200906 by KOCIS

Vol. 31 | No. 6

Republic of Korea

Economic Bulletin The Green Book : Current Economic Trends Overview

1. Global economy

2. Private consumption

3. Facility investment

4. Construction investment

5. Exports and imports

6. Mining and manufacturing production

7. Service sector activity

8. Employment

9. Financial markets

9.1 9.2 9.3 9.4

Stock market Exchange rate Bond market Money supply & money market

10. Balance of payments

11. Prices and international commodity prices

11.1 Prices 11.2 International oil and commodity prices 12. Real estate market

12.1 Housing market 12.2 Land market 13. Composite indices of business cycle indicators

Policy Issues Government incentives to attract FDI in new growth engines

Detailed plans to develop new growth potential: Nurturing high value added services

Economic News Briefing

Statistical Appendices

The Green Book Current Economic Trends

Overview Despite stabilizing financial markets and improving month-on-month industrial production, the overall economy remains sluggish including domestic demand, exports and employment. In April, mining and manufacturing production decelerated a year-on-year fall with an 8.2 percent decline, as the indicator continued its month-on-month increase for the fourth consecutive month of 2.6 percent. Service output increased on both month-on-month and year-on-year bases, posting 2.7 percent and 1.6 percent respectively. Consumer goods sales in April declined 4.0 percent year-on-year due to a slump in automobile sales, while it registered a month-on-month increase of 0.5 percent helped by durable goods sales. Facilities investment fell 25.3 percent year-on-year affected by a cut in machinery and transportation equipment investments. On the other hand, construction completed rose 7.6 percent year-on-year, thanks to brisk civil engineering works in the public sector. Exports in May deepened its year-on-year loss to 28.3 percent from the previous month’s 19.6 percent hit by a drop in vessel exports, resulting in the trade surplus of US$5.15 billion. The total number of workers hired improved slightly year-on-year in May from the previous month’s loss of 195,000 to 188,000, lowering the unemployment rate from 4.0 percent to 3.8 percent. The job market, however, remained tight. Consumer prices rose 2.7 percent year-on-year in May affected by the appreciating won, decelerating inflation by 0.9 percentage points from the previous month. The two percent range inflation was for the first time since September 2007. Although the domestic financial market remained stable in May, external uncertainties existed surrounding international financial markets, a possibility of increasing bad loans among others, along with risks from North Korea. To sum up, despite some indicators showing signs of the global downturn easing and the domestic economy staying on an upward trend, these cannot guarantee economic turnaround, as the rebound is not robust enough to power the Korean economy, in line with uncertain global financial markets and a possible rise in oil prices. For a sustainable economic turnaround, the Korean government will decisively continue macroeconomic policies including supplementary budget spending for job creation and social security for the working class. The government will also boost efforts to enhance Korea’s competitiveness and upgrade the nation’s industrial structure by creating a more business and investment friendly environment and continuously working on corporate and financial sector restructuring. Economic Bulletin

1. Global economy Advanced economies, such as the US and Japan, were still muddling through recession but the pace of economic decline slowed. Industrial production, retail sales, and exports in the US, Japan and eurozone economies showed an easing in the rate of decline and some indicators turned positive.

The US economic growth in the first quarter of 2009 was revised upward to negative 5.7 percent (annualized q-o-q), while industrial production and retail sales fell at a slower rate, indicating the pace of economic deterioration moderated. The Federal Reserve revised its 2009 economic growth forecast downward to between negative 1.3 percent and negative 2 percent from the previous forecast of a 0.5 percent to 1.3 percent decline, and commented that current economic contraction started to ease. Consumer and business sentiment indices such as the Michigan Consumer Sentiment Index (MCSI), ISM Manufacturing Index, and Conference Board Consumer Confidence Index showed an upward trend. Conference Board Consumer Confidence Index (1985 = 100) 37.7 (Jan 2009)

25.0 (Feb)

26.0 (Mar)

39.2 (Apr)

54.9 (May)

Results of bank stress tests revealed on May 8 that 19 banks needed to raise a total of US$75 billion in capital, which contributed to easing uncertainties in the financial market. The Case-Shiller Home Price Index dropped in March, but new and existing home sales in April increased from the previous month. NAHB* Housing Market Index (base = 50) 8 (Jan 2009)

9 (Feb)

9 (Mar)

14 (Apr)

16 (May)

* NAHB stands for National Association of Home Builders

(Percentage change from previous period) 2008

2009

Annual

Feb

Mar

Apr

Real GDP1

1.1

0.9

2.8

-0.5

-6.3

-5.7

- Personal consumption expenditure

0.2

0.9

1.2

-3.8

-4.3

1.5

- Corporate fixed investment

1.6

2.4

2.5

-1.7

-21.7

-36.9

-20.8

-25.1

-13.3

-16.0

-22.8

-38.7

Industrial production

-1.8

0.1

-1.2

-2.3

-3.4

-5.2

-1.0

-1.7

-0.5

Retail sales

-0.2

-0.3

0.7

-1.3

-7.1

-1.4

0.4

-1.3

-0.4

-3,078

-338

-458

-624

-1,658

-2,121

-681

-699

-539

-37.6

-13.8

-7.5

-10.9

-16.1

-11.1

10.0

-3.0

0.3

3.9

4.1

4.4

5.3

1.6

-0.1

0.2

-0.4

-0.7

- Construction investment for housing

New non-farm payroll employment (q-o-q, thousand) New home sales Consumer prices (y-o-y, %) 1. Annualized rate (%)

June 2009

1-1

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

1-2

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

1-3

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

Economic Bulletin

China

China’s economy saw its exports decline at a faster rate, while indicators of production, consumption and investment stayed at the similar level to March. The Purchasing Managers’ Index (PMI) hovered over 50 since March, which indicates that the economy is now in its recovery stage. PMI (base = 50) 45.3 (Jan 2009)

49.0 (Feb)

52.4 (Mar)

53.5 (Apr)

53.1 (May) (Percentage change from same period in previous year)

2008

2007 Annual Annual

2009

Feb

Mar

Apr

Real GDP

13.0

9.0

10.6

10.1

9.0

6.8

6.1

Fixed asset investment (accumulated)

25.8

26.1

25.9

26.8

27.6

26.1

28.6

26.5

28.6

30.5

Retail sales

16.8

21.6

20.6

22.2

23.2

20.4

15.0

11.6

14.7

14.8

Industrial production

18.5

12.9

16.4

15.9

13.0

6.4

5.1

3.8

8.3

7.3

Exports

25.7

17.2

21.4

22.4

22.9

4.1

-19.7

-25.7

-17.1

-22.6

Consumer prices

4.8

5.9

8.0

7.8

5.3

2.5

-0.6

-1.6

-1.2

-1.5

Producer prices

3.1

6.9

8.4

9.7

2.5

-4.6

-4.5

-6.0

-6.6

1. The rate accumulated from January to February

Japan

Japan’s real GDP posted a quarter-on-quarter drop of 4.0 percent in the first quarter of 2009, a 15.2 percent decline in annualized terms, indicating a continuing economic slump. However, some indicators showed signs of improvement, with industrial production in April increasing. Japan’s Cabinet Office revised its economic assessment from “The economy is getting worse rapidly” to “While the economy is in a difficult situation, the tempo of worsening has become moderate.” 2007 Annual Annual

Real GDP Industrial and mining production

(Percentage change from previous period) 2009

2008 Q1

Feb

Mar

Apr

2.3

-0.7

0.8

-0.9

-0.6

-3.8

-4.0

2.8

-3.3

-0.7

-0.8

-1.3

-12.0

-22.2

-9.4

1.6

5.2

Retail sales (y-o-y, %)

-0.1

0.3

1.8

0.2

0.8

-1.5

-4.0

-5.7

-3.8

-2.9

Exports (y-o-y, %)

11.5

-3.4

6.0

1.8

3.2

-23.1

-46.9

-49.4

-45.5

-39.1

0.0

1.4

1.0

1.4

2.2

1.0

-0.1

-0.3

-0.1

Consumer prices (y-o-y, %)

Eurozone

Eurozone’s economy shrank 2.5 percent quarter-on-quarter in the first quarter of this year, hitting an all-time low since the data was first compiled in 1995. However, exports increased for the second straight month, and industrial production showed a slight slowing in the rate of decline. The ECB cut its benchmark interest rate by 0.25 percentage points to 1.0 percent on May 7. (Percentage change from previous period) 2007

2008

Annual Annual

2009

Feb

Mar

Apr

Real GDP

2.7

0.8

0.6

-0.2

-1.6

-2.5

Industrial production

3.5

-1.7

0.1

-1.6

-2.0

-5.1

-7.8

-2.5

-1.6

Retail sales

0.9

-1.3

-0.3

-0.9

0.1

-0.8

-1.0

-0.4

-0.3

Exports (y-o-y, %)

8.6

3.7

8.0

7.3

-0.2

-6.7

-15.1

1.6

1.4

Consumer prices (y-o-y, %)

2.1

3.3

3.6

3.8

2.3

1.0

1.2

0.6

June 2009

1-4

Chinaâ&#x20AC;&#x2122;s GDP and fixed asset investment Source: National Bureau of Statistics of China

1-5

Japanâ&#x20AC;&#x2122;s GDP growth Source: Cabinet Office & Ministry of Economy, Trade and Industry, Japan

1-6

Eurozone GDP growth and industrial production Source: Eurostat

Economic Bulletin

2. Private consumption Private consumption (advance estimates of GDP) in the first quarter of 2009 posted a yearon-year decline of 4.4 percent and a quarter-on-quarter increase of 0.4 percent (seasonally adjusted). (Percentage change from same period in previous year) 2007

Private consumption

(Seasonally adjusted)

20081

20091

Annual

5.1

5.4

4.7

0.9

4.0

2.3

1.4

-3.7

-4.4

0.9

0.4

1.1

-0.2

0.0

-4.6

0.4

1. Preliminary 2. National accounts 3. Percentage change from previous period

Consumer goods sales in April fell at a slower rate year-on-year for the second consecutive month, while on a month-on-month basis, the indicator rose from a downward trend in a month. Weak sales of durable and non-durable goods contributed to a 4.0 percent decline in year-on-year consumer goods sales. Month-on-month consumer goods sales posted a 0.5 percent increase as the sales increase in durable and non-durable goods offset the sales decline in semi-durable goods. (Percentage change from same period in previous year) 2008

2009

Annual

Consumer goods sales

1.0

4.4

2.9

1.4

-4.2

-4.9

-6.1

-5.2

-4.0

(Seasonally adjusted)

1.1

-1.3

-0.1

-3.5

0.4

5.2

-1.8

0.5

1.9

9.5

8.7

0.0

-9.9

-13.6

-3.7

-15.1

-12.3

- Durable goods

Feb

Mar1

Apr1

路Automobiles

-2.0

9.6

7.1

-4.9

-19.5

-21.3

-9.1

-22.4

-17.7

- Semi-durable goods4

-2.4

3.8

-2.1

0.6

-9.9

-0.9

-0.5

-0.7

0.7

- Non-durable goods

0.7

1.9

0.3

1.2

-0.4

-1.4

-8.4

-0.9

-1.0

1. Preliminary 2. Percentage change from previous period 3. Durable goods: Automobiles, electronic appliances, furniture, telecommunications devices, etc. 4. Semi-durable goods: Clothing, footwear, etc. 5. Non-durable good: Food, medicine, cosmetics, fuel, tobaccos, etc.

Sales at department stores slightly rose for two months in a row, whereas those at large discounters and specialized retailers fell at a slower rate. (Percentage change from same period in previous year) 2008 Annual

- Department stores

0.5

4.3

- Large discounters

2.2

7.6

-1.7

2.0

- Specialized retailers2

3.7

0.2

-5.0

1.4

-5.2

0.4

0.9

3.1

-0.2

-1.2

-5.0

-19.2

-5.2

-4.2

0.7

-1.0

-8.1

-6.9

-3.4

-7.2

-5.4

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

June 2009

2009 Q1

Feb

Mar1

Apr1

2-1

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

2-2

Consumer goods sales Source: Korea National Statistical Office (industrial activity trend)

2-3

Consumer goods sales by type Source: Korea National Statistical Office (industrial activity trend)

Economic Bulletin

Consumer goods sales in May are expected to increase from the previous month, given improving consumer sentiment and advance estimates. The growth rate of domestic card spending accelerated by 1.7 percentage points from a month earlier to 8.7 percent in May, after a 0.8 percentage point increase month-on-month in April. Sales at large discounters and department stores increased for the third straight month, while those of gasoline reversed and rose sharply in a month. In May, domestic sales of Korean cars soared for the first time in ten months helped by tax cuts implemented from May 1 to boost sales of new cars and reinvigorate the car industry. Value of credit card use (y-o-y, %) 9.1 (Dec 2008)

3.9 (Jan 2009)

6.7 (Feb)

6.2 (Mar)

7.0 (Apr)

8.7 (May)

Department store sales (y-o-y, %) -4.5 (Dec 2008)

10.4 (Jan 2009)

-0.3 (Feb)

1.9 (Mar)

2.8 (Apr)

5.4 (May)

Discount store sales (y-o-y, %) -5.8 (Dec 2008)

16.8 (Jan 2009)

-20.3 (Feb)

0.4 (Mar)

0.3 (Apr)

1.7 (May)

Domestic sales of Korean automobiles (y-o-y, %) -23.8 (Dec 2008)

-24.1 (Jan 2009)

-4.7 (Feb)

-15.4 (Mar)

-14.9 (Apr)

15.3 (May)

Domestic sales of gasoline (y-o-y, %) 20.9 (Dec 2008)

4.2 (Jan 2009)

3.9 (Feb)

3.6 (Mar)

-0.3 (Apr)

10.1 (May)

Source: Ministry of Knowledge Economy The Credit Finance Association Korea Automobile Manufacturers Association Ministry of Strategy and Finance (for May data)

Financial market stability including a stronger won against the dollar and the bullish stock market contributed to improving consumer sentiment despite depressed job markets. In these circumstances, consumer spending is likely to improve from the previous month, affected by increased sales of durable goods, new vehicle sales in particular. The won/dollar exchange rate (monthly average) 1,346 (Jan 2009)

1,430 (Feb)

1,462 (Mar)

1,342 (Apr)

1,259 (May)

1,140 (Mar)

1,322 (Apr)

1,401 (May)

KOSPI (monthly average) 1,156 (Jan 2009)

1,140 (Feb)

Consumer sentiment index (CSI) 84 (Nov 2008)

81 (Dec)

84 (Jan 2009)

85 (Feb)

Employment (y-o-y, thousand) -103 (Jan 2009)

June 2009

-142 (Feb)

-195 (Mar)

-188 (Apr)

84 (Mar)

98 (Apr)

105 (May)

2-4

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

2-5

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

2-6

Consumer sentiment index Source: The Bank of Korea

Economic Bulletin

3. Facility investment Facility investment (advance estimates of GDP) in the first quarter of 2009 saw a year-on-year decrease of 22.1 percent and a 9.6 percent loss from the previous quarter. (Percentage change from same period in previous year) 2007 Annual

20081

Annual

9.3

4.0

8.0

-2.0

-3.0

3.8

- Machinery

9.2

2.5

8.5

-2.7

- Transportation equipment

9.6

10.1

5.8

0.4

Facility investment

(Seasonally adjusted)3

20091

1.5

1.1

4.3

-14.0

-22.1

-0.4

0.4

0.2

-14.2

-9.6

-1.2

-0.1

6.5

-15.3

12.2

5.1

-3.6

-9.9

1. Preliminary 2. National accounts 3. Percentage change from previous period

Facility investment in April declined 25.3 percent year-on-year and 2.1 percent month-onmonth, as investments in machinery such as semiconductor equipment and transportation equipment fell. The business survey index (BSI) in facility investment rose in May for four consecutive months. Facility investment in May, however, is unlikely to turn around, given the fact that the leading indicators of machinery orders and imports are not improving. (Percentage change from same period in previous year) 2007

2008

20091

Annual

Q11

Jan

Feb

Mar1

Apr1

9.2

-3.2

-16.2

-23.0

-25.9

-19.5

-23.3

-25.3

-13.5

-11.7

-5.4

-0.7

-1.1

-2.1

8.3

-4.0

-17.2

-27.6

-28.9

-26.2

-27.6

-29.1

13.2

0.6

-11.3

2.8

-8.9

17.8

1.1

-4.4

21.1

-5.5

-39.5

-36.0

-46.9

-28.8

-30.2

-25.7

- Public

-11.2

4.9

-3.5

150.5

56.1

661.2

16.7

-2.5

- Private

24.2

-6.2

-43.9

-43.1

-51.1

-44.6

-32.5

-26.5

21.1

6.4

-11.5

-27.9

-33.5

-15.1

-33.3

-32.2

1.7

-2.2

-15.6

-18.9

-29.6

-13.1

-13.5

-11.0

Facility investment (estimated) (Seasonally adjusted)

- Machinery - Transportation equipment Domestic machinery orders

Machinery imports Facility investment adjustment pressure3

1. Preliminary 2. Percentage change from previous period 3. Production growth rate minus production capacity growth rate in the manufacturing sector (%p)

Both the Bank of Koreaâ&#x20AC;&#x2122;s BSI for facility investment projections and results in the manufacturing sector increased month-on-month for two months in a row.

2009

Business survey indices (base=100) Feb

Mar

Apr

May

Jun

Manufacturing facility investment results

Manufacturing facility investment projections

Source: The Bank of Korea

June 2009

3-1

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

3-2

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

3-3

Machinery imports Source: Korea International Trade Association (KITA)

Economic Bulletin

4. Construction investment Construction investment (advance estimates of GDP) in the first quarter of 2009 rose 1.7 percent year-on-year, or 5.3 percent quarter-on-quarter. (Percentage change from same period in previous year) 2007

Construction investment (Seasonally adjusted)

- Civil engineering works

20091

Annual

1.4

-0.2

0.4

-2.1

-1.9

-0.3

0.2

-5.6

1.7

-0.4

2.9

-2.5

-0.3

0.1

-3.0

5.3

-0.0

-0.4

0.7

-4.3

-1.2

-0.1

-14.3

3.8

0.2

-0.1

1.3

-3.2

-0.7

0.7

5.7

- Building construction

20081

1. Preliminary 2. National accounts 3. Percentage change from previous period

In April, construction completed (current value) rose 7.6 percent year-on-year due to a healthy increase in civil engineering works. Construction completed in the public sector soared 35.1 percent, while that in the private sector fell 3.1 percent. (Percentage change from same period in previous year) 2007

2008

20091

Annual

Construction completed

6.6

4.7

10.6

-2.2

- Building construction

6.2

1.7

9.0

-10.6

- Civil engineering works

6.9

10.6

14.3

13.6

24.8

Q11

Jan

Feb

4.5

-0.4

12.0

3.0

7.6

-6.0

-13.0

-0.3

-4.5

-2.4

23.1

36.1

17.3

27.6

Mar1

Apr1

1. Preliminary

Construction investment in May is expected to improve from April, as business survey index for construction increased steadily and the leading indicator of construction orders decreased at a slower pace. Civil engineering orders surged 331.4 percent as a result of government expansion of SOC investments, while building construction orders posted a year-on-year plunge of 71.0 percent. Business survey index for construction (base=100) 37.3 (Dec 2008)

48.9 (Jan 2009)

50 (Feb)

72.3 (Mar)

80 (Apr)

Source: The Construction and Economy Research Institute of Korea

(Percentage change from same period in previous year) 2007

2008

20091

Annual

Construction orders

23.6

-9.0

-22.7

-6.5

-16.5

- Public

40.3

9.1

2.9

5.0

22.0

33.8

31.6

9.7

221.8

- Private

16.5

-15.8

-32.3

-15.3

-38.4

-39.7

-46.5

-31.1

-78.8

Building permit area

13.3

-20.1

-13.5

-41.9

-31.6

-48.4

-34.8

-10.8

1. Preliminary

June 2009

Jan

Feb

Mar1

Apr1

-15.0

-20.7

-14.7

-8.0

4-1

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

4-2

Construction completed and housing construction Source: Korea National Statistical Office (construction completed) Kookmin Bank (housing construction)

4-3

Leading indicators of construction investment Source: Korea National Statistical Office (construction orders) Ministry of Land, Transport and Maritime Affairs (building construction permit area)

Economic Bulletin

5. Exports and imports Exports in May fell 28.3 percent year-on-year to US$28.23 billion. Average daily exports in working-day-adjusted terms fell 26.7 percent year-on-year, landing at US$1.28 billion. The Ministry of Knowledge Economy estimated that by products between May 1 and 20, vessels (down 16.7%) fell from an upward trend, along with a fall in other major products such as wireless communication devices (down 12.7%), semiconductors (down 24.4%), automobiles (down 53.3%), and petroleum products (down 25.0%). By regional category, according to the estimation by the Ministry of Knowledge Economy for the same period, exports to most regions other than Oceania declined, including China (down 22.8%), the US (down 20.0%), Japan (down 36.3%), and the EU (down 20.0%). (US$ billion) 2008

Exports (y-o-y, %)

2009

Annual

May

Jan-May

Jan

Feb

Mar

Apr

May

Jan-May

422.01

39.38

176.68

21.24

25.41

28.07

30.42

28.23

133.33

13.6

26.9

21.3

-34.2

-18.5

-22.0

-19.6

-28.3

-24.5

1.53

1.75

1.57

0.99

1.15

1.17

1.27

1.28

1.17

435.27

38.70

183.02

24.88

22.53

23.78

24.63

23.08

118.86

(y-o-y, %)

22.0

29.6

29.1

-31.5

-31.0

-35.9

-35.6

-40.4

-35.1

Average daily imports

1.58

1.72

1.63

1.16

1.02

0.99

1.03

1.05

-13.27

0.68

-6.34

-3.64

2.88

4.29

5.79

5.15

14.47

Average daily exports Imports

Trade balance

Imports in May fell 40.4 percent year-on-year to US$23.08 billion. In working-day-adjusted terms, average daily imports fell 39.0 percent year-on-year, landing at US$1.05 billion. Falling prices of raw materials and flagging domestic demand led to plunging imports of raw materials, capital goods, as well as consumer goods. Raw materials (y-o-y, %) -30.2 (Jan 2009)

-35.0 (Feb)

-40.1 (Mar)

-41.2 (Apr)

-50.9 (May 1-20)

-30.3 (Mar)

-26.8 (Apr)

-27.7 (May 1-20)

-27.1 (Mar)

-30.7 (Apr)

-14.8 (May 1-20)

Capital goods (y-o-y, %) -33.6 (Jan 2009)

-23.0 (Feb)

Consumer goods (y-o-y, %) -33.2 (Jan 2009)

-27.9 (Feb)

Korea posted a monthly trade surplus of US$5.15 billion in May despite a decrease in exports as imports fell at a faster pace, which contributed to a trade surplus in the fourth consecutive month.

June 2009

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

6. Mining and manufacturing production In April, production in mining and manufacturing fell at a slower pace year-on-year from the previous month’s 10.5 percent decline to 8.2 percent. On a month-on-month basis, however, the production rose 2.6 percent, posting an increase for four straight months. By business category, automobiles (down 22.6%), primary metals (down 20.3%), and machinery devices (down 23.2%) contributed to a year-on-year decrease in output. Contribution to year-on-year output growth (%p) Automobiles (-2.49), semiconductors and parts (-0.43), other transportation devices (-0.28)

Shipments slowed its fall year-on-year, down 8 percent from an 11.1 percent drop a month earlier, with a month-on-month increase of 3.1 percent. The level of inventory slid faster from a 5.7 percent decline to a 9.7 percent drop. By business category, shipments of automobiles fell 22.7 percent from a year earlier, machinery devices dropped 23.2 percent, and primary metals declined 19.8 percent. Inventory fell 2.8 percent month-on-month or 9.7 percent year-on-year, while the ratio of inventory to shipments fell 6.2 points month-on-month, showing signs of continuing inventory adjustment. The average operation ratio for manufacturing rose 2.4 percentage points from March to 71.7 percent. (Percentage change from same period in previous year) 2007 Annual Production (q-o-q, m-o-m)

Mining and manufacturing activity2

Annual

2009

Feb

Mar1

Apr1

-1.9

-11.9

-2.7

7.1

4.9

2.6

(y-o-y)

6.9

3.0

5.6

-11.3

-15.5

-10.0

-10.5

-8.2

- Manufacturing

7.1

3.0

5.6

-12.1

-16.4

-10.4

-11.1

-8.8

·Heavy chemical industry

8.3

4.1

6.8

-12.8

-17.0

-11.2

-11.5

-8.7

·Light industry

2.0

-2.2

0.0

-8.8

-13.6

-6.5

-9.8

-8.9

Shipment

7.2

2.4

5.3

-10.1

-14.7

-9.3

-11.1

-8.0

- Domestic demand

5.1

-0.7

1.7

-11.0

-16.3

-10.6

-12.9

-9.5

10.3

7.1

10.3

-8.8

-12.4

-7.6

-8.3

-5.8

- Exports Inventory

Manufacturing Average operation ratio (%) activity Production capacity 1. Preliminary

2008

5.6

7.3

17.3

7.3

-5.7

-5.1

-5.7

-9.7

80.1

77.2

78.3

69.3

65.9

66.9

69.3

71.7

5.4

5.2

5.3

3.5

2.5

2.7

2.4

2.2

2. Including mining, manufacturing, electricity and gas industry

3. End-period

Mining and manufacturing production could increase in May affected by quick inventory adjustment, but it may also be affected by flagging exports, which fell 28.3 percent after decreasing 19.6 percent in the previous month, due to temporary factors including reduced working days.

June 2009

6-1

Industrial production Source: Korea National Statistical Office (industrial activity trend)

6-2

Average manufacturing operation ratio Source: Korea National Statistical Office (industrial activity trend)

6-3

Inventory Source: Korea National Statistical Office (industrial activity trend)

Economic Bulletin

7. Service sector activity Service activity in April made an upturn in one month to increase 1.6 percent year-on-year as well as 2.7 percent month-on-month. By business category, educational services (up 13.3%), financial & insurance services (up 11.9%), and healthcare & social welfare services (up 8.0%) stayed on an upward track. Meanwhile, transportation services (down 10.9%) and business facility management & business support services (down 8.1%) remained sluggish. (Percentage change from same period in previous year) Weight

2008

2007 Annual Annual

2009

Feb

Mar1

Apr1

Service activity index

100

6.8

3.4

6.7

4.8

3.2

-0.4

0.3

-0.7

1.6

- Wholesale & retail

22.0

5.8

1.4

4.0

3.1

3.6

-4.6

-4.0

-4.1

-5.2

-4.1

- Transportation services

9.0

6.6

4.3

8.1

8.2

4.3

-3.2

-10.8

-11.4

-10.8

-10.9

- Hotels & restaurants

7.8

2.2

0.7

3.6

0.6

1.7

-3.0

-2.3

-0.3

-2.3

0.5

- Information & communication services

8.4

3.8

3.5

6.0

5.5

3.4

-0.2

-1.9

-1.0

-1.2

-0.1

15.3

17.1

9.7

16.1

9.8

9.6

4.5

6.8

8.8

7.5

11.9

- Real estate & renting

6.3

3.1

-2.1

5.7

2.7

-8.4

-7.5

-3.1

-1.0

-7.7

-2.4

- Professional, scientific & technical services

4.8

5.4

2.0

4.2

1.5

1.8

0.9

-2.0

-1.7

-2.3

1.3

- Financial & insurance services

- Business services

2.9

9.0

4.6

8.0

7.7

3.2

0.1

-4.8

-4.0

-6.3

-8.1

10.8

2.2

1.8

3.4

1.9

-0.5

2.3

3.7

2.1

6.5

13.3

- Healthcare & social welfare services

6.0

9.4

6.3

6.1

6.8

6.1

6.5

8.5

9.3

9.6

8.0

- Entertainment, cultural & sports services

2.9

6.3

2.2

2.5

0.4

1.7

4.3

1.5

6.6

-0.2

2.7

- Membership organizations

3.8

0.1

1.9

1.0

-1.4

-1.0

-3.9

-3.3

-4.2

-5.7

- Sewerage & waste management

0.4

4.9

5.8

8.9

6.9

3.9

4.0

0.1

2.2

4.4

2.1

- Educational services

1. Preliminary

Although the business survey index (BSI) for the non-manufacturing industry rose and credit card spending and indicators related to wholesale and retail sales (advanced) improved, service output in May is expected to increase marginally considering sluggishness in transportation and real estate services. Business survey index (BSI, base=100) Non-manufacturing result: 59 (Feb 2009) Non-manufacturing prospect: 59 (Feb 2009)

June 2009

61 (Mar) 61 (Mar)

71 (Apr) 63 (Apr)

74 (May) 74 (May)

76 (Jun)

l es

tate

ncia

& re

ranc

e se

bus iness f ines acil s su ity m ppo ana rt se gem rvic ent es & Edu cati ona l se rvic es Hea l t h serv care ices & s ocia l we lfar e Ente serv rtainm ices ent , cu ltur al & spo Me rts othe mbersh r pe ip o rson rgan al s izati ervi ons Sew ces , re pair reco erage, & very was & re te m med ana iatio gem n ac ent, tivit mate ies rials

atio

rvic

unic

omm

rant

tail

insu

stau

tion

& re

ion

& re

ntin g Prof e s tech sion nica al, s l se cien rvic tifi c& es Bus

Rea

Fina

ale

rtat

rma

els

Info

Hot

spo

oles

Tran

7-3

l ind

7-2

Tota

7-1 Service industry

Source: Korea National Statistical Office (service industry activity trend)

Wholesale and retail sales

Source: Korea National Statistical Office (service industry activity trend)

Apr 2009 service industry by business

Source: Korea National Statistical Office (service industry activity trend)

Economic Bulletin

8. Employment The number of workers on payroll in April decreased by 188,000 year-on-year, a slower pace of decline compared to the previous month’s 195,000. Employment in the manufacturing sector stayed on a downward track by declining 155,000, mainly due to lackluster domestic demand and falling exports. Hiring in the construction sector continued to fall with a 128,000 decrease as increased orders of civil engineering works in the public sector were offset by weak construction in the private sector. Employment in the service sector slightly expanded growth to 95,000, on the back of the government’s policy measure to create jobs. (Change from same period in previous year, thousand) 2008

2009

Annual

Apr

Feb

Mar

Apr

Employment growth

145

191

209

173

141

-146

-142

-195

-188

- Manufacturing

-52

-24

-18

-34

-52

-103

-163

-176

-186

-155

- Construction

-37

-29

-22

-46

-40

-41

-43

-17

-71

-128

- Services

263

284

307

300

262

187

- Agriculture, forestry and fishery

-37

-46

-63

-54

-38

By status of workers, non-wage workers including self-employed workers plunged by 282,000 from a year earlier. Meanwhile, wage workers rose by 95,000 led by an increase of 333,000 in regular workers although temporary or daily workers shrank significantly by 238,000. (Change from same period in previous year, thousand) 2008

2009 Q1

Feb

Mar

Apr

-146

-142

-195

-188

208

137

117

448

347

316

318

390

276

333

Annual

Apr

Employment growth

145

191

209

173

141

- Wage workers

236

294

312

289

·Regular workers

386

443

435

-150

-148

-123

-159

-140

-179

-244

-273

-194

-238

- Non-wage workers

-92

-103

-102

-115

-66

-83

-220

-259

-277

-282

·Self-employed workers

-79

-42

-79

-67

-76

-95

-197

-256

-222

-269

·Temporary or daily workers

The employment rate stood at 58.8 percent, down 1.2 percentage points compared to the same month of the previous year. The unemployment rate rose 0.6 percentage points yearon-year to 3.8 percent, while that of youths aged 15 to 29 was up 0.5 percentage points from a year earlier to 8.0 percent. (Change from same period in previous year, thousand) 2008

Unemployment rate (%) Employment rate (%)

June 2009

2009

Annual

Apr

Feb

Mar

Apr

3.2

3.4

3.1

3.8

3.9

4.0

3.8

59.5

60.0

58.5

60.3

59.9

59.4

57.4

57.0

57.9

58.8

8-1

Number of employed and employment growth Source: Korea National Statistical Office (employment trend)

8-2

Share of employed by industry Source: Korea National Statistical Office (employment trend)

8-3

Unemployment rate and number of unemployed Source: Korea National Statistical Office (employment trend)

Economic Bulletin

9. Financial markets 9.1 Stock market The Korean stock market in May hit the highest record this year as expectations over economic recovery were buoyed by improved domestic economic indicators and optimistic stress test results on US major banks. Toward the end of the month, however, the stock market underwent a short-term adjustment period as geopolitical risks heightened due to North Koreaâ&#x20AC;&#x2122;s nuclear test. KOSPI (p) 1,397.92 (May 4)

1,435.70 (May 20)

1,400.90 (May 25)

1,395.89 (May 29)

Foreign investors continued their massive net-buying of Korean shares for two consecutive months. Net buying of Korean shares by foreign investors in the KOSPI market (trillion won) -2.3 (Feb 2009)

0.7 (Mar)

2.6 (Apr)

3.0 (May) (End-period, point, trillion won)

KOSPI

Stock price index

KOSDAQ

2008

May 2009

Change1

2008

May 2009

Change1

1,124.4

1,395.8

271.4 (+24.1%)

332.0

528.8

196.8 (+59.3%)

576.9

725.3

148.4 (+25.7%)

46.1

78.9

32.8 (+71.1%)

5.1

7.5

2.4 (+47.1%)

1.2

3.1

1.9 (+158.3%)

Market capitalization Average daily trade value 1. Change from the end of previous year

9.2 Exchange rate The won/dollar exchange rate fluctuated around the 1,230 to 1,270 won range boosted by surpluses in the current and trade accounts and continued net buying of Korean shares by foreign investors. The exchange rate was down 27 won from the end of previous month to wrap up the month at 1,255 won, after posting a monthly high of 1,277.0 won on May 6 and the lowest 1,237.9 on May 11. Current account balance (US$ billion) -1.64 (Jan 2009)

3.56 (Feb)

6.65 (Mar)

4.28 (Apr)

The won/yen exchange rate edged down to the 1,300 won range against 100 yen amid the wonâ&#x20AC;&#x2122;s appreciation. (End-period) 2006

2007

2008

Dec

Apr

2009 May

Change1

Won/Dollar

929.8

936.1

1,259.5

1,282.0

1,255.0

0.4

Won/100Yen

783.4

828.6

1,396.8

1,317.2

1,300.1

7.4

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

June 2009

9-1

Stock prices

9-2

Foreign exchange rate (month-end)

9-3

Recent foreign exchange rate

Economic Bulletin

9.3 Bond market Treasury bond yields rose due to higher expectations over an economic rebound and foreign investors’ net-selling of KTB (Korea Treasury Bond) futures. However, short-term interest rates such as the yields on CDs as well as long-term interest rates including those on corporate bonds (3 years) continued the downward trend led by blue-chip bonds. (End-period) 2005

2006

2007

2008

Dec

Mar

Apr

2009 May

Change1

Call rate (1 day)

3.76

4.60

5.02

3.02

1.72

1.85

1.96

-106

CD (91 days)

4.09

4.86

5.82

3.93

2.43

2.41

-152

Treasury bonds (3 yrs)

5.08

4.92

5.74

3.41

3.94

3.59

3.83

Corporate bonds (3 yrs)

5.52

5.29

6.77

7.72

6.13

5.29

4.98

-274

Treasury bonds (5 yrs)

5.36

5.00

5.78

3.77

4.69

4.17

4.67

1. Basis point changes in May 2009 from end December 2008

9.4 Money supply & money market The year-on-year M2 (monthly average) growth in March decelerated to 11.1 percent from a year earlier. Despite a considerable current account surplus, the growth continued to slow down with a decelerated increase in household and corporate loans. (Percentage change from same period in previous year, average) 2006

2007

Annual

Nov

Dec

Jan

Feb

Mar

Mar1

9.1

8.1

4.1

5.5

9.0

11.1

15.2

381.4

8.3

11.2

14.3

14.0

13.1

12.0

11.4

11.1

1,470.4

Lf3

7.9

10.2

11.9

11.4

10.4

9.2

8.8

8.44

1,879.14

2008

2009

1. Balance at end March 2009, trillion won 2. Excluding corporate MMFs and individual MMFs while including CMAs 3. Liquidity aggregates of financial institutions (mostly identical with M3) 4. Preliminary

In April, deposits of banks and asset management companies (AMC) turned to increase. Bank deposits expanded fueled by an inflow of financial institutions’ short-term idle money, despite money withdrawal for VAT payments. Asset management company (AMC) deposits shifted to an increase as capital influxes into money market funds (MMFs) turned to an increase while banks’ idle money flowed mainly into bond funds. (Monthly change, end-period, trillion won) 2007 Annual

2008

2009

Apr

Annual

Apr

Jan

Feb

Mar

Apr

Apr1

Bank deposits

51.0

2.0

95.5

22.8

-5.5

20.6

-5.1

4.7

921.1

AMC deposits

61.8

-4.8

63.0

10.2

17.7

11.4

-3.0

2.2

387.8

1. Balance at end April 2009, trillion won

June 2009

9-4

Interest rates Source: The Bank of Korea

9-5

Total money supply Source: The Bank of Korea

9-6

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

Economic Bulletin

10. Balance of payments Korea in April showed a current account surplus of US$4.28 billion as the goods account registered a huge surplus, despite deficits in the service and income accounts. The goods account posted a surplus of US$6.17 billion as imports declined more sharply than exports. The service account deficit expanded to US$1.11 billion as the travel account turned to negative territory for the first time in three months with a decrease in the transportation account surplus. The income account recorded a US$860 million deficit due to seasonal factors such as overseas dividend payments by Korean companies whose fiscal year ends in December. The current transfer account surplus narrowed to record US$80 million as Korean residents overseas remitted less money to their home country while overseas remittance by locals increased, amid the wonâ&#x20AC;&#x2122;s appreciation. (US$ billion) 2008

2009

Annual

Jan

Feb

Mar

Apr

Jan-Apr

Current account

-6.41

-5.21

-0.13

-8.58

7.52

-1.64

3.56

6.65

4.28

12.86

- Goods balance

5.99

-1.22

5.72

-3.48

4.97

-1.74

3.11

6.98

6.17

14.52

-16.73

-5.07

-4.27

-5.69

-1.70

-0.71

-0.53

-0.65

-1.11

-2.99

- Service balance - Income balance

5.11

1.69

-0.65

1.36

2.71

0.56

0.48

-0.22

-0.86

-0.02

- Current transfers

-0.77

-0.61

-0.94

-0.77

1.55

0.25

0.50

0.53

0.08

1.36

The capital and financial account balance shifted to a net inflow of 2.54 billion in April after two consecutive months of net outflows. Capital & financial account balance (US$ billion) -0.38 (Apr 2008)

-4.83 (Dec)

4.86 (Jan 2009)

-3.32 (Feb)

-2.71 (Mar)

2.54 (Apr)

The direct investment account recorded a surplus of US$80 million as foreign direct investment (FDI) into Korea turned to a net inflow. The portfolio investment account showed a net inflow of US$7.13 billion as residents raised funds through a large amount of offshore bond issues while foreign investments in Korean stocks increased. The other investment account registered a net outflow of US$4.15 billion since non-resident domestic currency deposits decreased due to the reduction of the dollar funds under the reciprocal currency swap arrangement with the Federal Reserve, while there was an increase in financial institutionsâ&#x20AC;&#x2122; temporary overseas deposit assets. The current account is likely to record a surplus of US$4.0 billion or more in May as the trade balance posted a huge surplus of US$5.15 billion.

June 2009

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

11. Prices and international commodity prices 11.1 Prices Consumer prices rose by 2.7 percent year-on-year in May, slowing growth for three consecutive months. On a month-on-month basis, prices remained flat. The overall price index was stable as agricultural, livestock and fishery products as well as oil products showed month-on-month price declines. Prices of agricultural, livestock and fishery products went down 1.2 percent month-on-month, as a price surge due to a supplyside shock such as decreases in cultivated land area and spring droughts has been diluted by a new harvest and an outbreak of H1N1 influenza. Prices of industrial products went down 1.9 percent month-on-month due to a LPG price cut by 10 percent and the wonâ&#x20AC;&#x2122;s appreciation. Prices of agricultural, livestock & fishery products in May 2009 (m-o-m, %) Cabbage (42.3), ginger (18.0), Chinese cabbage (22.4), radish (16.7), green pepper (-27.7), pumpkin (-18.1), onion (-15.1), pork (-5.9)

Prices of oil products in May 2009 (m-o-m, %) Gasoline (-0.5), diesel (-0.8), kerosene (-0.9), LPG for automobiles (-10.6), LPG for kitchen use (-9.0)

Despite some local governmentsâ&#x20AC;&#x2122; decision to increase taxi fares, public utility charges fell 0.1 percent month-on-month as heating costs decreased 8.2 percent. Personal service charges have increased compared to the previous month as expenses for eating-out were pushed up by higher prices of agricultural, livestock and fishery products. Other service charges, however, remained stable amid a sluggish economy.

Consumer price inflation in major sectors Total

Agricultural, livestock & fishery products

Industrial products

Oil products

Housing rents

Public utility

Personal services

0.0

-1.2

0.2

-1.9

0.2

-0.1

0.1

Contribution (%p)

0.00

-0.11

0.05

-0.11

0.02

-0.01

0.03

Year-on-Year (%)

2.7

10.8

1.4

-17.4

1.7

1.6

2.9

Contribution (%p)

2.73

0.88

0.45

-1.17

0.16

0.25

1.00

Month-on-Month (%)

Core consumer prices, which exclude the prices of oil and agricultural products, rose by 3.9 percent year-on-year.

Consumer price inflation 2008

2009

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Month-on-Month (%)

0.8

0.6

0.7

-0.2

0.1

-0.1

-0.3

0.0

0.1

0.7

0.3

0.0

Year-on-Year (%)

4.9

5.5

5.9

5.6

5.1

4.8

4.5

4.1

3.7

4.1

3.9

3.6

2.7

Core consumer prices (y-o-y)

3.9

4.3

4.6

4.7

5.1

5.2

5.3

5.6

5.2

4.5

4.2

3.9

(m-o-m)

0.5

0.2

0.5

0.2

0.3

0.5

0.2

0.4

0.2

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

5.9

7.0

7.1

6.6

5.5

4.8

4.0

3.0

2.8

3.3

3.1

3.0

1.8

June 2009

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

11-2 Consumer price inflation Source: Korea National Statistical Office (consumer price trend)

11-3 Contribution to consumer price inflation Source: Korea National Statistical Office (consumer price trend)

Economic Bulletin

11.2. International oil and commodity prices International oil prices in May rose with OPECâ&#x20AC;&#x2122;s continuous commitment to cut production, prospects for an economic recovery followed by improved US economic data and increased strategic oil stockpile in China. OPEC members have actively reduced output and met above 80 percent of the target output cut, well beyond the general achieving rate at around 60 percent, after their decision in November 2008 to slash the output to 25.79 million barrels/day from 29.05 million barrels/day. (US$/barrel, period average) 2006

2007

2008

2009

Annual

Nov

Dec

Jan

Feb

Mar

Apr

May

Dubai crude

61.6

68.4

94.3

49.9

40.5

44.1

43.1

45.6

50.0

57.9

Brent crude

65.1

72.8

97.5

52.7

40.4

43.6

43.2

46.5

50.4

57.5

WTI crude

66.0

72.3

99.9

57.3

41.6

41.8

39.2

48.0

49.8

59.1

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

Despite rising international prices of oil and oil products, domestic prices of oil products inched down affected by the wonâ&#x20AC;&#x2122;s appreciation. (Won/liter, period average) 2006

2007

2008

2009

Annual

Nov

Dec

Jan

Feb

Mar

Apr

May

Gasoline prices

1,492

1,526

1,692

1,514

1,329

1,352

1,486

1,530

1,551

1,543

Diesel prices

1,228

1,273

1,614

1,416

1,303

1,305

1,322

1,304

1,330

1,320

Source: Korea National Oil Corporation

International prices of major non-ferrous metals and grain went up month-on-month in May due to the prospect of an early economic recovery and weak dollar. In general, prices of non-ferrous metals including bronze and nickel have been on an upward trend due to reduced inventory, prospects for an economic recovery and increased strategic stockpile in China. Prices of grain also moved upwards with a weak dollar, deteriorated weather conditions in major cultivated lands, increased oil prices and US stock market rallies. Prices of non-ferrous metals and grain in May 2009 (m-o-m, %) Corn (7.9), wheat (11.3), soybean (12.8), bronze (3.7), nickel (12.9), aluminum (2.7), zinc (7.2), lead (4.7), tin (17.6)

Reuters index*

(Period average)

2006

2007

Annual

2008 Nov

Dec

Jan

Feb

Mar

Apr

May

2,019

2,400

2,536

1,965

1,767

1,890

1,893

1,870

1,942

2,099

* A weighted average index of 17 major commodities

June 2009

2009

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

12. Real estate market 12.1 Housing market In May, nationwide apartment sales prices were up 0.1 percent, extending the upward trend for two consecutive months. Apartment prices in Seoul, led by the Gangnam area, slashed the growth by a large margin month-on-month, as more potential buyers took a wait-andsee attitude amid delayed deregulation of the real estate market. Apartment prices (m-o-m, %) Seoul: 0.4 (Apr 2009)

0.2 (May); Gangnam: 0.7 (Apr 2009)

0.3 (May)

Nationwide apartment sales prices

(Percentage change from previous period)

2006

2007

2008

Annual

Jan

Feb

Mar

Apr

May

May 41

Nationwide

13.8

2.1

2.3

-0.7

-0.3

-0.2

0.0

0.1

0.02

0.05

0.04

0.02

Seoul

24.1

3.6

3.2

-0.9

-0.2

-0.3

0.4

0.2

0.10

0.21

0.05

0.03

27.6

0.5

-1.9

-1.1

0.2

-0.1

0.7

0.3

0.17

0.34

0.09

0.08

19.0

8.3

9.4

-0.7

-0.6

-0.4

0.0

0.01

0.04

0.00

-0.02

Gangnam

Gangbuk3

1. Weekly trends 2. Upscale area of southern Seoul Source: Kookmin Bank

2009 May 111 May 181 May 251

3. Northern Seoul

Although it is typically the low season for leasing, the average rental prices in May increased 0.3 percent month-on-month continuing its upward trend for three consecutive months. As for Seoul, the prices were up 0.4 percent. The Gangnam area extended the upward trend to post an increase of 0.5 percent albeit slightly decelerating growth from the previous month’s 0.9 percent, as supply of newly built apartments was exhausted (Gangnam-gu and Seochogu) and Seoul Subway Line 9 has started operation (Gangseo-gu and Yeongdeungpo-gu).

Nationwide apartment rental prices

(Percentage change from previous period)

2006

2007

2008

Annual

Jan

Feb

Mar

Apr

May

May 41

7.6

1.9

0.8

-1.2

-0.3

0.2

0.3

0.07

0.10

0.09

0.06

Seoul

11.5

2.2

-1.8

-1.7

0.2

0.7

0.6

0.4

0.20

0.21

0.10

Gangnam2

11.3

0.5

-3.6

-1.8

0.7

1.0

0.9

0.5

0.28

0.29

0.12

Gangbuk

11.8

4.6

0.5

-1.5

-0.4

0.3

0.2

0.09

0.10

0.08

Nationwide

1. Weekly trends 2. Upscale area of southern Seoul Source: Kookmin Bank

2009 May 111 May 181 May 251

3. Northern Seoul

Apartment sales transactions in April slightly went down to 76,000 from the previous month’s 79,000 while apartment sales transaction in the Seoul metropolitan area increased sharply to 34,000 from the previous month’s 29,000.

Apartment sales transactions

(Monthly average, thousand)

2006

2007

2008

Annual

Jan

Mar

May

Jul

Sep

Nov

Dec

Jan

Feb

Mar

Apr

Source: Korea Land Corporation

June 2009

2009

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

12.2 Land market Nationwide land prices in April rebounded to post positive growth for the first time in six months, reflecting land price increases in the Seoul metropolitan area including Seoul and Incheon. Land prices (m-o-m, %) Seoul: -0.03 (Mar 2009)

0.20 (Apr)

Incheon: -0.15 (Mar 2009)

0.03 (Apr)

Gyeonggi: -0.08 (Mar 2009)

0.13 (Apr)

Metropolitan cities and provinces excluding the Seoul metropolitan area continued their downward trend. The pace of decline, however, slightly decelerated. Land prices in major regions (m-o-m, %) -0.07 (Jeju), -0.06 (Kwangju), -0.06 (Kyeongbuk)

Land prices by region

(Percentage change from previous period) 2007

2008

2009

Annual

Jan

Feb

Mar

Apr

Nationwide

3.88

0.96

0.79

0.91

1.15

-0.31

1.23

1.46

1.18

-4.08

-1.20

-0.76

-0.35

-0.09

0.06

Seoul

5.88

1.38

1.07

1.40

1.90

-1.00

1.83

2.17

1.59

-6.34

-1.38

-0.91

-0.44

-0.03

0.20

Gyeonggi

4.22

1.07

0.89

1.05

1.14

-0.26

1.28

1.57

1.28

-4.28

-1.62

-1.03

-0.45

-0.15

0.03

Incheon

4.86

1.24

1.28

1.12

1.13

1.37

1.36

1.67

2.01

-3.57

-1.39

-0.92

-0.40

-0.08

0.13

Source: Korea Land Corporation

Nationwide land transactions in April increased by 130 land lots or 0.06 percent from the previous month to 207,000 land lots, recording a year-on-year decrease of 62,000 land lots or 23.1 percent. Land transactions in the Seoul metropolitan area went up moderately to 81,000 land lots from the previous monthâ&#x20AC;&#x2122;s 70,000 in line with the rising price of land.

Land sales transactions

(Monthly average, land lot, thousand)

2007

2008

Annual Annual Nationwide

2009

Jan

Mar

May

Jul

Sep

Nov

Dec

Jan

Feb

Mar

Apr

208

216

237

248

245

173

149

162

134

164

207

Seoul

Gyeonggi

Gwangju

South Chungcheong Source: Korea Land Corporation

June 2009

12-4 Land and consumer prices since 1970s Source: Korea Land Corporation (land prices) & Korea National Statistical Office (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

13. Composite indices of business cycle indicators The cyclical indicator of coincident composite index, a barometer of the current economic conditions, increased 1.1 points in April from the previous month, staying on an upward track for two consecutive months. Four components of the index including the wholesale and retail sales index and volume of imports decreased. In the mean time, the other four components, such as the mining and manufacturing production index and the manufacturing operation ratio index were up. Components of the cyclical indicator of coincident composite index in Apr 2009 (m-o-m) Number of non-farm payroll employment (-0.1%), mining and manufacturing production index (4.8%), manufacturing operation ratio index (5.2%), value of construction completed (-0.2%), service activity index (1.3%), wholesale & retail sales index (-0.5%), domestic shipment index (3.3%), volume of imports (-0.3%)

The year-on-year leading composite index, which foresees the future economic conditions, went up 1.9 percentage points month-on-month in April, running on an upward track for four consecutive months since January. All components of the index including the indicator of inventory cycle, the consumer expectations index, the composite stock price index, and the volume of capital goods imports increased. Components of the leading composite index in Apr 2009 (m-o-m) Ratio of job openings to job seekers (2.3%p), indicator of inventory cycle (6.6%p), consumer expectations index (5.9p), value of machinery orders received (0.9%), value of construction orders received (3.9%), composite stock price index (4.0%), liquidity in the financial institutions (0.1%), spreads between long & short term interest rates (0.3%p), net terms of trade index (0.5%)

2008

2009

Dec

Jan

Feb

Mar1

Apr1

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

-2.5

-1.9

0.0

0.9

1.5

Cyclical indicator of coincident composite index

94.6

92.4

92.0

92.5

93.6

(m-o-m, p)

-2.7

-2.2

-0.4

0.5

1.1

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

-0.8

0.2

1.1

1.0

1.6

12 month smoothed change in leading composite index (%)

-4.2

-4.1

-3.0

-2.0

-0.1

(m-o-m, %p)

-1.0

0.1

1.1

1.0

1.9

1. Preliminary

June 2009

13-1 Cyclical indicator of coincident composite index Source: Korea National Statistical Office

13-2 Leading composite index Source: Korea National Statistical Office

13-3 Coincident and leading composite indices Source: Korea National Statistical Office

Economic Bulletin

Policy Issues Government Incentives to Attract FDI in New Growth Engines

At the 13th meeting on May 27, the Presidential Council on National Competitiveness discussed new government incentives to attract more foreign direct investment (FDI) in the new growth engines. The government designated several eco-friendly industries to promote green growth and 17 new growth engines in December 2008 and January 2009, respectively, and plans to select 100 foreign companies in those areas, which will be the main beneficiaries of the incentives.

Background Foreign investment has been important to the Korean economy. According to the 2007 figures, investments from 16,400 foreign companies generated 9.7 percent of the total industrial sales, hired 5.1 percent of the total number of employed, achieved 15.6 percent of exports, and brought in 10.7 percent of tax revenues. Although important, there has not been a deliberate measure to attract foreign companies having a positive effect on the Korean economy. Given this situation, the Korean government introduced measures to attract FDI in the industries of strategic importance to the country on the basis of selection and concentration.

June 2009

Key policy measures Industries expected to have a significant effect on the national economy, â&#x20AC;&#x153;green technologyâ&#x20AC;? or new growth engine related industries for example, will be the areas in which Korea will aggressively attract FDI. The industries will be decided in July this year on the basis of their contribution to the nationâ&#x20AC;&#x2122;s economic growth, job creating capabilities, potential to develop new industries, and impact on the other industries. Then the Korean government will select up to 100 foreign companies whose FDI in Korea will be actively promoted. Second, the government plans to as much as double the cash incentives offered to foreign companies based on their impact on the development of the Korean industry. In addition, there will be no minimum investment requirement for the cash grants until 2012: Currently, at least US$10 million should be invested for the eligibility to receive the cash grants. In the mid-term, the government will introduce packaged incentives, from which foreign investors can choose within the set amount. The current incentives are given out separately under different categories such as tax, cash, and settlement support. For cash grants, performance based evaluations will be carried out through the FDI Project Assessment Team formed by the government. Third, to effectively support foreign investors investing in the industries of the national choice, the Korean government will invigorate Invest Korea, a FDI support center, by adding a division of FDI policies, as well as by increasing support personnel to help solve FDI related difficulties. Next, regulations concerning FDI will be largely relaxed or revised to draw more FDI in the selected industries: Earned surpluses invested will be taken as FDI starting December 2009, in compliance with the OECD guidelines for FDI. The government will ease regulations for building factories and lower rent for part or material producing companies which own core technologies. To encourage foreign R&D investments, government subsidies for buildings will be added to land subsidies. Regulations regarding entry into national projects by newly invested foreign R&D centers will also be relaxed. Headquarters of multinational companies will have more cash grants, as their labor expenses will be included on the items eligible for cash grants. Finally, to provide foreigners with a more business-friendly and convenient living environment, plans for developing FEZs (Free Economic Zones) nationwide will be set up by 2010, including development goals, deregulation schedules, and schemes to attract foreign investments. The FEZ planning office will be given overriding authority to approve businesses in FEZs, which is expected to reduce the time required for business approval by more than 4 months from 5.4 months on average to one month. Publicly funded schools in FEZs established by foreigners will be able to accept up to 30 percent of domestic students from 15 percent currently regulated. Construction in FEZs, both

Economic Bulletin

housing and commercial, will be facilitated through eased regulations on new home prices, and exemption from and reduction of tax burdens of land development. Foreign invested medical services in FEZs will be able to employ local medical staff such as nurses and medical technicians in addition to doctors and pharmacists, and locals will be able to use foreign invested pharmacies if they have prescriptions from foreign hospitals. Also, FEZs will be planned and developed as eco-friendly cities. The incentives are expected to generate sales of 37 trillion won, job creation of 50,000, and export increase of US$17.5 billion, attracting more FDI in Koreaâ&#x20AC;&#x2122;s future growth engines.

Detailed Plans to Develop New Growth Potential: Nurturing High Value Added Services

The Korean government unveiled 200 detailed plans for the 17 industries it designated last January as new growth engines, which will receive 24.5 trillion won of fiscal support between 2009 and 2013.

17 new growth engines Green technologies 1. New sources of renewable energy 2. Low carbon emitting energy 3. Sophisticated water treatment 4. LED application 5. Green transportation system 6. New green cities (environmentfriendly cities)

Converged industries

High value added services

7. Converged industries of broadcasting and communications

13. Health care

8. Converged IT systems

15. Finances related to the environment

9. Robotic application

16. Content and software

10. New materials/nanoscience

17. Tourism including MICE (Meeting, Incentives, Convention, and Events)*

11. Biopharmaceutics/medical appliances

14. Education

12. High value added food industry *Tourism targeting large groups of foreigners attending international meetings, conventions and events, and enjoying tours offered as incentives to company workers.

High value added services were first included in Koreaâ&#x20AC;&#x2122;s new growth engines last January, and these plans are mainly composed of details to nurture the high value added services.

June 2009

Background The service sector is expected to be Koreaâ&#x20AC;&#x2122;s most powerful growth engine, as it has more potential to be developed than the manufacturing sector in terms of job creation, market expansion, export opportunities, and new business build-up. Furthermore, international trade in services has increased rapidly from US$2.8 trillion in 2006 to US$3.7 trillion in 2008 according to the WTO.

Principal policies to nurture the high value added services 1. The government will revise laws to facilitate expanding markets and growing enterprises. 2. The government will create an environment which promotes the birth of new converged service industries. 3. Korea will focus on raising global competitiveness by developing core technologies, achieving international standards, and nurturing talents. 4. Korea will provide complete and all encompassing support to exporters of the high value added services.

Detailed plans for the high value added services Service industry

Goal - To attract 200,000 foreign patients by 2013

Health care

- To raise the level of ubiquitous health care to 8 billion won by 2018, 40 percent of total heath care

- Hospitals will be given national approval on the basis of global standards. - Exclusive visas for foreign patients will be issued.

- To take 2.5 percent of the worldâ&#x20AC;&#x2122;s clinical trials market

- Korea will found a legal basis for ubiquitous medical services.

- To attract 100,000 foreign students by 2012

- Regulations will be revised to help attract renowned foreign educational institutions.

- To balance accounts related to education

Education

Details

- To offer globally renowned ubiquitous learning services - To take 10 percent of the global ubiquitous learning market

- The government will change regulations to promote ubiquitous learning. - Government support will be given to facilitate exports of Koreaâ&#x20AC;&#x2122;s curricula and educational professionals with ODA (Official Development Assistance) tied to the exports.

Economic Bulletin

- To lay a foundation for becoming Asia’s largest carbon finance market and a hub for green finance by 2013 Finances related to the environment (green finance)

- To create jobs in green finance: 23,000 (2.4 trillion won) in 2013 to 51,000 (5.3 trillion won) in 2018

- Korea will establish and test-run a carbon emissions trading center. - Green industries will be provided with loans with more favorable conditions, and environment-related funds will be set up. - Korea will train green finance specialists. - Green enterprises will be certified by the government.

- To be one of the world’s five best content powerhouses by 2013 with 10 global content enterprises Content/software

- To be one of the world’s five best software powerhouses by 2018 with three software enterprises ranked among the best 200 in the world

- To attract 11 million foreign tourists by 2013 - To develop MICE to produce 1.5 percent of GDP by 2018 MICE/converged tourism

June 2009

- To regularly host three international conferences of more than 1,000 foreigners from 2012

- The government will finance content exporters. - Korea will provide support for developing core software and commercializing converged software. - The government will help software enterprises expand markets overseas.

- Cross-ministerial support for MICE will be offered. - Facilities for MICE will be constructed, and the government will plan international conferences and exhibitions. - Ecological tourism will be certified by the government and performance complexes will be built.

Economic News Briefing

GDP up 0.1% in the first quarter (Preliminary) Koreaâ&#x20AC;&#x2122;s real GDP grew 0.1 percent in the first quarter of 2009 (preliminary) compared to the previous quarter, the same as the advance estimates released on April 24. On the production side, the manufacturing output decreased 3.4 percent month-on-month, while the construction sector recorded a growth rate of 5.9 percent. On the expenditure side, private consumption was up 0.4 percent while facility investment shrank 11.2 percent. From a year earlier, the rate of growth in real GDP recorded minus 4.2 percent, up from the advance estimates of minus 4.3 percent. Meanwhile, a study by the Organization for Economic Cooperation and Development (OECD) indicated that the Korean economy has already hit rock bottom and is likely on a fast track to recovery, saying that the country marked the fastest rise in the Composite Leading Indicator (CLI) for the month of March. The countryâ&#x20AC;&#x2122;s CLI recorded 96.8, up 2.2 points from the previous month and representing the largest increase among the 30 OECD member countries. It is the second month in a row for Korea to record the highest increase in OECDcollected CLI data.

Economic Bulletin

GDP by production and expenditure*

(Percentage change from previous period) 2007

20081

20091 Q1

Annual

GDP

5.1

1.5 (4.5)2

1.5 (5.3)

1.3 (4.9)

1.3 (5.7)

2.2

1.1 (5.5)

0.4 (4.3)

0.2 (3.1)

-5.1 (-3.4)

0.1 (-4.2)

Agriculture, forestry and fishery

4.0

-0.2

3.0

0.8

-2.9

5.5

5.8

0.8

0.6

-0.1

-0.1 (1.5)

Manufacturing

7.2

2.0

2.7

2.5

2.4

3.1

1.2

1.7

0.1

-11.9

-3.4 (-13.6)

Construction

2.6

-0.1

0.5

1.3

-2.4

-1.4

-2.2

1.1

-4.2

5.9 (0.4)

Services3 Private consumption

5.1

2.0

1.2

1.1

1.2

2.5

0.8

0.1

0.5

-1.4

0.3 (-0.5)

5.1

1.7

1.5

0.9

0.4

0.9

1.1

-0.2

0.0

-4.6

0.4 (-4.4)

Facility investment

9.3

6.0

1.2

-3.0

3.8

-2.0

-0.4

0.4

0.2

-14.2

-11.2 (-23.5)

Construction investment

1.4

-0.1

-2.2

-0.4

2.9

-2.1

-2.5

-0.3

0.1

-3.0

5.2 (1.6)

11.9

5.4

2.6

1.5

7.1

4.1

-0.7

2.5

-0.9

-12.6

-3.4 (-14.1)

10.9

3.8

5.0

0.3

5.9

4.6

0.1

3.0

1.2

-15.7

-6.2 (-17.4)

4.9

1.8

0.8

0.3

1.3

0.7

0.3

0.2

-4.3

0.7 (-3.8)

Goods exports4 Goods imports4 Domestic demand

*At 2005 chained prices, seasonally adjusted terms 1. Preliminary 2. Figures in parenthesis denote percentage changes from the same period in the previous year in original terms. 3. Wholesale & retail sales, hotels & restaurants, transportation & storage, communication services, financial & insurance services, real estate, business services, public administration, defense & social security, educational services, healthcare & social welfare services and other services are included. 4. FOB basis 5. Excluding inventory

Foreign reserves in May recover to post US$226.77 billion Koreaâ&#x20AC;&#x2122;s official foreign reserves as of end-May amounted to US$226.77 billion, posting a considerable one-month growth of US$14.29 billion. The increase was mainly attributable to a rise in operating profits of the foreign reserves, to substantial redemptions at maturity of the foreign currency liquidity supplied by the Bank of Korea and the Foreign Exchange Stabilization Fund, and to sharp increases in the value of non-dollar assets when converted into the US currency. As of the end of April this year, Korea remained the 6th largest holder of foreign reserves in the world. (End-period, US$ billion)

Official foreign reserves

2007

2008

Annual

Feb

Mar

Apr

May

Change1

262.22

201.22

201.54

206.34

212.48

226.77

14.29

1. Change at the end of May from the end of previous month

June 2009

2009

FSC permitted short selling of non-financial stocks The Financial Services Commission (FSC) announced on May 20 plans to lift a ban on short selling of shares in non-financial companies beginning June 1. The FSC decided to ease regulations on short selling as the Korean stock market regained some stability, the international trend has been toward removing the restrictions on short selling, and an effective new mechanism to supervise and monitor short selling practices has been introduced. However, for the time being, the short-selling ban on financial stocks such as shares of banks, brokerages and insurers will continue to be in effect due to uncertainties in the financial market. Meanwhile, a ban on naked short selling will continue as stipulated in the Financial Investment Services and Capital Markets Act.

Korean Bank BIS capital ratio jumps to 12.94% at end-March Domestic banks’ BIS capital ratio under Basel II as of end-March stood at an average of 12.94 percent, up 0.63 percentage points from 12.31 percent at the end of last year. It is reflecting banks’ capacity to absorb considerable downward pressure exerted on the BIS ratio from economic slowdown and restructuring in the future. Banks’ capital increased by 6.9 trillion won or 4.7 percent in the first quarter as they posted net profits and raised 7.5 trillion won through issuances of stocks and hybrid capital instruments which included 4 trillion won from the Bank Recapitalization Fund. In comparison, banks’ risk-weighted assets edged down 0.5 trillion won or 0.4 percent in the first three months of this year as market and operational risks fell. (Trillion won, %) 2006

2007

2008 (A)

Mar 2009 (B)

Change (B-A)

12.75

12.31

12.94

0.63

* Figures for 2008 and 2009 are based on Basel II, otherwise Basel I.

In the mean time, conditions affecting overseas borrowings by domestic banks have continued to improve, despite the heightened geopolitical risk related to North Korea. On June 8, the Korea 5-year CDS premium was 147 basis points, down 552 basis points from the peak of 699 basis points on October 27, 2008, approaching the 135 basis points recorded on September 12, 2008 prior to the collapse of Lehman Brothers.

Economic Bulletin

280 business regulations to be suspended or scraped to support economic recovery The Korean government will suspend or scrap a total of 280 business-related restrictions that have been cited as hindering investment and business activities, said the prime minister’s office on May 27. With the eased regulations, the building coverage ratio in conservation areas including green areas and natural environment preservation areas will increase to 40 percent in 2 years from the present level of 20 percent. Rent for SMEs using state-owned facilities or assets will be lowered, and the grace period for small companies to get corporate and income tax exemption will also be extended until the end of 2011. In addition, foreign invested companies will be able to form a private contract for two years on land subjected to state-led city development. Of the 280 rules, enforcement ordinances and regulations related to 221 cases will be revised in June and go into effect in July. For the other 59 cases, related special bills will be submitted to the National Assembly for deliberation.

Korea and ASEAN agreed to strengthen cooperation Leaders of Korea and the member states of the Association of Southeast Asian Nations (ASEAN) gathered on June 1 to 2 in Jeju Island to commemorate the 20th Anniversary of Korea-ASEAN Dialogue Relations, under the theme of “Partnership for Real, Friendship for Good.” On June 1, government officials and financial experts from Korea and ASEAN, and participants from international organizations discussed the impact of the global economic crisis on the ASEAN economy and ways to promote economic cooperation between Korea and ASEAN in the Korea-ASEAN Economic Cooperation Forum. Signing the joint statement on June 2, ASEAN leaders showed support for Korea’s proposal to form regional cooperation organizations in political and security, economic and sociocultural sectors by 2015. They also agreed to make continuous efforts to ease tensions on the Korean Peninsula and help resume dialogue to resolve the North Korean nuclear issues in a peaceful way through the six-party negotiations. In particular, Korea and ASEAN welcomed the entry into force of the Agreement on Trade in Services on 1 May, 2009 and the signing of the Investment Agreement on 2 June, 2009,

June 2009

which marks the completion of the Korea-ASEAN Free Trade Agreement (FTA). They also stressed the importance of the Chiang Mai Initiative Multilateralization (CMIM), which would contribute to regional financial stability and safeguard the region from the global financial crisis. Meanwhile, as a part of President Lee Myung-bak’s “New Asia Initiative,” Korea announced an ambitious plan to increase support of the Korea-ASEAN relationship by doubling the annual volume of Korea’s official development assistance (ODA) for ASEAN to US$400 million by 2015 while boosting cultural and human exchanges by increasing the KoreaASEAN Cooperative Fund.

Korea expands economic ties with Uzbekistan and Kazakhstan Korean President Lee Myung-bak made state visits to Uzbekistan and Kazakhstan on May 10 to 14 mainly aiming to strengthen energy and business cooperation between Korea and these two central Asian countries. President Lee Myung-bak and Uzbekistani President Islam Karimov on May 11 at their summit meeting in Tashkent discussed detailed ways to enhance business cooperation in such areas as energy resources, joint development projects in oil fields and mineral mines, including the participation of Korean companies in developing the Surgil gas fields, oil field development projects in Namangan and Chust and the Navoi Airport modernization project. At a ceremony attended by the leaders of the two countries, Seoul and Tashkent signed a total of 16 deals regarding joint exploration projects and drilling of new oil fields in Uzbekistan. President Lee also held a summit with Kazakhstani President Nursultan Nazarbayev on May 13 in Kazakhstan’s capital city Astana, and discussed ways to increase cooperation between the two countries focusing on boosting the level of economic partnership. The two sides signed nine memoranda of understanding (MOUs) agreeing to jointly develop the Jambil maritime oil block in the Caspian Sea as well as a thermal power plant in Balkhash and to collaborate in establishing wireless internet networks in the Central Asian country. To this end, the two sides agreed to jointly develop resources in Kazakhstan, a move that will also help increase Seoul’s energy security. Lee’s five-day trip to Kazakhstan and Uzbekistan came as Korea is set to improve its relations with other Asian nations through a diplomatic campaign called the “New Asia Initiative,” designed to actively promote the diplomatic and economic interests of Asia in the international community.

Economic Bulletin

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 completed 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

1. National accounts (year-on-year change, %, chained 2005 year prices) Real GDP Period

2002 2003 2004 2005 2006 2007 2008P

Gross fixed capital formation

Final consumption expenditure

Agri., fores. & fisheries

Manufacturing

7.2 2.8 4.6 4.0 5.2 5.1 2.2

-2.2 -5.4 9.1 1.3 1.5 4.0 5.5

8.7 5.4 10.0 6.2 8.1 7.2 3.1

8.1 0.5 1.0 4.6 5.1 5.1 1.6

Construction

Facilities

7.1 4.4 2.1 1.9 3.4 4.2 -1.7

6.2 8.5 1.3 -0.4 0.5 1.4 -2.1

7.3 -1.5 3.8 5.3 8.2 9.3 -2.0

2002

I II III IV

6.6 7.0 6.8 8.1

2.3 -2.4 -1.1 -5.5

5.1 7.2 9.3 13.1

10.3 9.1 7.7 5.7

7.5 7.9 3.2 9.6

11.4 7.2 -1.5 9.4

2.6 7.7 9.8 9.1

2003

I II III IV

3.5 1.8 2.0 3.9

0.7 -1.6 -9.6 -8.0

5.4 3.1 4.3 8.5

2.0 0.3 0.0 -0.4

5.1 4.7 2.8 5.0

8.2 8.4 8.3 9.0

2.9 -0.7 -5.8 -2.2

2004

I II III IV

5.2 5.9 4.8 2.7

8.2 7.6 8.3 11.6

10.9 12.9 10.4 6.2

-0.1 1.3 1.0 1.8

2.3 4.9 3.1 -1.4

5.3 4.2 1.2 -3.5

-0.6 6.4 7.7 1.8

2005

I II III IV

2.7 3.4 4.5 5.1

0.4 4.8 3.8 -3.1

4.8 3.9 6.7 9.3

2.7 4.7 5.9 4.9

-0.3 1.8 1.5 3.9

-3.1 0.9 -0.3 0.3

3.4 2.8 4.1 10.8

2006

I II III IV

6.1 5.1 5.0 4.6

3.9 -0.3 -1.4 4.2

9.4 9.1 8.7 5.4

5.8 4.9 4.6 5.1

3.8 0.1 4.0 5.7

1.9 -4.2 -0.5 5.1

7.2 8.0 12.0 5.7

2007

I II III IV

4.5 5.3 4.9 5.7

1.6 7.0 8.2 -0.7

4.5 7.2 6.3 10.2

5.1 5.4 5.3 4.7

7.3 5.7 1.5 3.1

4.4 2.0 -0.2 0.4

12.6 13.0 4.0 8.0

2008P

I II III IV

5.5 4.3 3.1 -3.4

7.4 4.4 4.2 6.4

9.1 8.4 5.6 -9.1

3.9 2.6 2.0 -1.9

-0.5 0.6 1.8 -7.3

-1.9 -0.3 0.2 -5.6

1.5 1.1 4.3 -14.0

2009P

-4.2

1.5

-13.6

-2.0

-8.1

1.6

-23.5

P: Preliminary Source: The Bank of Korea

June 2009

Growth rate by economic activity

Growth rate by expenditure on GDP

Economic Bulletin

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

Production index

Period

2007 2008

Y-o-Y change (%)

Shipment index

Y-o-Y change (%)

Inventory index

Y-o-Y change (%)

Service production index

Y-o-Y change (%)

115.9 119.4

6.9 3.0

115.3 118.1

7.2 2.4

117.2 125.7

5.6 7.3

112.2 116.1

6.8 3.5

2007

I II III IV

109.6 114.9 112.9 126.2

4.1 6.3 6.1 10.9

109.6 115.2 111.9 124.7

5.2 7.1 5.6 10.5

114.0 114.5 112.7 117.2

5.0 4.1 2.9 5.6

106.7 111.2 112.6 118.1

5.5 6.5 7.4 7.4

2008

I II III IV

121.6 125.1 119.2 111.9

10.9 8.9 5.6 -11.3

119.6 122.8 117.8 112.1

9.1 6.6 5.3 -10.1

123.7 133.1 132.2 125.7

8.5 16.2 17.3 7.3

113.8 116.5 116.2 117.6

6.7 4.8 3.2 -0.4

102.7

-15.5

101.9

-14.8

116.7

-5.7

113.2

-0.5

2009

2007

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

112.8 100.2 115.7 113.8 115.8 115.1 113.4 113.7 111.6 128.6 127.6 122.5

8.7 -0.2 3.5 6.4 5.8 6.7 13.6 9.0 -3.0 16.1 7.7 9.4

110.3 101.7 116.8 114.6 116.0 114.9 112.6 112.5 110.6 126.3 126.1 121.6

8.3 2.0 5.1 7.5 6.6 6.9 14.3 7.3 -3.5 15.6 7.8 8.6

118.6 115.6 114.0 111.8 114.2 114.5 115.6 115.6 112.7 115.0 114.9 117.2

10.8 8.4 5.0 4.0 3.7 4.1 2.8 5.5 2.9 4.9 4.3 5.6

105.9 102.8 111.4 109.4 112.1 112.1 112.1 112.9 112.8 115.3 115.6 123.4

4.3 6.7 5.5 5.4 6.2 8.1 10.0 7.9 4.5 9.3 6.7 6.2

2008

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

126.0 110.9 127.8 126.1 126.1 123.1 123.1 115.8 118.6 126.2 110.0 99.6

11.7 10.7 10.5 10.8 8.9 7.0 8.6 1.8 6.3 -1.9 -13.8 -18.7

121.7 109.7 127.3 124.5 123.5 120.3 121.5 114.5 117.3 124.0 109.5 102.8

10.3 7.9 9.0 8.6 6.5 4.7 7.9 1.8 6.1 -1.8 -13.2 -15.5

123.9 124.4 123.7 124.8 128.9 133.1 132.4 132.3 132.2 135.1 133.4 125.7

4.5 7.6 8.5 11.6 12.9 16.2 14.5 14.4 17.3 17.5 16.1 7.3

114.2 109.3 118.0 116.3 117.7 115.5 116.8 115.1 116.8 116.9 113.9 121.9

7.8 6.3 5.9 6.3 5.0 3.0 4.2 1.9 3.5 1.4 -1.5 -1.2

93.9 99.8 114.4 115.8

-25.5 -10.0 -10.5 -8.2

93.2 99.5 113.2 114.5

-23.4 -9.3 -11.1 -8.0

124.4 118.1 116.6 112.7

0.4 -5.1 -5.7 -9.7

113.0 109.6 117.2 118.2

-1.1 0.3 -0.7 1.6

2009

1 2 3P 4P

P: Preliminary Source: Korea National Statistical Office

June 2009

3. Production capacity and operation ratio See graph 6-2

Period

2007 2008

Y-o-Y change (%)

Operation ratio index (2005=100)

Y-o-Y change (%)

Average operation ratio (%)

109.7 115.4

5.4 5.2

100.4 96.8

0.1 -3.6

80.1 77.2

Production capacity index (2005=100)

2007

I II III IV

107.5 108.3 110.2 112.6

4.5 4.5 6.0 6.4

97.2 102.6 96.2 105.5

-2.1 0.7 -1.7 3.4

78.9 79.9 80.1 81.3

2008

I II III IV

114.0 115.3 116.0 116.5

6.0 6.5 5.3 3.5

98.9 102.7 95.1 90.6

1.7 0.1 -1.1 -14.1

80.8 80.4 78.3 69.3

116.9

2.5

80.7

-18.4

65.9

2007 1 2 3 4 5 6 7 8 9 10 11 12

107.2 107.5 107.7 107.9 108.2 108.9 109.7 110.2 110.8 112.3 112.5 113.0

4.4 4.6 4.3 4.5 4.2 4.9 5.8 6.1 6.1 6.5 6.3 6.5

99.8 88.2 103.6 101.5 103.9 102.5 98.3 96.6 93.8 109.4 107.4 99.7

2.6 -7.2 -1.9 0.7 0.9 0.7 7.3 1.4 -12.3 9.6 0.1 0.9

78.5 79.5 78.8 78.8 80.5 80.4 80.6 81.1 78.6 81.9 81.0 80.9

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

113.8 113.8 114.3 114.7 115.5 115.7 115.7 116.0 116.2 116.3 116.3 116.8

6.2 5.9 6.1 6.3 6.7 6.2 5.5 5.3 4.9 3.6 3.4 3.4

102.9 89.2 104.6 104.2 103.0 100.8 99.4 91.9 94.1 103.8 89.1 78.9

3.1 1.1 1.0 2.7 -0.9 -1.7 1.1 -4.9 0.3 -5.1 -17.0 -20.9

81.3 80.2 80.9 81.0 80.0 80.2 79.2 78.4 77.3 77.3 68.4 62.3

2009 1 2 3P 4P

116.8 116.9 117.1 117.2

2.6 2.7 2.4 2.2

72.9 78.8 90.5 93.3

-29.2 -11.7 -13.5 -10.5

61.4 66.9 69.3 71.7

2009

P: Preliminary Source: Korea National Statistical Office

Economic Bulletin

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

Period

2007 2008

Y-o-Y change (%)

Durable goods

Y-o-Y change (%)

Semi-durable goods

Y-o-Y change (%)

Non-durable goods

Y-o-Y change (%)

109.3 110.4

5.1 1.0

124.7 127.1

9.6 1.9

108.1 105.5

3.9 -2.4

108.5 109.3

5.2 0.7

2007

I II III IV

106.6 108.3 107.1 115.1

5.2 4.3 7.2 3.6

119.6 124.6 126.0 128.6

16.6 12.5 10.2 0.8

99.9 110.1 94.1 128.5

5.4 1.5 3.6 5.4

106.6 107.6 110.5 109.4

4.3 3.5 8.4 5.0

2008

I Il III IV

111.3 111.4 108.6 110.3

4.4 2.9 1.4 -4.2

131.0 135.5 126.0 115.9

9.5 8.7 0.0 -9.9

103.7 107.8 94.7 115.8

3.8 -2.1 0.6 -9.9

108.6 107.9 111.8 109.0

1.9 0.3 1.2 -0.4

105.9

-4.9

113.2

-13.6

102.8

-0.9

107.0

-1.5

2007 1 2 3 4 5 6 7 8 9 10 11 12

106.2 103.6 110.1 106.6 111.3 107.0 105.0 103.6 112.6 113.4 113.9 118.1

0.4 10.3 5.6 3.8 5.6 3.6 9.1 5.8 6.6 6.8 3.9 0.5

118.7 111.2 128.8 120.5 126.5 126.8 130.5 127.0 120.5 124.8 129.1 131.8

22.0 11.5 16.2 13.9 14.3 9.4 20.7 11.4 -0.3 11.7 4.0 -10.3

98.0 91.5 110.2 111.5 116.2 102.5 94.4 80.0 107.8 123.9 130.0 131.7

4.6 5.7 5.8 -0.1 1.8 2.7 3.2 2.8 4.6 8.2 4.3 3.9

104.4 107.4 108.1 105.0 110.3 107.4 105.3 109.6 116.7 109.3 106.6 112.2

-4.9 16.0 3.7 3.3 5.0 1.9 8.7 5.7 10.9 4.1 5.4 5.3

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

111.7 107.2 115.1 113.0 114.8 106.3 109.3 105.9 110.5 109.5 108.6 112.8

5.2 3.5 4.5 6.0 3.1 -0.7 4.1 2.2 -1.9 -3.4 -4.7 -4.5

129.5 118.7 144.8 140.6 137.6 128.2 141.1 121.5 115.4 124.4 109.0 114.4

9.1 6.7 12.4 16.7 8.8 1.1 8.1 -4.3 -4.2 -0.3 -15.6 -13.2

104.5 97.3 109.2 109.2 112.5 101.8 98.0 87.1 99.1 112.5 121.2 113.8

6.6 6.3 -0.9 -2.1 -3.2 -0.7 3.8 8.9 -8.1 -9.2 -6.8 -13.6

108.1 107.9 109.8 108.1 111.7 103.9 105.7 111.4 118.2 105.8 107.0 114.3

3.5 0.5 1.6 3.0 1.3 -3.3 0.4 1.6 1.3 -3.2 0.4 1.9

2009 1 2 3P 4P

108.0 100.7 109.1 108.5

-3.3 -6.1 -5.2 -4.0

102.5 114.3 122.9 123.3

-20.8 -3.7 -15.1 -12.3

103.2 96.8 108.4 110.0

-1.2 -0.5 -0.7 0.7

113.6 98.8 108.8 107.0

5.1 -8.4 -0.9 -1.0

2009

P: Preliminary Source: Korea National Statistical Office

June 2009

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

2007 2008

Durable goods

Y-o-Y change (%)

Non-durable goods

Y-o-Y change (%)

Consumer sentiment index

113.0 114.6

6.0 1.4

124.5 126.6

12.8 1.7

108.4 109.8

3.2 1.3

2007

I II III IV

111.1 111.0 111.3 118.7

8.4 7.8 2.4 5.9

119.8 122.5 122.9 132.8

17.6 15.0 9.3 9.9

107.6 106.4 106.7 113.0

4.8 4.7 -0.5 4.1

2008

I II III IV

117.3 115.7 113.5 111.8

5.6 4.2 2.0 -5.8

132.5 136.4 123.0 114.5

10.6 11.3 0.1 -13.8

111.3 107.5 109.7 110.7

3.4 1.0 2.8 -2.0

106.2

-9.5

112.9

-14.8

103.5

-7.0

2007 1 2 3 4 5 6 7 8 9 10 11 12

114.9 104.3 114.1 111.6 113.0 108.5 109.7 112.9 111.3 121.6 118.0 116.4

11.1 8.0 6.2 10.1 8.8 4.7 10.0 6.0 -7.1 11.8 3.1 2.9

118.0 113.7 127.8 119.9 125.3 122.4 124.3 125.0 119.5 136.4 131.8 130.2

21.9 14.8 16.2 19.5 18.2 8.0 23.6 13.9 -5.8 16.9 6.7 6.5

113.6 100.5 108.6 108.3 108.0 102.9 103.9 108.1 108.0 115.7 112.4 110.9

7.2 5.0 2.2 6.3 4.8 3.2 4.5 2.8 -7.6 9.6 1.4 1.3

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

125.2 106.4 120.3 119.8 115.8 111.6 117.6 111.3 111.5 119.5 107.0 108.8

9.0 2.0 5.4 7.3 2.5 2.9 7.2 -1.4 0.2 -1.7 -9.3 -6.5

131.5 122.4 143.5 144.0 136.9 128.2 134.2 118.8 116.0 127.8 111.0 104.6

11.4 7.7 12.3 20.1 9.3 4.7 8.0 -5.0 -2.9 -6.3 -15.8 -19.7

122.7 100.0 111.1 110.1 107.4 105.0 111.0 108.3 109.7 116.2 105.5 110.5

8.0 -0.5 2.3 1.7 -0.6 2.0 6.8 0.2 1.6 0.4 -6.1 -0.4

84 96 96 88 84 81

2009 1 2 3 4 5

105.7 102.3 109.6P 110.8P -

-15.6 -3.9 -8.9P -7.5P -

99.0 115.2 124.3P 119.2P -

-24.7 -5.9 -13.4P -17.2P -

108.4 97.2 103.8P 107.5P -

-11.7 -2.8 -6.6P -2.4P -

84 85 84 98 105

2009

P: Preliminary Source: Korea National Statistical Office & The Bank of Korea

Economic Bulletin

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 (2000=100)

Domestic machinery shipment excluding ship (2005=100)

Total

Public

Private

34,143 32,280

2,205 2,313

31,938 29,967

17,424 14,672

127.2 123.1

114.5 114.5

10,197 8,506 7,520 6,057

372 537 354 1,049

9,825 7,969 7,165 5,007

5,429 3,651 3,394 2,198

126.7 130.8 125.3 109.4

111.7 120.6 113.9 111.9

6,522

932

5,590

2,254

97.5

98.0

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

3,810 3,044 3,343 2,914 2,659 2,933 3,153 2,330 2,037 2,371 1,813 1,872

149 68 155 95 90 352 179 87 88 399 207 444

3,661 2,976 3,188 2,819 2,569 2,582 2,974 2,243 1,949 1,972 1,607 1,429

2,197 1,723 1,510 1,302 1,085 1,264 1,392 1,114 887 939 668 590

120.2 118.2 141.6 135.6 128.7 128.2 131.5 123.5 120.9 113.4 107.8 107.1

106.3 102.9 125.9 119.6 122.1 120.0 119.6 108.3 113.8 112.5 108.2 115.1

2009 1 2 3P 4P

2,022 2,167 2,334 2,166

232 519 181 93

1,790 1,648 2,153 2,073

791 612 853 773

89.1 95.2 108.6 101.3

84.3 97.4 112.3 109.2

2007 2008 2008

2009

I ll III IV IP

Manufacturing

Y-o-Y change (%) 2007 2008

21.1 -5.5

-11.2 4.9

24.2 -6.2

31.9 -15.8

9.2 -3.2

3.3 0.0

25.2 8.4 -7.6 -39.5

8.8 83.7 -26.8 -3.5

25.9 5.5 -6.4 -43.9

40.2 -4.5 -20.3 -59.8

-0.7 -0.5 5.3 -16.2

1.3 0.6 6.5 -7.4

-36.0

150.5

-43.1

-58.5

-23.0

-12.3

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

44.4 8.3 24.1 17.9 2.3 5.6 20.7 -3.9 -34.3 -36.5 -43.9 -38.5

67.8 -54.7 50.6 1.3 -1.5 228.9 5.3 -31.8 -52.7 348.0 -4.7 -43.2

43.5 11.8 23.0 18.5 2.5 -3.4 21.8 -2.4 -33.2 -45.9 -46.7 -36.8

69.8 23.9 27.0 6.8 -9.9 -9.8 12.3 -0.1 -53.3 -62.1 -63.8 -48.4

-1.5 -2.2 1.2 -1.8 -1.4 1.8 8.7 0.1 7.5 -7.7 -17.0 -23.0

1.8 0.2 1.6 4.4 -0.8 -1.7 7.1 2.6 10.0 -1.0 -10.1 -10.4

2009 1 2 3P 4P

-46.9 -28.8 -30.2 -25.7

56.1 661.2 16.7 -2.5

-51.1 -44.6 -32.4 -26.5

-64.0 -64.5 -43.5 -40.6

-25.9 -19.5 -23.3 -25.3

-20.7 -5.2 -10.8 -8.7

2008

2009

I ll III IV IP

P: Preliminary Source: Korea National Statistical Office

June 2009

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

Period

2007 2008 2008

2009 2008

2009

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

Type of order

Private

Domestic construction orders received (total)

Public

Private

25,098 26,728

54,559 55,509

112,502 102,321

28,695 31,320

77,554 65,294

18,283 22,158 22,317 24,047

5,279 6,568 6,503 8,383

12,142 14,367 14,712 14,288

21,048 25,995 17,061 38,217

7,398 6,056 4,691 13,175

13,077 19,171 10,795 22,252

19,239

6,743

11,465

17,567

9,024

8,055

6,074 5,473 6,736 7,026 7,321 7,811 7,168 7,312 7,837 7,741 7,779 8,528

1,716 1,519 2,040 1,967 2,224 2,376 2,025 2,139 2,339 2,498 2,572 3,312

4,072 3,698 4,372 4,636 4,731 5,001 4,789 4,822 5,101 4,819 4,743 4,726

6,275 6,152 8,621 7,880 8,578 9,537 5,372 6,169 5,519 8,187 8,151 21,879

1,907 2,048 3,442 1,743 2,499 1,814 1,392 1,520 1,779 2,451 3,088 7,636

4,166 3,887 5,024 5,933 5,884 7,353 3,452 4,432 2,911 4,827 4,722 12,703

6,048 6,129 6,937 7,558

2,149 2,036 2,377 2,659

3,608 3,782 4,147 4,491

5,333 4,880 7,354 7,249

2,552 2,695 3,778 5,610

2,514 2,079 3,462 1,260

Value of construction completed (total)

Public

82,939 86,806

Y-o-Y change (%) 2007 2008 2008

2009 2008

2009

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

6.6 4.7

8.4 6.5

4.6 1.7

23.6 -9.0

40.3 9.1

16.5 -15.8

5.6 6.1 10.6 -2.2

6.8 3.5 6.6 8.7

3.0 4.6 10.5 -9.1

-3.7 -6.1 -22.7 -6.5

17.4 14.6 2.9 5.0

-14.1 -4.7 -32.3 -15.3

5.2

27.8

-5.6

-16.5

22.0

-38.4

10.5 3.1 3.6 4.2 7.5 6.6 8.7 8.3 14.8 5.1 -1.3 -8.6

16.5 -1.0 5.5 2.4 5.0 3.1 3.2 9.5 6.9 20.4 5.7 3.4

5.6 2.6 1.0 2.6 5.9 5.3 9.2 5.9 16.7 -3.3 -7.1 -16.2

-9.3 -7.0 3.6 -0.5 16.4 -23.0 -13.2 -8.1 -39.8 -23.7 -39.3 30.7

3.6 2.1 40.1 -5.6 50.7 2.0 -9.2 9.3 8.8 -25.8 -16.6 37.8

-15.0 -14.1 -13.4 3.4 16.0 -21.0 -8.4 -10.7 -59.6 -32.1 -46.7 23.4

-0.4 12.0 3.0 7.6

25.2 34.0 16.5 35.1

-11.4 2.3 -5.1 -3.1

-15.0 -20.7 -14.7 -8.0

33.8 31.6 9.7 221.8

-39.7 -46.5 -31.1 -78.8

P: Preliminary Source: Korea National Statistical Office

Economic Bulletin

8. Composite indices of business cycle indicators and BSI See graphs 13-1, 13-2 & 13-3

Y-o-Y change (%)

Coincident index (2005=100)

Cycle of coincident index (2005=100)

BSI (actual)

BSI (outlook)

104.2 104.3 104.2 104.3 104.6 105.0 105.2 105.6 106.3 107.2 108.0 108.6

6.9 6.4 5.8 5.4 5.2 5.0 4.5 4.3 4.5 5.0 5.3 5.3

104.0 104.1 104.5 104.6 105.2 105.5 105.2 105.6 106.4 108.3 109.1 109.4

100.4 100.1 100.1 99.8 99.9 99.8 99.1 99.1 99.4 100.7 101.1 101.0

95.4 90.5 111.5 99.8 94.1 94.2 79.1 85.9 99.4 99.4 103.7 100.4

102.6 102.4 118.9 112.7 110.7 98.6 94.2 93.4 107.7 103.5 104.3 101.4

2007 1 2 3 4 5 6 7 8 9 10 11 12

109.1 109.9 110.3 111.0 111.3 112.4 113.2 114.1 114.7 115.6 116.4 116.8

5.4 5.8 5.7 6.0 5.8 6.4 6.8 7.1 7.2 7.5 7.7 7.4

109.4 109.8 110.2 110.7 111.2 112.1 113.0 113.7 113.8 114.4 115.0 116.0

100.6 100.6 100.5 100.5 100.6 100.9 101.4 101.6 101.2 101.3 101.5 101.9

85.6 87.5 109.4 105.8 104.1 100.2 95.8 94.4 101.5 108.3 106.0 98.9

96.5 93.4 112.3 107.7 110.9 105.6 99.3 102.5 111.8 116.3 112.4 103.4

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

116.5 115.7 115.1 115.0 115.0 114.6 113.8 113.5 113.4 112.7 111.3 110.4

6.5 5.0 3.9 3.2 2.5 1.5 0.2 -0.4 -0.9 -1.8 -3.2 -4.2

116.8 116.9 117.1 117.1 117.3 117.3 117.6 117.7 117.9 117.6 115.9 113.0

102.2 101.9 101.7 101.2 101.0 100.6 100.4 100.1 99.8 99.2 97.3 94.6

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

110.6 111.8P 112.9P 114.7P -

-4.1 -3.0P -2.0P 0.1P -

110.9 110.9P 111.9P 113.6P -

58.1 62.4 89.0 93.7 100.9 -

52.0 66.0 76.1 86.7 103.8 100.2

Period

Leading index (2005=100)

2006 1 2 3 4 5 6 7 8 9 10 11 12

P: Preliminary Source: Korea National Statistical Office & The Federation of Korean Industries

June 2009

92.4 92.0P 92.5P 93.6P -

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

Current balance

Period

2007 2008P

Goods trade balance

Exports

5,876.0 -6,406.4

28,168.0 5,993.9

Imports

Services trade balance

Income trade balance

Current transfers

371,489.1 422,007.3

356,845.7 435,274.7

-19,767.6 -16,733.6

1,002.7 5,106.5

-3,527.1 -773.2

2007

I II III IV

-1,013.3 -1,303.6 4,344.1 3,848.8

5,721.8 5,811.9 8,881.9 7,752.4

84,703.5 92,984.5 90,529.1 103,272.0

82,261.7 87,961.9 86,058.8 100,563.3

-5,391.3 -4,415.9 -5,256.6 -4,703.8

-618.1 -1,662.4 1,795.9 1,487.3

-725.7 -1,037.2 -1,077.1 -687.1

2008P

I II III IV

-5,212.6 -134.4 -8,579.9 7,520.5

-1,219.8 5,722.7 -3,475.5 4,966.5

99,444.5 114,492.0 115,000.1 93,070.6

106,052.9 114,792.8 122,901.0 91,528.0

-5,067.2 -4,272.7 -5,691.7 -1,702.0

1,688.1 -645.6 1,356.7 2,707.3

-613.7 -938.8 -769.4 1,548.7

2009P

8,576.7

8,349.6

74,712.5

71,182.2

-1,883.3

832.4

1,278.0

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

439.4 430.4 -1,883.1 -2,558.6 193.8 1,061.2 1,773.7 589.1 1,981.3 3,010.5 1,674.4 -836.1

1,505.6 2,140.0 2,076.2 1,233.1 1,476.9 3,101.9 3,250.9 2,386.2 3,244.8 4,361.0 2,723.8 667.6

28,092.6 26,225.1 30,385.8 29,944.5 31,039.9 32,000.1 30,207.4 30,998.1 29,323.5 34,433.8 35,807.9 33,030.3

27,560.1 25,406.2 29,295.5 29,596.9 29,856.9 28,508.1 29,223.2 29,642.1 27,193.6 32,741.2 33,926.1 33,895.9

-1,409.6 -2,356.4 -1,625.3 -1,371.3 -1,396.5 -1,648.1 -1,675.3 -2,050.6 -1,530.7 -1,527.0 -1,410.8 -1,766.0

610.1 867.2 -2,095.4 -2,203.8 504.0 37.4 557.1 610.7 628.1 454.1 474.8 558.4

-266.7 -220.4 -238.6 -216.6 -390.6 -430.0 -359.0 -357.2 -360.9 -277.6 -113.4 -296.1

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

-2,751.3 -2,350.7 -110.6 -1,581.3 -377.5 1,824.4 -2,534.0 -4,696.3 -1,349.6 4,753.0 1,906.7 860.8

-1,095.2 -599.1 474.5 1,632.3 612.5 3,477.9 217.6 -2,803.4 -889.7 2,625.7 844.8 1,496.0

32,274.6 31,178.2 35,991.8 37,850.2 39,383.2 37,258.6 40,961.2 36,610.6 37,428.3 37,111.1 28,841.6 27,117.9

36,318.0 32,624.3 37,110.6 38,260.4 38,704.5 37,827.9 42,952.5 40,420.4 39,528.1 36,098.8 28,853.6 26,575.6

-2,138.1 -2,249.6 -679.5 -979.0 -1,167.4 -2,126.3 -2,456.0 -2,000.0 -1,235.7 -54.8 -130.1 -1,517.1

768.0 700.7 219.4 -1,932.0 459.2 827.2 239.6 324.8 792.3 1,411.2 720.2 575.9

-286.0 -202.7 -125.0 -302.6 -281.8 -354.4 -535.2 -217.7 -16.5 770.9 471.8 306.0

2009P 1 2 3 4

-1,635.8 3,563.7 6,648.8 4,284.4

-1,736.5 3,106.9 6,979.2 6,168.7

21,241.5 25,398.2 28,051.8 30,418.0

24,843.9 22,524.2 23,789.6 24,630.0

-708.6 -529.0 -645.7 -1,109.2

563.5 484.6 -215.7 -855.5

245.8 501.2 531.0 80.4

2007

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

Economic Bulletin

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

Period

Capital & financial account

Direct investment

Portfolio investment

Financial derivative

2007 2008P

7,128.3 -50,933.3

-13,836.0 -10,594.8

-26,057.8 -15,367.5

5,444.8 -14,332.7

43,964.8 -10,599.7

-2,387.5 -38.6

-15,128.4 56,446.0

2,124.1 893.7

I II III IV

6,364.1 8,948.6 -4,323.4 -3,861.0

-900.7 -2,847.3 -2,606.0 -7,482.0

-12,227.6 -1,055.9 -11,455.8 -1,318.5

1,300.5 1,067.4 1,432.9 1,644.0

19,005.7 12,466.8 8,879.2 3,613.1

-813.8 -682.4 -573.7 -317.6

-3,998.3 -6,250.1 -2,495.6 -2,384.2

-1,352.5 -1,394.9 2,475.1 2,396.4

2008P I ll III IV

395.9 -4,673.7 -4,850.5 -41,805.0

-4,790.6 -2,913.5 -2,283.5 -607.2

-9,992.8 5,997.3 -12,393.1 1,021.1

-1,072.8 -805.9 -3,470.2 -8,983.8

16,489.7 -6,718.6 13,515.7 -33,886.5

-237.6 -233.0 -219.4 651.4

3,850.0 5,717.7 12,883.1 33,995.2

966.7 -909.6 547.3 289.3

2009P I

-13.1

-1,194.7

4,347.3

-4,893.6

1,002.9

725.0

-9,017.4

453.8

2007 1 2 3 4 5 6 7 8 9 10 11 12

2,179.9 -527.7 4,711.9 4,481.5 4,750.1 -283.0 -552.8 137.3 -3,907.9 -3,753.9 -373.5 266.4

-222.3 -644.1 -34.3 -402.2 -282.9 -2,162.2 -322.0 -1,427.1 -856.9 -4,514.5 -1,723.4 -1,244.1

-1,915.9 -2,366.7 -7,945.0 3,601.6 -12.6 -4,644.9 -7,912.0 -6,531.8 2,988.0 -638.2 -2,473.5 1,793.2

292.8 368.2 639.5 197.7 409.0 460.7 705.2 440.1 287.6 663.4 627.2 353.4

4,381.7 2,318.3 12,305.7 1,325.2 4,871.5 6,270.1 7,203.9 7,864.1 -6,188.8 900.5 3,269.4 -556.8

-356.4 -203.4 -254.0 -240.8 -234.9 -206.7 -227.9 -208.0 -137.8 -165.1 -73.2 -79.3

-2,350.7 -1,134.7 -512.9 -1,878.4 -4,492.9 121.2 -2,421.6 -937.6 863.4 -847.5 -493.8 -1,042.9

-268.6 1,232.0 -2,315.9 -44.5 -451.0 -899.4 1,200.7 211.2 1,063.2 1,590.9 -807.1 1,612.6

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

409.2 -401.3 388.0 -376.9 -732.1 -3,564.7 -5,774.6 5,312.4 -4,388.3 -24,834.8 -12,140.9 -4,829.3

-2,488.7 303.5 -2,605.4 -1,911.9 -262.6 -739.0 -1,214.3 -742.7 -326.5 -198.7 -213.9 -194.6

-3,829.7 -5,214.3 -948.8 4,069.9 7,623.0 -5,695.6 -8,855.9 -566.8 -2,970.4 5,172.5 -3,139.6 -1,011.8

-181.4 -212.1 -679.3 -498.2 -279.6 -28.1 -707.2 1.4 -2,764.4 -3,912.1 -1,558.7 -3,513.0

7,013.3 4,819.9 4,656.5 -1,948.9 -7,758.2 2,988.5 5,180.4 6,730.0 1,605.3 -26,247.2 -7,439.3 -200.0

-104.3 -98.3 -35.0 -87.8 -54.7 -90.5 -177.6 -109.5 67.7 350.7 210.6 90.1

1,436.1 1,703.1 710.8 2,411.3 2,264.6 1,041.8 9,171.4 -1,215.2 4,926.9 19,988.1 10,904.2 3,102.9

906.0 1,048.9 -988.2 -453.1 -1,155.0 698.5 -862.8 599.1 811.0 93.7 -670.0 865.6

2009P 1 2 3 4

5,139.4 -2,976.9 -2,711.2 2,541.5

-55.0 -545.5 -594.2 80.4

5,678.8 161.4 -2,307.9 7,133.8

-248.5 -2,321.2 -2,323.9 -679.8

-379.4 -610.3 2,272.0 -4,153.2

149.6 326.1 261.2 140.5

-4,488.6 -1,260.0 -3,268.8 -5,444.1

985.0 673.2 -668.8 -1,381.8

2007

P: Preliminary Source: The Bank of Korea

June 2009

Capital transfers Other & acquisition of investment non-financial assets

Errors and omissions

11. Prices See graphs 11-1, 11-2 & 11-3 (2005 = 100) Producer prices (2000=100)

Consumer prices

Export & import prices

Period All Items

Commodity

Service

Core

All items

Commodity

Export

Import

2007 2008

104.8 109.7

103.5 109.9

105.7 109.6

104.2 108.6

102.3 111.1

101.5 112.5

89.8 109.5

105.5 143.7

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

106.8 107.2 108.2 108.8 109.7 110.4 111.2 111.0 111.1 111.0 110.7 110.7

106.3 106.6 107.1 108.2 110.0 111.5 112.9 112.2 112.1 111.7 110.3 110.2

107.1 107.5 108.9 109.2 109.5 109.7 110.1 110.3 110.4 110.6 110.9 111.0

105.6 106.0 107.2 107.7 108.2 108.7 109.2 109.4 109.9 110.1 110.4 110.9

104.7 105.7 107.1 109.4 111.5 113.3 115.5 115.2 114.8 114.4 111.8 109.9

104.4 105.7 107.5 110.3 113.1 115.5 118.1 117.6 117.0 116.7 113.3 110.9

93.7 94.8 100.8 103.3 110.7 112.0 112.1 110.5 115.6 124.5 120.4 115.0

118.4 121.6 131.5 136.5 151.1 155.2 156.8 149.9 153.4 159.7 149.1 140.6

2009 1 2 3 4 5

110.8 111.6 112.4 112.7 112.7

110.4 112.1 113.3 113.8 113.6

111.1 111.2 111.8 112.0 112.0

111.1 111.5 112.0 112.2 112.4

109.6 110.3 110.8 111.0 110.1

110.4 111.5 112.1 112.1 111.0

111.1 116.5 118.4 112.2 106.3

138.1 143.5 145.4 134.1 130.0

Y-o-Y change (%) 2007 2008

2.5 4.7

2.0 6.2

2.9 3.7

2.4 4.2

1.4 8.6

1.0 10.8

-2.1 21.8

4.5 36.2

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

3.9 3.6 3.9 4.1 4.9 5.5 5.9 5.6 5.1 4.8 4.5 4.1

4.8 4.2 4.7 5.3 7.0 8.6 9.3 8.4 7.1 6.3 5.1 4.4

3.2 3.2 3.5 3.5 3.6 3.7 3.9 4.0 3.9 3.9 4.1 4.0

2.8 2.8 3.3 3.5 3.9 4.3 4.6 4.7 5.1 5.2 5.3 5.6

4.2 5.1 6.0 7.6 9.0 10.5 12.5 12.3 11.3 10.7 7.8 5.6

4.8 6.1 7.3 9.3 11.3 13.6 16.1 15.6 14.4 14.0 9.9 6.9

5.8 7.6 13.4 15.7 24.0 25.2 25.1 21.9 27.4 38.6 31.5 25.0

21.2 22.2 28.0 31.3 44.6 49.0 50.6 42.6 42.6 47.1 32.0 22.4

2009 1 2 3 4 5

3.7 4.1 3.9 3.6 2.7

3.9 5.2 5.8 5.2 3.3

3.7 3.4 2.7 2.6 2.3

5.2 5.2 4.5 4.2 3.9

4.7 4.4 3.5 1.5 -1.3

5.7 5.5 4.3 1.6 -1.9

18.6 22.9 17.4 7.7 -4.1

16.7 18.0 10.6 -1.8 -13.9

Source: The Bank of Korea

Economic Bulletin

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 2007 2008

24,216 24,347

23,433 23,577

4,014 3,963

17,679 17,906

3.2 3.2

15,970 16,206

8,620 9,007

5,172 5,079

2,178 2,121

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

23,738 23,703 24,114 24,495 24,692 24,727 24,673 24,380 24,456 24,582 24,566 24,032

22,964 22,884 23,305 23,711 23,939 23,963 23,903 23,617 23,734 23,847 23,816 23,245

4,022 4,017 3,999 4,001 3,987 3,993 3,975 3,899 3,928 3,945 3,897 3,888

17,651 17,510 17,732 17,929 18,046 18,067 18,088 17,872 17,951 18,005 18,086 17,935

3.3 3.5 3.4 3.2 3.0 3.1 3.1 3.1 3.0 3.0 3.1 3.3

16,032 15,836 15,993 16,258 16,405 16,385 16,363 16,104 16,221 16,314 16,377 16,189

8,815 8,804 8,898 8,894 9,010 9,039 9,054 9,107 9,142 9,138 9,111 9,068

5,115 5,055 5,023 5,127 5,165 5,132 5,163 4,970 5,015 5,034 5,071 5,082

2,102 1,977 2,073 2,238 2,231 2,214 2,146 2,027 2,064 2,142 2,195 2,040

2009 1 2 3 4 5

23,709 23,667 24,062 24,456 24,658

22,861 22,742 23,110 23,524 23,720

3,895 3,842 3,813 3,846 3,846

17,663 17,539 17,701 17,899 18,016

3.6 3.9 4.0 3.8 3.8

16,053 15,953 16,076 16,353 16,484

9,102 9,194 9,174 9,227 9,316

4,982 4,862 4,941 5,051 5,076

1,969 1,897 1,961 2,076 2,092

Y-o-Y change (%) 2007 2008

1.0 0.5

1.2 0.6

-1.0 -1.3

2.2 1.3

2.7 1.5

5.1 4.5

0.6 -1.8

-1.2 -2.6

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

0.7 0.7 0.6 0.7 0.6 0.5 0.5 0.7 0.5 0.4 0.4 0.2

1.0 0.9 0.8 0.8 0.8 0.6 0.6 0.7 0.5 0.4 0.3 -0.1

-0.6 -0.3 -0.4 -0.6 -0.8 -1.1 -1.2 -1.2 -1.6 -2.3 -2.2 -3.3

1.8 1.6 1.4 1.4 1.5 1.4 1.3 1.3 1.1 1.2 0.7 0.6

2.4 1.9 1.7 1.8 1.9 1.6 1.5 1.4 1.0 1.0 1.0 0.5

5.2 4.8 5.5 5.2 5.6 4.9 4.4 3.9 3.6 3.5 3.6 3.6

-1.2 -1.4 -3.2 -2.1 -1.8 -1.6 -1.7 -1.5 -1.7 -1.7 -2.0 -1.8

0.2 -1.9 -1.8 -1.7 -3.2 -3.3 -2.4 -2.3 -3.2 -2.8 -2.5 -6.3

2009 1 2 3 4 5

-0.1 -0.2 -0.2 -0.2 -0.1

-0.4 -0.6 -0.8 -0.8 -0.9

-3.2 -4.4 -4.7 -3.9 -3.5

0.1 0.2 -0.2 -0.2 -0.2

0.1 0.7 0.5 0.6 0.5

3.3 4.4 3.1 3.7 3.4

-2.6 -3.8 -1.6 -1.5 -1.7

-6.3 -4.1 -5.4 -7.2 -6.2

Source: Korea National Statistical Office

June 2009

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)

2005 1 2 3 4 5 6 7 8 9 10 11 12

3.3 3.3 3.3 3.3 3.3 3.3 3.3 3.3 3.3 3.4 3.5 3.7

3.5 3.6 3.6 3.5 3.5 3.5 3.5 3.5 3.7 3.9 4.0 4.0

4.1 4.6 4.5 4.3 4.1 4.2 4.5 4.8 4.9 5.2 5.5 5.5

3.7 4.2 4.0 3.9 3.7 3.8 4.1 4.3 4.5 4.8 5.1 5.1

3.9 4.5 4.3 4.1 3.9 4.0 4.4 4.7 4.8 5.1 5.4 5.3

932.70 1,011.40 965.70 911.30 970.20 1,008.20 1,111.30 1,083.30 1,221.00 1,158.10 1,297.40 1,379.40

2006 1 2 3 4 5 6 7 8 9 10 11 12

3.7 3.9 4.0 4.0 4.0 4.2 4.2 4.4 4.5 4.5 4.5 4.5

4.2 4.3 4.3 4.3 4.4 4.5 4.6 4.7 4.6 4.6 4.6 4.8

5.5 5.3 5.3 5.2 5.1 5.2 5.2 5.1 5.0 4.9 5.1 5.2

5.0 4.9 4.9 5.0 4.8 4.9 4.9 4.8 4.7 4.6 4.7 4.8

5.3 5.0 5.1 5.2 4.9 5.0 5.0 4.8 4.8 4.7 4.8 4.9

1,399.80 1,371.60 1,359.60 1,419.70 1,371.70 1,295.70 1,297.80 1,352.70 1,371.40 1,364.60 1,432.20 1,434.50

2007 1 2 3 4 5 6 7 8 9 10 11 12

4.6 4.6 4.6 4.7 4.6 4.5 4.7 4.9 5.0 5.0 5.0 5.0

4.9 5.0 4.9 5.0 5.0 5.0 5.1 5.2 5.3 5.3 5.4 5.7

5.3 5.3 5.2 5.3 5.5 5.6 5.8 5.7 5.9 6.0 6.2 6.7

5.0 4.9 4.8 4.9 5.1 5.2 5.4 5.3 5.4 5.4 5.5 5.9

5.0 4.9 4.8 5.0 5.1 5.4 5.4 5.3 5.4 5.5 5.6 5.9

1,360.20 1,417.30 1,452.60 1,542.24 1,700.91 1,743.60 1,933.27 1,873.24 1,946.48 2,064.95 1,906.00 1,897.10

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

5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.2 5.2 4.9 4.0 3.3

5.8 5.3 5.3 5.4 5.4 5.4 5.5 5.8 5.8 6.0 5.6 4.7

6.6 6.3 6.1 5.9 6.2 6.7 7.0 7.1 7.5 8.0 8.6 8.4

5.4 5.1 5.2 5.0 5.3 5.7 6.0 5.8 5.8 5.1 5.0 4.0

5.5 5.1 5.2 5.0 5.4 5.8 6.0 5.8 5.8 5.2 5.2 4.3

1,624.68 1,711.62 1,703.99 1,825.47 1,852.02 1,674.92 1,594.67 1,474.24 1,448.06 1,113.06 1,076.07 1,124.47

2009 1 2 3 4 5

2.4 2.1 1.8 1.8 1.9

3.2 2.7 2.5 2.4 2.4

7.3 7.1 6.1 5.7 5.2

3.4 3.8 3.7 3.8 3.8

4.0 4.6 4.5 4.4 4.5

1,162.11 1,063.03 1,206.26 1,369.40 1,395.89

Source: The Bank of Korea

Economic Bulletin

14. Monetary indicators See graph 9-5 (period average)

Period

(billion won)

Reserve money

2007

48,543.7

312,832.3

1,197,094.8

1,603,516.0

2008

52,272.8

307,273.6

1,367,713.4

1,794,841.2

2008 1

50,260.5

305,868.0

1,286,407.8

1,711,196.8

52,563.7

304,580.7

1,309,161.7

1,726,407.2

49,571.5

299,792.8

1,324,032.7

1,743,481.7

50,683.6

298,474.4

1,339,434.9

1,762,945.3

50,502.5

304,239.8

1,356,612.9

1,782,721.1

51,274.4

305,514.3

1,369,728.1

1,798,774.9

50,600.6

306,584.4

1,378,914.3

1,801,540.6

51,981.0

304,538.7

1,386,101.1

1,810,535.1

53,303.9

307,067.8

1,395,719.2

1,831,313.4

52,976.5

310,565.5

1,403,984.2

1,845,717.7

54,254.5

316,330.9

1,426,165.1

1,859,348.8

59,300.7

323,725.9

1,436,298.3

1,864,111.6

2009 1

64,040.6

331,358.0

1,440,275.8

1,868,843.3

63,061.7

334,521.7

1,457,931.3

1,879,102.7

65,669.5

342,777.0

1,470,443.1

1,889,388.6

61,379.9

350,446.0

1,482,009.7

1,897,923.7

Y-o-Y change (%) 2007

16.5

-5.2

11.2

10.2

2008

7.7

-1.8

14.3

11.9

2008 1

5.0

-13.5

12.5

11.4

6.2

-13.2

13.4

11.6

1.3

-10.6

13.9

11.9

6.7

-2.3

14.9

12.7

5.0

1.0

15.8

13.1

7.0

1.0

15.1

12.7

6.5

1.4

14.8

12.1

8.7

2.2

14.7

11.8

9.1

2.7

14.5

12.2

7.3

4.2

14.2

11.9

11.1

5.5

14.0

11.4

17.8

5.2

13.1

10.4

2009 1

27.4

8.3

12.0

9.2

20.0

9.8

11.4

8.8

32.5

14.3

11.1

8.4

21.1

17.4

10.6

7.7

P: Preliminary Source: The Bank of Korea

June 2009

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

₩ /US$

₩ /100￥

₩ /Euro

Period End-period

Average

End-period

Average

End-period

Average

2007 2008

938.2 1,257.5

929.2 1,102.6

833.3 1,393.9

789.8 1,076.6

1,381.3 1,776.2

1,272.7 1,606.8

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

943.9 937.3 991.7 999.7 1,031.4 1,043.4 1,008.5 1,081.8 1,187.7 1,291.4 1,482.7 1,257.5

942.4 944.7 979.9 986.7 1,036.7 1,029.3 1,019.1 1,041.5 1,130.4 1,326.9 1,390.1 1,373.8

889.1 889.7 1,000.2 961.8 977.0 981.8 932.9 987.9 1,144.2 1,306.0 1,553.8 1,393.9

872.9 880.6 972.3 962.4 994.2 963.0 954.2 953.0 1,060.6 1,327.1 1,435.1 1,503.3

1,402.3 1,423.5 1,565.0 1,556.2 1,599.6 1,647.1 1,571.0 1,590.3 1,707.2 1,664.4 1,912.6 1,776.2

1,386.2 1,395.4 1,519.5 1,555.1 1,614.6 1,601.7 1,606.4 1,561.6 1,627.6 1,765.3 1,768.9 1,846.1

2009 1 2 3 4 5

1,368.5 1,516.4 1,377.1 1,348.0 1,272.9

1,346.1 1,429.5 1,462.0 1,341.9 1,258.7

1,521.0 1,541.1 1,414.8 1,382.9 1,314.1

1,487.2 1,546.1 1,495.7 1,356.2 1,304.5

1,768.7 1,930.1 1,816.4 1,786.8 1,772.7

1,793.8 1,829.9 1,904.0 1,771.6 1,719.1

Y-o-Y change (%) 2007 2008

0.9 34.0

-2.8 18.7

6.6 67.3

-3.9 36.3

-13.0 28.6

6.1 26.2

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

0.3 -0.1 5.5 7.6 10.9 12.6 9.2 15.1 29.0 42.3 59.5 34.0

0.6 0.8 3.9 5.9 11.7 10.9 10.9 11.5 21.2 44.9 51.6 47.7

15.0 12.1 25.5 23.6 27.8 30.5 20.4 22.0 43.6 65.1 83.6 67.3

12.2 13.4 20.8 22.8 29.4 27.2 26.3 19.2 30.8 67.8 73.7 81.5

14.9 14.6 24.8 22.8 28.1 32.2 24.0 24.0 31.0 27.1 39.4 28.6

13.9 13.9 21.6 23.6 28.7 28.7 27.5 22.7 26.1 35.5 31.5 36.2

2009 1 2 3 4 5

45.0 61.8 38.9 34.8 23.4

42.8 51.3 49.2 36.0 21.4

71.1 73.2 41.5 43.8 34.5

70.4 75.6 53.8 40.9 31.2

26.1 35.6 16.1 14.8 10.8

29.4 31.1 25.3 13.9 6.5

Source: The Bank of Korea

Economic Bulletin

Editor-in-Chief Park, Chul-Kyu (MOSF) Editorial Board Kim, Young-Min (MOSF) Kim, Dong-Yule (KDI) Lee, In-Sook (KDI) Coordinators Kim, Dae-Hyun (MOSF) Kang, Ji-Eun (KDI) Editors Kim, Sun-Young (MOSF) Lim, Keun-Hyuk (MOSF) Cho, Hyun-Joo (KDI)

Useful Internet Websites Economy-related Websites Recommended

Ministry of Strategy and Finance http://english.mosf.go.kr Ministry of Knowledge Economy http://www.mke.go.kr/language/eng Financial Services Commission http://www.fsc.go.kr/eng Financial Supervisory Service http://english.fss.or.kr Fair Trade Commission http://www.ftc.go.kr/eng Ministry of Labor http://english.molab.go.kr/english The Bank of Korea http://www.bok.or.kr Korea National Statistical Office http://www.nso.go.kr/eng2006