Vol. 32 | No.

1

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
Labor union law revised

40

Economic News Briefing

43

Statistical Appendices

49

The Green Book
Current Economic Trends

Overview
The Korean economy continued an upward trend as real economic indicators such as
production, investment and exports stayed in a recovery phase, while financial markets
remained stable.
Mining and manufacturing production in November rose 1.4 percent month-on-month and
17.8 percent year-on-year. Service output fell 1.2 percent month-on-month, affected by the
H1N1 flu pandemic. On a year-on-year basis, however, the index rose 3.3 percent.
Consumer goods sales slightly declined month-on-month by 0.9 percent in November due to
drops in semi-durable and non-durable goods sales, while the indicator accelerated a yearon-year rise from 9.8 to 10.0 percent, backed by a low base effect and growing durable goods
sales.
Facilities investment increased in November by 7.0 percent month-on-month and 10.3
percent year-on-year, helped by recovering machinery investment. Construction completed,
thanks to the private sector posting a year-on-year rise in nine months, grew both month-onmonth and year-on-year by 1.2 percent and 4.2 percent, respectively.
Exports in December jumped 33.7 percent year-on-year, positively affected by a rise in major
exports including liquid crystal devices and a low base effect. Imports soared 24.0 percent
year-on-year, as imports of raw materials and capital goods rose and the low base lifted the
index.
The total number of workers hired shed 10,000 year-on-year in November, as hiring in the
agriculture, forestry & fishery significantly dropped. The unemployment rate slightly
increased month-on-month from 3.2 to 3.3 percent.
Consumer prices in December remained in the 2 percent range, despite rising prices of
agriculture, livestock & fishery products, of which the shipments declined due to a cold wave.
In December, financial markets continued to be stable, as worries over Dubai World’s
possible default eased, a Korea’s consortium won a contract to export nuclear facilities to the
United Arab Emirate (UAE), and the stock market rallied reflecting expectations over an
economic recovery, while the interest rate reversed to a slight increase.
To sum up, although the Korean economy passed the critical stage and has continued to
improve, the recovery does not seem to be firmly entrenched, as the private sector is not
strong enough to drive consumption, investment and employment, and external
uncertainties including oil prices are still lingering.
The Korean government, to secure economic recovery, will keep pursuing expansionary fiscal
policies and spend budgets as planned, and at the same time it will continue to create jobs
and support the working class. On the other hand, the government will step up its efforts to
reform the economy through corporate restructuring and nurture growth potential, in order
to found a basis for a future economic take-off.
Economic Bulletin

3

1. Global economy
The global economy is showing a gradual recovery as production and exports improved in
advanced countries. However, potential threats to global economic stability including
sluggish employment still remain.
Also, concerns grew over sovereign debt risks as Standard & Poor’s revised its credit outlook
for Spain to negative from stable on December 9, 2009 and Fitch cut Greece's credit rating to
BBB+ from A- on December 8.

US

The US revised down annualized quarter-on-quarter real GDP growth in the third quarter
from 2.8 to 2.2 percent, as the level of inventory declined and investment in non-housing
construction decelerated.
In November, production and consumption continued upward trends, as industrial
production increased 0.8 percent month-on-month, and retail sales 1.3 percent.
Sales of existing homes in November jumped 7.4 percent from the previous month, backed
by the tax credit, while new home sales fell 11.3 percent.
In November, non-farm payrolls declined at a slightly slower pace, while the unemployment
rate hovered over the 10-percent range, showing the sluggish labor market.
The Federal Reserve announced in the Federal Open Market Committee (FOMC) on
December 17, 2009 that it would maintain the target range for the federal funds rate at 0.0 to
0.25 percent, along with the plan to complete the purchase of US$1.25 trillion of agency
mortgage-backed securities and about US $175 billion of agency debt by the first quarter of
2010.
(Percentage change from previous period)
2008

Real GDP1
- Personal consumption expenditure
- Corporate fixed investment

2009

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Nov

0.4

-0.7

1.5

-2.7

-5.4

-6.4

-0.7

2.2

-

-0.2

-0.6

0.1

-3.5

-3.1

0.6

-0.9

2.8

-

1.6

1.9

1.4

-6.1

-19.5

-39.2

-9.6

-5.9

-

-22.9

-28.2

-15.8

-15.9

-23.2

-38.2

-23.3

18.9

-

Industrial production

-1.8

0.1

-1.2

-2.3

-3.4

-5.2

-2.7

1.5

0.8

Retail sales

-0.7

-0.5

0.4

-1.5

-6.7

-1.2

-0.3

1.6

1.3

New home sales

-37.4

-14.8

-9.6

-9.8

-15.0

-13.5

9.9

9.4

-11.3

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

-257

-113

-153

-208

-553

-691

-428

-199

-11

3.9

4.2

4.3

5.2

1.5

-0.2

-0.9

-1.6

1.8

- Construction investment for housing

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

4

January 2010

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

Investment and consumption in China continued to improve in November, with industrial
production surging and exports declining at a much slower pace. The consumer price index
turned positive and home prices had accelerated a rise since June 2009, fanning concerns
over a potential asset bubble.
Home prices (y-o-y, %)
-1.1 (Apr 2009)

-0.6 (May)

0.2 (Jun)

1.0 (Jul)

2.0 (Aug)

2.8 (Sep)

3.9 (Oct)

5.7 (Nov)

(Percentage change from same period in previous year)
2008

2009

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Oct

Nov

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

33.1

32.1

Retail sales

21.6

20.6

22.2

23.2

20.6

15.0

15.0

15.4

16.2

15.8

Industrial production

12.9

16.4

15.9

13.0

6.4

5.1

9.1

12.4

16.1

19.2

Exports

17.2

21.4

22.4

22.9

4.1

-19.7

-23.5

-20.7

-13.8

-1.2

Consumer prices

5.9

8.0

7.8

5.3

2.5

-0.6

-1.5

-1.3

-0.5

0.6

Producer prices

6.9

6.9

8.4

9.7

2.5

-4.6

-7.2

-7.7

-5.8

-2.1

Real GDP

Source: China National Bureau of Statistics

Japan

Japan revised down annualized quarter-on-quarter real GDP growth in the third quarter to
0.3 percent, but automobile sales rose in overseas markets, helping exports and industrial
production continue an upward march.
The Cabinet Office unveiled on December 9, 2009 its new economic stimulus package of 7.2
trillion yen (US$81 billion), which included employment promotion, while deflation took its
course as consumer prices declined for the eighth straight month.
(Percentage change from previous period)
2009

2008
Annual

Q1

Q2

Q3

Real GDP

-0.7

1.4

-2.1

-1.0

-2.7

Industrial and mining production

-3.4

0.3

-1.5

-3.3

-17.7

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

Q4

Q1

Q2

Q3

-3.1

0.7

0.3

-

-

-17.2

14.6

5.9

0.5

2.6

Oct

Nov

0.3

1.8

0.2

0.8

-1.5

-3.9

-0.9

-3.4

-1.0

-1.0

-3.5

5.9

1.8

3.2

-23.1

-46.9

-38.5

-34.4

-23.2

-6.3

1.4

1.0

1.4

2.2

1.0

-0.1

-1.0

-2.2

-2.5

-1.9

Source: Japan's Statistics Bureau and Statistics Centre

Eurozone

Eurozone’s exports declined at a slower pace, whereas the unemployment rate in October
hit 9.8 percent, the highest since 1980, showing the depressed employment market. The EU,
at the summit meeting on December 14, announced that the eurozone would maintain
economic stimulus policies until a durable economic recovery takes hold, as uncertainties
and vulnerabilities still lingered in the economy.
(Percentage change from previous period)
2008

2009

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Oct

Nov

0.8

0.8

-0.3

-0.4

-1.9

-2.4

-0.2

0.4

-

-

Industrial production

-1.7

0.9

-1.1

-1.8

-7.6

-8.7

-1.2

2.1

-0.6

-

Retail sales

Real GDP

-0.7

0.3

-0.6

-0.5

-0.9

-0.8

-0.3

-0.3

0.1

-

Exports (y-o-y, %)

3.6

6.5

8.0

5.3

-5.0

-20.9

-23.2

-19.3

-16.8

-

Consumer prices (y-o-y, %)

3.3

3.3

3.6

3.8

2.3

1.0

0.2

-0.4

-0.1

0.5

Source: Eurostat

6

January 2010

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 (preliminary GDP) in the third quarter increased 1.5 percent quarter-onquarter, or 0.8 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

0.8

1.1

-0.2

0.0

-4.6

0.4

3.6

1.5

3. Percentage change from previous period

Consumer goods sales in November edged down 0.9 percent month-on-month, but rose 10.0
percent year-on-year, posting an increase for the seventh consecutive month.
On a month-on-month basis, durable goods sales was up 4.4 percent for the third straight
month, whereas semi-durable and non-durable goods sales fell 1.9 percent and 3.3 percent,
respectively. On a year-on-year basis, durable goods sales jumped 39.5 percent, thanks to
solid automobiles sales backed by tax incentives, while sales of semi-durable and nondurable goods rose 1.3 percent and 2.1 percent, respectively.
(Percentage change from same period in previous year)
2008

2009

Annual

Q2

Q3

Q4

Q1

Q2

Q3

Sep

Oct1

Nov1

Consumer goods sales

1.0

2.9

1.4

-4.2

-4.9

1.6

3.4

6.6

9.8

10.0

(Seasonally adjusted)

-

-1.3

-0.1

-3.5

0.4

5.0

1.5

1.7

2.9

-0.9

1.9

8.7

0.0

-9.9

-13.6

4.0

9.9

26.1

15.6

39.5

- Durable goods

2

3

-2.0

7.1

-4.9

-19.5

-21.3

18.4

29.7

65.7

36.1

108.4

- Semi-durable goods4

-2.4

-2.1

0.6

-9.9

-0.9

0.3

0.2

2.6

3.6

1.3

- Non-durable goods

0.7

0.3

1.2

-0.4

-1.4

1.0

2.0

0.3

10.0

2.1

Automobiles

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 rose 5.5 percent, continuing an upward track for nine months in
a row, while sales at specialized retailers posted double-digit growth for the second straight
month.
(Percentage change from same period in previous year)
2008

- Department stores
- Large discounters
- Specialized retailers

2

2009

Annual

Q2

Q3

Q4

Q1

Q2

Q3

Sep

Oct1

Nov1

0.5

3.7

0.2

-5.0

1.4

2.8

6.5

8.8

12.0

5.5

2.2

3.1

-0.2

-1.2

-5.0

-2.9

-3.2

-2.0

5.5

-1.1

-1.7

0.7

-1.0

-8.1

-6.9

2.6

4.5

8.6

10.7

12.5

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

8

January 2010

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 December, consumer goods sales is likely to turn positive month-on-month, and continue
to rise year-on-year, given improving advanced estimates and consumer sentiment, and a
low base effect from the same period in the previous year.
Domestic credit card spending increased year-on-year from the previous month’s 18.3
percent to 20.0 percent, posting double-digit growth for the second consecutive month.
Sales at department stores grew 12.4 percent year-on-year, up 6.0 percentage points from
the previous month, continuing an upward trend. Sales at large discounters grew 3.9
percent year-on-year from the previous month’s decline of 2.8 percent.
Domestic sales of Korean cars soared 79.9 percent year-on-year, affected by the release of
new cars, demand surge before expiration of the tax break for new car purchases, and a low
base effect from the previous year. However, gasoline sales slightly declined.
Value of credit card use (y-o-y, %)
7.3 (Jul 2009)

10.9 (Aug)

14.7 (Sep)

9.4 (Oct)

18.3 (Nov)

20.0 (Dec)

Department store sales (y-o-y, %)
4.0 (Jul 2009)

7.6 (Aug)

8.6 (Sep)

11.4 (Oct)

6.4 (Nov)

12.4 (Dec)

Discount store sales (y-o-y, %)
-6.0 (Jul 2009)

-1.5 (Aug)

-6.0 (Sep)

4.5 (Oct)

-2.8 (Nov)

3.9 (Dec)

Domestic sales of Korean automobiles (y-o-y, %)
10.8 (Jul 2009)

13.0 (Aug)

76.0 (Sep)

23.8 (Oct)

83.6 (Nov)

79.9 (Dec)

Domestic sales of gasoline (y-o-y, %)
15.8 (Jul 2009)

4.0 (Aug)

-0.3 (Sep)

20.7 (Oct)

-3.0 (Nov)

-4.4 (Dec)

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

Stabilizing financial markets and improving consumer sentiment are also expected to
positively affect consumption.
Consumer prices (y-o-y, %)
1.6 (Jul 2009)

2.2 (Aug)

2.2 (Sep)

2.0 (Oct)

2.4 (Nov)

2.8 (Dec)

The won/dollar exchange rate (monthly average)
1,264 (Jul 2009)

1,238 (Aug)

1,219 (Sep)

1,175 (Oct)

1,164 (Nov)

1,166 (Dec)

1,659 (Sep)

1,631 (Oct)

1,583 (Nov)

1,647 (Dec)

KOSPI (monthly average)
1,460 (Jul 2009)

1,579 (Aug)

Consumer Sentiment Index (CSI)
109 (Jul 2009)

10

January 2010

114 (Aug)

114 (Sep)

117 (Oct)

113 (Nov)

113 (Dec)

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 (preliminary GDP) in the third quarter posted a quarter-on-quarter
increase of 10.4 percent, and a year-on-year loss of 7.4 percent.
(Percentage change from same period in previous year)
2007

Facility investment2
(Seasonally adjusted)3
- Machinery
- Transportation equipment
1. Preliminary
2. National accounts
Source: The Bank of Korea

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

-7.4

-

-

-0.4

0.4

0.2

-14.2

-11.2

10.1

10.4

9.2

-2.7

-1.2

-0.1

6.5

-15.3

-24.0

-19.6

-15.1

9.6

0.4

12.2

5.1

-3.6

-9.9

-21.8

-3.2

21.8

3. Percentage change from previous period

Facility investment in November rose 10.3 percent year-on-year, as machinery investment, in
particular that in semi-conductor equipment, rapidly improved, and transportation
equipment investment, in particular automobile investment, continued to increase.
Machinery investment increased 7.4 percent year-on-year, the second fastest increase since
November 2007 when it rose 7.9 percent, approaching the pre-crisis level.
Machinery investment index
109.7 (Sep 2008)

99.2 (Oct)

83.1 (Jan 2009)

90.1 (Aug)

107.8 (Nov)

(Percentage change from same period in previous year)
2007

Facility investment
(Seasonally adjusted)

2

- Machinery

2008

2009

Annual

Annual

Q4

Q1

Q2

Q3

Sep

Oct1

Nov1

8.2

-4.3

-13.4

-17.7

-13.4

-10.1

5.0

0.5

10.3

-

-

-9.3

-11.6

6.6

4.2

17.9

-5.6

7.0

7.5

-5.7

-14.5

-21.9

-19.5

-17.2

-6.0

0.6

7.4

11.3

1.5

-9.0

0.4

11.3

19.6

54.4

0.0

21.1

20.6

-5.5

-47.3

-33.8

-14.1

6.5

31.9

3.0

56.6

- Public

-11.4

4.9

-3.5

150.5

30.9

281.3

129.5

-75.7

108.8

- Private

24.5

-6.2

-53.9

-42.9

-18.5

-12.4

25.5

26.9

46.4

1.7

-2.2

-15.6

-18.9

-8.5

1.6

8.3

-3.0

15.1

- Transportation equipment
Domestic machinery orders

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

Facility investment in December is projected to stay on an upward track, given growing
corporate investment confidence and improving leading indicators such as rising domestic
machinery orders and increasing facility investment adjustment pressure.

2009

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

12

January 2010

2010

Sep

Oct

Nov

Dec

Jan

95

100

96

98

103

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 (preliminary GDP) in the third quarter rose 2.7 percent year-onyear, and declined 2.0 percent quarter-on-quarter.
(Percentage change from same period in previous year)
2007

Construction investment
(Seasonally adjusted)

2

3

- Building construction
- Civil engineering works

2008

20091

1

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

2.7

-

-

-2.5

-0.3

0.1

-3.0

5.2

1.7

-2.0

-0.0

-4.3

-1.2

-0.1

-0.1

-14.3

-11.1

-3.5

-0.4

3.8

1.3

-3.2

-0.7

0.7

5.7

24.9

14.3

7.7

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

Construction completed (current value) in November rose 4.2 percent year-on-year, as
construction completed in the private sector improved along with the public sector, for the
first time in nine months since February 2009, landing at a 3.4 percent increase year-on-year.
Both building construction and civil engineering works climbed by 0.5 percent and 9.8
percent, respectively.
(Percentage change from same period in previous year)
2007

2008

2009

Annual

Annual

Q4

Q1

Q2

Q3

Sep

Oct1

Nov1

6.6

4.7

-2.2

4.5

7.0

-0.6

7.7

-5.2

4.2

-

-

-6.2

7.7

2.2

-6.6

10.1

-2.9

1.2

- Public

8.4

6.5

8.7

24.4

32.1

21.7

32.2

4.9

8.1

- Private

4.6

1.7

-9.1

-5.0

-5.2

-11.3

-4.3

-9.6

3.4

23.6

-9.0

-6.5

-16.5

-2.0

9.1

58.4

27.2

77.0

- Public

40.3

9.1

5.0

22.0

186.5

75.6

101.1

89.7

64.6

- Private

16.5

-15.8

-15.3

-38.4

-62.4

-10.7

61.8

16.3

85.6

13.3

-20.1

-41.9

-31.6

-32.7

-4.6

31.4

-29.5

14.1

Construction completed
(Seasonally adjusted)

Construction orders

Building permit area

2

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

Construction investment is projected to slightly improve in December, given a rise in leading
indicators such as construction orders and building permit area. Construction orders in the
private sector, for the first time since December 2007, advanced for three consecutive
months from a year earlier.

14

January 2010

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 December soared 33.7 percent year-on-year to US$36.24 billion.
The large increase in exports is mainly attributed to a low base effect from the previous year
and the global economy recently recovering. Daily average exports in working-day-adjustedterms also rose from the previous month.
By export category, liquid crystal devices (up 177.7%) and semiconductors (up 125.5%)
surged, and by regional category, exports to China (up 94.0%) and the EU (up 41.7%) greatly
improved.
(US$ billion)
2008

Exports
(y-o-y, %)

2009

Annual

Dec

Q1

Q2

Q3

Oct

Nov

Dec

Jan-Dec

422.01

27.12

74.41

90.32

94.77

33.96

34.08

36.24

363.77

13.6

-17.9

-25.2

-21.1

-17.6

-8.5

18.1

33.7

-13.8

1.53

1.13

1.10

1.30

1.32

1.48

1.48

1.51

1.30

435.27

26.58

71.45

73.82

84.79

30.34

29.46

32.94

322.79

(y-o-y, %)

22.0

-21.6

-32.6

-35.7

-31.0

-16.0

2.1

24.0

-25.8

Average daily imports

1.58

1.11

1.06

1.06

1.18

1.32

1.28

1.37

1.16

Average daily exports
Imports

Source: Korea Customs Service

Imports in December jumped 24.0 percent year-on-year to US$32.94 billion due to a low
base effect and improving domestic demand. Average daily imports in working-dayadjusted-terms also increased from the previous month. Imports of capital goods further
expanded, while raw material imports switched to an increase, affected by rising oil prices.
Raw materials (y-o-y, %)
-34.7 (Q1 2009)

-43.0 (Q2)

-39.3 (Q3); -7.0 (Nov)

24.8 (Dec)

-13.7 (Q3); 17.8 (Nov)

29.1 (Dec)

-20.9 (Q3); 15.3 (Nov)

7.4 (Dec)

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

-23.6 (Q2)

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

-24.4 (Q2)

The trade balance in December posted a surplus of US$3.30 billion, staying in the black for
eleven straight months since February 2009. The annual trade balance of 2009 recorded a
surplus of US$40.98 billion, the largest surplus ever.
(US$ billion)
2008

Trade Balance
Source: Korea Customs Service

16

January 2010

2009

Annual

Dec

Q1

Q2

Q3

Oct

Nov

Dec

Jan-Dec

-13.27

0.32

2.99

16.50

9.98

3.62

4.62

3.30

40.98

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 rose 1.4 percent month-on-month in November,
thanks to an export increase and a low base effect from the previous month due to Chuseok
holidays, while year-on-year it surged 17.8 percent
By business category, semiconductors and parts (up 56.3%), chemical products (up 28.0%),
and automobiles (up 14.9%) posted an increase year-on-year, whereas beverages (down
9.6%) and metalworks (down 2.5%) decreased.
Shipments soared 2.0 percent month-on-month, or 15.3 percent year-on-year, thanks to
brisk shipments of semiconductors and parts, while the level of inventory decelerated a drop
from the previous month’s 16.2 percent to 14.5 percent.
By business category, the shipments of semiconductors and parts (up 47.1%) and
automobiles (up 18.6%) rose year-on-year, while those of refined petroleum products (down
2.4%) and transportation equipment (down 2.9%) declined. The inventories of automobiles
(down 30.9%), primary metals (down 21.4%), and chemical products (down 21.1%) went
down.
The average operation ratio of the manufacturing sector registered 77.3 percent, staying at
the same level as the previous month.
(Percentage change from same period in previous year)
2008
Q3

Nov

Q2

Q3

Sep

Oct1

Nov1

-

-1.9

-10.1

11.4

7.2

5.7

-3.8

1.4

(y-o-y)

3.0

5.6

-13.8

-6.2

4.2

11.0

0.2

17.8

- Manufacturing

3.0

5.6

-14.5

-6.6

4.4

11.5

0.4

18.6

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

-15.0

-6.2

5.6

12.4

1.9

21.5

-2.2

0.0

-12.2

-8.8

-1.8

6.5

-7.1

4.4

2.4

5.3

-13.2

-5.8

2.1

8.9

-0.6

15.3

-0.7

1.7

-14.0

-6.6

3.1

12.4

-1.0

13.5

- Exports

7.1

10.3

-11.9

-4.7

0.8

4.3

-0.1

17.7

Inventory3

7.3

17.3

16.1

-16.7

-13.9

-13.9

-16.2

-14.5

Manufacturing Average operation ratio (%)
activity
Production capacity

77.2

78.3

68.4

73.7

78.9

80.2

77.3

77.3

5.2

5.3

3.4

1.9

2.8

3.2

3.4

3.5

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

3. End-period

Mining and manufacturing production in December is projected to continue an upward track,
as advanced estimates, in particular electricity sales and exports, showed an improvement.
Industrial electricity sales (thousand GWh)
18.3 (Sep 2009)

17.7 (Oct)

18.1 (Nov)

19.0 (Dec)1

34.1 (Sep)

34.0 (Oct)

1. Estimate

Exports (US$ billion)
32.0 (Jul 2009)

18

January 2010

28.9 (Aug)

34.1 (Nov)

36.2 (Dec)

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 November 2009 decreased 1.2 percent from the previous month partly due
to the H1N1 flu pandemic. From a year earlier, however, service output expanded 3.3
percent.
By business category, real estate & renting services (up 15.9%), healthcare & social welfare
services (up 11.6%) and wholesale & retail sales (up 5.4%) led the year-on-year increase in
the service sector.
Meanwhile, entertainment, cultural & sports services (down 6.9%) and professional,
scientific & technical activities (down 3.9%) declined from a year earlier.
(Percentage change from same period in previous year)
Weight

2008

2009

Annual

Q3

Q4

Q1

Q2

Q3

Sep

Oct1

Nov1

Service activity index

100

3.4

3.2

-0.4

-0.4

1.6

2.2

4.4

1.3

3.3

- Wholesale & retail

22.0

1.4

3.6

-4.6

-4.0

-2.2

0.3

3.3

1.9

5.4

- Transportation services

9.0

4.3

4.3

-3.2

-10.8

-9.5

-4.1

0.4

-2.5

2.6

- Hotels & restaurants

7.8

0.7

1.7

-3.0

-2.4

-0.3

-2.2

0.0

-2.7

-2.0

- Information & communication services

8.4

3.5

3.4

-0.2

-1.9

0.9

1.5

3.2

1.5

1.4

15.3

9.7

9.6

4.5

6.6

9.8

8.7

9.4

4.0

4.5

- Real estate & renting

6.3

-2.1

-8.4

-7.5

-3.1

1.5

9.3

9.7

14.3

15.9

- Professional, scientific & technical services

4.8

2.0

1.8

0.9

-1.9

3.2

0.1

3.0

-2.9

-3.9

- Financial & insurance services

- Business services

2.9

4.6

3.2

0.1

-4.8

-6.6

-1.1

-1.2

-0.5

-2.4

10.8

1.8

-0.5

2.3

3.7

6.9

-2.6

-0.3

-7.0

0.2

- Healthcare & social welfare services

6.0

6.3

6.1

6.5

8.6

8.1

9.8

11.4

11.4

11.6

- Entertainment, cultural & sports services

2.9

2.2

1.7

4.3

1.5

0.9

0.1

4.7

-6.6

-6.9

- Membership organizations

3.8

0.1

-1.4

-1.0

-3.4

-5.0

-1.7

1.9

-0.8

-3.5

- Sewerage & waste management

0.4

5.8

3.9

4.0

0.5

8.8

5.5

9.6

-3.5

0.3

- Educational services

1. Preliminary
Source: Statistics Korea

Amid robust advanced indicators including credit card spending, service activity in
December 2009 is expected to reverse its course to post a month-on-month increase, mainly
affected by the subdued H1N1 flu pandemic and rising stock prices.

Value of credit card use (y-o-y, %)
10.9 (Aug 2009)

14.7 (Sep)

9.4 (Oct)

18.3 (Nov)

1. Estimate

KOSPI (monthly average)
1,630 (Oct 2009)

20

January 2010

1,583 (Nov)

1,647 (Dec)

20 (Dec)1

l es

l&

tate

ncia

tion

& 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

ion

& re

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

Rea

Fina

rtat

ale

& re

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)

November 2009 service industry by business

Source: Statistics Korea (service industry activity trend)

Economic Bulletin

21

8. Employment
The number of workers on payroll in November 2009 declined by 10,000 from a year earlier
as hiring in the agriculture, forestry & fishery dropped significantly.
Employment in the manufacturing sector continued to decrease mainly due to sluggish
exports. The pace of decline in the sector, however, decelerated to 43,000. Hiring in the
construction sector stayed on a downward track with a 115,000 decrease as employment in
the private sector remained weak. Employment in the service sector soared by 294,000
driven by the government’s job creation policies. Meanwhile, the number of employed in the
agriculture, forestry & fishery plunged 151,000 as fall cultivation declined while the
temperature dropped.
By status of workers, non-wage workers including self-employed workers plummeted by
424,000 from a year earlier. In the mean time, wage workers rose by 413,000 led by an
increase of 492,000 in regular workers and 186,000 in temporary workers, although the
number of daily workers shrank by 264,000.
(Change from same period in previous year, thousand)
2008

2009

Annual

Nov

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Oct

Nov

Employment growth

145

78

209

173

141

54

-146

-134

-1

10

-10

- Manufacturing

-52

-86

-18

-34

-52

-103

-163

-151

-143

-87

-43

- Construction

-37

-32

-22

-46

-40

-41

-43

-113

-103

-147

-115

- Services

263

150

307

300

262

187

47

155

269

269

294

- Agriculture, forestry & fishery

-37

42

-63

-54

-38

8

14

-25

-25

-29

-151

- Wage workers

236

159

312

289

208

137

73

175

356

376

413

Regular workers

386

318

435

448

347

316

318

313

386

490

492

Temporary workers

-93

-103

-98

-96

-83

-94

-136

-5

125

136

186

Daily workers

-57

-56

-25

-63

-56

-85

-108

-133

-155

-250

-264

-92

-81

-102

-115

-66

-83

-220

-309

-357

-367

-424

-79

-83

-79

-67

-76

-95

-197

-286

-276

-266

-307

- Non-wage workers
Self-employed workers
Source: Statistics Korea

The employment rate stood at 59.1 percent, down 0.8 percentage points compared to the
same month of the previous year. The unemployment rate rose 0.2 percentage points yearon-year to 3.3 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
Annual
Unemployment rate (%)
Employment rate (%)
Source: Statistics Korea

22

January 2010

Nov

Q1

2009
Q2

Q3

Q4

Q1

Q2

Q3

Oct

Nov

3.2

3.1

3.4

3.1

3.1

3.1

3.8

3.8

3.6

3.2

3.3

59.5

59.9

58.5

60.3

59.9

59.4

57.4

59.3

59.1

59.3

59.1

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 December 2009 was up amid global market rallies and
expectations over an economic recovery.
Investor sentiment in the market was boosted as Korea’s GDP in the third quarter expanded
3.2 percent from the previous quarter posting the highest quarter-on-quarter growth in 90
months while the IMF upgraded its forecasts for Korea’s economic growth for 2009 and 2010
to 0.25 percent and 4.5 percent, respectively, from initial estimates of minus 1 percent and
3.6 percent.
Despite liquidity problems of Kumho Asiana Group, the Korean stock market rallies
continued until the end of the year, mainly affected by a Korean consortium’s gaining of the
nuclear-plant contract with the United Arab Emirate (UAE).
Foreign investors led domestic stock market rallies by continuing their net-buying of Korean
shares since July, although the market was in a wait-and-see mode toward the end of the
year.
(End-period, point, trillion won)
KOSPI
Nov 2009

Dec 2009

1,555.6

1,682.8

818.5

Average daily trade value
Foreign stock ownership

Stock price index
Market capitalization

KOSDAQ
Change

Nov 2009

Dec 2009

Change1

127.2 (8.2%)

464.3

513.1

48.8 (10.5%)

887.3

68.8 (8.4%)

75.4

85.2

9.8 (13.0%)

4.0

4.5

0.5 (12.5%)

1.6

2.0

0.4 (25.0%)

32.7

32.7

0.0 (0.0%)

7.3

7.4

0.1 (5.8%)

1

1. Change from the previous month

9.2 Exchange rate
The won/dollar exchange rate in December rose 1.7 won from 1,162.9 won at the end of
November to wrap up the month at 1,164.5 won.
The exchange rate dropped to 1,153 won, the lowest this year, on December 4 as did on
November 18, as fear eased over Dubai’s debt default crisis. It, thereafter, turned to an
increase as investors’ appetite for safe assets grew as downgrades of Greece’s sovereign
credit rating fueled concerns over credit risks in the eurozone.
The won/yen exchange rate fell to the 1,200 won range with worries about deflation in
Japan.
(End-period)
2006

2007

2008

2009

Dec

Dec

Dec

Nov

Dec

Change1

Won/Dollar

929.8

936.1

1,259.5

1,162.8

1,164.5

8.2

Won/100Yen

783.4

828.6

1,396.8

1,348.8

1,264.5

10.5

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

January 2010

9-1

Stock prices

9-2

Foreign exchange rate (month-end)

9-3

Recent foreign exchange rate

Economic Bulletin

25

9.3 Bond market
Treasury bond yields were up in December due to less demand for safe assets with global
stock market rallies and expectations over an economic rebound.
Despite the Bank of Korea’s decision to keep its policy rate unchanged, the yields
accelerated the growth pace, as foreign investors made a net selling of KTB futures amid an
improvement of economic indicators such as industrial activities.
(End-period)
2005

2006

2007

2008

Dec

Dec

Dec

Dec

Oct

Nov

2009
Dec

Call rate (1 day)

3.76

4.60

5.02

3.02

2.01

2.01

2.01

0

CD (91 days)

4.09

4.86

5.82

3.93

2.79

2.79

2.88

9

Change1

Treasury bonds (3 yrs)

5.08

4.92

5.74

3.41

4.44

4.10

4.44

34

Corporate bonds (3 yrs)

5.52

5.29

6.77

7.72

5.58

5.21

5.56

35

Treasury bonds (5 yrs)

5.36

5.00

5.78

3.77

4.94

4.61

4.98

37

1. Basis point changes in December 2009 from the previous month

9.4 Money supply & money market
The M2 (monthly average) in October expanded 9.9 percent from a year earlier excluding
cash management accounts (CMAs), which were included in M2 since July 2009. The yearon-year M2 growth was higher than the previous month’s 9.5 percent, as financial
institutions are likely to have hiked their deposit rates to attract matured deposits.
(Percentage change from same period in previous year, average)
2007

2009

2008
Q1

Q2

Q3

Q4

Oct

Q1

Q2

Aug

Sep

Oct

Oct1

-1.8

-12.4

-0.1

2.1

5.0

4.2

10.8

17.6

18.5

19.5

19.6

371.5

11.2

14.3

13.3

15.3

14.7

13.8

14.2

11.5

10.1

9.5

9.5

9.9

1,543.4

10.2

11.9

11.6

12.8

12.1

11.2

11.9

8.8

7.3

7.6

7.3

Annual

Annual

M1+2

-5.2

M2
Lf3

Lower7 1,965.34

1. Balance at end October 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 September 2009, trillion won

Bank deposits in November increased driven by time deposits which expanded at a faster
pace with the inflow of massive corporate funds fueled by deposit rate hikes.
Asset management company (AMC) deposits shifted to an increase as financial institutions’
short-term idle money flowed into the deposits while money withdrawals from equity funds
declined.
(Monthly change, end-period, trillion won)
2007

2008

2009

Annual

Nov

Annual

Nov

Sep

Oct

Nov

Nov1

Bank deposits

59.6

11.2

104.3

9.4

16.5

-6.8

1.5

1,015.8

AMC deposits

61.8

14.3

63.0

2.8

-18.3

-7.3

4.4

342.9

1. Balance at end November 2009, trillion won

26

January 2010

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$4.28 billion surplus in November.
The goods account surplus exceeded US$5 billion for three consecutive months since
September 2009 as the trade balance continued to post a surplus.
The surplus expanded to US$5.84 billion from US$5.68 billion a month earlier. The service
account deficit increased to US$1.66 billion from the previous month’s US$1.31 billion, as
deficits swelled in the travel balance and fee payments such as payments for patent rights.
The income account surplus reduced to US$390 million from US$560 million of the previous
month as dividend and interest payments increased.
The current transfer account deficit was up to US$290 million from the previous month’s
US$160 million with increased outward remittance.
(US$ billion)
2008

Current account

2009

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Oct

Nov Jan-Nov

-5.78

-4.87

-0.41

-8.33

7.83

8.62

13.10

10.40

4.76

4.28

41.15

5.67

-1.38

5.53

-3.23

4.75

8.31

17.58

14.70

5.68

5.84

52.11

- Service balance

-16.67

-4.94

-4.46

-5.84

-1.44

-1.93

-4.17

-5.33

-1.31

-1.66

-14.40

- Income balance

5.90

1.98

-0.52

1.50

2.94

0.92

0.29

1.69

0.56

0.39

3.86

- Current transfers

-0.67

-0.53

-0.96

-0.76

1.58

1.31

-0.60

-0.66

-0.16

-0.29

-0.41

- Goods balance

Source: The Bank of Korea

The capital and financial account in November posted a net inflow of US$1.54 billion.
Capital & financial account balance (US$ billion)
-1.44 (Q1 2009)

8.68 (Q2)

14.40 (Q3); 1.58 (Oct)

1.54 (Nov)

The direct investment account expanded the net outflow to register US$2.84 billion from the
previous month’s deficit of US$510 million as outbound foreign direct investment (FDI) by
locals increased while inward FDI by foreigners decreased.
The portfolio investment account decreased the net inflow to record US$3.39 billion from
US$6.13 billion a month earlier as foreign investment in the Korean bond market declined.
The financial derivatives account turned to a net inflow of US$850 million from a net outflow
of US$570 million in the previous month as payments related to overseas financial
derivative transactions decreased.
The other investment account reversed its course to post a surplus of US$190 million after
recording a deficit of US$3.48 billion a month earlier as financial institutions collected shortterm foreign currency-denominated lending from overseas.
The current account is likely to record a surplus of around US$2 billion in December as the
trade balance posted a surplus of US$3.30 billion.

28

January 2010

11. Prices and international commodity prices
11.1 Prices
Consumer prices in December 2009 increased 0.4 percent month-on-month while rising 2.8
percent year-on-year.

Consumer price inflation
2008

2009

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Month-on-Month (%)

0.0

0.1

0.7

0.7

0.3

0.0

-0.1

0.4

0.4

0.1

-0.3

0.2

0.4

Year-on-Year (%)

4.1

3.7

4.1

3.9

3.6

2.7

2.0

1.6

2.2

2.2

2.0

2.4

2.8

Core consumer prices (y-o-y)

5.6

5.2

5.2

4.5

4.2

3.9

3.5

3.2

3.1

2.7

2.6

2.5

2.2

(m-o-m)

0.5

0.2

0.4

0.4

0.2

0.2

0.1

0.2

0.1

0.1

0.1

0.2

0.1

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

3.0

2.8

3.3

3.1

3.0

1.8

0.5

0.4

1.3

1.7

1.5

2.3

3.3

Source: Statistics Korea

The overall price index was up 0.4 percent month-on-month as prices for agricultural,
livestock and fishery products gained strength and a price adjustment increased personal
service charges in the year-end. Prices of agricultural, livestock and fishery products rose 2.8
percent from the previous month due to decreased supply affected by cold wave and higher
storage cost.
Prices of agricultural, livestock & fishery products in December 2009 (m-o-m, %)
Rice (-1.9), radish (0.7), Chinese cabbage (-6.4), cucumber (50.3), lettuce (36.3), mandarin orange (-11.1),
Korean beef (1.5), pork (3.1), mackerel (5.6), scabbard fish (4.1), Alaska pollack (3.1)

Despite stabilized international oil prices, prices of oil products increased 0.2 percent from a month
earlier affected by LPG price increases in December.
Prices of oil products in December 2009 (m-o-m, %)
Gasoline (-0.5), diesel (-0.7), kerosene (-0.3), LPG for automobiles (5.4), LPG for kitchen use (4.4)

Public utility charges remained at a similar level to the previous month as an increase in local public
utility charges was offset by falling medical service fees followed by expanded medical insurance
coverage.
Due to higher expenses for dining-out affected by beef price increases and strong demand for yearend parties on top of a peak price tariff introduced in the tourism and lodging industry during the
high season, personal service charges rose 0.3 percent month-on-month.

Consumer price inflation in major sectors

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

Total

Agricultural,
livestock & fishery
products

Industrial
products

Oil
products

Housing
rents

Public
utility

Personal
services

0.4

2.8

0.1

0.2

0.2

0.0

0.3

0.35

0.23

0.03

0.01

0.02

0.00

0.09

2.8

3.4

4.6

11.9

1.2

1.8

2.0

2.80

0.28

1.42

0.63

0.11

0.29

0.71

Source: Statistics Korea

Core consumer prices, which exclude the prices of oil and agricultural products, rose by 2.2 percent
year-on-year. Consumer prices for basic necessities, a barometer of perceived consumer prices, were
up 3.3 percent compared to the same month of the previous year.

30

January 2010

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
Before rising to the high-US$70s affected by strong demand for heating oil in the month-end,
international oil prices in December tumbled to remain around US$70 a barrel as the US
dollar gained strength. The monthly average oil prices turned to a fall for the first time in three
months.
(US$/barrel, period average)
2007

2008

2009

Annual

Annual

Annual

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Dubai crude

68.4

94.3

61.9

69.4

65.0

71.4

67.7

73.2

77.7

75.5

Brent crude

72.8

97.5

61.7

68.6

64.6

72.9

67.5

72.8

76.7

74.5

WTI crude

72.3

99.9

61.9

69.7

64.2

71.1

69.4

75.8

78.1

74.5

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)

Despite the won’s deppreciation, domestic prices of oil products inched down month-onmonth as weak international oil product prices by mid-December were reflected with the
time lag.
(Won/liter, period average)
2007

2008

2009

Annual

Annual

Annual

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Gasoline prices

1,526

1,692

1,601

1,607

1,639

1,670

1,681

1,627

1,655

1,646

Diesel prices

1,273

1,614

1,397

1,389

1,428

1,447

1,453

1,409

1,452

1,441

Source: Korea National Oil Corporation

Prices of non-ferrous metals in December continued to rise while international prices of grain
rose due to China’s increased demand.
Prices of non-ferrous metals increased with expectations of economic recovery in 2010
rather than fundamental factors including demand and supply conditions. Aluminum prices
grew at double digit with the spreading recognition that it remained relatively undervalued
compared to other non-ferrous metals.
Corn and soybean prices rose due to deteriorating weather conditions and increasing
demand from China while the wheat price increase is limited by favorable supply and
demand dynamics.
Prices of non-ferrous metals and grain in December 2009 (m-o-m, %)
Corn (3.0), wheat (0.2), soybean (2.4), bronze (4.8), aluminum (11.7), nickel (0.6), zinc (8.6), lead (1.2), tin (4.9)

Reuters index*

(Period average)

2007

2008

2009

Annual

Annual

Annual

Jun

Jul

Aug

Sep

Oct

Nov

Dec

2,400

2,536

2,079

2,117

2,082

2,159

2,147

2,197

2,243

2,294

* A weighted average index of 17 major commodities

32

January 2010

Source: KOREAPDS

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 December 2009, nationwide apartment sales prices were up 0.2 percent month-on-month,
decelerating the pace of increase for three straight months. Compared with the end of 2008,
apartment prices rose 1.6 percent. Apartment sales prices in the Seoul metropolitan area
were down for the first time since March 2009 as property transactions in major areas such
as Gangnam (down 0.1%), Seocho (down 0.1%), and Gwacheon (down 0.7%) continued to
contract. On the other hand, apartment sales prices in other cities, especially Busan (up
0.8%) and Daejeon (up 0.7%), increased relatively significantly.

Nationwide apartment sales prices

(Percentage change from previous period)

2006 2007

2008

2009

Annual Annual Annual Dec Annual Q1

Q2

Q3

Q4

Oct Nov Dec Dec71 Dec141 Dec211 Dec281

Nationwide

13.8

2.1

Seoul

24.1

Gangnam2

27.6

Gangbuk

2.3

-0.5

1.6

-1.2

0.4

1.5

0.9

0.4

0.3

0.2

0.03

0.03

0.03

3.6

3.2

-1.6

2.6

-1.3

1.0

2.6

0.3

0.3

0.0

0.0 -0.01 -0.01

0.00

0.01

0.5

-1.9

-2.0

3.9

-1.1

1.7

3.1

0.2

0.3

0.0

0.0 -0.01 -0.01

0.00

0.04

19.0

8.3

9.4

-1.3

0.9

-1.7

0.2

2.0

0.4

0.4

0.1

0.0 -0.01

0.00 -0.02

24.6

4.0

2.9

-1.4

0.7

-1.8

0.5

1.8

0.2

0.3

0.0 -0.1 -0.03 -0.03 -0.02 -0.01

5 metropolitan cities

2.1 -0.6

1.0

-0.3

2.8

-0.7

0.3

1.3

1.9

0.6

0.8

0.5

0.19

0.08

0.09

0.10

Other cities

3.0

2.3

-0.3

2.2

-0.3

0.3

0.8

1.5

0.5

0.6

0.4

0.08

0.12

0.08

0.05

3

Seoul metropolitan area

1. Weekly trends

0.3

2. Upscale area of southern Seoul

3. Northern Seoul

0.05

0.00

Source: Kookmin Bank

The rental prices have slowed down the growth pace for the third month in a row with the
beginning of the winter low season, by rising 0.3 percent from the previous month. From the
end of 2008, rental prices were up 4.5 percent. The rental prices in Gangnam (up 0.8%),
Seocho (up 1.2%), and Songpa (up 0.7%) remained strong.

Nationwide apartment rental prices

(Percentage change from previous period)

2006 2007

2008

2009

Annual Annual Annual Dec Annual Q1

Nationwide

7.6

Seoul
Gangnam

1.9

Q2

Q3

Q4

Oct Nov Dec Dec71 Dec141 Dec211 Dec281

0.8

-1.4

4.5 -1.3

0.9

2.8

2.0

0.9

0.8

0.3

0.09

0.09

0.08

0.08

11.5

2.2 -1.8

-2.7

8.1 -0.8

1.8

4.7

2.3

1.1

0.8

0.4

0.14

0.08

0.12

0.01
0.20

11.3

0.5 -3.6

-0.9 10.4 -0.1

2.4

5.1

2.7

1.1

1.0

0.5

0.25

0.10

0.18

Gangbuk3

11.8

4.6

0.5

-2.4

5.4 -1.6

1.0

4.2

1.9

1.1

0.6

0.2

0.00

0.07

0.04 -0.01

Seoul metropolitan area

11.7

2

2.1 -0.4

-2.2

5.6 -1.8

1.4

4.1

1.8

1.0

0.7

0.1

0.02

0.04

0.04

0.06

5 metropolitan cities

3.0

1.1

1.6

-0.4

3.9 -0.9

0.4

1.9

2.6

0.8

1.1

0.7

0.21

0.14

0.15

0.13

Other cities

4.1

2.2

2.6

-0.5

2.9 -0.4

0.5

1.0

1.8

0.5

0.7

0.5

0.13

0.17

0.11

0.09

1. Weekly trends

2. Upscale area of southern Seoul

3. Northern Seoul

Source: Kookmin Bank

Apartment sales transactions in November decreased 6.6 percent from 87,329 a month
earlier to post 81,589. The transactions were up 52.1 percent from a year earlier and down
8.3 percent compared with the monthly average recorded in the same month for the past 3
years.

Apartment sales transactions
2006

(Monthly average, thousand)

2007

2008

Annual Nov Annual Nov Annual Nov

Nationwide

94

152

Source: Korea Land Corporation

34

January 2010

84

80

74

54

2009
Dec

Jan

Feb

Mar

57

49

60

79

Apr May Jun

Jul

Aug

Sep

Oct

Nov

76

91

81

90

87

82

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 November rose 0.30 percent, the same level as the previous
month, continuing the moderate recovery pace since April 2009. The accumulated increase
rate from January to November was 0.61 percent, with land prices standing below the record
high in October 2008 by 3.5 percent.
In the Seoul metropolitan area, Seoul continued to slow the upward pace while Incheon and
Gyeonggi province continued to post high price increases rising by 0.55 percent and 0.47
percent, respectively.
Land price increases in Seoul metropolitan (m-o-m, %)
0.41 (Sep 2009)

0.37 (Oct)

0.36 (Nov)

In addition, price increases in other cities, especially Daegu (up 0.35%) and North
Gyeongsang province (up 0.33%), accelerated the growth pace.
Land price increases in other cities (m-o-m, %)
0.09 (Aug 2009)

0.12 (Sep)

0.16 (Oct)

0.21 (Nov)

Land prices by region

(Percentage change from previous period)
2007

2008

2009

Annual

Q1

Q2

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Oct

Nov

Nationwide

3.88

0.96

0.79

0.91

1.15

-0.31

1.23

1.46

1.18

-4.08

-1.20

0.35

0.88

0.30

0.30

Seoul

5.88

1.38

1.07

1.40

1.90

-1.00

1.83

2.17

1.59

-6.34

-1.38

0.68

1.30

0.30

0.24

Gyeonggi

4.22

1.07

0.89

1.05

1.14

-0.26

1.28

1.57

1.28

-4.28

-1.62

0.37

1.13

0.42

0.47

Incheon

4.86

1.13

1.37

1.36

1.67

2.01

-3.57

-1.39

0.53

1.16

0.51

0.55

1.24

1.28

1.12

Source: Korea Land Corporation

Nationwide land transactions in November expanded 39.0 percent or 58,000 land lots from a
year earlier to 207,000 land lots. In terms of gross area, land transactions were up 39.9
percent.
Nationwide land transactions excluding Daegu (down 26.1%) increased year-on-year.
Particularly, land transactions in Daejeon (up 98.0%), Gangwon province (up 74.2%), and
Busan (up 69.4%) soared.

Land sales transactions

(Monthly average, land lot, thousand)

2007

2008

Annual Annual Sep

2009

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

208

208

173

191

148

162

134

164

207

207

192

215

222

206

226

212

207

Seoul

33

26

20

23

14

13

13

15

20

24

22

27

26

25

28

25

19

Gyeonggi

49

45

37

36

28

31

26

34

41

48

45

49

50

48

56

52

48

Incheon

13

13

11

10

8

8

7

7

9

10

9

10

11

10

13

14

11

Nationwide

Source: Korea Land Corporation

36

January 2010

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 coincident composite index was up 0.3 percent in November from the previous month
while the cyclical indicator of coincident composite index remained unchanged.
Three out of all components of the index including the volume of imports decreased. The
value of construction completed, the mining & manufacturing production index, the
domestic shipment index, and the number of non-farm payroll employment were up.
Components of coincident composite index in November 2009 (m-o-m)
Value of construction completed (2.5%), mining & manufacturing production index (1.0%), domestic shipment
index (0.7%), number of non-farm payroll employment (0.1%), service activity index (0.0%), manufacturing
operation ratio index (-0.1%), wholesale & retail sales index (-0.7%), volume of imports (-0.9%)

The year-on-year leading composite index, which foresees the future economic conditions,
went up 1.3 percentage points month-on-month in November. The 12-month smoothed
change in leading composite index increased 1.2 percentage points month-on-month,
running on an upward track since January.
The value of received construction orders, the value of machinery orders received, the
indicator of inventory cycle, the ratio of job openings to job seekers, the volume of capital
goods imports, and the composite stock price index were up.
Components of the leading composite index in November 2009 (m-o-m)
Value of received construction orders (27.4%), value of machinery orders received (12.7%), indicator of
inventory cycle (5.7%p), ratio of job openings to job seekers (3.4%p), volume of capital goods imports (0.5%),
composite stock price index (0.3%), liquidity in the financial institutions (0.3%), net terms of trade index
(0.1%), spreads between long & short term interest rates (0.0%p), consumer expectations index (-1.0%p)

2009
Jan

Feb

Aug

Sep

Oct1

Nov1

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

-1.9

0.0

0.9

0.6

0.4

0.3

Cyclical indicator of coincident composite index

92.4

92.0

96.7

96.9

96.8

96.8

(m-o-m, p)

-2.2

-0.4

0.5

0.2

-0.1

0.0

0.3

1.1

1.0

0.7

1.1

1.3

-4.0

-2.9

9.1

10.1

11.3

12.5

0.1

1.1

1.3

1.0

1.2

1.2

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

38

January 2010

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
Labor Union Law Revised

The proposed revision of the labor union law was passed by the National Assembly, which
limits wage payment for full time unionists and allows multiple unions at one workplace.

Background
Banning corporations from paying wages to full time union members and allowing multiple
unions at one workplace have been controversial for 13 years, although both of them need
to be adopted to help improve Korea’s labor-management relations. The revised labor union
law regulates details concerning ban on paying full time union members and multiple unions
at one workplace, which aim to guarantee as much freedom as possible to companies and
unions, while at the same time be in line with the principles of labor-management relations.

Main contents of the revision
1. Banning corporations from paying full time union members
Although full time union members are allowed when employers agree or collective
agreements approve, they are required to be paid not by companies but by unions.
Corporations paying full time labor union members will be punished for not complying with
the law. However, the revised labor union law provides some flexibility to the wage payment
system for labor unionists.
The revision allows unionists to be paid by corporations through the time-off system, in
which employees receive time off payment when they are engaged in union activities
considered relevant to the common interests of the union and management, such as
collective bargaining and job site safety, or when the activities are considered essential for
operating the union. The ceiling of time off for union activities is set by the deliberation
committee, based on the number of union members in a worksite.

40

January 2010

The deliberation committee is composed of 10 members, five appointed by the business
circle and labor community, and five by the government. The existing time off ceilings are
examined every three years to decide whether to keep the current limits or revise them. The
deliberation committee is required to decide on the first time off ceiling by April 30, 2010,
otherwise the five members appointed by the government will set the ceiling.
10 million won or less penalty will be imposed on strikes which demand wage payment to
full time unionists beyond the time off ceiling, even if wage demand is not a major issue of a
strike, but one of the agenda of a strike. Existing agreements will be in force until they
expire, although the revised law has taken effect since January 1, 2010.

2. Multiple unions in one workplace
Multiple unions will be allowed in one workplace from July 1, 2010, but they are required to
use a single negotiation channel when they bargain with employers. The revised law
regulates ways and procedures to set up a single body representing multiple unions, as the
representative body, if set up in a fair and reasonable way, will increase negotiation
efficiency and minimize chances of strife between employers and employees.
The procedure to set up a representative body starts when one of the multiple unions calls
for a negotiation with the employer. Each union is entitled to call for a negotiation before the
existing collective agreement expires, and employers are required to announce the call to
give all unions in the company an equal opportunity to be a representative body. The
negotiation union is chosen by unions in the company, or if the unions fail to select their
representative body, the union with more than half of the total corporate union members
represents the other unions. In the process, the unions are allowed to unite to be a majority
union, or become part of a larger union.
If the unions fail to have a representative body with more than half of the total corporate
union members, they need to create a new negotiation body. The unions of which the
number of members exceeds 10 percent of the participants in the negotiation union
selecting process can qualify for being a part of the new representative body. If this fails
again, the Labor Relations Commission will set up a negotiation body, reflecting the number
of members in each union.
The negotiation body represents all union members in a company or workplace, without
being affected by industrial unions or craft unions. However, the revised law allows separate
negotiation bodies when there are major differences in working conditions, employment
types, and negotiation styles. The Labor Relations Commission decides on whether separate
negotiation bodies are necessary, and separate bodies are set up with the same procedures
as those for setting up general negotiation bodies. Employers as well as unions are allowed
to request a separate negotiation body.

Economic Bulletin

41

The negotiation union is responsible for fairly representing the other unions: It is required to
listen to minority unions before or during a negotiation. Employers are also responsible for
taking part in a negotiation without any bias. If the negotiation union fails to be a fair
representative body, the union claiming to be treated unfairly reports the case to the Labor
Relations Commission within three months from the incident. The commission then orders
removal of unfairness if any unequal treatment is detected.
Terms regulating walkouts and time off union activities are added to the revision: Staging a
strike requires consent from more than half of the total union members, but individual
unions are not entitled to deciding on a strike. Only a representative union decides on
strikes. Union activities taken as time off work are set through a negotiation between a
representative union and an employer, or by the Labor Relations Commission.

42

January 2010

Economic
News Briefing

Government to frontload 70% of 2010 estimated expenditure
Korea will spend some 70 percent of the 2010 estimated expenditure during the first half of
the year in an effort to accelerate the economic recovery, the Ministry of Strategy and Finance
said on January 4, 2010. The spending plan covering both the general and special accounts is
as follows:

2010 budget plan

(Trillion won, %)

Budget
Spending rate (accumulated)

Annual

Q1

Q2

Q3

Q4

255.3

109.8

68.6

44.8

32.1

43.0

69.8

87.4

100.0

Some 178.4 trillion won of the government’s planned annual expenditure of 255.3 trillion won
will be spent during the period, from which a total of 164 trillion won will be spent to create
jobs, stabilize low-income households, and support on-going SOC projects.
The spending plan was released along with the budget spending guidelines, the purposes of
which are: (i) to facilitate early spending; (ii) to help reduce energy consumption in public
institutions by 10 percent; and (iii) to enhance transparency and efficiency in budget
spending.

Economic Bulletin

43

Asia to launch Chiang Mai Initiative Multilateralization (CMIM) in March
Korea, China, Japan, and 10 member states of the Association of Southeast Asian Nations
(ASEAN+3) completed the signing of the Chiang Mai Initiative Multilateralizaton (CMIM)
Agreement on December 24, 2009 to launch the pact on March 24, 2010.
The CMIM will strengthen the region’s capacity to safeguard against increased risks and
challenges in the global economy. The core objectives of the CMIM are (i) to address
balance-of-payments and short-term liquidity difficulties in the region and (ii) to supplement
the existing international financial arrangements.
The initial amount of the multilateral currency swap fund will be US$120 billion. The CMIM
will provide financial support through currency swap transactions to the CMIM participants
facing balance-of-payments and short-term liquidity difficulties. Participating countries are
entitled to swap its own currency into US dollars in accordance to their contributions.

CMIM contributions and maximum amount of available funds
Financial contribution

(End-period, %)
Maximum amount of available funds

US$ (billion)

(%)

US$ (billion)

1

38.40

32

19.20

Japan

38.40

32

19.20

Korea

19.20

16

19.20

ASEAN

24.00

20

63.10

China

1. Hong Kong is included

Korea to further develop Knowledge Sharing Program (KSP)
The Knowledge Sharing Program (KSP), a comprehensive policy consultation program
launched by the Ministry of Strategy and Finance to share Korea’s development experience
with other countries, will be further advanced in 2010 to provide more systematic assistance
to developing countries.
With Korea’s accession to the OECD Development Assistance Committee (DAC) last
November ahead of chairing the G20 Summit this year, Korea plans to improve its official
development assistance (ODA) system and establish an original Korean assistance model as
a part of its contribution to the international society. In this regard, the Korean government
will upgrade KSP in a more systematized way in 2010 while expanding aid volume to
developing countries.

44

January 2010

The 2010 KSP will be directed in ways as follows: (i) 20 cases of Korea’s economic
development experience to be selected and developed into programs; (ii) consultants and
consulting firms specializing in KSP to be introduced; (iii) the link between KSP and
untied/tied aid to be strengthened to fully support developing countries; (iv) joint
consultation with international organizations to be accompanied by Korea’s official financial
aid; and (v) comprehensive consultation to be provided to 4 countries in 2010 from only one
country in 2009.

Microcredit program starts from December 2009
The “Miso Credit Foundation”, a microcredit lending program in Korea to support low
income households, opened its first branch on December 15, 2009 as Samsung has set up
the first office of Microcredit foundation in Suwon. Other non-financial companies including
Hyundai-Kia Automotive, SK, LG, POSCO and Lotte have also launched their microcredit
foundations in December 2009. In the banking sector, Kookmin, Woori, Shinhan, Hana and
Industrial Bank of Korea (IBK) have embarked their foundations.
The Miso Credit Foundation plans to open some 50 branches by May 2010 and gradually
expand branches up to 300 through 2010. In addition, 11 regional units of Miso Credit
Foundation are to kick off by February 2010.

Current situation of Miso Credit Foundation
Names of foundation

Dates of establishment

Samsung Miso Credit Foundation

December 15, 2009

Kookmin Miso Credit Foundation
Woori Miso Credit Foundation

December 17, 2009

Shinhan Miso Credit Foundation
Hyundai-Kia Automotive Miso Credit Foundation
LG Miso Credit Foundation

December 18, 2009
December 21, 2009

Hana Miso Credit Foundation
SK Miso Credit Foundation

December 23, 2009

Posco Miso Credit Foundation

December 24, 2009

Lotte Miso Credit Foundation

December 28, 2009

IBK Miso Credit Foundation

December 30, 2009

Economic Bulletin

45

Korean group wins landmark UAE nuclear power deal
A Korean consortium, on December 27, 2009, won a landmark deal valued at about US$20.4
billion to build four nuclear reactors for the United Arab Emirates (UAE), in a high-profile
contest with a French consortium led by Areva, an industry leader, and a US-Japanese
consortium including General Electric and Hitachi. The victory for the Korea Electric Power
(Kepco) led consortium marks the first international deal for Korea, which built its first
commercial nuclear plant in 1987, making the nation the world’s sixth exporter of the nuclear
reactors after the US, France, Canada, Russia and Japan. The deal is expected to secure
stepping stone for the country’s advance into the fast-growing international market for
nuclear power plants.
The Kepco led group also includes Hyundai Engineering and Construction, Samsung C&T,
Doosan Heavy Industries and Construction as well as Westinghouse, a US-based unit of
Japan’s Toshiba. According to the deal, the Korean consortium will build four 1,400megawatt nuclear power units in the UAE that will be completed from 2017 to 2020. The
Korean group expects to earn another US$20 billion by jointly operating the reactors for 60
years, and hopes to build more plants in the UAE beyond 2020 to meet future demand.
The Ministry of Knowledge Economy attributed the Korean consortium’s winning of the UAE
deal to its cost-effectiveness, high safety standards, technological know-how and relatively
short period of construction. President Lee Myung-bak’s aggressive diplomacy also
contributed to the success of Korea’s nuclear power plant export, which was highlighted in
his surprise trip to Abu Dhabi on December 26 to support the Korean firms.
At a summit with President Sheikh Khalifa bin Zayed al-Nahayan in Abu Dhabi on December
27, 2009, President Lee said the contract will deepen relations between Korea and the UAE
in the economic, cultural, security and diplomatic sectors. The two leaders also agreed to
continue developing the relationship between the countries into a strategic partnership to
help ensure their joint development in the future.

Korea’s trade surplus hits all-time high in 2009
Korea’s trade balance posted a record high US$40.98 billion surplus in 2009 as exports fell
13.8 percent year-on-year to US$363.77 billion while imports declined 25.8 percent from a
year earlier to US$322.79 billion. Amid the substantial decrease in global trade volume,
Korea’s exports performed relatively well, making the nation the ninth largest exporter in
2009. Year-on-year export growth in December, in particular, jumped 33.7 percent from the
previous month’s 18.1 percent, confirming the upward trend in exports.

46

January 2010

By export item, ships and LCD devices led the healthy export performance by increasing 4.4
percent and 28.5 percent, respectively. By export destination, exports to emerging markets
such as China (down 7.5%) and the Middle East (down 11.7%) declined at a smaller pace
compared with those to developed countries including the US (down 18.9%) and Japan
(down 23.7%).
The Korean government forecasts that exports this year will increase around 9 percent from
the previous year to post US$410 billion while imports will climb about 21 percent to register
US$390 billion, resulting in the trade surplus of around US$20 billion.

Economic Bulletin

47

48

December 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

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
0.9

1.5
-1.2
3.1

-13.6
-7.3
1.6

-2.0
0.9
1.7

-8.1
-2.7
-0.8

1.6
3.7
2.7

-23.5
-15.9
-7.4

P: Preliminary
Source: The Bank of Korea

50

January 2010

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

Production
index

2007
2008

Y-o-Y
change (%)

Shipment
index

Y-o-Y
change (%)

Inventory
index

Y-o-Y
change (%)

Service
production
index

Y-o-Y
change (%)

115.9
119.4

6.9
3.0

115.3
118.1

7.2
2.4

117.2
125.7

5.6
7.3

112.2
116.1

6.8
3.5

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

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

2009

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

93.9
99.8
114.4
115.8
114.7
121.7
124.0
117.0
131.7
126.5
129.6

-25.5
-10.0
-10.5
-8.2
-9.0
-1.1
0.7
1.0
11.0
0.2
17.8

93.2
99.5
113.2
114.5
112.8
119.8
119.9
113.4
127.7
123.2
126.2

-23.4
-9.3
-11.1
-8.0
-8.7
-0.4
-1.3
-1.0
8.9
-0.6
15.3

124.4
118.1
116.5
112.6
111.4
110.9
112.7
113.5
113.8
113.2
114.1

0.4
-5.1
-5.8
-9.8
-13.6
-16.7
-14.9
-14.2
-13.9
-16.2
-14.5

113.0
109.6
117.2
118.5
118.1
118.7
117.9
116.2
121.9
118.4
117.7

-1.1
0.3
-0.7
1.9
0.3
2.8
0.9
1.0
4.4
1.3
3.3

P: Preliminary
Source: Statistics Korea

52

January 2010

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
III

116.9
117.5
119.3

2.5
1.9
2.8

80.7
94.3
97.5

-18.4
-8.2
2.6

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
8
9
10P
11P

116.8
116.9
117.1
117.2
117.2
118.2
118.8
119.2
119.9
120.2
120.4

2.6
2.7
2.4
2.2
1.5
2.2
2.7
2.8
3.2
3.4
3.5

72.9
78.8
90.4
93.1
92.2
97.5
98.4
90.9
103.3
99.0
100.5

-29.2
-11.7
-13.6
-10.7
-10.5
-3.3
-1.0
-1.1
9.8
-4.6
12.8

61.4
66.9
69.2
71.5
72.9
76.6
78.7
77.7
80.2
77.3
77.3

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

Consumer
goods
sales
index

2007
2008

Y-o-Y
change (%)

Durable
goods

Y-o-Y
change (%)

Semi-durable
goods

Y-o-Y
change (%)

Non-durable
goods

Y-o-Y
change (%)

109.3
110.4

5.1
1.0

124.7
127.1

9.6
1.9

108.1
105.5

3.9
-2.4

108.5
109.3

5.2
0.7

2007

I
II
III
IV

106.6
108.3
107.1
115.1

5.2
4.3
7.2
3.6

119.6
124.6
126.0
128.6

16.6
12.5
10.2
0.8

99.9
110.1
94.1
128.5

5.4
1.5
3.6
5.4

106.6
107.6
110.5
109.4

4.3
3.5
8.4
5.0

2008

I
Il
III
IV

111.3
111.4
108.6
110.3

4.4
2.9
1.4
-4.2

131.0
135.5
126.0
115.9

9.5
8.7
0.0
-9.9

103.7
107.8
94.7
115.8

3.8
-2.1
0.6
-9.9

108.6
107.9
111.8
109.0

1.9
0.3
1.2
-0.4

2009

I
II
III

105.9
113.2
112.3

-4.9
1.6
3.4

113.2
140.9
138.5

-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
8
9
10P
11P

108.0
100.7
109.1
108.6
116.6
114.3
111.3
107.9
117.8
120.2
119.5

-3.3
-6.1
-5.2
-3.9
1.6
7.5
1.8
1.9
6.6
9.8
10.0

102.5
114.3
122.9
123.7
142.8
156.3
141.3
128.8
145.5
143.8
152.1

-20.8
-3.7
-15.1
-12.0
3.8
21.9
0.1
6.0
26.1
15.6
39.5

103.2
96.8
108.4
110.0
113.5
100.7
95.8
87.3
101.7
116.5
122.8

-1.2
-0.5
-0.7
0.7
0.9
-1.1
-2.2
0.2
2.6
3.6
1.3

113.6
98.8
108.8
107.0
112.5
107.5
110.9
112.6
118.6
116.4
109.2

5.1
-8.4
-0.9
-1.0
0.7
3.5
4.9
1.1
0.3
10.0
2.1

P: Preliminary
Source: Statistics Korea

54

January 2010

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
III

105.9
113.1
118.4

-9.7
-2.2
4.3

112.8
137.9
137.6

-14.9
1.1
11.9

103.2
103.2
110.7

-7.3
-4.0
0.9

-

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
11
12

105.7
102.3
109.8
110.5
111.5
117.4
117.6
109.9
127.8
119.8P
118.5P
-

-15.6
-3.9
-8.7
-7.8
-3.7
5.2
0.0
-1.3
14.6
0.3P
10.7P
-

99.0
115.2
124.3
119.0
138.6
156.0
143.7
124.6
144.5
138.6P
145.7P
-

-24.7
-5.9
-13.4
-17.4
1.2
21.7
7.1
4.9
24.6
8.5P
31.3P
-

108.4
97.2
104.0
107.1
100.6
102.0
107.1
104.0
121.0
121.3P
107.6P
-

-11.7
-2.8
-6.4
-2.7
-6.3
-2.9
-3.5
-4.0
10.3
-3.4P
2.0P
-

84
85
84
98
105
106
109
114
114
117
113
113

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
III

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
102.2

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
8
9
10P
11P

1,636
1,727
1,842
1,534
1,466
2,228
2,544
1,423
1,865
1,762
1,972

232
519
181
93
98
510
1,074
73
201
97
430

741
562
780
690
700
940
795
691
970
939
972

84.7
92.4
101.3
99.4
102.7
112.6
96.5
95.7
114.3
106.3
114.3

84.3
97.5
112.5
109.5
102.9
121.2
106.4
97.0
115.4
108.0
114.6

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
1,665
1,542
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
III

-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
8
9
10P
11P

-47.4
-26.2
-23.7
-24.9
-21.3
2.1
7.3
-15.7
31.9
3.0
56.6

56.4
660.1
16.7
-2.9
10.5
45.1
498.8
-15.7
129.5
-75.7
108.8

-52.6
-46.8
-26.5
26
22.9
-6.2
-32.9
-15.7
25.5
26.9
46.4

-63.6
-64.2
-41.4
-39.3
-23.4
-13.8
-35.9
-28.4
30.6
24.5
75.2

-21.4
-11.3
-19.9
-18.9
-16.2
-4.9
-18.8
-15.5
5.0
0.5
10.3

-20.7
-5.2
-10.6
-8.4
-15.7
1.0
-11.0
-10.4
1.4
-4.0
5.9

P: Preliminary
Source: Statistics Korea

56

January 2010

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
III

19,115
23,716
22,181

6,562
8,678
7,915

11,536
13,623
13,052

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

2009

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

6,048
6,129
6,937
7,451
7,271
8,995
7,005
6,734
8,442
7,339
8,109

2,149
2,036
2,377
2,643
2,611
3,423
2,380
2,443
3,092
2,620
2,781

5,333
4,880
7,354
7,249
6,988
11,247
5,527
4,352
8,741
10,415
14,425

2,552
2,695
3,778
5,610
4,295
7,445
2,947
1,713
3,576
4,650
5,082

2,514
2,079
3,462
1,260
2,573
3,369
2,362
2,569
4,709
5,616
8,766

6.6
4.7

8.4
6.5

23.6
-9.0

40.3
9.1

16.5
-15.8

2007
2008

3,608
3,782
4,147
4,415
4,232
4,977
4,249
3,923
4,879
4,355
4,904
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
III

4.5
7.0
-0.6

24.4
32.1
21.7

-5.0
-5.2
-11.3

-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

2009

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

-0.4
12.0
3.0
6.0
-0.7
15.2
-2.3
-7.9
7.7
-5.2
4.2

25.2
34.0
16.5
34.3
17.4
44.1
17.5
14.2
32.2
4.9
8.1

-11.4
2.3
-5.1
-4.8
-10.5
-0.5
-11.3
-18.6
-4.3
-9.6
3.4

-15.0
-20.7
-14.7
-8.0
-18.5
17.9
2.9
-29.5
58.4
27.2
77.0

33.8
31.6
9.7
221.8
71.9
310.3
111.7
12.7
101.1
89.7
64.6

-39.7
-46.5
-31.1
-78.8
-56.3
-54.2
-31.6
-42.0
61.8
16.3
85.6

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
105.7
106.4
107.4
108.1
108.7

6.9
6.4
5.8
5.4
5.2
5.0
4.5
4.4
4.6
5.1
5.4
5.4

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

109.2
109.9
110.3
111.0
111.3
112.3
113.2
114.1
114.9
115.8
116.7
117.0

5.5
5.8
5.7
5.9
5.8
6.3
6.7
7.1
7.3
7.6
7.9
7.6

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

116.6
115.8
115.2
114.9
114.8
114.4
113.7
113.5
113.4
112.7
111.3
110.4

6.6
5.1
3.9
3.0
2.3
1.3
0.1
-0.5
-0.9
-1.8
-3.3
-4.3

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
12

110.7
111.9
113.0
115.0
117.4
120.5
122.2
123.4
124.3
125.7P
127.3P
-

-4.0
-2.9
-1.9
0.1
2.6
5.8
7.8
9.1
10.1
11.3P
12.5P
-

110.9
110.9
111.9
113.6
114.5
116.9
118.3
119.4
120.1
120.6P
121.0P
-

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

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

-

103.1

Period

Leading
index
(2005=100)

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

2010 1

-

-

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

58

January 2010

-

92.4
92.0
92.5
93.5
93.8
95.4
96.2
96.7
96.9
96.8P
96.8P
-

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

Period

2007
2008r

Current
balance

Goods
trade
balance

Exports

5,876.0
-5,776.3

28,168.0
5,669.1

Imports

Services
trade
balance

Income
trade
balance

Current
transfers

371,489.1
422,007.3

356,845.7
435,274.7

-19,767.6
-16,671.5

1,002.7
5,900.0

-3,527.1
-673.9

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

2008r

I
II
III
IV

-4,866.4
-411.5
-8,329.7
7,831.3

-1,375.4
5,526.4
-3,230.5
4,748.6

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

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

-4,936.9
-4,460.5
-5,837.8
-1,436.3

1,979.7
-521.1
1,503.3
2,938.1

-533.8
-956.3
-764.7
1,580.9

2009P

I
II
III

8,618.2
13,097.4
10,395.5

8,308.8
17,576.0
14,702.5

74,405.3
90,318.7
94,769.4

71,445.5
73,820.7
84,786.1

-1,926.2
-4,167.7
-5,334.5

922.3
292.7
1,690.7

1,313.3
-603.6
-663.2

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

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

-2,343.6
-2,372.0
-150.8
-1,578.8
-566.7
1,734.0
-2,433.9
-4,676.2
-1,219.6
4,644.8
2,408.2
778.3

-935.1
-524.2
83.9
1,733.1
367.0
3,426.3
487.2
-2,926.8
-790.9
2,102.2
1,230.4
1,416.0

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

-1,957.3
-2,205.7
-773.9
-1,072.9
-1,215.3
-2,172.3
-2,719.6
-1,962.9
-1,155.3
180.5
-70.0
-1,546.8

840.3
792.3
347.1
-1,914.2
563.5
829.6
350.0
427.4
725.9
1,590.6
757.4
590.1

-291.5
-434.4
192.1
-324.8
-281.9
-349.6
-551.5
-213.9
0.7
771.5
490.4
319.0

2009P 1
2
3
4
5
6
7
8
9
10
11

-1,612.3
3,585.8
6,644.7
4,274.1
3,442.6
5,380.7
4,419.5
1,922.1
4,053.9
4,757.3
4,277.7

-1,762.2
3,100.1
6,970.9
6,105.2
4,872.3
6,598.5
6,114.5
3,319.5
5,268.5
5,675.1
5,842.3

21,130.1
25,391.9
27,883.2
30,324.9
27,805.5
32,188.3
31,895.4
28,948.0
33,925.9
33,957.8
34,074.7

24,937.3
22,597.7
23,910.4
24,843.7
23,346.5
25,630.5
27,639.2
27,397.8
29,749.1
30,336.2
29,456.7

-710.5
-540.4
-675.3
-1,117.3
-1,524.4
-1,526.0
-1,898.0
-1,803.4
-1,633.1
-1,312.6
-1,662.7

596.4
510.5
-184.6
-803.1
389.6
706.2
511.1
617.7
561.9
559.4
390.0

264.0
515.6
533.7
89.3
-294.9
-398.0
-308.1
-211.7
89.3
-164.6
-291.9

R: Revised 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
2008r

7,128.1
-50,083.6

-13,835.9
-15,632.6

-26,057.8
-2,405.6

5,444.8
-14,769.9

43,964.5
-17,384.8

-2,387.5
109.3

-15,128.4
56,446.0

2,124.0
-586.1

I
II
III
IV

6,364.4
8,948.8
-4,323.2
-3,861.9

-900.4
-2,847.0
-2,605.7
-7,482.8

-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
12,466.7
8,879.1
3,613.0

-813.8
-682.4
-573.7
-317.6

-3,998.3
-6,250.1
-2,495.8
-2,384.2

-1,352.8
-1,395.2
2,474.8
2,397.2

2008r I
ll
III
IV

1,990.3
-3,160.7
-6,286.4
-42,626.8

-5,781.5
-4,140.0
-3,661.1
-2,050.0

-4,401.5
8,356.7
-9,421.3
3,060.5

-1,249.5
-1,240.7
-3,550.4
-8,729.3

13,533.2
-5,909.9
10,564.1
-35,572.2

-110.4
-226.8
-217.7
664.2

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

-973.9
-2,145.5
1,733.0
800.3

2009P I
II
III

-1,399.2
8,682.0
14,399.1

-2,045.4
-172.1
-2,137.6

3,532.3
16,740.2
19,914.7

-4,893.6
-614.9
-1,296.5

1,282.5
-7,566.0
-2,258.0

725.0
294.8
176.5

-9,017.4
-19,541.8
-23,886.9

1,798.4
-2,237.6
-907.7

2007

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

2,180.0
-527.6
4,712.0
4,481.4
4,750.2
-282.8
-552.7
137.3
-3,907.8
-3,753.9
-373.3
265.3

-222.2
-644.0
-34.2
-402.1
-282.8
-2,162.1
-321.9
-1,427.0
-856.8
-4,514.4
-1,723.3
-1,245.1

-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
6,270.2
7,203.9
7,864.0
-6,188.8
900.4
3,269.5
-556.9

-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

-268.7
1,231.9
-2,316.0
-44.6
-451.1
-899.5
1,200.6
211.1
1,063.1
1,590.8
-807.2
1,613.6

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

1,171.9
202.3
616.1
-835.4
-113.8
-2,211.5
-6,014.3
5,113.2
-5,385.3
-23,462.3
-13,488.5
-5,676.0

-3,002.7
-90.9
-2,687.9
-2,561.0
-683.4
-895.6
-1,465.4
-1,428.7
-767.0
-978.9
-615.2
-455.9

-949.8
-3,144.5
-307.2
4,093.1
9,168.1
-4,904.5
-7,025.3
-343.4
-2,052.6
5,004.0
-2,524.0
580.5

-130.4
-298.1
-821.0
-560.3
-627.6
-52.8
-551.2
-69.3
-2,929.9
-3,888.3
-1,347.1
-3,493.9

5,313.5
3,750.7
4,469.0
-1,720.5
-7,921.8
3,732.4
3,204.5
7,062.4
297.2
-23,952.6
-9,215.7
-2,403.9

-58.7
-14.9
-36.8
-86.7
-49.1
-91.0
-176.9
-107.8
67.0
353.5
213.5
97.2

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

-264.4
466.6
-1,176.1
2.9
-1,584.1
-564.3
-723.2
778.2
1,678.0
-1,170.6
176.1
1,794.8

2009P 1
2
3
4
5
6
7
8
9
10
11

4,655.2
-3,216.5
-2,837.9
2,193.3
6,707.8
-219.1
2,200.5
5,296.9
6,901.7
1,582.9
1,544.2

-538.7
-785.8
-720.9
112.4
-574.5
290.0
-1,323.9
-276.1
-537.6
-509.0
-2,835.0

5,678.8
161.4
-2,307.9
7,133.0
4,263.5
5,343.7
7,940.1
4,063.5
7,911.1
6,130.5
3,389.4

-248.5
-2,312.2
-2,323.9
-679.8
1,341.1
-1,276.2
-272.7
-721.0
-302.8
-572.9
848.7

-379.9
-609.6
2,272.0
-4,532.5
1,586.6
-4,620.1
-4,379.0
2,177.0
-56.0
-3,477.9
193.9

143.5
338.7
242.8
160.2
91.1
43.5
236.0
53.5
-113.0
12.2
-52.8

-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
-7,966.2
-5,637.4

1,445.7
890.7
-538.0
-1,023.3
98.2
-1,312.5
-1,046.4
-123.8
262.5
1,626.0
-184.5

2007

R: Revised P: Preliminary
Source: The Bank of Korea

60

January 2010

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
11
12

110.8
111.6
112.4
112.7
112.7
112.6
113.0
113.4
113.5
113.2
113.4
113.8

110.4
112.1
113.3
113.8
113.6
113.3
113.9
114.5
114.6
113.9
114.2
115.0

111.1
111.2
111.8
112.0
112.0
112.1
112.5
112.7
112.7
112.8
112.9
113.0

111.1
111.5
112.0
112.2
112.4
112.5
112.7
112.8
112.9
113.0
113.2
113.3

109.6
110.3
110.8
111.0
110.1
109.8
111.1
111.7
111.8
110.9
111.3
111.9

110.4
111.5
112.1
112.1
111.0
110.5
112.1
112.9
113.0
111.8
112.5
113.1

111.1
116.5
118.4
112.2
106.3
108.3
109.0
109.3
107.3
104.0
104.3
105.1

138.1
143.5
145.4
134.1
130.0
136.7
136.6
139.5
136.8
135.3
137.9
138.6

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
11
12

3.7
4.1
3.9
3.6
2.7
2.0
1.6
2.2
2.2
2.0
2.4
2.8

3.9
5.2
5.8
5.2
3.3
1.6
0.9
2.0
2.2
2.0
3.5
4.4

3.7
3.4
2.7
2.6
2.3
2.2
2.2
2.2
2.1
2.0
1.8
1.8

5.2
5.2
4.5
4.2
3.9
3.5
3.2
3.1
2.7
2.6
2.5
2.2

4.7
4.4
3.5
1.5
-1.3
-3.1
3.8
-3.0
-2.6
-3.1
-0.4
1.8

5.7
5.5
4.3
1.6
-1.9
-4.3
-5.1
-4.0
-3.4
-4.2
-0.7
2.0

18.6
22.9
17.4
7.7
-4.1
-3.3
-2.7
-1.1
-7.2
-16.5
-13.4
-8.6

16.7
18.0
10.6
-1.8
-13.9
-11.9
-12.9
-7.0
-10.8
-15.3
-7.5
-1.4

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
11
12

23,709
23,667
24,062
24,456
24,658
24,927
24,756
24,525
24,630
24,655
24,625
24,063

22,861
22,742
23,110
23,524
23,720
23,967
23,828
23,620
23,805
23,856
23,806
23,229

3,895
3,842
3,813
3,846
3,846
3,836
3,802
3,761
3,810
3,858
3,855
3,872

17,663
17,539
17,701
17,899
18,016
18,251
18,210
18,048
18,155
18,130
18,267
18,104

3.6
3.9
4.0
3.8
3.8
3.9
3.7
3.7
3.4
3.2
3.3
3.5

16,053
15,953
16,076
16,353
16,484
16,736
16,589
16,479
16,687
16,690
16,790
16,555

9,102
9,194
9,174
9,227
9,316
9,340
9,383
9,472
9,606
9,628
9,603
9,632

4,982
4,862
4,941
5,051
5,076
5,281
5,255
5,117
5,151
5,170
5,256
5,074

1,969
1,897
1,961
2,076
2,092
2,115
1,952
1,890
1,931
1,892
1,931
1,849

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
11
12

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

-0.4
-0.6
-0.8
-0.8
-0.9
0.0
-0.3
0.0
0.3
0.0
0.0
-0.1

-3.2
-4.4
-4.7
-3.9
-3.5
-3.9
-4.3
-3.5
-3.0
-2.2
-1.1
-0.4

0.1
0.2
-0.2
-0.2
-0.2
1.0
0.7
1.0
1.1
0.7
1.0
0.9

-

0.1
0.7
0.5
0.6
0.5
2.1
1.4
2.3
2.9
2.3
2.5
2.3

3.3
4.4
3.1
3.7
3.4
3.3
3.6
4.0
5.1
5.4
5.4
6.2

-2.6
-3.8
-1.6
-1.5
-1.7
2.9
1.8
3.0
2.7
2.7
3.7
-0.2

-6.3
-4.1
-5.4
-7.2
-6.2
-4.5
-9.1
-6.7
-6.5
-11.7
-12.0
-9.3

Source: Statistics Korea

62

January 2010

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
11
12

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

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

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

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

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

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

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
10
11

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
63,681.7
61,154.5

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
371,531.7
370,979.7

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
1,551,319.5
1,564,175.8

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
1,990,248.2
2,000,616.2

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
10
11

27.4
20.0
32.5
21.1
19.0
16.1
17.4
16.5
11.9
20.2
12.7

8.3
9.8
14.3
17.4
17.0
18.5
18.5
18.5
19.5
19.6
17.3

12.0
11.4
11.1
10.6
9.9
9.6
9.7
10.0
10.0
10.5
9.7

9.2
8.8
8.4
7.7
7.3
7.0
7.7
8.0
7.7
7.8
7.6

P: Preliminary
Source: The Bank of Korea

64

January 2010

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
11
12

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
1,167.4
1,167.6

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
1,164.2
1,166.5

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
1,348.3
1,262.8

1,487.2
1,546.1
1,495.7
1,356.2
1,304.5
1,305.5
1,338.1
1,304.3
1,332.4
1,300.8
1,304.4
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
1,751.7
1,674.3

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
1,736.6
1,703.7

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
11
12

45.0
61.8
38.9
34.8
23.4
23.1
23.0
15.1
0.1
-7.0
-21.3
-7.1

42.8
51.3
49.2
36.0
21.4
22.5
24.0
18.9
7.9
-11.4
-16.2
-15.1

71.1
73.2
41.5
43.8
34.5
36.1
39.3
34.9
15.3
0.5
-13.2
-9.4

70.4
75.6
53.8
40.9
31.2
35.6
40.2
36.9
25.6
-2.0
-9.1
-13.5

26.1
35.6
16.1
14.8
10.8
9.9
11.1
11.9
1.6
7.0
-8.4
-5.7

29.4
31.1
25.3
13.9
6.5
10.4
10.7
13.1
9.0
-1.3
-1.8
-7.7

Source: The Bank of Korea

Economic Bulletin

65

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