Vol. 33 | No.

8

Republic of Korea

Economic Bulletin
The Green Book : Current Economic Trends
Overview

3

1. External economic situation

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
Outcomes of government plans to further develop the
service sector

42

Economic News Briefing

46

Statistical Appendices

51

The Green Book
Current Economic Trends
Overview
The Korean economy has stayed on a recovery track with employment improving, while
inflation has remained in the four percent range.
Employment growth accelerated in June, adding 472,000 jobs, led by service industries, with
the employment rate rising year-on-year to 60.3 percent from 59.8 percent, and the
unemployment rate dropping to 3.3 percent from 3.5 percent.
Consumer price inflation accelerated month-on-month from 4.4 percent to 4.7 percent in
July, affected by rising agricultural product prices amid the torrential rain and rebounding
petroleum product prices with oil refiners withdrawing temporary price cuts. Meanwhile,
core consumer prices continued an upward track from 3.7 percent to 3.8 percent, as the
prices of processed food and cost of dining out remained strong.
Mining and manufacturing production rose 0.7 percent in June, as difficulties disrupting
steady supply in automobile and chemical industries were eased. Service output grew 0.9
percent compared with the previous month on the back of wholesale & retail sales
continuing an upward track.
In June, retail sales rose 1.3 percent month-on-month in line with growing durable goods
sales, particularly automobiles.
Facilities investment increased 0.5 percent month-on-month in June, thanks to increasing
transportation equipment investment. Construction investment gained 14.3 percent from the
previous month, as SOC spending was expanded.
Exports increased 27.3 percent year-on-year in July backed by brisk vessels, petroleum
products and steel products, resulting in a widening trading surplus from US$2.8 billion in
the previous month to US$7.2 billion.
The cyclical indicator of the coincident composite index rose for a second consecutive month
in June with most of the index’s components improving. The leading composite index climbed
year-on-year for two months in a row, as machinery orders and construction orders increased.
Uncertainties surrounding the financial market rose in July, fueled by the possibility of the US
failing to reach a debt ceiling agreement amid lingering worries over the European fiscal crisis.
While home prices in the Seoul metropolitan area fell slightly with continuing wait-and-see
attitudes, rent increased at a faster pace affected by seasonal factors.
The Korean government will closely monitor the economic situation, as there are growing
external uncertainties such as high oil prices, slowdown in major economies and possible
spread of the European fiscal crisis.
Under these circumstances, the government will focus on stabilizing prices, with active
measures to curb price increases in the short term, particularly following the torrential rain
and before Chuseok Holiday, as well as long-term measures to improve the economy’s pricesetting system. On the other hand, the government will renew its efforts to boost domestic
demand and restructure the economy so that the economy can enhance job creation
capabilities and build a solid ground for sustainable development.
Economic Bulletin

3

1. External economic situation
Although the recovery of the global economy is continuing, led by developing countries such
as China, there is growing concern that the recovery might slow down as economic
indicators for the US and other economies have dropped.
At an emergency summit on July 21, eurozone leaders agreed on a second rescue package
for Greece worth 158.6 billion euros, easier lending terms for Portugal and Ireland, and
broader powers for the European Financial Stability Facility.
Although concerns over a possible default alleviated following an agreement between the
Obama administration and congressional leaders to raise the country’s debt ceiling, S&P
downgraded US credit rating from AAA to AA+ on August 5.

US

US economic growth slowed down to 0.4 percent (annualized q-o-q) in the first quarter of
2011 and 1.3 percent in the second quarter.
Comparison between preliminary and revised GDP growth rate
Preliminary: -0.7 (Q2 2009) 1.6 (Q3) 5.0 (Q4) 3.7 (Q1 2010) 1.7 (Q2) 2.6 (Q3) 3.1 (Q4) 1.9 (Q1 2011)
Revised: -0.7 (Q2 2009) 1.7 (Q3) 3.8 (Q4) 3.9 (Q1 2010) 3.8 (Q2) 2.5 (Q3) 2.3 (Q4) 0.4 (Q1 2011)

Industrial production increased 0.2 percent month-on-month in June and retail sales gained 0.1
percent, but in July the ISM manufacturing index and the consumer sentiment index both fell.
ISM manufacturing index (base=50)
61.4 (Feb 2011)

61.2 (Mar)

60.4 (Apr)

53.5 (May)

55.3 (Jun)

50.9 (July)

69.8 (Apr)

74.3 (May)

71.5 (Jun)

63.7 (July)

Consumer sentiment index
77.5 (Feb 2011)

67.5 (Mar)

Housing prices continued to fall in May with a drop of 0.1 percent month-on-month based on
the S&P/Case-Shiller Home Price Index, and in June existing home sales fell 0.8 percent
while new home sales slipped 1.0 percent.
S&P/Case-Shiller Home Price Index (m-o-m, %)
-0.3 (Jan 2011)

-0.3 (Feb)

-0.6 (Mar)

0.4 (Apr)

-0.1 (May)

The recovery of the labor market lost steam in June as non-farm payrolls only climbed by
18,000 month-on-month, and the unemployment rate rose to 9.2 percent.
Non-farm payrolls (q-o-q, thousand)
68 (Jan 2011)

235 (Feb)

194 (Mar)

217 (Apr)

25 (May)

18 (Jun)
(Percentage change from previous period)

2009

20111

2010

May

Jun

1.3

-

-

2.1

0.1

-

-

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Real GDP 2

-3.5

3.0

3.9

3.8

2.5

2.3

0.4

- Personal consumption expenditur

-1.9

2.0

2.7

2.9

2.6

3.6

- Corporate fixed investment

-17.8

4.4

6.0

18.6

11.3

8.7

2.1

6.3

-

-

- Housing construction investment

-16.0

14.6

-15.3

22.8

-27.7

2.5

-2.4

3.8

-

-

Industrial production

-11.2

5.3

2.0

1.7

1.6

0.8

1.2

0.2

-0.1

0.2

-7.0

6.4

2.1

1.0

0.9

3.0

2.5

1.1

-0.1

0.1

Existing home sales

5.2

-4.5

-12.3

7.5

-25.1

13.8

8.2

-5.4

-3.8

-0.8

Unemployment rate3

9.3

9.6

9.7

9.6

9.6

9.6

8.9

9.1

9.1

9.2

-0.3

1.6

0.3

-0.1

0.4

0.7

1.3

0.4

0.2

-0.2

Retail sales

Consumer prices
1. Preliminary

4

2. Annualized rate (%)

August 2011

3. Seasonally adjusted

Source: US Department of Commerce

1-1

US GDP (q-o-q, annualized rate)
Source: US Department of Commerce

1-2

US non-farm payroll employment (m-o-m change)
Source: US Department of Labor

1-3

US federal funds rate and consumer prices
Source: US Federal Reserve Board & Department of Labor

Economic Bulletin

5

China

The solid growth of China’s industrial production continued amid rising inflationary pressure
as consumption and investment increased. Consumer prices climbed month-on-month in
June to 6.4 percent from 5.3 percent in the previous month, as food prices rose following a
spike in pork prices.
Food prices (y-o-y, %)
10.3 (Jan 2011)

11.0 (Feb)

11.7 (Mar)

11.5 (Apr)

11.7 (May)

14.4 (Jun)

(Percentage change from same period in previous year)
Q1

2010
Q2

Q3

Q4

Q1

20111
Q2
May

11.9

10.3

9.6

9.8

9.7

9.5

-

-

15.7

19.6

16.0

13.5

13.3

14.9

13.9

13.3

15.1

30.5

24.5

26.4

25.5

24.5

24.5

32.5

27.0

34.0

27.0

15.5

23.3

23.7

23.8

23.9

22.0

17.1

18.2

16.9

17.7

-16.0

31.3

28.7

40.9

32.2

24.9

26.4

22.0

19.4

17.9

Consumer prices2

-0.7

3.3

2.2

2.9

3.5

4.7

4.9

5.7

5.5

6.4

Producer prices2

-5.4

5.5

5.2

6.8

4.5

5.7

7.0

6.9

6.8

7.1

2009
Annual

Annual

9.1

10.3

Industrial production2

11.0

Fixed asset investment (accumulated)
Retail sales

Real GDP

Exports

Jun

1. Preliminary
2. Quarterly change: average of monthly change
Source: China National Bureau of Statistics

Japan

Japan’s production and retail sales grew in June, while its exports slowed down a decline,
showing the country’s gradual recovery from the major earthquake earlier this year. The
Bank of Japan on July 11 revised downward its economic growth forecast for 2011 from 0.6
percent to 0.4 percent, but maintained its 2.9 percent growth forecast for 2012.
(Percentage change from previous period)

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

2009
Annual

Annual

-6.3

4.0

-21.9

20111
May
Apr

Q1

2010
Q2

Q3

Q4

Q1

1.5

0.5

0.8

-0.3

-0.9

-

-

-

16.4

7.4

0.7

-1.1

-0.1

-2.0

1.6

5.7

3.9

-2.3

2.5

3.8

3.7

3.2

-0.4

-3.0

-4.8

-1.3

1.2

-33.1

24.4

43.2

33.2

17.8

10.0

2.4

-12.4

-10.3

-1.6

-1.4

-0.7

-1.2

-0.9

-0.8

0.1

0.0

0.3

0.3

0.2

Jun

Source: Japan's Statistics Bureau and Statistics Centre, Ministry of Economy, Trade and Industry, Ministry of Finance

Eurozone

Consumer prices rose 2.7 percent in June, exceeding the European Central Bank’s target of
2.0 percent for the seventh consecutive month, as the eurozone recovery lost momentum.
The European Banking Authority said on July 15 that its EU-wide stress test found that eight
banks fell below the 5 percent Core Tier 1 Ratio threshold, and the total capital shortfall
would be 2.5 billion euros.
(Percentage change from previous period)

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

6

August 2011

Source: Eurostat

2009
Annual

Annual

-4.0

1.7

-14.9

20111
May
Apr

Q1

2010
Q2

Q3

Q4

Q1

0.4

1.0

0.3

0.3

0.8

-

-

7.1

2.4

2.4

1.0

1.7

1.1

0.2

0.1

-

-2.2

0.7

0.4

0.1

0.4

0.3

-0.2

0.7

-1.1

-

-18.1

20.1

12.9

22.3

22.8

21.8

21.2

15.0

20.9

-

0.3

1.6

1.1

1.5

1.7

2.0

2.5

2.8

2.7

2.7

Jun
-

1-4

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

1-5

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

1-6

Eurozone GDP growth and industrial production
Source: Eurostat

Economic Bulletin

7

2. Private consumption
Private consumption (advanced estimates) increased 1.0 percent quarter-on-quarter and 3.1
percent year-on-year in the second quarter of 2011.
(Percentage change from same period in previous year)
2010 1

2009

Private consumption

2

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

20111

Annual

Q2

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Q1

Q2

0.0

-1.1

0.4

5.6

4.1

6.6

3.5

3.6

2.9

2.8

3.1

-

3.7

1.4

0.9

-

0.5

0.7

1.4

0.3

0.4

1.0

3. Percentage change from previous period

Retail sales in June climbed 1.3 percent month-on-month and 5.6 percent year-on-year, helped
by a 3.8 percent improvement in sales of durable goods including a 6.1 percent rise in car sales,
while sales of non-durable goods such as gasoline dropped 0.4 percent month-on-month.
On a year-on-year basis, sales of durable and semi-durable goods expanded 17.2 percent
and 4.9 percent, respectively, while those of non-durable goods declined 0.7 percent.
(Percentage change from same period in previous year)
2009

Consumer goods sales
q-o-q
- Durable goods2
・Automobiles
- Semi-durable goods
- Non-durable goods

4

3

2010

2011

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

2.7

6.6

9.7

4.9

7.5

5.1

5.1

5.6

1

May1

Jun1

6.3

5.6

-

-

0.6

-0.1

3.3

0.8

1.1

0.1

1.1

1.3

8.2

14.9

29.6

5.6

17.0

10.6

12.9

17.7

20.0

17.2

21.8

11.1

48.9

-2.1

12.0

0.1

10.2

13.0

13.0

12.2

1.3

6.8

2.5

6.2

6.6

11.1

6.1

5.9

5.2

4.9

1.2

2.2

3.2

3.3

3.0

-0.7

0.8

-0.6

0.3

-0.7

1. Preliminary
2. Durable goods: Automobiles, electronic appliances, furniture, telecommunications devices, etc.
3. Semi-durable goods: Clothing, footwear, etc.
4. Non-durable goods: Food, medicine, cosmetics, fuel, tobacco, etc.
Source: Statistics Korea

Sales at large discounters and non-store retailers declined 1.4 percent and 1.0 percent
month-on-month, respectively, while those at department stores and specialized retailers
climbed 1.7 percent and 1.5 percent, each. On a year-on-year basis, all sales categories of
department stores, large discounters, specialized retailers and non-store retailers continued
to gain ground.
(Percentage change from same period in previous year)
2010

2009

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

2

Annual

Q1

Q2

Q3

Q4

Q1

Q21

May1

Jun1

4.3

8.8

7.5

9.2

7.4

10.5

11.5

9.7

8.0

7.4

-2.2

4.4

5.4

4.1

7.6

0.8

3.5

5.1

4.3

3.7

3.0

5.6

9.7

1.8

7.3

4.2

4.3

4.8

5.8

5.9

8.7

15.6

20.1

17.9

11.4

13.5

11.5

9.6

11.4

7.1

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

8

August 2011

2011

Annual

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

Sales of consumer goods are expected to grow considering a recovery in employment, which
raises purchasing power, and indicators showing positive trends.
Employment (y-o-y, thousands)
331 (Jan 2011)

469 (Feb)

469 (Mar)

379 (Apr)

355 (May)

472 (Jun)

The consumer sentiment index exceeded the benchmark of 100 and the consumer spending
plan maintained its comparatively high level.
Consumer Sentiment Index (CSI, base=100)
108 (Jan 2011)

105 (Feb)

98 (Mar)

100 (Apr)

104 (May)

102 (Jun)

102 (Jul)

Consumer Spending Plan (base=100)
114 (Jan 2011)

112 (Feb)

109 (Mar)

110 (Apr)

110 (May)

109 (Jun)

109 (Jul)

Advanced indicators of department store sales and those of large discounters as well as car
sales had been rising. Gasoline sales increased as demand jumped ahead of the end of
temporary price cuts by local oil refiners.
Credit card use (y-o-y, %)
10.8 (Feb 2011)

13.1 (Mar)

16.3 (Apr)

21.1 (May)

19.8 (Jun)

16.6 (Jul)

Department store sales (y-o-y, %)
5.2 (Feb 2011)

13.1 (Mar)

15.1 (Apr)

8.7 (May)

8.2 (Jun)

7.7 (Jul)

2.4 (May)

2.7 (Jun)

3.9 (Jul)

-2.6 (May)

-3.4 (Jun)

Large discounter sales (y-o-y, %)
-10.9 (Feb 2011)

1.9 (Mar)

4.6 (Apr)

Domestic sales of gasoline (y-o-y, %)
5.7 (Feb 2011)

-2.4 (Mar)

-4.7 (Apr)

9.9 (Jul)

Domestic sales of cars (y-o-y, %)
1.1 (Feb 2011)

8.4 (Mar)

3.0 (Apr)

3.7 (May)

6.0 (Jun)

6.1 (Jul)

Consumer goods imports (y-o-y, %)
22.6 (Feb 2011)

32.1 (Mar)

30.0 (Apr)

28.1 (May)

27.2 (Jun)

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

The consumer sales increase in July might be limited, considering reduced outdoor activities
due to bad weather conditions, including torrential rains and the rainy season.
Although global uncertainties have abated with the recent stabilization of oil prices and
easing of concerns over the European financial crisis, they may affect consumer sentiment
when they resurface.
Dubai crude (US$/barrel)
92.5 (Jan 2011)

10

August 2011

100.2 (Feb)

108.5 (Mar)

115.8 (Apr)

108.0 (May)

107.5 (Jun)

110.2 (Jul)

2-4

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

2-5

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

2-6

Consumer sentiment index
Source: The Bank of Korea

Economic Bulletin

11

3. Facility investment
Facility investment (advanced estimates of GDP) in the second quarter of 2011 increased 4.0
percent quarter-on-quarter and 7.6 percent year-on-year.
(Percentage change from same period in previous year)
20101

2009

Facility investment

2

q-o-q
- Machinery
- Transportation equipment

20111

Annual

Q4

Annual

Q1

Q2

Q3

Q4

Q1

Q2

-9.8

12.2

25.0

29.1

30.5

26.6

15.9

11.7

7.6

-

7.8

-

2.8

7.9

5.6

-1.0

-1.1

4.0

-13.5

10.1

30.8

30.0

35.3

38.9

20.5

13.9

-

2.8

19.1

6.7

24.2

15.6

-6.6

0.6

3.2

-

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

Facility investment in June rose 0.5 percent month-on-month and 4.3 percent year-on-year,
thanks to the rise in investment in transportation equipment. Facility investment is projected
to see a moderate rise given stable corporate confidence and leading indicators showing
positive signs, but ongoing external uncertainties surrounding the European debt crisis and
the possibility of a US slowdown is likely to limit the gain.
(Percentage change from same period in previous year)
2009

20111

2010

Annual

Annual

Q2

Q3

Q4

Q1

-9.4

25.1

29.5

29.3

13.6

-

-

6.7

7.2

-12.6

30.5

37.1

4.6

4.3

2.8

-10.3

11.2

-

- Public
- Private

Q21

Apr

May1

Jun1

6.6

4.6

-0.6

10.1

4.3

-5.4

-0.2

2.8

-5.4

14.1

0.5

37.4

17.1

6.8

6.8

5.1

10.9

4.7

-0.1

-1.2

5.6

-5.7

-26.5

6.5

2.7

24.7

-0.2

11.3

19.5

8.9

6.6

-0.8

20.4

-

15.2

-3.6

4.1

3.6

4.5

-6.4

8.5

11.9

62.4

-37.9

-42.2

-71.7

31.4

-10.3

82.1

-19.6

23.4

205.5

-18.2

21.8

35.5

22.0

7.8

22.7

3.9

8.6

-2.2

6.1

-16.6

40.4

51.3

40.0

26.3

8.0

10.5

3.5

26.9

3.3

Manufacturing operation ratio

-3.5

8.8

10.8

1.8

5.3

2.6

-0.2

-1.4

1.1

-0.4

Facility investment adjustment
pressure2

-3.7

9.5

12.1

3.4

4.6

4.1

1.5

0.5

2.6

1.4

Facility investment
q-o-q
- Machinery
- Transportation equipment
Domestic machinery orders
q-o-q

Machinery imports

1. Preliminary
2. Production growth rate minus production capacity growth rate in the manufacturing sector (%p)
Sources: Statistics Korea, the Korea International Trade Association (machinery imports data)

2011

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

12

August 2011

Mar

Apr

May

Jun

Jul

Aug

104

102

103

102

103

103

3-1

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

3-2

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

3-3

Machinery imports
Source: Korea International Trade Association (KITA)

Economic Bulletin

13

4. Construction investment
Construction investment (advanced estimates of GDP) in the second quarter of 2011 fell 0.4
percent quarter-on-quarter and 8.6 percent year-on-year.
(Percentage change from same period in previous year)
20101

2009

20111

Annual

Q4

Annual

Q1

Q2

Q3

Q4

Q1

Q2

3.4

4.0

-1.4

4.3

-2.3

-3.1

-2.9

-11.9

-8.6

-

0.7

-

2.0

-4.2

-0.8

-1.0

-6.7

-0.4

- Building construction

-2.3

2.4

-2.9

4.5

-5.1

-6.3

-2.8

-11.3

-

- Civil engineering works

11.6

5.6

0.5

4.0

1.0

1.7

-2.9

-12.7

-

Construction investment2
q-o-q

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

The value of construction completion (constant) in June increased 14.3 percent month-onmonth thanks to a rise in both building construction and civil engineering works, but fell 1.5
percent year-on-year due to a drop in building construction.
(Percentage change from same period in previous year)
2009

20111

2010

Annual

Annual

Q2

Q3

Q4

Q11

Q21

Apr1

May1

Jun1

1.6

-3.3

-4.3

-6.8

-4.3

-12.6

-6.6

-10.1

-9.2

-1.5

-

-

-3.1

-4.3

-1.6

-4.6

3.6

-9.1

3.8

14.3

- Building construction

-6.4

-7.1

-7.7

-12.3

-8.5

-15.2

-8.1

-10.0

-12.0

-2.9

- Civil engineering works

16.1

2.2

0.6

1.9

1.2

-9.2

-4.6

-10.2

-5.4

0.4

5.0

-18.7

-6.7

-3.6

-40.2

-12.8

-3.3

-2.7

-22.5

13.3

-

-

0.2

-1.4

-22.9

12.8

9.8

-9.9

-5.4

37.0

-14.2

-9.9

55.3

-1.3

-46.4

-9.7

-4.0

2.4

-20.5

8.3

44.3

-29.5

-49.7

-7.0

-29.9

-17.0

-1.5

-12.8

-28.4

22.1

-12.9

19.3

47.4

-14.3

18.1

21.5

3.8

0.7

3.5

7.8

Value of construction completion(constant)
q-o-q

Construction orders (current value)
q-o-q
- Building construction
- Civil engineering works
Building permit area

1. Preliminary
Source: Statistics Korea, the Ministry of Land, Transport and Maritime Affairs

Construction investment slightly improved in June, with construction orders and other
leading indicators turning positive. Still, it is uncertain whether this trend will continue since
investment sentiment of construction companies has yet to recover and July and August are
traditional off-season particularly due to heavy rain.
2011

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

14

August 2011

Mar

Apr

May

Jun

Jul

80.5

59.1

74.6

80.4

76.8

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 July increased 27.3 percent (preliminary) year-on-year to US$51.45 billion.
Exports on a monthly basis surpassed US$50 billion for the first time, with an average daily
exports at a record high of US$2.19 billion.
By business category, exports of petroleum products (up 88.6%), steel (up 67.9%), vessels
(up 42.6%), and automobiles (up 22.5%) surged while those of semiconductors (down
13.3%) decreased due to a drop in unit prices.
By regional category, exports to the ASEAN countries (up 56.8%), Japan (up 38.2%), and
China (up 20.7%) jumped, while those to the EU fell, where recovery has been limited with
mounting worries over a debt crisis.
(US$ billion)
2009

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

2010

2011

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Jun

Jul1

363.53

466.38

101.08

120.24

116.32

128.75

131.00

143.82

47.76

51.45

-13.9

28.3

35.8

33.1

22.7

23.8

29.6

19.6

13.6

27.3

1.30

1.70

1.51

1.76

1.72

1.79

1.99

2.10

2.08

2.19

323.08

425.21

98.16

105.63

105.70

115.73

123.64

134.44

44.94

44.22

-25.8

31.6

37.4

42.8

24.6

24.6

25.9

27.3

27.4

24.8

11.6

1.46

0.47

1.54

1.57

1.61

1.87

1.96

1.95

1.88

1. Preliminary
Source: Korea Customs Service

Imports in July increased 24.8 percent (preliminary) year-on-year to US$44.22 billion.
Year-on-year imports soared, while on a month-on-month basis, imports and daily imports
slightly fell mainly due to decreasing terminal prices of oil.
(thousand)
2011

Terminal prices of oil (US$ per barrel)

Mar

Apr

May

Jun

Jul1

105.0

114.2

116.5

114.0

111.8

1. Preliminary
Source: Korea Customs Service

The current account balance in July posted a record high surplus of US$7.22 billion.
(US$ billion)
2009

Trade Balance
1. Preliminary
Source: Korea Customs Service

16

August 2011

2010

2011

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Jun

Jul1

40.45

41.17

2.93

14.61

10.62

13.02

7.37

9.37

2.82

7.22

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 June rose 0.7 percent month-on-month and 6.4
percent year-on-year, backed by brisk exports and with difficulties related to supply in
automobile and chemical industries eased.
By business category, automobiles (up 10.1%) and chemical products (up 7.4%) increased
month-on-month, while semiconductors and parts (down 3.7%) and primary metals (down
2.2%) went down.
The manufacturing inventory-shipment ratio increased month-on-month in two months, as
the increase in inventory (up 2.2%) outpaced that in shipments (up 1.1%).
By business category, the shipments of automobiles (up 8.7%) and machinery (up 2.8%)
increased month-on-month, while those of semiconductors and parts (down 2.6%) and
primary metals (down 1.3%) declined. The inventories of refined petroleum (up 15.7%) and
automobiles (up 5.6%) climbed month-on-month, while those of groceries (down 1.6%) and
machinery (down 0.9%) fell.
The average operation ratio of the manufacturing sector gained 1.1 percentage points to 82.5
percent, 4.2 percentage points higher than the average of 78.3 percent between 2000 and 2010.
(Percentage change from same period in previous year)
2010

Mining and
manufacturing
activity2

Apr

May1

Jun1

Q2

Jun

Q1

Q2

-

4.2

1.2

6.1

-0.1

-1.7

1.6

0.7

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

2011
1

(y-o-y)

16.2

18.8

16.5

10.6

7.1

6.9

8.1

6.4

- Manufacturing

16.7

19.3

16.9

10.9

7.3

7.1

8.3

6.4

∙ICT 3

25.2

26.7

22.3

14.3

10.5

12.4

12.4

7.0

∙Automobiles

23.1

32.1

25.0

16.1

12.1

8.3

10.7

17.0

Shipment

14.4

15.9

13.9

11.9

7.0

7.3

8.1

5.6

- Domestic demand

11.5

13.3

10.2

7.2

3.5

2.2

5.3

3.0

- Exports

18.2

19.5

19.4

18.4

11.7

14.5

11.7

9.0

17.4

17.5

17.5

10.3

9.9

8.7

8.1

9.9

81.2

82.3

83.1

83.1

81.4

80.4

81.4

82.5

7.2

7.2

7.5

6.8

5.8

6.6

5.7

5.0

Inventory

4

Manufacturing Average operation ratio (%)
activity
Production capacity
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 a recovery track with favorable
export situations, unless external situations significantly aggravate.
Exports (y-o-y, %)
16.5 (Feb 2011)

28.8 (Mar)

23.6 (Apr)

22.0 (May)

13.6 (Jun)

27.3 (Jul)

However, with a possibility that the recovery of major economies might slow down as is
shown in the OECD leading indicators, it is necessary to keep a close watch on how the
global economic situation will develop.
OECD leading indicators (base=100)
102.8 (Jan 2011)

18

August 2011

102.9 (Feb)

102.9 (Mar)

102.8 (Apr)

102.5 (May)

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, real estate & renting, service activity in June
increased 0.9 percent from the previous month, helped by wholesale & retail sales and
educational services. On a year-on-year basis, service activity rose 3.6 percent.
Service activities in wholesale & retail sales (up 1.6%) expanded month-on-month, helped
by increased car sales. Information & communication services (up 3.9%) and educational
services (up 2.3%) also increased.
With continuing sluggish performance in real estate & renting (down 4.4%), contracting for
five consecutive months, service activities in restaurants & hotels (down 1.3%) slowed down
due to limited outdoor activities affected by the rainy season and torrential rains.
(Percentage change from same period in previous year)
Weight
Service activity index

2009

2010

Annual Annual

2011

Q1

Q2

Q3

Q4

Q1

Q2

May1

Jun1

100.0

1.8

3.9

6.2

4.2

2.3

3.2

2.7

3.4

3.4

3.6

- Wholesale & retail sales

21.8

-0.4

5.7

7.4

5.6

5.0

4.7

4.0

4.8

5.7

4.7

- Transportation services

9.0

-6.6

12.0

14.1

14.3

10.1

10.0

7.2

3.2

3.1

2.8

- Hotels & restaurants

7.7

-1.4

1.2

1.2

0.7

1.3

1.7

-0.6

1.8

3.0

1.5

- Information & communication services

8.4

0.9

1.9

1.0

0.4

2.2

3.6

3.9

3.0

1.6

5.6

15.3

7.8

4.6

6.7

2.5

1.4

8.2

7.2

8.9

9.0

8.6

- Real estate & renting

6.3

5.3

-8.6

11.5

-2.4

-15.9

-24.2

-17.7

-11.2

-12.7

-4.0

- Professional, scientific & technical services

4.8

1.2

-0.5

0.8

2.1

-3.9

-1.3

-3.6

-1.6

-1.2

-4.9

- Business services

2.9

-3.0

7.5

5.3

8.1

7.6

8.6

5.7

5.2

4.6

4.5

10.8

2.1

2.0

3.2

1.4

0.5

3.1

1.1

0.2

-0.8

0.7

- Healthcare & social welfare services

6.0

10.4

8.8

11.7

11.0

8.6

4.6

6.2

5.0

5.6

4.8

- Entertainment, cultural & sports services

2.9

-0.5

-0.4

-3.9

-0.1

-0.4

2.7

2.4

1.1

-0.7

1.3

- Membership organizations

3.8

-2.1

4.3

1.6

6.0

5.0

4.5

2.9

2.1

2.4

1.8

- Sewerage & waste management

0.4

3.7

5.1

6.7

6.0

1.7

6.4

0.0

-3.1

3.3

-9.1

- Financial & insurance services

- Educational services

1. Preliminary
Source: Statistics Korea

Service activity is expected to maintain an upward trend in July helped by continuously
improving consumer spending. Nevertheless, the upward pace may decelerate in wholesale
& retail sales and restaurants & hotels due to limited outdoor activities affected by bad
weather conditions such as the rainy season and heavy rainfall.

20

August 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)

June 2011 service industry by business

Source: Statistics Korea (service industry activity trend)

Economic Bulletin

21

8. Employment
The number of workers on payroll in June increased by 472,000 from a year earlier, while the
employment rate (seasonally adjusted) rose by 0.5 percentage points year-on-year to 60.3
percent. On a month-on-month basis, the number of workers on payroll rose by 48,000
(seasonally adjusted), continuing to increase for the fifth consecutive month.
By industry, employment in manufacturing (up 118,000) and services (up 436,000) continued
to grow.
Hiring in manufacturing continued to climb on the back of strong exports, maintaining a rapid
increase pace of more than 100,000 for the 16th consecutive month for the first time since
November 2000.
The service sector continued to expand employment with increasing health & welfare (up
186,000), professional, scientific & technical services (up 74,000) and business assistance (up
82,000). In addition, wholesale & retail sales (up 96,000) and transportation services (up
79,000) contributed to the increase.
By status of workers, the number of regular workers (up 627,000) continued to increase.
Meanwhile, non-wage workers (down 17,000) including temporary workers (down 159,000),
daily workers (down 99,000) and self-employed workers (down 53,000) continued to decline.

2009
Annual
Number of employed (million)

Q3

2010
Q4

Annual

Jun

Q1

2011

Q2

Q3

Q4

May Jun

Q1

Q2

23.51 23.75 23.63 23.83 24.28 23.04 24.17 24.12 23.99 24.66 24.75 23.46 24.57

Employment rate (%)

58.6

59.1

58.7

58.7

59.8

57.0

59.6

59.3

58.9

60.1

60.3

57.4

59.9

(seasonally adjusted)

58.6

58.7

58.5

58.7

58.8

58.3

58.9

58.9

58.6

59.2

59.3

58.8

59.2

Employment growth (y-o-y, thousand)

-72

-1

-6

323

314

132

433

369

358

355

472

423

402

(Excluding agriculture, forestry & fishery)

-34

24

110

405

353

296

518

414

393

382

501

451

39

-126 -143

- Manufacturing

-49

191

181

61

172

262

269

101

118

228

112

- Construction

-91 -103 -107

33

67

-61

44

92

57

-27

-42

-3

-41

- Services

179

261

261

200

126

313

325

83

80

260

436

224

331

- Agriculture, forestry & fishery

-38

-25 -116

-82

-39 -164

-85

-45

-35

27

-29

-28

3

- Wage workers

247

356

385

517

457

371

623

541

532

372

527

519

421

∙Regular workers

383

386

515

697

750

651

766

671

699

630

627

605

621

22

125

105

-34 -116

-37

42

-26 -114 -159

-33

-88 -137

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

-158 -155 -235 -146 -177 -243 -185 -104

-53

-99

-66

2

-63

-319 -357 -391 -194 -143 -239 -189 -172 -174

-17

-55

-96

-19

-85 -106

-91 -130 -146

-49

-53 -115

-39

31

34

89

181

109

117

188

207

212

171

265

266

221

-103

-34

-94

142

205

15

245

163

146

184

207

157

181

- 15 to 29

-127 -123

-77

-43

-86

-12

-58

-44

-57

-98

-52

-49

-74

- 30 to 39

-173 -169 -149

-4

-27

-42

-13

21

17

-15

-7

-34

-13

- Male
- Female

-259 -276 -279 -118

- 40 to 49

-24

-30

-46

29

24

-21

48

40

50

64

73

77

59

- 50 to 59

198

211

230

294

332

251

342

295

287

274

306

286

294

54

109

37

47

70

-44

114

57

60

129

152

143

137

- 60 or more
Source: Statistics Korea

22

August 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 June decreased by 38,000 year-on-year to 839,000
and the year-on-year unemployment rate (seasonally adjusted) dropped 0.2 percentage
points to 3.3 percent.
On a month-on-month basis, the unemployment rate (seasonally adjusted) declined 0.3
percentage points to 3.3 percent and the number of unemployed persons (seasonally
adjusted) decreased by 69,000 to 840,000, turning back to the normal level.
The youth unemployment rate fell 0.7 percentage points year-on-year to 7.6 percent. In
seasonally adjusted terms, the youth unemployment rate went down 0.3 percentage points
to 7.4 percent, falling for the third consecutive month.

2009

2010

Annual

Q3

Q4

Annual

Jun

Number of unemployed (thousand)

889

886

817

920

Unemployment growth (y-o-y, thousand)

119

134

60

31

- Male

80

95

25

- Female

40

39

36

Q1

2011

Q2

Q3

Q4

May

Jun

Q1

878 1,130

868

873

808

819

-83

222

-75

-13

-10

26

-38

-101

-3

-7

-51

83

-47

-48

-16

-10

-59

-70

-32

38

-32

139

-29

35

6

36

21

-32

29

839 1,028

Q2

865

Unemployment rate (%)

3.6

3.6

3.3

3.7

3.5

4.7

3.5

3.5

3.3

3.2

3.3

4.2

3.4

(Seasonally adjusted)

3.6

3.7

3.5

3.7

3.5

4.3

3.5

3.6

3.4

3.3

3.3

3.9

3.4

- 15 to 29

8.1

8.1

7.6

8.0

8.3

9.5

7.7

7.6

7.1

7.3

7.6

8.8

7.9

- 30 to 39

3.6

3.5

3.3

3.5

3.4

3.9

3.6

3.5

3.2

3.2

3.4

4.0

3.5

- 40 to 49

2.4

2.4

2.3

2.5

2.2

2.9

2.3

2.5

2.2

2.0

2.1

2.5

2.1

- 50 to 59

2.5

2.5

2.2

2.5

2.0

3.2

2.1

2.3

2.3

2.1

1.9

2.7

2.0

- 60 or more

1.6

1.6

1.5

2.8

2.0

5.8

2.1

2.0

1.9

2.2

2.2

4.5

2.3

Source: Statistics Korea

The economically inactive population in June was up 26,000 from a year earlier to
15,440,000. Meanwhile, the labor force participation rate (seasonally adjusted) rose 0.4
percentage points year-on-year to 62.4 percent.
The number of workers quitting jobs due to rest, time-off and leisure (up 125,000) increased,
while those who quit jobs due to old age (down 34,000), housework (down 19,000),
childcare (down 15,000) and education (down 14,000) decreased.

2009
Annual

Q3

2011

2010
Q4

Annual

Jun

Q1

Q2

Q3

Q4

May

Jun

Q1

Q2

Economically inactive population (million) 15.70 15.53 15.83 15.84 15.42 16.25 15.49 15.66 15.96 15.52 15.44 16.39 15.56
Labor force participation rate (%)

60.6

61.3

60.7

61.0

62.0

59.8

61.8

61.5

60.8

62.1

62.4

59.9

62.0

(seasonally adjusted)

60.6

60.9

60.6

61.0

61.0

61.0

61.0

61.1

60.8

61.3

61.3

61.1

61.3

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

447

374

456

143

264

166

146

128

133

89

26

138

66

40

19

112 -118 -126 -149 -107

-11

-15

-44

-16

- Housework

148

100

235

201

246

237

175

203

189

34

-19

130

27

- Education

31

11

-36

12

29

-74

23

46

55

-65

-14

-16

-39

- Old age

88

105

92

80

53

193

59

43

25

-60

-34 -103

-58

123

94

123

-56

45 -187

-27

15

-27

188

125

163

- Childcare

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

24

August 2011

15 -125

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
The Korean stock price index rose 1.5 percent month-on-month in June, shifting to a rise for
the first time in three months. Although the Korean stock market mixed due to concerns over
financial stability of the US and Europe, the shares rose after the announcement of the
second rescue package for Greece. The index then fell to wrap up the month to a minimal
increase, weighed down by uncertainties over the US debt negotiations.
Foreign investors turned to a net-buying position of 1.2 trillion won in July from the previous
month’s net-selling of 0.7 trillion won.
(End-period, point, trillion won)
KOSPI

KOSDAQ

June 2011

July 2011

Change1

June 2011

July 2011

Change1

Stock price index

2,100.7

2,133.2

+32.5 (+1.5%)

479.6

536.1

+56.5 (+11.8%)

Market capitalization

1,183.5

1,203.6

+20.1 (+1.7%)

98.2

109.8

+11.6 (+11.8%)

Average daily trade value

6.56

6.60

+0.03 (+0.5%)

1.22

2.10

+0.89 (+73.1%)

Foreign stock ownership

32.2

32.1

-0.1 (-0.3%)

10.9

10.4

-0.5 (-4.3%)

1. Change from the end of the previous month

9.2 Exchange rate
The won/dollar exchange rate in July decreased 13.2 won to wrap up the month at 1,054.5
won from 1,067.7 won at the end of June.
The won/dollar exchange rate fell 13.2 won affected by eased concerns over the eurozone’s
debt problem after the announcement of the Greek rescue plan and the weak dollar caused
by uncertainties over the agreement to raise the US debt ceiling.
Due to the flight to safety assets caused by the debt concerns in the US and Europe, the yen
rapidly strengthened and the won/100 yen exchange rate rose 32.1 won from the end of the
previous month.
(End-period)
2007

2008

2009

2010

2011

Dec

Dec

Dec

Dec

Jun

Jul

Change1

Won/Dollar

936.1

1,259.5

1,164.5

1,134.8

1,067.7

1,054.5

7.6

Won/100 Yen

828.6

1,396.8

1,264.5

1,393.6

1,328.2

1,360.3

2.4

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

August 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
The 5-year Treasury bonds yield added 1 basis point in July to 4.02 percent from the previous
month’s 4.01 percent. Despite debt concerns in the US and Europe, the Treasury bond yields
- most notably those of short-term Treasury bonds - rose, with foreign investors continuing
to invest in the Treasury bonds and as expectations over interest rate hike heightened.
(End-period)

Call rate (1 day)

2006

2007

2008

2009

2010

2011

Dec

Dec

Dec

Dec

Dec

May

Jun

Jul

Change1

4.60

5.02

3.02

2.01

2.51

3.03

3.28

3.27

-1

CD (91 days)

4.86

5.82

3.93

2.88

2.80

3.46

3.57

3.59

+2

Treasury bonds (3 yrs)

4.92

5.74

3.41

4.44

3.38

3.59

3.76

3.85

+9

Corporate bonds (3 yrs)

5.29

6.77

7.72

5.56

4.27

4.33

4.49

4.54

+5

Treasury bonds (5 yrs)

5.00

5.78

3.77

4.98

4.08

3.87

4.01

4.02

+1

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

9.4 Money supply & money market
The M2 (monthly average) in May expanded 3.7 percent from a year earlier excluding cash
management accounts (CMAs), which were included in M2 since July 2009.
Despite credit expansions in the private sector due to rising bank lending, the month-onmonth M2 growth slowed down from the previous month affected by contracted foreign
credits due to foreign fund outflows in equity investment.
(Percentage change from same period in previous year, average)

M1

2008

2009

Annual

Annual

Annual

Q1

2010
Q2

Q3

Q4

Feb

Mar

2011
Apr

May

May1

-1.8

16.3

11.8

14.5

10.7

10.8

11.2

11.5

11.6

9.6

7.4

424.0

M2

14.3

10.3

8.7

9.4

9.5

8.6

7.4

5.0

4.3

3.9

3.7

1,690.5

Lf 3

11.9

7.9

8.2

8.5

9.1

8.2

7.1

5.2

4.7

4.5

4.44

2,175.64

2

1. Balance at end May 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 June, bank deposits increased while asset management company (AMC) deposits turned
to a decrease.
While growth in time deposits decelerated due to increased fiscal spending by regional
governments, instant access account deposits significantly increased, owing to short-term
excess corporate cash inflows.
Among asset management company (AMC) deposits, money market funds (MMF) plunged
due to withdrawals of funds by banks, affected by banks’ BIS rate management at the halfyear point. Bond-type funds also decreased due to worries over interest rate hike.
(Monthly change, end-period, trillion won)
2009

2010

Annual

May

Bank deposits

54.8

AMC deposits

-27.6

1. Balance at end June

28

August 2011

2011
Jun

Jun1

Annual

May

Apr

May

10.0

36.9

18.6

12.5

-0.4

6.7

1,068.2

-2.3

-16.7

4.2

-3.2

4.1

-1.9

1,301.0

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 June expanded from the previous month’s
US$2.18 billion to US$2.99 billion.
The goods account surplus widened to US$3.66 billion from the previous month’s US$1.63
billion, helped by solid exports such as cars, petroleum products and steel products.
The service account shifted to a deficit of US$630 million from the previous month’s surplus of
US$20 million as the travel account deficit widened and business service payments increased.
The primary income account surplus narrowed to US$240 million from the previous month’s
US$520 million. Meanwhile, the secondary income account shifted to a deficit of US$280 million
from the surplus of US$20 million a month earlier, affected by increased outward remittance.
(US$ billion)
2009

2010

2011

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

May

Jun1

Current account

32.79

28.21

0.26

8.86

9.93

9.16

2.72

6.45

2.18

2.99

- Goods balance

37.87

41.90

4.79

12.24

12.54

12.34

5.95

8.62

1.63

3.66

- Service balance

-6.64

-11.23

-4.20

-1.87

-2.96

-2.20

-2.54

-0.80

0.02

-0.63

- Income balance

2.28

0.77

0.55

-1.01

1.30

-0.07

0.39

-0.82

0.52

0.24

- Current transfers

-0.71

-3.23

-0.87

-0.50

-0.95

-0.91

-1.08

-0.55

0.02

-0.28

Source: The Bank of Korea
1. Preliminary

The capital and financial account (preliminary) in June accelerated the outflow to US$4.64
billion from the previous month’s US$3.96 billion.
Capital & financial account balance (US$ billion)
-1.28 (Jan 2011)

-2.00 (Feb)

0.52 (Mar)

0.39 (Apr)

-3.96 (May)

-4.64 (Jun)

The direct investment account accelerated the outflow to US$2.14 billion from the previous
month’s outflow of US$1.25 billion due to increasing overseas direct investment by locals.
The portfolio investment account registered a net outflow of US$1.4 billion from the previous
month’s outflow of US$1.14 billion due to flight to safety assets affected by worries over
Greek debt restructuring.
The financial derivatives account turned to an outflow of US$50 million from the previous
month’s inflow of US$170 million. Meanwhile, the other investment account expanded the
outflow to US$1.86 billion from the previous month’s outflow of US$820 million due to local
banks’ increased overseas borrowing.
Despite the widening service account deficit due to overseas travel during summer vacation,
the current account surplus in July is expected to increase, helped by the expanding goods
account surplus.

30

August 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 July rose 4.7 percent year-on-year and 0.7 percent month-on-month.
Prices of agricultural products, especially vegetables, surged. Processed food and oil
product prices also continued their upward trend.
Core consumer prices, which exclude oil and agricultural products, rose 3.8 percent year-onyear and 0.3 percent month-on-month. Consumer prices for basic necessities, a barometer
of perceived consumer prices, were up 4.8 percent compared with the same month of the
previous year.

Consumer price inflation
2010
Jul

Aug

Sep

2011

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Month-on-Month (%)

0.3

0.3

1.1

0.2

-0.6

0.6

0.9

0.8

0.5

0.0

0.0

0.2

0.7

Year-on-Year (%)

2.6

2.6

3.6

4.1

3.3

3.5

4.1

4.5

4.7

4.2

4.1

4.4

4.7

Core consumer prices (y-o-y)

1.7

1.8

1.9

1.9

1.8

2.0

2.6

3.1

3.3

3.2

3.5

3.7

3.8

(m-o-m)

0.2

0.2

0.3

0.0

0.1

0.3

0.6

0.7

0.3

0.2

0.5

0.3

0.3

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

2.7

2.6

4.1

4.8

3.6

3.9

4.7

5.2

4.9

4.1

3.8

4.3

4.8

Source: Statistics Korea

Prices of agricultural products, such as fruits and vegetables, showed strong growth, while
those of grain and livestock mostly held steady, either rising or falling slightly.
Prices of agricultural, livestock & fishery products in July (m-o-m, %)
Lettuce (94.4), spinach (71.8), Chinese cabbage (63.9), chicken (8.9), mackerel (3.0), rice (0.1), bean (0.1), pork
(-0.5), beef (-0.7), egg (-3.9)

Prices of industrial products continued to rise (0.6%, m-o-m), due to the increase in the
prices of oil products and processed food.
Despite the price freeze in public utility charges imposed by the central government, overall
public service charges rose (0.4%, m-o-m), as a result of higher municipal public utility
charges such as metro bus fees (up 3.0%, m-o-m) and subway fees (up 0.3%, m-o-m). Price
increases in personal services, which include the cost of dining out, slowed (up 0.2%, m-o-m).

Consumer price inflation in major sectors

Month-on-Month (%)

Total

Agricultural,
livestock & fishery
products

0.7

4.0

0.6

Industrial
products

Oil
products

Housing
rents

Public
utility

Personal
services

1.5

0.3

0.4

0.2

Contribution (%p)

0.66

0.37

0.18

0.09

0.02

0.05

0.06

Year-on-Year (%)

4.7

11.2

6.3

13.6

4.2

1.5

3.3

Contribution (%p)

4.75

0.99

1.99

0.81

0.38

0.24

1.16

Source: Statistics Korea

32

August 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 July.
International oil prices were slightly higher compared with the previous month, due to
decreased US oil inventories and the weak US dollar.
US Energy Information Administration (EIA)’s inventory report (released on July 20)
350 million barrels (3.73 million barrels less than the previous week)

Yen/dollar exchange rate (end period)
81.52 (Dec 2010)

81.62 (Apr 2011)

80.91 (May)

80.72 (Jun)

77.79 (Jul)
(US$/barrel, period average)

2008

2009

Annual

Annual

2011

2010
Annual

Dec

Feb

Mar

Apr

May

Jun

Jul

Dubai crude

94.3

61.9

78.1

88.9

100.2

108.5

115.8

108.0

107.5

110.2

Brent crude

97.5

61.7

79.7

91.8

103.9

114.6

123.3

114.3

114.0

116.8

WTI crude

99.9

61.9

79.5

89.2

89.7

103.0

110.0

101.3

96.3

97.3

Source: Korea National Oil Corporation

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

Domestic oil product prices increased due to higher international oil prices and the
termination of the gasoline price discount by local refineries.
(Won/liter, period average)
2008

2009

Annual

Annual

Annual

Dec

Feb

Mar

Apr

2011
May

Jun

Jul

Gasoline prices

1,692

1,601

1,710

1,771

1,850

1,939

1,951

1,938

1,915

1,935

Diesel prices

1,614

1,397

1,503

1,570

1,652

1,756

1,793

1,773

1,736

1,754

2010

Source: Korea National Oil Corporation

Prices of international commodities including non-ferrous metals and grain increased, as a
result of the weaker US dollar and prospects of declining inventories.
Production losses due to the strikes in Chile’s copper mines, fewer inventories and dollar
weakness were among the factors that prompted non-ferrous metal prices to rise.
Prices of non-ferrous metals in July (m-o-m, %)
Tin (8.5), zinc (6.7), nickel (5.9), electrolytic copper (4.7), aluminum (2.7)

International grain prices rose due to lower than expected stocks and concerns over a bad
harvest caused by heat waves in the US.
United States Department of Agriculture (USDA)’s report (released on July 12)
US corn stocks were estimated to be 870 million bushels, down 130 million from the original market
expectation of 1 billion bushels.

Prices of grain in July (m-o-m, %)
Raw sugar (13.2), barley (9.5), corn (7.8), soybean (4.9)

Reuters index*

(Period average)

2008

2009

2010

Annual

Annual

Annual

Dec

Feb

Mar

Apr

May

Jun

Jul

2,536

2,079

2,553

3,119

3,323

3,221

3,246

3,128

3,143

3,145

* A weighted average index of 17 major commodities

34

August 2011

2011

Source: KOREA PDS

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 July, with prices rising
0.6 percent month-on-month.
Apartment sales prices in the Seoul metropolitan area continued to show a horizontal price
movement, falling 0.1 percent from the previous month.
Apartment sales prices in areas excluding the Seoul metropolitan area showed a persistent
upward trend, led by Daejeon (up 2.3%, m-o-m), North Chungcheong Province (up 2.2%, mo-m) and Gangwon Province (up 1.8%, m-o-m). Apartment prices in 5 metropolitan cities and
other cities climbed 1.4 percent and 1.2 percent each, surpassing the national average.

Nationwide apartment sales prices
2007 2008

(Percentage change from previous period)
2009

2010

Annual Annual Annual

Annual

Jan

Feb

Mar

Apr

2011
May

Jun

Jul

Jul 41 Jul 111 Jul 181 Jul 251

0.6

0.13

Nationwide

2.1

2.3

1.6

2.5

0.6

1.1

1.3

1.2

1.0

0.7

Seoul

3.6

3.2

2.6

-2.2

0.2

0.3

0.1

0.0

-0.1

-0.1

-0.2 -0.03 -0.04 -0.05 -0.03

Gangnam2

0.5

-1.9

3.9

-1.8

0.2

0.4

0.2

0.0

-0.1

-0.2

-0.2 -0.04 -0.06 -0.05 -0.03

Gangbuk3

8.3

9.4

0.9

-2.7

0.1

0.2

0.1

0.0

0.0

-0.1

-0.1 -0.02 -0.02 -0.05 -0.03

Seoul metropolitan area

4.0

2.9

0.7

-2.9

0.1

0.3

0.3

0.1

0.0

-0.1

-0.1 -0.02 -0.03 -0.03 -0.01

5 metropolitan cities

-0.6

1.0

2.8

8.7

1.2

2.0

2.3

2.4

2.2

1.6

1. Weekly trends

2. Upscale area of Southern Seoul

3. Northern Seoul

1.4

0.31

0.14

0.16

0.35 0.34

0.14

0.29

Source: Kookmin Bank

Nationwide apartment rental prices in July were up 1.0 percent, accelerating the upward pace
from the previous month’s 0.8 percent. Price increases picked up the pace in Seoul (up 1.1%, mo-m), the Seoul metropolitan area (up 0.9%, m-o-m) and Gyeonggi Province (up 1.0%, m-o-m).
Apartment rental price increases in major districts in Seoul (m-o-m, %)
Gangnam (2.3), Seocho (1.2), Songpa (1.0), Gangdong (2.4)

Nationwide apartment rental prices
2009

Annual Annual

Annual Annual

Nationwide

1.9

0.8

Seoul

2.2
0.5

Gangnam2
Gangbuk

(Percentage change from previous period)

2007 2008

2010

2011
Jan

Feb

Mar

Apr

May

Jun

Jul

Jul 41 Jul 111 Jul 181 Jul 251

4.5

8.8

1.1

2.0

2.3

1.6

1.1

0.8

1.0

0.27

0.29 0.29

0.29

-1.8

8.1

7.4

1.1

2.1

1.8

0.7

0.3

0.5

1.1

0.33

0.35 0.33

0.36

-3.6

10.4

8.8

1.3

1.9

1.4

0.6

0.3

0.6

1.2

0.31

0.32 0.34

0.43

4.6

0.5

5.4

5.6

1.0

2.4

2.3

0.8

0.4

0.2

1.0

0.35

0.39 0.32

0.28

Seoul metropolitan area

2.1

-0.4

5.6

7.2

1.0

2.1

2.4

1.2

0.5

0.5

0.9

0.28

0.28 0.28

0.31

5 metropolitan cities

1.1

1.6

3.9

12.0

1.3

2.1

2.2

2.2

1.9

1.3

1.0

0.23

0.26 0.31

0.27

3

1. Weekly trends

2. Upscale area of Southern Seoul

3. Northern Seoul

Source: Kookmin Bank

Apartment sales transactions in June decreased 2.5 percent from the previous month’s
48,077 to 46,885. The transactions were up 54.0 percent from 30,454 a year earlier.

Apartment sales transactions
2007

2008

(Monthly average, thousand)

2009

2010

Annual Annual Annual Annual Jun
Nationwide

38

39

44

Source: Korea Land & Housing Corporation

36

July 2011

40

30

Jul
32

Aug Sep
31

34

2011
Oct

Nov

Dec

Jan

Feb

Mar

41

54

63

45

52

59

Apr May
56

48

Jun
47

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 June rose for the eighth consecutive month (up 0.10%, m-o-m), but
were still 1.63 percent lower than the pre-crisis peak reached in October 2008. Land prices
were 0.10 percent lower compared with the previous year, but the pace of increase has
slightly accelerated nationwide.
Month-on-month land prices in Seoul (up 0.07%), the Seoul metropolitan area (up 0.10%),
Gyeonggi Province (up 0.14%) and Incheon (up 0.06%) continued to rise.
Land price increases in Seoul metropolitan area (m-o-m, %)
0.10 (Jan 2011)

0.10 (Feb)

0.12 (Mar)

0.11 (Apr)

0.10 (May)

0.10 (Jun)

Land prices in areas excluding the Seoul metropolitan area rose 0.09 percent month-onmonth in June, continuing the upward trend from October 2010.
Land price increases in areas excluding Seoul metropolitan area (m-o-m, %)
0.07 (Jan 2011)

0.07 (Feb)

0.08 (Mar)

0.07 (Apr)

0.09 (May)

Land prices by region

0.09 (Jun)

(Percentage change from previous period)

2007 2008

2009

Annual Annual Annual Q2

2010

Q3

Q4

Annual

Q1

Q2

2011
Q3

Q4

Jan

Feb

Mar

Apr

May Jun

Nationwide

3.88

-0.31 0.96

0.35 0.88

0.94 1.05

0.70 0.29 -0.05 0.11

0.09

0.09

0.11

0.10

0.10

0.10

Seoul

5.88

-1.00 1.40

0.68 1.30

0.81 0.53

0.72 0.02 -0.25 0.39

0.12

0.12

0.15

0.12

0.09

0.07

Gyeonggi

4.22

-0.26 1.22

0.37 1.13

1.36 1.49

0.96 0.53 -0.08 0.07

0.08

0.08

0.10

0.11

0.12

0.14

Incheon

4.86

1.37 1.99

0.53 1.16

1.70 1.43

1.08 0.43 -0.10 0.02

0.06

0.06

0.06

0.06

0.06

0.06

Source: Korea Land & Housing Corporation

Nationwide land transactions in June recorded 207,000 land lots, down 1.9 percent from the
previous month and up 13.2 percent from 183,000 a year earlier. Land transactions were 0.8
percent lower than the most recent five-year June average of 209,000 land lots.
Month-on-month land transactions continued to decrease in areas such as Incheon (down
19.8%), Ulsan (down 17.9%), Gyeonggi Province (down 5.3%), and South Chungcheong
(down 8.6%).

Land sales transactions
2007

Nationwide

(Land lot, thousand)

2008

2009

2010

2011

Annual 1 Annual1 Annual1 Oct

Nov

Dec Annual 1 Jun

Oct

Nov Dec

Jan

Feb

Mar

Apr

May

Jun

208

208

203

212

207

241

187

183

181

208

257

191

176

244

226

212

207

Seoul

33

26

22

25

19

21

16

13

14

18

24

18

17

23

19

18

18

Gyeonggi

49

45

46

52

48

58

41

42

40

45

58

46

38

52

46

43

40

Incheon

13

13

10

14

11

12

8

8

8

9

11

8

9

13

11

13

10

Source: Korea Land & Housing Corporation
1. Monthly average

38

August 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
Industrial output in June increased 1.9 percent month-on-month and 4.2 percent year-onyear, with all sectors, including mining & manufacturing, service, construction and public
administration, showing improvements.
Contribution to month-on-month industrial output increase (%p)
Construction (0.75), service (0.5), public administration (0.44), mining & manufacturing (0.26)

The cyclical indicator of the coincident composite index rose for the second consecutive
month (up 0.3p) in June.
All eight components of the coincident composite index, including the volume of imports and
value of construction completion, rose from the previous month.
Components of coincident composite index in June (m-o-m)
Volume of imports (2.9%), value of construction completion (2.8%), wholesale & retail sales index (0.6%),
service activity index (0.4%), mining & manufacturing production index (0.2%), number of non-farm payroll
employment (0.2%), domestic shipment index (0.1%), manufacturing operation ratio index (0.0%)

The year-on-year leading composite index in June improved for the second consecutive
month (up 0.4%p, m-o-m), due to improvements in machinery and construction orders.
Among components of the leading composite index, six factors, including the value of
construction orders received and the value of machinery orders received, rose while four other
factors, such as the indicator of inventory cycle and ratio of job opening to job seekers, dropped.
Components of the leading composite index in June (m-o-m)
Value of construction orders received (6.0%), value of machinery orders received (4.6%), consumer
expectations index (2.2p), value of capital goods imports (1.3%), composite stock price index (0.2%), liquidity
in the financial institutions (0.2%), spreads between long & short term interest rates (-0.1%p), net terms of
trade index (-0.3%), ratio of job openings to job seekers (-1.3%p), indicator of inventory cycle (-1.7%p)

2010

2011

Nov

Dec

Industrial output (m-o-m, %)

0.9

2.8

3.2

(y-o-y, %)

5.4

5.0

8.4

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

Jan

Mar1

Apr1

May1

Jun1

-4.7

2.8

-1.3

1.8

1.9

0.1

3.4

3.2

4.5

4.2

Feb

0.2

0.8

1.5

0.1

0.4

-0.3

0.8

0.8

Cyclical indicator of coincident composite index

99.5

99.8

100.8

100.6

100.6

99.9

100.3

100.6

(m-o-m, p)

-0.1

0.3

1.0

-0.2

0.0

-0.7

0.4

0.3

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

0.2

0.5

0.6

-0.2

-0.3

-0.3

0.4

0.5

12 month smoothed change
in leading composite index (%)

2.8

2.9

3.0

2.3

1.6

1.0

1.3

1.7

-0.5

0.1

0.1

-0.7

-0.7

-0.6

0.3

0.4

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

40

August 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
Outcomes of Government Plans to Further Develop the
Service Sector

Background
Service industries are one of the main drivers of Korea’s sustainable growth, as they are at
the heart of boosting domestic demand and creating jobs. The Korean government has
announced 13 packages of 695 plans between 2008 and 2010 to nurture the service sector.
The government measures also include financial support and tax incentives for R&D
investment in the service sector, and the forming of think-tanks to support the development
of the service sector.

Outcomes of the plans
Out of the 695 plans, 433 have been completed while 217 plans are being carried out and
the other 45 have been suspended: Of the 45 suspended plans, 20 are under discussion at
the National Assembly. The rest of 25 plans have been delayed due to changes in
environment, conflicts of interests between ministries, and schedule changes. Major
outcomes by category are as follows:

42

August 2011

1. Health and medical services
Regulations have been changed to allow sales of some medical supplies outside pharmacies.
By the end of November this year, 39,254 medical supplies will be categorized as products
that could be sold outside pharmacies and ones that have to be sold at pharmacies.
With the introduction of medical tourist visas in May 2009, the number of foreign patients
jumped from 27,480 in 2008 to 60,201 in 2009 and to 81,789 in 2010. On top of that, foreign
patients treated in hospitals in provinces increased while those treated in hospitals in the
Seoul metropolitan area declined between 2009 and 2010, due to local governments’ efforts
to develop medical tourism services.
2. Education
Five foreign educational institutions have opened their branches in Korea, and the quota for
local students has been increased up to 30 percent in 2011 from 10 percent in 2005. The five
foreign institutions are Chadwick Songdo International School, the State University of New
York at Stoney Brook in Songdo, Shipping and Transport College Korea (STC-Korea) in
Gwangyang, FAU Busan Campus, and Lee Academy in Daegu.
3. Tourism
Streamlined visa issuance processes for Chinese and East Asian tourists resulted in an
increase in tourists from those countries by 2.02 million from China and 310 thousand from
the East Asian countries. Affordable and quality accommodations have jumped as
government-designated exemplary accommodations increased from 164 in 2008 to 279 in
2010. Through the immigration program for real estate investors, Jeju island has attracted
112.5 billion won and 16 investor immigrants. Regulations on membership for vacation
accommodations have been eased to help boost domestic tourism. There has also been
deregulation to nurture marine sports and develop marine sports facilities such as ports
exclusive for cruise ships. Rules regulating sports stadiums and golf fields have been
relaxed, and provincial golf clubs with membership were given tax incentives between 2008
and 2009, contributing to an increase in such golf clubs from 311 in 2008 to 386 in 2010.
4. Broadcasting/communications/contents
To promote three dimensional (3D) broadcasting, the government financed broadcasting
companies with 2.12 billion won. Regulations on the mobile payment system have been
eased to help boost mobile transactions, and mobile virtual network operators (MVNOs*)
have been introduced in the mobile phone market to promote competition.
To nurture the contents industry, the government strengthened copyright protection,
lowered market entry barriers, and applied eased ratings on game programs available in the
open market.
* A mobile virtual network operator (MVNO) provides mobile phone services, but does not have its own
licensed frequency allocation of radio spectrum.

Economic Bulletin

43

5. Logistics
The government has supported third party logistics companies by providing consulting
services as well as tax incentives. 33 companies have been beneficiaries of those supports,
and received three years of consulting services from 2008 to 2010. A total of 205.3 billion
won worth logistics contracts have been made with third party logistics companies, resulting
in the saving of 23 billion won in logistics costs.
License certificates have replaced temporary license plates as for cars for export, saving time
and efforts to put the plates on the cars and resulting in the saving of 1.2 billion won a year.
6. Social security services/ business support services
Social security services have been expanded from 4 services in 2007 to 10 services in 2010
including daycare and pre-pregnancy check-ups, with electronic vouchers available to all
registered service providers.
Government orders for software have been required to be made separately so that smalland-medium sized enterprises (SMEs) have more chances. Intellectual rights for developed
software have been jointly owned by the companies and the government. Meanwhile,
between 2004 and 2010, 102 universities have been funded with 3.6 billion won of
government support for educating design majors based on market needs.
7. Professional service market
Deregulation on professional services such as patent and law corporations and pharmacies
has been pursued. Establishing limited corporations by patent and law corporations has
been sought, and related bills are to be brought to the National Assembly in November,
2011, with bills concerning the establishment of pharmacies corporations pending in the
National Assembly. Less tight requirements of professional carriers for establishing those
firms have also been deliberated, and three lawyers with more than 5 years of experience
can establish law corporations instead of five lawyers with more than 10 years of experience,
if the related bill is passed.
8. Support for service industries
Service industries have been given expanded supports equivalent to those given to SMEs
including tax incentives, government guarantees and other financial supports. Soap operas,
performances, and games as well as films were made eligible for government’s guarantees
given to cultural export products in 2009.

Future tasks
The government will continue to make efforts for for-profit hospital related bills to be passed
in the National Assembly. It will also enact new regulations and revise regulations if they are

44

August 2011

needed to develop medical services: At present law enactment concerning healthcare services
and medical bonds, and law revision to facilitate remote treatment are under active discussion.
To attract more foreign educational institutions, the Special Free Economic Zone Act needs
to be revised so that the institutions’ surplus can be remitted outside the country. The
government will renew its efforts for the revised bills to be passed in the August National
Assembly, and a new package containing plans to further attract foreign educational
institutions will be announced in the third quarter of 2011.
For fair and competitive broadcasting industries, changes in acts regulating broadcasting
advertising system will continue to be sought, along with law revision to provide a fair
ground to outsourced producing companies.
Guidelines for government R&D support in the service sector will be released in March 2012,
and government certification for qualified service businesses will be expanded with
improved practicality.

Economic Bulletin

45

Economic
News Briefing

Korea grows 0.8% in Q2 (Advanced)
Korea’s real gross domestic product (GDP) expanded by 0.8 percent in the first quarter of
2011 compared to the previous quarter. From a year earlier, the GDP grew 3.4 percent.
On the production side, manufacturing sector expanded by 1.5 percent, led by an increase in
general machinery and transport equipment. Service sector grew by 0.1 percent from the
previous quarter’s 1.2 percent. Meanwhile, agriculture, forestry & fishery increased by 8.2
percent, recovering from the abnormal cold wave and outbreak of foot-and-mouth disease.
On the expenditure side, exports rose by 1.8 percent, driven by vessels and telecommunication
devices. Private consumption grew by 0.1 percent due to increased expenditures on durable
and semi-durable goods. Facility investments increased by 4.0 percent while construction
investment decreased by 0.4 percent.
Real gross domestic income (GDI) fell by 0.1 percent as terms of trade worsened affected by
high oil prices.

46

August 2011

<GDP by production and expenditure*>

(Percentage change from previous period)
20101

2009

20111

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

0.1
(-4.2)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)

1.3
(4.2)

0.8
(3.4)

1.1

0.0

3.7

0.0

-3.1

-2.5

-2.5

0.2

-4.5

8.2
(0.9)

-3.4

8.4

9.7

-1.1

4.2

4.0

2.3

0.1

3.1

1.5
(7.3)

Construction

3.5

1.3

-1.4

0.5

1.4

-0.1

-1.2

-3.2

-6.1

0.3
(-9.7)

Services3

0.4

1.0

1.1

0.9

1.5

0.2

0.3

1.1

1.2

0.1
(2.7)

-0.3

3.7

1.4

0.9

0.5

0.7

1.4

0.3

0.4

1.0
(3.1)

2.6

0.8

0.1

-1.1

3.6

0.3

-0.1

-0.4

1.7

0.9
(2.2)

-10.2

6.7

9.1

7.8

2.8

7.9

5.6

-1.0

-1.1

4.0
(7.6)

3.9

2.4

-1.2

0.7

2.0

-4.2

-0.8

-1.0

-6.7

-0.4
(-8.6)

Goods exports4

-2.1

13.3

5.4

-1.7

3.0

7.4

2.5

3.0

4.6

1.5
(12.1)

Goods imports4

-6.1

8.1

7.8

-0.4

4.8

7.1

3.6

-0.7

3.1

3.1
(10.0)

0.8

4.8

1.9

1.2

1.6

1.2

0.5

0.3

-0.3

-0.1
(0.4)

GDP
Agriculture, forestry and fishery
Manufacturing

Private consumption
Government consumption
Facility investment
Construction investment

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

Korea holds a joint press conference for foreign media
The Ministry of Strategy and Finance held a news conference for foreign media in
coordination with senior officials from the Financial Services Commission, the Financial
Supervisory Service, and the Bank of Korea on August 11. The meeting was convened as part
of efforts to properly notify Korea’s economic situation and to promote the nation’s
resilience to external shock such as the financial woes in the US and Europe.
The gathering was attended by local correspondents of foreign press including Bloomberg
News, Dow Jones, Financial Times, NHK, etc. The ministry, the two financial regulators and
the central bank made it clear that they would take firm actions in response to the recent
volatility. The Ministry of Strategy and Finance will continue to rapidly and actively respond
to changing global economic conditions.

Economic Bulletin

47

Revision bill of the Financial Investment Services and Capital Markets Act
The Financial Investment Services and Capital Markets Act (FSCMA) was established in 2007
to promote autonomy and innovation in capital markets. Since the FSCMA took effect in
February 2009, however, initially expected effects such as the creation of globally
competitive investment banks (IBs) were not brought about due to the global financial crisis.
Against this backdrop, the Korean government drafted a revision bill of the FSCMA and made
public for 20 days from July 27 to August 16.
Key revisions to the FSCMA are as follows: First, to nurture leading investment banks,
securities companies that meet certain criteria will be qualified as investment banks or
comprehensive financial investment services providers; Second, to further develop asset
management business, asset management companies will be required to further protect
investors’ rights by exercising their voting rights in accordance with investors’ interests and
simplifying the procedures for mergers between small funds; Third, to promote competition
and efficiency in the market structure, a license system will be introduced to allow new stock
exchanges or an alternative trading system (ATS); Fourth, to diversify listed companies’
funding tools, listed companies will be allowed to issue contingent securities and warrants.
In addition, to help general meetings of shareholders to properly function, the “shadow
voting” system will be abolished in 2015, and regulations on the granting of a Power of
Attorney will be amended; and Fifth, to strengthen regulations on unfair trading practices,
price manipulation using unlisted securities or OTC derivatives will be punished with
criminal charges if underlying assets of such products are listed securities while acts of
market abuse such as scalping will be subject to administrative sanctions.

Macro-prudential Stability Law takes effect from August
Starting on August 1, 2011, the Korean government imposes Macro-prudential Stability Levy
on non-deposit foreign currency liabilities held by 56 financial institutions including 13
domestic banks and 37 foreign bank branches as well as Industrial Bank of Korea, Korea
Eximbank, the Korea Development Bank, Korea Finance Cooperation, Bank of National
Agricultural Cooperative Federation and National Federation of Fisheries Cooperation.
The levy varies according to debt maturity, i.e., short-term debt is subject to higher levy rate
compared with long-term debt as the former poses higher risk than the latter. For instance,
the levy of up to 0.5 percent is imposed according to debt maturity, with 0.2 percent for less
than one-year ones, 0.1 percent for those between one and three years, 0.05 percent for
three to five year debts, and 0.02 percent for more than five year debts. In case of an
emergency, however, an extra levy can be imposed for up to 6 months to the total levy of up
to 1.0 percent. The first notice of the levy for liabilities between August and December of
2011 will be issued in April 2012.

48

August 2011

FDI rose 23.8% in first half of 2011
Foreign direct investment (FDI) in Korea maintained strong growth in the first half of 2011,
despite risk factors such as the devastating earthquake in Japan, uprising in the Middle East,
and concerns over the financial crisis in Europe. FDI inflows during the first six months of 2011
amounted to US$5.37 billion, a 23.8 percent rise from the same period of the previous year.
Investment from the advanced economies contributed greatly to the overall growth. FDI from
the United States surged 186 percent year-on-year, while investment from Japan and the
European Union (EU) increased 43.5 percent and 45.6 percent each. In contrast, FDI inflows
from the Middle East fell 58.9 percent, due to the political unrest that weakened investor
sentiment in the region.
Greenfield investments continued to show strong growth this year, rising 31 percent while
cross border M&A activities decreased 2.5 percent. By industry, investments in
manufacturing and services both increased, reversing last year’s trend. Service sector FDI, in
particular, expanded 17 percent year-on-year, boosted by investments in finance, insurance
and business services.
(Notification basis, US$ million, %)

Total FDI
Growth rate

2

20071

20081

20091

20101

20111

3,369

4,548

4,644

4,333

5,365

-31.5

34.9

2.1

-6.7

23.8

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

FSC releases report on microfinance services
The Financial Services Commission (FSC) released on July 14 a report assessing the current
situation of lending programs for low-income households, and outlining future measures to
reinforce microfinance services in Korea. Smile Microcredit, which aims to create a 2.2 trillion
won fund to provide cheap loans to low-income families, has already obtained 1 trillion won,
or 45 percent of the targeted amount. According to the report, the program has successfully
established a funding base in a short period of time, but in order to develop into a
sustainable microcredit program, it needs to provide business consulting services for the
beneficiaries.
Meanwhile, Sunshine Loans, which is another microcredit program, has added 283.1 billion
won to its assets so far. The program has received funding from the central government,
regional governments, and financial companies. Lending activity has been decreasing

Economic Bulletin

49

recently, due to the implementation of stricter criteria on redeemability. The FSC report
stated that the Sunshine Loans program should simplify lending procedures in order to
accommodate more loan recipients.

<Current situation of major microfinance programs>
Smile Microcredit

Sunshine Loans

New Hope Loans

- goal: 2.2 trillion won

- goal: 2 trillion won

banks’ own financial resources

- already obtained: 1 trillion
won (through donations &
funds from dormant bank
accounts)

- already obtained: 283.1
billion won (through funds
from government & financial
sector)

2 trillion won in 10 years

10 trillion won in 5 years

10% of banks’ operating
profits in 5 years

- credit rating of 7 or lower

- annual income of less than
26 million won

- annual income of less than
30 million won

- annual income of less than
40 million won & credit
rating of 6 or lower

- annual income of less than
40 million won & credit
rating of 5 or lower

2~4.5%

10~13%

6~14%

Total amount
loaned

325.2 billion won
(Jul 2008 ~ Jun 2011)

1.65 trillion won
(Jul 2010 ~ Jun 2011)

686.7 billion won
(Nov 2010 ~ May 2011)

Average loan
amount per
borrower

7.3 million won

9.01 million won

7.95 million won

Financial resources

Lending goal

Eligibility criteria

Annual interest rate

Aggregate
Performance

50

August 2011

- welfare recipient, lower
income group

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
II

4.2
3.4

-8.6
0.9

9.8
7.3

2.5
2.9

-2.2
-2.2

-11.9
-8.6

11.7
7.6

P: Preliminary
Source: The Bank of Korea

52

August 2011

Growth rate by economic activity

Growth rate by expenditure on GDP

Economic Bulletin

53

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

Period

Production
index

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

2011

I
IIP

143.6
151.0

10.6
7.1

138.7
144.6

11.9
7.0

137.4
142.6

10.3
9.9

123.1
127.1

2.7
3.4

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
129.8
154.0
149.7
151.4
152.0

13.6
9.0
9.1
6.9
8.1
6.4

141.4
125.2
149.6
144.6
144.2
145.0

14.9
10.2
10.7
7.3
8.1
5.6

135.4
137.1
137.4
137.3
140.4
142.6

13.0
11.2
10.3
8.7
8.1
9.9

124.1
116.9
128.2
125.2
127.5
128.5

4.7
0.2
3.1
3.0
3.4
3.6

2011

1
2
3
4
5P
6P

P: Preliminary
Source: Statistics Korea

54

August 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

2011

I
IIP

132.7
133.8

6.8
5.8

99.9
105.4

2.6
-0.2

83.1
81.4

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
2
3
4
5P
6P

132.2
132.5
133.4
133.8
133.7
133.8

7.0
6.9
6.5
6.6
5.7
5.0

102.5
89.5
107.8
104.6
104.9
106.6

5.6
1.2
1.0
-1.4
1.1
-0.4

84.8
82.2
82.4
80.4
81.4
82.5

P: Preliminary
Source: Statistics Korea

Economic Bulletin

55

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

Period

2009
2010

Consumer
goods
sales
index

Y-o-Y
change (%)

Durable
goods

Y-o-Y
change (%)

Semi-durable
goods

Y-o-Y
change (%)

Non-durable
goods

Y-o-Y
change (%)

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

2011

I
IIP

122.7
125.6

5.1
5.6

167.9
176.4

12.9
17.7

112.2
121.1

6.1
5.9

112.0
112.1

0.8
-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
126.6
122.4
128.8
125.6

10.6
-0.8
5.2
5.1
6.3
5.6

165.9
154.2
183.5
167.4
176.4
185.3

14.0
9.1
15.3
15.8
20.0
17.2

120.4
101.6
114.6
121.5
127.0
114.7

11.1
2.0
5.0
7.4
5.2
4.9

118.9
104.3
112.7
108.7
116.3
111.3

9.4
-7.0
0.1
-1.5
0.3
-0.7

2011

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

P: Preliminary
Source: Statistics Korea

56

August 2011

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

Period

2009
2010

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

Durable
goods

Y-o-Y
change (%)

Non-durable
goods

Y-o-Y
change (%)

Consumer
sentiment index

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

-

2011

I
IIP

120.8
117.9

1.9
-1.7

134.9
134.7

-1.3
-3.4

115.2
111.1

3.6
-0.9

-

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2011 1
2
3
4
5P
6P
7

129.6
105.9
127.0
118.6
115.8
119.3
-

4.8
-4.0
4.4
-1.6
-1.4
-2.1
-

133.0
125.6
146.1
133.1
131.3
139.7
-

-2.2
-3.2
1.1
-1.7
-3.0
-5.4
-

128.2
98.0
119.4
112.7
109.6
111.1
-

7.9
-4.5
6.3
-1.7
-0.7
-0.3
-

108
105
98
100
104
102
102

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

2010

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

Manufacturing

2010

I
ll
III
IV

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

525
402
380
1,023

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

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

120.5
137.5
139.1
135.6

116.7
144.2
136.2
142.8

2011

I
llP

6,627
6,804

471
732

6,156
6,072

3,744
3,673

128.5
143.8

133.1
147.3

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
2
3
4
5P
6P

2,115
2,070
2,442
1,965
2,172
2,667

116
122
233
102
142
488

2,000
1,948
2,209
1,869
2,030
2,180

1,156
1,148
1,440
1,158
1,191
1,324

125.7
113.9
145.8
132.5
145.8
153.5

127.6
123.6
148.1
138.3
149.6
154.0

11.2

-37.9

32.3

25.1

22.5

2010

Y-o-Y change (%)
21.8

2010

I
ll
III
IV

10.3
24.7
-0.2
11.3

-43.7
-42.2
-71.7
31.4

22.6
35.5
22.0
7.8

45.6
58.5
27.4
4.5

30.0
29.5
29.3
13.6

18.1
25.7
27.4
18.4

2011

I
llP

19.5
8.9

-10.3
82.1

22.7
3.9

28.7
3.1

6.6
4.6

14.1
2.1

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
14.4
6.6
-0.8
20.4

-31.5
14.0
-6.3
-19.6
23.4
205.5

25.1
27.0
17.1
8.6
-2.2
6.1

14.6
30.4
41.0
9.8
-10.4
12.2

22.2
1.0
0.5
-0.3
10.1
4.3

17.8
20.4
6.5
-0.8
6.2
1.2

1
2
3
4
5P
6P

P: Preliminary
Source: Statistics Korea

58

August 2011

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

Period

Type of order

Private

Public

Private

35,163

52,777

88,675

29,013

54,628

Public

92,238

2010

Type of order

Domestic
construction
orders received
(total)

Value of
construction
completion
(total)

2010

I
ll
llI
lV

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

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

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

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

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

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

2011

I
llP

19,067
23,884

7,288
9,274

10,857
13,204

15,796
24,473

4,053
6,067

10,743
16,821

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
7,634
7,053
7,435
9,396

2,415
2,047
2,827
2,721
2,189
3,734

3,476
2,991
4,391
3,981
4,226
4,997

4,658
4,959
7,179
6,459
6,753
11,260

1,295
1,396
1,362
1,413
1,861
2,793

2,697
2,445
5,601
4,452
4,428
7,941

2.7

8.5

-18.7

-43.7

2.8

2010

2011

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

2010

Y-o-Y change (%)
0.5

2010

I
ll
llI
lV

6.3
2.0
-0.4
3.3

13.8
5.5
-1.1
15.9

3.8
2.6
1.0
-4.8

-1.6
-6.7
-3.6
-40.2

-14.9
-61.9
-22.0
-52.1

8.0
105.4
13.2
34.4

2011

I
llP

-6.2
-0.8

-2.4
1.6

-9.4
-5.2

-12.8
-3.3

-49.1
-11.9

18.2
0.5

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
-0.7
-4.1
-4.0
4.6

7.0
-11.1
-2.8
3.5
-0.8
2.0

-12.5
-17.3
0.0
-10.7
-6.9
1.3

-33.9
-16.7
13.7
-2.7
-22.5
13.3

-46.3
-35.7
-59.6
-22.7
11.3
-17.6

-36.9
9.5
117.0
-0.1
-33.4
41.1

2010

2011

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

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
6
7
8

130.1
129.8
129.4
129.0
129.5
130.2
-

3.0
2.4
1.6
1.1
1.3
1.7
-

135.1
135.3
135.8
135.5
136.6
137.7
-

100.8
100.6
100.5
99.9
100.3
100.6
-

99.1
92.2
107.8
98.4
98.9
99.6
96.2
-

101.8
98.0
113.5
99.3
104.3
104.3
101.3
98.9

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

August 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

2,610.3

5,842.7

127,691.2

121,848.5

-2,538.0

387.9

-1,082.3

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
4
5
6

154.7
1,126.1
1,329.5
1,277.6
2,183.9
2,987.8

1,557.9
1,530.8
2,754.0
3,327.6
1,633.8
3,656.0

42,662.8
37,228.3
47,800.4
47,879.4
47,149.8
48,693.6

41,104.9
35,697.2
45,046.4
44,551.8
45,516.0
45,037.6

-1,640.9
-569.1
-328.0
-178.8
15.5
-632.4

703.7
542.6
-858.4
-1,581.9
517.3
239.8

-466.0
-378.2
-238.1
-289.3
17.3
-275.6

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

6,251.6

-181.4

-3,479.2

143.8

-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
524.1
394.7
-3,956.7
-4,642.2

-1,725.4
-1,635.1
-1,335.8
-7.38.8
-1,254.7
-2,144.6

904.6
-3,004.0
720.3
4,575.0
-1,140.1
-1,399.5

569.3
-363.3
524.3
-206.2
165.1
-501.8

1,773.3
5,126.9
-648.6
-145.9
-821.7
-1,861.1

-120.7
-32.7
-28.0
-33.6
-49.9
-28.4

-2,683.1
-2,088.0
1,291.9
-3,055.8
-855.4
1,293.2

1,127.3
870.1
-1,853.6
-1,672.3
1,772.8
1,654.4

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

-2,754.1

-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
4
5
6

2009

P: Preliminary
Source: The Bank of Korea

62

August 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 7
8
9
10
11
12

113.0
113.4
113.5
113.2
113.4
113.8

113.9
114.5
114.6
113.9
114.2
115.0

112.5
112.7
112.7
112.8
112.9
113.0

112.7
112.8
112.9
113.0
113.2
113.3

111.1
111.7
111.8
110.9
111.3
111.9

112.1
112.9
113.0
111.8
112.5
113.1

109.0
109.3
107.3
104.0
104.3
105.1

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
5
6
7

118.9
119.8
120.4
120.4
120.4
120.6
121.4

123.8
125.1
123.1
125.7
125.1
125.3
127.0

115.8
116.4
116.6
116.9
117.3
117.5
117.8

116.3
117.1
117.4
117.6
118.2
118.6
119.0

119.7
120.5
122.0
122.4
122.3
121.9
122.4

122.7
123.9
125.8
126.2
126.0
125.5
126.0

108.6
110.6
113.5
111.8
110.2
109.4
108.0

156.1
160.9
166.5
167.6
163.9
163.2
161.4

2009
2010

2.8
2.9

3.4
4.6

2.4
4.2

3.6
1.8

-0.2
3.8

-0.5
4.6

-0.2
-2.6

-4.1
5.3

2009 7
8
9
10
11
12

1.6
2.2
2.2
2.0
2.4
2.8

0.9
2.0
2.2
2.0
3.5
4.4

2.2
2.2
2.1
2.0
1.8
1.8

3.2
3.1
2.7
2.6
2.5
2.2

3.8
-3.0
-2.6
-3.1
-0.4
1.8

-5.1
-4.0
-3.4
-4.2
-0.7
2.0

-2.7
-1.1
-7.2
-16.5
-13.4
-8.6

-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
5
6
7

4.1
4.5
4.7
4.2
4.1
4.4
4.7

7.1
7.8
7.9
6.4
5.9
6.5
7.4

2.2
2.5
2.5
2.5
2.8
2.9
3.0

2.6
3.1
3.3
3.2
3.5
3.7
3.8

6.2
6.6
7.3
6.8
6.2
6.2
6.5

7.7
8.2
9.1
8.4
7.6
7.6
8.0

4.9
5.6
9.1
7.7
3.3
-0.4
-1.3

14.1
16.9
19.6
19.0
13.2
10.5
9.8

Y-o-Y change (%)

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 7
8
9
10
11
12

24,756
24,525
24,630
24,655
24,625
24,063

23,828
23,620
23,805
23,856
23,806
23,229

3,802
3,761
3,810
3,858
3,855
3,872

18,210
18,048
18,155
18,130
18,267
18,104

3.7
3.7
3.4
3.2
3.3
3.5

16,589
16,479
16,687
16,690
16,790
16,555

9,383
9,472
9,606
9,628
9,603
9,632

5,255
5,117
5,151
5,170
5,256
5,074

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
5
6
7

24,114
24,431
24,918
25,240
25,480
25,592
25,473

23,196
23,336
23,846
24,303
24,661
24,752
24,636

4,148
4,149
4,122
4,108
4,137
4,135
4,079

18,007
3.8
18,019
4.5
18,244
4.3
18,536
3.7
18,731
3.2
18,812
3.3
18,844
3.3
Y-o-Y change (%)

16,832
16,856
17,065
17,357
17,626
17,720
17,667

10,305
10,390
10,543
10,618
10,708
10,716
10,718

4,848
4,781
4,782
4,928
5,064
5,132
5,137

1,680
1,684
1,740
1,812
1,854
1,872
1,811

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 7
8
9
10
11
12

0.3
0.6
0.7
0.3
0.2
0.1

-0.3
0.0
0.3
0.0
0.0
-0.1

-4.3
-3.5
-3.0
-2.2
-1.1
-0.4

0.7
1.0
1.1
0.7
1.0
0.9

-

1.4
2.3
2.9
2.3
2.5
2.3

3.6
4.0
5.1
5.4
5.4
6.2

1.8
3.0
2.7
2.7
3.7
-0.2

-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
5
6
7

0.1
1.6
2.2
1.5
1.5
1.7
1.0

1.4
2.1
2.0
1.6
1.5
1.9
1.4

5.7
6.7
5.1
2.9
2.5
2.9
1.0

1.2
1.4
1.1
1.4
1.3
2.1
1.9

-

3.3
3.5
2.7
2.1
2.2
3.1
2.5

6.1
6.2
6.2
6.1
6.3
6.2
6.0

-0.3
-1.2
-3.9
-4.3
-3.0
-0.6
-1.5

-2.6
1.6
1.5
-1.3
-5.1
-3.4
-4.9

Source: Statistics Korea

64

August 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
5
6
7

2.7
2.8
2.9
3.0
3.0
3.2
3.3

2.9
3.1
3.4
3.4
3.5
3.5
3.6

4.5
4.7
4.5
4.5
4.4
4.4
4.5

3.7
3.9
3.7
3.7
3.7
3.7
3.8

4.3
4.4
4.1
4.1
4.0
3.9
4.0

2,069.73
1,939.30
2,106.70
2,192.36
2,142.47
2,100.69
2,133.21

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 7
8
9
10
11
12

59,420.2
60,570.3
59,650.3
63,681.7
61,154.5
62,633.2

363,421.4
361,012.4
367,070.3
371,531.7
370,979.7
376,977.3

1,512,822.5
1,524,879.7
1,535,279.8
1,551,319.5
1,564,175.8
1,570,027.1

1,940,223.0
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
4
5
6

73,540.8
75,432.1
73,012.7
73,206.1
73,828.5
74,705.5

429,368.1
432,482.8
430,936.6
425,420.5
423,994.7
421,885.3

1,676,448.8
1,674,390.5
1,677,475.9
1,684,792.3
1,690,543.0
1,697,204.2

2,152,814.0
2,148,254.1
2,152,736.5
2,163,485.7
2,175,557.3
2,189,729.2

Y-o-Y change (%)
2009
2010

18.1
9.5

16.3
11.8

10.3
8.7

7.9
8.2

2009 7
8
9
10
11
12

17.4
16.5
11.9
20.2
12.7
5.6

18.5
18.5
19.5
19.6
17.3
16.4

9.7
10.0
10.0
10.5
9.7
9.3

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
4
5
6

13.0
13.3
11.2
13.9
8.8
12.8

12.6
11.5
11.6
9.6
7.4
5.4

6.5
5.0
4.3
3.9
3.7
3.0

6.6
5.2
4.7
4.5
4.4
4.0

Source: The Bank of Korea

66

August 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 7
8
9
10
11
12

1,240.5
1,244.9
1,188.7
1,200.6
1,167.4
1,167.6

1,264.0
1,238.4
1,219.2
1,175.3
1,164.2
1,166.5

1,299.2
1,332.8
1,318.8
1,312.6
1,348.3
1,262.8

1,338.1
1,304.3
1,332.4
1,300.8
1,304.4
1,300.8

1,745.9
1,779.1
1,734.3
1,781.3
1,751.7
1,674.3

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
5
6
7

1,114.3
1,127.9
1,107.2
1,072.3
1,080.6
1,078.1
1,052.6

1,120.1
1,118.1
1,122.5
1,086.8
1,083.5
1,081.3
1,059.5

1,356.6
1,380.7
1,331.9
1,313.8
1,335.6
1,335.7
1,353.2

1,356.3
1,351.0
1,376.2
1,304.8
1,333.6
1,342.8
1,333.4

1,514.0
1,549.5
1,563.5
1,591.2
1,549.7
1,560.5
1,507.9

1,495.4
1,524.6
1,572.6
1,569.4
1,551.3
1,555.4
1,515.4

-7.1
-2.5

15.8
-9.4

26.6
-3.1

-5.7
-9.6

10.4
-13.6

2009 7
8
9
10
11
12

23.0
15.1
0.1
-7.0
-21.3
-7.1

24.0
18.9
7.9
-11.4
-16.2
-15.1

39.3
34.9
15.3
0.5
-13.2
-9.4

40.2
36.9
25.6
-2.0
-9.1
-13.5

11.1
11.9
1.6
7.0
-8.4
-5.7

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
5
6
7

-3.6
-2.6
-2.1
-3.9
-10.0
-10.9
-11.3

-1.6
-3.4
-1.3
-2.7
-6.8
-10.8
-12.2

5.4
6.3
9.4
10.7
1.3
-2.1
-1.2

8.7
5.4
9.6
9.2
5.4
0.7
-3.2

-6.2
-1.3
3.0
7.6
5.1
5.8
-2.9

-8.1
-3.8
1.8
4.5
6.2
5.0
-1.6

2009
2010

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

Source: The Bank of Korea

Economic Bulletin

67

Editor-in-Chief
Hong Nam-Ki (MOSF)
Editorial Board
Kim Young-Min (MOSF)
Shim Jae-Hak (KDI)
Lee Sung-Shin (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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