Vol. 33 | No.

4

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
New measures to boost home transactions

42

Economic News Briefing

44

Statistical Appendices

51

The Green Book
Current Economic Trends
Overview
While the Korean economy has continued to pick up with improving employment, indicators
showing domestic demand have slowed down due to rising oil prices and the outbreak of
foot-and-mouth disease, and prices have stayed on an upward track.
Mining and manufacturing production fell 2.3 percent month-on-month in February due to
the Lunar New Year holiday, without the effect of which the index would have continued a
usual increase. Service output lost 3.4 percent from the previous month with the outbreak of
food-and-month disease and unusual cold spells, both of which disturbed outdoor activities.
In February retail sales declined 6.1 percent month-on-month, as rising oil prices shrank
consumer sentiment, and after a surge of sales due to Lunar New Year Holiday demand in
the previous month.
Facilities investment dropped 8.4 percent month-on-month in February, while the manufacturing
operation ratio remained high, which would lead to high investment demand. Construction
investment decreased month-on-month for two months in a row, down 8.5 percent.
February’s economic composite indices posted month-on-month decreases of 0.2 points in
the coincident index and 0.6 percentage points in the leading index, as indicators for real
economy, finance, economic sentiment all went down due to the Lunar New Year holiday
and growing external uncertainties.
Although imports soared due to rising oil prices, a trade surplus in March expanded to
US$3.1 billion from the previous month’s US$2.5 billion, as the recovering global economy
supported exports.
Employment in February continued to improve, adding 469,000 jobs, with agricultural,
forestry & fishery industries recovering from the outbreak of foot-and-mouth disease and
helped by job generation in both manufacturing and services sectors.
The consumer price, despite drops in agricultural, livestock & fishery product prices, rose 4.7
percent in March, due to petroleum and manufactured products, whose prices increased in line
with rising international oil and commodities prices. Core consumer prices accelerated a rise
from 3.1 percent in the previous month to 3.3 percent, affected by increasing service charges.
In March, although the earthquake in Japan stirred financial markets in the beginning, stock
prices rose and foreign exchange rates fell, as investment sentiment recovered and foreign
capital flowed in.
Both home prices and rent posted a faster increase than the previous month in March, while
those in the Seoul metropolitan area slowed down with a moving season nearing an end.
To sum up, although the global economy has recovered at a faster pace, there are growing
uncertainties such as rising oil prices due to political unrest in the Middle East, worries over
Japan’s radiation leak, and the European fiscal crisis.
The Korean government will closely watch external changes and flexibly respond to them, so
that the Korean economy can stand in the way of solid recovery with employment steadily
improving and inflation stabilizing. On the other hand, to curb inflation expectations which
lead to price instability, it will swiftly respond to changes that could affect prices, such as an
international oil price rise, while stepping up efforts to enable the economy to deal with
external changes, for example, oil prices staying high for an extended period.
Economic Bulletin

3

1. Global economy
Growth is continuing in major countries such as the US and China but uncertainties are
growing in the global economy, along with unease regarding the effects of Japan’s
earthquake as well as rising oil prices affected by political instability in the Middle East and
North Africa and resurfacing European fiscal crisis.

US

US economic growth in the fourth quarter of 2010 has been revised upward from 2.8 percent
(preliminary, annualized q-o-q) to 3.1 percent (final).
In February, industrial production slowed down to 0.0 percent compared with the previous
month and the ISM manufacturing index slightly declined, while retail sales expanded by
1.0 percent.
ISM manufacturing index (base=50)
55.3 (Sep 2010)

56.9 (Oct)

58.2 (Nov)

58.5 (Dec)

60.8 (Jan 2011)

61.4 (Feb)

61.2 (Mar)

In February both new and existing home sales dropped 16.9 percent and 9.6 percent monthon-month, respectively, and in January the S&P/Case-Shiller Home Price Index fell for the
seventh consecutive month.
Unemployment declined to 8.8 percent in March, a drop of 0.1 percentage point month-onmonth, with the labor market slowly improving thanks to increasing non-farm payrolls.
On March 15, the Federal Open Market Committee estimated that the economy was making
a solid recovery and the employment market was gradually improving. The committee also
reiterated its view that the US$600 billion QE2 program, the Fed’s second round of
quantitative easing, should be carried out as planned.
(Percentage change from previous period)
20101

2009

Real GDP

2

20111

Annual

Q4

Annual

Q1

Q2

Q3

Q4

Jan

Feb

Mar

-2.6

5.0

2.9

3.7

1.7

2.6

3.1

-

-

-

-1.2

0.9

1.8

1.9

2.2

2.4

4.0

-

-

-

- Corporate fixed investment

-17.1

-1.4

5.5

7.8

17.2

10.0

7.7

-

-

-

- Housing construction investment

-22.9

-0.8

-3.0

-12.3

25.7

-27.3

3.3

-

-

-

Industrial production

-11.2

1.4

5.3

2.0

1.7

1.6

0.9

0.2

0.0

-

- Personal consumption expenditure

-6.4

1.5

6.5

2.1

1.3

0.8

3.3

0.7

1.0

-

5.2

11.9

-4.5

-12.3

7.5

-25.1

13.8

3.4

-9.6

-

New non-farm payroll employment
(thousand)3

-422

-135

78

39

181

-46

139

68

194

216

Consumer prices

-0.3

0.7

1.6

0.3

-0.1

0.4

0.7

0.4

0.5

-

Retail sales
Existing home sales

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

4

April 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 industrial production and consumption remained strong. China, however, faced
continued inflationary pressure due to increasing grain and raw material prices as well as
higher demand. The country’s trade balance shifted from a surplus of US$6.5 billion in
January to a deficit of US$7.3 billion in February with decreasing exports during the Lunar
New Year holiday and surging raw material imports due to a rise in international
commodities prices. Prices remained high, while liquidity growth slowed down as a result of
the key interest rate and banks’ reserve requirement ratio hikes.
M2 growth (%)
19.0 (Sep 2010)

19.3 (Oct)

19.5 (Nov)

19.7 (Dec)

17.2 (Jan 2011)

15.7 (Feb)

(Percentage change from same period in previous year)
Annual

Q4

Annual

Q1

20101
Q2

Q3

Q4

9.1

10.7

10.3

11.9

10.3

9.6

9.8

Fixed asset investment (accumulated)

30.5

30.5

24.5

26.4

25.5

24.5

Retail sales

15.5

16.9

18.4

17.9

18.5

18.4

Industrial production

11.0

18.0

15.7

19.6

16.0

Exports
Consumer prices

-16.0

0.2

31.3

28.7

-0.7

0.7

3.3

Producer prices

-5.4

-2.1

5.5

2009
Real GDP

1. Preliminary

20111
Feb
Jan
-

-

24.5

-

24.9

18.8

19.9

11.6

13.5

13.3

-

14.9

40.9

32.5

25.2

37.7

2.4

2.2

2.9

3.5

4.7

4.9

4.9

5.2

6.8

4.5

5.7

6.6

7.2

Source: China National Bureau of Statistics

Japan

Uncertainties regarding the Japanese economy significantly increased as a result of the March
11 earthquake, while industrial production and exports decelerated an increase. Japan’s
Cabinet Office said on March 23 that the economy had been affected by the earthquake and its
power to pick up had been weakening.
(Percentage change from previous period)
Annual

Q1

20101
Q2

2009
Real GDP
Industrial and mining production
Retail sales (y-o-y, %)
Exports (y-o-y, %)
Consumer prices (y-o-y, %)
1. Preliminary

Annual

Q4

Q3

Q4

20111
Feb
Jan

-6.3

1.8

4.0

1.5

0.5

0.8

-0.3

-

-

-21.8

5.9

16.0

7.0

1.5

-1.8

-1.6

1.3

0.4

-2.3

-0.7

2.5

3.8

3.7

3.2

-0.4

0.1

0.1

-34.2

-8.7

25.7

44.8

35.2

18.8

10.8

2.9

-

-1.4

-2.0

-0.7

-1.2

-0.9

-0.8

0.1

0.0

0.0

Source: Japan’s Statistics Bureau and Statistics Centre

Eurozone

Eurozone’s economic recovery has continued with Germany and other major countries
leading the way despite fresh concerns over fiscal crises in countries such as Portugal. The
EU summit on Mach 24-25 failed to agree on steps to raise the ceiling for loans from the
European Financial Stability Facility (EFSF) from 250 billion euros to 440 billion.
(Percentage change from previous period)
2009

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

6

April 2011

Source: Eurostat

1

20111

Annual

Q4

Annual

Q1

2010
Q2

Q3

Q4

Jan

Feb

-4.0

0.2

1.7

0.4

1.0

0.3

0.3

-

-

-14.9

1.1

7.1

2.4

2.4

1.0

1.7

0.0

-

-2.2

0.4

0.7

0.4

0.1

0.4

0.3

0.2

-0.1

-18.1

-9.4

20.1

12.9

22.3

22.8

21.8

27.0

-

0.3

0.4

1.6

1.1

1.5

1.7

2.0

2.3

2.4

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 0.3 percent quarter-on-quarter and 3.2
percent year-on-year in the fourth quarter of 2010.
(Percentage change from same period in previous year)
2010 1

2009

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

Annual

Q1

Q2

Q3

Q4

Annual

Q1

Q2

Q3

Q4

0.0

-4.7

-1.1

0.4

5.6

4.1

6.6

3.5

3.6

2.9

-

-0.3

3.7

1.4

0.9

-

0.5

0.7

1.4

0.3

3. Percentage change from previous period

In February, retail sales fell 6.1 percent month-on-month and 0.8 percent year-on-year with
non-durable and semi-durable goods leading the trend, following a surge of sales due to
Lunar New Year holiday demand in the previous month and as consumer sentiment dipped
affected by high oil prices and outbreaks of foot-and-mouth disease. On a month-on-month
basis, sales of durable, semi-durable and non-durable goods declined 2.2 percent, 8.2
percent, and 7.7 percent, respectively. On a year-on-year basis, both durable goods sales
and semi-durable goods sales expanded 9.0 percent and 2.3 percent, respectively, whereas
those of non-durable ones declined due to higher prices of food and oil products.
(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

20111

2010

Annual

Q4

Annual

Q1

Q2

Q3

Q4

Dec

Jan

Feb

2.7

10.9

6.6

9.7

4.9

7.5

5.1

4.3

10.6

-0.8

-

3.8

-

0.6

-0.1

3.3

0.8

-0.4

4.1

-6.1

8.2

34.1

14.9

29.6

5.6

17.0

10.6

6.2

14.0

9.0

21.8

77.0

11.1

48.9

-2.1

12.0

0.1

-8.6

7.7

2.9

1.3

4.5

6.8

2.5

6.2

6.6

11.1

12.0

11.1

2.3

1.2

4.0

2.2

3.2

3.3

3.0

-0.7

0.2

9.3

-6.9

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, tobacco, etc.
Source: Statistics Korea

Sales inched up 0.2 percent at convenience stores, which are not affected by holiday
demand, but fell 9.0 percent at department stores and 15.7 percent at large discounters, the
decline of which came after a sales increase due to Lunar New Year holiday demand. On a
year-on-year basis, sales grew by 10.0% at convenience stores and 3.1% at department
stores, but slipped by 10.8% at large discounters and 13.6% at supermarkets.
(Percentage change from same period in previous year)
20111

2010

2009
Annual

Q4

Annual

Q1

Q2

Q3

Q4

Dec

Jan

- Department stores

4.3

9.7

8.8

7.5

9.2

7.4

10.5

10.0

20.5

3.1

- Large discounters

-2.2

2.7

4.4

5.4

4.1

7.6

0.8

2.6

20.4

-10.8

3.0

12.7

5.6

9.7

1.8

7.3

4.2

2.4

6.6

1.9

- Specialized retailers2

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

8

April 2011

Feb

2-1

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

2-2

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

2-3

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

Economic Bulletin

9

Consumer goods sales in March, despite factors interfering in consumer sentiment such as
the earthquake in Japan and rising food and energy product prices, is projected to increase,
given a rise in household income and high estimates of advanced indicators.
Also, amid a continued rise in wages, the number of workers hired has grown, providing a
boost to real purchasing power.
Household income (y-o-y, %)
4.9 (Q4 2009)

7.4 (Q1, 2010)

7.6 (Q2)

6.1 (Q3)

2.4 (Q4)

Employment (y-o-y, thousand)
249 (Sep 2010)

316 (Oct)

303 (Nov)

455 (Dec)

331 (Jan 2011)

469 (Feb)

Sales at department stores and large discounters accelerated compared with February,
when they dropped considerably following a sales surge due to Lunar New Year holiday
demand, while domestic credit card spending and imports of consumer goods steadily grew.
However, gasoline sales slowed down due to high oil prices.
Value of credit card use (y-o-y, %)
19.5 (Oct 2010)

16.0 (Nov)

14.5 (Dec)

16.9 (Jan 2011)

10.8 (Feb)

24.0 (Jan 2011)

5.2 (Feb)

13.1 (Mar1)

Department store sales (y-o-y, %)
13.3 (Oct 2010)

10.1 (Nov)

11.6 (Dec)

12.4 (Mar1)

Large discounter sales (y-o-y, %)
0.0 (Oct 2010)

1.7 (Nov)

2.9 (Dec)

21.4 (Jan 2011)

-10.9 (Feb)

2.1 (Mar1)

5.7 (Feb)

-1.9 (Mar1)

Domestic sales of gasoline (y-o-y, %)
-0.7 (Oct 2010)

11.6 (Nov)

-0.5 (Dec)

5.6 (Jan 2011)

Consumer goods imports (y-o-y, %)
34.0 (Oct 2010)

37.2 (Nov)

17.6 (Dec)

44.0 (Jan 2011)

22.5 (Feb)

28.6 (Mar1)

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

With continuing uncertainties at home and abroad, consumer sentiment is declining, which
would lead to a slowdown in consumption to some extent. The sentiment fell below the
benchmark of 100 for the first time since May 2009 due to the earthquake and radiation leak
in Japan as well as rising food and energy prices.
Consumer Sentiment Index (CSI, base=100)
108 (Oct 2010)

10

April 2011

110 (Nov)

109 (Dec)

108 (Jan 2011)

105 (Feb)

98 (Mar)

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 fourth quarter of 2010 posted a quarter-onquarter decrease of 1.0 percent and a year-on-year gain of 15.9 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

20101

2009

Annual

Annual

Q3

Q4

Annual

Q1

Q2

Q3

Q4

-1.0

-9.8

-9.4

12.2

25.0

29.1

30.5

26.6

15.9

-

-

9.1

7.8

-

2.8

7.9

5.6

-1.0

-1.8

-13.5

-18.1

10.1

30.8

30.0

35.3

38.9

20.5

1.8

2.8

24.4

19.1

6.7

24.2

15.6

-6.6

0.6

3. Percentage change from previous period

Facility investment in February fell 8.4 percent month-on-month due to decreased
investment in machinery, but rose 1.6 percent year-on-year thanks to increased investment
in transportation equipment. Facility investment is projected to decrease, given a slowdown
in leading indicators, in particular machinery imports, and bleak outlook for corporate
investment amid growing external uncertainties. Still, the trend needs to be watched since
there are positive signs such as increasing domestic machinery orders and exports.
(Percentage change from same period in previous year)

Facility investment
(Seasonally adjusted)2
- Machinery
- Transportation equipment

2008

2009

2010

2011

Annual

Annual

Annual

Q1

Q2

Q3

Q4

-2.3

-9.4

25.1

30.0

29.5

29.3

-

-

-

4.0

6.7

-2.4

-12.6

30.5

32.5

Dec

Jan

1

Feb1

13.6

7.4

21.2

1.6

7.2

-5.4

1.3

3.5

-8.4

37.1

37.4

17.1

9.5

26.6

0.7

-1.7

4.6

4.3

19.3

2.8

-0.1

-1.2

-1.8

-1.3

6.0

-14.1

-10.3

11.2

10.3

24.7

-0.2

11.3

34.9

19.7

26.7

-

-

-

-4.0

15.2

-3.6

4.1

29.1

-15.5

-0.3

5.0

62.4

-37.9

-43.7

-42.2

-71.7

31.4

213.9

-31.5

20.9

-15.8

-18.2

21.8

22.6

35.5

22.0

7.8

4.3

25.1

27.1

6.4

-16.6

40.4

48.3

51.3

40.0

26.3

25.4

22.2

-1.9

Manufacturing operation ratio

-3.2

-3.5

8.8

19.2

10.8

1.8

5.3

3.7

5.6

1.6

Facility investment
adjustment pressure3

-1.7

-3.7

9.5

20.4

12.1

3.4

4.6

3.7

6.8

2.4

Domestic machinery orders
(Seasonally adjusted)2
- Public
- Private
- Machinery imports

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)

2010

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

12

April 2011

2011

Dec

Jan

Feb

Mar

Apr

103

103

104

104

102

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 fourth quarter of 2010 fell 1.0 percent
quarter-on-quarter and 2.9 percent year-on-year.
(Percentage change from same period in previous year)
2008
Annual

Annual

-2.8
-

- Building construction
- Civil engineering works

Construction investment

2

(Seasonally adjusted)3

20101

2009
Q3

Q4

Annual

Q1

Q2

Q3

Q4

3.4

3.2

4.0

-1.4

4.3

-2.3

-3.1

-2.9

-

-1.2

0.7

-

2.0

-4.2

-0.8

-1.0

-4.6

-2.3

0.2

2.4

-2.9

4.5

-5.1

-6.3

-2.8

-0.2

11.6

8.2

5.6

0.5

4.0

1.0

1.7

-2.9

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

The value of construction completion in February dropped 8.5 percent month-on-month and
19.2 percent year-on-year, as both building construction and civil engineering works declined.
(Percentage change from same period in previous year)

Construction completed(constant value)
(Seasonally adjusted)

- Civil engineering works
Construction orders (current value)

Annual1

Q1

Q2

Q3

Q41

Dec1

Jan1

Feb1

-8.1

1.6

-3.3

3.4

-4.3

-6.8

-4.3

-0.1

-11.0

-19.2

-

-

-

2.6

-3.1

-4.3

-1.6

8.7

-8.8

-8.5

-10.3

-6.4

-7.1

1.5

-7.7

-12.3

-8.5

-3.8

-13.6

-21.8

-4.0

16.1

2.2

6.0

0.6

1.9

1.2

4.2

-7.6

-15.7

-7.6

5.0

-18.7

-1.6

-6.7

-3.6

-40.2

-22.5

-33.9

-16.7

-

-

-

-31.4

0.2

-1.4

-22.9

15.3

-11.3

-2.6

-15.4

-14.2

-9.9

8.3

55.3

-1.3

-46.4

-48.5

-46.8

-14.6

13.5

44.3

-29.5

-12.4

-49.7

-7.0

-29.9

29.2

-1.1

-19.3

-20.1

-12.9

19.3

12.1

47.4

-14.3

18.1

15.3

59.5

-23.1

2

- Building construction
- Civil engineering works
Building permit area

2009
Annual

2

- Building construction

(Seasonally adjusted)

2008
Annual

2010

2011

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

It is unlikely that construction investment will rebound soon considering poor leading
indicators, including construction orders and building permit area and contracted
investment sentiment of construction companies.

2010

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

14

April 2011

2011

Nov

Dec

Jan

Feb

Mar

75.6

81.3

77.5

87.0

80.5

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 March increased 30.3 percent (preliminary) year-on-year to US$48.60 billion.
Despite external uncertainties caused by Japan’s earthquake and the political unrest in the
Middle East, exports continued to be solid, led by petroleum products (up 87.5%), vessels
(up 70.0 %), steel (up 33.2%), and automobiles (up 24.4%).
It was the second consecutive month that average daily exports posted more than two billion
dollars, registering US$2.03 billion, following February, when the index hit a record high.
By regional category, exports to the ASEAN countries (up 39.5%), EU (up 19.6%), China (up
18.6%) and the US (up 14.9%) increased along with those to Japan (up 64.3%).
(US$ billion)
2009

2010

2011

Annual

Annual

Q1

Q2

Q3

Q4

Jan

Feb

Mar1

365.53

466.38

101.08

120.24

116.32

128.75

44.60

38.61

48.60

-13.9

28.3

35.8

33.1

22.7

23.8

45.1

16.9

30.3

1.30

1.70

1.51

1.76

1.72

1.79

1.94

2.03

2.03

323.08

425.21

98.16

105.63

105.70

115.73

41.76

36.15

45.50

(y-o-y, %)

-25.8

31.6

37.4

42.8

24.6

24.6

32.4

16.4

27.9

Average daily imports

13.16

1.46

0.47

1.54

1.57

1.61

1.82

1.90

1.90

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

1. Preliminary
Source: Korea Customs Service

Imports in March increased 27.9 percent (preliminary) year-on-year to US$45.50 billion.
The imports of raw materials (up 38.0%) and consumer goods (up 28.6%) soared in line with
rising international commodity prices and recovering domestic demand, while those of
capital goods (up 10.4%) also posted a double-digit increase.
The current account balance in March posted a surplus of US$3.00billion (preliminary),
accelerating from the previous month.
(US$ billion)
2009

Trade Balance
1. Preliminary
Source: Korea Customs Service

16

April 2011

2010

2011

Annual

Annual

Q1

Q2

Q3

Q4

Jan

Feb

Mar1

40.45

41.17

2.93

14.61

10.62

13.02

2.92

2.46

3.10

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 February, while rising 9.1 percent year-on-year, fell
2.3 percent month-on-month, as the Lunar New Year holiday and labor-management
disputes interrupted operation.
By business category, semiconductors and parts (up 6.3%) and audio-visual communications
equipment (up 1.8%) increased month-on-month, while automobiles (down 9.4%) and
clothing and furs (down 22.2%) went down.
Shipments posted a month-on-month loss of 4.4 percent while inventories gained 2.7
percent, which pushed up the manufacturing inventory-shipment ratio for the first time in
four months.
By business category, the shipments of refined petroleum (up 0.9%) and audio-visual
communications equipment (up 0.1%) increased month-on-month, while those of
automobiles (down 9.9%) and machinery (down 6.0%) declined. The inventories of
semiconductors and parts (up 13.9%) and computers (up 20.4%) climbed month-on-month,
while those of automobiles (down 3.8%) and primary metals (down 1.9%) fell.
The average operation ratio of the manufacturing sector fell 2.2 percentage points to 82.5
percent, yet hovering above the 10 year average of 78.3 percent between 2000 and 2010 by
4.2 percentage points.
(Percentage change from same period in previous year)
2009
Annual
Production (q-o-q, m-o-m)

Mining and
manufacturing
activity2

20111

2010
Annual

Q3

Q4

Feb

Dec

Jan1

Feb1

-

-

1.1

-0.5

2.4

3.2

4.2

-2.3

(y-o-y)

-0.1

16.2

10.9

11.7

18.3

10.7

13.4

9.1

- Manufacturing

-0.2

16.7

11.2

11.9

18.9

11.0

13.8

9.3

9.3

25.2

19.1

15.2

38.4

18.9

17.0

17.9

∙Automobiles

-6.4

23.1

11.3

10.1

26.5

8.4

22.8

11.3

Shipment

-1.4

14.4

9.9

11.9

13.3

10.6

14.6

10.3

- Domestic demand

-1.6

11.5

6.6

8.3

11.4

4.3

10.2

6.3

∙ICT

3

- Exports

-0.9

18.2

14.5

16.9

16.0

19.6

20.9

15.7

Inventory4

-7.8

17.4

19.1

17.4

4.8

17.4

12.9

11.0

Manufacturing Average operation ratio (%)
activity
Production capacity

74.4

81.2

81.2

80.8

80.5

82.2

84.7

82.5

3.5

7.2

7.8

7.4

6.0

7.3

7.0

6.9

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 stay on an upward track month-onmonth with exports steadily growing and operation returning to normal after the Lunar New
Year holiday, but may slow down temporarily if Japan’s recovery from the earthquake takes
long, and the slow recovery interrupts supply of parts.
Exports (y-o-y, %)
27.6 (Oct 2010)

21.4 (Nov)

22.6 (Dec)

45.1 (Jan 2011)

16.9 (Feb)

30.3 (Mar1)

Automobile production (thousand)
387 (Oct 2010)
1. Preliminary

18

April 2011

389 (Nov)

397 (Dec)

388 (Jan 2011)

297 (Feb)

396 (Mar1)

6-1

Industrial production
Source: Statistics Korea (industrial activity trend)

6-2

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

6-3

Inventory
Source: Statistics Korea (industrial activity trend)

Economic Bulletin

19

7. Service sector activity
Service activity in February decreased 3.4 percent month-on-month due to sluggish
wholesale & retail sales and hotels & restaurant affected by the setback effect following
expenditure ahead of the Lunar New Year holiday. Limited outdoor activities amid the
outbreak of foot-and-mouth disease and cold wave also contributed to the trend.
Service activities in all areas except transportation services (up 0.1%) decreased month-onmonth. In particular, wholesale & retail sales (down 6.6%), financial & insurance services
(down 3.9%) and educational services (down 3.7%) showed a decline.
(Percentage change from same period in previous year)
Weight
Service activity index

2009

20111

2010

Annual

Q4

Annual

Q1

Q2

Q3

Q4

Dec

Jan

Feb

1.8

4.8

3.9

6.2

4.2

2.3

3.1

2.4

4.6

0.2

100.0

- Wholesale & retail sales

21.8

-0.4

5.4

5.7

7.4

5.6

5.0

4.7

4.2

8.2

-1.0

- Transportation services

9.0

-6.6

1.4

12.0

14.1

14.3

10.1

10.0

12.0

8.4

4.4

- Hotels & restaurants

7.7

-1.4

-0.2

1.2

1.2

0.7

1.3

1.7

0.0

-0.4

-0.3

- Information & communication services

8.4

0.9

1.6

1.9

1.0

0.4

2.2

3.6

5.4

8.1

1.5

- Financial & insurance services

15.3

7.8

5.6

4.6

6.7

2.5

1.4

8.2

7.9

8.0

7.2

- Real estate & renting

6.3

5.3

21.3

-8.6

11.5

-2.4

-15.9

-24.3

-25.4

-19.2

-20.2

- Professional, scientific & technical services

4.8

1.2

1.6

-0.7

0.8

2.1

-3.9

-1.9

-4.4

0.0

-7.5

- Business services

2.9

-3.0

0.0

7.4

5.3

8.1

7.6

8.4

8.2

8.7

4.3

- Educational services

10.8

2.1

2.8

2.0

3.2

1.4

0.5

3.1

4.4

4.3

-1.8

- Healthcare & social welfare services

6.0

10.4

13.2

8.8

11.7

11.0

8.6

4.6

2.5

6.3

3.6

- Entertainment, cultural & sports services

2.9

-0.5

-3.8

-0.4

-3.9

-0.1

-0.4

2.7

-4.4

1.7

0.0

- Membership organizations

3.8

-2.1

1.0

4.3

1.6

6.0

5.0

4.5

2.5

6.2

1.0

- Sewerage & waste management

0.4

3.7

-0.2

5.1

6.7

6.0

1.7

6.4

7.3

6.9

-4.0

1. Preliminary
Source: Statistics Korea

Amid continuing decline in wholesale & retail sales affected by higher food and energy
prices, service activity is expected to be weighed down by weak logistics performance and
leisure activities affected by Japan’s devastating earthquake and radioactive contamination.
* Fresh food price index (year-on-year, %)
37.4 (Nov, 2010)

33.8 (Dec)

30.2 (Jan, 2011)

25.2 (Feb)

19.0 (Mar)

* Gasoline price (monthly average, won)
1,716 (Nov, 2010)

20

April 2011

1,771 (Dec)

1,825 (Jan, 2011)

1,850 (Feb)

1,939 (Mar)

es

usin ty m
ess ana
sup gem
port ent
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ices
Edu
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ona
l se
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es
Hea
lthc
are
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ices
nme
nt, c
ultu
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& o mbersh
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ther ip o
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es
pair
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eria
,
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vitie
s

Prof

& re
ntin
g
ess
iona
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,
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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)

February 2011 service industry by business

Source: Statistics Korea (service industry activity trend)

Economic Bulletin

21

8. Employment
The number of workers on payroll in February increased by 469,000 from a year earlier,
while the employment rate (seasonally adjusted) rose by 0.5 percentage points year-on-year
to 57.1 percent.
By industry, employment in manufacturing (up 262,000), services (up 227,000) and construction
(up 27,000) climbed while that in agriculture, forestry & fishery (down 51,000) declined.
Hiring in manufacturing maintained a high growth rate helped by increasing production in
mining and manufacturing.
The service sector continued to expand employment with increasing health & welfare (up
203,000), business assistance (up 105,000) and professional, scientific & technical services
(up 63,000).
By status of workers, the number of regular workers (up 604,000) and daily workers (up
27,000) increased whereas temporary workers (down 57,000) decreased. Non-wage workers
(down 105,000) including self-employed workers (down 130,000) continued to decline.

2009
Annual
Number of employed (million)

Q1

Q2

2010
Q3

Q4

Annual

Feb

Q1

2011

Q2

Q3

Q4

Jan

Feb

23.51 22.90 23.74 23.75 23.63 23.83 23.60 23.04 24.17 24.12 23.99 23.20 23.34

Employment rate (%)

58.6

57.4

59.3

59.1

58.7

58.7

56.6

57.0

59.6

59.3

58.9

56.8

57.1

(seasonally adjusted)

58.6

58.8

58.6

58.7

58.5

58.7

58.4

58.3

58.9

58.9

58.6

58.4

58.9

Employment growth (y-o-y, thousand)

-72 -146 -134

-1

-6

323

125

132

433

369

358

331

469

(Excluding agriculture, forestry & fishery)

-34 -160 -109

24

110

405

268

296

518

414

393

435

520

-126 -163 -151 -143

-49

191

45

61

172

262

269

224

262

-43 -113 -103 -107

33

-87

-61

44

92

57

15

27

200

310

313

325

83

80

203

227

- Manufacturing
- Construction

-91

- Services

179

38

- Agriculture, forestry & fishery

-38

14

-25

-25 -116

-82 -143 -164

-85

-45

-35 -104

-51

- Wage workers

247

73

175

356

385

517

329

371

623

541

532

535

574

∙Regular workers

383

318

313

386

515

697

593

651

766

671

699

593

604

22 -136

-5

125

105

-34

-24

-37

42

-26 -114

-13

-57

-45

27

∙Temporary workers
∙Daily workers
- Non-wage workers
∙Self-employed workers
- Male

154

261

261

-158 -108 -133 -155 -235 -146 -239 -243 -185 -104

-53

-319 -220 -309 -357 -391 -194 -204 -239 -189 -172 -174 -204 -105
-259 -197 -286 -276 -279 -118
31

-23

24

34

- Female

-103 -124 -158

- 15 to 29

-127 -212

- 30 to 39

-70 -106

-91 -130 -146 -191 -130

116

117

188

207

212

181

292

89

181

-34

-94

142

9

15

245

163

146

150

177

-99 -123

-77

-43

-16

-12

-58

-44

-57

-72

-37

-173 -159 -213 -169 -149

-4

-37

-42

-13

21

17

-29

-36

- 40 to 49

-24

8

-27

-30

-46

29

-39

-21

48

40

50

82

87

- 50 to 59

198

193

156

211

230

294

255

251

342

295

287

247

310

54

23

49

109

37

47

-39

-44

114

57

60

102

145

- 60 or more
Source: Statistics Korea

22

April 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 February decreased by 74,000 year-on-year to
1,095,000.The unemployment rate (seasonally adjusted) dropped by 0.4 percentage points
to 4.5 percent.
On a month-on-month basis, the number of unemployed persons in February increased by 108,000
to 996,000 (seasonally adjusted) as people who applied for government-run job programs but
were not selected were counted as unemployed persons.
The youth unemployment rate fell 1.5 percentage points year-on-year to 8.5 percent.

2009

2010

Annual

Q1

Q2

Q3

Q4

Number of unemployed (thousand)

889

908

943

886

817

Unemployment growth (y-o-y, thousand)

119

107

176

134

60

Annual

Feb

Q1

920 1,169 1,130
31

244

2011

Q2

Q3

Q4

Jan

868

873

808

918 1,095

-75

-13

-10

-298

222

Feb

-74

- Male

80

83

116

95

25

-7

101

83

-47

-48

-16 -160

-63

- Female

40

24

60

39

36

38

143

139

-29

35

6 -139

-11

Unemployment rate (%)

3.6

3.8

3.8

3.6

3.3

3.7

4.9

4.7

3.5

3.5

3.3

3.8

4.5

(Seasonally adjusted)

3.6

3.5

3.9

3.7

3.5

3.7

4.4

4.3

3.5

3.6

3.4

3.6

4.0

- 15 to 29

8.1

8.6

8.0

8.1

7.6

8.0

10.0

9.5

7.7

7.6

7.1

8.5

8.5

- 30 to 39

3.6

3.7

3.9

3.5

3.3

3.5

4.0

3.9

3.6

3.5

3.2

3.6

4.2

- 40 to 49

2.4

2.5

2.6

2.4

2.3

2.5

3.0

2.9

2.3

2.5

2.2

2.2

2.7

- 50 to 59

2.5

2.4

2.7

2.5

2.2

2.5

3.2

3.2

2.1

2.3

2.3

2.5

2.8

- 60 or more

1.6

1.6

1.9

1.6

1.5

2.8

6.0

5.8

2.1

2.0

1.9

3.3

6.5

Source: Statistics Korea

The economically inactive population in February was up 63,000 from a year earlier to
16,450,000. Meanwhile, the labor force participation rate (seasonally adjusted) rose 0.3
percentage points year-on-year to 59.8 percent.
The number of workers quitting jobs due to rest, time-off and leisure (up 244,000) and
housework (up 85,000) increased, while those who quit jobs due to old age (down 121,000),
childcare (down 44,000) and education (down 40,000) decreased.

2009
Annual

Q1

Q2

2010
Q3

Q4

Annual

Feb

Q1

2011

Q2

Q3

Q4

Jan

Feb

Economically inactive population (million) 15.70 16.09 15.35 15.53 15.83 15.84 16.38 16.25 15.49 15.66 15.96 16.73 16.45
Labor force participation rate (%)

60.6

59.7

61.7

61.3

60.7

61.0

59.5

59.8

61.8

61.5

60.8

59.0

59.8

(seasonally adjusted)

60.6

60.9

60.9

61.0

60.6

61.0

61.0

61.0

61.0

61.1

60.7

60.6

61.4

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

447

514

445

374

456

143

151

166

146

128

133

424

63

40

78

48

19

15 -125 -152 -118 -126 -149 -107

-66

-44

- Housework

148

131

125

100

235

201

238

237

175

303

189

270

85

- Education

31

90

58

11

-36

12

-84

-74

23

46

55

51

-40

- Old age

88

52

102

105

92

80

196

193

59

43

25

-76

-121

123

162

112

94

123

-56 -189 -187

-27

15

-27

337

244

- Childcare

- Rest, time-off and leisure
Source: Statistics Korea

24

April 2011

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
Despite concerns over a slowdown in the global economic recovery, the Korean stock market
gained in March helped by inflows of funds from foreign investors.
Stock market volatility accelerated in early-March due to external risk factors such as Japan’s
devastating earthquake and the consequent nuclear power plant accidents, continuing
political upheaval in the Middle East and resurgent debt crisis in Southern Europe.
After mid-month, however, the KOSPI rallied led by increasing demand on the back of eased
external risk factors, the coordinated G7 intervention to stabilize the Japanese yen,
expectations for the upcoming earnings season and continuing inflows of foreign funds.
Foreign investors shifted to the net-buying position on Korean shares to purchase 1.1 trillion
won in March helped by increasing risk tolerance level, recovering investment sentiment and
high expectations for earnings season.
(End-period, point, trillion won)
KOSPI

KOSDAQ

Feb 2011

Mar 2011

Change1

Feb 2011

Mar 2011

Change1

Stock price index

1,939.3

2,106.7

+167.4 (+8.6%)

504.5

525.4

+21.0 (+4.2%)

Market capitalization

1,086.2

1,181.4

+95.2 (+8.8%)

99.0

103.9

+4.9 (+5.0%)

Average daily trade value

6.2

6.8

+0.6 (+9.6%)

2.1

2.1

+0.02 (+1.0%)

Foreign stock ownership

32.5

32.5

-0.01 (-0.03%)

10.4

9.4

-1.0 (-10.0%)

1. Change from the end of the previous month

9.2 Exchange rate
The won/dollar exchange rate in February decreased 32.0 won from 1,128.7 won at the end of
February to wrap up the month at 1,096.7 won. Due to Japan’s earthquake, a possible leakage
of radioactive material from the earthquake-damaged Fukushima nuclear power plant and
continuing tumult in the Middle East, the won/dollar exchange rate rose to 1135.3 won.
The won/dollar exchange rate, however, fell as international financial markets stabilized
helped by G7’s coordinated intervention in the currency market on March 18.
The won/100 yen exchange rate was down 56.6 won month-on-month as the yen weakened
after the coordinated G7 intervention.
(End-period)
2007

2008

2009

2010

2011

Dec

Dec

Dec

Dec

Feb

Mar

Change1

Won/Dollar

936.1

1,259.5

1,164.5

1,134.8

1,134.8

1,096.7

3.5

Won/100 Yen

828.6

1,396.8

1,264.5

1,393.6

1,382.2

1,325.6

5.1

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

April 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 dipped in March due to rising demand for safe assets amid heightened
external risks.
Despite Bank of Korea’s key interest rate hike and worries over inflation, the yields fell due
to the “flight to safety assets” trend affected by the Japanese earthquake and turmoil in the
Middle East.
(End-period)
2006

2007

2008

2009

2010

Dec

Dec

Dec

Dec

Dec

Jan

Feb

2011
Mar

Change1

Call rate (1 day)

4.60

5.02

3.02

2.01

2.51

2.75

2.76

2.99

+23

CD (91 days)

4.86

5.82

3.93

2.88

2.80

3.05

3.17

3.39

+22

Treasury bonds (3 yrs)

4.92

5.74

3.41

4.44

3.38

3.96

3.84

3.73

-11

Corporate bonds (3 yrs)

5.29

6.77

7.72

5.56

4.27

4.75

4.63

4.51

-12

Treasury bonds (5 yrs)

5.00

5.78

3.77

4.98

4.08

4.41

4.28

4.11

-17

1. Basis point, changes in March 2011 from the previous month

9.4 Money supply & money market
The M2 (monthly average) in January 2011 expanded 6.5 percent from a year earlier
excluding cash management accounts (CMAs), which were included in M2 since July 2009.
The month-on-month M2 growth slowed down due to the government’s early spending cuts,
outflows of foreign portfolio investments, equity investments by asset management
companies (AMCs) and beleaguered savings banks.
(Percentage change from same period in previous year, average)
2008
Annual Annual
M1

20104

2009

20114

Q1

Q2

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Dec

Jan

Jan1

18.9

17.8

11.8

14.5

10.7

10.8

11.2

12.9

12.6

426

-1.8

16.3

10.8

17.6

M2

14.3

10.3

11.5

10.1

9.9

9.8

8.7

9.4

9.5

8.6

7.4

7.2

6.5

1,676

Lf 3

11.9

7.9

8.8

7.3

7.8

7.8

8.2

8.5

9.1

8.2

7.1

6.9

6.6

2,153

2

1. Balance at end January 2011, 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 February 2011, bank deposits increased significantly while asset management company
(AMC) deposits accelerated the decrease.
Bank deposits greatly accelerated due to the large increase in time deposits, led by higher
deposit rates and the inflows of funds exiting savings banks and those of local government funds.
Despite a decrease in redemptions, asset management company (AMC) deposits plunged
due to net outflows of Treasury funds and concerns over an interest rate hike.
(Monthly change, end-period, trillion won)
2009
Annual

2010
Feb

Annual

Feb

2011
Dec

Jan

Feb

Feb1

Bank deposits

54.8

23.1

36.9

16.9

-8.7

2.1

14.3

1,061

AMC deposits

-27.6

11.4

-16.7

9.7

-11.2

-5.2

-8.5

1,301

1. Balance at end February, trillion won

28

April 2011

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 February expanded from the previous
month’s US$150 million to US$1.18 billion.
Despite rising international commodity prices, the goods account surplus maintained a twodigit growth to post US$1.58 billion, helped by solid exports.
The service account deficit considerably narrowed to US$570 million from the previous
month’s deficit of US$1.64 billion on the back of decreased overseas travel and business
service payments.
The primary income account decelerated the surplus to US$540 million from the previous
month’s deficit of US$700 million due to increasing dividend payments. Meanwhile, the
secondary income account deficit narrowed to US$380 million from US$470 million a
month earlier.
(US$ billion)
2009

2010

2011

Annual

Annual

Q1

Q2

Q3

Q4

Dec

Jan

Feb1

Current account

32.79

28.21

0.26

8.86

9.93

9.16

2.11

0.15

1.18

- Goods balance

37.87

41.90

4.79

12.24

12.54

12.34

3.68

1.56

1.58

- Service balance

-6.64

-11.23

-4.20

-1.87

-2.96

-2.20

-1.15

-1.64

-0.57

- Income balance

2.28

0.77

0.55

-1.01

1.30

-0.07

-0.03

0.70

0.54

- Current transfers

-0.71

-3.23

-0.87

-0.50

-0.95

-0.91

-0.39

-0.47

-0.38

Source: The Bank of Korea
1. Preliminary

The capital and financial account (preliminary) in February expanded the outflow to US$2.26
billion from the previous month’s outflow of US$1.28 billion.
Capital & financial account balance (US$ billion)
-5.87 (Oct 2010)

-2.19 (Nov)

-0.34 (Dec)

-1.28 (Jan 2011)

-2.26 (Feb)

The direct investment account slightly decelerated the outflow to US$1.64 billion from the
previous month’s outflow of US$1.73 billion with increasing inflows of foreign direct
investment.
The portfolio investment account shifted to an outflow of US$3 billion from the previous
month’s inflow of US$900 million as foreign investors turned to a net-selling position of
Korean bonds due to concerns over a possible spread of the Middle East unrest.
The financial derivatives account turned to a deficit of US$360 million from the previous
month’s surplus of US$570 million.
The other investment account expanded the net inflow to US$4.86 billion from the previous
month’s US$1.77 billion as domestic banks retrieved their short-term loans.
The current account surplus in March is expected to expand from the previous month driven
by strong exports.

30

April 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
Consumer prices in March rose 4.7 percent year-on-year and 0.5 percent month-on-month.
Although prices of agricultural, livestock & fishery products fell compared with the previous
month, high oil product prices and a price hike in personal services led to an increase in
consumer prices.
Core consumer prices, which exclude oil and agricultural products, rose 3.3 percent year-onyear and 0.3 percent month-on-month in February due to a low base effect and an increase
in personal service charges. Consumer prices for basic necessities, a barometer of perceived
consumer prices, were up 4.9 percent compared with the same month of the previous year.

Consumer price inflation
2010

2011

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Month-on-Month (%)

0.3

0.5

0.1

-0.2

0.3

0.3

1.1

0.2

-0.6

0.6

0.9

0.8

0.5

Year-on-Year (%)

2.3

2.6

2.7

2.6

2.6

2.6

3.6

4.1

3.3

3.5

4.1

4.5

4.7

Core consumer prices (y-o-y)

1.5

1.5

1.6

1.7

1.7

1.8

1.9

1.9

1.8

2.0

2.6

3.1

3.3

(m-o-m)

0.1

0.2

0.3

0.2

0.2

0.2

0.3

0.0

0.1

0.3

0.6

0.7

0.3

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

2.9

3.2

3.0

2.8

2.7

2.6

4.1

4.8

3.6

3.9

4.7

5.2

4.9

Source: Statistics Korea

Prices of agricultural, livestock & fishery products fell 0.8 percent month-on-month, as
weather conditions improved and the alert level of foot-and-mouth disease was lowered
from “serious” to “caution”.
Prices of agricultural, livestock & fishery products in Mar (m-o-m, %)
Green chili (32.4), chicken (7.5), Chinese cabbage (6.3), spinach (-35.7), green onion (-13.2), strawberry (-9.8),
pork (-6.1), domestic beef (-2.8)

Prices of industrial products such as processed food and durable goods rose 1.3 percent
month-on-month, as oil product prices spiked due to an increase in the prices of
international oil and commodities.
Public utility charges remained stabilized in general, falling 0.8 percent month-on-month,
partly due to low high school tuition fees (down 17.3%, m-o-m). Personal service charges
increased 0.5 percent month-on-month, in particular the cost of dining out.

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

Agricultural,
livestock & fishery
products

Industrial
products

Oil
products

Housing
rents

Public
utility

Personal
services

0.5

-0.8

1.3

4.1

0.6

-0.8

0.5

Contribution (%p)

0.50

-0.08

0.41

0.26

0.06

-0.12

0.17

Year-on-Year (%)

4.7

14.9

5.9

15.3

3.2

0.6

3.0

Contribution (%p)

4.70

1.32

1.84

0.90

0.29

0.10

1.05

Source: Statistics Korea

32

April 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
International oil and domestic oil product prices rose in March.
International oil prices (Dubai crude) continued to rise due to political turmoil in the Middle
East, with the earthquake in Japan adding volatility to prices.
(US$/barrel, period average)
2008

2009

Annual

Annual

Annual

Sep

Oct

Nov

Dec

Jan

2011
Feb

Mar

Dubai crude

94.3

61.9

78.1

75.2

80.3

83.6

88.9

92.5

100.5

108.5

Brent crude

97.5

61.7

79.7

77.9

83.2

85.8

91.8

96.8

104.1

114.6

WTI crude

99.9

61.9

79.5

75.3

81.9

84.4

89.2

89.5

89.6

103.0

2010

Source: Korea National Oil Corporation

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 surged as a result of high international oil prices.
Won/dollar exchange rate (average)
1,148 (Dec 2010)

1,120 (Jan 2011)

1,118 (Feb)

1,122 (Mar)
(Won/liter, period average)

2008
Annual

2009
Annual

Sep

2010
Oct

Annual

Nov

Dec

Jan

2011
Feb

Mar

Gasoline prices

1,692

1,601

Diesel prices

1,614

1,397

1,710

1,700

1,700

1,716

1,771

1,825

1,850

1,939

1,503

1,499

1,500

1,518

1,570

1,621

1,652

1,756

Source: Korea National Oil Corporation

International commodities were shown to be experiencing price adjustments in March, due
to concerns over low demand as a result of the earthquake in Japan. Rising inventories of
key commodities also contributed to the decline.
Non-ferrous metal prices fell, led by copper and nickel, as the earthquake quelled demand,
stocks of major items such as copper increased, and import demand from China decreased.
Copper inventories have been rising since last December, and China’s copper imports fell 36
percent month-on-month in February.
International grain prices decreased due to adjustments made from recent price surges, and
also due to expectations of rising inventories. In March, USDA announced that the world
grain stocks may increase from 426 million tons to 436 million tons.
Prices of non-ferrous metals and grain in Mar (m-o-m, %)
Aluminum (2.1), wheat (-11.0), raw sugar (-9.7), nickel (-5.1), zinc (-4.8), copper (-3.2), tin (-2.6), soybean (-2.4),
corn (-0.9)

Reuters index*

(Period average)

2008

2009

2010

Annual

Annual

Annual

Sep

Oct

Nov

Dec

Jan

Feb

Mar

2,536

2,079

2,553

2,765

2,824

2,952

3,119

3,228

3,323

3,221

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

34

April 2011

2011

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
The upward trend of nationwide apartment sales prices accelerated in March, rising 1.3
percent month-on-month.
Apartment sales prices in the Seoul metropolitan area increased for the fourth straight
month, up 0.3 percent month-on-month.
Apartment sales prices in areas excluding the Seoul metropolitan area continued an upward
trend, led by South Gyeongsang Province (up 4.5%, m-o-m), Busan (up 2.8%, m-o-m) and
Daejeon (up 2.5%, m-o-m). Apartment prices in 5 metropolitan cities and other cities
climbed 2.3 percent and 2.2 percent each, surpassing the national average.

Nationwide apartment sales prices

(Percentage change from previous period)

2007 2008

2009

2010

Annual Annual

Annual Annual Mar

Oct

2011
Nov

Dec

Jan

Feb

Mar Mar 71 Mar 141 Mar 211 Mar 281

Nationwide

2.1

2.3

1.6

2.5

0.3

0.3

0.5

0.6

0.6

1.1

1.3

0.37

0.33

0.36 0.32

Seoul

3.6

3.2

2.6

-2.2

0.0

-0.2

-0.1

0.1

0.2

0.3

0.1

0.03

0.02

0.01 0.00

0.5

-1.9

3.9

-1.8

0.0

-0.2

-0.1

0.1

0.2

0.4

0.2

0.04

0.02

0.00 0.00

8.3

9.4

0.9

-2.7

0.0

-0.2

-0.1

0.0

0.1

0.2

0.1

0.02

0.02

0.02 0.00

Seoul metropolitan area

4.0

2.9

0.7

-2.9

0.0

-0.2

-0.1

0.1

0.1

0.3

0.3

0.08

0.06

0.04 0.03

5 metropolitan cities

-0.6

1.0

2.8

8.7

0.7

0.8

1.2

1.2

1.2

2.0

2.3

0.61

0.61

0.66 0.62

Gangnam

2

Gangbuk3

1. Weekly trends

2. Upscale area of Southern Seoul

3. Northern Seoul

Source: Kookmin Bank

Nationwide apartment rental prices in March were up 2.3 percent from the previous month.
The increase rate was slightly higher than the previous month’s 2.0 percent. Growth
continued in Seoul (up 1.8%, m-o-m), the Seoul metropolitan area (up 2.4%, m-o-m) and
Gyeonggi Province (up 3.1%, m-o-m).
Apartment rental price increase in major districts in Seoul (m-o-m, %)
Gangnam (0.6), Seocho (0.7), Songpa (1.3), Seongbuk (4.1)

Nationwide apartment rental prices

(Percentage change from previous period)

2007 2008

2009

2010

Annual Annual

Annual Annual Mar

Oct

Nov

Dec

Jan

Feb

Mar Mar 71 Mar 141 Mar 211 Mar 281

2011

Nationwide

1.9

0.8

4.5

8.8

0.8

1.0

1.4

1.0

1.1

2.0

2.3

0.63

0.56 0.53

0.44

Seoul

2.2

-1.8

8.1

7.4

0.7

1.2

1.1

0.8

1.1

2.1

1.8

0.46

0.38 0.29

0.13

0.5

-3.6

10.4

8.8

0.5

1.2

1.4

1.0

1.3

1.9

1.4

0.37

0.23 0.25

0.10

Gangbuk3

Gangnam

4.6

0.5

5.4

5.6

0.9

1.1

0.8

0.5

1.0

2.4

2.3

0.57

0.57 0.34

0.16

Seoul metropolitan area

2.1

-0.4

5.6

7.2

0.7

1.1

1.3

0.7

1.0

2.1

2.4

0.63

0.58 0.46

0.32

5 metropolitan cities

1.1

1.6

3.9

12.0

1.0

0.9

1.5

1.4

1.3

2.1

2.2

0.58

0.53 0.59

0.58

2

1. Weekly trends

2. Upscale area of Southern Seoul

3. Northern Seoul

Source: Kookmin Bank

Apartment sales transactions in February decreased 2.83 percent from the previous month’s
79,724 to 77,471. From a year earlier, the transactions were up 16.5 percent.

Apartment sales transactions
2007

(Monthly average, thousand)

2008

2009

Annual Annual Annual Sep
Nationwide

84

74

77

Source: Korea Land & Housing Corporation

36

April 2011

90

2010

Oct

Nov

87

82

2011

Dec Annual May Jun Jul Aug Sep Oct Nov Dec Jan Feb
82

71

62

65

62

57

57

73

86

106

80

77

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 February rose for the fourth consecutive month (up 0.09%), but
were still 2.03 percent lower than the pre-crisis peak reached in October 2008. Land prices
were 0.23 percent lower compared with the previous year, with the increase pace shown to
be decelerating evenly nationwide.
Land prices in the Seoul metropolitan area (up 0.10%), Seoul (up 0.12%), Gyeonggi Province
(up 0.08%) and Incheon (up 0.06%) were all almost on par with prices of the previous
month.
Land price increases in Seoul metropolitan area (m-o-m, %)
0.01 (Nov 2010)

0.12 (Dec)

0.10 (Jan 2011)

0.10 (Feb)

Land prices in areas excluding the Seoul metropolitan area rose 0.07 percent month-onmonth in February, continuing the upward trend from October 2010.
Land price increases in areas excluding Seoul metropolitan area (m-o-m, %)
0.06 (Nov 2010)

0.10 (Dec)

0.07 (Jan 2011)

0.07 (Feb)

Land prices by region
2007

(Percentage change from previous period)
2008

2009

Annual Annual
Nationwide

3.88

-0.31

2010

2011

Q4

Annual

Q1

Q2

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Jan

Feb

-4.09

0.96

-1.20

0.35

0.88

0.94

1.05

0.70

0.29

-0.05

0.11

0.09

0.09

Seoul

5.88

-1.00

-6.34

1.40

-1.38

0.68

1.30

0.81

0.53

0.72

0.02

-0.25

0.39

0.12

0.12

Gyeonggi

4.22

-0.26

-4.29

1.22

-1.62

0.37

1.13

1.36

1.49

0.96

0.53

-0.08

0.07

0.08

0.08

Incheon

4.86

1.37

-3.57

1.99

-1.39

0.53

1.16

1.70

1.43

1.08

0.43

-0.10

0.02

0.06

0.06

Source: Korea Land & Housing Corporation

Nationwide land transactions in February recorded 176,000 land lots, down 7.6 percent from
the previous month. On a year-on-year basis, however, the transactions were up 5.1 percent.
Land transactions were 2.6% less than the five-year February average of 181,000 land lots.
Month-on-month land transactions decreased slightly in areas such as Seoul (down 5.8%,
m-o-m), Busan (down 9.7%, m-o-m), Gwangju (down 4.6%, m-o-m), and Ulsan (down
12.4%, m-o-m).

Land sales transactions

(Land lot, thousand)

2007 2008

Nationwide
Seoul

2009

2010

2011

Annual Annual Annual

Sep

Oct

Nov

Dec

Annual

Feb

Aug

Sep

Oct

Nov

Dec

Jan

Feb

208

208

203

226

212

207

241

187

168

163

145

181

208

257

191

176

33

26

22

28

25

19

21

16

17

12

11

14

18

24

18

17

Gyeonggi

49

45

46

56

52

48

58

41

34

36

32

40

45

58

46

38

Incheon

13

13

10

13

14

11

12

8

7

7

7

8

9

11

8

9

Source: Korea Land & Housing Corporation

38

April 2011

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 for the first time in three months
in February (down 0.2p, m-o-m).
Among the components of the coincident composite index, the mining & manufacturing
production index, manufacturing operation ratio index, domestic shipment index and number
of non-farm payroll employment rose, while the rest decreased from the previous month.
Components of coincident composite index in February (m-o-m)
Mining & manufacturing production index (1.7%), manufacturing operation ratio index (0.8%), domestic
shipment index (0.5%), number of non-farm payroll employment (0.3%), value of construction completion
(-3.0%), volume of imports (-1.3%), wholesale & retail sales index (-0.5%) service activity index (-0.1%)

The year-on-year leading composite index in February fell 0.6 percentage points from the
previous month.
Among the components of the leading composite index, five components, including the value
of machinery orders received and indicator of inventory cycle, rose while others such as the
consumer expectations index and liquidity in the financial institutions fell month-on-month.
Components of the leading composite index in February (m-o-m)
Value of machinery orders received (2.6%), indicator of inventory cycle (2.1%p), ratio of job openings to job
seekers (1.2%p), composite stock price index (0.9%), spreads between long & short term interest rates
(0.1%p), consumer expectations index (-4.0), value of capital goods imports (-2.6%), value of construction
orders received (-1.0%), net terms of trade index (-1.0%), liquidity in the financial institutions (-0.8%)

2010

2011
1

Feb1

Aug

Sep

Oct

Nov

Dec

0.2

-0.3

-0.3

0.2

0.8

1.4

0.3

101.1

100.4

99.6

99.5

99.8

100.8

100.6

-0.3

-0.7

-0.8

-0.1

0.3

1.0

-0.2

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

0.3

0.0

-0.3

0.2

0.5

0.6

-0.2

12 month smoothed change
in leading composite index (%)

5.4

4.5

3.3

2.8

2.9

3.0

2.4

-0.8

-0.9

-1.2

-0.5

0.1

0.1

-0.6

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

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

40

April 2011

Jan

1

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
New Measures to Boost Home Transactions

The Korean government unveiled new measures to boost home transactions on March 22.
As part of the measures, the government will lower the real estate acquisition tax rate by half
and seek to remove a cap on the price of newly built houses. Meanwhile, restrictions on
debt-to-income (DTI) ratio were reintroduced as scheduled at the beginning of April.

Original measures
The Korean government announced on August 29, 2010 a temporary relaxation of DTI ratio
regulations for mortgage loans in order to stimulate the depressed housing market. The
temporary easing of the DTI ratio limit was applicable to those who do not own houses, and
when they buy houses worth less than 900 million won in a non-speculative area, along with
mortgage facilities of up to 200 million won available to first time home buyers. In addition,
people who have multiple houses would have been able to avoid the heavy transfer tax for
another two years from the end of 2010, and have benefited from the property acquisition
tax reduction for another year from the same date. The August 29 measures have helped
increase home transactions, although accompanied by rising household debt. To curb
increasing household debt and keep boosting home transactions, the government
announced another round of home transaction stimulus measures on March 22, 2011.
Apartment transaction volume in the Seoul metropolitan area (thousand)
9.0 (Sep 2010)

12.4 (Oct)

17.5 (Nov)

20.2 (Dec)

16.0 (Jan 2011)

19.9 (Feb)

Mortgage lending (trillion won)
2.6 (average between Jan and Aug 2010)
2.8 (Feb)

42

April 2011

3.3 (Sep)

3.5 (Oct)

4.4 (Nov)

5.3 (Dec)

1.8 (Jan 2011)

New measures
1) Reinstatement of the DTI rule
The Korean government decided to end the temporary easing of the DTI ratio as scheduled
at the end of March and the previously-imposed limit has been reinstated starting April. The
DTI ratio is 40 percent for speculative areas, 50 percent for non-speculative areas in Seoul,
and 60 percent for Incheon and Gyeonggi Province.
The March 22 DTI measure is designed to be complemented by preferential DTI ratios of up
to 15 percentage points more, if a mortgage is conditioned without a grace period and with
fixed-rate principal and interest installments. Credit ceilings of microloans to which the DTI
regulation does not apply, is raised from 50 million won to 100 million won. Mortgage loan
facilities for first time home buyers, scheduled to expire at the end of March, will be
maintained by the end of 2011. The loan facilities are available to households in which all
members do not own houses and whose household income is less than 40 million won a
year, when they purchase houses worth less than 600 million won and smaller than 85m2 in
a non-speculative area. Home buyers who fulfill these requirements will be able to use the
loan facilities to the amount of up to 200 million won at the annual interest rate of 5.2
percent.
2) Lowered home acquisition tax
The real estate acquisition tax is halved, and the new rate will be effective until the end of
2011. The acquisition tax on houses worth less than 900 million won is lowered from 2.0
percent to 1.0 percent, while houses worth more than 900 million won from 4.0 percent to
2.0 percent. In addition, individuals who own more than one house are subject to pay a
lower tax rate from 4.0 percent to 2.0 percent.
Meanwhile, the government decided to indemnify local governments against tax cut losses,
and the actual indemnity plans will be discussed in a task force team meeting.
3) No more price ceiling on new homes
To encourage private builders to supply more homes, the government is pursuing easing of
price ceiling on new homes as soon as possible. The related bill is pending approval in the
National Assembly.

Economic Bulletin

43

Economic
News Briefing

Korean economy grows 6.2% in 2010 (Preliminary)
Korea’s real gross domestic product (GDP) expanded by 6.2 percent in 2010 compared with
the previous year due to increased facilities investment, robust exports of goods & services
and rising private consumption.
On the production side, manufacturing surged 14.8 percent while construction edged down
by 0.1 percent. Services rose by 3.5 percent led by rapid growth of transport & storage
services, wholesale & retail trade and health & social work.
On the expenditure side, private consumption increased 4.1 percent as expenditures on
durable goods showed a strong upward trend and those on non-durable goods and semidurable goods also turned to an increase. Exports of goods & services grew by 14.5 percent,
with increased exports of semi-conductors, automobile and machinery. Imports of goods
and services also rose by 16.9 percent.
Real gross national income (GNI) in 2010 grew 5.5 percent and per capita GNI at current
prices increased to US$20,759 from US$17,193 a year earlier.
Meanwhile, the Monetary Policy Committee of the Bank of Korea decided on April 12 to keep
the key interest rate unchanged at 3.00 percent after having raised it by 25 basis points each
in January and March.

44

April 2011

<GDP by production and expenditure*>

(Percentage change from previous period)

2009

2010 1

2010 1 (Original) 2

Annual

Annual

Q1

Q2

Q3

2010 1 (Seasonally adjusted) 3
Q4

Q1

Q2

Q3

Q4

GDP

0.3

6.2

8.5

7.5

4.4

4.7

2.1

1.4

0.6

0.5

Agriculture, forestry and fishery

3.2

-4.3

0.9

-2.2

-7.3

-6.7

-3.1

-2.5

-2.5

0.2

-1.5

14.8

22.2

17.8

9.8

11.1

4.2

4.0

2.3

0.1

Construction

1.8

-0.1

2.2

0.8

0.9

-3.2

1.4

-0.1

-1.2

-3.2

Services

Manufacturing

1.2

3.5

4.5

3.7

2.8

3.0

1.5

0.2

0.3

1.1

Private consumption

0.0

4.1

6.6

3.5

3.6

2.9

0.5

0.7

1.4

0.3

Government consumption

5.6

3.0

3.4

2.9

2.5

3.2

3.6

0.3

-0.1

-0.4

-9.8

25.0

29.1

30.5

26.6

15.9

2.8

7.9

5.6

-1.0

4

Facility investment

3.4

-1.4

4.3

-2.3

-3.1

-2.9

2.0

-4.2

-0.8

-1.0

Goods exports5

-0.2

15.8

20.8

14.7

11.6

16.9

3.0

7.4

2.5

3.0

Goods imports

-7.8

18.2

21.6

20.4

16.0

15.5

4.8

7.1

3.6

-0.7

1.6

5.5

9.6

5.6

4.5

3.0

1.2

1.3

0.4

0.0

Construction investment

GNI

5

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

Korea revises its economic outlook for 2011
On April 13, the Bank of Korea kept its forecast of 4.5 percent growth for 2011 as originally
projected in December 2010. GDP growth is predicted to register 4.8 percent next year. The
central bank raised its consumer inflation projection for this year to 3.9 percent from a
previous estimate of 3.5 percent, while revising the core inflation outlook slightly up from 3.1
percent to 3.3 percent. For 2012, consumer price inflation is forecast at 3.4 percent and core
inflation at 3.6 percent.
Meanwhile, on April 11, the International Monetary Fund (IMF) assessed that the world
economic recovery has solidified but downside risks remain due to the differences in the
recovery pace. The Washington-based agency projected that the world economy will grow by
4.4 percent and 4.5 percent in 2011 and 2012, respectively. In advanced economies, growth
is projected at 2.4 percent in 2011 and 2.6 percent in 2012 while that in emerging economies
as a whole is expected to reach 6.5 percent in both 2011 and 2012. IMF’s growth forecast for
the Korean economy remained unchanged at 4.5 percent in 2011 and 4.2 percent in 2012.

Economic Bulletin

45

Inbound FDI in Q1 posts US$2,005 million
Foreign direct investment (FDI) into Korea recorded US$2,005 million in the first quarter of
2011, up 30.1 percent from US$1,541 million a year earlier. Despite overseas risk factors such
as political unrest in the Middle East and North Africa and a devastating earthquake in Japan,
Korea’s FDI maintained a strong growth.
FDI from almost all regions except the Middle East and the EU increased. In contrast to a
contraction last year, US direct investment soared 1,068 percent and investment by Japan
increased 40.1 percent year-on-year.
By industry, year-on-year FDI in the manufacturing and service sector increased 20.3 percent
and 45.7 percent, respectively. FDI in the service sector spiked due to a surge in investments
in business services and retail services.

(Notification basis, US$ million, %)
2009

1

2010

1

20111

Total

1,677

1,541

2,005

Changes2

-38.2

-8.2

30.1

1. First quarter of the year
2. Percentage change from the same period of the previous year

Korea’s year-end fiscal data for 2010
Korea had 261.2 trillion won of tax revenues in 2010, with the surplus rising to 7.8 trillion won
and annual expenditures reaching 248.7 trillion won. The revenues were 0.1 trillion won less
than those of 2009 but 5.8 trillion won more than the planned amount of 255.4 trillion won.
Korea had a fiscal deficit of 13.0 trillion won, down 1.1% compared to GDP, but a
consolidated surplus of 1.4% compared to GDP. Meanwhile, the national debt hit 373.8
trillion won, or 31.9% of GDP, posting an increase of 27.7 trillion won from the previous year
and a decrease of 20.8 trillion won from the 2010 budget. The national debt including the net
debts of local governments is estimated to reach 392.8 trillion won, or 33.5% of GDP, a 33.2
trillion won rise from the previous year.
As of the end of 2010, the government had 185.6 trillion won worth of credit, an increase of
6.2%, or 10.9 trillion won, compared to 2009. National assets recorded 315.1 trillion won, a
rise of 18.3 trillion won, or 6.2 percent from 2009, with the value of state-held securities
climbing by 10.8 trillion won and that of the government land shrinking by 0.4 trillion won.

46

April 2011

Korea’s financial regulator tightens rules for savings banks
On March 17, the Financial Services Commission (FSC) unveiled measures to tighten
supervision on savings banks. Acknowledging that many savings banks have been
vulnerable to improper practices of their largest shareholders, the FSC plans to toughen
controls on the major shareholders and hold them more accountable for the banks’ business
operations. For example, when the biggest shareholder has allegedly committed an illegal
act, the Financial Supervisory Service (FSS) will be able to launch an investigation, and if
found guilty of improper conduct, both the shareholder and the savings bank will be held
subject to fines.
Savings banks whose capital adequacy ratio is above 8 percent and non-performing ratio is
below 8 percent have been exempted from the lending cap applied to the rest of the savings
bank industry, which is 8 billion won per borrower. This preferential treatment, however, has
caused problems by allowing certain savings banks to engage in disproportionate
investment in high-risk assets and excessive business expansion. In order to boost the
financial health of savings banks, the FSC has decided to end this preferential treatment
while raising the lending cap from 8 billion won per borrower to 10 billion won.
In response to claims that investors suffer from lack of transparency in accounting and
contracts made based on incomplete information, the FSC will strengthen market disciplines
and limit the issuance of subordinated bonds. Finally, the FCS plans to tighten surveillance
over savings banks in risk of insolvency. The FSC will work closely with related government
agencies to seek civil and criminal charges against savings banks’ major shareholders and
management if they were to be found responsible for any business failure and misconduct.

National Assembly passes Macro-prudential Stability Law
On April 5, Korea’s National Assembly passed the Partial Amendment Law to the Foreign
Exchange Transactions Act. Previously, the Korean government proposed the Macro-prudential
Stability measures on December 19, 2010 in an effort to deal with a surge of capital inflows and
Korea’s exposure to global financial market turbulence.
The amendment shall come into force from August 1, 2011. Non-deposit foreign currency
liabilities at all commercial banks and state-run banks such as Korea Development Bank,
Export-Import Bank of Korea, Industrial Bank of Korea, National Agricultural Cooperative
Federation, National Federation of Fisheries Cooperative and Korea Finance Cooperation are
subject to the measures. Those banks will be charged 20 basis points on their foreign liabilities
that mature in less than a year, 10 basis points for 1-3 year liabilities, 5 basis points for 3-5 year
liabilities, and 2 basis points for more than 5 year liabilities.

Economic Bulletin

47

Korea’s self-sufficiency in key minerals rises to 27 percent
Korea’s self-sufficiency rate in key mineral resources rose in 2010 from a year earlier on
greater output from overseas mines owned by local companies, said the Ministry of
Knowledge Economy. According to the ministry, the rate for the six key minerals came to 27
percent of demand last year, up from 25.1 percent a year earlier. In addition, the selfsufficiency rate for rare earth elements reached 8.5 percent of demand in 2010, higher than
the 5.5 percent target for the year.
Local companies invested a record US$2.64 billion in overseas resources development
projects last year, up 157 percent from US$1.02 billion a year earlier. In terms of investment
return, local companies retrieved US$553 million through the sales of minerals produced, up
39 percent from US$397 million in 2009.
Meanwhile, Korea National Oil Corporation (KNOC) signed a US$1.55 billion deal with
Anadarko Petroleum Corporation to secure 23.67 percent of the stake in the Maverick Basin
assets in Texas. The shale oil assets in Texas hold the equivalent of 491 million barrels of oil
and are producing 28,000 barrels a day. In a separate deal, Korea acquired 95 percent of
Altius Holdings, which owns four oil blocks in Kazakhstan with reserves totaling 56.9 million
barrels. The two acquisitions may boost KNOC’s output by 16,500 barrels a day.

Korea plans KSP joint consultation with multilateral development banks
The Ministry of Strategy and Finance announced on March 29 that it has agreed to conduct
joint consultations with five multilateral development banks (MDBs) as part of its Knowledge
Sharing Program (KSP). The joint consulting with the MDBs - the World Bank (WB), Asian
Development Bank (ADB), Inter-American Development Bank (IDB), European Bank for
Reconstruction and Development (EBRD) and African Development Bank (AfDB) - expands
the existing bilateral KSP to include a third party.
The joint consultation system will help boost the effectiveness of KSP projects by combining
the MDBs’ specialization in their respective regions with Korea’s unique experience in
economic development. The KSP, which was established in 2004 to share Korea’s economic
development experience with the developing countries, has conducted about 200 consulting
projects in 22 countries.
Meanwhile, Korea spent US$ 1.17 billion on official development assistance (ODA) in 2010,
up 25.7 percent from the previous year. This is the second highest increase rate among DAC
member countries after Portugal, which posted a 31.5 percent increase last year.

48

April 2011

Korea to host Inter-American Development Bank annual meeting in 2015
Korea has been selected to host the 56th annual meeting of the Inter-American Development
Bank (IDB) in 2015, an opportunity that the government expects will boost economic
cooperation between Korea and Latin America. The Ministry of Strategy and Finance
announced on March 29 that the decision was made unanimously at the 52nd round of the
IDB annual meeting that ended on March 28 in Canada. The IDB was established in 1959 to
promote economic and social development in Latin America, and Korea has been a member
of the bank since March 2005.

Economic Bulletin

49

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 completion 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
2009
2010P

Gross fixed capital formation

Final
consumption
expenditure

Agri., fores.
& fisheries

Manufacturing

2.8
4.6
4.0
5.2
5.1
2.3
0.3
6.2

-5.4
9.1
1.3
1.5
4.0
5.6
3.2
-4.3

5.4
10.0
6.2
8.1
7.2
2.8
-1.5
14.6

0.5
1.0
4.6
5.1
5.1
2.0
1.2
3.9

Construction

Facilities

4.4
2.1
1.9
3.4
4.2
-1.9
-1.0
7.0

8.5
1.3
-0.4
0.5
1.4
-2.8
3.4
-1.4

-1.5
3.8
5.3
8.2
9.3
-1.0
-9.8
25.0

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

2009

I
II
III
IV

-4.2
-2.1
1.0
6.3

2.5
0.0
5.0
5.0

-13.6
-7.1
1.8
13.1

-2.2
0.7
1.5
4.8

-7.5
-3.0
-1.0
6.2

1.6
4.3
3.2
4.0

-21.9
-18.1
-9.4
12.2

2010P

I
II
III
IV

8.5
7.5
4.4
4.7

0.9
-2.2
-7.3
-6.7

22.2
17.8
9.8
11.1

5.9
3.4
3.4
3.0

12.5
6.8
6.8
3.4

4.3
-2.3
-3.1
-2.9

29.1
30.5
26.6
15.9

P: Preliminary
Source: The Bank of Korea

52

April 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

2008
2009
2010

Production
index

Y-o-Y
change (%)

Shipment
index

Y-o-Y
change (%)

Inventory
index

Y-o-Y
change (%)

Service
production
index

Y-o-Y
change (%)

119.8
119.7
139.1

3.4
-0.1
16.2

118.3
116.7
133.5

2.6
-1.4
14.4

125.5
115.5
135.6

7.1
-7.8
17.4

116.2
118.3
122.9

3.6
1.8
3.9

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

114.1
116.7
116.1
117.8

6.8
4.8
3.6
-0.4

2009

I
II
III
IV

103.5
118.7
125.3
131.2

-15.1
-5.4
4.9
16.8

102.6
116.6
120.7
126.9

-14.4
-5.2
2.3
12.9

115.9
110.4
113.0
115.5

-6.2
-17.0
-14.3
-7.8

112.9
118.0
118.9
123.4

-1.1
1.1
2.4
4.8

2010

I
II
III
IV

129.8
141.0
139.0
146.6

25.4
18.8
10.9
11.7

124.0
135.1
132.7
142.0

20.9
15.9
9.9
11.9

124.6
127.7
134.6
135.6

7.5
17.5
19.1
17.4

119.9
122.9
121.6
127.3

6.2
4.2
2.3
3.1

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

113.9
109.9
118.4
116.1
117.8
116.2
116.5
115.2
116.5
116.6
114.4
122.2

8.0
6.3
6.1
6.2
5.1
3.0
4.6
2.2
3.7
1.0
-0.9
-1.3

2009

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

94.4
100.7
115.3
117.2
116.1
122.7
124.6
117.8
133.4
128.1
130.7
134.8

-25.3
-9.4
-10.1
-7.4
-8.2
-0.6
1.0
1.4
12.1
1.2
18.5
34.8

93.7
100.3
113.8
115.6
113.8
120.5
120.1
113.6
128.3
124.0
126.6
130.1

-23.1
-8.7
-10.7
-7.4
-7.9
0.0
-1.2
-1.0
9.1
-0.2
15.3
26.2

123.9
117.7
115.9
112.3
111.5
110.4
111.5
112.0
113.0
112.4
113.6
115.5

0.1
-5.2
-6.2
-9.8
-13.3
-17.0
-15.7
-15.1
-14.3
-16.4
-14.6
-7.8

112.1
109.9
116.7
117.1
117.6
119.2
117.9
117.0
121.8
119.3
119.3
131.6

-1.6
0.0
-1.4
0.9
-0.2
2.6
1.2
1.6
4.5
2.3
4.2
7.7

2010

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

129.3
119.1
141.1
140.0
140.0
142.9
143.1
136.5
137.3
145.3
145.3
149.2

37.0
18.3
22.4
19.5
20.6
16.5
14.8
15.9
2.9
13.4
11.2
10.7

123.1
113.6
135.2
134.7
133.4
137.3
135.7
131.0
131.4
140.8
141.4
143.9

31.4
13.3
18.8
16.5
17.2
13.9
13.0
15.3
2.4
13.5
11.7
10.6

119.8
123.3
124.6
126.3
129.9
129.7
134.1
134.5
134.6
133.5
132.8
135.6

-3.3
4.8
7.5
12.5
16.5
17.5
20.3
20.1
19.1
18.8
16.9
17.4

118.5
116.7
124.4
121.5
123.3
124.0
122.4
120.9
121.6
123.2
123.8
134.9

5.7
6.2
6.6
3.8
4.8
4.0
3.8
3.3
-0.2
3.3
3.8
2.5

146.6
129.9

13.4
9.1

141.1
125.3

14.6
10.3

135.3
136.9

12.9
11.0

124.0
116.9

4.6
0.2

2011

1P
2P

P: Preliminary
Source: Statistics Korea

54

April 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
119.3
127.9

5.1
3.5
7.2

97.2
93.8
102.1

-3.2
-3.5
8.8

77.6
74.4
81.2

Production
capacity index
(2005=100)

2008
2009
2010
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

82.0
80.8
77.9
69.7

2009

I
II
III
IV

117.0
118.0
120.1
122.2

2.8
2.5
3.5
5.0

81.7
95.3
97.8
100.3

-17.7
-7.6
2.4
10.1

67.0
74.3
77.8
78.4

2010

I
II
III
IV

124.3
126.5
129.5
131.3

6.2
7.2
7.8
7.4

97.4
105.6
99.6
105.6

19.2
10.8
1.8
5.3

80.4
82.3
81.2
80.8

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

83.0
81.3
81.7
82.0
80.2
80.1
78.5
77.7
77.6
77.6
69.3
62.3

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

116.9
116.9
117.1
117.7
117.7
118.5
119.3
119.8
121.1
121.6
121.9
123.1

2.7
2.7
2.8
3.0
2.0
2.4
3.1
3.3
4.2
4.6
4.8
5.5

73.7
79.8
91.6
94.1
93.3
98.4
98.8
91.0
103.6
99.1
100.5
101.2

-28.6
-10.8
-12.8
-10.1
-9.7
-2.8
-1.0
-1.3
9.6
-4.8
12.4
27.0

63.7
67.3
70.0
72.5
73.7
76.6
77.7
76.4
79.3
77.8
78.0
79.3

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

123.6
123.9
125.3
125.5
126.5
127.4
128.6
129.7
130.1
130.8
131.1
132.1

5.7
6.0
7.0
6.6
7.5
7.5
7.8
8.3
7.4
7.6
7.5
7.3

97.1
88.4
106.7
106.1
103.8
107.0
105.3
96.2
97.2
106.6
105.4
104.9

31.8
10.8
16.5
12.8
11.3
8.7
6.6
5.7
-6.2
7.6
4.9
3.6

79.3
80.5
81.5
81.7
82.1
83.1
82.7
79.7
81.2
79.7
80.5
82.2

2011 1P
2P

132.1
132.4

7.0
6.9

102.5
89.8

5.6
1.6

84.7
82.5

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

2008
2009
2010

Consumer
goods
sales
index

Y-o-Y
change (%)

Durable
goods

Y-o-Y
change (%)

Semi-durable
goods

Y-o-Y
change (%)

Non-durable
goods

Y-o-Y
change (%)

110.6
113.6
121.1

1.1
2.7
6.6

126.4
136.8
157.2

1.6
8.2
14.9

104.9
106.3
113.5

-3.0
1.3
6.8

110.0
111.3
113.7

1.4
1.2
2.2

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

106.5
113.4
111.9
122.4

-4.5
1.5
2.8
10.9

114.7
142.0
135.5
155.1

-11.7
5.9
7.7
34.1

103.1
107.7
94.3
120.2

-0.5
0.5
0.3
4.5

107.7
109.2
114.3
113.9

-1.4
0.4
1.8
4.0

2010

I
II
III
IV

116.8
118.9
120.3
128.6

9.7
4.9
7.5
5.1

148.7
149.9
158.5
171.6

29.6
5.6
17.0
10.6

105.7
114.4
100.5
133.6

2.5
6.2
6.6
11.1

111.1
112.8
117.7
113.1

3.2
3.3
3.0
-0.7

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
101.2
109.7
108.6
117.0
114.6
110.8
106.7
118.2
120.6
119.6
127.1

-2.9
-5.7
-4.9
-4.2
1.7
7.6
1.1
0.5
6.8
9.9
9.8
12.8

104.1
116.0
124.0
123.9
144.0
158.0
138.2
122.5
145.9
144.8
153.5
167.1

-18.9
-1.5
-13.6
-10.9
5.9
24.3
-1.8
0.8
26.6
16.9
41.0
46.1

103.6
97.1
108.5
109.3
113.3
100.4
95.4
86.5
101.1
116.1
121.8
122.6

-0.8
-0.7
0.0
0.7
1.1
-0.5
-2.3
0.3
3.1
4.0
1.2
8.4

114.8
99.2
109.2
106.8
113.1
107.6
110.8
112.9
119.3
116.6
109.2
116.0

5.5
-8.5
-1.2
-2.5
0.7
3.0
4.4
0.8
0.4
9.4
1.4
1.5

2010

115.8
114.2
120.3
116.5
121.2
118.9
120.7
116.7
123.5
125.5
127.8
132.6

6.7
12.8
9.7
7.3
3.6
3.8
8.9
9.4
4.5
4.1
6.9
4.3

145.5
141.3
159.2
144.6
147.0
158.1
164.0
154.4
157.0
165.2
172.1
177.4

39.8
21.8
28.4
16.7
2.1
0.1
18.7
26.0
7.6
14.1
12.1
6.2

108.4
99.6
109.1
113.1
120.7
109.3
103.5
90.2
107.7
130.0
133.4
137.3

4.6
2.6
0.6
3.5
6.5
8.9
8.5
4.3
6.5
12.0
9.5
12.0

108.7
112.1
112.6
110.4
116.0
112.1
115.1
116.4
121.6
111.1
111.9
116.2

-5.3
13.0
3.1
3.4
2.6
4.2
3.9
3.1
1.9
-4.7
2.5
0.2

128.1
113.3

10.6
-0.8

165.9
154.0

14.0
9.0

120.4
101.9

11.1
2.3

118.8
104.4

9.3
-6.9

2011

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

P: Preliminary
Source: Statistics Korea

56

April 2011

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

Period

2008
2009
2010

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
116.4
122.0

1.6
1.4
4.8

126.8
135.1
139.6

1.8
6.5
3.3

109.9
108.9
115.0

1.4
-0.9
5.6

-

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

107.7
114.8
119.9
123.3

-8.3
-0.8
5.4
10.2

113.4
139.9
139.4
147.8

-14.9
2.5
13.3
29.2

105.3
104.7
112.0
113.4

-5.2
-2.5
1.7
2.2

-

2010

I
II
III
IV

118.5
119.9
122.0
127.6

10.0
4.4
1.8
3.5

136.7
139.5
139.2
142.9

20.5
-0.3
-0.1
-3.3

111.2
112.1
115.1
121.6

5.6
7.1
2.8
7.2

-

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

107.6
103.8
111.7
112.6
113.5
118.4
119.0
110.9
129.7
121.7
118.5
129.6

-14.2
-2.5
-7.4
-6.0
-1.9
6.0
1.0
-0.7
15.8
1.7
10.7
18.8

99.0
115.5
125.7
120.6
140.7
158.4
146.3
125.8
146.1
139.5
146.7
157.1

-25.3
-6.2
-12.8
-16.4
2.8
23.3
8.9
6.1
25.8
9.2
32.2
50.5

111.0
99.0
106.0
109.3
102.6
102.3
108.0
104.9
123.1
114.5
107.2
118.6

-9.4
-0.8
-4.6
-0.7
-4.3
-2.6
-2.8
-3.7
11.6
-1.8
1.7
6.8

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

123.7
110.3
121.6
120.5
117.5
121.8
121.9
120.5
123.6
129.3
128.3
125.3

15.0
6.3
8.9
7.0
3.5
2.9
2.4
8.7
-4.7
6.2
8.3
-3.3

136.0
129.7
144.5
135.4
135.3
147.7
145.6
133.9
138.0
145.7
144.7
138.4

37.4
12.3
15.0
12.3
-3.8
-6.8
-0.5
6.4
-5.5
4.4
-1.4
-11.9

118.8
102.6
112.3
114.6
110.4
111.4
112.4
115.2
117.8
122.8
121.8
120.1

7.0
3.6
5.9
4.8
7.6
8.9
4.1
9.8
-4.3
7.2
13.6
1.3

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

2011 1
2
3

129.7
106.3
-

4.9
-3.6
-

132.9
125.8
-

-2.3
-3.0
-

128.4
98.5
-

8.1
-4.0
-

108
105
98

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

Estimated
facility investment
index
(2005=100)

Domestic
machinery
shipment
excluding ship
(2005=100)

Total

Public

Private

23,360

2,330

21,030

12,279

133.2

135.0

I
ll
III
IV

5,544
6,247
5,662
5,908

525
402
380
1,023

5,019
5,845
5,282
4,885

2,910
3,564
3,026
2,779

120.5
137.5
139.1
135.6

116.7
144.2
136.2
142.8

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

1,767
1,641
2,135
1,843
2,189
2,214
2,092
1,710
1,860
1,719
1,770
2,418

169
107
249
127
115
160
105
106
169
101
102
820

1,598
1,534
1,886
1,716
2,074
2,055
1,987
1,604
1,691
1,618
1,668
1,599

1,008
880
1,022
1,054
1,329
1,180
1,068
897
1,061
964
981
834

103.7
112.8
145.1
132.9
132.4
147.2
139.1
140.8
137.5
130.8
134.7
141.2

108.3
102.7
139.1
139.4
140.9
152.2
138.6
132.8
137.1
134.8
136.7
156.9

2011 1P
2P

2,115
2,079

116
129

2,000
1,950

1,156
1,149

125.7
114.6

127.7
123.9

2010P
2010

Manufacturing

Y-o-Y change (%)
2010P

11.2

-37.9

21.8

32.3

25.1

22.5

I
ll
III
IV

10.3
24.7
-0.2
11.3

-43.7
-42.2
-71.7
31.4

22.6
35.5
22.0
7.8

45.6
58.5
27.4
4.5

30.0
29.5
29.3
13.6

18.1
25.7
27.4
18.4

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

11.8
-2.0
20.6
27.2
56.3
2.6
-16.5
26.6
2.3
9.9
-9.2
34.9

-27.1
-79.4
37.2
39.0
19.6
-68.6
-90.2
48.9
-15.5
20.8
-76.5
213.9

18.5
32.8
18.7
26.4
59.1
24.4
38.7
25.3
4.5
9.3
10.0
4.3

39.4
66.8
36.7
57.1
101.1
28.8
41.8
37.1
9.6
13.2
4.2
-3.7

26.3
23.7
38.3
32.5
28.4
27.7
31.5
41.2
17.1
21.6
13.1
7.4

27.6
5.2
22.1
24
32.1
21.8
28.1
36.9
18.8
25
19.5
12.4

19.7
26.7

-31.5
20.9

25.1
27.1

14.6
30.6

22.2
1.6

17.9
20.6

2010

2011

1P
2P

P: Preliminary
Source: Statistics Korea

58

April 2011

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

Period

Type of order

Private

Public

Private

35,163

52,777

88,675

29,013

54,628

Public

92,238

2010P

Type of order

Domestic
construction
orders received
(total)

Value of
construction
completion
(total)

2010

I
ll
llI
lV

20,329
24,082
22,005
25,823

7,467
9,129
7,784
10,784

11,977
13,931
13,160
13,708

18,110
25,295
19,095
26,175

7,955
6,890
6,814
7,355

9,087
16,737
11,406
17,399

2010

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

6,496
6,145
7,687
7,354
7,741
8,986
7,453
7,150
7,401
7,356
8,041
10,426

2,257
2,303
2,908
2,628
2,841
3,660
2,690
2,460
2,634
2,856
3,278
4,650

3,972
3,614
4,391
4,460
4,537
4,934
4,419
4,370
4,371
4,135
4,401
5,173

7,043
4,752
6,314
6,636
8,717
9,941
7,475
4,145
7,475
4,415
7,551
14,209

2,410
2,170
3,375
1,829
1,672
3,388
3,903
1,327
1,584
1,185
2,023
4,146

4,274
2,232
2,582
4,456
6,652
5,629
3,351
2,698
5,355
3,111
5,217
9,071

6,157
5,333

2,415
2,087

3,476
3,019

4,658
4,959

1,295
1,396

2,697
2,445

2011

1P
2P

Y-o-Y change (%)
2010P

2.7

8.5

0.5

-18.7

-43.7

2.8

2010

I
ll
llI
lV

6.3
2.0
-0.4
3.3

13.8
5.5
-1.1
15.9

3.8
2.6
1.0
-4.8

-1.6
-6.7
-3.6
-40.2

-14.9
-61.9
-22.0
-52.1

8.0
105.4
13.2
34.4

2010

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

7.2
0.8
10.5
-1.0
7.3
0.2
6.7
6.5
-11.8
0.9
-0.5
8.2

5.1
12.9
22.2
-0.1
9.6
6.7
14.0
1.4
-14.6
10.5
17.1
18.6

9.6
-3.5
5.3
1.0
7.8
-0.3
3.9
11.2
-9.8
-4.8
-9.4
-0.5

20.2
-4.6
-16.5
-14.1
17.4
-16.9
25.6
-12.5
-18.1
-58.8
-48.7
-22.5

-11.5
-22.2
-11.9
-68.7
-62.9
-56.0
23.5
-26.2
-58.0
-75.0
-61.4
-22.8

49.2
8.0
-25.8
178.8
138.3
49.8
38.3
-5.0
11.4
-45.7
-41.2
-23.9

-5.2
-13.2

7.0
-9.4

-12.5
-16.5

-33.9
-16.7

-46.3
-35.7

-36.9
9.5

2011

1P
2P

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
111.0
111.2
112.0
112.8
113.6
114.2
115.2
116.1
116.7

5.4
5.8
5.8
5.9
5.7
6.1
6.4
6.7
6.7
7.1
7.5
7.4

110.9
111.3
111.9
112.4
113.0
113.8
114.6
115.3
115.6
116.4
117.2
118.3

101.4
101.4
101.4
101.5
101.6
101.9
102.2
102.4
102.2
102.5
102.7
103.2

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
115.1
114.9
114.8
114.2
113.5
113.3
113.1
112.5
111.3
110.5

6.5
5.1
4.0
3.2
2.5
1.4
0.2
-0.4
-0.9
-1.7
-3.1
-3.9

119.3
119.6
119.9
119.9
120.0
119.8
119.8
120.0
120.3
120.3
118.8
116.1

103.7
103.5
103.4
102.9
102.6
102.0
101.5
101.3
101.1
100.6
99.0
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
113.4
115.3
117.3
119.9
121.5
122.5
123.4
124.6
126.4
127.2

-3.6
-2.4
-1.3
0.5
2.6
5.4
7.2
8.4
9.4
10.4
11.7
12.0

114.1
114.1
115.3
117.1
118.1
120.4
121.7
122.7
123.5
124.4
125.2
125.8

94.3
93.9
94.5
95.5
96.0
97.4
98.0
98.4
98.7
98.9
99.2
99.2

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

127.5
127.0
127.1
126.9
127.3
127.7
128.4
128.8
128.8
128.4
128.7
129.3

11.6
10.4
9.6
8.6
7.7
6.8
6.2
5.4
4.5
3.3
2.8
2.9

126.6
127.8
128.8
129.6
130.5
131.4
132.4
132.6
132.2
131.8
132.1
133.1

99.5
100.0
100.3
100.5
100.8
101.0
101.4
101.1
100.4
99.6
99.5
99.8

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
2
3
4

130.1
129.9
-

3.0
2.4
-

135.0
134.4
-

100.8
100.6
-

99.1
92.2
107.8
-

101.8
98.0
113.5
99.3

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

April 2011

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

Period

2008
2009
2010P

Current
balance

Goods
trade
balance

Exports

3,197.5
32,790.5
28,213.6

5,170.1
37,866.0
41,904.0

Imports

Services
trade
balance

Income
trade
balance

Current
transfers

434,651.5
358,189.7
464,286.9

429,481.4
320,323.7
422,383.1

-5,734.1
-6,640.5
-11,229.4

4,435.4
2,276.7
768.4

-673.9
-711.7
-3.229.4

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
IV

263.3
8,857.9
9,931.1
9,161.3

4,785.4
12,240.4
12,542.3
12,335.9

101,354.5
117,585.0
118,257.3
127,090.1

96,569.1
105,344.7
105,715.1
114,754.2

-4,201.1
-1,873.1
-2,954.6
-2,200.6

546.5
-1,006.5
1,296.1
-67.6

-867.4
-502.9
-952.7
-906.4

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
12

-571.8
-363.1
1,198.2
529.0
3,998.9
4,330.0
4,457.9
1,975.7
3,497.5
5,112.5
1,934.4
2,114.4

996.7
586.3
3,202.4
3,740.1
3,658.4
4,841.9
5,268.9
2,826.0
4,447.4
5,484.9
3,170.8
3,680.2

31,806.6
31,119.7
38,428.2
39,186.7
38,250.1
40,148.2
41,130.1
37,903.4
39,223.8
42,012.2
41,939.6
43,138.3

30,809.9
30,533.4
35,225.8
35,446.7
34,591.7
35,306.3
35,861.3
35,077.4
34,776.4
36,527.3
38,768.8
39,458.1

-1,651.8
-1,270.7
-1,278.6
-1,268.9
147.4
-751.6
-859.3
-902.5
-1,192.8
-749.9
-304.5
-1,146.2

414.6
497.4
-365.6
-1,452.5
219.8
226.2
352.3
518.7
425.1
657.1
-690.2
-34.5

-331.3
-176.1
-360.0
-489.7
-26.7
13.5
-304.0
-466.5
-182.2
-279.6
-241.7
-385.1

2011P 1
2

154.7
1,178.3

1,557.9
1,583.0

42,662.8
37,228.3

41,104.9
35,645.3

-1,640.9
-569.1

703.7
542.6

-466.0
-378.2

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
2010P

-1,154.0
-34,651.2
-25,331.5

-16,940.6
-14,948.0
-19,379.7

-2,405.6
49,727.7
38,552.4

-14,769.9
-3,093.0
-7.4

-23,593.2
2,038.9
-17,228.1

Changes in
reserve
assets

Errors and
omissions

109.3
289.6
-174.2

56,446.0
-68,666.4
-27,094.5

-2,043.5
1,860.7
-2,882.1

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
IV

-155.3
-9,099.0
-7,679.6
-8,397.6

-2,307.5
-2,564.1
-6,217.4
-8,290.7

10,159.6
7,098.4
14,032.1
7,262.3

746.6
-983.9
-388.6
618.5

16.7
-7,076.3
-4,725.3
-5,443.2

-175.6
27.1
31.1
-56.8

-8,595.1
-5,600.2
-10,411.5
-2,487.7

-108.0
241.1
-2,251.5
-763.7

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
12

-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
-2,191.7
-336.2

-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
-1,610.0

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
2,227.2
-2,412.2

241.8
549.3
-44.5
80.6
-854.8
-209.7
-297.3
61.3
-152.6
0.4
106.9
511.2

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
-1,494.4
1,268.0

-70.0
-43.2
-62.4
-120.5
101.3
46.3
-0.2
57.9
-26.6
-48.1
-25.3
16.6

-6,982.7
714.7
-2,327.1
-9,290.2
7083.3
-3393.3
-6020.9
-1,511.0
-2,879.6
-2,658.6
-1,719.3
1,890.2

1,258.2
-1,035.2
-331.0
-1,170.8
1,612.6
-200.7
-929.5
-554.0
-768.2
757.2
257.3
-1,778.2

2011P 1
2

-1,282.0
-2,261.4

-1,725.4
-1,635.1

904.6
-3,004.0

569.3
-363.3

1,773.3
4,861.7

-120.7
-32.7

-2,683.1
-2,088.0

1,127.3
1,083.1

P: Preliminary
Source: The Bank of Korea

62

April 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
106.4

137.7
145.0

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
109.6

136.9
137.6
139.2
140.9
144.7
147.6
147.0
147.4
147.4
146.1
149.2
156.1

2011 1
2
3

118.9
119.8
120.4

123.8
125.1
123.1

115.8
116.4
116.6

116.3
117.1
117.4

119.7
120.5
122.0

122.7
123.9
125.8

108.6
110.6
113.5

156.1
160.9
166.5

2009
2010

2.8
2.9

3.4
4.6

2.4
4.2

-0.2
3.8

-0.5
4.6

-0.2
-2.6

-4.1
5.3

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
4.3

-0.9
-4.1
-4.3
5.1
11.3
8.0
7.5
5.7
7.8
8.1
8.2
12.7

2011 1
2
3

4.1
4.5
4.7

7.1
7.8
7.9

2.2
2.5
2.5

2.6
3.1
3.3

6.2
6.6
7.3

7.7
8.2
9.1

4.9
5.6
9.1

14.1
16.9
19.6

Y-o-Y change (%)
3.6
1.8

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
2010

24,394
24,748

23,506
23,829

3,836
4,028

17,998
18,214

3.6
3.7

16,454
16,971

9,390
10,086

5,101
5,068

1,963
1,817

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
12

24,082
24,035
24,382
24,858
25,099
25,158
25,232
24,863
24,911
25,004
24,847
24,538

22,865
22,867
23,377
23,924
24,306
24,280
24,301
24,005
24,054
24,172
24,109
23,684

3,924
3,886
3,924
3,991
4,036
4,017
4,040
4,058
4,062
4,098
4,139
4,156

17,796
17,762
18,047
18,285
18,499
18,422
18,489
18,175
18,216
18,264
18,340
18,272

5.0
4.9
4.1
3.8
3.2
3.5
3.7
3.3
3.4
3.3
3.0
3.5

16,297
16,282
16,617
16,994
17,255
17,193
17,228
17,048
17,103
17,178
17,300
17,154

9,712
9,786
9,926
10,011
10,078
10,089
10,107
10,151
10,217
10,280
10,334
10,347

4,860
4,838
4,976
5,147
5,223
5,165
5,215
5,122
5,106
5,089
5,069
4,999

1,725
1,657
1,714
1,836
1,953
1,938
1,905
1,775
1,780
1,809
1,898
1,808

2011 1
2

24,114
24,431

23,196
23,336

4,148
4,149

18,007
3.8
18,019
4.5
Y-o-Y change (%)

16,832
16,856

10,305
10,390

4,848
4,781

1,680
1,684

2009
2010

0.2
1.5

-0.3
1.4

-3.2
5.0

0.5
1.2

-

1.5
3.1

4.3
7.4

0.4
-0.7

-7.4
-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
12

1.6
1.6
1.3
1.6
1.8
0.9
1.9
1.3
1.1
1.4
0.9
2.0

0.0
0.5
1.2
1.7
2.5
1.3
2.0
1.6
1.0
1.3
1.3
2.0

0.8
1.2
2.9
3.8
4.9
4.7
6.2
7.9
6.6
6.2
7.4
7.3

0.8
1.3
2.0
2.2
2.7
0.9
1.5
0.7
0.3
0.7
0.4
0.9

-

1.5
2.1
3.4
3.9
4.7
2.7
3.9
3.5
2.5
2.9
3.0
3.6

6.7
6.4
8.2
8.5
8.2
8.0
7.7
7.2
6.4
6.8
7.6
7.4

-2.4
-0.5
0.7
1.9
2.9
-2.2
-0.8
0.1
-0.9
-1.6
-3.6
-1.5

-12.4
-12.6
-12.6
-11.5
-6.6
-8.4
-2.4
-6.1
-7.8
-4.4
-1.7
-2.2

2011 1
2

0.1
1.6

1.4
2.1

5.7
6.7

1.2
1.4

-

3.3
3.5

6.1
6.2

-0.3
-1.2

-2.6
1.6

Source: Statistics Korea

64

April 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)

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

2011 1
2
3

2.7
2.8
2.9

2.9
3.1
3.4

4.5
4.7
4.5

3.7
3.9
3.7

4.3
4.4
4.1

2,069.73
1,939.30
2,106.70

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

2009
2010

61,739.6
67,585.1

357,344.1
399,412.3

1,508,550.4
1,639,675.1

1,937,336.0
2,096,534.8

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
12

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
71,472.9

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
425,673.9

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
1,682,871.9

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
2,154,538.9

2011 1
2

73,540.8
75,432.1

429,368.1
432,482.8

1,676,448.8
1,674,390.5

2,152,814.0
2,148,254.1

2009
2010

18.1
9.5

Y-o-Y change (%)
16.3
11.8

10.3
8.7

7.9
8.2

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
12

1.6
5.6
0.0
4.7
12.9
11.3
12.7
11.1
17.8
9.8
13.6
14.1

15.0
15.9
12.6
10.8
10.9
10.5
11.1
11.0
10.2
9.0
11.8
12.9

9.3
9.4
9.3
9.4
9.3
9.7
9.3
8.5
8.1
7.6
7.4
7.2

8.1
8.6
8.8
9.0
8.9
9.3
8.8
8.0
7.7
7.2
7.3
6.9

2011 1
2

13.0
13.3

12.6
11.5

6.5
5.0

6.6
5.2

Source: The Bank of Korea

66

April 2011

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

/US$

/100¥

/Euro

Period
End-period

Average

End-period

Average

End-period

Average

2009
2010

1,167.6
1,138.9

1,276.4
1,156.3

1,262.8
1,397.1

1,363.1
1,320.6

1,674.3
1,513.6

1,774.4
1,532.9

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

2011 1
2
3

1,114.3
1,127.9
1,107.2

1,120.1
1,118.1
1,122.5

1,356.6
1,380.7
1,331.9

1,356.3
1,351.0
1,376.2

1,514.0
1,549.5
1,563.5

1,495.4
1,524.6
1,572.6

-7.1
-2.5

15.8
-9.4

26.6
-3.1

-5.7
-9.6

10.4
-13.6

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

2011 1
2
3

-3.6
-2.6
-2.1

-1.6
-3.4
-1.3

5.4
6.3
9.4

8.7
5.4
9.6

-6.2
-1.3
3.0

-8.1
-3.8
1.8

2009
2010

Y-o-Y change (%)
-9.4
10.6

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)
Eli Horn (MOSF)
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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