Vol. 34 | No.

6

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. Industrial output and composite indices of business cycle
indicators

40

Policy Issues
Government’s efforts to root out predatory lending

42

Economic News Briefing

44

Statistical Appendices

49

The Green Book
Current Economic Trends
Overview
The Korean economy has seen employment steadily increase, inflation slightly slow down,
and real economic indicators improve, but volatility has increased in financial markets due to
external destabilizing factors.
Employment stayed in good shape in April, increasing by more than 400,000 mainly in the
service sector helped by full-time job increases. The unemployment rate fell to 3.5 percent
from 3.7 percent in the previous month.
Consumer prices in May increased 2.5 percent, staying within a 2 percent range for three
successive months with a 2.5 percent increase in April and 2.6 percent in March, backed by
core inflation which slowed down to 1.6 percent from 1.8 percent in the previous month and
a decrease in the prices of agricultural, livestock & fishery products and oil.
Mining and manufacturing production rose 0.9 percent month-on-month in April due to an
increase in pharmaceutical and machinery equipment production while service output was
0.2 percent up compared to the previous month, helped by an increase in hotels &
restaurants and wholesale & retail sales.
In April, retail sales climbed 1.0 percent month-on-month despite a slip in semi-durable and
non-durable goods sales, since durable goods sales rose led by strong automobile sales.
Facility investment in April rose 4.5 percent from a month before due to an increase in
machinery investment while construction investment dropped 5.2 percent compared to the
previous month due to a decrease in building construction and civil engineering works.
May exports fell 0.4 percent year-on-year due to a base effect, but the current account
balance continues to post a surplus of more than US$ 2.0 billion with US$ 2.40 billion in May
and US$ 2.12 billion a month earlier.
The cyclical indicator of the coincident composite index in April fell 0.2 points from a month
ago as the value of construction completion decreased. The leading composite index
remained unchanged from the previous month.
In May, Korea’s stock prices and other financial indexes fluctuated, as anxieties surrounding the
eurozone crisis, especially in Greece and Spain, have spread into the global financial market.
In May, housing prices remained flat compared to the previous month, while rent prices
increased 0.2 percent, decelerating from the previous month’s 0.5 percent.
External uncertainties are mounting due to the possibility that the eurozone crisis may deteriorate
and that the US and other advanced economies may likely suffer an economic slowdown.
The Korean government will closely monitor any changes in domestic and global economic
situations and their subsequent outcomes, while reinforcing policy actions to improve the
economy and keep prices stable. At the same time, the government will accelerate efforts to
secure the livelihoods of citizens through job creation and stabilization of necessity prices,
and to promote economic restructuring.
Economic Bulletin

3

1. External economic situation
The US economy is steadily improving while the eurozone continues to struggle and
emerging economies’ growth is slowing down.
Uncertainties in the eurozone are increasing over the possibility of a Greek exit from the
eurozone, the poor condition of Spanish banks, and political uncertainties before scheduled
elections in major countries. After Greece failed to form a coalition government on May 6, a
general election was rescheduled for June 17. Spanish bond yields neared dangerous levels
at almost 7 percent, due to the bailout of Bankia, Spain’s fourth-biggest bank, and worries
over Spain’s ability to reach its fiscal target.

US

The US economy grew 1.9 percent (revised) in the first quarter of 2012, which is lower than
the advanced estimates of 2.2%, showing that the US is on a modest recovery track.
The ISM Manufacturing Index, which shows business sentiment, decreased but continued to
be in good shape, staying above the base level of 50.
ISM manufacturing index (base=50)
52.7 (Nov 2011)

53.9 (Dec)

54.1 (Jan 2012)

52.4 (Feb)

53.4 (Mar)

54.8 (Apr)

53.5 (May)

Private consumption is on the strong rise and the recent decline in oil prices helped improve
consumer confidence.
University of Michigan Consumer Sentiment Index (1964 = base 100, original)
64.1 (Nov 2011)

69.9 (Dec)

75.0 (Jan 2012)

75.3 (Feb)

76.2 (Mar)

76.4 (Apr)

79.3 (May)

US gasoline prices (average state price, US$ per gallon)
3.39 (Jan 2012)

3.64 (Feb)

3.84 (Mar)

3.76 (Apr)

3.56 (May)

There are expectations for housing market recovery as existing home sales and other
indicators increased, and housing prices rose for two months in a row.
Case-Shiller home price index (seasonally adjusted)
150.8 (Dec 2003)

203.4 (Dec 2006)

136.6 (Jan 2012)

136.8 (Feb)

136.9 (Mar)

However, with nonfarm payroll increases decelerating and the unemployment rate rising to
8.2 percent in May, concerns over the economic recovery are rising.
Non farm payroll employment increase (m-o-m, thousand)
223 (Dec 2011)

275 (Jan 2012)

259 (Feb)

143 (Mar)

77 (Apr)

69 (May)
(Percentage change from previous period)

20111

2010

20121

Annual

Q4

Annual

Q1

Q2

Q3

Q4

Q1

Feb

Mar

Apr

3.0

2.3

1.7

0.4

1.3

1.8

3.0

1.9

-

-

-

- Personal consumption expenditure

2.0

3.6

2.2

2.1

0.7

1.7

2.1

2.7

-

-

-

- Corporate fixed investment

4.4

8.7

8.6

2.1

10.3

15.7

5.2

1.9

-

-

-

-4.3

2.5

-1.4

-2.4

4.2

1.3

11.6

19.4

-

-

-

Industrial production

5.3

0.8

4.1

1.2

0.2

1.7

0.9

1.3

0.4

-0.6

1.1

Personal consumption expenditure

3.8

1.4

4.7

1.5

1.0

1.0

0.8

1.3

0.9

0.2

0.3

-3.4

13.5

2.5

9.0

-5.2

-0.2

3.1

4.6

-0.7

-2.8

3.4

9.6

9.6

9.0

8.9

9.1

9.1

8.7

8.3

8.3

8.2

8.1

1.6

0.7

3.1

1.3

1.0

0.8

0.2

0.3

0.4

0.3

0.0

Real GDP

2

- Housing construction investment

Existing home sales
Unemployment rate

3

Consumer prices
1. Preliminary

4

June 2012

2. Annualized rate (%)

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

1-3

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

Economic Bulletin

5

China

The Chinese economy slowed, as the global economic downturn hit Chinese exports while
industrial output and retail sales increases also decelerated.
However, the high consumer prices last year have recently stabilized.
(Percentage change from same period in previous year)
2010
Annual

2011
Q2

Q1

Annual

Q3

20121
Mar

Q1

Q4

Apr

Real GDP

10.3

9.2

9.7

9.5

9.1

8.9

8.1

-

-

Industrial production2

15.7

13.9

14.9

13.9

13.8

12.8

11.6

11.9

9.3

Fixed asset investment (accumulated)

24.5

25.1

32.5

27.0

28.0

28.0

21.3

21.3

20.5

Retail sales

18.4

17.1

17.1

18.2

17.3

17.5

14.9

15.2

14.1

Exports

4.9

31.3

20.3

26.4

22.0

20.5

14.3

7.6

8.9

Consumer prices2

3.3

5.4

5.1

5.7

6.3

4.6

3.8

3.6

3.4

Producer prices2

5.5

6.0

7.0

6.9

7.1

3.1

0.1

-0.3

-0.7

1. Preliminary

2. Quarterly change: average of monthly change

Japan

Source: China National Bureau of Statistics

Japan’s GDP in the first quarter grew 1.0 percent quarter-on-quarter, which is a 4.1 percent
increase when annualized, but April industrial production and retail sales slighty decelerated.
The current account deficit expanded compared to the previous month, and Fitch
downgraded Japan’s sovereign debt rating by two notches over the concerns of Japan’s high
level of public debt on May 22.
(Percentage change from previous period)

Real GDP
Industrial production
Retail sales (y-o-y)
Consumer prices (y-o-y)
Current account (billion yen)
1. Preliminary

2011
Q2

20121
Mar

2010
Annual

Annual

Q1

4.4

-0.7

-2.0

-0.3

1.9

0.0

1.0

-

-

16.4

-2.3

-1.5

-4.2

5.4

0.4

1.2

1.3

0.2
5.8

Q1

Q4

Q3

Apr

2.5

-1.2

-3.0

-1.7

-1.0

0.8

5.2

10.3

-0.7

-0.3

-0.5

-0.4

0.1

-0.3

0.3

0.5

0.4

6,635

-2,527

326

-1,258

-418

-1,178

-1,543

-87

-522

Sources: Japan's Cabinet Office, Ministry of Economy, Trade and Industry, Ministry of Finance, Statistics Bureau of Japan

Eurozone

The eurozone economy remains stagnant, with zero growth in the first quarter of 2012. In
March, industrial output decreased and the unemployment rate from March to April
recorded the highest since 1995.
Manufacturing PMI (base = 50)
46.4 (Nov 2011)

46.9 (Dec)

48.8 (Jan 2012)

49.0 (Feb)

47.7 (Mar)

45.9 (Apr)

45.1 (May)

10.8 (Jan 2012)

10.9 (Feb)

11.0 (Mar)

11.0 (Apr)

Unemployment rate (%)
10.5 (Oct 2011)

10.6 (Nov)

10.7 (Dec)

(Percentage change from previous period)
20121
Feb
Mar

Annual

2010
Q3

Q4

Annual

Q1

20111
Q2

Q3

Q4

Q1

Real GDP

1.8

0.4

0.3

1.5

0.7

0.1

0.1

-0.3

0.0

-

-

-

Industrial production

7.4

1.0

1.8

3.5

0.9

0.2

0.8

-1.9

-0.4

0.7

-0.3

-

Retail sales
Exports (y-o-y)
Consumer prices (y-o-y)
1. Preliminary

6

June 2012

Source: Eurostat

Apr

0.9

0.2

0.3

-0.6

-0.2

-0.4

0.3

-1.1

0.1

-0.2

0.3

20.1

22.8

21.8

12.7

21.5

13.0

9.4

8.3

8.5

11.0

4.4

-

1.6

1.7

2.0

2.7

2.5

2.8

2.7

2.9

2.7

2.7

2.7

2.6

1-4

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

1-5

Japan’s GDP growth and industrial production
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 of GDP) climbed 1.0 percent quarter-on-quarter
and 1.6 percent year-on-year in the first quarter of 2012.
(Percentage change from previous period)
20111

2010

Private consumption2
y-o-y

2012

Annual

Q1

Q2

Q3

Q4

Annual

Q1

Q2

Q3

4.4

0.7

0.7

1.2

0.4

2.3

0.6

0.8

-

6.9

3.9

3.9

3.0

-

2.9

3.0

Q4

Q11

0.2

-0.4

1.0

2.1

-1.1

1.6

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

Retail sales in April rose 1.0 percent month-on-month and 0.4 percent year-on-year backed
by durable goods sales, despite a decrease in semi-durable and non-durable goods sales. In
particular, automobile sales rose month-on-month for two months in a row.
(Percentage change from previous period)
2010

Consumer goods sales
y-o-y
- Durable goods

2

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

4

2011

2012

Annual

Annual 1

Q1

Q2

Q3

Q4

Q11

Feb

Mar1

Apr1

6.7

4.3

1.5

0.1

1.6

-1.3

1.0

2.5

-2.6

1.0

-

-

5.4

5.7

4.7

1.9

2.0

5.4

0.1

0.4

14.8

10.8

4.3

-0.5

1.8

-2.4

3.0

-6.2

0.1

4.3

11.1

5.9

5.9

-4.9

3.6

-11.3

2.8

-5.0

2.9

5.8

6.8

4.2

0.8

0.7

1.2

-0.3

-0.3

4.3

-2.9

-1.8

2.2

1.1

0.2

0.0

2.1

-0.5

0.7

7.2

-4.6

-0.8

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

Department store and large discount store sales declined, while specialized retailer and
nonstore retailer sales increased.
(Percentage change from previous period)
2010

2011

Annual

Annual

- Department stores

8.8

- Large discounters

4.5

- Specialized retailers2
- Nonstore retailers

Q2

Q3

Q4

Q1

8.1

2.2

0.5

1.2

-0.6

-0.8

5.2

-1.9

-1.7

3.9

1.2

1.0

0.2

0.3

-1.2

7.7

-0.4

-4.5

5.7

3.3

1.3

-0.5

2.1

-3.1

1.5

1.8

-4.1

1.5

15.6

8.6

1.4

1.2

2.8

0.6

2.7

3.7

-4.8

2.5

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

8

June 2012

2012

Q1

1

1

Feb

Mar1

Apr1

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, May retail sales are expected to maintain an upward trend
as they did in April.
In May, car sales turned positive, increasing year-on-year, with the launch of new models.
Gasoline sales grew year-on-year due to decelerating oil prices and a base effect.
Gasoline prices (won per liter)
2,058 (May, 1st week)

2,053 (2nd week)

2,042 (3rd week)

2,023 (4th week)

2,009 (5th week)

Department store and discount store sales decreased 0.2 percent and 6.2 percent year-onyear, respectively, but department store sales fell at a slower pace than April.
(y-o-y, %)
2011

2012

Dec

Jan

Feb

Mar

Apr

May

18.4

11.2

24.9

14.5

18.3

15.3

- Large discounter sales

3.7

2.7

-6.4

3.2

-2.4

-6.2

- Department store sales

11.0

-4.1

2.9

1.6

-3.4

-0.2

4.1

7.6

4.4

4.1

5.6

6.2

-5.4

-19.9

5.5

-9.9

-6.8

0.7

- Credit card sales

- Domestic sales of gasoline
- Domestically made car sales

Sources: Credit Finance Association of Korea, Ministry of Knowledge Economy, Korea National Oil Corporation, Korea Customs Service, Korea Automobile
Manufacturers Association, Ministry of Strategy and Finance (for May data)

Retail sales are expected to keep increasing moderately backed by improving consumption,
but domestic and external uncertainties may limit any gains.
Continuing recovery in employment and slowing inflation contributed to improving
conditions related to consumption.
Payroll employment change (y-o-y, thousand)
479 (Nov 2011)

441 (Dec)

536 (Jan 2012)

447 (Feb)

419 (Mar)

455 (Apr)

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

4.2 (Dec)

3.4 (Jan 2012)

3.1 (Feb)

2.6 (Mar)

2.5 (Apr)

2.5 (May)

Consumer sentiment is on a moderate rise, rising for the fourth consecutive month with the
May index hitting the highest since February 2011.
Consumer sentiment index (CSI, base=100)
100 (Oct 2011)

103 (Nov)

99 (Dec)

98 (Jan 2012)

100 (Feb)

101 (Mar)

104 (Apr)

105 (May)

New cars, smart phones and the London 2012 Olympics are likely to have a positive effect on
the recovery of consumption.
However, the recovery can be limited if the eurozone debt crisis worsens and the volatility of
financial market expands.

10

June 2012

2-4

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

2-5

Domestically-made 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 first quarter of 2012 increased 10.8
percent quarter-on-quarter and 9.1 percent year-on-year.
(Percentage change from previous quarter)
20111

2010
Annual
Facility investment

2

- Transportation equipment

Q4

Annual

Q1

Q2

Q3

Q4

Q1

25.7

4.6

-0.2

3.7

-1.6

4.7

-1.8

-4.3

10.8

-

26.3

16.9

-

10.3

7.7

1.2

-3.3

9.1

31.2

7.1

-1.4

4.1

-1.9

5.0

-2.5

-2.5

-

8.3

-4.7

4.9

1.9

-0.7

3.7

0.9

-11.2

-

y-o-y
- Machinery

Q3

20121

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

The facility investment index in April rose 4.5 percent month-on-month and 5.0 percent yearon-year, backed by an increase in machinery investment.
Improving business confidence is an optimistic sign, but machinery orders and other leading
indicators remained sluggish and uncertain external conditions may weigh down on the index.
(Percentage change from previous quarter)
2010

Facility investment index
y-o-y
- Machinery
- Transportation equipment
1. Preliminary

20121

2011

Annual

Annual

Q1

Q2

Q3

Q4

Q11

Feb

Mar1

Apr1

24.2

0.7

-1.9

3.6

-1.5

-5.0

11.3

-3.5

-7.0

4.5

-

-

5.4

5.7

-3.1

-4.7

9.4

24.4

1.5

5.0

29.4

1.7

-3.5

6.0

-2.2

-3.1

10.3

-6.6

-8.1

5.5

4.5

-4.1

6.1

-7.2

1.6

-12.9

14.7

19.8

-1.6

-0.5

Source: Statistics Korea

(Percentage change from same period in previous year)
2010

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

20121

2011

Annual

Annual

Q1

Q2

Q3

Q4

Q11

Feb

Mar1

Apr1

8.3

11.0

19.5

10.0

3.4

11.5

-2.4

21.8

-25.1

-7.0

-

-

9.2

-0.3

-5.4

8.8

-7.1

14.1

-32.8

21.4

- Public

-37.7

11.2

-10.5

81.1

6.1

-3.1

104.5

485.1

-43.0

-1.2

- Private

18.3

11.0

22.7

4.9

3.2

14.7

-10.8

-7.5

-23.2

-7.3

Machinery imports

40.4

7.1

8.1

10.6

9.3

1.0

15.2

38.9

-0.4

11.2

Manufacturing average operation ratio

80.9

79.9

82.2

79.9

79.6

78.0

79.9

81.0

78.1

79.3

8.9

1.6

3.6

1.1

1.0

0.8

0.8

11.5

-2.3

-2.6

Facility investment adjustment
pressure2

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

2012

Business survey indices (base=100) for
facility investment projection in the manufacturing sector
Source: The Bank of Korea

12

June 2012

Jan

Feb

Mar

Apr

May

Jun

96

97

98

98

98

99

3-1

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

3-2

Machinery orders and estimated facility investment index (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 first quarter of 2012 fell 0.7
percent quarter-on-quarter but rose 2.1 percent year-on-year.
(Percentage change from previous quarter)
20111

2010
Annual

Q3

Q4

Annual

-3.7

-0.9

-1.9

-5.0

-

-4.9

-5.2

-

- Building construction

-1.6

-1.0

0.1

-4.1

- Civil engineering works

-6.2

-0.8

-4.6

-6.0

Construction investment

2

y-o-y

Q1

20121

Q2

Q3

Q4

Q1

-4.4

3.5

-11.0

-4.2

-0.5

0.1

-0.7

-4.0

-2.1

2.1

-5.3

4.5

-1.1

-0.6

-

-3.2

2.3

0.3

1.0

-

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

The value of construction completion (constant) in April fell 5.2 percent month-on-month and
7.5 percent year-on-year due to a decrease in building construction and civil engineering works.
(Percentage change from previous quarter)
2010

Value of construction completion(constant)
y-o-y
- Building construction
- Civil engineering works

20121

2011

Annual

Annual

Q1

Q2

Q3

Q4

Q11

Feb

Mar1

Apr1

-3.3

-6.7

-3.8

2.0

-4.3

5.7

-6.9

5.5

-1.4

-5.2

-

-

-12.6

-6.6

-8.4

-0.5

-3.7

9.0

-7.6

-7.5

-7.0

-8.4

-4.7

1.0

-3.7

4.9

-3.4

8.1

-5.9

-6.8

2.2

-4.5

-2.5

3.1

-5.1

6.6

-11.2

1.9

5.0

-3.2

1. Preliminary
Source: Statistics Korea

(Percentage change from same period in previous year)
2009

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

2011

2012

Annual

Annual

Q1

Q2

Q3

Q4

Q11

Feb

Mar1

Apr1

-17.7

4.0

-11.8

-1.7

1.5

22.4

36.6

100.4

-3.5

-4.4

-

-

12.5

11.7

3.3

-1.9

25.4

32.2

-40.6

-5.4

-8.9

10.9

-7.7

-2.5

9.8

40.6

31.3

42.5

-0.7

-3.2

-28.3

-6.6

-17.2

0.1

-11.0

-1.1

44.5

175.9

-8.4

-7.5

19.3

9.9

21.5

3.8

58.7

-14.8

8.7

23.8

13.5

-4.9

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

Construction investment may decline given a decrease in leading indicators such as
construction orders and building permit areas, and also shrinking business sentiment.
2012

Business survey index (base=100)
for business outlook for construction companies
Source: Construction and Economy Research Institute of Korea

14

June 2012

Jan

Feb

Mar

Apr

May

Jun

64.0

64.4

73.7

81.7

74.5

72.6

4-1

Construction investment
Source: The Bank of Korea (national accounts)

4-2

Construction completion and housing construction
Source: Statistics Korea (construction completion)
Ministry of Land, Transport and Maritime Affairs (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
May exports decreased 0.4 percent (preliminary) year-on-year to US$47.16 billion.
Despite an increase in car parts, machinery and other major exports, year-on-year growth
turned negative due to a base effect. In May 2011, the average daily amount of exports
reached the highest of the year at US$2.15 billion, since exports to Japan soared following
Japan’s March 11 earthquake.
This year, average daily exports are on an upward trend, with May average daily exports at
US$2.10 billion, the same as a month ago.
Average daily exports (US$ billion)
1.88 (Jan 2012)

2.02 (Feb)

2.02 (Mar)

2.10 (Apr)

2.10 (May)

Exports of car parts (up 11.9%) and machinery (up 10.3%) grew year-on-year, but those of
mobile phones (down 35.7%) and vessels (down 17.4%) fell.
Mobile exports declined because overseas production expanded, while the fall in vessels
exports can be attributed to approaching delivery dates of orders placed in 2009 when the
global vessel market had been poor.
Vessel orders (US$ billion)
97.3 (2007)

70.0 (2008)

14.4 (2009)

34.3 (2010)

48.7 (2011)

Overseas production of mobile phones (%)
69.0 (Q1 2011)

76.6 (Q2)

81.0 (Q3)

80.1 (Q4)
(US$ billion)

2010

Exports
(y-o-y, %)

2011

2012

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Apr

May1

Jan-May1

466.38

555.21

130.99

142.69

141.24

140.37

134.86

46.20

47.16

225.64

19.6

19.0

29.6

18.7

21.4

9.0

3.0

-4.8

-0.4

0.6

1.70

2.01

1.98

2.08

2.03

1.98

1.97

2.10

2.10

2.02

425.21

524.41

123.91

134.29

134.92

131.26

133.36

44.08

44.76

220.97

(y-o-y, %)

31.6

23.3

26.1

27.2

27.7

13.4

7.6

-0.2

-1.2

4.4

Average daily imports

1.46

1.91

1.87

1.96

1.96

1.85

1.95

2.01

1.99

1.96

Average daily exports
Imports

1. Preliminary
Source: Korea Customs Service

Imports in May decreased 1.2 percent (preliminary) year-on-year to US$44.76 billion.
Imports were down year-on-year, since capital goods (down 13.6%), consumer goods (down
9.5%) and other commodities imports declined despite an increase in crude oil imports.
The trade balance (preliminary) in May posted a surplus of US$2.40 billion.
(US$ billion)
2010

Trade balance
1. Preliminary
Source: Korea Customs Service

16

June 2012

2011

2012

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Apr

May1

Jan-May1

41.17

30.80

7.08

8.40

6.30

9.16

1.50

2.12

2.40

6.02

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 rose 0.9 percent month-on-month due to an increase
in the production of machinery equipment and pharmaceuticals but on a year-on-year basis,
it remained unchanged in April.
The production of machinery equipment (up 3.5%) and pharmaceuticals (up 14.7%)
increased month-on-month while semiconductors & parts (down 0.9%) and audio-visual
communication equipment (down 1.3%) fell month-on-month.
The manufacturing inventory-shipment ratio increased by 0.4 percentage points month-onmonth, as inventory increased 0.9 percent and shipments fell 0.5 percent.
The shipments of electronic equipment (up 7.4%) and processed metals (up 5.7%)
increased month-on-month, while those of automobiles (down 4.0%) and semiconductors &
parts (down 1.3%) declined.
The inventories of automobiles (up 5.8%) and machinery equipment (up 6.4%) climbed
month-on-month, while those of semiconductors & parts (down 1.7%) and electronic
equipment (down 3.6%) fell.
The average operation ratio of the manufacturing sector increased 1.2 percentage points to
79.3 percent.
(Percentage change from previous quarter or month)
20121

2011
Annual
Production (q-o-q, m-o-m)

Manufacturing Average operation ratio (%)
activity
Production capacity4

Q11

Feb

Mar1

Apr1

4.5

-0.1

-1.1

2.2

0.7

-2.9

0.9

10.4

5.0

6.8

3.8

14.4

0.7

0.0

-

4.6

0.1

-1.1

2.3

1.2

-3.1

0.8

7.0

10.6

5.3

7.0

4.2

15.2

0.7

0.0

6.7

3.9

-0.3

-1.3

2.5

0.8

-3.0

0.5

3.3

2.9

-2.0

-2.0

1.7

-0.1

-4.4

2.7

10.8

4.9

1.5

-0.6

3.6

1.9

-1.6

-1.8

20.8

0.4

9.3

0.8

-2.7

2.0

-2.1

0.9

79.9

82.2

78.0

79.4

79.9

81.0

78.1

79.3

5.4

7.0

4.5

6.9

3.4

3.7

3.0

2.6

- Domestic demand

Inventory

Apr

-

- Manufacturing (q-o-q, m-o-m)
Mining and
(y-o-y)
manufacturing
2
Shipment
activity

3

Q4

6.9

(y-o-y)

- Exports

Q1

1. Preliminary
2. Including mining, manufacturing, electricity, and gas industry
3. End-period
4. Percentage change from same period in previous year
Source: Statistics Korea

Mining and manufacturing production is likely to see a moderate improvement driven by
major items, but a decline in some exports may limit the gain.
Semiconductor exports (US$ billion)
4.28 (Dec 2011)

3.77 (Jan 2012)

3.87 (Feb)

4.31 (Mar)

3.84 (Apr)

4.22 (May1)

3.11 (Feb)

3.08 (Mar)

3.12 (Apr)

3.23 (May1)

4.41 (Feb)

4.57 (Mar)

4.17 (Apr)

3.93 (May1)

Steel exports (US$ billion)
3.85 (Dec 2011)

2.95 (Jan 2012)

Automobile exports (US$ billion)
4.47 (Dec 2011)
1. Preliminary

18

June 2012

3.43 (Jan 2012)

6-1

Industrial production
Source: Statistics Korea (industrial activity trend)

6-2

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

6-3

Inventory
Source: Statistics Korea (industrial activity trend)

Economic Bulletin

19

7. Service sector activity
Despite sluggish financial & insurance services and transportation services, service activity
in April rose 0.2 percent month-on-month helped by wholesale & retail sales and hotels &
restaurants. On a year-on-year basis, service activity expanded 1.0 percent.
Financial & insurance services decreased 0.3 percent from the previous month affected by a
small volume of stock transactions.
Average daily stock trading value (trillion won)
8.2 (Jan 2012)

9.8 (Feb)

7.6 (Mar)

6.9 (Apr)

Transportation services fell 0.3 percent from the previous month due to decreased freight
volume of water freight transportation.
Growth of water freight transportation (y-o-y, %)
-4.6 (Nov 2011)

-6.7 (Dec)

0.1 (Jan 2012)

6.2 (Feb)

-5.2 (Mar)

-7.4 (Apr)

Wholesale & retail sales (up 0.5%) and hotels & restaurants (up 0.7%) continued to rise for
two consecutive months.
Real estate & renting shifted to an increase, rising 3.1 percent month-on-month.
(Percentage change from previous period)
Weight

2010

2011

2012

Annual

Annual

Q1

Q2

Q3

Q4

100.0

3.9

3.3

1.6

0.2

1.3

-0.5

1.0

1.3

-0.9

0.2

- Wholesale & retail sales

21.8

5.7

3.8

1.4

1.4

0.7

-0.7

0.1

-2.0

0.2

0.5

- Transportation services

9.0

11.9

3.9

2.6

-1.6

1.0

-1.0

1.5

3.0

-2.6

-0.3

- Hotels & restaurants

7.7

1.2

-0.5

-0.4

1.0

-0.3

-1.5

-0.2

0.7

1.4

0.7

- Information & communications services

8.4

1.7

4.4

1.1

0.5

2.8

0.3

0.9

-0.2

-2.9

1.4

15.3

4.6

7.3

3.0

0.1

2.7

0.1

1.2

3.2

-3.4

-0.2

- Real estate & renting

6.3

-8.5

-10.2

3.3

-2.2

-0.3

-6.4

-0.2

7.0

-0.8

3.1

- Professional, scientific & technical services

4.8

-0.5

0.3

-1.5

2.0

1.0

1.4

1.9

1.3

0.3

-1.2

- Business services

2.9

7.5

4.3

0.8

0.9

0.2

0.4

1.7

-2.9

-0.8

1.1

10.8

2.0

2.4

0.2

-0.9

1.7

0.4

1.2

1.1

-1.5

0.4

- Healthcare & social welfare services

6.0

8.8

6.3

3.3

0.6

1.4

1.6

1.7

4.0

2.0

0.3

- Entertainment, cultural & sports services

2.9

-0.4

2.3

1.1

0.0

0.7

0.1

4.3

-3.1

5.7

-6.9

- Membership organizations

3.8

4.3

1.1

-0.3

1.1

-0.3

-2.1

-0.3

2.5

-0.1

-0.7

- Sewerage & waste management

0.4

5.1

0.0

0.1

-0.5

0.2

3.1

1.0

6.6

-2.5

4.4

Service activity index

- Financial & insurance services

- Educational services

Q1

1

Feb

Mar1

Apr1

1. Preliminary
Source: Statistics Korea

Although financial & insurance services may remain sluggish, service activity in May is
expected to improve, helped by increasing retail sales.

20

June 2012

els

& re

serv

tail

ices

sale

s

sup y ma
port nag
serv eme
ices nt &
Edu
cati
ona
l se
rvic
es
Hea
l
serv thcare
ices & s
ocia
l we
lfar
e
Ente
r
serv tainm
ices ent
, cu
ltur
al &
spo
Me
rts
m
& o bersh
ther ip o
pers rgan
ona izat
l se ions
Sew
rvic , re
es
pair
mat erage,
e
w
r
i
acti als r aste
vitie eco
very manag
s
& re eme
med nt,
iatio
n

stau
rant
s
Info
r
serv m a t i o
ices n &
com
mun
icat
ions
Fina
ncia
l&
insu
ranc
e se
rvic
es
Rea
l es
tate
& re
ntin
g
Prof
ess
iona
l, sc
i
tech entific
nica &
Bus
l se
i
rvic
bus ness f
es
ines acil
it
s

Hot

ion

& re

rtat

ale

spo

oles

Tran

Wh

ex

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)

April 2012 service industry by business

Source: Statistics Korea (service industry activity trend)

Economic Bulletin

21

8. Employment
The number of workers on payroll in April increased by 455,000 from a year earlier to
24,760,000 and the employment rate rose by 0.4 percentage points year-on-year to
59.7 percent.
Employment expanded in most industries except agriculture, forestry & fishery (down
29,000) and manufacturing (down 80,000).
In March, employment in agriculture, forestry & fishery decreased sharply due to deteriorating
weather conditions. However, the employment decreased at a slower pace in April.
Jobs in health & welfare (up 111,000) and education (up 84,000) sharply increased as
demands for social services expanded. Employment in traditional domestic demandoriented industries such as wholesale & retail sales (up 81,000) and transportation (up
53,000) also remained robust.
By status of workers, the number of regular workers (up 339,000) continued to rise and selfemployed workers (up 163,000) also maintained the upward trend.

2009

2010

Annual Annual
Number of employed (million)

Q3

2011
Q4

Annual Apr

Q1

2012

Q2

Q3

Q4

Mar

Apr

Q1

23.51 23.83 24.12 23.99 24.24 24.30 23.46 24.57 24.48 24.46 24.27 24.26 23.93

Employment rate (%)

58.6

58.7

59.3

58.9

59.1

59.3

57.4

59.9

59.5

59.4

58.6

59.7

57.8

(Seasonally adjusted)

58.6

58.7

58.9

58.7

59.1

59.0

58.8

59.1

59.1

59.2

59.4

59.4

59.3

Employment growth (y-o-y, thousand)

-72

323

369

358

415

379

423

402

363

474

419

455

467

(Excluding agriculture, forestry & fishery)

-34

405

414

393

440

367

451

399

414

497

512

484

498

-126

191

262

269

63

116

228

112

-12

-75 -104

- Manufacturing

-80 -102

- Construction

-91

33

92

57

-2

-57

-3

-41

-35

71

74

53

79

- Services

179

200

83

80

386

305

224

331

472

514

564

525

541

- Agriculture, forestry & fishery

-38

-82

-45

-35

-25

12

-28

3

-51

-23

-92

-29

-31

- Wage workers

247

517

541

532

427

364

519

421

392

374

356

322

360

∙Regular workers

383

697

671

699

575

607

605

621

572

500

356

339

413

22

-34

-26 -114

-88 -137

-76

-10

215

167

110

∙Temporary workers

-78 -220

∙Daily workers

-158 -146 -104

-53

-70

-24

2

- Non-wage workers

-319 -194 -172 -174

-11

16

-96

∙Self-employed workers

-259 -118 -130 -146

-63 -104 -115 -215 -185 -163
-19

-29

100

63

133

108

-16 -115

-39

34

125

125

163

149

31

181

207

212

238

227

266

221

208

257

178

245

238

- Female

-103

142

163

146

177

152

157

181

155

216

241

210

230

- 15 to 29

-127

-43

-44

-57

-35

-73

-49

-74

-1

-18

26

25

1

- 30 to 39

-173

-4

21

17

-47

-17

-34

-13

-83

-56

-95

-75

-65

- 40 to 49

-24

29

40

50

57

40

77

59

46

47

35

2

28

- 50 to 59

198

294

295

287

291

300

286

294

270

315

293

252

326

54

47

57

60

149

130

143

137

131

185

160

251

178

- Male

- 60 or more
Source: Statistics Korea

22

June 2012

1

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

With the number of unemployed persons in April decreasing by 41,000 year-on-year to
895,000, the unemployment rate dropped 0.2 percentage points year-on-year to 3.5 percent.
The youth unemployment rate in April declined 0.2 percentage points from the same month
of the previous year to 8.5 percent as the employment rate rose year-on-year for two
consecutive months despite the declining population of the age bracket.

2009

2010

Annual Annual

2011

Q3

Q4

Annual Apr

Number of unemployed (thousand)

889

920

873

808

855

Unemployment growth (y-o-y, thousand)

Q1

936 1,028

2012

Q2

Q3

Q4

Mar

Apr

Q1

865

786

740

945

895

947

119

31

-13

-10

-65

3

-101

-3

-88

-68 -128

-41

-82

- Male

80

-7

-48

-16

-48

-27

-70

-32

-48

-41

-72

-35

-54

- Female

40

38

35

6

-17

29

-32

29

-40

-27

-56

-6

-28

Unemployment rate (%)

3.6

3.7

3.5

3.3

3.4

3.7

4.2

3.4

3.1

2.9

3.7

3.5

3.8

(Seasonally adjusted)

3.6

3.7

3.6

3.4

3.4

3.6

3.8

3.4

3.2

3.1

3.4

3.4

3.5

- 15 to 29

8.1

8.0

7.6

7.1

7.6

8.7

8.8

7.9

6.7

7.1

8.3

8.5

8.2

- 30 to 39

3.6

3.5

3.5

3.2

3.4

3.9

4.0

3.5

3.2

2.9

3.4

3.3

3.2

- 40 to 49

2.4

2.5

2.5

2.2

2.1

2.3

2.5

2.1

2.0

1.9

2.4

2.1

2.4

- 50 to 59

2.5

2.5

2.3

2.3

2.1

2.1

2.7

2.0

2.1

1.8

2.5

2.3

2.3

- 60 or more

1.6

2.8

2.0

1.9

2.6

2.4

4.5

2.3

2.1

1.8

3.4

2.3

4.4

Source: Statistics Korea

The economically inactive population in April was up 92,000 from a year earlier to
15,810,000. Meanwhile, the labor force participation rate stood at 61.9 percent, rising 0.3
percentage points year-0n-year.
The number of workers quitting jobs due to old age (up 173,000) and housework (up
163,000) increased while those who quit jobs due to education (down 82,000) and rest,
time-off and leisure (down 60,000) decreased.

2009

2011

2010

Annual Annual

Q3

Q4

Annual Apr

Q1

2012

Q2

Q3

Q4

Mar

Apr

Q1

Economically inactive population (million) 15.70 15.84 15.66 15.96 15.95 15.71 16.39 15.56 15.85 16.01 16.21 15.81 16.50
Labor force participation rate (%)

60.6

61.0

61.5

60.8

61.1

61.6

59.9

62.0

61.5

61.1

60.9

61.9

60.1

(seasonally adjusted)

60.6

61.0

61.1

60.8

61.1

61.2

61.1

61.2

61.0

61.1

61.5

61.5

61.4

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

447

143

128

133

112

81

138

66

191

53

206

92

103
-

- Childcare

-5

-21

-44

-16

17

23

-9

5

- Housework

148

201

203

189

101

67

130

27

143

103

167

163

85

- Education

31

12

46

55

-51

-39

-16

-39

-78

-69

-42

-82

-28

- Old age

88

80

43

25

-45

-80 -103

-58

-22

2

91

173

76

123

-56

15

-27

182

175

163

193

131

129

-60

126

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

24

June 2012

40 -125 -149 -107

241

8-4

Employment rate
Source: Statistics Korea (employment trend)

8-5

Unemployment rate
Source: Statistics Korea (employment trend)

8-6

Labor force participation rate
Source: Statistics Korea (employment trend)

Economic Bulletin

25

9. Financial market
9.1 Stock market
The Korean stock price index in May dropped 7.0 percent to 1,844 points from the previous
month’s 1,982 points. The decline was due to weak investment sentiment caused by
eurozone’s political uncertainties.
Foreign investors expanded the net selling position, selling 4 trillion won, from the previous
month’s 3 billion won.
(End-period, point, trillion won)
KOSPI

KOSDAQ

Apr 2012

May 2012

Change

Apr 2012

Stock price index

1,982.0

1,843.5

-138.5 (-7.0%)

478.9

471.9

-7.0 (-1.5%)

Market capitalization

1,141.7

1,061.3

-80.4 (-7.0%)

103.2

99.4

-3.8 (-3.7%)

Average daily trade value

5.0

4.7

-0.3 (-6.0%)

1.95

1.61

-0.34 (-17.4%)

Foreign stock ownership

34.5

33.9

-0.6 (-1.7%)

7.79

7.80

+0.01 (+0.1%)

1

May 2012

Change1

1. Change from the end of the previous month
Souce: Korea Exchange

9.2 Exchange rate
The won/dollar exchange rate in May increased 50.3 won to wrap up the month at 1,180.3
won from 1,130.0 won at the end of April.
The won/dollar exchange rate in May fluctuated between 1,130 and 1,180 won due to the
result of France’s presidential election in which Francois Hollande beat incumbent Nicolas
Sarkozy, Greece’s parliamentary election which resulted in the failure to form a coalition and
the decision to head to a second round of elections, and Spanish bank insolvency.
The won/100 yen exchange rate in April rose 88.0 won due to the weak Korean won and a
stronger yen/dollar exchange rate.
(End-period)
2008

2009

2010

2011

Dec

Dec

Dec

Dec

Apr

2012
May

Change1

Won/Dollar

1,259.5

1,164.5

1,134.8

1,151.8

1,130.0

1,180.3

-2.4

Won/100 Yen

1,396.8

1,264.5

1,393.6

1,481.2

1,410.4

1,498.4

-1.1

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

26

June 2012

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 13 basis points in May to 3.43 percent from the
previous month’s 3.56 percent. Yields on the Korea Treasury Bond (KTB) decreased due to a
significant fall in US Treasury bond yields and a flight to safety driven by worries over a
global economic slowdown.
(End-period)

Call rate (1 day)

2006

2007

2008

2009

2010

2011

2012

Dec

Dec

Dec

Dec

Dec

Dec

Apr

May

Change1

4.60

5.02

3.02

2.01

2.51

3.29

3.26

3.27

+1

CD (91 days)

4.86

5.82

3.93

2.88

2.80

3.55

3.54

3.54

-

Treasury bonds (3 yrs)

4.92

5.74

3.41

4.44

3.38

3.34

3.45

3.32

-13

Corporate bonds (3 yrs)

5.29

6.77

7.72

5.56

4.27

4.21

4.14

3.92

-22

Treasury bonds (5 yrs)

5.00

5.78

3.77

4.98

4.08

3.46

3.56

3.43

-13

1. Basis point, changes from the previous month

9.4 Money supply & money market
The M2 (monthly average) in March expanded 5.7 percent from a year earlier excluding cash
management accounts (CMAs), which were included in M2 since July 2009.
Although the private sector credit was hampered by sluggish bank lending, the month-onmonth M2 growth accelerated as money supply from the government sector increased due
to fiscal front loading.
(Percentage change from same period in previous year, average)

M12

2008

2009

2010

2011

2012

Annual

Annual

Annual

Q4

Annual

Q1

Q2

Q3

Q4

Feb

Mar

Mar1

-1.8

16.3

11.8

11.2

6.6

11.9

7.5

4.8

2.6

1.1

2.14

440.14

4

1,773.24
2,356.74

M2

14.3

10.3

8.7

7.4

4.2

5.3

3.5

3.8

4.4

5.3

5.7

Lf 3

11.9

7.9

8.2

7.1

5.3

5.5

4.3

5.3

6.2

7.2

8.84

1. Balance at end March 2012, 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

Bank deposits in April turned negative as instant access deposits significantly decreased
due to value-added tax payments. Meanwhile, despite the net outflow of stock-type funds,
asset management company (AMC) deposits maintained an upward track helped by inflows
of corporate funds into money market funds (MMF).
(Monthly change, end-period, trillion won)
2009
Annual

2010
Annual

2011
Apr

2012

Annual

Apr

Mar

Apr

Apr1

Bank deposits

54.8

36.9

-3.4

58.9

12.5

15.2

-15.5

1,097.2

AMC deposits

-27.6

-16.7

-3.0

-16.6

-3.2

04.0

-01.8

1,305.3

1. Balance at end April 2012, trillion won

28

June 2012

9-4

Interest rates
Source: The Bank of Korea

9-5

Total money supply
Source: The Bank of Korea

9-6

Deposits in financial institutions
Source: The Bank of Korea

Economic Bulletin

29

10. Balance of payments
Korea’s current account (preliminary) in April posted a surplus of US$1.78 billion.
Despite deteriorating overseas economic conditions such as the eurozone debt crisis, the
goods account posted a surplus helped by robust exports of cars and steel, although
decelerating from the previous month’s US$2.93 billion to US$1.8 billion.
The service account surplus narrowed to US$550 million from the previous month’s US$700
million as the construction services account surplus decreased albeit the improvement of
the transport and the travel accounts.
The primary income account deficit expanded to US$420 million from the previous month’s
US$320 million due to an increase of cross-border dividend payments by firms whose fiscal
year ended in December. The secondary income account deficit narrowed from the previous
month’s US$340 million to US$150 million due to decreased overseas remittance.
(US$ billion)
2010

2011

2012

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Mar

Apr

Current account

29.39

26.51

2.61

5.49

7.00

11.52

2.56

2.97

1.78

- Goods balance

40.08

30.95

5.84

7.66

7.20

10.25

2.62

2.93

1.80

- Service balance

-8.63

-4.38

-2.54

-0.80

-1.20

0.15

-0.65

0.70

0.55

- Income balance

1.02

2.46

0.39

-0.82

1.31

1.58

1.48

-0.32

-0.42

Current transfers

-3.08

-2.52

1.08

-0.55

-0.42

-0.47

-0.89

-0.34

-0.15

1. Preliminary
Source: The Bank of Korea

The capital and financial account (preliminary) in April posted a net inflow of US$120 million.
Capital & financial account balance (US$ billion)
1.31 (Jan 2012)

-0.92 (Feb)

-1.76 (Mar)

-1.37 (Q1 2012)

0.12 (Apr)

The direct investment account narrowed the net outflow to US$940 million from the
previous month’s US$1.62 billion due to slowdown in overseas direct investment.
The portfolio investment account turned to a net outflow of US$2.21 billion from the
previous month’s net inflow of US$1.30 billion as foreigners’ investment in Korean stock and
bonds shifted to a net outflow.
The financial derivatives account recorded a net inflow of US$320 million, down from the
previous month’s US$710 million. The other investment account shifted to a net inflow of
US$2.63 billion from a net outflow of US$520 million a month earlier as domestic banks
expanded the collection of loans.
The current account in May is expected to maintain a surplus, helped by an expanding goods
account surplus amid improvement in the balance of trade.

30

June 2012

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 continued to climb at a moderate pace in May, rising 2.5 percent year-onyear and 0.2 percent month-on-month. Prices of agricultural, livestock & fishery products as
well as those of oil products fell by a small margin. Housing rents stabilized while personal
service prices excluding dining out costs rose slightly.
Core consumer prices, which exclude oil and agricultural products, rose 1.6 percent year-onyear and 0.2 percent month-on-month. Core consumer prices based on the OECD method,
which excludes food and energy, rose 1.5 percent year-on-year and 0.3 percent month-onmonth. Consumer prices for basic necessities, a barometer of perceived consumer prices,
were up 2.2 percent compared to the same month of the previous year.
Expected inflation fell for the fourth consecutive month, while the upward trend of import
prices decelerated considerably from the previous month.
Expected inflation (%)
4.2 (Oct 2011)

4.1 (Nov)

4.0 (Dec)

4.1 (Jan 2012)

4.0 (Feb)

3.9 (Mar)

3.8 (Apr)

3.7 (May)

Import price increases (y-o-y, %, won base)
7.1 (Dec 2011)

7.9 (Jan 2012)

5.2 (Feb)

3.5 (Mar)

1.7 (Apr)

Consumer price inflation

(%)
2011
May Jun

2012

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Month-on-Month

0.0

0.2

0.5

0.7

-0.1 -0.2

Year-on-Year

3.9

4.2

4.5

4.7

3.8

Consumer prices excluding oil and agricultural
products (y-o-y)

3.2

3.5

3.6

3.5

3.3

0.1

0.4

0.5

0.4

-0.1

0.0

0.2

3.6

4.2

4.2

3.4

3.1

2.6

2.5

2.5

3.2

3.5

3.6

3.2

2.5

1.9

1.8

1.6

Consumer prices excluding food and energy (y-o-y) 2.7

2.8

2.8

2.8

2.6

2.6

2.8

2.7

2.5

2.6

1.7

1.6

1.5

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

4.5

4.9

5.2

3.8

3.6

4.5

4.4

3.3

2.8

2.0

2.0

2.2

4.0

Source: Statistics Korea

The prices of agricultural and fishery products rose, while those of livestock products declined.
Prices of agricultural, livestock & fishery products in May (m-o-m, %)
Cabbages (75.9), broccoli (38.0), spring onion (21.9), clam (6.9), seaweed (4.1), pork (-0.2), chicken (-6.2),
eggs (-4.7)

Manufactured product prices rose at a faster pace than the previous month. The prices of oil
products and cosmetics fell, while those of textiles and other manufactured products rose.
Housing rents stabilized, with the upward trend decelerating from the previous month.
Personal service prices excluding dining out costs rose slightly, as private tutoring costs, air
fares and group travel costs increased.

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

Agricultural,
Oil
livestock & fishery Manufactured
products products
products

Public
utilities

Housing
rents

Public
services

Personal
services

0.2

-0.1

0.4

-0.3

0.1

0.3

0.0

0.2

Contribution (%p)

0.19

-0.01

0.12

-0.02

0.00

0.03

0.0

0.06

Year-on-Year (%)

2.5

7.4

3.5

7.1

3.9

4.5

0.6

0.6

Contribution (%p)

2.51

0.58

1.13

0.42

0.19

0.42

0.08

0.19

Source: Statistics Korea

32

June 2012

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

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

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

Economic Bulletin

33

11.2. International oil and commodity prices
International oil prices fell in May to a five-month low, while domestic oil product prices
continued to decline as well.
International oil prices fell for the third consecutive month amid stabilizing oil supplies and
fears of contagion from the European financial crisis, with the monthly average price dipping
below US$110 for the first time since January 2012.
Speculative trading in US oil futures dropped considerably due to a flight to safety prompted
by uncertainties in Europe, with contracts decreasing 27.8 percent from 333,000 in February
28 to 241,000 in May 22.
OPEC crude oil production in April increased by 410,000 barrels per day to 32 million barrels
per day, marking the seventh straight monthly rise in production from the group.
(US$/barrel, period average)
2009

2010

Annual

Annual

2011
Annual

Nov

2012
Dec

Jan

Feb

Mar

Apr

May

Dubai crude

61.9

78.1

106.0

107.9

105.5

109.5

116.2

122.5

117.3

107.3

Brent crude

61.7

79.7

111.1

110.5

107.7

111.0

119.3

124.9

120.0

109.7

WTI crude

61.9

79.5

95.1

97.3

98.7

100.4

97.41

106.3

103.4

94.7

Source: Korea National Oil Corporation

Domestic oil product prices have been declining since the third week of April, as a result of
falling international oil and oil product prices. International gasoline prices are reflected in
domestic oil product prices with a time lag of one or two weeks.
(Won/liter, period average)
2009

2010

2011

Annual

Annual

Annual

Jan

Feb

Mar

2012
Apr

May

Week 4

Week 5

Gasoline prices

1,600.7

1,710.4

1,929.3

1,955.1

1,986.5

2,030.0

2,058.7

2,035.8

2,023.2

2,008.7

Diesel prices

1,397.5

1,502.8

1,745.7

1,805.1

1,828.8

1,853.6

1,865.6

1,839.6

1,827.3

1,813.8

Source: Korea National Oil Corporation

International commodity prices fell in May due to global uncertainties.
Non-ferrous metal prices continued to fall in May due to the European financial crisis and
concerns over slowing growth in China, with copper prices dropping for the third straight month.
Prices of non-ferrous metals in May (m-o-m, %)
Copper (-11.6), nickel (-9.3), zinc (-9.3), gold (-6.3), aluminum (-5.9)

Corn prices plunged amid expectations that the crop situation will improve as a result of
expanded planting areas in the US. Soybean prices also fell due to the euro crisis and the
weak dollar.
Prices of grain in May (m-o-m, %)
Corn (-15.9), soybeans (-10.8), raw sugar (-8.3), wheat (-0.6)

Reuters index*

(Period average)
2011

2010
Annual

Annual

Nov

Dec

Jan

Feb

Mar

Apr

May

2,079

2,553

3,062

2,770

2,732

2,832

2,935

2,968

2,969

2,912

* A weighted average index of 17 major commodities
Source: KOREA PDS

34

2012

2009
Annual

June 2012

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
Nationwide apartment sales prices in May remained unchanged from the previous month.
Apartment sales prices in the Seoul metropolitan area declined for the seventh consecutive
month (down 0.3%, m-o-m).
Apartment sales prices continued to rise in areas excluding the Seoul metropolitan area, in
particular Ulsan (up 0.5%, m-o-m), Gwangju (up 0.8%, m-o-m) and North Gyeongsang
Province (up 0.9%, m-o-m). Apartment prices in 5 metropolitan cities and other cities
climbed 0.3 percent each.

Nationwide apartment sales prices

(Percentage change from previous period)

2009 2010

2011

Annual Annual Annual Nov

Nationwide

2012
Dec Jan-May Jan

Feb

Mar

Apr

May May 71 May 141 May 211 May 281

1.6

2.5

9.6

0.6

0.2

0.7

0.2

0.2

0.2

0.1

0.0

0.01

0.01 -0.01 -0.02

Seoul

2.6

-2.2

-0.4

-0.2

-0.2

-1.2

-0.2

-0.1

-0.2

-0.4

-0.3

-0.06

-0.05 -0.05 -0.07

Gangnam2

3.9

-1.8

-0.6

-0.3

-0.2

-1.6

-0.2

-0.2

-0.3

-0.6

-0.3

-0.07

-0.05 -0.06 -0.07

Gangbuk

0.9

-2.7

-0.2

-0.1

-0.1

-0.9

-0.1

-0.1

-0.2

-0.3

-0.2

-0.06

-0.06 -0.04 -0.07

Seoul metropolitan area

0.7

-2.9

0.4

-0.1

-0.1

-1.1

-0.2

-0.1

-0.2

-0.4

-0.3

-0.07

-0.05 -0.07 -0.07

5 metropolitan cities

2.8

8.7

20.3

1.2

0.5

2.5

0.5

0.5

0.6

0.6

0.3

0.08

0.08

3

1. Weekly trends

2. Upscale area of Southern Seoul

3. Northern Seoul

0.03

0.03

Source: Kookmin Bank

Nationwide apartment rental prices climbed at a slower pace in May (up 0.2%, m-o-m).
Rental prices in the Seoul metropolitan area, which had increased in the previous month,
remained unchanged in May. Prices in Seoul declined 0.1 percent and prices in Gyeonggi
Province showed no change from April.
Apartment rental price increase in major districts in Seoul (m-o-m, %)
Gangnam (-0.3), Songpa (-0.2), Yangcheon (-0.3), Nowon (-0.3)

Nationwide apartment rental prices

(Percentage change from previous period)

2009 2010

2011

Annual Annual Annual Nov

Nationwide
Seoul
Gangnam2
Gangbuk

2012
Dec Jan-May Jan

Feb

Mar

Apr

0.5

4.5

8.8

16.2

0.7

0.1

2.0

0.3

0.4

0.6

8.1

7.4

13.4

0.3

-0.2

0.3

-0.1

0.2

0.2

10.4

8.8

12.5

0.1

-0.2

0.1

0.0

0.2

0.2

May May 71 May 141 May 211 May 281

0.2

0.05

0.06

0.04

0.03

0.0

-0.1

-0.04

-0.02

-0.01

0.00

-0.1

-0.1

-0.04

-0.02

-0.01

0.01

5.4

5.6

14.6

0.5

-0.1

0.6

-0.1

0.2

0.3

0.2

0.0

-0.05

-0.03

-0.01 -0.02

Seoul metropolitan area

5.6

7.2

13.9

0.2

-0.3

0.6

-0.1

0.3

0.3

0.1

0.0

-0.02

0.00

0.00

0.01

5 metropolitan cities

3.9

12.0

18.9

1.3

0.3

3.2

0.5

0.7

0.7

0.8

0.4

0.10

0.13

0.07

0.03

3

1. Weekly trends

2. Upscale area of Southern Seoul

3. Northern Seoul

Source: Kookmin Bank

Apartment sales transactions in April decreased 3.3 percent from the previous month’s
46,636 to 45,079, and were down 30.8 percent from 65,139 a year earlier.

Apartment sales transactions

(Monthly average, thousand)

2009 2010

2011

Annual Annual Mar
Nationwide

53

48

72

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

65

59

55

51

51

50

55

55

77

18

39

47

45

Source: Ministry of Land, Transport and Maritime Affairs

36

June 2012

2012

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 April rose for the 18th consecutive month (up 0.1%, m-o-m), but
were still 0.65 percent lower than the pre-crisis peak reached in October 2008.
Land prices in Seoul (up 0.10%, m-o-m), Gyeonggi Province (up 0.12%, m-o-m) and Incheon
(up 0.0.5%, m-o-m) rose at the same pace as the previous month.
Land price increases in Seoul metropolitan area (m-o-m, %)
0.08 (Nov 2011)

0.08 (Dec)

0.07 (Jan 2012)

0.07 (Feb)

0.11 (Mar)

0.11 (Apr)

Land prices in areas excluding the Seoul metropolitan area also continued the upward trend,
rising 0.14 percent month-on-month.
Land price increases in areas excluding Seoul metropolitan area (m-o-m, %)
0.13 (Nov 2011)

0.13 (Dec)

0.12 (Jan 2012)

0.13 (Feb)

0.14 (Mar)

Land prices by region
2007

0.14 (Apr)

(Percentage change from previous period)

2008

2009

2010

Annual Annual Annual Annual

Q3

2011

2012

Q4

Annual Sep

Oct

Nov

Dec Jan-Apr Jan

Feb

Mar

Apr

Nationwide

3.88

-0.31 0.96

1.05 -0.05

0.11

1.17

0.09

0.10

0.10

0.10

1.17

0.09

0.09

0.12

0.12

Seoul

5.88

-1.00 1.40

0.53 -0.25

0.39

0.97

0.05

0.04

0.04

0.04

0.97

0.03

0.05

0.10

0.10

Gyeonggi

4.22

-0.26 1.22

1.49 -0.08

0.07

1.47

0.13

0.13

0.13

0.13

1.47

0.11

0.11

0.12

0.12

Incheon

4.86

1.37

1.43 -0.10

0.02

0.66

0.05

0.05

0.05

0.05

0.66

0.04

0.04

0.13

0.05

1.99

Source: Korea Land & Housing Corporation

Nationwide land transactions in April were 182,000 land lots, down 2.3 percent from the
previous month and 13.8 percent from 212,000 a year earlier.
Monthly land transactions decreased in Gyeonggi Province (down 4.1%, m-o-m), Daejeon
(down 32.3%, m-o-m), Gangwon Province (down 11.5%, m-o-m), and North Jeolla Province
(down 11.9%, m-o-m).
Transactions of vacant land decreased 4.4 percent year-on-year at 82,000 lots, making up
44.9 percent of the total amount of transactions.

Land sales transactions

(Land lot, thousand)

2008 2009 2010
1

Nationwide

1

2011

1

1

2012

Annual Annual Annual Annual Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

208 226

212

207

196

196

181

200

209

256

129

165

187

182

208

203

187

Seoul

26

22

16

18

19

18

18

15

17

16

18

17

21

9

12

14

15

Gyeonggi

45

46

41

43

46

43

40

40

39

39

41

42

52

24

30

37

36

Incheon

13

10

8

10

11

13

10

11

9

9

9

9

11

5

6

7

7

1. Monthly average
Source: Korea Land & Housing Corporation

38

June 2012

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. Industrial output and composite indices of business cycle
indicators
Industrial output in April remained unchanged from the previous month but increased 0.5
percent year-on-year. Output in mining & manufacturing (up 0.9%, m-o-m) and services (up
0.2%, m-o-m) rose, while output in construction (down 5.2%, m-o-m) and public
administration (down 1.0%, m-o-m) fell.
The cyclical indicator of the coincident composite index fell 0.2 points in April.
Three components of the coincident composite index, such as service activity, increased
while four others, including domestic shipment, declined.
Components of the coincident composite index in April (m-o-m)
Service activity (0.3%), wholesale & retail sales (0.2%), number of non-farm payroll employment (0.2%),
mining & manufacturing production (-0.5%), value of construction completion (-0.5%), value of imports
(-0.5%), domestic shipment (-0.6%)

The cyclical indicator of the leading composite index remained unchanged from the
previous month.
Three components of the leading composite index, including the consumer expectations
index, increased compared to the previous month while five components, such as the value
of construction orders received, were lower. The spreads between long & short term interest
rates stayed unchanged.
Components of the leading composite index in April (m-o-m)
Consumer expectations index (2.9p), KOSPI (1.8%), indicator of inventory cycle (0.9%p), spreads between
long & short term interest rates (0.0%p), ratio of job openings to job seekers (-0.2%p), ratio of export to
import prices (-0.3%), international commodity prices (-1.2%), domestic shipment of machinery (-2.7%),
value of construction orders received (-8.6%)

2011

Industrial output (m-o-m, %)

2012

Sep

Oct

Nov

Dec

Jan

Feb

Mar1

Apr1

0.1

-0.1

-0.3

0.1

1.0

1.3

-1.1

0.0

(y-o-y, %)

5.3

4.3

3.7

1.6

-1.0

8.7

0.4

0.5

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

0.0

0.3

0.0

0.4

0.1

0.8

0.1

0.3

100.4

100.3

99.8

99.8

99.6

100.0

99.6

99.4

-0.5

-0.1

-0.5

0.0

-0.2

0.4

-0.4

-0.2

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

0.0

0.1

0.2

0.4

0.7

1.0

0.4

0.4

Cyclical indicator of leading composite index

99.4

99.2

99.0

99.0

99.2

99.8

99.8

99.8

(m-o-m, p)

-0.4

-0.2

-0.2

0.0

0.2

0.6

-0.1

0.0

1. Preliminary

40

June 2012

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
Government’s Efforts to Root Out Predatory Lending

Background
With financial institutions more carefully managing risks related to household loans,
financially vulnerable groups with bad credit history have found it more difficult to borrow
from banks and other mainstream financial institutions. Furthermore, savings banks, which
have been the main lenders for low and middle income classes, have become increasingly
reluctant to provide loans to those without appropriate collateral.
Those who do not have the means to borrow from financial institutions are forced to depend
on private lenders despite their high interest rates: 2,470,000 people borrowed about 8.6
trillion won from licensed private lenders alone. It is estimated that there are a large number
of financially vulnerable citizens turning to illegal lenders. The borrowing cost of illegal loans
is extremely expensive, with interest payment often deducted from the loan in the beginning.
The users of such predatory lenders are gradually put under the enormous pressure of paying
augmented interest in addition to repaying principles, and when they fail to make payments
in time, they usually suffer from harrying behavior of illegal financial predators.
However, despite continual harassment by predatory lenders in the case of payment
delinquency, the users of the lenders are reluctant to report to the authorities not only for
fear of retaliation but also because the private lenders are the only sources they can access
when in need of cash, as it is hard to borrow from financial institutions. Even those around
the victims of these predatory lenders advise them not to report, over the concern that they
may lose an easy access to cash. This has made it extremely difficult for the government to
impose adequate control on illegal lending.

42

June 2012

Crackdown on predatory lending
Although the Financial Supervisory Service has operated a reporting center for predatory
lending, efforts to curb illegal practices related to predatory lending has not been
satisfactory and the victims have not been supported properly due to the lack of expertise
and manpower. To prepare for full-scale crackdown by government authority on illegal
lending, the government has lowered the ceiling of legal interest rates for private lending,
while encouraging private lenders that have not already acquired a license to get one. In
addition, the government has prepared financial support for the users of illegal lending. As
the two measures, which are prerequisites to extensive crackdown, have been implemented
as planned, the government has declared full-scale control on illegal lending practices.

Government’s efforts to save the financially vulnerable
The government has secured 3 trillion won as micro-credit financing to protect borrowers from
illegal lending. The government’s financial support for the financially vulnerable includes loantransferring from high interest rate loans to low interest rate ones, lending living expenses to
those with a credit score lower than level 6, loaning capital to small self-employed
businesses and operating a committee to prevent heavy debtors from becoming credit
defaulters. Those who report illegal lending practices will be eligible for those government
programs, and may receive consultation to choose which program is best for them.
Legal assistance will also be available on request from the victims of illegal lending. As the
amount of interest exceeding the maximum interest rate stipulated by law, which is 39
percent per annum and 30 percent for unlicensed lenders, is legally invalid, the victims of
illegal lending practices are not obliged to pay the excessive amount. If they have already
paid, it can be offset against principles or future interest, or requested to be paid back if
there is nothing left to be balanced. Help will be available regarding the legal processes for
recollecting the exceed, with 181 experts including 86 lawyers assigned to the special legal
consulting program.
The government will more strictly deal with illegal lending practices as it will collect
excessive profits, impose a three year ban on illegal debt collection agencies, and increase
crackdown on illegal lenders by reinforcing police and judicial power related to investigating
the cases.

* This article was originally written by Young Jick Lee, Director of Financial Policy Divison at the Prime Minister’s
Office, and translated into English by Ministry of Strategy and Finance.

Economic Bulletin

43

Economic
News Briefing

Korea grows 0.9% in Q1 (Preliminary)
Korea’s real gross domestic product (GDP) expanded by 0.9 percent in the first quarter of
2012 compared to the previous quarter. It grew 2.8 percent from a year earlier.
On the production side, the manufacturing sector expanded by 2.0 percent while
construction fell 1.7 percent due to sluggish residential building construction and civil
engineering. Services grew by 1.1 percent, helped by information & communication,
education services, and health & social works.
On the expenditure side, private consumption grew by 1.0 percent led by increased
expenditures on durable goods. Facility investment rose by 10.3 percent while construction
investment fell by 1.2 percent. Exports of goods rose by 4.0 percent while imports of goods
grew by 4.0 percent.
Real gross national income (GNI) expanded by 0.2 percent, decelerating from the previous
quarter, as losses from trade in real terms expanded and offset the increase in real net factor
income from abroad.

44

June 2012

<GDP by production and expenditure*>

(Percentage change from previous period)
20111

2010

20121

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

1.4(7.6)

0.7(4.5)

0.6(4.9)

1.3(4.2)

0.8(3.5)

0.8(3.6)

0.3(3.3)

0.9(2.8)

-2.1

-2.1

-2.9

0.5

-3.0

4.5

-5.2

8.2

-5.6

Manufacturing

4.2

3.7

2.1

0.5

3.3

1.2

1.1

-0.3

2.0

Construction

0.5

-0.7

-1.8

-2.6

-4.3

1.8

2.8

-0.2

-1.7

Services

1.7

0.3

0.4

1.0

1.0

0.3

0.4

0.7

1.1

Private consumption

0.7

0.7

1.2

0.4

0.6

0.8

0.2

-0.4

1.0

Government consumption

3.0

0.3

-0.2

0.5

0.7

0.8

1.2

-0.8

3.4

Facility investment

4.4

7.3

4.6

-0.2

-1.6

4.7

-1.8

-4.3

10.3

Construction investment

1.0

-4.0

-0.9

-1.9

-4.4

3.5

-0.5

0.1

-1.2

Exports of goods

3.2

7.3

2.6

3.2

4.1

0.4

2.1

-2.7

4.2

Imports of goods

5.3

6.2

3.4

0.4

3.2

2.7

1.4

-3.6

4.0

Real gross national income (GNI)

1.6

1.4

0.1

0.0

0.0

0.7

0.6

1.0

0.2

Q1
2.2(8.7)

GDP
Agriculture, forestry and fishery

2

*Based on 2005 chained prices in seasonally adjusted terms
1. Preliminary
2. The number in the parenthesis represents percentage change from the same period of the previous year.

National financial settlement report for 2011
The Korean government has submitted the FY 2011 national financial settlement report to
the National Assembly on May 31, 2012. For the first time, the accrual-basis financial
statements were added to the latest national settlement report, enabling the management
of national assets and liabilities more comprehensively and systemically. Total revenues
were 270.5 trillion won, which were 9.3 trillion won more than the previous year and 6.4
trillion more than the planned amount. Total expenditures amounted to 258.9 trillion won,
up 10.3 trillion won year-on-year.
The consolidated fiscal account excluding social security funds was a deficit of 13.5 trillion
won, 1.1 percent of GDP while the consolidated fiscal account including social security funds
was a surplus of 18.6 trillion won, 1.5 percent of GDP. Meanwhile, the central government’s
debt hit 402.8 trillion won, 32.6 percent of GDP while the debt including that of local
governments reached 420.7 trillion won.

Economic Bulletin

45

Korea will grow 3.3 percent in 2012, OECD says
The Korean economy will expand 3.3 percent this year, the Organization for Economic
Cooperation and Development (OECD) said in its semi-annual economic outlook report
released on May 22. The latest forecast is down from the 3.5 percent that was predicted in April
2012. The Paris-based organization cited external and domestic risks including the eurozone
crisis and rising household debt as a reason for downgrading Korea’s growth prospect.
The OECD assessed that the Korean economy is rebounding from a slowdown in late 2011,
led by a recovery in exports as world trade gains momentum. Trade will also be stimulated
by the implementation of the Korea-US Free Trade Agreement beginning in 2012. Stronger
exports will in turn boost fixed investment and support private consumption, helping to
achieve output growth of 4 percent in 2013.

Korea ranked at 22nd in the IMD’s World Competitiveness Report
According to the 2012 edition of the World Competitiveness Yearbook by International
Institute for Management Development (IMD), Korea’s global competitiveness held steady
to rank 22nd among 59 countries. Korea was ranked 29th in 2007, 31st in 2008, 27th in 2009,
23rd in 2010, and 22nd in 2011. In this year’s report, Hong Kong topped the ranking, followed
by the US and Singapore. Korea ranked highest in long term unemployment rate (1st),
working hours (2nd), and secondary school enrollment (2nd). Meanwhile, immigration laws
(58th), corporate boards (56th), and direct investment abroad (55th) are areas Korea needs
improvement.

Overseas direct investment rises 18.7% in Q1
Korea’s overseas direct investment (planned) in the first quarter of 2012 rose 18.7 percent
from a year earlier to US$10.98 billion, the Ministry of Strategy and Finance (MOSF)
announced on May 16. Investments in manufacturing (up 61.1%), finance & insurance (up
709.2%) and real estate & renting (up 356.9%) surged, offsetting declining investments in
the mining sector (down 38.4%).
Investments in Oceania declined, while those in Asia and Latin America increased. Korea’s
top five destinations for overseas investment in the first quarter were the US (US$1.68
billion, down 15.3%), Australia (US$1.62 billion, down 55.9%), China (US$1.48 billion, up

46

June 2012

166.3%), the Philippines (US$0.86 billion, up 1,408.2%), and the Netherlands (US$0.73
billion, up 1,921.4%).
Despite the uncertainties stemming from the global financial crisis and high oil prices,
Korea’s overseas direct investment for 2012 is forecast to retain an upward trend, backed by
the steady recovery of the global economy and continued investment in offshore resources
development projects.

Industries to spend 2 trillion won to reduce emissions
Korea’s companies are planning to invest 2 trillion won this year in facilities that would help
reduce greenhouse gas emissions, taking part in efforts to achieve the nation’s carbon
reduction goals. 1.4 trillion won will be spent on building energy efficient facilities, 300
billion won on alternative energy facilities, and 140 billion won on waste heat recovery
systems. At a May 24 seminar chaired by the Ministry of Knowledge Economy (MKE) and
attended by representatives of major Korean companies and industry groups, the Ministry
promised prompt measures to encourage companies to make the necessary investments for
cutting emissions. The proposed measures include expanding tax incentives and financial
aid, as well as training experts in green management.

Government unveils plan to reduce oil consumption
In order to mitigate the effects of high oil prices on the Korean economy, the government
announced on May 23 various measures to reduce oil consumption. In the area of
transportation, the government will unveil stricter fuel efficiency and emissions standards
for cars, extend tax breaks for hybrid cars, and encourage the use of public transportation.
Meanwhile, in order to reduce oil consumption in the manufacturing industry, the
government will invest in energy saving initiatives and urge companies to switch to
alternative energy sources. Through these measures, the government aims to cut oil
consumption by 26 million barrels by 2015, thus reducing the share of oil in national energy
consumption from 40 percent in 2010 to 33 percent in 2015.

Economic Bulletin

47

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

2004
2005
2006
2007
2008
2009
2010
2011P

Gross fixed capital formation

Final
consumption
expenditure

Agri., fores.
& fisheries

Manufacturing

4.6
4.0
5.2
5.1
2.3
0.3
6.3
3.6

9.1
1.3
1.5
4.0
5.6
3.2
-4.4
-2.0

10.0
6.2
8.1
7.2
2.8
-1.5
14.7
7.2

1.0
4.6
5.1
5.1
2.0
1.2
4.1
2.2

Construction

Facilities

2.1
1.9
3.4
4.2
-1.9
-1.0
5.8
-1.1

1.3
-0.4
0.5
1.4
-2.8
3.4
-3.7
-5.0

3.8
5.3
8.2
9.3
-1.0
-9.8
25.7
3.7

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

2010

I
II
III
IV

8.7
7.6
4.5
4.9

-0.1
-2.2
-7.8
-5.9

22.4
17.6
9.5
11.0

6.1
3.6
3.5
3.0

11.2
5.8
5.6
2.3

1.8
-4.7
-4.9
-5.2

29.6
32.0
26.3
16.9

2011P

I
II
III
IV

4.2
3.5
3.6
3.3

-7.9
-1.9
-4.1
3.7

10.0
7.5
6.3
5.4

2.6
2.7
2.3
1.3

-2.1
0.7
-1.5
-1.8

-11.0
-4.2
-4.0
-2.1

10.3
7.7
1.2
-3.3

2012P

I

2.8

0.7

4.1

2.2

4.6

1.5

8.6

P: Preliminary
Source: The Bank of Korea

50

June 2012

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)

Production
index

Period

2010
2011

Y-o-Y
change (%)

Shipment
index

Y-o-Y
change (%)

Inventory
index

Y-o-Y
change (%)

Service
production
index

Y-o-Y
change (%)

139.1
148.8

16.2
6.9

133.5
142.1

14.4
6.5

135.6
163.6

17.4
20.7

122.9
127.0

3.9
3.3

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
IV

143.6
151.2
146.1
154.0

10.6
7.2
5.1
5.0

138.7
144.8
139.3
146.4

11.9
7.2
5.0
3.3

137.4
142.7
149.0
163.6

10.3
10.0
10.7
20.7

123.1
126.8
127.1
130.8

2.8
3.2
4.5
2.7

149.1

3.8

142.5

3.0

159.1

16.0

126.2

2.5

2012

IP

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

2011

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

146.9
129.8
154.0
149.7
151.5
152.3
148.7
142.9
146.8
154.6
153.7
153.7

13.6
9.0
9.1
6.9
8.2
6.6
3.9
4.7
6.9
6.4
5.8
2.8

141.4
125.2
149.6
144.6
144.4
145.4
135.9
136.5
141.3
147.0
145.8
147.0

14.9
10.2
10.7
7.3
8.2
5.9
3.1
4.2
7.5
4.4
3.1
2.4

135.4
137.1
137.4
137.3
140.2
142.7
147.2
150.4
149.1
153.1
157.4
163.6

13.0
11.2
10.3
8.7
7.9
10.0
9.8
11.8
10.8
14.7
18.5
20.7

124.1
116.9
128.2
125.2
127.4
128.4
127.0
126.8
126.2
127.4
127.2
137.1

4.7
0.2
3.1
3.0
3.3
3.5
3.8
4.9
3.8
3.4
2.7
1.6

143.7
148.4
155.3
149.6

-2.1
14.4
0.7
0.0

137.2
141.7
148.6
142.7

-2.6
13.5
-0.4
-1.0

164.0
164.0
159.1
158.7

21.4
20.0
16.0
16.3

124.7
123.6
130.3
126.7

0.6
5.6
1.6
1.0

2012

1
2
3P
4P

P: Preliminary
Source: Statistics Korea

52

June 2012

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 (%)

128.7
135.7

7.9
5.4

101.7
100.5

8.4
-1.2

80.9
79.9

Production
capacity index
(2005=100)

2010
2011
2010

I
II
III
IV

124.9
127.3
130.4
132.1

6.8
7.9
8.6
8.1

97.1
105.3
99.3
105.0

18.8
10.5
1.5
4.7

80.3
81.9
80.6
80.8

2011

I
II
III
IV

133.7
135.2
136.0
138.1

7.0
6.2
4.3
4.5

99.0
103.7
98.0
101.4

2.0
-1.5
-1.3
-3.4

82.2
79.9
79.6
78.0

138.3

3.4

97.6

-1.4

79.9

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

124.2
124.5
125.9
126.3
127.4
128.3
129.5
130.6
131.1
131.6
131.9
132.9

6.2
6.5
7.5
7.3
8.2
8.3
8.5
9.0
8.3
8.2
8.2
8.0

96.9
88.1
106.4
105.8
103.5
106.7
104.9
96.1
96.8
106.1
104.8
104.2

31.5
10.4
16.2
12.4
10.9
8.4
6.2
5.6
-6.6
7.1
4.3
3.0

79.2
80.5
81.2
81.7
81.7
82.2
81.7
80.4
79.7
79.5
80.5
82.3

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

133.1
133.4
134.5
135.0
135.2
135.4
135.7
135.8
136.6
137.8
138.2
138.2

7.2
7.1
6.8
6.9
6.1
5.5
4.8
4.0
4.2
4.7
4.8
4.0

101.6
88.5
106.8
103.0
103.1
104.9
101.0
95.3
97.6
102.9
101.9
99.5

4.9
0.5
0.4
-2.6
-0.4
-1.7
-3.7
-0.8
0.8
-3.0
-2.8
-4.5

83.6
81.8
81.3
79.4
79.9
80.5
79.9
79.8
79.0
78.8
78.4
76.9

2012 1
2
3P
4P

138.2
138.3
138.5
138.5

3.8
3.7
3.0
2.6

92.6
97.6
102.6
98.9

-8.9
10.3
-3.9
-4.0

80.5
81.0
78.1
79.3

2012

IP

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)
Consumer
goods
sales
index

Period

2010
2011

Y-o-Y
change (%)

Durable
goods

Y-o-Y
change (%)

Semi-durable
goods

Y-o-Y
change (%)

Non-durable
goods

Y-o-Y
change (%)

121.2
126.4

6.7
4.3

157.1
174.0

14.8
10.8

113.5
118.3

6.8
4.2

113.8
115.0

2.2
1.1

2010

I
II
III
IV

116.6
118.8
120.4
128.8

9.5
4.8
7.6
5.2

148.7
149.9
158.5
171.5

29.6
5.6
17.0
10.6

105.9
114.6
100.4
133.3

2.7
6.4
6.5
10.9

110.8
112.9
118.0
113.4

2.9
3.4
3.2
-0.4

2011

I
II
III
IV

122.9
125.6
126.0
131.2

5.4
5.7
4.7
1.9

167.3
175.9
175.6
177.3

12.5
17.3
10.8
3.4

112.0
120.3
104.5
136.5

5.8
5.0
4.1
2.4

112.4
112.2
120.1
115.3

1.4
-0.6
1.8
1.7

125.3

2.0

173.3

3.6

112.8

0.7

115.0

2.3

2012

IP

2010

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

115.5
113.9
120.3
116.5
121.2
118.8
120.8
116.6
123.9
125.8
127.8
132.9

6.5
12.5
9.7
7.3
3.6
3.7
9.0
9.3
4.8
4.3
6.9
4.6

145.5
141.4
159.2
144.5
147.1
158.0
163.9
154.4
157.1
165.3
171.9
177.3

39.8
21.9
28.4
16.6
2.2
0.0
18.6
26.0
7.7
14.2
12.0
6.1

108.4
99.7
109.6
113.6
120.9
109.2
103.4
90.1
107.6
129.8
133.0
137.0

4.6
2.7
1.0
3.9
6.7
8.8
8.4
4.2
6.4
11.8
9.2
11.7

108.2
111.7
112.6
110.5
116.0
112.1
115.4
116.3
122.3
111.7
111.9
116.7

-5.7
12.6
3.1
3.5
2.6
4.2
4.2
3.0
2.5
-4.2
2.5
0.6

2011

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

128.2
113.5
126.9
122.6
128.6
125.7
127.5
123.1
127.5
128.8
129.3
135.6

11.0
-0.4
5.5
5.2
6.1
5.8
5.5
5.6
2.9
2.4
1.2
2.0

164.9
153.7
183.2
167.0
175.8
184.9
185.5
173.3
167.9
169.8
183.0
179.0

13.3
8.7
15.1
15.6
19.5
17.0
13.2
12.2
6.9
2.7
6.5
1.0

120.1
101.7
114.1
120.9
126.4
113.7
107.5
93.4
112.6
134.7
130.2
144.6

10.8
2.0
4.1
6.4
4.5
4.1
4.0
3.7
4.6
3.8
-2.1
5.5

119.2
104.6
113.3
109.0
115.9
111.7
117.7
119.5
123.1
114.8
112.2
119.0

10.2
-6.4
0.6
-1.4
-0.1
-0.4
2.0
2.8
0.7
2.8
0.3
2.0

129.2
119.6
127.0
123.1

0.8
5.4
0.1
0.4

168.0
170.8
181.1
169.2

1.9
11.1
-1.1
1.3

119.4
104.2
114.9
119.2

-0.6
2.5
0.7
-1.4

121.9
108.4
114.7
110.4

2.3
3.6
1.2
1.3

2012

1
2
3P
4P

P: Preliminary
Source: Statistics Korea

54

June 2012

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

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

Period

2010
2011

Durable
goods

Y-o-Y
change (%)

Non-durable
goods

Y-o-Y
change (%)

Consumer
sentiment index

122.4
121.1

5.2
-1.1

140.5
135.4

4.0
-3.6

115.2
115.3

5.8
0.1

-

2010

I
II
III
IV

118.9
120.2
122.6
128.1

10.4
4.7
2.3
3.9

137.3
140.2
140.3
144.1

21.1
0.2
0.6
-2.5

111.4
112.2
115.5
121.7

5.8
7.2
3.1
7.3

-

2011

I
II
III
IV

121.3
117.9
121.7
123.3

2.0
-1.9
-0.7
-3.7

135.5
135.2
137.1
133.9

-1.3
-3.6
-2.3
-7.1

115.6
111.0
115.5
119.1

3.8
-1.1
0.0
-2.1

-

119.9

-1.2

135.4

0.1

113.6

-1.7

-

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

124.2
110.7
121.7
120.8
117.6
122.2
122.4
121.3
124.1
129.7
128.7
125.9

15.4
6.6
9.0
7.3
3.6
3.2
2.9
9.4
-4.3
6.6
8.6
-2.9

136.5
130.2
145.1
136.0
136.2
148.4
146.7
134.7
139.6
146.7
145.8
139.9

37.9
12.7
15.4
12.8
-3.2
-6.3
0.3
7.1
-4.4
5.2
-0.6
-10.9

119.2
102.8
112.3
114.8
110.2
111.7
112.7
116.0
117.9
122.9
121.9
120.2

7.4
3.8
5.9
5.0
7.4
9.2
4.4
10.6
-4.2
7.3
13.7
1.3

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

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

130.2
106.3
127.3
118.8
115.8
119.2
120.2
122.2
122.6
124.3
121.5
124.2

4.8
-4.0
4.6
-1.7
-1.5
-2.5
-1.8
0.7
-1.2
-4.2
-5.6
-1.4

134.0
126.1
146.5
133.7
132.0
139.9
142.5
132.9
136.0
132.5
131.4
137.8

-1.8
-3.1
1.0
-1.7
-3.1
-5.7
-2.9
-1.3
-2.6
-9.7
-9.9
-1.5

128.7
98.4
119.6
112.8
109.3
110.9
111.3
117.9
117.3
121.0
117.5
118.7

8.0
-4.3
6.5
-1.7
-0.8
-0.7
-1.2
1.6
-0.5
-1.5
-3.6
-1.2

108
105
98
100
104
102
102
99
99
100
103
99

2012 1
2
3P
4P
5

120.4
117.4
122.0
119.9
-

-7.5
10.4
-4.2
0.9
-

128.2
136.8
141.5
129.5
-

-4.3
8.5
-3.4
-3.1
-

117.2
109.6
114.1
116.0
-

-8.9
11.4
-4.6
2.8
-

98
100
101
104
105

2012

IP

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

Estimated
facility investment
index
(2005=100)

Domestic
machinery
shipment
excluding ship
(2005=100)

Total

Public

Private

25,240

2,599

22,641

13,848

133.1

134.2

6,445
6,676
5,703
6,416

470
728
404
998

5,975
5,948
5,300
5,418

3,695
3,677
3,109
3,367

126.7
144.5
133.3
127.9

127.8
147.3
128.4
133.2

6,292

960

5,332

2,982

138.6

130.5

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

2,009
2,045
2,391
1,951
2,113
2,611
1,990
1,800
1,913
1,977
2,317
2,122

115
122
233
99
142
487
152
115
137
301
474
223

1,894
1,923
2,158
1,853
1,971
2,124
1,838
1,685
1,776
1,676
1,843
1,899

1,109
1,146
1,441
1,155
1,186
1,336
1,027
1,006
1,076
966
1,124
1,277

123.3
112.4
144.5
134.4
146.8
152.3
133.7
135.0
131.3
114.8
129.3
139.3

121.5
118.3
143.7
137.5
149.4
154.9
135.2
124.1
125.8
122.5
127.3
149.8

2012 1
2
3P
4P

2,012
2,490
1,790
1,815

115
712
133
98

1,897
1,778
1,657
1,718

1,131
1,013
838
938

129.3
139.8
146.6
141.1

119.7
132.5
139.2
133.3

2011
2011

2012

I
ll
III
IV
IP

Manufacturing

Y-o-Y change (%)
2011

11.0

11.2

11.0

12.8

0.7

1.4

19.5
10.0
3.4
11.5

-10.5
81.1
6.1
-3.1

22.7
4.9
3.2
14.7

26.8
3.1
3.1
21.0

5.4
5.7
-3.1
-4.7

9.2
3.6
-2.9
-3.7

-2.4

104.5

-10.8

-19.3

9.4

2.1

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

15.6
28.0
16.2
9.0
-0.8
21.4
-1.7
6.8
6.1
18.0
33.9
-9.6

-32.1
14.0
-6.3
-22.3
23.4
205.2
44.9
8.0
-19.1
197.7
333.3
-72.8

20.7
29.0
19.3
11.4
-2.2
6.7
-4.3
6.7
8.8
6.4
13.7
24.3

9.8
29.8
40.9
9.4
-10.8
13.1
-3.9
12.0
2.5
0.0
13.6
54.4

19.4
-0.2
-0.2
2.2
11.7
3.5
-3.0
-2.9
-3.2
-10.9
-2.8
-1.0

11.5
14.1
4.0
0.2
8.5
2.2
-0.2
-3.5
-5.3
-4.7
-4.5
-2.0

2012 1
2
3P
4P

0.1
21.8
-25.1
-7.0

0.2
485.1
-43.0
-1.2

0.1
-7.5
-23.2
-7.3

2.0
-11.6
-41.8
-18.8

4.9
24.4
1.5
5.0

-1.5
12.0
-3.1
-3.1

2011

2012

I
ll
III
IV
IP

P: Preliminary
Source: Statistics Korea

56

June 2012

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

Period

2012
2011

2012

Private

Public

Private

35,508

51,273

93,428

28,459

60,333

19,088
23,904
21,499
27,146

7,325
9,324
7,841
11,017

10,852
13,182
12,533
14,706

16,276
25,101
19,638
32,413

4,095
6,307
6,593
11,463

11,102
17,509
12,245
19,477

19,195

7,496

10,778

22,232

5,640

15,959

6,208
5,247
7,633
7,053
7,430
9,422
6,786
6,901
7,813
8,022
7,945
11,179

2,480
2,015
2,831
2,724
2,817
3,783
2,432
2,513
2,896
2,963
3,250
4,804

3,475
2,991
4,386
3,978
4,222
4,982
4,046
4,056
4,431
4,678
4,300
5,729

4,927
4,088
7,262
6,670
6,984
11,448
5,098
7,300
7,240
7,111
8,745
16,556

1,330
1,397
1,369
1,432
1,895
2,979
1,819
1,504
3,270
2,295
2,948
6,220

2,904
2,546
5,651
4,609
4,598
8,303
3,103
5,509
3,633
4,630
5,668
9,179

5,901
5,978
7,316
6,756

2,227
2,364
2,905
2,603

3,382
3,363
4,034
3,853

7,033
8,193
7,006
6,374

1,973
2,175
1,491
1,438

4,920
5,912
5,127
4,483

91,638
I
ll
llI
lV
IP
1
2
3
4
5
6
7
8
9
10
11
12
1
2
3P
4P

Type of order

Domestic
construction
orders received
(total)

Public

2011
2011

Type of order

Value of
construction
completion
(total)

Y-o-Y change (%)
2011
2011

2012
2011

2012

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

-0.7

1.0

-2.9

4.0

-2.5

9.5

-6.2
-0.7
-2.4
5.1

-2.1
2.2
0.5
2.5

-9.4
-5.4
-4.7
6.9

-11.8
-1.7
1.5
22.4

-49.2
-8.4
-3.1
54.2

20.2
3.8
6.7
11.3

0.6

2.3

-0.7

36.6

37.7

43.7

-4.5
-14.7
-0.8
-4.0
-4.0
4.7
-8.9
-3.4
5.3
8.8
-0.9
7.1

9.5
-12.6
-2.7
3.8
-0.8
3.3
-9.7
2.2
9.2
3.9
-0.1
3.4

-12.5
-17.2
-0.2
-10.7
-6.9
0.7
-8.3
-7.1
1.3
12.4
-2.3
10.4

-31.9
-16.0
14.2
0.1
-21.0
14.1
-32.8
72.8
-3.9
61.4
14.1
15.0

-46.6
-36.2
-59.6
-21.0
12.7
-12.2
-53.1
12.5
105.4
94.1
44.7
47.6

-33.3
10.7
119.0
3.0
-31.8
46.9
-8.4
101.8
-32.2
52.0
7.1
0.1

-5.0
13.9
-4.1
-4.2

-10.2
17.3
2.6
-4.4

-2.7
12.4
-8.0
-3.1

42.8
100.4
-3.5
-4.4

48.4
55.7
9.0
0.4

69.4
132.2
-9.3
-2.7

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

Period

Leading
index
(2005=100)

Coincident
index
(2005=100)

Cycle of
coincident
index
(2005=100)

BSI (results)

BSI (prospects)

2008 1
2
3
4
5
6
7
8
9
10
11
12

115.8
115.3
114.7
114.4
113.9
113.0
112.3
112.8
113.7
114.4
114.5
114.9

119.9
120.4
120.7
120.8
120.8
120.4
120.3
120.6
121.1
121.1
120.1
118.1

103.1
103.0
102.9
102.6
102.1
101.4
100.9
100.7
100.7
100.3
99.1
97.1

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

115.5
116.6
117.4
119.7
121.5
123.7
124.6
125.6
126.7
128.5
130.1
131.0

116.7
116.7
117.7
119.2
120.0
122.0
123.0
123.8
124.7
125.8
126.8
127.5

95.6
95.2
95.6
96.4
96.7
97.7
98.3
98.5
98.8
99.2
99.6
99.7

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

131.5
131.5
131.5
131.2
131.6
132.1
132.9
133.2
133.5
133.0
133.3
133.5

128.2
129.4
130.2
131.1
131.8
132.4
133.3
133.6
133.6
133.5
134.0
135.0

99.8
100.3
100.5
100.7
100.8
100.9
101.1
100.9
100.5
99.9
99.9
100.2

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
12

134.6
134.8
134.7
134.3
134.8
135.7
136.4
136.6
136.6
136.8
137.1
137.7

136.7
137.1
137.6
137.5
138.2
139.1
140.0
140.7
140.7
141.1
141.1
141.7

101.1
100.9
100.8
100.3
100.4
100.6
100.8
100.9
100.4
100.3
99.8
99.8

99.1
92.2
107.8
98.4
98.9
99.6
96.2
86.8
96.4
95.0
93.0
90.1

101.8
98.0
113.5
99.3
104.3
104.3
101.3
98.9
96.3
101.4
96.4
94.8

2012 1
2
3
4
5
6

138.7
140.1
140.7
141.2
-

141.9
143.1
143.2
143.6
-

99.6
100.0
99.6
99.4
-

88.6
92.2
101.4
97.5
95.7
-

88.3
91.0
106.1
98.4
104.7
98.3

Source: Statistics Korea & The Federation of Korean Industries

58

June 2012

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

Current
balance

Period

2010
2011

Goods
trade
balance

Exports

29,393.5
26,505.3

40,082.5
30,950.3

Imports

Services
trade
balance

Income
trade
balance

Current
transfers

461,444.9
552,564.3

421,362.4
521,614.0

-8,626.0
-4,377.4

1,015.9
2,455.8

-3,078.9
-2,523.4

2010

I
II
III
IV

67.8
10,734.7
10,121.7
8,469.3

4,296.2
12,307.0
11,566.2
11,913.1

100,951.1
117,120.4
116,756.4
126,617.0

96,654.9
104,813.4
105,190.2
114,703.9

-4,067.7
-200.0
-1,787.5
-2,570.8

595.6
-901.4
1,289.2
32.5

-756.3
-470.9
-946.2
-905.5

2011

I
II
III
IV

2,610.3
5,492.2
6,896.0
11,506.8

5,842.7
7,661.0
7,197.7
10,248.9

127,691.2
142,722.8
141,393.5
140,756.8

121,848.5
135,061.8
134,195.8
130,507.9

-2,538.0
-796.0
-1,198.2
154.8

387.9
-824.8
1,314.9
1,577.8

-1,082.3
-548.0
-418.5
-474.7

2,559.9

2,612.4

134,627.6

132,015.2

-648.4

1,487.6

-891.7

2012

IP

2010

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

-599.5
-549.2
1,216.5
724.5
4,923.1
5,087.1
4,779.0
1,668.5
3,674.2
5,489.1
2,024.4
955.8

891.0
633.2
2,772.0
3,333.9
3,625.4
5,347.7
4,934.9
2,224.0
4,407.3
5,403.2
3,241.2
3,268.7

31,782.7
31,111.0
38,057.4
38,740.1
38,083.5
40,296.8
40,473.4
37,186.1
39,096.9
42,008.4
41,822.0
42,786.6

30,891.7
30,477.8
35,285.4
35,406.2
34,458.1
34,949.1
35,538.5
34,962.1
34,689.6
36,605.2
38,580.8
39,517.9

-1,596.2
-1,495.3
-976.2
-561.5
932.8
-571.3
-219.6
-630.1
-937.8
-352.6
-201.2
-2,017.0

456.5
549.9
-410.8
-1,514.5
390.0
223.1
359.9
540.2
389.1
654.2
-775.6
153.9

-350.8
-237.0
-168.5
-533.4
-25.1
87.6
-296.2
-465.6
-184.4
-215.7
-240.0
-449.8

2011

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

154.7
1,126.1
1,329.5
1,277.6
2,183.9
2,030.7
3,773.6
292.6
2,829.8
4,132.9
4,564.6
2,809.3

1,557.9
1,530.8
2,754.0
3,327.6
1,633.8
2,699.6
4,728.0
371.5
2,098.2
3,547.2
3,997.2
2,704.5

42,662.8
37,228.3
47,800.4
47,879.4
47,149.8
47,693.6
48,555.9
45,634.9
47,202.7
46,451.7
46,656.2
47,648.9

41,104.9
35,697.2
45,046.4
44,551.8
45,516.0
44,994.0
43,827.9
45,263.4
45,104.5
42,904.5
42,659.0
44,944.4

-1,640.9
-569.1
-328.0
-178.8
15.5
-632.7
-690.9
-577.9
70.6
2.8
357.2
-205.2

703.7
542.6
-858.4
-1,581.9
517.3
239.8
72.3
699.6
543.0
643.5
445.6
488.7

-466.0
-378.2
-238.1
-289.3
17.3
-276.0
-335.8
-200.6
118.0
-60.6
-243.5
-178.7

2012P 1
2
3
4

-968.8
557.3
2,971.4
1,776.6

-1,624.0
1,310.1
2,926.3
1,795.2

41,383.8
45,863.0
47,380.8
45,884.5

43,007.8
44,552.9
44,454.5
44,089.3

-128.8
-1,219.3
699.7
549.7

1,191.7
613.4
-317.5
-422.0

-407.7
-146.9
-337.1
-146.3

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

Economic Bulletin

59

10. Balance of payments (II) See graph 10-3
(million US$)

Period

Capital &
financial
account

Direct
investment

Portfolio
investment

Financial
derivative

2010
2011

-27,478.5
-31,964.6

-22,184.3
-15,694.0

42,479.8
10,312.2

828.9
-1,735.3

-21,414.4
-11,084.9

Changes in
reserve
assets

Errors and
omissions

-217.9
150.0

-26,970.6
-13,912.6

-1,915.0
4,960.1

Capital transfers
Other
& acquisition of
investment non-financial
assets

2010

I
II
III
IV

743.2
-8,818.0
-9,103.9
-10,299.8

-2,873.4
-2,898.6
-6,617.3
-9,795.0

11,725.9
7,207.0
15,659.9
7,887.0

829.9
-882.1
-241.4
1,122.5

-191.2
-6,727.8
-7,519.0
-6,976.4

-179.8
20.3
-8.2
-50.2

-8,568.2
-5,536.8
-10,377.9
-2,487.7

-811.0
-1,916.7
-1,017.8
1,830.5

2011

I
II
III
IV

-2,754.1
-6,808.0
-8,320.9
-14,081.6

-4,696.3
-4,138.1
-2,807.6
-4,052.0

-1,379.1
2,035.4
8,108.4
1,547.5

730.3
-542.9
-1,490.7
-432.0

6,251.6
-1,432.5
-18,692.6
2,788.6

-181.4
-111.9
235.5
207.8

-3,479.2
-2,618.0
6,326.1
-14,141.5

143.8
1,315.8
1,424.9
2,574.8

-1,377.1

-7,203.3

15,156.1

1,355.0

-4,232.7

134.3

-6,586.4

-1,182.8

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

-1,176.7
2,454.3
-534.4
1,044.1
-5,831.6
-4,030.5
-3,182.5
-615.0
-5,306.4
-4,519.4
-3,996.0
-1,784.4

-936.1
-549.9
-1,387.4
-1,102.5
-677.6
-1,118.5
-1,758.4
-1,139.5
-3,719.4
-6,893.6
-1,119.5
-1,781.9

171.9
2,771.5
8,782.5
6,093.5
1,073.0
40.5
8,698.4
1,650.2
5,311.3
8,528.1
2,243.9
-2,885.0

230.0
593.4
6.5
126.2
-799.8
-208.5
-227.3
124.6
-138.7
366.2
251.4
504.9

6,410.8
-912.6
-5,689.4
5,337.6
-12,610.7
545.3
-3,633.0
-25.7
-3,860.3
-3,814.4
-3,627.2
465.2

-70.6
-46.1
-63.1
-120.5
100.2
40.6
-0.5
12.0
-19.7
-47.1
-25.3
22.2

-6,982.7
598.0
-2,183.5
-9,290.2
7,083.3
-3,329.9
-6,261.7
-1,236.6
-2,879.6
-2,658.6
-1,719.3
1,890.2

1,776.2
-1,905.1
-682.1
-1,768.6
908.5
-1,056.6
-1,596.5
-1,053.5
1,632.2
-969.7
1,971.6
828.6

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

-1,282.0
-1,996.2
524.1
394.7
-3,956.7
-3,246.0
-2,469.2
-1,690.6
-4,161.1
-4,391.9
-6,191.9
-3,497.8

-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
-1,132.2
-2,077.1
-842.7

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
3,919.1
39.8
-2,411.4

569.3
-363.3
524.3
-206.2
165.1
-501.8
526.6
-1,868.6
-148.7
108.5
-379.9
-160.6

1,773.3
5,126.9
-648.6
-145.9
-821.7
-464.9
-6,581.0
4,638.4
-16,750.0
2,784.7
-6.2
-640.0

-120.7
-32.7
-28.0
-33.6
-49.9
-28.4
13.8
41.5
180.2
109.7
98.1
10.1

-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
-10,181.7
-3,866.6
-93.2

1,127.3
870.1
-1,853.6
-1,672.3
1,772.8
1,215.3
-1,304.4
1,398.0
1,331.3
259.0
1,627.3
688.5

2012P 1
2
3
4

1,305.6
-920.3
-1,762.4
122.4

-2,013.3
-3,572.6
-1,617.4
-940.4

7,737.0
6,115.2
1,303.9
-2,213.3

434.2
214.1
706.7
320.5

-2,190.4
-1,526.1
-516.2
2,632.1

-1.7
36.0
100.0
102.3

-2,660.2
-2,186.8
-1,739.4
221.2

-336.8
363.0
-1,209.0
-1,899.0

2012

IP

P: Preliminary
Source: The Bank of Korea

60

June 2012

11. Prices See graphs 11-1, 11-2 & 11-3
Consumer prices
(2010=100)

Producer prices
(2005=100)

Export & import prices
(2005=100)

Period
All Items

Commodity

Service

Core

All items

Commodity

Export

Import

2010
2011

100.0
104.0

100.0
105.7

100.0
102.7

100.0
103.2

115.1
122.1

117.0
125.8

106.4
111.1

145.0
164.4

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

98.8
99.0
99.2
99.6
99.7
99.6
99.8
100.3
101.1
101.1
100.6
101.0

98.3
98.6
98.9
99.6
99.5
99.2
99.5
100.3
102.0
102.0
100.8
101.5

99.2
99.4
99.5
99.7
99.9
99.9
100.2
100.3
100.4
100.4
100.6
100.7

99.3
99.5
99.4
99.6
99.8
99.9
100.1
100.3
100.4
100.4
100.4
100.7

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
11
12

102.2
102.9
103.3
103.4
103.6
103.8
104.3
105.0
104.9
104.7
104.8
105.2

103.4
104.4
104.9
104.6
104.7
105.0
105.9
107.1
107.1
106.6
106.8
107.3

101.2
101.7
102.1
102.4
102.6
102.8
103.1
103.3
103.1
103.2
103.3
103.5

101.4
102.1
102.4
102.6
103.0
103.4
103.7
103.8
103.7
103.6
103.9
104.3

119.7
120.5
122.0
122.4
122.3
121.9
122.4
122.8
122.9
122.9
122.6
122.9

122.7
123.9
125.8
126.2
126.0
125.5
126.0
126.7
126.9
126.9
126.5
127.0

108.6
110.6
113.5
111.8
110.2
109.4
108.0
109.4
113.1
114.7
112.0
112.4

156.1
160.9
166.5
167.6
163.9
163.2
161.4
162.1
168.1
169.5
166.8
167.2

2012 1
2
3
4
5

105.7
106.1
106.0
106.0
106.2

107.9
108.5
109.2
108.9
109.2

103.9
104.2
103.5
103.7
103.9

123.8
124.7
125.4
125.3
124.6

122.8
129.0
129.9
129.7
128.8

113.6
112.8
113.4
114.1
113.7

168.5
169.3
172.3
170.5
167.2

2010
2011

3.0
4.0

4.6
5.7

1.9
2.7

104.6
104.7
104.3
104.4
104.6
Y-o-Y change (%)
1.8
3.2

3.8
6.1

4.6
7.5

-2.6
4.4

5.3
13.4

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

3.5
3.0
2.5
2.6
2.7
2.7
2.5
2.7
3.4
3.7
3.0
3.0

5.8
4.5
3.7
4.0
4.1
4.0
3.8
4.1
5.8
6.4
4.9
4.9

2.1
2.2
1.7
1.8
2.0
1.9
1.8
1.7
1.8
1.8
1.9
1.9

2.3
2.1
1.6
1.6
1.6
1.6
1.7
1.8
1.8
1.7
1.5
1.7

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
11
12

3.4
3.9
4.1
3.8
3.9
4.2
4.5
4.7
3.8
3.6
4.2
4.2

5.2
5.9
6.1
5.0
5.2
5.8
6.4
6.8
5.0
4.5
6.0
5.7

2.0
2.3
2.6
2.7
2.7
2.9
2.9
3.0
2.7
2.8
2.7
2.8

2.1
2.6
3.0
3.0
3.2
3.5
3.6
3.5
3.3
3.2
3.5
3.6

6.2
6.6
7.3
6.8
6.2
6.2
6.5
6.6
5.7
5.6
5.1
4.3

7.7
8.2
9.1
8.4
7.6
7.6
8.0
8.2
7.0
7.0
6.4
5.4

4.9
5.6
9.1
7.7
3.3
-0.4
-1.3
1.8
5.8
9.2
5.4
2.5

14.1
16.9
19.6
19.0
13.2
10.5
9.8
10.0
14.0
16.0
11.8
7.1

2012 1
2
3
4
5

3.4
3.1
2.6
2.5
2.5

4.4
3.9
4.1
4.1
4.3

2.7
2.5
1.4
1.3
1.3

3.2
2.5
1.9
1.8
1.6

3.4
3.5
2.8
2.4
1.9

4.2
4.1
3.3
2.8
2.2

4.6
2.1
-0.0
2.0
3.2

7.9
5.2
3.5
1.7
2.1

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
2010
2011

24,748
25,099

23,829
24,244

4,028
4,091

18,214
18,595

3.7
3.4

16,971
17,397

10,086
10,661

5,068
4,990

1,817
1,746

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
10
11
12

24,114
24,431
24,918
25,240
25,480
25,592
25,473
25,257
25,076
25,409
25,318
24,880

23,196
23,336
23,846
24,303
24,661
24,752
24,636
24,495
24,318
24,673
24,589
24,125

4,148
4,149
4,122
4,108
4,137
4,135
4,079
4,031
4,014
4,044
4,054
4,071

18,007
18,019
18,244
18,536
18,731
18,812
18,844
18,739
18,595
18,856
18,921
18,833

3.8
4.5
4.3
3.7
3.2
3.3
3.3
3.0
3.0
2.9
2.9
3.0

16,832
16,856
17,065
17,357
17,626
17,720
17,667
17,510
17,378
17,608
17,650
17,496

10,305
10,390
10,543
10,618
10,708
10,716
10,718
10,710
10,764
10,796
10,838
10,824

4,848
4,781
4,782
4,928
5,064
5,132
5,137
5,031
5,047
5,094
5,047
4,986

1,680
1,684
1,740
1,812
1,854
1,872
1,811
1,769
1,567
1,718
1,765
1,686

2012 1
2
3
4

24,585
24,825
25,210
25,653

23,732
23,783
24,265
24,758

4,034
4,060
4,018
4,027

18,631
3.5
18,599
4.2
18,870
3.7
19,103
3.5
Y-o-Y change (%)

17,184
17,225
17,421
17,679

10,769
10,807
10,899
10,957

4,868
4,877
4,997
5,095

1,547
1,542
1,525
1,627

2010
2011

1.5
1.4

1.4
1.7

5.0
1.6

1.2
2.1

-

3.1
2.5

7.4
5.7

-0.7
-1.5

-7.4
-3.9

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
10
11
12

0.1
1.6
2.2
1.5
1.5
1.7
1.0
1.7
0.7
1.6
1.9
1.4

1.4
2.1
2.0
1.6
1.5
1.9
1.4
2.0
1.1
2.1
2.0
1.9

5.7
6.7
5.1
2.9
2.5
2.9
1.0
-0.7
-1.2
-1.3
-2.1
-2.1

1.2
1.4
1.1
1.4
1.3
2.1
1.9
3.1
2.1
3.2
3.2
3.1

-

3.3
3.5
2.7
2.1
2.2
3.1
2.5
2.7
1.6
2.5
2.0
2.0

6.1
6.2
6.2
6.1
6.3
6.2
6.0
5.5
5.4
5.0
4.9
4.6

-0.3
-1.2
-3.9
-4.3
-3.0
-0.6
-1.5
-1.8
-1.2
0.1
-0.4
-0.3

-2.6
1.6
1.5
-1.3
-5.1
-3.4
-4.9
-0.3
-11.9
-5.0
-7.0
-6.7

2012 1
2
3
4

2.0
1.6
1.2
1.6

2.3
1.9
1.8
1.9

-2.8
-2.1
-2.5
-2.0

3.5
3.2
3.4
3.1

-

2.1
2.2
2.1
1.9

4.5
4.0
3.4
3.2

0.4
2.0
4.5
3.4

-7.9
-8.5
-12.3
-10.2

Source: Statistics Korea

62

June 2012

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)

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
11
12

2.7
2.8
2.9
3.0
3.0
3.2
3.3
3.3
3.3
3.2
3.3
3.3

2.9
3.1
3.4
3.4
3.5
3.5
3.6
3.6
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
4.2
4.2

3.7
3.9
3.7
3.7
3.7
3.7
3.8
3.6
3.5
3.5
3.4
3.4

4.3
4.4
4.1
4.1
4.0
3.9
4.0
3.7
3.6
3.6
3.5
3.5

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
1,847.51
1,825.74

2012 1
2
3
4
5

3.3
3.3
3.3
3.3
3.3

3.6
3.5
3.5
3.5
3.5

4.2
4.3
4.4
4.3
4.0

3.2
3.4
3.6
3.5
3.4

3.5
3.6
3.7
3.6
3.5

1,955.79
2,030.25
2,014.04
1,981.99
1,843.47

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

2010
2011

67,585.1
75,232.0

399,412.3
425,675.1

1,639,675.1
1,708,984.5

2,096,534.8
2,974,440.3

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
10
11
12

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
76,944.6
76,617.3
77,842.5

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
421,480.1
423,111.9
432,602.2

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
1,742,645.4
1,753,296.4
1,756,597.4

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
2,263,627.7
2,279,234.1
2,288,816.9

2012 1
2
3
4

81,635.4
81,655.3
79,068.0
80,641.8

439,352.9
437,193.9
440,075.4
437,445.3
Y-o-Y change (%)

1,757,058.7
1,762,988.4
1,773,172.9
1,777,114.7

2,292,213.5
2,302,065.8
2,341,626.9
2,349,723.2

2010
2011

9.5
11.3

11.8
6.6

8.7
4.2

8.2
9.4

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
10
11
12

13.0
13.3
11.2
13.9
8.8
12.8
10.6
12.4
10.9
10.1
10.3
8.9

12.6
11.5
11.6
9.6
7.4
5.4
3.8
5.4
5.1
4.1
2.0
1.6

6.5
5.0
4.3
3.9
3.7
3.0
3.2
4.0
4.2
4.4
4.4
4.4

6.6
5.2
4.7
4.5
4.4
4.0
4.6
5.5
5.7
6.1
6.2
6.2

2012 1
2
3
4

11.0
8.3
8.3
10.2

2.3
1.1
2.1
2.8

4.8
5.3
5.7
5.5

6.5
7.2
8.8
8.6

Source: The Bank of Korea

64

June 2012

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

/US$

/100¥

/Euro

Period
End-period

Average

End-period

Average

End-period

Average

2010
2011

1,138.9
1,153.3

1,156.3
1,108.1

1,397.1
1,485.2

1,320.6
1,391.3

1,513.6
1,494.1

1,532.9
1,541.4

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
11
12

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
1,150.3
1,153.3

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
1,132.3
1,147.5

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
1,475.7
1,485.2

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
1,460.0
1,473.4

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
1,532.9
1,494.1

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
1,536.6
1,511.0

2012 1
2
3
4
5

1,125.0
1,126.5
1,137.8
1,134.2
1,177.8

1,145.9
1,123.4
1,125.9
1,135.6
1,154.3

1,473.1
1,399.2
1,380.7
1,412.0
1,489.1

1,488.7
1,433.7
1,364.1
1,393.9
1,447.1

1,478.2
1,516.3
1,513.4
1,501.7
1,456.6

1,477.2
1,486.0
1,487.1
1,495.6
1,478.6

-2.5
1.3

-9.4
-4.2

-3.1
5.4

-9.6
-1.3

-13.6
0.6

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
11
12

-3.6
-2.6
-2.1
-3.9
-10.0
-10.9
-11.3
-9.9
3.3
-2.0
-0.6
1.3

-1.6
-3.4
-1.3
-2.7
-6.8
-10.8
-12.2
-9.0
-4.1
2.8
0.5
0.0

5.4
6.3
9.4
10.7
1.3
-2.1
-1.2
-0.7
12.7
4.8
7.4
6.3

8.7
5.4
9.6
9.2
5.4
0.7
-3.2
0.8
5.2
10.0
6.8
7.0

-6.2
-1.3
3.0
7.6
5.1
5.8
-2.9
2.7
2.9
-0.4
1.0
-1.3

-8.1
-3.8
1.8
4.5
6.2
5.0
-1.6
1.0
1.6
1.6
-0.3
-0.3

2012 1
2
3
4
5

1.0
-0.1
2.8
5.8
9.0

2.3
0.5
0.3
4.5
6.5

8.6
1.3
3.7
7.5
11.5

9.8
6.1
-0.9
6.8
8.5

-2.4
-2.1
-3.2
-5.6
-6.0

-1.2
-2.5
-5.4
-4.7
-4.7

2010
2011

Y-o-Y change (%)
10.6
6.3

Source: The Bank of Korea

Economic Bulletin

65

Editor-in-Chief
Park Chun-Sup (MOSF)
Editorial Board
Kim Young-Min (MOSF)
Shim Jae-Hak (KDI)
Lee Sung-Shin (KDI)
Coordinators
Choi Jae-Hoon (MOSF)
Cho Hyun-Joo (KDI)
Editors
Cho Eun-Hyung (MOSF)
David Friedman (MOSF)
Kim Dae-Hyun (MOSF)
Lee Ji-Youn (KDI)

Useful Economy-related Websites
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/eng
Statistics Korea
http://kostat.go.kr/portal/english

Sign up to vote on this title
UsefulNot useful