Vol. 31 | No.

11

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
Korea-EU FTA

40

Economic News Briefing

45

Statistical Appendices

49

The Green Book
Current Economic Trends

Overview
The Korean economy showed better-than-expected performance in the third quarter,
growing 2.9 percent from the previous quarter, while the economic indicators such as
production, consumption, investment and exports rose noticeably in September.
Mining and manufacturing production in September improved greatly, increasing 5.4
percent month-on-month, or 11.0 percent year-on-year, affected by summer vacations in
August and a shift of Chuseok holidays falling on October. Service output also gained 2.6
percent month-on-month, or 4.2 percent year-on-year, due to increased working days.
Consumer goods sales grew 1.8 percent month-on-month, or 6.7 percent year-on-year in
September, backed by a surge in durable goods sales, in particular automobile sales.
Facilities investment soared in September, registering a rise of 18.8 percent month-onmonth, or 5.8 percent year-on-year, as both machinery and transportation equipment
investments improved considerably. Construction completed turned around, rising 8.4
percent month-on-month, or 6.0 percent year-on-year, thanks to strong performance in the
private sector.
Exports in October, despite reduced working days caused by Chuseok holidays, remained on
a recovery trend, falling 8.3 percent year-on-year, as major exports including semiconductors
increased.
The total number of workers hired gained 71,000 year-on-year in September, a huge
increase from the previous month’s rise of 3,000, thanks to government’s job creating
measures, while unemployment dropped from the previous month’s 3.7 percent to 3.4
percent.
Consumer prices in October slowed a year-on-year increase from 2.2 percent a month earlier
to 2.0 percent, as prices of agricultural, livestock and fishery products as well as oil product
prices stabilized.
October financial markets saw stock prices fall in line with global stock market adjustment,
foreign exchange rates rise slightly, and interest rates increase reflecting the real economy.
To sum up, although the domestic economy improved markedly amid the global economy
gradually picking up, affected by temporary factors such as a shift of Chuseok holidays,
uncertainties surrounding sustainable recovery still exist.
The Korean government will, considering external factors and other uncertainties in the
economy, keep pursuing expansionary fiscal policies and minimize the 2009 budget
transferred to 2010 or left unspent, while closely monitoring any signs of economic
instability, in particular the overheated real estate market. 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 efforts to further develop the Korean economy.
Economic Bulletin

3

1. Global economy
The global economic recovery remained on upward track as the third-quarter growth in major
countries such as the US and China improved from the previous quarter. On October 29, the
IMF revised up Asia’s growth outlook for 2009 and 2010 to 2.8 percent and 5.8 percent,
respectively, higher than its previous forecasts of 1.2 percent and 4.3 percent in May.

US

The US economy saw the real GDP in the third quarter increase for the first time in five
quarters, registering a quarter-on-quarter growth of 3.5 percent (annualized, advanced
estimates).
Construction investment for housing surged 23.4 percent quarter-on-quarter (annualized) as
housing demand soared due to the tax credit for first-time home buyers.
Personal consumption expenditure increased 3.4 percent quarter-on-quarter (annualized) as
automobile sales rose backed by the Cash for Clunkers program.
New home sales in September fell 3.6 percent month-on-month, while existing home sales
increased 9.4 percent from a month earlier with home prices continuing the upward trend.
Job markets remained sluggish in September, as non-farm payrolls declined at a faster pace
and unemployment stayed at the 9 percent range, posting 9.8 percent.
The Federal Reserve said in October Beige Book that the economy was slowly clawing out of
a recession and showed either stabilization or modest improvements in many sectors such
as residential real estate and manufacturing. However, the Fed gave a grim assessment of
commercial real estate, consumer spending and loan demand.
(Percentage change from previous period)
2008

Real GDP

1

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

2009

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Sep

-5.4

-6.4

-0.7

3.5

-

0.4

-0.7

1.5

-2.7

-0.2

-0.6

0.1

-3.5

-3.1

0.6

-0.9

3.4

-

1.6

1.9

1.4

-6.1

-19.5

-39.2

-9.6

-2.5

-

-22.9

-28.2

-15.8

-15.9

-23.2

-38.2

-23.3

23.4

-

-1.8

0.1

-1.2

-2.3

-3.4

-5.2

-2.7

1.3

0.7

-0.7

-0.5

0.4

-1.4

-6.6

-1.4

-0.3

1.6

0.5

New home sales

-37.4

-14.8

-9.6

-9.8

-15.0

-13.5

9.9

10.5

-3.6

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

-257

-113

-153

-208

-553

-691

-422

-256

-263

3.9

4.2

4.3

5.2

1.5

-0.2

-0.9

-1.6

0.2

Retail sales

Consumer prices (y-o-y, %)
1. Annualized rate (%)
2. Monthly average
Source: US Department of Commerce

4

November 2009

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

Economic Bulletin

5

China

Despite a fall in exports, China’s economy posted year-on-year growth of 8.9 percent in the
third quarter, as brisk domestic demand including consumption and investment led to an
increase in production.
Although exports had continued the downward trend since November 2008, the pace of
decline considerably slowed in September, and home prices accelerated the pace of growth.
Home prices (y-o-y, %)
-1.3 (Mar 2009)

-1.1 (Apr)

-0.6 (May)

0.2 (Jun)

1.0 (Jul)

2.0 (Aug)

2.8 (Sep)

(Percentage change from same period in previous year)
2008
Real GDP

Annual

Q1

Q2

2009
Q3

Q4

Q1

Q2

Q3

Aug

Sep

9.0

10.6

10.1

9.0

6.8

6.1

7.9

8.9

-

-

Fixed asset investment (accumulated)

26.1

25.9

26.8

27.6

26.1

28.6

33.6

33.3

33.0

33.3

Retail sales

21.6

20.6

22.2

23.2

20.6

15.0

15.0

15.4

15.4

15.5

Industrial production

12.9

16.4

15.9

13.0

6.4

5.1

9.1

12.4

12.3

13.9

Exports

17.2

21.4

22.4

22.9

4.1

-19.7

-23.5

-20.7

-23.4

-15.2

Consumer prices

5.9

8.0

7.8

5.3

2.5

-0.6

-1.5

-1.3

-1.2

-0.8

Producer prices

6.9

6.9

8.4

9.7

2.5

-4.6

-7.2

-7.7

-7.9

-7.0

Source: China National Bureau of Statistics

Japan

Japan saw a gradual economic recovery continuing in September, as retail sales fell at a
slower pace and month-on-month industrial production improved for the seventh
consecutive month.
The Bank of Japan (BOJ) said in the Regional Economic Report released on October 19 that
the economy started to show signs of slight improvement in the previous quarter, as public
investment increased and exports and production picked up.
(Percentage change from previous period)
2009

2008
Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Aug

Sep

Real GDP

-0.7

0.9

-0.7

-1.3

-3.4

-3.3

0.6

-

-

-

Industrial and mining production

-3.4

-0.7

-0.8

-1.3

-12.0

-22.2

8.3

7.2

1.6

1.4

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

0.3

1.8

0.2

0.8

-1.5

-3.9

-0.9

-3.4

-1.8

-1.4

-3.5

5.9

1.8

3.2

-23.1

-46.9

-38.5

-34.4

-36.0

-30.6

1.4

1.0

1.4

2.2

1.0

-0.1

-1.0

-2.2

-2.2

-2.2

Source: Japan's Statistics Bureau and Statistics Centre

Eurozone

The eurozone economy showed signs of stabilizing, as indicators reflecting the real economy
improved, in particular industrial production which increased for four months in a row.
(Percentage change from previous period)
2008

2009

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Aug

Sep

0.8

0.8

-0.3

-0.3

-1.8

-2.5

-0.2

-

-

-

Industrial production

-1.8

1.8

-2.2

-2.8

-6.2

-7.5

-3.0

-

1.1

-

Retail sales

-0.8

0.1

-0.6

-0.6

-0.7

-0.8

-0.3

-

-0.2

-

Exports (y-o-y, %)

3.7

6.8

8.5

5.7

-5.0

-21.3

-24.0

-

-23.0

-

Consumer prices (y-o-y, %)

3.3

3.3

3.6

3.8

2.3

1.0

0.2

-0.4

-0.2

-0.3

Real GDP

Source: Eurostat

6

November 2009

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

Economic Bulletin

7

2. Private consumption
Private consumption (advanced estimates of GDP) in the third quarter increased 1.4 percent
quarter-on-quarter, or 0.6 percent year-on-year.
(Percentage change from same period in previous year)
2007

Private consumption

2

(Seasonally adjusted)3
1. Preliminary
2. National accounts
Source: The Bank of Korea

20081

Annual

Annual

Q1

5.1

0.9

-

-

20091

Q2

Q3

Q4

Q1

Q2

Q3

4.0

2.3

1.4

-3.7

-4.4

-0.8

0.6

1.1

-0.2

0.0

-4.6

0.4

3.6

1.4

3. Percentage change from previous period

Consumer goods sales in September rose 1.8 percent month-on-month, or 6.7 percent yearon-year, thanks to non-durable goods sales as well as durable goods sales, posting an
increase for five straight months.
On a month-on-month basis, durable and non-durable goods sales led a rise in consumer
goods sales, increasing 9.0 percent and 1.3 percent respectively, whereas semi-durable
goods sales dropped 6.6 percent. On a year-on-year basis, durable goods sales grew 26.5
percent thanks to a 65.8 percent surge in automobile sales, while sales of semi-durable and
non-durable goods were up 2.6 percent and 0.3 percent, respectively.
(Percentage change from same period in previous year)
2008

2009

Annual

Q2

Q3

Q4

Q1

Q2

Q3

Jul

Aug1

Sep1

Consumer goods sales

1.0

2.9

1.4

-4.2

-4.9

1.6

3.5

1.8

1.9

6.7

(Seasonally adjusted)

-

-1.3

-0.1

-3.5

0.4

5.0

1.5

-1.7

-0.4

1.8

1.9

8.7

0.0

-9.9

-13.6

4.0

10.1

0.1

6.0

26.5

- Durable goods

2

3

·Automobiles

-2.0

7.1

-4.9

-19.5

-21.3

18.4

29.7

9.9

19.4

65.8

- Semi-durable goods4

-2.4

-2.1

0.6

-9.9

-0.9

0.3

0.2

-2.2

0.2

2.6

- Non-durable goods

0.7

0.3

1.2

-0.4

-1.4

1.0

2.0

4.9

1.1

0.3

5

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 goods: Food, medicine, cosmetics, fuel, tobaccos, etc.
Source: Statistics Korea

Sales at department stores continued to grow year-on-year, rising 8.1 percent, while sales at
specialized retailers significantly improved by 8.8 percent.
(Percentage change from same period in previous year)
2008

- Department stores
- Large discounters
- Specialized retailers

2

2009

Annual

Q2

Q3

Q4

Q1

Q2

Q3

0.5

3.7

0.2

-5.0

1.4

2.8

6.2

3.3

7.1

8.1

2.2

3.1

-0.2

-1.2

-5.0

-2.9

-3.2

-5.3

-2.2

-2.0

-1.7

0.7

-1.0

-8.1

-6.9

2.6

4.6

3.5

1.4

8.8

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

8

November 2009

1

Jul

Aug1

Sep1

2-1

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

2-2

Consumer goods sales
Source: Statistics Korea (industrial activity trend)

2-3

Consumer goods sales by type
Source: Statistics Korea (industrial activity trend)

Economic Bulletin

9

In October, consumer goods sales are expected to maintain its upward streak year-on-year,
given the improvements in advanced estimates and consumer sentiment.
Domestic credit card spending stayed on the upward trajectory, but decelerated the pace
from the previous month’s 14.7 percent to 9.4 percent.
Sales at department stores grew 11.4 percent from the previous month, accelerating an
increase by 2.8 percent points and posting a rise for eight consecutive months. Sales at
large discounters rose 7.4 percent in October, reversing from a four month decline during
June to September.
Domestic sales of Korean cars jumped 23.8 percent year-on-year, thanks to release of new
cars and demand surging before the expiration of the tax break for new car purchase.
Gasoline sales were up 16.9 percent year-on-year, due to extra demand during Chuseok
holidays and a low base effect.
Value of credit card use (y-o-y, %)
8.7 (May 2009)

12.4 (Jun)

7.3 (Jul)

10.9 (Aug)

14.7 (Sep)

9.4 (Oct)

Department store sales (y-o-y, %)
5.4 (May 2009)

3.6 (Jun)

4.0 (Jul)

7.6 (Aug)

8.6 (Sep)

11.4 (Oct)

Discount store sales (y-o-y, %)
1.6 (May 2009)

-1.4 (Jun)

-6.0 (Jul)

-1.5 (Aug)

-6.0 (Sep)

7.4 (Oct)

Domestic sales of Korean automobiles (y-o-y, %)
15.3 (May 2009)

46.0 (Jun)

10.8 (Jul)

13.0 (Aug)

76.0 (Sep)

23.8 (Oct)

Domestic sales of gasoline (y-o-y, %)
9.7 (May 2009)

11.1 (Jun)

15.8 (Jul)

4.0 (Aug)

0.1 (Sep)

16.9 (Oct)

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

Low inflation, stable financial markets, recovering consumer sentiment as well as improving
employment backed by the government’s job creating measures are all expected to have a
good effect on consumer spending.

Employment (y-o-y, thousand)
-219 (May 2009)

4 (Jun)

-76 (Jul)

3 (Aug)

1.6 (Jul)

2.2 (Aug)

71 (Sep)

Consumer prices (y-o-y, %)
2.7 (May 2009)

2.0 (Jun)

2.2 (Sep)

2.0 (Oct)

The won/dollar exchange rate (monthly average)
1,259 (May 2009)

1,261 (Jun)

1,264 (Jul)

1,238 (Aug)

1,219 (Sep)

1,175 (Oct)

1,460 (Jul)

1,579 (Aug)

1,659 (Sep)

1,631 (Oct)

KOSPI (monthly average)
1,401(May 2009)

1,395 (Jun)

Consumer Sentiment Index (CSI)
105 (May 2009)

10

November 2009

106 (June)

109 (Jul)

114 (Aug)

114 (Sep)

117 (Oct)

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

Economic Bulletin

11

3. Facility investment
Facility investment (advanced estimates of GDP) in the third quarter posted a quarter-onquarter increase of 8.9 percent, slowing a year-on-year loss at 8.7 percent.
(Percentage change from same period in previous year)
2007

2008

20091

1

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

9.3

-2.0

1.5

1.1

4.3

-14.0

-23.5

-15.9

-8.7

-

-

-0.4

0.4

0.2

-14.2

-11.2

10.1

8.9

- Machinery

9.2

-2.7

-1.2

-0.1

6.5

-15.3

-24.0

-19.6

-

- Transportation equipment

9.6

0.4

12.2

5.1

-3.6

-9.9

-21.8

-3.2

-

Facility investment2
(Seasonally adjusted)3

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

3. Percentage change from previous period

Year-on-year facility investment in September rose for the first time since September 2008,
posting an increase of 5.8 percent, thanks to improvement in machinery investment such as
investments in semi-conductors and liquid crystal display devices, and a rise in
transportation equipment investment affected by a spike in automobile sales. Month-onmonth, the index gained 18.8 percent.
(Percentage change from same period in previous year)
2007

Facility investment (estimated)
(Seasonally adjusted)

2

- Machinery
- Transportation equipment

2008

2009

Annual

Annual

Q4

Q1

Q2

Q3

8.2

-4.3

-13.4

-17.7

-13.4

-

-

-9.3

-11.6

7.5

-5.7

-14.5

-21.9

Jul

Aug1

Sep1

-9.9

-18.8

-15.5

5.8

6.6

4.5

-12.3

4.2

18.8

-19.5

-16.9

-24.4

-20.7

-5.3

1

11.3

1.5

-9.0

0.4

11.3

19.8

2.1

7.2

55.5

20.6

-5.5

-47.3

-33.8

-14.1

6.5

7.3

-15.7

31.9

- Public

-11.4

4.9

-3.5

150.5

30.9

281.3

498.8

-15.7

129.5

- Private

24.5

-6.2

-53.9

-42.9

-18.5

-12.4

-32.9

-15.7

25.5

21.7

18.9

6.3

-28.0

-27.7

-23.8

-26.6

-25.7

-23.8

1.7

-2.2

-15.6

-18.9

-8.5

1.5

-1.9

-1.8

8.1

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)
Sources: Statistics Korea, Korea International Trade Association

Facility investment in October is projected to continue the upward trend, considering the
leading indices. Machinery orders in the private sector grew for the first time since July
2008, and facility investment adjustment pressure shifted to a rise for the first time since the
global economic crisis. Corporate investment sentiment also continued its climb, with the
October BSI projection returning to the base number for the first time since July 2008.

2009

Business survey indices (base=100)
Manufacturing facility investment projections
Source: The Bank of Korea

12

November 2009

Jul

Aug

Sep

Oct

94

97

95

100

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: Statistics Korea (industrial activity trend)

3-3

Machinery imports
Source: Korea International Trade Association (KITA)

Economic Bulletin

13

4. Construction investment
Construction investment (advanced estimates of GDP) in the third quarter rose 2.5 percent
year-on-year, but declined 2.1 percent quarter-on-quarter.
(Percentage change from same period in previous year)
2007

Construction investment
(Seasonally adjusted)

2

- Civil engineering works

20091

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

1.4

-2.1

-1.9

-0.3

0.2

-5.6

1.6

3.7

2.5

-

-

-2.5

-0.3

0.1

-3.0

5.2

1.7

-2.1

-0.0

-4.3

-1.2

-0.1

-0.1

-14.3

-11.1

-3.5

-

3.8

1.3

-3.2

-0.7

0.7

5.7

24.9

14.3

-

3

- Building construction

2008

1

1. Preliminary
2. National accounts
3. Percentage change from previous period
Source: The Bank of Korea

Construction completed (current value) in September soared 8.4 percent month-on-month,
or 6.0 percent year-on-year, as the public sector remained brisk and the private sector
improved greatly. By type of works, both building construction and civil engineering works
rose 13.0 and 1.8 percent year-on-year, respectively.
(Percentage change from same period in previous year)
2007

Construction completed

2008

2009

Annual

Annual

Q4

Q1

Q2

Q3

6.6

4.7

-2.2

4.5

7.0

Jul

Aug1

Sep1

-1.2

-2.3

-7.9

6.0

1

-

-

-6.2

7.7

2.2

-7.1

-12.5

-5.6

8.4

- Public

8.4

6.5

8.7

24.4

32.1

20.8

17.5

14.2

29.6

- Private

4.6

1.7

-9.1

-5.0

-5.2

-11.8

-11.3

-18.6

-5.9

Construction orders

23.6

-9.0

-6.5

-16.5

-2.0

9.1

2.9

-29.5

58.4

- Public

40.3

9.1

5.0

22.0

186.5

75.6

111.7

12.7

101.1

- Private

16.5

-15.8

-15.3

-38.4

-62.4

-10.7

-31.6

-42.0

61.8

Building permit area

13.3

-20.1

-41.9

-31.6

-32.7

-4.6

-29.1

-7.4

31.4

(Seasonally adjusted)

2

1. Preliminary
2. Percentage change from previous period
Sources: Statistics Korea & Ministry of Land, Transport and Maritime Affairs

Construction investment in October is projected to stay on its moderately upward trajectory,
considering increases in leading indicators such as building construction orders, and
recovering investor confidence.

2009

Business survey indices (base=100)
Jun

Jul

Aug

Sep

Oct

Construction results

92.2

99.3

87.2

96.1

-

Construction projections

88.4

91.5

96.2

92.8

110.8

14

November 2009

4-1

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

4-2

Construction completed and housing construction
Source: Statistics Korea (construction completed)
Kookmin Bank (housing construction)

4-3

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

Economic Bulletin

15

5. Exports and imports
Exports in October dropped 8.3 percent year-on-year to US$34.03 billion.
The year-on-year export decline slightly accelerated from the previous month’s 7.8 percent
to 8.3 percent due to reduced working days, as Chuseok holidays fell on October this year.
Average daily exports in working-day-adjusted-terms improved greatly, from a fall of 13.6
percent to 4.3 percent, showing that the recovery in exports is stable.
Semiconductors (up 36.8) and liquid crystal devices (up 38.8%) posted a double digit
growth, while petroleum products (down 25.8%) slowed the decline.
By regional category, exports to China (up 9.7%) increased for the second straight month,
while exports to the ASEAN region (up 1.3%) shifted to a rise.
(US$ billion)
2008

2009

Annual

Oct

Jan-Oct

Q1

Q2

Q3

Aug

Sep

Oct

Jan-Oct

422.01

37.11

366.05

74.41

90.84

95.45

28.96

34.51

34.03

294.73

(y-o-y, %)

13.6

7.8

20.9

-25.2

-20.7

-17.0

-20.9

-7.8

-8.3

-19.5

Average daily exports

1.53

1.55

1.60

1.10

1.19

1.33

1.26

1.44

1.48

1.27

435.27

36.10

379.84

71.39

73.70

84.83

27.39

29.80

30.23

260.14

(y-o-y, %)

22.0

10.3

31.4

-32.7

-35.8

-31.0

-32.2

-24.6

-16.3

-31.5

Average daily imports

1.58

1.50

1.66

1.06

1.06

1.34

1.19

1.24

1.31

1.12

Exports

Imports

Source: Korea Customs Service

Imports in October fell 16.3 percent year-on-year to US$30.23 billion. Imports of raw
materials declined at a much slower pace, affected by rising oil prices.
Raw materials (y-o-y, %)
-34.8 (Q1 2009)

-43.1 (Q2)

-39.3 (Q3); -32.2 (Sep)

-18.2 (Oct)

-13.7 (Q3); -11.5 (Sep)

-14.3 (Oct)

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

-23.6 (Q2)

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

-24.4 (Q2)

-20.9 (Q3); -9.7 (Sep)

-10.0 (Oct)

The trade balance in October posted a surplus of US$3.79 billion, staying in the black for
nine straight months since February 2009.
(US$ billion)
2008

Trade balance
Source: Korea Customs Service

16

November 2009

2009

Annual

Oct

Jan-Oct

Q1

Q2

Q3

Aug

Sep

Oct

Jan-Oct

-13.27

1.01

-13.80

3.03

17.14

10.62

1.57

4.71

3.79

34.58

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)

Economic Bulletin

17

6. Mining and manufacturing production
Mining and manufacturing production in September rose 5.4 percent month-on-month, or 11
percent year-on-year, affected by the strong performance of major products such as
semiconductors and automobiles, and a working day increase due to a shift of Chuseok
holidays falling on October from September last year.
By business category, semiconductors and parts (up 23.0%), and automobiles (up 32.3%)
increased, while audio visual communications equipment (down 0.26%) and petroleum
refining (down 0.11%) decreased.
Shipments increased year-on-year for the first time since September 2009, rising 8.7
percent, while the level of inventory fell at a slightly slower pace from the previous month’s
14.1 percent to 14.0 percent.
By business category, the shipments of automobiles (up 31.5%), semiconductors and parts
(up 8.3%), and chemical products (up 12.4%) posted a year-on-year increase. The
inventories of semiconductors and parts (down 23.0%), primary metals (down 18.1%), and
chemical products (down 18.0%) were down.
The average operation ratio of the manufacturing sector registered 80.2 percent, rising 2.5
percentage points month-on-month and landing in the 80 percent range for the first time
since June 2008.
(Percentage change from same period in previous year)
2008
Q3

Sep

Q2

Q3

Jul

Aug1

Sep1

-

-1.9

0.7

11.4

7.2

1.9

-1.2

5.4

(y-o-y)

3.0

5.6

6.3

-6.2

4.2

0.7

1.1

11.0

- Manufacturing

3.0

5.6

6.2

-6.6

4.3

0.8

1.0

11.3

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

Mining and
manufacturing
activity2

2009

·Heavy chemical industry
·Light industry
Shipment
- Domestic demand

4.1

6.8

7.1

-6.2

5.7

2.3

2.3

12.4

-2.2

0.0

2.0

-8.8

-2.1

-6.4

-5.3

5.6

2.4

5.3

6.1

-5.8

2.1

-1.3

-0.9

8.7

-6.6

3.0

-1.9

-0.8

11.9

-0.7

1.7

1.5

- Exports

7.1

10.3

12.4

-4.7

1.0

-0.5

-1.0

4.6

Inventory3

7.3

17.3

17.3

-16.7

-14.0

-14.9

-14.1

-14.0

Manufacturing Average operation ratio (%)
activity
Production capacity

77.2

78.3

77.3

73.7

78.9

78.7

77.7

80.2

5.2

5.3

4.9

1.9

2.8

2.7

2.8

3.2

1. Preliminary
2. Including mining, manufacturing, electricity and gas industry
Source: Statistics Korea

3. End-period

In October, mining and manufacturing production is likely to decelerate slightly, considering
reduced working days due to Chuseok holidays and weak exports.
Exports (y-o-y, %)
-12.4 (Jun 2009)

18

November 2009

-21.8 (Jul)

-20.9 (Aug)

-7.8 (Sep)

-8.3 (Oct)

6-1

Industrial production
Source: Statistics Korea (industrial activity trend)

6-2

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

6-3

Inventory
Source: Statistics Korea (industrial activity trend)

Economic Bulletin

19

7. Service sector activity
Service activity in September increased 2.6 percent from the previous month and 4.2
percent from a year earlier with more working days, as Chuseok holidays fall in October this
year instead of September.
By business category, healthcare & social welfare services (up 11.7%), real estate & renting
services (up 10.1%), and financial & insurance services (up 8.9%) led the year-on-year
increase in the service sector.
Meanwhile, business facility management & business support services (down 1.2%) and
educational services (down 0.4%) declined from a year earlier.
(Percentage change from same period in previous year)
Weight
100

Service activity index

2008

2009

Annual

Q3

Q4

Q1

Q2

Q3

Jul

Aug1

Sep1

3.4

3.2

-0.4

-0.4

1.6

2.1

0.9

1.0

4.2

1

-

-

0.5

-1.9

0.4

2.5

0.7

-0.6

-0.8

2.6

22.0

1.4

3.6

-4.6

-4.0

-2.2

0.2

-1.6

-1.1

3.2

- Transportation services

9.0

4.3

4.3

-3.2

-10.8

-9.5

-4.2

-7.7

-5.2

0.4

- Hotels & restaurants

7.8

0.7

1.7

-3.0

-2.4

-0.3

-2.1

-1.1

-5.5

0.4

(Seasonally adjusted)

2

- Wholesale & retail

- Information & communication services

8.4

3.5

3.4

-0.2

-1.9

0.9

1.4

0.5

0.4

2.8

15.3

9.7

9.6

4.5

6.6

9.8

8.5

6.8

9.7

8.9

- Real estate & renting

6.3

-2.1

-8.4

-7.5

-3.1

1.5

9.4

7.7

10.7

10.1

- Professional, scientific & technical services

4.8

2.0

1.8

0.9

-1.9

3.2

0.1

0.4

-1.8

2.7

- Financial & insurance services

- Business services

2.9

4.6

3.2

0.1

-4.8

-6.6

-1.0

-1.8

-0.2

-1.2

10.8

1.8

-0.5

2.3

3.7

6.9

-2.7

-2.4

-5.9

-0.4

- Healthcare & social welfare services

6.0

6.3

6.1

6.5

8.6

8.1

10.0

8.3

9.7

11.7

- Entertainment, cultural & sports services

2.9

2.2

1.7

4.3

1.5

0.9

-0.4

3.3

-6.9

3.3

- Membership organizations

3.8

0.1

-1.4

-1.0

-3.4

-5.0

-1.7

-2.8

-4.2

2.0

- Sewerage & waste management

0.4

5.8

3.9

4.0

0.5

8.8

5.4

5.3

1.0

9.3

- Educational services

1. Preliminary
2. Percentage change from previous period
Source: Statistics Korea

Service activity in October is expected to continue with modest gains despite reduced
working days due to Chuseok holidays, as preliminary indicators of consumer goods sales
such as retailers’ sales and automobile sales remained robust.

20

November 2009

l es

l&

tate

ncia

& re

ranc

e se

ns

&
Bus
bus iness f
ines acil
s su ity m
ppo ana
rt se gem
rvic ent
es
&
Edu
cati
ona
l se
rvic
es
Hea
serv lthcare
ices & s
ocia
l we
lfar
e
Ente
serv rtainm
ices ent
, cu
ltur
al &
spo
Me
rts
m
othe bersh
r pe ip o
rson rgan
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

atio

rvic

unic

s

omm

rant

tail

insu

&c

stau

tion

& re

ion

& re

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

Rea

Fina

ale

rtat

rma

els

Info

Hot

spo

oles

Tran

Wh

ex

7-3

l ind

7-2

Tota

7-1
Service industry

Source: Statistics Korea (service industry activity trend)

Wholesale and retail sales

Source: Statistics Korea (service industry activity trend)

September 2009 service industry by business

Source: Statistics Korea (service industry activity trend)

Economic Bulletin

21

8. Employment
The number of workers on payroll in September climbed by 71,000 from a year earlier, with
the government’s continuing efforts to create jobs.
Employment in the manufacturing sector stayed on a downward track declining by 118,000,
mainly due to sluggish domestic demand and falling exports. Hiring in the construction
sector continued to fall with a 75,000 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 278,000 driven by the government’s job
creation policies.
(Change from same period in previous year, thousand)
2008

2009

Annual

Sep

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Aug

Sep

Employment growth

145

112

209

173

141

54

-146

-134

-1

3

71

- Manufacturing

-52

-63

-18

-34

-52

-103

-163

-151

-143

-138

-118

- Construction

-37

-51

-22

-46

-40

-41

-43

-113

-103

-105

-75

- Services

263

249

307

300

262

187

47

155

269

282

278

- Agriculture, forestry & fishery

-37

-28

-63

-54

-38

8

14

-25

-25

-34

-19

Source: Statistics Korea

By status of workers, non-wage workers including self-employed workers plunged by
395,000 from a year earlier. Meanwhile, wage workers rose by 466,000 led by an increase of
464,000 in regular workers and 136,000 in temporary workers, although the number of daily
workers shrank by 134,000.
(Change from same period in previous year, thousand)
2008

2009
Q3

Aug

Sep

Q4

Q1

Q2

141

54

-146

-134

-1

3

71

208

137

73

175

356

375

466

448

347

316

318

313

386

365

464

-96

-83

-94

-136

-5

125

147

136

Annual

Sep

Q1

Q2

Q3

Employment growth

145

112

209

173

- Wage workers

236

166

312

289

·Regular workers

386

318

435

·Temporary workers

-93

-85

-98

·Daily workers

-57

-68

-25

-63

-56

-85

-108

-133

-155

-137

-134

- Non-wage workers

-92

-54

-102

-115

-66

-83

-220

-309

-357

-373

-395

·Self-employed workers

-79

-56

-79

-67

-76

-95

-197

-286

-276

-276

-324

Source: Statistics Korea

The employment rate stood at 59.2 percent, down 0.6 percentage points compared to the
same month of the previous year. The unemployment rate rose 0.4 percentage points yearon-year to 3.4 percent, while that of youths aged 15 to 29 was up 1.5 percentage points from
a year earlier to 7.6 percent.
(Change from same period in previous year, thousand)
2008

Unemployment rate (%)
Employment rate (%)

22

November 2009

2009

Annual

Sep

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Aug

Sep

3.2

3.0

3.4

3.1

3.1

3.1

3.8

3.8

3.6

3.7

3.4

59.5

59.8

58.5

60.3

59.9

59.4

57.4

59.3

59.1

58.8

59.2

8-1

Number of employed and employment growth
Source: Statistics Korea (service industry activity trend)

8-2

Share of employed by industry
Source: Statistics Korea (service industry activity trend)

8-3

Unemployment rate and number of unemployed
Source: Statistics Korea (service industry activity trend)

Economic Bulletin

23

9. Financial market
9.1 Stock market
The Korean stock market in October fell due to an adjustment in the global stock market and
concerns that exporters’ profits could deteriorate.
The drop in the domestic stock market was due to low investor sentiment, profit-taking after
a sudden surge, and worries about the won’s appreciation. Investor sentiment worsened on
concerns over a delay in the global economic recovery as US housing and consumption
related indicators remained sluggish.
Foreign investors continued their net-buying of Korean shares since July in line with
expanded investment into emerging markets by foreign investors.
(End-period, point, trillion won)
KOSPI

Stock price index

KOSDAQ

Sep 2009

Oct 2009

Change1

Sep 2009

Oct 2009

Change1

1,673.1

1,580.7

-92.4 (-5.5%)

505.9

486.5

-19.4 (-3.8%)

872.4

828.2

-44.2 (-5.1%)

79.2

77.9

-1.3 (-1.6%)

Market capitalization
Average daily trade value

7.3

5.5

-1.8 (-24.7%)

2.4

1.7

-0.7 (-29.2%)

Foreign stock ownership

32.2

31.4

-0.8 (-2.5%)

6.7

6.9

0.2 (3.0%)

1. Change from the end of the previous year

9.2 Exchange rate
The won/dollar exchange rate in October advanced 4.4 won from 1,178.1 won at the end of
September to wrap up the month at 1,182.5 won.
The exchange rate fell to 1,155 won during the month with the dollar remaining weak. It,
thereafter, turned to a slight increase as investors’ appetite for safe assets grew amid the
global stock market adjustment and the possibility of early exit strategies.
The won/yen exchange rate also fell to the upper 1,200 won range with the appreciation of
won.
(End-period)
2006

2007

2008

Dec

Dec

Dec

2009
Sep

Oct

Change1

Won/Dollar

929.8

936.1

1,259.5

1,178.1

1,182.5

6.5

Won/100Yen

783.4

828.6

1,396.8

1,315.6

1,299.3

7.5

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.

24

November 2009

9-1

Stock prices

9-2

Foreign exchange rate (month-end)

9-3

Recent foreign exchange rate

Economic Bulletin

25

9.3 Bond market
Long-term bond yields continued to rise in October with an improvement in real economic
indicators. For short-term bond yields, however, the pace of increase moderated.
In particular, the long-term bond yields hit the highest this year after mid October, as
improved real economic indicators fueled expectations over an economic recovery. On
October 28, yields on Treasury bonds with a 3-year maturity reached 4.62 percent, a record
high this year.
(End-period)

Call rate (1 day)

2005

2006

2007

2008

2009

Dec

Dec

Dec

Dec

Aug

Sep

Oct

3.76

4.60

5.02

3.02

1.99

2.00

2.01

Change1
1

CD (91 days)

4.09

4.86

5.82

3.93

2.57

2.75

2.79

4

Treasury bonds (3 yrs)

5.08

4.92

5.74

3.41

4.38

4.39

4.44

5

Corporate bonds (3 yrs)

5.52

5.29

6.77

7.72

5.61

5.53

5.58

5

Treasury bonds (5 yrs)

5.36

5.00

5.78

3.77

4.91

4.81

4.94

13

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

9.4 Money supply & money market
The M2 (monthly average) in August expanded 10.0 percent from a year earlier. Excluding
cash management accounts (CMAs), which were included in M2 since July 2009, the year-onyear M2 growth stood at 9.5 percent, a similar level to the previous month’s 9.6 percent.
(Percentage change from same period in previous year, average)
2007
Annual
M1+2

2009

2008
Annual

Q1

Q2

Q3

Aug

Q4

Q1

Q2

Jun

Jul

Aug

Aug1

-5.2

-1.8

-12.4

-0.1

2.1

2.7

5.0

10.8

17.6

16.9

18.5

18.5

361.0

M2

11.2

14.3

13.3

15.3

14.7

14.7

13.8

11.5

10.1

9.6

9.7

10.0

1,524.9

Lf3

10.2

11.9

11.6

12.8

12.1

11.8

11.2

8.8

7.3

7.0

7.6

Mid 7 1,939.34

1. Balance at end August 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 July 2009, trillion won

In September, bank deposits increased further as fund inflows from individual and corporate
investors were boosted by higher deposit rates and a perception that the stock market had
reached a temporary peak.
Asset management company (AMC) deposits declined at a much faster pace affected by
redemptions of equity funds as well as less money inflows into MMFs with fund withdrawals
by individual and corporate investors.
(Monthly change, end-period, trillion won)
2007

2008

Annual

Sep

Annual

Bank deposits

59.6

6.5

AMC deposits

61.8

3.3

1. Balance at end September 2009, trillion won

26

November 2009

2009
Sep

Jul

Aug

104.3

8.5

-0.6

63.0

-20.4

-2.2

Sep

Sep1

13.5

16.5

1,021.1

-7.8

-18.3

345.9

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.

Economic Bulletin

27

10. Balance of payments
Korea’s current account recorded a US$4.20 billion surplus in September.
The goods account surplus expanded to US$5.45 billion from US$3.33 billion a month earlier,
thanks to robust exports amid the global economic recovery and increased working days.
The service account deficit decreased to US$1.63 billion from the previous month’s US$1.79
billion, due to the improved travel account and increased revenue from freight transportation.
The income account surplus shrank slightly to US$550 million after posting US$590 million
in the previous month, due to a decrease in dividend payments.
The current transfer account deficit contracted to US$160 million from the previous month’s
US$220 million with increased inflow of overseas remittance.
(US$ billion)
2008

2009

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Jul

Aug

Sep Jan-Sep

Current account

-6.41

-5.21

-0.13

-8.58

7.52

8.58

13.17

4.36

1.91

4.20

32.22

- Goods balance

5.99

-1.22

5.72

-3.48

4.97

8.35

17.63

6.13

3.33

5.45

40.88

-16.73

-5.07

-4.27

-5.69

-1.70

-1.88

-4.02

-1.89

-1.79

-1.63

-11.22

- Service balance
- Income balance

5.11

1.69

-0.65

1.36

2.71

0.83

0.18

0.48

0.59

0.55

2.63

- Current transfers

-0.77

-0.61

-0.94

-0.77

1.55

1.28

-0.61

-0.36

-0.22

-0.16

-0.07

Source: The Bank of Korea

The capital and financial account in September posted a net inflow of US$7.24 billion.
Capital & financial account balance (US$ billion)
-0.55 (Q1 2009)

8.89 (Q2)

2.38 (Jul)

5.46 (Aug)

7.24 (Sep)

The direct investment account slightly expanded the net outflow to register US$230 million
from the previous month’s deficit of US$110 million due to an increase in overseas
investment by locals.
The portfolio investment account significantly increased the net outflow to record US$7.92
billion from US$4.06 billion a month earlier as foreign investment in the Korean stock and
bond market rose considerably.
The financial derivatives account deficit contracted from the previous month’s US$720
million to post US$300 million, as revenue related to overseas financial derivative
transactions increased.
The other investment account shifted to a net outflow of US$140 million from the previous
month’s net inflow of US$2.18 billion as the IMF reduced the allocation of Special Drawing
Rights (SDR) to US$300 million from US$3.4 billion a month earlier.
The current account is likely to record a surplus of around US$3.5 billion in October as the
trade balance posted a surplus of US$3.79 billion.

28

November 2009

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)

Economic Bulletin

29

11. Prices and international commodity prices
11.1 Prices
Consumer prices in October decreased 0.3 percent month-on-month while rising 2.0 percent
year-on-year.
The overall price index was down 0.3 percent month-on-month as prices for agricultural,
livestock and fishery products as well as oil product prices went down. Prices of agricultural,
livestock and fishery products declined 1.1 percent from the previous month as the autumn
harvest season continued with favorable weather conditions.
Prices of agricultural, livestock & fishery products in October 2009 (m-o-m, %)
Rice (0.0), radish (-3.6), Chinese cabbage (-21.1), grape (15.8), Korean beef (3.7), pork (-4.1), chicken (-1.7),
mackerel (-3.8), Alaska pollack (1.6), yellow corvina (0.2)

Prices of oil products decreased 3.1 percent from a month earlier as weak international oil prices
from end-September to early-October were reflected and the won’s value appreciated.
Prices of oil products in October 2009 (m-o-m, %)
Gasoline (-3.7), diesel (-3.3), kerosene (-2.7), LPG for automobiles (-0.1), LPG for kitchen use (-0.1)

Public utility charges were slightly up 0.1 percent month-on-month with higher medical service fees.
Personal service charges held steady with stabilized expenses for dining-out, the won’s appreciation
and the continuing deflation gap.

Consumer price inflation in major sectors
Total
Month-on-Month (%)
Contribution (%p)
Year-on-Year (%)
Contribution (%p)

Agricultural,
livestock & fishery
products

Industrial
products

Housing
rents

Oil
products

Public
utility

Personal
services

-0.3

-1.1

-0.5

-3.1

0.1

0.1

0.0

-0.26

-0.09

-0.16

-0.18

0.01

0.01

0.00

2.0

5.5

1.1

-10.6

1.1

2.3

2.0

1.98

0.45

0.36

-0.68

0.11

0.37

0.68

Source: The Bank of Korea

Core consumer prices, which exclude the prices of oil and agricultural products, rose by 2.6 percent
year-on-year. Consumer prices for basic necessities, a barometer of perceived consumer prices, were
up 1.5 percent compared to the same month of the previous year.

Consumer price inflation
2008

2009

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

-0.1

-0.3

0.0

0.1

0.7

0.7

0.3

0.0

-0.1

0.4

0.4

0.1

-0.3

Year-on-Year (%)

4.8

4.5

4.1

3.7

4.1

3.9

3.6

2.7

2.0

1.6

2.2

2.2

2.0

Core consumer prices (y-o-y)

5.2

5.3

5.6

5.2

5.2

4.5

4.2

3.9

3.5

3.2

3.1

2.7

2.6

(m-o-m)

0.2

0.3

0.5

0.2

0.4

0.4

0.2

0.2

0.1

0.2

0.1

0.1

0.1

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

4.8

4.0

3.0

2.8

3.3

3.1

3.0

1.8

0.5

0.4

1.3

1.7

1.5

Month-on-Month (%)

Source: Statistics Korea

30

November 2009

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

11-2 Consumer price inflation
Source: Statistics Korea (consumer price trend)

11-3 Contribution to consumer price inflation
Source: Statistics Korea (consumer price trend)

Economic Bulletin

31

11.2. International oil and commodity prices
International oil prices in October hit a record high price this year reaching a monthly average
of US$70 level, affected by the weak dollar and prospects of global economic recovery.
(US$/barrel, period average)
2006

2007

2008

2009

Annual

Annual

Annual

Dec

May

Jun

Jul

Aug

Sep

Oct

Dubai crude

61.6

68.4

94.3

40.5

57.9

69.4

65.0

71.4

67.7

73.2

Brent crude

65.1

72.8

97.5

40.4

57.5

68.6

64.6

72.9

67.5

72.8

WTI crude

66.0

72.3

99.9

41.6

59.1

69.7

64.2

71.1

69.4

75.8

Source: KOREAPDS

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

Domestic prices of oil products went down as weak international oil product prices from endSeptember to early-October were reflected with the time lag and the won’s value
appreciated.
(Won/liter, period average)
2006

2007

Annual

Annual

Annual

2008
Dec

May

Jun

Jul

2009
Aug

Sep

Oct

Gasoline prices

1,492

1,526

1,692

1,329

1,543

1,607

1,639

1,670

1,681

1,627

Diesel prices

1,228

1,273

1,614

1,303

1,320

1,389

1,428

1,447

1,453

1,409

Source: Korea National Oil Corporation

Prices of nickel and zinc soared month-on-month while international prices of grain including
corn, wheat and soybean rose due to concerns over a delay in harvests affected by
deteriorating weather conditions.
Non-ferrous metal prices excluding nickel and zinc increased moderately with expectations
of economic recovery amid oversupply concerns. As strikes at Canadian nickel mines
extended, nickel prices showed relative strength.
Grain prices moved upward due to concerns over a delay in harvests as cold weather
continued in the US. In addition, the delay in yield of corn and soybean affected the
seedtime of winter wheat, leading the wheat price increase.
Prices of non-ferrous metals and grain in October 2009 (m-o-m, %)
Corn (14.4), wheat (7.2), soybean (3.8), bronze (1.6), aluminum (2.6), nickel (6.3), zinc (9.8), lead (1.8), tin (1.6)

Reuters index*

(Period average)

2006

2007

2008

Annual

Annual

Annual

Dec

May

Jun

Jul

Aug

Sep

Oct

2,019

2,400

2,536

1,767

2,099

2,117

2,082

2,159

2,049

2,197

* A weighted average index of 17 major commodities
Source: KOREAPDS

32

November 2009

2009

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.

Economic Bulletin

33

12. Real estate market
12.1 Housing market
In October, nationwide apartment sales prices were up 0.4 percent. The pace of increase,
however, decelerated as financial regulations have tightened up and the fall moving season
came closer to the end.
The Seoul metropolitan area, which is under the direct influence of stricter Debt-to-income
(DTI) regulations, significantly decelerated the weekly upward trend amid expectations over
sales of Bogeumjari Houses, affordable public apartments for low-income households.

Nationwide apartment sales prices

(Percentage change from previous period)

2006 2007 2008

2009

Annual Annual Annual

Nationwide

13.8

2.1

Seoul

24.1

Gangnam2

27.6

Gangbuk

Jan Feb Mar Apr May Jun Jul Aug Sep

Oct

Oct51 Oct121 Oct191 Oct261

2.3

-0.7 -0.3 -0.2 0.0 0.1 0.2 0.3 0.3

0.8

0.4

0.09 0.08 0.08 0.09

3.6

3.2

-0.9 -0.2 -0.3 0.4 0.2 0.5 0.9 0.5

1.2

0.3

0.07 0.03 0.04 0.01

0.5

-1.9

-1.1 0.2 -0.1 0.7 0.3 0.7 1.1 0.6

1.4

0.3

0.08 0.02 0.03 0.00

19.0

8.3

9.4

-0.7 -0.6 -0.4 0.0 0.0 0.3 0.7 0.4

0.9

0.4

0.05 0.04 0.05 0.01

24.6

4.0

2.9

-1.0 -0.4 -0.4 0.0 0.2 0.3 0.5 0.4

0.9

0.3

0.06 0.03 0.03 0.00

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

0.6

0.13 0.15 0.17 0.20

Other cities

3.0

2.3

-0.3 -0.1 0.0 0.1 0.1 0.1 0.1 0.2

0.5

0.5

0.10 0.10 0.11 0.15

3

Seoul metropolitan area

1. Weekly trends

0.3

2. Upscale area of southern Seoul

3. Northern Seoul

Source: Kookmin Bank

The rental prices slowed the upward pace as transactions have decreased around Chuseok
holidays and the fall moving season approached the end, easing the imbalance between
demand and supply.

Nationwide apartment rental prices

(Percentage change from previous period)

2006 2007 2008

2009
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Oct51 Oct121 Oct191 Oct261

Annual Annual Annual

Nationwide

7.6

1.9

0.8

-1.2 -0.3 0.2 0.3 0.3 0.4 0.5 0.6

1.8 0.9 0.16 0.19 0.25 0.20

Seoul

11.5

2.2

-1.8

-1.7 0.2 0.7 0.6 0.4 0.7 0.9 1.0

2.8 1.1 0.13 0.28 0.34 0.24

Gangnam

11.3

0.5

-3.6

-1.8 0.7 1.0 0.9 0.5 1.0 1.0 1.1

2.9 1.1 0.12 0.25 0.32 0.34

Gangbuk3

11.8

4.6

0.5

-1.5 -0.4 0.3 0.3 0.2 0.5 0.7 0.8

2.7 1.1 0.14 0.31 0.35 0.11

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 1.0 0.17 0.24 0.31 0.17

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 0.8 0.19 0.18 0.23 0.29

Other cities

4.1

2.2

2.6

-0.4 -0.1 0.1 0.2 0.1 0.2 0.1 0.2

0.7 0.5 0.12 0.10 0.12 0.16

2

1. Weekly trends

2. Upscale area of southern Seoul

3. Northern Seoul

Source: Kookmin Bank

Apartment sales transactions in September surged 47.4 percent from 61,381 a year earlier to
post 90,490. The transactions were up 11.8 percent from the previous month.

Apartment sales transactions
2006

(Monthly average, thousand)

2007

2008

Annual Sep Annual Sep Annual Sep

Nationwide

94

101

Source: Korea Land Corporation

34

November 2009

84

55

74

61

Oct
68

2009
Nov Dec
54

57

Jan

Feb

Mar

49

60

79

Apr May Jun

Jul

Aug

Sep

76

91

81

90

72

81

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)

Economic Bulletin

35

12.2 Land market
Nationwide land prices in September rose 0.31 percent, decelerating its growing pace from
the previous month’s 0.36 percent. The fluctuation rate for the accumulated period from
January to September recorded 0.01 percent, shifting to a rise for the first time this year.
Affected by expectations over development projects such as the New Town project in
Goyang, land prices in the Seoul metropolitan area continued an upward trend as Seoul,
Incheon and Gyeonggi province saw land prices rising by 0.39 percent, 0.43 percent and
0.43 percent, respectively.

Land prices by region

(Percentage change from previous period)
2007

Annual

Q1

2008

Q2

Q3

2009

Q4

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Sep

0.91

1.15

-0.31

1.23

1.46

1.18

-4.08

-1.20

0.35

0.88

0.31

1.40

1.90

-1.00

1.83

2.17

1.59

-6.34

-1.38

0.68

1.30

0.39

0.89

1.05

1.14

-0.26

1.28

1.57

1.28

-4.28

-1.62

0.37

1.33

0.43

1.28

1.12

1.13

1.37

1.36

1.67

2.01

-3.57

-1.39

0.53

1.16

0.43

Nationwide

3.88

0.96

0.79

Seoul

5.88

1.38

1.07

Gyeonggi

4.22

1.07

Incheon

4.86

1.24

Source: Korea Land Corporation

Nationwide land transactions in September expanded 30.8 percent or 53,000 land lots from
a year earlier to 226,000 land lots. In terms of gross area, land transactions were up 18.6
percent.
Land transactions in all cities and counties increased year-on-year in terms of land lots
driven by Busan (up 55.3%), Gyeonggi province (up 52.0%) and Daejeon (up 53.0%).

Land sales transactions

(Monthly average, land lot, thousand)

2007

2008

Annual Annual Jan

2009

Mar

May

Jul

Sep

Nov

Dec

Jan Feb Mar Apr May Jun

134 164 207 207 192 215 222 206

Jul Aug Sep

208

208

216

190

269

244

175

191

162

Seoul

33

26

24

24

41

38

18

23

13

13

15

20

24

22

27

26

25

28

Gyeonggi

49

45

44

40

61

55

38

36

31

26

34

41

48

45

49

50

48

56

Incheon

13

13

11

10

18

15

11

10

8

7

7

9

10

9

10

11

10

13

Nationwide

Source: Korea Land Corporation

36

November 2009

226

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

Economic Bulletin

37

13. Composite indices of business cycle indicators
The cyclical indicator of coincident composite index, a barometer of the current economic
conditions, rose 0.1 points in September from the previous month, staying on an upward
track since March.
The volume of imports, the mining & manufacturing production index, the domestic
shipment index, the manufacturing operation ratio index and the service activity index
contributed to the upward track.
Components of the cyclical indicator of coincident composite index in September 2009 (m-o-m)
volume of imports (2.3%), mining & manufacturing production index (2.0%), domestic shipment index (1.6%),
manufacturing operation ratio index (1.5%), service activity index (0.5%), number of non-farm payroll employment (0.0%),
wholesale & retail sales index (-0.3%), value of construction completed (-4.4%)

The year-on-year leading composite index, which foresees the future economic conditions,
went up 1.0 percentage point month-on-month in September, 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 September 2009 (m-o-m)
Composite stock price index (7.1%), ratio of job openings to job seekers (3.3%p), consumer expectations
index (2.9%p), volume of capital goods imports (2.7%), indicator of inventory cycle (0.8%p), liquidity in the
financial institutions (0.2%), spreads between long & short term interest rate (0.1%p), value of received
construction orders (-1.3%), net terms of trade index (-1.5%), value of machinery orders received (-2.6%)

2009
Jan

Feb

Jun

Jul

Aug1

Sep1

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

-1.9

0.0

2.1

1.2

0.9

0.5

Cyclical indicator of coincident composite index

92.4

92.0

95.4

96.2

96.7

96.8

(m-o-m, p)

-2.2

-0.4

1.6

0.8

0.5

0.1

0.3

1.1

2.6

1.4

1.0

0.7

-4.0

-2.9

5.8

7.8

9.1

10.1

0.1

1.1

3.2

2.1

1.3

1.0

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

38

November 2009

13-1 Cyclical indicator of coincident composite index
Source: Statistics Korea

13-2 Leading composite index
Source: Statistics Korea

13-3 Coincident and leading composite indices
Source: Statistics Korea

Economic Bulletin

39

Policy Issues
Korea-EU FTA

The Korea-EU FTA, concluded last July after eight rounds of talks since 2007, was initialed on
October 15. The trade package is expected to go into effect in 2010 following ratification by
each side.
The Korea-EU FTA is meaningful in that it is a trade agreement with the world’s largest
economic bloc, and is expected to serve as a bridgehead for future trade deals with other
European nations. As of 2008, the EU ranked top in terms of GDP, producing US$ 18.4
trillion, or 30.2 percent of the total global GDP.

I. Summary of the agreement
1. Manufactured goods
Customs duties shall be eliminated in five years on the Korean goods and in seven years on
the goods from the EU.

Tariff elimination on manufactured goods

(%)

Korea-EU FTA
Tariff schedule

Korean commitment
No. of items Import value

Korea-US FTA

EU commitment
No. of items Import value

Korean commitment
No. of items Import value

US commitment
No. of items Import value

Immediate removal (A)

90.7

69.4

97.3

76.7

89.9

81.0

87.3

85.5

Removal in 3 years (B)

5.1

22.4

2.1

16.6

6.3

13.2

4.1

6.9

Early removal (A+B)

95.8

91.8

99.4

93.3

96.2

94.3

91.4

92.4

Removal in 5 years

3.7

6.9

0.6

6.7

1.9

1.5

4.0

3.4

Removal in 7 years

0.5

1.3

-

-

-

-

-

-

-

-

-

-

1.9

4.2

4.6

4.2

100

100

100

100

100

100

100

100

Removal in 10 years
Total

40

November 2009

For motor vehicles, both Korea and the EU will eliminate tariffs on cars in three or five years,
depending on engine size. Both sides will scrap tariffs on small cars (1,500cc or smaller) over
three years and on large cars (larger than 1,500cc) over five years.
Under the Korea-US (KORUS) FTA, Korea’s auto tariff will be eliminated immediately while
the US would remove its tariff on small cars (3,000cc or smaller) immediately and on large
cars (larger than 3,000cc) over three years.

2. Agricultural products
Reflecting the sensitivity of the agricultural products, efforts were made to get as much
exceptional treatment as possible. Refrigerated or frozen pork imported from the EU will be
subject to customs duties for ten years from the date of the FTA’s entry into force, longer
than what is scheduled in the KORUS FTA.
Other measures to protect major sensitive products include exemption from tariff
concession, application of current tariff rates, introduction of seasonal duties, subheading
split and application of special safeguards for agricultural products.

3. Non-tariff measures in the automobiles
Both the Korean and EU vehicles are subject to meeting the United Nations Economic
Commission for Europe (UN ECE) safety standards, instead of complying with the safety
regulations set by each EU member states or Korea. As for the requirement to protect
environment, Fleet Average System (FAS)* will be applied to the vehicles from the EU, with
an exception to automakers exporting less than 10 thousand vehicles annually, to which
interim measures will be applied.
*An emission control system which regulates average emission levels of total sold vehicles, instead of
controlling the emission level of an individual vehicle. The system is aimed at allowing flexibility for
automakers.

Standards on On-Board Diagnostics (OBD)* are agreed: The EU’s new OBD standards to be
introduced in 2014 shall be considered as complying with the Korean guideline.
*A device that monitors the emission control system in the car. The device sets a warning light on the
dashboard when problems with emission control detected.

Economic Bulletin

41

4. Rules of origin
The Korea-EU FTA requires less restrictive rules of origin for machinery, electric and
electronic goods, and automobiles: The products made of 45 to 50 percent of non
originating parts or materials will be classified as originating products. Products
manufactured in the Gaesung Industrial Complex will be eligible for preferential tariffs as are
products made in Korea; detailed guidelines will be set one year after the agreement’s entry
into force.

5. Duty drawback
In principle, current duty drawback system will be in place for five years from the FTA’s entry
into force. After the period, safeguard measures to limit refund rate shall be introduced
when certain conditions in the agreement are fulfilled.

6. Services and investment
Markets for professional services such as legal, accounting & tax services, ground transport
& postal services and construction will be opened at the similar level to the KORUS FTA. The
environmental services market will be opened more widely in the Korea-EU FTA than in the
KORUS FTA. Foreign investors will also have wider market access with the Korea-EU trade
deal, as the trade deal covers not only investment in service sectors but also non-service
sectors including manufacturing and mining. However, there is no investor-state dispute
settlement (ISD) provisions in the Korea-EU FTA since competency for investor protection
matters rests with individual EU member states.

7. Geographical indications
The two sides agreed on the protection of geographical indications (GIs) for agricultural
products, wines and spirits as specified in the annex to the agreement. However, currently
registered trademarks in relation to protected geographical indications will be guaranteed
for further use.

Number of products for geographical indications

(Trillion won)

Agricultural products

Wines

Spirits

Total

Korea

63

0

1

64

EU

60

80

22

162

42

November 2009

II. Expected effects
1. Macroeconomic effects
The Korea-EU FTA is expected to positively affect the Korean economy as much as the
KORUS FTA: The trade pack with the EU will help the economy grow through expanded
exports and increased foreign investment based on market opening, and by advancing the
economic system to be more transparent, reliable, open, and sustainable. Expanded exports
and investment are projected to contribute to job creation in both the manufacturing and
service sectors. Also, consumers will have more choices from a wide variety of products at
lower prices.

Tariff removal schedule for major products
Items

(Trillion won)
Current tariff rates (%)

Tariff schedule (year)

Automobiles

8

3-5

Wines

15

Immediately

Whiskies

20

3

Cosmetics

8

3-5

36-176

10

36

15

Dairy products
Cheeses

2. Effects on the manufacturing sector
The FTA’s impact on the manufacturing sector is expected to be tremendous, given that the
EU market for the sector is bigger than the US’s, and EU’s tariff rates are higher than those of
the US. The auto industry is projected to benefit most from the trade deal, as the EU tariff on
motor vehicles is as high as 10 percent. The next most beneficiaries will likely be
manufactures of electric and electronic goods, textiles, machinery, and petrochemicals, in
order of export value.

EU tariff rates vs. US tariff rates

(%)
EU duties

US duties

Non-agricultural products (average)

3.8

3.2

Motor vehicles

10

2.5

The imports that would see large increases are, in order of import value, electric and
electronic goods, machinery, fine chemicals, automobiles and textiles, with machinery and
fine chemicals imported from Germany and France substituting those from Japan and the US.

Economic Bulletin

43

3. Effects on agricultural sector
The effect of the Korea-EU FTA on Korea’s agricultural sector is projected to be limited to
some livestock products such as pork, dairy products and chicken since EU’s
competitiveness in agriculture is relatively low.

Products of expected trade increases

Agricultural products

Marine products

Expected export increase

Expected import increase

Apples, pears, non-alcoholic beverages,

Potato starch, pork, chicken, dairy

coffee husks and skins, soya sauce, etc.

products, kiwis, grapes, tomatoes, etc.

Yellowfin tunas, fish pastes, frozen

Top shells, rock fish, anchovies, bluefin

squids, etc.

tunas, etc.

4. Effects on the service industry
Access to the EU’s media market will be easier through the co-production agreement*, which
will also help attract investment into jointly producing audio-visual contents.
*Under the co-production agreement, co-produced audio-visual contents in compliance with the agreement
shall be deemed to be national productions in the territory of both Korea and the EU and shall thus be fully
entitled to all the benefits.

Korea’s communications market opening is expected to bring consumers a wide variety of
services at lower prices. Holding shares of communications network carriers by foreign
investors will be allowed up to 100 percent of the shares; the agreement will go into effect
within two years from the FTA’s entry into force if conditions for foreign investment met, with
the exception of KT and SKT, since they own the country’s most critical communications grids.
Financial market opening is expected to be mutually beneficial, as the opening will boost
competitiveness of both markets through increased competition and advanced financial
technologies to be imported.
Environmental services market opening seems unlikely to much influence the domestic
market, as the sector carries little weight in the overall economy.

44

November 2009

Economic
News Briefing

GDP grew 2.9% in the third quarter (Advanced)
Korea’s real GDP expanded 2.9 percent quarter-on-quarter (seasonally adjusted) in the third quarter with robust
manufacturing and capital spending, marking the strongest growth since the first quarter of 2002. From a year
earlier, GDP grew 0.6 percent in the third quarter, reversing three straight quarters of year-on-year contraction.
On the production side, the manufacturing output increased 8.7 percent compared to the previous quarter led by
semiconductors, electronic parts and automobiles, while the service activity expanded 0.6 percent boosted by
transportation & storage services and wholesale & retail sales. On the expenditure side, private consumption and
facility investment continued to gain with quarter-on-quarter increases of 1.4 percent and 8.9 percent, respectively.
Meanwhile, the IMF projection for the Korean economy is 3.6 percent growth next year after contracting 1.0
percent this year, in its Regional Economic Outlook (REO) for Asia and the Pacific released on October 29. The
upbeat outlook for Korea is in line with the organization’s global economic outlook for the second half of this year
announced on October 2 and the organization’s previous REO released in April this year.
In addition, the World Bank has raised Korea’s growth outlook in a report assessing economic conditions of major
Asian countries. The international financial organization has revised upwards Korea’s economic growth for this
year and next year to -0.7 percent and 3.7 percent, respectively. It is the first time for an international organization
to forecast the Asia’s fourth largest economy will contract -0 percent level.

Economic Bulletin

45

GDP by production and expenditure*

(Percentage change from previous period)
2008

GDP
Agriculture, forestry
and fishery
Manufacturing

1

20091

Q1

Q2

Q3

Q4

Q1

Q2

Q3

1.1
(5.5)2

0.4
(4.3)

0.2
(3.1)

-5.1
(-3.4)

0.1
(-4.2)

2.6
(-2.2)

2.9 (0.6)

5.8

0.8

0.6

-0.1

-0.1

-1.7

4.6 (2.9)

1.2

1.7

0.1

-11.9

-3.4

8.9

8.7 (0.6)

-1.4

-2.2

1.1

-4.2

5.9

-0.2

-0.5 (0.6)

Services3

0.8

0.1

0.5

-1.4

0.3

1.1

0.6 (0.8)

Private consumption

1.1

-0.2

0.0

-4.6

0.4

3.6

1.4 (0.6)

Construction

Facility investment

-0.4

0.4

0.2

-14.2

-11.2

10.1

8.9 (-8.7)

Construction investment

-2.5

-0.3

0.1

-3.0

5.2

1.7

-2.1 (2.5)

Goods exports4

-0.7

2.5

-0.9

-12.6

-3.4

14.7

5.1 (1.8)

Goods imports

0.1

3.0

1.2

-15.7

-6.2

7.4

8.4 (-8.1)

-1.7

1.0

-3.3

-2.2

0.1

5.4

0.4 (3.6)

4

GDI

*At 2005 chained prices, seasonally adjusted terms
1. Preliminary
2. Figures in parenthesis denote percentage changes from the same period in the previous year in original terms.
3. Wholesale & retail sales, hotels & restaurants, transportation & storage, communication services, financial & insurance services, real estate, business services,
public administration, defense & social security, educational services, healthcare & social welfare services and other services are included.
4. FOB basis

The outcomes of President Lee Myung-bak’s state visits to Asian countries
President Lee Myung-bak attended the 12th ASEAN-ROK Summit held in Thailand on October
24. President Lee and the leaders of 10 ASEAN countries discussed ways to further enhance
the Korea-ASEAN partnership. The Korean president noted that substantial progress has
been made in the field of bilateral political, social, economic and cultural cooperation over
recent years. The president especially praised several achievements made this year such as
the establishment of the Korea-ASEAN Center, the Korea-ASEAN Commemorative Summit in
Jeju Island and the signing of the Korea-ASEAN FTA on investment.
On the same day, President Lee emphasized the importance of a close coordination between
countries as the key to overcome the global financial crisis at the 12th ASEAN+3 (Korea,
China, Japan) Summit. The leaders exchanged views on a number of key issues such as the
economic crisis, climate change and food & energy security.
Meanwhile, President Lee stressed East Asian regional cooperation to solve the problems of
climate change, international financial crisis, natural disasters and North Korea’s nuclear
programs, at the East Asia Summit (EAS) on October 25. The EAS meetings are scheduled
with the ASEAN+3 meetings and the EAS members include all members of ASEAN+3 and
additional members from India, New Zealand and Australia.

46

November 2009

On November 15, leaders of the Asia-Pacific Economic Cooperation (APEC) called for a new
growth paradigm and an expanded trade and investment agenda that will strengthen
regional economic integration in the region. Attending the APEC meeting held in Singapore,
President Lee Myung-bak stressed that Korea, as the host of the G-20 Summit next year, will
act as a bridge between the APEC and G-20, reflecting opinions of developing countries and
newly emerging economies. The Korean president’s state visit to Singapore marked his 11th
and final overseas trip for this year. Overall, President Lee traveled to 16 nations and
participated in 38 summits.

KDB divides into Korea Finance Corp. and KDB Financial Group
On October 28, the Korea Development Bank (KDB) officially separated into Korea Finance
Corporation (KoFC) and KDB Financial Group (KDB FG), paving the way for the organization’s
planned privatization in 2011.
KoFC will continue to provide financial assistance to local small- and medium-sized
companies and nurture industries, a role which the KDB has played for decades. Meanwhile,
KDB FG, with KDB, Daewoo Securities, KDB Capital, KDB Asset Management and Korea
Infrastructure Asset Management Corporation (KIAMCO) as its subsidiaries, sets the vision
to become Korea’s leading global corporate and investment bank.
KFC is launched with capital of 3 trillion won and assets of 23.7 trillion won while KDB FG has
assets of 1.6 trillion won and capital of 1.1 trillion won via equities and cash equivalents to be
transferred from KDB.

Daily FX turnover returns to the pre-Lehman level
The intraday and day-on-day volatilities of the won/dollar exchange rate recorded 8.4 won
and 6.3 won, respectively, in the third quarter, decreasing significantly from the previous
quarters’ 17.1 won and 10.1 won.
The volatility continued to fall throughout the quarter, and the intraday and day-on-day
figures were 6.7 won and 5.6 won in September, respectively, similar to levels before the
Lehman Brothers’ collapse in September 2008. The intraday and day-on-day volatilities were
6.9 won and 4.8 won in August 2008.
The day-on-day change of the won/dollar rate averaged 0.51 percent in the third quarter.
This was higher than the volatilities of other Asian currencies including the Singapore dollar,
but lower than those of Eastern European and Latin American currencies including the Polish
zloty and the Brazilian real. It was even lower than those of major advanced countries’
currencies except the euro.

Economic Bulletin

47

Korea becomes full-fledged member of FATF
Korea has been accepted as a full member to the Financial Action Task Force (FATF) during
the FATF Plenary held in Paris from October 14 to 16, after having gained an observer status
in August 2006. The FATF is an international organization whose main purpose is to develop
and promote policies regarding anti-money laundering and counter-terrorism financing
(AML/CFT). Korea’s accession to the membership shows proven commitment made by the
Korean authorities to ensure that Korea’s anti-money laundering and counter terrorist
financing system meets the international standards, and to continue to play an active role in
the fight against money laundering and financing terrorism.
The accession to the FATF will increase transparency in the local financial system and help
Korean financial institutions operate overseas businesses more efficiently. They were
originally required to submit additional documents before doing overseas businesses since
Korea was not a member of the FATF. In particular, as the recent G20 Summit called for
efforts to enhance transparency in the financial markets and a stronger role by the FATF,
Korea is expected to increase its role in the FATF.

KNOC buys Canadian oil company
On October 22, the Ministry of Knowledge Economy announced that the Korea National Oil
Corporation agreed to buy Canada’s Harvest Energy Trust for C$4.07 billion (US$3.95
billion). The deal is subject to Canadian government’s regulatory approval, and expected to
be finalized by the end of this year.
Following the acquisition of Harvest Energy, Korea’s daily production of crude oil will
increase from the current 188,000 barrels to 241,000 barrels. Acquiring the Calgary-based
company will also increase Korea’s oil self-sufficiency level to 8.1 percent of the nation’s
energy demands, up from the current 6.3 percent. The Korean state-run oil company is
currently examining three to four foreign energy companies as an M&A target.

Expected effects of the acquisition

48

November 2009

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

Economic Bulletin

49

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
III

-4.2
-2.2
0.6

1.5
-1.2
2.9

-13.6
-7.3
0.6

-2.0
0.9
1.6

-8.1
-2.7
-1.4

1.6
3.7
2.5

-23.5
-15.9
-8.7

P: Preliminary
Source: The Bank of Korea

50

November 2009

Growth rate by economic activity

Growth rate by expenditure on GDP

Economic Bulletin

51

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

Period

2007
2008

Production
index

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
III P

102.7
117.4
124.2

-15.5
-6.2
4.2

102.0
115.7
120.3

-14.7
-5.8
2.1

116.5
110.9
113.7

-5.8
-16.7
-14.0

113.3
118.4
118.6

-0.4
1.6
2.1

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
124.0
117.1
131.6

-25.5
-10.0
-10.5
-8.2
-9.0
-1.1
0.7
1.1
11.0

93.2
99.5
113.2
114.5
112.8
119.8
119.9
113.5
127.5

-23.4
-9.3
-11.1
-8.0
-8.7
-0.4
-1.3
-0.9
8.7

124.4
118.1
116.5
112.6
111.4
110.9
112.7
113.6
113.7

0.4
-5.1
-5.8
-9.8
-13.6
-16.7
-14.9
-14.1
-14.0

113.0
109.6
117.2
118.5
118.1
118.7
117.9
116.2
121.7

-1.1
0.3
-0.7
1.9
0.3
2.8
0.9
1.0
4.2

2009

1
2
3
4
5
6
7
8P
9P

P: Preliminary
Source: Statistics Korea

52

November 2009

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

Period

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

Production
capacity index
(2005=100)

2007
2008
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
IIIP

116.9
117.5
119.3

2.5
1.9
2.8

80.7
94.3
97.5

-18.4
-8.2
2.5

65.8
73.7
78.9

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
7
8P
9P

116.8
116.9
117.1
117.2
117.2
118.2
118.8
119.2
119.9

2.6
2.7
2.4
2.2
1.5
2.2
2.7
2.8
3.2

72.9
78.8
90.4
93.1
92.2
97.5
98.4
90.9
103.3

-29.2
-11.7
-13.6
-10.7
-10.5
-3.3
-1.0
-1.1
9.8

61.4
66.9
69.2
71.5
72.9
76.6
78.7
77.7
80.2

P: Preliminary
Source: Statistics Korea

Economic Bulletin

53

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

Period

2007
2008

Consumer
goods
sales
index

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
IIIP

105.9
113.2
112.4

-4.9
1.6
3.5

113.2
140.9
138.7

-13.6
4.0
10.1

102.8
108.1
94.9

-0.9
0.3
0.2

107.1
109.0
114.0

-1.4
1.0
2.0

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
7
8P
9P

108.0
100.7
109.1
108.6
116.6
114.3
111.3
107.9
117.9

-3.3
-6.1
-5.2
-3.9
1.6
7.5
1.8
1.9
6.7

102.5
114.3
122.9
123.7
142.8
156.3
141.3
128.8
146.0

-20.8
-3.7
-15.1
-12.0
3.8
21.9
0.1
6.0
26.5

103.2
96.8
108.4
110.0
113.5
100.7
95.8
87.3
101.7

-1.2
-0.5
-0.7
0.7
0.9
-1.1
-2.2
0.2
2.6

113.6
98.8
108.8
107.0
112.5
107.5
110.9
112.6
118.5

5.1
-8.4
-0.9
-1.0
0.7
3.5
4.9
1.1
0.3

P: Preliminary
Source: Statistics Korea

54

November 2009

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
IIIP

105.9
113.1
118.2

-9.7
-2.2
4.1

112.8
137.9
137.6

-14.9
1.1
11.9

103.2
103.2
110.4

-7.3
-4.0
0.6

-

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
9
10

105.7
102.3
109.8
110.5
111.5
117.4
117.6
109.9P
127.0P

-15.6
-3.9
-8.7
-7.8
-3.7
5.2
0.0
-1.3P
13.9P

99.0
115.2
124.3
119.0
138.6
156.0
143.7
124.7P
144.5P

-24.7
-5.9
-13.4
-17.4
1.2
21.7
7.1
5.0P
24.6P

108.4
97.2
104.0
107.1
100.6
102.0
107.1
104.0P
120.0P

-11.7
-2.8
-6.4
-2.7
-6.3
-2.9
-3.5
-4.0P
9.4P

84
85
84
98
105
106
109
114
114
117

P: Preliminary
Source: Statistics Korea & The Bank of Korea

Economic Bulletin

55

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
IIIP

5,205
5,227
5,833

931
701
1,348

4,274
4,527
4,484

2,083
2,330
2,456

92.8
104.9
102.5

98.1
111.2
106.3

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
7
8P
9P

1,636
1,727
1,842
1,534
1,466
2,228
2,544
1,423
1,865

232
519
181
93
98
510
1,074
73
201

741
562
780
690
700
940
795
691
970

84.7
92.4
101.3
99.4
102.7
112.6
96.5
95.7
115.2

84.3
97.5
112.5
109.5
102.9
121.1
106.4
97.1
115.4

2007
2008

20.6
-12.8

-11.4
5.0

29.9
-18.1

8.2
-4.3

3.3
0.0

1,404
1,209
1,661
1,441
1,368
1,718
1,470
1,350
1,663
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
IIIP

-33.8
-14.1
6.5

150.5
30.9
281.3

-42.9
-18.5
-12.4

-57.8
-25.8
-16.7

-17.7
-13.4
-9.9

-12.2
-7.8
-6.7

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
7
8P
9P

-47.4
-26.2
-23.7
-24.9
-21.3
2.1
7.3
-15.7
31.9

56.4
660.1
16.7
-2.9
10.5
45.1
498.8
-15.7
129.5

-52.6
-46.8
-26.5
26
22.9
-6.2
-32.9
-15.7
25.5

-63.6
-64.2
-41.4
-39.3
-23.4
-13.8
-35.9
-28.4
30.6

-21.4
-11.3
-19.9
-18.9
-16.2
-4.9
-18.8
-15.5
5.8

-20.7
-5.2
-10.6
-8.4
-15.7
1.0
-11.0
-10.3
1.4

P: Preliminary
Source: Statistics Korea

56

November 2009

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

Period

Type of order

Private

Public

Private

25,098
26,728

54,559
55,509

112,502
102,321

28,695
31,320

77,554
65,294

Public

82,939
86,806

2007
2008

Type of order

Domestic
construction
orders received
(total)

Value of
construction
completed
(total)

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
IIIP

19,115
23,716
22,050

6,562
8,678
7,854

11,536
13,623
12,975

17,567
25,485
18,620

9,024
17,350
8,237

8,055
7,201
9,640

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
6,734
8,311

2,149
2,036
2,377
2,643
2,611
3,423
2,380
2,443
3,031

5,333
4,880
7,354
7,249
6,988
11,247
5,527
4,352
8,741

2,552
2,695
3,778
5,610
4,295
7,445
2,947
1,713
3,576

2,514
2,079
3,462
1,260
2,573
3,369
2,362
2,569
4,709

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
7
8P
9P

2007
2008

3,608
3,782
4,147
4,415
4,232
4,977
4,249
3,923
4,802
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
IIIP

4.5
7.0
-1.2

24.4
32.1
20.8

-5.0
-5.2
-11.8

-16.5
-2.0
9.1

22.0
186.5
75.6

-38.4
-62.4
-10.7

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
-7.9
6.0

25.2
34.0
16.5
34.3
17.4
44.1
17.5
14.2
29.6

-11.4
2.3
-5.1
-4.8
-10.5
-0.5
-11.3
-18.6
-5.9

-15.0
-20.7
-14.7
-8.0
-18.5
17.9
2.9
-29.5
58.4

33.8
31.6
9.7
221.8
71.9
310.3
111.7
12.7
101.1

-39.7
-46.5
-31.1
-78.8
-56.3
-54.2
-31.6
-42.0
61.8

2009

1
2
3
4
5
6
7
8P
9P

P: Preliminary
Source: Statistics Korea

Economic Bulletin

57

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
11

110.6
111.8
113.0
115.0
117.4
120.5
122.2P
123.4P
124.3P
-

-4.1
-3.0
-2.0
0.1
2.1
2.6
1.4P
1.0P
0.7P
-

110.9
110.9
111.9
113.6
114.5
116.9
118.3P
119.4P
120.0P
-

58.1
62.4
89.0
93.7
100.9
96.6
98.5
96.0
110.5
107.5
-

52.0
66.0
76.1
86.7
103.8
100.2
98.7
99.8
117.0
116.5
109.0

Period

Leading
index
(2005=100)

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

P: Preliminary
Source: Statistics Korea & The Federation of Korean Industries

58

November 2009

92.4
92.0
92.5
93.5
93.8
95.4
96.2P
96.7P
96.8P
-

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
III

8,576.7
13,173.8
10,472.5

8,349.6
17,625.5
14,908.6

74,412.0
90,837.7
95,451.3

71,384.9
73,700.2
84,827.5

-1,883.3
-4,021.6
-5,319.5

832.4
180.8
1,617.1

1,278.0
-610.9
-733.7

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
9

-1,635.8
3,563.7
6,648.8
4,247.4
3,495.8
5,430.6
4,358.7
1,912.2
4,201.6

-1,736.5
3,106.9
6,979.2
6,131.8
4,882.0
6,611.7
6,126.4
3,332.0
5,450.2

21,131.1
25,396.8
27,885.5
30,324.8
27,954.8
32,558.2
31,982.7
28,961.8
34,506.8

24,919.8
22,575.4
23,889.7
24,789.1
23,327.1
25,584.1
27,642.9
27,389.2
29,795.4

-708.6
-529.0
-645.7
-1,109.3
-1,466.9
-1,445.4
-1,894.1
-1,791.3
-1,634.1

563.5
484.6
-215.7
-855.5
358.3
678.0
481.6
587.4
548.1

245.8
501.2
531.0
80.4
-277.6
-413.7
-355.2
-215.9
-162.6

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

Economic Bulletin

59

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

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

2009

-548.7
8,893.7
15,090.0

-1,194.7
39.3
-1,485.1

3,532.3
16,740.2
19,919.7

-4,893.6
-614.9
-1,296.5

1,282.3
-7,565.6
-2,344.4

736.9
275.5
284.0

-9,017.4
-19.541.8
-23,886.9

989.4
-2,525.7
-1,675.6

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
9

5,139.4
-2,976.9
-2,711.2
2,161.3
7,022.9
-290.5
2,384.8
5,461.0
7,244.2

-55.0
-545.5
-594.2
80.4
-259.6
218.5
-1,139.3
-111.2
-234.6

5,678.8
161.4
-2,307.9
7,133.0
4,263.5
5,343.7
7,940.1
4,063.5
7,916.1

-248.5
-2,321.2
-2,323.9
-679.8
1,341.1
-1,276.2
-272.7
-721.0
-302.8

-379.4
-610.3
2,272.0
-4,532.6
1,586.9
4,619.9
-4,379.3
2,176.2
-141.3

149.6
326.1
261.2
140.5
93.8
41.2
208.5
52.3
23.2

-4,488.6
-1,260.0
-3,268.8
-5,444.1
-10,248.6
-3,849.1
-5,573.6
-7,095.2
-11,218.1

985.0
673.2
-668.8
-964.6
-270.1
-1,291.0
-1,169.8
-278.0
-227.7

2007

I
II
IIIP

P: Preliminary
Source: The Bank of Korea

60

November 2009

Capital transfers
Other
& acquisition of
investment non-financial
assets

Errors and
omissions

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
10

110.8
111.6
112.4
112.7
112.7
112.6
113.0
113.4
113.5
113.2

110.4
112.1
113.3
113.8
113.6
113.3
113.9
114.5
114.6
113.9

111.1
111.2
111.8
112.0
112.0
112.1
112.5
112.7
112.7
112.8

111.1
111.5
112.0
112.2
112.4
112.5
112.7
112.8
112.9
113.0

109.6
110.3
110.8
111.0
110.1
109.8
111.1
111.7
111.8
110.9

110.4
111.5
112.1
112.1
111.0
110.5
112.1
112.9
113.0
111.8

111.1
116.5
118.4
112.2
106.3
108.3
109.0
109.3
107.3
-

138.1
143.5
145.4
134.1
130.0
136.7
136.6
139.5
136.8
-

Y-o-Y change (%)
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
10

3.7
4.1
3.9
3.6
2.7
2.0
1.6
2.2
2.2
2.0

3.9
5.2
5.8
5.2
3.3
1.6
0.9
2.0
2.2
2.0

3.7
3.4
2.7
2.6
2.3
2.2
2.2
2.2
2.1
2.0

5.2
5.2
4.5
4.2
3.9
3.5
3.2
3.1
2.7
2.6

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

5.7
5.5
4.3
1.6
-1.9
-4.3
-5.1
-4.0
-3.4
-4.2

18.6
22.9
17.4
7.7
-4.1
-3.3
-2.7
-1.1
-7.2
-

16.7
18.0
10.6
-1.8
-13.9
-11.9
-12.9
-7.0
-10.8
-

Source: The Bank of Korea

Economic Bulletin

61

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
10

23,709
23,667
24,062
24,456
24,658
24,927
24,756
24,525
24,630
24,655

22,861
22,742
23,110
23,524
23,720
23,967
23,828
23,620
23,805
23,856

3,895
3,842
3,813
3,846
3,846
3,836
3,802
3,761
3,810
3,858

17,663
17,539
17,701
17,899
18,016
18,251
18,210
18,048
18,155
18,130

3.6
3.9
4.0
3.8
3.8
3.9
3.7
3.7
3.4
3.2

16,053
15,953
16,076
16,353
16,484
16,736
16,589
16,479
16,687
16,690

9,102
9,194
9,174
9,227
9,316
9,340
9,383
9,472
9,606
9,628

4,982
4,862
4,941
5,051
5,076
5,281
5,255
5,117
5,151
5,170

1,969
1,897
1,961
2,076
2,092
2,115
1,952
1,890
1,931
1.892

Y-o-Y change (%)
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
10

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

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

-3.2
-4.4
-4.7
-3.9
-3.5
-3.9
-4.3
-3.5
-3.0
-2.2

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

-

0.1
0.7
0.5
0.6
0.5
2.1
1.4
2.3
2.9
2.3

3.3
4.4
3.1
3.7
3.4
3.3
3.6
4.0
5.1
5.4

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

-6.3
-4.1
-5.4
-7.2
-6.2
-4.5
-9.1
-6.7
-6.5
-11.7

Source: Statistics Korea

62

November 2009

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
10

2.4
2.1
1.8
1.8
1.9
1.9
1.9
2.0
2.0
2.0

3.2
2.7
2.5
2.4
2.4
2.4
2.4
2.5
2.6
2.8

7.3
7.1
6.1
5.7
5.2
5.2
5.5
5.7
5.6
5.6

3.4
3.8
3.7
3.8
3.8
4.1
4.1
4.4
4.4
4.5

4.0
4.6
4.5
4.4
4.5
4.7
4.6
4.9
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
1,580.69

Source: The Bank of Korea

Economic Bulletin

63

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
9

64,040.6
63,061.7
65,669.5
61,379.9
60,082.5
59,530.3
59,420.2
60,570.3
59,650.3

331,358.0
334,521.7
342,777.0
350,446.0
355,922.0
362,111.3
363,421.4
361,012.4
367,070.3

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
1,535,279.8

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
1,972,156.3

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
9

27.4
20.0
32.5
21.1
19.0
16.1
17.4
16.5
11.9

8.3
9.8
14.3
17.4
17.0
18.5
18.5
18.5
19.5

12.0
11.4
11.1
10.6
9.9
9.6
9.7
10.0
10.0

9.2
8.8
8.4
7.7
7.3
7.0
7.7
8.0
7.7

P: Preliminary
Source: The Bank of Korea

64

November 2009

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
10

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
1,200.6

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
1,175.3

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
1,312.6

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
1,300.8

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
1,781.3

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
1,742.9

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
10

45.0
61.8
38.9
34.8
23.4
23.1
23.0
15.1
0.1
-7.0

42.8
51.3
49.2
36.0
21.4
22.5
24.0
18.9
7.9
-11.4

71.1
73.2
41.5
43.8
34.5
36.1
39.3
34.9
15.3
0.5

70.4
75.6
53.8
40.9
31.2
35.6
40.2
36.9
25.6
-2.0

26.1
35.6
16.1
14.8
10.8
9.9
11.1
11.9
1.6
7.0

29.4
31.1
25.3
13.9
6.5
10.4
10.7
13.1
9.0
-1.3

Source: The Bank of Korea

Economic Bulletin

65

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)
Kim, Sun-Young (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