Vol. 32 | No.

5

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
The 2011 guidelines on budgeting

42

Economic News Briefing

46

Statistical Appendices

51

The Green Book
Current Economic Trends

Overview
The Korean economy saw the job market gradually recover, along with faster-than-expected
growth in the first quarter led by domestic demand and exports.
Mining and manufacturing production in March rose 1.6 percent month-on-month and 22.1
percent year-on-year, thanks to robust exports and domestic demand. Service output, while
rising 5.2 percent year-on-year, fell 0.2 percent month-on-month, affected by sluggish real
estate & renting, and entertainment, cultural & sports services.
Consumer goods sales dropped 1.3 percent month-on-month, although it increased 9.7
percent year-on-year, as low temperatures, frequent rainfalls and yellow dust occurrences
negatively affected the sales.
In March facilities investment, led by machinery investment, greatly improved by 3.7 percent
month-on-month and 33.0 percent year-on-year. Construction completed, despite poor
performance in building construction, increased 0.4 percent month-on-month and 4.0
percent year-on-year, thanks to active civil engineering works.
The total number of workers hired in March gained 267,000 year-on-year, led by the
manufacturing and service sectors. The employment rate (seasonally adjusted) posted 58.5
percent, adding 0.2 percentage points month-on-month, while the unemployment rate
(seasonally adjusted) landed at 3.8 percent, shedding 0.6 percentage points.
Exports jumped 31.5 percent year-on-year in April, helped by the recovering global economy.
Imports soared 42.6 percent year-on-year on the back of rising raw material prices.
The consumer price increased 2.6 percent year-on-year in April, as stable prices of
manufactured goods and low service fees offset rising prices of oil and agricultural products.
In April, the financial market saw stock prices rise and foreign exchange rates fall, supported
by foreign net buying of domestic stocks, as Moody’s upgraded the country’s sovereign
credit rating to A1 from A2 and rising expectations of global economic recovery continued.
To sum up, although the Korean economy shows clear signs of recovery in line with the
steadily improving global economy, external uncertainties still exists from Southern
European countries’ fiscal difficulties, China’s liquidity tightening, and rising prices of raw
materials and oil.
The Korean government will hold on to current policies to secure a private sector-led
recovery, while renewing its efforts to create jobs and support the working class. On the
other hand, the government will check more closely any possible risks from inside and
outside, and steadily work towards improving Korea’s economic structure, focusing on
corporate and financial sector restructuring and a healthier fiscal balance.
Economic Bulletin

3

1. Global economy
The global economy continued to recover as the US and developing countries including
China maintained a positive growth in the first quarter of 2010, following the fourth quarter
of 2009. On April 21, the IMF upgraded the forecast for the global economic growth this year
to 4.2 percent from 3.9 percent.
IMF’s 2010 GDP forecasts (%, as of Apr 2010)
3.1 (U.S), 1.9 (Japan), 1.0 (EU), 10.0 (China), 8.8 (India), 5.5 (Brazil)

US

US real GDP grew 3.2 percent (annualized q-o-q, advanced) in the first quarter of 2010, led
by the private sector such as personal consumption and corporate investment.
Personal consumption expenditures accelerated the recovery, contributing 2.6 percentage
points to the total growth, along with corporate fixed investment which contributed 0.4
percentage points, while housing investment was sluggish, posting negative contribution of
0.3 percentage points. Industrial production grew month-on-month for a ninth consecutive
month in March, while retail sales rose to the highest level in four months. US home sales
substantially improved as both new and existing home sales increased month-on-month by
26.9 percent and 6.8 percent, respectively, due to high demand before the expiration of the
2010 Home Buyer Tax Credits on April 30.
The Federal Reserve announced in the Federal Open Market Committee (FOMC) on April 28
that the Fed would maintain the target range for the federal funds rate at zero to 0.25
percent for an extended period.
(Percentage change from previous period)
2008

2009

2010

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Feb

Mar

0.4

-2.4

-6.4

-0.7

2.2

5.6

3.2

-

-

-0.2

-0.6

0.6

-0.9

2.8

1.6

3.6

-

-

1.6

-17.8

-39.0

-9.6

-5.9

5.3

4.1

-

-

-22.9

-20.5

-38.2

-23.3

18.9

3.8

-10.9

-

-

Industrial production

-1.8

-9.7

-5.2

-2.7

1.6

1.7

1.8

0.3

0.1

Retail sales

-0.8

-6.3

-1.6

-0.1

1.8

1.8

1.8

0.4

1.6

New home sales

-37.4

-22.7

-13.5

9.9

9.2

-8.5

-3.8

-4.1

26.9

New non-farm payroll employment
(thousand)2

-302

-395

-753

-477

-261

-90

54

-14

162

3.8

-0.3

-0.2

-1.0

-1.6

1.5

2.4

2.1

2.3

Real GDP

1

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

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

4

May 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

As the Chinese economy posted year-on-year growth of 11.9 percent in the first quarter of 2010,
backed by strong domestic demand and brisk exports, concerns mounted about over-heating and
asset bubbles. On May 2, the People’s Bank of China raised the deposit reserve requirement ratio
for banks by 0.5 percentage points, the third increase this year, to cool the economy.
Housing price (%, y-o-y)
2.0 (Aug 2009)

2.8 (Sep)

3.9 (Oct)

5.7 (Nov)

7.8 (Dec)

9.5 (Jan 2010)

10.7 (Feb)

11.7 (Mar)

(Percentage change from same period in previous year)
2008

2009

2010

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Feb 1

Mar

9.0

8.7

6.2

7.9

9.1

10.7

11.9

-

-

Fixed asset investment (accumulated)

26.1

30.5

28.6

33.6

33.3

30.5

25.6

26.6

25.6

Retail sales

21.6

15.5

14.9

15.0

15.4

16.9

17.9

17.9

18.0

Industrial production

12.9

11.0

5.1

9.2

12.4

18.0

19.6

20.7

18.1

Exports

17.2

-15.9

-19.7

-23.5

-20.7

0.2

28.7

45.7

24.2

Consumer prices

5.9

-0.7

-0.6

-1.5

-1.3

0.7

2.2

2.7

2.4

Producer prices

6.9

-5.4

-4.6

-7.2

-7.7

-2.1

5.2

5.4

5.9

Real GDP

Source: China National Bureau of Statistics
1. January-February average for fixed asset investment, retail sales and industrial production

Japan

Japan’s economy saw exports maintaining upward momentum and domestic consumption
expanding, while consumer prices continued to decline year-on-year. On April 30, the Bank
of Japan kept the benchmark interest rate at 0.1 percent and projected that deflation would
end this year.
(Percentage change from previous period)
2008
Annual

2009
Annual

2010

Q1

Q2

Q3

Q4

Q1

Feb

Mar

Real GDP

-0.7

-5.2

-3.6

1.5

-0.1

0.9

-

-

-

Industrial and mining production

-3.4

-21.8

-20.1

6.6

5.3

5.9

6.7

-0.6

0.3

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

0.3

-2.2

-3.9

-0.9

-3.4

-0.7

3.7

4.2

4.7

-3.5

-33.1

-46.9

-38.5

-34.4

-8.0

43.3

45.3

43.5

1.4

-1.4

-0.1

-1.0

-2.2

-2.0

-1.2

-1.1

-1.1

Source: Japan's Statistics Bureau and Statistics Centre

Eurozone

Concerns remained about the eurozone economy, as Standard & Poor’s downgraded the
credit ratings for Greece and Portugal on April 27 amid ongoing employment contraction
evidenced by March unemployment rate of 10.0 percent. The EU and IMF agreed to offer a
110 billion-euro (US$146 billion) bailout to Greece on May 2, of which 80 billion euros to
come from the EU and 30 billion euros from the IMF.
(Percentage change from previous period)
2008

2009

2010

Annual

Annual

Q1

Q2

Q3

Q4

Jan

Feb

Mar

0.8

-4.0

-2.5

-0.1

0.4

0.1

-

-

-

Industrial production

-1.8

-14.8

-7.6

-2.7

0.9

2.0

1.7

0.7

-

Retail sales

-0.2

-2.2

-0.8

-0.2

-0.2

0.0

-0.3

-0.6

-

Exports (y-o-y, %)

3.7

-18.1

-21.1

-23.2

-19.3

-8.3

4.6

-

-

Consumer prices (y-o-y, %)

3.3

0.3

1.0

0.2

-0.4

0.4

1.0

0.9

1.5

Real GDP

Source: Eurostat

6

May 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 GDP) increased 0.6 percent quarter-on-quarter and 6.2
percent year-on-year in the first quarter of 2010.
(Percentage change from same period in previous year)
2007

Private consumption2
(Seasonally adjusted)

3

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

2008

20091

20101

Annual

Annual

Q4

Annual

Q1

5.1

1.3

-3.6

0.2

-4.4

-1.0

0.7

5.8

6.2

-

-

-4.5

-

0.3

3.3

1.7

0.4

0.6

Q2

1

Q3

1

1

Q4

1

Q11

3. Percentage change from previous period

Consumer goods sales was down by 1.3 percent month-on-month in March due to weak
sales of durable, non-durable, and semi-durable goods, while rising 9.7 percent year-onyear.
On a month-on-month basis, durable goods sales contracted 5.0 percent, led by a drop in
automobile sales of 7.5 percent, while the sales of non-durable goods, such as vehicle fuels,
and semi-durable goods fell 0.9 percent and 1.5 percent, respectively.
On a year-on-year basis, durable goods sales increased substantially thanks to a 37.7
percent jump in automobile sales, along with non-durable and semi-durable goods sales
which rose 3.2 percent and 1.0 percent, respectively.
(Percentage change from same period in previous year)
2008

2009

2010 1

Annual

Annual

Q1

Q2

Q3

Q4

Q11

Jan

Feb1

Mar1

Consumer goods sales

1.1

2.6

-4.7

1.5

2.8

10.8

9.8

6.9

13.1

9.7

(Seasonally adjusted)

-

-

1.0

5.1

0.3

4.1

0.4

-1.3

2.0

-1.3

1.6

8.1

-11.9

5.7

7.9

33.9

29.0

40.1

21.0

27.1

- Durable goods

2

3

-3.5

21.8

-20.6

20.1

24.1

76.9

47.4

74.6

34.8

37.7

- Semi-durable goods4

-3.0

0.3

-1.5

-0.6

-0.7

3.4

2.7

4.6

2.6

1.0

- Non-durable goods

1.4

1.2

-1.4

0.5

1.9

4.1

3.2

-5.2

13.3

3.2

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 continued an upward march for the eleventh consecutive month
and those at specialized retailers for the seventh straight month, whereas sales at large
discounters substantially slowed the growth from the previous month.
(Percentage change from same period in previous year)
2008

- Department stores
- Large discounters
- Specialized retailers

2

2009

Annual

Annual

Q1

Q2

Q3

Q4

Q11

Jan

Feb1

Mar1

1.2

3.3

-0.8

0.4

4.2

9.1

9.0

6.0

16.3

5.6

2.5

-2.0

-4.4

-2.9

-3.4

3.2

5.9

-9.3

29.1

3.5

-1.8

2.9

-6.6

2.6

3.5

12.6

9.6

10.9

7.8

10.1

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

8

May 2010

2010 1

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 April is projected to register the similar level to those in the
previous month, given the estimates of advanced indicators, lower-than-average
temperatures, frequent rainfalls, and sinking of the Cheonan naval vessel.
Domestic credit card spending continued double digit growth, although slightly decelerating
from the previous month.
Sales at department stores widened an expansion from a month earlier backed by spring
bargain sales, whereas those at large discounters grew at a slower rate as lower-thanaverage temperatures raised fresh food prices.
Domestic sales of Korean automobiles accelerated an increase, while gasoline sales slowed
the growth due to the price hike.
Value of credit card use (y-o-y, %)
18.3 (Nov 2009)

20.0 (Dec)

20.2 (Jan 2010)

21.2 (Feb)

19.1 (Mar)

18.0 (Apr)

Department store sales (y-o-y, %)
6.4 (Nov 2009)

12.5 (Dec)

4.8 (Jan 2010)

15.2 (Feb)

4.1 (Mar)

8.5 (Apr)

Discount store sales (y-o-y, %)
-2.8 (Nov 2009)

3.9 (Dec)

-13.4 (Jan 2010)

30.8 (Feb)

1.1 (Mar)

0.2 (Apr)

Domestic sales of Korean automobiles (y-o-y, %)
83.6 (Nov 2009)

79.9 (Dec)

61.7 (Jan 2010)

21.3 (Feb)

29.6 (Mar)

30.5 (Apr)

Domestic sales of gasoline (y-o-y, %)
-3.0 (Nov 2009)

-4.5 (Dec)

-0.6 (Jan 2010)

8.3 (Feb)

6.9 (Mar)

5.4 (Apr)

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

Despite adjustment from temporary factors such as bad weather conditions, private
consumption is expected to maintain an upward trend, on the basis of the recent
improvement in employment, strong consumer sentiment, and stabilizing financial markets.
Number of workers hired (y-o-y, ten thousand)
-1.0 (Nov 2009)

-1.6 (Dec)

0.5 (Jan 2010)

12.5 (Feb)

26.7 (Mar)

KOSPI (month-end)
1,556 (Nov 2009)

1,683 (Dec)

1,602 (Jan 2010)

1,595 (Feb)

1,693 (Mar)

1,131 (Mar)

1,116 (Apr)

1,742 (Apr)

Won/dollar exchange rate (month-end)
1,168 (Dec 2009)

1,157 (Jan 2010)

1,158 (Feb)

Consumer Sentiment Index (CSI, base=100)
113 (Nov 2009)

10

May 2010

113 (Dec)

113 (Jan 2010)

111 (Feb)

110 (Mar)

110 (Apr)

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 first quarter of 2010 posted a quarteron-quarter increase of 1.5 percent, and a year-on-year gain of 28.8 percent.
(Percentage change from same period in previous year)
2008

Facility investment

2

(Seasonally adjusted)

3

- Machinery
- Transportation equipment
1. Preliminary
2. National accounts
Source: The Bank of Korea

20091

20101

Annual

Q1

Q2

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Q1

-1.0

2.8

2.0

5.3

-13.3

-9.1

-23.1

-17.3

-7.0

13.3

28.8

-

0.4

1.2

-1.0

-13.9

-

-10.5

9.0

10.8

5.3

1.5

-1.8

-0.9

0.9

8.0

-14.4

-13.0

-23.2

-21.5

-14.8

10.0

-

1.8

17.5

5.9

-3.8

-9.8

4.7

-22.6

-2.9

22.9

24.2

-

3. Percentage change from previous period

Facility investment in March rose 3.7 percent month-on-month or 33.3 percent year-on-year
despite sluggish transportation investment including automobiles, on the back of an
increase in machinery investments including those in semi-conductor equipment.
(Percentage change from same period in previous year)
2008

Facility investment
(Seasonally adjusted)

2

- Machinery
- Transportation equipment

2009

2010 1

Annual

Annual1

Q1

Q2

Q3

Q4

Q11

Jan

Feb1

Mar1

-3.0

-8.0

-17.9

-12.9

-10.0

10.2

24.0

19.1

18.2

33.3

-

-

-10.2

5.6

2.4

13.9

0.8

-10.8

8.2

3.7

-4.2

-12.9

-22.1

-18.9

-17.0

8.8

27.5

13.2

25.8

41.6

2.1

12.0

0.1

11.8

20.0

15.5

12.0

43.2

-5.3

5.9

-13.8

-11.8

-35.5

-17.7

3.4

20.0

10.6

11.2

-3.1

23.0

5.0

61.7

150.8

29.9

280.2

-27.2

-43.8

-27.1

-79.4

36.9

-15.5

-19.9

-44.8

-22.3

-16.0

35.2

22.9

17.8

30.9

21.4

- Machinery imports

6.4

-16.6

-27.9

-27.4

-15.9

7.2

47.8

34.2

33.5

74.8

Facility investment
adjustment pressure3

-1.7

-4.0

-19.1

-8.9

1.2

12.8

21.6

34.4

14.7

17.6

Domestic machinery orders
- Public
- Private

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 April is expected to stay on an upward track, given increasing
investment demand amid recovering internal and external conditions including brisk
exports. Leading indicators of machinery orders and imports accelerated an increase, while
corporate sentiment continued to rise.

2009

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

12

May 2010

2010

Dec

Jan

Feb

Mar

Apr

May

98

103

101

103

104

104

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 first quarter of 2010 rose 1.9
percent year-on-year or 0.9 percent quarter-on-quarter.
(Percentage change from same period in previous year)
2008

20091

Annual

Q1

Q2

Q3

Q4

Annual

Q1

Q2

-2.8

-2.5

-0.5

0.4

-7.7

4.4

2.8

5.1

-

-4.2

-0.4

0.7

-3.3

-

5.9

1.8

- Building construction

-4.6

-1.0

-0.8

0.2

-14.8

-1.8

-9.6

-2.4

- Civil engineering works

-0.2

-5.1

-0.2

0.8

1.6

13.3

26.1

15.7

Construction investment

2

(Seasonally adjusted)3

20101
Q3

Q4

Q1

4.4

5.0

1.9

-0.7

-0.1

0.9

1.2

2.5

-

9.7

7.5

-

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

Construction completed (constant value) in March rose 0.4 percent month-on-month or 4.0
percent year-on-year despite decreasing building construction, as civil engineering works in
the public sector increased.
(Percentage change from same period in previous year)
2008

2010 1

2009

Annual

Annual

Q1

Q2

Q3

Q4

Q11

Jan

Feb1

Mar1

-8.1

1.7

-5.4

4.5

1.8

5.0

-1.6

3.4

-3.0

4.0

-

-

9.4

3.5

-5.3

-1.4

5.1

7.8

-4.4

0.4

-10.3

-6.5

-15.5

-6.5

-5.1

0.7

-1.0

4.5

-3.8

-3.2

2.2

-5.7

13.4

25.9

15.4

11.3

5.3

2.0

-1.9

14.9

-7.6

3.0

-12.0

-1.1

7.6

11.6

-6.9

17.1

-6.7

-25.3

- Public

10.0

60.9

33.1

182.9

78.9

11.6

-17.1

-14.7

-23.5

-14.0

- Private

-14.3

-21.9

-37.3

-60.2

-14.3

17.3

0.9

49.4

4.7

-39.5

-20.1

-12.9

-31.6

-32.7

-4.6

13.3

36.5

33.3

42.3

37.8

Construction completed(constant value)
(Seasonally adjusted)

2

- Building construction
- Civil engineering works
Construction orders (current value)

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 April is expected to be less active compared with the previous
month, as the leading indicator of construction orders deepened a drop and building permit
area rose at a slower pace.

2009

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

14

May 2010

2010

Dec

Jan

Feb

Mar

Apr

83.6

74.8

91.4

88.9

85.5

4-1

Construction investment
Source: The Bank of Korea (national accounts)
30
20
10
0
-10
-20
-30
-40

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 April rose 31.5 percent year-on-year to US$39.88 billion.
Although exports slightly decelerated a rise from the previous month’s 34.3 percent due to a
high base effect, a rise in average daily exports from US$1.56 billion to US$1.66 billion
showed brisk exports continued.
By export category, semiconductors, oil products, and automobiles increased greatly, while
wireless communication devices and vessels decreased year-on-year. By regional category,
exports to Asia including China and ASEAN rose, while exports to Central and South America
rebound strongly as negative effects from the Chilean earthquake faded.
(US$ billion)
2009

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

2010

Annual

Q1

Q2

Q3

Q4

Apr

Q1

Feb

Mar

Apr

363.53

74.42

90.36

94.78

103.97

30.33

101.36

33.14

37.45

39.88

-13.9

-25.2

-21.1

-17.6

11.7

-19.9

36.2

30.5

34.3

31.5

1.30

1.10

1.30

1.32

1.49

1.26

1.51

1.62

1.56

1.66

323.09

71.42

73.97

84.85

92.85

24.87

98.08

31.06

35.63

35.47

-25.8

-32.7

-35.6

-31.0

1.4

-35.0

37.3

37.5

49.0

42.6

1.16

1.06

1.06

1.18

1.33

1.04

1.46

1.52

1.48

1.48

Source: Korea Customs Service

Imports in April jumped 42.6 percent year-on-year to US$35.47 billion. Nonferrous metals
(up 59.6%), crude oil (up 57.9%) and steel (up 50.3%) posted a significant increase, due to
the recovering economy and price rise in raw materials. Average daily imports stayed at the
same level as the previous month’s, recording US$1.48 billion. Imports of raw materials
accelerated the increase, while those of capital goods and consumer goods slightly slowed
the rise.
Raw materials (y-o-y, %)
-39.3 (Q3, 2009)

-2.3 (Q4); 42.7 (Feb)

51.5 (Mar)

47.2 (Apr)

Capital goods (y-o-y, %)
-13.7 (Q3, 2009)

8.2 (Q4); 30.0 (Feb)

49.0 (Mar)

29.6 (Apr)

32.8 (Mar)

25.8 (Apr)

Consumer goods (y-o-y, %)
-20.9 (Q3, 2009)

4.6 (Q4); 30.3 (Feb)

The trade balance in April posted a surplus of US$4.41 billion, the highest since November
2009 which saw the US$4.46 billion surplus, on the back of strong exports.
(US$ billion)
2009

Trade Balance
Source: Korea Customs Service

16

May 2010

2010

Annual

Q1

Q2

Q3

Q4

Apr

Q1

Feb

Mar

Apr

40.45

3.0

16.39

9.94

11.12

5.45

3.27

2.08

1.82

4.41

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 increased 1.6 percent month-on-month in March,
posting a month-on-month increase for five consecutive months, while rising 22.1 percent
year-on-year.
By business category, semiconductors and parts (up 6.7%), and machinery devices (up
5.7%) grew month-on-month, while other transportation equipment (down 15.8%) and
refined petroleum products (down 10.6%) fell.
Shipments, led by domestic consumption and exports, posted a 19.1 percent increase yearon-year, while inventory registered a second consecutive month’s increase, up 6.6 percent.
By business category, the shipments of semiconductors and parts (up 42.4%), and
automobiles (up 44.6%) increased year-on-year, while those of other transportation
equipment (down 16.5%) declined. The inventories of semiconductors and parts (up
41.4%), and automobiles (up 19.7%) rose year-on-year, while those of apparels and fur
(down 32.1%), and paper products (down 34.3%) fell.
The average operation ratio of the manufacturing sector rose 1.8 percentage points from the
previous month, landing at 82.2 percent, the highest since February 2004.
(Percentage change from same period in previous year)
2008

2009

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

Mining and
manufacturing
activity2

Annual

Q3

2010
Q1

Q4

1

Jan

Feb1

Mar1

-

-

6.9

1.3

5.0

0.0

3.3

1.6

(y-o-y)

3.4

-0.8

4.3

16.2

25.6

37.0

18.8

22.1

- Manufacturing

3.4

-0.9

4.4

16.8

26.6

38.9

19.5

23.2

3.4

7.8

13.2

46.3

45.9

63.4

38.6

38.9

9.1

-6.8

15.8

14.7

50.9

83.0

32.1

45.8

2.6

-1.7

2.1

12.8

21.6

32.1

14.4

19.1

-0.4

-1.8

3.4

12.3

20.9

30.8

12.8

19.7

7.2

-1.7

0.4

13.3

22.5

34.1

16.6

18.2

ICT

3

Automobiles
Shipment
- Domestic demand
- Exports
Inventory

4

Manufacturing Average operation ratio (%)
activity
Production capacity

7.1

-8.0

-14.2

-8.0

6.6

-3.6

4.2

6.6

77.5

74.6

78.8

78.4

80.5

78.9

80.4

82.2

5.1

3.1

3.2

4.0

5.0

4.5

4.8

5.6

1. Preliminary
2. Including mining, manufacturing, electricity and gas industry
3. Information and Communication Technology
4. End-period
Source: Statistics Korea

Mining and manufacturing production in April is expected to be slightly slow compared with
the previous month, considering advanced indicators of exports and industrial power sales
which showed an increase at a slower rate.

2009

2010

Dec

Jan

Feb

Mar

Apr

Exports (y-o-y, %)

32.8

45.8

30.3

34.3

31.5

Industrial power sales (y-o-y, %)

18.6

23.7

15.4

12.5

9.71

1. Estimate

18

May 2010

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 March decreased 0.2 percent from the previous month due to
sluggishness in real estate & renting and entertainment, cultural & sports services. Service
output, however, increased 5.2 percent from a year earlier.
By business category, real estate & renting (down 8.6%), entertainment, cultural & sports
services (down 4.9%) and professional, scientific & technical services (down 4.3%) went
down from a month earlier.
On the other hand, educational services (up 7.0%) and financial & insurance services (up
2.2%) expanded month-on-month.
(Percentage change from same period in previous year)
Weight

2008
Annual

2009
Annual

Q1

2010 1

Q2

Q3

Q4

Q11

Jan

Feb1

Mar1

Service activity index

100

3.6

2.0

-0.3

2.4

1.9

3.7

5.6

4.4

7.3

5.2

- Wholesale & retail

22.0

1.3

-0.4

-4.8

-2.2

0.3

5.4

7.4

5.6

9.1

7.7

- Transportation services

9.0

4.3

-6.6

-12.7

-10.0

-4.8

1.4

14.1

12.1

14.1

16.2

- Hotels & restaurants

7.8

0.7

-1.5

-2.6

-0.6

-2.5

-0.2

1.5

3.4

-0.6

1.7

- Information & communication services

8.4

3.3

0.7

-1.4

1.6

1.4

1.8

1.1

-0.3

2.1

1.7

15.3

9.7

8.0

6.9

10.3

9.0

5.7

5.9

9.0

3.7

5.0

- Real estate & renting

6.3

-2.1

5.3

-4.2

-2.2

6.7

21.3

10.5

8.2

10.9

12.6

- Professional, scientific & technical activities

4.8

2.0

1.0

-1.7

3.8

0.0

2.0

3.1

-1.8

6.8

4.0

- Financial & insurance services

- Business services

2.9

4.4

-3.0

-4.9

-6.2

-0.8

0.0

5.3

2.9

6.6

6.4

10.8

1.7

2.8

9.4

16.5

-3.7

-9.6

-0.9

-12.1

14.3

-3.8

- Healthcare & social welfare services

6.0

8.7

10.4

8.9

8.9

10.4

13.2

11.8

12.5

12.4

10.5

- Entertainment, cultural & sports services

2.9

2.2

-0.5

1.4

0.7

0.0

-3.8

-3.4

2.1

-6.5

-5.5

- Membership organizations

3.8

0.1

-2.4

-3.8

-4.8

-1.4

2.4

0.3

0.6

0.4

-0.2

- Sewerage & waste management

0.4

5.8

3.7

0.1

9.0

6.0

-0.2

7.2

7.0

7.6

6.8

- Educational services

1. Preliminary
Source: Statistics Korea

Service activity in April is expected to show a similar trend to the previous month, as travel
and leisure services contracted affected by worsened weather conditions and the sinking of
the naval ship Cheonan while conditions in the financial and labor markets improved.
Stock transactions (daily average, trillion won)
5.75 (Nov 2009)

6.57 (Dec)

9.36 (Jan 2010)

6.28 (Feb)

6.62 (Mar)

7.54 (Apr)

Initial claims for unemployment benefits (thousand)
70.2 (Nov 2009)

20

May 2010

93.7 (Dec)

139.7 (Jan 2010)

88.1 (Feb)

94.8 (Mar)

84.3 (Apr)

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)

Mar 2010 service industry by business

Source: Statistics Korea (service industry activity trend)

Economic Bulletin

21

8. Employment
The number of workers on payroll in March increased by 267,000 from a year earlier, while
the employment rate fell by 0.1 percentage point year-on-year to 57.8 percent. In seasonally
adjusted terms, the number of employed rose by 7,000 from the previous month and the
employment rate was up 0.2 percentage points month-on-month.
By industry, employment in manufacturing (up 110,000) and services (up 362,000) climbed
while that of construction (down 16,000) and agriculture, forestry & fishery (down 188,000)
declined. Hiring in manufacturing increased for three consecutive months helped by overall
increases in exports and manufacturing output of semiconductors and automobiles. The
service sector hired even more workers amid domestic demand recovery and elevated
consumption. Employment in the agriculture, forestry & fishery plunged due to lower
temperature and the high comparison base set a year earlier.
By status of workers, wage workers rose by 541,000 led by a surge of 752,000 in regular
workers, although the number of daily workers plunged by 247,000. Non-wage workers
including self-employed workers (down 135,000), however, plummeted by 274,000 from a
year earlier.
By gender, both male workers (up 145,000) and female workers (up 123,000) increased
significantly.

2008

2009

2010

Annual

Annual

Mar

Q1

Q2

Q3

Q4

Q1

Feb

Mar

23.58

23.51

23.38

22.90

23.74

23.75

23.63

23.03

22.87

23.38

Employment rate (%)

59.5

58.6

57.9

57.4

59.3

59.1

58.7

57.0

56.6

57.8

(seasonally adjusted)

59.5

58.6

58.5

58.8

58.6

58.7

58.5

58.3

58.3

58.5

Employment growth (y-o-y, thousand)

145

-72

-195

-146

-134

-1

-6

132

125

267

(Excluding agriculture, forestry & fishery)

182

-34

-217

-160

-109

24

110

296

268

455

- Manufacturing

-52

-126

-186

-163

-151

-143

-49

61

45

110

- Construction

-37

-91

-71

-43

-113

-103

-107

-61

-87

-16

- Services

263

186

41

47

155

269

264

295

310

362

- Agriculture, forestry & fishery

-37

-38

22

14

-25

-25

-116

-164

-143

-188

- Wage workers

236

247

82

73

175

356

385

371

329

541

Regular workers

386

383

276

318

313

386

515

651

593

752

Temporary workers

-93

22

-83

-136

-5

125

105

-37

-24

35

Daily workers

-57

-158

-112

-108

-133

-155

-235

-243

-239

-247

- Non-wage workers

-92

-319

-277

-220

-309

-357

-391

-239

-204

-274

-79

-259

-222

-197

-286

-276

-279

-106

-70

-135

117

116

145

Number of employed (million)

Self-employed workers
- Male

96

31

-46

-23

24

34

89

- Female

48

-103

-149

-124

-158

-34

-94

15

9

123

- 15 to 29

-119

-127

-199

-212

-99

-123

-77

-12

-16

-33

- 30 to 39

-26

-173

-197

-159

-213

-169

-149

-42

-37

-8

- 40 to 49

64

-24

-28

8

-27

-30

-46

-21

-39

32

- 50 to 59

207

198

199

193

156

211

230

251

255

264

18

54

31

23

49

109

37

-44

-39

12

- 60 or more
Source: Statistics Korea

22

May 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 unemployed in March climbed by 53,000 year-on-year to record 1,005,000
and the unemployment rate rose by 0.1 percentage point to 4.1 percent from a year earlier.
When seasonally adjusted, the number of jobless people fell 139,000 from the previous
month to 937,000 while the unemployment rate dropped 0.6 percentage points month-onmonth to 3.8 percent.
Although the unemployment rate is gradually falling, it surged temporarily in January as
those who applied but were not recruited for the government’s job creation project were
categorized as unemployed.
By gender, the number of female workers who became jobless (up 60,000) increased while
that of male workers who became unemployed (down 8,000) decreased in March.
By age, the jobless surged among those aged 60 or over (up 43,000).

2008

2009

2010

Annual

Annual

Mar

Q1

Q2

Q3

Q4

Q1

Feb

Mar

Number of unemployed (thousand)

769

889

952

908

943

886

817

1,130

1,169

1,005

Unemployment growth (y-o-y, thousand)

-14

119

142

107

176

134

60

222

244

53

- Male

-12

80

112

83

116

95

25

83

101

-8

- Female

-1

40

30

24

60

39

36

139

143

60

Unemployment rate (%)

3.2

3.6

4.0

3.8

3.8

3.6

3.3

4.7

4.9

4.1

(Seasonally adjusted)

3.2

3.6

3.7

3.5

3.9

3.7

3.5

4.3

4.4

3.8

- Youth aged 15 to 29

7.2

8.1

8.8

8.6

8.0

8.1

7.6

9.5

10.0

9.0

- Middle school graduate or under

2.2

2.5

2.9

2.9

2.6

2.2

2.3

5.1

4.9

3.3

- High school graduate

3.8

4.4

4.5

4.5

4.6

4.6

4.0

5.0

5.1

4.6

- College, univ. graduate or over

3.0

3.5

4.0

3.6

3.7

3.3

3.2

4.2

4.6

4.1

Source: Statistics Korea

The economically inactive population in March was up 198,000 from a year earlier to post
16,070,000. Meanwhile, the labor force participation rate was up 0.1 percentage point yearon-year to 60.3 percent. When seasonally adjusted, the economically inactive population
rose 100,000 month-on-month to 15,870,000 while the labor force participation rate fell 0.2
percentage points to 60.8 percent from a month earlier.
Workers quitting jobs due to childcare & housework (up 80,000) and old age (up 191,000)
surged while those who quit due to reasons such as rest, time-off, and leisure (down
140,000) significantly decreased.

2008

2009

2010

Annual

Annual

Mar

Q1

Q2

Q3

Q4

Q1

Feb

Mar

Economically inactive population (million) 15.25

15.70

15.88

16.09

15.35

15.53

15.83

16.25

16.38

16.07

Labor force participation rate (%)

61.5

60.6

60.2

59.7

61.7

61.3

60.7

59.8

59.5

60.3

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

297

447

525

514

445

374

456

166

151

198

- Engaged in family duties

123

188

218

209

173

119

250

119

86

80

- Retired

76

88

24

52

102

105

92

193

196

191

- Rest

31

123

213

162

112

94

123

-187

-189

-140

Source: Statistics Korea

24

May 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

Economically active population
Source: Statistics Korea (employment trend)

Economic Bulletin

25

9. Financial market
9.1 Stock market
The Korean stock market in April rallied on the back of eased concerns over fiscal woes in
Greece and expectations of an economic recovery.
KOSPI rose to 1,757.76 points on April 26, the highest thus far this year, as Moody’s has
upgraded Korea’s sovereign rating from A2 to A1 while electronic firms including Intel, Apple
and Samsung posted robust first quarter results.
Market participants have grown increasingly optimistic that Greece’s debt crisis could be
resolved, as the EU and the IMF were expected to jointly provide financial support to Greece
although S&P downgraded sovereign ratings of Greece, Portugal and Spain.
Despite external uncertainties due mainly to the US Securities and Exchange Commission
(SEC)’s fraud accusation against Goldman Sachs, the net-buying in the Korean stock market
amounted to 5.2 trillion won, a similar level to the previous month, as foreign investors
maintained their net buying position.
(End-period, point, trillion won)
KOSPI

Stock price index

KOSDAQ

Mar 2010

Apr 2010

Change1

Mar 2010

Apr 2010

Change1

1,692.9

1,741.6

+48.7 (+2.9%)

515.7

523.8

+8.0 (+1.6%)

903.9

931.5

+27.5 (+3.0%)

90.0

92.1

+2.0 (+2.3%)

Market capitalization
Average daily trade value

4.3

5.7

+1.4 (+32.6%)

2.3

1.9

-0.4 (-17.4%)

Foreign stock ownership

32.5

33.1

+0.6 (+1.8%)

7.6

7.5

-0.1 (-1.3%)

1. Change from the end of the previous month

9.2 Exchange rate
The won/dollar exchange rate as of end-April fell 22.9 won from 1,131.3 won at the end of
March to wrap up the month at 1,108.4 won.
The won remained strong on expectations that the future appreciation of the yuan would
also push up the value of the won. The won’s strength was also attributed to Korea Deposit
Insurance Corp. (KDIC)’s disposal of some stakes in Woori Financial Group via block trade.
The foreign exchange authorities’ verbal intervention on April 27, however, put the brakes
on the falling won/dollar exchange rate.
The won/yen exchange rate fell 35.4 won month-on-month to 1,178.2 won as of end-April as
the yen depreciated with eased concerns on sovereign debt woes in eurozone countries.
(End-period)
2006

2007

2008

2009

2010

Dec

Dec

Dec

Dec

Mar

Apr

Change1

Won/Dollar

929.8

936.1

1,259.5

1,164.5

1,131.3

1,108.4

2.1

Won/100Yen

783.4

828.6

1,396.8

1,264.5

1,213.6

1,178.2

3.0

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

May 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 April as eased monetary policies were expected to
continue while fiscal woes in the eurozone and Goldman Sachs charged with fraud by the US
government boosted demand for safer assets.
Despite robust GDP and industrial output figures, the yields continued to fall due to
mounting expectations that the interest rate hike would be delayed, as the government and
the Bank of Korea reconfirmed that they will maintain expansionary monetary policies.
(End-period, %)

Call rate (1 day)

2006

2007

2008

2009

2010

Dec

Dec

Dec

Dec

Feb

Mar

Apr

4.60

5.02

3.02

2.01

2.01

2.00

2.00

Change1
0

CD (91 days)

4.86

5.82

3.93

2.88

2.88

2.78

2.45

-33

Treasury bonds (3 yrs)

4.92

5.74

3.41

4.44

4.10

3.89

3.61

-28

Corporate bonds (3 yrs)

5.29

6.77

7.72

5.56

5.24

4.89

4.12

-77

Treasury bonds (5 yrs)

5.00

5.78

3.77

4.98

4.62

4.52

4.27

-25

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

9.4 Money supply & money market
The M2 (monthly average) in February expanded 8.9 percent from a year earlier excluding
cash management accounts (CMAs), which were included in M2 since July 2009. The yearon-year M2 growth edged up from the previous month’s 8.8 percent due to increases in the
government’s money supply and private credit including bank loans.
(Percentage change from same period in previous year, average)
2009

2008

2010

Annual

Q1

Q2

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Jan

Feb1

Jan1

M12

-1.8

-12.4

-0.1

2.1

5.0

16.3

10.8

17.6

18.9

17.8

15.1

15.9

381

M2

14.3

13.3

15.3

14.7

13.8

10.1

11.5

10.1

9.5

9.3

8.8

8.9

1,566

Lf 3

11.9

11.6

12.8

12.1

11.2

Upper7

8.8

7.3

7.5

7.4

Upper7

Lower8

2,0114

1. Balance at end January 2010, 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 January 2010, trillion won

In March, bank deposits fell considerably while asset management company (AMC) deposits
increased.
Bank deposits shifted to a plunge with slowed time deposits, sluggish instant access
accounts and a continuing fall in CDs and bank bonds. AMC deposits sustained an upward
trend with relatively attractive interest rates benefiting from lower deposit rates at banks.
(Monthly change, end-period, trillion won)
2008

2009

Annual

Mar

Bank deposits

104.3

AMC deposits

63.0

1. Balance at end March, trillion won

28

May 2010

2010

Annual

Mar

Jan

Feb

Mar

Mar1

-5.2

54.8

-4.4

15.7

16.9

-16.2

1,024

0.4

-27.7

-3.0

-5.1

9.7

6.1

342

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 surplus expanded in March to record US$1.69 billion from US$170
million a month earlier.
The goods account surplus rose to post US$4.36 billion from the previous month’s US$1.56
billion thanks to robust export growth of semiconductors and cars.
The service account deficit increased to US$2.10 billion from US$1.78 billion a month earlier
due to the won’s appreciation and increased demand for overseas travels amid an economic
recovery.
The income account turned to a deficit of US$260 million from a surplus of US$550 million a
month earlier due to a decrease in the interest account surplus as well as seasonal factors
including dividend payments by corporations whose fiscal year ends in December.
The current transfer account deficit expanded to US$310 million from the previous month’s
US$160 million as outward remittance increased amid the won’s appreciation.
(US$ billion)
2008

2009

2010

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Feb

Mar

Current account

-5.78

42.67

8.62

13.10

10.40

10.56

1.23

0.17

1.69

- Goods balance

5.67

56.13

8.31

17.58

14.70

15.54

7.29

1.56

4.36

- Service balance

-16.67

-17.20

-1.93

-4.17

-5.33

-5.77

-6.04

-1.78

-2.10

- Income balance

5.90

4.55

0.92

0.29

1.69

1.65

0.76

0.55

-0.26

- Current transfers

-0.67

-0.81

1.31

-0.60

-0.66

-0.86

-0.78

-0.16

-0.31

Source: The Bank of Korea

The capital and financial account in March posted a net inflow of US$1.12 billion.
Capital & financial account balance (US$ billion)
8.68 (Q2 2009)

14.40 (Q3)

4.77 (Q4)

5.84 (Q1 2010); 0.25 (Feb 2010)

1.12 (Mar)

The direct investment account narrowed the net outflow to register US$200 million from the
previous month’s deficit of US$760 million as locals’ overseas investment was down while
outbound foreign direct investment (FDI) shifted to a net inflow.
The portfolio investment account expanded the net inflow to record US$7.72 billion from
US$3.13 billion a month earlier due to a surge in foreign investment into the Korean bond
and stock markets amid a rapid recovery of the Korean economy.
The net inflow in the financial derivatives account slightly shrank to post US$210 million
from US$250 million in the previous month as profits from overseas financial derivative
transactions decreased.
The other investment account deficit soared to US$6.54 billion from the previous month’s
US$2.32 billion due to increased overseas deposit, and net redemption of overseas
borrowings as well as trade credits by domestic financial institutions.
The current account in April is likely to record a surplus of around US$ 1.5 billion in April as
the goods account surplus expanded despite higher dividend payments to foreigners.

30

May 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 April increased 2.6 percent year-on-year while posting 0.5 percent growth
from the previous month.
Core consumer prices, which exclude the prices of oil and agricultural products, rose by 1.5
percent year-on-year. Consumer prices for basic necessities, a barometer of perceived
consumer prices, were up 3.2 percent compared to the same month of the previous year.

Consumer price inflation
2009

2010

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

Month-on-Month (%)

0.3

0.0

-0.1

0.4

0.4

0.1

-0.3

0.2

0.4

0.4

0.4

0.3

0.5

Year-on-Year (%)

3.6

2.7

2.0

1.6

2.2

2.2

2.0

2.4

2.8

3.1

2.7

2.3

2.6

Core consumer prices (y-o-y)

4.2

3.9

3.5

3.2

3.1

2.7

2.6

2.5

2.2

2.1

1.9

1.5

1.5

(m-o-m)

0.2

0.2

0.1

0.2

0.1

0.1

0.1

0.2

0.1

0.1

0.2

0.1

0.2

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

3.0

1.8

0.5

0.4

1.3

1.7

1.5

2.3

3.3

3.8

3.4

2.9

3.2

Source: Statistics Korea

Prices of agricultural, livestock and fishery products as well as oil products showed strength,
while other industrial products and service charges remained stable. Price increases of fruits
and vegetables were relatively high due to bad weather conditions.
Prices of agricultural, livestock & fishery products in Apr (m-o-m, %)
Chinese cabbage (33.7), onion (62.2), radish (32.9), tomato (11.3), apple (7.9), pork (3.6), cucumber (-32.8),
pumpkin (-26.3)

Although higher international oil prices pushed up oil product prices, prices of other industrial
products stabilized with a mere 0.3 percent increase month-on-month due to the won’s
appreciation.
Prices of Dubai crude (US$/barrel)
73.2 (Oct 2009)

77.7 (Nov)

75.5 (Dec)

76.8 (Jan 2010)

73.6 (Feb)

77.3 (Mar)

83.6 (Apr)

Public utility charges edged up 0.1 percent from the previous month as most public utility
charges remained unchanged.
Personal service charges continued to stabilize, increasing at a slower pace compared to the
usual April level.
Price increases of personal service charges in Apr (m-o-m, %)
0.2 (2005)

0.2 (2006)

0.0 (2007)

0.3 (2008)

0.3 (2009)

0.1 (2010)

Consumer price inflation in major sectors

Month-on-Month (%)
Contribution (%p)
Year-on-Year (%)
Contribution (%p)
Source: Statistics Korea

32

May 2010

Total

Agricultural,
livestock & fishery
products

Industrial
products

Oil
products

Housing
rents

Public
utility

Personal
services

0.5

3.4

0.3

1.7

0.2

0.13

0.1

0.52

0.30

0.11

0.10

0.02

0.01

0.03

2.6

4.9

3.4

11.2

1.7

1.3

2.0

2.57

0.44

1.06

0.62

0.16

0.20

0.70

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
International oil prices in April rose month-on-month as healthy economic indicators and
upgraded world economic outlooks boosted optimism that demand would grow amid an
economic recovery.
IMF’s global growth forecast for 2010 (%)
3.1 (Oct 2009)

3.9 (Jan 2010)

4.1 (Apr)

The Institute for Supply Management (ISM)’s manufacturing index
59.6 (Mar 2010)

60.4 (Apr)
(US$/barrel, period average)

2007

2008

2009

2010

Annual

Annual

Annual

Oct

Nov

Dec

Jan

Feb

Mar

Apr

Dubai crude

68.4

94.3

61.9

73.2

77.7

75.5

76.8

73.6

77.3

83.6

Brent crude

72.8

97.5

61.7

72.8

76.7

74.5

76.4

73.9

79.0

84.8

WTI crude

72.3

99.9

61.9

75.8

78.1

74.5

78.3

76.5

81.3

84.5

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, both gasoline and diesel prices rose month-on-month as internaional
oil and oil product prices went up.
(Won/liter, period average)
2007

2008

Annual

Annual

Annual

Oct

2009
Nov

Dec

Jan

Feb

2010
Mar

Apr

Gasoline prices

1,526

1,692

1,601

1,627

1,655

1,646

1,661

1,664

1,691

1,725

Diesel prices

1,273

1,614

1,397

1,409

1,452

1,441

1,450

1,443

1,469

1,507

Source: Korea National Oil Corporation

Prices of overall non-ferrous metals in April climbed from a month earlier with the
expectations of an economic recovery. In particular, nickel prices soared as strikes in major
nickel mines dragged out and demand for stainless steel expanded.
International prices of grain including corn and raw sugar fell from the previous month as
robust grain productions in South America boosted the grain harvest outlook for this year.
Prices of non-ferrous metals and grain in Apr (m-o-m, %)
Corn (-3.0), wheat (-0.7), raw sugar (-16.0), soybean (2.5), bronze (3.9), aluminum (4.8), nickel (15.8), zinc (4.1), lead
(4.2), tin (6.3)

Reuters index*

(Period average)

2007

2008

2009

Annual

Annual

Annual

Oct

Nov

Dec

Jan

Feb

Mar

Apr

2,400

2,536

2,079

2,197

2,243

2,294

2,343

2,290

2,269

2,329

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

34

May 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 April, nationwide apartment sales prices increased at a slower pace of 0.2 percent from
0.3 percent a month earlier.
Apartment sales prices in the Seoul metropolitan area fell 0.2 percent, entering a negative
territory for the first time in four months. Apartment sales prices in Seoul shifted to a
decrease of 0.2 percent from the pervious month’s 0.0 percent, and the prices in Gyeonggi
province and Incheon edged down 0.3 percent and 0.2 percent, respectively.
Meanwhile, apartment sales prices in areas excluding the Seoul metropolitan area
continued to increase led by some metropolitan cities such as Busan (up 1.6%) and Daejeon
(up 0.8%). Apartment sales prices in 5 metropolitan cities climbed 0.8 percent and those in
other cities increased 0.5 percent.

Nationwide apartment sales prices

(Percentage change from previous period)

2006 2007 2008

2009

2010

Annual Annual Annual Annual Q1

Q2

Q3

Q4

Jan

Feb

Mar

Apr Apr51 Apr121 Apr191 Apr261

Nationwide

13.8

2.1

2.3

1.6 -1.2

0.4

1.5

0.9

0.1

0.4

0.3

0.2

0.0

0.0

0.0

0.0

Seoul

24.1

3.6

3.2

2.6 -1.3

1.0

2.6

0.3

0.1

0.3

0.0 -0.2

0.0

-0.1

-0.1

-0.1

Gangnam2

27.6

0.5

-1.9

3.9 -1.1

1.7

3.1

0.2

0.2

0.4

0.0 -0.1

0.0

-0.1

-0.1

-0.1

Gangbuk3

19.0

8.3

9.4

0.9 -1.7

0.2

2.0

0.4

0.0

0.1

0.0 -0.3

0.0

-0.1

-0.1

-0.1

Seoul metropolitan area

24.6

4.0

2.9

0.7 -1.8

0.5

1.8

0.2

0.0

0.1

0.0 -0.2

0.0

-0.1

-0.1

-0.1

2.1 -0.6

1.0

2.8 -0.7

0.3

1.3

1.9

0.4

0.8

0.7

0.2

0.2

0.1

0.2

5 metropolitan cities
1. Weekly trends

2. Upscale area of Southern Seoul

0.8

3. Northern Seoul Source: Kookmin Bank

The increase of rental prices in April decelerated to 0.7 percent as the spring moving season
approached to an end. Seoul slowed the growth from 0.7 percent to 0.5 percent with notable
decrease in Gangbuk from 0.9 percent to 0.5 percent. Nevertheless, Seoul maintained a
strong upward trend with a high demand for rental as wait-and-see mood dominated the
home market.

Nationwide apartment rental prices

(Percentage change from previous period)

2006 2007 2008

2009

Annual Annual Annual Annual Q1

Nationwide

2010

Q2

Q3

Q4

Jan

Feb

Mar

Apr

Apr51 Apr121 Apr191 Apr261

7.6

1.9

0.8

4.5 -1.3

0.9

2.8

2.0

0.4

0.9

0.8

0.7

0.1

0.2

0.1

0.2

Seoul

11.5

2.2

-1.8

8.1 -0.8

1.8

4.7

2.3

0.6

1.0

0.7

0.5

0.1

0.1

0.1

0.1

Gangnam2

11.3

0.5

-3.6 10.4 -0.1

2.4

5.1

2.7

0.9

1.2

0.5

0.5

0.1

0.1

0.0

0.1

Gangbuk

11.8

4.6

0.5

5.4 -1.6

1.0

4.2

1.9

0.1

0.7

0.9

0.5

0.1

0.0

0.1

0.0

11.7

2.1

-0.4

5.6 -1.8

1.4

4.1

1.8

0.3

0.7

0.7

0.6

0.1

0.1

0.1

0.1

3.0

1.1

1.6

3.9 -0.9

0.4

1.9

2.6

0.7

1.4

1.0

1.0

0.2

0.2

0.2

0.2

3

Seoul metropolitan area
5 metropolitan cities
1. Weekly trends

2. Upscale area of Southern Seoul

3. Northern Seoul Source: Kookmin Bank

Apartment sales transactions in March increased 19.6 percent from 66,500 a month earlier to
post 79,549. The transactions were up 1.2 percent from a year earlier and 1.1 percent
compared with the monthly average recorded in the same month for the past 3 years.

Apartment sales transactions
2007

(Monthly average, thousand)

2008

2009

Annual Annual Mar Annual Jan

Nationwide

84

74

Source: Korea Land Corporation

36

May 2010

88

77

49

Feb

Mar

60

79

2010

Apr May Jun

Jul

76

91

72

81

Aug Sep
81

90

Oct
87

Nov Dec
82

82

Jan

Feb

Mar

62

67

80

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
Nationwide land prices in March rose 0.21 percent, maintaining a moderate recovery yet
slightly decelerating from the previous month’s 0.23 percent. Land prices in March were 2.5
percent lower than the pre-crisis peak reached in October 2008.
In the Seoul metropolitan area (up 0.25%), land prices in Incheon (up 0.30%) and Gyeonggi
province (up 0.29%) saw a robust increase.
Land price increases in Seoul metropolitan area (m-o-m, %)
0.31 (Jan 2010)

0.38 (Dec 2009)

0.29 (Feb)

0.25 (Mar)

Meanwhile, land price increases in areas excluding the Seoul metropolitan area slowed to
0.12 percent from 0.13 percent of the previous month.
Land price increases in areas excluding Seoul metropolitan area (m-o-m, %)
0.26 (Dec 2009)

0.14 (Jan 2010)

0.13 (Feb)

0.12 (Mar)

Land prices by region

(Percentage change from previous period)

2007

2008

2009

2010

Annual

Q4

Annual

Q1

Q2

Q3

Annual

Q1

Q2

Q3

Q4

Jan

Feb

Mar

Nationwide

3.88

1.15

-0.31

1.23

1.46

1.18 -4.08

0.96

-1.20

0.35

0.88

0.94

0.25

0.23

0.21

Seoul

5.88

1.90

-1.00

1.83

2.17

1.59 -6.34

1.40

-1.38

0.68

1.30

0.81

0.25

0.26

0.21

Gyeonggi

4.22

1.14

-0.26

1.28

1.57

1.28 -4.28

1.22

-1.62

0.37

1.13

1.36

0.35

0.32

0.29

Incheon

4.86

1.13

1.37

1.36

1.67

2.01 -3.57

1.99

-1.39

0.53

1.16

1.70

0.45

0.33

0.30

Q4

Source: Korea Land Corporation

Nationwide land transactions in March recorded 213,000 land lots, up 27.2 percent from the
previous month, which is equivalent to 89.2 percent of a monthly average of 239,000 in the
same month of the past 5 years.
Nationwide land transactions increased in terms of land lots led by Ulsan (up 133.7%),
Incheon (up 32.5%) and Gyeonggi province (up 28.4%).

Land sales transactions

(Monthly average, land lot, thousand)

2007 2008

2009

Annual1 Annual1 Annual1 Jan
Nationwide

2010

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

208

208

203

134

164

207

207

192

215

222

206

226

212

207

241

170

168

213

Seoul

33

26

22

13

15

20

24

22

27

26

25

28

25

19

21

16

17

20

Gyeonggi

49

45

46

26

34

41

48

45

49

50

48

56

52

48

58

39

34

44

Incheon

13

13

10

7

7

9

10

9

10

11

10

13

14

11

12

6

7

9

Source: Korea Land Corporation
1. Monthly average

38

May 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)

Jan-Mar

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

Economic Bulletin

39

13. Composite indices of business cycle indicators
The cyclical indicator of coincident composite index increased 0.5 points month-on-month in
March, continuing the upward trend.
Two components of the index, i.e. the wholesale & retail sales index and the domestic
shipment index decreased. In the mean time, the other six components such as the volume
of imports, the mining & manufacturing production index, and the manufacturing operation
ratio index were up.
Components of coincident composite index in Mar (m-o-m)
Value of construction completed (0.6%), mining & manufacturing production index (1.7%), volume of imports
(2.3%), manufacturing operation ratio index (1.1%), service activity index (0.6%), number of non-farm payroll
employment (0.3%), wholesale & retail sales index (-0.4%), domestic shipment index (-0.1%)

The year-on-year leading composite index went down 0.7 percentage points from the
previous month, continuing the downward trend for three consecutive months.
Five components of the index including the volume of capital goods imports and the ratio of
job openings to job seekers increased, while the other five components such as the indicator
of inventory cycle, the value of construction orders, and the consumer expectations index
were down.
Components of the leading composite index in Mar (m-o-m)
Indicator of inventory cycle (-7.3%p), consumer expectations index (-2.0p), value of construction orders
received (-8.2%), net terms of trade index (-0.6%), spreads between long & short term interest rates (0.1%p), ratio of job openings to job seekers (6.8%p), value of machinery orders received (4.7%), volume of
capital goods imports (4.4%), composite stock price index (1.0%), liquidity in the financial institutions (0.5%)

2009

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

2010

Sep

Oct

Nov

Dec

Jan

Feb1

Mar1

0.7

0.4

0.5

0.4

0.8

1.2

0.8

1

1

98.9

98.9

99.0

98.9

99.3

100.0

100.5

(m-o-m, p)

0.2

0.0

0.1

-0.1

0.4

0.7

0.5

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

0.6

0.6

1.1

0.7

0.3

-0.2

0.1

12 month smoothed change
in leading composite index (%)

9.6

10.3

11.3

11.6

11.3

10.3

9.6

(m-o-m, %p)

0.8

0.7

1.0

0.3

-0.3

-1.0

-0.7

Cyclical indicator of coincident composite index

1. Preliminary

40

May 2010

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

13-2 Leading composite index
Source: Statistics Korea

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

Economic Bulletin

41

Policy Issues
The 2011 Guidelines on Budgeting

The 2011 budget guidelines are directed toward an early recovery of fiscal health and post
crisis economic take-off.

Overview
To early improve the fiscal condition that has deteriorated amid the economic crisis, the total
expenditure of 2011 will be more tightly controlled than in 2010, when a budget deficit of 2.7
percent to GDP was registered. The 2011 budget, without compromising the quality of public
service, will be strictly managed: discretionary budgets to be reviewed across the board,
compulsory budgets to be reduced, and fiscal project budgets to be more systematically
controlled from planning to allocating, to spending, and to appraisal.
To found a basis for the Korean economy to make a great leap forward in the post crisis
period, budget allocation will give priorities to job creation and working class support, future
growth engines, and diplomatic affairs.

Guidelines on fiscal management
The 2011 fiscal management guidelines are aimed at 1) achieving solid recovery of fiscal
health, 2) effectively managing budgets, and 3) expanding revenue bases.
1) To achieve solid recovery of fiscal health,
- national finance to be managed in terms of a total balance, rather than separate ones such
as a fiscal balance or national debt

42

May 2010

- total expenditure control aimed at decreasing the fiscal deficit below 2010’s 2.7 percent to
GDP
2) To effectively manage budgets,
- discretionary budgets allocated to projects with low priorities or poor performance to be
cut, or ways to enhance the projects’ performance to be sought
- compulsory expenditures to be reformed on condition of law revision
- temporary projects for riding out the crisis to be under reconsideration
- budgets for government officials’ ordinary expenses to be tightened
- similar or overlapping projects to be reviewed and restructured
- fiscal projects to be examined if they are suitable for investment by the private sector or
municipal governments
- projects of national priorities to be invested first
- ongoing projects to be financed first so that they will be completed in time
- working and administrative expense budgets for fiscal projects to be cut
- ministerial efforts to cautiously spend budgets to be rewarded
- budgets for supporting projects to be reviewed in terms of both expenditure budgets and
tax expenditure budgets, to avoid overlapping financing
3) To expand revenue bases,
- non-essential tax exemptions and reductions to be scrapped
- more non-tax revenue income to be earned through increased public firms’ dividend and
their restructuring
- surpluses in funds and special accounts to be consolidated into general accounts, if this
would not incur any liquidity shortages in the funds and special accounts, to more
effectively use financial resources
- national properties managed in a way to yield profit
- the principle of “those who earn responsible for paying the expenses” to be more
extensively adopted

Guidelines on budget allocation
The 2011 budget allocation will be prioritized 1) to create jobs and support the working class,
2) nurture future growth engines, and 3) upgrade the country with regard to diplomacy,
environment and security.
1) To create jobs and support the working class,
- the government to provide funds and credit guarantees to enterprises with job creating
potentials
- customized employment services made available for those less competent in getting jobs
- budgets allocated to nurture human resources in the fields of future growth potential such
as green technologies and service industries

Economic Bulletin

43

- the government to provide overarching programs of connecting training, short-term
employment, and employment services
- incentives offered to encourage the low income class to work
- daycare support to be expanded to less vulnerable groups
- programs run to facilitate seniors participating in economic activities
- a consolidated system to manage social welfare budgets to be developed
- the government to enhance the quality of public education, while adjusting the support for
primary and secondary education as the number of school aged children is decreasing
- more students eligible for scholarships
- affordable housing built for the working class
2) To nurture future growth engines,
- the government to increase R&D investment and promote private sector investment in
R&D
- budgets allocated to the development of core technologies, green technologies, and new
growth engines
- government support given to research-centered universities, to facilitate growing quality
human resources
- investment in railroad construction to be increased, while investment in road construction
to be cut
- ongoing support for the four river restoration project
- budget allocation to finance SMEs with growth potential in green industries, IT
convergence, and SW industries
- budget allocation to secure raw materials through overseas resources development
projects and to increase non-ferrous and rare metal reserves
- government support given to enterprises with growth potential, including venture
companies and SMEs
- the agricultural industry to be nurtured through government support for developing new
breeds, food related technologies and value-added food products
- budget allocation to develop next generation content industries such as 3D, along with
tourism, and cultural and sports events
3) To upgrade Korea with regard to diplomacy, environment and security, budgets will be
allocated
- to better serve the international community, for example, through increased ODAs and
contributions to the international organizations
- to finance the G-20 Seoul summit
- to help North Korean refugees settle in South Korea
- to improve inter-Korean relations
- to enact laws regulating green house gas emissions, energy consumption, and other
climate change related concerns
- to invest in next generation energy technologies such as energy production from recycled
resources

44

May 2010

- to build energy-saving facilities
- to operate the waste disposal system more effectively
- to invest in core military competencies and security R&D
- to encourage military personnel by upgrading military residences, providing job training
and technical education
- to make more combat equipment readily available by securing parts and improving
maintenance
- to employ high-tech detective systems, electronic anklets and DNA identification among
others
- to increase legal protection for socially vulnerable groups, such as foreign residents and
victims of crime
- to enhance the nation’s disaster management capacity, for example, by improving
disaster prevention in areas of frequent disasters

Economic Bulletin

45

Economic
News Briefing

G-20 Finance Ministers and Central Bank Governors pledge to address
global challenges
The G-20 Finance Ministers and Central Bank Governors met in Washington D.C. on April 23
and vowed to work together to address new global challenges.
The financial leaders assessed that the global recovery has progressed better-than-expected
and credited the economic recovery to the massive government stimulus. The leaders,
however, noted that the world economy is proceeding at different paces within and across
regions, and unemployment is still high in many economies.
In addition, the officials urged progress to deliver on the representation and governance
reforms of the international financial institutions agreed in Pittsburg. In particular, they
called for the International Monetary Fund (IMF) to deliver on the reforms of its quota and
governance by the November Seoul Summit.
Addressing the financial reform, leaders reaffirmed that it should be multi-faceted but at its
core must be stronger capital standards, complemented by clear incentives to mitigate
excessive risk-taking practices. The G-20 leaders pledged to work together to ensure that
banks make a fair and substantial contribution toward paying for any burdens associated
with government interventions to repair the banking system.

46

May 2010

Financial leaders also stressed the importance of achieving a single set of high quality,
global accounting standards and implementing international standards with regard to
compensation practices at financial institutions.
Meanwhile, finance ministers of Korea, Canada, the US, the UK and France as past, current
and future chairs of the G-20 Finance Ministers and Leaders summits, issued a joint
statement on May 3 regarding the financial assistance to Greece. Welcoming the financial
aid to Greece from the eurozone members and the IMF, the ministers pledged support for
the IMF’s exceptional financing for Greece and forecasted that the exceptional assistance
will help restore financial stability in Greece and promote market confidence.

Korean economy grows 7.8% in Q1 (Advanced)
Korea’s real gross domestic product (GDP) expanded by 7.8 percent in the first quarter of
2010 from a year earlier, the highest since the fourth quarter of 2002, which suggests the
economy’s stronger recovery. The better than expected figure was mainly attributed to robust
exports and a relatively low base set a year ago. From a quarter earlier, GDP grew 1.8 percent.

GDP by production and expenditure*

(Percentage change from previous period)

2008

20091

20101

Annual

Annual

Q1

Q2

Q3

Q4

GDP

2.3

0.2

-4.3

-2.2

1.0

6.0

7.8 (1.8) 2

Agriculture, forestry
and fishery

5.6

1.6

1.5

-1.3

3.3

2.8

-1.3 (-4.4)

Manufacturing

2.9

-1.6

-13.6

-7.2

1.7

13.0

20.0 (3.6)

-2.5

1.9

0.0

3.2

0.3

3.3

1.2 (1.6)

Construction

Q1

Services

2.8

1.0

-0.4

0.3

0.9

3.0

4.3 (1.5)

Private consumption

1.3

0.2

-4.4

-1.0

0.7

5.8

6.2 (0.6)

Government consumption

4.3

5.0

7.2

6.7

5.3

1.1

3.8 (5.7)

Facility investment

-1.0

-9.1

-23.1

-17.3

-7.0

13.3

28.8 (1.5)

Construction investment

3

-2.8

4.4

2.8

5.1

4.4

5.0

1.9 (0.9)

Goods exports4

4.6

0.0

-13.5

-3.2

2.3

15.0

21.3 (3.4)

Goods imports4

4.5

-7.9

-18.5

-13.8

-6.7

8.9

22.1 (5.4)

Domestic demand

1.4

-3.8

-8.6

-7.6

-3.5

4.7

9.5 (2.7)

-1.2

1.7

-5.2

-0.5

3.6

8.6

9.1 (1.0)

GDI

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

Economic Bulletin

47

On the production side, manufacturing and service sectors expanded year-on-year growth to
20.0 percent and 4.3 percent from the previous quarter’s 13.0 percent and 3.0 percent,
respectively. On the expenditure side, facility investments and goods exports surged 28.8
percent and 21.3 percent each as private consumption stayed on a robust upward track.
Domestic demand was up 9.5 percent from a year earlier on the back of healthy private
consumption and facility investment.

Asia to launch credit guarantee facility
The finance ministers of the Association of Southeast Asian Nations (ASEAN), China, Japan
and Korea (ASEAN+3), agreed to set up the Credit Guarantee and Investment Facility (CGIF)
to encourage the region’s issuance of local-currency-denominated bonds.
The US$700 million will be maintained as a trust fund at the Asian Development Bank (ADB),
unveiled the ASEAN+3 on May 2 after a meeting held in Tashkent, Uzbekistan. Korea will
contribute US$100 million while Japan and China will provide US$200 million each to the
fund. The ASEAN countries will put up US$70 million and the ADB will contribute the rest.
Meanwhile, the finance ministers also agreed to establish the ASEAN+3 Macroeconomic
Research Office (AMRO), a regional economic office to monitor the economic conditions of
Asian countries and offer financial support in cases of a sudden liquidity crunch. AMRO is
expected to contribute to successful implementation of Chiang Mai Initiative
Multilateralization (CMIM).

Korea to reduce the number of unsold homes
The Korean government announced, on April 23, a plan to purchase more than 40,000
unsold apartment units to prevent a housing market crisis and curb a decline of property
transactions.
The Korea Housing Guarantee Corporation (KHGC) will spend 1.5 trillion won by June and
another 1.5 trillion won in the second half to purchase unsold apartments. The money will be
first spent on unsold apartments in provincial areas.
Meanwhile, the Korea Land & Housing Corporation (LH) plans to double its guarantee to 1
trillion won to buy unsold new homes invested by real estate investment trusts (REITs).
Korea Credit Guarantee Fund (KODIT) will help issue Primary Collateralized Bond Obligations

48

May 2010

(P-CBO), amounting to 1 trillion won, for construction companies that pledged unsold homes
as collateral for their bonds. In addition, the LH is to buy 1,000 unsold apartments and use
them as public rental housing.

Korea establishes institutional framework for “low carbon green growth”
The Enforcement Decree of the Framework Act on Low Carbon, Green Growth, which was
adopted during the 15th Cabinet meeting on April 6, took effect on April 14 along with the
Framework Act on Low Carbon, Green Growth. The enforcement decree stipulates the
necessary elements for the mandates and their implementation in the Framework Act on
Low Carbon, Green Growth that will serve as a fundamental legal institution to reduce the
country’s global warming pollution and dependence on imported oil.
The enforcement decree specifies the details and procedures to support eco-friendly
companies and stipulates the nation’s greenhouse gas (GHG) reduction goal (30% below
business as usual levels by 2020) to reaffirm Korea’s commitment to combating climate
change and making a transition to a low-carbon economy.
The Greenhouse Gas Information Center shall be set up under the Ministry of Environment in
order to establish and manage the national integrated information management system for
greenhouse gases. The ministry shall verify the information and statistics on greenhouse
gases, and externally maintain the status as a national integrated information manager on
greenhouse gases.
Under the enforcement decree, the Economic Policy Steering committee is required to
review GHG emission reduction goals of each industry and estimate the potential macroeconomic effects. Also the government will establish standards for automobile fuel efficiency
and GHG emissions.
Meanwhile, the United Nations Environment Programme (UNEP) said in its latest report on
Korea that Korea’s announcement, in a voluntary and independent manner, of a national
mid-term target to reduce its GHG emissions by 30 percent by 2020 from its otherwise
projected growth is very encouraging. “Korea is demonstrating engagement and leadership
at the international level, and Korea’s commitment to spend 2 percent of GDP from 2009 to
2013 for investment in green economy is remarkable efforts to reorient and refocus
investment in the environment,” noted the UNEP in its “Overview of the Republic of Korea’s
National Strategy for Green Growth.”

Economic Bulletin

49

Government to invest 1 trillion won into engineering R&D
The Korean government plans to invest one trillion won in research and development (R&D)
over the next five years to enhance the engineering industry. With the ambitious plan
reported during the 21st meeting of the Presidential Council on National Competitiveness on
April 28, the government will work on restructuring of the domestic engineering industry to
focus more on high value-added areas including planning, project management and design
which major advanced countries such as the US, Netherland and the UK currently dominate.
The government will focus its efforts on developing human resources by establishing two
engineering graduate schools in 2011 and assist more people in obtaining international
certificates in engineering-related areas. The government will also set up a 170,000 squaremeter engineering complex for around 200 SMEs. The government expects the successful
implementation of the plan to bring up the share of Korea’s engineering industry in the
global market to 5 percent from the current 0.4 percent and create 200,000 jobs by 2020.

Korea to nurture contents, media and 3D industries
The Korean government aims to create up to 80,000 new jobs in the media, content, and 3D
industries by 2014. The content industry and the media industry will receive 6.5 trillion won
and 4.7 trillion won each and are expected to create 30,000 and 10,000 jobs, respectively. In
addition, the government will spend 800 billion won for advancement of the 3D industry by
2015. The revenue of the 3D industry is forecasted to amount to 15 trillion won and 40,000
jobs will be newly created. In particular, the government plans to launch 3D terrestrial
broadcasting by 2013 after a trial service in October this year and enable Korea to continue
on the leadership in the 3D industry.

50

May 2010

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

51

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

Manufacturing

Gross fixed capital formation

Final
consumption
expenditure

8.5

-1.5

2.8

-5.4

5.4

2004

4.6

9.1

10.0

1.0

2.1

1.3

3.8

2005

4.0

1.3

6.2

4.6

1.9

-0.4

5.3

2006

5.2

1.5

8.1

5.1

3.4

0.5

8.2

2007

5.1

4.0

7.2

5.1

4.2

1.4

9.3

2008

2.3

5.6

2.9

2.0

-1.9

-2.8

-1.0

2009P

0.2

1.6

-1.6

1.3

-0.2

4.4

-9.1

2004

2005

2006

2007

2008

2009P

I

3.5

0.7

5.4

2.0

5.1

8.2

2.9

II

1.8

-1.6

3.1

0.3

4.7

8.4

-0.7

III

2.0

-9.6

4.3

0.0

2.8

8.3

-5.8

IV

3.9

-8.0

8.5

-0.4

5.0

9.0

-2.2

I

5.2

8.2

10.9

-0.1

2.3

5.3

-0.6

II

5.9

7.6

12.9

1.3

4.9

4.2

6.4

III

4.8

8.3

10.4

1.0

3.1

1.2

7.7

IV

2.7

11.6

6.2

1.8

-1.4

-3.5

1.8

I

2.7

0.4

4.8

2.7

-0.3

-3.1

3.4

II

3.4

4.8

3.9

4.7

1.8

0.9

2.8

III

4.5

3.8

6.7

5.9

1.5

-0.3

4.1

IV

5.1

-3.1

9.3

4.9

3.9

0.3

10.8

I

6.1

3.9

9.4

5.8

3.8

1.9

7.2

II

5.1

-0.3

9.1

4.9

0.1

-4.2

8.0

III

5.0

-1.4

8.7

4.6

4.0

-0.5

12.0

IV

4.6

4.2

5.4

5.1

5.7

5.1

5.7

I

4.5

1.6

4.5

5.1

7.3

4.4

12.6

II

5.3

7.0

7.2

5.4

5.7

2.0

13.0

III

4.9

8.2

6.3

5.3

1.5

-0.2

4.0

IV

5.7

-0.7

10.2

4.7

3.1

0.4

8.0

I

5.5

7.8

8.9

4.3

-0.6

-2.5

2.8

II

4.4

4.6

8.3

3.0

0.6

-0.5

2.0

III

3.3

4.3

5.3

2.4

2.1

0.4

5.3

IV

-3.3

6.5

-9.4

-1.7

-8.7

-7.7

-13.3

I

-4.3

1.5

-13.6

-2.0

-7.4

2.8

-23.1

II

-2.2

-1.3

-7.2

0.7

-2.3

5.1

-17.3

III

1.0

3.3

1.7

1.7

0.4

4.4

-7.0

IV

6.0

2.8

13.0

4.7

7.1

5.0

13.3

P: Preliminary
Source: The Bank of Korea

52

4.4

Facilities

2003

2003

0.5

Construction

May 2010

Growth rate by economic activity

Growth rate by expenditure on GDP

Economic Bulletin

53

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

Production
index

Period

2008
2009

Y-o-Y
change (%)

Shipment
index

Y-o-Y
change (%)

Inventory
index

Y-o-Y
change (%)

Service
production
index

Y-o-Y
change (%)

119.8
118.9

3.4
-0.8

118.3
116.3

2.6
-1.7

125.5
115.5

7.1
-8.0

116.1
118.4

3.6
2.0

2008

I
II
III
IV

121.9
125.5
119.6
112.4

11.2
9.2
5.9
-11.0

119.8
123.0
118.0
112.4

9.3
6.8
5.5
-9.9

123.6
133.2
132.0
125.5

8.4
16.3
17.1
7.1

114.0
116.0
116.4
118.1

6.8
4.3
3.4
0.0

2009

I
II
III
IV

102.8
117.8
124.7
130.5

-15.7
-6.1
4.3
16.2

101.9
115.9
120.5
126.8

-14.9
-5.8
2.1
12.8

115.9
110.6
113.3
115.5

-6.2
-16.9
-14.2
-8.0

113.7
118.8
118.6
122.5

-0.3
2.4
1.9
3.7

129.1

25.6

123.9

21.6

123.5

6.6

120.1

5.6

2010

IP

2008

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

126.3
111.1
128.3
126.5
126.5
123.5
123.4
116.2
119.1
126.7
110.3
100.0

12.0
10.9
10.9
11.2
9.2
7.3
8.9
2.2
6.7
-1.5
-13.6
-18.4

121.9
109.9
127.6
124.8
123.7
120.5
121.6
114.7
117.6
124.2
109.8
103.2

10.5
8.1
9.2
8.9
6.6
4.9
8.0
2.0
6.3
-1.7
-12.9
-15.1

123.9
124.3
123.6
124.6
128.7
133.1
132.4
132.1
132.0
134.7
133.2
125.5

4.5
7.5
8.4
11.4
12.7
16.2
14.5
14.3
17.1
17.1
15.9
7.1

114.3
109.6
118.1
116.1
116.7
115.1
117.4
114.2
117.5
118.9
113.3
122.2

8.0
6.6
6.0
6.1
4.1
2.7
4.7
1.2
4.2
3.1
-2.0
-1.0

2009

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

93.8
99.8
114.7
116.1
115.0
122.2
124.3
117.4
132.3
127.0
130.3
134.2

-25.7
-10.2
-10.6
-8.2
-9.1
-1.1
0.7
1.0
11.1
0.2
18.1
34.2

93.1
99.4
113.3
114.7
112.8
120.1
120.0
113.5
127.9
123.4
126.8
130.2

-23.6
-9.6
-11.2
-8.1
-8.8
-0.3
-1.3
-1.0
8.8
-0.6
15.5
26.2

123.7
117.6
115.9
112.4
111.4
110.6
112.3
112.8
113.3
112.6
113.7
115.5

-0.2
-5.4
-6.2
-9.8
-13.4
-16.9
-15.2
-14.6
-14.2
-16.4
-14.6
-8.0

112.4
109.5
119.2
119.9
118.5
118.0
118.1
115.5
122.3
118.3
118.1
131.0

-1.7
-0.1
0.9
3.3
1.5
2.5
0.6
1.1
4.1
-0.5
4.2
7.2

128.5
118.6
140.1

37.0
18.8
22.1

123.0
113.7
134.9

32.1
14.4
19.1

1192
122.5
123.5

-3.6
4.2
6.6

117.3
117.5
125.4

4.4
7.3
5.2

2010

1P
2P
3P

P: Preliminary
Source: Statistics Korea

54

May 2010

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

Period

Y-o-Y
change (%)

Operation
ratio index
(2005=100)

Y-o-Y
change (%)

Average
operation
ratio (%)

115.3
118.9

5.1
3.1

97.2
93.5

-3.2
-3.8

77.5
74.6

Production
capacity index
(2005=100)

2008
2009
2008

I
II
III
IV

113.8
115.1
116.0
116.4

5.9
6.3
5.3
3.4

99.3
103.1
95.5
91.1

2.2
0.5
-0.7
-13.6

81.5
80.8
78.3
69.6

2009

I
II
III
IV

116.8
117.8
119.7
121.1

2.6
2.3
3.2
4.0

81.4
94.6
97.8
100.3

-18.0
-8.2
2.4
10.1

66.9
74.2
78.8
78.4

122.6

5.0

97.6

19.9

80.5

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

113.8
113.8
113.9
114.3
115.4
115.7
115.7
116.0
116.2
116.3
116.3
116.7

6.2
5.9
5.8
5.9
6.7
6.2
5.5
5.3
4.9
3.6
3.4
3.3

103.2
89.5
105.1
104.7
103.3
101.2
99.8
92.2
94.5
104.1
89.4
79.7

3.4
1.5
1.4
3.2
-0.6
-1.3
1.5
-4.6
0.7
-4.8
-16.8
-20.1

82.1
80.6
81.7
82.1
80.1
80.1
79.3
78.3
77.3
76.9
69.1
62.8

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

116.8
116.7
117.0
117.6
117.6
118.3
119.1
119.5
120.4
120.6
120.8
121.9

2.6
2.5
2.7
2.9
1.9
2.2
2.9
3.0
3.6
3.7
3.9
4.5

73.5
79.5
91.1
93.4
92.6
97.9
98.6
91.1
103.6
99.1
100.6
101.1

-28.8
-11.2
-13.3
-10.8
-10.4
-3.3
-1.2
-1.2
9.6
-4.8
12.5
26.9

62.8
67.7
70.3
72.4
73.6
76.6
78.7
77.7
79.9
77.3
78.2
79.6

2010

122.1
122.3
123.5

4.5
4.8
5.6

97.4
88.5
107

32.5
11.3
17.5

78.9
80.4
82.2

2010

IP

1P
2P
3P

P: Preliminary
Source: Statistics Korea

Economic Bulletin

55

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

Period

2008
2009

Y-o-Y
change (%)

Durable
goods

Y-o-Y
change (%)

Semi-durable
goods

Y-o-Y
change (%)

Non-durable
goods

Y-o-Y
change (%)

110.6
113.5

1.1
2.6

126.4
136.7

1.6
8.1

104.9
105.2

-3.0
0.3

110.0
111.3

1.4
1.2

2008

I
Il
III
IV

111.5
111.7
108.8
110.4

4.5
2.9
1.4
-4.2

129.9
134.1
125.8
115.7

8.7
8.0
-0.1
-9.6

103.6
107.2
94.0
115.0

4.0
-2.7
0.3
-10.7

109.2
108.8
112.3
109.5

2.3
1.3
1.5
0.2

2009

I
II
III
IV

106.3
113.4
111.9
122.3

-4.7
1.5
2.8
10.8

114.4
141.8
135.7
154.9

-11.9
5.7
7.9
33.9

102.0
106.6
93.3
118.9

-1.5
-0.6
-0.7
3.4

107.7
109.3
114.4
114.0

-1.4
0.5
1.9
4.1

116.7

9.8

147.6

29.0

104.8

2.7

111.2

3.2

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

111.7
107.3
115.4
113.4
115.1
106.5
109.6
106.2
110.7
109.7
108.9
112.7

5.4
3.5
4.6
6.3
3.3
-0.7
4.2
2.2
-1.8
-3.3
-4.6
-4.8

128.3
117.8
143.6
139.1
136.0
127.1
140.7
121.5
115.2
123.9
108.9
114.4

8.1
6.1
11.4
15.6
7.9
0.6
7.9
-4.7
-3.8
-0.5
-15.3
-12.5

104.4
97.8
108.5
108.5
112.1
100.9
97.6
86.2
98.1
111.6
120.3
113.1

6.7
7.2
-1.3
-2.8
-3.7
-1.8
3.5
8.8
-8.9
-10.1
-7.7
-14.3

108.8
108.4
110.5
109.5
112.3
104.5
106.1
112.0
118.8
106.6
107.7
114.3

4.3
0.6
2.2
4.5
2.0
-2.7
1.0
2.0
1.6
-2.2
1.2
1.5

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

108.5
100.9
109.4
108.6
117.0
114.6
110.9
106.7
118.1
120.4
119.5
127.0

-2.9
-6.0
-5.2
-4.2
1.7
7.6
1.2
0.5
6.7
9.8
9.7
12.7

103.9
115.8
123.6
123.7
144.0
157.8
138.3
122.7
146.0
144.7
153.2
166.8

-19.0
-1.7
-13.9
-11.1
5.9
24.2
-1.7
1.0
26.7
16.8
40.7
45.8

102.6
96.1
107.4
108.3
112.1
99.4
94.3
85.6
100.1
114.9
120.7
121.2

-1.7
-1.7
-1.0
-0.2
0.0
-1.5
-3.4
-0.7
2.0
3.0
0.3
7.2

114.8
99.0
109.2
107.1
113.0
107.8
111.1
112.9
119.1
116.8
109.3
116.0

5.5
-8.7
-1.2
-2.2
0.6
3.2
4.7
0.8
0.3
9.6
1.5
1.5

2010

116.0
114.4
120.0

6.9
13.1
9.7

145.6
140.1
157.1

40.1
21.0
27.1

107.3
98.6
108.5

4.6
2.6
1.0

108.8
112.2
112.7

-5.2
13.3
3.2

2010

IP

1P
2P
3P

P: Preliminary
Source: Statistics Korea

56

May 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

2008
2009

Durable
goods

Y-o-Y
change (%)

Non-durable
goods

Y-o-Y
change (%)

Consumer
sentiment index

114.8
115.5

1.6
0.6

126.8
133.9

1.8
5.6

109.9
108.1

1.4
-1.6

-

2008

I
II
III
IV

117.5
115.7
113.8
111.9

5.8
4.2
2.2
-5.7

133.3
136.5
123.0
114.4

11.3
11.4
0.1
-13.9

111.1
107.4
110.1
111.0

3.3
0.9
3.2
-1.8

-

2009

I
II
III
IV

106.7
114.1
118.8
122.5

-9.2
-1.4
4.4
9.5

112.7
138.0
138.0
147.0

-15.5
1.1
12.2
28.5

104.3
104.5
111.1
112.6

-6.1
-2.7
0.9
1.4

-

117.6

10.2

136.2

20.9

110.2

5.7

-

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

125.4
106.5
120.6
119.8
115.7
111.7
117.8
111.7
112.0
119.7
107.0
109.1

9.1
2.1
5.7
7.3
2.4
2.9
7.4
-1.1
0.6
-1.6
-9.3
-6.3

132.6
123.1
144.2
144.2
136.9
128.5
134.3
118.6
116.1
127.7
111.0
104.4

12.4
8.3
12.8
20.3
9.3
5.0
8.0
-5.1
-2.8
-6.4
-15.8
-19.8

122.5
99.8
111.1
110.1
107.2
105.0
111.1
108.9
110.3
116.6
105.4
111.0

7.8
-0.7
2.3
1.7
-0.7
2.0
6.9
0.7
2.1
0.8
-6.2
0.1

84
96
96
88
84
81

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

106.4
102.7
110.9
111.3
112.7
118.2
118.1
110.0
128.2
120.2
118.8
128.4

-15.2
-3.6
-8.0
-7.1
-2.6
5.8
0.3
-1.5
14.5
0.4
11.0
17.7

98.6
115.1
124.4
119.1
138.9
156.1
144.3
124.6
145.0
138.8
146.0
156.1

-25.6
-6.5
-13.7
-17.4
1.5
21.5
7.4
5.1
24.9
8.7
31.5
49.5

109.5
97.7
105.6
108.2
102.2
103.0
107.7
104.2
121.5
112.7
107.9
117.3

-10.6
-2.1
-5.0
-1.7
-4.7
-1.9
-3.1
-4.3
10.2
-3.3
2.4
5.7

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

2010 1P
2P
3P
4P

122.3
109.6
121.0
-

14.9
6.7
9.1
-

135.5
129.1
144.0
-

37.4
12.2
15.8
-

117.0
101.8
111.9
-

6.8
4.2
6.0
-

113
111
111
110

2010

IP

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

Economic Bulletin

57

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

2009
2009

2010

Domestic
machinery
shipment
excluding ship
(2005=100)

Total

Public

Private

20,718

3,735

16,983

9,111

105.4

110.4

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

932
696
1,345
763

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

1,992
2,212
2,321
2,586

93.9
106.3
103.8
117.7

98.7
112.7
107.5
122.6

5,565

524

5,041

2,957

116.4

119.0

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

1,752
1,630
2,183

169
107
248

1,583
1,523
1,935

1,010
880
1,066

102.8
109.7
136.6

111.6
105.5
139.9

I
ll
III
IV
IP

2009 1
2
3
4
5
6
7
8
9
10
11
12
2010

Estimated
facility investment
index
(2005=100)

1P
2P
3P

Manufacturing

Y-o-Y change (%)
2009
2009

2010

I
ll
III
IV
IP

2009 1
2
3
4
5
6
7
8
9
10
11
12
2010

1P
2P
3P

P: Preliminary
Source: Statistics Korea

58

May 2010

-11.8

61.7

-19.9

-27.2

-8.0

-5.2

-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

10.6

-43.8

22.9

48.4

24.0

20.6

-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

11.2
-3.1
23

-27.1
-79.4
36.9

17.8
30.9
21.4

41.4
65.7
42.9

19.1
18.2
33.3

31.0
7.9
23.7

7. Value of construction completed and domestic construction
orders received See graphs 4-2 & 4-3

(current prices, billion won)

Period

2010
2009

2010

Private

Public

Private

32,393

52,562

107,011

50,771

51,914

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

19,936

7,282

11,773

16,848

7,646

8,335

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

6,414
6,051
7,471

2,222
2,236
2,824

3,924
3,589
4,260

6,643
4,615
5,590

2,286
2,109
3,251

4,074
2,163
2,099

89,863
I
ll
llI
lV
IP
1
2
3
4
5
6
7
8
9
10
11
12
1P
2P
3P

Type of order

Domestic
construction
orders received
(total)

Public

2009
2009

Type of order

Value of
construction
completed
(total)

Y-o-Y change (%)
2009
2009

2010
2009

2010

I
ll
llI
lV
IP
1
2
3
4
5
6
7
8
9
10
11
12
1P
2P
3P

3.3

21.2

-5.7

3.0

60.9

-21.9

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

4.2

10.8

2.0

-6.9

-17.1

0.9

-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

5.8
-0.8
7.3

3.4
9.6
18.6

8.3
-4.3
2.2

17.1
-6.7
-25.3

-14.7
-23.5
-14

49.4
4.7
-39.5

P: Preliminary
Source: Statistics Korea

Economic Bulletin

59

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

Y-o-Y
change (%)

Coincident
index
(2005=100)

Cycle of
coincident
index
(2005=100)

BSI (results)

BSI (prospects)

109.1
110.0
110.4
111.1
111.4
112.3
113.3
114.0
114.7
115.4
116.2
116.6

5.3
5.8
5.8
6.0
5.8
6.2
6.7
7.0
7.1
7.2
7.4
7.2

110.7
111.1
111.7
112.3
112.9
113.8
114.7
115.5
115.7
116.2
116.9
118.0

101.3
101.3
101.4
101.5
101.6
101.9
102.4
102.6
102.3
102.4
102.6
103.1

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

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

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

116.3
115.6
115.2
115.1
115.1
114.6
114.0
113.8
113.6
112.7
111.1
110.4

6.3
5.0
3.9
3.2
2.6
1.5
0.5
-0.1
-0.7
-1.8
-3.4
-4.2

119.1
119.3
119.7
119.7
119.9
119.7
119.9
120.2
120.5
120.3
118.7
116.0

103.6
103.4
103.3
102.8
102.6
102.0
101.8
101.6
101.4
100.8
99.1
96.4

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

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

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

110.8
112.2
113.5
115.4
117.6
120.3
122.1
123.2
123.9
124.7
126.1
127.0

-3.9
-2.6
-1.4
0.4
2.7
5.5
7.6
8.8
9.6
10.3
11.3
11.6

113.7
113.9
115.3
117.3
118.4
120.5
121.8
122.8
123.6
124.1
124.7
125.2

94.1
93.9
94.6
95.9
96.3
97.7
98.3
98.7
98.9
98.9
99.0
98.9

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

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

2010 1
2
3
4
5

127.4
127.1
127.2
-

11.3
10.3
9.6
-

126.2
127.7
128.7-

99.3
100.0
100.5
-

99.2
98.7
113.1
108.9
-

103.1
102.3
116.2
111.2
113.4

Period

Leading
index
(2005=100)

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

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

60

May 2010

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

Current
balance

Period

2008
2009 P

Goods
trade
balance

Exports

-5,776.3
42,667.6

5,669.1
56,127.6

Imports

Services
trade
balance

Income
trade
balance

Current
transfers

422,007.3
363,533.6

435,274.7
323,084.5

-16,671.5
-17,202.7

5,900.0
4,553.6

-673.9
-810.9

2008

I
II
III
IV

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

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

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

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

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

1,979.7
-521.1
1,503.3
2,938.1

-533.8
-956.3
-764.7
1,580.9

2009P

I
II
III
IV

8,618.2
13,097.4
10,395.5
10,556.5

8,308.8
17,576.0
14,702.5
15,540.3

74,421.4
90,360.4
94,780.5
103,971.3

71,417.5
73,970.2
84,845.1
92,851.8

-1,926.2
-4,167.7
-5,334.5
-5,774.3

922.3
292.7
1,690.7
1,647.9

1,313.3
-603.6
-663.2
-857.4

2010P

I

1,227.1

7,292.9

101,356.8

98,084.4

-6,041.0

756.0

-780.8

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

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

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

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

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

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

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

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

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

-1,612.3
3,585.8
6,644.7
4,274.1
3,442.6
5,380.7
4,419.5
1,922.1
4,053.9
4,757.3
4,277.7
1,521.5

-1,762.2
3,100.1
6,970.9
6,105.2
4,872.3
6,598.5
6,114.5
3,319.5
5,268.5
5,675.1
5,842.3
4,022.9

21,133.4
25,397.1
27,890.8
30,326.5
27,823.8
32,210.0
31,908.5
28,949.6
33,922.4
33,970.0
33,991.6
36,009.6

24,898.8
22,598.1
23,920.6
24,873.8
23,407.0
25,689.3
27,679.8
27,408.2
29,757.1
30,396.5
29,534.7
32,920.5

-710.5
-540.4
-675.3
-1,117.3
-1,524.4
-1,526.0
-1,898.0
-1,803.4
-1,633.1
-1,312.6
-1,662.7
-2,799.0

596.4
510.5
-184.6
-803.1
389.6
706.2
511.1
617.7
561.9
559.4
390.0
698.5

264.0
515.6
533.7
89.3
-294.9
-398.0
-308.1
-211.7
-143.4
-164.6
-291.9
-400.9

2010 P 1
2
3

-630.8
167.6
1,690.3

1,376.4
1,557.9
4,358.6

30,802.0
33,105.0
37,450.0

31,447.9
31,004.3
35,632.3

-2,164.4
-1,777.9
-2,098.7

465.4
547.9
-257.3

-308.2
-160.3
-312.3

2008

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

Economic Bulletin

61

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

Period

Capital &
financial
account

Direct
investment

Portfolio
investment

Financial
derivative

2008
2009P

-50,083.6
26,447.9

-15,632.6
-9,065.8

-2,405.6
50,681.6

-14,769.9
-5,538.1

-17,384.8
-10,817.1

109.3
1,187.3

56,446.0
-69,061.1

-586.1
-54.4

I
ll
III
IV

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

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

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

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

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

-110.4
-226.8
-217.7
664.2

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

-973.9
-2,145.5
1,733.0
800.3

2009P I
II
III
IV

-1,399.2
8,682.0
14,399.1
4,766.0

-2,045.4
-172.1
-2,137.6
-4,710.7

3,532.3
16,740.2
19,914.7
10,494.4

-4,893.6
-614.9
-1,296.5
1,266.9

1,282.5
-7,566.0
-2,258.0
-2,275.6

725.0
294.8
176.5
-9.0

-9,017.4
-19,541.8
-23,886.9
-16,615.0

1,798.4
-2,237.6
-907.7
1,292.5

2010P I

5,842.1

-2,645.7

10,999.3

513.8

-2,849.7

-175.6

-6,863.3

-205.9

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

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

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

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

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

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

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

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

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

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

4,655.2
-3,216.5
-2,837.9
2,193.3
6,707.8
-219.1
2,200.5
5,296.9
6,901.7
1,582.9
1,544.2
1,638.9

-538.7
-785.8
-720.9
112.4
-574.5
290.0
-1,323.9
-276.1
-537.6
-509.0
-2,835.0
-1,366.7

5,678.8
161.4
-2,307.9
7,133.0
4,263.5
5,343.7
7,940.1
4,063.5
7,911.1
6,130.5
3,389.4
974.5

-248.5
-2,312.2
-2,323.9
-679.8
1,341.1
-1,276.2
-272.7
-721.0
-302.8
-572.9
848.7
991.1

-379.9
-609.6
2,272.0
-4,532.5
1,586.6
-4,620.1
-4,379.0
2,177.0
-56.0
-3,477.9
193.9
1,008.4

143.5
338.7
242.8
160.2
91.1
43.5
236.0
53.5
-113.0
12.2
-52.8
31.6

-4,488.6
-1,260.0
-3,268.8
-5,444.1
-10,248.6
-3,849.1
-5,573.6
-7,095.2
-11,218.1
-7,966.2
-5,637.4
-3,011.4

1,445.7
890.7
-538.0
-1,023.3
98.2
-1,312.5
-1,046.4
-123.8
262.5
1,626.0
-184.5
-149.0

2010 P 1
2
3

4,466.9
251.1
1,124.1

-1,679.9
-763.5
-202.3

151.9
3,126.2
7,721.2

49.8
254.5
209.5

6,015.1
-2,322.9
-6,541.9

-70.0
-43.2
-62.4

-5,250.9
714.7
-2,327.1

1,414.8
-1,133.4
-487.3

2008

P: Preliminary
Source: The Bank of Korea

62

May 2010

Capital transfers
Other
& acquisition of
investment non-financial
assets

Errors and
omissions

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

Consumer prices

Export & import prices

Period
All Items

Commodity

Service

Core

All items

Commodity

Export

Import

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 7
8
9
10
11
12

111.2
111.0
111.1
111.0
110.7
110.7

112.9
112.2
112.1
111.7
110.3
110.2

110.1
110.3
110.4
110.6
110.9
111.0

109.2
109.4
109.9
110.1
110.4
110.9

115.5
115.2
114.8
114.4
111.8
109.9

118.1
117.6
117.0
116.7
113.3
110.9

112.1
110.5
115.6
124.5
120.4
115.0

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
3
4

114.2
114.6
115.0
115.6

115.6
116.1
116.9
118.1

113.3
113.6
113.8
114.0

113.4
113.6
113.7
113.9

112.7
113.0
113.7
114.6

113.9
114.5
115.3
116.4

103.5
104.7
104.0
103.8

136.9
137.6
139.2
140.9

Y-o-Y change (%)
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 7
8
9
10
11
12

5.9
5.6
5.1
4.8
4.5
4.1

9.3
8.4
7.1
6.3
5.1
4.4

3.9
4.0
3.9
3.9
4.1
4.0

4.6
4.7
5.1
5.2
5.3
5.6

12.5
12.3
11.3
10.7
7.8
5.6

16.1
15.6
14.4
14.0
9.9
6.9

25.1
21.9
27.4
38.6
31.5
25.0

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
4

3.1
2.7
2.3
2.6

4.7
3.6
3.2
3.8

2.0
2.2
1.8
1.8

2.1
1.9
1.5
1.5

2.8
2.4
2.6
3.2

3.2
2.7
2.9
3.8

-6.9
-10.2
-12.2
-6.7

-0.9
-4.1
-4.3
5.1

Source: The Bank of Korea

Economic Bulletin

63

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 7
8
9
10
11
12

24,673
24,380
24,456
24,582
24,566
24,032

23,903
23,617
23,734
23,847
23,816
23,245

3,975
3,899
3,928
3,945
3,897
3,888

18,088
17,872
17,951
18,005
18,086
17,935

3.1
3.1
3.0
3.0
3.1
3.3

16,363
16,104
16,221
16,314
16,377
16,189

9,054
9,107
9,142
9,138
9,111
9,068

5,163
4,970
5,015
5,034
5,071
5,082

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
3
4

24,082
24,035
24,382
24,858

22,865
22,867
23,377
23,924

3,924
3,886
3,924
3,991

17,796
17,762
18,047
18,285

5.0
4.9
4.1
3.8

16,297
16,282
16,617
16,994

9,712
9,786
9,926
10,011

4,860
4,838
4,976
5,147

1,725
1,657
1,714
1,836

Y-o-Y change (%)
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 7
8
9
10
11
12

0.5
0.7
0.5
0.4
0.4
0.2

0.6
0.7
0.5
0.4
0.3
-0.1

-1.2
-1.2
-1.6
-2.3
-2.2
-3.3

1.3
1.3
1.1
1.2
0.7
0.6

-

1.5
1.4
1.0
1.0
1.0
0.5

4.4
3.9
3.6
3.5
3.6
3.6

-1.7
-1.5
-1.7
-1.7
-2.0
-1.8

-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
3
4

1.6
1.6
1.3
1.6

0.0
0.5
1.2
1.7

0.8
1.2
2.9
3.8

0.8
1.3
2.0
2.2

-

1.5
2.1
3.4
3.9

6.7
6.4
8.2
8.5

-2.4
-0.5
0.7
1.9

-12.4
-12.6
-12.6
-11.5

Source: Statistics Korea

64

May 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
3
4

2.0
2.0
2.0
2.0

2.9
2.9
2.8
2.5

5.4
5.3
5.0
4.7

4.3
4.2
3.9
3.8

4.8
4.8
4.5
4.4

1,602.43
1,594.58
1,692.85
1,741.56

Source: The Bank of Korea

Economic Bulletin

65

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 7
8
9
10
11
12

50,600.6
51,981.0
53,303.9
52,976.5
54,254.5
59,300.7

306,584.4
304,538.7
307,067.8
310,565.5
316,330.9
323,725.9

1,378,914.3
1,386,101.1
1,395,719.2
1,403,984.2
1,426,165.1
1,436,298.3

1,801,540.6
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
2
3

65,054.7
66,563.8
65,643.6

381,218.2
387,858.6
386,015.4

1,574,215.8
1,595,403.8
1,6075,896.1

2,019,563.5
2,041,164.1
2,058,117.7

Y-o-Y change (%)
2008
2009

7.7
18.1

-1.8
16.3

14.3
10.3

11.9
7.9

2008 7
8
9
10
11
12

6.5
8.7
9.1
7.3
11.1
17.8

1.4
2.2
2.7
4.2
5.5
5.2

14.8
14.7
14.5
14.2
14.0
13.1

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
2
3

1.6
5.6
0.0

15.0
15.9
12.6

9.3
9.4
9.3

8.1
8.6
8.9

P: Preliminary
Source: The Bank of Korea

66

May 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 7
8
9
10
11
12

1,008.5
1,081.8
1,187.7
1,291.4
1,482.7
1,257.5

1,019.1
1,041.5
1,130.4
1,326.9
1,390.1
1,373.8

932.9
987.9
1,144.2
1,306.0
1,553.8
1,393.9

954.2
953.0
1,060.6
1,327.1
1,435.1
1,503.3

1,571.0
1,590.3
1,707.2
1,664.4
1,912.6
1,776.2

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
3
4

1,156.5
1,158.4
1,130.8
1,115.5

1,138.8
1,157.1
1,137.6
1,117.1

1,287.0
1,299.3
1,217.7
118,638.0

1,248.3
1,281.7
1,255.8
1,195.3

1,614.6
1,569.2
1,518.2
1,479.3

1,627.5
1,584.5
1,544.9
1,501.7

Y-o-Y change (%)
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 7
8
9
10
11
12

9.2
15.1
29.0
42.3
59.5
34.0

10.9
11.5
21.2
44.9
51.6
47.7

20.4
22.0
43.6
65.1
83.6
67.3

26.3
19.2
30.8
67.8
73.7
81.5

24.0
24.0
31.0
27.1
39.4
28.6

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
3
4

-15.5
-23.6
-17.9
-17.2

-15.4
-19.1
-22.2
-16.8

-15.4
-15.7
-13.9
-14.2

-16.1
-17.1
-16.0
-11.9

-8.7
-18.7
-16.4
-17.2

-9.3
-13.4
-18.9
-15.2

Source: The Bank of Korea

Economic Bulletin

67

Editor-in-Chief
Yoon, Yeo-Kwon (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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