Vol. 33 | No.

10

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
2012 Budget and 2011-2015 fiscal management plan

42

Economic News Briefing

48

Statistical Appendices

51

The Green Book
Current Economic Trends
Overview
Although domestic demand has continued to recover, led by improving employment and the
brisk service sector, the Korean economy has seen some real economic indicators hold back
and inflation remain high.
Employment improved in August, adding 490,000 jobs, led by service industries, with the
employment rate rising year-on-year to 59.6 percent from 59.1 percent, and the
unemployment rate dropping to 3.0 percent from 3.3 percent.
Consumer price inflation, while expected inflation and core inflation remained high, slowed
down month-on-month in September from 5.3 percent to 4.3 percent, as excess demand for
agricultural products subsided after the Chuseok holidays.
Mining and manufacturing production fell 1.9 percent from the previous month in August,
partly due to temporary reasons such as equipment replacement and the moving of
manufacturing facilities. Service output grew for the fourth consecutive month, rising 0.5
percent, on the back of increases in financial & insurance services and information &
communications services.
In August retail sales fell 0.2 percent in line with gasoline prices returning to the previous level,
compared with a month ago when gasoline demand spurred just before the price hike.
Facilities investment and construction investment rose 1.3 percent and 1.1 percent month-onmonth, respectively, in August, while slowing down year-on-year.
A trade surplus widened to US$1.44 billion in September from US$0.48 billion in the
previous month, backed by steadily increasing exports at around 20 percent.
The cyclical indicator of the coincident composite index stayed flat in August, as sluggish
mining and manufacturing production offset an increase in service output. The year-on-year
leading composite index, despite a weak stock market, remained steady from the previous
month backed by a rise in construction orders.
In September, stock markets and foreign exchange markets showed a higher volatility,
reflecting worries over possible spread of the European debt crisis. Meanwhile, bond
markets posted net buying of foreign investors.
There have been remaining gaps of housing price trends between in and outside the Seoul
metropolitan area in September, while rent increased at a fast pace due to the autumn
moving season, particularly in the Seoul Metropolitan area.
There are growing uncertainties surrounding the Korean economy, with a possible outbreak
of a global fiscal crisis and rising volatility in the domestic and international financial markets.
The Korean government will closely monitor local and global economic situations and
examine their effects on the economy in order to help the economy keep recovering and
prices keep stabilizing. In the meantime, it will continue to pursue active job creation and
strong domestic demand to boost the real economy, while pushing forward fiscal soundness
and the soft-landing of household debts to make the Korean economy stronger.
Economic Bulletin

3

1. External economic situation
Concern over a recession is increasing due to the worsening outlook for the US economy and
a decline in China’s economic indicators as well as the possibility of a default by Greece and
the spreading of the European debt crisis.
US Economic Growth Forecast for 2011 by Major Institutions (Jun
2.5%

1.6% (IMF), 2.5%

1.5% (Goldman Sachs), 2.4%

Aug or Sep)

1.6% (Bank of America)

The international financial market’s volatility is increasing because of a shortage of dollar
liquidity at major European banks, such as those in France, and growing credit risks in US
financial companies, both of which have been caused by the European fiscal difficulties.

US

US GDP in the second quarter of 2011 has been revised upward to 1.3 percent (annualized
q-o-q) from 1.0 percent, and economic indicators have improved to a certain extent.
Industrial production and personal consumption expenditure grew in August following the
previous month.
Industrial production (m-o-m, %)
0.7 (Mar 2011)

-0.3 (Apr)

0.2 (May)

0.4 (Jun)

0.9 (Jul)

0.2 (Aug)

0.7 (Jul)

0.2 (Aug)

Personal consumption expenditure (m-o-m, %)
0.6 (Mar 2011)

0.3 (Apr)

0.2 (May)

-0.2 (Jun)

The ISM manufacturing index and the consumer sentiment index improved slightly in
September after declining in July and August.
ISM manufacturing index (base=50)
61.4 (Feb 2011)

61.2 (Mar)

60.4 (Apr)

53.5 (May)

55.3 (Jun)

50.9 (Jul)

50.6 (Aug)

51.6 (Sep)

63.7 (Jul)

55.7 (Aug)

59.4 (Sep)

Michigan consumer sentiment index (CSI, base=100)
67.5 (Mar 2011)

69.8 (Apr)

74.3 (May)

71.5 (Jun)

The US strengthened its economic recovery measures, with the administration unveiling a
$447 billion economic stimulus package on September 4 and the Federal Reserve
announcing “Operation Twist” aimed at expanding its long-term bond holdings.
(Percentage change from previous period)
2009

Real GDP

2

20111

2010

Jul

Aug

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

-3.5

3.0

3.9

3.8

2.5

2.3

0.4

1.0

-

-

-1.9

2.0

2.7

2.9

2.6

3.6

2.1

0.4

-

-

- Corporate fixed investment

-17.8

4.4

6.0

18.6

11.3

8.7

2.1

9.9

-

-

- Housing construction investment

-16.0

14.6

-15.3

22.8

-27.7

2.5

-2.4

3.4

-

-

Industrial production

-11.2

5.3

2.0

1.7

1.6

0.8

1.2

0.3

0.9

0.2

- Personal consumption expenditur

-1.7

3.8

1.1

0.8

0.9

1.4

1.5

0.9

0.7

0.2

Existing home sales

5.2

-4.5

-12.3

7.5

-25.1

13.8

8.2

-4.9

-3.5

7.7

Unemployment rate3

9.3

9.6

9.7

9.6

9.6

9.6

8.9

9.1

9.1

9.1

-0.3

1.6

0.3

-0.1

0.4

0.7

1.3

1.0

0.5

0.4

Retail sales

Consumer prices
1. Preliminary

4

2. Annualized rate (%)

October 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

China’s economy continued to grow at a robust pace, expanding 9.5 percent year-on-year in
the second quarter, but production and consumption slowed down gradually.
The year-on-year consumer price index slightly slowed down to 6.2 percent.
(Percentage change from same period in previous year)
Q1

2010
Q2

Q3

Q4

Q1

20111
Q2
Jul

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

14.0

13.5

30.5

24.5

26.4

25.5

24.5

24.5

32.5

27.0

27.2

28.1

15.5

23.3

23.7

23.8

23.9

22.0

17.1

18.2

17.6

17.0

-16.0

31.3

28.7

40.9

32.2

24.9

26.4

22.0

20.4

24.5

-0.7

3.3

2.2

2.9

3.5

4.7

4.9

5.7

6.5

6.2

-5.4

5.5

5.2

6.8

4.5

5.7

7.0

6.9

7.5

7.3

2009
Annual

Annual

9.1

10.3

11.0

Fixed asset investment (accumulated)
Retail sales

Real GDP
Industrial production

2

Exports
Consumer prices2
2

Producer prices

Aug

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

Japan

Japan’s industrial production and exports showed a recovery trend with the supply chain
continuing to recover, while personal consumption gradually increased.
The country’s Cabinet Office said in its Monthly Economic Report on September 20 that despite
difficulties due to the Great East Japan Earthquake, the recovery of the economy was continuing.
(Percentage change from previous period)
2009
Annual

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

Q3

Q4

Q1

20111
Jul
Q2

0.5

0.8

-0.3

-0.9

-0.5

-

-

0.7

-1.1

-0.1

-2.0

-4.0

0.4

0.8

Annual

Q1

2010
Q2

-6.3

4.0

1.5

-21.9

16.4

7.4

Aug

-2.3

2.5

3.8

3.7

3.2

-0.4

-3.0

-1.7

0.6

-2.6

-33.1

24.4

43.2

33.2

17.8

10.0

2.4

-8.0

-3.4

2.8

-1.4

-0.7

-1.2

-0.9

-0.8

0.1

-1.4

-0.9

0.2

0.2

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

Eurozone

The recovery of the eurozone economy was limited due to uncertainties from government
debt problems, while the upward trend of consumer prices continued.
Policy measures were strengthened as the European Central Bank said on September 15 that
it would provide three-month dollar liquidity to euro-area banks and mentioned on
September 26 the possibility of resuming covered bond purchases, while the German
parliament on September 29 approved the planned expansion of the European Financial
Stability Facility (EFSF).
(Percentage change from previous period)

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

6

Source: Eurostat

October 2011

2009
Annual

Annual

-4.0

1.7

-14.7

7.4

Q1

2010
Q2

Q3

Q4

Q1

20111
Jul
Q2

0.4

1.0

0.3

0.3

0.8

0.2

-

-

2.6

2.4

1.0

1.8

0.9

0.2

1.0

-

Aug

-2.4

0.8

0.4

0.2

0.2

0.3

-0.1

-0.3

0.2

-18.1

20.1

12.9

22.3

22.8

21.8

21.2

12.6

5.4

-

0.3

1.6

1.1

1.5

1.7

2.0

2.5

2.8

2.5

2.5

1-4

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

1-5

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

1-6

Eurozone GDP growth and industrial production
Source: Eurostat

Economic Bulletin

7

2. Private consumption
Private consumption (preliminary) increased 0.9 percent quarter-on-quarter and 3.0 percent
year-on-year in the second quarter of 2011.
(Percentage change from same period in previous year)
2010 1

2009

Private consumption

2

q-o-q

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

3.0

-

3.7

1.4

0.9

-

0.5

0.7

1.4

0.3

0.4

0.9

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

Retail sales in August increased 5.2 percent year-on-year. However, it declined 0.2 percent
month-on-month despite strong sales of durable and semi-durable goods, as non-durable
goods sales slowed down affected by declining gasoline demand, which soared shortly before
the price return to the normal level.
On a year-on-year basis, durable goods sales slowed down but remained at a high level, while
sales of semi-durable and non-durable goods grew.
(Percentage change from same period in previous year)
2009

Consumer goods sales
q-o-q
- Durable goods

2

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

4

20111

2010

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Jul1

Aug1

2.7

6.6

9.7

4.9

7.5

5.1

5.1

5.7

5.3

5.2

-

-

0.6

-0.1

3.3

0.8

1.1

0.2

2.3

-0.2

8.2

14.9

29.6

5.6

17.0

10.6

12.9

17.5

12.6

12.2

21.8

11.1

48.9

-2.1

12.0

0.1

10.2

13.0

10.8

7.1

1.3

6.8

2.5

6.2

6.6

11.1

6.1

5.6

3.9

4.0

1.2

2.2

3.2

3.3

3.0

-0.7

0.8

-0.4

2.2

2.5

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 department stores and nonstore retailers jumped 8.0 percent, respectively, while
those at large discounters rose 2.4 percent, from the effect of Chuseok holiday-related
expenditures, but sales at specialized retailers dropped 2.5 percent.
On a year-on-year basis, the sales of department stores, large discounters, specialized
retailers and nonstore retailers all continued to gain ground.
(Percentage change from same period in previous year)

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

2

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Jul1

Aug1

4.3

8.8

7.5

9.2

7.4

10.5

11.5

9.7

7.1

7.9

-2.2

4.4

5.4

4.1

7.6

0.8

3.5

5.1

3.5

3.0

3.0

5.6

9.7

1.8

7.3

4.2

4.3

4.9

6.0

3.8

8.7

15.6

20.1

17.9

11.4

13.5

11.5

9.2

6.1

15.3

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

8

October 2011

20111

2010

2009

2-1

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

2-2

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

2-3

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

Economic Bulletin

9

There is a possibility that retail sales will slow down considering advanced indicators and a
drop in consumer sentiment due to concern over a global economic slowdown.
As Chuseok-related expenditures accounted for a considerable part of the retail sales in
August, there is a possibility of a slowdown in retail sales, particularly those of non-durable
goods, in September.
Increasing volatility in financial markets due to the downgrading of the US credit rating and
concern over a global economic slowdown has been followed by the plummeting of stock
prices, resulting in worries over their effect on assets.
KOSPI (monthly average)
2,153 (Apr 2011)

2,122 (May)

2,075 (Jun)

2,150 (Jul)

1,869 (Aug)

1,791 (Sep)

In September, the consumer sentiment index was 99, falling below the benchmark of 100 for
the second month in a row.
Consumer sentiment index (CSI, base=100)
105 (Feb 2011)

98 (Mar)

100 (Apr)

104 (May)

102 (Jun)

102 (Jul)

99 (Aug)

99 (Sep)

Advanced indicators for September showed that retail sales slowed down overall.
Credit card use and sales of department stores and large discounters slowed down, with a
particular year-on-year drop in sales of large discounters.
The decline in gasoline sales continued, as fuel prices remained high due to the rising
exchange rate.
Credit card use (y-o-y, %)
16.3 (Apr 2011)

21.1 (May)

19.8 (Jun)

16.6 (Jul)

19.8 (Aug)

16.6 (Sep)

Department store sales (y-o-y, %)
15.1 (Apr 2011)

8.7 (May)

8.2 (Jun)

8.5 (Jul)

8.3 (Aug)

5.8 (Sep)

Large discounter sales (y-o-y, %)
4.6 (Apr 2011)

2.4 (May)

2.7 (Jun)

4.9 (Jul)

2.0 (Aug)

-1.4 (Sep)

Domestic sales of gasoline (y-o-y, %)
-4.7 (Apr 2011)

-2.6 (May)

-3.4 (Jun)

9.2 (Jul)

-0.3 (Aug)

0.9 (Sep)

Domestic sales of cars (y-o-y, %)
3.0 (Apr 2011)

3.7 (May)

6.0 (Jun)

6.1 (Jul)

3.7 (Aug)

3.8 (Sep)

Consumer goods imports (y-o-y, %)
30.0 (Apr 2011)

28.1 (May)

27.2 (Jun)

33.3 (Jul)

28.6 (Aug)

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 September data)

Although situations related to retail sales are improving with a recovery in employment and
a slowdown in consumer price inflation, the growth of retail sales are predicted to be limited
by external uncertainties.
Employment (y-o-y, thousand)
469 (Mar 2011)

379 (Apr)

355 (May)

472 (Jun)

335 (Jul)

490 (Aug)

Consumer Prices (y-o-y, %)
4.7 (Mar 2011)

10

October 2011

4.2 (Apr)

4.1 (May)

4.4 (Jun)

4.7 (Jul)

5.3 (Aug)

4.3 (Sep)

2-4

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

2-5

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

2-6

Consumer sentiment index
Source: The Bank of Korea

Economic Bulletin

11

3. Facility investment
Facility investment (preliminary GDP) in the second quarter of 2011 increased 3.9 percent
quarter-on-quarter and 7.5 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

7.5

-

7.8

-

2.8

7.9

5.6

-1.0

-1.1

3.9

-13.5

10.1

30.8

30.0

35.3

38.9

20.5

13.9

9.0

2.8

19.1

6.7

24.2

15.6

-6.6

0.6

3.2

2.0

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

Facility investment in August, while rising 1.3 percent month-on-month, fell 3.7 percent yearon-year due to weak investment in machinery. Facility investment is projected to return to
moderate recovery given domestic consumption in good shape and leading indicators
improving. Still, mounting uncertainties triggered by Europe’s debt crisis and shrinking
corporate investment sentiment are likely to limit gains.
(Percentage change from same period in previous year)
2009

20111

2010

Annual

Annual

Q2

Q3

Q4

Q1

Q2

-9.4

25.1

29.5

29.3

13.6

6.6

q-o-q, m-o-m

-

-

6.7

7.2

-5.4

- Machinery

-12.6

30.5

37.1

37.4

17.1

Facility investment

- Transportation equipment

Jun

Jul1

Aug1

4.8

4.7

-2.8

-3.7

-0.2

3.0

0.7

-5.7

1.3

6.8

7.0

5.2

-2.5

-6.0

4.6

4.3

2.8

-0.1

-1.2

5.6

-5.7

2.6

-4.2

10.6

-10.3

11.2

24.7

-0.2

11.3

19.5

8.2

18.5

-4.4

6.0

-

-

15.2

-3.6

4.1

3.6

3.9

10.2

-16.4

1.0

- Public

62.4

-37.9

-42.2

-71.7

31.4

-10.3

82.0

205.2

44.9

8.0

- Private

-18.2

21.8

35.5

22.0

7.8

22.7

3.1

4.0

-7.0

5.8

-16.6

40.4

51.3

40.0

26.3

8.0

10.5

3.3

12.4

11.3

Manufacturing operation ratio

-3.5

8.8

10.8

1.8

5.3

2.6

-0.3

-0.4

-2.4

0.8

Facility investment adjustment
pressure2

-3.7

9.5

12.1

3.4

4.6

4.1

1.6

1.5

-0.5

1.3

Domestic machinery orders
q-o-q, m-o-m

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

October 2011

May

Jun

Jul

Aug

Sep

Oct

103

102

103

103

100

98

3-1

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

3-2

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

3-3

Machinery imports
Source: Korea International Trade Association (KITA)

Economic Bulletin

13

4. Construction investment
Construction investment (preliminary GDP) in the second quarter of 2011 rose 1.6 percent
quarter-on-quarter, and fell 6.8 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

-6.8

-

0.7

-

2.0

-4.2

-0.8

-1.0

-6.7

1.6

- Building construction

-2.3

2.4

-2.9

4.5

-5.1

-6.3

-2.8

-11.3

-3.7

- Civil engineering works

11.6

5.6

0.5

4.0

1.0

1.7

-2.9

-12.7

-10.4

Construction investment

2

q-o-q

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

The value of construction completion (constant) in August increased 1.1 percent month-onmonth, but declined 9.2 percent year-on-year due to a drop in both building construction
and civil engineering works.
(Percentage change from same period in previous year)
2009

20111

2010

Annual

Annual

Q2

Q3

Q4

Q1

Q2

Jun

Jul1

Aug1

1.6

-3.3

-4.3

-6.8

-4.3

-12.6

-6.61

-1.41

-14.6

-9.2

-

-

-3.1

-4.3

-1.6

-4.6

3.51

14.51

-16.5

1.1

- Building construction

-6.4

-7.1

-7.7

-12.3

-8.5

-15.2

-8.4

1

-3.5

1

-14.3

-10.5

- Civil engineering works

16.1

2.2

0.6

1.9

1.2

-9.2

-4.3

1

1.1

1

-14.9

-7.5

5.0

-18.7

-6.7

-3.6

-40.2

-12.8

-3.3

13.3

-34.6

75.4

-

-

0.2

-1.4

-22.9

12.8

9.8

37.0

-30.4

65.8

-14.2

-9.9

55.3

-1.3

-46.4

-9.7

-4.0

8.3

-41.8

87.7

44.3

-29.5

-49.7

-7.0

-29.9

-17.0

-1.5

22.1

-26.7

50.7

-12.9

19.3

47.4

-14.3

18.1

21.5

3.8

7.8

31.4

87.8

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

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

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

Construction investment is forecast to slightly recover, while suffering from stagnant
housing markets and construction companies’ weak investment sentiment. Housing markets
have shown recovery signs, as building permits have increased, and unsold houses have
dropped. Meanwhile, leading indicators have turned positive. As of August 31, housing
building permits increased 79.6 percent year-on-year.

2009

Unsold houses

14

October 2011

2010

2011

Dec

Dec

Jun

Jul

Aug

123,000

89,000

73,000

70,000

69.000

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 September increased 19.6 percent (preliminary) year-on-year to US$47.12 billion.
Exports rose almost 20 percent amid the global fiscal difficulties and despite weak
performance of IT products, as petroleum products, automobiles and steel increased.
By business category, exports of petroleum products (up 56.8%), automobiles (up 40.0%),
and steel (up 39.6%) surged while those of semiconductors (down 4.2%) and LCDs (down
5.1%) decreased.
By regional category, exports to Japan (up 48.8%), the ASEAN countries (up 43.2%), and
China (up 20.5%) jumped while those to the EU and the US remained positive. Exports to the
EU countries (up 11.2%) posted a double-digit gain for two consecutive months, while those
to the US (up 15.9 %) expanded from the previous month’s 6.9 percent.
(US$ 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

Q3

Aug

Sep1

363.53

466.38

101.08

120.24

116.32

128.75

131.00

142.74

142.24

45.94

47.12

-13.9

28.3

35.8

33.1

22.7

23.8

29.6

18.7

22.3

25.9

19.6

1.30

1.70

1.51

1.76

1.72

1.79

1.99

2.08

2.05

1.91

2.14

323.08

425.21

98.16

105.63

105.70

115.73

123.64

134.36

142.24

45.46

45.68

-25.8

31.6

37.4

42.8

24.6

24.6

25.9

27.2

22.3

28.9

30.5

11.6

1.46

0.47

1.54

1.57

1.61

1.87

1.96

2.05

1.90

2.08

1. Preliminary
Source: Korea Customs Service

Imports in September increased 30.5 percent (preliminary) year-on-year to US$45.68 billion.
Imports of commodities and consumer goods soared in line with high oil prices as well as
recovering domestic demand, outstripping exports in terms of an increase rate. In
September imports of commodities rose 34.3%, those of capital goods 7.6%, and those of
consumer goods 31.5% year-on-year.
The current account surplus (preliminary) in September was US$1.44 billion, a surplus for
the 20th consecutive month. The surplus increased from the previous month as the summer
vacation season ended.
(US$ billion)
2008-2010

Average trade surplus

Jun

Jul

Aug

Sep

Oct

4.25

2.41

-0.35

2.16

3.64
(US$ billion)

2009

Trade Balance
1. Preliminary
Source: Korea Customs Service

16

October 2011

2010

2011

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Aug

Sep1

40.45

41.17

2.93

14.61

10.62

13.02

7.37

9.37

6.81

0.48

1.44

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 August fell 1.9 percent month-on-month with
automobiles and chemical products declining, while rising 4.8 percent year-on-year.
By business category, clothing and fur (up 12.2%) and groceries (up 3.3%) increased monthon-month, while automobiles (down 6.7%) and chemical products (down 3.2%) went down.
The manufacturing inventory-shipment ratio increased month-on-month for three months in
a row, as the inventory added 3.1 percent and the shipments shed 0.6 percent.
By business category, the shipments of semiconductors and parts (up 1.3%) and nonferrous
metals (up 5.8%) increased month-on-month, while those of refined petroleum (down 6.2%)
and electric equipment (down 7.4%) declined. The inventories of semiconductors and parts
(up 7.3%) and electric equipment (up 11.0%) climbed month-on-month, while those of
refined petroleum (down 14.9%) and clothing and fur (down 4.0%) fell.
The average operation ratio of the manufacturing sector lost 1.6 percentage points to 80.5
percent, 2.2 percentage points higher than the average of 78.3 percent between 2000 and
2010.
(Percentage change from same period in previous year)
2010
Q2

Aug

Q1

Q2

Jun

Jul1

Aug1

-

4.2

-1.5

6.1

0.0

0.9

-0.3

-1.9

(y-o-y)

16.2

18.8

15.9

10.6

7.2

6.6

4.0

4.8

- Manufacturing

16.7

19.3

16.2

10.9

7.4

6.6

3.9

4.9

∙ICT

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

Mining and
manufacturing
activity2

2011

25.2

26.7

21.7

14.3

10.5

6.9

3.6

2.8

∙Automobiles

23.1

32.1

18.3

16.1

12.1

17.2

12.0

23.6

Shipment

14.4

15.9

15.3

11.9

7.2

5.9

3.2

4.4

- Domestic demand

11.5

13.3

12.0

7.2

3.8

3.7

1.2

2.7

3

- Exports

18.2

19.5

19.8

18.4

11.6

8.8

5.9

6.3

Inventory4

17.4

17.5

20.1

10.3

10.0

10.0

9.8

11.9

Manufacturing Average operation ratio (%)
activity
Production capacity

81.2

82.3

79.7

83.1

81.4

82.5

82.1

80.5

7.2

7.2

8.3

6.8

5.8

5.1

4.4

3.6

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

Mining and manufacturing production is expected to continue a moderate recovery, as the
equipment replacement in major car makers was finalized and exports steadily grow at
around 20 percent. However, it may possibly be affected by global uncertainties.
Exports (y-o-y, %)
23.5 (Apr 2011)

22.0 (May)

11.2 (Jun)

21.7 (Jul)

25.9 (Aug)

19.6 (Sep)

Automobile production (thousand)
395 (Apr 2011)

18

October 2011

389 (May)

438 (Jun)

392 (Jul)

320 (Aug)

374 (Sep)

6-1

Industrial production
Source: Statistics Korea (industrial activity trend)

6-2

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

6-3

Inventory
Source: Statistics Korea (industrial activity trend)

Economic Bulletin

19

7. Service sector activity
Despite sluggish hotels & restaurants and wholesale & retail sales due to increased number
of rainy days, service activity in August increased 0.5 percent from the previous month,
helped by information & communications services and financial & insurance services. On a
year-on-year basis, service activity rose 4.8 percent.
Service activities in financial & insurance services (up 2.7%) and information &
communications services (up 2.6%) significantly expanded month-on-month. Healthcare &
social welfare services (up 1.5%) also increased.
Real estate & renting (up 0.3%) continued to improve for two consecutive months, while
remained weak on a year-on-year basis (down 3.4%).
(Percentage change from same period in previous year)
Weight
Service activity index

2009

2010

Annual Annual

2011

Q1

Q2

Q3

Q4

Q1

Q2

Jul1

Aug1

100.0

1.8

3.9

6.2

4.2

2.3

3.2

2.7

3.3

3.8

4.8

- Wholesale & retail sales

21.8

-0.4

5.7

7.4

5.6

5.0

4.7

4.0

4.8

3.1

4.6

- Transportation services

9.0

-6.6

12.0

14.1

14.3

10.1

10.0

7.2

3.5

4.1

4.6

- Hotels & restaurants

7.7

-1.4

1.2

1.2

0.7

1.3

1.7

-0.6

1.9

2.6

0.9

- Information & communications services

8.4

0.9

1.9

1.0

0.4

2.2

3.6

3.9

3.4

4.0

6.0

15.3

7.8

4.6

6.7

2.5

1.4

8.2

7.2

8.2

7.8

10.6

- Real estate & renting

6.3

5.3

-8.6

11.5

-2.4

-15.9

-24.2

-17.7

-11.5

-3.5

-3.4

- Professional, scientific & technical services

4.8

1.2

-0.5

0.8

2.1

-3.9

-1.3

-3.6

-1.4

0.6

3.7

- Business services

2.9

-3.0

7.5

5.3

8.1

7.6

8.6

5.7

5.5

4.4

1.6

10.8

2.1

2.0

3.2

1.4

0.5

3.1

1.1

0.2

1.9

2.7

- Healthcare & social welfare services

6.0

10.4

8.8

11.7

11.0

8.6

4.6

6.2

5.0

4.8

5.2

- Entertainment, cultural & sports services

2.9

-0.5

-0.4

-3.9

-0.1

-0.4

2.7

2.4

1.2

3.1

1.1

- Membership organizations

3.8

-2.1

4.3

1.6

6.0

5.0

4.5

2.9

2.4

2.0

1.5

- Sewerage & waste management

0.4

3.7

5.1

6.7

6.0

1.7

6.4

0.0

-3.1

-5.2

6.8

- Financial & insurance services

- Educational services

1. Preliminary
Source: Statistics Korea

Service activity is expected to slowdown in September affected by sluggish wholesale &
retail sales and financial & insurance services due to dampening consumer sentiment and
the bearish stock market.

20

October 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)

August 2011 service industry by business

Source: Statistics Korea (service industry activity trend)

Economic Bulletin

21

8. Employment
The number of workers on payroll in August increased by 490,000 from a year earlier, while
the employment rate (seasonally adjusted) rose by 0.5 percentage points year-on-year to
59.6 percent.
By industry, employment in services (up 572,000) led the upward trend. The service sector
continued to expand employment with increasing health & welfare (up 111,000) and
professional, scientific & technical services (up 97,000). In addition, transportation services
(up 79,000) and wholesale & retail sales (up 88,000) contributed to the increase.
Meanwhile, employment in manufacturing (down 28,000) declined due to the base effect
from August last year, when the manufacturing sector gained 297,000 jobs.
By status of workers, the number of regular workers (up 559,000) continued to increase,
while self-employed workers (up 53,000) increased year-on-year for the first time since
April 2006.

2009
Annual
Number of employed (million)

Q3

2010
Q4

Annual

Q1

Q2

2011

Q3

Q4

Aug

Q1

Q2

Jul

Aug

23.51 23.75 23.63 23.83 23.04 24.17 24.12 23.99 24.01 23.46 24.57 24.64 24.50

Employment rate (%)

58.6

59.1

58.7

58.7

57.0

59.6

59.3

58.9

59.1

57.4

59.9

60.0

59.6

(seasonally adjusted)

58.6

58.7

58.5

58.7

58.3

58.9

58.9

58.6

58.9

58.8

59.2

59.1

59.5

Employment growth (y-o-y, thousand)

-72

-1

-6

323

132

433

369

358

386

423

402

335

490

(Excluding agriculture, forestry & fishery)

-34

24

110

405

296

518

414

393

421

451

39

390

529

-126 -143

-49

191

61

172

262

269

297

228

112

40

-28

- Construction

-91 -103 -107

33

-61

44

92

57

109

-3

-41

-55

-1

- Services

179

261

200

313

325

83

80

36

224

331

410

572

- Agriculture, forestry & fishery

-38

-25 -116

-82 -164

-85

-45

-35

-35

-28

3

-55

-38

- Wage workers

247

356

385

517

371

623

541

532

569

519

421

439

462

∙Regular workers

383

386

515

697

651

766

671

699

679

605

621

611

559

22

125

105

-34

-37

42

-26 -114

5

-88 -137

-78

-91

- Manufacturing

∙Temporary workers

261

∙Daily workers

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

-53 -115

2

- Non-wage workers

-319 -357 -391 -194 -239 -189 -172 -174 -183

-96

∙Self-employed workers

-259 -276 -279 -118 -106

- Male

-94

-6

-19 -104

-63

-28

-91 -130 -146 -133 -115

-39

-39

53

31

34

89

181

117

188

207

212

218

266

221

175

267

- Female

-103

-34

-94

142

15

245

163

146

167

157

181

160

223

- 15 to 29

-127 -123

-77

-43

-12

-58

-44

-57

-55

-49

-74

-44

39

- 30 to 39

-173 -169 -149

-4

-42

-13

21

17

37

-34

-13

-52

-93

- 40 to 49

-24

-30

-46

29

-21

48

40

50

44

77

59

63

61

- 50 to 59

198

211

230

294

251

342

295

287

309

286

294

269

300

54

109

37

47

-44

114

57

60

50

143

137

98

182

- 60 or more
Source: Statistics Korea

22

October 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 August decreased by 69,000 year-on-year to 762,000
and the year-on-year unemployment rate (seasonally adjusted) dropped 0.3 percentage
points to 3.0 percent.
The youth unemployment rate fell 0.7 percentage points year-on-year to 6.3 percent. On a
month-on-month basis, the youth unemployment rate (seasonally adjusted) went down 0.6
percentage points to 6.7 percent, falling for the fifth consecutive month.

2009

2010

Annual

Q3

Q4

Annual

Number of unemployed (thousand)

889

886

817

920 1,130

Unemployment growth (y-o-y, thousand)

119

134

60

31

222

- Male

80

95

25

-7

- Female

40

39

36

Unemployment rate (%)

3.6

3.6

(Seasonally adjusted)

3.6

- 15 to 29

8.1

- 30 to 39
- 40 to 49

Q1

2011

Q2

Q3

Q4

Aug

Q1

Q2

Jul

868

873

808

831 1,028

-75

-13

-10

-74

-101

83

-47

-48

-16

-83

38

139

-29

35

6

3.3

3.7

4.7

3.5

3.5

3.7

3.5

3.7

4.3

3.5

8.1

7.6

8.0

9.5

7.7

3.6

3.5

3.3

3.5

3.9

2.4

2.4

2.3

2.5

2.9

Aug

865

837

762

-3

-95

-69

-70

-32

-68

-37

9

-32

29

-27

-32

3.3

3.3

4.2

3.4

3.3

3.0

3.6

3.4

3.4

3.9

3.4

3.3

3.1

7.6

7.1

7.0

8.8

7.9

7.6

6.3

3.6

3.5

3.2

3.6

4.0

3.5

3.1

3.4

2.3

2.5

2.2

2.3

2.5

2.1

2.0

2.0

- 50 to 59

2.5

2.5

2.2

2.5

3.2

2.1

2.3

2.3

2.1

2.7

2.0

2.0

2.0

- 60 or more

1.6

1.6

1.5

2.8

5.8

2.1

2.0

1.9

1.8

4.5

2.3

2.5

1.8

Source: Statistics Korea

The economically inactive population in August was up 47,000 from a year earlier to
15,860,000. Meanwhile, the labor force participation rate rose 0.3 percentage point year-onyear to 61.4 percent.
The number of workers quitting jobs due to rest, time-off and leisure (up 162,000),
housework (up 78,000), and childcare (up 19,000) increased, while those who quit jobs due
to education (down 125,000) and old age (down 12,000) decreased.

2009
Annual

Q3

2011

2010
Q4

Annual

Q1

Q2

Q3

Q4

Aug

Q1

Q2

Jul

Aug

Economically inactive population (million) 15.70 15.53 15.83 15.84 16.25 15.49 15.66 15.96 15.82 16.39 15.56 15.61 15.86
Labor force participation rate (%)

60.6

61.3

60.7

61.0

59.8

61.8

61.5

60.8

61.1

59.9

62.0

62.0

61.4

(seasonally adjusted)

60.6

60.9

60.6

61.0

61.0

61.0

61.1

60.8

61.0

61.1

61.3

61.1

61.3

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

447

374

456

143

166

146

128

133

172

138

66

231

47

40

19

15 -125 -118 -126 -149 -107

-93

-44

-16

7

19

- Housework

148

100

235

201

237

175

203

189

118

130

27

104

78

- Education

31

11

-36

12

-74

23

46

55

38

-16

-39

-61

-125

88

105

92

80

193

59

43

25

123

94

123

-56 -187

-27

15

-27

- Childcare

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

24

October 2011

24 -103
-58

241

-58

-22

-12

163

215

162

8-4

Employment rate
Source: Statistics Korea (employment trend)

8-5

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 in September fell 5.9 percent month-on-month to 1,770 points
from the previous month’s 1,880 points. Due to weak investment sentiment affected by
worries over the spread of European debt crisis and the possibility of a double dip recession,
the Korean stock market recorded 1,653 points on September 26, the lowest level this year.
The index decelerated the decline thereafter, helped by mounting expectations of policy
coordination in Europe as German lawmakers approved a bill to increase the size of the
European Financial Stability Facility (EFSF) on September 29.
Foreign investors maintained a net-selling position but the sales volume decelerated to 1.4
trillion won in September from the previous month’s 5.1 trillion won.
(End-period, point, trillion won)
KOSPI
Aug 2011

Sep 2011

Stock price index

1,880.1

1,769.7

Market capitalization

KOSDAQ
Change1

Aug 2011

Sep 2011

-110.5 (-5.9%)

493.4

449.7

Change1
-43.8 (-8.9%)

1,062.7

1,001.9

-60.7 (-5.7%)

102.2

93.2

-9.0 (-8.8%)

Average daily trade value

8.0

6.3

-1.7 (-21.0%)

2.6

2.2

-0.4 (-15.7%)

Foreign stock ownership

32.0

32.9

+0.9 (+2.9%)

9.9

9.9

-0.1 (-0.6%)

1. Change from the end of the previous month

9.2 Exchange rate
The won/dollar exchange rate in September increased 111.3 won to wrap up the month at
1,178.1 won from 1,066.8 won at the end of August.
The won/dollar exchange rate significantly rose from end-August due to worries over a
double dip recession in the US. Resurfacing eurozone crisis, highlighted by possible Greek
default and concerns over the spread of European financial crisis to France and Italy also
contributed to the rise.
Due to flight to safety assets caused by the international financial market jitters, the yen
strengthened and the won/100 yen exchange rate rose 145.6 won from the end of the
previous month.
(End-period)
2007

2008

2009

2010

Dec

Dec

Dec

Dec

Aug

2011
Sep

Change1

Won/Dollar

936.1

1,259.5

1,164.5

1,134.8

1,066.8

1,178.1

-3.7

Won/100 Yen

828.6

1,396.8

1,264.5

1,393.6

1,393.4

1,539.0

-9.4

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

October 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 bond yields gained 4 basis points in September to 3.66 percent from the
previous month’s 3.62 percent. Despite flight to safety assets affected by worries over global
economic slowdown, the Treasury bond yields rose due to spreading concerns over the
outflow of foreign investment funds amid unstable financial markets. Foreign investors’ netselling of the Treasury bonds futures also contributed to the rise.
(End-period)

Call rate (1 day)

2006

2007

2008

2009

2010

2011

Dec

Dec

Dec

Dec

Dec

Jul

Aug

Sep

4.60

5.02

3.02

2.01

2.51

3.27

3.27

3.28

Change1
+1

CD (91 days)

4.86

5.82

3.93

2.88

2.80

3.59

3.59

3.58

-1

Treasury bonds (3 yrs)

4.92

5.74

3.41

4.44

3.38

3.85

3.49

3.55

+6

Corporate bonds (3 yrs)

5.29

6.77

7.72

5.56

4.27

4.54

4.23

4.36

+13

Treasury bonds (5 yrs)

5.00

5.78

3.77

4.98

4.08

4.02

3.62

3.66

+4

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

9.4 Money supply & money market
The M2 (monthly average) in July expanded 3.2 percent from a year earlier.
Despite slightly contracted government credit, the month-on-month M2 increased 3.0
percent from the previous month, helped by expanded private sector credit as sell-off
pressure on equity-type funds has eased.
(Percentage change from same period in previous year, average)

M1

2

2008

2009

2010

2011

Annual

Annual

Annual

Q1

Q2

Q3

Q4

Apr

May

Jun

Jul

Jul1

-1.8

16.3

11.8

14.5

10.7

10.8

11.2

9.6

7.4

5.4

3.84

419.04

4

1,705.54
2,208.64

M2

14.3

10.3

8.7

9.4

9.5

8.6

7.4

3.9

3.7

3.0

3.2

Lf

11.9

7.9

8.2

8.5

9.1

8.2

7.1

4.5

4.4

4.1

4.64

3

1. Balance at end July 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 August, bank deposits decelerated the increase while asset management company (AMC)
deposits accelerated the rise. It was attributable to the slower growth in time deposits in line
with the lowering of interest rates and accelerated decline in instant access account deposits
due to payments of corporate taxes.
Asset management company (AMC) deposits expanded due to increases in equity-type
funds and fund inflows from banks.
(Monthly change, end-period, trillion won)
2009

2010

2011

Annual

Jul

Annual

Jul

Jun

Jul

Aug

Aug1

Bank deposits

54.8

-0.6

36.9

3.5

6.7

7.1

3.9

1,079.2

AMC deposits

-27.6

-2.2

-16.7

-6.5

-1.9

0.6

4.4

1,306.1

1. Balance at end August, trillion won

28

October 2011

9-4

Interest rates
Source: The Bank of Korea

9-5

Total money supply
Source: The Bank of Korea

9-6

Share of deposits by financial sector (M3 as of year-end)
Source: The Bank of Korea
* Retail finance: Mutual savings banks & National Credit Union Federation of Korea, Others: Investment banks, post office savings, etc.

Economic Bulletin

29

10. Balance of payments
Korea’s current account surplus (preliminary) in August posted US$ 400 million,
decelerating the growth from the previous month’s US$ 3.77 billion due to seasonal factors
such as summer vacation. However, the surplus is similar to the most recent five-year
August average of US$ 490 million.
Current account balance (monthly average from 2006 to 2010, US$ billion)
3.04 (Jun)

2.58 (Jul)

0.49 (Aug)

2.91 (Sep)

3.73 (Oct)

The goods account surplus continued the upward trend helped by robust exports in
petroleum products and automobiles. The surplus, however, decelerated to US$480 million
from the previous month’s US$4.73 billion led by seasonal factors such as fewer working
days during the summer vacation period.
The service account deficit narrowed to US$580 million from the previous month’s US$690
million as the travel account improved.
The primary income account surplus widened to US$700 million from the previous month’s
US$70 million due to decreased dividend payments. Meanwhile, the secondary income
account deficit contracted to US$200 million from the deficit of US$340 million a month
earlier, affected by increased inward remittance.
(US$ billion)
2009

2010

2011

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Jul

Aug1

Current account

32.79

28.21

0.26

8.86

9.93

9.16

2.72

5.49

3.77

0.40

- Goods balance

37.87

41.90

4.79

12.24

12.54

12.34

5.95

7.66

4.73

0.48

- Service balance

-6.64

-11.23

-4.20

-1.87

-2.96

-2.20

-2.54

-0.80

-0.69

-0.58

- Income balance

2.28

0.77

0.55

-1.01

1.30

-0.07

0.39

-0.82

0.07

0.70

- Current transfers

-0.71

-3.23

-0.87

-0.50

-0.95

-0.91

-1.08

-0.55

-0.34

-0.20

1. Preliminary
Source: The Bank of Korea

The capital and financial account (preliminary) in August registered an outflow of US$2.37
billion, slightly decreasing from the previous month’s outflow of US$2.48 billion.
Capital & financial account balance (US$ billion)
0.52 (Mar 2011)

0.39 (Apr)

-3.96 (May)

-3.25 (Jun)

-2.47 (Jul)

-2.33 (Aug1)

1. Preliminary

The direct investment account turned to an outflow of US$1.04 billion from the previous
month’s inflow of US$330 million as overseas direct investment by locals increased.
The portfolio investment account shifted to an outflow of US$2.92 billion from the previous
month’s inflow of US$9.26 billion as foreign funds registered a huge outflow in the
equity market.
The financial derivatives account turned to an outflow of US$1.87 billion from the previous
month’s inflow of US$530 million. Meanwhile, the other investment account shifted to an
inflow of US$4.0 billion from the previous month’s outflow of US$6.58 billion as local banks’
borrowing increased.
The current account in September is expected to expand the surplus, helped by increased
exports to major trade markets such as the US, EU and ASEAN.

30

October 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
Inflation decelerated considerably in September, with consumer prices rising 4.3 percent
year-on-year and 0.1 percent month-on-month. The year-on-year increase rate was 1.0
percentage point lower than the previous month’s 5.3 percent. The prices of most
agricultural, livestock & fishery products, as well as personal services, have stabilized.
However, the prices of some agricultural products, durable goods and rent continued to
move upward.
Core consumer prices, which exclude oil and agricultural products, rose 3.9 percent year-onyear and 0.2 percent month-on-month. Consumer prices for basic necessities, a barometer
of perceived consumer prices, were up 3.8 percent compared to the same month of the
previous year.

Consumer price inflation
2010

2011

Aug

Sep

Oct

Nov

Dec

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Month-on-Month (%)

0.3

1.1

0.2

-0.6

0.6

0.8

0.5

0.0

0.0

0.2

0.7

0.9

0.1

Year-on-Year (%)

2.6

3.6

4.1

3.3

3.5

4.5

4.7

4.2

4.1

4.4

4.7

5.3

4.3

Core consumer prices (y-o-y)

1.8

1.9

1.9

1.8

2.0

3.1

3.3

3.2

3.5

3.7

3.8

4.0

3.9

(m-o-m)

0.2

0.3

0.0

0.1

0.3

0.7

0.3

0.2

0.5

0.3

0.3

0.3

0.2

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

2.6

4.1

4.8

3.6

3.9

5.2

4.9

4.1

3.8

4.3

4.8

5.2

3.8

Source: Statistics Korea

While most agricultural, livestock & fishery product prices fell (down 0.1%, m-o-m), those of
chili powder and some other agricultural products rose.
Prices of agricultural, livestock & fishery products in September (m-o-m, %)
Grape (-27.6), Chinese cabbage (-11.1), turnip (-5.4), pork (-4.4), mackerel (-0.2), rice (0.6), egg (1.6), chili
powder (38.2)

Prices of industrial products continued to rise (up 0.5%, m-o-m), led by gold accessories, in
particular gold rings (up 8.1%, m-o-m).
Public service charges fell (down 0.1%, m-o-m), as the rise in water fees (up 0.2%, m-o-m) was
offset by the decrease in mobile service fees (down 1.4%, m-o-m). Price increases in personal
services (down 0.2%, m-o-m), which include dining out costs, gradually stabilized.

Consumer price inflation in major sectors

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

Total

Agricultural,
livestock & fishery
products

0.1

0.1

0.5

-0.1

0.08

0.01

0.18

0.00

Industrial
products

Oil
products

Housing
rents

Public
utility

Personal
services

0.4

-0.1

-0.2

0.04

-0.01

-0.06

Year-on-Year (%)

4.3

2.3

7.7

16.5

4.7

0.6

3.2

Contribution (%p)

4.25

0.23

2.40

0.96

0.42

0.10

1.11

Source: Statistics Korea

32

October 2011

11-1 Prices
Source: Statistics Korea (consumer prices, core inflation) & The Bank of Korea (producer prices)

11-2 Consumer price inflation
Source: Statistics Korea (consumer price trend)

11-3 Contribution to consumer price inflation
Source: Statistics Korea (consumer price trend)

Economic Bulletin

33

11.2. International oil and commodity prices
In September, international oil prices inched up while domestic oil product prices edged
down from the previous month.
Although the monthly average of international oil prices increased month-on-month, weekly
prices fell after the first week of September, due to fears over recession caused by financial
difficulties in Europe.
Dubai crude in September (per week, US$/barrel)
108.4 (week 1)

106.2 (week 2)

105.7 (week 3)

101.6 (week 4)
(US$/barrel, period average)

Dubai crude

2008

2009

2010

2011

Annual

Annual

Annual

Mar

Apr

May

Jun

Jul

Aug

Sep

94.3

61.9

78.1

108.5

115.8

108.0

107.5

110.2

105.0

105.7

Brent crude

97.5

61.7

79.7

114.6

123.3

114.3

114.0

116.8

110.0

111.5

WTI crude

99.9

61.9

79.5

103.0

110.0

101.3

96.3

97.3

86.3

85.6

Source: Korea National Oil Corporation

Domestic oil product prices fell by a small margin in September, as the effect of lower
international oil prices in August took effect gradually over the course of 1~2 weeks.
However, weekly prices continued the upward trend due to the weakening won.
Gasoline prices in September (per week, won/liter)
1,935 (week 1)

1,942 (week 2)

1,947 (week 3)

1,956 (week 4)

Won/dollar exchange rate in September (per week)
1,069 (week 1)

1,095 (week 2)

1,141 (week 3)

1,181 (week 4)
(Won/liter, period average)

2008

2009

2010

2011

Annual

Annual

Annual

Mar

Apr

May

Jun

Jul

Aug

Sep

Gasoline prices

1,692

1,601

1,710

1,939

1,951

1,938

1,915

1,935

1,946

1,945

Diesel prices

1,614

1,397

1,503

1,756

1,793

1,773

1,736

1,754

1,758

1,746

Source: Korea National Oil Corporation

Prices of international commodities decreased in September, due to recession fears led by a
possible European financial crisis and poor economic indicators from major countries.
Despite production disruptions caused by strikes at copper mines in Indonesia and Peru,
non-ferrous metal prices fell due to concerns that a recession would lead to lower demand.
Prices of non-ferrous metals in September (m-o-m, %)
Electrolytic copper (-7.5), nickel (-7.4), tin (-7.3), aluminum (-3.8)

International grain prices fell due to the possibility of slow demand amid increased
production and inventories.
The world grain production outlook for 2011~12 has been revised to 2.267 billion tons in the
latest USDA reports released on September 12, up 0.1 percent from the previous month. The
outlook for inventories revised up 2.1 percent month-on-month to 442 million tons.
Prices of grain in September (m-o-m, %)
Wheat (-5.6), corn (-4.2), soybean (-2.2), raw sugar (-5.7)

Reuters index*

(Period average)

2008

2009

Annual

Annual

Annual

2010
Mar

Apr

May

Jun

Jul

Aug

Sep

2,536

2,079

2,553

3,221

3,246

3,128

3,143

3,145

3,038

2,978

* A weighted average index of 17 major commodities

34

October 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 continued in September, with prices
rising 0.7 percent month-on-month.
Apartment sales prices in the Seoul metropolitan area remained unchanged from the
previous month.
Apartment sales prices in areas excluding the Seoul metropolitan area showed a persistent
upward trend, led by Busan (up 1.2%, m-o-m), Gwangju (up 1.8%, m-o-m) and North
Chungcheong Province (up 2.3%, m-o-m). Apartment prices in 5 metropolitan cities and
other cities climbed 1.4 percent and 1.5 percent each, surpassing the national average.

Nationwide apartment sales prices

(Percentage change from previous period)

2008 2009 2010

2011

Annual Annual Annual Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

0.6

0.7

Sep Aug 291 Sep 51 Sep 191 Sep 261

Nationwide

2.3

1.6

2.5

0.6

1.1

1.3

1.2

1.0

0.7

Seoul

3.2

2.6

-2.2

0.2

0.3

0.1

0.0

-0.1

-0.1

-0.2 -0.1

-0.1 -0.04 -0.02 -0.02 -0.04

Gangnam2

-1.9

3.9

-1.8

0.2

0.4

0.2

0.0

-0.1

-0.2

-0.2 -0.1

-0.1 -0.03 -0.02 -0.02 -0.02

Gangbuk3

9.4

0.9

-2.7

0.1

0.2

0.1

0.0

0.0 -0.1

-0.1 -0.1

-0.1 -0.04 -0.03 -0.01 -0.06

Seoul metropolitan area

2.9

0.7

-2.9

0.1

0.3

0.3

0.1

0.0 -0.1

-0.1

0.0

0.0 -0.01 0.00 0.00 -0.01

5 metropolitan cities

1.0

2.8

8.7

1.2

2.0

2.3

2.4

2.2

1.4

1.4

1.4

1. Weekly trends

2. Upscale area of Southern Seoul

3. Northern Seoul

1.6

0.7

0.15 0.17 0.21 0.19

0.30 0.34 0.44 0.41

Source: Kookmin Bank

Nationwide apartment rental prices in September were up 1.8 percent, accelerating from the
previous month’s 1.5 percent. The prices slightly picked up in Seoul (up 2.2%, m-o-m),
Gyeonggi Province (up 2.1%, m-o-m) and the Seoul metropolitan area (up 2.0%, m-o-m).
Apartment rental price increase in major districts in Seoul (m-o-m, %)
Gangnam (2.1), Songpa (2.5), Gangdong (3.0), Nowon (3.3)

Nationwide apartment rental prices

(Percentage change from previous period)

2008 2009 2010

2011

Annual Annual Annual Jan

Nationwide
Seoul
Gangnam
Gangbuk3
Seoul metropolitan area
5 metropolitan cities
1. Weekly trends

Mar

Apr

May

Jun

Jul

Aug

Sep Aug 291 Sep 51 Sep 191 Sep 261

0.8

4.5

8.8

1.1

2.0

2.3

1.6

1.1

0.8

1.0

1.5

1.8

0.41 0.44 0.52 0.46

-1.8

8.1

7.4

1.1

2.1

1.8

0.7

0.3

0.5

1.1

1.7

2.2

0.54 0.62 0.64 0.50

-3.6 10.4

2

Feb

8.8

1.3

1.9

1.4

0.6

0.3

0.6

1.2

1.7

2.1

0.48 0.63 0.58 0.47

0.5

5.4

5.6

1.0

2.4

2.3

0.8

0.4

0.2

1.0

1.8

2.3

0.61 0.61 0.71 0.54

-0.4

5.6

7.2

1.0

2.1

2.4

1.2

0.5

0.5

0.9

1.6

2.0

0.47 0.50 0.60 0.50

3.9 12.0

1.3

2.1

2.2

2.2

1.9

1.3

1.0

1.3

1.4

0.32 0.34 0.40 0.39

1.6

2. Upscale area of Southern Seoul

3. Northern Seoul

Source: Kookmin Bank

Apartment sales transactions in August increased 3.1 percent from the previous month’s
42,718 to 44,049. The transactions were up 42.1 percent from 31,007 a year earlier.

Apartment sales transactions
2007

2008

(Monthly average, thousand)

2009

2010

Annual Annual Annual Annual Aug
Nationwide

38

39

44

40

31

Source: Ministry of Land, Transport and Maritime Affairs

36

October 2011

2011

Sep

Oct

Nov

34

41

54

Dec Jan
63

45

Feb

Mar

52

59

Apr May
56

48

Jun

Jul

Aug

47

43

44

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 August rose for the tenth consecutive month (up 0.09%, m-o-m),
but still 1.44 percent lower than the pre-crisis peak reached in October 2008. Land prices
were higher compared to the same month of the previous year, while the pace of increase
decelerated nationwide.
Monthly land prices in Seoul (up 0.05%), the Seoul metropolitan area (up 0.10%), Gyeonggi
Province (up 0.15%) and Incheon (up 0.06%) continued to rise.
Land price increases in Seoul metropolitan area (m-o-m, %)
0.12 (Mar 2011)

0.11 (Apr)

0.10 (May)

0.10 (Jun)

0.10 (Jul)

0.10 (Aug)

Land prices in areas excluding the Seoul metropolitan area rose 0.09 percent month-onmonth in August, continuing the upward trend since October 2010.
Land price increases in areas excluding Seoul metropolitan area (m-o-m, %)
0.08 (Mar 2011)

0.07 (Apr)

0.09 (May)

0.09 (Jun)

0.10 (Jul)

Land prices by region

0.09 (Aug)

(Percentage change from previous period)

2007 2008

2009

2010

Annual Annual Annual Q3

Q4

Annual Q2

2011

Q3

Q4

Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Nationwide

3.88

-0.31 0.96

0.88 0.94

1.05 0.29

-0.05 0.11 0.09 0.09

0.11

0.10

0.10

0.10

0.10

0.09

Seoul

5.88

-1.00 1.40

1.30 0.81

0.53 0.02

-0.25 0.39 0.12 0.12

0.15

0.12

0.09

0.07

0.07

0.05

Gyeonggi

4.22

-0.26 1.22

1.13 1.36

1.49 0.53

-0.08 0.07 0.08 0.08

0.10

0.11

0.12

0.14

0.15

0.15

Incheon

4.86

1.37 1.99

1.16 1.70

1.43 0.43

-0.10 0.02 0.06 0.06

0.06

0.06

0.06

0.06

0.05

0.06

Source: Korea Land & Housing Corporation

Nationwide land transactions in August recorded 196,000 land lots, down 0.2 percent from
the previous month and up 19.9 percent from 163,000 a year earlier. Land transactions were
7.0 percent more than the five-year August average of 183,000 land lots.
Monthly land transactions decreased significantly in areas such as Incheon (down 13.9%),
Busan (down 6.6%), Ulsan (down 10.1%), and North Chungcheong Province (down 10.9%).

Land sales transactions

(Land lot, thousand)

2007 2008

2009

2010

2011

Annual 1 Annual1 Annual1 Oct Nov Dec Annual 1 Aug Nov Dec Jan Feb Mar Apr May Jun
Nationwide

Jul

Aug

208

208

203

212

207

241

187

163

208

257

191

176

244

226

212

207

196

196

Seoul

33

26

22

25

19

21

16

12

18

24

18

17

23

19

18

18

15

17

Gyeonggi

49

45

46

52

48

58

41

36

45

58

46

38

52

46

43

40

40

39

Incheon

13

13

10

14

11

12

8

7

9

11

8

9

13

11

13

10

11

9

1. Monthly average
Source: Korea Land & Housing Corporation

38

October 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 August decreased 0.3 percent month-on-month and increased 3.9
percent year-on-year. Output in services (up 0.5%, m-o-m), construction (up 1.1%, m-o-m)
and public administration (up 1.8%, m-o-m) increased, but lower output in mining &
manufacturing (down 1.9%, m-o-m) contributed to the overall decrease in industrial output.
The cyclical indicator of the coincident composite index remained unchanged in August.
Five components of the coincident composite index, such as the volume of imports and
service activity, rose from the previous month, while three components fell, including mining
and manufacturing.
Components of coincident composite index in August (m-o-m)
Volume of imports (1.2%), service activity (0.6%), wholesale & retail sales (0.2%), domestic shipment (0.2%),
number of non-farm payroll employment (0.2%), manufacturing operation ratio (-0.3%), mining &
manufacturing production index (-0.5%), value of construction completion (-1.1%)

The year-on-year leading composite index also stayed flat from the previous month.
Among the components of the leading composite index, three components, including the
value of construction orders, rose while seven other factors, such as the composite stock
price index and ratio of job openings to job seekers, dropped.
Components of the leading composite index in August (m-o-m)
Value of construction orders received (17.1%), liquidity in the financial institutions (0.8%), net terms of trade
(0.6%), value of capital goods imports (-0.1%), spreads between long & short term interest rates (-0.1%p),
indicator of inventory cycle (-2.2%p), value of machinery orders received (-2.3%), consumer expectations
(-2.6p), ratio of job openings to job seekers (-3.4%p), composite stock price (-3.8%)

2011
Jan

Feb

Mar

Apr

May1

Jun1

Jul1

Aug1

Industrial output (m-o-m, %)

3.2

-4.7

2.8

-1.3

1.7

2.1

-2.4

-0.3

(y-o-y, %)

8.4

0.1

3.4

3.2

4.5

4.2

2.7

3.9

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

1.5

0.1

0.4

-0.3

0.8

0.8

0.7

0.4

100.8

100.6

100.6

99.9

100.2

100.6

100.9

100.9

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

1.0

-0.2

0.0

-0.7

0.3

0.4

0.3

0.0

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

0.6

-0.2

-0.3

-0.4

0.5

0.5

0.5

0.2

12 month smoothed change
in leading composite index (%)

3.0

2.3

1.6

1.0

1.3

1.7

2.0

2.0

(m-o-m, %p)

0.1

-0.7

-0.7

-0.6

0.3

0.4

0.3

0.0

1. Preliminary

40

October 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
2012 Budget and 2011-2015 Fiscal Management Plan

The Korean government unveiled the 2012 budget based on the mid-term fiscal management
plan between 2011 and 2015.

2011-2015 Fiscal management plan
Fiscal conditions between 2011 and 2015
Both tax revenue and nontax revenue including fund revenue are expected to increase
between 2011 and 2015, with the retention of the highest bracket of income and corporate tax
rates, withdrawal of existing tax exemptions and reductions, government efforts to increase
returns on its investment in shares, and a rise in social security insurance contributions.
* Tax revenue (trillion won): 170.5 (2010)
* Nontax revenue (trillion won): 24.3 (2010)
* Fund revenue (trillion won): 96.0 (2010)

187.6 (2011)
24.5 (2011)
102.2 (2011)

204.2 (2012)

221.1 (2013)

30.2 (2012)

29.9 (2013)

108.4 (2012)

114.2 (2013)

241.7 (2014)
29.1 (2014)
120.2 (2014)

Government expenditures are expected to increase, with rising mandatory expenditures such
as support for local governments, and payment of national pensions and interest on
sovereign debts. They are also expected to rise as budgets for boosting the real economy and
bridging gaps between large enterprises and small- and medium-sized enterprises(SMEs)
increase, and investment in R&D, education and others expands.

42

October 2011

Between 2011 and 2015, fiscal conditions are projected to improve compared to those
between 2010 and 2014, as the 2010 fiscal balance posted a deficit of 1.1 percent of GDP, up
from the expected deficit of 2.7 percent. Sovereign debts also declined 2.7 percentage
points to 33.4 percent of GDP rather than the originally forecast 36.1 percent, a drop which
will set favorable conditions for reaching the sovereign debt target of the lower half of the 30
percent range in 2014.

Fiscal management between 2011 and 2015
1. Key directions
The fiscal management between 2011 and 2015 is aimed at recovering fiscal soundness to the
pre-crisis level, while supporting the livelihood of the working class and investing for the future.
Considering uncertainties in the global economy and the ageing population, it is required to
achieve a fiscal balance as soon as possible. Backed by the fiscal condition, with a deficit of
1.1 percent of GDP in 2010 compared with the original outlook of a 2.7 percent deficit, the
Korean government plans to achieve a fiscal balance in 2013.
Government support for working classes will be focused on customized welfare to facilitate
working such as daycare and education, while government investment is to be centered on
nurturing future growth engines such as green growth-related industries and cultivating
human resources.
2. Fiscal management
Fiscal revenue including budgets and funds are expected to rise 7.2 percent a year on
average between 2011 and 2015. Tax revenue accounting for most of the revenue budget is
projected to rise by an average of 8.7 percent per year during the period, 1.3 percentage
points more than the country’s GDP forecast of 7.4 percent.

<Fiscal revenue projection, 2011-2015>

(trillion won, %)

2011

2012

2013

2014

2015

Change1 (%)

Fiscal revenue

314.4

344.1

375.7

395.8

415.3

7.2

- Revenue budget

212.2

234.5

259.4

273.9

286.8

7.8

187.6

205.9

224.2

242.6

262.3

8.7

24.5

28.6

35.2

31.3

24.5

0.0

102.2

109.6

116.3

121.9

128.5

5.9

Tax revenue
Nontax revenue
- Funds revenue
1. Annual average

To achieve a fiscal balance in 2013, fiscal expenditures will be increased at an average
annual rate of 4.8 percent, 2.4 percentage points less than the fiscal revenue increase rate of
7.2 percent, while budget expenditures will be increased by 4.7 percent and funds
expenditures 5.1 percent.
Economic Bulletin

43

<Fiscal expenditures projection, 2011-2015>

(trillion won, %)

2011

2012

2013

2014

2015

Change1 (%)

Fiscal expenditures

309.1

326.1

341.9

357.5

373.1

4.8

- Budget expenditures

216.3

227.0

239.1

248.9

260.0

4.7

- Funds Expenditures

92.7

99.1

102.9

108.6

113.1

5.1

1. Annual average

The consolidated fiscal balance, excluding social security funds which have a surplus account,
is forecast to swing into a surplus in 2013 and maintain a moderate surplus from 2014.
Meanwhile, sovereign debts are expected to be in the lower half of the 30 percent range to
GDP in 2013, and to be managed in the upper half of the 20 percent range from 2014.

<Fiscal balance and sovereign debts, 2011-2015>
Consolidated fiscal balance excluding social security funds

(trillion won, %)
2011

2012

2013

2014

2015

-25.0

-14.3

0.2

3.1

5.3

-2.0

-1.0

0.0

0.2

0.3

422.7

448.2

460.0

466.4

471.6

33.3

32.8

31.3

29.6

27.9

Percentage to GDP, %
Sovereign debts
Percentage to GDP, %

Tax revenue as percentage of GDP is expected to be in the 19 percent range between 2011
and 2015, reaching 19.7 percent in 2015 on the back of the withdrawal of the current tax
exemption and reduction. Tax revenue including social security contributions is projected to
be 25.7 percent to GDP in 2015.

<Tax revenue as percentage of GDP projections>

(%)

2011

2012

2013

2014

2015

Tax revenue as percentage of GDP

19.3

19.2

19.4

19.5

19.7

Tax revenue including social security
contributions as percentage of GDP

25.1

25.1

25.3

25.5

25.7

2012 Budget
Current fiscal situation and future tasks
Although the fiscal condition has been improved as Korea successfully rode out the 2008
financial crisis, the country needs to increase its fiscal soundness due to growing external
uncertainties.

2007

2008

2009

2010

Fiscal balance (percentage to GDP, %)

0.7

-1.1

-4.1

-1.1

National debt (percentage to GDP, %)

30.7

30.1

33.8

33.4

44

October 2011

Despite the country’s economic growth of 6.2 percent in 2010 that was higher than the
expected 5.8 percent, there is a growing need to create more jobs and secure the livelihoods
of vulnerable groups. In this respect, the 2012 budget centers on creating more jobs and
improving the welfare system, while at the same time establishing a basis for achieving a
fiscal balance in 2013.
Four main focuses of the 2012 budget
1. Job creation
The 2012 budget puts first priority on creating jobs and supporting those who want to work
but are faced with difficult situations, by providing customized welfare services such as
expanded daycare services or visiting carer services. This is to ensure that the virtuous cycle
of work, economic growth, and better welfare systems can take root.
2. Better welfare
The 2012 budget focuses on daycare, education, housing, and health care, so it can provide
customized welfare services in each stage of people’s lives. The welfare system will be
improved in a way for those who want to work to focus on working by providing the most
needed welfare services in each stage of life.
3. Stronger domestic demand and development of future growth engines
The 2012 budget puts an emphasis on increasing domestic demand through expanded
social overhead capital (SOC) investment including improvement of water quality and
through more sophisticated service industries, and also on developing future growth
engines by nurturing green growth-related industries and cultivating human resources.
4. Pursuit of budget balance in 2013
The Korean government will keep the spending increase at the lowest possible level until the
country achieves a budget balance in 2013. In 2011, the spending increase was 2.6
percentage points less than the revenue increase.
Budgets and budget allocation
1. Spending
The total spending of budgets and funds in 2012 will be 326.1 trillion won, a 5.5 percent
increase from the 2011 spending, but 4.0 percentage points less than the revenue increase
rate of 9.5 percent.

<2012 spending>

(trillion won, %)
2011 budget

Increase from the
previous year (%)

2012 budget (bill)

Increase from the
previous year (%)

Total spending

309.1

5.5

326.1

5.5

- budgets

216.3

5.4

227.0

4.9

92.7

6.0

99.1

6.9

- funds

Economic Bulletin

45

2. Revenue
The total revenue is expected to be 344.1 trillion won in 2012, growing 9.5 percent from 2011.

<2012 revenue>

(trillion won, %)
2011 budget

Increase from the
previous year (%)

2012 budget (bill)

Increase from the
previous year (%)

314.4

8.1

344.1

9.5

212.1
(187.6)

8.9
(10.1)

234.5
(205.9)

10.6
(9.7)

- funds

102.2

6.5

109.6

7.2

Total tax revenue as
percentage of GDP (%)

19.3

-

19.2

-

Total revenue
- budgets
(tax revenue)

3. Fiscal balance and national debt
The fiscal balance in 2012 is projected to post a deficit of 1.0 percent of GDP, improving 1.0
percent compared with a 2.0 percent deficit in 2011. The national debt is expected to
decrease 2.3 percentage points to 32.8 percent to GDP, down from 35.1 percent in 2011.

<2012 fiscal balance and national debt>

(trillion won, %)
2011 budget

2012 budget (bill)

Consolidated fiscal balance excluding social security funds

-25.0

-14.3

(Percentage to GDP, %)

(-2.0)

(-1.0)

5.3

18.0

National debt

435.5

448.2

(Percentage to GDP, %)

(35.1)

(32.8)

Consolidated fiscal balance

4. Balanced budget in 2013
A budget balance is expected to be achieved in 2013.

<Expected budget balance>

(trillion won, %)
2011

2012

2013

2014

2015

Annual increase

Total revenue

314.4

344.1

375.7

395.8

415.3

7.2

Total spending

309.1

326.1

341.9

357.5

373.1

4.8

Fiscal balance
(Percentage to GDP, %)

-25.0
(-2.0)

-14.3
(-1.0)

0.2
(0.0)

3.1
(0.2)

5.3
(0.3)

46

October 2011

5. Budget allocation

<Budget allocation by area>

(trillion won, %)
2011 budget
(A)

2012 budget bill
(B)

Change
(B-A)

Change
(B/A, %)

R&D

14.9

16.0

1.1

7.3

Industries, SMEs, energy
(SMEs)

15.2
(6.0)

15.2
(6.2)

0.1
(0.2)

0.6
(3.1)

SOC
(excluding Four Major River Restoration Projects)

24.4
(21.4)

22.6
(22.3)

-1.8
(0.9)

-7.3
(4.5)

Agriculture, fishery, food
(agriculture)

17.6
(15.1)

18.1
(15.8)

0.5
(0.7)

2.7
(4.7)

Healthcare, welfare, labor

86.4

92.0

5.6

6.4

41.2
(35.3)

45.1
(38.5)

3.9
(3.2)

9.3
(9.1)

Culture, sports, tourism

4.2

4.4

0.2

5.7

Environment

5.8

6.1

0.3

6.3

31.4

33.2

1.8

5.6

Education
(government support for local government-run
educational institutions)

National defense
Foreign relations, reunification

3.7

3.9

0.2

8.1

13.7

14.5

0.8

6.5

General public administration
(government support for local governments)

52.4
(30.2)

56.6
(33.1)

4.2
(2.9)

8.2
(9.5)

Total budgets

309.1

326.1

17.0

5.5

Public order, security

Economic Bulletin

47

Economic
News Briefing

US congress passes Korea-US FTA
Korea and the US made substantial progress in the Korea-US Free Trade Agreement (KORUS
FTA) as US lawmakers cleared legislation for the trade deal. On October 12, the US House of
Representatives passed the trade agreement by a vote of 278 to 151 with five abstentions.
Shortly after, the Senate voted 83 to 15 to approve the deal. The vote coincided with Korean
President Lee Myung-bak’s arrival in Washington for a state visit.
Although Korea and the US signed the KORUS FTA on June 30, 2007, its ratification has been
delayed for more than four years. As the agreement won bipartisan support in the US,
President Barack Obama is expected to sign the bill into law. Once Korea’s National
Assembly concludes the ratification process, the KORUS FTA will go into effect 60 days after
the two countries exchange letters confirming the ratification.

48

October 2011

IMF’s world economic outlook update
On September 20, the international Monetary Fund (IMF) unveiled the latest edition of its
World Economic Outlook (WEO) and reduced its forecast for world economic growth,
assessing that the recovery has become much more uncertain since the previous forecast.
The global financial institution projected that the world economy will grow by 4.0 percent in
both 2011 and 2012, compared with growth of 5.1 percent in 2010. In advanced economies,
growth is projected at 1.6 percent in 2011 and 1.9 percent in 2012 while that in emerging
economies is forecast to reach 6.4 percent in 2011 and 6.1 percent in 2012. IMF expects
Korea’s economic output to increase 4.0 percent in 2011 and 4.4 percent in 2012.

Revision of Enforcement Decree of FSCMA approved at cabinet meeting
The proposed revision of the Enforcement Decree of the Financial Investment Services and
Capital Markets Act (FSCMA), which aims to introduce home-grown hedge funds to Korea’s
capital markets, has been approved by the Cabinet Council on September 27. The first part
of the revision, which regards the creation of hedge funds, proposes that the scope of hedge
fund investors be extended to individuals with risk-taking capacity. Currently, investments in
private equity funds are allowed only to a limited number of qualified investors such as
financial firms and pension funds. However, in order to provide more diverse investment
opportunities, the revision will allow individuals who can invest 500 million won or more to
join a hedge fund. The revision will allow more freedom on asset management, while
tightening supervision on fund operations.
The second part of the revision states that prime brokers will be allowed to conduct both
trading and brokerage within the same department as trust businesses. However, the
brokerage unit will be separated from other businesses within a securities firm in order to
avoid conflict of interest. Another clause states that prime brokers will be allowed to extend
credit loans and securities-collateralized loans to hedge funds, and can also entrust part of
their custody and management to other trust companies such as banks and securities
finance companies.

National debt expected to reach 422.7 trillion won by year-end
Korea’s national debt is expected to reach 422.7 trillion won by the end of 2011, up by 30.5
trillion won over the corresponding period last year, a Ministry of Strategy and Finance
(MOSF) report revealed on October 2. Out of the 422.7 trillion won, 404.9 trillion won will be

Economic Bulletin

49

central government debt, while 17.8 trillion won will be the net debt of provincial
governments. The projected debt-to-GDP ratio for 2011 is 33.3 percent. This ratio is expected
to decrease gradually, reaching the pre-crisis level of 31.3 percent by the end of 2013, and
maintaining mid-20 percent levels from 2014. Meanwhile, national debt at the end of 2010
was 392.2 trillion won, with the debt-to-GDP ratio standing at 33.4 percent.

<National debt outlook for 2011~15>
2011

2012

2013

2014

2015

National debt (trillion won)

422.7

448.2

460.0

466.4

471.6

Debt-to- GDP ratio (%)

33.3

32.8

31.3

29.6

27.9

Korea ranked top in global ICT development index
Korea is the most advanced nation in terms of information and communications technologies
(ICT), according to an annual report released by the International Telecommunication Union
(ITU) on September 15. The global ICT Development Index (IDI), which is a gauge of ICT
development levels among ITU member nations, showed Korea as the top ranking nation,
followed by Sweden, Iceland, Denmark and Finland. The Index ranks 152 countries according
to their levels of ICT access, use and skills, and Korea received the top score for ICT use, while
ranking second for ICT skills and tenth for ICT access. In the IDI subcategories, Korea received
high scores for the percentage of households with Internet access, as well as for mobile and
fixed broadband subscriptions.

50

October 2011

Statistical
Appendices
Tables & Figures
1. National accounts
2. Production, shipment and inventory
3. Production capacity and operation ratio
4. Consumer goods sales index
5. Consumer goods shipment index and consumer sentiment index
6. Machinery orders received, domestic machinery shipment,
and estimated facility investment index
7. Value of construction 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
1.0

9.8
7.2

2.5
2.8

-2.2
-1.1

-11.9
-6.8

11.7
7.5

P: Preliminary
Source: The Bank of Korea

52

October 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
II

143.6
151.2

10.6
7.2

138.7
144.8

11.9
7.2

137.4
142.7

10.3
10.0

123.1
127.0

2.7
3.3

2009

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

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

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

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

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

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

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

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

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

2010

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

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

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

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

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

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

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

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

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

146.9
129.8
154.0
149.7
151.5
152.3
148.8
143.0

13.6
9.0
9.1
6.9
8.2
6.6
4.0
4.8

141.4
125.2
149.6
144.6
144.4
145.4
140.1
136.7

14.9
10.2
10.7
7.3
8.2
5.9
3.2
4.4

135.4
137.1
137.4
137.3
140.2
142.7
147.3
150.5

13.0
11.2
10.3
8.7
7.9
10.0
9.8
11.9

124.1
116.9
128.2
125.2
127.4
128.4
127.0
126.7

4.7
0.2
3.1
3.0
3.3
3.5
3.8
4.8

2011

1
2
3
4
5
6
7P
8P

P: Preliminary
Source: Statistics Korea

54

October 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
II

132.7
133.8

6.8
5.8

99.9
105.3

2.6
-0.3

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
5
6
7P
8P

132.2
132.5
133.4
133.8
133.7
133.9
134.2
134.4

7.0
6.9
6.5
6.6
5.7
5.1
4.4
3.6

102.5
89.5
107.8
104.6
104.7
106.6
102.8
97.0

5.6
1.2
1.0
-1.4
0.9
-0.4
-2.4
-0.8

84.8
82.2
82.4
80.4
81.3
82.5
82.1
80.5

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

Consumer
goods
sales
index

2009
2010

Y-o-Y
change (%)

Durable
goods

Y-o-Y
change (%)

Semi-durable
goods

Y-o-Y
change (%)

Non-durable
goods

Y-o-Y
change (%)

113.6
121.1

2.7
6.6

136.8
157.2

8.2
14.9

106.3
113.5

1.3
6.8

111.3
113.7

1.2
2.2

2009

I
II
III
IV

106.5
113.4
111.9
122.4

-4.5
1.5
2.8
10.9

114.7
142.0
135.5
155.1

-11.7
5.9
7.7
34.1

103.1
107.7
94.3
120.2

-0.5
0.5
0.3
4.5

107.7
109.2
114.3
113.9

-1.4
0.4
1.8
4.0

2010

I
II
III
IV

116.8
118.9
120.3
128.6

9.7
4.9
7.5
5.1

148.7
149.9
158.5
171.6

29.6
5.6
17.0
10.6

105.7
114.4
100.5
133.6

2.5
6.2
6.6
11.1

111.1
112.8
117.7
113.1

3.2
3.3
3.0
-0.7

2011

I
II

122.7
127.7

5.1
5.7

167.9
176.2

12.9
17.5

112.2
120.8

6.1
5.6

112.0
112.4

0.8
-0.4

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
125.8
127.1
122.8

10.6
-0.8
5.2
5.1
6.3
5.8
5.3
5.2

165.9
154.2
183.5
167.4
176.4
184.9
184.6
173.3

14.0
9.1
15.3
15.8
20.0
17.0
12.6
12.2

120.4
101.6
114.6
121.5
127.0
114.0
107.5
93.8

11.1
2.0
5.0
7.4
5.2
4.3
3.9
4.0

118.9
104.3
112.7
108.7
116.3
112.2
117.6
119.3

9.4
-7.0
0.1
-1.5
0.3
0.1
2.2
2.5

2011

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

P: Preliminary
Source: Statistics Korea

56

October 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
II

120.8
117.8

1.9
-1.8

134.9
134.6

-1.3
-3.5

115.2
111.0

3.6
-1.0

-

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
5
6
7P
8P
9

129.6
105.9
127.0
118.6
115.7
119.1
119.9
120.4
-

4.8
-4.0
4.4
-1.6
-1.5
-2.2
-1.6
-0.1
-

133.0
125.6
146.1
133.1
131.4
139.4
141.9
132.1
-

-2.2
-3.2
1.1
-1.7
-2.9
-5.6
-2.5
-1.3
-

128.2
98.0
119.4
112.7
109.4
110.9
111.1
115.7
-

7.9
-4.5
6.3
-1.7
-0.9
-0.4
-1.2
0.4
-

108
105
98
100
104
102
102
99
99

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
ll

6,627
6,760

471
732

6,156
6,029

3,744
3,684

128.5
144.1

133.1
148.4

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

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

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

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

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

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

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

2011 1
2
3
4
5
6
7P
8P

2,115
2,070
2,442
1,965
2,171
2,624
2,000
1,812

116
122
233
102
142
487
152
115

2,000
1,948
2,209
1,869
2,029
2,137
1,848
1,698

1,156
1,148
1,440
1,158
1,190
1,336
1,027
1,007

125.7
113.9
145.8
132.5
146.1
154.1
135.2
135.6

127.6
123.6
148.1
138.3
150.9
156.0
136.7
123.3

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
ll

19.5
8.2

-10.3
82.0

22.7
3.1

28.7
3.4

6.6
4.8

14.1
2.9

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
18.5
-4.4
6.0

-31.5
14.0
-6.3
-19.6
23.4
205.2
44.9
8.0

25.1
27.0
17.1
8.6
-2.2
4.0
-7.0
5.8

14.6
30.4
41.0
9.8
-10.5
13.2
-3.9
12.2

22.2
1.0
0.5
-0.3
10.3
4.7
-2.8
-3.7

17.8
20.4
6.5
-0.8
7.1
2.5
-1.4
-7.2

1
2
3
4
5
6
7P
8P

P: Preliminary
Source: Statistics Korea

58

October 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
ll

19,067
23,898

7,288
9,304

10,857
13,195

15,796
24,473

4,053
6,067

10,743
16,821

2010

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

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

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

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

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

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

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

6,157
5,277
7,634
7,053
7,435
9,410
6,793
6,921

2,415
2,047
2,827
2,721
2,189
3,765
2,441
2,520

3,476
2,991
4,391
3,981
4,226
4,989
4,044
4,071

4,658
4,959
7,179
6,459
6,753
11,260
4,892
7,269

1,295
1,396
1,362
1,413
1,861
2,793
1,735
1,505

2,697
2,445
5,601
4,452
4,428
7,941
3,042
5,503

2.7

8.5

-18.7

-43.7

2.8

2011

1
2
3
4
5
6
7P
8P

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
ll

-6.2
-0.8

-2.4
1.9

-9.4
-5.3

-12.8
-3.3

-49.1
-11.9

18.2
0.5

2010

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

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

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

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

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

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

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

-5.2
-14.1
-0.7
-4.1
-4.0
4.7
-8.8
-3.2

7.0
-11.1
-2.8
3.5
-0.8
2.9
-9.3
2.4

-12.5
-17.3
0.0
-10.7
-6.9
1.1
-8.5
-6.8

-33.9
-16.7
13.7
-2.7
-22.5
13.3
-34.6
75.4

-46.3
-35.7
-59.6
-22.7
11.3
-17.6
-55.5
13.4

-36.9
9.5
117.0
-0.1
-33.4
41.1
-9.3
103.9

2011

1
2
3
4
5
6
7P
8P

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
9
10

130.1
129.8
129.4
129.0
129.5
130.2
130.8
131.0
-

3.0
2.4
1.6
1.1
1.3
1.7
2.0
2.0
-

135.1
135.3
135.8
135.5
136.6
137.7
138.6
139.2
-

100.8
100.6
100.5
99.9
100.3
100.6
100.9
100.9
-

99.1
92.2
107.8
98.4
98.9
99.6
96.2
86.8
96.4
-

101.8
98.0
113.5
99.3
104.3
104.3
101.3
98.9
96.3
101.4

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

October 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
7
8

154.7
1,126.1
1,329.5
1,277.6
2,183.9
2,030.7
3,773.6
401.3

1,557.9
1,530.8
2,754.0
3,327.6
1,633.8
2,699.6
4,728.0
480.2

42,662.8
37,228.3
47,800.4
47,879.4
47,149.8
47,693.6
48,555.9
45,794.8

41,104.9
35,697.2
45,046.4
44,551.8
45,516.0
44,994.0
43,827.9
45,314.6

-1,640.9
-569.1
-328.0
-178.8
15.5
-632.7
-690.9
-577.9

703.7
542.6
-858.4
-1,581.9
517.3
239.8
72.3
699.6

-466.0
-378.2
-238.1
-289.3
17.3
-276.0
-335.8
-200.6

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
-3,246.0
-2,469.2
-2,328.1

-1,725.4
-1,635.1
-1,335.8
-7.38.8
-1,254.7
-2,144.6
327.1
-1,036.4

904.6
-3,004.0
720.3
4,575.0
-1,140.1
-1,399.5
9,258.3
-2,923.0

569.3
-363.3
524.3
-206.2
165.1
-501.8
526.6
-1,868.6

1,773.3
5,126.9
-648.6
-145.9
-821.7
-464.9
-6,581.0
4,000.9

-120.7
-32.7
-28.0
-33.6
-49.9
-28.4
13.8
41.5

-2,683.1
-2,088.0
1,291.9
-3,055.8
-855.4
1,293.2
-6,014.0
-542.5

1,127.3
870.1
-1,853.6
-1,672.3
1,772.8
1,215.3
-1,304.4
1,926.8

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
7
8

2009

P: Preliminary
Source: The Bank of Korea

62

October 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
8
9

118.9
119.8
120.4
120.4
120.4
120.6
121.4
122.5
122.6

123.8
125.1
123.1
125.7
125.1
125.3
127.0
129.1
129.6

115.8
116.4
116.6
116.9
117.3
117.5
117.8
118.1
118.1

116.3
117.1
117.4
117.6
118.2
118.6
119.0
119.4
119.6

119.7
120.5
122.0
122.4
122.3
121.9
122.4
122.8
122.9

122.7
123.9
125.8
126.2
126.0
125.5
126.0
126.7
126.9

108.6
110.6
113.5
111.8
110.2
109.4
108.0
109.4
113.1

156.1
160.9
166.5
167.6
163.9
163.2
161.4
162.1
168.1

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
8
9

4.1
4.5
4.7
4.2
4.1
4.4
4.7
5.3
4.3

7.1
7.8
7.9
6.4
5.9
6.5
7.4
8.5
6.4

2.2
2.5
2.5
2.5
2.8
2.9
3.0
3.1
2.8

2.6
3.1
3.3
3.2
3.5
3.7
3.8
4.0
3.9

6.2
6.6
7.3
6.8
6.2
6.2
6.5
6.6
5.7

7.7
8.2
9.1
8.4
7.6
7.6
8.0
8.2
7.0

4.9
5.6
9.1
7.7
3.3
-0.4
-1.3
1.8
5.8

14.1
16.9
19.6
19.0
13.2
10.5
9.8
10.0
14.0

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
8

24,114
24,431
24,918
25,240
25,480
25,592
25,473
25,257

23,196
23,336
23,846
24,303
24,661
24,752
24,636
24,495

4,148
4,149
4,122
4,108
4,137
4,135
4,079
4,031

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
18,739
3.0
Y-o-Y change (%)

16,832
16,856
17,065
17,357
17,626
17,720
17,667
17,510

10,305
10,390
10,543
10,618
10,708
10,716
10,718
10,710

4,848
4,781
4,782
4,928
5,064
5,132
5,137
5,031

1,680
1,684
1,740
1,812
1,854
1,872
1,811
1,769

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
8

0.1
1.6
2.2
1.5
1.5
1.7
1.0
1.7

1.4
2.1
2.0
1.6
1.5
1.9
1.4
2.0

5.7
6.7
5.1
2.9
2.5
2.9
1.0
-0.7

1.2
1.4
1.1
1.4
1.3
2.1
1.9
3.1

-

3.3
3.5
2.7
2.1
2.2
3.1
2.5
2.7

6.1
6.2
6.2
6.1
6.3
6.2
6.0
5.5

-0.3
-1.2
-3.9
-4.3
-3.0
-0.6
-1.5
-1.8

-2.6
1.6
1.5
-1.3
-5.1
-3.4
-4.9
-0.3

Source: Statistics Korea

64

October 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
8
9

2.7
2.8
2.9
3.0
3.0
3.2
3.3
3.3
3.3

2.9
3.1
3.4
3.4
3.5
3.5
3.6
3.6
3.6

4.5
4.7
4.5
4.5
4.4
4.4
4.5
4.2
4.2

3.7
3.9
3.7
3.7
3.7
3.7
3.8
3.6
3.5

4.3
4.4
4.1
4.1
4.0
3.9
4.0
3.7
3.6

2,069.73
1,939.30
2,106.70
2,192.36
2,142.47
2,100.69
2,133.21
1,880.11
1,769.65

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
7
8

73,540.8
75,432.1
73,012.7
73,206.1
73,828.5
74,705.5
74,069.7
75,642.3

429,368.1
432,482.8
430,936.6
425,420.5
423,994.7
421,885.3
418,973.1
422,649.3
Y-o-Y change (%)

1,676,448.8
1,674,390.5
1,677,475.9
1,684,792.3
1,690,543.0
1,697,204.2
1,705,451.5
1,719,437.8

2,152,814.0
2,148,254.1
2,152,736.5
2,163,485.7
2,175,557.3
2,189,729.2
2,208,624.3
2,230,191.9

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
7
8

13.0
13.3
11.2
13.9
8.8
12.8
10.6
12.4

12.6
11.5
11.6
9.6
7.4
5.4
3.8
5.4

6.5
5.0
4.3
3.9
3.7
3.0
3.2
4.0

6.6
5.2
4.7
4.5
4.4
4.0
4.6
5.5

Source: The Bank of Korea

66

October 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
8
9

1,114.3
1,127.9
1,107.2
1,072.3
1,080.6
1,078.1
1,052.6
1,071.7
1,179.5

1,120.1
1,118.1
1,122.5
1,086.8
1,083.5
1,081.3
1,059.5
1,073.2
1,118.6

1,356.6
1,380.7
1,331.9
1,313.8
1,335.6
1,335.7
1,353.2
1,396.8
1,536.6

1,356.3
1,351.0
1,376.2
1,304.8
1,333.6
1,342.8
1,333.4
1,391.4
1,456.5

1,514.0
1,549.5
1,563.5
1,591.2
1,549.7
1,560.5
1,507.9
1,547.3
1,601.4

1,495.4
1,524.6
1,572.6
1,569.4
1,551.3
1,555.4
1,515.4
1,538.7
1,542.4

-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
8
9

-3.6
-2.6
-2.1
-3.9
-10.0
-10.9
-11.3
-9.9
3.3

-1.6
-3.4
-1.3
-2.7
-6.8
-10.8
-12.2
-9.0
-4.1

5.4
6.3
9.4
10.7
1.3
-2.1
-1.2
-0.7
12.7

8.7
5.4
9.6
9.2
5.4
0.7
-3.2
0.8
5.2

-6.2
-1.3
3.0
7.6
5.1
5.8
-2.9
2.7
2.9

-8.1
-3.8
1.8
4.5
6.2
5.0
-1.6
1.0
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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