Vol. 33 | No.

5

Republic of Korea

Economic Bulletin
The Green Book : Current Economic Trends
Overview

3

1. Global economy

4

2. Private consumption

8

3. Facility investment

12

4. Construction investment

14

5. Exports and imports

16

6. Mining and manufacturing production

18

7. Service sector activity

20

8. Employment

22

9. Financial markets
9.1 Stock market
9.2 Exchange rate
9.3 Bond market
9.4 Money supply & money market

26

10. Balance of payments

30

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

32

12. Real estate market
12.1 Housing market
12.2 Land market

36

13. Composite indices of business cycle indicators

40

Policy Issues
The 2012 guidelines on budgeting

42

Economic News Briefing

46

Statistical Appendices

51

The Green Book
Current Economic Trends
Overview
The Korean economy stayed on an upward track, with employment and business sentiment
steadily improving, and inflation slowing down, as cold waves eased and foot-and-month
disease was brought under control.
Mining and manufacturing production went up 1.4 percent month-on-month in March
backed by rising demand from strong exports and with the number of working days
returning to normal from the previous month when the Lunar New Year holiday fell and
resulted in fewer working days. Service output gained 2.0 percent from the previous month,
helped by boosted domestic demand amid increasing employment.
In March retail sales rose 2.9 percent month-on-month, as the adverse effect of unusual cold
spells and foot-and-month disease had been removed, and the positive effect of new car
releases set in.
Facilities investment increased 2.9 percent month-on-month in March, while the manufacturing
operation ratio posted a solid performance of 82.5 percent. Construction investment improved
for the first time in three months, rising 13.4 percent from the previous month.
Three month moving average of the cyclical indicator of the coincident composite index fell
0.1 percentage point in March affected by the previous month’s poor performance. The
leading composite index fell 0.8 percentage points year-on-year due to worsening consumer
sentiment and net terms of trade.
Although imports soared due to rising oil prices, a trade surplus in April expanded to US$5.8
billion from the previous month’s US$2.8 billion, as exports continued to be brisk despite
the aftermath of the Japanese earthquake.
Employment in March continued to improve, adding 469,000 jobs, as strong exports and
eased foot-and-mouth disease contributed to job generation in agricultural, forestry &
fishery industries as well as manufacturing and services sectors.
Although high international commodities prices pushed up those of manufactured products,
consumer prices rose at a slower rate of 4.2 percent than the previous month’s 4.7 percent,
due to drops in fresh food prices. Core consumer prices, which exclude goods reflecting
changes in supply situations with their high price volatility, narrowed an increase month-onmonth from 3.3 percent to 3.2 percent.
In April stock prices rose and foreign exchange rates fell, as the business performance of
domestic companies brought about foreign capital inflows and the dollar depreciated.
Both home prices and rental rates, led by the Seoul metropolitan area, posted a slower
increase than the previous month in April, as wait-and-see attitude prevailed with the
moving season nearing an end.
To sum up, although the overall global economy has recovered, there are growing
uncertainties such as political unrest in the Middle East, worries over Japan’s radiation leak,
and the European fiscal crisis.
The Korean government will closely watch any changes in economic situations and flexibly
respond to them with microeconomic as well as macroeconomic measures, so that the
Korean economy can be on its way to solid recovery with employment steadily improving
and inflation stabilizing. On the other hand, the government will continue to pursue an
economy strong enough to deal with external changes such as high oil prices on its own,
while stepping up efforts to improve the real economy, to which lives of working classes are
closely related.
Economic Bulletin

3

1. Global economy
The global economy, despite lingering uncertainties, has seen robust growth in developing
countries such as China and gradual recovery in advanced countries including the US. There
are continuing uncertainties from rising oil prices as a result of political instability in the
Middle East, the effects of Japan’s earthquake and the renewed European financial crisis.

US

The US economy, affected by heavy snow, cold waves, sharp rises in energy prices and a
reduction in fiscal expenditures, slowed down in the first quarter of 2011 compared with the
previous quarter, posting 1.8 percent growth (advanced estimate, annualized q-o-q).
In March the ISM manufacturing index dropped for the second month in a row, while
industrial production and retail sales improved 0.8 percent and 1.5 percent month-onmonth, respectively.
ISM manufacturing index (base=50)
56.9 (Oct 2010)

58.2 (Nov)

58.5 (Dec)

60.8 (Jan 2011)

61.4 (Feb)

61.2 (Mar)

60.4 (Apr)

In February, housing prices fell for the eighth consecutive month based on the S&P/CaseShiller Home Price Index, but in March the new and existing home sales rose 11.1 percent
and 3.7 percent, respectively, compared with the previous month.
The labor market stayed on a gradual recovery track in March, as unemployment fell 0.1
percentage point to 8.8 percent and non-farm payrolls increased at a faster rate.
Federal Reserve Chairman Ben Bernanke said on April 27 that the growth slowdown would
be temporary, and predicted that gradual growth would continue until the end of 2011.
(Percentage change from previous period)
2009

2010

1

20111

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Feb

Mar

Real GDP 2

-2.6

2.8

3.7

1.7

2.6

3.1

1.8

-

-

- Personal consumption expenditure

-1.2

1.8

1.9

2.2

2.4

4.0

2.7

-

-

- Corporate fixed investment

-17.1

5.6

7.8

17.2

10.0

7.7

1.8

-

-

- Housing construction investment

-22.9

-3.0

-12.3

25.7

-27.3

3.3

-4.1

-

-

Industrial production

-11.2

5.3

2.0

1.7

1.6

0.8

1.5

0.1

0.8

-7.0

6.4

2.1

1.0

0.9

3.0

2.7

1.1

1.5

Retail sales

5.2

-4.5

-12.3

7.5

-25.1

13.8

8.3

-8.9

3.7

New non-farm payroll employment
(thousand)3

-422

78

39

181

-46

139

159

194

216

Consumer prices

-0.3

1.6

0.3

-0.1

0.4

0.7

1.3

0.5

0.5

Existing home sales

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

4

May 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

Despite China’s austerity measures in the first quarter, the country’s economy grew 9.7
percent year-on-year backed by strong industrial production and consumption. However, the
economy faced continued inflationary pressure due to a rise in grain and raw material prices
as well as higher demand. In 2011 the People’s Bank of China raised the interest rate twice
and banks’ reserve ratio four times in order to meet the target inflation rate of 4 percent.
M2 growth (y-o-y, %)
19.3 (Oct 2010)

19.5 (Nov)

19.7 (Dec)

17.2 (Jan 2011)

15.7 (Feb)

16.6 (Mar)

(Percentage change from same period in previous year)
1

20111
Feb

2009
Annual

Annual

Q1

2010
Q2

Q3

Q4

Q1

9.1

10.3

11.9

10.3

9.6

9.8

9.7

-

-

Fixed asset investment (accumulated)

30.5

24.5

26.4

25.5

24.5

24.5

32.5

34.0

32.5

Retail sales

15.5

23.3

23.7

23.8

23.9

22.0

17.1

11.6

17.4

Real GDP

Mar

11.0

15.7

19.6

16.0

13.5

13.3

14.9

14.9

14.8

Exports
Consumer prices

-16.0

31.3

28.7

40.9

32.2

24.9

26.4

2.4

35.8

-0.7

3.3

2.2

2.9

3.5

4.7

4.9

4.9

5.4

Producer prices

-5.4

5.5

5.2

6.8

4.5

5.7

6.6

7.2

7.3

Industrial production

1. Preliminary

Source: China National Bureau of Statistics

Japan

The Japanese economy saw industrial production and retail sales significantly decline
affected by the March 11 earthquake, while exports slowed down. On April 28, the Bank of
Japan revised down its economic forecast for 2011 from 1.6 percent to 0.6 percent.
(Percentage change from previous period)

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

Q1

20101
Q2

Q3

Q4

Q1

1.5

0.5

0.8

-0.3

-

-

-

16.4

7.4

0.7

-1.1

-0.1

-2.0

1.8

-15.3

2.5

3.8

3.7

3.2

-0.4

-3.0

0.1

-8.5

-33.1

24.4

43.2

33.2

17.8

10.0

2.4

9.0

-2.3

-1.4

-0.7

-1.2

-0.9

-0.8

0.1

0.0

0.0

0.0

2009
Annual

Annual

-6.3

4.0

-21.9
-2.3

20111
Feb

Mar

Source: Japan’s Statistics Bureau and Statistics Centre

Eurozone

While Eurozone’s economy gradually improved, fiscal problems reemerged following
Portugal’s request for an EU bailout on April 6 and concerns over the Greek debt
restructuring. The European Central Bank raised the policy rate from 1.0 percent to 1.25
percent on April 7 in response to growing inflation.
(Percentage change from previous period)

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

6

May 2011

Source: Eurostat

1

Q1

20111
Feb

Mar

-

-

-

1.7

-

0.5

-

0.4

0.3

-

0.3

-

22.3

22.8

21.8

-

23.1

-

1.5

1.7

2.0

2.7

2.4

2.7

2009
Annual

Annual

Q1

2010
Q2

Q3

Q4

-4.0

1.7

0.4

1.0

0.3

0.3

-14.9

7.1

2.4

2.4

1.0

-2.2

0.7

0.4

0.1

-18.1

20.1

12.9

0.3

1.6

1.1

1-4

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

1-5

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

1-6

Eurozone GDP growth and industrial production
Source: Eurostat

Economic Bulletin

7

2. Private consumption
Private consumption (advanced estimate of GDP) increased 0.5 percent quarter-on-quarter
and 3.0 percent year-on-year in the first quarter of 2011.
(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

20111

Annual

Q1

Q2

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Q1

0.0

-4.7

-1.1

0.4

5.6

4.1

6.6

3.5

3.6

2.9

3.0

-

-0.3

3.7

1.4

0.9

-

0.5

0.7

1.4

0.3

0.5

3. Percentage change from previous period

In March, retail sales climbed 2.9 percent month-on-month and 4.9 percent year-on-year
with sales of durable, semi-durable and non-durable goods rising 1.5 percent, 2.9 percent
and 3.4 percent, respectively. The increases, partly due to a low base effect, came as new
vehicles were released, and a cold wave and foot-and-mouth disease subsided.
On a year-on-year basis, durable and semi-durable goods sales expanded 14.9 percent and
4.6 percent, respectively, whereas those of non-durable ones declined 0.4 percent affected
by higher prices of food and petroleum 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

Annual

Q1

Q2

Q3

Q4

Q1

Feb

Mar

2.7

6.6

9.7

4.9

7.5

5.1

4.9

-0.8

4.9

-

-

0.6

-0.1

3.3

0.8

1.0

-6.2

2.9

8.2

14.9

29.6

5.6

17.0

10.6

12.8

9.1

14.9

21.8

11.1

48.9

-2.1

12.0

0.1

10.2

3.0

19.0

1.3

6.8

2.5

6.2

6.6

11.1

6.0

2.0

4.6

1.2

2.2

3.2

3.3

3.0

-0.7

0.6

-7.0

-0.4

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 of nonstore retailers and supermarkets jumped by 8.2 percent and 7.8 percent monthon-month, respectively, while all sales categories improved due to a low base effect. On a
year-on-year basis, all sales categories such as nonstore retailers, department stores,
specialized retailers and large discounters posted an increase.
(Percentage change from same period in previous year)

- Department stores
- Large discounters
- Specialized retailers
- Nonstore retailers

2

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Feb

Mar

4.3

8.8

7.5

9.2

7.4

10.5

11.5

2.8

10.2

-2.2

4.4

5.4

4.1

7.6

0.8

3.5

-11.0

2.0

3.0

5.6

9.7

1.8

7.3

4.2

4.3

1.9

4.1

8.7

15.6

20.1

17.9

11.4

13.5

11.2

3.2

12.1

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

8

May 2011

20111

2010

2009

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 are projected to go on with the increase, given the purchasing power
strengthened by rebounding employment and the stock price rise, improving consumer
sentiment in line with slowing down inflation, and advanced indicators showing an upward trend.
Sales of gasoline decreased for the second month in a row due to high oil prices, but domestic
credit card use and sales at department stores and large discounters continued to rise.
Value of credit card use (y-o-y, %)
16.0 (Nov 2010)

14.5 (Dec)

16.9 (Jan 2011)

10.8 (Feb)

16.3 (Apr1)

13.1 (Mar)

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

11.6 (Dec)

24.0 (Jan 2011)

5.2 (Feb)

14.1 (Apr1)

13.1 (Mar)

Large discounter sales (y-o-y, %)
1.7 (Nov 2010)

2.9 (Dec)

21.4 (Jan 2011)

-10.9 (Feb)

1.9 (Mar)

4.9 (Apr1)

5.7 (Feb)

-2.4 (Mar)

-4.8 (Apr1)

Domestic sales of gasoline (y-o-y, %)
11.6 (Nov 2010)

-0.5 (Dec)

5.6 (Jan 2011)

Consumer goods imports (y-o-y, %)
37.2 (Nov 2010)

17.6 (Dec)

44.0 (Jan 2011)

22.5 (Feb)

32.0 (Mar)

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 April data)

The number of workers hired has grown amid a continuous wage increase, which has led to
a rise in consumption.
Nominal income (y-o-y, %)
2.6 (Q4, 2009)

6.1 (Q1, 2010)

5.2 (Q2)

6.3 (Q3)

2.0 (Q4)

Employment (y-o-y, thousands)
316 (Oct 2010)

303 (Nov)

455 (Dec)

331 (Jan 2011)

469 (Feb)

469 (Mar)

Although the consumer sentiment index registered at the benchmark of 100, it turned to an
increase for the first time in five months, showing signs of picking up.
Consumer Sentiment Index (CSI, base=100)
108 (Oct 2010)

110 (Nov)

109 (Dec)

108 (Jan 2011)

105 (Feb)

98 (Mar)

100 (Apr)

However, considering uncertainties in the global economy such as rising international oil prices
and the renewed European financial crisis, consumer sentiment may possibly deteriorate.
Dubai crude (US$/barrel)
79.9 (Oct 2010)

10

May 2011

84.5 (Nov)

88.8 (Dec)

94.6 (Jan 2011)

107.4 (Feb)

109.4 (Mar)

118.4 (Apr)

2-4

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

2-5

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

2-6

Consumer sentiment index
Source: The Bank of Korea

Economic Bulletin

11

3. Facility investment
Facility investment (advanced estimate of GDP) in the first quarter of 2011 posted a quarteron-quarter decrease of 0.8 percent and a year-on-year gain of 12.0 percent.
(Percentage change from same period in previous year)
20101

2009

Facility investment

2
3

(Seasonally adjusted)
- Machinery

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

20111

Annual

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Q1

-9.8

-9.4

12.2

25.0

29.1

30.5

26.6

15.9

12.0

-

9.1

7.8

-

2.8

7.9

5.6

-1.0

-0.8

-13.5

-18.1

10.1

30.8

30.0

35.3

38.9

20.5

-

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 March rose 2.9 percent month-on-month and 0.3 percent year-on-year,
backed by strong transportation equipment investment. Facility investment is projected to
go on with solid growth, given rising investment demand in line with economic recovery,
positive signs in leading indicators and improving business sentiment.
(Percentage change from same period in previous year)
2009

Facility investment
(Seasonally adjusted)

2

- Machinery
- Transportation equipment
Domestic machinery orders
2

20111

2010

Annual

Annual

Q1

Q2

Q3

Q4

-9.4

25.1

30.0

29.5

29.3

Q11

Jan

Feb1

Mar1

13.6

6.6

21.2

1.4

0.3

-

-

4.0

6.7

7.2

-5.4

-0.2

3.5

-8.6

2.9

-12.6

30.5

32.5

37.1

37.4

17.1

6.8

26.6

0.4

-2.0

4.6

4.3

19.3

2.8

-0.1

-1.2

5.6

-1.3

6.0

11.0

-10.3

11.2

10.3

24.7

-0.2

11.3

19.5

19.7

26.1

14.2

-

-

-4.0

15.2

-3.6

4.1

3.5

-15.5

-0.8

2.6

- Public

62.4

-37.9

-43.7

-42.2

-71.7

31.4

-10.3

-31.5

14.0

-6.3

- Private

-18.2

21.8

22.6

35.5

22.0

7.8

22.6

25.1

27.0

16.9

-16.6

40.4

48.3

51.3

40.0

26.3

7.9

22.2

-1.9

5.8

Manufacturing operation ratio

-3.5

8.8

19.2

10.8

1.8

5.3

2.7

5.6

1.5

1.1

Facility investment
adjustment pressure3

-3.7

9.5

20.4

12.1

3.4

4.6

4.0

7.0

2.5

2.6

(Seasonally adjusted)

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

May 2011

2011

Dec

Jan

Feb

Mar

Apr

May

103

103

104

104

102

103

3-1

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

3-2

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

3-3

Machinery imports
Source: Korea International Trade Association (KITA)

Economic Bulletin

13

4. Construction investment
Construction investment (advanced estimate of GDP) in the first quarter of 2011 fell 6.7
percent quarter-on-quarter and 11.9 percent year-on-year.
(Percentage change from same period in previous year)
20101

2009
Annual

20111

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Q11

3.4

3.2

4.0

-1.4

4.3

-2.3

-3.1

-2.9

-11.9

-

-1.2

0.7

-

2.0

-4.2

-0.8

-1.0

-6.7

- Building construction

-2.3

0.2

2.4

-2.9

4.5

-5.1

-6.3

-2.8

-

- Civil engineering works

11.6

8.2

5.6

0.5

4.0

1.0

1.7

-2.9

-

Construction investment2
(Seasonally adjusted)3

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

The value of construction completion (constant) in March, as both building construction and
civil engineering works improved in some parts, gained 13.4 percent month-on-month, while
losing 9.2 percent year-on-year.
(Percentage change from same period in previous year)
2009

2010

1

20111

Annual

Annual

Q1

Q2

Q3

Q41

Q11

Jan1

Feb1

Mar1

1.6

-3.3

3.4

-4.3

-6.8

-4.3

-13.1

-11.0

-20.0

-9.2

-

-

2.6

-3.1

-4.3

-1.6

-5.0

-8.8

-9.4

13.4

- Building construction

-6.4

-7.1

1.5

-7.7

-12.3

-8.5

-16.0

-13.6

-22.0

-13.3

- Civil engineering works

16.1

2.2

6.0

0.6

1.9

1.2

-9.0

-7.6

-17.3

-3.7

5.0

-18.7

-1.6

-6.7

-3.6

-40.2

-12.8

-33.9

-16.7

13.7

-

-

-31.4

0.2

-1.4

-22.9

12.8

-11.3

-2.6

22.0

Value of construction completion(constant)
(Seasonally adjusted)

2

Construction orders (current value)
(Seasonally adjusted)

2

- Building construction
- Civil engineering works
Building permit area

-14.2

-9.9

8.3

55.3

-1.3

-46.4

-9.7

-46.8

-14.6

61.5

44.3

-29.5

-12.4

-49.7

-7.0

-29.9

-17.0

-1.1

-19.3

-24.7

-12.9

19.3

12.1

47.4

-14.3

18.1

21.5

59.6

11.3

5.2

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

Construction investment is likely to be sluggish for a while considering poor construction
orders, SOC budget cuts and contracted investment sentiment of construction companies.
The construction sector is expected to gradually improve, as government’s measures to
boost housing markets will be implemented as planned, and the housing market will
rebound as a result.

2010

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

14

May 2011

2011

Dec

Jan

Feb

Mar

Apr

81.3

77.5

87.0

80.5

59.1

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 April increased 26.6 percent (preliminary) year on year to US$49.77 billion.
The average daily exports rose to a record high of US$2.12 billion, as exports continued to
grow amid global economic recovery.
By business category, exports of petroleum products (up 78.9%), vessels (up 54.6 %), and
automobiles (up 35.7%) surged, while those of semiconductors (down 0.7 %) slightly
decreased.
By regional category, exports to Japan (up 64.8 %), the Middle East (up 46.0 %), the ASEAN
countries (up 38.8%), and the US (up 17.7%) surged, while those to EU (up 13.5%) and
China (up 9.8%) stayed on an upward trajectory.
(US$ billion)
2009

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

2010

2011

Annual

Annual

Q1

Q2

Q3

Q4

Jan

Feb

Mar

Apr1

365.53

466.38

101.08

120.24

116.32

128.75

44.60

38.61

48.07

49.77

-13.9

28.3

35.8

33.1

22.7

23.8

45.1

16.9

28.9

26.6

1.30

1.70

1.51

1.76

1.72

1.79

1.94

2.03

2.00

2.12

323.08

425.21

98.16

105.63

105.70

115.73

41.76

36.15

45.29

43.95

(y-o-y, %)

-25.8

31.6

37.4

42.8

24.6

24.6

32.4

16.4

27.3

23.7

Average daily imports

13.16

1.46

0.47

1.54

1.57

1.61

1.82

1.90

1.89

1.87

Imports

1. Preliminary
Source: Korea Customs Service

Imports in April increased 23.7 percent (preliminary) year on year to US$43.95 billion.
Rising international commodities prices and recovering domestic demand led to increasing
import, in particular that in raw materials (up 23.7%) and consumer goods (up 28.9%).
The current account balance in April posted a surplus of US$5.82billion (preliminary),
sharply accelerating from the previous month.
(US$ billion)
2009

Trade Balance
1. Preliminary
Source: Korea Customs Service

16

May 2011

2010

2011

Annual

Annual

Q1

Q2

Q3

Q4

Jan

Feb

Mar

Apr1

40.45

41.17

2.93

14.61

10.62

13.02

2.92

2.46

2.78

5.82

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 March, free from the holiday effect, rose 1.4 percent
month-on-month and 8.7 percent year-on-year, as exports continued to be brisk.
By business category, primary metals (up 4.2%) and automobiles (up 2.5%) increased
month-on-month, while audio-visual communications equipment (down 7.9%) and
semiconductors and parts (down 1.8%) went down.
The month-on-month increase in shipment (up 2.6%) outpaced that in inventories (up
0.4%), and the manufacturing inventory-shipment ratio declined in two months.
By business category, the shipments of other transportation equipment (up 9.4%) and
semiconductors and parts (up 5.8%) increased month-on-month, while those of audio-visual
communications equipment (down 5.6%) and machinery (down 1.5%) declined. The
inventories of machinery (up 6.6%) and primary metals (up 6.2%) climbed month-on-month,
while those of computers (down 12.8%) and semiconductors and parts (down 1.0%) fell.
The average operation ratio of the manufacturing sector improved 0.1 percentage point to
82.5 percent, 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)
20111

2010
Q1

Q4

Mar

Q11

Jan

Feb1

Mar1

-

4.9

-0.5

2.0

5.9

4.4

-2.5

1.4

(y-o-y)

16.2

25.4

11.7

22.4

10.5

13.6

9.2

8.7

- Manufacturing

16.7

26.6

12.0

23.2

10.7

14.0

9.4

9.0

∙ICT

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

25.2

45.9

15.2

39.1

14.3

17.0

17.8

9.0

∙Automobiles

23.1

48.8

10.2

46.1

16.1

24.3

12.8

11.6

Shipment

14.4

20.9

11.9

18.8

11.9

14.9

10.3

10.5

- Domestic demand

11.5

19.5

8.3

18.6

7.2

10.3

6.0

5.1

- Exports

18.2

22.7

16.9

18.9

18.5

21.2

16.1

18.0

Inventory4

17.4

7.5

17.4

7.5

9.8

13.0

11.4

9.8

Manufacturing Average operation ratio (%)
activity
Production capacity

81.2

80.4

80.8

81.5

83.2

84.8

82.4

82.5

7.2

6.2

7.4

7.0

6.7

7.0

6.9

6.4

Mining and
manufacturing
activity2

3

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

Mining and manufacturing production is expected to stay on an upward track, with exports
steadily growing, labor-management conflicts in the automobile industry being eased and
production in the steel industry increasing.
Exports (y-o-y, %)
21.4 (Nov 2010)

22.6 (Dec)

45.2 (Jan 2011)

16.9 (Feb)

28.9 (Mar)

26.6 (Apr1)

Automobile production (thousand)
389 (Nov 2010)

397 (Dec)

388 (Jan 2011)

297 (Feb)

396 (Mar)

395 (Apr1)

1. Preliminary

Major steel producers including POSCO recently revealed their plans to increase production
in line with growing demand.

18

May 2011

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
Despite sluggish hotels & restaurants and real estate & renting, service activity in March
increased 2.0 percent month-on-month due to improving wholesale & retail sales and
transportation services. The increase was also helped by robust exports and eased adverse
effects of cold waves and foot-and-mouth disease. On a year-on-year basis, service activity
increased 2.7 percent.
Service activities in hotels & restaurant and real estate & renting decreased due to the
devastating earthquake in Japan and a delay in real estate market’s recovery. Meanwhile,
educational services suffered a slowdown for three consecutive months affected by the poor
performance of private institutions.
With service activities in other areas showing an even growth, transportation services
significantly increased, affected by increasing freight volume amid robust exports.
(Percentage change from same period in previous year)
Weight
Service activity index

2009

20111

2010

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Feb

Mar

100.0

1.8

3.9

6.2

4.2

2.3

3.1

2.5

0.1

2.7

- Wholesale & retail sales

21.8

-0.4

5.7

7.4

5.6

5.0

4.7

3.6

-0.8

3.3

- Transportation services

9.0

-6.6

12.0

14.1

14.3

10.1

10.0

6.7

3.7

8.2

- Hotels & restaurants

7.7

-1.4

1.2

1.2

0.7

1.3

1.7

-0.7

-0.5

-1.3

- Information & communication services

8.4

0.9

1.9

1.0

0.4

2.2

3.6

4.0

0.9

3.2

15.3

7.8

4.6

6.7

2.5

1.4

8.2

7.1

6.5

6.8

- Real estate & renting

6.3

5.3

-8.6

11.5

-2.4

-15.9

-24.3

-17.7

-20.1

-13.7

- Professional, scientific & technical services

4.8

1.2

-0.7

0.8

2.1

-3.9

-1.9

-3.5

-8.8

-1.8

- Financial & insurance services

- Business services

2.9

-3.0

7.4

5.3

8.1

7.6

8.4

5.8

3.8

5.0

10.8

2.1

2.0

3.2

1.4

0.5

3.1

0.7

-0.8

-1.0

- Healthcare & social welfare services

6.0

10.4

8.8

11.7

11.0

8.6

4.6

6.4

4.9

6.7

- Entertainment, cultural & sports services

2.9

-0.5

-0.4

-3.9

-0.1

-0.4

2.7

2.5

0.6

5.1

- Membership organizations

3.8

-2.1

4.3

1.6

6.0

5.0

4.5

2.1

1.2

-0.4

- Sewerage & waste management

0.4

3.7

5.1

6.7

6.0

1.7

6.4

0.2

-6.1

1.0

- Educational services

1. Preliminary
Source: Statistics Korea

Service activity is expected to continue an upward trend in April helped by active economic
activities amid economic recovery, robust logistics performance and expanded consumption.

20

May 2011

es

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

Prof

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

rvic

s

ns

rant

ion

atio

e se

tate

ranc

l es

insu

stau

unic

& re

omm

els

ex

tail

rtat

& re

spo

ale

Tran

oles

&c

Rea

l&

tion

ncia

rma

Fina

Info

Hot

Wh

7-3

l ind

7-2

Tota

7-1
Service industry

Source: Statistics Korea (service industry activity trend)

Wholesale and retail sales

Source: Statistics Korea (service industry activity trend)

March 2011 service industry by business

Source: Statistics Korea (service industry activity trend)

Economic Bulletin

21

8. Employment
The number of workers on payroll in March increased by 469,000 from a year earlier, while
the employment rate (seasonally adjusted) rose by 0.5 percentage points year-on-year to
58.3 percent.
By industry, employment in manufacturing (up 198,000), services (up 243,000) and agriculture,
forestry & fishery (up 71,000) climbed while that in construction (down 50,000) declined.
Hiring in manufacturing maintained a high growth rate helped by increasing production in mining.
The service sector continued to expand employment with increasing health & welfare (up
208,000), business assistance (up 100,000) and professional, scientific & technical services
(up 78,000).
By status of workers, the number of regular workers (up 617,000) and daily workers (up
25,000) increased whereas temporary workers (down 194,000) decreased. Non-wage
workers (up 30,000) went up slightly as self-employed workers (down 25,000) decelerated
the decline.

2009
Annual
Number of employed (million)

Q2

2010

Q3

Q4

Annual Mar

Q1

2011

Q2

Q3

Q4

Feb

Mar

Q1

23.51 23.74 23.75 23.63 23.83 23.38 23.04 24.17 24.12 23.99 23.34 23.85 23.46

Employment rate (%)

58.6

59.3

59.1

58.7

58.7

57.8

57.0

59.6

59.3

58.9

57.1

58.3

57.4

(seasonally adjusted)

58.6

58.6

58.7

58.5

58.7

58.5

58.3

58.9

58.9

58.6

58.9

59.0

58.8

-72 -134

-1

-6

323

267

132

433

369

358

469

469

423

-34 -109

24

110

405

455

296

518

414

393

520

540

451

-126 -151 -143

-49

191

110

61

172

262

269

262

198

228

- Construction

-91 -113 -103 -107

33

-16

-61

44

92

57

27

-50

-3

- Services

179

154

261

200

362

313

325

83

80

227

243

224

- Agriculture, forestry & fishery

-38

-25

-25 -116

-82 -188 -164

-85

-45

-35

-51

71

-28

- Wage workers

247

175

356

385

517

541

371

623

541

532

574

448

519

∙Regular workers

383

313

386

515

697

752

651

766

671

699

604

617

605

22

-5

125

105

-34

35

-37

42

-57 -194

-88

Employment growth (y-o-y, thousand)
(Excluding agriculture, forestry & fishery)
- Manufacturing

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

261

-26 -114

-158 -133 -155 -235 -146 -247 -243 -185 -104

-53

27

-319 -309 -357 -391 -194 -274 -239 -189 -172 -174 -105
-259 -286 -276 -279 -118 -135 -106
31

25

2

20

-96

-91 -130 -146 -130

-25 -115

24

34

89

181

145

117

188

207

212

292

325

266

-103 -158

-34

-94

142

123

15

245

163

146

177

143

157

-99 -123

- 15 to 29

-127

-77

-43

-33

-12

-58

-44

-57

-37

-38

-49

- 30 to 39

-173 -213 -169 -149

-4

-8

-42

-13

21

17

-36

-37

-34

- 40 to 49

-24

-27

-30

-46

29

-32

-21

48

40

50

87

62

77

- 50 to 59

198

156

211

230

294

264

251

342

295

287

310

299

286

54

49

109

37

47

12

-44

114

57

60

145

182

143

- 60 or more
Source: Statistics Korea

22

May 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 March increased by 68,000 year-on-year to
1,073,000.The unemployment rate (seasonally adjusted) rose by 0.2 percentage points to
4.3 percent.
The youth unemployment rate was up 0.5 percentage points year-on-year to 9.5 percent as
job seekers who actively looked for jobs amid economic recovery and people who applied
for national examination for local public officers were counted as unemployed persons.

2009

2010

Annual

Q2

Q3

Q4

Number of unemployed (thousand)

889

943

886

817

Unemployment growth (y-o-y, thousand)

119

176

134

60

31

53

80

116

95

25

-7

- Male

Annual Mar

Q1

2011

Q2

Q3

Q4

868

873

808 1,095 1,073 1,028

222

-75

-13

-10

-74

68

-101

-8

83

-47

-48

-16

-63

14

-70

920 1,005 1,130

Feb

Mar

Q1

- Female

40

60

39

36

38

60

139

-29

35

6

-11

54

-32

Unemployment rate (%)

3.6

3.8

3.6

3.3

3.7

4.1

4.7

3.5

3.5

3.3

4.5

4.3

4.2

(Seasonally adjusted)

3.6

3.9

3.7

3.5

3.7

3.8

4.3

3.5

3.6

3.4

4.0

4.0

3.9

- 15 to 29

8.1

8.0

8.1

7.6

8.0

9.0

9.5

7.7

7.6

7.1

8.5

9.5

8.8

- 30 to 39

3.6

3.9

3.5

3.3

3.5

3.8

3.9

3.6

3.5

3.2

4.2

4.1

4.0

- 40 to 49

2.4

2.6

2.4

2.3

2.5

2.8

2.9

2.3

2.5

2.2

2.7

2.6

2.5

- 50 to 59

2.5

2.7

2.5

2.2

2.5

2.6

3.2

2.1

2.3

2.3

2.8

2.8

2.7

- 60 or more

1.6

1.9

1.6

1.5

2.8

3.0

5.8

2.1

2.0

1.9

6.5

3.9

4.5

Source: Statistics Korea

The economically inactive population in March was down 74,000 from a year earlier to
16,000,000. Meanwhile, the labor force participation rate (seasonally adjusted) rose 0.6
percentage points year-on-year to 60.9 percent.
The number of workers quitting jobs due to rest, time-off and leisure (up 142,000) and
housework (up 36,000) increased, while those who quit jobs due to old age (down 113,000),
education (down 58,000) and childcare (down 22,000) decreased.

2009
Annual

Q2

2011

2010

Q3

Q4

Annual Mar

Q1

Q2

Q3

Q4

Feb

Mar

Q1

Economically inactive population (million) 15.70 15.35 15.53 15.83 15.84 16.07 16.25 15.49 15.66 15.96 16.45 16.00 16.39
Labor force participation rate (%)

60.6

61.7

61.3

60.7

61.0

60.3

59.8

61.8

61.5

60.8

59.8

60.9

59.9

(seasonally adjusted)

60.6

60.9

61.0

60.6

61.0

60.8

61.0

61.0

61.1

60.7

61.4

61.5

61.1

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

447

445

374

456

143

198

166

146

128

133

63

-74

138

15 -125 -112 -118 -126 -149 -107

- Childcare

40

48

19

-44

-22

-44

- Housework

148

125

100

235

201

192

237

175

303

189

85

36

130

- Education

31

58

11

-36

12

-25

-74

23

46

55

-40

-58

-16

- Old age

88

102

105

92

80

191

193

59

43

25 -121 -113

-103

123

112

94

123

-56 -140 -187

-27

15

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

24

May 2011

-27

244

142

241

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
Helped by strong domestic and overseas earnings and inflows of global liquidity, the Korean
stock price index rose to a fresh record high of 2,216 points on April 25. On the same day, the
KOSPI posted a record high of 1,242 trillion won in terms of market capitalization.
Despite concerns over global inflation, a possible debt restructuring in the southern
European countries and Standard & Poor’s decision to revise its outlook on the US AAA
credit rating to “negative” from “stable”, the Korean stock market gained in April led by
domestic auto and chemical sectors, overseas companies including tech heavyweight Intel
Corp, and continuing inflows of liquidity.
With abundant liquidity and high earnings expectations, foreign investors maintained the
net-buying position on Korean shares to purchase 3.2 trillion won in April.
(End-period, point, trillion won)
KOSPI
Mar 2011

Apr 2011

Stock price index

2,106.7

2,192.4

Market capitalization

1,181.4

KOSDAQ
Change

Mar 2011

Apr 2011

Change1

+85.7 (+4.1%)

525.4

511.0

-14.4 (-2.7%)

1,229.8

+48.4 (+4.1%)

103.9

102.0

-1.9 (-1.9%)

1

Average daily trade value

6.8

9.2

+2.4 (+35.9%)

2.1

2.1

+0.02 (+1.1%)

Foreign stock ownership

32.5

32.6

+0.1 (+0.4%)

10.4

10.6

+0.1 (+1.3%)

1. Change from the end of the previous month

9.2 Exchange rate
The won/dollar exchange rate in April decreased 25.2 won from 1,096.7 won at the end of
March to wrap up the month at 1,071.5 won. Despite overseas woes including Portugal’s
bailout, the won/dollar exchange rate fell 25.2 won, affected by a global weak dollar trend
following the Fed’s decision to maintain interest rates close to zero.
Along with most Asian currencies making gains, the won/100 yen exchange rate was down 11.5
won month-on-month as the won appreciated significantly, backed by solid fundamentals.
(End-period)
2007

2008

2009

2010

Dec

Dec

Dec

Dec

Mar

2011
Apr

Change1

Won/Dollar

936.1

1,259.5

1,164.5

1,134.8

1,096.7

1,071.5

5.9

Won/100 Yen

828.6

1,396.8

1,264.5

1,393.6

1,325.6

1,314.1

6.1

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

May 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 inched up in April due to diminishing demand for safe assets on
improving earnings news.
Despite expectations over Bank of Korea’s key interest rate hike boosted by high inflation
and strong earnings reports, the bond yields, mainly those of short-term bonds, increased
only slightly due to the global easy monetary policy and ample overhanging demand.
(End-period)

Call rate (1 day)

2006

2007

2008

2009

2010

2011

Dec

Dec

Dec

Dec

Dec

Feb

Mar

Apr

Change1

4.60

5.02

3.02

2.01

2.51

2.76

2.99

3.02

+3

CD (91 days)

4.86

5.82

3.93

2.88

2.80

3.17

3.39

3.42

+3

Treasury bonds (3 yrs)

4.92

5.74

3.41

4.44

3.38

3.84

3.73

3.77

+4

Corporate bonds (3 yrs)

5.29

6.77

7.72

5.56

4.27

4.63

4.51

4.56

+5

Treasury bonds (5 yrs)

5.00

5.78

3.77

4.98

4.08

4.28

4.11

4.10

-1

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

9.4 Money supply & money market
The M2 (monthly average) in February expanded 5.0 percent from a year earlier excluding
cash management accounts (CMAs), which were included in M2 since July 2009.
Despite banks’ expanded lending, the month-on-month M2 growth slowed down due to
smaller government expenditure, beleaguered asset management companies (AMCs) and
savings banks, and outflows of foreign portfolio investments.
(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

Jan

Feb

Feb1

18.9

17.8

11.8

14.5

10.7

10.8

11.2

12.6

11.5

432

-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

6.5

5.0

1,674

Lf 3

11.9

7.9

8.8

7.3

7.8

7.8

8.2

8.5

9.1

8.2

7.1

6.6

5.2

2,148

2

1. Balance at end February 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 March, bank deposits plunged while asset management company (AMC) deposits shifted
to an increase.
Despite an increase in time deposits, bank deposits greatly decelerated due to a decrease in
money market deposit accounts (MMDA) and the transfer of debts between banks affected
by KB Financial’s spinoff of its credit card unit.
Asset management company (AMC) deposits turned to an increase as growth in equity funds
continued and money market fund (MMF) shifted to a rise, helped by capital inflows from banks.
(Monthly change, end-period, trillion won)
2009

2010

2011

Annual

Mar

Annual

Mar

Jan

Feb

Mar

Mar1

Bank deposits

54.8

-4.4

36.9

16.2

2.1

14.3

-11.4

1,049

AMC deposits

-27.6

-3.0

-16.7

6.1

-5.2

-8.5

0.6

1,302

1. Balance at end March, trillion won

28

May 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 March slightly expanded from the previous
month’s US$1.13 billion to US$1.43 billion.
Despite rising international commodity prices, the goods account surplus, helped by solid exports,
accelerated the growth to post US$2.86 billion from the previous month’s US$1.53 billion.
The service account deficit slightly narrowed to US$330 million from the previous month’s
deficit of US$570 million on the back of increased revenue from transportation and
construction services.
The primary income account shifted to a deficit of US$860 million from the previous month’s
surplus of US$540 million due to dividend payments by Korean companies whose fiscal year
ends in December. Meanwhile, the secondary income account deficit narrowed to US$240
million from US$380 million a month earlier.
(US$ billion)
2009

2010

2011

Annual

Annual

Q1

Q2

Q3

Q4

Jan

Feb

Mar1

Current account

32.79

28.21

0.26

8.86

9.93

9.16

0.15

1.13

1.43

- Goods balance

37.87

41.90

4.79

12.24

12.54

12.34

1.56

1.53

2.86

- Service balance

-6.64

-11.23

-4.20

-1.87

-2.96

-2.20

-1.64

-0.57

-0.33

- Income balance

2.28

0.77

0.55

-1.01

1.30

-0.07

0.70

0.54

-0.86

- Current transfers

-0.71

-3.23

-0.87

-0.50

-0.95

-0.91

-0.47

-0.38

-0.24

Source: The Bank of Korea
1. Preliminary

The capital and financial account (preliminary) in March turned to the inflow of US$500
million from the previous month’s outflow of US$2 billion.
Capital & financial account balance (US$ billion)
-0.34 (Dec 2010)

-1.28 (Jan 2011)

-2.00 (Feb)

0.50 (Mar)

The direct investment account slightly decelerated the outflow to US$1.34 billion from the
previous month’s outflow of US$1.64 billion due to decreased overseas direct investments
by locals.
The portfolio investment account shifted to an inflow of US$720 million from the previous
month’s outflow of US$3 billion as foreign investors decelerated their net-selling of Korean
shares and increased investments in bonds.
The financial derivatives account turned to an inflow of US$520 million from the previous
month’s outflow of US$360 million.
The other investment account shifted to an outflow of US$670 million from the previous
month’s inflow of US$5.13 billion as domestic banks’ overseas lending increased.
Despite widened primary income account deficit due to dividend payments by Korean
companies whose fiscal year end in December, the current account surplus in April is
expected to expand from the previous month driven by a rising goods account surplus.

30

May 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 April rose 4.2 percent year-on-year and 0.0 percent month-on-month.
Prices of agricultural, livestock & fishery products stabilized as vegetable prices went down,
but high oil product prices and a price hike in personal services led to an increase of
consumer prices.
Core consumer prices, which exclude oil and agricultural products, rose 3.2 percent year-onyear and 0.2 percent month-on-month in April. The year-on-year increase rate was lower
than the previous month’s because price hikes in personal service charges had slowed
down. Consumer prices for basic necessities, a barometer of perceived consumer prices,
were up 4.1 percent compared to the same month of the previous year.

Consumer price inflation
2010

2011

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

Month-on-Month (%)

0.5

0.1

-0.2

0.3

0.3

1.1

0.2

-0.6

0.6

0.9

0.8

0.5

0.0

Year-on-Year (%)

2.6

2.7

2.6

2.6

2.6

3.6

4.1

3.3

3.5

4.1

4.5

4.7

4.2

Core consumer prices (y-o-y)

1.5

1.6

1.7

1.7

1.8

1.9

1.9

1.8

2.0

2.6

3.1

3.3

3.2

(m-o-m)

0.2

0.3

0.2

0.2

0.2

0.3

0.0

0.1

0.3

0.6

0.7

0.3

0.2

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

3.2

3.0

2.8

2.7

2.6

4.1

4.8

3.6

3.9

4.7

5.2

4.9

4.1

Source: Statistics Korea

Agricultural, livestock & fishery product prices stabilized (down 1.8%, m-o-m), as vegetable
prices posted a significant drop from the previous month.
Prices of agricultural, livestock & fishery products in Apr (m-o-m, %)
Rice (3.4), mackerel (3.8), egg (4.6), onion (-18.8), Chinese cabbage (-21.0), cucumber (-24.5), young radish
(-24.7), spinach (-27.0), green pepper (-34.4)

Prices of oil products and processed food rose slightly (up 0.2%, m-o-m), due to price
increases in international commodities such as oil.
Public utility charges remained unchanged from the previous month as a result of the
continued price freeze. Personal service charges increased 0.3 percent month-on-month, led
by the cost of dining out, due to increasing cost burdens and inflation expectations.

Consumer price inflation in major sectors

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

Total

Agricultural,
livestock & fishery
products

0.0

-1.8

0.2

0.6

0.5

0.0

0.3

0.00

-0.18

0.05

0.04

0.05

0.00

0.11

Industrial
products

Oil
products

Housing
rents

Public
utility

Personal
services

Year-on-Year (%)

4.2

9.2

5.7

14.1

3.5

0.5

3.3

Contribution (%p)

4.15

0.83

1.78

0.84

0.32

0.08

1.13

Source: Statistics Korea

32

May 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 April.
International oil prices (Dubai crude) spiked due to continued political turmoil in Libya and
other parts of the Middle East.
(US$/barrel, period average)
2008

2009

Annual

Annual

2011

2010
Annual

Oct

Nov

Dec

Jan

Feb

Mar

Apr

Dubai crude

94.3

61.9

78.1

80.3

83.6

88.9

92.5

100.2

108.5

115.8

Brent crude

97.5

61.7

79.7

83.2

85.8

91.8

96.8

103.9

114.6

123.3

WTI crude

99.9

61.9

79.5

81.9

84.4

89.2

89.5

89.7

103.0

110.0

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)

Stable exchange rates and oil refiners’ price cuts resulted in domestic oil product prices
rising only slightly despite a significant increase in international oil prices.
Won/dollar exchange rate (average)
1,120 (Jan 2011)

1,118 (Feb)

1,122 (Mar)

1,087 (Apr)
(Won/liter, period average)

2008
Annual

2009
Annual

Annual

Oct

Nov

Dec

Jan

Feb

2011
Mar

Apr

Gasoline prices

1,692

1,601

1,710

1,700

1,716

1,771

1,825

1,850

1,939

1,951

Diesel prices

1,614

1,397

1,503

1,500

1,518

1,570

1,621

1,652

1,756

1,793

2010

Source: Korea National Oil Corporation

Price increases in international commodities such as non-ferrous metals and grains slowed
down in general, although individual items showed different price movements depending on
their supply conditions.
Non-ferrous metals experienced price decrease, led by copper and nickel, due to large
inventories and the possibility of policy tightening in major countries such as China.
Rise in stocks as of April 22 (change from the end of the previous month, tons)
Zinc (79,000), lead (210,000), copper (17,000)

International grains exhibited different price trends depending on supply conditions. Corn
rallied due to delays in planting new crops, while raw sugar declined.
Prices of non-ferrous metals and grains in Apr (m-o-m, %)
Corn (10.0), barley (6.0), aluminum (4.2), lead (2.7), soybean (0.6), zinc (0.4), copper (-0.3), nickel (-1.6), raw
sugar (-10.4)

Reuters index*

(Period average)

2008

2009

2010

Annual

Annual

Annual

Oct

Nov

Dec

Jan

Feb

Mar

Apr

2,536

2,079

2,553

2,824

2,952

3,119

3,228

3,323

3,221

3,246

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

34

May 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 decelerated in April, with prices
rising 1.2 percent month-on-month.
Apartment sales prices in the Seoul metropolitan area rose 0.1 percent month-on-month,
with the increase rate slightly lower than that of the previous month.
Apartment sales prices in areas excluding the Seoul metropolitan area showed a persistent
upward trend, led by South Gyeongsang Province (up 3.9%, m-o-m), Gwangju (up 3.3%, mo-m) and Busan (up 3.2%, m-o-m). Apartment prices in 5 metropolitan cities and other cities
climbed 2.4 percent and 2.0 percent each, surpassing the national average.

Nationwide apartment sales prices

(Percentage change from previous period)

2007 2008

2009

Annual Annual

Annual Annual Apr

2010

2011

Nov

Dec

Jan

Feb

Mar

Apr

Apr 41 Apr 111 Apr 181 Apr 251

Nationwide

2.1

2.3

1.6

2.5

0.2

0.5

0.6

0.6

1.1

1.3

1.2

0.29

Seoul

3.6

3.2

2.6

-2.2

-0.2

-0.1

0.1

0.2

0.3

0.1

0.0

-0.01

Gangnam2

0.5

-1.9

3.9

-1.8

-0.1

-0.1

0.1

0.2

0.4

0.2

0.0

-0.01 -0.01 -0.01 -0.05

Gangbuk3

8.3

9.4

0.9

-2.7

-0.3

-0.1

0.0

0.1

0.2

0.1

0.0

0.00

0.02

0.00 0.00

Seoul metropolitan area

4.0

2.9

0.7

-2.9

-0.2

-0.1

0.1

0.1

0.3

0.3

0.1

0.03

0.02

0.01 -0.01

5 metropolitan cities

-0.6

1.0

2.8

8.7

0.8

1.2

1.2

1.2

2.0

2.3

2.4

0.59

0.49

0.46 0.49

1. Weekly trends

2. Upscale area of Southern Seoul

3. Northern Seoul

0.23

0.21 0.22

0.00 -0.01 -0.03

Source: Kookmin Bank

Nationwide apartment rental prices in April were up 1.6 percent from the previous month.
The increase rate was significantly lower than the previous month’s 2.3 percent. Price
increases decelerated in Seoul (up 0.7%, m-o-m), the Seoul metropolitan area (up 1.2%, mo-m) and Gyeonggi Province (up 1.7%, m-o-m).
Apartment rental price increase in major districts in Seoul (m-o-m, %)
Gangnam (0.0), Seocho (0.2), Songpa (0.7), Seongdong (1.5)

Nationwide apartment rental prices

(Percentage change from previous period)

2007 2008

2009

Annual Annual

Annual Annual Apr

2010

2011

Nov

Dec

Jan

Feb

Mar

Apr

Apr 41 Apr 111 Apr 181 Apr 251

Nationwide

1.9

0.8

4.5

8.8

0.8

1.4

1.0

1.1

2.0

2.3

1.6

0.37

0.30 0.26

0.25

Seoul

2.2

-1.8

8.1

7.4

0.7

1.1

0.8

1.1

2.1

1.8

0.7

0.12

0.12 0.12

0.06

0.5

-3.6

10.4

8.8

0.5

1.4

1.0

1.3

1.9

1.4

0.6

0.13

0.12 0.11

0.04

Gangbuk3

Gangnam

4.6

0.5

5.4

5.6

0.9

0.8

0.5

1.0

2.4

2.3

0.8

0.12

0.13 0.15

0.08

Seoul metropolitan area

2.1

-0.4

5.6

7.2

0.7

1.3

0.7

1.0

2.1

2.4

1.2

0.23

0.17 0.14

0.12

5 metropolitan cities

1.1

1.6

3.9

12.0

1.0

1.5

1.4

1.3

2.1

2.2

2.2

0.55

0.47 0.39

0.44

2

1. Weekly trends

2. Upscale area of Southern Seoul

3. Northern Seoul

Source: Kookmin Bank

Apartment sales transactions in March increased 26.3 percent from the previous month’s
77,471 to 97,842. The transactions were up 23.0 percent from 79,549 a year earlier.

Apartment sales transactions
2007

2008

(Monthly average, thousand)
2009

Annual Annual Annual Oct
Nationwide

84

74

77

Source: Korea Land & Housing Corporation

36

May 2011

87

2010

Nov
82

Dec Annual May Jun
82

71

62

65

2011

Jul Aug Sep Oct Nov Dec Jan Feb Mar
62

57

57

73

86

106

80

77

98

12-1 Real estate prices
Source: Kookmin Bank (national housing price trend)

12-2 Weekly apartment sales prices and monthly transaction volume
Source: Kookmin Bank (weekly APT price trend) & Korea Land Corporation (monthly land trade trend)

12-3 Apartment prices by region
Source: Kookmin Bank (national housing price trend)

Economic Bulletin

37

12.2 Land market
Nationwide land prices in March rose for the fifth consecutive month (up 0.11%), but were
still 1.92 percent lower than the pre-crisis peak reached in October 2008. Land prices were
0.21 percent lower compared with the previous year, but the pace of increase has
accelerated evenly nationwide.
Land prices in the Seoul metropolitan area (up 0.12%), Seoul (up 0.15%), Gyeonggi Province
(up 0.10%) and Incheon (up 0.06%) posted a slight increase from the previous month.
Land price increases in Seoul metropolitan area (m-o-m, %)
0.12 (Dec 2010)

0.10 (Jan 2011)

0.10 (Feb)

0.12 (Mar)

Land prices in areas excluding the Seoul metropolitan area rose 0.08 percent month-onmonth in February, continuing the upward trend from October 2010.
Land price increases in areas excluding Seoul metropolitan area (m-o-m, %)
0.10 (Dec 2010)

0.07 (Jan 2011)

0.07 (Feb)

0.08 (Mar)

Land prices by region
2007

(Percentage change from previous period)
2008

Annual Annual

2009

Q4

2010

2011

Annual

Q1

Q2

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Jan

Feb

Mar

Nationwide

3.88

-0.31 -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

0.11

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

0.15

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

0.10

Incheon

4.86

1.37

1.99

-1.39

0.53

1.16

1.70

1.43

1.08

0.43

-0.10

0.02

0.06

0.06

0.06

-3.57

Source: Korea Land & Housing Corporation

Nationwide land transactions in March recorded 244,000 land lots, up 38.7 percent from the
previous month and up 14.6 percent from 213,000 a year earlier. Land transactions were
8.2% less than the five-year March average of 226,000 land lots.
Month-on-month land transactions increased greatly in areas such as Seoul (up 34.3%, m-om), Incheon (up 42.9%, m-o-m), Gyeonggi Province (up 37.6%, m-o-m), and Gwangju (up
51.7%, m-o-m).

Land sales transactions

(Land lot, thousand)

2007 2008

Nationwide

2009

2010

2011

Annual Annual Annual

Sep

Oct

Nov

Dec

Annual Mar

Sep

Oct

Nov

Dec

Jan

Feb

Mar

208

208

203

226

212

207

241

187

213

145

181

208

257

191

176

244

Seoul

33

26

22

28

25

19

21

16

20

11

14

18

24

18

17

23

Gyeonggi

49

45

46

56

52

48

58

41

44

32

40

45

58

46

38

52

Incheon

13

13

10

13

14

11

12

8

9

7

8

9

11

8

9

13

Source: Korea Land & Housing Corporation

38

May 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
Despite improvements in related indices, the cyclical indicator of the coincident composite
index fell 0.1 point in March, due to the three-month moving average effect.
Among the components of the coincident composite index, six factors, including the mining
& manufacturing production index and domestic shipment index, increased from the
previous month, while the value of construction completion and service activity index
dropped.
Components of coincident composite index in Mar (m-o-m)
Mining & manufacturing production index (1.0%), domestic shipment index (0.7%), wholesale & retail sales
index (0.3%), volume of imports (0.3%), number of non-farm payroll employment (0.3%), manufacturing
operation ratio index (0.1%), value of construction completion (-2.3%), service activity index (-0.1%)

The year-on-year leading composite index in March decreased for the second consecutive month
(down 0.3%p, m-o-m), as the consumer expectations index and terms of trade declined.
Among the components of the leading composite index, three factors, including the indicator
of inventory cycle and value of construction orders received, rose month-on-month, while six
factors, such as the consumer expectations index and value of machinery orders received fell.
Components of the leading composite index in Mar (m-o-m)
Indicator of inventory cycle (2.6%p), value of construction orders received (0.9%), composite stock price
index (0.6%), spreads between long & short term interest rates (0.0%p), consumer expectations index
(-6.2p), value of machinery orders received (-5.2%), value of capital goods imports (-1.8%), net terms of
trade index (-1.5%), ratio of job openings to job seekers (-0.7%p), liquidity in the financial institutions (-0.6%)
2010

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

2011

Sep

Oct

Nov

Dec

Jan1

Feb1

Mar1

-0.3

-0.3

0.2

0.8

1.5

0.1

0.4

100.4

99.6

99.5

99.8

100.8

100.6

100.5

-0.7

-0.8

-0.1

0.3

1.0

-0.2

-0.1

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

0.0

-0.3

0.2

0.5

0.6

-0.2

-0.3

12 month smoothed change
in leading composite index (%)

4.5

3.3

2.8

2.9

3.0

2.4

1.6

-0.9

-1.2

-0.5

0.1

0.1

-0.6

-0.8

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

40

May 2011

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

13-2 Leading composite index
Source: Statistics Korea

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

Economic Bulletin

41

Policy Issues
The 2012 guidelines on budgeting

The 2012 guidelines pursue fiscal consolidation and effective budget spending. Balanced
fiscal situation on which the future of Korea is firmly based will be the focus of the 2012
budgeting, while the government continues to provide essential support.

Overview
It is time for Korea to manage total fiscal balance as the country is on its way to solid fiscal
recovery. The rise in the total fiscal expenditure will be controlled below that in the total
revenue so that the 2012 fiscal balance can be improved from 2011’s deficit of 2.0 percent of
GDP. To help the country achieve fiscal health and prepare for the better future at the same
time, the government will plan budget spending on the principle of ‘selection and
concentration’, and provide strong support to the most essential projects.
Stricter rules will be applied to budget spending, while fiscal projects will be field-examined
before allocating budgets.

42

May 2011

Guidelines on budget allocation
The 2012 budgets will be aimed at 1) providing better environment for employment,
education, and living, 2) fostering green growth industries and developing next generation
high technologies, and 3) strengthening security in terms of homeland protection and social
safety nets, and reinforcing efforts in crime and natural disaster prevention.
1) Providing better environment for employment, education, and living
The 2012 budgets will contain a second round of support for working classes, which covers
customized help for vulnerable groups, in addition to the ongoing support for childcare,
specialized high schools, and multicultural families. Social welfare budgets will have to be
planned in an employment-friendly way, which are expected to help the working poor. In
2012 there will be an increase in government’s spending related to providing lifelong
education, improving living environment and developing cultural industries. Details of the
guideline are as follows:
- Customized jobs for women and the physically challenged
- Creating jobs for baby boomers, which require their knowledge and experience
- Programs to encourage basic livelihood security recipients to work
- Supporting newly established self-employed businesses and providing educational
opportunities to startups
- Performance of government’s job creation projects to be reflected in budgeting, and similar
projects to be merged or streamlined
- Reinforced daycare programs aimed at raising birth rates and facilitating multicultural
families’ settlement
- Programs to reduce basic living costs such as those for housing, education and health care
- Employment opportunities for graduates of specialized high schools to be increased
through customized job training and employment arrangement with private companies
- Support for university-industry cooperation to become more focused and systemized
- Encouraging the private sector to provide lifelong education
- Growing cultural and contents industries as one of future growth engines, and introducing
voucher programs to help vulnerable groups enjoy cultural events
- Support for sports, leisure and cultural activities
- Helping develop regional traditional cultures as one of tourism resources
- Stricter standards to be applied in examining soil and groundwater pollution
- Environment related infrastructure systems such as those of water supply, drainage and
sewage disposal to be reformed for effective management
2) Fostering green growth industries and developing next generation high technologies
The 2012 budgets will have to more effectively allocate R&D budgets as well as expand
them, with a focus on enhancing research capabilities in basic sciences. In 2012 green
growth related budgets including development of energy saving technologies will be
increased, with the four river restoration projects successfully carried out. Based on the

Economic Bulletin

43

budgeting guidelines which highly prioritize developing future growth engines, the
government will keep nurturing IT convergence and other next generation high value added
technologies, and seek developing markets in emerging countries. Green house gas
emissions reduction obligations will be applied more broadly. Details of the guideline are as
follows:
- R&D investment to be under close evaluation with the focus of the investment moving
toward basic sciences, original technologies, new growth engines, and green growth
related technologies
- Restructuring of similar R&D projects
- National Science & Technology Council to lead the directions of national R&D projects
- Maintenance of flood prevention facilities constructed during the four river restoration
project
- High speed rails, one of the green transportation methods, to be constructed as scheduled,
with public transportation conveniently linked to them to boost demand for railways
- Upgrading water quality by improving water supply and drainage infrastructures and waste
disposal facilities
- Helping small- and medium-sized enterprises (SMEs) enter overseas markets, in particular
emerging markets
- High-tech convergence industries, biotechnologies and health-related industries to receive
strong support as future growth engines
- New and innovative enterprises to receive financial support on the principle of selection
and concentration
- Support for developing energy saving technologies and expanding overseas resources
development, aimed at securing energy supply and developing substitutes for conventional
energy resources
- Improving distribution systems of fresh food products to stabilize their prices, and raising
competitiveness of agricultural and fishery industries ahead of FTAs
- Applying stricter quarantine systems for livestock
- Bolstering high value added agricultural and fishery industries, such as the seed industry,
bio-industry and globalized food industry
3) Strengthening homeland securities, and crime and natural disaster prevention
Core combat capabilities will have to be enhanced against North Korea’s provocation and
asymmetric threats. Security related budgets, such as those for natural disaster prevention,
food and other everyday-life related safety, and social safety nets for vulnerable groups, will
continue to expand. In addition, official development assistance (ODA) will continue to
increase. Details of the guideline are as follows:
- Reform of the military procurement system and military R&D investment
- Increased support for military veterans
- Increased spending in natural disaster prevention, information protection and everyday-life
safety such as that of food and transportation

44

May 2011

- ODA to reach 0.15 percent of GNI
- Increased support for North Korean defectors
- Reimbursement of acquisition tax cuts to local governments, aimed at helping increase
fiscal stability of the local governments

Guidelines on fiscal management
The focus of the 2012 budget management is on strictly regulating spending, and pursuing
fiscal consolidation. To this end, the government will limit budget spending to the most
essential ones, secure tax revenue, carefully manage long-term fiscal risks, and fieldexamine fiscal projects and reflect the result in budgeting. Details of the guidelines are as
follows:
- Restructuring of local government projects to ease the financial burden of both the local
governments and the central government
- Legislation incurring budget spending to be carefully examined by government’s legislation
committee
- Welfare, R&D, and ODA projects to be carefully examined and restructured
- Withdrawal of tax exemptions and cuts, and increased taxation on tax evaders
- Mid- and long-term risk management of public debts, in particular debts of the National
Pension Service and the National Health Insurance Corporation
- Field examination of fiscal projects, the result of which to be reflected in allocating budgets
- Careful examination of ongoing fiscal projects by outsourced experts

Economic Bulletin

45

Economic
News Briefing

Korea grows 1.4% in Q1 (Advanced)
Korea’s real gross domestic product (GDP) expanded by 1.4 percent in the first quarter of
2011 compared to the previous quarter. From a year earlier, the GDP grew 4.2 percent.
On the production side, manufacturing sector expanded 3.2 percent led by an increase in
electrical & electronic equipment, steel and automobile manufacturing. Service sectors grew
1.3 percent from the previous quarter’s 1.1 percent. Meanwhile, agriculture, forestry &
fishery contracted by 5.1 percent due to the sluggishness in the livestock industry affected
by the outbreak of foot-and-mouth disease.
On the expenditure side, exports rose by 3.3 percent helped by robust semiconductors,
electronic components and automobiles exports. Private consumption grew by 0.5 percent as
increased expenditures on durable goods offset sluggish spending on nondurable goods. Facility
investment and construction investment decreased by 0.8 percent and 6.7 percent, respectively.
Real gross domestic income (GDI) fell by 0.6 percent as terms of trade declined affected by
high oil prices.

46

May 2011

<GDP by production and expenditure*>

(Percentage change from previous period)
20101

2009
Q2

Q1

Q4

Q1

Q2

Q3

Q1

Q4

1.4 (4.2)

0.1 (-4.2) 2.5 (-2.1) 3.4 (1.0) 0.2 (6.3) 2.1 (8.5) 1.4 (7.5) 0.6 (4.4) 0.5 (4.7)
2

GDP
Agriculture, forestry and fishery
Manufacturing
Construction
Services

Q3

20111

3

Private consumption
Government consumption
Facility investment

1.1

0.0

3.7

0.0

-3.1

-2.5

-2.5

0.2

-5.1 (-9.2)

-3.4

8.4

9.7

-1.1

4.2

4.0

2.3

0.1

3.2 (9.9)

3.5

1.3

-1.4

0.5

1.4

-0.1

-1.2

-3.2

-6.1 (-9.9)

0.3

1.0

0.9

0.9

1.6

0.1

0.1

1.3

1.3 (2.8)

-0.3

3.7

1.4

0.9

0.5

0.7

1.4

0.3

0.5 (3.0)

2.6

0.8

0.1

-1.1

3.6

0.3

-0.1

-0.4

1.8 (1.6)

-10.2

6.7

9.1

7.8

2.8

7.9

5.6

-1.0

-0.8 (12.0)

3.9

2.4

-1.2

0.7

2.0

-4.2

-0.8

-1.0

-6.7 (-11.9)

Goods exports4

-2.1

13.3

5.4

-1.7

3.0

7.4

2.5

3.0

4.6 (18.6)

Goods imports

-6.1

8.1

7.8

-0.4

4.8

7.1

3.6

-0.7

2.7 (13.3)

0.8

4.8

1.9

1.2

1.6

1.2

0.5

0.3

-0.6 (1.6)

Construction investment

4

Gross Domestic Income

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

National Assembly passes Korea-EU FTA
The National Assembly approved the Korea-EU free trade agreement (FTA) on May 4, 2011 by
a vote of 163 to 1 with 5 abstentions. The trade pact between Korea and the EU was initialed
on October 15, 2009 and signed on October 6, 2010. The European Parliament supported the
trade agreement by a wide margin on February 17, 2011. With the approval of both parties,
the provisional application of the FTA is expected on July 1, 2011.
The Korea-EU FTA will bring significant positive effects on the Korean economy considering
that the EU is the world’s biggest trading bloc and Korea’s second largest trading partner. In
addition, the trade pact is expected to contribute to solidifying the strategic partnership,
which was established during the Korea-EU Summit last October. The Ministry of Foreign
Affairs and Trade welcomed the ratification of the FTA, saying it will help Korea better
prepare against global economic challenges such as Japan’s devastating earthquake, political
upheaval in the Middle East and North Africa, and the Korean currency’s appreciation.

Economic Bulletin

47

Korea announces follow-up plan for improving service sector
The Korean government released an assessment of previous plans to nurture the service
sector and announced follow-up measures for the industry, at a meeting held by the Ministry
of Strategy and Finance (MOSF) on April 27. Since 2001, the government has introduced
various measures to enhance the competitiveness of the service sector, but ten years of
efforts have not led to significant advancements to the sector. Although some improvements
have been made in terms of increased employment opportunities and eased regulations,
other areas, such as the structure of employment, productivity and international
competitiveness, leave much to be desired.
According to the assessments, the employment rate in the service industry has been steadily
increasing but there needs to be efforts to improve the quality of employment. In order to
enhance productivity, knowledge based service industries should increase investment in
research and development (R&D), and to improve the service account, the tourism,
education and consulting services should be further promoted. The government pointed out
five service industries that need improvement - medical and social services, education,
tourism and leisure, broadcasting and communication contents, and business services - and
unveiled detailed action plans.

Korea to support construction industry
On May 1, the Korean government unveiled a comprehensive program to boost the sluggish
construction industry. Establishing a bad bank to buy non-performing property loans,
reducing transfer taxes for homeowners in Seoul and the Seoul metropolitan area, extending
tax incentives for real estate investment trusts (REITs) and funds, expanding the supply of
houses by easing regulations on land use and promoting project developments without
minimum revenue guarantee (MRG) are part of the plan.
In particular, by creating a Project Financing Stabilization Bank (“the PFS Bank”), all project
financing (PF) loans can be pooled together and purchased by one bank so that the PFS
Bank can take actions to restructure and stabilize the industry on an individual project basis.
The first PFS bank, which will be launched during June 2011, will acquire 1 trillion won worth
of soured PF loans. The second and the third PFS Banks will follow suit afterwards.

48

May 2011

Korea to help low-income households’ access to financial services
The Financial Services Commission (FSC) announced on April 18 measures to lower financial
costs of low-income households and strengthen the financial safety net. According to the
plan, Korea will provide 3.2 trillion won in loans to low-income families this year through its
three lending programs: Smile Microcredit, Sunshine Loans; and New Hope Loans.
Regarding individual credit rating, credit inquiry records would be no longer taken into the
assessment of individuals’ credit rating. In addition, overdue payments of less than 100,000
won would not affect borrower’s credit rating. Overdue payments of less than 90 days would
be reflected only for three years, in the assessment of borrower’s credit ratings if debts are
fully repaid.
As a part of the plan, measures such as putting a cap on loan brokerage fees, strengthening
the crackdown on illicit brokerage practices, extending the operation of pre-workout program,
broadening the scope of beneficiaries of transfer loans, and expanding financial support for
those in the credit recovery program, establishing a database of financial services targeting
low-income earners and creating more education programs for them are included.

Government strengthens price stabilization efforts
The Ministry of Strategy and Finance (MOSF) held a meeting on May 3 to discuss the
government’s price stabilization efforts. Responding to inflationary pressures in regional
public utility and personal service charges, the government has set up an action plan to
provide 50 billion won in financial aid to stabilize public utility prices in regional areas. The
system will be introduced in June to compensate provincial governments for losses from
price hikes in intra-city buses, subways and water supply. Meanwhile, the government
recognized that provision of agricultural, livestock and fishery products have improved but
supply problems still exist in certain items such as rice and pork. Therefore the government
will attempt to stabilize the market by releasing its holdings of rice and increasing tariff
quotas for imported pork.

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

2011P

I

4.2

-9.2

9.9

2.7

-2.2

-11.9

12.0

P: Preliminary
Source: The Bank of Korea

52

May 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)

Production
index

Period

2009
2010

Y-o-Y
change (%)

Shipment
index

Y-o-Y
change (%)

Inventory
index

Y-o-Y
change (%)

Service
production
index

Y-o-Y
change (%)

119.7
139.1

-0.1
16.2

116.7
133.5

-1.4
14.4

115.5
135.6

-7.8
17.4

118.3
122.9

1.8
3.9

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
3.2

143.4

10.5

138.7

11.9

136.8

9.8

122.9

2.5

2011

IP

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

146.9
130.0
153.4

13.6
9.2
8.7

141.4
125.3
149.4

14.9
10.3
10.5

135.4
137.3
136.8

13.0
11.4
9.8

124.1
116.8
127.7

4.7
0.1
2.7

2011

1
2P
3P

P: Preliminary
Source: Statistics Korea

54

May 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 (%)

119.3
127.9

3.5
7.2

93.8
102.1

-3.5
8.8

74.4
81.2

Production
capacity index
(2005=100)

2009
2010
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

132.6

6.7

100.0

2.7

83.2

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 1
2P
3P

132.2
132.4
133.3

7.0
6.9
6.4

102.5
89.7
107.9

5.6
1.5
1.1

84.8
82.4
82.5

2011

IP

P: Preliminary
Source: Statistics Korea

Economic Bulletin

55

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

Period

2009
2010

Y-o-Y
change (%)

Durable
goods

Y-o-Y
change (%)

Semi-durable
goods

Y-o-Y
change (%)

Non-durable
goods

Y-o-Y
change (%)

113.6
121.1

2.7
6.6

136.8
157.2

8.2
14.9

106.3
113.5

1.3
6.8

111.3
113.7

1.2
2.2

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

122.5

4.9

167.7

12.8

112.0

6.0

111.8

0.6

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
126.2

10.6
-0.8
4.9

165.9
154.2
183.0

14.0
9.1
14.9

120.4
101.6
114.1

11.1
2.0
4.6

118.9
104.3
112.2

9.4
-7.0
-0.4

2011

2011

IP

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

P: Preliminary
Source: Statistics Korea

56

May 2011

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

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

Period

2009
2010

Durable
goods

Y-o-Y
change (%)

Non-durable
goods

Y-o-Y
change (%)

Consumer
sentiment index

116.4
122.0

1.4
4.8

135.1
139.6

6.5
3.3

108.9
115.0

-0.9
5.6

-

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

-

120.8

1.9

135.2

-1.1

115.0

3.4

-

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
2P
3P
4P

129.6
106.2
126.6
-

4.8
-3.7
4.1
-

133.0
126.2
146.5
-

-2.2
-2.7
1.4
-

128.2
98.2
118.5
-

7.9
-4.3
5.5
-

108
105
98
100

2011

IP

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

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

6,623

471

6,153

3,742

128.5

133.4

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 1
2P
3P

2,115
2,070
2,438

116
122
233

2,000
1,948
2,205

1,156
1,148
1,438

125.7
114.4
145.5

127.6
124.3
148.4

2010
2010

2011

I
ll
III
IV
IP

Manufacturing

Y-o-Y change (%)
2010

11.2

-37.9

21.8

32.3

25.1

22.5

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

19.5

-10.3

22.6

28.6

6.6

14.3

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

2011

19.7
26.1
14.2

-31.5
14.0
-6.3

25.1
27.0
16.9

14.6
30.4
40.8

22.2
1.4
0.3

17.8
21.0
6.7

2010

2011

I
ll
III
IV
IP

1
2P
3P

P: Preliminary
Source: Statistics Korea

58

May 2011

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

Period

2011
2010

2011

Private

Public

Private

35,163

52,777

88,675

29,013

54,628

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

18,980

7,271

10,793

15,796

4,053

10,743

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
5,277
7,546

2,415
2,047
2,809

3,476
2,991
4,327

4,658
4,959
7,179

1,295
1,396
1,362

2,697
2,445
5,601

92,238
I
ll
llI
lV
IP
1
2
3
4
5
6
7
8
9
10
11
12
1
2P
3P

Type of order

Domestic
construction
orders received
(total)

Public

2010
2010

Type of order

Value of
construction
completion
(total)

Y-o-Y change (%)
2010
2010

2011
2010

2011

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

2.7

8.5

0.5

-18.7

-43.7

2.8

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

-6.6

-2.6

-9.9

-12.8

-49.1

18.2

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
-14.1
-1.8

7.0
-11.1
-3.4

-12.5
-17.3
-1.5

-33.9
-16.7
13.7

-46.3
-35.7
-59.6

-36.9
9.5
117.0

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
5

130.1
129.8
129.4
-

3.0
2.4
1.6
-

135.1
135.3
135.8
-

100.8
100.6
100.5
-

99.1
92.2
107.8
98.4
-

101.8
98.0
113.5
99.3
104.3

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

May 2011

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

Current
balance

Period

2009
2010P

Goods
trade
balance

Exports

32,790.5
28,213.6

37,866.0
41,904.0

Imports

Services
trade
balance

Income
trade
balance

Current
transfers

358,189.7
464,286.9

320,323.7
422,383.1

-6,640.5
-11,229.4

2,276.7
768.4

-711.7
-3.229.4

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

2011P

I

2,715.3

5,948.1

127,700.0

121,751.9

-2,538.0

387.9

-1,082.7

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
3

154.7
1,126.1
1,434.5

1,557.9
1,530.8
2,859.4

42,662.8
37,228.3
47,809.2

41,104.9
35,697.2
44,949.8

-1,640.9
-569.1
-328.0

703.7
542.6
-858.4

-466.0
-378.2
-238.5

2009

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

Economic Bulletin

61

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

Errors and
omissions

289.6
-174.2

-68,666.4
-27,094.5

1,860.7
-2,882.1

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

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

-1,379.1

730.3

6,226.0

-181.4

-3,479.2

64.4

-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

-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

-1,282.0
-1,996.2
498.5

-1,725.4
-1,635.1
-1,335.8

904.6
-3,004.0
720.3

569.3
-363.3
524.3

1,773.3
5,126.9
-674.2

-120.7
-32.7
-28.0

-2,683.1
-2,088.0
1,291.9

1,127.3
870.1
-1,933.0

Period

Capital &
financial
account

Direct
investment

Portfolio
investment

Financial
derivative

2009
2010P

-34,651.2
-25,331.5

-14,948.0
-19,379.7

49,727.7
38,552.4

-3,093.0
-7.4

2,038.9
-17,228.1

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

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

2011P I

-2,779.7

-4,696.3

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

2010 P 1
2
3
4
5
6
7
8
9
10
11
12
2011P 1
2
3

2009

P: Preliminary
Source: The Bank of Korea

62

May 2011

Capital transfers
Other
& acquisition of
investment non-financial
assets

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
4

118.9
119.8
120.4
120.4

123.8
125.1
123.1
125.7

115.8
116.4
116.6
116.9

116.3
117.1
117.4
117.6

119.7
120.5
122.0
122.4

122.7
123.9
125.8
126.2

108.6
110.6
113.5
111.8

156.1
160.9
166.5
167.6

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

4.1
4.5
4.7
4.2

7.1
7.8
7.9
6.4

2.2
2.5
2.5
2.5

2.6
3.1
3.3
3.2

6.2
6.6
7.3
6.8

7.7
8.2
9.1
8.4

4.9
5.6
9.1
7.7

14.1
16.9
19.6
19.0

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
3
4

24,114
24,431
24,918
25,240

23,196
23,336
23,846
24,303

4,148
4,149
4,122
4,108

18,007
3.8
18,019
4.5
18,244
4.3
18,536
3.7
Y-o-Y change (%)

16,832
16,856
17,065
17,357

10,305
10,390
10,543
10,618

4,848
4,781
4,782
4,928

1,680
1,684
1,740
1,812

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
3
4

0.1
1.6
2.2
1.5

1.4
2.1
2.0
1.6

5.7
6.7
5.1
2.9

1.2
1.4
1.1
1.4

-

3.3
3.5
2.7
2.1

6.1
6.2
6.2
6.1

-0.3
-1.2
-3.9
-4.3

-2.6
1.6
1.5
-1.3

Source: Statistics Korea

64

May 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
4

2.7
2.8
2.9
3.0

2.9
3.1
3.4
3.4

4.5
4.7
4.5
4.5

3.7
3.9
3.7
3.7

4.3
4.4
4.1
4.1

2,069.73
1,939.30
2,106.70
2,192.36

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
3

73,540.8
75,432.1
73,012.7

429,368.1
432,482.8
430,936.6
Y-o-Y change (%)
16.3
11.8

1,676,448.8
1,674,390.5
1,677,475.9

2,152,814.0
2,148,254.1
2,152,736.5

10.3
8.7

7.9
8.2

2009
2010

18.1
9.5

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
3

13.0
13.3
11.2

12.6
11.5
11.6

6.5
5.0
4.3

6.6
5.2
4.7

Source: The Bank of Korea

66

May 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
4

1,114.3
1,127.9
1,107.2
1,072.3

1,120.1
1,118.1
1,122.5
1,086.8

1,356.3
1,351.0
1,376.2
1,304.8

1,514.0
1,549.5
1,563.5
1,591.2

1,495.4
1,524.6
1,572.6
1,569.4

-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
4

-3.6
-2.6
-2.1
-3.9

-1.6
-3.4
-1.3
-2.7

5.4
6.3
9.4
10.7

8.7
5.4
9.6
9.2

-6.2
-1.3
3.0
7.6

-8.1
-3.8
1.8
4.5

2009
2010

1,356.6
1,380.7
1,331.9
1,313.8
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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