Vol. 32 | No.

3

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
9.1 Stock market
9.2 Exchange rate
9.3 Bond market
9.4 Money supply & money market

26

10. Balance of payments

30

11. Prices and international commodity prices
11.1 Prices
11.2 International oil and commodity prices

32

12. Real estate market
12.1 Housing market
12.2 Land market

36

13. Composite indices of business cycle indicators

40

Policy Issues
Lee administration’s economic achievement for the past two years 42

Economic News Briefing

46

Statistical Appendices

53

The Green Book
Current Economic Trends

Overview
The Korean economy overall continued a recovery track, despite some indices becoming
stagnant affected by temporary factors such as a heavy snowfall and cold wave, and the
expiration of the tax credit for new car purchases.
Mining and manufacturing production in January remained flat month-on-month, while rising
36.9 percent year-on-year. Service output fell 0.8 percent month-on-month due to weak
performance in real estate and rent, education, and leisure businesses, but year-on-year the
index rose 4.6 percent.
Consumer goods sales, while gaining 6.9 percent year-on-year, lost 1.3 percent month-onmonth in January due to sluggish sales of durable goods, in particular automobile sales
affected by the expiration of the tax credit for new car purchases.
In January facilities investment dropped 9.8 percent month-on-month as machinery
investment decreased, but year-on-year the index increased 20.4 percent. Construction
completed grew both month-on-month and year-on-year by 12.7 percent and 8.9 percent,
respectively, backed by the brisk public sector and civil engineering works.
The total number of workers hired in January gained 5,000 year-on-year. The employment
rate (seasonally adjusted) posted 58.2 percent, shedding 0.1 percentage point from the
previous month. The unemployment rate jumped to 5.0 percent affected by temporary
factors, in particular soaring applicants for Hope Employment Program where economicallyinactive population such as the aged were counted unemployed persons.
Exports jumped 31.0 percent year-on-year in February, helped by the recovering global
economy. Imports soared 36.9 percent year-on-year, as an unusual cold wave increased
crude oil imports.
Consumer prices in February declined back to the 2 percent range, as stabilizing prices of
manufactured goods such as processed food and petroleum products offset increasing
prices of agriculture, livestock and fishery products.
Instability in the financial market grew in February, as stock prices and foreign exchange
rates fluctuated affected by rocky international financial markets.
To sum up, amid the global economy steadily recovering, external uncertainties rise as
international financial markets are vulnerable to fiscal difficulties in some European
countries and policies taken by the US and China.
The Korean government, to achieve a secure economic recovery, will keep pursuing
expansionary fiscal policies, while renewing its efforts to create jobs. On the other hand, the
government will keep an eye on any changes in internal and external situations including
international financial markets, and check risks in the Korean economy to timely respond to
possible worsening of economic conditions.
Economic Bulletin

3

1. Global economy
The global economy has been slowly rebounding, as major countries such as the US, Japan
and European countries continued to grow in the fourth quarter of 2009. There have been
some moves toward liquidity control such as the US discount rate hike and China’s further
increase in the bank reserve ratio. Concerns about sovereign credit risk from European
countries have been relieved to some degree after Greek government’s announcement of
new fiscal austerity plan.

US

US real GDP was revised upward to 5.9 percent (annualized q-o-q, preliminary) in the fourth
quarter from 5.7 percent (advanced). The real economy including consumption and
production continued a slow recovery, as industrial production and retail sales rose in
January from the previous month.
The US housing market recovery decelerated in January, despite the S&P/Case-Shiller Home
Price Index inching up 0.3 percent, as existing and new home sales fell 7.2 percent and 11.2
percent, respectively.
The job market slowed its fall, as the unemployment rate improved from the previous
month, landing at 9.7 percent, and non-farm payrolls decreased at a slower pace.
The Federal Reserve announced in the Federal Open Market Committee (FOMC) on February
18 that it would raise the discount rate by 25 basis points to 0.75 percent from 0.5 and
shorten loan terms to overnight from 28 days. Federal Reserve Chairman Ben Bernanke said,
at the House of Representative hearing on February 24, that the Fed would keep its main
interest rate at an all-time low near zero for an “extended period.”
(Percentage change from previous period)
2008

Real GDP1
- Personal consumption expenditure
- Corporate fixed investment

2009

2010

Annual

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Jan

0.4

-2.7

-5.4

-2.4

-6.4

-0.7

2.2

5.9

-

-0.2

-3.5

-3.1

-0.6

0.6

-0.9

2.8

1.7

-

1.6

-6.1

-19.5

-17.9

-39.2

-9.6

-5.9

6.5

-

-22.9

-15.9

-23.2

-20.4

-38.2

-23.3

18.9

5.0

-

Industrial production

-1.8

-2.3

-3.4

-9.8

-5.2

-2.7

1.6

1.6

0.9

Retail sales

-0.8

-1.5

-6.8

-6.0

-1.3

-0.1

1.6

1.9

0.5

New home sales

-37.4

-9.8

-15.0

-22.8

-13.5

9.9

9.2

-8.9

-11.2

New non-farm payroll employment
(thousand)2

-302

-334

-651

-398

-753

-478

-260

-103

-20

3.8

5.2

1.5

-0.3

-0.2

-0.9

-1.6

1.5

2.6

- Construction investment for housing

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

4

March 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

The Chinese government further raised the bank reserve ratio on February 25, aiming to
stabilize asset prices, amid increasing domestic demand and expanding exports. The
Manufacturing Purchasing Managers’ Index (PMI) in January stayed above the benchmark 50
for the 12th consecutive month, but compared with the previous month, it fell 3.8 points.
Manufacturing PMI (y-o-y, %)
54.0 (Aug 2009)

54.3 (Sep)

55.2 (Oct)

55.2 (Nov)

56.6 (Dec)

55.8 (Jan 2010)

52.0 (Feb)

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

Q3

2009
Q4

Annual

Q1

Q2

2010
Q3

Q4

Jan

9.0

9.0

6.8

8.7

6.2

7.9

9.1

10.7

-

Fixed asset investment (accumulated)

26.1

27.6

26.1

30.5

28.6

33.6

33.3

30.5

-

Retail sales

21.6

23.2

20.6

15.5

14.9

15.0

15.4

16.9

-

Industrial production

12.9

13.0

6.4

11.0

5.1

9.2

12.4

18.0

-

Exports

17.2

22.9

4.1

-15.9

-19.7

-23.5

-20.7

0.2

21.0

Consumer prices

5.9

5.3

2.5

-0.7

-0.6

-1.5

-1.3

0.7

1.5

Producer prices

6.9

9.7

2.5

-5.4

-4.6

-7.2

-7.7

-2.1

4.3

Source: China National Bureau of Statistics

Japan

Japan’s economy grew 1.1 percent quarter-on-quarter in the fourth quarter, maintaining
recovery momentum, as exports increased and facility investment rebounded. Exports
surged, thanks to a low base effect from the previous year and growing demand from the
recovering global economy.
(Percentage change from previous period)
2008

2009

2010

Annual

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Jan

Real GDP

-0.7

-1.1

-3.0

-5.0

-3.2

1.3

0.0

1.1

-

Industrial and mining production

-3.4

-3.3

-17.7

-22.3

-17.2

14.6

5.9

4.7

2.5

0.3

0.8

-1.5

-2.2

-3.9

-0.9

-3.4

-0.7

2.6

-3.5

3.2

-23.1

-33.1

-46.9

-38.5

-34.4

-8.0

40.8

1.4

2.2

1.0

-1.4

-0.1

-1.0

-2.2

-2.0

-1.3

Retail sales (y-o-y, %)
Exports (y-o-y, %)
Consumer prices (y-o-y, %)
Source: Japan's Statistics Bureau and Statistics Centre

Eurozone

The eurozone economy showed a slow recovery, posting 0.1 percent quarter-on-quarter
growth in the fourth quarter, as Germany’s GDP stayed flat and Italy’s economy contracted
0.2 percent. Greek government's announcement on March 3 of additional deficit cuts worth
4.8 billion euros (US$6.6 billion) alleviated the country’s sovereign debt concerns to some
degree.
(Percentage change from previous period)
2008

2009

Annual

Q3

Q4

2010

Annual

Q1

Q2

Q3

Q4

Jan

0.8

-0.4

-1.9

-4.0

-2.5

-0.1

0.4

0.1

-

Industrial production

-1.8

-2.0

-7.8

-14.9

-8.3

-1.4

1.9

0.2

-

Retail sales

Real GDP

-0.7

-0.4

-1.1

-2.2

-0.8

-0.2

-0.1

-0.2

-0.3

Exports (y-o-y, %)

3.6

5.3

-4.9

-18.1

-20.9

-23.2

-19.4

-8.4

-

Consumer prices (y-o-y, %)

3.3

3.8

2.3

0.3

1.0

0.2

-0.4

0.4

1.0

Source: Eurostat

6

March 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 (advanced estimates of GDP) in the fourth quarter of 2009 edged down
0.1 percent quarter-on-quarter but increased 5.6 percent year-on-year.
(Percentage change from same period in previous year)
2007

Private consumption

2

(Seasonally adjusted)

3

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

20081

20091

Annual

Annual

Q3

Q4

Annual

Q1

Q2

Q3

Q4

5.1

0.9

1.4

-3.7

0.2

-4.4

-0.8

0.8

5.6

-

-

0.0

-4.6

-

0.4

3.6

1.5

-0.1

3. Percentage change from previous period

Consumer goods sales in January 2010 dropped 1.3 percent month-on-month, negatively
affected by weak sales of durable goods including automobiles and non-durable goods, but
rose 6.9 percent year-on-year.
Durable goods sales continued an upward trend year-on-year, soaring 39.8 percent, but fell
5.7 percent month-on-month due to a drop in automobile sales as the tax break for new car
purchases expired.
Non-durable goods sales decreased 2.0 percent month-on-month or 5.2 percent year-onyear, as gasoline sales dropped due to a cold wave and heavy snow.
(Percentage change from same period in previous year)
2008

2009

Annual

Q4

Annual

Consumer goods sales

1.1

-4.2

(Seasonally adjusted)

-

- Durable goods

2

3

1

2010

Q1

Q2

Q3

Q4

2.6

-4.7

1.5

2.8

10.8

9.7

12.7

6.9

-3.6

-

1.0

5.1

0.3

4.1

0.5

1.2

-1.3

1.6

-9.6

8.1

-11.9

5.7

7.9

33.9

40.7

45.8

39.8

1

Nov

Dec

1

Jan1

-3.5

-21.0

21.8

-20.6

20.1

24.1

76.9

113.3

92.0

73.0

- Semi-durable goods4

-3.0

-10.7

0.3

-1.5

-0.6

-0.7

3.4

0.3

7.2

5.2

- Non-durable goods

1.4

0.2

1.2

-1.4

0.5

1.9

4.1

1.5

1.5

-5.2

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 and specialized retailers jumped 6.5 percent and 10.9 percent
year-on-year, respectively, whereas those at large discounters posted a 9.0 percent year-onyear drop.
(Percentage change from same period in previous year)
2008

- Department stores
- Large discounters
- Specialized retailers

2

Annual

2009
Q4

Annual1

Q1

Q2

1.2

-4.3

3.3

-0.8

2.5

-1.0

-2.0

-1.8

-8.2

2.9

Q3

Q4

Nov

Dec

0.4

4.2

9.1

3.2

14.7

6.5

-4.4

-2.9

-3.4

3.2

-1.3

5.4

-9.0

-6.6

2.6

3.5

12.6

12.6

14.1

10.9

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

8

March 2010

2010
1

1

Jan1

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

Consumer goods sales in February are projected to rebound from a month earlier, given an
increased demand during the Lunar New Year holidays, improvements in advanced
estimates, and recovering consumer spending, with the year-on-year index continuing to
improve due to a low base effect from the previous year.
Domestic credit card spending rose 21.2 percent year-on-year, posting a 20 percent range
increase for three consecutive months since December 2009 when the index first landed at
20 percent.
Sales at department stores jumped 14.5 percent year-on-year, adding 9.7 percentage points
to the January figure. Sales at large discounters sharply rebounded by 31.3 percent year-onyear in February, after the previous month’s fall of 13.4 percent.
Domestic sales of Korean automobiles in February contracted month-on-month due to the
expiration of the tax break for new car purchases and Lunar New Year holidays, while
increasing 21.3 percent year-on-year.
Domestic sales of Korean automobiles (ten thousand units)
13.1 (Oct 2009)

13.7(Nov)

15.7 (Dec)

11.9 (Jan 2010)

10.7 (Feb)

Gasoline sales turned positive in four months, thanks to an increasing demand during the
Lunar New Year holidays.
Value of credit card use (y-o-y, %)
14.7 (Sep 2009)

9.4 (Oct)

18.3 (Nov)

20.0 (Dec)

20.2 (Jan 2010)

21.2 (Feb)

Department store sales (y-o-y, %)
8.6 (Sep 2009)

11.4 (Oct)

6.4 (Nov)

12.5 (Dec)

4.8 (Jan 2010)

3.9 (Dec)

-13.4 (Jan 2010)

14.5 (Feb)

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

4.5 (Oct)

-2.8 (Nov)

31.3 (Feb)

Domestic sales of Korean automobiles (y-o-y, %)
76.0 (Sep 2009)

23.8 (Oct)

83.6 (Nov)

79.9 (Dec)

61.7 (Jan 2010)

21.3 (Feb)

Domestic sales of gasoline (y-o-y, %)
-0.3 (Sep 2009)

20.7 (Oct)

-3.0 (Nov)

-4.5 (Dec)

-0.6 (Jan 2010)

9.4 (Feb)

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

Gradually improving employment and subdued inflation is expected to help recovery in
private consumption.
Number of workers hired (y-o-y, ten thousand)
7.1 (Sep 2009)

1.0 (Oct)

-1.0 (Nov)

-1.6 (Dec)

2.8 (Dec)

3.1 (Jan 2010)

0.5 (Jan 2010)

Consumer prices (y-o-y, %)
2.0 (Oct 2009)

2.4 (Nov)

2.7 (Feb)

The Consumer Sentiment Index, which slightly decreased in February but stayed above the
benchmark 100, is also projected to positively affect private consumption.
Consumer Sentiment Index (CSI)
114 (Sep 2009)

10

March 2010

117 (Oct)

113 (Nov)

113 (Dec)

113 (Jan 2010)

111 (Feb)

2-4

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

2-5

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

2-6

Consumer sentiment index
Source: The Bank of Korea

Economic Bulletin

11

3. Facility investment
Facility investment (advanced estimates of GDP) in the fourth quarter of 2009 posted a
quarter-on-quarter increase of 4.7 percent, and a year-on-year gain of 12.9 percent.
(Percentage change from same period in previous year)
2007

2008

2009

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

9.3

-2.0

1.5

1.1

4.3

-14.0

-23.5

-15.9

-7.4

12.9

-

-

-0.4

0.4

0.2

-14.2

-11.2

10.1

10.4

4.7

- Machinery

9.2

-2.7

-1.2

-0.1

6.5

-15.3

-24.0

-19.6

-15.1

-

- Transportation equipment

9.6

0.4

12.2

5.1

-3.6

-9.9

-21.8

-3.2

21.8

-

Facility investment1
(Seasonally adjusted) 2

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

Facility investment in January rose 20.4 percent year-on-year but the index fell 9.8 percent
month-on-month, affected by a high base effect from the previous month and seasonal
factors which caused machinery investment such as semi-conductors to fall by 12.7 percent.
(Percentage change from same period in previous year)
2007
Annual
Facility investment
(Seasonally adjusted)

2

- Machinery

2008

2009

Annual Annual1

2010

Q1

Q2

Q3

Q41

Jan

Nov

Dec1

Jan1

8.2

-3.0

-8.0

-17.9

-12.9

-10.0

10.2

-21.1

10.2

21.1

20.4

-

-

-

-10.2

5.6

2.4

13.9

-4.5

5.9

5.9

-9.8

7.5

-4.2

-12.9

-22.1

-18.9

-17.0

8.8

-22.2

7.2

19.5

15.1

11.3

2.1

12.0

0.1

11.8

20.0

15.5

-16.4

21.5

27.4

41.7

20.6

-13.8

-11.8

-35.5

-17.7

3.4

20.0

-49.1

56.2

21.2

11.3

- Public

-11.4

5.0

61.7

150.8

29.9

280.2

-27.2

56.5

110.1

-44.5

-27.1

- Transportation equipment
Domestic machinery orders

- Private

24.5

-15.5

-19.9

-44.8

-22.3

-16.0

35.2

-54.4

45.5

52.4

18.0

- Machinery imports

22.1

6.4

-16.6

-27.9

-27.4

-15.9

-7.2

-33.6

21.6

24.7

34.8

Facility investment
adjustment pressure3

1.7

-1.7

-4.0

-19.1

-8.9

1.2

12.8

-29.9

14.9

31.5

34.4

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 & The Korea International Trade Association

Facility investment in February is expected to increase from the previous month, given
improvements in leading indicators such as machinery orders and imports, corporate
investment confidence and facility investment adjustment pressure.

2009

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

12

March 2010

2010

Oct

Nov

Dec

Jan

Feb

Mar

100

96

98

103

101

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 (advanced estimates of GDP) in the fourth quarter of 2009 rose
3.9 percent year-on-year, while remaining unchanged quarter-on-quarter.
(Percentage change from same period in previous year)
2007

Construction investment
(Seasonally adjusted)

2

3

- Building construction
- Civil engineering works

2008

2009

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

1.4

-2.1

-1.9

-0.3

0.2

-5.6

1.6

3.7

2.7

3.9

-

-

-2.5

-0.3

0.1

-3.0

5.2

1.7

-2.0

0.0

-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 January rose 8.9 percent year-on-year or 12.7
percent month-on-month thanks to an increase in SOC budget spending which affected
public sector performance. Both building construction and civil engineering works climbed
8.6 percent and 9.2 percent, respectively, from the previous year.
(Percentage change from same period in previous year)

Construction completed

2007

2008

Annual

Annual

6.6

2010

Annual

Q1

Q2

Q3

Q4

4.9

3.3

4.3

6.4

-1.2

3.7

-0.5

3.2

12.9

8.9

-

-

-

8.1

0.7

-6.3

3.4

15.0

-0.7

1.4

12.7

8.4

6.5

21.2

24.5

31.9

21.3

10.7

25.2

8.1

18.3

11.6

(Seasonally adjusted)2
- Public

2009
1

1

Jan

Nov

Dec

1

Jan1

4.6

2.2

-5.7

-5.3

-5.9

-11.8

0.4

-11.4

1.7

9.8

7.6

23.6

-7.6

3.0

-12.0

-1.1

7.6

11.6

0.3

78.8

-19.6

17.1

- Public

40.3

10.0

60.9

33.1

182.9

78.9

11.6

64.4

63.3

-33.9

-14.7

- Private

16.5

-14.3

-21.9

-37.3

-60.2

-14.3

17.3

-31.2

92.5

-9.6

49.4

13.3

-20.1

-12.9

-31.6

-32.7

-4.6

13.1

-48.3

14.1

42.7

33.3

- Private
Construction orders

Building permit Area

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

Construction investment in February is expected to be negatively affected by a high base
effect from the previous month, despite improving leading indicators such as construction
orders and business survey indices.

2009

Business survey indices (base=100) for
construction projections
Source: The Construction and Economy Research Institute of Korea

14

March 2010

2010

Oct

Nov

Dec

Jan

Feb

110.8

90.1

83.6

74.8

91.4

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 February rose 31.0 percent year-on-year to US$33.27 billion.
Exports, while staying on a positive track backed by the recovering global economy, grew at
a slower pace compared with the previous month, as the number of working days decreased
by 1.5 days with the Lunar New Year holidays falling on February instead of January.
Working-day-adjusted daily average exports rose to US$1.62 billion from the previous
month’s US$1.38 billion, helped by soaring vessel exports from US$1.9 billion to US$5 billion.
By export category, semiconductors (up 118.4%) and liquid crystal devices (up 60.3%) made
great strides, and by regional category, exports to Central and South America (up 62.2%)
and China (up 43.2%) surged.
(US$ billion)
2009

Exports
(y-o-y, %)
Average daily exports
Imports
(y-o-y, %)
Average daily imports

2010

Annual

Q1

Q2

Q3

Q4

Jan

Feb

Jan

Feb

363.53

74.42

90.36

94.78

103.97

21.13

25.40

31.01

33.27

-13.9

-25.2

-21.1

-17.6

11.7

-34.5

-18.5

46.7

31.0

1.30

1.10

1.30

1.32

1.49

0.98

0.91

1.38

1.62

323.09

71.42

74.00

84.84

92.85

24.90

22.60

31.47

30.94

-25.8

-32.7

-35.6

-31.0

1.4

-31.4

-30.7

26.4

36.9

1.16

1.06

1.06

1.18

1.33

1.16

1.03

1.40

1.51

Source: Korea Customs Service

Imports in February jumped 36.9 percent year-on-year to US$30.94 billion, accelerating an
increase from the previous month, due to a low base effect, rising imports of crude oil by
56.9 percent and petroleum products by 102.5 percent, backed by a cold wave, and the
recovering economy. Average daily imports in working-day-adjusted-terms increased from
the previous month’s US$1.4 billion to US$1.51 billion. Imports of capital goods, raw
materials and consumer goods all expanded greatly year-on-year.
Raw materials (y-o-y, %)
-42.8 (Q2, 2009)

-39.3 (Q3)

-2.3 (Q4); 25.4 (Jan 2010)

42.8 (Feb)

Capital goods (y-o-y, %)
-23.6 (Q2, 2009)

-13.7 (Q3)

8.2 (Q4); 30.3 (Jan 2010)

29.3 (Feb)

4.6 (Q4); 21.3 (Jan 2010)

27.1 (Feb)

Consumer goods (y-o-y, %)
-24.4 (Q2, 2009)

-20.9 (Q3)

The trade balance in February shifted back to the black from the previous month’s deficit of
US$460 million, posting a surplus of US$2.33 billion.

(US$ billion)
2009

Trade Balance
Source: Korea Customs Service

16

March 2010

2010

Annual

Q1

Q2

Q3

Q4

Jan

Feb

Jan

Feb

40.45

3.00

16.39

9.94

11.12

-3.77

2.80

-0.46

2.33

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 remained steady month-on-month in January, while
rising 36.9 percent year-on-year due to a low base effect from the same period of the
previous year.
By business category, semiconductors and parts (up 80.1%), automobiles (up 83.1%), and
primary metals (up 50.5%) posted an increase year-on-year, whereas refined petroleum
products (down 5.8%) and beverages (down 2.2%) decreased.
Shipments, led by semiconductors and parts, continued to improve, posting a 32.4 percent
increase year-on-year and 0.8 percent month-on-month, while the level of inventory fell at a
slightly slower pace year-on-year from 7.5 percent to 4.0 percent.
By business category, the shipments of semiconductors and parts (up 77.8%), and
automobiles (up 79.0%) rose year-on-year, while those of cigarettes (down 3.3%) and
refined petroleum products (down 0.7%) declined. The inventories of apparels (down
32.5%), non-metal minerals (down 20.2%), and primary metals (down 9.6%) fell.
The average operation ratio of the manufacturing sector was 78.8 percent, down 0.9
percentage points from a month earlier.
(Percentage change from same period in previous year)
2008
Annual
Production (q-o-q, m-o-m)

Mining and
manufacturing
activity2

2009
Annual

1

2010

Q3

Q4

1

Jan

Nov

Dec

1

Jan1

-

-

6.8

1.3

2.9

1.8

2.4

0.0

(y-o-y)

3.4

-0.7

4.3

16.2

-25.7

18.0

34.3

36.9

- Manufacturing

3.0

-0.9

4.4

16.8

-27.3

18.8

36.0

38.9

Heavy chemical industry
Light industry
Shipment
- Domestic demand

4.4

0.1

5.7

20.0

-28.1

21.9

41.5

43.5

-1.6

-5.7

-2.4

1.7

-22.9

3.6

11.6

17.7

2.6

-1.7

2.1

12.8

-23.6

15.4

26.2

32.4

-0.4

-1.8

3.3

12.4

-24.3

13.9

26.2

26.1

- Exports

7.2

-1.7

0.4

13.3

-22.6

17.5

26.1

34.4

Inventory3

7.1

-8.0

-14.2

-8.0

-0.1

-14.6

-8.0

-4.0

Manufacturing Average operation ratio (%)
activity
Production capacity

77.5

74.6

78.8

78.4

62.8

78.2

79.7

78.8

5.1

3.1

3.2

4.0

2.6

3.9

4.5

4.5

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

3. End-period

Mining and manufacturing production in February is projected to remain steady considering
advanced indices such as exports and industrial electricity sales.
Industrial electricity sales (thousand GWh)
17.7 (Oct 2009)

18.1 (Nov)

19.1 (Dec)

19.4 (Jan 2010)

34.3 (Nov)

36.2 (Dec)

17.2 (Feb) 1

1. Estimate

Exports (US$ billion)
34.1 (Sep 2009)

18

March 2010

34.0 (Oct)

31.1 (Jan 2010)

32.7 (Feb)

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 January 2010 decreased 0.8 percent month-on-month due to sluggish
educational services and real estate & renting services. From a year earlier, service output
expanded 4.6 percent.
By business category, finance & insurance services (up 2.8%), business services (up 2.6%)
led the month-on-month increase in service activity.
On the other hand, educational services (down 7.9%) and real estate & rental (down 6.6%)
declined from a month earlier.
(Percentage change from same period in previous year)
Weight

2008

2009

2010

Annual

Q4

Annual

Q1

Q2

Q3

Q4

Nov

Dec

-0.3

2.4

1.9

3.6

4.2

6.9

Service activity index

100

3.6

0.0

2.0

- Wholesale & retail

1

Jan1
4.6

22.0

1.3

-4.7

-0.4

-4.8

-2.2

0.3

5.4

5.4

8.9

5.8

- Transportation services

9.0

4.3

-3.2

-6.6

-12.7

-10.0

-4.8

1.4

2.5

4.8

11.6

- Hotels & restaurants

7.8

0.7

-3.0

-1.5

-2.6

-0.6

-2.5

-0.2

-1.9

3.6

3.2

- Information & communication services

8.4

3.3

-0.8

0.7

-1.4

1.6

1.4

1.4

1.5

1.4

0.7

- Financial & insurance services

15.3

9.7

4.5

8.0

6.9

10.3

9.0

5.7

5.3

7.7

8.9

- Real estate & renting

6.3

-2.1

-7.5

5.3

-4.2

-2.2

6.7

21.6

21.3

25.9

8.6

- Professional, scientific & technical activities

4.8

2.0

0.9

1.0

-1.7

3.8

0.0

1.6

-2.4

7.7

0.4

- Business services

2.9

4.4

0.0

-3.0

-4.9

-6.2

-0.8

-0.2

-1.3

0.6

3.0

- Educational services

10.8

1.7

7.4

2.8

9.4

16.5

-3.7

-9.6

2.1

-3.3

-12.1

- Healthcare & social welfare services

6.0

8.7

8.7

10.4

8.9

8.9

10.4

13.2

12.5

14.9

14.0

- Entertainment, cultural & sports services

2.9

2.2

3.3

-0.5

1.4

0.7

0.0

-3.8

-6.6

2.6

2.0

- Membership organizations

3.8

0.1

-1.0

-2.4

-3.8

-4.8

-1.4

0.1

-2.2

2.8

2.2

- Sewerage & waste management

0.4

5.8

4.0

3.7

0.1

9.0

6.0

-0.2

2.3

0.3

5.9

1. Preliminary
Source: Statistics Korea

Service activity in February 2010 is expected to slightly increase from a month earlier.
Amid robust expectations on wholesale & retail sales as well as advertisement &
broadcasting services affected by the lunar New Year’s holidays and Winter Olympics,
improved labor market conditions also served as a positive factor.
Initial claims for unemployment benefits (thousand)
67.1 (Oct 2009)

20

March 2010

70.2 (Nov)

93.7 (Dec)

139.7 (Jan 2010)

88 (Feb)

l es

l&

tate

ncia

& re

ranc

e se

ns

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
othe mbersh
r pe ip o
rson rgan
al s izati
ervi ons
Sew
ces , re
pair
reco erage,
&
very was
& re te m
med ana
iatio gem
n ac ent,
tivit mate
ies
rials

es

atio

rvic

unic

s

omm

rant

tail

insu

&c

stau

tion

& re

ion

& re

ntin
g
Prof
e
s
tech sion
nica al, s
l se cien
rvic tifi
c&
es
Bus

Rea

Fina

ale

rtat

rma

els

Info

Hot

spo

oles

Tran

Wh

ex

7-3

l ind

7-2

Tota

7-1
Service industry

Source: Statistics Korea (service industry activity trend)

Wholesale and retail sales

Source: Statistics Korea (service industry activity trend)

December 2009 service industry by business

Source: Statistics Korea (service industry activity trend)

Economic Bulletin

21

8. Employment
The number of workers on payroll in January 2010 increased by 5,000 from a year earlier,
while the employment rate fell by 0.7 percentage points to 56.6 percent.
Employment in construction (down 81,000), and agriculture, forestry & fishery (down
160,000) stayed on a downward track, while hiring in the manufacturing (up 29,000) and
service sector (up 213,000) increased. Manufacturing employment rose due to an increase in
both production and exports. Employment in construction continued to decline, although
decelerating the pace. Hiring in services soared as a result of the recovery of domestic
consumption and expanded expenditure. Employment in agriculture, forestry & fishery
sector tumbled with lower temperature and heavy snowfalls.
Wage workers rose by 244,000 led by an increase of 609,000 in regular workers, although
the number of daily workers plunged by 244,000. Non-wage workers including selfemployed workers (down 113,000), however, plummeted by 240,000 from a year earlier. In
the mean time, male workers (up 91,000) and workers in their fifties (up 233,000)
significantly increased.

2008

2009

2010

Annual

Q3

Q4

Annual

Jan

Q1

Q2

Q3

Q4

Jan

23.58

23.75

23.64

23.51

22.86

22.90

23.74

23.75

23.63

22.87

Employment rate (%)

59.5

59.9

59.4

58.6

84.8

57.4

59.3

59.1

58.7

56.6

(seasonally adjusted)

59.5

59.5

59.2

58.6

59.0

58.8

58.6

58.7

58.5

58.2

Employment growth (y-o-y, thousand)

145

141

54

-72

-11.8

-146

-134

-1

-6

165

(Excluding agriculture, forestry & fishery)

182

179

46

-34

-

-160

-109

24

110

-

- Manufacturing

-52

-52

-103

-126

-127

-163

-151

-143

-49

29

- Construction

-37

-40

-41

-91

-41

-43

-113

-103

-107

-81

- Services

263

262

187

186

57

47

155

269

264

213

Number of employed (million)

- Agriculture, forestry & fishery

-37

-38

8

-38

15

14

-25

-25

-116

-160

- Wage workers

236

208

137

247

21

73

175

356

413

244

Regular workers

386

347

316

383

287

318

313

386

492

609

Temporary workers

-93

-83

-94

22

-134

-136

-5

125

186

-121

Daily workers

-57

-56

-85

-158

-133

-108

-133

-155

-264

-244

- Non-wage workers

-92

-66

-83

-319

-123

-220

-309

-357

-424

-240

-79

-76

-95

-259

-112

-197

-286

-276

-307

-113

96

92

43

31

-19

-23

24

34

89

91
-9

Self-employed workers
- Male
- Female

48

49

12

-103

-84

-124

-158

-34

-94

- 15 to 29

-119

-114

-166

-127

-240

-212

-99

-123

-77

14

- 30 to 39

-26

-36

-92

-173

-113

-159

-213

-169

-149

-81

- 40 to 49

64

92

56

-24

28

8

-27

-30

-46

-56

- 50 to 59

207

169

206

198

197

193

156

211

230

233

18

30

50

54

25

23

49

109

37

-105

- 60 or more
Source: Statistics Korea

22

March 2010

8-1

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

8-2

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

8-3

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

Economic Bulletin

23

The number of the unemployed in January 2010 climbed by 368,000 year-on-year to record
1,216,000, and the unemployment rate rose by 1.1 percentage points to 5.0 percent.
The number of female workers who have lost jobs (up 214,000) increased at a faster pace
than that of male workers unemployed (up 154,000) in January.
The unemployment rate was high among employers in their fifties and sixties or over as
applicants for public works allotted to seniors were categorized as economically active
population.

2008

2009

2010

Annual

Q3

Q4

Annual

Jan

Q1

Q2

Q3

Q4

Jan

Number of unemployed (thousand)

769

752

757

889

848

908

943

886

817

1,216

Unemployment growth (y-o-y, thousand)

-14

-5

24

119

73

107

176

134

60

368

- Male

-12

1

25

80

66

83

116

95

25

154

-1

-6

-1

40

8

24

60

39

36

214

Unemployment rate (%)

3.2

3.1

3.1

3.6

3.6

3.8

3.8

3.6

3.3

5.0

(Seasonally adjusted)

3.2

3.2

3.2

3.6

3.3

3.5

3.9

3.7

3.5

4.8

- Youth aged 15 to 29

7.2

6.9

7.0

8.1

8.2

8.6

8.0

8.1

7.6

9.3

- Middle school graduate or under

2.2

2.1

2.1

2.5

3.0

2.9

2.6

2.2

2.3

7.1

- High school graduate

3.8

3.8

3.8

4.4

4.4

4.5

4.6

4.6

4.0

5.2

- College, univ. graduate or over

3.0

2.9

2.9

3.5

3.0

3.6

3.7

3.3

3.2

3.8

- Female

Source: Statistics Korea

The economically inactive population in January 2010 was up 150,000 from a year earlier to
post 16,310,000. Meanwhile, the labor force participation rate was up 0.1 percentage point
year-on-year to 59.6 percent. Workers quit jobs due to childcare & housework (up 190,000)
and old ages (up 190,000) surged while those who stayed away from work to take a rest
(down 231,000) significantly decreased.

2008

2009

2010

Annual

Q3

Q4

Annual

Jan

Q1

Q2

Q3

Q4

Jan

61.5

61.8

61.3

60.6

59.5

59.7

61.7

61.3

60.7

59.6

Economically inactive population (million) 15.25

15.15

15.37

15.70

16.16

16.09

15.35

15.53

15.83

16.31

Labor force participation rate (%)

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

297

289

372

447

506

514

445

374

456

150

- Engaged in family duties

123

134

112

188

147

209

173

119

250

190

- Retired

76

104

59

88

55

52

102

105

92

190

- Rest

31

-27

99

123

149

162

112

94

123

-231

Source: Statistics Korea

24

March 2010

8-4

Employment rate
Source: Statistics Korea (employment trend)

8-5

Unemployment rate and youth unemployment rate
Source: Statistics Korea (employment trend)

8-6

Unemployment rate by education
Source: Statistics Korea (employment trend)

Economic Bulletin

25

9. Financial market
9.1 Stock market
The Korean stock market in February 2010 slightly fell adversely affected by unfavorable
factors in the global economy. Global investor sentiment has been chilled as uncertainty
over global monetary policy rose as the US and China moved to absorb liquidity. On
February 18, the Federal Reserve Board (Fed) raised the discount rate by 25 basis points
while China’s central bank lifted the reserve requirement ratio by 50 basis points on
February 16.
Worries over the Greek debt crisis persisted as European finance ministers failed to spell out
concrete measures to aid Greece and credit rating agencies, S&P and Moody’s, hinted that
they may downgrade Greece’s sovereign debt rating.
Due to the flight to safety assets, foreign investors shifted to a net-buying position on
Korean shares for the first time since February 2009.
(End-period, point, trillion won)
KOSPI
Jan 2010

Feb 2010

1,602.4

1,594.6

848.1

844.1

Average daily trade value

6.2

4.0

Foreign stock ownership

32.5

32.1

Stock price index
Market capitalization

KOSDAQ
Change

Jan 2010

Feb 2010

-7.9(-0.5%)

496.6

507.3

10.5(2.1%)

-43.2(-4.4%)

84.8

84.4

-0.4(-0.5%)

-2.2(-35.5%)

3.2

2.3

-0.9(-28.1%)

-0.4(-1.2%)

7.6

7.5

-0.1(-1.3%)

1

Change1

1. Change from the end of the previous month

9.2 Exchange rate
The won/dollar exchange rate as of the end of February 2010 fell 1.8 won from 1,161.8 won at
the end of January to wrap up the month at 1,160.0 won.
The exchange rate has shown higher volatility fluctuating in the 1,140 to 1,170 won range due
to external factors such as credit concerns in the eurozone and Dubai and the Fed’s discount
rate hike, rather than internal factors.
The won/yen exchange rate rose 5.8 won from 1,293.2 won to 1,299.0 won due to growing
demand for safe assets including yen affected by sovereign debt woes in Greece and other
eurozone countries.
(End-period)
2006

2007

2008

2009

Dec

Dec

Dec

Dec

2010
Jan

Feb

Change1

Won/Dollar

929.8

936.1

1,259.5

1,164.5

1,161.8

1,160.0

0.4

Won/100Yen

783.4

828.6

1,396.8

1,264.5

1,293.2

1,299.0

-2.7

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.

26

March 2010

9-1

Stock prices

9-2

Foreign exchange rate (month-end)

9-3

Recent foreign exchange rate

Economic Bulletin

27

9.3 Bond market
Treasury bond yields were down in February 2010 due to expectations on the Bank of
Korea’s policy rate freeze after the bank’s monetary policy meeting and continuing concerns
over Greek financial troubles. Although treasury bond yields edged up in mid-February with
the Fed’s discount rate rise, they turned to a decrease as international credit rating company
warned Greece of a credit rating downgrade.
(End-period, %)
2005

2006

2007

2008

2009

2010

Dec

Dec

Dec

Dec

Dec

Jan

Feb

Call rate (1 day)

3.76

4.60

5.02

3.02

2.01

2.00

2.01

1

CD (91 days)

4.09

4.86

5.82

3.93

2.88

2.88

2.88

0

Change1

Treasury bonds (3 yrs)

5.08

4.92

5.74

3.41

4.44

4.27

4.10

-17

Corporate bonds (3 yrs)

5.52

5.29

6.77

7.72

5.56

5.39

5.24

-15

Treasury bonds (5 yrs)

5.36

5.00

5.78

3.77

4.98

4.82

4.62

-20

1. Basis point changes in February 2010 from the previous month

9.4 Money supply & money market
The M2 (monthly average) in December 2009 expanded 8.8 percent from a year earlier
excluding cash management accounts (CMAs), which were included in M2 since July 2009.
The year-on-year M2 growth was lower than the previous month’s 9.1 percent due to
accelerated absorption of money by the government and reduced amount of foreign funds
invested in Korean bonds.
(Percentage change from same period in previous year, average)
2009

2008
Q1

Q2

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Nov

Dec

Dec1

-1.8

-12.4

-0.1

2.1

5.0

16.3

10.8

17.6

18.9

17.8

17.3

16.4

377

M2

14.3

13.3

15.3

14.7

13.8

10.1

11.5

10.1

9.5

9.3

9.1

8.8

1,562

Lf3

11.9

11.6

12.8

12.1

11.2

Upper7

8.8

7.3

7.5

Mid7

Around 7

Mid7

1,9934

Annual
M1+

2

1. Balance at end December 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 November 2009, trillion won

In January 2010, bank deposits turned to a rise while asset management company (AMC)
deposits continued to fall.
Bank deposits shifted to an increase driven by time deposits which expanded at a record
pace fueled by deposit rate hikes. Asset management company (AMC) deposits continued to
decrease due to low yields and higher interest rates on time deposits.

(Monthly change, end-period, trillion won)
2008

2009

Annual

Jan

Bank deposits

104.3

11.6

AMC deposits

63.0

23.5

1. Balance at end January 2010, trillion won

28

March 2010

Annual

2010

Jan

Nov

54.8

-5.2

-27.7

17.7

Dec

Jan

Jan1

1.5

-8.3

15.7

1,023

4.4

-11.1

-5.1

327

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

29

10. Balance of payments
Korea’s current account recorded a US$450 million deficit in January 2010.
The goods account surplus decreased significantly to post US$1.55 billion from the previous
month’s US$4.02 billion as the trade account shifted to a deficit.
Although the travel account deficit expanded, the service account deficit was down to
US$2.16 billion from the previous month’s US$2.80 billion as the business service deficit fell.
The income account surplus declined to record US$470 million from US$700 million a month
earlier due mainly to reduced dividend income.
The current transfer account deficit edged down to US$300 million from the previous
month’s US$400 million with decreased outward remittance.
(US$ billion)
2008

2009

2010

Annual

Annual

Q1

Q2

Q3

Q4

Nov

Dec

Jan

Current account

-5.78

42.67

8.62

13.10

10.40

10.56

4.28

1.52

-0.45

- Goods balance

5.67

56.13

8.31

17.58

14.70

15.54

5.84

4.02

1.55

-16.67

-17.20

-1.93

-4.17

-5.33

-5.78

-1.66

-2.80

-2.16

- Service balance
- Income balance

5.90

4.55

0.92

0.29

1.69

1.65

0.39

0.70

0.47

- Current transfers

-0.67

-0.81

1.31

-0.60

-0.66

-0.86

-0.29

-0.40

-0.30

Source: The Bank of Korea

The capital and financial account in January 2010 posted a net inflow of US$5.07 billion.
Capital & financial account balance (US$ billion)
-1.40 (Q1 2009)

8.68 (Q2)

14.40 (Q3)

4.77 (Q4); 1.64 (Dec)

5.07 (Jan 2010)

The direct investment account expanded the net outflow to register US$1.68 billion from the
previous month’s deficit of US$1.37 billion mainly as inbound foreign direct investment (FDI)
was down.
The portfolio investment account decreased the net inflow to record US$100 million from
US$970 million a month earlier as foreign investment in the Korean stock market declined.
The net inflow in the financial derivatives account was down to post US$320 million from
US$990 million in the previous month as payments related to overseas financial derivative
transactions increased.
The other investment account increased the surplus to US$6.40 billion from the previous
month’s US$1.01 billion as domestic financial institutions’ temporary borrowings from
overseas were up.
The current account is likely to record a surplus of around US$1 billion in February 2010 as
the trade account registered a US$2.33 billion surplus.

30

March 2010

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

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

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

Economic Bulletin

31

11. Prices and international commodity prices
11.1 Prices
Consumer prices in February 2010 increased 2.7 percent year-on-year, decelerating from the
previous month’s 3.1 percent with price stabilization of processed foods and oil products,
although prices of agricultural, livestock and fishery products stayed on an upward track. From
a month earlier, consumer prices were up 0.4 percent.

Consumer price inflation
2009

2010

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Month-on-Month (%)

0.7

0.7

0.3

0.0

-0.1

0.4

0.4

0.1

-0.3

0.2

0.4

0.4

0.4

Year-on-Year (%)

4.1

3.9

3.6

2.7

2.0

1.6

2.2

2.2

2.0

2.4

2.8

3.1

2.7

Core consumer prices (y-o-y)

5.2

4.5

4.2

3.9

3.5

3.2

3.1

2.7

2.6

2.5

2.2

2.1

1.9

(m-o-m)

0.4

0.4

0.2

0.2

0.1

0.2

0.1

0.1

0.1

0.2

0.1

0.1

0.2

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

3.3

3.1

3.0

1.8

0.5

0.4

1.3

1.7

1.5

2.3

3.3

3.8

3.4

Source: Statistics Korea

Prices of agricultural, livestock and fishery products increased driven by products
vulnerable to cold weather. The price was also boosted by increased demand during the
Lunar New Year holidays which shifted from January in 2009 to February in 2010.
Prices of agricultural, livestock & fishery products in Feb 2010 (m-o-m, %)
Chinese cabbage (46.0), apple (13.3), cucumber (26.5), pumpkin (26.4), bell pepper (22.0), scallion (14.7),
lettuce (-34.5), strawberry (-5.7), pork (-1.8), rice (-1.0)

Prices of oil products decreased 0.2 percent from a month earlier as the won’s appreciation was
reflected with time lag while international oil prices went down.
Prices of Dubai crude (US$/barrel)
71.4 (Aug 2009)

67.7 (Sep)

73.2 (Oct)

77.7 (Nov)

75.5 (Dec)

76.8 (Jan 2010)

73.6 (Feb)

Public utility charges remained unchanged month-on-month without noticeable price
adjustments. Personal service charges were up 0.3 percent from the previous month due to
seasonal factors such as the school vacation, moving season and winter heating demand.

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

Agricultural,
livestock & fishery
products

Industrial
products

Oil
products

Housing
rents

Public
utility

Personal
services

0.4

2.5

-0.2

-0.2

0.2

0.0

0.3

0.35

0.22

-0.05

-0.01

0.02

0.00

0.12

2.7

4.3

3.5

11.2

1.4

1.9

2.4

2.69

0.37

1.07

0.60

0.13

0.31

0.83

Source: Statistics Korea

Core consumer prices, which exclude the prices of oil and agricultural products, rose by 1.9 percent
year-on-year. Consumer prices for basic necessities, a barometer of perceived consumer prices, were
up 3.4 percent compared to the same month of the previous year.

32

March 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

33

11.2. International oil and commodity prices
Average international oil prices in February 2010 decreased month-on-month as the dollar
strengthened amid fiscal woes in some European countries such as Greece.
The prices, however, turned to an increase after mid-February as energy demand for heating
was pushed up by cold weather and heavy snowfalls in the North Eastern region of the US.
(US$/barrel, period average)
2007

2008

Annual

Annual

Annual

Aug

Sep

2009
Oct

Nov

Dec

Jan

2010
Feb

Dubai crude

68.4

94.3

61.9

71.4

67.7

73.2

77.7

75.5

76.8

73.6

Brent crude

72.8

97.5

61.7

72.9

67.5

72.8

76.7

74.5

76.4

73.9

WTI crude

72.3

99.9

61.9

71.1

69.4

75.8

78.1

74.5

78.3

76.5

Source: KOREAPDS

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

In the domestic market, galsoline prices inched up month-on-month backed by the won’s
depreciation although international oil prices decreased. Meanwhile diesel prices declined
from the previous month as the prices fell at a steeper pace than gasoline in the
international market.
(Won/liter, period average)
2007

2008

2009

2010

Annual

Annual

Annual

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Gasoline prices

1,526

1,692

1,601

1,670

1,681

1,627

1,655

1,646

1,661

1,664

Diesel prices

1,273

1,614

1,397

1,447

1,453

1,409

1,452

1,441

1,450

1,443

Source: Korea National Oil Corporation

Monthly average prices of all non-ferrous metals in February decreased from a month earlier
with the exception of nickel whose prices increased due to long-term strikes in the Canadian
nickel mines. Non-ferrous metal prices, however, generally showed an upward trend after
mid-February as concerns over China’s monetary tightening eased.
International prices of grain including corn, wheat and soybean decreased from the previous
month as robust grain production in South America boosted the grain harvest outlook for
this year. A strong dollar also contributed to a fall in grain prices.
Prices of non-ferrous metals and grain in Feb 2010 (m-o-m, %)
Corn (-5.5), wheat (-6.0), soybean (-4.3), bronze (-7.3), aluminum (-8.2), nickel (3.0), zinc (-11.6), lead (-10.5), tin (-7.6)

Reuters index*

(Period average)

2007

2008

2009

Annual

Annual

Annual

Aug

Sep

Oct

Nov

Dec

Jan

Feb

2,400

2,536

2,079

2,159

2,147

2,197

2,243

2,294

2,343

2,290

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

34

March 2010

2010

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

35

12. Real estate market
12.1 Housing market
In February 2010, nationwide apartment sales prices increased at a faster pace of 0.4
percent from 0.1 percent a month earlier.
In the Seoul metropolitan area (up 0.1%), the increase in apartment sales prices accelerated
month-on-month in Seoul (up 0.3%) including Gangnam (up 0.4%). On the other hand,
prices relatively stabilized in Gyeonggi province (up 0.0%) and Incheon (down 0.1%).
Meanwhile, apartment sales prices in areas excluding the Seoul metropolitan area
continued to increase led by some metropolitan cities such as Busan (up 1.3%) and Daejeon
(up 1.3%) without enough apartments put up for sale.

Nationwide apartment sales prices
2006

2007

(Percentage change from previous period)
2008

2009

Annual Annual Annual Annual Q1

2010

Q2

Q3

Q4

Dec

Jan

Feb Feb11 Feb81 Feb151 Feb221

Nationwide

13.8

2.1

2.3

1.6 -1.2

0.4

1.5

0.9

0.2

0.1

0.4

0.1

0.1

0.0

0.1

Seoul

24.1

3.6

3.2

2.6 -1.3

1.0

2.6

0.3

0.0

0.1

0.3

0.1

0.1

0.0

0.0

Gangnam

27.6

0.5

-1.9

3.9 -1.1

1.7

3.1

0.2

0.0

0.2

0.4

0.1

0.1

0.0

0.0

Gangbuk3

19.0

8.3

9.4

0.9 -1.7

0.2

2.0

0.4

0.0

0.0

0.1

0.0

0.0

0.0

0.0

Seoul metropolitan area

24.6

4.0

2.9

0.7 -1.8

0.5

1.8

0.2

-0.1

0.0

0.1

0.0

0.0

0.0

0.0

2.1

-0.6

1.0

2.8 -0.7

0.3

1.3

1.9

0.5

0.4

0.8

0.2

0.2

0.1

0.2

2

5 metropolitan cities
1. Weekly trends

2. Upscale area of Southern Seoul

3. Northern Seoul Source: Kookmin Bank

The increase in rental prices has been speeded up significantly to 0.9 percent from the
previous month’s 0.4 percent. In Seoul (up 1.0%), the acceleration was led by Gangnam (up
1.4%), Seocho (up 2.2%), Songpa (up 2.1%) and Gwangjin (up 3.1%) with rising demand in
good school districts and from newlyweds.

Nationwide apartment rental prices
2006

2007

(Percentage change from previous period)
2008

2009

Annual Annual Annual Annual Q1

Nationwide
Seoul
Gangnam

2010

Q2

Q3

Q4

Dec

Jan

Feb Feb11 Feb81 Feb151 Feb221

7.6

1.9

0.8

4.5 -1.3

0.9

2.8

2.0

0.3

0.4

0.9

0.2

0.2

0.1

0.2

11.5

2.2

-1.8

8.1 -0.8

1.8

4.7

2.3

0.4

0.6

1.0

0.2

0.2

0.1

0.2

-3.6 10.4 -0.1

11.3

0.5

2.4

5.1

2.7

0.5

0.9

1.2

0.3

0.2

0.1

0.2

Gangbuk3

11.8

4.6

0.5

5.4 -1.6

1.0

4.2

1.9

0.2

0.1

0.7

0.2

0.2

0.1

0.3

Seoul metropolitan area

11.7

2.1

-0.4

5.6 -1.8

1.4

4.1

1.8

0.1

0.3

0.7

0.2

0.2

0.1

0.2

3.0

1.1

1.6

3.9 -0.9

0.4

1.9

2.6

0.7

0.7

1.4

0.4

0.4

0.1

0.3

2

5 metropolitan cities
1. Weekly trends

2. Upscale area of Southern Seoul

3. Northern Seoul Source: Kookmin Bank

Apartment sales transactions in January 2010 plunged from 81,961 a month earlier to post
61,974. The transactions were up 26.3 percent from a year earlier and down 13.8 percent
compared with the monthly average recorded in the same month for the past 3 years.

Apartment sales transactions
2007
Annual Jan

Nationwide

84

87

Source: Korea Land Corporation

36

March 2010

(Monthly average, thousand)

2008

2009

Annual Jan Annual Jan

74

80

77

49

2010

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

60

79

76

72

81

91

81

90

87

82

82

62

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

37

12.2 Land market
Continuing the moderate recovery pace since April 2009, nationwide land prices in January
2010 rose 0.25 percent, slightly decelerating from the previous month’s 0.34 percent. Land
prices in January were 3.0 percent lower than the pre-crisis peak reached in October 2008.
In the Seoul metropolitan area (up 0.31%), land prices in Incheon (up 0.45%) and Gyeonggi
province (up 0.35%) saw a robust increase.
Land price increases in Seoul metropolitan area (m-o-m, %)
0.37 (Oct 2009)

0.36 (Nov)

0.38 (Dec)

0.31 (Jan 2010)

Meanwhile, land price increases in areas excluding the Seoul metropolitan area slowed to
0.14 percent from 0.26 percent of the previous month.
Land price increases in areas excluding Seoul metropolitan area (m-o-m, %)
0.16 (Oct 2009)

0.21 (Nov)

0.26 (Dec)

0.14 (Jan 2010)

Land prices by region

(Percentage change from previous period)

2007

2008

2009

2010

Annual

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Nationwide

3.88

0.91

1.15

-0.31

1.23

1.46

1.18

-4.08

0.96 -1.20

0.35

0.88

0.94

0.25

0.25

Seoul

5.88

1.40

1.90

-1.00

1.83

2.17

1.59

-6.34

1.40 -1.38

0.68

1.30

0.81

0.25

0.25

Gyeonggi

4.22

1.05

1.14

-0.26

1.28

1.57

1.28

-4.28

1.22 -1.62

0.37

1.13

1.36

0.35

0.35

Incheon

4.86

1.13

1.37

-3.57

1.99 -1.39

1.70

0.45

0.45

1.12

1.36

1.67

2.01

Annual

0.53

1.16

Annual Jan

Source: Korea Land Corporation

Nationwide land transactions in January recorded 170,000 land lots, down 29.6 percent from
the previous month and up 26.9 percent from the same month of the previous year.
Nationwide land transactions decreased in terms of land lots led by Incheon (down 49.3%),
South Jeolla province (down 35.8%) and Gyeonggi province (down 33.5%).

Land sales transactions

(Monthly average, land lot, thousand)

2007 2008

2009

Annual Annual Annual
Nationwide

2010

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

208

208

203

134

164

207

207

192

215

222

206

226

212

207

241

170

Seoul

33

26

22

13

15

20

24

22

27

26

25

28

25

19

21

16

Gyeonggi

49

45

46

26

34

41

48

45

49

50

48

56

52

48

58

39

Incheon

13

13

10

7

7

9

10

9

10

11

10

13

14

11

12

6

Source: Korea Land Corporation

38

March 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

39

13. Composite indices of business cycle indicators
The coincident composite index increased 0.9 percent month-on-month in January 2010,
while the cyclical indicator of coincident composite index was up 0.5 points from the
previous month.
All components of the coincident composite index including the value of construction
completed, the domestic shipment index and the mining and manufacturing production
index increased with the exception of the number of non-farm payroll employment which
has remained flat.
Components of coincident composite index in Jan 2010 (m-o-m)
Value of construction completed (3.8%), domestic shipment index (1.4%), mining & manufacturing production
index (1.3%), volume of imports (1.0%), manufacturing operation ratio index (0.7%), service activity index
(0.5%), wholesale & retail sales index (0.2%), number of non-farm payroll employment (0.0%)

The leading composite index climbed 0.3 percent from the previous month, while the 12month smoothed change in leading composite index slipped 0.3 percentage points monthon-month.
The indicator of inventory cycle, the ratio of job openings to job seekers, the value of
machinery orders received and the value of capital goods imports were up.
Components of the leading composite index in Jan 2010 (m-o-m)
Indicator of inventory cycle (3.8%p), ratio of job openings to job seekers (3.3%p), value of machinery orders
received (1.4%), volume of capital goods imports (0.1%), composite stock price index (0.0%), liquidity in the
financial institutions (-0.1%), spreads between long & short term interest rates (-0.1%p), net terms of trade
index (-0.5%), consumer expectations index (-2.0p), value of construction orders received (-2.2%)

2009
Jul

Aug

Sep

2010
Oct

Nov

1

Dec

1

Jan1

1.1

0.7

0.6

0.5

0.6

0.6

0.9

98.4

98.7

98.9

98.9

99.1

99.1

99.6

(m-o-m, p)

0.6

0.3

0.2

0.0

0.2

0.0

0.5

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

1.5

0.9

0.6

0.6

1.1

0.7

0.3

12 month smoothed change
in leading composite index (%)

7.6

8.8

9.6

10.3

11.3

11.6

11.3

(m-o-m, %p)

2.1

1.2

0.8

0.7

1.0

0.3

-0.3

Coincident composite index (m-o-m, %)
Cyclical indicator of coincident composite index

1. Preliminary

40

March 2010

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

94.2
92.6

13-2 Leading composite index
Source: Statistics Korea

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

Economic Bulletin

41

Policy Issues
Lee Administration’s Economic Achievement
for the Past Two Years

As the Lee Myung-bak administration started its third year at the end of February, the
government looked back on the achievement of the Lee administration in terms of efforts 1)
to weather the global economic crisis, 2) support the working class, 3) upgrade Korea’s
image in the international community, 4) restructure the economy, and 5) enhance potential
for future economic growth.

Weathering the economic crisis
Korea is one of the three OECD economies seeing positive growth in 2009, achieving annual
growth of 0.2 percent. The financial and foreign exchange markets began to stabilize from
the second quarter of 2009, reflecting expectations of economic rebound, as anxiety over
the international financial market began to be eased: The KOSPI soared from end-2008’s
1124.5 points to 1682.8 points at the end of 2009, and during the same period the
won/dollar exchange rate continued to improve from 1259.5 won to 1164.5 won. The current
account balance recorded a surplus of US$42.7 billion in 2009, backed by brisk exports.
The IMF, OECD, and Fitch Ratings positively evaluated the role of the Korean government in
facilitating riding out the economic crisis (IMF at the annual consultation meeting in
December 2009, OECD at the 2010 annual meeting in February 2010, and Fitch Ratings in
September 2009).
The Korean government pursued expansionary fiscal policies along with tax cuts in 2008 and
2009, to supplement and stimulate demand. Some of the examples of the policies are 4.9
trillion won of supplementary budget to control rising oil prices, 11.4 trillion won of
additional budget at the end of 2008 to cope with the economic crisis, and the record high
level of supplementary budget for job creation of 28.4 trillion won. The increased budget
was complemented with early budget expenditure, with 62.9 percent of the 2009 budget,
171.5 trillion won spent in the first half of 2009. Both income tax cuts to boost domestic
demand and corporate tax cuts to promote investment were implemented in line with
consumption tax reduction and investment tax deduction.

42

March 2010

The Korean government responded swiftly in the financial market: The Bank of Korea
slashed the base rate from 5.25 to 2.0 percent, while supplying liquidity of 27.9 trillion won
through RP purchases, open market operation, bank recapitalization fund, total loan
increase, bond market stabilization fund, and increased interest-on-reserves. The
government also carried out measures exclusive for SMEs to provide them liquidity and
credit, which resulted in reduced default rates of corporate bonds and corporations.
Thanks to government’s foreign liquidity provision measures such as currency swap
arrangements with the US, Japan and China, foreign currency liquidity provision by the Bank
of Korea, bond issuance to secure foreign liquidity, and relaxed regulations to facilitate
inflows of foreign investment, most indices related to foreign exchange markets have
recovered to the pre-crisis level: The CDS premium, which was 104 basis points in August
2008, fell back to 103 basis points in February 2010, after it hit 699 basis points in October 2008.
The current account balance greatly improved from a US$5.78 billion deficit in 2008 to a
surplus of US$42.67 billion in 2009, backed by relatively strong exports compared to other
nations amid the global economic downturn. Korea was ranked the 9 th largest exporter in
2009, climbing from the 12th in 2008. The government increased support for export insurance
from 130 trillion won to 170 trillion won and credit guarantee for exporters from 1.5 trillion
won to 6 trillion won between 2008 and 2009 in addition to expanded budgets for R&D and
overseas marketing. The government’s efforts to help enhance Korean companies’
competitiveness will continue through its firm support for parts and service industries, and
green growth engines.

Supporting the working class
To help boost falling employment levels in face of the crisis, the government launched the
job sharing program. Government’s job creation programs include ‘Hope Employment
Program’ which provided 250,000 jobs to the vulnerable group, youth internship program
through which 99,000 college graduates were employed, and social welfare service program
for which the government financed 1.1 trillion won in 2008 and 16.4 trillion won in 2009 to
support employment of social welfare workers. In 2010 ‘the National Strategic Meeting on
Employment’, a monthly meeting presided by the president, was launched, in which mid-and
long term as well as short term measures to raise employment are discussed, laid out, and
implemented.
The government took various measures to stabilize prices directly affecting the lives of low
income class. The price stabilizing measures include oil tax reduction of 10 percent,
redemption of 3.5 trillion won for oil purchased in 2008, lowering tariff quotas and
stabilizing public utility charges, and monitoring prices of 52 necessities: lower tariff quotas
applied to 123 import items in 2009 and public utility charges up 2.4 percent in 2008 and 1.9
percent in 2009. The government will monitor and balance supply of and demand for
agriculture, livestock and fishery products to stabilize their prices, while it strictly bans pricefixing of manufactured goods.

Economic Bulletin

43

The ratio of welfare budget to total budget was steadily increased from 2007’s 25.8 percent
to 26.2 percent in 2008 to 26.6 in 2010. To help the low income class with burden of
education and housing costs, the government adopted income contingent loans and low
interest rate student tuition loans, and planned to provide 1.5 million housing units
affordable to the low income group between 2009 and 2018. The government began
supporting those who have will to be self-reliant but with poor credit through micro-loan
programs which do not require any security for loans. The micro-loan programs will be
expanded to 2 trillion won for the next 10 years. Low income working families of 590,000
received earned income tax credit of 453.7 billion won in 2009 for the first time, which was
designed to encourage them to work.

Upgrading Korea’s image in the international community
In 2009 as one of the G20 Troika, Korea played an active role in working together in the
international community to ride out the crisis through the Washington, London and Pittsburg
summits, where Korea proposed a standstill on protectionism, sharing Korea’s experience of
dealing with toxic assets, and international cooperation in laying out exit strategies. Korea,
as the first emerging country to host a G20 summit, will try hard to effectively play a bridging
role between developed and developing countries, enhance cooperation among
international organizations, and actively collaborate with domestic and overseas think tanks
to reflect their expertise to the G20 Seoul summit in 2010.
Korea made one step forward to become a more reliable donor country by doubling the size
of Official Development Aid (ODA) from US$450 million in 2006 to US$900 million in 2009,
and expanding Knowledge Sharing Program (KSP), through which Korea shares its economic
development experience with other developing countries, from eight countries in 2008 to 11
countries in 2009 with increasing financial support from 2.5 billion won to 5 billion won.
Korea joined the OECD’s Development Assistance Committee (DAC) in November 2009, and
the legal basis for ODA has been established in January 2010.
On the trade front, five FTAs (FTAs with Chile, the EFTA, Singapore, the ASEAN, and India) are
in force, two (FTAs with the US and the EU) signed, seven (FTAs with Canada, the GCC,
Mexico, Peru, Australia, New Zealand, Columbia) under negotiation, and eight under study.
To raise Korea’s birth rate, the government announced measures covering five key areas of
easing bringing-up burden, supporting households with more than two children, creating
family-friendly working environment, supporting single parent and adopting parents, and
pursuing more open immigration policies. Action plans for 2011 through 2015 will follow, and
be reflected in budgeting.

44

March 2010

Restructuring the economy
The government founded a financial basis for corporate restructuring by launching the Bank
Recapitalization Fund of 20 trillion won and Corporate Restructuring Fund of 40 trillion won.
To promote corporate restructuring, the government introduced corporate tax reduction in
April 2009, which applies to a company or its major shareholders selling assets to repay
corporate debt. The revised capital market law was passed in the plenary session of the
National Assembly in February 2010, which allows Private Equity Fund to invest in
corporation under restructuring.
Household debt, in particular mortgage loans, has been on the rise. However, the debt is
relatively sound thanks to the government’s early response to increasing mortgage loans by
tightening the loan to value (LTV) ratio and debt to income (DTI) ratio.
In dealing with cacophonous labor-management relations, the government stuck to the
principle that it does not tolerate any illegal walkouts. Revised regulations banning
companies from paying full-time union workers and allowing multiple unions in one
workplace were passed, which will be enforced from July 2010 and July 2011, respectively.
Instead of paying by a company as full time union workers, union members will be exempt
from their company duties for some time to carry out union activities. Multiple unions in one
workplace are obliged to form a single bargaining body to negotiate with a company. The
number of labor-management disputes hit the lowest in 2008 at 130 cases and increased to
175 in 2009, which, although increased, is still a low level compared with the previous years.
Government’s efforts to scrap unnecessary business regulations were paid off as the World
Bank’s report “Doing Business 2010” ranked Korea 19th out of 183 countries in the business
friendliness scale, up 4 notches from the previous year. Korea lifted limitations on giant
corporations’ investment in other companies, by allowed non-financial companies to hold
bank shares up to nine percent, eased regulations on metropolitan area development and
military facilities protection zone development, and took market friendly measures in the
service sector.

Nurturing future growth potential
The government designated 17 future growth engines in three areas: 1) green technologies
to generate and effectively use energy, 2) high-tech convergence industries such as IT and
communications, new materials and nano-technology, and medical devices and biotechnology, and 3) value added services such as health care, education, content & software,
and tourism. The government increased support for those industries not only through R&D
budgets, tax incentives and deregulation but also by certifying new technologies to
encourage private investment in the promising technologies.

Economic Bulletin

45

Economic
News Briefing

Korea hosts the G-20 Deputy Finance Ministers’ and Deputy Governors’
meeting
The G-20 Deputy Finance Ministers’ and Deputy Central Bank Governors’ Meeting was held
at the Songdo, Incheon from February 27 to 28, marking the first G-20 meeting that Korea
chaired.
Some 150 participants included delegations from G-20 member nations and international
organizations such as the IMF, the World Bank and the OECD. The co-chairs were Shin JaeYoon, the Deputy Minister for International Affairs of the Ministry of Strategy and Finance,
and Rhee Gwang-Ju, Deputy Governor of the Bank of Korea.
The focus of the meeting was to analyze the current situation of the global economy and
continue the follow-up of past G-20 agendas. On February 27, participants focused
discussions on framework for strong, sustainable and balanced growth, global financial
safety nets, and international financial institutions’ reform. On February 28, discussions
were centered on improving financial regulations, addressing problems of energy subsidies
and financial inclusion, and financing for the fight against climate change.

46

March 2010

About 100 of the global business leaders will gather in Seoul to attend the “Seoul G-20
Business Summit” from November 10 to 11, 2010. The summit will cover four topics on the
agenda: trade and investment, finance, green growth, and corporate social responsibility. It
will be the first time for the world’s top business leaders to get together on the sidelines of a
G-20 Summit, seeking economic cooperation between public and private sectors.

Amendments to the Financial Investment Services and Capital Markets
Act (FSCMA) passed at the National Assembly
Amendments to the Financial Investment Services and Capital Markets Act (FSCMA) were
passed at a general meeting of the National Assembly on February 18, 2010. The revisions
were made based on six proposals submitted by legislators to address various issues raised
since FSCMA came into effect in February 2009.
The amendments are expected to take effect in June 2010, three months after a public
announcement. In regard with commercial papers (CPs), however, the new rule will be
enforced immediately after public hearings.

Key changes

Purposes

A. Introducing PEFs and Mutual Fund for corporate financial restructuring
(temporarily enforced for 3 years)

Facilitating corporate funding and corporate
restructuring through capital markets

B. Allowing companies to issue CPs without issuing electronic notes
C. Strengthening requirements for financial investment companies to add
new business activities, while easing requirements for major shareholders
D. Extending qualification requirements for financial investment companies’
executives to non-registered directors

Improving the quality of financial services
through the extended scope of financial
investment businesses, as well as enhancing
public trust in financial investment companies

E. Imposing mandatory ceilings on fund sales/service fees

Providing better protections for financial

F. Conducting prior reviews for OTC derivatives trades

investors and consumers

With the intent to utilize the capital markets and gather private funds to revitalize corporate
restructuring, a special exemption law will be enacted and enforced for three years on asset
management of funds specially purposed for enhancing corporate financial structure. Under
the revised law, private equity funds (PEFs) for corporate financial restructuring are able to
invest in a company without management participation, but are to invest more than 50
percent of their assets into corporate restructuring related assets. In regard to Mutual Funds
for corporate financial restructuring, the 10 percent rule, which limits investments in a single
company to a maximum of 10 percent of the funds’ assets, is alleviated to supply sufficient
liquidity to the SMEs. The funds are enabled to invest a maximum of 50 percent of its assets
in newly issued stocks of SMEs and mid-size corporations.

Economic Bulletin

47

The amended law will remove the potential hurdle for the issuance and trade of CPs. Before
revision, listed companies that are subject to external audits are required to issue electronic
notes when issuing promissory notes. The previous requirement of issuing electronic notes,
however, is waved for CPs.
Under the revised law, requirements for financial companies to expand into new business
activities are strengthened, while qualifications for major shareholders are eased. Also,
required qualifications for executives of financial companies are extended to cover nonregistered directors.
The new law stipulates that fund sales fees should not exceed 3 percent of paid-in capital
and service fees should not surpass 1.5 percent of the fund’s asset in order to curb excessive
fees taken by fund management companies and to protect investors. In addition, prior
reviews for over-the-counter (OTC) derivatives are introduced as an ex-ante regulations to
assess risks involved in OTC derivatives. A review committee will be created within the Korea
Financial Investment Association (KOFIA) to conduct a prior review of OTC derivatives newly
introduced by each financial company.

Korea’s international investment position at the end of 2009 (preliminary)
Korea’s overseas investment surged in 2009 from a year earlier on the back of a sharp rise in
reserve assets as well as an increase in the appraised value of overseas investment, Bank of
Korea said on February 26.
As of the end of 2009, the outstanding amount of Korea’s investment abroad stood at
US$604.7 billion, a rise of US$109.3 billion from the end of 2008. The outstanding amount of
Korea’s external assets in debt instruments amounted to US$417.1 billion, up US$69.3
billion year-on-year.
Meanwhile, the outstanding amount of foreign investment into Korea recorded US$752.8
billion at the end of 2009, expanding US$144.3 billion from the end of 2008. Korea’s external
debt stood at US$401.9 billion, an increase of US$24.0 billion from a year earlier.
The net international investment position (NIIP) as of the end of 2009 posted minus
US$148.0 billion, down US$35.0 billion from the end of 2008. Net external assets in the form
of debt instruments stood at US$15.2 billion, up US$45.3 billion year-on-year.

48

March 2010

International investment position

(US$ billion, end-period)
2007

2008

Sep
20091

20092

changes
during
year

596.8

495.4

577.6

604.7

109.3

78.0

31.4

74.8

97.9

107.8

115.6

17.7

10.6

7.1

68.1

88.4

96.6

103.5

15.1

8.1

7.0

6.7

9.5

11.2

12.1

2.6

2.4

0.1

2. Portfolio investment

158.6

75.1

98.2

102.4

27.3

-1.3

28.6

2.1. Equity securities

104.9

47.9

72.1

76.9

29.0

2.7

26.4

53.8

27.2

26.0

25.5

-1.8

-3.9

2.2

2.3

10.4

7.6

6.2

-4.1

-

-4.1

4. Other investment

98.9

110.8

109.8

110.5

-0.3

-0.4

0.1

4.1. Trade credits

15.2

14.2

16.2

15.5

1.4

0.9

0.5

A. Assets (Korea’s investment abroad)
1. Direct investment
1.1. Equity capital & reinvested earnings
1.2. Other capital

2.2. Debt securities
3. Financial derivatives

trade
factors

non-trade
factors

4.2. Loans

35.9

45.3

44.0

45.2

-0.2

-0.6

0.4

4.3. Currency & deposits

11.2

17.7

18.7

16.8

-0.9

0.3

-1.2

4.4. Others

36.7

33.7

30.9

33.1

-0.6

-1.0

0.4

5. Reserve assets

262.2

201.2

254.3

270.0

68.8

69.1

-0.3

<External assets in debt instruments>

420.6

347.9

400.4

417.1

69.3

67.2

2.1

Short-term

333.1

280.2

329.2

345.0

64.8

-

-

Long-term

87.5

67.7

71.1

72.2

4.5

-

-

B. Liabilities (Foreign investment in Korea)

826.3

608.5

735.3

752.8

144.3

39.7

104.6

1. Direct investment

122.0

94.7

107.4

110.8

16.1

1.5

14.6

118.2

90.2

102.2

105.2

15.0

0.8

14.2

3.8

4.5

5.1

5.6

1.1

0.7

0.4

456.7

251.0

373.4

390.0

139.1

49.4

89.7

1.1. Equity capital & reinvested earnings
1.2. Other capital
2. Portfolio investment
2.1. Equity securities

320.1

124.6

224.2

236.0

111.3

25.7

85.7

2.2. Debt securities

136.6

126.3

149.3

154.1

27.7

23.7

4.0

4.9

15.8

11.5

9.7

-6.0

-

-6.0

242.8

247.1

243.0

242.2

-4.9

-11.2

6.3

3. Financial derivatives
4. Other investment
4.1. Trade credits
4.2. Loans
4.3. Currency & deposits
4.4. Others
<External debt>

58.0

70.0

65.4

63.4

-6.6

-12.1

5.5

162.9

142.7

143.8

150.5

7.8

9.0

-1.2

15.9

26.9

22.4

17.4

-9.5

-11.8

2.3

6.0

7.5

11.4

11.0

3.5

3.7

-0.2

383.2

377.9

397.4

401.9

24.0

13.2

10.7

Short-term

160.3

149.9

147.5

150.0

0.1

-

-

Long-term

222.9

228.1

249.9

252.0

23.9

-

-

-229.5

-113.1

-157.7

-148.0

-35.0

38.3

-73.2

37.4

-30.1

3.0

15.2

45.3

53.9

-8.7

C. Net IIP (C=A-B)
<Net external assets in debt instruments>
1. Revised
2. Preliminary

Economic Bulletin

49

Domestic banks’ foreign currency liquidity conditions remain favorable
Domestic banks’ short-term borrowing conditions have largely remained intact from the
recent concerns over credit risk in Southern Europe. From January 1 to February 10 this year,
the spread over Libor for 2 to 364 day borrowings averaged 25.3 basis points with an
average maturity of 79.5 days, staying on a favorable track since the second half of last year.
The market conditions for long-term borrowings have also continued to improve since 2009
although the CDS premium for Korean paper has recently risen due to credit default risk
concerns in Southern Europe. The Libor spread for 1 year paper stayed benign albeit
widening from 67 basis points in January to 86 basis points during the first ten days of
February. The spread for 5-year paper narrowed recently to as low as 155 basis points
recovering to the levels before the collapse of Lehman Brothers.
As of February 10, 2010, domestic banks exceeded, on a preliminary basis, the recommended
levels to secure foreign exchange soundness measured by the 3-month foreign-currency
liquidity ratio as well as for the 7-day and 1-month maturity mismatch ratios.

Korea to boost software development
The Korean government plans to inject one trillion won (US$870 million) to nurture the
nation’s software industry by 2012 as a way to keep abreast of a new competition structure
in the world’s software market. On February 4, the government announced four core
strategies and 12 major policy tasks dedicated to software development for the first time.
The government will foster fair trade practices in the software industry and strengthen the
nation’s embedded software industry development. A government-run vocational training
program will be set up to nurture software programming experts, with the cooperation of
enterprises. The trainees will be given chances to work for related companies upon finishing
their course. Further, a recruitment system will be launched to link 70,000 nationally
reported software engineers and relevant companies.
The government will also increase investment into software R&D to 670 billion won by 2013
from the current 370 billion won, and boost software development cooperation with India,
the world’s second largest software exporter, supported by the Comprehensive Economic
Partnership Agreement (CEPA) between the two countries.
The government expects that the country’s software exports will increase to US$15 billion
and 160,000 new jobs will be created by 2013, helped by the growth plan for the industry.

50

March 2010

Flexible working hour system to be spread
The Korean government has set up the plan to spread flexible work scheme in the second
national employment strategy meeting on February 18, 2010 so that more people can benefit
from more job opportunities. One key way to boost Korea’s low employment rate is to
promote the adoption of flexible working hours which will encourage women and the elderly
to remain active in the labor market.
Pilot programs for the flextime system will be launched in government offices and public
corporations. After a trial period, the government will encourage the private sector to adopt
the tested programs. Also the government will solidify institutional and political bases to
facilitate flexible work system and make efforts to form an agreeable social environment for
the flextime system. Relevant laws will be revised so that employers who offer flexible hours
do not suffer disadvantages. In addition, the government will work to protect the welfare of
employees who take alternative working arrangements. The exemption clause of national
health and annuity insurances will be adjusted to meet the given standard (working less
than 60 hours) of employment insurance.

Korea signs nuclear power plant deal with Turkey
The Korea Electric Power Cooperation (KEPCO) and Turkish state power company Electrik
Uretim Anonim Sirketi (EUAS) have reached an agreement of nuclear energy deal
cooperation on March 10, 2010, said the Ministry of Knowledge Economy. According to the
agreement, the two countries will carry out preliminary work to build a Korean-style nuclear
power plant in Sinop, northern part of Turkey. The deal is meaningful in that Korea has
secured a foothold to export nuclear power plants, APR1400, to Turkey. The Vice Minister
Kim Young-hak of the Ministry of Knowledge Economy has met Turkey’s Energy and Natural
Resources Minister Taner Yildiz and the Prime Minister Recep Tayyip Erdogan to discuss
ways to form a cooperative tie-up with the signing of the joint declaration.

Economic Bulletin

51

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

53

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

2002
2003
2004
2005
2006
2007
2008P
2009P

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
0.2

-2.2
-5.4
9.1
1.3
1.5
4.0
5.5
1.6

8.7
5.4
10.0
6.2
8.1
7.2
3.1
-1.8

8.1
0.5
1.0
4.6
5.1
5.1
1.6
1.3

Construction

Facilities

7.1
4.4
2.1
1.9
3.4
4.2
-1.7
-0.9

6.2
8.5
1.3
-0.4
0.5
1.4
-2.1
3.1

7.3
-1.5
3.8
5.3
8.2
9.3
-2.0
-8.9

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
IV

-4.2
-2.2
0.9
6.0

1.5
-1.2
3.1
2.8

-13.6
-7.3
1.6
12.5

-2.0
0.9
1.7
4.5

-8.1
-2.7
-0.8
6.4

1.6
3.7
2.7
3.9

-23.5
-15.9
-7.4
12.9

P: Preliminary
Source: The Bank of Korea

54

March 2010

Growth rate by economic activity

Growth rate by expenditure on GDP

Economic Bulletin

55

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

Production
index

Period

Y-o-Y
change (%)

Shipment
index

Y-o-Y
change (%)

Inventory
index

Y-o-Y
change (%)

Service
production
index

Y-o-Y
change (%)

2008

119.8

3.4

118.3

2.6

125.5

7.1

116.1

3.6

2009 P

118.9

-0.18

116.3

-1.7

115.5

-8.0

118.4

2.0

121.9

11.2

119.8

9.3

123.6

8.4

114.0

6.8

2008

2009

2008

2009

2010

I
II

125.5

9.2

123.0

6.8

133.2

16.3

116.0

4.3

III

119.6

5.9

118.0

5.5

132.0

17.1

116.4

3.4

IV

112.4

-10.9

112.4

-9.9

125.5

7.1

118.1

0.0

I

102.8

-15.7

101.9

-14.9

116.0

-6.1

113.7

-0.3

II

117.8

-6.1

115.9

-5.8

110.6

-17.0

118.8

2.4

III

124.7

4.3

120.5

2.1

113.3

-14.2

118.6

1.9

IVP

130.6

16.2

126.8

12.8

115.5

-8.0

122.3

3.6

1

126.3

12.0

121.9

10.5

123.9

4.5

114.3

8.0

2

111.1

10.9

109.9

8.1

124.3

7.5

109.6

6.6

3

128.3

10.9

127.6

9.2

123.6

8.4

118.1

6.0

4

126.5

11.2

124.8

8.9

124.6

11.4

116.1

6.1

5

126.5

9.2

123.7

6.6

128.7

12.7

116.7

4.1

6

123.5

7.3

120.5

4.9

133.1

16.2

115.1

2.7

7

123.4

8.9

121.6

8.0

132.4

14.5

117.4

4.7

8

116.2

2.2

114.7

2.0

132.1

14.3

114.2

1.2

9

119.1

6.7

117.6

6.3

132.0

17.1

117.5

4.2

10

126.7

-1.5

124.2

-1.7

134.7

17.1

118.9

3.1

11

110.3

-13.6

109.8

-12.9

133.2

15.9

113.3

-2.0

12

100.0

-18.4

103.2

-15.1

125.5

7.1

122.2

-1.0

1

93.8

-25.7

93.1

-23.6

123.7

-0.2

112.4

-1.7

2

99.8

-10.2

99.4

-9.6

117.6

-5.4

109.5

-0.1

3

114.7

-10.6

113.3

-11.2

115.9

-6.2

119.2

0.9

4

116.1

-8.2

114.7

-8.1

112.4

-9.8

119.9

3.3

5

115.0

-9.1

112.8

-8.8

111.4

-13.4

118.5

1.5

6

122.2

-1.1

120.1

-0.3

110.6

-16.9

118.0

2.5

7

124.3

0.7

120.0

-1.3

112.3

-15.2

118.1

0.6

8

117.4

1.0

113.5

-1.0

112.8

-14.6

115.5

1.1

9

132.3

11.1

127.9

8.8

113.3

-14.2

122.3

4.1

10

127.0

0.2

123.4

-0.6

112.6

-16.4

118.3

-0.5

11

130.3

18.1

126.8

15.5

113.7

-14.6

118.1

4.2

12P

134.3

34.3

130.2

26.2

115.5

-8.0

130.6

6.9

1P

128.4

36.9

123.3

32.4

118.9

-3.9

117.6

4.6

P: Preliminary
Source: Statistics Korea

56

March 2010

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

Production
capacity index
(2005=100)

Period

Y-o-Y
change (%)

Operation
ratio index
(2005=100)

Y-o-Y
change (%)

Average
operation
ratio (%)

2008

115.3

5.1

97.2

-3.2

77.5

2009 P

118.9

3.1

93.5

-3.8

74.6

113.8

5.9

99.3

2.2

81.5

2008

2009

I
II

115.1

6.3

103.1

0.5

80.8

III

116.0

5.3

95.5

-0.7

78.3

IV

116.4

3.4

91.1

-13.6

69.6

I

116.8

2.6

81.4

-18.0

66.9

II

117.8

2.3

94.6

-8.2

74.2

III

119.7

3.2

97.8

2.4

78.8

IVP

121.1

4.0

100.3

10.1

78.4

2008 1

113.8

6.2

103.2

3.4

82.1

2

113.8

5.9

89.5

1.5

80.6

3

113.9

5.8

105.1

1.4

81.7

4

114.3

5.9

104.7

3.2

82.1

5

115.4

6.7

103.3

-0.6

80.1

6

115.7

6.2

101.2

-1.3

80.1

7

115.7

5.5

99.8

1.5

79.3

8

116.0

5.3

92.2

-4.6

78.3

9

116.2

4.9

94.5

0.7

77.3

10

116.3

3.6

104.1

-4.8

76.9

11

116.3

3.4

89.4

-16.8

69.1

12

116.7

3.3

79.7

-20.1

62.8

2009 1

116.8

2.6

73.5

-28.8

62.8

2

116.7

2.5

79.5

-11.2

67.7

3

117.0

2.7

91.1

-13.3

70.3

4

117.6

2.9

93.4

-10.8

72.4

5

117.6

1.9

92.6

-10.4

73.6

6

118.3

2.2

97.9

-3.3

76.6

7

119.1

2.9

98.6

-1.2

78.7

8

119.5

3.0

91.1

-1.2

77.7

9

120.4

3.6

103.6

9.6

79.9

10

120.6

3.7

99.1

-4.8

77.3

11

120.8

3.9

100.6

12.5

78.2

12P

121.9

4.5

101.3

27.1

79.7

2010 1P

122.0

4.5

97.3

32.4

78.8

P: Preliminary
Source: Statistics Korea

Economic Bulletin

57

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

Period

Y-o-Y
change (%)

Durable
goods

Y-o-Y
change (%)

Semi-durable
goods

Y-o-Y
change (%)

Non-durable
goods

Y-o-Y
change (%)

2008

110.6

1.1

126.4

1.6

104.9

-3.0

110.0

1.4

2009 P

113.5

2.6

136.7

8.1

105.2

0.3

111.3

1.2

111.5

4.5

129.9

8.7

103.6

4.0

109.2

2.3

2008

2009

I
Il

111.7

2.9

134.1

8.0

107.2

-2.7

108.8

1.3

III

108.8

1.4

125.8

-0.1

94.0

0.3

112.3

1.5

IV

110.4

-4.2

115.7

-9.6

115.0

-10.7

109.5

0.2

I

106.3

-4.7

114.4

-11.9

102.0

-1.5

107.7

-1.4

II

113.4

1.5

141.8

5.7

106.6

-0.6

109.3

0.5

III

111.9

2.8

135.7

7.9

93.3

-0.7

114.4

1.9

IVP

122.3

10.8

154.9

33.9

118.9

3.4

114.0

4.1

2008 1

111.7

5.4

128.3

8.1

104.4

6.7

108.8

4.3

2

107.3

3.5

117.8

6.1

97.8

7.2

108.4

0.6

3

115.4

4.6

143.6

11.4

108.5

-1.3

110.5

2.2

4

113.4

6.3

139.1

15.6

108.5

-2.8

109.5

4.5

5

115.1

3.3

136.0

7.9

112.1

-3.7

112.3

2.0

6

106.5

-0.7

127.1

0.6

100.9

-1.8

104.5

-2.7

7

109.6

4.2

140.7

7.9

97.6

3.5

106.1

1.0

8

106.2

2.2

121.5

-4.7

86.2

8.8

112.0

2.0

9

110.7

-1.8

115.2

-3.8

98.1

-8.9

118.8

1.6

10

109.7

-3.3

123.9

-0.5

111.6

-10.1

106.6

-2.2

11

108.9

-4.6

108.9

-15.3

120.3

-7.7

107.7

1.2

12

112.7

-4.8

114.4

-12.5

113.1

-14.3

114.3

1.5

2009 1

108.5

-2.9

103.9

-19.0

102.6

-1.7

114.8

5.5

2

100.9

-6.0

115.8

-1.7

96.1

-1.7

99.0

-8.7

3

109.4

-5.2

123.6

-13.9

107.4

-1.0

109.2

-1.2

4

108.6

-4.2

123.7

-11.1

108.3

-0.2

107.1

-2.2

5

117.0

1.7

144.0

5.9

112.1

0.0

113.0

0.6

6

114.6

7.6

157.8

24.2

99.4

-1.5

107.8

3.2

7

110.9

1.2

138.3

-1.7

94.3

-3.4

111.1

4.7

8

106.7

0.5

122.7

1.0

85.6

-0.7

112.9

0.8

9

118.1

6.7

146.0

26.7

100.1

2.0

119.1

0.3

10

120.4

9.8

144.7

16.8

114.9

3.0

116.8

9.6

11

119.5

9.7

153.2

40.7

120.7

0.3

109.3

1.5

12P

127.0

12.7

166.8

45.8

121.2

7.2

116.0

1.5

2010 1P

116.0

6.9

145.3

39.8

107.9

5.2

108.8

-5.2

P: Preliminary
Source: Statistics Korea

58

March 2010

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

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

Period

Durable
goods

Y-o-Y
change (%)

Non-durable
goods

Y-o-Y
change (%)

Consumer
sentiment index

2008

114.8

1.6

126.8

1.8

109.9

1.4

2009 P

115.5

0.6

133.9

5.6

108.1

-1.6

I

117.6

5.9

133.7

11.6

111.1

3.3

-

II

115.8

4.3

136.8

11.7

107.4

0.9

-

2008

2009

-

III

114.0

2.4

123.5

0.5

110.1

3.2

-

IV

112.1

-5.6

114.8

-13.6

111.0

-1.8

-

I

106.8

-9.2

113.0

-15.5

104.3

-6.1

II

114.1

-1.5

138.3

1.1

104.5

-2.7

III

118.9

4.3

138.3

12.0

111.1

0.9

IV P

122.4

9.2

147.1

28.1

112.5

1.4

2008 1

125.4

9.1

132.6

12.4

122.5

7.8

-

2

106.5

2.1

123.1

8.3

99.8

-0.7

-

3

120.6

5.7

144.2

12.8

111.1

2.3

-

4

119.8

7.3

144.2

20.3

110.1

1.7

-

5

115.7

2.4

136.9

9.3

107.2

-0.7

-

6

111.7

2.9

128.5

5.0

105.0

2.0

-

7

117.8

7.4

134.3

8.0

111.1

6.9

84

8

111.7

-1.1

118.6

-5.1

108.9

0.7

96

9

112.0

0.6

116.1

-2.8

110.3

2.1

96

10

119.7

-1.6

127.7

-6.4

116.6

0.8

88

11

107.0

-9.3

111.0

-15.8

105.4

-6.2

84

12

109.1

-6.3

104.4

-19.8

111.0

0.1

81

2009 1

106.4

-15.2

98.6

-25.6

109.5

-10.6

84

2

102.7

-3.6

115.1

-6.5

97.7

-2.1

85

3

110.9

-8.0

124.4

-13.7

105.6

-5.0

84

4

111.3

-7.1

119.1

-17.4

108.2

-1.7

98

5

112.7

-2.6

138.9

1.5

102.2

-4.7

105

6

118.2

5.8

156.1

21.5

103.0

-1.9

106

7

118.1

0.3

144.3

7.4

107.7

-3.1

109

8

110.0

-1.5

124.6

5.1

104.2

-4.3

114

9

128.2

14.5

145.0

24.9

121.5

10.2

114

10

120.2

0.4

138.8

8.7

112.7

-3.3

117

11

118.8

11.0

146.0

31.5

107.9

2.4

113

12

128.2P

17.5P

156.1P

49.5P

117.0P

5.4P

113

2010 1

121.1P

13.8P

135.4P

37.3P

115.4P

5.4P

113

-

111

2

-

-

-

-

-

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

Economic Bulletin

59

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

Estimated
facility investment
index
(2005=100)

Domestic
machinery
shipment
excluding ship
(2005=100)

Total

Public

Private

20,718

3,735

16,983

9,111

105.4

110.4

I
ll
III
IVP

5,033
4,942
5,591
5,152

932
696
1,345
763

4,101
4,246
4,246
4,389

1,998
2,212
2,321
2,586

93.9
106.3
103.8
117.7

98.7
112.7
107.5
122.6

2009 1
2
3
4
5
6
7
8
9
10
11
12P

1,575
1,682
1,775
1,457
1,377
2,108
2,494
1,340
1,757
1,541
1,942
1,669

232
518
181
91
96
508
1,073
71
200
84
433
246

1,344
1,164
1,594
1,366
1,280
1,600
1,421
1,268
1,557
1,458
1,509
1,422

714
531
746
678
658
883
754
653
914
836
941
810

86.3
92.8
102.5
100.7
103.2
115.1
97.8
97.5
116.2
108.2
116.7
128.2

85.2
97.8
113.1
110.9
104.2
123.0
107.5
98.2
116.8
109.1
116.3
142.3

2010 1P

1,754

169

1,585

1,011

103.9

111.7

2009P
2009

Manufacturing

Y-o-Y change (%)
2009 P

-11.8

61.7

-19.9

-27.2

-8.0

-5.2

I
ll
III
IVP

-35.5
-17.7
3.4
20.0

150.8
29.9
280.2
-27.2

-44.8
-22.3
-16.0
35.2

-59.1
-27.6
-19.4
51.5

-17.9
-12.9
-10.0
10.2

-12.7
-8.0
-6.4
6.4

2009 1
2
3
4
5
6
7
8
9
10
11
12P

-49.1
-27.5
-25.5
-27.4
-25.4
-2.0
6.1
-19.6
26.5
-7.9
56.2
21.2

56.5
661.0
16.8
-4.1
8.9
44.5
498.5
-17.4
127.5
-79.0
110.1
-44.5

-54.4
-48.3
-28.4
-28.5
-27.1
-11.1
-34.6
-19.7
19.7
14.3
45.5
52.4

-64.6
-65.8
-42.6
-39.1
-26.6
-16.6
-38.1
-30.7
27.3
16.5
74.6
79.5

-21.1
-12.0
-20.2
-18.7
-16.2
-3.4
-18.8
-15.4
5.4
-0.4
10.2
21.1

-20.7
-6.1
-11.4
-9.2
-15.8
1.1
-10.9
-9.9
1.6
-5.3
4.0
20.1

2010 1P

11.3

-27.1

18.0

41.5

20.4

31.1

2009

P: Preliminary
Source: Statistics Korea

60

March 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

32,393

52,562

107,011

50,771

51,914

Public

89,863

2009 P

Type of order

Domestic
construction
orders received
(total)

Value of
construction
completed
(total)

2009

I
ll
III
IVP

19,130
23,628
22,106
25,000

6,570
8,665
7,875
9,284

11,544
13,577
13,029
14,412

18,104
26,392
19,719
42,795

9,219
17,747
8,826
14,980

8,263
7,760
9,971
25,920

2009

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

6,063
6,102
6,964
7,433
7,227
8,971
6,988
6,719
8,398
7,301
8,060
9,639

2,150
2,039
2,381
2,636
2,597
3,431
2,362
2,427
3,085
2,585
2,780
3,919

3,623
3,751
4,170
4,416
4,208
4,953
4,252
3,929
4,848
4,354
4,854
5,204

5,674
4,949
7,481
7,513
7,151
11,728
6,009
4,660
9,050
10,570
14,538
17,688

2,679
2,758
3,782
5,752
4,434
7,561
3,314
1,756
3,756
4,700
5,101
5,179

2,728
2,065
3,471
1,488
2,596
3,677
2,398
2,807
4,766
5,616
8,853
11,451

2010

1P

6,600

2,398

3,900

6,643

2,286

4,074

Y-o-Y change (%)
2009 P

3.3

21.2

-5.7

3.0

60.9

-21.9

2009

I
ll
III
IVP

4.3
6.4
-1.2
3.7

24.5
31.9
21.3
10.7

-5.3
-5.9
-11.8
0.4

-12.0
-1.1
7.6
11.6

33.1
182.9
78.9
11.6

-37.3
-60.2
-14.3
17.3

2009

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

-0.5
11.2
3.1
5.5
-1.6
14.6
-2.8
-8.2
6.8
-5.9
3.2
12.9

25.2
34.2
16.7
34.0
16.8
44.4
16.6
14.1
31.9
3.5
8.1
18.3

-11.4
1.0
-5.0
-5.2
-11.4
-1.3
-11.6
-18.9
-5.4
-10.1
1.7
9.8

0.3
-19.0
-14.9
-10.7
-17.9
22.7
-1.8
-27.0
55.3
28.8
78.8
-19.6

64.4
39.7
13.8
234.8
70.5
286.7
135.8
6.7
99.6
90.8
63.3
-33.9

-31.2
-47.3
-34.5
-77.1
-55.5
-48.9
-42.7
-36.6
57.4
16.2
92.5
-9.6

2010

1P

8.9

11.6

7.6

17.1

-14.7

49.4

P: Preliminary
Source: Statistics Korea

Economic Bulletin

61

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

Period

Leading
index
(2005=100)

Y-o-Y
change (%)

Coincident
index
(2005=100)

Cycle of
coincident
index
(2005=100)

BSI (results)

BSI (prospects)

2007 1

109.1

5.3

110.9

101.2

85.6

96.5

2

110.0

5.8

111.3

101.2

87.5

93.4

3

110.4

5.8

111.9

101.3

109.4

112.3

4

111.1

6.0

112.5

101.4

105.8

107.7

5

111.4

5.8

113.1

101.5

104.1

110.9

6

112.3

6.2

113.9

101.8

100.2

105.6

7

113.3

6.7

114.8

102.1

95.8

99.3

8

114.0

7.0

115.5

102.4

94.4

102.5

9

114.7

7.1

115.7

102.1

101.5

111.8

10

115.4

7.2

116.3

102.2

108.3

116.3

11

116.2

7.4

117.0

102.4

106.0

112.4

12

116.6

7.2

118.2

103.0

98.9

103.4

2008 1

116.3

6.3

119.3

103.6

95.2

103.0

2

115.6

5.0

119.6

103.3

95.6

94.8

3

115.2

3.9

120.1

103.3

101.1

102.1

4

115.1

3.2

120.0

102.8

101.7

98.1

5

115.1

2.6

120.3

102.6

98.1

104.7

6

114.6

1.5

120.1

102.0

79.1

95.3

7

114.0

0.5

120.3

101.8

80.8

83.2

8

113.8

-0.1

120.6

101.6

83.1

80.8

9

113.6

-0.7

120.9

101.5

76.8

98.3

10

112.7

-1.8

120.8

101.0

64.6

84.9

11

111.1

-3.4

119.3

99.2

53.7

63.7

12

110.4

-4.2

116.6

96.6

52.4

55.0

2009 1

110.8

-3.9

114.5

94.4

58.1

52.0

2

112.2

-2.6

114.6

94.2

62.4

66.0

3

113.5

-1.4

116.1

94.9

89.0

76.1

4

115.4

0.4

117.9

96.1

93.7

86.7

5

117.6

2.7

119.0

96.5

100.9

103.8

6

120.3

5.5

121.0

97.8

96.6

100.2

7

122.1

7.6

122.3

98.4

98.5

98.7

8

123.2

8.8

123.2

98.7

96.0

99.8

9

123.9

9.6

123.9

98.9

110.5

117.0

10

124.7

10.3

124.5

98.9

107.5

116.5

11

126.1

11.3

125.2

99.1

103.8

109.0

12

127.0

11.6

125.9

99.1

104.8

105.9

2010 1

127.4

11.3

127.0

99.6

99.2

103.1

2

-

-

-

-

98.7

102.3

3

-

-

-

-

-

116.2

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

62

March 2010

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

Current
balance

Period

Goods
trade
balance

Exports

Imports

Services
trade
balance

Income
trade
balance

Current
transfers

2008

-5,776.3

5,669.1

422,007.3

435,274.7

-16,671.5

5,900.0

-673.9

2009 P

42,667.6

56,127.6

363,533.6

323,084.5

-17,202.7

4,553.6

-810.9

-4,866.4

-1,375.4

99,444.5

106,052.9

-4,936.9

1,979.7

-533.8

2008

2009P

I
II

-411.5

5,526.4

114,492.0

114,792.8

-4,460.5

-521.1

-956.3

III

-8,329.7

-3,230.5

115,000.1

122,901.0

-5,837.8

1,503.3

-764.7

IV

7,831.3

4,748.6

93,070.6

91,528.0

-1,436.3

2,938.1

1,580.9

I

8,618.2

8,308.8

74,421.4

71,417.5

-1,926.2

922.3

1,313.3

II

13,097.4

17,576.0

90,360.4

73,970.2

-4,167.7

292.7

-603.6

III

10,395.5

14,702.5

94,780.5

84,845.1

-5,334.5

1,690.7

-663.2

IV

10,556.5

15,540.3

103,971.3

92,851.8

-5,774.3

1,647.9

-857.4

1

-2,343.6

-935.1

32,274.6

36,318.0

-1,957.3

840.3

-291.5

2

-2,372.0

-524.2

31,178.2

32,624.3

-2,205.7

792.3

-434.4

3

-150.8

83.9

35,991.8

37,110.6

-773.9

347.1

192.1

4

-1,578.8

1,733.1

37,850.2

38,260.4

-1,072.9

-1,914.2

-324.8

5

-566.7

367.0

39,383.2

38,704.5

-1,215.3

563.5

-281.9

6

1,734.0

3,426.3

37,258.6

37,827.9

-2,172.3

829.6

-349.6

7

-2,433.9

487.2

40,961.2

42,952.5

-2,719.6

350.0

-551.5

8

-4,676.2

-2,926.8

36,610.6

40,420.4

-1,962.9

427.4

-213.9

9

-1,219.6

-790.9

37,428.3

39,528.1

-1,155.3

725.9

0.7

10

4,644.8

2,102.2

37,111.1

36,098.8

180.5

1,590.6

771.5

11

2,408.2

1,230.4

28,841.6

28,853.6

-70.0

757.4

490.4

12

778.3

1,416.0

27,117.9

26,575.6

-1,546.8

590.1

319.0

2009P 1

-1,612.3

-1,762.2

21,133.4

24,898.8

-710.5

596.4

264.0

2

3,585.8

3,100.1

25,397.1

22,598.1

-540.4

510.5

515.6

3

6,644.7

6,970.9

27,890.8

23,920.6

-675.3

-184.6

533.7

4

4,274.1

6,105.2

30,326.5

24,873.8

-1,117.3

-803.1

89.3

5

3,442.6

4,872.3

27,823.8

23,407.0

-1,524.4

389.6

-294.9

6

5,380.7

6,598.5

32,210.0

25,689.3

-1,526.0

706.2

-398.0

7

4,419.5

6,114.5

31,908.5

27,679.8

-1,898.0

511.1

-308.1

8

1,922.1

3,319.5

28,949.6

27,408.2

-1,803.4

617.7

-211.7

9

4,053.9

5,268.5

33,922.4

29,757.1

-1,633.1

561.9

-143.4

10

4,757.3

5,675.1

33,970.0

30,396.5

-1,312.6

559.4

-164.6

11

4,277.7

5,842.3

33,991.6

29,534.7

-1,662.7

390.0

-291.9

12

1,521.5

4,022.9

36,009.6

32,920.5

-2,799.0

698.5

-400.9

2010P 1

-447.5

1,548.6

31,006.9

31,468.1

-2,164.3

465.4

-297.2

2008

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

Economic Bulletin

63

10. Balance of payments (II) See graph 10-3
(million US$)

Period

Capital &
financial
account

Direct
investment

2008

-50,083.6

2009P

26,447.9
1,990.3

2008

I

Capital transfers
Other
& acquisition of
investment non-financial
assets

Changes in
reserve
assets

Errors and
omissions

Portfolio
investment

Financial
derivative

-15,632.6

-2,405.6

-14,769.9

-17,384.8

109.3

56,446.0

-586.1

-9,065.8

50,681.6

-5,538.1

-10,817.1

1,187.3

-69,061.1

-54.4

-5,781.5

-4,401.5

-1,249.5

13,533.2

-110.4

3,850.0

-973.9

ll

-3,160.7

-4,140.0

8,356.7

-1,240.7

-5,909.9

-226.8

5,717.7

-2,145.5

III

-6,286.4

-3,661.1

-9,421.3

-3,550.4

10,564.1

-217.7

12,883.1

1,733.0

IV

-42,626.8

-2,050.0

3,060.5

-8,729.3

-35,572.2

664.2

33,995.2

800.3

2009P I

-1,399.2

-2,045.4

3,532.3

-4,893.6

1,282.5

725.0

-9,017.4

1,798.4

II

8,682.0

-172.1

16,740.2

-614.9

-7,566.0

294.8

-19,541.8

-2,237.6

III

14,399.1

-2,137.6

19,914.7

-1,296.5

-2,258.0

176.5

-23,886.9

-907.7

IV

4,766.0

-4,710.7

10,494.4

1,266.9

-2,275.6

-9.0

-16,615.0

1,292.5

2008 1

1,171.9

-3,002.7

-949.8

-130.4

5,313.5

-58.7

1,436.1

-264.4

2

202.3

-90.9

-3,144.5

-298.1

3,750.7

-14.9

1,703.1

466.6

3

616.1

-2,687.9

-307.2

-821.0

4,469.0

-36.8

710.8

-1,176.1

4

-835.4

-2,561.0

4,093.1

-560.3

-1,720.5

-86.7

2,411.3

2.9

5

-113.8

-683.4

9,168.1

-627.6

-7,921.8

-49.1

2,264.6

-1,584.1

6

-2,211.5

-895.6

-4,904.5

-52.8

3,732.4

-91.0

1,041.8

-564.3

7

-6,014.3

-1,465.4

-7,025.3

-551.2

3,204.5

-176.9

9,171.4

-723.2

8

5,113.2

-1,428.7

-343.4

-69.3

7,062.4

-107.8

-1,215.2

778.2

9

-5,385.3

-767.0

-2,052.6

-2,929.9

297.2

67.0

4,926.9

1,678.0

10

-23,462.3

-978.9

5,004.0

-3,888.3

-23,952.6

353.5

19,988.1

-1,170.6

11

-13,488.5

-615.2

-2,524.0

-1,347.1

-9,215.7

213.5

10,904.2

176.1

12

-5,676.0

-455.9

580.5

-3,493.9

-2,403.9

97.2

3,102.9

1,794.8

2009P 1

4,655.2

-538.7

5,678.8

-248.5

-379.9

143.5

-4,488.6

1,445.7

2

-3,216.5

-785.8

161.4

-2,312.2

-609.6

338.7

-1,260.0

890.7

3

-2,837.9

-720.9

-2,307.9

-2,323.9

2,272.0

242.8

-3,268.8

-538.0

4

2,193.3

112.4

7,133.0

-679.8

-4,532.5

160.2

-5,444.1

-1,023.3

5

6,707.8

-574.5

4,263.5

1,341.1

1,586.6

91.1

-10,248.6

98.2

6

-219.1

290.0

5,343.7

-1,276.2

-4,620.1

43.5

-3,849.1

-1,312.5

7

2,200.5

-1,323.9

7,940.1

-272.7

-4,379.0

236.0

-5,573.6

-1,046.4

8

5,296.9

-276.1

4,063.5

-721.0

2,177.0

53.5

-7,095.2

-123.8

9

6,901.7

-537.6

7,911.1

-302.8

-56.0

-113.0

-11,218.1

262.5

10

1,582.9

-509.0

6,130.5

-572.9

-3,477.9

12.2

-7,966.2

1,626.0

11

1,544.2

-2,835.0

3,389.4

848.7

193.9

-52.8

-5,637.4

-184.5

12

1,638.9

-1,366.7

974.5

991.1

1,008.4

31.6

-3,011.4

-149.0

2010P 1

5,074.6

-1,679.9

104.6

319.8

6,400.1

-70.0

-5,250.9

623.8

P: Preliminary
Source: The Bank of Korea

64

March 2010

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

2008
2009

109.7
112.8

109.9
113.6

109.6
112.2

108.6
112.5

111.1
110.9

112.5
111.9

109.5
109.2

143.7
137.7

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

2010 1
2

114.2
114.6

115.6
116.1

113.3
113.6

113.4
113.6
Y-o-Y change (%)

112.7
113.0

113.9
114.5

103.5
104.7

136.9
137.6

2008
2009

4.7
2.8

6.2
3.4

3.7
2.4

4.2
3.6

8.6
-0.2

10.8
-0.5

21.8
-0.2

36.2
-4.1

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

2010 1
2

3.1
2.7

4.7
3.6

2.0
2.2

2.1
1.9

2.8
2.4

3.2
2.7

-6.9
-10.2

-0.9
-4.1

Source: The Bank of Korea

Economic Bulletin

65

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
2008
2009

24,347
24,394

23,577
23,506

3,963
3,836

17,906
17,998

3.2
3.6

16,206
16,454

9,007
9,390

5,079
5,101

2,121
1,963

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
4,860

2010 1
2

24,082
24,035

22,865
22,867

3,924
3,886

17,796
5.0
17,762
4.9
Y-o-Y change (%)

16,297
16,282

9,712
9,786

4,860
4,838

1,725
1,657

2008
2009

0.5
0.2

0.6
-0.3

-1.3
-3.2

1.3
0.5

-

1.5
1.5

4.5
4.3

-1.8
0.4

-2.6
-7.4

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

2010 1
2

1.6
1.6

0.0
0.5

0.8
1.2

0.8
1.3

-

1.5
2.1

6.7
6.4

-2.4
-0.5

-12.4
-12.6

Source: Statistics Korea

66

March 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)

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

2010 1
2

2.0
2.0

2.9
2.9

5.4
5.3

4.3
4.2

4.8
4.8

1,602.43
1,594.58

Source: The Bank of Korea

Economic Bulletin

67

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

Period

(billion won)

Reserve money

M1

M2

Lf

2008
2009

52,272.8
61,739.6

307,273.6
357,344.1

1,367,713.4
1,508,550.4

1,794,841.2
1,937,336.0

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
12

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
62,633.2

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
376,977.3

1,440,275.8
1,457,931.3
1,470,443.1
1,482,009.7
1,491,542.7
1,501,898.3
1,512,822.5
1,524,879.7
1,535,279.8
1,551,319.5
1,564,175.8
1,570,027.1

1,868,843.3
1,879,102.7
1,889,071.5
1,897,923.7
1,913,084.5
1,925,418.1
1,940,223.0
1,956,130.6
1,972,408.5
1,990,372.5
2,000,503.6
2,014,950.4

2010 1

65,054.7

381,218.2

1,574,215.8

2,019,563.5

14.3
10.3

11.9
7.9

2008
2009

7.7
18.1

Y-o-Y change (%)
-1.8
16.3

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
12

27.4
20.0
32.5
21.1
19.0
16.1
17.4
16.5
11.9
20.2
12.7
5.6

8.3
9.8
14.3
17.4
17.0
18.5
18.5
18.5
19.5
19.6
17.3
16.4

12.0
11.4
11.1
10.6
9.9
9.6
9.7
10.0
10.0
10.5
9.7
9.3

9.2
8.8
8.4
7.7
7.3
7.0
7.7
8.0
7.7
7.8
7.6
8.1

2010 1

1.6

15.0

9.3

8.1

P: Preliminary
Source: The Bank of Korea

68

March 2010

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

/US$

/100

/Euro

Period
End-period

Average

End-period

Average

End-period

Average

2008
2009

1,257.5
1,167.6

1,102.6
1,276.4

1,393.9
1,262.8

1,076.6
1,363.1

1,776.2
1,674.3

1,606.8
1,774.4

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

2010 1
2

1,156.5
1,158.4

1,138.8
1,157.1

1,287.0
1,299.3

1,248.3
1,281.7

1,614.6
1,569.2

1,627.5
1,584.5

2008
2009

34.0
-7.1

18.7
15.8

67.3
-9.4

36.3
26.6

28.6
-5.7

26.2
10.4

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

2010 1
2

-15.5
-23.6

-15.4
-19.1

-15.4
-15.7

-16.1
-17.1

-8.7
-18.7

-9.3
-13.4

Y-o-Y change (%)

Source: The Bank of Korea

Economic Bulletin

69

Editor-in-Chief
Park, Cheol-Kyu (MOSF)
Editorial Board
Kim, Young-Min (MOSF)
Shim, Jae-Hak (KDI)
Lee, In-Sook (KDI)
Coordinators
Kim, Dae-Hyun (MOSF)
Cho, Hyun-Joo (KDI)
Editors
Lim, Keun-Hyuk (MOSF)
Kim, Sun-Young (MOSF)
Kang, Ji-Eun (KDI)

Useful Internet Websites
Economy-related Websites Recommended

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

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