Vol. 33 | No.

11

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
Current financial situation of Korea:
Solid enough to absorb impact from outside

42

Economic News Briefing

46

Statistical Appendices

49

The Green Book
Current Economic Trends
Overview
Although the Korean economy has continued to recover, there are worries that inflation
might remain high, and some economic indicators have posted a decline.
Employment decelerated an increase in September affected by temporary factors such as
Chuseok holidays, from adding 490,000 jobs in the previous month to 264,000 jobs, while
the employment rate fell from 59.6 percent to 59.1 percent, and the unemployment rate
stayed flat at 3.0 percent.
Consumer price inflation, although the current level might be pushed up by high expected
inflation and rising import prices, slowed down month-on-month in October from 4.3 percent
to 3.9 percent, as the supply of agricultural, livestock & fishery products became stable.
Mining and manufacturing production rose 1.1 percent from the previous month in
September, while service output fell 1.6 percent affected by sluggish wholesale & retail sales
and financial & insurance services.
In September retail sales fell 3.2 percent from the previous month, due to a diminishing
effect of Chuseok holidays which fell earlier than usual and had an effect on the previous
month’s index.
Facilities investment went down 2.0 percent month-on-month in September, while
construction investment gained 3.8 percent.
The trade surplus widened to US$4.29 billion in October from US$1.56 billion in the previous
month, while exports posted a less fast year-on-year increase of 9.3 percent due to a high
base effect.
The cyclical indicator of the coincident composite index declined 0.8 percentage points from
the previous month in September, as the value of construction completed and wholesale &
retail sales fell. The leading composite index went down 0.4 percentage points year-on-year
compared with the previous month, as the KOSPI and the consumer sentiment index dropped.
In October, financial markets became stable relative to September in line with eased
volatility in the international financial markets amid efforts to reinforce policy coordination
for solutions to the European debt crisis.
There have been remaining gaps of housing price trends between the Seoul metropolitan
area and other areas in October, while rental prices slowed down an increase from the
previous month from 1.8 percent to 1.1 percent.
Uncertainties continued to remain in the Korean economy, amid the European debt crisis
and with a possible slowdown in major economies.
The Korean government will closely monitor local and global economic situations and swiftly
respond to any changes, while renewing efforts to help the economy keep recovering and
prices continue stabilizing. In the meantime, it will pursue active job creation and better
livelihood for working class families, and push forward economic restructuring in a way to
boost domestic demand and facilitate the soft-landing of household debts.
Economic Bulletin

3

1. External economic situation
Worries over a global economic recession has slightly eased with the US and Chinese
economies posting better-than-expected performance in the third quarter. However,
downward risks from the continuing European financial woes are still a main concern.

US

Amid a gradual recovery with the improvement of economic indicators, the US economy grew
2.5 percent (annualized q-o-q) in the third quarter, an increase from the previous quarter.
The growth was led by a significant increase in personal consumption, which climbed 2.4
percent in the third quarter after a rise of 0.7 percent in the second quarter, with consumption
of durable goods increasing 4.1 percent from the previous month’s drop of 5.3 percent.
However, a considerable amount of the growth was a result of temporary factors such as the
normalization of car production, which had dropped due to the Japanese earthquake and its
impact on component supply chains.
Contribution of car to personal expenditures (q-o-q, percentage point)
-0.74 (Q2, 2011)

-0.08 (Q3)

Contribution of car to facility investment (q-o-q, percentage point)
0.14 (Q2, 2011)

0.34 (Q3)

Economic indicators, particularly industrial production and personal consumption
expenditure, continued to rise.
Industrial production (m-o-m, %)
-0.4 (Apr 2011)

0.3 (May)

0.0 (Jun)

1.1 (Jul)

0.0 (Aug)

0.2 (Sep)

0.2 (Aug)

0.6 (Sep)

Personal consumption expenditure (m-o-m, %)
0.3 (Apr 2011)

0.2 (May)

-0.2 (Jun)

0.9 (Jul)

In October, the Federal Open Market Committee revised downward its 2011 growth forecast
to the 1.6 to 1.7 percent range, after predicting 2.7 to 2.9 percent in June, although it
estimated that there was a slight recovery in growth in the third quarter with an
improvement in temporary factors that had restricted growth.
The Federal Reserve said it would continue current policies such as Operation Twist and the
freezing of the benchmark interest rate, and mentioned the possibility of additional
quantitative easing such as the acquisition of mortgage-backed securities if needed.
(Percentage change from previous period)
2009

20111

2010

Aug

Sep

2.5

-

-

0.7

2.4

-

-

Annual

Annual

Q2

Q3

Q4

Q1

Q2

Q3

Real GDP 2

-3.5

3.0

3.8

2.5

2.3

0.4

1.3

- Personal consumption expenditur

-1.9

2.0

2.9

2.6

3.6

2.1

- Corporate fixed investment

-17.8

4.4

18.6

11.3

8.7

2.1

10.3

16.3

-

-

- Housing construction investment

-16.0

14.6

22.8

-27.7

2.5

-2.4

4.2

2.4

-

-

Industrial production

-11.2

5.3

1.7

1.6

0.8

1.2

0.1

1.3

0.0

0.2

-1.7

3.8

0.8

0.9

1.4

1.5

1.0

1.2

0.2

0.6

Existing home sales

5.2

-4.5

7.5

-25.1

13.8

8.2

-4.9

-0.1

8.4

-3.0

Unemployment rate3

9.3

9.6

9.6

9.6

9.6

8.9

9.1

9.1

9.1

9.1

-0.3

1.6

-0.1

0.4

0.7

1.3

1.0

0.8

0.4

0.3

Retail sales

Consumer prices
1. Preliminary

4

2. Annualized rate (%)

November 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 slightly slowed down in the third quarter, growing 9.1 percent year-on-year.
Exports grew at a slower pace in line with the slowdown of the global economy, but the
robust growth of domestic demand, including consumer goods sales, continued.
Consumer price inflation slightly eased year-on-year to 6.1 percent in September.
(Percentage change from same period in previous year)
Q2

20111
Q3

Aug

9.5

9.1

-

-

14.9

13.9

13.8

13.5

13.8

24.5

32.5

27.0

28.0

28.1

28.0

2009
Annual

Annual

Q2

Q3

Q4

Q1

9.1

10.3

10.3

9.6

9.8

9.7

Industrial production2

11.0

15.7

16.0

13.5

13.3

Fixed asset investment (accumulated)

30.5

24.5

25.5

24.5

Real GDP

2010

Sep

15.5

23.3

23.8

23.9

22.0

17.1

18.2

17.2

17.0

17.7

-16.0

31.3

40.9

32.2

24.9

26.4

22.0

20.5

24.5

17.1

Consumer prices2

-0.7

3.3

2.9

3.5

4.7

4.9

5.7

6.3

6.2

6.1

Producer prices2

-5.4

5.5

6.8

4.5

5.7

7.0

6.9

7.1

7.3

6.5

Retail sales
Exports

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

Japan

Japan’s economy is rebounding from the shock of the Great East Japan earthquake, but the
increase of uncertainties in the global economy such as from the European financial crisis and
the strong yen are a burden to growth.
On October 21, the Japanese government approved a package of measures to ease the
burden on companies from the strength of the yen and to take advantage of the strong yen.
(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

2010

20111
Q3

Aug

Sep

Q3

Q4

Q1

Q2

0.5

0.8

-0.3

-0.9

-0.5

-

-

-

0.7

-1.1

-0.1

-2.0

-4.0

4.0

0.6

-4.0

Annual

Q2

-6.3

4.0

-21.9

16.4

-2.3

2.5

3.7

3.2

-0.4

-3.0

-1.7

-

-2.6

-1.2

-33.1

24.4

33.2

17.8

10.0

2.4

-8.0

-

2.8

2.3

-1.4

-0.7

-0.9

-0.8

0.1

-1.4

-0.9

-

0.2

0.0

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

Eurozone

With a comprehensive agreement to resolve the European financial crisis, the European
Central Bank on November 3 lowered the benchmark interest rate by 25 basis points to
1.25 percent .
At the EU summit on October 26, the region’s leaders agreed on the reduction of Greece’s
debt, expansion of the European Financial Stability Facility (EFSF), and increased injection of
capital into European banks.
(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

November 2011

2009
Annual

Annual

Q2

Q3

Q4

Q1

Q2

20111
Q3

Aug

Sep

-4.1

1.8

0.9

0.4

0.3

0.8

0.2

-

-

-

-14.7

7.4

2.4

1.0

1.8

0.9

0.2

-

1.5

-

2010

-2.4

0.8

0.2

0.2

0.3

-0.1

-0.3

-

0.1

-18.1

20.1

22.3

22.8

21.8

21.5

13.4

-

12.1

-

0.3

1.6

1.5

1.7

2.0

2.5

2.8

-

2.5

3.0

1-4

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

1-5

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

1-6

Eurozone GDP growth and industrial production
Source: Eurostat

Economic Bulletin

7

2. Private consumption
Private consumption (advanced estimates) rose 0.6 percent quarter-on-quarter and 2.2
percent year-on-year in the third quarter of 2011.
(Percentage change from same period in previous year)
2010 1

2009

Private consumption

2

q-o-q

Annual

Q3

Q4

Annual

0.0

0.4

5.6

-

1.4

0.9

20111

Q1

Q2

Q3

Q4

Q1

Q2

Q3

4.1

6.6

3.5

3.6

2.9

2.8

3.0

2.2

-

0.5

0.7

1.4

0.3

0.4

0.9

0.6

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

Retail sales in September fell 3.2 percent from August, reflecting the effect of sales related to
Chuseok holidays during the previous month.
On a year-on-year basis, sales of durable goods, semi-durable goods and non-durable goods
all rose, but the growth of overall sales slowed down.
(Percentage change from same period in previous year)
2009

Consumer goods sales
q-o-q
- Durable goods

2

・Automobiles
- Semi-durable goods
- Non-durable goods4

3

20111

2010

Annual

Annual

Q2

Q3

Q4

Q1

Q2

Q31

Aug1

Sep1

2.7

6.6

4.9

7.5

5.1

5.1

5.7

4.4

5.2

2.8

-

-

-0.1

3.3

0.8

1.1

0.2

2.3

-0.2

-3.2

8.2

14.9

5.6

17.0

10.6

12.9

17.5

10.4

12.2

6.4

21.8

11.1

-2.1

12.0

0.1

10.2

13.0

8.3

6.7

7.3

1.3

6.8

6.2

6.6

11.1

6.1

5.6

3.9

3.8

4.2

1.2

2.2

3.3

3.0

-0.7

0.8

-0.4

2.0

2.6

1.3

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

With drops in sales related to Chuseok holidays, sales at department stores fell 8.0 percent
from the previous month’s rise of 7.6 percent, and those at nonstore retailers decreased 7.8
percent following a jump of 8.1 percent, while sales of large discounters and specialized
retailers went down 2.9 percent and 2.4 percent, respectively.
On a year-on-year basis, sales of department stores, large discounters, specialized retailers
and nonstore retailers all slowed down.
(Percentage change from same period in previous year)

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

2

20111

2010

2009
Annual

Annual

Q2

Q3

Q4

Q1

Q2

Q31

Aug1

Sep1

4.3

8.8

9.2

7.4

10.5

11.5

9.7

6.5

7.6

5.3

-2.2

4.4

4.1

7.6

0.8

3.5

5.1

2.3

3.0

0.3

3.0

5.6

1.8

7.3

4.2

4.3

4.9

3.9

3.8

1.8

8.7

15.6

17.9

11.4

13.5

11.5

9.2

9.3

15.4

6.7

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

8

November 2011

2-1

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

2-2

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

2-3

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

Economic Bulletin

9

Considering advanced indicators, retail sales in October may slightly recover month-on-month.
Credit card use rose 17.4 percent year-on-year in October, staying on a sharp upward track,
although slightly slowing down from the previous month.
Sales of cars and those at department stores, both of which are susceptible to market
situations, slowed down from the unease in financial markets, while sales at large
discounters, which are less susceptive, rose 5.6 percent year-on-year.
However, the slump in gasoline sales continued, as the price rose significantly due to the
appreciation of the won.
Gasoline prices (won per liter)
1,956 (4th week of Sep 2011)

1,965 (1st week of Oct)

1,970 (2nd week)

1,981 (3rd week)

1,991 (4th week)

Credit card use (y-o-y, %)
21.1 (May 2011)

19.8 (Jun)

16.6 (Jul)

19.8 (Aug)

19.7 (Sep)

17.4 (Oct1)

Department store sales (y-o-y, %)
8.7 (May 2011)

8.2 (Jun)

8.5 (Jul)

8.3 (Aug)

6.5 (Sep)

2.0 (Aug)

-1.1 (Sep)

3.8 (Oct1)

Large discounter sales (y-o-y, %)
2.4 (May 2011)

2.7 (Jun)

4.9 (Jul)

5.6 (Oct1)

Domestic sales of gasoline (y-o-y, %)
-2.6 (May 2011)

-3.4 (Jun)

9.2 (Jul)

-0.3 (Aug)

1.0 (Sep)

-1.4 (Oct1)

Domestic sales of cars (y-o-y, %)
3.7 (May 2011)

6.0 (Jun)

6.1 (Jul)

3.7 (Aug)

3.8 (Sep)

-8.8 (Oct1)

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 October data)

Domestic and external uncertainties are expected to limit the increase of retail sales even
though other conditions related to consumption such as employment and inflation have
been improving.
Employment (y-o-y, thousand)
379 (Apr 2011)

355 (May)

472 (Jun)

335 (Jul)

490 (Aug)

264 (Sep)

Consumer prices (y-o-y, %)
4.2 (Apr 2011)

4.1 (May)

4.4 (Jun)

4.7 (Jul)

5.3 (Aug)

4.3 (Sep)

3.9 (Oct)

The consumer sentiment index recovered to the benchmark level of 100, but it is improving
at a slow pace.
Consumer sentiment index (CSI, base=100)
98 (Mar 2011)

10

November 2011

100 (Apr)

104 (May)

102 (Jun)

102 (Jul)

99 (Aug)

99 (Sep)

100 (Oct)

2-4

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

2-5

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

2-6

Consumer sentiment index
Source: The Bank of Korea

Economic Bulletin

11

3. Facility investment
Facility investment (advanced estimates of GDP) in the third quarter of 2011 fell 0.4 percent
quarter-on-quarter, and rose 1.4 percent year-on-year.
(Percentage change from same period in previous year)
2009

Facility investment

2

q-o-q
- Machinery
- Transportation equipment

2010

1

20111

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

-9.8

25.0

29.1

30.5

26.6

15.9

11.7

7.5

1.4

-

-

2.8

7.9

5.6

-1.0

-1.1

3.9

-0.4

-13.5

30.8

30.0

35.3

38.9

20.5

13.9

9.0

-

2.8

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 September slipped 2.0 percent month-on-month and 4.2 percent yearon-year, as investment in both machinery and transportation equipment decreased.
However, the index is projected to be in good shape given leading indicators such as facility
investment adjustment pressure and manufacturing operation ratio staying positive. Still,
continuing uncertainties triggered by Europe’s debt crisis and worsening corporate
investment sentiment are likely to limit gains.
(Percentage change from same period in previous year)
2009

Facility investment

20111

2010

Annual

Annual

Q3

Q4

Q1

Q2

Q31

Jul

Aug1

Sep1

-9.4

25.1

29.3

13.6

6.6

4.8

-3.5

-3.0

-3.4

-4.2

q-o-q, m-o-m

-

-

7.2

-5.4

-0.2

3.0

-0.9

-5.9

1.8

-2.0

- Machinery

-12.6

30.5

37.4

17.1

6.8

7.0

-3.6

-2.8

-5.4

-2.5

4.6

4.3

-0.1

-1.2

5.6

-5.7

-3.2

-4.2

8.8

-11.9

-10.3

11.2

-0.2

11.3

19.5

8.2

1.3

-4.4

6.0

3.4

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

-

-

-3.6

4.1

3.6

3.9

-9.4

-16.4

1.0

-4.2

- Public

62.4

-37.9

-71.7

31.4

-10.3

82.0

5.6

44.9

8.0

-20.4

- Private

-18.2

21.8

22.0

7.8

22.7

3.1

1.0

-7.0

5.9

5.7

-16.6

40.4

40.0

26.3

8.0

10.5

9.2

12.5

11.3

3.3

Manufacturing operation ratio

-3.5

8.8

1.8

5.3

2.6

-0.3

-0.1

-2.4

0.7

1.7

Facility investment adjustment
pressure2

-3.7

9.5

3.4

4.6

4.1

1.6

1.2

-0.6

1.1

3.2

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

November 2011

Jun

Jul

Aug

Sep

Oct

Nov

102

103

103

100

98

96

3-1

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

3-2

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

3-3

Machinery imports
Source: Korea International Trade Association (KITA)

Economic Bulletin

13

4. Construction investment
Construction investment (advanced estimates of GDP) in the third quarter of 2011 rose 2.2
percent quarter-on-quarter, and dropped 4.2 percent year-on-year.
(Percentage change from same period in previous year)
20101

2009

20111

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

3.4

-1.4

4.3

-2.3

-3.1

-2.9

-11.9

-6.8

-4.2

-

-

2.0

-4.2

-0.8

-1.0

-6.7

1.6

2.2

- Building construction

-2.3

-2.9

4.5

-5.1

-6.3

-2.8

-11.3

-3.7

-

- Civil engineering works

11.6

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 September declined 1.7 percent year-onyear due to a drop in civil engineering works, but increased 3.8 percent month-on-month.
(Percentage change from same period in previous year)
2009

Value of construction completion(constant)

20111

2010

Annual

Annual

Q3

Q4

Q1

1.6

-3.3

-6.8

-4.3

-12.6

Q2

Q31

-6.6

1

-8.6

1

Jul

Aug1

Sep1

-14.6

1

-9.4

-1.7

1

-

-

-4.3

-1.6

-4.6

3.5

-6.1

-16.5

0.9

3.8

- Building construction

-6.4

-7.1

-12.3

-8.5

-15.2

-8.41

-8.1

-14.31

-10.6

0.9

- Civil engineering works

16.1

2.2

1.9

1.2

-9.2

-4.31

-9.3

-14.91

-7.8

-5.3

5.0

-18.7

-3.6

-40.2

-12.8

-3.3

0.9

-34.6

75.4

-5.0

q-o-q, m-o-m

Construction orders (current value)

-

-

-1.4

-22.9

12.8

9.8

8.2

-30.4

65.8

-25.5

-14.2

-9.9

-1.3

-46.4

-9.7

-4.0

8.6

-41.8

87.7

4.1

44.3

-29.5

-7.0

-29.9

-17.0

-1.5

-11.0

-26.7

50.7

-22.4

-12.9

19.3

-14.3

18.1

21.5

3.8

58.7

31.4

87.8

59.2

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 rebound considering recovery signs in
housing markets such as increasing building permissions and diminishing number of unsold
houses. As of September 30, housing building permits increased 83.3 percent year-on-year.

2009

Unsold houses

2010

2011

Dec

Dec

Jul

Aug

Sep

123,000

89,000

70,000

69,000

68,000

Yet, the trend needs to be tracked closely, since leading indicators such as construction
orders turned negative and business sentiment of construction industries remains weak.
2011

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

14

November 2011

Jun

Jul

Aug

Sep

Oct

Nov

80.4

76.8

64.1

74.0

72.2

69.0

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 October increased 9.3 percent (preliminary) year-on-year to US$47.36 billion.
The index grew relatively slow year-on-year in October due to a base effect from the same
period of the previous year when exports soared. The average daily exports posted a similar
level to the previous month’s.
Export increase (September
23.4

October, US$ billion)

24.2 (average between 2000 and 2009), 39.4

43.3 (2010)

By regional category, exports to Japan (up 25.5%), the ASEAN countries (up 21.8%), China
(up 14.9%) and the Middle East (up 15.7%) posted a double-digit growth, while those to the
EU (down 20.1%) and the US (down 3.4%) decreased due to the global debt concerns.
By business category, exports of petroleum products (up 29.0%), automobiles (up 18.9%),
and steel products (up 20.5%) stayed on an upward track, while those of semiconductors
(down 4.3%) and LCDs (down 2.2%) remained negative.
(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

Sep

Oct1

363.53

466.38

101.08

120.24

116.32

128.75

131.00

142.72

141.57

46.83

47.36

-13.9

28.3

35.8

33.1

22.7

23.8

29.6

18.7

21.7

18.8

9.3

1.16

1.70

1.51

1.76

1.72

1.79

1.99

2.08

2.05

2.13

2.10

323.08

425.21

98.16

105.63

105.70

115.73

123.73

134.38

134.97

45.27

43.07

-25.8

31.6

37.4

42.8

24.6

24.6

25.9

27.2

22.3

29.3

16.4

11.6

1.46

0.47

1.54

1.57

1.61

1.87

1.96

2.05

2.06

1.91

1. Preliminary
Source: Korea Customs Service

Imports in October increased 16.4 percent (preliminary) year-on-year to US$43.07 billion.
Imports of commodities decreased to US$26.8 billion from US$28.6 billion in the previous
month since international commodity prices had fallen and the won against the dollar had
dropped, leading to a slow year-on-year increase.
2011
Jul

Aug

Sep

Oct

CRB index (average)

344.6

331.3

318.4

310.8

Won against dollar (average)

1,059

1,073

1,119

1,155

The current account surplus (preliminary) in October was US$4.29 billion, posting a monthon-month increase.
(US$ billion)
2009

Trade balance
1. Preliminary
Source: Korea Customs Service

16

November 2011

2010

2011

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Sep

Oct1

40.45

41.17

2.93

14.61

10.62

13.02

7.26

8.33

6.60

1.56

4.29

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 September increased 1.1 percent month-on-month
and 6.8 percent year-on-year in line with brisk semiconductors and parts.
By business category, semiconductors and parts (up 7.3%) and non-metallic minerals (up
3.3%) increased month-on-month, while machinery (down 6.6%) and automobiles (down
1.7%) went down.
The manufacturing inventory-shipment ratio decreased month-on-month by 1.8 percentage
points, as the inventory added 0.2 percent and the shipments 1.8 percent.
By business category, the shipments of semiconductors and parts (up 11.3%) and primary
metals (up 2.5%) increased month-on-month, while those of automobiles (down 2.5%) and
groceries (down 5.1%) declined. The inventories of semiconductors and parts (up 1.4%) and
refined petroleum products (up 9.8%) climbed month-on-month, while those of computers
(down 14.4%) and machinery (down 4.3%) fell.
The average operation ratio of the manufacturing sector gained 0.9 percentage points to
81.3 percent, 3.0 percentage points higher than the average of 78.3 percent between 2000
and 2010.
(Percentage change from same period in previous year)
2010

Jul

Aug1

Sep1

Q3

Sep

Q2

Q3

-

1.1

0.6

0.0

-0.1

-0.4

-1.9

1.1

(y-o-y)

16.2

10.9

2.9

7.2

5.1

3.9

4.7

6.8

- Manufacturing

16.7

11.2

2.8

7.4

5.1

3.8

4.7

7.0

∙ICT

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

Mining and
manufacturing
activity2

2011
1

25.2

19.1

13.5

10.5

5.5

3.4

2.7

10.4

∙Automobiles

23.1

11.3

-3.1

12.1

16.2

11.8

22.8

15.2

Shipment

14.4

9.9

2.4

7.2

4.9

3.1

4.2

7.5

- Domestic demand

11.5

6.6

-2.2

3.8

2.5

1.0

2.6

3.9

3

- Exports

18.2

14.5

8.6

11.6

8.0

5.7

6.2

11.8

Inventory4

17.4

19.1

19.1

10.0

10.4

9.8

11.8

10.4

Manufacturing Average operation ratio (%)
activity
Production capacity

81.2

81.2

81.2

81.4

81.3

82.1

80.4

81.3

7.2

7.8

7.4

5.8

3.9

4.4

3.6

3.8

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, given
the favorable export situations. However, it may possibly be affected by global uncertainties.
Daily exports (US$ billion)
2.16 (May 2011)

2.03 (Jun)

1.89 (Jul)

1.90 (Aug)

2.13 (Sep)

2.11 (Oct)

Automobile production (thousand)
389 (May 2011)

438 (Jun)

392 (Jul)

320 (Aug)

374 (Sep)

OECD leading indicator (base=100)
102.3 (May 2011)

18

November 2011

101.9 (Jun)

101.4 (Jul)

100.8 (Aug)

415 (Oct)

6-1

Industrial production
Source: Statistics Korea (industrial activity trend)

6-2

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

6-3

Inventory
Source: Statistics Korea (industrial activity trend)

Economic Bulletin

19

7. Service sector activity
Service activity in September decreased 1.6 percent from the previous month due to
sluggish wholesale & retail sales, transportation services, and financial & insurance
services. On a year-on-year basis, service activity rose 3.8 percent.
With Chuseok holidays this year falling about 10 days earlier than usual, the output increase
of holiday-related services was already reflected in the previous month, dragging down the
index in September.
Service activities in wholesale & retail sales (down 3.4%) and transportation services (down
1.5%), both of which are susceptible to holidays, fell due to Chuseok holidays.
Due to volatility amid the ongoing global fiscal crisis, such as declining stock prices, financial
& insurance services (down 2.9%) dropped significantly.
KOSPI (points)
2,172.3 (August 1)

1,880.1 (August 31)

1,769.7 (September 30, down 18.5% from August 1)

Stock-market trading value (trillion won)
178.7 (August)

128.3 (September, down 28.2% from August 1)

Real estate & renting declined 1.8 percent month-on-month and 3.5 percent year-on-year,
continuing the downward trend.
(Percentage change from same period in previous year)
Weight

2009

2010

Annual Annual

Q3

Q4

Q1

Q2

Q31

Aug1

Sep1

4.2

2.3

3.2

2.7

3.3

4.2

4.9

3.8

100.0

1.8

- Wholesale & retail sales

21.8

-0.4

5.7

5.6

5.0

4.7

4.0

4.8

3.4

4.7

2.4

- Transportation services

9.0

-6.6

12.0

14.3

10.1

10.0

7.2

3.5

4.2

4.7

4.0

- Hotels & restaurants

7.7

-1.4

1.2

0.7

1.3

1.7

-0.6

1.9

1.3

1.0

0.4

- Information & communications services

8.4

0.9

1.9

0.4

2.2

3.6

3.9

3.4

5.2

5.9

5.7

Service activity index

- Financial & insurance services

3.9

2011

Q2

15.3

7.8

4.6

2.5

1.4

8.2

7.2

8.2

8.9

11.0

8.0

- Real estate & renting

6.3

5.3

-8.6

-2.4

-15.9

-24.2

-17.7

-11.5

-3.3

-3.0

-3.5

- Professional, scientific & technical services

4.8

1.2

-0.5

2.1

-3.9

-1.3

-3.6

-1.4

3.8

3.7

7.5

- Business services

2.9

-3.0

7.5

8.1

7.6

8.6

5.7

5.5

2.7

2.3

1.0

- Educational services

10.8

2.1

2.0

1.4

0.5

3.1

1.1

0.2

2.0

2.7

1.3

- Healthcare & social welfare services

6.0

10.4

8.8

11.0

8.6

4.6

6.2

5.0

5.1

5.0

5.7

- Entertainment, cultural & sports services

2.9

-0.5

-0.4

-0.1

-0.4

2.7

2.4

1.2

2.1

1.0

2.2

- Membership organizations

3.8

-2.1

4.3

6.0

5.0

4.5

2.9

2.4

1.5

1.1

1.3

- Sewerage & waste management

0.4

3.7

5.1

6.0

1.7

6.4

0.0

-3.1

0.2

7.1

-0.8

1. Preliminary
Source: Statistics Korea

Service activity is expected to improve in October as a low base effect from the previous
month is removed when the index was affected by Chuseok holidays, and with stabilizing
financial markets.

20

November 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)

September 2011 service industry by business

Source: Statistics Korea (service industry activity trend)

Economic Bulletin

21

8. Employment
The number of workers on payroll in September increased by 264,000 from a year earlier
to 24,320,000 and the employment rate (seasonally adjusted) stayed flat year-on-year to
59.1 percent.
By status of workers, the number of regular workers (up 547,000) continued to increase.
Meanwhile, daily workers (down 213,000) and unpaid family business employees (down
98,000) temporarily plummeted due to Chuseok holidays. As the employment survey was
carried out from September 11 to 17, working days and working hours were affected by
Chuseok holidays, which fell in the survey week.
By industry, services (up 434,000) such as health & welfare (up 120,000), and professional,
scientific & technical services (up 88,000) led the upward trend. Meanwhile, employment in
manufacturing (down 48,000) and construction (down 50,000) accelerated the decline as a
result of fewer workings days due to Chuseok holidays.

2009
Annual
Number of employed (million)

2010

Q4

Annual

Q1

Q2

2011

Q3

Q4

Sep

Q1

Q2

Q3

Aug

Sep

23.51 23.63 23.83 23.04 24.17 24.12 23.99 24.05 23.46 24.57 24.48 24.50 24.32

Employment rate (%)

58.6

58.7

58.7

57.0

59.6

59.3

58.9

59.1

57.4

59.9

59.5

59.6

59.1

(seasonally adjusted)

58.6

58.5

58.7

58.3

58.9

58.9

58.6

58.7

58.8

59.2

59.1

59.5

58.6

Employment growth (y-o-y, thousand)

-72

-6

323

132

433

369

358

249

423

402

363

490

264

(Excluding agriculture, forestry & fishery)

-34

110

405

296

518

414

393

307

451

39

414

529

323

-126

-49

191

61

172

262

269

252

228

112

-12

-28

-48

- Construction

-91 -107

33

-61

44

92

57

49

-3

-41

-35

-1

-50

- Services

179

261

200

- Agriculture, forestry & fishery

-38 -116

- Wage workers

247

385

∙Regular workers

383
22

- Manufacturing

∙Temporary workers

313

325

83

80

32

224

331

472

572

434

-82 -164

-85

-45

-35

-58

-28

3

-51

-38

-59

517

371

623

541

532

416

519

421

392

462

275

515

697

651

766

671

699

611

605

621

572

559

547

105

-34

-37

42

-26 -114

-45

-88 -137

-76

-91

-60

-63 -104

-6

-213

∙Daily workers

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

-53 -151

2

- Non-wage workers

-319 -391 -194 -239 -189 -172 -174 -167

-96

-19

-29

-28

-11

∙Self-employed workers

-259 -279 -118 -106

-91 -130 -146 -131 -115

-39

34

53

88

31

89

181

117

188

207

212

161

266

221

208

267

181

- Female

-103

-94

142

15

245

163

146

88

157

181

155

223

83

- 15 to 29

-127

-77

-43

-12

-58

-44

-57

-58

-49

-74

-1

39

2

- 30 to 39

-173 -149

-4

-42

-13

21

17

-7

-34

-13

-83

-93

-104

- Male

- 40 to 49

-24

-46

29

-21

48

40

50

26

77

59

46

61

12

- 50 to 59

198

230

294

251

342

295

287

262

286

294

270

300

241

54

37

47

-44

114

57

60

26

143

137

131

182

114

- 60 or more
Source: Statistics Korea

22

November 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 September decreased by 100,000 year-on-year to
758,000 and the year-on-year unemployment rate (seasonally adjusted) dropped 0.4
percentage points to 3.0 percent.
The youth unemployment rate fell 0.9 percentage points year-on-year to 6.3 percent.

2009

2010

Annual

Q4

Number of unemployed (thousand)

889

817

Unemployment growth (y-o-y, thousand)

119

60

31

80

25

- Male

Annual

Q1

2011

Q2

Q3

Q4

Sep

868

873

808

857 1,028

222

-75

-13

-10

32

-7

83

-47

-48

-16

920 1,130

Q1

Q2

Q3

Aug

Sep

865

786

762

758

-101

-3

-88

-69

-100

-40

-70

-32

-48

-37

-39

- Female

40

36

38

139

-29

35

6

72

-32

29

-40

-32

-61

Unemployment rate (%)

3.6

3.3

3.7

4.7

3.5

3.5

3.3

3.4

4.2

3.4

3.1

3.0

3.0

(Seasonally adjusted)

3.6

3.5

3.7

4.3

3.5

3.6

3.4

3.7

3.9

3.4

3.2

3.1

3.2

- 15 to 29

8.1

7.6

8.0

9.5

7.7

7.6

7.1

7.2

8.8

7.9

6.7

6.3

6.3

- 30 to 39

3.6

3.3

3.5

3.9

3.6

3.5

3.2

3.5

4.0

3.5

3.2

3.4

3.1

- 40 to 49

2.4

2.3

2.5

2.9

2.3

2.5

2.2

2.7

2.5

2.1

2.0

2.0

2.0

- 50 to 59

2.5

2.2

2.5

3.2

2.1

2.3

2.3

2.3

2.7

2.0

2.1

2.0

2.2

- 60 or more

1.6

1.5

2.8

5.8

2.1

2.0

1.9

1.9

4.5

2.3

2.1

1.8

2.2

Source: Statistics Korea

The economically inactive population in September was up 294,000 from a year earlier to
16,070,000. Meanwhile, the labor force participation rate fell 0.2 percentage points year-onyear to 61.0 percent.
The number of workers quitting jobs due to rest, time-off and leisure (up 202,000),
housework (up 248,000), and childcare (up 25,000) increased, while those who quit jobs
due to education (down 50,000) and old age (down 32,000) decreased.

2009
Annual

2011

2010

Q4

Annual Q1

Q2

Q3

Q4

Sep

Q1

Q2

Q3

Aug

Sep

Economically inactive population (million) 15.70 15.83 15.84 16.25 15.49 15.66 15.96 15.77 16.39 15.56 15.85 15.86 16.07
Labor force participation rate (%)

60.6

60.7

61.0

59.8

61.8

61.5

60.8

61.2

59.9

62.0

61.5

61.4

61.0

(seasonally adjusted)

60.6

60.6

61.0

61.0

61.0

61.1

60.8

60.9

61.1

61.3

61.0

61.3

60.6

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

447

456

143

166

146

128

133

199

138

66

191

47

294

15 -125 -118 -126 -149 -107 -160

-44

-16

17

19

25

143

- Childcare

40

- Housework

148

235

201

237

175

203

189

229

130

27

78

248

- Education

31

-36

12

-74

23

46

55

54

-16

-39

-78 -125

-50

- Old age

88

92

80

193

59

43

25

28 -103

-58

-22

-12

-32

123

123

-56 -187

-27

15

-27

68

163

193

162

202

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

24

November 2011

241

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 October rose 7.9 percent month-on-month to 1,909 points
from the previous month’s 1,770 points. Due to weak investment sentiment affected by
spreading concerns over a possible Greek default, the Korean stock market fell to 1,667
points on October 5, showing high volatility.
The index rose rapidly thereafter, boosted by the European Central Bank’s decision on
October 6 to inject liquidity, measures agreed at the EU summit in Brussels on October 26 to
resolve Europe’s debt problems, and the improvement in US GDP growth in the third quarter.
Foreign investors shifted to a net-buying position of 1.2 trillion won from the previous
month’s net-selling position of 1.4 trillion won.
(End-period, point, trillion won)
KOSPI
Sep 2011

Oct 2011

Stock price index

1,769.7

1,909.0

Market capitalization

1,001.9

1,081.8

Average daily trade value

6.4

Foreign stock ownership

32.9

KOSDAQ
Change

Sep 2011

Oct 2011

Change1

+139.4 (+7.9%)

449.7

490.7

+41.0 (+9.1%)

+79.9 (+8.0%)

93.2

102.0

+8.8 (+9.5%)

6.7

+0.3 (+4.5%)

2.19

3.04

+0.8 (+38.8%)

33.1

+0.2 (+0.6%)

9.9

9.1

-0.8 (-7.8%)

1

1. Change from the end of the previous month

9.2 Exchange rate
The won/dollar exchange rate in October decreased 68.1 won to wrap up the month at
1,110.0 won from 1,178.1 won at the end of September.
As EU leaders reached an agreement on Greek haircuts and an expanded European Financial
Stability Fund (EFSF), worries over the eurozone crisis eased and won/dollar exchange
rate stabilized.
Due to Japan’s currency market intervention on October 31, the yen weakened and the
won/100 yen exchange rate dropped 141 won from the end of the previous month.
(End-period)
2007

2008

2009

2010

2011

Dec

Dec

Dec

Dec

Sep

Oct

Change1

Won/Dollar

936.1

1,259.5

1,164.5

1,134.8

1,178.1

1,110.0

+2.2

Won/100 Yen

828.6

1,396.8

1,264.5

1,393.6

1,539.0

1,398.0

-0.3

1. Appreciation from the end of the previous year (%); the exchange rate is based on the closing price at 3:00 p.m., local time.

26

November 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 dropped 3 basis points in October to 3.63 percent from the
previous month’s 3.66 percent. Although flight to safety assets have declined helped by
eased concern over the fiscal crisis in Europe, the Treasury bond yields slightly fell as
concerns over foreign investment outflow and the key interest rate froze.
(End-period)
2006

2007

2008

2009

2010

Dec

Dec

Dec

Dec

Dec

Aug

Sep

2011
Oct

Change1

Call rate (1 day)

4.60

5.02

3.02

2.01

2.51

3.27

3.28

3.26

-2

CD (91 days)

4.86

5.82

3.93

2.88

2.80

3.59

3.58

3.57

-1

Treasury bonds (3 yrs)

4.92

5.74

3.41

4.44

3.38

3.49

3.55

3.51

-4

Corporate bonds (3 yrs)

5.29

6.77

7.72

5.56

4.27

4.23

4.36

4.35

-1

Treasury bonds (5 yrs)

5.00

5.78

3.77

4.98

4.08

3.62

3.66

3.63

-3

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

9.4 Money supply & money market
The M2 (monthly average) in August expanded 4.0 percent from a year earlier excluding
cash management accounts (CMAs), which were included in M2 since July 2009.
The month-on-month M2 growth increased 3.2 percent, helped by equity-type funds inflows,
expanded business sector credit extension, and a decrease in money withdrawal by the
government sector.
(Percentage change from same period in previous year, average)

M1

2

M2
Lf

3

2008

2009

Annual

Annual

2010
Annual

Q1

2011

Q2

Q3

Q4

May

Jun

Jul

Aug
4

Aug1
422.64

-1.8

16.3

11.8

14.5

10.7

10.8

11.2

7.4

5.4

3.8

5.4

14.3

10.3

8.7

9.4

9.5

8.6

7.4

3.7

3.0

3.2

4.04

1,719.44

4.6

4

2,230.24

11.9

7.9

8.2

8.5

9.1

8.2

7.1

4.4

4.1

5.5

1. Balance at end August 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 September, bank deposits grew at a faster pace, helped by solid growth in time deposits,
a shift to net issuance of bank debentures, and decelerated decline in instant access account
deposits. Meanwhile, asset management company (AMC) deposits showed slower growth. It
was attributable to the deceleration of growth in equity-type funds and MMF compared to
the previous month, affected by banks’ fund withdrawals.
(Monthly change, end-period, trillion won)
2009
Annual

2010
Sep

Annual

2011
Sep

Jul

Aug

Sep

Sep1

Bank deposits

54.8

16.5

36.9

-3.3

7.1

3.9

6.8

1,085.9

AMC deposits

-27.6

-18.3

-16.7

-2.0

0.6

4.4

3.0

1,309.1

1. Balance at end September, trillion won

28

November 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 September posted US$3.1 billion,
significantly expanding the growth from the previous month’s US$ 290 million.
The goods account accelerated the surplus to US$2.37 billion from the previous month’s
US$370 million, helped by increasing working days and robust exports of petroleum
products and automobiles.
The service account shifted to a surplus for the first time in four months as the travel account
and business service account improved.
The primary income account surplus narrowed to US$540 million from the previous month’s
US$700 million, owing to increasing interest payments. Meanwhile, the secondary income
account reversed to a surplus of US$120 million from the deficit of US$200 million a month
earlier, affected by decreased overseas remittance.
(US$ billion)
2009

2010

2011

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Aug

Sep1

Current account

32.79

28.21

0.26

8.86

9.93

9.16

2.61

5.49

7.17

0.29

3.10

- Goods balance

37.87

41.90

4.79

12.24

12.54

12.34

5.84

7.66

7.47

0.37

2.37

- Service balance

-6.64

-11.23

-4.20

-1.87

-2.96

-2.20

-2.54

-0.80

-1.20

-0.58

0.07

- Income balance

2.28

0.77

0.55

-1.01

1.30

-0.07

0.39

-0.82

1.31

0.70

0.54

- Current transfers

-0.71

-3.23

-0.87

-0.50

-0.95

-0.91

-1.08

-0.55

-0.42

-0.20

0.12

1. Preliminary
Source: The Bank of Korea

The capital and financial account (preliminary) in September registered an outflow of
US$4.50 billion.
Capital & financial account balance (US$ billion)
0.39 (Apr 2011)

-3.96 (May)

-3.25 (Jun)

-2.47 (Jul)

-1.69 (Aug)

-4.50 (Sep1)

1. Preliminary

The direct investment account accelerated the outflow to US$2.10 billion from the previous
month’s outflow of US$1.04 billion due to increasing overseas direct investment by locals.
The portfolio investment account shifted to an inflow of US$1.77 billion from the previous month’s
outflow of US$2.92 billion as the net inflow of debt securities investment funds continued
while the net outflow of foreign investor funds for equity securities investment decreased.
The financial derivatives account decelerated the outflow to US$150 million from the
previous month’s US$1.87 billion. Meanwhile, the other investment account shifted to an
outflow of US$17.09 billion from the previous month’s inflow of US$4.64 billion as local
banks’ investment in short term overseas funds increased.
The current account in October is expected to maintain a surplus, helped by a continuing
goods account surplus.

30

November 2011

10-1 Current account balance
Source: The Bank of Korea (balance of payments trend)

10-2 Travel balance
Source: The Bank of Korea (balance of payments trend)

10-3 Capital & financial account balance
Source: The Bank of Korea (balance of payments trend)

Economic Bulletin

31

11. Prices and international commodity prices
11.1 Prices
Consumer prices in October rose 3.9 percent from the previous year and 0.2 percent from
the previous month. The year-on-year increase rate was 0.4 percentage points lower than
September’s 4.3 percent. The price increase of agricultural, livestock & fishery products
moderated, along with those of personal services. However, prices of certain agricultural
products such as chili powder rose, and house rents were up from the levels in September.
Core consumer prices, which exclude oil and agricultural products, rose 3.7 percent year-onyear and 0.2 percent month-on-month. Consumer prices for basic necessities, a barometer
of perceived consumer prices, were up 3.2 percent compared to the same month of the
previous year.
Expected inflation remained at high levels, while the upward trend in import prices accelerated.
Expected inflation (%)
3.9 (Jun 2011)

4.0 (Jul)

4.2 (Aug)

4.3 (Sep)

4.2 (Oct)

Import price increases (m-o-m, %, won)
9.8 (Jul 2011)

10.0 (Aug)

14.0 (Sep)

Consumer price inflation

(%)
2010

2011

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Month-on-Month

0.2

-0.6

0.6

0.9

0.8

0.5

0.0

0.0

0.2

0.7

0.9

0.1

-0.2

Year-on-Year

4.1

3.3

3.5

4.1

4.5

4.7

4.2

4.1

4.4

4.7

5.3

4.3

3.9

Core consumer prices (y-o-y)

1.9

1.8

2.0

2.6

3.1

3.3

3.2

3.5

3.7

3.8

4.0

3.9

3.7

(m-o-m)

0.0

0.1

0.3

0.6

0.7

0.3

0.2

0.5

0.3

0.3

0.3

0.2

-0.2

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

4.8

3.6

3.9

4.7

5.2

4.9

4.1

3.8

4.3

4.8

5.2

3.8

3.2

Source: Statistics Korea

The prices of most agricultural, livestock & fishery products fell (down 3.6%, m-o-m) as
supply chains stabilized, but those of chili powder rose as a result of small harvest.
Prices of agricultural, livestock & fishery products in October (m-o-m, %)
Radish (-50.6), spinach (-42.9), Chinese cabbage (-38.3), pork (-12.3), mackerel (-10.2), egg (-7.5), rice (4.4),
chili powder (10.4)

Industrial product prices stabilized overall (down 0.1%, m-o-m), despite strength in oil
product and processed food prices.
Rents continued to rise (up 0.4%, m-o-m) due to strong demand for rental housing. Price
increases in personal services, which include dining out costs, have regained stability, rising
0.1 percent month-on-month.

Consumer price inflation in major sectors

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

Total

Agricultural,
livestock & fishery
products

-0.2

-3.6

0.1

-3.3

0.4

0.5

0.1

-0.16

-0.35

0.03

-0.05

0.03

0.08

0.03

Industrial
products

Oil
products

Housing
rents

Public
utility

Personal
services

Year-on-Year (%)

3.9

-1.7

7.6

29.1

4.9

1.1

3.2

Contribution (%p)

3.90

-0.17

2.35

0.37

0.37

0.18

1.11

Source: Statistics Korea

32

November 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 October, international oil prices edged down while domestic oil product prices rose from
the previous month.
International oil prices were slightly lower compared to September, reflecting continued
uncertainties in the global economy. However, prices have been inching up since midOctober affected by the US economy posting accelerated growth in the third quarter (2.5%
annualized rate) and with US and OECD crude oil inventories decreasing.
US crude oil inventories in October (Energy Information Administration, as of Oct 21)
338 million barrels (down 8.3% y-o-y, down 0.4% m-o-m)

OECD crude oil inventories in August (International Energy Agency, as of end-Oct)
2.692 billion barrels (down 11.2% m-o-m)
(US$/barrel, period average)
2008

2009

2010

Annual

Annual

Annual

2011
Apr

May

Jun

Jul

Aug

Sep

Oct

Dubai crude

94.3

61.9

78.1

115.8

108.0

107.5

110.2

105.0

105.7

103.5

Brent crude

97.5

61.7

79.7

123.3

114.3

114.0

116.8

110.0

111.5

109.1

WTI crude

99.9

61.9

79.5

110.0

101.3

96.3

97.3

86.3

85.6

86.5

Source: Korea National Oil Corporation

Due to the belated effect of the weakening won, domestic oil product prices rose despite
lower international oil prices.
Won/dollar exchange rate in October
1,081 (Jun 2011)

1,060 (Jul)

1,073 (Aug)

1,119 (Sep)

1,155 (Oct)
(Won/liter, period average)

2008

2009

2010

2011

Annual

Annual

Annual

Apr

May

Jun

Jul

Aug

Sep

Oct

Gasoline prices

1,692

1,601

1,710

1,951

1,938

1,915

1,935

1,946

1,945

1,978

Diesel prices

1,614

1,397

1,503

1,793

1,773

1,736

1,754

1,758

1,746

1,772

Source: Korea National Oil Corporation

Prices of international commodities decreased in October, due to recession fears led by the
European financial crisis and poor economic indicators of major countries.
Despite production disruptions caused by strikes at copper mines in Indonesia and Peru,
non-ferrous metal prices fell due to concerns about lower demand, as the chinese economy
might slow down.
Prices of non-ferrous metals in October (m-o-m, %)
Electrolytic copper (-12.1), nickel (-7.5), aluminum (-5.6), tin (-3.8)

International grain prices fell due to expectations of increased production and inventories.
World grain production/inventory outlook for 2011~12 (USDA, Oct)
Production: 2.278 billion tons (up 0.5%, m-o-m)
Inventories: 459 million tons (up 3.7%, m-o-m)

Prices of grain in October (m-o-m, %)
Wheat (-9.4), soybean (-9.4), corn (-8.9), raw sugar (-3.4)

Reuters index*

(Period average)

2008

2009

Annual

Annual

Annual

2010
Apr

May

Jun

Jul

Aug

Sep

Oct

2,536

2,079

2,553

3,246

3,128

3,143

3,145

3,038

2,978

2,781

* A weighted average index of 17 major commodities

34

November 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 slightly moderated in October, with
prices rising 0.5 percent month-on-month.
Apartment sales prices in the Seoul metropolitan area remained unchanged for the third
consecutive month.
Apartment sales price increases decelerated in areas excluding the Seoul metropolitan area,
in particular Busan (up 0.8%, m-o-m), Daegu (up 1.0%, m-o-m) and Gangwon Province (up
1.2%, m-o-m). Apartment prices in 5 metropolitan cities and other cities climbed 1.0 percent
and 1.2 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

2.3

1.6

2.5

0.6

1.1

1.3

1.2

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 -0.1 -0.04 -0.04 -0.05 -0.02

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 -0.2 -0.07 -0.06 -0.06 -0.04

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 0.0 -0.01 -0.02 -0.03 -0.00

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 0.0 -0.01 -0.01 -0.03 -0.02

5 metropolitan cities

1.0

2.8

8.7

1.2

2.0

2.3

2.4

2.2

1.4

1.4 1.0

2. Upscale area of Southern Seoul

3. Northern Seoul

0.7

Aug Sep Oct Oct31 Oct101 Oct171 Oct241

Nationwide

1. Weekly trends

1.0

Jul

0.6

1.6

0.7

1.4

0.7 0.5

0.18 0.16 0.14 0.13

0.31 0.31 0.31 0.32

Source: Kookmin Bank

Nationwide apartment rental prices in October were up 1.1 percent, decelerating from the
previous month’s 1.8 percent. Price increases moderated in Seoul (up 1.0%, m-o-m),
Gyeonggi Province (up 1.1%, m-o-m) and the Seoul metropolitan area (up 1.1%, m-o-m).
Apartment rental price increase in major districts in Seoul (m-o-m, %)
Gangnam (0.5), Seocho (0.7), Songpa (1.1), Gangdong (2.4)

Nationwide apartment rental prices

(Percentage change from previous period)

2008 2009 2010

2011

Annual Annual Annual Jan Feb Mar Apr May Jun

Nationwide
Seoul
Gangnam

4.5

8.8

1.1

2.0

2.3

1.6

1.1

0.8

1.0

1.5

1.8

1.1

0.35 0.30 0.25 0.18

8.1

7.4

1.1

2.1

1.8

0.7

0.3

0.5

1.1

1.7

2.2

1.0

0.29 0.25 0.17 0.05

8.8

1.3

1.9

1.4

0.6

0.3

0.6

1.2

1.7

2.1

0.9

0.27 0.15 0.15 0.01

0.5

5.4

5.6

1.0

2.4

2.3

0.8

0.4

0.2

1.0

1.8

2.3

1.2

0.31 0.36 0.19 0.10

-0.4

5.6

7.2

1.0

2.1

2.4

1.2

0.5

0.5

0.9

1.6

2.0

1.1

0.33 0.24 0.16 0.07

3.9 12.0

1.3

2.1

2.2

2.2

1.9

1.3

1.0

1.3

1.4

1.1

0.34 0.34 0.32 0.33

5 metropolitan cities
1. Weekly trends

Oct Oct31 Oct101 Oct171 Oct241

0.8

Gangbuk3
Seoul metropolitan area

Aug Sep

-1.8

-3.6 10.4

2

Jul

1.6

2. Upscale area of Southern Seoul

3. Northern Seoul

Source: Kookmin Bank

Apartment sales transactions in September decreased 2.1 percent from the previous
month’s 44,049 to 43,118. The transactions were up 28.0 percent from 33,685 a year earlier.

Apartment sales transactions

(Monthly average, thousand)

2007 2008 2009

2010

2011

Annual Annual Annual Annual Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Nationwide

38

39

44

40

32

Source: Ministry of Land, Transport and Maritime Affairs

36

November 2011

31

34

41

54

63

45

52

59

56

48

47

Jul
43

Aug Sep
44

43

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 September rose for the eleventh consecutive month (up 0.09%,
m-o-m), but still 1.35 percent lower than the pre-crisis peak reached in October 2008. Land
prices were higher compared to the same month of the previous year, when the prices fell
0.04 percent. The pace of increase slightly accelerated nationwide.
Monthly land prices in Seoul (up 0.05%), the Seoul metropolitan area (up 0.09%), Gyeonggi
Province (up 0.13%) and Incheon (up 0.05%) continued to rise.
Land price increases in Seoul metropolitan area (m-o-m, %)
0.11 (Apr 2011)

0.10 (May)

0.10 (Jun)

0.10 (Jul)

0.10 (Aug)

0.09 (Sep)

Land prices in areas excluding the Seoul metropolitan area rose 0.11 percent month-onmonth in September, continuing the upward trend since October 2010.
Land price increases in areas excluding Seoul metropolitan area (m-o-m, %)
0.07 (Apr 2011)

0.09 (May)

0.09 (Jun)

0.10 (Jul)

0.09 (Aug)

Land prices by region

0.11 (Sep)

(Percentage change from previous period)

2007 2008

2009

Annual Annual Annual Q3

2010
Q4

2011

Annual Q3

Q4

Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Nationwide

3.88

-0.31 0.96

0.88 0.94

1.05 -0.05

0.11 0.09 0.09 0.11

0.10

0.10

0.10

0.10

0.09

0.09

Seoul

5.88

-1.00 1.40

1.30 0.81

0.53 -0.25

0.39 0.12 0.12 0.15

0.12

0.09

0.07

0.07

0.05

0.05

Gyeonggi

4.22

-0.26 1.22

1.13 1.36

1.49 -0.08

0.07 0.08 0.08 0.10

0.11

0.12

0.14

0.15

0.15

0.13

Incheon

4.86

1.37 1.99

1.16 1.70

1.43 -0.10

0.02 0.06 0.06 0.06

0.06

0.06

0.06

0.05

0.06

0.05

Source: Korea Land & Housing Corporation

Nationwide land transactions in September recorded 181,000 land lots, down 7.7 percent from
the previous month and up 24.6 percent from 145,000 a year earlier. Land transactions were
3.6 percent more than the most recent five-year September average of 188,000 land lots.
Monthly land transactions decreased significantly in areas such as Busan (down 14.6%),
Gwangju (down 12.9%), Daejeon (down 12.5%), and South Gyeongsang Province (down 17.6%).

Land sales transactions

(Land lot, thousand)

2007 2008

2009

2010

2011

Annual 1 Annual1 Annual1 Nov Dec Annual 1 Sep Nov Dec Jan
Nationwide

Feb Mar Apr May Jun

Jul

Aug Sep

208

208

203

207

241

187

145

208

257

191

176

244

226

212

207

196

196

181

Seoul

33

26

22

19

21

16

11

18

24

18

17

23

19

18

18

15

17

16

Gyeonggi

49

45

46

48

58

41

32

45

58

46

38

52

46

43

40

40

39

39

Incheon

13

13

10

11

12

8

7

9

11

8

9

13

11

13

10

11

9

9

1. Monthly average
Source: Korea Land & Housing Corporation

38

November 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 September decreased 0.1 percent month-on-month and increased 4.6
percent year-on-year. Mining & manufacturing (up 1.1%, m-o-m), public administration (up
3.8%, m-o-m) and construction (up 3.8%, m-o-m) increased, but lower output in services
(down 1.6%, m-o-m) contributed to the overall decrease in industrial output.
The cyclical indicator of the coincident composite index fell 0.8 points in September.
Among the components of the coincident composite index, the volume of imports rose,
while six components, such as the value of construction completion and wholesale & retail
sales, fell compared to the previous month.
Components of coincident composite index in September (m-o-m)
Volume of imports (0.3%), service activity (0.0%), number of non-farm payroll employment (-0.2%), mining &
manufacturing production (-0.4%), manufacturing operation ratio (-0.5%), wholesale & retail sales (-0.9%),
domestic shipment (-0.9%), value of construction completion (-4.7%)

The year-on-year leading composite index fell 0.4 percentage points from the previous month.
Among the components of the leading composite index, liquidity in the financial institutions
rose from the previous month, but eight other components, including the composite stock
price index and value of machinery orders received, dropped.
Components of the leading composite index in September (m-o-m)
Liquidity in the financial institutions (0.8%), indicator of inventory cycle (0.0%p), spreads between long &
short term interest rates (-0.1%p), net terms of trade (-0.4%), value of capital goods imports (-1.5%),
consumer expectations index (-2.0p), ratio of job openings to job seekers (-2.2%p), composite stock price
(-4.7%), value of construction orders received (-5.2%), value of machinery orders received (-7.2%)

2011
Feb
Industrial output (m-o-m, %)

Mar

Apr

May

Jun1

Jul1

Aug1

Sep1

-4.7

2.8

-1.3

1.7

1.7

-1.6

-0.2

-0.1

(y-o-y, %)

0.1

3.4

3.2

4.4

4.0

3.1

4.4

4.6

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

0.1

0.4

-0.3

0.8

0.8

0.7

0.4

-0.4

100.6

100.6

99.9

100.2

100.6

100.9

100.9

100.1

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

-0.2

0.0

-0.7

0.3

0.4

0.3

0.0

-0.8

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

-0.2

-0.3

-0.4

0.5

0.5

0.5

0.1

-0.2

2.3

1.6

1.0

1.3

1.7

2.0

1.9

1.5

-0.7

-0.7

-0.6

0.3

0.4

0.3

-0.1

-0.4

12 month smoothed change
in leading composite index (%)
(m-o-m, %p)
1. Preliminary

40

November 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
Current Financial Situation of Korea:
Solid Enough to Absorb Impact from Outside

With mounting concern over the spread of the European crisis and a subsequent global crisis
that may follow, it would be necessary to examine the financial situation of Korea, for
whether the country can absorb external shocks or not will depend on its financial capability
as well as fiscal soundness.

Current situation
1) Fiscal situation
Korea’s fiscal situation have shown better-than-expected improvement since it overcame the
2008 global financial crisis, backed by tightly controlled expenditures and rising tax revenues.
* Expenditure increase (annual, %): 6.5 (average between 2005 and 2007), 10.8 (2008), 14.8 (2009),
-3.0 (2010), 5.5 (2011)
* Tax revenue increase (annual, %): 11.1 (average between 2005 and 2007), 3.6 (2008), -1.7 (2009),
8.0 (2010), 10.1 (2011)

The country has posted relatively fast fiscal recovery compared to major economies.

(percentage to GDP)

Consolidated fiscal balance
excluding social security funds
National debt

42

November 2011

2011-2015, plan

2009
outcome

2010
outcome

2011

2012

2013

2014

2015

-4.1

-1.1

-2.0

-1.0

0.0

0.2

0.3

33.8

33.4

35.1

32.8

31.3

29.6

27.9

* Fiscal balance (percentage to GDP, 2009
* National debt (percentage to GDP, 2009

2010): -8.2

-7.7 (OECD average), -4.4

-1.1 (Korea)

2010): 90.9

97.6 (OECD average), 33.8

33.4 (Korea)

2) Current situation compared with that when the Asian financial crisis broke out
With sustained efforts to reform the economy after the Asian financial crisis, the Korean
economy has considerably improved.
Corporate financial soundness has been significantly improved as excessive borrowing has
been removed, while corporate governance that fits the global standard has taken root in
line with increased accounting transparency.
* Corporate borrowing ratio (debt to capital, %): 424.6 (1997), 129.8 (2008), 114.8 (2010)
* Corporate capital ratio (capital to total asset, %): 19.0 (1997), 43.5 (2008), 46.6 (2010)

As a result of persistent efforts to reform the financial industry and to impose more efficient
and effective supervision on it, the financial sector has begun to appear in good shape.
* Banks’ BIS capital ratio (%): 7.04 (1997), 12.3 (2008), 14.6 (2010), 14.4 (2011 as of June)
* Banks’ nonperforming loan (%): 5.8 (1997), 1.14 (2008), 1.90 (2010), 1.73 (2011 as of June)

Korea’s foreign exchange reserves have significantly increased thanks to the current account
surplus, while reliance on short-term foreign debt has decreased. The country’s sovereign
credit rating has also steadily improved.
* Foreign reserves (US$ billion): 20.4 (1997), 201.2 (2008), 291.6 (2010), 311.0 (2011 as of October)
* Short-term foreign debt (%): 38.1 (1997), 47.2 (2008), 37.5 (2010), 37.6 (2011 as of September)
* Sovereign credit rating (S&P): AA- (1997), B+ (December 1997), BB+ (February 1998), BBB- (January
1999), BBB (November 1999), BBB+ (November 2001), A- (July 2002), A (July 2005)

More flexible and efficient regulations concerning labor-management relations have been
adopted, resulting in increased productivity and less disputes. Such regulations include
allowing multiple unions in one work place, setting up a presidential committee to help
improve work environment, and approving labor force adjustment through cuts or
reassignment.
* Labor-management disputes: 98 (1997), 108 (2008), 86 (2010), 22 (2011 as of June)
* Working days lost due to disputes (thousand): 445 (1997), 809 (2008), 511 (2010), 183 (2011 as of June)

Efforts to efficiently run public firms such as through a performance-based pay system and
privatization have produced a positive outcome. Between 1998 and 2002, eight public
firms and their 50 subsidiaries completed M&As, while 22 government-run companies
were merged or rearranged. Seven public firms have been privatized and 36 rearranged
under the current administration.

Economic Bulletin

43

3) Foreign capital movement
There were foreign capital outflows of 7.2 trillion won from Korea’s equity market and of 6.5
trillion won from the local branches of foreign banks in August and September during which
the US credit rating was downgraded. However, into October the foreign capital situation
stabilized in line with growing expectations over the easing of the European debt crisis.
* Net foreign equity investment (trillion won): -5.9 (August 2011), -1.3 (September 2011), 1.0 (October)
* Net foreign bond investment (trillion won): 0.1 (August 2011), 0.0 (September), 1.6 (October)
* Capital movement in banks (August-September 2011
-6.04

3.58 (Domestic banks), -8.67

October, US$ billion):

1.09 (Local branches of foreign banks)

Korea’s bond market has steadily grown, as the fiscal and foreign exchange conditions have
been in good shape and long-term investors such as Asian central banks have increased.
* Net foreign bond investment (US$ billion): -13.4 (September-December 2008), 1.5 (August-October 2011)

Still, there are remaining uncertainties in the global economy. The Korean government will
always be prepared for the possibility of sudden capital movements.
4) Currency swaps with Asian countries expanded
As a way to respond to external uncertainties, Korea has recently expanded currency swap
agreements with Japan and China, from the equivalent of US$13 billion to 70 billion for the wonyen swap agreement and from US$26 billion to 56 billion for the won-yuan swap agreement.
In addition to efforts to enhance foreign liquidity capacity, the Korean government will
continue to pursue stronger fundamentals for the economy, through such efforts as to keep
corporate and household debt under control, carry out restructuring fit to each industry, and
boost the financial soundness of financial and foreign exchange sectors. In particular, the
government prioritizes achieving fiscal balance in 2013.

Fitch’s upgrading of the economy
Korea’s sovereign credit rating has been upgraded from A+ with Stable Outlook to A+ with
Positive Outlook on November 7, 2011 by Fitch Ratings.
* Korea’s sovereign rating by Fitch: A+ with Negative Outlook (November 2008)
Outlook (September 2009)

A+ with Stable

A+ with Positive Outlook (November 2011)

Korea’s sound fiscal conditions and balance of payments situation as well as its economy’s
fast recovery are behind the upgrade, according to Fitch. Moderate public debt and longstanding fiscal prudence are both key rating strengths, along with rising foreign reserves and

44

November 2011

decreasing reliance on short-term debt, said the rating agency, adding that high
competitiveness of the country’s exporters and its flexible foreign exchange system have
offset the risks posed by the volatile global economic and financial environment. Still, high
levels of household debt and export-dependency, along with a heavy external debt
refinancing burden in 2012 could have a negative influence on the economy.
The upgrading of the sovereign credit rating is expected to raise ratings of the country’s
financial institutions, as well as improve borrowing conditions for corporations and banks. In
addition, it is likely to positively affect the country’s equity and bond markets by boosting
foreign investor confidence in the Korean economy.

Future challenges and efforts to address them
Korea puts first priority on achieving fiscal balance in 2013 and maintaining the national debt
below the upper 20 percent range to GDP after 2014, for the country needs to be prepared
for rising welfare costs accompanied by an ageing population. Government’s efforts to reach
the targets center on broadening the tax base, increasing efficiency in spending budgets,
and reforming the fiscal management system.
To broaden the tax base, the government has removed unnecessary tax exemptions and
reductions, encouraged honest reporting of income, and sought new sources of tax revenue.
* Tax reduction (trillion won/ratio to total tax revenue): 23.0/12.5 (2007), 28.8/14.7 (2008), 31.1/15.8 (2009),
30.0/14.4 (2010), 30.6/13.7 (2011, preliminary), 32.0/13.4 (2012, outlook)

To spend budget more wisely, the government will continue to evaluate fiscal projects and
rearrange similar projects. As of the end of 2010, evaluation was completed on 482 projects,
out of which 132, or 27.4 percent, were put under budget cut.
To achieve fiscal balance as planned, the total expenditure increase will be strictly controlled
3 percentage points below the total revenue increase until fiscal balance is reached. The
government will keep predicting the long-term fiscal outlook and improve statistical
methods used in fiscal management.

Economic Bulletin

45

Economic
News Briefing

Korea grows 0.7% in Q3 (Advanced)
Korea’s real gross domestic product (GDP) expanded by 0.7 percent in the third quarter of
2011 compared to the previous quarter. It grew 3.4 percent from a year earlier.
On the production side, agriculture, forestry & fishing decreased by 6.1 percent due to
decreased fish catches and sluggish cultivation affected by torrential rainfall. Meanwhile, the
manufacturing sector expanded by 1.3 percent, led by metal products and transportation
equipment. Service output grew by 0.3 percent as gains in financial consulting and
information & communication offset a decline in real estate and renting.
On the expenditure side, private consumption grew by 0.6 percent due to increased
expenditures on durable and non-durable goods. Facility investment decreased by 0.4
percent, as investment in semiconductor manufacturing equipment fell. Construction
investment grew by 2.2 percent. Exports rose by 1.4 percent, driven by automobiles and
metal products. Imports also expanded by 1.8 percent.
Real gross domestic income (GDI) rose by 0.8 percent.

46

November 2011

Korea ratifies KORUS FTA
Korea’s National Assembly ratified a free-trade agreement (FTA) with the US on November
22. The bill was passed by 151 votes to seven in a parliamentary session. The parliament
also approved a package of 14 related measures.
Although Korea and the US signed the KORUS FTA on June 30, 2007, its ratification has been
delayed for more than four years. After renegotiating the automobile section of the deal, the
US congress passed the trade deal last month. As Korea has finalized the trade pact, the
KORUS FTA is expected to enter into force next January. The trade agreement will promote
the further integration of the Korean and US economies and expand business opportunities
for both countries.

Korea expands currency swap with Japan and China
President Lee Myung-bak and Japanese Prime Minister Yoshihiko Noda agreed at a summit
held on October 19 to expand the currency swap between Korea and Japan to US$70 billion.
The previous agreement consisted of a US$10 billion currency swap line agreed under the
Chiang Mai Initiative (CMI) and US$3 billion worth of won-to-yen swaps. The Bank of Korea
and Bank of Japan are to expand the amount of won-to-yen swaps from the current US$ 3
billion to US$ 30 billion. The two countries will also add US$ 30 billion worth of dollar-local
currency swaps while maintaining the US$10 billion CMI currency swap line.
Meanwhile, the currency swap agreement between the Bank of Korea and the People’s Bank
of China has been expanded from 38 trillion won (180 billion yuan, equivalent to US$ 26
billion) to 64 trillion won (360 billion yuan, equivalent to US$ 56 billion). The three-year
agreement will expire on October 25, 2014. In a statement released on October 26, the Bank
of Korea said the agreement would help ease the negative impact of increased global
uncertainties, while contributing to the promotion of Korea-China trade.

Economic Bulletin

47

Korea climbs eight notches in business climate ranking
The World Bank released its annual report titled “Doing Business 2012,” in which Korea was
rated 8th place among 183 countries in terms of business environment. According to the
report, Korea ranked 6th among OECD members, 3rd within the G20 countries and in East
Asia. Korea previously ranked 27th in 2005, 23rd in 2008, 19th in 2009, and 16th in 2010. Korea
moved up eight notches this year and ranked in the top 10 for the first time. In addition, the
2012 report includes a case study on Korea’s policy efforts to improve the business
environment.

<Dong business indicators for Korea>
Doing Business 2012 Rank Doing Business 2011 Rank

Change in Rank

Starting a Business

24

59

+35

Dealing with Construction Permits

26

27

+1

Getting Electricity

11

9

-2

Registering Property

71

74

+3

8

8

-

Protecting Investors

79

74

-5

Paying Taxes

38

40

+2

4

10

+6

Getting Credit

Trading Across Borders
Enforcing Contracts

2

4

+2

Resolving Insolvency

13

13

-

Korea announces modified HSK
The Ministry of Strategy and Finance announced on October 19 the amendments to the
Harmonized System of Tariff Classification of Korea (HSK). The new version, which will go on
effect on January 1, 2012, is based on the fifth edition of the HS Convention (HS 2012) and
will put Korea’s product classification system in line with international standards while
reflecting changes such as the introduction of new products and trade practices. In the 2012
version of HSK, the total number of Korea’s tariff lines at the HS 10-digit level has been
expanded from 5,025 to 5,205 (329 created, 176 deleted), while that at the HS 6-digit level
went up from 11,900 to 12,232 (968 created, 636 deleted). The HS is an internationally
standardized system of names and numbers for classifying traded products developed and
maintained by the World Customs Organization (WCO).

48

November 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

49

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
III

4.2
3.4
3.4

-8.6
1.0
-2.6

9.8
7.2
6.0

2.5
2.8
2.5

-2.2
-1.1
-1.6

-11.9
-6.8
-4.2

11.7
7.5
1.4

P: Preliminary
Source: The Bank of Korea

50

November 2011

Growth rate by economic activity

Growth rate by expenditure on GDP

Economic Bulletin

51

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

Period

2009
2010

Production
index

Y-o-Y
change (%)

Shipment
index

Y-o-Y
change (%)

Inventory
index

Y-o-Y
change (%)

Service
production
index

Y-o-Y
change (%)

119.7
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
III

143.6
151.2
146.1

10.6
7.2
5.1

138.7
144.8
139.2

11.9
7.2
4.9

137.4
142.7
148.6

10.3
10.0
10.4

123.1
127.0
126.7

2.7
3.3
4.2

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
148.7
142.9
146.7

13.6
9.0
9.1
6.9
8.2
6.6
3.9
4.7
6.8

141.4
125.2
149.6
144.6
144.4
145.4
135.9
136.5
141.2

14.9
10.2
10.7
7.3
8.2
5.9
3.1
4.2
7.5

135.4
137.1
137.4
137.3
140.2
142.7
147.2
150.4
148.6

13.0
11.2
10.3
8.7
7.9
10.0
9.8
11.8
10.4

124.1
116.9
128.2
125.2
127.4
128.4
127.0
126.8
126.2

4.7
0.2
3.1
3.0
3.3
3.5
3.8
4.9
3.8

2011

1
2
3
4
5
6
7
8P
9P

P: Preliminary
Source: Statistics Korea

52

November 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
III

132.7
133.8
134.6

6.8
5.8
3.9

99.9
105.3
99.5

2.6
-0.3
-0.1

83.1
81.4
81.3

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

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

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

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

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

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

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

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

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

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

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

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

2011 1
2
3
4
5
6
7
8P
9P

132.2
132.5
133.4
133.8
133.7
133.9
134.2
134.4
135.1

7.0
6.9
6.5
6.6
5.7
5.1
4.4
3.6
3.8

102.5
89.5
107.8
104.6
104.7
106.6
102.8
96.9
98.9

5.6
1.2
1.0
-1.4
0.9
-0.4
-2.4
0.7
1.7

84.8
82.2
82.4
80.4
81.3
82.5
82.1
80.4
81.3

P: Preliminary
Source: Statistics Korea

Economic Bulletin

53

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

Period

2009
2010

Consumer
goods
sales
index

Y-o-Y
change (%)

Durable
goods

Y-o-Y
change (%)

Semi-durable
goods

Y-o-Y
change (%)

Non-durable
goods

Y-o-Y
change (%)

113.6
121.1

2.7
6.6

136.8
157.2

8.2
14.9

106.3
113.5

1.3
6.8

111.3
113.7

1.2
2.2

2009

I
II
III
IV

106.5
113.4
111.9
122.4

-4.5
1.5
2.8
10.9

114.7
142.0
135.5
155.1

-11.7
5.9
7.7
34.1

103.1
107.7
94.3
120.2

-0.5
0.5
0.3
4.5

107.7
109.2
114.3
113.9

-1.4
0.4
1.8
4.0

2010

I
II
III
IV

116.8
118.9
120.3
128.6

9.7
4.9
7.5
5.1

148.7
149.9
158.5
171.6

29.6
5.6
17.0
10.6

105.7
114.4
100.5
133.6

2.5
6.2
6.6
11.1

111.1
112.8
117.7
113.1

3.2
3.3
3.0
-0.7

2011

I
II
III

122.7
125.7
125.6

5.1
5.7
4.4

167.9
176.2
175.0

12.9
17.5
10.4

112.2
120.8
104.4

6.1
5.6
3.9

112.0
112.4
120.1

0.8
-0.4
2.0

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
127.0

10.6
-0.8
5.2
5.1
6.3
5.8
5.3
5.2
2.8

165.9
154.2
183.5
167.4
176.4
184.9
184.6
173.3
167.1

14.0
9.1
15.3
15.8
20.0
17.0
12.6
12.2
6.4

120.4
101.6
114.6
121.5
127.0
114.0
107.5
93.6
112.2

11.1
2.0
5.0
7.4
5.2
4.3
3.9
3.8
4.2

118.9
104.3
112.7
108.7
116.3
112.2
117.6
119.4
123.2

9.4
-7.0
0.1
-1.5
0.3
0.1
2.2
2.6
1.3

2011

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

P: Preliminary
Source: Statistics Korea

54

November 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
III

120.8
117.8
120.7

1.9
-1.8
-1.1

134.9
134.6
136.5

-1.3
-3.5
-1.9

115.2
111.0
114.4

3.6
-1.0
-0.6

-

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
9P
10

129.6
105.9
127.0
118.6
115.7
119.1
120.0
121.2
120.9
-

4.8
-4.0
4.4
-1.6
-1.5
-2.2
-1.6
0.6
-2.2
-

133.0
125.6
146.1
133.1
131.4
139.4
141.9
132.3
135.2
-

-2.2
-3.2
1.1
-1.7
-2.9
-5.6
-2.5
-1.2
-2.0
-

128.2
98.0
119.4
112.7
109.4
110.9
111.2
116.8
115.1
-

7.9
-4.5
6.3
-1.7
-0.9
-0.4
-1.1
1.4
-2.3
-

108
105
98
100
104
102
102
99
99
100

Source: Statistics Korea & The Bank of Korea

Economic Bulletin

55

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
III

6,627
6,760
5,735

471
732
401

6,156
6,029
5,334

3,744
3,684
3,119

128.5
144.1
134.2

133.1
148.4
123.8

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

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

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

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

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

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

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

2011 1
2
3
4
5
6
7
8P
9P

2,115
2,070
2,442
1,965
2,171
2,624
2,000
1,812
1,922

116
122
233
102
142
487
152
115
134

1,156
1,148
1,440
1,158
1,190
1,336
1,027
1,007
1,085

125.7
113.9
145.8
132.5
146.1
154.1
134.9
136.0
131.7

127.6
123.6
148.1
138.3
150.9
156.0
135.9
124.5
126.0

11.2

-37.9

32.3

25.1

22.5

2010

2,000
1,948
2,209
1,869
2,029
2,137
1,848
1,698
1,788
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
III

19.5
8.2
1.3

-10.3
82.0
5.6

22.7
3.1
1.0

28.7
3.4
3.1

6.6
4.8
-3.5

14.1
2.9
-5.4

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

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

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

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

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

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

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

2011

19.7
26.1
14.4
6.6
-0.8
18.5
-4.4
6.0
3.4

-31.5
14.0
-6.3
-19.6
23.4
205.2
44.9
8.0
-20.4

25.1
27.0
17.1
8.6
-2.2
4.0
-7.0
5.8
5.7

14.6
30.4
41.0
9.8
-10.5
13.2
-3.9
12.2
2.3

22.2
1.0
0.5
-0.3
10.3
4.7
-3.0
-3.4
-4.2

17.8
20.4
6.5
-0.8
7.1
2.5
-1.9
-6.3
-8.1

1
2
3
4
5
6
7
8P
9P

P: Preliminary
Source: Statistics Korea

56

November 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
llI

19,067
23,898
21,411

7,288
9,304
7,836

10,857
13,195
12,464

15,796
24,473
19,259

4,053
6,067
6,396

10,743
16,821
12,176

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
6,908
7,710

2,415
2,047
2,827
2,721
2,189
3,765
2,441
2,524
2,870

3,476
2,991
4,391
3,981
4,226
4,989
4,044
4,051
4,369

4,658
4,959
7,179
6,459
6,753
11,260
4,892
7,269
7,098

1,295
1,396
1,362
1,413
1,861
2,793
1,735
1,505
3,156

2,697
2,445
5,601
4,452
4,428
7,941
3,042
5,503
3,631

2.7

8.5

-18.7

-43.7

2.8

2011

1
2
3
4
5
6
7
8P
9P

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
llI

-6.2
-0.8
-2.7

-2.4
1.9
0.7

-9.4
-5.3
-5.3

-12.8
-3.3
0.9

-49.1
-11.9
-6.1

18.2
0.5
6.8

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
-3.4
4.2

7.0
-11.1
-2.8
3.5
-0.8
2.9
-9.3
2.6
9.0

-12.5
-17.3
0.0
-10.7
-6.9
1.1
-8.5
-7.3
0.0

-33.9
-16.7
13.7
-2.7
-22.5
13.3
-34.6
75.4
-5.0

-46.3
-35.7
-59.6
-22.7
11.3
-17.6
-55.5
13.4
99.3

-36.9
9.5
117.0
-0.1
-33.4
41.1
-9.3
103.9
-32.2

2011

1
2
3
4
5
6
7
8P
9P

P: Preliminary
Source: Statistics Korea

Economic Bulletin

57

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
11

130.1
129.8
129.4
129.0
129.5
130.2
130.8
130.9
130.6
-

3.0
2.4
1.6
1.1
1.3
1.7
2.0
1.9
1.5
-

135.1
135.3
135.8
135.5
136.6
137.7
138.6
139.2
138.7
-

100.8
100.6
100.5
99.9
100.3
100.6
100.9
100.9
100.1
-

99.1
92.2
107.8
98.4
98.9
99.6
96.2
86.8
96.4
95.0
-

101.8
98.0
113.5
99.3
104.3
104.3
101.3
98.9
96.3
101.4
96.4

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

58

November 2011

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

Period

2009
2010P

Current
balance

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
II
III

2,610.3
5,492.2
7,169.5

5,842.7
7,661.0
7,471.3

127,691.2
142,722.8
141,672.5

121,848.5
135,061.8
134,201.2

-2,538.0
-796.0
-1,198.2

387.9
-824.8
1,314.9

-1,082.3
-548.0
-418.5

2009

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2011P 1
2
3
4
5
6
7
8
9

154.7
1,126.1
1,329.5
1,277.6
2,183.9
2,030.7
3,773.6
292.6
3,103.3

1,557.9
1,530.8
2,754.0
3,327.6
1,633.8
2,699.6
4,728.0
371.5
2,371.8

42,662.8
37,228.3
47,800.4
47,879.4
47,149.8
47,693.6
48,555.9
45,634.9
47,481.7

41,104.9
35,697.2
45,046.4
44,551.8
45,516.0
44,994.0
43,827.9
45,263.4
45,109.9

-1,640.9
-569.1
-328.0
-178.8
15.5
-632.7
-690.9
-577.9
70.6

703.7
542.6
-858.4
-1,581.9
517.3
239.8
72.3
699.6
543.0

-466.0
-378.2
-238.1
-289.3
17.3
-276.0
-335.8
-200.6
117.9

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

Economic Bulletin

59

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
2,035.4
8,108.4

730.3
-542.9
-1,490.7

6,251.6
-1,432.5
-19,031.3

-181.4
-111.9
235.5

-3,479.2
-2,618.0
6,326.1

143.8
1,315.8
1,490.1

-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
-1,690.6
-4,499.8

-1,725.4
-1,635.1
-1,335.8
-7.38.8
-1,254.7
-2,144.6
327.1
-1,036.4
-2,098.3

904.6
-3,004.0
720.3
4,575.0
-1,140.1
-1,399.5
9,258.3
-2,923.0
1,773.1

569.3
-363.3
524.3
-206.2
165.1
-501.8
526.6
-1,868.6
-148.7

1,773.3
5,126.9
-648.6
-145.9
-821.7
-464.9
-6,581.0
4,638.4
-17,088.7

-120.7
-32.7
-28.0
-33.6
-49.9
-28.4
13.8
41.5
180.2

-2,683.1
-2,088.0
1,291.9
-3,055.8
-855.4
1,293.2
-6,014.0
-542.5
12,882.6

1,127.3
870.1
-1,853.6
-1,672.3
1,772.8
1,215.3
-1,304.4
1,398.0
1,396.5

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
II
III

-2,754.1
-6,808.0
-8,659.6

-4,696.3
-4,138.1
-2,807.6

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

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

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

2009

P: Preliminary
Source: The Bank of Korea

60

November 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
10

118.9
119.8
120.4
120.4
120.4
120.6
121.4
122.5
122.6
122.4

123.8
125.1
123.1
125.7
125.1
125.3
127.0
129.1
129.6
128.6

115.8
116.4
116.6
116.9
117.3
117.5
117.8
118.1
118.1
118.4

119.7
120.5
122.0
122.4
122.3
121.9
122.4
122.8
122.9
122.9

122.7
123.9
125.8
126.2
126.0
125.5
126.0
126.7
126.9
126.9

108.6
110.6
113.5
111.8
110.2
109.4
108.0
109.4
113.1
114.7

156.1
160.9
166.5
167.6
163.9
163.2
161.4
162.1
168.1
169.5

2009
2010

2.8
2.9

3.4
4.6

2.4
4.2

116.3
117.1
117.4
117.6
118.2
118.6
119.0
119.4
119.6
119.4
Y-o-Y change (%)
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
10

4.1
4.5
4.7
4.2
4.1
4.4
4.7
5.3
4.3
3.9

7.1
7.8
7.9
6.4
5.9
6.5
7.4
8.5
6.4
5.3

2.2
2.5
2.5
2.5
2.8
2.9
3.0
3.1
2.8
3.0

2.6
3.1
3.3
3.2
3.5
3.7
3.8
4.0
3.9
3.7

6.2
6.6
7.3
6.8
6.2
6.2
6.5
6.6
5.7
5.6

7.7
8.2
9.1
8.4
7.6
7.6
8.0
8.2
7.0
7.0

4.9
5.6
9.1
7.7
3.3
-0.4
-1.3
1.8
5.8
9.2

14.1
16.9
19.6
19.0
13.2
10.5
9.8
10.0
14.0
16.0

Source: The Bank of Korea

Economic Bulletin

61

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
9

24,114
24,431
24,918
25,240
25,480
25,592
25,473
25,257
25,076

23,196
23,336
23,846
24,303
24,661
24,752
24,636
24,495
24,318

4,148
4,149
4,122
4,108
4,137
4,135
4,079
4,031
4,014

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
18,595
3.0
Y-o-Y change (%)

16,832
16,856
17,065
17,357
17,626
17,720
17,667
17,510
17,378

10,305
10,390
10,543
10,618
10,708
10,716
10,718
10,710
10,764

4,848
4,781
4,782
4,928
5,064
5,132
5,137
5,031
5,047

1,680
1,684
1,740
1,812
1,854
1,872
1,811
1,769
1,567

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
9

0.1
1.6
2.2
1.5
1.5
1.7
1.0
1.7
0.7

1.4
2.1
2.0
1.6
1.5
1.9
1.4
2.0
1.1

5.7
6.7
5.1
2.9
2.5
2.9
1.0
-0.7
-1.2

1.2
1.4
1.1
1.4
1.3
2.1
1.9
3.1
2.1

-

3.3
3.5
2.7
2.1
2.2
3.1
2.5
2.7
1.6

6.1
6.2
6.2
6.1
6.3
6.2
6.0
5.5
5.4

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

-2.6
1.6
1.5
-1.3
-5.1
-3.4
-4.9
-0.3
-11.9

Source: Statistics Korea

62

November 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
10

2.7
2.8
2.9
3.0
3.0
3.2
3.3
3.3
3.3
3.2

2.9
3.1
3.4
3.4
3.5
3.5
3.6
3.6
3.6
3.6

4.5
4.7
4.5
4.5
4.4
4.4
4.5
4.2
4.2
4.3

3.7
3.9
3.7
3.7
3.7
3.7
3.8
3.6
3.5
3.5

4.3
4.4
4.1
4.1
4.0
3.9
4.0
3.7
3.6
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
1,909.03

Source: The Bank of Korea

Economic Bulletin

63

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
9

73,540.8
75,432.1
73,012.7
73,206.1
73,828.5
74,705.5
74,069.7
75,642.3
77,942.2

429,368.1
432,482.8
430,936.6
425,420.5
423,994.7
421,885.3
418,973.1
422,649.3
425,196.4
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
1,729,531.1

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
2,243,675.6

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
9

13.0
13.3
11.2
13.9
8.8
12.8
10.6
12.4
10.9

12.6
11.5
11.6
9.6
7.4
5.4
3.8
5.4
5.1

6.5
5.0
4.3
3.9
3.7
3.0
3.2
4.0
4.2

6.6
5.2
4.7
4.5
4.4
4.0
4.6
5.5
5.7

Source: The Bank of Korea

64

November 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
10

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
1,104.5

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
1,155.5

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
1,458.0

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
1,508.2

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
1,562.7

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
1,584.0

-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
10

-3.6
-2.6
-2.1
-3.9
-10.0
-10.9
-11.3
-9.9
3.3
-2.0

-1.6
-3.4
-1.3
-2.7
-6.8
-10.8
-12.2
-9.0
-4.1
2.8

5.4
6.3
9.4
10.7
1.3
-2.1
-1.2
-0.7
12.7
4.8

8.7
5.4
9.6
9.2
5.4
0.7
-3.2
0.8
5.2
10.0

-6.2
-1.3
3.0
7.6
5.1
5.8
-2.9
2.7
2.9
-0.4

-8.1
-3.8
1.8
4.5
6.2
5.0
-1.6
1.0
1.6
1.6

2009
2010

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

Source: The Bank of Korea

Economic Bulletin

65

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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