
B
&t
sup usine
ech
por ss fa
nic
al
t se cili
t
rvic y m
es an
age
Edu
me
nt &
cat
ion
bus
al s
ine
erv
ss
i
c
e
He
s
alth
car
e&
soc
ial
we
Ent
lfar
ert
e se
ain
rvic
me
es
nt,
cul
Me
tur
oth mb
al &
er p ersh
spo
ers ip o
rts
ona rga
ser
n
l
vic
ser iza
Sew
es
vic tion
ma era
es s,
ter ge
rep
ial , w
air
rec ast
&
ove e m
ry & an
rem agem
edi ent
atio ,
na
ctiv
itie
s

(y-o-y, %)

Wh
ole
sal
e

6

-4
-6

The Green Book | 23

8.
Employment

The number of workers on payroll in March increased by 249,000 from a year
earlier to 24,510,000 and the employment rate fell 0.2 percentage points from the
previous year to 58.4 percent.
Employment growth remains sluggish, increasing in the 200,000 range for two
months in a row, although it has improved after having taken a hit in February due
to the Lunar New Year holiday.
Workers in the manufacturing sector grew by a larger margin, while growth in the
number of workers in the service sector slowed.
By status of workers, growth in the number of regular workers accelerated greatly,
while self-employed workers declined for the third straight month.

2010

2011

Annual Annual Q3
Number of employed (million)

2012
Q4 Annual Mar

Q1

2013

Q2

Q3

Q4

Q1

Feb

Mar

23.83 24.24 24.48 24.46 24.68 24.27 23.93 25.00 24.99 24.80 24.18 23.98 24.51

Employment rate (%)

58.7

59.1

59.5

59.4

59.4

58.6

57.8

60.2

60.0

59.4

57.7

57.2

58.4

(Seasonally adjusted)

58.7

59.1

59.1

59.2

59.4

59.4

59.3

59.4

59.5

59.3

59.2

59.1

59.2

Employment growth (y-o-y, thousand)

323

415

363

474

437

419

467

430

506

342

257

201

249

(Excluding agriculture, forestry & fisheries)

405

440

414

497

451

512

498

454

504

344

266

216

244

191

63

-12

-75

14 -104 -102

-66

85

140

119

79

123

33

-2

-35

71

22

74

79

33

17

-40

-64

-95

-51

- Services

200

386

472

514

416

564

541

491

397

236

199

222

156

- Agriculture, forestry & fisheries

-82

-25

-51

-23

-14

-92

-31

-24

2

-2

-9

-15

5

- Wage workers

517

427

392

374

315

356

360

281

317

303

329

267

322

• Regular workers

697

575

572

500

436

356

413

379

485

469

554

529

611

• Temporary workers

-34

-78

-76

-10

-2

215

110

73

- Manufacturing
- Construction

• Daily workers

-79 -109 -152 -151 -228

-146

-70 -104 -115 -120 -215 -163 -171

-89

-57

-194

-11

-29

100

121

63

108

150

189

-118

1

34

125

124

125

149

173

- Male

181

238

208

257

234

178

238

- Female

142

177

155

216

203

241

- 15 to 29

-43

-35

-1

-18

-36

- 30 to 39

-4

-47

-83

-56

- 40 to 49

29

57

46

- 50 to 59

294

291

47

149

- Non-wage workers
• Self-employed workers

- 60 or more
Source: Statistics Korea

24 | The Green Book

-73 -110

-61

39

-71

-66

-73

143

33

-28

-15

-48

242

284

172

123

47

148

230

188

223

170

135

154

101

26

1

-8

-57

-80 -117 -141 -128

-31

-95

-65

-80

33

-10

-15

-17

-1

47

11

35

28

8

12

-3

12

13

-26

270

315

270

293

326

260

273

220

196

176

213

131

185

222

160

178

251

245

215

181

170

191

Number of persons employed and employment growth
Source: Statistics Korea (employment trend)
1,200

(thousand)

(million)

26

1,000
25

800
600

24

400
23

200
0

22

-200
21

-400
2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

Employment growth (y-o-y, left)

2011. 1

2012. 1

2013. 1

Number of employed (seasonally adjusted, right)

Share of persons employed by industry
Source: Statistics Korea (employment trend)
100

(%)

80
60

70.3 69.9 69.2 68.8 68.4 68.4 69.1 68.9 69.1 68.7 69.2 70.2 71.0 70.8 70.3 69.7 69.2 69.1 69.3 69.2 69.0 68.7 69.0 70.4 70.9 71.1 70.2

40
7.0
20
0

7.0

7.0

7.1

7.2

7.3

7.1

7.3

7.1

7.4

7.5

7.6

7.2

7.1

7.2

7.2

7.2

7.2

7.1

7.1

7.1

7.3

7.2

7.2

6.9

6.7

6.9

17.9 17.8 17.3 16.9 16.8 16.7 16.6 16.5 16.5 16.4 16.5 16.9 17.0 17.1 16.6 16.3 16.2 16.3 16.4 16.5 16.6 16.7 16.9 17.1 17.4 17.3 16.9
4.4

4.9

2011. 1 2

6.1

6.8

7.2

7.2

6.9

7.0

7.0

7.1

6.5

5.0

4.7

5.6

6.5

7.0

7.0

6.8

6.8

6.8

6.9

6.5

4.9

4.6

5.6

3

4

5

6

7

8

9

10

11

12 2012. 1 2

3

4

5

6

7

8

9

10

11

12 2013. 1 2

3

Services

4.4

Construction

Manufacturing

4.3

Agriculture, forestry & fisheries

Share of persons employed by status of workers
Source: Statistics Korea (employment trend)
100
80

(%)

4.7

5.1

5.4

5.6

5.5

5.3

5.3

5.1

5.4

5.2

4.6

4.5

4.5

4.8

5.1

5.4

5.4

5.3

5.3

5.4

5.3

5.2

4.5

4.2

4.2

4.7

22.8 23.0 23.3 23.2 23.0 22.9 23.0 23.2 23.4 23.2 23.0 22.9 23.1 23.1 23.4 23.4 23.3 23.2 23.4 23.3 23.2 23.1 22.9 22.7 22.7 22.8 23.0
7.2

60

4.8

7.2

7.3

7.5

7.5

7.6

7.4

7.2

6.4

7.0

7.2

7.0

6.5

6.5

6.3

6.6

6.8

6.7

6.7

6.4

6.4

6.7

6.8

6.6

6.2

6.0

6.0

20.9 20.5 20.1 20.3 20.5 20.7 20.9 20.5 20.8 20.6 20.5 20.7 20.5 20.5 20.6 20.6 20.5 20.3 20.2 19.9 19.8 19.8 19.9 20.0 19.9 19.7 19.5

40
46.9 47.3 47.0
20 44.4 44.5 44.2 43.7 43.4 43.3 43.5 43.7 44.3 43.8 44.1 44.9 45.4 45.4 44.9 44.3 44.0 44.4 44.4 45.1 45.2 45.1 45.2 46.2
0
2011. 1 2

3

4

5

Unpaid family workers

6

7

8

9

10

11

Self-employed workers

12 2012. 1 2

3

4

Daily workers

5

6

7

8

9

10

Temporary workers

11

12 2013. 1 2

3

Regular workers

The Green Book | 25

The number of unemployed persons in March decreased by 62,000 year-on-year to
883,000, while the unemployment rate fell 0.2 percentage points from the previous
year to 3.5 percent.
However, the youth unemployment rate rose 0.3 percentage points as the number
of employed youth continued to decline.

2010

2011

Annual Annual

2012

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Feb

Mar

Number of persons unemployed (thousand)

920

855

786

740

820

945

947

841

770

722

907

990

883

Unemployment growth (y-o-y, thousand)

31

-65

-88

-68

-35 -128

-82

-23

-16

-18

-40

-53

-62

-7

-48

-48

-41

-26

-72

-54

-19

-16

-13

-7

13

-42

- Male
- Female

Annual Mar

2013

38

-17

-40

-27

-9

-56

-28

-4

0

-6

-33

-65

-20

Unemployment rate (%)

3.7

3.4

3.1

2.9

3.2

3.7

3.8

3.3

3.0

2.8

3.6

4.0

3.5

(Seasonally adjusted)

3.7

3.4

3.2

3.1

3.2

3.4

3.5

3.3

3.1

3.0

3.3

3.5

3.2

- 15 to 29

8.0

7.6

6.7

7.1

7.5

8.3

8.2

8.1

6.8

7.0

8.4

9.1

8.6

- 30 to 39

3.5

3.4

3.2

2.9

3.0

3.4

3.2

3.2

2.8

2.7

3.3

3.5

3.2

- 40 to 49

2.5

2.1

2.0

1.9

2.0

2.4

2.4

2.0

2.0

1.8

2.1

2.1

2.3

- 50 to 59

2.5

2.1

2.1

1.8

2.1

2.5

2.3

2.0

2.2

1.8

2.3

2.6

2.2

- 60 or more

2.8

2.6

2.1

1.8

2.4

3.4

4.4

2.0

1.9

1.6

3.4

4.6

2.3

Source: Statistics Korea

The economically inactive population in March was up 359,000 from a year earlier
to 16,560,000, while the labor force participation rate decreased 0.4 percentage
points to 60.5 percent.
The number of those economically inactive due to education (up 136,000), old age
(up 129,000) and housework (up 117,000) increased while those due to rest (down
68,000) decreased.

2010

2011

Annual Annual Q3
Economically inactive population (million)

2012
Q4 Annual Mar

Q1

2013

Q2

Q3

Q4

Q1

Feb

Mar

15.84 15.95 15.85 16.01 16.08 16.21 16.50 15.67 15.90 16.26 16.83 16.95 16.56

Labor force participation rate (%)

61.0 61.1 61.5 61.1 61.3 60.9 60.1 62.3 61.8 61.1 59.9 59.6 60.5

(seasonally adjusted)

61.0 61.1 61.0 61.1 61.3 61.5 61.4 61.4 61.4 61.1 61.2 61.2 61.2

Growth in economically inactive population
(y-o-y, thousand)

143

112

191

53

128

206

- Childcare

-125

-5

17

23

-2

-9

- Housework

201

101

143

103

123

167

- Education

12

-51

-78

-69

-12

-42

- Old age
- Rest
Source: Statistics Korea

26 | The Green Book

103

110

57

244

336

409

359

4

-7

-3

0

-7

17

85

181

101

126

143

177

117

-28

-64

5

39

118

117

136

174

156

186

154

159

129

-71 -142 -125 -106

-66

-68

-

80

-45

-22

2

148

91

76

-56

182

193

131

-53

129

126

Employment rate
Source: Statistics Korea (employment trend)
64

(%)

63
62
61
60
59
58
57
56
55
2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

Original rate

2012. 1

2013. 1

Seasonally adjusted rate

Unemployment rate
Source: Statistics Korea (employment trend)
6

(%)

5

4

3

2
2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

Original rate

2012. 1

2013. 1

Seasonally adjusted rate

Labor force participation rate
Source: Statistics Korea (employment trend)
65

(%)

64
63
62
61
60
59
58
57
2001. 1

2002. 1
Original rate

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Seasonally adjusted rate

The Green Book | 27

9.
Financial markets

9.1 Stock market
The Korean stock price index in April fell 2.0 percent to 1,964 points from the
previous month’s 2,005 points.
The KOSPI Composite declined due to concerns over worsening corporate
performance led by a weakening yen and continuing North Korea risks.
Foreign investors continued to be net sellers of Korean stocks in April, selling 2.9
trillion won worth of stocks compared to 2.1 trillion won in the previous month.
(End-period)

KOSPI

KOSDAQ

Mar 2013

Apr 2013

Change1

Mar 2013

Apr 2013

Stock price index (points)

2,004.9

1,964.0

-40.9 (-2.0%)

555.0

563.9

8.9 (1.6%)

Market capitalization (trillion won)

1,161.7

1,137.6

-24.1 (-2.1%)

124.0

126.4

2.4 (1.9%)

3.8

4.4

0.6 (15.8%)

2.2

2.5

0.3 (13.6%)

34.6

34.2

-0.4 (-1.2%)

8.8

8.5

-0.3 (-3.4%)

Average daily trade value (trillion won)
Foreign stock ownership (%)

Change1

1. Change from the end of the previous month
Source: Korea Exchange

Stock prices
2,200

(monthly average, KOSPI Jan 4, 1980=100, KOSDAQ Jul 1, 1996=1,000)

2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

KOSPI

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1
KOSDAQ

9.2 Exchange rate
The won/dollar exchange rate in April fell 9.9 won to 1,101.2 won from 1,111.1
won at the end of March.
The won/dollar exchange rate rose to 1,140.1 won due to North Korea risks and the
outflow of funds from foreign investors selling stocks, but slipped to the 1,101 won
range as poor economic indicators in the US led to the weakening of the dollar.

28 | The Green Book

The won/100 yen exchange rate fell 54.9 won in April. Amid a strong won trend,
the announcement of the monetary easing policy from the Bank of Japan (BOJ) on
April 4 has weakened the yen.
(End-period)

2008

2009

2010

2011

2012

2013

Dec

Dec

Dec

Dec

Dec

Mar

Apr

Change1

Won/dollar

1,259.5

1,164.5

1,134.8

1,151.8

1,070.6

1,111.1

1,101.2

-2.8

Won/100 yen

1,396.8

1,264.5

1,393.6

1,481.2

1,238.3

1,181.5

1,126.6

9.9

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

Foreign exchange rate
1,800

(month-end, ₩)

1,600
1,400
1,200
1,000
800
600
2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

Won/dollar

2012. 1

2013. 1
Won/100 yen

Daily foreign exchange rate trend
1,800

(₩)

1,600
1,400
1,200
1,000
800
600
2008. 1. 2

2008. 8. 11
Won/dollar

2009. 3. 18

2009. 10. 19

2010. 5. 25

2010. 12. 27

2011. 8. 3

2012. 3. 9

2012. 10. 16
Won/100 yen

The Green Book | 29

9.3 Bond market
3-year Treasury bond yields fell 3 basis points in April to 2.49 percent from the
previous month’s 2.52. Despite the government’s announcement of a supplementary
budget, the yields fell due to poor global economic data.
(End-period, %)

2007

2008

2009

2010

2011

2012

2013

Dec

Dec

Dec

Dec

Dec

Dec

Mar

Apr

Change1

Call rate (1 day)

5.02

3.02

2.01

2.51

3.29

2.77

2.75

2.78

3

CD (91 days)

5.82

3.93

2.88

2.80

3.55

2.89

2.81

2.81

-

Treasury bonds (3 yrs)

5.74

3.41

4.44

3.38

3.34

2.82

2.52

2.49

-3

Corporate bonds (3 yrs)

6.77

7.72

5.56

4.27

4.21

3.29

2.88

2.85

-3

Treasury bonds (5 yrs)

5.78

3.77

4.98

4.08

3.46

2.97

2.58

2.56

-2

1. Basis point, changes from the previous month

Interest rates
Source: The Bank of Korea
10

(monthly average, yearly, %)

9
8
7
6
5
4
3
2
1
2001. 1

2002. 1

2003. 1

2004. 1

3-yr corporate bonds yield

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

3-yr treasury bonds yield

2010. 1

2011. 1

2012. 1

2013. 1

Overnight call rate (daily)

9.4 Money supply & money market
M2 (monthly average) in February expanded 5.3 percent from a year earlier.
M2 growth accelerated as money supply in the foreign sector surged resulting from
the upswing of the current account and foreign investors’ securities investment,
and also as money supply in the private sector widened due to securities investment
from asset management companies (AMC).

30 | The Green Book

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

2008

2009

2010

2011

2012

Annual Annual Annual Annual Annual

2013

Q1

Q2

Q3

Q4

Dec

Jan

Feb

Feb 1
472.2

M12

-1.8

16.3

11.8

6.6

3.8

1.8

3.6

4.3

5.5

5.8

5.8

8.0

M2

14.3

10.3

8.7

4.2

5.2

5.3

5.6

5.6

4.5

4.5

4.8

5.3

Lf

3

11.9

7.9

8.2

5.3

7.8

7.5

8.5

7.9

7.1

7.3

7.7

8.1

1,857.1
4

2,488.54

1. Balance at end February 2013, trillion won
2. M1 excluding corporate MMFs and individual MMFs while including CMAs
3. Liquidity aggregates of financial institutions (mostly identical with M3)
4. Preliminary

Total money supply
Source: The Bank of Korea
40

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

30
20
10
0
-10
-20
2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

Reserve money

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

M1

2013. 1
Lf

Bank deposit growth slowed in March while AMC deposits expanded.
Bank deposit growth slowed (7.7 trillion won [ 4.7 trillion won), led by instant
access deposits, due to huge outflows of corporate deposits resulting from interest
rate cuts on money market deposit accounts (MMDA).
AMC deposits expanded as bond funds (0.8 trillion won [ 1.4 trillion won) and
new funds (0.6 trillion won [ 2.5 trillion won) rose due to market rate cuts.
(Change, end-period, trillion won)

2009

2010

Annual

Annual

2011

2012

Annual

Mar

2013

Annual

Mar

Feb

Mar

Mar 1

Bank deposits

54.8

36.9

58.9

-11.4

37.0

15.2

4.4

1.4

1,139.2

AMC deposits

-27.6

-16.7

-16.6

0.6

18.8

4.0

0.9

2.1

335.6

1. Balance at end March 2013, trillion won

The Green Book | 31

Deposits in financial institutions
Source: The Bank of Korea
30

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

20
10
0
-10
-20
2001. 1

2002. 1

10.
Balance of
payments

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Korea’s current account (preliminary) in March posted a surplus of US$4.98 billion,
staying in the black for 14 consecutive months.
The goods account surplus rose from US$2.56 billion in February to US$4.21
billion in March. Exports outpaced imports as the exports of IT products, such as
mobile phones, improved.
Goods exports (US$ billion)
42.22 (Feb 2013) [ 47.99 (Mar)
Goods imports (US$ billion)
39.66 (Feb 2013) [ 43.78 (Mar)
However, exports of automobiles and steel and exports to Japan slumped due to
the weak yen.
Export growth by item (y-o-y, %)
12.0 (mobile phones), 7.0 (semiconductors), -10.5 (automobiles), -8.1 (steel), -14.4 (vessels)
Export growth by region (y-o-y, %)

6.0 (China), 8.3 (Southeast Asia), -16.1 (US), -18.2 (Japan), -8.4 (EU)

32 | The Green Book

The service account switched to a surplus of US$0.91 billion from a deficit of
US$0.46 billion, helped by improving business service and intellectual property
accounts.
The primary income account swung to a deficit of US$0.22 billion from a surplus
of US$0.63 billion due to payments of overseas dividends. The secondary income
account turned to a surplus of US$0.09 billion from a deficit of US$0.02 billion.
(US$ billion)

2012

2013

Annual

Mar

Q1

Q2

Q3

Q4

Jan

Feb

Mar1

Q11

Current account

43.14

2.97

2.56

11.19

14.56

14.94

2.33

2.71

4.98

10.02

- Goods balance

38.34

2.93

2.61

8.52

13.34

13.98

2.62

2.56

4.21

9.39

- Service balance

2.68

0.70

-0.65

2.31

0.65

0.36

-0.93

-0.46

0.91

-0.48

- Primary income balance

4.89

-0.32

1.49

0.82

1.04

1.54

0.97

0.63

-0.22

1.38

- Secondary income balance

-2.76

-0.34

-0.89

-0.47

-0.47

-0.93

-0.33

-0.02

0.09

-0.26

1. Preliminary
Source: The Bank of Korea

The capital and financial account (preliminary) in March posted a net outflow of
US$6.74 billion.
Capital & financial account balance (US$ billion)
-1.38 (Q1 2012) [ 7.97 (Q2) [ -13.34 (Q3) [ -20.96 (Q4), -0.91 (Jan 2013) [ -3.27 (Feb) [
-6.74 (Mar)

Net outflow in direct investment widened to US$1.87 billion from the previous
month’s US$0.78 billion due to an increase in overseas direct investment.
The portfolio investment account switched to a net outflow of US$3.39 billion
from a net inflow of US$1.99 billion as foreign investors’ equity investment
turned to a net outflow.
The net inflow of financial derivatives contracted to US$0.15 billion from US$0.69
billion in the previous month, while the net outflow of the other investment
account narrowed to US$0.15 billion from US$3.22 billion.
The current account is expected to maintain a surplus, helped by a goods account
surplus resulting from a trade surplus in April.

The Green Book | 33

Current account balance
Source: The Bank of Korea (balance of payments trend)
8

(US$ billion)

6
4
2
0
-2
-4
-6
2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

Goods account

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

Service account

2012. 1

2013. 1

Current account

Travel account balance
Source: The Bank of Korea (balance of payments trend)
4

(US$ billion)

3
2
1
-1
-2
-3
2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

Travel balance

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

Travel revenue

2012. 1

2013. 1

Travel payment

Capital & financial account balance
Source: The Bank of Korea (balance of payments trend)
15

(US$ billion)

10
5
0
-5
-10
-15
2001. 1

2002. 1

2003. 1

Portfolio investment

34 | The Green Book

2004. 1

2005. 1

2006. 1

Direct investment

2007. 1

2008. 1

2009. 1

Financial derivatives

2010. 1

2011. 1

2012. 1

2013. 1

Capital & financial account

11.

11.1 Prices

Prices and
international
commodity
prices

Consumer prices in April rose 1.2 percent year-on-year, staying stable at the 1.0
percent range for six consecutive months. On a monthly basis, prices fell 0.1
percent.
Core consumer prices, which exclude oil and agricultural products, rose 1.4
percent year-on-year. Core consumer prices based on the OECD method, which
exclude food and energy, rose 1.4 percent year-on-year. Consumer prices for basic
necessities, a barometer of perceived consumer prices, were up 0.7 percent yearon-year but down 0.2 percent month-on-month.
The average annual expected inflation fell 0.1 percentage point from the previous
month and the import prices declined 10.8 percent year-on-year.
Expected inflation (%)

3.7 (Jul 2012) [ 3.5 (Aug) [ 3.3 (Sep) [ 3.3 (Oct) [ 3.2 (Nov) [ 3.1 (Dec) [ 3.2 (Jan 2013)
[ 3.2 (Feb) [ 3.2 (Mar) [ 3.1 (Apr)

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

-2.2 (Sep 2012) [ -6.4 (Oct) [ -7.9 (Nov) [ -9.0 (Dec) [ -10.6 (Jan 2013) [ -8.6 (Feb)
[ -10.8 (Mar)

<Consumer price inflation>

(%)

2012

2013

Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
-0.1 0.0 0.2 -0.1 -0.2 0.4 0.7 -0.1 -0.4 0.2 0.6 0.3 -0.2 -0.1

Month-on-Month
Year-on-Year

2.6 2.5 2.5 2.2 1.5 1.2 2.0 2.1 1.6 1.4 1.5 1.4 1.3 1.2

Consumer prices excluding oil and agricultural
products (y-o-y)

1.9 1.8 1.6 1.5 1.2 1.3 1.4 1.5 1.3 1.2 1.2 1.3 1.5 1.4

Consumer prices excluding food and energy (y-o-y)
Consumer prices for basic necessities (y-o-y)

1.7 1.6 1.5 1.4 1.2 1.2 1.4 1.4 1.4 1.4 1.4 1.2 1.4 1.4
2.0 2.0 2.2 1.8 0.8 0.6 1.7 1.6 1.0 0.7 0.8 0.8 0.8 0.7

Source: Statistics Korea

Prices
Source: Statistics Korea (consumer price trend) & The Bank of Korea (producer prices)
16

(y-o-y, %)

13
10
7
4
1
-2
-5
2001. 1

2002. 1

2003. 1

Consumer price inflation

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

Core inflation

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Producer price inflation

The Green Book | 35

The prices of agricultural products (down 0.8%, m-o-m) fell as a result of the
shipment of spring vegetables, and oil product prices (down 1.8%, m-o-m) also
declined due to stable international oil prices, contributing to stabilizing consumer
prices.
Agricultural, livestock & fishery product prices increased 0.1 percent month-onmonth. The prices of livestock (up 2.1%, m-o-m) and fishery products (up 1.0%,
m-o-m) rose, while agricultural product prices (down 0.8%, m-o-m) fell.
Manufactured product prices slipped 0.7 percent month-on-month. The prices of
oil products (down 1.8%, m-o-m), processed food (down 0.2%, m-o-m) and durable
goods (down 0.3%, m-o-m) fell.
Personal service prices rose 0.2 percent month-on-month as dining out expenses
(up 0.3%, m-o-m) and other personal service prices (up 0.2%, m-o-m) rose due to
rising springtime outings.

<Consumer price inflation in major sectors>

Agricultural, livestock & Manufactured products
fishery products
Oil products

Total
Month-on-Month (%)

Public
utilities

Housing Public Personal
rents
services services

-0.1

0.1

-0.7

-1.8

-0.1

0.2

0.0

0.2

-0.09

0.01

-0.24

-0.10

0.00

0.02

0.00

0.06

Year-on-Year (%)

1.2

0.3

0.2

-5.3

5.9

2.7

0.9

1.3

Contribution (%p)

1.23

0.02

0.06

-0.32

0.29

0.25

0.12

0.42

Contribution (%p)

Source: Statistics Korea

Consumer price inflation
Source: Statistics Korea (consumer price trend)
7

(%)

6
5
4
3
2
1
0
-1
2001. 1

2002. 1

2003. 1

2004. 1

Consumer price inflation (m-o-m)

36 | The Green Book

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Consumer price inflation (y-o-y)

Contribution to consumer price inflation
Source: Statistics Korea (consumer price trend)
5

(%p)

4
3
2
1
0
-1
2004

2003

2005

2006

Agricultural, livestock &
fishery products

2007

2008

2009

2010

Manufactured products

Housing rents

Personal services

Public utilities

2011

2012
Public services

11.2 International oil and commodity prices
International oil prices fell in April as economic uncertainties led to concerns over
weakening demand. Domestic oil prices also decreased.
Dubai crude prices fell as concerns over weakening demand grew due to poor
economic data in major countries such as the US and China, and as the IMF
downgraded growth forecasts. Dubai crude prices fell to a yearly low of US$96.1
per barrel on April 18.
Dubai crude ($/barrel)

106.6 (1st week Apr) [ 102.9 (2nd week) [ 98.0 (3rd week) [ 99.5 (4th week, down 3.7% from
March average)

Crude oil demand forecast for 2013 (Energy Information Administration, April data)

Downgraded (130,000 b/d, m-o-m) for the second straight month, due to weakening demand
from OECD nations.

International oil prices
Source: Korea National Oil Corporation
160

($/B)

140
120
100
80
60
40
20
0
2001. 1

2002. 1
Dubai crude

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1
WTI crude

The Green Book | 37

(US$/barrel, period average)

2010

2011

2012

2013

Annual

Annual

Annual

Oct

Nov

Dec

Jan

Feb

Mar

Apr

Dubai crude

78.1

105.9

109.0

109.0

107.3

106.4

107.9

111.1

105.6

101.7

Brent crude

79.7

111.0

111.7

111.6

109.3

109.2

112.7

116.2

109.0

102.8

WTI crude

79.5

95.1

93.8

89.5

86.6

88.2

94.8

95.3

92.9

92.0

Source: Korea National Oil Corporation

Domestic oil product prices decreased due to low international gasoline prices,
falling at a faster pace towards the end of the month. Domestic gasoline prices fell
for seven consecutive weeks since the first week of March.
Gasoline prices (won/liter)
1,970.5 (1st week April) [ 1,963.6 (2nd week) [ 1,954.9 (3rd week) [ 1,934.4 (4th week)
(US$/barrel, period average)

2010

2011

2012

2013

Annual

Annual

Annual

Oct

Nov

Dec

Jan

Feb

Mar

Apr

Gasoline prices

1,710.4

1,929.3

1,985.8

2,005.7

1,956.0

1,935.6

1,924.6

1,952.5

1,986.5

1,949.4

Diesel prices

1,502.8

1,745.7

1,806.3

1,820.8

1,777.7

1,760.0

1,749.6

1,766.7

1,786.0

1,745.2

Source: Korea National Oil Corporation

Dubai crude prices and import prices
Source: Korea National Oil Corporation
160

(thousand won/B)

($/B)

160

140

140

120

120

100

100

80

80

60

60

40

40

20
2004. 1

20
2005. 1

2006. 1

Dubai crude (import prices, won, left)

38 | The Green Book

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Dubai international prices (dollar, right)

The prices of international grain and nonferrous metals fell due to concerns over
slowing demand.
International grain prices declined due to expectations of improved supply, but the
fall has slowed since mid-April, as the temperatures were unusually low, planting
of wheat and corn was delayed in the US, and soybean exports were delayed in
South America.
World grain supply outlook for 2012-13 (US Department of Agriculture, April, m-o-m)
Production (steady), demand (-0.4%), stocks-to-use ratio (0.6%p)
Prices of international grain in April (m-o-m, %)

Corn (-10.4), soybean (-0.4), wheat (-0.2)

Nonferrous metal prices continued to fall due to poor economic indicators in
major countries including China, the world’s largest consumer.
Prices of nonferrous metals in April (m-o-m, %)

Tin (-7.1), lead (-6.8), nickel (-6.6), copper (-5.9), zinc (-3.8), aluminum (-3.3)

<Reuters index*>

(Period average)

2010

2011

2012

2013

Annual

Annual

Annual

Oct

Nov

Dec

Jan

Feb

Mar

Apr

2,553

3,062

3,006

3,110

3,067

3,037

2,996

2,990

2,947

2,880

* A weighted average index of 17 major commodities
Source: KOREA PDS

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

4,000

430
390

3,000

350
310

2,000

270
230

1,000

190
150
1997. 1

0
1998. 1

1999. 1

CRB (left)

2000. 1

2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Reuters index (right)

The Green Book | 39

12.

12.1 Housing market

Real estate
market

Nationwide apartment sales prices rose for the first time in a year, climbing 0.2
percent in April.
Apartment sales prices in the Seoul metropolitan area (up 0.1%, m-o-m) turned
positive, including Seoul (up 0.1%, m-o-m) and Incheon (up 0.3%, m-o-m).
The apartment sales price increase accelerated in areas excluding the Seoul
metropolitan area (up 0.3%, m-o-m), in particular Daegu (up 1.1%, m-o-m) and
North Gyeongsang Province (up 0.7%, m-o-m). Apartment prices in the five
metropolitan cities and other cities rose 0.4 percent and 0.3 percent, respectively.

<Nationwide apartment sales prices>

(Percentage change from previous period)

2012
Nationwide
Seoul

2013

Jun

Jul

Aug

Sep

Oct

Nov

Dec Jan-Apr Jan

Feb

Mar

Apr Apr 81 Apr 151 Apr 221 Apr 291

-0.3

-0.4

-0.4

-0.3

-0.3

-0.2

-0.3

-0.2

-0.1

0.2

-0.5

-0.3

0.10 0.11 0.10 0.09

-0.8

-0.7

-0.9

-0.7

-0.6

-0.5

-0.6

-1.0

-0.6

-0.4

-0.1

0.1

0.16 0.10 0.07 0.10

Gangnam2

-1.0

-0.9

-1.3

-0.9

-0.7

-0.4

-0.7

-0.6

-0.8

-0.3

0.0

0.5

0.24 0.19 0.12 0.13

Gangbuk3

-0.6

-0.5

-0.5

-0.4

-0.5

-0.6

-0.5

-1.5

-0.5

-0.5

-0.3 -0.2

0.06 0.01 0.02 0.06

Seoul metropolitan area

-0.6

-0.6

-0.8

-0.7

-0.6

-0.5

-0.6

-1.3

-0.7

-0.4

-0.3

0.1

0.09 0.12 0.08 0.09

5 metropolitan cities

-0.1

-0.2

-0.3

-0.1

0.0

0.1

0.1

0.4

0.1

0.0

0.0

0.4

0.10 0.11 0.13 0.10

1. Weekly trends
2. Upscale area of Southern Seoul
3. Northern Seoul
Source: Korea Appraisal Board

Apartment sales prices by region
Source: Kookmin Bank
4

(m-o-m, %)

3
2
1
0
-1
-2
2009. 1

7
Nationwide

40 | The Green Book

2010. 1

7

2011. 1
Seoul metropolitan area

7

2012. 1

7

2013. 1
Metropolitan cities

Nationwide apartment rental prices continued to rise in April (up 0.7%, m-o-m).
Rental prices in the Seoul metropolitan area and five metropolitan cities rose 0.7
percent and 0.8 percent each.
Apartment rental price increase in major districts in Seoul (m-o-m, %)

Gangnam (-0.4), Seocho (-0.5), Songpa (0.2), Gangdong (-0.8), Yongsan (1.3), Gwangjin (1.1)

<Nationwide apartment rental prices>

(Percentage change from previous period)

2012

2013
Apr 81 Apr 151 Apr 221 Apr 291

Jun

Jul

Aug

Sep

Oct

Nov

Dec Jan-Apr Jan

Feb

Mar

Apr

Nationwide

-0.1

-0.2

-0.1

0.3

0.4

0.4

0.3

1.7

0.3

0.3

0.5

0.7 0.18 0.17 0.12 0.11

Seoul

-0.4

-0.5

-0.3

0.6

0.8

0.7

0.2

2.0

0.4

0.6

0.7

0.4 0.06 -0.01 0.03 0.02

Gangnam

-0.4

-0.6

-0.4

0.8

1.0

0.9

0.3

1.9

0.5

0.6

0.6

0.2 0.03 -0.05 -0.04 0.00

3

-0.4

-0.4

-0.1

0.4

0.6

0.4

0.1

2.2

0.3

0.6

0.8

0.6 0.10 0.03 0.11 0.04

Seoul metropolitan area -0.2

-0.4

-0.2

0.4

0.5

0.4

0.1

1.7

0.2

0.3

0.5

0.7 0.19 0.14 0.10 0.08

5 metropolitan cities

-0.1

-0.2

0.2

0.3

0.4

0.4

1.8

0.3

0.3

0.4

0.8 0.22 0.24 0.18 0.16

2

Gangbuk

0.1

1. Weekly trends
2. Upscale area of Southern Seoul
3. Northern Seoul
Source: Korea Appraisal Board

Apartment rental prices by region
Source: Kookmin Bank
4

(m-o-m, %)

3
2
1
0
-1
-2
2009. 1

7
Nationwide

2010. 1

7

2011. 1

7

Seoul metropolitan area

2012. 1

7

2013. 1
Metropolitan cities

Apartment sales transactions in March increased 39.0 percent from the previous
month’s 34,089 to 47,375, and were up 1.6 percent from a year earlier (46,636).

The Green Book | 41

<Apartment sales transactions>

(Monthly average, thousand)

2009 2010 2011

2012

Annual Annual Annual Annual Jan Feb Mar Apr May Jun
Nationwide

53

48

59

42

18

39

47

45

46

2009. 1

7

37

2013
Jul

Aug Sep Oct Nov Dec Jan

38

31

26

45

50

81

Feb Mar

17

34

7

2013. 1

47

Source: Ministry of Land, Infrastructure and Transport

Monthly transaction volume
Source: Ministry of Land, Infrastructure and Transport
140

(thousand)

120
100
80
60
40
20
0
2006. 1

7

2007. 1

Nationwide

7

2008. 1

7

Seoul metropolitan area

2010. 1

7

2011. 1

7

2012. 1

Areas excluding the Seoul Metropolitan area

12.2 Land market
Nationwide land prices in March rose 0.11 percent month-on-month, and were
0.09 percent higher than the pre-crisis peak reached in October 2008.
Land prices in the Seoul metropolitan area (up 0.10%, m-o-m) continued to rise,
led by Seoul (up 0.11%, m-o-m).
Land price increases in Seoul metropolitan area (m-o-m, %)
0.03 (Jul 2012) [ -0.01 (Aug) [ -0.02 (Sep) [ 0.03 (Oct) [ 0.04 (Nov) [ 0.06 (Dec) [ -0.01
(Jan 2013) [ 0.05 (Feb) [ 0.10 (Mar)
Land prices continued to rise in areas excluding the Seoul metropolitan area (up
0.12%, m-o-m), with Sejong (up 0.51%, m-o-m) posting the highest growth rate in
the nation for the 13th straight month in March.
Land price increases in areas excluding Seoul metropolitan area (m-o-m, %)
0.13 (Jul 2012) [ 0.11 (Aug) [ 0.10 (Sep) [ 0.11 (Oct) [ 0.12 (Nov) [ 0.12 (Dec) [ 0.11 (Jan
2013) [ 0.11 (Feb) [ 0.12 (Mar)

42 | The Green Book

<Land prices by region>

(Percentage change from previous period)

2008 2009 2010

2011

Annual Annual Annual Annual Q1

Q2

2012
Q3

Q4

Annual

Q1

Q2

2013
Q3

Q4 Jan-Mar Jan

Feb

Mar

Nationwide

-0.31 0.96 1.05 1.17 0.29 0.30 0.29 0.29 0.87 0.30 0.33 0.12 0.21 0.21 0.03 0.07 0.11

Seoul

-1.00 1.40 0.53 0.97 0.40 0.28 0.17 0.12 0.33 0.17 0.26 -0.14 0.09 0.10 -0.06 0.06 0.11

Gyeonggi

-0.26 1.22 1.49 1.47 0.26 0.38 0.43 0.39 0.97 0.34 0.34 0.17 1.32 0.17 0.04 0.03 0.10

Incheon

1.37 1.99 1.43 0.66 0.17 0.18 0.15 0.15 0.36 0.21 0.16 -0.03 0.13 0.21 0.01 0.08 0.12

Source: Korea Appraisal Board

Land prices by region
Source: Korea Land & Housing Corporation (land price trend)
15

(%)

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

1995

1996

National average

1997

1998

1999

2000

2001

2002

Metropolitan area

2003

2004

2005

2006

2007
City

2008

2009

2010

2011

2012
County

Nationwide land transactions in March were 181,000 land lots, up 27.6 percent
from the previous month but down 3.2 percent from 187,000 a year earlier.
Monthly land transactions surged in Seoul (up 52.8%, m-o-m), Incheon (up 52.9%,
m-o-m), and Sejong (up 51.6%, m-o-m).
Transactions of vacant land increased 26.6 percent month-on-month to 82,000
lots, making up 45.3 percent of total transactions, but were down 4.4 percent from
86,000 a year earlier.

The Green Book | 43

<Land sales transactions>

(Land lot, thousand)

2008 2009 2010 2011
1

1

1

2012

1

1

Annual Annual Annual Annual Annual Mar
Nationwide

208

203

187

208

170

187

2013

Apr May

Jun

Jul

Aug Sep

Oct

Nov Dec

Jan

Feb

Mar

182

163

167

150

172

185

141

142

181

186

133

224

Seoul

26

22

16

18

13

14

15

15

13

12

10

9

15

16

20

10

10

15

Gyeonggi

45

46

41

43

33

37

36

35

32

34

30

27

35

36

45

29

28

33

Incheon

13

10

8

10

8

7

7

8

7

7

8

8

10

9

10

5

5

8

1. Monthly average
Source: Korea Land & Housing Corporation

Land and consumer prices since 1970s
Source: Korea Appraisal Board (land prices), Statistics Korea (consumer prices)
60

(y-o-y, %)

50
40
30
20
10
0
-10
-20
1975

1980

1985

1990

1995

2000

2005

Land price inflation

2010

2012

Consumer price inflation

Land trade volume
Source: Korea Land & Housing Corporation (land trade trend)
500,000

(thousand square meter)

450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
2001. 1

2002. 1

2003. 1

Seoul metropolitan area

44 | The Green Book

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Areas excluding the Seoul metropolitan area

13.
Composite
indices of
business cycle
indicators

Industrial output in March decreased 2.1 percent month-on-month and 0.9
percent year-on-year. Output in mining & manufacturing (down 2.6%, m-o-m),
construction (down 3.0%, m-o-m), services (down 1.0%, m-o-m) and public
administration (down 7.1%, m-o-m) fell.
The cyclical indicator of the coincident composite index fell 0.4 points in March.
The value of construction completed, imports and nonfarm payroll employment
increased, while four components, such as mining & manufacturing production
and retail sales, decreased.
Components of the coincident composite index in March (m-o-m)

value of construction completed (0.7%), imports (1.0%), nonfarm payroll employment (0.1%),
mining & manufacturing production (-1.6%), retail sales (-0.4%), service activity (-0.2%),
domestic shipment (-1.4%)

The cyclical indicator of the leading composite index declined 0.2 points from the
previous month.
Four components, including KOSPI and consumer expectations index, were
higher compared to the previous month while five components, such as the value
of construction orders received and domestic shipment of machinery, were lower.
Components of the leading composite index in March (m-o-m)
KOSPI (0.3%), consumer expectations index (1.6p), international commodity prices (0.7%),
ratio of export to import prices (0.4%), value of construction orders received (-0.3%), domestic
shipment of machinery (-3.8%), ratio of job openings to job seekers (-1.0%p), indicator of
inventory cycle (-0.4%p), spreads between long & short term interest rates (-0.1%p)

2012
Aug

Sep

Oct

2013
Nov

Dec

Jan

1

Feb1

Mar1

Industrial output (m-o-m, %)

-1.4

1.1

-0.4

1.1

1.0

-0.9

1.1

-2.1

(y-o-y, %)

-0.5

1.0

-1.0

1.4

-0.2

3.2

-2.0

-0.9

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

-0.1

0.5

-0.1

0.6

0.5

0.4

0.4

0.0

Cyclical indicator of coincident composite index

99.3

99.3

98.9

99.1

99.2

99.2

99.3

98.9

(m-o-m, p)

-0.5

0.0

-0.4

0.2

0.1

0.0

0.1

-0.4

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

0.1

-0.1

0.3

0.7

0.7

0.2

0.3

0.3

Cyclical indicator of leading composite index

99.8

99.4

99.3

99.6

100.0

99.8

99.7

99.5

(m-o-m, p)

-0.3

-0.4

-0.1

0.3

0.4

-0.2

-0.1

-0.2

1. Preliminary

The Green Book | 45

Industrial output
Source: Statistics Korea (industrial activity trend)
20

(%)

15
10
5
0
-5
-10
-15
2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

Industrial output (m-o-m)

2012. 1

2013. 1

Industrial output (y-o-y)

Cyclical indicator of coincident composite index
Source: Statistics Korea (industrial activity trend)
110

(points)

105

100

95

90
2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Cyclical indicator of leading composite index
Source: Statistics Korea (industrial activity trend)
110

(points)

105

100

95

90
2001. 1

2002. 1

46 | The Green Book

2003. 1

2004. 1

2005. 1

Featured Issue

“Government Aims to Break Shackles of Low Growth”
(Interview with Deputy Prime Minister Oh-Seok Hyun)

Our economy has been struggling over the past few months. What is your outlook for the global
and domestic economy?

I am concerned that the economic situation is not very favorable both at home and
abroad. The global economy is recovering, albeit at a modest pace, but the eurozone
remains in a slump and the growth rates differ by region. The IMF has warned that the
global economy has entered a ‘three-speed recovery’, in which the emerging markets,
US and eurozone are each growing at a different pace. There are also huge uncertainties
caused by the ripple effects of the sequester and debt ceiling negotiations in the US, the
possibility of slowing growth in the key eurozone nations, and financial instability due
to austerity measures in the advanced economies. Meanwhile, the domestic economy
improved somewhat in the first quarter of 2013, but downside risks remain, such as low
growth, slowing employment growth and the weakening yen.
The global economy is expected to gradually recover towards the end of the year, but
considering recent growth trends, the Korean economy may not fare so well. However,
the foundations for economic recovery have been laid, such as the recent proposal for a
supplementary budget, housing market normalization measures, investment boosting
polices, and rate cuts. Once these policies take effect and private sector consumption and
investment recover, the Korean economy can grow by more than 1 percent in the second
half of 2013 compared to the first half, and more than 3 percent compared to the second
half of the previous year.

Featured Issues | 47

Which policy assignment are you most focused on?

At this point the most important task is to break the shackles of low growth and allow
the economy to regain its growth momentum as soon as possible. To this end, the
government has prepared a policy package that includes all possible tools. Housing
market normalization measures were announced on April 1, followed by a 17.3 trillion
won supplementary budget proposal on April 16. On May 1, measures to boost
investment and increase support for small- and medium-sized export companies were
unveiled. Such efforts are expected to pump life into the economy, boosting investment
and consumer sentiment.
In light of the fact that the previous input-driven, follower-type growth model is no
longer relevant, the government is drafting policies that would allow our economy to
switch to a trailblazer-type growth paradigm. Our foremost goal is to boost employment
and restore the middle class, ultimately bringing happiness to the people.

Household debt, which amounts to 1 quadrillion won, is a huge concern to the economy. How is
the government planning to cope with the household debt issue?

Household debt growth has slowed recently, and it remains in a manageable state.
However, if economic growth and consumption remain sluggish, the debt burden on
the socially vulnerable groups, including the low-income class and seniors, will become
greater.
The government is reinforcing risk management on the vulnerable groups while
continuing to monitor the total amount of household debt. We are working to ensure
that the size and growth rate of the household debt do not exceed tolerable levels, and
we are particularly keeping a close watch on the loan growth and financial soundness of
the nonbank financial institutions. In addition, we are helping the vulnerable groups to
restructure debt, restore credit and gain access to low-interest loans through the National
Happiness Fund. We are planning to combine financial support with employment and
entrepreneurship services, in order to create a comprehensive self-support program for
the lower income classes.

48 | Featured Issues

The youth are desperately in need of jobs. What is the government’s plan for job creation?

In order to create jobs, we believe it is imperative to escape from the current low growth
trend, and have been pursuing various stimulus measures accordingly. In addition to
regaining growth momentum, we are planning to boost our economy’s job-creating
capacity. We will create new industries that combine science and technology with
ideas and imagination, and create development plans for the service industry such as
increasing the added value of certain promising sectors and inducing the convergence of
different sectors. Also, we will improve the nation’s employment structure and practices,
making it easier for the youth to enter the job market and allow them to work in better
conditions. The government ministries will collect these assignments and draft a job
creation roadmap, which will be unveiled at the end of May. Once the roadmap has been
created, we will boost efforts to ensure that jobs favored by the youth are created.

In Korea, the service industry is responsible for 60 percent of the nation’s GDP, yet productivity
remains very low. What do you think is needed to advance the service industry?

It is true that productivity in the service sector is only about 75 percent as that of other
OECD member nations, and 46 percent compared to manufacturing productivity. In
other words, expanding our growth engines by upgrading the nation’s service industry is
a very important task. To this end, we need to ease regulations, encourage R&D and IT
utilization in the service industry, and reduce practices that discriminate services from
the manufacturing industry. We must consider creativity as our core value and create new
markets and added value through the convergence of industries. This means we should
build a creative business environment by encouraging R&D, utilizing IT and developing
creative human resources in the service industry.
As the manufacturing industry is losing its job-creating capacity, it is imperative that
the service industry leads the drive to continue creating high-quality jobs. Policy tools,
including tax incentives, financial aid and education, should be used to invigorate service
businesses and ease discrimination between the manufacturing and service industry.
Regulations that block the advancement of the service industry should be either eased or
eliminated. Also, the Service Industry Advancement Bill, which currently remains idle
in the National Assembly Strategy and Finance Committee, should be passed as soon as
possible, so that it could function as an instrument for upgrading the service industry as
a whole.

Featured Issues | 49

The government will need 135 trillion won over five years in order to realize President Park’s
campaign pledges and government tasks. How do you plan to raise the finances?

The most important rule is to secure the funds while maintaining fiscal soundness and
minimizing the burden on the people. To do so we are preparing measures in terms
of both revenue and expenditure. Regarding revenue, our focus is on expanding tax
revenues without directly raising taxes, such as by reducing tax incentives and bringing
the underground economy into the open. As for government expenditures, we aim
to undergo a comprehensive restructuring process in all categories including both
discretionary and mandatory spending, and also improve the system in a sustainable
manner. Meanwhile, we will reform the fiscal system, promote joint public-private
participation and improve the way projects are carried out, while at the same time
pursuing means to maximize efficiency at the execution level, such as closely monitoring
the performance of fiscal projects and minimizing waste factors.
For those efforts to bear fruit, the cooperation of the relevant ministries, local governments
and the people are imperative. Therefore, for the next five years we aim to reveal all
information on the government’s plans for investment and financing, and fully cooperate
with the media and the National Assembly.

‘Creative economy’ has become the talking point of the times. As the Deputy Prime Minister for
economic affairs, how do you define creative economy and how should it be achieved?

Creative economy refers to a policy that creates new growth engines and jobs through
economic management based on imagination, creativity, science and technology. It is a
paradigm shift on the economy as a whole, encompassing not only employment, growth
and distribution but also administration. Creative economy differs from our previous
economic policies in that it has shifted from a follower-type economy (catching up
with the advanced economies) to a trailblazer-type one, and that the main focus is not
on growth but on employment. Moreover, creative economy is not about short-term
quantitative growth based on civil engineering works, but focuses on knowledge-based
long-term qualitative growth, and has its foundations on the establishment of a proper
market economy order.
How we are going to realize this creative economy would be another critical point. I
believe that interministerial cooperation is of utmost importance. Therefore I will
cooperate with the relevant ministries to create the necessary system and environment
for the materialization of a creative economy. The government will create an action plan
as soon as possible.

50 | Featured Issues

As the first Deputy Prime Minister for economic affairs and Minister of Strategy and Finance in the
Park Geun-Hye administration, what are your aspirations?

As I mentioned earlier, our economy is in a very precarious state. The Park administration
has voiced its concerns from the beginning and has employed all possible tools to overcome
the difficulties that our economy is currently suffering from. As this administration’s first
Deputy Prime Minister for economic affairs, I work under the notion that ‘policy is 10
percent, execution is 90 percent’, and will ensure that the people will actually be able
to feel the effect of the government’s policy package. Also, I will continue to seek out
policies and implement them in a swift manner.
In addition to the government’s efforts, it is imperative that we recover the strength
and confidence of past times in order to cope with the current economic impasse. The
government will do its best to make sure that the Korean economy breaks free from
the low growth cycle and regains its vigor. I earnestly hope that businesses would trust
the government and grab opportunities by making preemptive investments and creating
jobs, while labor and management each take a step back and cooperate with each other
to overcome our difficulties.
The original version of this interview appears in the June issue of Narakyungje, a monthly magazine on
economic policies published by KDI.

Featured Issues | 51

Policy Issues

Government to Remove Regulatory Obstacles to Boost Investment

Background
The Ministry of Strategy and Finance announced measures to boost investment
by removing regulatory obstacles, at the 1st Meeting on Trade and Investment
Promotion presided over by President Park Geun-hye.
The key point of the package is to stimulate sluggish investment by removing
unreasonable regulations, and finally to help the economy recover and to restore
its growth potential, as facilities investment has been falling for four consecutive
quarters and construction investment* has been slowing down for three years in
a row.
* Construction investment increased by 0.7 percent year-on-year in the first quarter of 2013.

The joint public-private investment promotion task force had collected 250
proposals from related ministries, economic circles and local governments since
March this year, and selected proposals which will have an immediate effect on
the economy to complete the package. The key elements of the measures can be
summarized as three parts.

52 | Policy Issues

Supporting large corporate projects that are currently being suspended on
site due to regulations
Six projects have been found to be eligible for the support, five of which are
suspended in provincial industrial complexes due to regulatory barriers by local
governments. Once those projects proceed as planned, a total of more than 12
trillion won is estimated to be invested.

<Support for suspended projects>

Project 1

Support

Investment (won)

Location

- When there is no more land available for production facilities construction
within industrial complexes, public institutions will be allowed to lend their
holdings of land in industrial complexes

8 trillion

Provinces

1 trillion

Provinces

2 trillion

Provinces

1 trillion

Provinces

-

Seoul

-

Provinces

- Facilities operated by public institutions will move underground to save
operation costs

Project 2

Project 3

Project 4

Project 5

- Foreign-invested firms will be allowed to rent only land and build their own
facilities in industrial complexes, an exempt from the current rule which bans
the separate lease of land and facilities
- To avoid discriminating domestic firms from foreign businesses, complementary
measures, such as banning discretionary use of the rented land, will be
prepared
- In case of joint ventures, holding subsidiaries will be required to hold a 50
percent stake in other subsidiaries, instead of the current 100 percent, and
between domestic and foreign companies, domestic companies’ required stake
holding of 100 percent will be eased to 50 percent
- Regulations will be revised to enable the location of thermal power plants in
industrial complexes
- Fuel for thermal energy will not be limited to LNG, while ensuring that ‘best
available technology’ will be used to minimize air pollution
- Hotels to accommodate foreign patients will be introduced as a new business
type in the hotel industry
- Improved guidelines for locating onshore wind power farms will be prepared

Project 6

- For the 14 cases which have already proceeded with setting up wind power
farms, decisions regarding location approvals will be made as soon as possible

Policy Issues | 53

Streamlining administrative process for land use and lowering entry barriers
1. Easing regulations on land use
Current complicated processes to gain approval for land use will be simplified,
and related negotiations will have to be completed within a fixed period of time.
Extending production facilities in areas with development restrictions will be
easier with 50 percent reduction in development charges and simplified approval
procedures which will take less than six months. The procedure used to take as
long as two years. Requirements for running businesses in industrial complexes or
free economic zones will be relaxed. The building to land ratio requirement will be
eased from 40 percent to 50 percent, and the floor area ratio requirement from 100
percent to 125 percent in planned development areas*.
* Areas planned to be included in cities, or areas whose development is allowed limitedly
because of environmental reasons

2. Lowering entry barriers by industry
US and EU companies will be allowed to indirectly invest in up to 100 percent of a
local telecommunications network carrier’s shares. Currently, up to 49 percent of
shares are allowed to be held by those companies. Network operating businesses
will be approved according to a negative system, which will significantly lower
barriers to the market.
The government will build a national health information infrastructure in order
to provide converged services of healthcare and information communications
technology, while introducing vacation homes in tourist zones by allowing the
construction of such accommodation for up to 5 percent of a total area permitted
for accommodation construction.
The number of recycled products subject to the government’s quality certification
will continue to be increased, along with the number of car tuning parts.
Agricultural product funds will receive increased support. Farming facilities will
be allowed to install a solar energy generating system for commercial purposes.
The National Pension Fund, financial institutions’ and private capital will be allowed
to invest in port development projects, which include developing the vicinity.

54 | Policy Issues

Providing financial and fiscal incentives to SMEs for their business investment
Small- and medium-sized enterprises (SMEs) which make facilities investment
will be supported by the government through the increased facilities investment
fund of 5 trillion won, up from 3 trillion won. A total of 100 billion won will be
provided for facility replacement, and the ratio of facility investment subsidies to
total provincial investment promotion subsidies will be increased from 10 percent
to 13 percent.
Start-ups will be granted investment tax deductions, for which investment can be
brought forward, for an extended period from five years to seven years. Less strict
requirements will need to be met to receive inheritance tax deductions given to
family businesses. A 7 percent tax deduction for investment in cooperation funds
will continue.
The government will provide special loan guarantees for convergence technology
and intellectual properties, while offering low interest rate loans when secured on
intellectual properties. Tax incentives for investment in energy saving facilities will
continue.
The government will continue to work on investment stimulus measures, with
the joint public-private investment promotion task force operating around the
year. The government will continue to find projects suspended on site due to
tight regulations, while carrying out stricter evaluation of project performance.
The results of the evaluation will be dealt with at the Ministerial Meeting on the
Economy.
The government will lay out key directions to expand a negative regulatory system,
while improving regulations to help start businesses and increase investment.
Current regulations will be thoroughly reviewed and voices from the economic
circles will be carefully listened to before expanding a negative system. Korea’s
regulatory system will be transformed into a more market-friendly one, and
regulations will be changed through transparent processes with fair and reasonable
standards.

Policy Issues | 55

Policy Issues

Guidelines for FY 2014 Budget

The Guidelines for the FY 2014 Budget, which include fund management plans,
have been approved at the Cabinet meeting on April 30. Each ministry is required
to draw up its budget request according to these guidelines, and submit it to the
Ministry of Strategy and Finance by June 20. The Ministry of Strategy and Finance
will then submit a comprehensive budget to the National Assembly by October 2.

Fiscal management policy directions
The main policy directions to achieve the vision of ‘a new era of hope and
happiness’ are: fiscally supporting national tasks, improving fiscal soundness
through increased efficiency, and shifting the focus of fiscal management in line
with a new national development paradigm.

<New fiscal management focus according to the new national development paradigm>

New national development paradigm

New focus of fiscal management

- From follower to trailblazer in global market

- From copycat fiscal investment strategy to creative and
pioneering one

- From input-driven to quality-driven growth focusing on
national happiness

- From focusing on economic growth to improving the
standard of living and job markets

- From the linear paradigm of welfare being secondary to
economic growth to a reciprocal relationship between
economic growth and welfare

- Shift to customized welfare and social investment framework,
and strengthened work incentives

- From government-led unilateral implementation to
interactive and performance-based

- From a supplier-oriented fiscal structure to a user-centered,
field-first, and cooperative one

56 | Policy Issues

Key directions for FY 2014 budget
1. Overall policy directions
The 2014 budgeting will emphasize increasing investment efficiency by adjusting
similar or overlapping projects and collecting on-site feedback and feedback from
policy assessments.
Investment will be directed towards facilitating a creative economy by promoting
R&D in leading and convergence industries, while at the same time helping create
jobs by developing those industries and pursuing inclusive growth with SMEs.
The 2014 budget plan will prioritize providing tailored, work-friendly welfare
and education which helps develop creativity, while ensuring greater security. The
government will also increase investment to support the development and export
of Korean culture, and to promote the enjoyment of cultural events and programs.
The 2014 budget will also prioritize strengthening national security and diplomacy
through strategic partnerships with neighboring countries. North Korean defectors
will receive improved support, which is designed to help them more easily
assimilate into Korean society, and inter-Korean exchanges will also get increased
support to prepare for the post-unification era.

2. Investment priorities
1) Reinvigorating the economy
The 2014 budget guidelines focus on facilitating a creative economy and inclusive
development. ICT convergence industries, and R&D in leading, creative and
convergence industries will be developed, which will create jobs and improve
competitiveness. Inclusive growth will also be promoted by building a scaffold for
SMEs.
2) Improving social welfare
Improving social welfare and security will be one of investment priorities of the
2014 budget guidelines. The current universal welfare systems will be revised
into tailored welfare systems, which will be designed to provide essential support
according to recipients’ life cycle. Welfare systems will also be improved to
encourage work and provide education which helps develop creativity. Security
will be improved as the government will increase investment in eradicating the
worst four crimes.
3) Promoting cultural activities
The 2014 budgets will prioritize developing the Korean culture, while increasing
opportunities for socially vulnerable groups to enjoy cultural activities. The

Policy Issues | 57

government will help expand the spread of Korean art and culture to the world,
and support for the enjoyment of different cultural events and programs will be
provided according to different age groups.
4) Founding a basis for reunification
National security and diplomatic capabilities will also be enhanced through the
2014 budget guidelines. Strategic partnerships with neighboring countries will
be expanded. North Korean defectors will receive increased support, which is
designed to help them more easily assimilate into Korean society, and inter-Korean
exchanges will also get increased support to prepare for reunification.

3. Fiscal management
Fiscal resources will be managed more efficiently and transparently, and the budget
plan will prioritize improving social welfare, increasing project performance and
promoting corporation.
The tax base will be broadened when tax breaks expire according to schedule and
by legitimatizing the shadow economy. Spending will be restructured through
zero-based budgeting. Total public sector debts will be calculated to increase fiscal
transparency and monitor potential fiscal risks. Fiscal projects will be more strictly
evaluated in terms of performance, similar or overlapping investments will be
adjusted, and the results will be reflected in the budget.

58 | Policy Issues

Economic News Briefing

Bank of Korea cuts key rate to 2.50%
The Bank of Korea (BOK) lowered its benchmark interest rate by 25 basis points to
2.50 percent on May 9. This was the first rate cut in seven months, after the key rate
was cut by 25 basis points to 2.75 percent in October 2012. The Monetary Policy
Committee assessed that the global economy will continue its modest recovery but
downside risks remain due to sluggishness in the eurozone and fiscal consolidation
in major countries. Regarding the domestic economy, the Committee stated that
inflation is expected to remain low, and the economy will show a negative output
gap for a considerable time due to the slow recovery of the global economy, the
weakening yen, and geopolitical risks in Korea.

Korea grows 0.9% in Q1 (Advanced)
Korea’s real gross domestic product (GDP) expanded by 0.9 percent in the first
quarter of 2013 compared to the previous quarter. The growth rate was up 1.5
percent from a year earlier.
On the production side, agriculture, forestry and fisheries contracted by 4.5
percent quarter-on-quarter, having been weighed down by a weak fishery sector.
Manufacturing grew by 1.4 percent, as the production of petrochemicals and
Economic News Briefing | 59

vessels increased, while construction grew by 3.7 percent, led by housing
construction and civil engineering works. Services grew by 0.7 percent, due
to rising output in transportation & storage, communications services and
healthcare & social services.
Private consumption decreased by 0.3 percent, led by falling expenditures
in nondurable and semi-durable goods. Construction investment rose by
2.5 percent, led by housing construction and civil engineering works, and
facility investment increased by 3.0 percent due to a rise in machinery and
transportation equipment investment. Exports rose by 3.2 percent, led by
petrochemicals, while imports rose 2.5 percent, led by electric machines and
petrochemicals.
Real gross domestic income (GDI) grew 1.0 percent, due to improving terms
of trade.

<GDP by production and expenditure*>

(Percentage change from previous period)

20121

2011
Q1
2

20131

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

GDP

1.3
(4.3)2

0.8
(3.5)2

0.8
(3.6)2

0.4
(3.4)2

0.8
(2.8)2

0.3
(2.4)2

0.0
(1.6)2

0.3
(1.5)2

0.9
(1.5)2

Agriculture, forestry & fisheries

-1.2

3.0

-4.8

10.0

-6.5

0.2

-2.6

7.9

-4.5

Manufacturing
Construction

3.1

1.1

1.4

-0.2

1.6

-0.2

-0.3

0.2

1.4

-3.0

1.8

1.5

0.1

-1.4

-1.8

0.9

-2.0

3.7

Services3

0.9

0.3

0.5

0.6

1.1

0.5

0.3

0.4

0.7

Private consumption

0.7

0.6

0.1

-0.2

0.8

0.4

0.7

0.8

-0.3

Government consumption

0.5

1.1

1.0

-0.8

3.5

-0.1

0.8

-0.6

1.3

Facility investment

-2.0

4.0

-1.8

-3.6

10.4

-7.8

-5.2

-1.8

3.0

Construction investment

-2.6

1.7

-0.4

0.1

-1.5

-1.3

0.7

-1.2

2.5

Exports of goods and services

2.2

1.7

2.2

-2.2

3.9

-0.3

1.9

-1.1

3.2

Imports of goods and services

0.6

2.3

1.0

-2.8

4.3

-1.8

1.8

-0.8

2.5

GDI

-0.3

0.7

0.5

0.5

-0.1

1.2

1.2

0.0

1.0

*At 2005 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, communication services, financial & insurance services, real estate & renting, business
services, public administration, defense & social security, educational services, healthcare & social welfare services, entertainment, cultural & sports services
and other services are included.

60 | Economic News Briefing

National Assembly approves supplementary budget
The National Assembly approved on May 7 about 17.3 trillion won worth of the
supplementary budget proposed by the Ministry of Strategy and Finance. The extra
budget bill has been passed nearly unchanged from the one that was proposed last
month, except for a 500 billion won adjustment in total expenditures.
Total revenues have been decreased by 12 trillion won as was proposed by the
government. Total expenditures have been slightly adjusted from the original
proposal with a decrease of 534.0 billion won offsetting an increase of 523.7 billion
won. The total fiscal balance has been unchanged, while national debt has fallen by
0.2 trillion won.

(trillion won, %)

2012

2013 original budget

2013 supplementary budget
Proposed plan (A)

Approved plan (B)

Total revenues

343.5

372.6

360.8

360.8

Change
(B-A)
-

Total expenditures

325.4

342.0

349.0

349.0

-

Fiscal balance

-14.3

-4.7

-23.4

-23.4

-

National debt

445.2

464.6

480.4

480.3

-0.2

Supplementary budget allocates 72.4% of increase in first half
The Korean government decided at the Cabinet Meeting held on May 10 to allocate
72.4 percent of the supplementary budget increase (3.9 trillion won out of a total
increase of 5.4 trillion won) in the first half of 2013. As a result, 71.6 percent of the
fiscal budget, which includes original and supplementary budgets, will be spent in
the first half.
The frontloading is expected to have early effects on the economy as it will promote
job creation and livelihood support. The reserve fund of 1.4 trillion won to make
up for the acquisition tax cut will be spent in the second half, taking into account
the tax payment schedule.

Economic News Briefing | 61

G20 Finance Ministers and Central Bank Governors’ Meeting
The G20 Finance Ministers and Central Bank Governors’ Meeting was held on
April 18-19 in Washington D.C. The leaders present at the meeting reiterated
that Japan’s quantitative easing is not a foreign exchange policy and should be
aimed at ending deflation and reviving domestic demand. They also recognized
that the advanced economies’ continued monetary easing may bring ‘unintended
side effects’. Meanwhile, the supplementary budget, real estate market boosting
measures and other aggressive macroeconomic policies recently announced by the
Korean government were praised as measures that support the global economic
recovery.
At the G20 meeting, Deputy Prime Minister and Minister of Strategy and
Finance Oh-Seok Hyun expressed concerns over the rapidly devaluating yen and
increasing volatility in Asian currencies. He emphasized that the original purpose
of quantitative easing is to boast domestic demand, and urged efforts to prepare for
an orderly exit from quantitative easing programs.

Korea-Turkey FTA takes effect
The free trade agreement (FTA) between Korea and Turkey entered into force on
May 1, setting the stage for Korea’s businesses to expand into Turkey and use the
nation’s geopolitical position and FTA networks to enter markets in Europe, Africa
and the Middle East. Turkey shares its border with European and Asian nations
such as Russia, Ukraine, Romania, Bulgaria, Georgia, Armenia, Iran, Iraq and
Syria, and has signed FTAs with 16 nations, including Jordan, Syria, Egypt and
Israel. In addition to the agreement on trade in goods, the Korean government
will negotiate with Turkey on trade in services and investment, and sign respective
agreements within a year.

62 | Economic News Briefing

16th ASEAN+3 Finance Ministers and Central Bank Governors’ Meeting
The 16th ASEAN+3 Finance Ministers and Central Bank Governors’ Meeting
took place on May 3 in Delhi, India. Member nations reached an agreement to
transform the ASEAN+3 Macroeconomic Research Office (AMRO) into a formal
international institution, a move which is expected to improve the status and
credibility of the regional financial safety net constructed by the Chiang Mai
Initiative Multilateralization (CMIM) and AMRO.
Capital inflows and outflows have become frequent following quantitative easing
measures by the advanced economies, and Korea has consistently raised the
issue of responding to such external risks. Reflecting these concerns, the finance
ministers at the meeting agreed to study ways to jointly respond to capital flows at
the ASEAN+3 level.

Economic News Briefing | 63

Statistical Appendices

1. National accounts
2. Production, shipment and inventory
3. Production capacity and operation ratio
4. Consumer goods sales index
5. Consumer goods shipment index and consumer sentiment index
6. Machinery orders received, domestic machinery shipment
and estimated facility investment index
7. Value of construction completed and domestic construction orders received
8. Composite indices of business cycle indicators and BSI
9. Balance of payments (I)
10. Balance of payments (II)
11. Prices
12. Employment
13. Financial indicators
14. Monetary indicators
15. Exchange rates

Statistical Appendices | 65

1.
National accounts
Real GDP
Manufacturing

Final
consumption
expenditure

Construction

Facilities

4.0
5.2
5.1
2.3
0.3
6.3
3.7
2.0

Agri., fores.
& fisheries
1.3
1.5
4.0
5.6
3.2
-4.4
-2.1
-0.6

6.2
8.1
7.2
2.8
-1.5
14.7
7.3
2.2

4.6
5.1
5.1
2.0
1.2
4.1
2.3
2.2

1.9
3.4
4.2
-1.9
-1.0
5.8
-1.0
-1.7

-0.4
0.5
1.4
-2.8
3.4
-3.7
-4.7
-2.2

5.3
8.2
9.3
-1.0
-9.8
25.7
3.6
-1.9

Period
2005
2006
2007
2008
2009
2010
2011
2012P

(year-on-year change, %, chained 2005 year prices)
Gross fixed capital formation

2005




2.7
3.4
4.5
5.1

0.4
4.8
3.8
-3.1

4.8
3.9
6.7
9.3

2.7
4.7
5.9
4.9

-0.3
1.8
1.5
3.9

-3.1
0.9
-0.3
0.3

3.4
2.8
4.1
10.8

2006




6.1
5.1
5.0
4.6

3.9
-0.3
-1.4
4.2

9.4
9.1
8.7
5.4

5.8
4.9
4.6
5.1

3.8
0.1
4.0
5.7

1.9
-4.2
-0.5
5.1

7.2
8.0
12.0
5.7

2007




4.5
5.3
4.9
5.7

1.6
7.0
8.2
-0.7

4.5
7.2
6.3
10.2

5.1
5.4
5.3
4.7

7.3
5.7
1.5
3.1

4.4
2.0
-0.2
0.4

12.6
13.0
4.0
8.0

2008




5.5
4.4
3.3
-3.3

7.8
4.6
4.3
6.5

8.9
8.3
5.3
-9.4

4.3
3.0
2.4
-1.7

-0.6
0.6
2.1
-8.7

-2.5
-0.5
0.4
-7.7

2.8
2.0
5.3
-13.3

2009




-4.2
-2.1
1.0
6.3

2.5
0.0
5.0
5.0

-13.6
-7.1
1.8
13.1

-2.2
0.7
1.5
4.8

-7.5
-3.0
-1.0
6.2

1.6
4.3
3.2
4.0

-21.9
-18.1
-9.4
12.2

2010




8.7
7.6
4.5
4.9

-0.1
-2.2
-7.8
-5.9

22.4
17.6
9.5
11.0

6.1
3.6
3.5
3.0

11.2
5.8
5.6
2.3

1.8
-4.7
-4.9
-5.2

29.6
32.0
26.3
16.9

2011




4.3
3.5
3.6
3.4

-9.7
-2.6
-5.8
7.1

10.3
7.4
6.4
5.5

2.8
2.8
2.4
1.3

-1.4
0.4
-1.4
-1.8

-10.0
-4.7
-3.6
-1.7

10.5
7.7
1.1
-3.6

2012P




2.8
2.4
1.6
1.5

-0.4
-1.8
0.3
-0.5

4.1
2.7
0.9
1.3

2.1
1.6
2.1
2.8

3.7
-2.6
-2.5
-4.2

-0.4
-3.1
-0.3
-4.2

8.8
-3.5
-6.9
-5.2

2013P

1.5

0.2

1.1

1.6

-4.5

0.7

-11.5

P: Preliminary
Source: The Bank of Korea
66 | Statistical Appendices

2.
Production, shipment and inventory
(constant prices, 2010=100)
Production index
Period
2010
2011
2012

100.0
105.9
106.8

Y-o-Y change
(%)
16.3
5.9
0.8

Shipment index

100.0
105.6
106.4

Y-o-Y change
(%)
14.3
5.6
0.8

Inventory index

Service production index

104.6
120.2
124.1

Y-o-Y change
(%)
18.0
14.9
3.2

100.0
103.2
104.8

Y-o-Y change
(%)
3.8
3.2
1.6

2010




93.9
101.2
98.7
106.2

26.3
18.7
9.7
12.6

93.9
101.1
98.6
106.4

22.0
15.6
9.0
11.8

97.2
98.2
100.7
104.6

9.3
15.9
16.2
18.0

96.8
100.5
99.8
103.8

5.4
4.7
2.2
3.4

2011




102.6
107.4
103.9
109.7

9.3
6.1
5.3
3.3

103.3
106.6
103.1
109.2

10.0
5.4
4.6
2.6

104.7
110.0
112.7
120.2

7.7
12.0
11.9
14.9

99.5
103.4
103.2
106.7

2.8
2.9
4.5
2.8

2012




106.3
108.6
102.9
109.6

3.6
1.1
-1.0
-0.1

106.3
108.1
102.6
108.4

2.9
1.4
-0.5
-0.7

117.8
115.2
114.6
124.1

12.5
4.7
1.7
3.2

102.1
104.9
104.7
107.6

2.6
1.5
1.5
0.8

2013

ⅠP

104.5

-1.7

104.3

-1.9

121.6

3.2

102.8

0.7

2010

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

94.1
86.0
101.6
101.2
100.2
102.3
102.2
96.6
97.4
105.3
105.6
107.6

38.7
18.9
22.6
20.2
20.1
16.0
14.1
14.1
1.6
14.4
12.4
11.1

93.8
85.9
102.0
101.5
99.4
102.4
101.1
97.2
97.5
105.4
106.2
107.6

33.5
14.2
19.5
17.1
16.5
13.3
12.3
14.1
1.3
13.3
11.9
10.3

97.2
98.7
97.2
98.3
99.2
98.2
101.0
101.2
100.7
101.8
102.0
104.6

2.3
9.3
9.3
14.1
16.0
15.9
18.1
17.8
16.2
18.1
17.0
18.0

95.2
93.8
101.5
98.8
101.2
101.6
99.5
98.1
98.9
100.5
100.6
110.2

4.4
4.9
7.0
3.7
5.7
4.7
3.8
3.0
-0.2
3.5
3.6
2.9

2011

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

105.3
91.8
110.6
106.8
107.1
108.3
105.9
101.5
104.4
109.7
109.3
110.1

11.9
6.7
8.9
5.5
6.9
5.9
3.6
5.1
7.2
4.2
3.5
2.3

105.8
93.3
110.8
106.8
106.0
107.0
104.0
101.2
104.2
109.1
108.2
110.3

12.8
8.6
8.6
5.2
6.6
4.5
2.9
4.1
6.9
3.5
1.9
2.5

104.6
102.8
104.7
105.8
108.6
110.0
111.8
112.2
112.7
115.6
117.9
120.2

7.6
4.2
7.7
7.6
9.5
12.0
10.7
10.9
11.9
13.6
15.6
14.9

100.1
94.2
104.1
102.1
103.5
104.7
103.1
103.1
103.3
104.2
103.7
112.3

5.1
0.4
2.6
3.3
2.3
3.1
3.6
5.1
4.4
3.7
3.1
1.9

2012

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

101.9
105.8
111.2
106.4
110.4
108.9
105.6
99.4
103.6
107.6
111.6
109.7

-3.2
15.3
0.5
-0.4
3.1
0.6
-0.3
-2.1
-0.8
-1.9
2.1
-0.4

102.6
105.8
110.6
105.9
109.6
108.9
104.8
98.5
104.6
106.6
109.5
109.0

-3.0
13.4
-0.2
-0.8
3.4
1.8
0.8
-2.7
0.4
-2.3
1.2
-1.2

119.4
117.5
117.8
116.6
118.4
115.2
115.8
119.5
114.6
115.5
120.4
124.1

14.1
14.3
12.5
10.2
9.0
4.7
3.6
6.5
1.7
-0.1
2.1
3.2

100.5
100.0
105.9
102.7
105.9
106.0
104.7
103.8
105.9
104.6
105.2
113.1

0.4
6.2
1.7
0.6
2.3
1.2
1.6
0.7
2.2
0.4
1.4
0.7

2013

1
2P
3P

109.7
95.9
107.9

7.7
-9.4
-3.0

107.9
96.8
108.1

5.2
-8.5
-2.3

127.8
122.8
121.6

7.0
4.5
3.2

101.8
100.1
106.6

1.3
0.1
0.7

P: Preliminary
Source: Statistics Korea
Statistical Appendices | 67

3.
Production capacity and operation ratio

Period

Production capacity index (2010=100)

2010
2011
2012

100.0
104.9
107.2

Y-o-Y change (%)
7.9
4.9
2.2

Operation ratio index (2010=100)
100.0
99.8
97.0

Y-o-Y change (%)
7.7
-0.2
-2.8

Average operation
ratio (%)
80.3
80.2
78.1

2010




97.8
99.5
100.7
102.0

7.6
8.5
7.9
7.4

95.7
102.7
97.6
104.0

18.3
8.9
0.8
4.8

79.4
80.6
80.4
80.9

2011




103.6
104.7
105.2
106.1

5.9
5.2
4.5
4.0

97.6
103.1
97.3
101.3

2.0
0.4
-0.3
-2.6

81.4
80.4
80.4
78.8

2012




106.8
107.1
107.2
107.5

3.1
2.3
1.9
1.3

96.9
100.3
92.8
97.9

-0.7
-2.7
-4.6
-3.4

79.6
79.0
76.2
77.8

2013

ⅠP

108.0

1.1

93.0

-4.0

77.3

2010

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

97.3
97.6
98.5
99.0
99.4
100.0
100.4
100.6
101.1
101.7
101.9
102.4

7.1
7.4
8.2
8.2
8.7
8.6
8.3
8.1
7.4
7.6
7.6
7.0

95.9
87.1
104.0
103.3
101.3
103.6
103.1
94.4
95.2
104.3
103.5
104.2

31.4
10.2
14.7
10.9
9.7
6.3
5.4
4.8
-7.2
6.3
4.0
4.0

78.1
79.9
80.2
80.5
80.4
80.9
81.7
79.6
80.0
79.8
80.4
82.5

2011

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

103.2
103.4
104.2
104.6
104.6
104.9
105.1
105.2
105.4
106.0
106.1
106.2

6.1
5.9
5.8
5.7
5.2
4.9
4.7
4.6
4.3
4.2
4.1
3.7

100.3
87.0
105.4
102.3
102.8
104.3
100.4
94.4
97.2
102.4
101.6
99.9

4.6
-0.1
1.3
-1.0
1.5
0.7
-2.6
0.0
2.1
-1.8
-1.8
-4.1

82.5
80.3
81.3
79.6
80.2
81.3
80.9
80.0
80.4
79.7
78.9
77.7

2012

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

106.7
106.8
106.9
107.0
107.1
107.2
106.9
107.4
107.3
107.4
107.6
107.6

3.4
3.3
2.6
2.3
2.4
2.2
1.7
2.1
1.8
1.3
1.4
1.3

91.8
96.5
102.3
98.2
102.0
100.8
96.8
87.9
93.8
97.7
100.3
95.8

-8.5
10.9
-2.9
-4.0
-0.8
-3.4
-3.6
-6.9
-3.5
-4.6
-1.3
-4.1

79.7
80.4
78.7
79.0
79.5
78.4
77.8
74.0
76.7
77.0
78.0
78.4

2013

1
2P
3P

107.9
108.0
108.0

1.1
1.1
1.0

97.9
84.4
96.6

6.6
-12.5
-5.6

78.6
77.6
75.7

P: Preliminary
Source: Statistics Korea
68 | Statistical Appendices

4.
Consumer goods sales index
(constant prices, 2010=100)
Consumer goods sales index
Durable goods

Period
2010
2011
2012

100.0
104.5
106.9

Y-o-Y change
(%)
6.7
4.5
2.3

Semi-durable goods

100.0
110.6
116.5

Y-o-Y change
(%)
14.8
10.6
5.3

100.0
103.7
102.6

Y-o-Y change
(%)
6.7
3.7
-1.1

Non-durable goods

100.0
102.1
104.4

Y-o-Y change
(%)
2.2
2.1
2.3

2010




95.6
98.7
99.7
106.1

8.9
5.4
8.0
5.0

94.5
96.0
101.0
108.5

29.5
6.2
17.0
9.8

93.5
100.3
90.9
115.3

3.0
5.7
9.4
8.9

97.0
99.2
102.9
100.9

2.4
3.4
2.4
0.8

2011




100.7
104.8
103.7
108.9

5.3
6.2
4.0
2.6

105.4
112.2
111.4
113.3

11.5
16.9
10.3
4.4

98.3
105.5
94.2
116.7

5.1
5.2
3.6
1.2

99.6
101.2
104.4
103.3

2.7
2.0
1.5
2.4

2012




103.5
106.3
106.4
111.6

2.8
1.4
2.6
2.5

110.0
115.5
118.8
121.8

4.4
2.9
6.6
7.5

98.0
104.4
90.9
117.1

-0.3
-1.0
-3.5
0.3

102.9
102.8
107.5
104.3

3.3
1.6
3.0
1.0

2013

ⅠP

103.7

0.2

111.3

1.2

100.0

2.0

101.7

-1.2

2010

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

95.0
93.3
98.4
96.6
100.7
98.7
100.1
96.2
102.7
104.0
105.3
109.1

6.1
11.7
8.7
7.8
4.4
4.3
9.5
9.3
5.3
4.5
6.7
4.0

92.8
90.4
100.3
92.7
94.6
100.7
104.0
98.2
100.7
105.4
108.3
111.9

40.0
22.5
27.1
17.5
3.2
0.1
18.2
25.9
8.4
14.3
10.8
5.2

95.0
88.5
96.9
99.7
105.0
96.2
92.7
83.4
96.5
113.6
114.9
117.4

4.1
3.4
1.4
3.5
5.2
8.7
10.2
9.4
8.3
11.0
7.1
8.7

96.0
96.8
98.2
97.1
101.6
98.8
101.6
100.9
106.3
99.1
99.6
104.0

-4.9
11.0
2.3
3.5
2.2
4.4
4.3
1.7
1.4
-4.3
3.8
2.1

2011

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

105.4
92.8
103.9
102.5
107.3
104.7
104.2
100.9
106.0
107.4
107.2
112.0

10.9
-0.5
5.6
6.1
6.6
6.1
4.1
4.9
3.2
3.3
1.8
2.7

104.0
97.8
114.5
106.4
112.6
117.5
117.0
109.7
107.6
109.0
116.3
114.5

12.1
8.2
14.2
14.8
19.0
16.7
12.5
11.7
6.9
3.4
7.4
2.3

104.9
90.0
99.8
105.6
109.9
100.9
96.2
86.2
100.1
116.1
111.9
122.1

10.4
1.7
3.1
5.9
4.7
4.9
3.8
3.4
3.7
2.2
-2.6
4.0

106.3
91.7
100.8
99.4
103.6
100.5
101.8
103.4
107.9
102.7
100.9
106.4

10.7
-5.3
2.6
2.4
2.0
1.7
0.2
2.5
1.5
3.6
1.3
2.3

2012

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

107.5
97.9
105.0
102.9
110.0
105.9
108.0
102.0
109.1
109.0
111.5
114.2

2.0
5.5
1.1
0.4
2.5
1.1
3.6
1.1
2.9
1.5
4.0
2.0

107.7
107.9
114.4
107.8
118.1
120.5
126.2
114.3
115.9
117.1
123.0
125.3

3.6
10.3
-0.1
1.3
4.9
2.6
7.9
4.2
7.7
7.4
5.8
9.4

103.6
91.0
99.3
103.7
110.4
99.2
96.0
80.7
96.0
113.5
117.8
119.9

-1.2
1.1
-0.6
-1.8
0.5
-1.7
-0.2
-6.4
-4.1
-2.2
5.3
-1.8

109.2
96.3
103.1
100.2
106.0
102.1
105.0
105.8
111.7
103.2
103.3
106.5

2.7
5.0
2.3
0.8
2.3
1.6
3.1
2.3
3.5
0.5
2.4
0.1

2013

1
2P
3P

104.6
99.6
106.8

-2.7
1.7
1.7

112.0
106.7
115.3

4.0
-1.1
0.8

101.4
91.8
106.9

-2.1
0.9
7.7

102.6
99.8
102.8

-6.0
3.6
-0.3

P: Preliminary
Source: Statistics Korea
Statistical Appendices | 69

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

Period
2010
2011
2012

100.0
109.2
101.1

Y-o-Y
change (%)
5.2
0.9
0.2

Non-durable goods

100.0
100.2
98.5

Y-o-Y
change (%)
4.0
0.2
-1.7

100.0
101.2
102.3

Y-o-Y
change (%)
5.8
1.2
1.1

Consumer
sentiment
index
-

2010




96.6
96.9
100.6
106.0

9.8
3.3
2.8
5.3

95.6
97.7
101.2
105.5

18.4
-1.9
2.0
0.3

96.9
96.5
100.4
106.2

6.0
6.2
3.3
7.9

-

2011




100.8
97.9
101.2
103.8

4.3
1.0
0.6
-2.1

99.5
100.7
100.8
99.9

4.1
3.1
-0.4
-5.3

101.4
96.7
101.4
105.4

4.6
0.2
1.0
-0.8

-

2012




100.0
99.7
100.9
103.9

-0.8
1.8
-0.3
0.1

97.4
98.9
96.0
101.7

-2.1
-1.8
-4.8
1.8

101.2
100.1
103.0
104.8

-0.2
3.5
1.6
-0.6

-

2013

ⅠP

99.2

-0.8

98.0

0.6

99.6

-1.6

-

2010

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

101.5
90.1
98.1
97.3
95.2
98.1
100.5
99.8
101.4
106.7
106.1
105.3

15.5
6.3
7.5
5.8
2.7
1.4
3.4
10.2
-4.3
7.4
9.6
-0.5

96.0
91.2
99.7
95.2
95.4
102.4
105.5
97.7
100.3
106.0
106.5
104.1

36.2
10.9
11.4
10.9
-4.7
-9.2
1.3
9.1
-3.6
6.7
2.0
-6.9

103.8
89.6
97.4
98.2
95.1
96.2
98.4
100.8
101.9
106.9
105.9
105.8

7.7
4.3
5.9
3.5
6.8
8.3
5.0
10.7
-4.6
7.6
13.8
2.8

115
113
112
112
112
114
114
112
111
110
113
112

2011

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

108.6
88.7
105.2
98.2
96.1
99.3
99.7
102.1
101.8
105.0
102.1
104.2

7.0
-1.6
7.2
0.9
0.9
1.2
-0.8
2.3
0.4
-1.6
-3.8
-1.0

100.9
92.6
105.1
97.3
99.3
105.4
104.2
98.1
100.0
100.3
98.6
100.9

5.1
1.5
5.4
2.2
4.1
2.9
-1.2
0.4
-0.3
-5.4
-7.4
-3.1

111.9
87.1
105.2
98.6
94.7
96.7
97.8
103.8
102.6
107.0
103.6
105.7

7.8
-2.8
8.0
0.4
-0.4
0.5
-0.6
3.0
0.7
0.1
-2.2
-0.1

111
109
110
102
105
103
103
99
99
101
105
100

2012

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

100.2
97.9
101.9
98.7
101.9
98.6
101.6
98.5
102.7
103.7
104.2
103.7

-7.7
10.4
-3.1
0.5
6.0
-0.7
1.9
-3.5
0.9
-1.2
2.1
-0.5

92.2
98.0
102.1
93.6
100.2
102.9
105.1
87.5
95.4
98.4
101.0
105.7

-8.6
5.8
-2.9
-3.8
0.9
-2.4
0.9
-10.8
-4.6
-1.9
2.4
4.8

103.7
97.9
101.9
100.9
102.7
96.7
100.1
103.1
105.8
105.9
105.6
102.8

-7.3
12.4
-3.1
2.3
8.4
0.0
2.4
-0.7
3.1
-1.0
1.9
-2.7

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

2013

1
2P
3P
4

104.0
92.8
100.8
-

3.8
-5.2
-1.1
-

96.8
94.0
103.3
-

5.0
-4.1
1.2
-

107.0
92.2
99.7
-

3.2
-5.8
-2.2
-

102
102
104
102

Source: Statistics Korea
70 | Statistical Appendices

6.
Machinery orders received, domestic machinery shipment and estimated
facility investment index
Domestic machinery orders received excluding ship
(billion won, constant value)
Period
2012

Private

Total

Public

21,789

2,142

19,647

Manufacturing
10,482

Estimated
facility investment
index
(2005=100)

Domestic
machinery shipment
excluding ship
(2010=100)

136.4

98.8

2012




6,310
5,391
5,079
5,004

810
285
579
468

5,500
5,106
4,500
4,536

3,055
2,765
2,320
2,339

144.5
145.7
128.1
127.4

103.4
104.6
90.9
96.4

2013

ⅠP

5,814

426

5,388

2,925

123.7

83.5

2012

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

1,933
2,541
1,836
1,845
1,830
1,716
1,835
1,516
1,729
1,545
1,689
1,771

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

1,881
1,846
1,773
1,789
1,791
1,526
1,525
1,347
1,629
1,458
1,562
1,516

1,158
1,036
860
927
988
850
779
689
852
733
833
773

139.4
146.8
147.4
143.1
145.9
148.1
140.4
118.2
125.7
119.7
124.4
138.1

95.0
106.0
109.1
104.1
103.8
105.8
96.4
87.8
88.6
92.7
93.8
102.6

2013

1
2P
3P

1,864
1,727
2,223

139
163
123

991
855
1,079

117.5
119.7
133.8

81.1
77.5
92.0

-13.4

-11.0

-25.9

-2.0

-5.3

2012

1,724
1,564
2,100
Y-o-Y change (%)
-13.6

2012




-1.1
-19.8
-10.4
-21.5

126.1
-59.7
86.7
-54.6

-8.7
-15.1
-16.0
-15.1

-19.0
-27.3
-26.6
-31.4

10.7
-2.7
-8.2
-6.9

4.4
-5.0
-10.7
-9.4

2013

ⅠP

-7.9

-47.4

-2.0

-4.2

-14.4

-19.2

2012

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

-0.8
25.1
-23.6
-4.4
-14.4
-35.4
-9.4
-13.8
-8.1
-20.8
-26.4
-17.0

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

0.0
-5.7
-18.9
-4.3
-10.2
-29.1
-19.5
-19.7
-8.7
-11.0
-11.6
-21.8

3.9
-12.3
-41.7
-22.4
-19.1
-38.7
-25.1
-32.7
-22.4
-24.3
-25.0
-42.0

10.3
27.3
-1.7
2.8
-3.3
-7.0
-0.4
-15.6
-8.6
-3.5
-10.8
-6.3

1.0
16.5
-2.5
-0.3
-6.8
-7.6
-6.9
-12.2
-13.1
-8.5
-8.4
-11.2

2013

1
2P
3P

-3.6
-32.0
21.1

169.8
-76.5
95.4

-8.3
-15.3
18.4

-14.4
-17.5
25.4

-15.7
-18.5
-9.2

-14.6
-26.9
-15.7

P: Preliminary
Source: Statistics Korea
Statistical Appendices | 71

7.
Value of construction completed and domestic construction orders received
(current prices, billion won)
Period

Value of
construction
completion
(total)

2012

Type of order
Public

Private

Domestic
construction
orders received
(total)

Type of order
Public

Private

88,031

33,578

50,260

86,821

26,103

57,202

2012




19,106
22,203
21,135
25,587

7,385
8,813
7,499
9,881

10,795
12,333
12,584
14,548

21,772
25,136
17,665
22,248

5,531
5,602
5,478
9,492

15,549
18,515
11,632
11,506

2013

ⅠP

20,072

6,932

12,388

12,589

4,211

8,107

2012

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

5,742
5,979
7,385
6,789
7,225
8,189
6,970
6,508
7,658
7,298
8,030
10,259

2,106
2,358
2,921
2,625
2,839
3,349
2,337
2,292
2,870
2,574
2,974
4,333

3,339
3,371
4,086
3,875
4,066
4,393
4,254
3,907
4,423
4,432
4,742
5,375

7,244
8,122
6,406
6,033
7,215
11,887
6,450
5,120
6,195
5,501
7,232
9,516

1,796
2,165
1,390
1,448
1,072
3,082
2,284
1,341
1,852
1,962
2,148
5,382

5,100
5,812
4,636
4,097
6,034
8,385
3,886
3,738
4,008
3,507
4,743
3,255

2013

1
2P
3P

6,258
6,217
7,597

2,065
2,341
2,527

3,424
4,304
4,861

1,306
1,280
1,625

1,970
2,955
3,181

-4.0

-4.4

3,948
3,650
4,790
Y-o-Y change (%)
-2.7

-8.9

-8.8

-7.5

2012
2012




-0.9
-7.7
-1.3
-5.1

0.9
-5.1
-2.4
-8.7

-2.1
-7.5
-0.1
-1.0

33.3
-0.7
-13.6
-33.1

34.3
-11.2
-18.4
-17.3

40.0
4.9
-9.6
-43.1

2013

ⅠP

5.1

-6.1

14.8

-42.2

-23.9

-47.9

2012

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

-7.2
12.2
-4.8
-5.4
-2.9
-13.3
3.2
-5.6
-1.5
-8.3
2.2
-7.9

-13.6
16.3
2.3
-4.3
1.8
-10.9
-1.7
-6.8
0.9
-11.3
-6.2
-8.8

-4.3
10.1
-8.8
-4.7
-4.3
-12.5
4.8
-4.7
-0.3
-5.1
10.5
-6.2

47.5
99.1
-12.8
-10.1
0.9
3.7
23.1
-32.4
-19.7
-26.6
-20.0
-43.0

50.2
53.7
0.3
1.4
-43.3
3.0
23.1
-10.9
-44.7
-15.3
-28.1
-12.9

75.6
131.7
-18.6
-11.5
27.3
1.3
25.6
-35.4
0.4
-29.7
-19.2
-65.2

2013

1
2P
3P

9.0
4.0
2.9

-2.0
-0.7
-13.5

18.3
8.3
17.2

-52.7
-47.0
-24.1

-33.9
-40.9
16.9

-61.4
-49.2
-31.4

P: Preliminary
Source: Statistics Korea
72 | Statistical Appendices

8.
Composite indices of business cycle indicators and BSI

Period

Leading index
(2010=100)

Coincident index
(2010=100)

Cycle of
coincident index
(2010=100)

BSI
(results)

BSI
(prospects)

2009

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

87.4
88.2
88.7
90.5
91.9
93.6
94.3
95.0
95.9
96.9
98.2
98.8

88.5
88.5
89.2
90.3
90.8
92.3
93.1
93.7
94.3
95.3
96.0
96.5

95.3
95.0
95.4
96.1
96.4
97.5
98.0
98.3
98.6
99.2
99.6
99.7

58.1
62.4
89.0
93.7
100.9
96.6
98.5
96.0
110.5
107.5
103.8
104.8

52.0
66.0
76.1
86.7
103.8
100.2
98.7
99.8
117.0
116.5
109.0
105.9

2010

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

99.2
99.1
99.0
99.0
99.6
100.1
100.7
100.8
101.0
100.5
100.5
100.5

97.0
97.7
98.4
99.1
99.8
100.3
100.9
101.1
101.1
101.0
101.4
102.2

99.9
100.2
100.5
100.8
101.1
101.2
101.4
101.1
100.7
100.2
100.2
100.6

99.2
98.7
113.1
108.9
111.9
109.4
105.0
98.6
104.1
104.3
103.5
102.1

103.1
102.3
116.2
111.2
113.4
108.9
107.3
100.7
111.1
113.1
107.1
104.2

2011

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

101.3
101.6
101.7
101.3
101.6
102.0
102.6
102.9
103.2
103.3
103.4
103.7

103.5
103.6
104.0
104.0
104.7
105.3
105.9
106.5
106.5
107.0
106.9
107.4

101.4
101.1
101.1
100.7
100.9
101.1
101.2
101.4
101.0
101.0
100.6
100.5

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

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

2012

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

104.4
105.4
105.7
106.2
106.3
107.4
108.0
108.1
108.0
108.3
109.1
109.9

107.4
108.2
108.3
108.6
108.7
109.1
109.7
109.6
110.1
110.0
110.7
111.3

100.2
100.5
100.2
100.0
99.7
99.7
99.8
99.3
99.3
98.9
99.1
99.2

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

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

2013

1
2
3
3
4

110.1
110.4
110.7
-

111.8
112.3
112.3
-

99.2
99.3
98.9
-

85.0
83.0
101.3
94.1
-

85.7
86.7
104.4
101.5
99.8

Source: Statistics Korea & The Bank of Korea
Statistical Appendices | 73

9.
Balance of payments (I)
(million US$)
Current balance
Goods trade balance

Period
2010
2011
2012

29,393.5
26,068.2
43,138.5

40,082.5
31,660.0
38,337.7

Exports
461,444.9
551,765.4
552,565.3

Imports
421,362.4
520,105.4
514,227.6

Services trade
balance

Income trade
Balance

Current transfers

-8,626.0
-5,849.5
2,676.2

1,015.9
2,890.9
4,885.5

-3,078.9
-2,633.2
-2,760.9

2010




67.8
10,734.7
10,121.7
8,469.3

4,296.2
12,307.0
11,566.2
11,913.1

100,951.1
117,120.4
116,756.4
126,617.0

96,654.9
104,813.4
105,190.2
114,703.9

-4,067.7
-200.0
-1,787.5
-2,570.8

595.6
-901.4
1,289.2
32.5

-756.3
-470.9
-946.2
-905.5

2011




2,610.3
5,492.2
6,896.0
11,506.8

5,842.7
7,661.0
7,197.7
10,248.9

127,691.2
142,722.8
141,393.5
140,756.8

121,848.5
135,061.8
134,195.8
130,507.9

-2,538.0
-796.0
-1,198.2
154.8

387.9
-824.8
1,314.9
1,577.8

-1,082.3
-548.0
-418.5
-474.7

2012




2,559.9
11,188.8
14,561.7
14,828.1

2,612.4
8,520.5
13,341.2
13,863.6

134,627.6
138,784.9
137,086.0
142,066.8

132,015.2
130,264.4
123,744.8
128,203.2

-648.4
2,312.7
654.4
357.5

1,487.6
821.4
1,041.3
1,535.2

-891.7
-465.8
-475.2
-928.2

2013

10,023.1

9,391.0

137,368.8

127,977.8

-482.9

1,375.0

-260.0

2010

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

-599.5
-549.2
1,216.5
724.5
4,923.1
5,087.1
4,779.0
1,668.5
3,674.2
5,489.1
2,024.4
955.8

891.0
633.2
2,772.0
3,333.9
3,625.4
5,347.7
4,934.9
2,224.0
4,407.3
5,403.2
3,241.2
3,268.7

31,782.7
31,111.0
38,057.4
38,740.1
38,083.5
40,296.8
40,473.4
37,186.1
39,096.9
42,008.4
41,822.0
42,786.6

30,891.7
30,477.8
35,285.4
35,406.2
34,458.1
34,949.1
35,538.5
34,962.1
34,689.6
36,605.2
38,580.8
39,517.9

-1,596.2
-1,495.3
-976.2
-561.5
932.8
-571.3
-219.6
-630.1
-937.8
-352.6
-201.2
-2,017.0

456.5
549.9
-410.8
-1,514.5
390.0
223.1
359.9
540.2
389.1
654.2
-775.6
153.9

-350.8
-237.0
-168.5
-533.4
-25.1
87.6
-296.2
-465.6
-184.4
-215.7
-240.0
-449.8

2011

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

154.7
1,126.1
1,329.5
1,277.6
2,183.9
2,030.7
3,773.6
292.6
2,829.8
4,132.9
4,564.6
2,809.3

1,557.9
1,530.8
2,754.0
3,327.6
1,633.8
2,699.6
4,728.0
371.5
2,098.2
3,547.2
3,997.2
2,704.5

42,662.8
37,228.3
47,800.4
47,879.4
47,149.8
47,693.6
48,555.9
45,634.9
47,202.7
46,451.7
46,656.2
47,648.9

41,104.9
35,697.2
45,046.4
44,551.8
45,516.0
44,994.0
43,827.9
45,263.4
45,104.5
42,904.5
42,659.0
44,944.4

-1,640.9
-569.1
-328.0
-178.8
15.5
-632.7
-690.9
-577.9
70.6
2.8
357.2
-205.2

703.7
542.6
-858.4
-1,581.9
517.3
239.8
72.3
699.6
543.0
643.5
445.6
488.7

-466.0
-378.2
-238.1
-289.3
17.3
-276.0
-335.8
-200.6
118.0
-60.6
-243.5
-178.7

2012

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

-968.8
557.3
2,971.4
1,734.0
3,574.9
5,879.9
6,144.3
2,504.3
5,913.1
5,781.7
6,906.2
2,140.2

-1,624.0
1,310.1
2,926.3
1,750.8
1,715.9
5,053.8
5,340.6
2,514.0
5,486.6
5,168.9
6,777.4
1,917.3

41,383.8
45,863.0
47,380.8
45,820.3
46,162.8
46,801.8
46,620.5
42,895.6
47,569.9
48,144.1
49,636.8
44,285.9

43,007.8
44,552.9
44,454.5
44,069.5
44,446.9
41,748.0
41,279.9
40,381.6
42,083.3
42,975.2
42,859.4
42,368.6

-128.8
-1,219.3
699.7
549.7
1,593.0
170.1
593.3
-262.2
323.3
378.3
-51.6
30.8

1,191.7
613.4
-317.5
-422.0
341.6
901.8
401.9
435.5
203.9
521.9
374.3
639.0

-407.7
-146.9
-337.1
-144.5
-75.6
-245.7
-191.5
-183.0
-100.7
-287.4
-193.9
-446.9

2013P

1
2
3

2,331.7
2,712.9
4,978.5

2,617.7
2,562.9
4,210.4

47,163.0
42,218.6
47,987.2

44,545.3
39,655.7
43,776.8

-927.1
-461.0
905.2

968.4
628.9
-222.3

-327.3
-17.9
85.2

P: Preliminary
Source: The Bank of Korea
74 | Statistical Appendices

10.
Balance of payments (II)
(million US$)
Capital & financial account
Period
2010
2011
2012

Direct
investment

Portfolio
investment

Financial
derivative

Other
investment

-27,478.5
-26,778.0
-43,619.1

-22,184.3
-16,410.0
-18,628.1

42,479.8
13,109.3
10,114.8

828.9
-1,031.3
3,075.2

-21,414.4
-8,468.6
-26,897.7

Capital transfers Changes in
& acquisition of reserve assets
non-financial
assets
-217.9
-26,970.6
-24.7
-13,952.8
602.1
-11,885.4

Errors and
omissions
-1,915.0
709.8
480.6

2010




743.2
-8,818.0
-9,103.9
-10,299.8

-2,873.4
-2,898.6
-6,617.3
-9,795.0

11,725.9
7,207.0
15,659.9
7,887.0

829.9
-882.1
-241.4
1,122.5

-191.2
-6,727.8
-7,519.0
-6,976.4

-179.8
20.3
-8.2
-50.2

-8,568.2
-5,536.8
-10,377.9
-2,487.7

-811.0
-1,916.7
-1,017.8
1,830.5

2011




-2,754.1
-6,808.0
-8,320.9
-20,931.2

-4,696.3
-4,138.1
-2,807.6
-2,980.7

-1,379.1
2,035.4
8,108.4
-5,338.8

730.3
-542.9
-1,490.7
1,086.4

6,251.6
-1,432.5
-18,692.6
-11,733.2

-181.4
-111.9
235.5
106.8

-3,479.2
-2,618.0
6,326.1
-2,071.7

143.8
1,315.8
1,424.9
6,103.1

2012




-1,377.1
-7,968.0
-13,342.8
-20,931.2

-7,203.3
-3,015.2
-5,428.9
-2,980.7

15,156.1
-5,481.3
5,778.8
-5,338.8

1,355.0
-65.3
699.1
1,086.4

-4,232.7
-581.2
-10,350.6
-11,733.2

134.3
284.3
76.7
106.8

-6,586.4
890.7
-4,118.0
-2,071.7

-1,182.8
-3,220.8
-1,218.9
6,103.1

2013

-10,923.6

-4,065.9

-5,769.9

1,418.9

1,272.1

152.0

-3,930.8

900.5

2010

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

-1,176.7
2,454.3
-534.4
1,044.1
-5,831.6
-4,030.5
-3,182.5
-615.0
-5,306.4
-4,519.4
-3,996.0
-1,784.4

-936.1
-549.9
-1,387.4
-1,102.5
-677.6
-1,118.5
-1,758.4
-1,139.5
-3,719.4
-6,893.6
-1,119.5
-1,781.9

171.9
2,771.5
8,782.5
6,093.5
1,073.0
40.5
8,698.4
1,650.2
5,311.3
8,528.1
2,243.9
-2,885.0

230.0
593.4
6.5
126.2
-799.8
-208.5
-227.3
124.6
-138.7
366.2
251.4
504.9

6,410.8
-912.6
-5,689.4
5,337.6
-12,610.7
545.3
-3,633.0
-25.7
-3,860.3
-3,814.4
-3,627.2
465.2

-70.6
-46.1
-63.1
-120.5
100.2
40.6
-0.5
12.0
-19.7
-47.1
-25.3
22.2

-6,982.7
598.0
-2,183.5
-9,290.2
7,083.3
-3,329.9
-6,261.7
-1,236.6
-2,879.6
-2,658.6
-1,719.3
1,890.2

1,776.2
-1,905.1
-682.1
-1,768.6
908.5
-1,056.6
-1,596.5
-1,053.5
1,632.2
-969.7
1,971.6
828.6

2011

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

-1,282.0
-1,996.2
524.1
394.7
-3,956.7
-3,246.0
-2,469.2
-1,690.6
-4,161.1
-4,391.9
-6,191.9
-3,497.8

-1,725.4
-1,635.1
-1,335.8
-738.8
-1,254.7
-2,144.6
327.1
-1,036.4
-2,098.3
-1,132.2
-2,077.1
-842.7

904.6
-3,004.0
720.3
4,575.0
-1,140.1
-1,399.5
9,258.3
-2,923.0
1,773.1
3,919.1
39.8
-2,411.4

569.3
-363.3
524.3
-206.2
165.1
-501.8
526.6
-1,868.6
-148.7
108.5
-379.9
-160.6

1,773.30
5,126.9
-648.6
-145.9
-821.7
-464.9
-6,581.0
4,638.4
-16,750.0
2,784.7
-6.2
10.1

-120.7
-32.7
-28.0
-33.6
-49.9
-28.4
13.8
41.5
180.2
109.7
98.1
0.0

-2,683.1
-2,088.0
1,291.9
-3,055.8
-855.4
1,293.2
-6,014.0
-542.5
12,882.6
-10,181.7
-3,866.6
-93.2

1,127.3
870.1
-1,853.6
-1,672.3
1,772.8
1,215.3
-1,304.4
1,398.0
1,331.3
259.0
1,627.3
688.5

2012

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

1,305.6
-920.3
-1,762.4
157.7
-2,897.4
-5,228.3
-7,840.1
-605.0
-4,897.7
-7,259.3
-9,838.2
-3,833.7

-2,013.3
-3,572.6
-1,617.4
-940.4
-1,382.0
-692.8
-1,443.6
-1,607.1
-2,378.2
-975.0
-1,336.2
-669.5

7,737.0
6,115.2
1,303.9
-2,213.3
-937.1
-2,330.9
2,529.2
580.9
2,668.7
-4,657.2
-3,875.8
3,194.2

434.2
214.1
706.7
320.5
-390.4
4.6
267.1
68.3
363.7
-135.3
612.6
609.1

-2,190.4
-1,526.1
-516.2
2,667.4
-1,600.9
-1,647.7
-7,625.3
1,464.0
-4,189.3
-15.5
-2,683.7
-9,034.0

-1.7
36.0
100.0
102.3
144.2
37.8
36.3
8.0
32.4
-6.1
5.8
107.1

-2,660.2
-2,186.8
-1,739.4
221.2
1,268.8
-599.3
-1,603.8
-1,119.2
-1,395.0
-1,470.2
-2,560.9
1,959.4

-336.8
363.0
-1,209.0
-1,891.7
-677.5
-651.6
1,695.8
-1,899.3
-1,015.4
1,477.6
2,932.0
1,693.5

2013P

1
2
3

-910.3
-3,269.1
-6,744.2

-1,417.7
-777.8
-1,870.4

-4,374.3
1,993.5
-3,389.1

586.9
686.9
145.1

4,643.9
-3,218.3
-153.5

48.5
37.8
65.7

-397.6
-1,991.2
-1,542.0

-1,421.4
556.2
1,765.7

P: Preliminary
Source: The Bank of Korea
Statistical Appendices | 75

11.
Prices
(2010=100)
Consumer Prices

Producer prices

Export & import prices

Period
All Items
2011
2012

Commodity

Service

Core

All Items

Commodity

Export

Import

104.0
106.3

105.7
108.9

102.7
104.2

103.2
104.9

106.7
107.5

108.7
108.9

100.2
97.9

111.6
110.8

2011

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

102.2
102.9
103.3
103.4
103.6
103.8
104.3
105.0
104.9
104.7
104.8
105.2

103.4
104.4
104.9
104.6
104.7
105.0
105.9
107.1
107.1
106.6
106.8
107.3

101.2
101.7
102.1
102.4
102.6
102.8
103.1
103.3
103.1
103.2
103.3
103.5

101.4
102.1
102.4
102.6
103.0
103.4
103.7
103.8
103.7
103.6
103.9
104.3

104.3
105.1
106.3
107.0
107.3
107.1
107.2
107.4
107.4
107.3
107.0
107.1

105.7
106.7
108.3
109.1
109.5
109.1
109.3
109.5
109.6
109.4
108.9
109.0

98.7
100.7
103.7
102.3
100.5
99.3
97.4
98.1
101.0
102.2
99.5
99.4

106.3
109.3
113.2
113.9
111.5
110.9
109.5
109.8
113.6
114.8
113.1
113.3

2012

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

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

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

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

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

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

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

100.4
100.0
100.6
101.0
100.2
98.8
97.5
97.5
97.6
95.6
92.9
92.3

114.4
115.0
116.9
115.6
113.5
109.4
108.5
110.3
111.1
107.4
104.3
103.2

2013

1
2
3
4

107.3
107.6
107.4
107.3

109.8
110.2
110.3
109.8

105.2
105.5
105.1
105.3

106.0
106.7
106.3
105.9

106.8
107.8
107.1
106.6

92.2
94.4
94.7
95.2

102.3
105.1
104.3
104.4

4.0
2.2

5.7
3.0

105.9
106.1
105.9
105.9
Y-o-Y change (%)
2.7
3.2
1.5
1.6

6.7
0.7

8.7
0.2

0.2
-2.4

11.6
-0.7

2011
2012
2011

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

3.4
3.9
4.1
3.8
3.9
4.2
4.5
4.7
3.8
3.6
4.2
4.2

5.2
5.9
6.1
5.0
5.2
5.8
6.4
6.8
5.0
4.5
6.0
5.7

2.0
2.3
2.6
2.7
2.7
2.9
2.9
3.0
2.7
2.8
2.7
2.8

2.1
2.6
3.0
3.0
3.2
3.5
3.6
3.5
3.3
3.2
3.5
3.6

6.8
7.4
8.2
8.1
7.5
7.2
7.0
6.9
6.3
5.8
5.1
4.3

9.1
9.8
10.7
10.6
9.7
9.3
9.1
8.9
8.0
7.4
6.5
5.3

0.8
1.6
5.1
3.4
-0.9
-4.8
-6.0
-2.7
1.0
5.3
2.0
-1.0

11.7
14.5
17.7
17.4
11.7
8.6
7.6
8.0
11.9
14.5
10.7
6.1

2012

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

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

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

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

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

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

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

1.7
-0.7
-3.0
-1.2
-0.3
-0.5
0.1
-0.7
-3.4
-6.5
-6.6
-7.2

7.7
5.2
3.3
1.5
1.8
-1.3
-0.9
0.5
-2.2
-6.4
-7.9
-9.0

2013

1
2
3
4

1.5
1.4
1.3
1.2

1.8
1.6
1.0
0.8

1.3
1.2
1.5
1.5

1.2
1.3
1.5
1.4

-1.6
-1.6
-2.4
-2.8

-2.5
-2.5
-3.7
-4.0

-8.1
-5.6
-5.9
-5.7

-10.6
-8.6
-10.8
-9.7

Source: The Bank of Korea
76 | Statistical Appendices

12.
Employment
Economically active persons (thous.)
Period

2011
2012

Wage workers

Employed persons (thous.)

25,099
25,501

All industry Manufacturing
24,244
4,091
24,681
4,105

S.O.C &
service
18,595
19,033

Status of Worker

Unemployment (%)
Regular

Temporary

Daily

3.4
3.2

17,397
17,712

10,661
11,097

4,990
4,988

1,746
1,627

2011

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

24,114
24,431
24,918
25,240
25,480
25,592
25,473
25,257
25,076
25,409
25,318
24,880

23,196
23,336
23,846
24,303
24,661
24,752
24,636
24,495
24,318
24,673
24,589
24,125

4,148
4,149
4,122
4,108
4,137
4,135
4,079
4,031
4,014
4,044
4,054
4,071

18,007
18,019
18,244
18,536
18,731
18,812
18,844
18,739
18,595
18,856
18,921
18,833

3.8
4.5
4.3
3.7
3.2
3.3
3.3
3.0
3.0
2.9
2.9
3.0

16,832
16,856
17,065
17,357
17,626
17,720
17,667
17,510
17,378
17,608
17,650
17,496

10,305
10,390
10,543
10,618
10,708
10,716
10,718
10,710
10,764
10,796
10,838
10,824

4,848
4,781
4,782
4,928
5,064
5,132
5,137
5,031
5,047
5,094
5,047
4,986

1,680
1,684
1,740
1,812
1,854
1,872
1,811
1,769
1,567
1,718
1,765
1,686

2012

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

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

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

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

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

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

17,184
17,225
17,421
17,679
17,935
17,932
17,911
17,734
17,862
17,958
17,941
17,763

10,769
10,807
10,899
10,957
11,064
11,157
11,153
11,203
11,291
11,302
11,281
11,282

4,868
4,877
4,997
5,095
5,153
5,094
5,081
4,935
4,961
4,964
4,960
4,875

1,547
1,542
1,525
1,627
1,718
1,681
1,676
1,595
1,610
1,692
1,700
1,606

2013

1
2
3
4

24,901
24,973
25,397
25,928

24,054
23,984
24,514
25,103

4,189
4,139
4,141
4,192

17,581
17,493
17,743
18,145

11,292
11,336
11,510
11,616

4,791
4,725
4,769
4,892

1,498
1,431
1,465
1,636

1.4
1.6

1.7
1.8

1.6
0.3

18,810
3.4
18,736
4.0
18,989
3.5
19,303
3.2
Y-o-Y change (%)
2.1
2.4
-

2.5
1.8

5.7
4.1

-1.5
0.0

-3.9
-6.9

2011
2012
2011

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

0.1
1.6
2.2
1.5
1.5
1.7
1.0
1.7
0.7
1.6
1.9
1.4

1.4
2.1
2.0
1.6
1.5
1.9
1.4
2.0
1.1
2.1
2.0
1.9

5.7
6.7
5.1
2.9
2.5
2.9
1.0
-0.7
-1.2
-1.3
-2.1
-2.1

1.2
1.4
1.1
1.4
1.3
2.1
1.9
3.1
2.1
3.2
3.2
3.1

-

3.3
3.5
2.7
2.1
2.2
3.1
2.5
2.7
1.6
2.5
2.0
2.0

6.1
6.2
6.2
6.1
6.3
6.2
6.0
5.5
5.4
5.0
4.9
4.6

-0.3
-1.2
-3.9
-4.3
-3.0
-0.6
-1.5
-1.8
-1.2
0.1
-0.4
-0.3

-2.6
1.6
1.5
-1.3
-5.1
-3.4
-4.9
-0.3
-11.9
-5.0
-7.0
-6.7

2012

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

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

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

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

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

-

2.1
2.2
2.1
1.9
1.8
1.2
1.4
1.3
2.8
2.0
1.7
1.5

4.5
4.0
3.4
3.2
3.3
4.1
4.1
4.6
4.9
4.7
4.1
4.2

0.4
2.0
4.5
3.4
1.8
-0.7
-1.1
-1.9
-1.7
-2.5
-1.7
-2.2

-7.9
-8.5
-12.3
-10.2
-7.4
-10.2
-7.5
-9.8
2.7
-1.5
-3.6
-4.7

2013

1
2
3
4

1.3
0.6
0.7
1.1

1.4
0.8
1.0
1.4

3.9
1.9
3.1
4.1

1.0
0.7
0.6
1.0

-

2.3
1.6
1.8
2.6

4.9
4.9
5.6
6.0

-1.6
-3.1
-4.6
-4.0

-3.1
-7.1
-4.0
0.6

Source: Statistics Korea
Statistical Appendices | 77

13.
Financial indicators
(period average)
Yields(%)
Period

Stock

2008

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

5.0
5.0
5.0
5.0
5.0
5.0
5.0
5.2
5.2
4.9
4.0
3.3

5.8
5.3
5.3
5.4
5.4
5.4
5.5
5.8
5.8
6.0
5.6
4.7

Corporate bonds
(3 years, AA-)
6.6
6.3
6.1
5.9
6.2
6.7
7.0
7.1
7.5
8.0
8.6
8.4

2009

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

2.4
2.1
1.8
1.8
1.9
1.9
1.9
2.0
2.0
2.0
2.0
2.0

3.2
2.7
2.5
2.4
2.4
2.4
2.4
2.5
2.6
2.8
2.8
2.8

7.3
7.1
6.1
5.7
5.2
5.2
5.5
5.7
5.6
5.6
5.4
5.4

3.4
3.8
3.7
3.8
3.8
4.1
4.1
4.4
4.4
4.5
4.3
4.2

4.0
4.6
4.5
4.4
4.5
4.7
4.6
4.9
4.9
4.9
4.8
4.8

1,162.11
1,063.03
1,206.26
1,369.40
1,395.89
1,390.07
1,577.29
1,591.85
1,673.14
1,580.69
1,555.60
1,682.77

2010

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

2.0
2.0
2.0
2.0
2.0
2.0
2.2
2.3
2.3
2.3
2.4
2.5

2.9
2.9
2.8
2.5
2.5
2.5
2.6
2.6
2.7
2.7
2.7
2.8

5.4
5.3
5.0
4.7
4.5
4.7
4.8
4.7
4.4
4.1
4.2
4.2

4.3
4.2
3.9
3.8
3.7
3.8
3.9
3.7
3.5
3.2
3.4
3.3

4.8
4.8
4.5
4.4
4.4
4.4
4.5
4.3
3.9
3.7
4.0
4.0

1,602.43
1,594.58
1,692.85
1,741.56
1,641.25
1,698.29
1,759.33
1,742.75
1,872.81
1,882.95
1,904.63
2,051.00

2011

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

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

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

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

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

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

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

2012

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

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

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

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

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

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

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

2013

1
2
3
4

2.8
2.8
2.7
2.8

2.9
2.8
2.8
2.8

3.2
3.1
3.0
2.9

2.8
2.7
2.6
2.6

2.9
2.8
2.7
2.6

1,961.94
2,026.49
2,004.89
1,963.95

Call rate (1 day)

CD (91 days)

Source: The Bank of Korea
78 | Statistical Appendices

Treasury bonds
(3 years)
5.4
5.1
5.2
5.0
5.3
5.7
6.0
5.8
5.8
5.1
5.0
4.0

Treasury bonds
(5 years)
5.5
5.1
5.2
5.0
5.4
5.8
6.0
5.8
5.8
5.2
5.2
4.3

KOSPI
(end-period)
1,624.68
1,711.62
1,703.99
1,825.47
1,852.02
1,674.92
1,594.67
1,474.24
1,448.06
1,113.06
1,076.07
1,124.47

14.
Monetary indicators
(billion won)
Period

Reserve money

2011
2012

M1

M2

Lf

75,232.0
82,131.1

425,675.1
441,963.6

1,708,984.5
1,798,625.7

2,208,170.4
2,379,518.7

2011

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

73,540.8
75,432.1
73,012.7
73,206.1
73,828.5
74,705.5
74,069.7
75,642.3
77,942.2
76,944.6
76,617.3
77,842.5

429,368.1
432,482.8
430,936.6
425,420.5
423,994.7
421,885.3
418,973.1
422,649.3
425,196.4
421,480.1
423,111.9
432,602.2

1,676,448.8
1,674,390.5
1,677,475.9
1,684,792.3
1,690,543.0
1,697,204.2
1,705,451.5
1,719,437.8
1,729,531.1
1,742,645.4
1,753,296.4
1,756,597.4

2,152,814.0
2,148,254.1
2,152,736.5
2,163,485.7
2,175,557.3
2,189,729.2
2,208,624.3
2,230,191.9
2,243,675.6
2,263,627.7
2,279,234.1
2,288,816.9

2012

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

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

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

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

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

2013

1
2
3

85,839.3
88,855.7
89,523.5

464,914.5
472,239.6
472,430.1
Y-o-Y change (%)
6.6
3.8

1,841,128.1
1,857,135.0
1,862,405.5

2,469,789.3
2,488,539.0
2,500,262.8

4.2
5.2

5.3
7.8

2011
2012

11.3
9.2

2011

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

13.0
13.3
11.2
13.9
8.8
12.8
10.6
12.4
10.9
10.1
10.3
8.9

12.6
11.5
11.6
9.6
7.4
5.4
3.8
5.4
5.1
4.1
2.0
1.6

6.5
5.0
4.3
3.9
3.7
3.0
3.2
4.0
4.2
4.4
4.4
4.4

6.6
5.2
4.7
4.5
4.4
4.0
4.6
5.5
5.7
6.1
6.2
6.2

2012

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

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

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

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

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

2013

1
2
3

5.1
8.8
13.2

5.8
8.0
7.4

4.8
5.3
5.0

7.7
8.1
6.8

Source: The Bank of Korea
Statistical Appendices | 79

15.
Exchange rates

₩/US$

₩/100¥

₩/Euro

Period
2011
2012

End-period

Average

End-period

Average

End-period

Average

1,153.3
1,071.1

1,108.1
1,126.9

1,485.2
1,247.5

1,391.3
1,413.1

1,494.1
1,416.3

1,541.4
1,448.2

2011

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

1,114.3
1,127.9
1,107.2
1,072.3
1,080.6
1,078.1
1,052.6
1,071.7
1,179.5
1,104.5
1,150.3
1,153.3

1,120.1
1,118.1
1,122.5
1,086.8
1,083.5
1,081.3
1,059.5
1,073.2
1,118.6
1,155.5
1,132.3
1,147.5

1,356.6
1,380.7
1,331.9
1,313.8
1,335.6
1,335.7
1,353.2
1,396.8
1,536.6
1,458.0
1,475.7
1,485.2

1,356.3
1,351.0
1,376.2
1,304.8
1,333.6
1,342.8
1,333.4
1,391.4
1,456.5
1,508.2
1,460.0
1,473.4

1,514.0
1,549.5
1,563.5
1,591.2
1,549.7
1,560.5
1,507.9
1,547.3
1,601.4
1,562.7
1,532.9
1,494.1

1,495.4
1,524.6
1,572.6
1,569.4
1,551.3
1,555.4
1,515.4
1,538.7
1,542.4
1,584.0
1,536.6
1,511.0

2012

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

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

1,145.9
1,123.4
1,125.9
1,135.6
1,154.3
1,165.5
1,143.4
1,131.7
1,124.8
1,106.9
1,087.5
1,077.0

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

1,488.7
1,433.7
1,364.1
1,393.9
1,447.1
1,469.1
1,446.4
1,438.4
1,438.6
1,400.9
1,344.0
1,288.1

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

1,477.2
1,486.0
1,487.1
1,495.6
1,478.6
1,462.3
1,407.0
1,402.8
1,446.0
1,436.0
1,395.9
1,411.4

2013

1
2
3
4

1,082.7
1,085.4
1,112.1
1,108.1

1,065.4
1,086.7
1,102.2
1,121.8

1,196.8
1,166.4
1,161.1
1,148.4

1,469.3
1,425.8
1,425.2
1,451.3

1,415.7
1,452.3
1,427.5
1,459.6

1.3
-7.1

-4.2
1.7

1,188.5
1,176.2
1,180.1
1,132.0
Y-o-Y change (%)
6.3
-16.0

5.4
1.6

-1.3
-5.2

0.6
-6.0

2011
2012
2011

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

-3.6
-2.6
-2.1
-3.9
-10.0
-10.9
-11.3
-9.9
3.3
-2.0
-0.6
1.3

-1.6
-3.4
-1.3
-2.7
-6.8
-10.8
-12.2
-9.0
-4.1
2.8
0.5
0.0

5.4
6.3
9.4
10.7
1.3
-2.1
-1.2
-0.7
12.7
4.8
7.4
6.3

8.7
5.4
9.6
9.2
5.4
0.7
-3.2
0.8
5.2
10.0
6.8
7.0

-6.2
-1.3
3.0
7.6
5.1
5.8
-2.9
2.7
2.9
-0.4
1.0
-1.3

-8.1
-3.8
1.8
4.5
6.2
5.0
-1.6
1.0
1.6
1.6
-0.3
-0.3

2012

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

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

2.3
0.5
0.3
4.5
6.5
7.8
7.9
5.5
0.6
-4.2
-4.0
-6.1

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

9.8
6.1
-0.9
6.8
8.5
9.4
8.5
3.4
-1.2
-7.1
-7.9
-12.6

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

-1.2
-2.5
-5.4
-4.7
-4.7
-6.0
-7.2
-8.8
-6.3
-9.3
-9.2
-6.6

2013

1
2
3
4

-3.8
-3.6
-2.3
-2.3

-7.0
-3.3
-2.1
-1.2

-19.3
-15.9
-14.5
-19.8

-19.6
-18.6
-14.9
-17.6

-0.6
-6.0
-5.8
-3.4

-4.2
-2.3
-4.0
-2.4

Source: The Bank of Korea
80 | Statistical Appendices

■ Editor-in-Chief
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Kim Yong-Jin (MOSF)
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Lee Seong-Pyo (KDI)
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Lee Ji-Youn (KDI)
■ Editors
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Joung Hye-Sun (MOSF)
Park Jin (KDI)

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ECONOMIC BULLETIN (Republic of Korea)

ECONOMIC
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03 The Green Book:
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47 Featured Issue

“Government Aims to Break Shackles of Low Growth”
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52 Policy Issues

Government to Remove Regulatory Obstacles to Boost Investment
Guidelines for FY 2014 Budget

59 Economic News Briefing

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65 Statistical Appendices
Vol.35 No.5 May 2013

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Bank of Korea Cuts Key Rate to 2.50%
Korea Grows 0.9% in Q1
National Assembly Approves Supplementary Budget
G20 Finance Ministers and Central Bank Governors’ Meeting

| Economic Information and Education Center

Vol.35 No.5

May 2013

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