Vol. 33 | No.

1

Republic of Korea

Economic Bulletin
The Green Book : Current Economic Trends
Overview

3

1. Global economy

4

2. Private consumption

8

3. Facility investment

12

4. Construction investment

14

5. Exports and imports

16

6. Mining and manufacturing production

18

7. Service sector activity

20

8. Employment

22

9. Financial markets
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
Comprehensive measures to counter inflation

42

Economic News Briefing

46

Statistical Appendices

51

The Green Book
Current Economic Trends
Overview
Korea’s real GDP growth returned to normal, as domestic conditions such as employment
and household income continued to improve amid brisk exports.
Mining and manufacturing production in November gained 1.4 percent month-on-month,
with the manufacturing sector posting strong performance across the board, while service
output rose for the second consecutive month amid recovery in consumption demand.
Consumer goods sales posted a month-on-month increase for a second month in a row in
November, backed by increasing sales of durable goods such as automobiles.
Facilities investment stayed on a downward track month-on-month in November, as once
soaring machinery investment fell in the process of returning to normal. Construction
completed shifted to a rise month-on-month in five months, affected by a budget spending
increase at the end of the year.
Although rising raw material prices pushed up imports in terms of value in December,
exports rose at a faster pace compared with the previous month, leading to an expansion in
trade surplus.
Employment continued to improve in November, as the total number of workers hired
posted a year-on-year gain of more than 300,000 for the second straight month, and the
unemployment rate declined from a month earlier.
The consumer price in December climbed at a faster pace month-on-month from 3.3 percent
to 3.5 percent affected by rising international oil prices. Despite stable core consumer prices,
which went up 2.0 percent, basic necessities prices accelerated an increase from 3.6 percent
to 3.9 percent spurred by surging vegetable and oil product prices.
In December stock prices rose and foreign exchange rates fell, despite looming North Korean
risks and continuing worries over the European sovereign debt crisis, as expectations of
global economic recovery grew.
Housing prices turned to an increase in the Seoul metropolitan area in December for the first
time in eight months, while rental prices continued to rise, however at a slightly slower pace
compared with the previous month.
To sum up, although the global economy has made a steady recovery, there are still
uncertainties, as the possibility of the European fiscal crisis and danger from North Korea
linger, and inflationary pressure in emerging economies including China rises in line with
volatile international commodity prices and global liquidity excess.
The Korean government will go on with macroeconomic policies which facilitate sustainable
growth, while renewing efforts to restructure the economy and monitor the risk factors. On
the other hand, the government will be fully prepared for commodity and necessity price
increases so that they will not lead to inflationary expectations.
Economic Bulletin

3

1. Global economy
The global economy is expected to post steady recovery, as major economies as well as
emerging countries including China continued an upward track. However, there are growing
uncertainties, as international oil prices has been on the rise and worries over China’s
inflation have increased amid persisting European debt concerns.

US

US real GDP in the third quarter of 2010 has been revised up to 2.6 percent (annualized q-oq), with signs of recovering industrial production detected.
In November, while retail sales slowed down an increase, up 0.8 percent month-on-month,
industrial production rebounded 0.4 percent, and the ISM manufacturing index rose.
ISM manufacturing index (base=50)
56.2 (Jun 2010)

55.5 (Jul)

56.3 (Aug)

54.4 (Sep)

56.9 (Oct)

56.6 (Nov)

57.0 (Dec)

In November, both new and existing home sales shifted to an increase month-on-month by
5.5 percent and 5.6 percent, respectively.
The Federal Open Market Committee announced on December 12, 2010 that it would carry
out QE2 of US$ 600 billion bond buying as planned, as it confirmed that the economic
recovery, although steady, was not strong enough to lower the unemployment rate.
(Percentage change from previous period)
2009

20101

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Oct

Nov

Real GDP2

-2.6

-4.9

-0.7

1.6

5.0

3.7

1.7

2.6

-

-

- Personal consumption expenditure

-1.2

-0.5

-1.6

2.0

0.9

1.9

2.2

2.4

-

-

- Corporate fixed investment

-17.1

-35.2

-7.5

-1.7

-1.4

7.8

17.2

10.0

-

-

- Construction investment for housing

-22.9

-36.2

-19.7

10.6

-0.8

-12.3

25.7

-27.3

-

-

Industrial production

-9.3

-4.7

-2.7

2.0

1.7

1.8

1.7

1.4

-0.2

0.4

Retail sales

-6.3

-1.7

0.0

1.9

1.5

2.2

1.1

0.8

1.7

0.8

5.4

-2.2

3.7

10.5

13.1

-13.9

8.4

-25.3

-2.2

5.6

New non-farm payroll employment
(thousand)3

-395

-753

-477

-261

-90

87

190

-30

172

39

Consumer prices

-0.3

-0.6

0.5

0.9

0.6

0.4

-0.2

0.4

0.2

0.1

Existing home sales

1. Preliminary
2. Annualized rate (%)
3. Monthly average
Source: US Department of Commerce

4

January 2011

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

China’s economy, while both domestic demand and exports continued to rise, experienced
liquidity expansion, which led to growing worries over inflation. The Chinese government took
tightening measures such as a 25 basis point rate hike on December 25, 2010 and a reserve
requirement ratio increase of 50 basis points on December 10, in line with rising consumer and
producer prices, up 5.0 percent and 6.0 percent, respectively.
M2 growth (y-o-y, %)
18.5 (Jun 2010)

17.6 (Jul)

19.2 (Aug)

19.0 (Sep)

19.3 (Oct)

19.5 (Nov)

(Percentage change from same period in previous year)
2009
Real GDP

Annual

Q1

Q2

20101
Q3

Q4

Q1

Q2

Q3

Oct

Nov

9.1

6.2

7.9

9.1

10.7

11.9

10.3

9.6

-

-

Industrial production

11.0

5.1

9.1

12.4

18.0

19.6

17.6

13.5

13.1

13.3

Fixed asset investment (accumulated)

30.5

28.6

33.6

33.3

30.5

26.4

25.5

24.5

24.4

24.9

Retail sales

15.5

14.9

15.0

15.4

16.9

17.9

18.5

18.4

18.6

18.7

Exports

-16.0

-19.7

-23.4

-20.3

0.2

28.7

40.9

32.5

22.9

34.9

Consumer prices

-0.7

-0.6

-1.5

-1.3

0.7

2.2

2.9

3.5

4.4

5.1

Producer prices

-5.4

-4.6

-7.2

-7.7

-2.1

5.2

6.8

4.5

5.0

6.1

1. Preliminary
Source: China National Bureau of Statistics

Japan

Japan’s real GDP growth has been revised up to 1.1 percent quarter-on-quarter in the third
quarter of 2010. Although exports kept decelerating a rise, industrial production rebounded
in six months in November along with increasing retail sales, showing signs of improving
domestic demand.
(Percentage change from previous period)
2009
Annual

Real GDP

20101

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Oct

Nov

-6.3

-5.4

2.7

-0.3

1.4

1.7

0.7

1.1

-

-

Industrial and mining production

-21.8

-20.1

6.6

5.3

5.9

7.0

1.5

-1.8

-2.0

1.0

Retail sales (y-o-y, %)

-2.32

-3.9

-2.8

-1.9

-0.7

3.8

3.7

3.2

-0.2

1.3

Exports (y-o-y, %)

-34.2

-47.8

-39.9

-35.5

-8.7

44.8

35.2

19.0

8.8

-

-1.4

-0.1

-1.0

-2.2

-2.0

-1.2

-0.9

-0.8

0.2

0.1

Consumer prices (y-o-y, %)
1. Preliminary
Source: Japan’s Statistics Bureau and Statistics Centre

Eurozone

Eurozone’s real economy continued to recover, while there were worries over a possible
European fiscal crisis in the zone’s major economies as well as in peripheral ones. The
European Council agreed to introduce a permanent crisis management mechanism on
December 16, 2010. Moody’s degraded Ireland’s sovereign rating by five notches to Baa1 on
December 20, 2010, while Fitch cut the credit ratings of Portugal and Hungary on December 23.
(Percentage change from previous period)
2009

Real GDP
Industrial production
Retail sales
Exports (y-o-y, %)
Consumer prices (y-o-y, %)
1. Preliminary
Source: Eurostat

6

January 2011

20101

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

-4.0

-2.5

-0.1

0.4

0.2

0.4

1.0

-14.8

-9.3

-1.7

2.7

1.3

2.4

2.3

Oct

Nov

0.4

-

-

0.9

0.6

-

-2.4

-1.1

-0.1

-0.3

0.4

0.5

0.0

0.5

0.0

-

-18.1

-21.1

-22.7

-18.7

-9.3

12.9

22.3

22.7

20.2

-

0.3

1.0

0.2

-0.4

0.4

1.1

1.5

1.7

1.9

1.9

1-4

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

1-5

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

1-6

Eurozone GDP growth and industrial production
Source: Eurostat

Economic Bulletin

7

2. Private consumption
Private consumption (preliminary GDP) increased 1.3 percent quarter-on-quarter and 3.3
percent year-on-year in the third quarter of 2010.
(Percentage change from same period in previous year)
2008

Private consumption2
(Seasonally adjusted)3
1. Preliminary
2. National accounts
Source: The Bank of Korea

2009

2010 1

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

1.3

0.2

-4.4

-1.0

0.7

5.8

6.3

3.7

3.3

-

-

0.3

3.3

1.7

0.4

0.7

0.8

1.3

3. Percentage change from previous period

Consumer goods sales increased for the second consecutive month in November, as the sales of
durable and non-durable goods shifted to a rise from the previous month, the former from a 2.2
percent drop to a 6.5 percent increase, the latter from a 0.7 percent fall to a 2.9 percent rise.
On a month-on-month basis, consumer goods sales gained 2.9 percent backed by the brisk
sales of non-durable goods, in particular automobiles, which posted a 6.5 percent increase,
while semi-durable goods sales went down 1.5 percent due to a high base effect.
On a year-on-year basis, the index rose 6.9 percent, as the sales of durable goods such as
automobiles, semi-durable goods such as clothing, and non-durable goods such as gasoline
all increased.
(Percentage change from same period in previous year)
2009

Consumer goods sales
(Seasonally adjusted)

2

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

5

4

2010 1

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Oct

Nov

2.6

-4.7

1.5

2.8

10.8

9.9

4.9

7.3

4.2

6.9

-

1.0

5.1

0.3

4.1

0.5

0.0

2.8

0.2

2.9

8.1

-11.9

5.7

7.9

33.9

29.5

5.4

16.7

14.1

12.3

21.8

-20.6

20.1

24.1

76.9

48.6

-2.1

12.0

6.1

4.8

0.3

-1.5

-0.6

-0.7

3.4

2.7

6.9

7.2

12.6

10.2

1.2

-1.4

0.5

1.9

4.1

3.3

3.5

2.9

-4.7

2.7

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 large discounters and supermarkets stayed sluggish, while those at department
stores and convenience stores kept strong along with brisk non-store retailing.
(Percentage change from same period in previous year)
2010 1

2009

- Department stores
- Large discounters
- Specialized retailers

2

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Oct

Nov

3.3

-0.8

0.4

4.2

9.1

9.0

10.4

8.0

12.3

10.9

-2.0

-4.4

-2.9

-3.4

3.2

5.9

3.7

7.4

-1.4

0.5

2.9

-6.6

2.6

3.5

12.6

9.7

1.7

7.0

3.7

6.8

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

8

January 2011

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 is projected to continue an upward trend considering positive
advanced estimates, increasing household income, and improving consumer sentiment.
Household income posted a steady increase while employment continued to recover.
Household income (y-o-y, %)
-0.7 (Q3 2009)

4.9 (Q4)

7.3 (Q1, 2010)

7.7 (Q2)

6.1 (Q3)

Employment (y-o-y, thousand)
473 (Jul 2010)

386 (Aug)

249 (Sep)

316 (Oct)

303 (Nov)

The consumer sentiment index has been well above the base, 100, which reflects positive
attitudes of the consumers towards the economy.
Consumer Sentiment Index (CSI, base=100)
112 (Jul 2010)

110 (Aug)

109 (Sep)

108 (Oct)

110 (Nov)

109 (Dec)

Both domestic credit card spending and department store sales continued a steady rise
year-on-year, with the former rising 14.5 percent and the latter 9.7 percent.
Gasoline sales and consumer goods imports posted a slower increase in advanced estimates.
Value of credit card use (y-o-y, %)
17.1 (Jul 2010)

17.2 (Aug)

10.6 (Sep)

19.5 (Oct)

16.0 (Nov)

14.5 (Dec)

Department store sales (y-o-y, %)
10.1 (Jul 2010)

8.5 (Aug)

6.4 (Sep)

13.3 (Oct)

10.1 (Nov)

9.7 (Dec)

Large discounter sales (y-o-y, %)
8.2 (Jul 2010)

3.9 (Aug)

18.0 (Sep)

0.0 (Oct)

1.7 (Nov)

2.6 (Dec)

Domestic sales of gasoline (y-o-y, %)
5.3 (Jul 2010)

8.6 (Aug)

10.5 (Sep)

-0.7 (Oct)

11.6 (Nov)

-0.8 (Dec)

Consumer goods imports (y-o-y, %)
28.3 (Jul 2010)

31.7 (Aug)

9.4 (Sep)

24.6 (Oct)

31.8 (Nov)

15.5 (Dec)

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

It is likely that consumer spending will grow at a limited pace given price increases in raw
materials and agricultural products, which can possibly raise necessities prices, and
spreading foot and mouth disease.
Consumer prices (y-o-y, %)
2.6 (Jun 2010)

2.6 (Jul)

2.6 (Aug)

3.6 (Sep)

4.1 (Oct)

3.3 (Nov)

3.5 (Dec)

Dubai crude (US$/barrel)
74.1 (Jun 2010)

10

January 2011

72.6 (Jul)

74.2 (Aug)

75.2 (Sep)

80.3 (Oct)

83.6 (Nov)

88.9 (Dec)

2-4

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

2-5

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

2-6

Consumer sentiment index
Source: The Bank of Korea

Economic Bulletin

11

3. Facility investment
Facility investment (preliminary GDP) in the third quarter of 2010 posted a quarter-on-quarter
increase of 5.5 percent and a year-on-year gain of 24.3 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

2009

20101

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

-1.0

-9.1

-23.1

-17.3

-7.0

13.3

29.9

30.2

24.3

-

-

-10.5

9.0

10.8

5.3

2.4

9.1

5.5

-1.8

-13.0

-23.2

-21.5

-14.8

10.0

32.5

38.7

36.6

1.8

4.7

-22.6

-2.9

22.9

24.2

19.4

4.8

-11.2

3. Percentage change from previous period

Facility investment in November, while rising 4.5 percent year-on-year, fell 0.6 percent monthon-month, as once soaring machinery investment led by semiconductor equipment continued
to decelerate a rise.
(Percentage change from same period in previous year)
2008

Facility investment
(Seasonally adjusted)

2009

2010 1

Annual

Annual

Q4

Q1

Q2

Q3

Sep

Oct

Nov

0.8

-8.2

10.0

25.5

24.5

27.6

11.6

9.7

4.5

-

-

12.1

1.4

6.0

7.0

-3.7

-9.7

-0.6

- Machinery

0.6

-12.8

8.7

29.3

32.2

36.8

19.2

13.3

4.1

- Transportation equipment

1.1

11.7

15.0

11.9

0.0

-0.8

-10.5

-2.6

6.4

-13.8

-11.8

20.0

10.5

24.2

-0.7

4.5

11.4

-14.2

2

Domestic machinery orders
(Seasonally adjusted)

-

-

-9.9

-1.4

16.7

-0.8

5.9

-15.9

-3.4

5.0

61.7

-27.2

-43.7

-41.2

-72.2

-16.2

20.8

-76.5

-15.5

-19.9

35.2

22.9

34.9

21.9

7.1

10.8

3.7

- Machinery imports

6.4

-16.6

7.2

48.1

51.4

40.0

24.5

33.0

21.4

Facility investment
adjustment pressure3

-1.7

-4.0

12.8

21.7

14.4

5.7

-2.4

7.3

4.3

2

- 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 (machinery imports data)

Facility investment is projected to improve given rising capital goods imports and positive
investment sentiment, but the increase is expected to be limited with once soaring
investment in semiconductor equipment getting back to normal.

2010
Jul

Aug

Sep

Oct

Nov

Dec

Capital goods imports (US$ billion)

1.19

1.18

1.15

1.20

1.23

1.311

Business survey indices (base=100) for
manufacturing facility investment projections

106

106

106

105

102

103

1. Preliminary
Source: The Bank of Korea

12

January 2011

3-1

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

3-2

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

3-3

Machinery imports
Source: Korea International Trade Association (KITA)

Economic Bulletin

13

4. Construction investment
Construction investment (preliminary GDP) in the third quarter of 2010 rose 1.3 percent
quarter-on-quarter, while falling 2.3 percent year-on-year.
(Percentage change from same period in previous year)
2008

2009

Annual

Annual

Q1

Q2

-2.8

4.4

2.8

5.1

-

-

5.9

1.8

- Building construction

-4.6

-1.8

-9.6

-2.4

- Civil engineering works

-0.2

13.3

26.1

15.7

Construction investment

2

(Seasonally adjusted)3

20101
Q3

Q4

Q1

Q2

Q3

4.4

5.0

2.3

-2.9

-2.3

-0.7

-0.1

1.3

-3.6

1.3

1.2

2.5

1.7

-6.3

-9.7

9.7

7.5

3.1

1.1

8.5

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

Construction completed (constant value) in November, helped by an increase in SOC budget
spending at the end of 2010, posted a month-on-month rise of 2.4 percent, turning upward
in five months, while dropping 10.1 percent year-on-year.
(Percentage change from same period in previous year)
2008

Construction completed(constant value)
(Seasonally adjusted)

2

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

2

- Building construction
- Civil engineering works
Building permit area

2010 1

2009

Annual

Annual

Q4

-8.1

1.7

5.0

-

-

Q2

Q3

Sep

Oct

Nov

2.0

-3.9

-3.8

-14.7

-8.9

-10.1

-1.4

5.4

-2.2

-2.9

-3.5

-9.7

2.4

Q1

-10.3

-6.5

0.7

-0.1

-8.5

-11.2

-19.5

-13.0

-13.7

-4.0

16.2

11.3

4.8

2.8

8.1

-7.5

-2.7

-4.9

-7.6

3.0

11.6

-6.9

-6.6

-5.0

-18.4

-59.6

-48.7

-

-

19.8

-22.5

11.5

-0.2

27.7

-56.7

56.4

-15.4

-16.0

17.0

-0.4

60.1

-2.5

11.1

-38.9

-48.8

13.5

41.9

3.7

-14.2

-51.5

-8.7

-46.3

-80.3

-48.5

-20.1

-12.9

13.1

36.5

47.4

-14.3

-33.0

15.9

25.6

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

Construction investment in November posted a month-on-month rise, affected by temporary
factors such as increased year-end SOC spending, despite ongoing low investment and
decreasing construction orders. However, recent signs of recovering housing markets may
lift investment sentiment.

14

January 2011

4-1

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

4-2

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

4-3

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

Economic Bulletin

15

5. Exports and imports
Exports in December increased 23.1 percent (preliminary) year-on-year to US$44.34 billion.
Backed by continuing global economic recovery, exports continued to post a more than 20
percent rise, with average daily exports increasing month-on-month.
By export category, major items such as steel, petroleum products, automobiles, and
semiconductors posted a substantial increase.
Major export increase (%)
Steel (34.4), petroleum products (34.2), automobiles (24.5), semiconductors (22.7)

By regional category, exports to both emerging countries such as China and developed
countries such as the US and Japan all soared, while exports to EU shifted to a rise from the
previous month’s drop.
Regional export increase (preliminary, y-o-y, %)
US (30.4), Japan (31.2), China (21.9), ASEAN (19.9), EU (12.8)
(US$ billion)
2009

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

2010

Annual

Q1

Q2

Q3

365.53

74.42

90.36

94.78 103.97 467.40 101.09 120.25 117.12 128.95

-13.9

-25.2

-21.1

-17.6

Q4

Annual

11.7

28.6

1.49

1.69

Q1

Q2

Q41

35.8

33.1

23.6

24.0

1.51

1.76

1.69

1.30

1.10

1.30

1.32

323.09

71.42

73.97

84.85

-25.8

-32.7

-35.6

-31.0

1.4

31.8

37.4

43.0

1.16

1.06

1.06

1.18

1.33

1.54

1.46

1.55

92.85 425.68

Q3

Nov

Dec1

41.29

44.34

21.5

23.1

1.79

1.72

1.81

98.13 105.74 105.69 116.12

38.50

40.60

24.6

25.1

30.8

23.3

1.52

1.61

1.60

1.66

1. Preliminary
Source: Korea Customs Service

Imports in December increased 23.3 percent (preliminary) year-on-year to US$40.60 billion.
Capital goods imports soared amid the domestic economy recovering, while raw material imports
jumped due to rising international commodity prices and growing winter-season demand.
Import increase by category (preliminary, y-o-y, %)
Raw materials (20.8), capital goods (30.9), consumer goods (15.5)

The current account surplus in December (preliminary) was US$3.74, widening at a faster
pace compared with the previous month. The annual surplus hit a record high of US$41.72.
(US$ billion)
2009

Trade Balance
1. Preliminary
Source: Korea Customs Service

16

January 2011

2010

Annual

Q1

Q2

Q3

Q4

Annual1

Q1

Q2

Q3

Q41

Nov

Dec1

40.45

3.00

16.39

9.94

11.12

41.72

2.96

14.51

11.43

12.83

2.67

3.74

5-1

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

5-2

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

5-3

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

Economic Bulletin

17

6. Mining and manufacturing production
Mining and manufacturing production in November rose 1.4% month-on-month and 10.4%
year-on-year as the manufacturing sector posted strong performance across the board.
By business category, most productions including those of semiconductors and parts (up
1.3%) and metal working (up 6.9%) rose month-on-month, while those of audio-visual
communications equipment (down 1.6%) and pharmaceuticals (down 2.9%) went down.
As the month-on-month increase of shipment (up 1.6%) exceeded that of inventories (up
0.1%), the manufacturing inventory-shipment ratio fell for the first time in five months.
By business category, the shipments of semiconductors and parts (up 2.1%) and metal
working (up 8.3%) increased month-on-month, while those of audio-visual communications
equipment (down 6.3%) and computers (down 4.5%) declined. The inventories of audiovisual communications equipment (up 24.6%) and machinery (up 7.7%) climbed month-onmonth, while those of semiconductors and parts (down 3.1%) and refined petroleum
products (down 7.6%) fell.
The average operation ratio of the manufacturing sector rose 1.2 percentage points to 80.9
percent from the previous month, as the operating ratios of automobiles and semiconductors
picked up.
(Percentage change from same period in previous year)
2009
Sep

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

Mining and
manufacturing
activity2

20101
Q4

Q1

Q2

Q3

Sep

Oct

Nov

-

4.2

1.3

5.1

5.0

2.1

-0.3

-4.2

1.4

(y-o-y)

-0.8

11.1

16.2

25.8

19.5

11.9

4.0

13.5

10.4

- Manufacturing

-0.9

11.5

16.8

26.8

20.2

12.2

4.1

13.6

10.6

7.8

14.9

46.3

46.1

27.0

19.9

15.8

12.5

11.1

∙ICT

3

∙Automobiles

-6.8

32.5

14.7

51.0

35.7

16.5

2.8

21.8

12.3

Shipment

-1.7

8.8

12.8

21.8

17.2

11.3

3.8

13.7

11.0

- Domestic demand

-1.8

12.6

12.3

21.2

15.4

8.3

-0.8

10.5

8.0

- Exports

-1.7

4.0

13.3

22.5

19.7

15.4

10.1

18.0

15.0

Inventory

4

Manufacturing Average operation ratio (%)
activity
Production capacity

-8.0

-14.2

-8.0

6.6

15.6

18.4

18.4

18.3

16.2

74.6

79.9

78.4

80.5

83.0

82.6

81.5

79.7

80.9

3.1

3.6

4.0

5.1

5.8

6.5

6.5

6.3

6.3

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

Mining and manufacturing production is expected to continue an upward track, backed by
brisk exports, and strong production of automobiles and semiconductors.
Average daily exports (US$ billion)
1.66 (July 2010)

1.55 (Aug)

1.88 (Sep)

1.84 (Oct)

1.72 (Nov)

1.81 (Dec1)

Automobile production (thousand)
378 (July 2010)
1. Preliminary

18

January 2011

282 (Aug)

339 (Sep)

387 (Oct)

389 (Nov)

397 (Dec1)

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
Although entertainment, cultural & sports services fell 5.0 percent due to the previous
month’s high base effect, service activity in November increased 0.8 percent month-onmonth as robust domestic consumption supported wholesale & retail sales, publishing &
broadcasting services, and educational services.
Despite sluggishness in real estate & renting, professional, scientific & technical services,
and educational services, service activity in November rose 3.6 percent year-on-year as
financial services and transportation services showed solid growth helped by increased
equity transactions and strong exports.
(Percentage change from same period in previous year)
Weight

2009
Annual

Q1

2010 1

Q2

Q3

Q4

Q1

Q2

Q3

Oct

Nov

Service activity index

100

2.0

-0.3

2.4

1.9

3.7

5.7

4.0

2.3

3.0

3.6

- Wholesale & retail

21.8

-0.4

-4.8

-2.2

0.3

5.4

7.4

5.5

4.9

3.5

6.2

- Transportation services

9.0

-6.6

-12.7

-10.0

-4.8

1.4

13.9

13.8

9.7

10.8

7.8

- Hotels & restaurants

7.7

-1.5

-2.6

-0.6

-2.5

-0.2

1.5

0.9

1.8

4.6

1.6

- Information & communication services

8.4

0.7

-1.4

1.6

1.4

1.8

1.2

0.4

1.7

2.1

3.7

15.3

8.0

6.9

10.3

9.0

5.7

6.5

2.4

1.9

7.0

8.9

- Real estate & renting

6.3

5.3

-4.2

-2.2

6.7

21.3

10.4

-2.7

-16.2

-23.1

-24.1

- Professional, scientific & technical services

4.8

1.0

-1.7

3.8

0.0

2.0

3.1

2.1

-5.2

-5.0

-2.8

- Business services

2.9

-3.0

-4.9

-6.2

-0.8

0.0

5.4

7.9

7.0

7.3

9.7

10.8

2.8

9.4

16.5

-3.7

-9.6

-0.8

1.0

0.0

-0.4

5.0

- Healthcare & social welfare services

6.0

10.4

8.9

8.9

10.4

13.2

11.5

11.1

8.5

5.7

5.1

- Entertainment, cultural & sports services

2.9

-0.5

1.4

0.7

0.0

-3.8

-3.5

-0.2

-0.2

12.8

0.2

- Membership organizations

3.8

-2.4

-3.8

-4.8

-1.4

2.4

1.3

6.0

5.0

4.4

5.0

- Sewerage & waste management

0.4

3.7

0.1

9.0

6.0

-0.2

7.2

5.3

0.2

7.3

3.0

- Financial & insurance services

- Educational services

1. Preliminary
Source: Statistics Korea

Service activity in December is expected to show a gradual increase from the previous
month as domestic consumption steadily increases and the Korean stock price index shows
strong performance. Meanwhile, service activity is expected to be weighed down by weak
construction markets and the outbreak of foot-and-mouth disease.

20

January 2011

es

usin ty m
ess ana
sup gem
port ent
serv &
ices
Edu
cati
ona
l se
rvic
es
Hea
lthc
are
&s
ocia
l we
Ente
serv lfare
rtai
ices
nme
nt, c
ultu
ral &
sp
Me
serv orts
& o mbersh
ices
ther ip o
pers rgan
ona izat
l se ions
rvic , re
es
pair
Sew
mat erage
eria
,
w
ls re aste
cove ma
ry & nage
rem men
edi t,
acti ation
vitie
s

Prof

& re
ntin
g
ess
iona
l
,
tech scie
nica ntif
Bus
l se ic &
ines
rvic
s fa
es
cili
b

rvic

s

ns

rant

ion

atio

e se

tate

ranc

l es

insu

stau

unic

& re

omm

els

ex

tail

rtat

& re

spo

ale

Tran

oles

&c

Rea

l&

tion

ncia

rma

Fina

Info

Hot

Wh

7-3

l ind

7-2

Tota

7-1
Service industry

Source: Statistics Korea (service industry activity trend)

Wholesale and retail sales

Source: Statistics Korea (service industry activity trend)

November 2010 service industry by business

Source: Statistics Korea (service industry activity trend)

Economic Bulletin

21

8. Employment
The number of workers on payroll in November increased by 303,000 from a year earlier,
while the employment rate (seasonally adjusted) rose by 0.1 percentage point year-on-year
to 59.2 percent.
By industry, employment in manufacturing (up 284,000), construction (up 50,000) and
services (up 32,000) climbed while that in agriculture, forestry & fishery (down 50,000)
declined. Hiring in manufacturing maintained a high growth rate, rising more than 0.2 million
for the fifth consecutive month.
Despite decreasing employment in public administration (down 129,000), the service sector
continued to increase employment, helped by a rise in health & welfare (up 157,000),
business assistance (up 99,000), and professional, scientific & technical services (up
60,000).
By status of workers, despite a decrease in daily workers (down 33,000) and temporary
workers (down 187,000), wage workers (up 511,000) continued to expand growth as the
number of regular workers (up 731,000) increased. Non-wage workers (down 207,000)
including self-employed workers (down 166,000) continued to decline.
2008

2009

Annual Annual Nov
Number of employed (million)

Q1

2010
Q2

Q3

Q4

Q1

Q2

Q3

Oct

Nov

23.58 23.51 23.81 22.90 23.74 23.75 23.63 23.04 24.17 24.12 24.17 24.11

Employment rate (%)

59.5

58.6

59.1

57.4

59.3

59.1

58.7

57.0

59.6

59.3

59.4

59.2

(seasonally adjusted)

59.5

58.6

58.5

58.8

58.6

58.7

58.5

58.3

58.9

58.9

58.6

58.5

Employment growth (y-o-y, thousand)

145

-72

10

-146

-134

-1

-6

132

433

369

316

303

(Excluding agriculture, forestry & fishery)

182

-34

141

-160

-109

24

110

296

51.8

414

371

353

- Manufacturing

-52

-126

-43

-163

-151

-143

-49

61

172

262

241

284

- Construction

-37

-91

-115

-43

-113

-103

-107

-61

44

92

94

50

- Services

260

179

294

38

154

261

261

313

325

83

54

32

- Agriculture, forestry & fishery

-37

-38

-151

14

-25

-25

-116

-164

-85

-45

-55

-50

- Wage workers

236

247

413

73

175

356

385

371

623

541

488

511

∙Regular workers

386

383

492

318

313

386

515

651

766

671

652

731

∙Temporary workers

-93

22

186

-136

-5

125

105

-37

42

-26

-81

-187

∙Daily workers

-57

-158

-264

-108

-133

-155

-235

-243

-185

-104

-84

-33

-92

-319

-424

-220

-309

-357

-391

-239

-189

-172

-172

-207

-79

-259

-307

-197

-286

-276

-279

-106

-91

-130

-146

-166

- Male

96

31

81

-23

24

34

89

117

188

207

228

181

- Female

48

-103

-91

-124

-158

-34

-94

15

245

163

87

122

- 15 to 29

-119

-127

-79

-212

-99

-123

-77

-12

-58

-44

-42

-53

- 30 to 39

-26

-173

-142

-159

-213

-169

-149

-42

-13

21

19

17

- 40 to 49

64

-24

-53

8

-27

-30

-46

-21

48

40

25

48

- 50 to 59

207

198

228

193

156

211

230

251

342

295

290

274

18

54

35

23

49

109

37

-44

114

57

23

18

- Non-wage workers
∙Self-employed workers

- 60 or more
Source: Statistics Korea

22

January 2011

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 persons in November decreased by 82,000 year-on-year to
737,000 as people who applied for the census jobs but were on the waiting list gained
employment. The unemployment rate (seasonally adjusted) fell 0.3 percentage points to
3.0 percent.
By gender, both male unemployment (down 51,000) and female unemployment (down
30,000) declined.
By age, unemployment decreased in all age brackets except seniors aged 50 to 59 (up 1,000)
and 60 or more (up 12,000). The youth unemployment rate dropped 1.3 percentage points
year-on-year, landing at 6.4 percent.

2008

2009

2010

Annual

Q4

Annual Nov

Q1

Q2

Q3

Q4

Q2

Q3

Sep

Oct

Nov

Number of unemployed (thousand)

769

757

889

819

908

943

886

817 1,130 868

Unemployment growth (y-o-y, thousand)

-14

24

119

69

107

176

134

60

- Male

-12

25

80

37

83

116

95

-1

-1

40

32

24

60

39

- Female

Q1

873

857

832

737

-75

-13

32

33

-82

25

83 -47

-48

-40

-5

-51

36

139 -29

-35

72

38

-30

222

Unemployment rate (%)

3.2

3.1

3.6

3.3

3.8

3.8

3.6

3.3

4.7

3.5

3.5

3.4

3.3

3.0

(Seasonally adjusted)

3.2

3.2

3.6

3.6

3.5

3.9

3.7

3.5

4.3

3.4

3.6

3.7

3.6

3.2

- 15 to 29

7.2

7.0

8.1

7.7

8.6

8.0

8.1

7.6

9.5

7.7

7.6

7.2

7.0

6.4

- 30 to 39

3.1

3.3

3.6

3.4

3.7

3.9

3.5

3.3

3.9

3.6

3.5

3.5

3.4

3.0

- 40 to 49

2.1

2.0

2.4

2.3

2.5

2.6

2.4

2.3

2.9

2.3

2.5

2.7

2.4

2.1

- 50 to 59

2.0

2.1

2.5

2.1

2.4

2.7

2.5

2.2

3.2

2.1

2.3

2.3

2.3

2.0

- 60 or more

1.2

1.1

1.6

1.3

1.6

1.9

1.6

1.5

5.8

2.1

2.0

1.9

1.8

1.7

Source: Statistics Korea

The economically inactive population in November was up 257,000 from a year earlier to
post 15,910,000. Meanwhile, the labor force participation rate (seasonally adjusted) was
down 0.1 percentage point year-on-year to 61.0 percent.
The number of workers quitting jobs due to housework (up 215,000), education (up 90,000),
and rest, time-off and leisure (up 4,000) increased, while those who quit jobs due to
childcare (down 103,000) decreased.

2008

2009

Annual Q4

Annual Nov

Q1

2010

Q2

Q3

Q4

Q1

Q2

Q3

Sep

Oct Nov

Economically inactive population (million) 15.25 15.37 15.70 15.65 16.09 15.35 15.53 15.83 16.25 15.49115.66 15.77 15.71 15.91
Labor force participation rate (%)

61.5 61.3 60.6 61.1 59.7 61.7 61.3 60.7 59.8 61.8 61.5 61.2 61.4 61.0

(seasonally adjusted)

61.5 61.2 60.6 60.7 60.9 60.9 61.0 60.6 61.0 61.0 61.1 60.9 60.8 60.5

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

297

372

447

451

514

445

374

- Childcare

63

53

40

6

78

48

19

- Housework

61

59

148

262

131

125

100

235

237

175

303

229

234

215

- Education

113

109

31

-40

90

58

11

-36

-74

23

46

54

37

90

- Old age

76

59

88

86

52

102

105

92

193

59

43

28

1

49

- Rest

31

99

123

127

162

112

94

123 -187

-27

15

68

-25

4

Source: Statistics Korea

24

January 2011

456

166

146

128

199

130

257

15 -118 -126 -149 -160 -125 -103

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 December rose with expectations of global economic recovery.
Despite a series of international and domestic anxiety factors such as financial instability in
the eurozone, concerns over China’s tightening policy, and geopolitical risk on the Korean
peninsula, KOSPI broke the 2000-point bar, fueled by positive economic sentiment amid
improving employment statistics and the Dow Jones industrial average hitting a year high
after strong US economic data.
Expecting continuing economic recovery, foreign investors expanded their net-buying
position on Korean shares, purchasing 3.6 trillion won in December.
(End-period, point, trillion won)
KOSPI
Nov 2010

Dec 2010

Stock price index

1,904.6

2,051.0

Market capitalization

1,058.6

KOSDAQ
Change1

Nov 2010

Dec 2010

Change1

+146.4 (+7.7%)

498.4

510.7

+12.3 (+2.5%)

1,141.9

+83.2 (+7.9%)

94.7

98.0

+3.2 (+3.4%)

Average daily trade value

6.7

6.0

-0.7 (-10.4%)

1.9

1.7

-0.2 (-10.5%)

Foreign stock ownership

32.2

32.9

+0.7 (+3.2%)

10.0

10.3

+0.3 (+3.0%)

1. Change from the end of the previous month

9.2 Exchange rate
The won/dollar exchange rate in December decreased 24.9 won from 1,159.7 won at the end
of November to wrap up the month at 1,134.8 won. The won/dollar exchange rate fell as
geopolitical tension on the Korean peninsula eased and export companies sold dollars at the
end of the year.
Despite the strong won, the won/yen exchange rate was up 14.6 won month-on-month as
concerns over China’s tightening policy and Japanese exporters’ dollar sales at the end of
the year contributed to the strong yen.
(End-period)
2006

2007

2008

2009

Dec

Dec

Dec

Dec

2010
Nov

Dec

Change1

Won/Dollar

929.8

936.1

1,259.5

1,164.5

1,159.7

1,134.8

2.6

Won/100Yen

783.4

828.6

1,396.8

1,264.5

1,379.0

1,393.6

-9.3

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

January 2011

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 increased in December amid concerns over rising inflationary pressure,
as the US Treasury Bond yield rallied 49 basis points in December helped by expectations of
economic recovery. In addition, worries over inflation and government’s announcement of
plans to impose Macro-prudential Stability Levy contributed to the rise.
(End-period)

Call rate (1 day)

2006

2007

2008

2009

2010

Dec

Dec

Dec

Dec

Oct

Nov

Dec

4.60

5.02

3.02

2.01

2.26

2.51

2.51

Change1
0

CD (91 days)

4.86

5.82

3.93

2.88

2.66

2.80

2.80

0

Treasury bonds (3 yrs)

4.92

5.74

3.41

4.44

3.25

3.19

3.38

+19

Corporate bonds (3 yrs)

5.29

6.77

7.72

5.56

4.03

4.03

4.27

+24

Treasury bonds (5 yrs)

5.00

5.78

3.77

4.98

3.86

3.88

4.08

+20

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

9.4 Money supply & money market
The M2 (monthly average) in October expanded 7.5 percent from a year earlier excluding
cash management accounts (CMAs), which were included in M2 since July 2009. Despite
rising private credit, the year-on-year M2 growth decelerated in October from the previous
month’s 7.9 percent due to a smaller money supply from overseas sectors affected by
increasing foreign direct investment (FDI).
(Percentage change from same period in previous year, average)
2008
M1

Annual

Q1

Q2

2009
Q3

20104

Q4

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Oct

Oct1

-1.8

-12.4

-0.1

2.1

5.0

16.3

10.8

17.6

18.9

17.8

14.5

10.7

10.8

9.0

405

M2

14.3

13.3

15.3

14.7

13.8

10.1

11.5

10.1

9.5

9.3

8.8

8.8

8.3

7.5

1,660

Lf 3

11.9

11.6

12.8

12.1

11.2 Upper 7

8.8

7.3

7.5

7.4

8.1

8.6

7.9

7.1

2,123

2

1. Balance at end October 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. Preliminary

In November, bank deposits turned to a decline as time deposits shifted to a decrease due
to the limited inflow of corporate funds into money market funds (MMFs). Decreasing
amounts of time deposits led by money outflows from local governments’ account also
contributed to the trend.
Despite declining redemption of equity funds, asset management company (AMC) deposits
slightly increased due to decelerating growth of money market funds (MMFs) affected by the
outflow of treasury surplus.
(Monthly change, end-period, trillion won)
2008

2009

Annual

Nov

Bank deposits

104.3

AMC deposits

63.0

1. Balance at end November, trillion won

28

January 2011

2010

Annual

Nov

Sep

Oct

Nov

Nov1

9.4

54.8

1.5

-3.3

13.7

-2.4

1,053

2.8

-27.6

4.4

-2.0

0.1

0.0

326

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 (preliminary) in November narrowed from the previous
month to US$1.93 billion.
The goods account surplus decreased to US$3.35 billion from the previous month’s
US$5.39 billion driven by an increase in imports following domestic economic recovery and
high commodity prices.
The service account deficit contracted to post US$490 million from the previous month’s
deficit of US$870 million due to improving balance of construction services.
The primary income account turned to a deficit of US$690 million from the previous month’s
US$660 million surplus as dividend payments increased substantially. The transfer income
account deficit remained at the similar level to the previous month, slightly down from
US$280 to US$240 million.
(US$ billion)
2009

2010

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Oct

Nov1

Jan-Nov1

Current account

32.79

4.54

11.56

8.61

8.08

0.26

8.57

9.41

4.89

1.93

25.06

- Goods balance

37.87

2.82

13.55

10.92

10.58

4.79

12.18

12.29

5.39

3.35

37.99

- Service balance

-6.64

-0.03

-1.29

-2.66

-2.66

-4.20

-2.11

-3.22

-0.87

-0.49

-10.88

- Income balance

2.28

0.39

-0.15

0.95

1.09

0.55

-1.01

1.30

0.66

-0.69

0.80

- Current transfers

-0.71

1.36

-0.55

-0.59

-0.93

-0.87

-0.05

-0.95

-0.28

-0.24

-2.84

Source: The Bank of Korea

The capital and financial account (preliminary) in November recorded a net outflow of
US$3.31 billion, down from the previous month’s outflow of US$5.87 billion.
Capital & financial account balance (US$ billion)
-0.16 (Q1 2010)

-9.10 (Q2)

-7.68 (Q3); -5.87 (Oct)

-3.31 (Nov)

The direct investment account narrowed the net outflow to register US$1.29 billion from the
previous month’s deficit of US$5.39 billion as locals’ overseas investment declined.
The portfolio investment account decelerated the inflow to post US$3.49 billion from
US$7.45 billion a month earlier as foreigners’ investments in the Korean stock market
decreased amid worries over financial instability in the eurozone and geopolitical risk on the
Korean peninsula.
The financial derivatives account marked a surplus of US$110 million as gains from overseas
financial derivative transactions increased.
The other investment account deficit decreased to US$3.88 billion from the previous month’s
US$5.22 billion due to non residents’ increasing redemption of short-term borrowings.
The current account in December is expected to expand the surplus, owing to an increase in trade
surplus and an improving primary income account affected by decreasing dividend payments.

30

January 2011

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
Despite stabilized public utility charges, consumer prices rose at a faster pace in December
as the prices of food and industrial products, and personal services fees rose. December
consumer prices rose 3.5 percent year-on-year and 0.6 percent month-on-month.
Core consumer prices, which exclude the prices of oil and agricultural products, remained
stable in December, rising 2.0 percent year-on-year and 0.3 percent month-on-month.
Consumer prices of basic necessities, a barometer of perceived consumer prices, were up
3.9 percent compared with the same month of the previous year.

Consumer price inflation
2009

2010

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Month-on-Month (%)

0.4

0.4

0.4

0.3

0.5

0.1

-0.2

0.3

0.3

1.1

0.2

-0.6

0.6

Year-on-Year (%)

2.8

3.1

2.7

2.3

2.6

2.7

2.6

2.6

2.6

3.6

4.1

3.3

3.5

Core consumer prices (y-o-y)

2.2

2.1

1.9

1.5

1.5

1.6

1.7

1.7

1.8

1.9

1.9

1.8

2.0

(m-o-m)

0.1

0.1

0.2

0.1

0.2

0.3

0.2

0.2

0.2

0.3

0.0

0.1

0.3

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

3.3

3.8

3.4

2.9

3.2

3.0

2.8

2.7

2.6

4.1

4.8

3.6

3.9

Source: Statistics Korea

Prices of agricultural, livestock and fishery products rose 1.7 percent month-on-month.
Despite falling vegetable prices, fruit and fish prices rose, resulting in an overall gain.
Prices of agricultural & livestock products in Dec (m-o-m, %)
Potato (27.9), mackerel (16.1), persimmon (12.5), corn (11.6), pear (8.2), green onion (-13.3), lettuce (-26.9),
leek (-15.5), carrot (-14.9)

Prices of industrial products extended gains month-on-month (up 1.2%), as those of durable
goods and oil products surged due to rising gold and oil prices.
International oil prices (Dubai crude, US$/barrel)
74.1(Jun)

72.6 (Jul)

74.2 (Aug)

75.2 (Sep)

80.3 (Oct)

83.6 (Nov)

88.9 (Dec)

Public utility charges fell 0.2 percent month-on-month due in particular to decreasing phone
charges. However, personal service charges posted a slight gain month-on-month (up 0.2%)
as a result of peak season surcharges imposed on international flight fares (up 5.0%).

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

Agricultural,
livestock & fishery
products

Industrial
products

Oil
products

Housing
rents

Public
utility

Personal
services

0.6

1.7

1.2

3.4

0.4

-0.2

0.2

Contribution (%p)

0.60

0.16

0.37

0.20

0.03

-0.03

0.06

Year-on-Year (%)

3.5

16.7

3.2

8.3

2.4

0.6

2.2

Contribution (%p)

3.51

1.40

1.03

0.48

0.22

0.10

0.75

Source: Statistics Korea

32

January 2011

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
In December, international oil and domestic oil product prices rose from the previous month.
International oil prices (Dubai crude) rose sharply to almost US$90 per barrel amid
expectations of economic recovery, as demand for heating oil rose due to unexpected cold
spells in Europe and speculative cash inflows increased.
(US$/barrel, period average)
2007

2008

2009

2010

Annual

Annual

Annual

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Dubai crude

68.4

94.3

61.9

74.1

72.6

74.2

75.2

80.3

83.6

88.9

Brent crude

72.8

97.5

61.7

74.9

75.7

77.2

77.9

83.2

85.8

91.8

WTI crude

72.3

99.9

61.9

75.3

76.3

76.6

75.3

81.9

84.4

89.2

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)

Domestic oil product prices rose due to higher exchange rates and international oil prices.
Won/dollar exchange rate (average)
1,167 (Sep 2010)

1,123 (Oct)

1,126 (Nov)

1,148 (Dec)
(Won/liter, period average)

2007
Annual

2008
Annual

2009
Annual

Jun

Jul

Aug

2010
Sep

Oct

Nov

Dec

Gasoline prices

1,526

1,692

1,601

1,715

1,722

1,716

1,700

1,700

1,716

1,771

Diesel prices

1,273

1,614

1,397

1,509

1,518

1,513

1,499

1,500

1,518

1,570

Source: Korea National Oil Corporation

International commodity prices rose in December due to concerns about supply disruptions
along with increased demand led by economic recovery.
Non-ferrous metal prices surged as supply concerns were raised amid strong demand from
China and other emerging markets.
International grain prices rose due to concerns that supply will be disrupted as a result of
bad weather in major grain-producing areas, and as China increased its grain imports.
Prices of non-ferrous metals and grain in Dec (m-o-m, %)
Corn (6.9), wheat (14.3), soybean (5.0), raw sugar (7.6), copper (7.7), aluminum (0.3), nickel (5.1), zinc (-0.9),
lead (0.9), tin (25)

Reuters index*

(Period average)

2007

2008

2009

Annual

Annual

Annual

Jun

Jul

Aug

Sep

Oct

Nov

Dec

2,400

2,536

2,079

2,285

2,477

2,687

2,765

2,824

2,952

3,119

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

34

January 2011

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 December, nationwide apartment sales prices increased 0.6 percent month-on-month.
Apartment sales price increases in 2010 (y-o-y, %)
Nationwide (2.5), Seoul metropolitan area (-2.9), 5 metropolitan cities (8.7), provincial cities (7.9)

Apartment sales prices in the Seoul metropolitan area increased for the first time in eight
months, rising 0.1 percent month-on-month.
Apartment sales prices in areas excluding the Seoul metropolitan area showed a continuing
strong upward trend. In particular, the prices in South Gyeongsang Province rose 2.1 percent
from the previous month and those in Busan were up 1.8 percent. Apartment prices in 5
metropolitan cities and other cities each advanced 1.2 percent and 1.0 percent, respectively.

Nationwide apartment sales prices
2008

Annual Annual

Annual Annual

Nationwide

13.8

2.1

Seoul

24.1

Gangnam2

27.6

Gangbuk

3

Seoul metropolitan area
5 metropolitan cities
1. Weekly trends

(Percentage change from previous period)

2006 2007

2009

2010

Q4

Annual

Aug

Sep

Oct

Nov

Dec

Dec 61 Dec 131 Dec 201 Dec 271

2.3

1.6

0.9

2.5

0.0

0.2

0.3

0.5

0.6

0.15

0.16

0.16 0.16

3.6

3.2

2.6

0.3

-2.2

-0.5

-0.3

-0.2

-0.1

0.1

0.02

0.04

0.05 0.02

0.5

-1.9

3.9

0.2

-1.8

-0.5

-0.2

-0.2

-0.1

0.1

0.03

0.05

0.08 0.04

19.0

8.3

9.4

0.9

0.4

-2.7

-0.4

-0.3

-0.2

-0.1

0.0

0.00

0.02

0.01 0.01

24.6

4.0

2.9

0.7

0.2

-2.9

-0.5

-0.3

-0.2

-0.1

0.1

0.02

0.02

0.03 0.03

2.1

-0.6

1.0

2.8

1.9

8.7

0.4

0.6

0.8

1.2

1.2

0.30

0.33

0.31 0.28

2. Upscale area of Southern Seoul

3. Northern Seoul

Source: Kookmin Bank

Nationwide apartment rental prices in December were up 1.0 percent from the previous
month. In the Seoul metropolitan area the pace of an increase decelerated slightly, but
rental prices in popular school districts in Seoul, such as Gangnam (up 1.8%) and Yangcheon
(up 2.0%), showed strong growth.

Nationwide apartment rental prices
2006 2007

(Percentage change from previous period)
2008

Annual Annual Annual

Nationwide
Seoul
Gangnam

2009
Annual Q4

2010
Annual Aug

Sep

Oct

Nov

Dec

Dec 61 Dec 131 Dec 201 Dec 271

7.6

1.9

0.8

4.5

2.0

8.8

0.4

0.7

1.0

1.4

1.0

0.25

0.24 0.21

0.23

11.5

2.2

-1.8

8.1

2.3

7.4

0.2

0.7

1.2

1.1

0.8

0.20

0.23 0.21

0.16

11.3

0.5

-3.6

10.4

2.7

8.8

0.3

0.7

1.2

1.4

1.0

0.25

0.27 0.26

0.20

Gangbuk3

11.8

4.6

0.5

5.4

1.9

5.6

0.1

0.6

1.1

0.8

0.5

0.13

0.18 0.15

0.12

Seoul metropolitan area

11.7

2.1

-0.4

5.6

1.8

7.2

0.2

0.8

1.1

1.3

0.7

0.16

0.20 0.18

0.18

3.0

1.1

1.6

3.9

2.6

12.0

0.7

0.6

0.9

1.5

1.4

0.37

0.36 0.31

0.32

2

5 metropolitan cities
1. Weekly trends

2. Upscale area of Southern Seoul

3. Northern Seoul

Source: Kookmin Bank

Apartment sales transactions in November increased 18.0 percent from the previous month’s
72,629 to post 85,704. The transactions were up 5.0 percent from a year earlier and 19.0 percent
compared with the monthly average of 72,000 recorded in the same month for the past 3 years.

Apartment sales transactions
2007

(Monthly average, thousand)

2008

2009

Annual Annual Annual Sep
Nationwide

84

74

77

Source: Korea Land & Housing Corporation

36

January 2011

90

2010

Oct

Nov

Dec

Jan

87

82

82

62

Feb Mar Apr May Jun Jul Aug Sep Oct Nov
67

80

73

62

65

62

57

57

73

86

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 November went up for the first time in three months, rising 0.03
percent month-on-month, which is 2.31 percent lower than the pre-crisis peak reached in
October 2008.
Land prices in the Seoul metropolitan area rose for the first time in five months, led by Seoul
(up 0.02%) and Gyeonggi Province (up 0.04%).
Land price increases in Seoul metropolitan area (m-o-m, %)
-0.04 (Jul 2010)

-0.04 (Aug)

-0.09 (Sep)

-0.08 (Oct)

0.01 (Nov)

Land price increases in areas excluding the Seoul metropolitan area continued in November,
led by Daejeon (up 0.23%), Busan (up 0.09%) and South Gyeongsang Province (up 0.08%).
Land price increases in areas excluding Seoul metropolitan area (m-o-m, %)
0.06 (Jul 2010)

0.05 (Aug)

0.05 (Sep)

0.05 (Oct)

0.06 (Nov)

Land prices by region
2007
Annual Q3
Nationwide

(Percentage change from previous period)
2008
Annual

2009
Q3

3.88 0.92 -0.31 1.18

2010

Annual

Q1

Q2

Q3

Q4

Annual

Q1

Q2

0.96

-1.20

0.35

0.88

0.94

0.94

0.70

0.29

1

Q3

Sep

Oct

Nov

-0.05 -0.04 -0.03

0.03

Seoul

5.88 1.39 -1.00 1.59

1.40

-1.38

0.68

1.30

0.81

0.49

0.72

0.02

-0.25 -0.13 -0.13

0.02

Gyeonggi

4.22 1.05 -0.26 1.28

1.22

-1.62

0.37

1.13

1.36

1.41

0.96

0.53

-0.08 -0.05 -0.03

0.01

Incheon

4.86 1.11

1.99

-1.39

0.53

1.16

1.70

1.41

1.08

0.43

-0.10 -0.06 -0.02 -0.03

1.37 2.01

1. Jan-Nov aggregate total
Source: Korea Land & Housing Corporation

Nationwide land transactions in November recorded 208,000 land lots, increasing 14.9
percent from the previous month and 0.7 percent year-on-year.
Land transactions in Ulsan (up 42.9%), Seoul (up 29.3%), and South Gyeongsang Province
(up 21.3%) increased significantly.

Land sales transactions

(Land lot, thousand)

2007 2008

Nationwide

2009

2010

Annual1 Annual1 Annual1 Sep Oct

Nov Dec Jan Feb Mar Apr May Jun

Jul

Aug Sep Oct Nov

171

163

208

208

203

226

212

207

241

170

Seoul

33

26

22

28

25

19

21

Gyeonggi

49

45

46

56

52

48

58

Incheon

13

13

10

13

14

11

12

1. Monthly average
Source: Korea Land & Housing Corporation

38

January 2011

168

213

203

177

183

145

181

208

16

17

20

17

14

13

10

12

11

14

18

39

34

44

42

37

42

38

36

32

40

45

6

7

9

9

10

8

8

7

7

8

9

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

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

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

Economic Bulletin

39

13. Composite indices of business cycle indicators
The cyclical indicator of the coincident composite index fell 0.7 points month-on-month to
99.2 in November.
All components of the coincident composite index excluding service activity fell compared to
the previous month.
Components of coincident composite index in November (m-o-m)
Service activity index (0.3%), value of construction completed (-3.8%), mining & manufacturing production
index (-1.1%), volume of imports (-0.8%), domestic shipment index (-0.8%), wholesale & retail sales index
(-0.3%), manufacturing operation ratio index (-0.2%), number of non-farm payroll employment (-0.1%)

The year-on-year leading composite index in November fell 0.8 percentage points from the
previous month due to previous year’s high base effect and a decline in leading composite index.
Among components of the leading composite index, the composite stock price index and
consumer expectations index rose while the other eight indices fell.
Components of the leading composite index in November (m-o-m)
composite stock price index (3.9%), consumer expectations index (0.7p), value of construction orders
received (-5.3%), ratio of job openings to job seekers (-5.2%p), value of machinery orders received (-4.7%),
Indicator of inventory cycle (-1.0%p), net terms of trade index (-0.6%), value of capital goods imports (-0.5%),
liquidity in the financial institutions (-0.2%), spreads between long & short term interest rates (-0.1%p)

2010

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

May

Jun

Jul

Aug1

Sep1

Oct1

Nov1

0.7

0.8

0.9

0.3

-0.4

-0.9

-0.2

101.4

101.7

102.2

102.1

101.2

99.9

99.2

(m-o-m, p)

0.3

0.3

0.5

-0.1

-0.9

-1.3

-0.7

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

0.6

0.3

0.9

0.2

0.0

-0.7

-0.1

12 month smoothed change
in leading composite index (%)

8.0

7.1

6.8

5.9

4.9

3.4

2.6

-0.6

-0.9

-0.3

-0.9

-1.0

-1.5

-0.8

(m-o-m, %p)
1. Preliminary

40

January 2011

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
Comprehensive Measures to Counter Inflation

Background
The Korea government announced measures to control price-hikes amid growing inflationary
expectations, as international commodities and agricultural product prices are rising and
domestic demand is increasing backed by improved income and ample liquidity. The
government needs to curb the inflationary expectations, which will make price-hikes hard to
control. To avoid inflationary expectations the current price situation might bring, the
government decided to take price-stabilizing measures, which include year-round
monitoring of prices, and most of which will be adopted in the first half of 2011.

Directions of the measures
The government puts its first priority of 2011’s first half on stable prices. To this end, it will
take measures of both long-term as well as short-term to prevent inflationary expectations
from raising prices.

42

January 2011

The major causes of the current inflationary expectations came from volatile agricultural and
petroleum product prices, and public utility charges and tuition bound to increase. To
prevent those causes from affecting inflation, the government will reduce customs tariffs to
minimize the impact from rising international commodity prices, and offer financial and tax
incentives aimed at encouraging both the private and public sectors to contribute to
stabilizing prices. In addition, the government is positively considering freezing public utility
charges, and will monitor the level of local prices and college tuition fees. The government
will also respond to unfair and illegal price-setting practices such as price-fixing. On top of
those short-term measures, the government will continue to pursue long-term measures
which aim to maintain balance between supply and demand and reform distribution
systems. The long-term measures will be closely monitored and their subsequent results will
be reflected in the future policies.
The joint ministerial system to swiftly respond to inflationary pressure will be launched,
which will provide across the board price information collected by each ministry. Under the
system, each ministry is responsible for monitoring the prices of the items it concerns, and is
obliged to field-monitor supply-demand situations of the items. Ministries will exchange
price information at the weekly joint ministerial meeting, where ways to respond to any
changes in prices will be sought.

Ministerial-level measures and implementation schedule
Ministry of Strategy and Finance
- Reducing tariff rates for 67 items of basic necessities such as sugar and cooking oil, and for
grains traded in the international market such as corn and wheat (January)
- Granting local governments with fiscal incentives for their efforts to stabilize public utility
charges (January)
- Awarding private firms for keeping low prices (year-round)
- Evaluating public firms’ productivity and cost-reduction on the basis of those of their
counterparts in major economies such as US and Japan (year-round)
- Watching long-term and broad measures to promote competition, stabilize supplydemand, and improve distribution systems, and modifying them if necessary (year-round)
Ministry of Food, Agriculture, Forestry and Fisheries
- Securing the supply of vegetables and livestock products, the former through contract
farming and the latter by delaying the closing of slaughter houses to supplement the
amount affected by foot-and-mouth disease (first quarter)
- Adopting tariff quotas to fishery products (January)
- Early importing the mandatory quota of dry milk and seeking a tariff quota for the item (first quarter)
- Increasing agricultural product supply through contract farming expanded from 9 percent
to 15 percent (2011)

Economic Bulletin

43

- Promoting direct sales of agricultural products (year-round)
- Building a web-site to help direct sales of agricultural products (May)
- Organizing a committee for international grain price analyses (January)
- Establishing an overseas firm to facilitate grain supply, through which 0.1 million tons of
corn and beans will be imported in 2011 (May)
Ministry of Public Administration and Security
- Local governments required to make available cost information when there is a public
utility charge increase (first quarter)
- Giving local governments financial incentives for stabilizing local public utility charges (first
half and second half)
- Providing local service fee information for 48 private sector services to curb the fee
increases (August)
- Awarding service businesses with incentives for keeping fees low (from January on)
Ministry of Education & Science Technology
- Freezing public universities’ tuition fees and encouraging major private universities to
freeze theirs (January)
- Reflecting tuition fee increases when assessing universities for government’s financial
support (first quarter)
- Revising laws concerning tuition level determining factors (first quarter)
- Revising laws regulating private educational institutions and obliging them to make
available fee information (first half)
- Monitoring private kindergarten tuition (from January on)
- Revising laws so that private daycare centers can be required to put up fee information (first half)
Ministry of Knowledge Economy
- Increasing the number of petroleum products subject to putting up price information (from
January on)
- Increasing petroleum imports (first half)
- Improving the LPG distribution system (first half)
- Freezing charges for electricity, gas, and postal services (2011)
- Reducing quota tariff rates for major raw material imports (January)
- Seeking to improve distribution systems of manufactured goods (first half)
Fair Trade Commission
- Organizing a task force team to monitor prices (January)
- Weekly monitoring of major item prices (January)
- Immediately monitoring basic necessity prices when any inflationary pressure detected (January)
- Unfair practices which cause price increases such as price fixing to be under close watch (year-round)
- Encouraging direct sales (year-round)
- Inspecting unfair practices between oil refining companies and gas station businesses
(from January on)
- Comparing domestic and overseas prices for the same items (every quarter)

44

January 2011

Ministry of Land, Transportation, and Maritime Affairs
- Increasing the supply of rental houses, early providing the publicly planned affordable
houses, Bogumjari houses, and encouraging private builders to construct small-sized
houses in cities (January and February)
- Increasing loan support for those who want to rent houses (from January on)
- Providing real-time price information on rental houses (February)
- Easing regulations on housing construction, which includes the abolition of the price ceiling
for new apartments and less time taken for housing construction permits (February)
Korea Communications Commission
- Introducing cheaper communications fees for smart phone use (first quarter)
- Mobile virtual network operators allowed to use the existing mobile telephone network at
31 percent to 44 percent discounted rates so that they can enter the market with cheaper
services (first half)
Ministry of Health and Welfare
- Stabilizing daycare center fees below the average price increase (February)
- Controlling fees for after-school activities (February)
- Seeking to strictly regulate special medical services so that patients who do not want the
medical service are not required to have the service on their expense (first half)

Economic Bulletin

45

Economic
News Briefing

The Bank of Korea focuses on price stabilization in 2011
The Bank of Korea set the inflation target for the 2010-2012 period at the level of 3.0 ±1
percent at its Monetary Policy Committee meeting held on January 6, 2011. The bank
projected that the domestic economy will maintain its growth trend, with local consumer
prices rising above the inflation target. This is attributable to the continuing upturn in
economic activities along with rising international commodity prices, wages and rents.

<Economic Outlook>

(Year-on-year, %)
2011

1

2009

20101
1st half

2nd half

Annual

GDP growth

0.2

6.1

3.8

5.0

4.5

CPI inflation

2.8

2.9

3.7

3.3

3.5

1. Preliminary
Source: Bank of Korea Economic Outlook for 2011 (released on December 10, 2010)

In implementing monetary policy for 2011, the Bank of Korea will put priorities on both
economic growth and price stabilization. In addition, the central bank will enhance its
capacity to adjust liquidity, improve the predictability and transparency of monetary policy,
and strengthen efforts for financial stability. In particular, the Bank of Korea will ensure that
Macro-prudential Stability Levy takes effect from the second half of this year.
Meanwhile, the Monetary Policy Committee of the Bank of Korea decided on January 13, 2011 to
raise its benchmark interest rate by 25 basis points to 2.75 percent in an effort to curb inflation.

46

January 2011

Korea introduces Macro-prudential Stability Law to reduce volatility
On December 19, 2010, the Korean government announced plans to impose Macro-prudential
Stability Levy on non-deposit foreign currency liabilities held by domestic and foreign banks.
Currently, Korea is faced with massive capital inflows caused by the exceptionally low interest
rates and quantitative easing measures in advanced countries. A surge of capital inflows
could lead to inflation and asset price bubbles, and a sudden reversal of such inflows could
possibly result in a systemic risk. Against these backdrops, the Korean government plans to
adopt the Levy as a pre-emptive and precautionary measure.
The Levy will be charged on non-deposit foreign currency liabilities appeared in bank
balance sheets. The Levy will first apply to banks including domestic banks and foreign bank
branches given that they represent a large portion of the financial sector, with high
possibility of posing systemic risks. However, the Levy will gradually apply to all financial
institutions including domestic financial institutions. In addition, the Levy will vary according
to debt maturity. Short-term debt will be subject to higher Levy rate compared with longterm debt as the former poses higher risk than the latter. The related legislation will be
submitted to the National Assembly in February and is expected to take effect from the
second half of this year.

Government plans to issue 82.4 trillion won worth of government bonds
The Korean government plans to issue 82.4 trillion won worth of government bonds in 2011,
up 4.7 trillion won from the previous year’s 77.7 trillion won. The Ministry of Strategy and
Finance announced on December 30, 2010 that the government bonds will be issued evenly
every month in order to ensure the stability of the bond trading market. Among the 82.4
trillion won of government bonds to be issued this year, 21 trillion won will be deficitcovering bonds and 34.3 trillion won will be used to repay previous debts.
The issue ratio by maturity will be similar to 2010 levels in general, but may be adjusted
depending on the changes in market demand. The target ratio is 20 to 30 percent for 3-year
bonds, 30 to 40 percent for 5-year bonds, 25 to 35 percent for 10-year bonds, and 5 to 15
percent for 20-year bonds. The government is also planning to increase issuance of inflationindexed government bonds, as growing demand for those bonds is expected amid rising
inflationary pressures.

Economic Bulletin

47

Korea unveils the five-year plan for improving ODA programs
The Korean government announced the “2011-2015 International Development Cooperation
Plan”, which consists of plans to improve official development assistance (ODA) programs
over the next five years. The plan was confirmed on December 21, 2010 at the 8th
International Development Cooperation Committee presided by Prime Minister Kim Hwangsik. The concessional loan plan focuses on green growth sectors to help developing nations
respond to the climate change and achieve sustainable growth, while the grant plan focuses
on contributing to the achievement of the Millennium Development Goals (MDGs) by
increasing aid to the least developed countries. By 2015, the ratio of untied assistance will
be raised to 50 percent for concessional loans, and 100 percent for grants. Also, the amount
of aid for overseas emergency relief, which is currently less than 1 percent of the total ODA,
will be expanded to 6 percent by 2015.
The government will create a joint task force team in the Prime Minister’s Office to draw
effective ODA programs based on the Saemaul Movement, Korea’s rural development
scheme from the 1970s that is regarded as a successful development model for developing
countries. Meanwhile, during the committee session, participants discussed measures for
successful hosting of the Fourth High Level Forum on Aid Effectiveness (HLF-4), which will
take place in Busan from November 29 to December 1, 2011.

Korea’s trade surplus hits record high in 2010
Korea posted a record high trade surplus of US$41.7 billion in 2010, the Ministry of
Knowledge Economy said on January 1, 2011. Exports increased 28.6 percent year-on-year to
record US$467.4 billion while imports gained 31.8 percent to post US$425.7 billion. For
December, exports jumped 23.1 percent year-on-year to US$44.3 billion, while imports rose
23.3 percent to US$ 40.6 billion. Among 70 major exporters in the World Trade Organization
(WTO), Korea ranked 7th for the first 10 months in 2010.

<2010 Export-Import>

(preliminary, customs cleared, US$ billion, %)
2009
1 Half
st

Exports
Year-on-year growth rate
Imports
Year-on-year growth rate
Trade balance

48

January 2011

2 Half
nd

164.8

198.8

145.4

177.7

19.4

21.1

2010
Annual

1 Half

2 Half

Annual

363.5

221.4

246.0

467.4

-13.9

34.3

23.7

28.6

323.1

203.9

221.8

425.7

-25.8

40.2

24.8

31.8

40.4

17.5

24.2

41.7

st

nd

Meanwhile, foreign direct investment (FDI) in 2010 rose 13.8 percent year-on-year to post
US$13.07 billion, the highest level in a decade, the Ministry of Knowledge Economy
announced on December 30, 2010. Although global FDI remained sluggish in 2010, the
inflow of foreign capital into Korea increased due to Korea’s sound economic fundamentals.
FDI in the manufacturing sector rose 75.6 percent year-on-year to post US$6.54 billion, while
service-related investments fell 18 percent to US$6.23 billion. New growth engine sectors
accounted for 23.6 percent of all investments.

Microcredit program marks first anniversary
The “Miso Credit Foundation”, a microcredit lending program in Korea to support lowincome households, marked its first anniversary with the 100th branch opening on December
16, 2010 in Seoul. Starting with the Samsung Miso Credit Foundation office in Suwon, which
opened on December 15, 2009, 45 branches have been established in the Seoul
metropolitan area and 55 branches in various provincial cities. The credit program is
operated by 31 banks including Kookmin, Woori, Shinhan, Hana, and Industrial Bank of
Korea (IBK), and 49 companies in non-financial sectors, such as Hyundai-Kia, LG, SK, POSCO
and Lotte.
According to the Financial Services Commission, the Miso Credit Foundation has provided a
total of 101.9 billion won to 21,223 people through microcredit loans and micro insurance from
January to December 15, 2010. 12,865 people have borrowed loans worth 99.7 billion won
from the foundation, and 8,358 people have received micro insurance worth 4.1 billion won.

Economic Bulletin

49

50

January 2011

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

2003
2004
2005
2006
2007
2008
2009P

Gross fixed capital formation

Final
consumption
expenditure

Agri., fores.
& fisheries

Manufacturing

2.8
4.6
4.0
5.2
5.1
2.3
0.2

-5.4
9.1
1.3
1.5
4.0
5.6
1.6

5.4
10.0
6.2
8.1
7.2
2.9
-1.6

0.5
1.0
4.6
5.1
5.1
2.0
1.3

Construction

Facilities

4.4
2.1
1.9
3.4
4.2
-1.9
-0.2

8.5
1.3
-0.4
0.5
1.4
-2.8
4.4

-1.5
3.8
5.3
8.2
9.3
-1.0
-9.1

2003

I
II
III
IV

3.5
1.8
2.0
3.9

0.7
-1.6
-9.6
-8.0

5.4
3.1
4.3
8.5

2.0
0.3
0.0
-0.4

5.1
4.7
2.8
5.0

8.2
8.4
8.3
9.0

2.9
-0.7
-5.8
-2.2

2004

I
II
III
IV

5.2
5.9
4.8
2.7

8.2
7.6
8.3
11.6

10.9
12.9
10.4
6.2

-0.1
1.3
1.0
1.8

2.3
4.9
3.1
-1.4

5.3
4.2
1.2
-3.5

-0.6
6.4
7.7
1.8

2005

I
II
III
IV

2.7
3.4
4.5
5.1

0.4
4.8
3.8
-3.1

4.8
3.9
6.7
9.3

2.7
4.7
5.9
4.9

-0.3
1.8
1.5
3.9

-3.1
0.9
-0.3
0.3

3.4
2.8
4.1
10.8

2006

I
II
III
IV

6.1
5.1
5.0
4.6

3.9
-0.3
-1.4
4.2

9.4
9.1
8.7
5.4

5.8
4.9
4.6
5.1

3.8
0.1
4.0
5.7

1.9
-4.2
-0.5
5.1

7.2
8.0
12.0
5.7

2007

I
II
III
IV

4.5
5.3
4.9
5.7

1.6
7.0
8.2
-0.7

4.5
7.2
6.3
10.2

5.1
5.4
5.3
4.7

7.3
5.7
1.5
3.1

4.4
2.0
-0.2
0.4

12.6
13.0
4.0
8.0

2008

I
II
III
IV

5.5
4.4
3.3
-3.3

7.8
4.6
4.3
6.5

8.9
8.3
5.3
-9.4

4.3
3.0
2.4
-1.7

-0.6
0.6
2.1
-8.7

-2.5
-0.5
0.4
-7.7

2.8
2.0
5.3
-13.3

2009P

I
II
III
IV

-4.3
-2.2
1.0
6.0

1.5
-1.3
3.3
2.8

-13.6
-7.2
1.7
13.0

-2.0
0.7
1.7
4.7

-7.4
-2.3
0.4
7.1

2.8
5.1
4.4
5.0

-23.1
-17.3
-7.0
13.3

2010P

I
II
III

8.1
7.2
4.4

-1.9
-2.2
-7.5

20.7
18.0
10.1

5.7
3.6
3.2

11.4
6.4
6.6

2.3
-2.9
-2.3

29.9
30.2
24.3

P: Preliminary
Source: The Bank of Korea

52

January 2011

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)

Period

Production
index

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

2010

I
II
III

129.3
140.8
139.5

25.8
19.5
11.9

124.1
135.8
134.1

21.8
17.2
11.3

123.6
127.9
134.2

6.6
15.6
18.4

120.2
123.6
121.3

5.7
4.0
2.3

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

2010

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

128.5
118.7
140.7
139.4
139.9
143.2
143.7
137.3
137.6
144.2
143.9

37.0
18.9
22.7
20.1
21.7
17.2
15.6
17.0
4.0
13.5
10.7

123.0
113.7
135.6
134.9
134.2
138.2
137.1
132.4
132.8
140.3
140.7

32.1
14.4
19.7
17.6
19.0
15.1
14.3
16.7
3.8
13.7
11.0

119.2
122.5
123.6
124.6
127.9
127.9
132.8
134.1
134.2
133.2
132.1

-3.6
4.2
6.6
10.9
14.8
15.6
18.3
18.9
18.4
18.3
16.2

117.3
117.5
125.8
124.4
122.9
123.5
121.9
120.3
121.2
121.8
122.3

4.4
7.3
5.5
3.8
3.7
4.7
3.2
4.2
-0.9
3.0
3.6

P: Preliminary
Source: Statistics Korea

54

January 2011

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

2010

I
II
III

122.7
124.6
127.5

5.1
5.8
6.5

97.7
106.5
100.8

20.0
12.6
3.1

80.5
83.0
82.6

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

122.1
122.4
123.6
123.8
124.8
125.1
126.7
127.7
128.2
128.2
128.4

4.5
4.9
5.6
5.3
6.1
5.7
6.4
6.9
6.5
6.3
6.3

97.4
88.4
107.2
106.6
104.8
108.2
106.8
97.8
97.9
107.5
106.1

32.5
11.2
17.7
14.1
13.2
10.5
8.3
7.4
-5.5
8.5
5.5

78.9
80.3
82.4
82.2
82.8
84.0
84.8
81.5
81.5
79.7
80.9

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)

Period

Consumer
goods
sales
index

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

2010

I
II
IIIP

116.8
118.9
120.1

9.9
4.9
7.3

148.1
149.4
158.3

29.5
5.4
16.7

104.8
114.0
100.0

2.7
6.9
7.2

111.3
113.1
117.7

3.3
3.5
2.9

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
114.1
120.2
116.5
121.3
118.9
120.5
116.6
123.3
125.4
127.8

6.9
13.1
9.9
7.3
3.7
3.8
8.7
9.3
4.4
4.2
6.9

145.6
140.1
158.6
144.1
146.7
157.5
163.8
154.3
156.9
165.1
172.1

40.1
21.0
28.3
16.5
1.9
-0.2
18.4
25.8
7.5
14.1
12.3

107.3
98.6
108.5
112.7
120.5
108.9
103.1
89.6
107.3
129.4
133.0

4.6
2.6
1.0
4.1
7.5
9.6
9.3
4.7
7.2
12.6
10.2

108.8
112.2
112.8
110.6
116.2
112.4
114.9
116.5
121.6
111.3
112.2

-5.2
13.3
3.3
3.3
2.8
4.3
3.4
3.1
2.1
-4.7
2.7

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

P: Preliminary
Source: Statistics Korea

56

January 2011

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

Period

2008
2009

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

Durable
goods

Y-o-Y
change (%)

Non-durable
goods

Y-o-Y
change (%)

Consumer
sentiment index

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

-

2010

I
II
III

117.6
119.2
120.8

10.2
4.5
1.7

136.1
139.7
139.1

20.8
1.2
0.8

110.2
111.0
113.5

5.7
6.2
2.2

-

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

122.3
109.5
121.0
119.5
116.3
121.9
121.3
119.1
122.0
126.8
125.4
-

14.9
6.6
9.1
7.4
3.2
3.1
2.7
8.3
-4.8
5.5
5.6
-

135.5
129.1
143.8
135.2
135.5
148.5
146.1
134.0
137.2
145.1
143.2
-

37.4
12.2
15.6
13.5
-2.4
-4.9
1.2
7.5
-5.4
4.5
-1.9
-

117.0
101.7
111.9
113.2
108.7
111.2
111.3
113.2
115.9
119.5
118.2
-

6.8
4.1
6.0
4.6
6.4
8.0
3.3
8.6
-4.6
6.0
9.5
-

113
111
110
110
111
112
112
110
109
108
108
109

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

Estimated
facility investment
index
(2005=100)

Domestic
machinery
shipment
excluding ship
(2005=100)

Total

Public

Private

20,718

3,735

16,983

9,111

109.3

110.4

Manufacturing

2009

I
ll
III
IV

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

97.0
110.4
107.7
122.2

98.7
112.7
107.5
122.6

2010

I
ll
III

5,563
6,136
5,549

525
409
374

5,038
5,727
5,175

2,956
3,509
3,012

121.7
137.5
137.4

119.6
148.1
140.0

2009 7
8
9
10
11
12

2,494
1,340
1,757
1,541
1,942
1,669

1,073
71
200
84
433
246

1,421
1,268
1,557
1,458
1,509
1,422

754
653
914
836
941
810

101.9
100.7
120.4
112.4
121.4
132.9

107.5
98.2
116.8
109.1
116.3
142.3

2010

1,752
1,630
2,181
1,823
2,168
2,145
2,017
1,697
1,835
1,717
1,666

169
107
249
127
122
160
105
102
167
101
102

1,583
1,523
1,932
1,696
2,046
1,986
1,912
1,595
1,668
1,616
1,565

1,010
880
1,065
1,053
1,331
1,125
1,070
911
1,031
970
887

107.6
114.5
142.9
131.9
133.0
147.6
136.4
141.4
134.4
123.3
126.9

111.6
105.7
141.5
143.1
145.7
155.4
144.0
137.2
138.8
134.5
136.1

-11.8

61.7

-19.9

-27.2

-8.2

-5.2

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

Y-o-Y change (%)
2009
2009

I
ll
III
IV

-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

-18.3
-12.9
-9.9
10.0

-12.7
-8.0
-6.4
6.4

2010

I
ll
III

10.5
24.2
-0.7

-43.7
-41.2
-72.2

22.9
34.9
21.9

48.4
58.6
29.8

25.5
24.5
27.6

21.2
31.4
30.2

2009 7
8
9
10
11
12

6.1
-19.6
26.5
-7.9
56.2
21.2

498.5
-17.4
127.5
-79.0
110.1
-44.5

-34.6
-19.7
19.7
14.3
45.5
52.4

-38.1
-30.7
27.3
16.5
74.6
79.5

-18.3
-15.6
5.3
-0.5
10.1
20.8

-10.9
-9.9
1.6
-5.3
4.0
20.1

2010

11.2
-3.1
22.9
25.1
57.5
1.8
-19.1
26.6
4.5
11.4
-14.2

-27.1
-79.4
37.2
39.0
26.8
-68.6
-90.2
42.5
-16.2
20.8
-76.5

17.8
30.9
21.3
24.2
59.8
24.1
34.6
25.8
7.1
10.8
3.7

41.4
65.7
42.7
57.0
102.3
27.3
42.0
39.6
12.7
16.1
-5.7

20.9
19.5
34.7
25.6
24.3
23.9
33.9
40.4
11.6
9.7
4.5

31.0
8.1
25.1
29.0
39.8
26.3
34.0
39.6
18.8
23.3
17.0

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

P: Preliminary
Source: Statistics Korea

58

January 2011

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

(current prices, billion won)

Period

Type of order

Private

Public

Private

32,393

52,562

107,011

50,771

51,914

Public

89,863

2009

Type of order

Domestic
construction
orders received
(total)

Value of
construction
completed
(total)

2009

I
ll
llI
lV

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

2010

I
ll
llI

20,066
24,196
22,737

7,317
9,171
8,181

11,870
14,011
13,497

16,848
24,649
18,737

7,646
6,746
6,648

8,335
16,453
11,249

2009

7
8
9
10
11
12

6,988
6,719
8,398
7,301
8,060
9,639

2,362
2,427
3,085
2,585
2,780
3,919

4,252
3,929
4,848
4,354
4,854
5,204

6,009
4,660
9,050
10,570
14,538
17,688

3,314
1,756
3,756
4,700
5,101
5,179

2,398
2,807
4,766
5,616
8,853
11,451

2010

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

6,414
6,051
7,602
7,355
7,784
9,057
7,635
7,420
7,682
7,168
7,817

2,222
2,236
2,859
2,623
2,858
3,690
2,798
2,610
2,774
2,794
3,193

3,924
3,589
4,357
4,473
4,564
4,973
4,495
4,488
4,514
4,024
4,282

6,643
4,615
5,590
6,418
8,354
9,877
7,346
4,010
7,381
4,274
7,459

2,286
2,109
3,252
1,735
1,613
3,398
3,830
1,251
1,567
1,173
1,957

4,074
2,163
2,099
4,356
6,521
5,576
3,315
2,640
5,293
2,989
5,191

Y-o-Y change (%)
2009

3.3

21.2

-5.7

3.0

60.9

-21.9

2009

I
ll
llI
lV

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

2010

I
ll
llI

4.9
2.4
2.9

11.4
5.8
3.9

2.8
3.2
3.6

-6.9
-6.6
-5.0

-17.1
-62.0
-24.7

0.9
112.0
12.8

2009

7
8
9
10
11
12

-2.8
-8.2
6.8
-5.9
3.2
12.9

16.6
14.1
31.9
3.5
8.1
18.3

-11.6
-18.9
-5.4
-10.1
1.7
9.8

-1.8
-27.0
55.3
28.8
78.8
-19.6

135.8
6.7
99.6
90.8
63.3
-33.9

-42.7
-36.6
57.4
16.2
92.5
-9.6

2010

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

5.8
-0.8
9.2
-1.1
7.8
1.0
9.3
10.4
-8.5
-1.8
-3.0

3.4
9.6
20.1
-0.5
10.0
7.5
18.4
7.5
-10.1
8.1
14.9

8.3
-4.3
4.5
1.3
8.5
0.4
5.7
14.2
-6.9
-7.6
-11.8

17.1
-6.7
-25.3
-14.6
16.8
-15.8
22.2
-13.9
-18.4
-59.6
-48.7

-14.7
-23.5
-14.0
-69.8
-63.6
-55.1
15.6
-28.8
-58.3
-75.1
-61.6

49.4
4.7
-39.5
192.8
151.2
51.7
38.2
-5.9
11.1
-46.8
-41.4

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
6
7
8
9
10
11
12

127.4
127.1
127.3
127.1
127.7
128.2
129.3
129.6
129.6
128.7
128.6
-

11.3
10.3
9.7
8.6
7.9
7.1
6.8
5.9
4.9
3.4
2.6
-

126.2
127.7
128.9
130.1
131.0
132.0
133.2
133.6
133.0
131.8
131.5
-

99.3
100.0
100.6
101.1
101.4
101.7
102.2
102.1
101.2
99.9
99.2
-

99.2
98.7
113.1
108.9
111.9
109.4
105.0
98.6
104.1
104.3
103.5
102.1

103.1
102.3
116.2
111.2
113.4
108.9
107.3
100.7
111.1
113.1
107.1
104.2

2011 1

-

-

-

-

-

101.8

Period

Leading
index
(2005=100)

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

Source: Statistics Korea & The Federation of Korean Industries

60

January 2011

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

Period

2008
2009

Current
balance

Goods
trade
balance

Exports

3,197.5
32,790.5

5,170.1
37,866.0

Imports

Services
trade
balance

Income
trade
balance

Current
transfers

434,651.5
358,189.7

429,481.4
320,323.7

-5,734.1
-6,640.5

4,435.4
2,276.7

-673.9
-711.7

2008

I
II
III
IV

86.3
595.6
-3,981.0
6,496.6

1,365.8
4,095.7
-1,208.3
916.9

106,227.0
117,184.4
119,540.5
91,699.6

104,861.2
113,088.7
120,748.8
90,782.7

-2,358.8
-1,656.7
-3,145.3
1,426.7

1,613.1
-887.1
1,137.3
2,572.1

-533.8
-956.3
-764.7
1,580.9

2009

I
II
III
IV

4,543.3
11,557.4
8,613.2
8,076.6

2,819.2
13,553.3
10,914.6
10,578.9

73,334.9
87,038.0
95,485.2
102,331.6

70,515.7
73,484.7
84,570.6
91,752.7

-26.0
-1,291.4
-2,663.3
-2,659.8

393.9
-151.1
948.6
1,085.3

1,356.2
-553.4
-586.7
-927.8

2010P

I
II
III

263.3
8,568.0
9,411.2

4,785.4
12,183.3
12,287.5

101,354.5
117,585.0
118,067.3

96,569.1
105,401.7
105,779.7

-4,201.1
-2,106.0
-3,219.8

546.5
-1,006.5
1,296.2

-867.4
-502.9
-952.7

2008

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

19.2
-1,230.5
1,297.6
-1,205.1
1,002.8
797.9
-192.6
-3,587.6
-200.8
4,984.2
1,453.1
59.3

588.5
30.8
746.5
1,018.4
1,234.9
1,842.4
1,900.0
-2,467.7
-640.6
1,327.3
-388.9
-21.5

36,167.2
32,263.4
37,796.4
38,594.7
39,428.7
39,161.0
43,842.5
37,121.5
38,576.5
37,504.4
28,046.2
26,149.0

35,578.7
32,232.6
37,049.9
37,576.3
38,193.8
37,318.6
41,942.5
39,589.2
39,217.1
36,177.1
28,435.1
26,170.5

-996.1
-1,497.2
134.5
137.5
-391.7
-1,402.5
-1,769.1
-1,211.4
-164.8
1,416.8
716.2
-706.3

718.3
670.3
224.5
-2,036.2
441.5
707.6
228.0
305.4
603.9
1,468.6
635.4
468.1

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

2009

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

-1,800.2
2,579.8
3,763.7
3,511.2
3,153.8
4,892.4
4,054.8
1,300.2
3,258.2
3,202.9
4,165.0
708.7

-2,441.3
1,766.2
3,494.3
4,255.5
3,822.6
5,475.2
5,021.2
1,920.5
3,972.9
3,546.1
4,851.1
2,181.7

21,910.3
24,179.6
27,245.0
28,832.5
27,228.8
30,976.7
32,688.5
29,001.4
33,795.3
33,474.6
34,055.5
34,801.5

24,351.6
22,413.4
23,750.7
24,577.0
23,406.2
25,501.5
27,667.3
27,080.9
29,822.4
29,928.5
29,204.4
32,619.8

-98.9
-64.1
137.0
-15.8
-555.6
-720.0
-1,241.2
-761.3
-660.8
-505.9
-643.6
-1,510.3

502.7
366.2
-475.0
-835.1
205.0
479.0
366.3
367.9
214.4
336.2
272.5
476.6

237.3
511.5
607.4
106.6
-318.2
-341.8
-91.5
-226.9
-268.3
-173.5
-315.0
-439.3

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

-571.8
-363.1
1,198.2
529.0
3,859.0
4,180.0
4,457.9
1,725.6
3,227.7
4,892.5
1,929.8

996.7
586.3
3,202.4
3,740.1
3,630.9
4,812.3
5,268.9
2,704.6
4,314.1
5,385.4
3,348.7

31,806.6
31,119.7
38,428.2
39,186.7
38,250.1
40,148.2
41,130.1
37,813.4
39,123.8
41,942.2
42,099.7

30,809.9
30,533.4
35,225.8
35,446.7
34,619.2
35,335.8
35,861.3
35,108.8
34,809.7
36,556.8
38,751.0

-1,651.8
-1,270.7
-1,278.6
-1,268.9
35.0
-872.1
-859.3
-1,031.1
-1,329.3
-870.4
-487.0

414.6
497.4
-365.6
-1,452.5
219.8
226.2
352.3
518.7
425.1
657.1
-690.2

-331.3
-176.1
-360.0
-489.7
-26.7
13.5
-304.0
-466.5
-182.2
-279.6
-241.7

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

Economic Bulletin

61

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

Period

Capital &
financial
account

Direct
investment

Portfolio
investment

Financial
derivative

2008
2009

-1,154.0
-34,651.2

-16,940.6
-14,948.0

-2,405.6
49,727.7

-14,769.9
-3,093.0

-23,593.2
2,038.9

Changes in
reserve
assets

Errors and
omissions

109.3
289.6

56,446.0
-68,666.4

-2,043.5
1,860.7

Capital transfers
Other
& acquisition of
investment non-financial
assets

2008

I
ll
III
IV

1,193.5
1,939.6
2,595.0
-6,882.1

-6,108.5
-4,467.0
-3,988.1
-2,377.0

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

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

9,213.4
-6,200.3
6,889.4
-33,495.7

-110.4
-226.8
-217.7
664.2

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

-1,279.8
-2,535.2
1,386.0
385.5

2009

I
II
III
IV

-4,368.3
-12,936.8
-6,977.2
-10,368.9

-2,777.9
-2,032.0
-3,305.7
-6,832.4

2,784.6
15,927.2
21,226.9
9,789.0

-2,656.9
599.0
-1,050.9
15.8

6,917.1
-7,914.9
-251.1
3,287.8

382.3
25.8
-103.9
-14.6

-9,017.4
-19,541.8
-23,492.6
-16,614.6

-175.0
1,379.4
-1,636.0
2,292.3

2010P I
II
III

-155.3
-9,099.0
-7,679.6

-2,307.5
-2,564.1
-6,217.4

10,159.6
7,098.4
14,032.1

746.6
-983.9
-388.6

16.7
-7,076.3
-4,725.3

-175.6
27.1
31.1

-8,595.1
-5,600.2
-10,411.5

-108.0
531.0
-1,731.6

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

386.7
808.3
-1.5
1,442.8
670.4
-173.6
1,052.9
2,866.3
-1,324.2
-3,562.9
-1,557.3
-1,761.9

-3,111.7
-199.9
-2,796.9
-2,670.0
-792.4
-1,004.6
-1,574.4
-1,537.7
-876.0
-1,087.9
-724.2
-564.9

-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

3,201.2
2,762.6
3,249.6
-1,744.6
-9,293.2
4,837.5
1,209.3
6,139.7
-459.6
-23,932.3
-8,079.7
-1,483.7

-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

-405.9
422.2
-1,296.1
-237.7
-1,673.2
-624.3
-860.3
721.3
1,525.0
-1,421.3
104.2
1,702.6

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

2,763.4
-4,063.6
-3,068.1
-3,595.1
-3,865.7
-5,476.0
-2,438.2
-2,160.3
-2,378.7
-4,817.0
-4,229.2
-1,322.7

-643.0
-1,095.1
-1,039.8
-695.3
-855.9
-480.8
-1,644.2
-865.9
-795.6
-749.1
-2,855.1
-3,228.2

4,715.2
122.8
-2,053.4
6,879.7
4,157.3
4,890.2
8,470.1
4,004.4
8,752.4
5,829.4
2,992.6
967.0

473.2
-771.2
-2,358.9
274.1
1,279.7
-954.8
-155.1
-870.3
-25.5
-509.1
614.2
-89.3

2,644.7
-1,255.7
5,528.1
-4,669.7
1,818.3
-5,063.5
-3,538.9
2,696.1
591.7
-1,429.4
712.9
4,004.3

61.9
195.6
124.8
60.3
-16.5
-18.0
3.4
-29.4
-77.9
6.9
-56.4
34.9

-4,488.6
-1,260.0
-3,268.8
-5,444.1
-10,248.6
-3,849.1
-5,573.6
-7,095.2
-10,823.8
-7,965.8
-5,637.4
-3,011.4

-963.2
1,483.8
-695.6
83.9
711.9
583.6
-1,616.6
860.1
-879.5
1,614.1
64.2
614.0

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

-686.4
1,398.3
-867.2
641.8
-5,611.5
-4,129.3
-3,528.4
-1,421.7
-2,729.5
-5,869.7
-3,309.4

-1,070.2
-613.7
-623.6
-1,163.6
-571.7
-828.8
-1,773.0
-1,184.2
-3,260.2
-5,393.9
-1,286.8

118.0
2,484.0
7,557.6
5,792.1
747.2
559.1
8,592.4
1,061.0
4,378.7
7,447.3
3,492.0

241.8
549.3
-44.5
80.6
-854.8
-209.7
-297.3
61.3
-152.6
0.4
106.9

7,076.7
-1,692.8
-5,367.2
5,343.4
-12,116.8
-302.9
-4,029.4
93.3
-789.2
-5,216.8
-3,876.9

-70.0
-43.2
-62.4
-120.5
101.3
46.3
-0.2
57.9
-26.6
-48.1
-25.3

-6,982.7
714.7
-2,327.1
-9,290.2
7083.3
-3393.3
-6020.9
-1,511.00
-2,879.60
-2,658.60
-1,719.30

1,258.2
-1,035.2
-331.0
-1,170.8
1,752.5
-50.7
-929.5
-303.9
-498.2
977.2
1,379.6

P: Preliminary
Source: The Bank of Korea

62

January 2011

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

2009
2010

112.8
116.1

113.6
118.8

112.2
114.3

112.5
114.5

110.9
115.1

111.9
117.0

109.2
-

137.7
-

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
5
6
7
8
9
10
11
12

114.2
114.6
115.0
115.6
115.7
115.5
115.9
116.3
117.6
117.8
117.1
117.8

115.6
116.1
116.9
118.1
118.1
117.6
118.3
119.0
121.8
122.1
120.4
121.9

113.3
113.6
113.8
114.0
114.1
114.2
114.4
114.6
114.9
115.0
114.9
115.0

113.4
113.6
113.7
113.9
114.2
114.4
114.6
114.8
115.1
115.1
115.2
115.6

112.7
113.0
113.7
114.6
115.2
114.8
114.9
115.2
116.3
116.4
116.7
117.8

113.9
114.5
115.3
116.4
117.1
116.6
116.7
117.1
118.6
118.6
118.9
120.5

103.5
104.7
104.0
103.8
106.7
109.9
109.4
107.4
106.9
105.0
106.3
-

136.9
137.6
139.2
140.9
144.7
147.6
147.0
147.4
147.4
146.1
149.2
-

Y-o-Y change (%)
2009
2010

2.8
2.9

3.4
4.6

2.4
4.2

3.6
1.8

-0.2
3.8

-0.5
4.6

-0.2
-

-4.1
-

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
5
6
7
8
9
10
11
12

3.1
2.7
2.3
2.6
2.7
2.6
2.6
2.6
3.6
4.1
3.3
3.5

4.7
3.6
3.2
3.8
4.0
3.8
3.9
3.9
6.3
7.2
5.4
6.0

2.0
2.2
1.8
1.8
1.9
1.9
1.7
1.7
2.0
2.0
1.8
1.8

2.1
1.9
1.5
1.5
1.6
1.7
1.7
1.8
1.9
1.9
1.8
2.0

2.8
2.4
2.6
3.2
4.6
4.6
3.4
3.1
4.0
5.0
4.9
5.3

3.2
2.7
2.9
3.8
5.5
5.5
4.1
3.7
5.0
6.1
5.7
6.5

-6.9
-10.2
-12.2
-6.7
0.4
1.5
0.3
-1.7
-0.4
1.0
1.9
-

-0.9
-4.1
-4.3
5.1
11.3
8.0
7.5
5.7
7.8
8.1
8.2
-

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
2009

24,394

23,506

3,836

17,998

3.6

16,454

9,390

5,101

1,963

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
5
6
7
8
9
10
11

24,082
24,035
24,382
24,858
25,099
25,158
25,232
24,863
24,911
25,004
24,847

22,865
22,867
23,377
23,924
24,306
24,280
24,301
24,005
24,054
24,172
24,109

3,924
3,886
3,924
3,991
4,036
4,017
4,040
4,058
4,062
4,098
4,139

17,796
17,762
18,047
18,285
18,499
18,422
18,489
18,175
18,216
18,264
18,340

5.0
4.9
4.1
3.8
3.2
3.5
3.7
3.3
3.4
3.3
3.0

16,297
16,282
16,617
16,994
17,255
17,193
17,228
17,048
17,103
17,178
17,300

9,712
9,786
9,926
10,011
10,078
10,089
10,107
10,151
10,217
10,280
10,334

4,860
4,838
4,976
5,147
5,223
5,165
5,215
5,122
5,106
5,089
5,069

1,725
1,657
1,714
1,836
1,953
1,938
1,905
1,775
1,780
1,809
1,898

Y-o-Y change (%)
2009

0.2

-0.3

-3.2

0.5

-

1.5

4.3

0.4

-7.4

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
5
6
7
8
9
10
11

1.6
1.6
1.3
1.6
1.8
0.9
1.9
1.3
1.1
1.4
0.9

0.0
0.5
1.2
1.7
2.5
1.3
2.0
1.6
1.0
1.3
1.3

0.8
1.2
2.9
3.8
4.9
4.7
6.2
7.9
6.6
6.2
7.4

0.8
1.3
2.0
2.2
2.7
0.9
1.5
0.7
0.3
0.7
0.4

-

1.5
2.1
3.4
3.9
4.7
2.7
3.9
3.5
2.5
2.9
3.0

6.7
6.4
8.2
8.5
8.2
8.0
7.7
7.2
6.4
6.8
7.6

-2.4
-0.5
0.7
1.9
2.9
-2.2
-0.8
0.1
-0.9
-1.6
-3.6

-12.4
-12.6
-12.6
-11.5
-6.6
-8.4
-2.4
-6.1
-7.8
-4.4
-1.7

Source: Statistics Korea

64

January 2011

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
5
6
7
8
9
10
11
12

2.0
2.0
2.0
2.0
2.0
2.0
2.2
2.3
2.3
2.3
2.4
2.5

2.9
2.9
2.8
2.5
2.5
2.5
2.6
2.6
2.7
2.7
2.7
2.8

5.4
5.3
5.0
4.7
4.5
4.7
4.8
4.7
4.4
4.1
4.2
4.2

4.3
4.2
3.9
3.8
3.7
3.8
3.9
3.7
3.5
3.2
3.4
3.3

4.8
4.8
4.5
4.4
4.4
4.4
4.5
4.3
3.9
3.7
4.0
4.0

1,602.43
1,594.58
1,692.85
1,741.56
1,641.25
1,698.29
1,759.33
1,742.75
1,872.81
1,882.95
1,904.63
2,051.00

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

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
4
5
6
7
8
9
10
11

65,054.7
66,563.8
65,643.6
64,274.7
67,835.1
66,250.8
66,958.2
67,318.7
70,266.5
69,905.0
69,476.8

381,218.2
387,858.6
386,015.4
388,174.7
394,880.2
400,132.8
403,785.1
400,882.5
403,413.5
405,000.1
414,912.8

1,574,215.8
1,595,403.8
1,607,896.1
1,621,176.9
1,630,904.7
1,647,981.2
1,653,057.5
1,653,907.2
1,659,400.1
1,669,376.6
1,679,909.9

2,019,563.5
2,041,164.1
2,056,233.7
2,069,616.1
2,084,007.4
2,104,724.0
2,111,672.2
2,113.052.7
2,123.558.2
2,134,385.4
2,145,901.5

Y-o-Y change (%)
2008
2009

7.7
18.1

-1.8
16.3

14.3
10.3

11.9
7.9

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
4
5
6
7
8
9
10
11

1.6
5.6
0.0
4.7
12.9
11.3
12.7
11.1
17.8
9.8
13.6

15.0
15.9
12.6
10.8
10.9
10.5
11.1
11.0
10.2
9.0
11.8

9.3
9.4
9.3
9.4
9.3
9.7
9.3
8.5
8.1
7.6
7.4

8.1
8.6
8.8
9.0
8.9
9.3
8.8
8.0
7.7
7.2
7.3

Source: The Bank of Korea

66

January 2011

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

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
5
6
7
8
9
10
11
12

1,156.5
1,158.4
1,130.8
1,115.5
1,200.2
1,210.3
1,187.2
1,189.1
1,142.0
1,126.6
1,157.3
1,138.9

1,138.8
1,157.1
1,137.6
1,117.1
1,163.1
1,212.3
1,207.3
1,179.9
1,167.0
1,123.4
1,126.2
1,147.6

1,287.0
1,299.3
1,217.7
1,186.8
1,318.5
1,364.6
1,370.0
1,406.0
1,363.3
1,390.7
1,373.4
1,397.1

1,248.3
1,281.7
1,255.8
1,195.3
1,265.2
1,333.6
1,377.7
1,380.2
1,384.2
1,371.1
1,366.6
1,376.7

1,614.6
1,569.2
1,518.2
1,479.3
1,474.2
1,475.4
1,552.4
1,505.9
1,556.0
1,569.3
1,518.3
1,513.6

1,627.5
1,584.5
1,544.9
1,501.7
1,460.7
1,480.9
1,540.3
1,523.3
1,518.7
1,559.6
1,541.3
1,515.4

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

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
5
6
7
8
9
10
11
12

-15.5
-23.6
-17.9
-17.2
-5.7
-5.8
-4.3
-4.5
-3.9
-6.2
-0.9
-2.5

-15.4
-19.1
-22.2
-16.8
-7.6
-3.9
-4.5
-4.7
-4.3
-4.4
-3.3
-1.6

-15.4
-15.7
-13.9
-14.2
0.3
2.1
5.4
5.5
3.4
5.9
1.9
10.6

-16.1
-17.1
-16.0
-11.9
-3.0
2.2
3.0
5.8
3.9
5.4
4.8
5.8

-8.7
-18.7
-16.4
-17.2
-16.8
-18.5
-11.1
-15.4
-10.3
-11.9
-13.3
-9.6

-9.3
-13.4
-18.9
-15.2
-15.0
-16.2
-13.4
-13.8
-14.4
-10.5
-11.2
-11.1

Source: The Bank of Korea

Economic Bulletin

67

Editor-in-Chief
Bang, Moon-Kyu (MOSF)
Editorial Board
Kim, Young-Min (MOSF)
Shim, Jae-Hak (KDI)
Lee, In-Sook (KDI)
Coordinators
Kim, Dae-Hyun (MOSF)
Cho, Hyun-Joo (KDI)
Editors
Cho, Eun-Hyung (MOSF)
Kang, Ji-Eun (KDI)
Lee, Ji-Youn (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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