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2009.10.19 8:21 PM

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Vol. 31 | No. 10

Republic of Korea

Economic Bulletin
The Green Book : Current Economic Trends
Overview

3

1. Global economy

4

2. Private consumption

8

3. Facility investment

12

4. Construction investment

14

5. Exports and imports

16

6. Mining and manufacturing production

18

7. Service sector activity

20

8. Employment

22

9. Financial markets

24

9.1
9.2
9.3
9.4

Stock market
Exchange rate
Bond market
Money supply & money market

10. Balance of payments

28

11. Prices and international commodity prices

30

11.1 Prices
11.2 International oil and commodity prices
12. Real estate market

34

12.1 Housing market
12.2 Land market
13. Composite indices of business cycle indicators

38

Policy Issues
Short-term and mid-term plans for fiscal management:
Budget plans for 2009-2013 and for 2010

40

Economic News Briefing

45

Statistical Appendices

51

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The Green Book
Current Economic Trends

Overview
The Korean economy slowed the pace of recovery in July and August as policy measures
which boosted the economy in the first half became less influential. However, in September
the economic indicators improved, in particular those related to exports.
In August, mining and manufacturing production rose 1.2 percent year-on-year, posting an
increase for the second consecutive month, while the month-on-month indicator fell 1.3
percent, affected by summer vacations. Service output also decreased 0.6 percent monthon-month, but on a year-on-year basis, it gained 1.1 percent, registering an increase for the
fifth month in a row.
Consumer goods sales fell 0.3 percent month-on-month in August, due to a drop in durable
goods sales including automobile sales, whereas year-on-year consumer goods sales gained
2.0 percent, rising for four straight months.
Facilities investment continued to drop year-on-year in August, tumbling 16.6 percent, while
the indicator gained 2.8 percent month-on-month, positively affected by machinery
investment. Construction completed slid 4.4 percent month-on-month, or 6.8 percent yearon-year, due to poor performance in the private sector.
Exports in September sharply slowed its year-on-year fall from 20.9 percent a month ago to
6.6 percent, as major exports such as semiconductors and automobiles continued to
improve, and the number of working days increased.
The total number of workers hired gained 3,000 in August, shifting to a rise from the
previous month’s loss of 76,000, thanks to government’s job creating measures, while
unemployment stayed at the previous month’s level of 3.7 percent.
Year-on-year consumer prices in September stayed at the similar level to the previous
month, rising 2.2 percent year-on-year, as stabilizing agriculture, livestock & marine product
prices offset an increase in petroleum prices.
In September volatility in domestic financial markets grew as capital inflows from abroad
increased, which affected stock prices, interest rates, and foreign exchange rates.
To sum up, although the domestic economy improves steadily, the private sector still shows
weak recovery and downside risks including a possible delay in global economic turnaround
exist.
The Korean government will keep pursuing expansionary fiscal policies, while making up for
the decreased second half fiscal capabilities by minimizing the 2009 budget transferred to
2010 or left unspent and expanding public firms’ investment, as uncertainties surrounding
the economic situation remain. On the other hand, measures to create jobs, support the
working class, and boost consumption and investment will be carried out as planned, along
with close monitoring of the economy to detect any signs of instability, in particular the
overheated real estate market.
Economic Bulletin

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1. Global economy
The global economy is showing signs of bottoming out of the recession as indicators
reflecting the real economy have been improving in developed countries such as the US,
Japan and eurozone. On October 1, the IMF revised up the outlook for the global economy to
a contraction of 1.1 percent for 2009 and an increase of 3.1 percent for 2010, a 0.2
percentage points upward adjustment to the outlook released in August, a 1.3 percent
shrinkage for 2009 and 2.9 percent growth for 2010.

US

The US economy saw the real GDP in the second quarter revised upward from an annualized
drop of 1.0 percent to 0.7 percent.
Following the positive turnaround in July for the first time in 10 months, August industrial
production rose 0.8 percent month-on-month, led by the auto industry.
Although existing home sales remained sluggish in August, declining 2.7 percent month-onmonth, new home sales expanded 0.7 percent and the home price stayed on an upward
trajectory since May 2009.
Job markets remained depressed, despite non-farm payrolls in August decelerating the
decline, as unemployment stayed at the 9.0 percent range, registering 9.7 percent and 9.8
percent in August and September, respectively.
The Federal Reserve, at the Federal Open Market Committee (FOMC) in September,
maintained the target range for the federal funds rate at 0.0 to 0.25 percent, and announced
that it would gradually slow the pace of purchasing US$1.25 trillion of mortgage backed
securities and US$200 billion of agency debt.
The Federal Reserve, at the FOMC meeting, evaluated that the US economy was picking up,
as conditions in financial markets improved and activity in the housing sector increased. The
Fed also predicted that household spending would be stabilizing, but remained constrained
by ongoing job losses and tight credit.
(Percentage change from previous period)
2008

Real GDP

1

- Personal consumption expenditure
- Corporate fixed investment
- Construction investment for housing

2009

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Jul

Aug

0.4

-0.7

1.5

-2.7

-5.4

-6.4

-0.7

-

-

-0.2

-0.6

0.1

-3.5

-3.1

0.6

-0.9

-

-

1.6

1.9

1.4

-6.1

-19.5

-39.2

-9.6

-

-

-22.9

-28.2

-15.8

-15.9

-23.2

-38.2

-23.3

-

-

Industrial production

-1.8

0.1

-1.2

-2.3

-3.4

-5.2

-2.9

1.0

0.8

Retail sales

-0.7

-0.5

0.4

-1.4

-6.6

-1.4

-0.4

-0.2

2.7

New home sales

-37.4

-14.8

-9.6

-9.8

-15.0

-13.5

8.6

6.5

0.7

New non-farm payroll employment
(q-o-q, thousand)2

-257

-113

-153

-208

-553

-691

-422

-276

-201

3.9

4.2

4.3

5.2

1.5

-0.2

-0.9

-2.1

-1.5

Consumer prices (y-o-y, %)
1. Annualized rate (%)
2. Monthly average

4

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1-1

US GDP (q-o-q, annualized rate)
Source: US Department of Commerce

1-2

US non-farm payroll employment (m-o-m change)
Source: US Department of Labor

1-3

US federal funds rate and consumer prices
Source: US Federal Reserve Board & Department of Labor

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China

Despite exports continuing to be sluggish, China’s economy grows steadily led by domestic
demand, thanks to brisk investment and consumption, which facilitate the production
indicators improving. In August, the consumer price slowed the decline, while home prices
rose for three months in a row.
Home prices (y-o-y, %)
-1.2 (Feb 2009)

-1.3 (Mar)

-1.1 (Apr)

-0.6 (May)

0.2 (Jun)

1.0 (Jul)

2.0 (Aug)

(Percentage change from same period in previous year)
2008

2007
Annual

Annual

Q1

Q2

2009
Q3

Q4

Q1

Q2

Jul

Aug

Real GDP

13.0

9.0

10.6

10.1

9.0

6.8

6.1

7.9

-

-

Fixed asset investment (accumulated)

25.8

26.1

25.9

26.8

27.6

26.1

28.6

33.6

32.9

33.0

Retail sales

16.8

21.6

20.6

22.2

23.2

20.4

15.0

15.0

15.2

15.4

Industrial production

18.5

12.9

16.4

15.9

13.0

6.4

5.1

9.0

10.8

12.3

Exports

25.7

17.2

21.4

22.4

22.9

4.1

-19.7

-23.5

-23.0

-23.4

Consumer prices

4.8

5.9

8.0

7.8

5.3

2.5

-0.6

-1.5

-1.8

-1.2

Producer prices

3.1

6.9

6.9

8.4

9.7

2.5

-4.6

-7.2

-8.2

-7.9

1. The rate accumulated from January to February

Japan

Although Japan’s economy saw the second quarter growth revised down from a 0.9 percent
expansion to 0.6 percent on a quarter-on-quarter basis, month-on-month industrial
production increased for the sixth consecutive month in August. Unemployment fell from the
preceding month’s 5.7 percent to 5.5 percent, while exports gradually slowed the decline.
2007

(Percentage change from previous period)
2009

2008

Annual

Annual

Real GDP

2.3

Industrial and mining production

2.8

Q1

Q2

Q3

-0.7

0.9

-0.7

-1.3

-3.4

-0.7

-0.8

-1.3

Q4

Q1

Q2

-3.4

-3.3

0.6

-

-

-12.0

-22.2

8.3

2.1

1.8

Jul

Aug

Retail sales (y-o-y, %)

-0.1

0.3

1.8

0.2

0.8

-1.5

-3.9

-2.8

-2.4

-1.8

Exports (y-o-y, %)

11.5

-3.5

5.9

1.8

3.2

-23.1

-46.9

-38.5

-36.5

-36.0

0.0

1.4

1.0

1.4

2.2

1.0

-0.1

-1.0

-2.3

-2.2

Consumer prices (y-o-y, %)

Eurozone

Indicators reflecting the real economy such as industrial production, retail sales and exports
are decelerating the fall in the eurozone economy. The Purchasing Manager’s Index (PMI)
landed at 51.1 in September, hitting the highest since May 2008, while the Business
Confidence Index rose for the fifth straight month, standing at 80.6.
(Percentage change from previous period)
2007

2008

2009

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Jul

Aug

Real GDP

2.7

0.8

0.8

-0.3

-0.3

-1.8

-2.5

-0.1

-

-

Industrial production

3.7

-1.8

1.8

-2.2

-2.8

-6.2

-7.5

-3.0

-0.3

-

Retail sales

1.5

-0.8

0.1

-0.6

-0.6

-0.7

-0.8

-0.3

-0.2

-0.2

11.1

3.7

6.8

8.5

5.7

-5.0

-21.3

-24.0

-19.3

-

2.1

3.3

3.3

3.6

3.8

2.3

1.0

0.2

-0.7

-0.2

Exports (y-o-y, %)
Consumer prices (y-o-y, %)

6

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1-4

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

1-5

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

1-6

Eurozone GDP growth and industrial production
Source: Eurostat

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2. Private consumption
Private consumption (preliminary GDP) in the second quarter posted a quarter-on-quarter
increase of 3.6 percent, and a year-on-year decline of 0.8 percent.
(Percentage change from same period in previous year)
2007

Private consumption

2

(Seasonally adjusted)3

20081

Annual

Q3

Q4

Annual

Q1

5.1

5.4

4.7

0.9

-

0.9

0.4

-

20091

Q2

Q3

Q4

Q1

Q2

4.0

2.3

1.4

-3.7

-4.4

-0.8

1.1

-0.2

0.0

-4.6

0.4

3.6

1. Preliminary
2. National accounts
3. Percentage change from previous period

Consumer goods sales in August fell month-on-month for the second month in a row, down
0.3 percent, but rose 2.0 percent year-on-year, posting an increase for four straight months.
On a month-on-month basis, durable goods sales and non-durable goods sales fell 0.7
percent and 1.5 percent, respectively, whereas semi-durable goods sales rose 3.3 percent.
On a year-on-year basis, sales of durable goods such as automobiles gained 5.5 percent,
while those of semi-durable goods and non-durable goods increased 0.2 percent and 1.3
percent, respectively.
(Percentage change from same period in previous year)
2008

Consumer goods sales
(Seasonally adjusted)

2

- Durable goods3
·Automobiles
- Semi-durable goods
- Non-durable goods

5

4

2009

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Jun

Jul1

Aug1

1.0

4.4

2.9

1.4

-4.2

-4.9

1.6

7.5

1.8

2.0

-

1.1

-1.3

-0.1

-3.5

0.4

5.0

2.0

-1.7

-0.3

1.9

9.5

8.7

0.0

-9.9

-13.6

4.0

21.9

0.1

5.5

-2.0

9.6

7.1

-4.9

-19.5

-21.3

18.4

60.0

9.9

19.4

-2.4

3.8

-2.1

0.6

-9.9

-0.9

0.3

-1.1

-2.2

0.2

0.7

1.9

0.3

1.2

-0.4

-1.4

1.0

3.5

4.9

1.3

1. Preliminary
2. Percentage change from previous period
3. Durable goods: Automobiles, electronic appliances, furniture, telecommunications devices, etc.
4. Semi-durable goods: Clothing, footwear, etc.
5. Non-durable good: Food, medicine, cosmetics, fuel, tobaccos, etc.

Sales at department stores continued to improve, rising 7.1 percent year-on-year, while sales
at large discounters decelerated the fall at 0.4 percent.
(Percentage change from same period in previous year)
2008

2009

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Jun

Jul1

Aug1

- Department stores

0.5

4.3

3.7

0.2

-5.0

1.4

2.8

2.7

3.3

7.1

- Large discounters

2.2

7.6

3.1

-0.2

-1.2

-5.0

-2.9

-4.8

-5.3

-0.4

-1.7

2.0

0.7

-1.0

-8.1

-6.9

2.6

12.2

3.5

1.3

- Specialized retailers2

1. Preliminary
2. Specialized retailers are defined as stores carrying a few (1 to 3) specialized items.

8

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2-1

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

2-2

Consumer goods sales
Source: Korea National Statistical Office (industrial activity trend)

2-3

Consumer goods sales by type
Source: Korea National Statistical Office (industrial activity trend)

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In September, month-on-month consumer goods sales are expected to turn around in a
positive direction, given the improvements in advanced estimates and consumer sentiment,
with the year-on-year index expected to improve further.
Domestic credit card spending rose 14.7 percent, registering a double-digit growth for two
months in a row since August.
Sales at department stores gained 8.5 percent, posting an increase for seven consecutive
months. However, sales at large discounters continued to fall.
Domestic sales of Korean cars soared 76 percent year-on-year, thanks to release of new
cars, tax breaks and a low base effect, while gasoline sales fell slightly.
Value of credit card use (y-o-y, %)
7.0 (Apr 2009)

8.7 (May)

12.4 (Jun)

7.3 (Jul)

10.9 (Aug)

14.7 (Sep)

Department store sales (y-o-y, %)
2.8 (Apr 2009)

5.4 (May)

3.6 (Jun)

4.0 (Jul)

7.7 (Aug)

8.5 (Sep)

Discount store sales (y-o-y, %)
0.1 (Apr 2009)

1.6 (May)

-1.4 (Jun)

-6.0 (Jul)

-1.5 (Aug)

-5.9 (Sep)

Domestic sales of Korean automobiles (y-o-y, %)
-14.9 (Apr 2009)

15.3 (May)

46.0 (Jun)

10.8 (Jul)

13.0 (Aug)

76.0 (Sep)

Domestic sales of gasoline (y-o-y, %)
0.1 (Apr 2009)

9.7 (May)

11.1 (Jun)

15.8 (Jul)

3.9 (Aug)

-0.5 (Sep)

Source: Ministry of Knowledge Economy
The Credit Finance Association
Korea Automobile Manufacturers Association
Korea National Oil Corporation
Ministry of Strategy and Finance (for September data)

Improving employment thanks to the government’s job creating measures, decelerating
price increases and stabilizing financial markets are all expected to positively affect
consumer spending.
Employment (y-o-y, thousand)
-188 (Apr 2009)

-219 (May)

4 (Jun)

-76 (Jul)

3 (Aug)

Consumer prices (y-o-y, %)
3.6 (Apr 2009)

2.7 (May)

2.0 (Jun)

1.6 (Jul)

2.2 (Aug)

2.2 (Sep)

The won/dollar exchange rate (monthly average)
1,342 (Apr 2009)

1,259 (May)

1,261 (Jun)

1,264 (Jul)

1,238 (Aug)

1,219 (Sep)

1,395 (Jun)

1,460 (Jul)

1,579 (Aug)

1,659 (Sep)

KOSPI (monthly average)
1,322 (Apr 2009)

1,401(May)

Consumer Sentiment Index (CSI)
84 (Mar 2009)

10

October 2009

98 (Apr)

105 (May)

106 (June)

109 (Jul)

114 (Aug)

114 (Sep)

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2-4

Department store and discount store sales (current value)
Source: Ministry of Knowledge Economy (monthly retail sales)

2-5

Domestic automobile sales
Source: Korea Automobile Manufacturers Association (monthly automobile industry trend)

2-6

Consumer sentiment index
Source: The Bank of Korea

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3. Facility investment
Facility investment (preliminary GDP) in the second quarter posted a year-on-year loss of 15.9
percent and a quarter-on-quarter gain of 10.1 percent.
(Percentage change from same period in previous year)
2007

20081

20091

Annual

Q4

Annual

Q1

Q2

Q3

Q4

Q1

Q2

9.3

8.0

-2.0

1.5

1.1

4.3

-14.0

-23.5

-15.9

-

3.8

-

-0.4

0.4

0.2

-14.2

-11.2

10.1

- Machinery

9.2

8.5

-2.7

-1.2

-0.1

6.5

-15.3

-24.0

-19.6

- Transportation equipment

9.6

5.8

0.4

12.2

5.1

-3.6

-9.9

-21.8

-3.2

Facility investment2
(Seasonally adjusted)3

1. Preliminary
2. National accounts
3. Percentage change from previous period

Facility investment in August slowed the decline year-on-year, as investment in machinery
fell at a slower rate and that in transportation equipment improved.
Month-on-month, facility investment rose 2.8 percent, despite a 4.2 percent fall in
transportation equipment investment, thanks to a 5.4 percent increase in machinery
investment.
(Percentage change from same period in previous year)
2007

Facility investment (estimated)
(Seasonally adjusted)

2

- Machinery

2008

2009

Annual

Annual

Q4

Q1

Q2

Jun

Jul1

Aug1

8.2

-4.3

-13.4

-17.7

-13.4

-4.9

-18.8

-16.6

-

-

-9.3

-11.6

6.6

10.4

-12.3

2.8

7.5

-5.7

-14.5

-21.9

-19.5

-13.5

-24.4

-22.0

11.3

1.5

-9.0

0.4

11.3

31.7

2.1

7.2

20.6

-5.5

-47.3

-33.8

-14.1

2.1

7.3

-16.8

- Public

-11.4

4.9

-3.5

150.5

30.9

45.1

498.8

-15.7

- Private

24.5

-6.2

-53.9

-42.9

-18.5

-6.2

-32.9

-16.9

21.7

18.9

6.3

-28.0

-27.7

-27.7

-26.6

-25.7

1.7

-2.2

-15.6

-18.9

-8.5

-3.6

-1.7

-1.6

- Transportation equipment
Domestic machinery orders

Machinery imports
Facility investment
adjustment pressure3

1. Preliminary
2. Percentage change from previous period
3. Production growth rate minus production capacity growth rate in the manufacturing sector (%p)

Facility investment in September is projected to increase month-on-month, despite a fall in
domestic machinery orders, given improvements in machinery imports and advanced
estimates of car sales.

2009

Business survey indices (base=100)
Jun

Jul

Aug

Sep

Oct

Manufacturing facility investment results

93

95

96

99

-

Manufacturing facility investment projections

91

94

97

95

100

Source: The Bank of Korea

12

October 2009

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3-1

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

3-2

Machinery orders and estimated facility investment (3-month average)
Source: Korea National Statistical Office (industrial activity trend)

3-3

Machinery imports
Source: Korea International Trade Association (KITA)

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4. Construction investment
Construction investment (preliminary GDP) in the second quarter rose 3.7 percent year-onyear, or 1.7 percent quarter-on-quarter.
(Percentage change from same period in previous year)
2007

20091

Annual

Q4

Annual

Q1

Q2

Q3

Q4

Q1

Q2

1.4

0.4

-2.1

-1.9

-0.3

0.2

-5.6

1.6

3.7

-

2.9

-

-2.5

-0.3

0.1

-3.0

5.2

1.7

-0.0

0.7

-4.3

-1.2

-0.1

-0.1

-14.3

-11.1

-3.5

3.8

-0.1

1.3

-3.2

-0.7

0.7

5.7

24.9

14.3

Construction investment2
(Seasonally adjusted)

20081

3

- Building construction
- Civil engineering works
1. Preliminary
2. National accounts
3. Percentage change from previous period

In August, construction completed (current value) slid for the second straight month, as the
indicator in the public sector decelerated the rise and that in the private sector accelerated
the fall. By type of works, construction completed in building constructions dropped 10.5
percent year-on-year, and that in the civil engineering works fell 0.1 percent.
(Percentage change from same period in previous year)
2007

2008

2009

Annual

Annual

Q4

Q1

Construction completed

6.6

4.7

-2.2

4.5

(Seasonally adjusted)

-

-

-6.2

2

Q2

Jun

Jul1

Aug1

7.0

15.2

-2.3

-6.8

7.7

2.2

13.2

-12.5

-4.4

- Public

8.4

6.5

8.7

24.4

32.1

44.1

17.5

14.3

- Private

4.6

1.7

-9.1

-5.0

-5.2

-0.5

-11.3

-17.0

1. Preliminary
2. Percentage change from previous period

Construction investment in September is expected to increase from the preceding month,
despite a decline in civil engineering work orders and flagging investment confidence,
considering increases in building construction orders and SOC budget spending.
Business survey index for construction (base=100)
80 (Apr 2009)

86.6 (May)

92.2 (Jun)

99.3 (Jul)

87.2 (Aug)

Source: The Construction and Economy Research Institute of Korea

(Percentage change from same period in previous year)
2007

2008

2009

Annual

Annual

Q4

Q1

Q2

Jun

Jul1

Construction orders

23.6

-9.0

-6.5

-16.5

-2.0

17.9

2.9

-29.5

- Building construction

18.5

-17.4

-25.5

-41.6

-48.6

-35.8

-5.6

11.4

- Civil engineering works

40.3

13.9

50.7

58.3

133.6

146.7

19.2

-68.6

- Building permit area

13.3

-20.1

-41.9

-31.6

-32.7

-2.4

-29.1

-

1. Preliminary

14

October 2009

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4-1

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

4-2

Construction completed and housing construction
Source: Korea National Statistical Office (construction completed)
Kookmin Bank (housing construction)

4-3

Leading indicators of construction investment
Source: Korea National Statistical Office (construction orders)
Ministry of Land, Transport and Maritime Affairs (building construction permit area)

Economic Bulletin

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5. Exports and imports
Exports in September dropped 6.6 percent year-on-year to US$34.97 billion, improving
greatly from the previous month’s fall of 20.9 percent.
The improvement was attributed to increases in major exports and working days (up 1.5
days). In addition, factors negatively affecting exports in the previous month were settled,
including a decline in vessel exports, summer holidays and a labor union strike in the auto
industry.
While most exports declined at a slower rate, semiconductors (up 22.8%), automobiles (up
20.5%) and liquid crystal devices (up 29.4%) posted a double-digit growth.
By regional category, exports to China (up 4.0%) and the Middle East (up 1.3%) shifted to an
increase, while exports to other regions slowed the fall.
(US$ billion)
2008

2009

Annual

Sep

Jan-Sep

Q1

Q2

Jun

Jul

Aug

Sep

Jan-Sep

422.01

37.43

328.94

74.41

91.00

32.63

31.99

28.97

34.97

261.34

(y-o-y, %)

13.6

27.6

22.6

-25.2

-20.5

-12.4

-21.9

-20.9

-6.6

-20.6

Average daily exports

1.53

1.66

1.61

1.10

1.31

1.39

1.28

1.26

1.46

1.25

Exports

435.27

39.53

343.75

71.36

73.43

25.36

27.62

27.26

29.60

229.27

(y-o-y, %)

22.0

45.4

34.1

-32.7

-36.0

-32.9

-35.7

-32.2

-25.1

-33.3

Average daily imports

1.58

1.76

1.68

1.05

1.05

1.08

1.10

1.19

1.23

1.10

-13.27

-2.1

-14.81

3.06

17.57

7.20

4.37

1.70

5.37

32.07

Imports

Trade balance

Imports in September fell 25.1 percent year-on-year to US$29.60 billion. Compared with the
first half, imports dropped at a slower pace, led by capital goods and consumer goods.
Raw materials (y-o-y, %)
-34.9 (Q1 2009)

-43.6 (Q2)

-44.8 (Jul)

-40.7 (Aug)

-40.6 (Sep 1-20)

-14.6 (Jul)

-15.0 (Aug)

-13.5 (Sep 1-20)

-29.3 (Jul)

-23.3 (Aug)

4.0 (Sep 1-20)

Capital goods (y-o-y, %)
-29.1 (Q1 2009)

-23.6 (Q2)

Consumer goods (y-o-y, %)
-29.5 (Q1 2009)

-24.4 (Q2)

The trade balance in September posted a surplus of US$5.37 billion, staying in the black for
eight straight months since February 2009.

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5-1

Exports (customs clearance basis)
Source: Korea Customs Service & Ministry of Knowledge Economy (export and import trend)

5-2

Imports (customs clearance basis)
Source: Korea Customs Service & Ministry of Knowledge Economy (export and import trend)

5-3

Trade balance
Source: Korea Customs Service & Ministry of Knowledge Economy (export and import trend)

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6. Mining and manufacturing production
Mining and manufacturing production in August fell 1.3 percent month-on-month, affected
by summer vacations, while on a year-on-year basis, the index gained 1.2 percent, staying in
positive territory for two straight months.
By business category, semiconductors and parts (up 22.7%), and transportation devices (up
11.6%) continued to improve year-on-year, while machinery (down 16.0%) and automobiles
(down 2.8%) declined.
Shipments decreased at a slower pace year-on-year from 1.2 percent a month ago to 0.9
percent, while the level of inventory fell more gently from the previous month’s 14.7 percent
to 14.1 percent.
By business category, the shipments of semiconductors and parts (up 12.1%) and
transportation devices (up 8.7%) posted a year-on-year increase. The inventories of
semiconductors and parts (down 35.0%), computers (down 31.5%) and machineries (down
15.7%) were down.
Judging from the shipment/inventory cycle and inventory to shipment ratio, the economy
continued to move towards a recovery phase with inventory adjustment nearing an end.
(Percentage change from same period in previous year)
2008
Aug

Q1

Q2

Jun

Jul1

Aug1

-

0.1

-1.3

-2.7

11.4

5.7

2.1

-1.3

(y-o-y)

3.0

8.9

1.8

-15.5

-6.2

-1.1

0.9

1.2

- Manufacturing

3.0

9.3

1.9

-16.4

-6.6

-1.4

1.0

1.2

·Heavy chemical industry

4.1

11.6

3.5

-17.0

-6.2

-0.6

2.4

2.4

-2.2

-1.2

-5.1

-13.5

-8.8

-5.7

-6.4

-5.2

2.4

6.6

1.8

-14.7

-5.8

-0.4

-1.2

-0.9

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

Mining and
manufacturing
activity2

2009

Q2

Annual

·Light industry
Shipment
- Domestic demand

-0.7

1.7

-1.4

-16.3

-6.6

-0.3

-1.9

-0.6

- Exports

7.1

14.3

6.3

-12.4

-4.7

-0.6

-0.4

-1.2

Inventory

7.3

16.2

14.4

-5.8

-16.7

-16.7

-14.7

-14.1

77.2

80.4

78.4

65.8

73.7

76.6

78.8

77.6

5.2

6.5

5.3

2.5

1.9

2.2

2.7

2.8

3

Manufacturing Average operation ratio (%)
activity
Production capacity
1. Preliminary
2. Including mining, manufacturing, electricity and gas industry
3. End-period

In September, mining and manufacturing production is likely to improve from the previous
month, given recovering exports and increased working days as Chuseok holidays fell on
October this year.

18

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6-1

Industrial production
Source: Korea National Statistical Office (industrial activity trend)

6-2

Average manufacturing operation ratio
Source: Korea National Statistical Office (industrial activity trend)

6-3

Inventory
Source: Korea National Statistical Office (industrial activity trend)

Economic Bulletin

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7. Service sector activity
Service activity in August decreased 0.6 percent from the previous month as demand
remained sluggish during the summer vacation period. From a year earlier, however, service
output increased by 1.1 percent.
By business category, financial & insurance services (up 10.9%), real estate & renting
services (up 10.6%) and healthcare & social welfare services (up 9.5%) led the year-on-year
increase in the service sector.
Meanwhile, entertainment, cultural & sports services (down 6.5%), educational services
(down 6.3%) and hotels & restaurants (down 5.4%) declined from a year earlier.
(Percentage change from same period in previous year)
Weight

2008

2009

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Jun

Jul1

Aug1

-0.4

1.6

2.8

0.9

1.1

Service activity index

100

3.4

6.7

4.8

3.2

-0.4

- Wholesale & retail

22.0

1.4

4.0

3.1

3.6

-4.6

-4.0

-2.2

1.4

-1.6

-1.0

- Transportation services

9.0

4.3

8.1

8.2

4.3

-3.2

-10.8

-9.5

-7.9

-7.7

-5.2

- Hotels & restaurants

7.8

0.7

3.6

0.6

1.7

-3.0

-2.4

-0.3

0.4

-1.1

-5.4

- Information & communication services

8.4

3.5

6.0

5.5

3.4

-0.2

-1.9

0.9

1.5

0.5

0.6

- Financial & insurance services

15.3

9.7

16.1

9.8

9.6

4.5

6.6

9.8

7.4

6.8

10.9

- Real estate & renting

6.3

-2.1

5.7

2.7

-8.4

-7.5

-3.1

1.5

8.8

7.7

10.6

- Professional, scientific & technical services

4.8

2.0

4.2

1.5

1.8

0.9

-1.9

3.2

8.8

0.4

-1.4

- Business services

2.9

4.6

8.0

7.7

3.2

0.1

-4.8

-6.6

-6.0

-1.8

-0.3

- Educational services

10.8

1.8

3.4

1.9

-0.5

2.3

3.7

6.9

2.8

-2.4

-6.3

- Healthcare & social welfare services

6.0

6.3

6.1

6.8

6.1

6.5

8.6

8.1

9.0

8.3

9.5

- Entertainment, cultural & sports services

2.9

2.2

2.5

0.4

1.7

4.3

1.5

0.9

-1.2

3.3

-6.5

- Membership organizations

3.8

0.1

1.9

1.0

-1.4

-1.0

-3.4

-5.0

-0.8

-2.8

-4.8

- Sewerage & waste management

0.4

5.8

8.9

6.9

3.9

4.0

0.5

8.8

20.5

5.3

1.9

1. Preliminary

Service activity in September is expected to stay on an upward track. Financial & insurance
services and healthcare & social welfare services are continuing a long-term increase while
whole & retail sales and transportation services, which had remained weak, stayed on a
recovery trajectory. Robust car sales and credit card spending as well as the recovery in the
job market are also boosting the service sector.
Employment (y-o-y, thousand)
-219 (May 2009)

20

October 2009

4 (Jun)

-76 (Jul)

3 (Aug)

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& re

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ns

&
Bus
bus iness f
ines acil
s su ity m
ppo ana
rt se gem
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es
&
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ona
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es
Hea
serv lthcare
ices & s
ocia
l we
lfar
e
Ente
serv rtainm
ices ent
, cu
ltur
al &
spo
Me
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m
othe bersh
r pe ip o
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al s izati
ervi ons
Sew
ces , re
pair
reco erage,
&
very was
& re te m
med ana
iatio gem
n ac ent,
tivit mate
ies
rials

es

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insu

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stau

tion

& re

ion

& re

ntin
g
Pro
tech fession
nica al, s
l se cien
rvic tifi
c
es

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Hot

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Tran

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7-3

ex

7-2

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Tota

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Service industry

Source: Korea National Statistical Office (service industry activity trend)

Wholesale and retail sales

Source: Korea National Statistical Office (service industry activity trend)

August 2009 service industry by business

Source: Korea National Statistical Office (service industry activity trend)

Economic Bulletin

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8. Employment
The number of workers on payroll in August climbed by 3,000 from a year earlier, on the
back of the government’s policy efforts to create jobs.
Employment in the manufacturing sector stayed on a downward track declining by 138,000,
mainly due to sluggish domestic demand and falling exports. Hiring in the construction
sector continued to fall with a 105,000 decrease as increased orders of civil engineering
works in the public sector were offset by weak construction in the private sector.
Employment in the service sector soared by 282,000 driven by the government’s job
creation policies.
(Change from same period in previous year, thousand)
2008

2009

Annual

Aug

Q1

Q2

Q3

Q4

Q1

Q2

Jun

Jul

Aug

Employment growth

145

159

209

173

141

54

-146

-134

4

-76

3

- Manufacturing

-52

-47

-18

-34

-52

-103

-163

-151

-157

-173

-138

- Construction

-37

-35

-22

-46

-40

-41

-43

-113

-88

-127

-105

- Services

263

270

307

300

262

187

47

155

271

250

282

- Agriculture, forestry & fishery

-37

-38

-63

-54

-38

8

14

-25

-25

-22

-34

By status of workers, non-wage workers including self-employed workers plunged by
373,000 from a year earlier. Meanwhile, wage workers rose by 375,000 led by an increase of
365,000 in regular workers and 147,000 in temporary workers, although the number of daily
workers shrank by 137,000.
(Change from same period in previous year, thousand)
2008

2009
Jun

Jul

Aug

Q4

Q1

Q2

141

54

-146

-134

4

-76

3

208

137

73

175

351

226

375

448

347

316

318

313

301

329

365

-96

-83

-94

-136

-5

149

92

147

Annual

Aug

Q1

Q2

Q3

Employment growth

145

159

209

173

- Wage workers

236

221

312

289

·Regular workers

386

344

435

·Temporary workers

-93

-74

-98

·Daily workers

-57

-48

-25

-63

-56

-85

-108

-133

-99

-195

-137

- Non-wage workers

-92

-62

-102

-115

-66

-83

-220

-309

-347

-302

-373

·Self-employed workers

-79

-89

-79

-67

-76

-95

-197

-286

-287

-229

-276

The employment rate stood at 58.8 percent, down 0.8 percentage points compared to the
same month of the previous year. The unemployment rate rose 0.6 percentage points yearon-year to 3.7 percent, while that of youths aged 15 to 29 was up 1.1 percentage points from
a year earlier to 8.2 percent.
(Change from same period in previous year, thousand)
2008

Unemployment rate (%)
Employment rate (%)

22

October 2009

2009

Annual

Aug

Q1

Q2

Q3

Q4

Q1

Q2

Jun

Jul

Aug

3.2

3.1

3.4

3.1

3.1

3.1

3.8

3.8

3.9

3.7

3.7

59.5

59.6

58.5

60.3

59.9

59.4

57.4

59.3

59.8

59.4

58.8

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8-1

Number of employed and employment growth
Source: Korea National Statistical Office (employment trend)

8-2

Share of employed by industry
Source: Korea National Statistical Office (employment trend)

8-3

Unemployment rate and number of unemployed
Source: Korea National Statistical Office (employment trend)

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9. Financial market
9.1 Stock market
The Korean stock market in September continued its bullish run as expectations over the
economic recovery were buoyed by global stock market rallies and robust economic
indicators.
The KOSPI set a new record high this year at 1,718.88 points on September 22, as the
Financial Times Stock Exchange (FTSE) upgraded the status of the Korean stock market to
“developed” from “advanced emerging”, and domestic blue chip companies were expected
to improve their performance. The increase, thereafter, was subdued as institutional
investors including investment trust companies sold stocks triggered by increased fund
redemption by individual investors.
Foreign investors continued their massive net-buying of Korean shares since July with the
amount during the July-August period posting 14.3 trillion won, which accounts for 57.6
percent of net purchasing by foreign investors so far this year.
(End-period, point, trillion won)
KOSPI

Stock price index

KOSDAQ

2008

Sep 2009

Change1

2008

Sep 2009

Change1

1,124.4

1,673.1

548.7 (+48.8%)

332.0

505.9

173.9 (+52.4%)

576.9

872.4

295.5 (+51.2%)

46.1

79.2

33.5 (+71.8%)

5.1

7.3

2.2 (+43.1%)

1.2

2.4

1.2 (+100.0%)

Market capitalization
Average daily trade value
1. Change from the end of the previous year

9.2 Exchange rate
The won/dollar exchange rate in September fell below 1,200 won dragged down by the weak
dollar and foreign investors’ net-buying of Korean shares to wrap up the month at 1,178.1
won. The closing price was down 70.8 won from 1,248.9 won in the previous month.
During the month, the euro’s value against the dollar rose 2.4 percent from US$1.4282 at the
end of the previous month to close the month at US$1.4630.
The won/yen exchange rate also fell to the lower 1,300 won range with the appreciation of
won.
(End-period)
2006

2007

2008

2009

Dec

Dec

Dec

Aug

Sep

Change1

Won/Dollar

929.8

936.1

1,259.5

1,248.9

1,178.1

6.9

Won/100Yen

783.4

828.6

1,396.8

1,345.8

1,315.6

6.2

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.

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October 2009

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9-1

Stock prices

9-2

Foreign exchange rate (month-end)

9-3

Recent foreign exchange rate

Economic Bulletin

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9.3 Bond market
Bond yields continued to rise in September. The pace of increase, however, moderated.
Although the Bank of Korea decided to hold its key interest rate steady at 2.0 percent on
September 10, bond yields showed a short-term surge as the central bank signaled a
possible rate hike. The jump in yields, however, was subdued with foreign investors’ netselling of KTB (Korea Treasury Bond) futures.
On September 10, yields on Treasury bonds with a 3-year maturity were up 21 basis points to
4.50 percent from 4.29 percent a day earlier.
(End-period)

Call rate (1 day)

2005

2006

2007

2008

2009

Dec

Dec

Dec

Dec

Jul

Aug

Sep

Change1

3.76

4.60

5.02

3.02

1.95

1.99

2.00

-102

CD (91 days)

4.09

4.86

5.82

3.93

2.41

2.57

2.75

-118

Treasury bonds (3 yrs)

5.08

4.92

5.74

3.41

4.26

4.38

4.39

98

Corporate bonds (3 yrs)

5.52

5.29

6.77

7.72

5.68

5.61

5.53

-219

Treasury bonds (5 yrs)

5.36

5.00

5.78

3.77

4.76

4.91

4.81

104

1. Basis point changes in August 2009 from end December 2008

9.4 Money supply & money market
The M2 (monthly average) in July expanded 9.7 percent from a year earlier. Excluding cash
management accounts (CMAs), which was included in M2 since July 2009, the year-on-year
M2 growth remained similar to the previous month, standing at 9.6 percent.
(Percentage change from same period in previous year, average)
2007

2009

2008

Annual
8.1

Annual

Jul

Jan

Feb

Mar

Apr

May

Jun

Jul

Jul1

4.1

4.7

9.0

11.1

15.2

17.4

16.9

18.5

18.5

362.1

M2

11.2

14.3

14.8

12.0

11.4

11.1

10.6

9.9

9.6

9.7

1,501.9

Lf3

10.2

11.9

12.1

9.2

8.8

8.4

7.7

7.3

7.0

Mid 7

1,925.44

M1+

2

1. Balance at end July 2009, trillion won
2. M1 excluding corporate MMFs and individual MMFs while including CMAs
3. Liquidity aggregates of financial institutions (mostly identical with M3)
4. Balance at end June 2009, trillion won

In August, bank deposits turned to a surge due to money inflow from redemption of funds
and a withdrawal of money market funds (MMFs) by investors. Banks’ hike of deposit rates
also contributed to a sharp increase in bank deposits.
Asset management company (AMC) deposits declined at a slower pace as money inflow into
MMFs fell by 6.5 trillion won and individual investors redeemed more funds.
(Monthly change, end-period, trillion won)
2007

2008

2009

Annual

Aug

Annual

Aug

May

Jun

Jul

Aug

Aug1

Bank deposits

59.6

5.0

104.3

18.7

10.4

7.7

-0.6

13.5

1,004.6

AMC deposits

61.8

4.0

63.0

4.0

-2.2

-11.5

-2.2

-7.8

364.2

1. Balance at end Aug 2009, trillion won

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October 2009

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9-4

Interest rates
Source: The Bank of Korea

9-5

Total money supply
Source: The Bank of Korea

9-6

Share of deposits by financial sector (M3 as of year-end)
Source: The Bank of Korea
* Retail finance: Mutual savings banks & National Credit Union Federation of Korea, Others: Investment banks, post office savings, etc.

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10. Balance of payments
Korea’s current account recorded a US$2.04 billion surplus in August.
The goods account surplus shrank to US$3.46 billion from US$6.13 billion a month earlier
due to decreased exports of vessels, summer holidays and a setback in car exports following
a labor union strike.
The service account posted a deficit of US$1.79 billion, a similar level to the previous
month’s US$1.89 billion, as the travel account deficit swelled during summer vacations.
The income account surplus expanded to US$590 million after posting US$480 million in the
previous month, due to a decrease in interest and dividend payment.
The current transfer account deficit contracted to US$220 million from the previous month’s
US$360 million, due to a decrease in contributions to international organizations.
(US$ billion)
2008

2009

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Jul

Aug

Jan-Aug

Current account

-6.41

-5.21

-0.13

-8.58

7.52

8.58

13.17

4.36

2.04

28.15

- Goods balance

5.99

-1.22

5.72

-3.48

4.97

8.35

17.63

6.13

3.46

35.56

-16.73

-5.07

-4.27

-5.69

-1.70

-1.88

-4.02

-1.89

-1.79

-9.56

- Service balance
- Income balance

5.11

1.69

-0.65

1.36

2.71

0.83

0.18

0.48

0.59

2.08

- Current transfers

-0.77

-0.61

-0.94

-0.77

1.55

1.28

-0.61

-0.36

-0.22

0.10

The capital and financial account in August posted a net inflow of US$5.06 billion.
Capital & financial account balance (US$ billion)
-0.55 (Q1 2009)

8.89 (Q2)

-0.29 (Jun)

2.38 (Jul)

5.06 (Aug)

The direct investment account contracted the net outflow to register US$110 million from the
previous month’s net outflow of US$1.14 billion due to a decrease in overseas investment by
locals.
The portfolio investment account shrank the net outflow to record US$3.96 billion from
US$7.94 billion a month earlier as foreigners’ investments in the Korean bond market
decreased.
The financial derivatives account deficit expanded from the previous month’s US$270
million to post US$720 million, as payments related to overseas financial derivative
transactions increased.
The other investment account shifted to a net inflow of US$1.88 billion from the previous
month’s net outflow of US$4.38 billion, affected by the International Monetary Fund (IMF)’s
allocation of Special Drawing Rights (SDR) equivalent to US$3.38 billion.
The current account is likely to record a surplus of around US$5 billion in September as the
trade balance posted a surplus of US$5.4 billion.

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10-1 Current account balance
Source: The Bank of Korea (balance of payments trend)

10-2 Travel balance
Source: The Bank of Korea (balance of payments trend)

10-3 Capital & financial account balance
Source: The Bank of Korea (balance of payments trend)

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11. Prices and international commodity prices
11.1 Prices
Consumer prices in September rose by 0.1 percent month-on-month and 2.2% percent yearon-year.
The overall price index was up 0.1 percent month-on-month as oil product prices and
personal service charges showed strength while overall prices for agricultural, livestock and
fishery products went down. Prices of agricultural, livestock and fishery products declined
0.4 percent from the previous month due to favorable supply conditions such as good
weather conditions and the won’s appreciation.
Prices of agricultural, livestock & fishery products in September 2009 (m-o-m, %)
Rice (-1.2), radish (-4.5), Chinese cabbage (-0.1), grape (-20.3), Korean beef (5.5), pork (-1.9), chicken (-9.0),
mackerel (-8.4), Alaska pollock (4.3), yellow corvina (1.6)

Prices of oil products increased 0.7 percent from a month earlier as the increase of international oil
prices in August was reflected with the time lag despite the freeze on LPG price in September.
Prices of oil products in September 2009 (m-o-m, %)
Gasoline (0.8), diesel (0.7), kerosene (0.4), LPG for automobiles (0.0), LPG for kitchen use (0.1)

Public utility charges remained steady without any significant price increase factors.
Personal service charges held steady as some services which applied a high season surcharge
during the summer holidays returned to their normal levels, while education fees such as university
tuition fees and meal service fees have been raised.

Consumer price inflation in major sectors

Month-on-Month (%)
Contribution (%p)
Year-on-Year (%)
Contribution (%p)

Total

Agricultural,
livestock & fishery
products

Industrial
products

Oil
products

Housing
rents

Public
utility

Personal
services

0.1

-0.4

0.3

0.7

0.1

0.0

0.0

0.09

-0.03

0.08

0.04

0.01

0.00

0.00

2.2

4.4

1.8

-9.1

1.3

2.4

2.1

2.16

0.37

0.58

-0.59

0.12

0.38

0.74

Core consumer prices, which exclude the prices of oil and agricultural products, rose by 2.7 percent
year-on-year. Consumer prices for basic necessities, a barometer of perceived consumer prices, were
up 1.7 percent compared to the same month of the previous year.

Consumer price inflation
2008

2009

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Month-on-Month (%)

0.1

-0.1

-0.3

0.0

0.1

0.7

0.7

0.3

0.0

-0.1

0.4

0.4

0.1

Year-on-Year (%)

5.1

4.8

4.5

4.1

3.7

4.1

3.9

3.6

2.7

2.0

1.6

2.2

2.2

Core consumer prices (y-o-y)

5.1

5.2

5.3

5.6

5.2

5.2

4.5

4.2

3.9

3.5

3.2

3.1

2.7

(m-o-m)

0.5

0.2

0.3

0.5

0.2

0.4

0.4

0.2

0.2

0.1

0.2

0.1

0.1

Consumer prices for basic
necessities (y-o-y)

5.5

4.8

4.0

3.0

2.8

3.3

3.1

3.0

1.8

0.5

0.4

1.3

1.7

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11-1 Prices
Source: Korea National Statistical Office (consumer prices, core inflation) & The Bank of Korea (producer prices)

11-2 Consumer price inflation
Source: Korea National Statistical Office (consumer price trend)

11-3 Contribution to consumer price inflation
Source: Korea National Statistical Office (consumer price trend)

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11.2. International oil and commodity prices
Despite the weak dollar, international oil prices in September fell due to increased oil
reserves affected by flagging demand.
(US$/barrel, period average)
2006

2007

Annual

Annual

Annual

2008
Dec

Apr

May

Jun

2009
Jul

Aug

Sep

Dubai crude

61.6

68.4

94.3

40.5

50.0

57.9

69.4

65.0

71.4

67.7

Brent crude

65.1

72.8

97.5

40.4

50.4

57.5

68.6

64.6

72.9

67.5

WTI crude

66.0

72.3

99.9

41.6

49.8

59.1

69.7

64.2

71.1

69.4

Record high oil prices (spot prices, US$/barrel)
Dubai crude: 141 (Jul 4, 2008), Brent crude: 145 (Jul 3), WTI crude: 146 (Jul 14)

Despite the decrease in international prices of oil products as well as the won’s appreciation,
domestic prices of oil products rose as increased international oil prices were reflected with
the time lag.
(Won/liter, period average)
2006

2007

Annual

Annual

Annual

2008
Dec

Apr

May

Jun

2009
Jul

Aug

Sep

Gasoline prices

1,492

1,526

1,692

1,329

1,551

1,543

1,607

1,639

1,670

1,681

Diesel prices

1,228

1,273

1,614

1,303

1,330

1,320

1,389

1,428

1,447

1,453

Source: Korea National Oil Corporation

Prices of overall non-ferrous metals went down month-on-month due to profit-taking after a
short-term surge and increased inventory. Lead prices, however, soared as production
facilities were closed due to lead poisoning cases, which occurred in China.
Grain prices moved downward as the harvest season begins in the US and concerns over
damages caused by frost eased. In particular, prices of wheat fell to a record-low level since
October 2006.
Prices of non-ferrous metals and grain in September 2009 (m-o-m, %)
Corn (-2.7), wheat (-7.5), soybean (-7.2), bronze (0.6), aluminum (-5.0), nickel (-10.9), zinc (3.1), lead (16.2), tin
(-0.6)

Reuters index*

(Period average)

2006

2007

2008

Annual

Annual

Annual

Dec

Apr

May

Jun

Jul

Aug

Sep

2,019

2,400

2,536

1,767

1,942

2,099

2,117

2,082

2,159

2,049

* A weighted average index of 17 major commodities

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11-4 International oil prices
Source: Korea National Oil Corporation

11-5 International oil prices (Dubai crude) and import prices
Source: Korea National Oil Corporation & Korea Customs Service

11-6 International commodity prices
Source: Bloomberg (CRB) & The Bank of Korea (Reuters index)
* CRB demonstrates futures price index of 21 commodities listed on the US Commodity Transaction Market, including beans and other crops, crude oil and jewelry.

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12. Real estate market
12.1 Housing market
In September, nationwide apartment sales prices were up 0.8 percent due to higher
seasonal demand during the fall moving season.
The Seoul metropolitan area, however, significantly decelerated the weekly upward trend
after the government extended the mortgage-lending regulations, which previously was
applied only in the parts of the Gangnam area, to the entire Seoul metropolitan area starting
September 4.

Nationwide apartment sales prices

(Percentage change from previous period)

2006 2007 2008
Annual Annual Annual

2009
Jan

Feb Mar Apr May Jun

Jul

Aug Sep Sep71 Sep141 Sep211 Sep281

Nationwide

13.8

2.1

2.3

-0.7 -0.3 -0.2

0.0

0.1

0.2

0.3

0.3 0.8 0.18

0.14

0.14

0.11

Seoul

24.1

3.6

3.2

-0.9 -0.2 -0.3

0.4

0.2

0.5

0.9

0.5 1.2 0.23

0.17

0.18

0.08

-1.1

Gangnam

27.6

0.5

-1.9

0.2 -0.1

0.7

0.3

0.7

1.1

0.6 1.4 0.27

0.18

0.17

0.07

Gangbuk3

19.0

8.3

9.4

-0.7 -0.6 -0.4

0.0

0.0

0.3

0.7

0.4 0.9 0.18

0.17

0.18

0.09

Seoul metropolitan area

24.6

2

4.0

2.9

-1.0 -0.4 -0.4

0.0

0.2

0.3

0.5

0.4 0.9 0.19

0.13

0.14

0.08

5 metropolitan cities

2.1 -0.6

1.0

-0.4 -0.2 -0.1

0.0

0.1

0.2

0.2

0.3 0.8 0.19

0.15

0.14

0.13

Other cities

3.0

2.3

-0.3 -0.1

0.1

0.1

0.1

0.1

0.2 0.5 0.14

0.15

0.11

0.15

1. Weekly trends

0.3

2. Upscale area of southern Seoul

3. Northern Seoul

0.0

Source: Kookmin Bank

Although the average rental prices in September continued its upward trend for seven
consecutive months, apartment rental prices decelerated the upward pace after midSeptember as transactions have decreased ahead of Chuseok holidays.

Nationwide apartment sales prices

(Percentage change from previous period)

2006 2007 2008
Annual Annual Annual

Nationwide

7.6

1.9

0.8

Seoul

11.5

2.2

Gangnam2

11.3

0.5

Gangbuk

2009
Jan

Feb Mar Apr May Jun

Jul

Aug Sep Sep71 Sep141 Sep211 Sep281

-1.2 -0.3

0.2

0.3

0.3

0.4

0.5

0.6 1.8 0.41

0.33

0.28

0.24

-1.8

-1.7

0.2

0.7

0.6

0.4

0.7

0.9

1.0 2.8 0.51

0.51

0.41

0.27

-3.6

-1.8

0.7

1.0

0.9

0.5

1.0

1.0

1.1 2.9 0.54

0.59

0.45

0.24

11.8

4.6

0.5

-1.5 -0.4

0.3

0.3

0.2

0.5

0.7

0.8 2.7 0.47

0.42

0.36

0.31

Seoul metropolitan area

11.7

2.1

-0.4

-1.9 -0.3

0.4

0.4

0.5

0.6

0.7

0.8 2.5 0.55

0.45

0.36

0.27

5 metropolitan cities

3.0

1.1

1.6

-0.5 -0.3 -0.1

0.0

0.1

0.2

0.3

0.4 1.2 0.30

0.18

0.24

0.22

Other cities

4.1

2.2

2.6

-0.4 -0.1

0.2

0.1

0.2

0.1

0.2 0.7 0.21

0.21

0.13

0.17

3

1. Weekly trends

2. Upscale area of southern Seoul

3. Northern Seoul

0.1

Source: Kookmin Bank

Apartment sales transactions in August decreased to post 80,922, affected by weak demand
during the low season.

Apartment sales transactions
2006

(Monthly average, thousand)

2007

2008

Annual Jul Annual Jul Annual Jul

2009

Sep

Oct

Nov

Dec

Jan Feb Mar Apr May Jun

Jul Aug

Nationwide

94

69

84

68

74

84

61

68

54

57

49

60

79

76

72

81

91

81

Seoul

16

9

8

8

8

10

5

5

3

5

4

6

8

9

10

11

12

11

Source: Korea Land Corporation

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12-1 Real estate prices
Source: Kookmin Bank (national housing price trend)

12-2 Weekly apartment sales prices and monthly transaction volume
Source: Kookmin Bank (weekly APT price trend) & Korea Land Corporation (monthly land trade trend)

12-3 Apartment prices by region
Source: Kookmin Bank (national housing price trend)

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12.2 Land market
Nationwide land prices in August rose 0.36 percent, extending the upward trend for five
consecutive months, albeit below the peak of October 2008 by 4.4 percent.
Nationwide land prices (m-o-m, %)
0.06 (Apr 2009)

0.11 (May)

0.16 (Jun)

0.21 (Jul)

0.36 (Aug)

Affected by the good news on development projects, land prices in the Seoul metropolitan
area showed a significant price increase as Seoul, Gyeonggi province and Incheon saw
prices rising by 0.63 percent, 0.40 percent and 0.41 percent, respectively.

Land prices by region

(Percentage change from previous period)
2007

2008

2009

Annual

Q1

Q2

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Jul

Aug

Nationwide

3.88

0.96

0.79

0.91

1.15

-0.31

1.23

1.46

1.18

-4.08

-1.20

0.34

0.21

0.36

Seoul

5.88

1.38

1.07

1.40

1.90

-1.00

1.83

2.17

1.59

-6.34

-1.38

0.67

0.28

0.63

Gyeonggi

4.22

1.07

0.89

1.05

1.14

-0.26

1.28

1.57

1.28

-4.28

-1.62

0.36

0.30

0.40

Incheon

4.86

1.24

1.28

1.12

1.13

1.37

1.36

1.67

2.01

-3.57

-1.39

0.52

0.31

0.41

Source: Korea Land Corporation

Nationwide land transactions in August expanded 18.0 percent or 31,000 land lots from a
month earlier to 206,000 land lots. In terms of gross area, land transactions were up 6.1
percent.
Land transactions in green belt sites increased by 92.2 percent to 1,787 land lots year-onyear with expectations that the government would designate those areas as sites to build
Bogeumjari Houses, affordable public apartments for low-income households. Among such
areas, land transactions in Gyeonggi province expanded the most to 784 land lots.

Land sales transactions

(Monthly average, land lot, thousand)

2007

2008

Annual Annual Jan
Nationwide

2009

Feb

Apr

Jun

Aug

Oct

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

208

208

216

190

269

244

175

191

162

134

164

207

207

192

215

222

206

Seoul

33

26

24

24

41

38

18

23

13

13

15

20

24

22

27

26

25

Gyeonggi

49

45

44

40

61

55

38

36

31

26

34

41

48

45

49

50

48

Incheon

13

13

11

10

18

15

11

10

8

7

7

9

10

9

10

11

10

Source: Korea Land Corporation

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12-4 Land and consumer prices since 1970s
Source: Korea Land Corporation (land prices) & Korea National Statistical Office (consumer prices)

12-5 Land prices by region
Source: Korea Land Corporation (land price trend)

12-6 Land trade volume
Source: Korea Land Corporation (land trade trend)

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13. Composite indices of business cycle indicators
The cyclical indicator of coincident composite index, a barometer of the current economic
conditions, rose 0.5 points in August from the previous month, staying on an upward track
since March.
The domestic shipment index, the mining & manufacturing production index, the
manufacturing operation ratio index, and the wholesale & retail sales index contributed to
the increase.
Components of the cyclical indicator of coincident composite index in August 2009 (m-o-m)
Domestic shipment index (2.4%), mining & manufacturing production index (2.1%), manufacturing operation
ratio index (2.1%), wholesale & retail sales index (1.5%), volume of imports (1.4%), number of non-farm
payroll employment (0.3%), service activity index (0.0%), value of construction completed (-2.2%)

The year-on-year leading composite index, which foresees the future economic conditions,
went up 1.2 percentage points month-on-month in August, running on an upward track since
January.
The composite stock price index, the ratio of job openings to job seekers, the consumer
expectations index, and the volume of capital goods imports were up.
Components of the leading composite index in August 2009 (m-o-m)
Composite stock price index (4.8%), consumer expectations index (4.6%p), volume of capital goods imports
(3.8%), ratio of job openings to job seekers (2.5%p), indicator of inventory cycle (2.4%p), value of machinery
orders received (0.7%), spreads between long & short term interest rate (0.2%p), liquidity in the financial
institutions (0.1%), net terms of trade index (-1.9%), value of received construction orders (-5.3%)

2009
Jan

Feb

May

Jun1

Jul1

Aug1

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

-1.9

0.0

0.8

2.1

1.3

0.8

Cyclical indicator of coincident composite index

92.4

92.0

93.8

95.4

96.2

96.7

(m-o-m, p)

-2.2

-0.4

0.3

1.6

0.8

0.5

0.3

1.1

2.1

2.6

1.4

0.9

-4.0

-2.9

2.6

5.8

7.8

9.0

0.1

1.1

2.5

3.2

2.1

1.2

Leading composite index (m-o-m, %)
12 month smoothed change
in leading composite index (%)
(m-o-m, %p)
1. Preliminary

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13-1 Cyclical indicator of coincident composite index
Source: Korea National Statistical Office

13-2 Leading composite index
Source: Korea National Statistical Office

13-3 Coincident and leading composite indices
Source: Korea National Statistical Office

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Policy Issues
Short-term and Mid-term Plans for Fiscal Management:
Budget Plans for 2009-2013 and for 2010

2009-2013 Budget Plan
Key policies
The budget plan is aimed at appropriately responding to economic recovery, developing
growth potential, and improving fiscal health. To this end, the Korean government carefully
planned budget spending in two ways: 1) increasing investment in social welfare to support
the working class and in future growth engines, 2) decreasing temporary support offered to
weather the crisis, and cutting subsidies given to projects which yielded low return on
investment or delivered poor performance.
Between 2009 and 2013, Korea is expected to see an annual increase of 5.6 percent in
revenue, and the government planned fiscal spending at more than 1.0 percent less than the
revenue increase. Korea’s fiscal deficit will decrease every year to hit the balance between
2013 and 2014, while the national debt standing at mid-30 percent to the GDP.
On the revenue side, the government will pursue a broader tax base and lower tax rates.
The current tax exemptions and reductions will be examined from scratch: Less tax breaks to
be offered to high income earners and large corporations, and as much as possible tax
benefits to be provided to low income earners, farmers, fishermen and SMEs. To raise
transparency in taxation, self employed professionals, business persons, and owners of
businesses in which transactions are mainly made in cash, will be specially paid attention to.
Eco-friendly taxation will be introduced, which will apply higher tax rates to higher energy
consuming products.

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On the expenditure side, temporary expenditures made on the basis of revised or
supplementary budgets will be examined thoroughly to be lifted or reduced. To most
effectively spend budgets, government investment will mainly be made in ongoing projects
which will be completed shortly, and investment in new projects will only be made when
resources are made available from restructuring of existing projects, or when they are
evaluated to be worth the investment in terms of the feasibility and cost analysis. In
addition, the government will manage budgets more market friendly by promoting private
sector’s investment and outsourcing.
Budget in brief

Budget plan of 2009-2013

(trillion won)
2009
Main budget Supplementary

Real GDP growth (%)

2010

2011

2012

2013

4.0

-2.0

4.0

5.0

5.0

5.0

Fiscal revenue (trillion won)

291.0

279.8

287.8

309.5

337.6

361.7

National tax revenue (trillion won)

175.4

164.0

168.6

182.1

199.8

219.5

21.6

20.5

20.1

20.1

20.4

20.8

Fiscal expenditure (trillion won)

284.5

301.8

291.8

306.6

322.0

335.3

Fiscal balance (trillion won)

-24.8

-51.0

-32.0

-27.5

-16.1

-6.2

2.4

-5.0

-2.9

-2.3

-1.3

-0.5

349.7

366.0

407.1

446.7

474.7

493.4

34.1

35.6

36.9

37.6

37.2

35.9

Tax burden ratio (%)

(to GDP, %)
National debt (trillion won)
(to GDP, %)

Budget allocation by categories

(Trillion won)
Annual
average
growth (%)

2009

2010

2011

2012

2013

R&D

12.3

13.6

14.9

16.6

18.4

10.5

Industry, SMEs, energy

16.2

14.4

15.1

15.9

17.0

1.3

SOC

24.7

24.8

25.3

25.9

26.7

2.0

Food, agriculture, forestry, fisheries

16.9

17.2

17.4

19.2

17.6

1.2

Health, welfare, labor

74.6

81.0

85.3

90.7

96.9

6.8

Education

38.2

37.8

40.7

44.3

48.3

6.0

Culture, sports, tourism

3.5

3.7

3.8

3.9

4.0

3.4

Environment

5.1

5.4

5.5

5.7

5.8

3.5

28.5

29.6

30.9

32.3

33.7

4.2

Defense (general accounting)
Unification, diplomacy

3.0

3.4

3.4

3.4

3.4

3.6

Public order, safety

12.3

12.9

13.2

13.7

14.0

3.3

General public administration

48.6

49.5

52.7

54.0

54.8

3.0

284.5

291.8

306.6

322.0

335.3

4.2

Total expenditure

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2010 Budget Plan
The government’s budget spending for 2010 prioritizes stabilizing public livelihood and
developing growth potential.
Fiscal policies to boost the economy will continue in 2010, but at the same time fiscal
soundness, which has been worsening amid efforts to overcome the crisis, will be more
actively taken care of from a mid-term perspective.
The size of 2010 budget and major focuses
Total expenditures of the new budget including public funds are 291.8 trillion won, a 2.5
percent increase from the 2009 budget, which will be mainly allocated 1) to help the
economy turn around and enhance growth potential, 2) bolster public livelihood support and
create more jobs, and 3) raise the level of law compliance and Korea’s status in the
international community.

Compared with the total budget of 2009 including the supplementary one passed at the
National Assembly last April, the 2010 budget is less than that by 3.3 percent. However, the
planned 2010 budget is 6.6% more than the 2009 budget planned before the global
economic crisis.

Total revenue is expected to decrease 1.1 percent to 287.8 trillion won from the 2009 main
budget. Given that, the government needs to more efficiently spend budgets by
restructuring annual expenditure, while pursuing fiscal stability in the mid-term.

2009 budget and 2010 budget plan

(Trillion won)

2009 budget

2010 budget plan

Difference

Main budget (A) Supplementary

(B)

B-A (% to A)

Total revenue

291.0

279.8

287.8

-1.1

Total expenditure

284.5

301.8

291.8

2.5

On the expenditure side, the Korean government reduced the number of projects fueled by
the government by eliminating similar ones to more effectively spend budgets, while
examining the temporary projects funded by the 2009 supplementary budget in terms of
whether they are really in need of government funding, and how effectively the budget is
spent. To deliver government support more efficiently and effectively, social welfare
spending will be managed under a consolidated system.

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On the revenue side, the government will broaden the source of resources and take
advantage of the private sector in terms of creativeness and efficiency. This will include
promoting private sector’s investment, expanding public firms’ investment, reducing tax
exemptions and cuts, and utilizing the Land Bank system.*

*Land Bank : Land Bank is a policy measure by which the government can hold, manage and develop
properties to be used for a public purpose at the right time. The measure contributes to
supplying properties for SOC construction and industrial development at reasonable
prices, and stabilizing the real estate market.

Consolidated budget balance (% to GDP)
-2.1 (2009)

approx. -0.4 (2010)

Consolidated budget balance excluding social security funds (% to GDP)
-5.0 (2009)

approx. -2.9 (2010)

National debt (% to GDP) : 35.6 (2009)

approx. 36.9 (2010)

Government bonds issued in the general account (trillion won) : 35.5 (2009)

30.9 (2010)

2009 supplementary budget and 2010 budget plan1

(Trillion won, %)

2009 supplementary budget

2010 budget plan

-22.0

-4.0

(-2.1)

(-0.4)

29.1

28.0

(2.8)

(2.5)

Consolidated Budget Balance excluding

-51.0

-32.0

social security funds

(-0.5)

(-2.9)

Government Debt

366.0

407.1

(35.6)

(36.9)

35.5

30.9

Consolidated Budget Balance

Social Security Funds Balance

Government Bonds issued in the
general account
1. Figures in parentheses denote the ratio to GDP(%)

Budget allocation
The 2010 R&D investment will be increased 10.5 percent to 1.36 trillion won from 2009,
reflecting the mid-term plan that the level of R&D investment will reach 1.5 folds from 2008
to 2012. The investment will mainly be made in basic science, new growth engines, and
green technologies.

Investment in SOC projects will mainly cover water resources development including the
“Four River Restoration Project” and railroad related projects, which are part of the “Low
Carbon Green Growth Agenda”, moving a focus away from road construction, the SOC Korea
has relatively enough of.

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The level of increase in budgets allocated to health and welfare exceeds three times of a
total expenditure increase in order to help support the working class and the vulnerable. In
addition, 550 thousand jobs will be offered in the public sector, taking into account the
employment improving slower than the economic turnaround.

South-North Cooperation Fund of the 2009 level was set aside, which covers humanitarian
support such as food and fertilizer, in preparation for South-North relations returning to
normal.

2009 budget allocation

(Trillion won)
2010

2009
Main budget
(A)

Supplementary

Main budget
(B)

R&D

12.3

12.7

13.6

10.5

Industry, SMEs, energy

16.2

20.8

14.4

-10.9

SOC

24.7

25.5

24.8

0.3

Agriculture, forestry, fisheries and food

16.9

17.4

17.2

2.1

Health, welfare, labor

74.6

80.4

81.0

8.6

Education

38.2

39.2

37.8

-1.2

3.5

3.6

3.7

7.8

Culture, sports, tourism
Environment
Defense (general accounting)
Unification, diplomacy
Public order, safety
General public administration
Total expenditure

Difference
B-A (% to A)

5.1

5.7

5.4

5.1

28.5

29.0

29.6

3.8

3.0

3.0

3.4

14.7

12.3

12.4

12.9

4.3

48.6

51.6

49.5

1.8

284.5

301.8

291.8

2.5

2010 Build-Transfer-and-Lease* (BTL)
The size of BTL projects in 2010 will be around 3.6 trillion won in seven areas. The SOC
investment will be selectively made where such an investment is urgently needed to improve
public lives: construction of schools, military residence, and sewage pipes. To attract private
investments, the government will offer better conditions for funding SOC projects and
expand subsidiary projects linked to the main projects.

* BTL is a kind of public private partnership (PPP). The ownership of the infrastructure facilities will be
transferred to the central or a local government upon the completion of construction, and the
concessionaire will have the right to operate the infrastructure facilities for a specified period of time
while the central or a local government gains revenues from the facilities by leasing the facilities from
the concessionaire.

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Economic
News Briefing

Korea to host G20 summit in 2010
Korea will host a G20 summit in November next year. The leaders of the G20 unanimously
agreed on September 25 in Pittsburgh to hold two rounds of summits next year, one in South
Korea and the other in Canada. Canada will host the fourth meeting in June 2010, and Korea
will hold the fifth. Korea is also set to take the chairmanship of the G20 summit in 2010.
The leaders agreed to convene G20 summits every year and concurred to replace the G8
with the G20 as the permanent council for economic cooperation and coordination,
reflecting the increased presence of emerging economies.
Meanwhile, the leaders of the G20 nations adopted a joint statement calling for the G20
meeting to be the premier forum for the international economic cooperation. The leaders
pledged to sustain a strong policy response until a durable recovery is secured, and avoid
any premature withdrawal of stimulus. At the same time, the leaders vowed to prepare exit
strategies in a cooperative and coordinated way. In addition, they agreed to launch a
framework that lays out measures to generate strong, sustainable and balanced global
growth.
As to modernizing the international financial institutions and global development
architecture, the leaders committed to a shift in IMF quota share to dynamic emerging
markets and developing countries of at least 5 percent. They also stressed the importance of
adopting a dynamic formula at the World Bank and called for the international organization
to generate an increase of at least 3 percent of voting rights for developing and transition
countries.

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Korea wins “developed” market status from FTSE
The Financial Times Stock Exchange (FTSE) upgraded Korea’s stock market status to
“developed” from “advanced emerging” in September 2009, giving the market the potential
to attract more foreign investment. The London-based group decided in September last year
to include Korea in the list of developed world indices in its annual review of market
classification, which was scheduled to be effective in September this year. The Korean stock
market is expected to see a net inflow of around US$21.3 billion affected by the promotion in
the mid to long term after portfolio rebalancing, according to an estimate by the Korea
Exchange.

IMF upgrades Korea’s growth forecast
On October 2, the International Monetary Fund (IMF) raised the 2009 growth outlook for
Korea to minus 1 percent from the previous projection of minus 1.8 percent. The revised
forecast, which was made as part of the fund’s global economic outlook for the second half
of 2009, is the third adjustment that has been made this year. The international organization
also lifted Korea’s 2010 growth forecast to 3.6 percent from the previous estimate of 2.5
percent. The Washington-based agency attributed the quicker-than-expected recovery of the
Asian region including Korea to expansionary policies, stabilization of the financial markets,
increased inflow of foreign capital and inventory adjustment.

IMF’s economic forecast for Korea
Apr 2009

Jul 2009

Aug 2009

Oct 2009

2009

-4.0%

-3.0%

-1.8%

-1.0%

2010

1.5%

2.5%

2.5%

3.6%

Meanwhile, Korea’s Finance Minister Yoon Jeung-Hyun presented three principles to
overcome the crisis and ensure sustainable growth at the 64th annual World Bank-IMF
meeting held in Istanbul, Turkey. Yoon said exit strategies should be introduced when
recovery becomes fully secured, and developed in a concerted manner based on
internationally agreed principles. The finance minister also called for sustainable and
balanced economic growth for the global economy to return to a pre-crisis level of growth
trend. He then added that the IMF and the World Bank need to be reformed for effective
response to fundamental changes in the international financial system.

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Amendments to the enforcement decree of the Banking Act and the
Financial Holding Companies Act
The Banking Act and the Financial Holding Companies Act were recently amended to
improve and supplement the existing system such as the reporting of changes in bank
ownership. The amendments are enacted on October 10, 2009 as planned after having been
passed through the Cabinet Meeting on October 6.
Under the revised act, a non-financial business operation (NFBO) must gain approval from
the Financial Services Commission (FSC) to become the largest shareholder of a bank or
participate in the management by acquiring more than 4 percent of bank shares. Moreover,
a stringent post-approval supervision including an eligibility assessment of the largest
shareholder will be in place to prevent any conflict of interest or illegal transaction.
The approval criteria are stipulated as follows: i) The bank’s credit line given to the largest
shareholder must not exceed the limit (bank’s total equity multiplied by the shareholder’s
proportion of bank’s equity) at the time of approval request; ii) the relevant firm or its nonfinancial subsidiaries must have debt ratios below 200 percent and meet the regulatory
criteria; iii) when the firm is a financial institution, it must meet the financial soundness
criteria set by the financial regulation; iv) the bank shares must be purchased using the
firm’s own equity and not through leverage; v) the firm must not have insolvency
responsibilities in the last 5 years; and vi) the firm must have a will to improve structural
soundness of the financial institution and to contribute to the effectiveness of the financial
markets.
When a private equity fund (PEF), with more than 10 percent of its shares held by an NFBO as
a limited partner (LP), wishes to become the largest shareholder of a bank or participate in
its management by acquiring more than 4 percent of bank shares, the PEF’s general partner
(GP) is required to gain a pre-approval from the FSC. The FSC may request relevant
information on the PEF’s article of incorporation or the contract terms between the GP and
LP. This is to prevent the LP of NFBO from exercising influence on the GP, thereby controlling
the bank indirectly through the PEF.
The amended act exempts public pension funds from NFBO restrictions on the FSC’s
approval. The fund must be clear of any conflict of interest that may arise from holding both
bank shares and non-financial shares. Also, a non-financial company owned by a banksubsidiary PEF for buy-out purposes is exempt from NFBO status. This is to ensure that
banks are not unfairly regarded as a NFBO through their investment in a non-financial
company through a PEF.

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Microcredit program to be expanded for low income households
The government announced on September 17 the “Miso Credit Foundation” plan to provide
extensive support in microcredit loans for low income households. The microcredit program
is a measure to lend more than 2 trillion won over the next 10 years to those who cannot
borrow money from commercial banks due to their poor credit record.
The member corporations of the Federation of Korean Industries have committed to
donating up to 1 trillion won and the other 1 trillion won will be contributed by financial
institutions, including 700 billion won from dormant deposits.
The Miso Credit Foundation plans to open 20 to 30 branches starting December and expand
branches up to 300 nationwide through 2010, which will be operated mainly by volunteers or
bank retirees. About 200 to 250 thousand low-income households will benefit from the
program.
The target beneficiaries will include small business owners, business owners in traditional
outdoor markets, viable startup franchise store owners, regular startup businesses, startup
partnership businesses and endorsed non-profit organizations. The interest rates will be set
below the market rates and the individual loan can range from 5 to 100 million won with
maturity of 1 to 5 years.

Microcredit program
Beneficiary

Details

Lending conditions

Small business owners

General support of operating costs including expenses
for maintenance, repairs and raw material purchases
for small business owners

- Up to 10 million won
- Repayment in 5 years

Vendors in traditional
outdoor markets

Financial support to business owners in traditional
outdoor markets through the merchants’ associations

- Up to 5 million won
- Repayment in 3 years

Viable startup franchise
store owners

Facilitation of starting a new business for small
franchise store owners who are verified to be viable

- Up to 50 million won
- Repayment in 5 years

Regular startup businesses

Start-up financing to those seeking to start new
businesses

- Up to 50 million won
- Repayment in 5 years

Startup partnership
businesses

Assistance of incorporation and operation costs for
self-supporting organizations

- Up to 100 million won
- Repayment in 5 years

Endorsed non-profit
organizations

General support of operating costs for non-profit
organizations endorsed by the Social Enterprise
Promotion Act

- Up to 100 million won
- Repayment in 5 years

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Five financial authorities sign an MOU to share financial information
The five financial authorities, the Ministry of Strategy and Finance (MOSF), Bank of Korea
(BOK), Financial Services Commission (FSC), Financial Supervisory Service (FSS), and Korea
Deposit Insurance Corporation (KDIC), signed a memorandum of understanding (MOU) on
September 15 to share financial information, amid growing calls for the expansion of
information-sharing and the strengthening of policy coordination among related agencies in
the aftermath of the global financial meltdown. The central bank and the FSS signed a
separate pact to jointly conduct on-site inspections into banks and other financial
companies.
Under the agreement, the five organizations will share all types of information provided by
financial companies unless prohibited by law. Accordingly, the level of information sharing
will be expanded from the current 60 percent of information owned by each institution to 98
percent. Information, which has been shared mainly in the form of banks’ regular report
before the agreement, will include regular or occasional reports by non-bank financial firms
and processed material. The financial authorities will heighten security to prevent
information leakage and establish mechanisms to prohibit exploitation of information for
investment purposes.
As for joint inspections, the FSS is required to embark on a joint audit of financial firms
within a month upon request from the BOK. Currently, before the request of joint inspection
from the BOK is officially announced the two institutions must hold working-level meetings.

Korea to encourage Islamic bonds issuance through tax incentives
Korea will grant tax incentives for revenues earned from investing in Islamic bonds starting
2010. Islamic bond or “Sukuk” is similar to traditional bonds but different in that the debt
provides dividend or lease profits to its holder, instead of interest, as Islamic law prohibits
charging or paying interest.
The government decided to offer the same tax incentive given to other bonds to provide
more favorable conditions to the issuance of Sukuk in Korea. The tax breaks will first be
applied to two major Islamic bonds; Ijara Sukuk and Murabaha Sukuk. The revision is
expected to contribute to attracting Islamic fund, improving corporate financing conditions
by broadening sources of investment, and depending less on the US and Europe for
financing and diversifying risks.

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

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1. National accounts
(year-on-year change, %, chained 2005 year prices)
Real GDP
Period

2002
2003
2004
2005
2006
2007
2008P

Gross fixed capital formation

Final
consumption
expenditure

Agri., fores.
& fisheries

Manufacturing

7.2
2.8
4.6
4.0
5.2
5.1
2.2

-2.2
-5.4
9.1
1.3
1.5
4.0
5.5

8.7
5.4
10.0
6.2
8.1
7.2
3.1

8.1
0.5
1.0
4.6
5.1
5.1
1.6

Construction

Facilities

7.1
4.4
2.1
1.9
3.4
4.2
-1.7

6.2
8.5
1.3
-0.4
0.5
1.4
-2.1

7.3
-1.5
3.8
5.3
8.2
9.3
-2.0

2002

I
II
III
IV

6.6
7.0
6.8
8.1

2.3
-2.4
-1.1
-5.5

5.1
7.2
9.3
13.1

10.3
9.1
7.7
5.7

7.5
7.9
3.2
9.6

11.4
7.2
-1.5
9.4

2.6
7.7
9.8
9.1

2003

I
II
III
IV

3.5
1.8
2.0
3.9

0.7
-1.6
-9.6
-8.0

5.4
3.1
4.3
8.5

2.0
0.3
0.0
-0.4

5.1
4.7
2.8
5.0

8.2
8.4
8.3
9.0

2.9
-0.7
-5.8
-2.2

2004

I
II
III
IV

5.2
5.9
4.8
2.7

8.2
7.6
8.3
11.6

10.9
12.9
10.4
6.2

-0.1
1.3
1.0
1.8

2.3
4.9
3.1
-1.4

5.3
4.2
1.2
-3.5

-0.6
6.4
7.7
1.8

2005

I
II
III
IV

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

I
II
III
IV

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

I
II
III
IV

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

2008P

I
II
III
IV

5.5
4.3
3.1
-3.4

7.4
4.4
4.2
6.4

9.1
8.4
5.6
-9.1

3.9
2.6
2.0
-1.9

-0.5
0.6
1.8
-7.3

-1.9
-0.3
0.2
-5.6

1.5
1.1
4.3
-14.0

2009P

I
II

-4.2
-2.2

1.5
-1.2

-13.6
-7.3

-2.0
0.9

-8.1
-2.7

1.6
3.7

-23.5
-15.9

P: Preliminary
Source: The Bank of Korea

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Growth rate by economic activity

Growth rate by expenditure on GDP

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2. Production, shipment and inventory See graphs 6-1, 6-3, 7-1, 7-2 & 7-3
(constant prices, 2005 = 100)

Period

Production
index

2007
2008

Y-o-Y
change (%)

Shipment
index

Y-o-Y
change (%)

Inventory
index

Y-o-Y
change (%)

Service
production
index

Y-o-Y
change (%)

115.9
119.4

6.9
3.0

115.3
118.1

7.2
2.4

117.2
125.7

5.6
7.3

112.2
116.0

6.8
3.4

2007

I
II
III
IV

109.6
114.9
112.9
126.2

4.1
6.3
6.1
10.9

109.6
115.2
111.9
124.7

5.2
7.1
5.6
10.5

114.0
114.5
112.7
117.2

5.0
4.1
2.9
5.6

106.7
111.2
112.6
118.1

5.5
6.5
7.4
7.4

2008

I
II
III
IV

121.6
125.1
119.2
111.9

10.9
8.9
5.6
-11.3

119.6
122.8
117.8
112.1

9.1
6.6
5.3
-10.1

123.7
133.1
132.2
125.7

8.5
16.2
17.3
7.3

113.8
116.5
116.2
117.6

6.7
4.8
3.2
-0.4

2009

I
II

102.7
117.4

-15.5
-6.2

102.0
115.7

-14.7
-5.8

116.5
110.9

-5.8
-16.7

113.3
118.4

-0.4
1.6

2007

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

112.8
100.2
115.7
113.8
115.8
115.1
113.4
113.7
111.6
128.6
127.6
122.5

8.7
-0.2
3.5
6.4
5.8
6.7
13.6
9.0
-3.0
16.1
7.7
9.4

110.3
101.7
116.8
114.6
116.0
114.9
112.6
112.5
110.6
126.3
126.1
121.6

8.3
2.0
5.1
7.5
6.6
6.9
14.3
7.3
-3.5
15.6
7.8
8.6

118.6
115.6
114.0
111.8
114.2
114.5
115.6
115.6
112.7
115.0
114.9
117.2

10.8
8.4
5.0
4.0
3.7
4.1
2.8
5.5
2.9
4.9
4.3
5.6

105.9
102.8
111.4
109.4
112.1
112.1
112.1
112.9
112.8
115.3
115.6
123.4

4.3
6.7
5.5
5.4
6.2
8.1
10.0
7.9
4.5
9.3
6.7
6.2

2008

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

126.0
110.9
127.8
126.1
126.1
123.1
123.1
115.8
118.6
126.2
110.0
99.6

11.7
10.7
10.5
10.8
8.9
7.0
8.6
1.8
6.3
-1.9
-13.8
-18.7

121.7
109.7
127.3
124.5
123.5
120.3
121.5
114.5
117.3
124.0
109.5
102.8

10.3
7.9
9.0
8.6
6.5
4.7
7.9
1.8
6.1
-1.8
-13.2
-15.5

123.9
124.4
123.7
124.8
128.9
133.1
132.4
132.3
132.2
135.1
133.4
125.7

4.5
7.6
8.5
11.6
12.9
16.2
14.5
14.4
17.3
17.5
16.1
7.3

114.2
109.3
118.0
116.3
117.7
115.5
116.8
115.1
116.8
116.9
113.9
121.9

7.8
6.3
5.9
6.3
5.0
3.0
4.2
1.9
3.5
1.4
-1.5
-1.2

93.9
99.8
114.4
115.8
114.7
121.7
124.2
117.2

-25.5
-10.0
-10.5
-8.2
-9.0
-1.1
0.9
1.2

93.2
99.5
113.2
114.5
112.8
119.8
120.0
113.5

-23.4
-9.3
-11.1
-8.0
-8.7
-0.4
-1.2
-0.9

124.4
118.1
116.5
112.6
111.4
110.9
112.9
113.7

0.4
-5.1
-5.8
-9.8
-13.6
-16.7
-14.7
-14.1

113.0
109.6
117.2
118.5
118.1
118.7
117.9
116.4

-1.1
0.3
-0.7
1.9
0.3
2.8
0.9
1.1

2009

1
2
3
4
5
6
7P
8P

P: Preliminary
Source: Korea National Statistical Office

54

October 2009

)019(BE8109 91.0 9 2 71:8 MP 5지이페

③cam

3. Production capacity and operation ratio See graph 6-2

Period

2007
2008

Production
capacity index
(2005=100)

Y-o-Y
change (%)

Operation
ratio index
(2005=100)

Y-o-Y
change (%)

Average
operation
ratio (%)

109.7
115.4

5.4
5.2

100.4
96.8

0.1
-3.6

80.1
77.2

2007

I
II
III
IV

107.5
108.3
110.2
112.6

4.5
4.5
6.0
6.4

97.2
102.6
96.2
105.5

-2.1
0.7
-1.7
3.4

78.9
79.9
80.1
81.3

2008

I
II
III
IV

114.0
115.3
116.0
116.5

6.0
6.5
5.3
3.5

98.9
102.7
95.1
90.6

1.7
0.1
-1.1
-14.1

80.8
80.4
78.3
69.3

2009

I
II

116.9
117.5

2.5
1.9

80.7
94.3

-18.4
-8.2

65.8
73.7

2007 1
2
3
4
5
6
7
8
9
10
11
12

107.2
107.5
107.7
107.9
108.2
108.9
109.7
110.2
110.8
112.3
112.5
113.0

4.4
4.6
4.3
4.5
4.2
4.9
5.8
6.1
6.1
6.5
6.3
6.5

99.8
88.2
103.6
101.5
103.9
102.5
98.3
96.6
93.8
109.4
107.4
99.7

2.6
-7.2
-1.9
0.7
0.9
0.7
7.3
1.4
-12.3
9.6
0.1
0.9

78.5
79.5
78.8
78.8
80.5
80.4
80.6
81.1
78.6
81.9
81.0
80.9

2008 1
2
3
4
5
6
7
8
9
10
11
12

113.8
113.8
114.3
114.7
115.5
115.7
115.7
116.0
116.2
116.3
116.3
116.8

6.2
5.9
6.1
6.3
6.7
6.2
5.5
5.3
4.9
3.6
3.4
3.4

102.9
89.2
104.6
104.2
103.0
100.8
99.4
91.9
94.1
103.8
89.1
78.9

3.1
1.1
1.0
2.7
-0.9
-1.7
1.1
-4.9
0.3
-5.1
-17.0
-20.9

81.3
80.2
80.9
81.0
80.0
80.2
79.2
78.4
77.3
77.3
68.4
62.3

2009 1
2
3
4
5
6
7P
8P

116.8
116.9
117.1
117.2
117.2
118.2
118.8
119.2

2.6
2.7
2.4
2.2
1.5
2.2
2.7
2.8

72.9
78.8
90.4
93.1
92.2
97.5
98.5
90.7

-29.2
-11.7
-13.6
-10.7
-10.5
-3.3
-0.9
-1.3

61.4
66.9
69.2
71.5
72.9
76.6
78.8
77.6

P: Preliminary
Source: Korea National Statistical Office

Economic Bulletin

55

)019(BE8109 91.0 9 2 71:8 MP 65지이페

③cam

4. Consumer goods sales index See graphs 2-2, 2-3, 2-4 & 2-5
(constant prices, 2005 = 100)

Period

Consumer
goods
sales
index

2007
2008

Y-o-Y
change (%)

Durable
goods

Y-o-Y
change (%)

Semi-durable
goods

Y-o-Y
change (%)

Non-durable
goods

Y-o-Y
change (%)

109.3
110.4

5.1
1.0

124.7
127.1

9.6
1.9

108.1
105.5

3.9
-2.4

108.5
109.3

5.2
0.7

2007

I
II
III
IV

106.6
108.3
107.1
115.1

5.2
4.3
7.2
3.6

119.6
124.6
126.0
128.6

16.6
12.5
10.2
0.8

99.9
110.1
94.1
128.5

5.4
1.5
3.6
5.4

106.6
107.6
110.5
109.4

4.3
3.5
8.4
5.0

2008

I
Il
III
IV

111.3
111.4
108.6
110.3

4.4
2.9
1.4
-4.2

131.0
135.5
126.0
115.9

9.5
8.7
0.0
-9.9

103.7
107.8
94.7
115.8

3.8
-2.1
0.6
-9.9

108.6
107.9
111.8
109.0

1.9
0.3
1.2
-0.4

2009

I
II

105.9
113.2

-4.9
1.6

113.2
140.9

-13.6
4.0

102.8
108.1

-0.9
0.3

107.1
109.0

-1.4
1.0

2007 1
2
3
4
5
6
7
8
9
10
11
12

106.2
103.6
110.1
106.6
111.3
107.0
105.0
103.6
112.6
113.4
113.9
118.1

0.4
10.3
5.6
3.8
5.6
3.6
9.1
5.8
6.6
6.8
3.9
0.5

118.7
111.2
128.8
120.5
126.5
126.8
130.5
127.0
120.5
124.8
129.1
131.8

22.0
11.5
16.2
13.9
14.3
9.4
20.7
11.4
-0.3
11.7
4.0
-10.3

98.0
91.5
110.2
111.5
116.2
102.5
94.4
80.0
107.8
123.9
130.0
131.7

4.6
5.7
5.8
-0.1
1.8
2.7
3.2
2.8
4.6
8.2
4.3
3.9

104.4
107.4
108.1
105.0
110.3
107.4
105.3
109.6
116.7
109.3
106.6
112.2

-4.9
16.0
3.7
3.3
5.0
1.9
8.7
5.7
10.9
4.1
5.4
5.3

2008 1
2
3
4
5
6
7
8
9
10
11
12

111.7
107.2
115.1
113.0
114.8
106.3
109.3
105.9
110.5
109.5
108.6
112.8

5.2
3.5
4.5
6.0
3.1
-0.7
4.1
2.2
-1.9
-3.4
-4.7
-4.5

129.5
118.7
144.8
140.6
137.6
128.2
141.1
121.5
115.4
124.4
109.0
114.4

9.1
6.7
12.4
16.7
8.8
1.1
8.1
-4.3
-4.2
-0.3
-15.6
-13.2

104.5
97.3
109.2
109.2
112.5
101.8
98.0
87.1
99.1
112.5
121.2
113.8

6.6
6.3
-0.9
-2.1
-3.2
-0.7
3.8
8.9
-8.1
-9.2
-6.8
-13.6

108.1
107.9
109.8
108.1
111.7
103.9
105.7
111.4
118.2
105.8
107.0
114.3

3.5
0.5
1.6
3.0
1.3
-3.3
0.4
1.6
1.3
-3.2
0.4
1.9

2009 1
2
3
4
5
6
7P
8P

108.0
100.7
109.1
108.6
116.6
114.3
111.3
108.0

-3.3
-6.1
-5.2
-3.9
1.6
7.5
1.8
2.0

102.5
114.3
122.9
123.7
142.8
156.3
141.3
128.2

-20.8
-3.7
-15.1
-12.0
3.8
21.9
0.1
5.5

103.2
96.8
108.4
110.0
113.5
100.7
95.8
87.3

-1.2
-0.5
-0.7
0.7
0.9
-1.1
-2.2
0.2

113.6
98.8
108.8
107.0
112.5
107.5
110.9
112.8

5.1
-8.4
-0.9
-1.0
0.7
3.5
4.9
1.3

P: Preliminary
Source: Korea National Statistical Office

56

October 2009

)019(BE8109 91.0 9 2 71:8 MP 75지이페

③cam

5. Consumer goods shipment index and consumer sentiment index
See graph 2-6

Period

2007
2008

Domestic consumer
goods shipment index
(2005=100)
Y-o-Y
change (%)

Durable
goods

Y-o-Y
change (%)

Non-durable
goods

Y-o-Y
change (%)

Consumer
sentiment index

113.0
114.6

6.0
1.4

124.5
126.6

12.8
1.7

108.4
109.8

3.2
1.3

-

2007

I
II
III
IV

111.1
111.0
111.3
118.7

8.4
7.8
2.4
5.9

119.8
122.5
122.9
132.8

17.6
15.0
9.3
9.9

107.6
106.4
106.7
113.0

4.8
4.7
-0.5
4.1

-

2008

I
II
III
IV

117.3
115.7
113.5
111.8

5.6
4.2
2.0
-5.8

132.5
136.4
123.0
114.5

10.6
11.3
0.1
-13.8

111.3
107.5
109.7
110.7

3.4
1.0
2.8
-2.0

-

2009

I
II

105.9
113.1

-9.7
-2.2

112.8
137.7

-14.9
1.0

103.2
103.2

-7.3
-4.0

-

2007 1
2
3
4
5
6
7
8
9
10
11
12

114.9
104.3
114.1
111.6
113.0
108.5
109.7
112.9
111.3
121.6
118.0
116.4

11.1
8.0
6.2
10.1
8.8
4.7
10.0
6.0
-7.1
11.8
3.1
2.9

118.0
113.7
127.8
119.9
125.3
122.4
124.3
125.0
119.5
136.4
131.8
130.2

21.9
14.8
16.2
19.5
18.2
8.0
23.6
13.9
-5.8
16.9
6.7
6.5

113.6
100.5
108.6
108.3
108.0
102.9
103.9
108.1
108.0
115.7
112.4
110.9

7.2
5.0
2.2
6.3
4.8
3.2
4.5
2.8
-7.6
9.6
1.4
1.3

-

2008 1
2
3
4
5
6
7
8
9
10
11
12

125.2
106.4
120.3
119.8
115.8
111.6
117.6
111.3
111.5
119.5
107.0
108.8

9.0
2.0
5.4
7.3
2.5
2.9
7.2
-1.4
0.2
-1.7
-9.3
-6.5

131.5
122.4
143.5
144.0
136.9
128.2
134.2
118.8
116.0
127.8
111.0
104.6

11.4
7.7
12.3
20.1
9.3
4.7
8.0
-5.0
-2.9
-6.3
-15.8
-19.7

122.7
100.0
111.1
110.1
107.4
105.0
111.0
108.3
109.7
116.2
105.5
110.5

8.0
-0.5
2.3
1.7
-0.6
2.0
6.8
0.2
1.6
0.4
-6.1
-0.4

84
96
96
88
84
81

2009 1
2
3
4
5
6
7
8

105.7
102.3
109.8
110.5
111.5
117.4
117.8P
110.1P

-15.6
-3.9
-8.7
-7.8
-3.7
5.2
0.2P
-1.1P

99.0
115.2
124.3
119.0
138.6
156.0
143.4P
124.4P

-24.7
-5.9
-13.4
-17.4
1.2
21.7
6.9P
4.7P

108.4
97.2
104.0
107.1
100.6
102.0
107.5P
104.4P

-11.7
-2.8
-6.4
-2.7
-6.3
-2.9
-3.2P
-3.6P

84
85
84
98
105
106
109
114

P: Preliminary
Source: Korea National Statistical Office & The Bank of Korea

Economic Bulletin

57

)019(BE8109 91.0 9 2 71:8 MP 85지이페

③cam

6. Machinery orders received, domestic machinery shipment
and estimated facility investment index See graph 3-2
Domestic machinery orders received
excluding ship (billion won, constant prices)
Period

2007
2008

Estimated
facility investment
index
(2005=100)

Domestic
machinery
shipment
excluding ship
(2005=100)

Total

Public

Private

27,279
23,798

2,199
2,309

25,080
21,488

15,635
12,809

118.1
113.0

114.5
114.5

Manufacturing

2008

I
ll
III
IV

7,863
6,088
5,474
4,372

371
535
354
1,049

7,492
5,552
5,121
3,324

4,936
3,140
2,947
1,786

112.8
121.2
113.7
104.3

111.7
120.6
113.9
111.9

2009

I
ll

5,205
5,227

931
701

4,274
4,527

2,083
2,330

92.8
104.9

98.1
111.2

2008 1
2
3
4
5
6
7
8
9
10
11
12

3,110
2,339
2,414
2,043
1,863
2,182
2,372
1,688
1,414
1,711
1,259
1,402

148
68
155
95
89
352
179
87
88
399
207
444

3,661
2,271
2,259
1,947
1,775
1,830
2,193
1,602
1,326
1,312
1,053
959

2,032
1,571
1,332
1,137
913
1,090
1,239
965
743
754
555
478

107.8
104.2
126.4
122.6
122.5
118.4
118.9
113.3
108.9
105.8
103.6
103.5

106.3
102.9
125.9
119.6
122.1
120.0
119.6
108.3
113.8
112.5
108.2
115.1

2009 1
2
3
4
5
6
7P
8P

1,636
1,727
1,842
1,534
1,466
2,228
2,544
1.404

232
519
181
93
98
510
1,074
73

1,404
1,209
1,661
1,441
1,368
1,718
1,470
1.331

741
562
780
690
700
940
795
671

84.7
92.4
101.3
99.4
102.7
112.6
96.5
94.5

84.3
97.5
112.5
109.5
102.9
121.1
106.4
96.9

2007
2008

20.6
-12.8

-11.4
5.0

29.9
-18.1

8.2
-4.3

3.3
0.0

Y-o-Y change (%)
24.5
-14.3

2008

I
ll
III
IV

22.7
-0.5
-15.2
-47.3

9.7
84.7
-26.9
-3.5

23.5
-4.7
-14.3
-53.9

44.6
-7.4
-23.7
-64.0

-3.8
-2.7
3.0
-13.4

1.3
0.6
6.5
-7.4

2009

I
ll

-33.8
-14.1

150.5
30.9

-42.9
-18.5

-57.8
-25.8

-17.7
-13.7

-12.2
-7.8

2008 1
2
3
4
5
6
7
8
9
10
11
12

51.2
2.6
16.7
5.0
-6.4
0.0
17.0
-9.0
-45.0
-46.4
-52.6
-42.8

67.3
-54.7
55.3
3.2
-2.4
229.6
5.3
-32.2
-52.8
349.0
-5
-43.2

50.5
6.6
14.7
5.1
-6.6
-11.8
18.1
-7.3
-44.4
-57.7
-56.8
-42.7

78.7
26
29.5
5.9
-13.6
-13.7
12.0
-1.4
-58.2
-67.5
-66.9
-50.8

-2.2
-8.0
-1.5
-4.2
-1.1
-2.7
7.0
-0.9
2.9
-6.2
-14.9
-18.4

1.8
0.2
1.6
4.4
-0.8
-1.7
7.1
2.6
10.0
-1.0
-10.1
-10.4

2009 1
2
3
4
5
6
7P
8P

-47.4
-26.2
-23.7
-24.9
-21.3
2.1
7.3
-16.8

56.4
660.1
16.7
-2.9
10.5
45.1
498.8
-15.7

-52.6
-46.8
-26.5
26
22.9
-6.2
-32.9
-16.9

-63.6
-64.2
-41.4
-39.3
-23.4
-13.8
-35.9
-30.4

-21.4
-11.3
-19.9
-18.9
-16.2
-4.9
-18.8
-16.6

-20.7
-5.2
-10.6
-8.4
-15.7
1.0
-11.0
-10.5

P: Preliminary
Source: Korea National Statistical Office

58

October 2009

)019(BE8109 91.0 9 2 71:8 MP 95지이페

③cam

7. Value of construction completed and domestic construction
orders received See graphs 4-2 & 4-3
(current prices, billion won)

Period

2007
2008

Type of order

Type of order

Private

Domestic
construction
orders received
(total)

Public

Private

25,098
26,728

54,559
55,509

112,502
102,321

28,695
31,320

77,554
65,294

Value of
construction
completed
(total)

Public

82,939
86,806

2008

I
ll
III
IV

18,283
22,158
22,317
24,047

5,279
6,568
6,503
8,383

12,142
14,367
14,712
14,288

21,048
25,995
17,061
38,217

7,398
6,056
4,691
13,175

13,077
19,171
10,795
22,252

2009

I
ll

19,115
23,716

6,562
8,678

11,536
13,623

17,567
25,485

9,024
17,350

8,055
7,201

2008

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

6,074
5,473
6,736
7,026
7,321
7,811
7,168
7,312
7,837
7,741
7,779
8,528

1,716
1,519
2,040
1,967
2,224
2,376
2,025
2,139
2,339
2,498
2,572
3,312

4,072
3,698
4,372
4,636
4,731
5,001
4,789
4,822
5,101
4,819
4,743
4,726

6,275
6,152
8,621
7,880
8,578
9,537
5,372
6,169
5,519
8,187
8,151
21,879

1,907
2,048
3,442
1,743
2,499
1,814
1,392
1,520
1,779
2,451
3,088
7,636

4,166
3,887
5,024
5,933
5,884
7,353
3,452
4,432
2,911
4,827
4,722
12,703

6,048
6,129
6,937
7,451
7,271
8,995
7.005
6.814

2,149
2,036
2,377
2,643
2,611
3,423
2.380
2,444

3,608
3,782
4,147
4,415
4,232
4,977
4.249
4.004

5,333
4,880
7,354
7,249
6,988
11,247
5,527
4.352

2,552
2,695
3,778
5,610
4,295
7,445
2,947
1.713

2,514
2,079
3,462
1,260
2,573
3,369
2,362
2.569

6.6
4.7

8.4
6.5

23.6
-9.0

40.3
9.1

16.5
-15.8

2009

1
2
3
4
5
6
7P
8P

2007
2008

Y-o-Y change (%)
4.6
1.7

2008

I
ll
III
IV

5.6
6.1
10.6
-2.2

6.8
3.5
6.6
8.7

3.0
4.6
10.5
-9.1

-3.7
-6.1
-22.7
-6.5

17.4
14.6
2.9
5.0

-14.1
-4.7
-32.3
-15.3

2009

I
ll

4.5
7.0

24.4
32.1

-5.0
-5.2

-16.5
-2.0

22.0
186.5

-38.4
-62.4

2008

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

10.5
3.1
3.6
4.2
7.5
6.6
8.7
8.3
14.8
5.1
-1.3
-8.6

16.5
-1.0
5.5
2.4
5.0
3.1
3.2
9.5
6.9
20.4
5.7
3.4

5.6
2.6
1.0
2.6
5.9
5.3
9.2
5.9
16.7
-3.3
-7.1
-16.2

-9.3
-7.0
3.6
-0.5
16.4
-23.0
-13.2
-8.1
-39.8
-23.7
-39.3
30.7

3.6
2.1
40.1
-5.6
50.7
2.0
-9.2
9.3
8.8
-25.8
-16.6
37.8

-15.0
-14.1
-13.4
3.4
16.0
-21.0
-8.4
-10.7
-59.6
-32.1
-46.7
23.4

-0.4
12.0
3.0
6.0
-0.7
15.2
-2.3
-6.8

25.2
34.0
16.5
34.3
17.4
44.1
17.5
14.3

-11.4
2.3
-5.1
-4.8
-10.5
-0.5
-11.3
-17.0

-15.0
-20.7
-14.7
-8.0
-18.5
17.9
2.9
-29.5

33.8
31.6
9.7
221.8
71.9
310.3
111.7
12.7

-39.7
-46.5
-31.1
-78.8
-56.3
-54.2
-31.6
-42.0

2009

1
2
3
4
5
6
7P
8P

P: Preliminary
Source: Korea National Statistical Office

Economic Bulletin

59

)019(BE8109 91.0 9 2 71:8 MP 06지이페

③cam

8. Composite indices of business cycle indicators and BSI
See graphs 13-1, 13-2 & 13-3

Y-o-Y
change (%)

Coincident
index
(2005=100)

Cycle of
coincident
index
(2005=100)

BSI (results)

BSI (prospects)

104.2
104.3
104.2
104.3
104.6
105.0
105.2
105.6
106.3
107.2
108.0
108.6

6.9
6.4
5.8
5.4
5.2
5.0
4.5
4.3
4.5
5.0
5.3
5.3

104.0
104.1
104.5
104.6
105.2
105.5
105.2
105.6
106.4
108.3
109.1
109.4

100.4
100.1
100.1
99.8
99.9
99.8
99.1
99.1
99.4
100.7
101.1
101.0

95.4
90.5
111.5
99.8
94.1
94.2
79.1
85.9
99.4
99.4
103.7
100.4

102.6
102.4
118.9
112.7
110.7
98.6
94.2
93.4
107.7
103.5
104.3
101.4

2007 1
2
3
4
5
6
7
8
9
10
11
12

109.1
109.9
110.3
111.0
111.3
112.4
113.2
114.1
114.7
115.6
116.4
116.8

5.4
5.8
5.7
6.0
5.8
6.4
6.8
7.1
7.2
7.5
7.7
7.4

109.4
109.8
110.2
110.7
111.2
112.1
113.0
113.7
113.8
114.4
115.0
116.0

100.6
100.6
100.5
100.5
100.6
100.9
101.4
101.6
101.2
101.3
101.5
101.9

85.6
87.5
109.4
105.8
104.1
100.2
95.8
94.4
101.5
108.3
106.0
98.9

96.5
93.4
112.3
107.7
110.9
105.6
99.3
102.5
111.8
116.3
112.4
103.4

2008 1
2
3
4
5
6
7
8
9
10
11
12

116.5
115.7
115.1
115.0
115.0
114.6
113.8
113.5
113.4
112.7
111.3
110.4

6.5
5.0
3.9
3.2
2.5
1.5
0.2
-0.4
-0.9
-1.8
-3.2
-4.2

116.8
116.9
117.1
117.1
117.3
117.3
117.6
117.7
117.9
117.6
115.9
113.0

102.2
101.9
101.7
101.2
101.0
100.6
100.4
100.1
99.8
99.2
97.3
94.6

95.2
95.6
101.1
101.7
98.1
79.1
80.8
83.1
76.8
64.6
53.7
52.4

103.0
94.8
102.1
98.1
104.7
95.3
83.2
80.8
98.3
84.9
63.7
55.0

2009 1
2
3
4
5
6
7
8
9
10

110.6
111.8
113.0
115.0
117.4
120.5P
122.2P
123.3P
-

-4.1
-3.0
-2.0
0.1
2.1
2.6P
1.4P
0.9P
-

110.9
110.9
111.9
113.6
114.5
116.9P
118.4P
119.4P
-

58.1
62.4
89.0
93.7
100.9
96.6
98.5
96.0
110.5
-

52.0
66.0
76.1
86.7
103.8
100.2
98.7
99.8
117.0
116.5

Period

Leading
index
(2005=100)

2006 1
2
3
4
5
6
7
8
9
10
11
12

P: Preliminary
Source: Korea National Statistical Office & The Federation of Korean Industries

60

October 2009

92.4
92.0
92.5
93.5
93.8
95.4P
96.2P
96.7P
-

)019(BE8109 91.0 9 2 71:8 MP 16지이페

③cam

9. Balance of payments (I) See graphs 5-1, 5-2, 5-3, 10-1 & 10-2
(million US$)

Period

2007
2008P

Current
balance

Goods
trade
balance

Exports

5,876.0
-6,406.4

28,168.0
5,993.9

Imports

Services
trade
balance

Income
trade
balance

Current
transfers

371,489.1
422,007.3

356,845.7
435,274.7

-19,767.6
-16,733.6

1,002.7
5,106.5

-3,527.1
-773.2

2007

I
II
III
IV

-1,013.3
-1,303.6
4,344.1
3,848.8

5,721.8
5,811.9
8,881.9
7,752.4

84,703.5
92,984.5
90,529.1
103,272.0

82,261.7
87,961.9
86,058.8
100,563.3

-5,391.3
-4,415.9
-5,256.6
-4,703.8

-618.1
-1,662.4
1,795.9
1,487.3

-725.7
-1,037.2
-1,077.1
-687.1

2008P

I
II
III
IV

-5,212.6
-134.4
-8,579.9
7,520.5

-1,219.8
5,722.7
-3,475.5
4,966.5

99,444.5
114,492.0
115,000.1
93,070.6

106,052.9
114,792.8
122,901.0
91,528.0

-5,067.2
-4,272.7
-5,691.7
-1,702.0

1,688.1
-645.6
1,356.7
2,707.3

-613.7
-938.8
-769.4
1,548.7

2009P

I
II

8,576.7
13,173.8

8,349.6
17,625.5

74,417.5
91,055.7

71,293.7
73,278.6

-1,883.3
-4,021.6

832.4
180.8

1,278.0
-610.9

2007

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

439.4
430.4
-1,883.1
-2,558.6
193.8
1,061.2
1,773.7
589.1
1,981.3
3,010.5
1,674.4
-836.1

1,505.6
2,140.0
2,076.2
1,233.1
1,476.9
3,101.9
3,250.9
2,386.2
3,244.8
4,361.0
2,723.8
667.6

28,092.6
26,225.1
30,385.8
29,944.5
31,039.9
32,000.1
30,207.4
30,998.1
29,323.5
34,433.8
35,807.9
33,030.3

27,560.1
25,406.2
29,295.5
29,596.9
29,856.9
28,508.1
29,223.2
29,642.1
27,193.6
32,741.2
33,926.1
33,895.9

-1,409.6
-2,356.4
-1,625.3
-1,371.3
-1,396.5
-1,648.1
-1,675.3
-2,050.6
-1,530.7
-1,527.0
-1,410.8
-1,766.0

610.1
867.2
-2,095.4
-2,203.8
504.0
37.4
557.1
610.7
628.1
454.1
474.8
558.4

-266.7
-220.4
-238.6
-216.6
-390.6
-430.0
-359.0
-357.2
-360.9
-277.6
-113.4
-296.1

2008P 1
2
3
4
5
6
7
8
9
10
11
12

-2,751.3
-2,350.7
-110.6
-1,581.3
-377.5
1,824.4
-2,534.0
-4,696.3
-1,349.6
4,753.0
1,906.7
860.8

-1,095.2
-599.1
474.5
1,632.3
612.5
3,477.9
217.6
-2,803.4
-889.7
2,625.7
844.8
1,496.0

32,274.6
31,178.2
35,991.8
37,850.2
39,383.2
37,258.6
40,961.2
36,610.6
37,428.3
37,111.1
28,841.6
27,117.9

36,318.0
32,624.3
37,110.6
38,260.4
38,704.5
37,827.9
42,952.5
40,420.4
39,528.1
36,098.8
28,853.6
26,575.6

-2,138.1
-2,249.6
-679.5
-979.0
-1,167.4
-2,126.3
-2,456.0
-2,000.0
-1,235.7
-54.8
-130.1
-1,517.1

768.0
700.7
219.4
-1,932.0
459.2
827.2
239.6
324.8
792.3
1,411.2
720.2
575.9

-286.0
-202.7
-125.0
-302.6
-281.8
-354.4
-535.2
-217.7
-16.5
770.9
471.8
306.0

2009P 1
2
3
4
5
6
7
8

-1,635.8
3,563.7
6,648.8
4,247.4
3,495.8
5,430.6
4,358.7
2,043.8

-1,736.5
3,106.9
6,979.2
6,131.8
4,882.0
6,611.7
6,126.4
3,463.0

21,131.1
25,396.8
27,885.5
30,326.4
28,059.6
32,611.2
31,989.8
28,966.3

24,906.0
22,575.6
23,876.0
24,740.2
23,273.1
25,413.6
27,623.3
27,262.2

-708.6
-529.0
-645.7
-1,109.3
-1,466.9
-1,445.4
-1,894.1
-1,791.3

563.5
484.6
-215.7
-855.5
358.3
678.0
481.6
587.4

245.8
501.2
531.0
80.4
-277.6
-413.7
-355.2
-215.3

P: Preliminary
Source: The Bank of Korea & Korea Customs Service

Economic Bulletin

61

)019(BE8109 91.0 9 2 71:8 MP 26지이페

③cam

10. Balance of payments (II) See graph 10-3
(million US$)
Changes in
reserve
assets

Period

Capital &
financial
account

Direct
investment

Portfolio
investment

Financial
derivative

Other
investment

Capital transfers
& acquisition of
non-financial
assets

2007
2008P

7,128.3
-50,933.3

-13,836.0
-10,594.8

-26,057.8
-15,367.5

5,444.8
-14,332.7

43,964.8
-10,599.7

-2,387.5
-38.6

-15,128.4
56,446.0

2,124.1
893.7

I
II
III
IV

6,364.1
8,948.6
-4,323.4
-3,861.0

-900.7
-2,847.3
-2,606.0
-7,482.0

-12,227.6
-1,055.9
-11,455.8
-1,318.5

1,300.5
1,067.4
1,432.9
1,644.0

19,005.7
12,466.8
8,879.2
3,613.1

-813.8
-682.4
-573.7
-317.6

-3,998.3
-6,250.1
-2,495.6
-2,384.2

-1,352.5
-1,394.9
2,475.1
2,396.4

2008P I
ll
III
IV

395.9
-4,673.7
-4,850.5
-41,805.0

-4,790.6
-2,913.5
-2,283.5
-607.2

-9,992.8
5,997.3
-12,393.1
1,021.1

-1,072.8
-805.9
-3,470.2
-8,983.8

16,489.7
-6,718.6
13,515.7
-33,886.5

-237.6
-233.0
-219.4
651.4

3,850.0
5,717.7
12,883.1
33,995.2

966.7
-909.6
547.3
289.3

2009P I
II

-548.7
8,893.7

-1,194.7
39.3

3,532.3
16,740.2

-4,893.6
-614.9

1,282.3
-7,565.6

736.9
275.5

-9,017.4
-19.541.8

989.4
-2,525.7

2007 1
2
3
4
5
6
7
8
9
10
11
12

2,179.9
-527.7
4,711.9
4,481.5
4,750.1
-283.0
-552.8
137.3
-3,907.9
-3,753.9
-373.5
266.4

-222.3
-644.1
-34.3
-402.2
-282.9
-2,162.2
-322.0
-1,427.1
-856.9
-4,514.5
-1,723.4
-1,244.1

-1,915.9
-2,366.7
-7,945.0
3,601.6
-12.6
-4,644.9
-7,912.0
-6,531.8
2,988.0
-638.2
-2,473.5
1,793.2

292.8
368.2
639.5
197.7
409.0
460.7
705.2
440.1
287.6
663.4
627.2
353.4

4,381.7
2,318.3
12,305.7
1,325.2
4,871.5
6,270.1
7,203.9
7,864.1
-6,188.8
900.5
3,269.4
-556.8

-356.4
-203.4
-254.0
-240.8
-234.9
-206.7
-227.9
-208.0
-137.8
-165.1
-73.2
-79.3

-2,350.7
-1,134.7
-512.9
-1,878.4
-4,492.9
121.2
-2,421.6
-937.6
863.4
-847.5
-493.8
-1,042.9

-268.6
1,232.0
-2,315.9
-44.5
-451.0
-899.4
1,200.7
211.2
1,063.2
1,590.9
-807.1
1,612.6

2008P 1
2
3
4
5
6
7
8
9
10
11
12

409.2
-401.3
388.0
-376.9
-732.1
-3,564.7
-5,774.6
5,312.4
-4,388.3
-24,834.8
-12,140.9
-4,829.3

-2,488.7
303.5
-2,605.4
-1,911.9
-262.6
-739.0
-1,214.3
-742.7
-326.5
-198.7
-213.9
-194.6

-3,829.7
-5,214.3
-948.8
4,069.9
7,623.0
-5,695.6
-8,855.9
-566.8
-2,970.4
5,172.5
-3,139.6
-1,011.8

-181.4
-212.1
-679.3
-498.2
-279.6
-28.1
-707.2
1.4
-2,764.4
-3,912.1
-1,558.7
-3,513.0

7,013.3
4,819.9
4,656.5
-1,948.9
-7,758.2
2,988.5
5,180.4
6,730.0
1,605.3
-26,247.2
-7,439.3
-200.0

-104.3
-98.3
-35.0
-87.8
-54.7
-90.5
-177.6
-109.5
67.7
350.7
210.6
90.1

1,436.1
1,703.1
710.8
2,411.3
2,264.6
1,041.8
9,171.4
-1,215.2
4,926.9
19,988.1
10,904.2
3,102.9

906.0
1,048.9
-988.2
-453.1
-1,155.0
698.5
-862.8
599.1
811.0
93.7
-670.0
865.6

2009P 1
2
3
4
5
6
7
8

5,139.4
-2,976.9
-2,711.2
2,161.3
7,022.9
-290.5
2,384.8
5,061.0

-55.0
-545.5
-594.2
80.4
-259.6
218.5
-1,139.3
-111.2

5,678.8
161.4
-2,307.9
7,133.0
4,263.5
5,343.7
7,940.1
3,963.5

-248.5
-2,321.2
-2,323.9
-679.8
1,341.1
-1,276.2
-272.7
-721.0

-379.4
-610.3
2,272.0
-4,532.6
1,586.9
4,619.9
-4,379.3
1,876.2

149.6
326.1
261.2
140.5
93.8
41.2
208.5
52.3

-4,488.6
-1,260.0
-3,268.8
-5,444.1
-10,248.6
-3,849.1
-5,573.6
-7,095.2

985.0
673.2
-668.8
-964.6
-270.1
-1,291.0
-1,169.9
-9.6

2007

P: Preliminary
Source: The Bank of Korea

62

October 2009

Errors and
omissions

)019(BE8109 91.0 9 2 71:8 MP 36지이페

③cam

11. Prices See graphs 11-1, 11-2 & 11-3
(2005 = 100)
Producer prices
(2005=100)

Consumer prices

Export & import prices

Period
All Items

Commodity

Service

Core

All items

Commodity

Export

Import

2007
2008

104.8
109.7

103.5
109.9

105.7
109.6

104.2
108.6

102.3
111.1

101.5
112.5

89.8
109.5

105.5
143.7

2008 1
2
3
4
5
6
7
8
9
10
11
12

106.8
107.2
108.2
108.8
109.7
110.4
111.2
111.0
111.1
111.0
110.7
110.7

106.3
106.6
107.1
108.2
110.0
111.5
112.9
112.2
112.1
111.7
110.3
110.2

107.1
107.5
108.9
109.2
109.5
109.7
110.1
110.3
110.4
110.6
110.9
111.0

105.6
106.0
107.2
107.7
108.2
108.7
109.2
109.4
109.9
110.1
110.4
110.9

104.7
105.7
107.1
109.4
111.5
113.3
115.5
115.2
114.8
114.4
111.8
109.9

104.4
105.7
107.5
110.3
113.1
115.5
118.1
117.6
117.0
116.7
113.3
110.9

93.7
94.8
100.8
103.3
110.7
112.0
112.1
110.5
115.6
124.5
120.4
115.0

118.4
121.6
131.5
136.5
151.1
155.2
156.8
149.9
153.4
159.7
149.1
140.6

2009 1
2
3
4
5
6
7
8
9

110.8
111.6
112.4
112.7
112.7
112.6
113.0
113.4
113.5

110.4
112.1
113.3
113.8
113.6
113.3
113.9
114.5
114.6

111.1
111.2
111.8
112.0
112.0
112.1
112.5
112.7
112.7

111.1
111.5
112.0
112.2
112.4
112.5
112.7
112.8
112.9

109.6
110.3
110.8
111.0
110.1
109.8
111.1
111.7
111.8

110.4
111.5
112.1
112.1
111.0
110.5
112.1
112.9
113.0

111.1
116.5
118.4
112.2
106.3
108.3
109.0
109.3
-

138.1
143.5
145.4
134.1
130.0
136.7
136.6
139.5
-

2007
2008

2.5
4.7

2.0
6.2

2.9
3.7

2.4
4.2

1.4
8.6

1.0
10.8

-2.1
21.8

4.5
36.2

2008 1
2
3
4
5
6
7
8
9
10
11
12

3.9
3.6
3.9
4.1
4.9
5.5
5.9
5.6
5.1
4.8
4.5
4.1

4.8
4.2
4.7
5.3
7.0
8.6
9.3
8.4
7.1
6.3
5.1
4.4

3.2
3.2
3.5
3.5
3.6
3.7
3.9
4.0
3.9
3.9
4.1
4.0

2.8
2.8
3.3
3.5
3.9
4.3
4.6
4.7
5.1
5.2
5.3
5.6

4.2
5.1
6.0
7.6
9.0
10.5
12.5
12.3
11.3
10.7
7.8
5.6

4.8
6.1
7.3
9.3
11.3
13.6
16.1
15.6
14.4
14.0
9.9
6.9

5.8
7.6
13.4
15.7
24.0
25.2
25.1
21.9
27.4
38.6
31.5
25.0

21.2
22.2
28.0
31.3
44.6
49.0
50.6
42.6
42.6
47.1
32.0
22.4

2009 1
2
3
4
5
6
7
8
9

3.7
4.1
3.9
3.6
2.7
2.0
1.6
2.2
2.2

3.9
5.2
5.8
5.2
3.3
1.6
0.9
2.0
2.2

3.7
3.4
2.7
2.6
2.3
2.2
2.2
2.2
2.1

5.2
5.2
4.5
4.2
3.9
3.5
3.2
3.1
2.7

4.7
4.4
3.5
1.5
-1.3
-3.1
3.8
-3.0
-2.6

5.7
5.5
4.3
1.6
-1.9
-4.3
-5.1
-4.0
-3.4

18.6
22.9
17.4
7.7
-4.1
-3.3
-2.7
-1.1
-

16.7
18.0
10.6
-1.8
-13.9
-11.9
-12.9
-7.0
-

Y-o-Y change (%)

Source: The Bank of Korea

Economic Bulletin

63

)019(BE8109 91.0 9 2 71:8 MP 46지이페

③cam

12. Employment See graphs 8-1, 8-2 & 8-3

Wage workers (thous.)

Economically active persons (thous.)
Period

Employed persons (thous.)

Unemployment (%)
Regular

Temporary

Daily

All industry Manufacturing S.O.C&service
2007
2008

24,216
24,347

23,433
23,577

4,014
3,963

17,679
17,906

3.2
3.2

15,970
16,206

8,620
9,007

5,172
5,079

2,178
2,121

2008 1
2
3
4
5
6
7
8
9
10
11
12

23,738
23,703
24,114
24,495
24,692
24,727
24,673
24,380
24,456
24,582
24,566
24,032

22,964
22,884
23,305
23,711
23,939
23,963
23,903
23,617
23,734
23,847
23,816
23,245

4,022
4,017
3,999
4,001
3,987
3,993
3,975
3,899
3,928
3,945
3,897
3,888

17,651
17,510
17,732
17,929
18,046
18,067
18,088
17,872
17,951
18,005
18,086
17,935

3.3
3.5
3.4
3.2
3.0
3.1
3.1
3.1
3.0
3.0
3.1
3.3

16,032
15,836
15,993
16,258
16,405
16,385
16,363
16,104
16,221
16,314
16,377
16,189

8,815
8,804
8,898
8,894
9,010
9,039
9,054
9,107
9,142
9,138
9,111
9,068

5,115
5,055
5,023
5,127
5,165
5,132
5,163
4,970
5,015
5,034
5,071
5,082

2,102
1,977
2,073
2,238
2,231
2,214
2,146
2,027
2,064
2,142
2,195
2,040

2009 1
2
3
4
5
6
7
8
9

23,709
23,667
24,062
24,456
24,658
24,927
24,756
24,525
24,630

22,861
22,742
23,110
23,524
23,720
23,967
23,828
23,620
23,805

3,895
3,842
3,813
3,846
3,846
3,836
3,802
3,761
3,810

17,663
17,539
17,701
17,899
18,016
18,251
18,210
18,048
18,155

3.6
3.9
4.0
3.8
3.8
3.9
3.7
3.7
3.4

16,053
15,953
16,076
16,353
16,484
16,736
16,589
16,479
16,687

9,102
9,194
9,174
9,227
9,316
9,340
9,383
9,472
9,606

4,982
4,862
4,941
5,051
5,076
5,281
5,255
5,117
5,151

1,969
1,897
1,961
2,076
2,092
2,115
1,952
1,890
1,931

2007
2008

1.0
0.5

1.2
0.6

-1.0
-1.3

2.2
1.3

-

2.7
1.5

5.1
4.5

0.6
-1.8

-1.2
-2.6

2008 1
2
3
4
5
6
7
8
9
10
11
12

0.7
0.7
0.6
0.7
0.6
0.5
0.5
0.7
0.5
0.4
0.4
0.2

1.0
0.9
0.8
0.8
0.8
0.6
0.6
0.7
0.5
0.4
0.3
-0.1

-0.6
-0.3
-0.4
-0.6
-0.8
-1.1
-1.2
-1.2
-1.6
-2.3
-2.2
-3.3

1.8
1.6
1.4
1.4
1.5
1.4
1.3
1.3
1.1
1.2
0.7
0.6

-

2.4
1.9
1.7
1.8
1.9
1.6
1.5
1.4
1.0
1.0
1.0
0.5

5.2
4.8
5.5
5.2
5.6
4.9
4.4
3.9
3.6
3.5
3.6
3.6

-1.2
-1.4
-3.2
-2.1
-1.8
-1.6
-1.7
-1.5
-1.7
-1.7
-2.0
-1.8

0.2
-1.9
-1.8
-1.7
-3.2
-3.3
-2.4
-2.3
-3.2
-2.8
-2.5
-6.3

2009 1
2
3
4
5
6
7
8
9

-0.1
-0.2
-0.2
-0.2
-0.1
0.8
0.3
0.6
0.7

-0.4
-0.6
-0.8
-0.8
-0.9
0.0
-0.3
0.0
0.3

-3.2
-4.4
-4.7
-3.9
-3.5
-3.9
-4.3
-3.5
-3.0

0.1
0.2
-0.2
-0.2
-0.2
1.0
0.7
1.0
1.1

-

0.1
0.7
0.5
0.6
0.5
2.1
1.4
2.3
2.9

3.3
4.4
3.1
3.7
3.4
3.3
3.6
4.0
5.1

-2.6
-3.8
-1.6
-1.5
-1.7
2.9
1.8
3.0
2.7

-6.3
-4.1
-5.4
-7.2
-6.2
-4.5
-9.1
-6.7
-6.5

Y-o-Y change (%)

Source: Korea National Statistical Office

64

October 2009

)019(BE8109 91.0 9 2 71:8 MP 56지이페

③cam

13. Financial indicators See graphs 9-1 & 9-4
(period average)
Yields (%)

Stock

Period
Call rate
(1 day)

CD
(91 days)

Corporate bonds
(3 years, AA-)

Treasury bonds
(3 years)

Treasury bonds
(5 years)

KOSPI
(end-period)

2005 1
2
3
4
5
6
7
8
9
10
11
12

3.3
3.3
3.3
3.3
3.3
3.3
3.3
3.3
3.3
3.4
3.5
3.7

3.5
3.6
3.6
3.5
3.5
3.5
3.5
3.5
3.7
3.9
4.0
4.0

4.1
4.6
4.5
4.3
4.1
4.2
4.5
4.8
4.9
5.2
5.5
5.5

3.7
4.2
4.0
3.9
3.7
3.8
4.1
4.3
4.5
4.8
5.1
5.1

3.9
4.5
4.3
4.1
3.9
4.0
4.4
4.7
4.8
5.1
5.4
5.3

932.70
1,011.40
965.70
911.30
970.20
1,008.20
1,111.30
1,083.30
1,221.00
1,158.10
1,297.40
1,379.40

2006 1
2
3
4
5
6
7
8
9
10
11
12

3.7
3.9
4.0
4.0
4.0
4.2
4.2
4.4
4.5
4.5
4.5
4.5

4.2
4.3
4.3
4.3
4.4
4.5
4.6
4.7
4.6
4.6
4.6
4.8

5.5
5.3
5.3
5.2
5.1
5.2
5.2
5.1
5.0
4.9
5.1
5.2

5.0
4.9
4.9
5.0
4.8
4.9
4.9
4.8
4.7
4.6
4.7
4.8

5.3
5.0
5.1
5.2
4.9
5.0
5.0
4.8
4.8
4.7
4.8
4.9

1,399.80
1,371.60
1,359.60
1,419.70
1,371.70
1,295.70
1,297.80
1,352.70
1,371.40
1,364.60
1,432.20
1,434.50

2007 1
2
3
4
5
6
7
8
9
10
11
12

4.6
4.6
4.6
4.7
4.6
4.5
4.7
4.9
5.0
5.0
5.0
5.0

4.9
5.0
4.9
5.0
5.0
5.0
5.1
5.2
5.3
5.3
5.4
5.7

5.3
5.3
5.2
5.3
5.5
5.6
5.8
5.7
5.9
6.0
6.2
6.7

5.0
4.9
4.8
4.9
5.1
5.2
5.4
5.3
5.4
5.4
5.5
5.9

5.0
4.9
4.8
5.0
5.1
5.4
5.4
5.3
5.4
5.5
5.6
5.9

1,360.20
1,417.30
1,452.60
1,542.24
1,700.91
1,743.60
1,933.27
1,873.24
1,946.48
2,064.95
1,906.00
1,897.10

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

6.6
6.3
6.1
5.9
6.2
6.7
7.0
7.1
7.5
8.0
8.6
8.4

5.4
5.1
5.2
5.0
5.3
5.7
6.0
5.8
5.8
5.1
5.0
4.0

5.5
5.1
5.2
5.0
5.4
5.8
6.0
5.8
5.8
5.2
5.2
4.3

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

2009 1
2
3
4
5
6
7
8
9

2.4
2.1
1.8
1.8
1.9
1.9
1.9
2.0
2.0

3.2
2.7
2.5
2.4
2.4
2.4
2.4
2.5
2.6

7.3
7.1
6.1
5.7
5.2
5.2
5.5
5.7
5.6

3.4
3.8
3.7
3.8
3.8
4.1
4.1
4.4
4.4

4.0
4.6
4.5
4.4
4.5
4.7
4.6
4.9
4.9

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

Source: The Bank of Korea

Economic Bulletin

65

)019(BE8109 91.0 9 2 71:8 MP 6지이페

③cam

14. Monetary indicators See graph 9-5
(period average)

Period

(billion won)

Reserve money

M1

M2

Lf

2007
2008

48,543.7
52,272.8

312,832.3
307,273.6

1,197,094.8
1,367,713.4

1,603,516.0
1,794,841.2

2008 1
2
3
4
5
6
7
8
9
10
11
12

50,260.5
52,563.7
49,571.5
50,683.6
50,502.5
51,274.4
50,600.6
51,981.0
53,303.9
52,976.5
54,254.5
59,300.7

305,868.0
304,580.7
299,792.8
298,474.4
304,239.8
305,514.3
306,584.4
304,538.7
307,067.8
310,565.5
316,330.9
323,725.9

1,286,407.8
1,309,161.7
1,324,032.7
1,339,434.9
1,356,612.9
1,369,728.1
1,378,914.3
1,386,101.1
1,395,719.2
1,403,984.2
1,426,165.1
1,436,298.3

1,711,196.8
1,726,407.2
1,743,481.7
1,762,945.3
1,782,721.1
1,798,774.9
1,801,540.6
1,810,535.1
1,831,313.4
1,845,717.7
1,859,348.8
1,864,111.6

2009 1
2
3
4
5
6
7
8

64,040.6
63,061.7
65,669.5
61,379.9
60,082.5
59,530.3
59,420.2
60,570.3

331,358.0
334,521.7
342,777.0
350,446.0
355,922.0
362,111.3
363,421.4
361,012.4

1,440,275.8
1,457,931.3
1,470,443.1
1,482,009.7
1,491,542.7
1,501,898.3
1,512,822.5
1,524,879.7

1,868,843.3
1,879,102.7
1,889,388.6
1,897,923.7
1,912,745.6
1,925,341.0
1,939,962.4
1,956,088.3

Y-o-Y change (%)
2007
2008

16.5
7.7

-5.2
-1.8

11.2
14.3

10.2
11.9

2008 1
2
3
4
5
6
7
8
9
10
11
12

5.0
6.2
1.3
6.7
5.0
7.0
6.5
8.7
9.1
7.3
11.1
17.8

-13.5
-13.2
-10.6
-2.3
1.0
1.0
1.4
2.2
2.7
4.2
5.5
5.2

12.5
13.4
13.9
14.9
15.8
15.1
14.8
14.7
14.5
14.2
14.0
13.1

11.4
11.6
11.9
12.7
13.1
12.7
12.1
11.8
12.2
11.9
11.4
10.4

2009 1
2
3
4
5
6
7
8

27.4
20.0
32.5
21.1
19.0
16.1
17.4
16.5

8.3
9.8
14.3
17.4
17.0
18.5
18.5
18.5

12.0
11.4
11.1
10.6
9.9
9.6
9.7
10.0

9.2
8.8
8.4
7.7
7.3
7.0
7.7
8.0

P: Preliminary
Source: The Bank of Korea

66

October 2009

)019(BE8109 91.0 9 2 71:8 MP 76지이페

③cam

15. Exchange rates See graphs 9-2 & 9-3

₩ /US$

₩ /100¥

₩ /Euro

Period
End-period

Average

End-period

Average

End-period

Average

2007
2008

938.2
1,257.5

929.2
1,102.6

833.3
1,393.9

789.8
1,076.6

1,381.3
1,776.2

1,272.7
1,606.8

2008 1
2
3
4
5
6
7
8
9
10
11
12

943.9
937.3
991.7
999.7
1,031.4
1,043.4
1,008.5
1,081.8
1,187.7
1,291.4
1,482.7
1,257.5

942.4
944.7
979.9
986.7
1,036.7
1,029.3
1,019.1
1,041.5
1,130.4
1,326.9
1,390.1
1,373.8

889.1
889.7
1,000.2
961.8
977.0
981.8
932.9
987.9
1,144.2
1,306.0
1,553.8
1,393.9

872.9
880.6
972.3
962.4
994.2
963.0
954.2
953.0
1,060.6
1,327.1
1,435.1
1,503.3

1,402.3
1,423.5
1,565.0
1,556.2
1,599.6
1,647.1
1,571.0
1,590.3
1,707.2
1,664.4
1,912.6
1,776.2

1,386.2
1,395.4
1,519.5
1,555.1
1,614.6
1,601.7
1,606.4
1,561.6
1,627.6
1,765.3
1,768.9
1,846.1

2009 1
2
3
4
5
6
7
8
9

1,368.5
1,516.4
1,377.1
1,348.0
1,272.9
1,284.7
1,240.5
1,244.9
1,188.7

1,346.1
1,429.5
1,462.0
1,341.9
1,258.7
1,261.4
1,264.0
1,238.4
1,219.2

1,521.0
1,541.1
1,414.8
1,382.9
1,314.1
1,336.3
1,299.2
1,332.8
1,318.8

1,487.2
1,546.1
1,495.7
1,356.2
1,304.5
1,305.5
1,338.1
1,304.3
1,332.4

1,768.7
1,930.1
1,816.4
1,786.8
1,772.7
1,809.3
1,745.9
1,779.1
1,734.3

1,793.8
1,829.9
1,904.0
1,771.6
1,719.1
1,767.8
1,778.8
1,776.3
1,774.2

Y-o-Y change (%)
2007
2008

0.9
34.0

-2.8
18.7

6.6
67.3

-3.9
36.3

-13.0
28.6

6.1
26.2

2008 1
2
3
4
5
6
7
8
9
10
11
12

0.3
-0.1
5.5
7.6
10.9
12.6
9.2
15.1
29.0
42.3
59.5
34.0

0.6
0.8
3.9
5.9
11.7
10.9
10.9
11.5
21.2
44.9
51.6
47.7

15.0
12.1
25.5
23.6
27.8
30.5
20.4
22.0
43.6
65.1
83.6
67.3

12.2
13.4
20.8
22.8
29.4
27.2
26.3
19.2
30.8
67.8
73.7
81.5

14.9
14.6
24.8
22.8
28.1
32.2
24.0
24.0
31.0
27.1
39.4
28.6

13.9
13.9
21.6
23.6
28.7
28.7
27.5
22.7
26.1
35.5
31.5
36.2

2009 1
2
3
4
5
6
7
8
9

45.0
61.8
38.9
34.8
23.4
23.1
23.0
15.1
0.1

42.8
51.3
49.2
36.0
21.4
22.5
24.0
18.9
7.9

71.1
73.2
41.5
43.8
34.5
36.1
39.3
34.9
15.3

70.4
75.6
53.8
40.9
31.2
35.6
40.2
36.9
25.6

26.1
35.6
16.1
14.8
10.8
9.9
11.1
11.9
1.6

29.4
31.1
25.3
13.9
6.5
10.4
10.7
13.1
9.0

Source: The Bank of Korea

Economic Bulletin

67

EB(0910)_˙¥`

2009.10.19 8:21 PM

˘

` 2

mac¤Ø

Editor-in-Chief
Park, Chul-Kyu (MOSF)
Editorial Board
Kim, Young-Min (MOSF)
Kim, Dong-Yule (KDI)
Lee, In-Sook (KDI)
Coordinators
Kim, Dae-Hyun (MOSF)
Cho, Hyun-Joo (KDI)
Editors
Lim, Keun-Hyuk (MOSF)
Kang, Ji-Eun (KDI)

Useful Internet Websites
Economy-related Websites Recommended

Ministry of Strategy and Finance
http://english.mosf.go.kr
Ministry of Knowledge Economy
http://www.mke.go.kr/language/eng
Financial Services Commission
http://www.fsc.go.kr/eng
Financial Supervisory Service
http://english.fss.or.kr
Fair Trade Commission
http://eng.ftc.go.kr
Ministry of Labor
http://english.molab.go.kr/english
The Bank of Korea
http://www.bok.or.kr
Korea National Statistical Office
http://www.nso.go.kr/eng2006

EB(0910)_˙¥`

2009.10.19 8:21 PM

˘

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