201102

Page 1


Vol. 33 | No. 2

Republic of Korea

Economic Bulletin The Green Book : Current Economic Trends Overview

3

1. Global economy

4

2. Private consumption

8

3. Facility investment

12

4. Construction investment

14

5. Exports and imports

16

6. Mining and manufacturing production

18

7. Service sector activity

20

8. Employment

22

9. Financial markets 9.1 Stock market 9.2 Exchange rate 9.3 Bond market 9.4 Money supply & money market

26

10. Balance of payments

30

11. Prices and international commodity prices 11.1 Prices 11.2 International oil and commodity prices

32

12. Real estate market 12.1 Housing market 12.2 Land market

36

13. Composite indices of business cycle indicators

40

Economic News Briefing

42

Statistical Appendices

47



The Green Book Current Economic Trends Overview Korea’s real economy continued to improve backed by exports and domestic demand, although rising oil prices and the outbreak of foot-and-mouth disease affected supply and led to inflation. Mining and manufacturing production in December accelerated a month-on-month rise in line with brisk semiconductors and automobiles, while service output improved amid recovering domestic demand even though an unusual cold spell and foot-and-mouth disease negatively affected wholsale and retail sales. Consumer goods sales posted a month-on-month decrease in December, as the sales of durable and non-durable goods declined due to rising prices. Facilities investment slightly climbed for the second consecutive month in December, thanks to machinery investment recovering from a recent slump. Construction completed rose at a faster pace, as SOC budget spending increased at the end of the year. Although imports soared due to rising oil prices and increasing seasonal energy demand, the trade balance stayed in the black in January helped by growing vessel exports. Employment continued to improve in December, led by the private sector, with the total number of workers hired gaining more than 400,000 and the employment rate rising from a month earlier. The consumer price in January 2011 posted a 4.1 percent increase, as the prices of agricultural, livestock and fishery products jumped along with those of oil and processed food products. Core consumer prices, although remaining stable at the 2.0 percent-range, rose at a faster rate compared with the previous month due to increasing service fees. In January stock prices rose and foreign exchange rates fell, amid expectations of both global and domestic economic recovery, but the upward trend slowed down affected by the unrest in Egypt. Housing prices continued moderate recovery in the Seoul metropolitan area in January, while rent soared due to seasonal demand, particularly in areas with prestigious schools. To sum up, although the global economy has recovered at a faster pace with the US economy posting better-than-expected performance, there are still uncertainties as fiscal situations in major economies aggravate, inflation worries in emerging countries continue, and unrest in the Middle East countries may surface. The Korean government will go on with macroeconomic policies which facilitate sustainable growth and curb inflation, while continuing efforts to reform the economy strong enough to absorb internal and external risks. On the other hand, to ensure supply the government will examine the implementation of anti-inflation measures announced on January 13 and come up with supplementary ones to them if necessary. Economic Bulletin

3


1. Global economy The global economy continued a recovering track, as major economies such as the US and China posted better-than-expected performance in the fourth quarter of 2010. The IMF revised up the 2011 global economic growth outlook from 4.2 percent to 4.4 percent on the basis of accelerating US economic recovery and emerging countries’ steady growth. However, there are growing uncertainties in the emerging economies, as international commodity prices have been on the rise amid the unrest in Egypt.

US

US real GDP in the fourth quarter of 2010 rose 3.2 percent (advanced, annualized q-o-q), helped by increasing private consumption and net exports. In December, while retail sales slowed down an increase month-on-month, up 0.6 percent, industrial production accelerated a rise to 0.9 percent, and the ISM manufacturing index improved. ISM manufacturing index (base=50) 55.1 (Jul 2010)

55.2 (Aug)

55.3 (Sep)

56.9 (Oct)

58.2 (Nov)

58.5 (Dec)

60.8 (Jan 2011)

In December, both new and existing home sales increased month-on-month by 17.5 percent and 12.3 percent, respectively, while the S&P/Case-Shiller Home Price Index fell for the third consecutive month. Despite a month-on-month decline in the unemployment rate by 0.4 percentage points to 9.0 percent, the number of non-farm payrolls slowed down an increase, showing the modestly recovering job market. The Federal Open Market Committee reconfirmed on January 27, 2011 that it would carry out QE2 of US$ 600 billion bond buying as planned, as it assessed the economic recovery, although steady, as not strong enough to improve the employment situation. (Percentage change from previous period) 2009

20111

20101

Annual

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Dec

Jan

-2.6

1.6

5.0

2.9

3.7

1.7

2.6

3.2

-

-

-1.2

2.0

0.9

1.8

1.9

2.2

2.4

4.4

-

-

- Corporate fixed investment

-17.1

-1.7

-1.4

5.5

7.8

17.2

10.0

4.4

-

-

- Construction investment for housing

-22.9

10.6

-0.8

-3.0

-12.3

25.7

-27.3

3.4

-

-

Industrial production

-9.3

2.0

1.7

5.7

1.8

1.7

1.6

0.6

0.9

-

Retail sales

-6.4

1.9

1.5

6.6

2.3

1.1

0.8

3.3

0.6

-

5.4

10.5

13.1

-4.7

-13.9

8.4

-25.3

15.4

12.3

-

New non-farm payroll employment (thousand)3

-422

-256

-135

76

39

181

-46

128

121

36

Consumer prices

-0.3

0.6

0.6

1.6

0.24

-0.4

0.4

0.6

0.5

-

Real GDP

2

- Personal consumption expenditure

Existing home sales

1. Preliminary 2. Annualized rate (%) 3. Monthly average Source: US Department of Commerce

4

February 2011


1-1

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

1-2

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

1-3

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

Economic Bulletin

5


China

China’s economy, despite slow-down in exports, grew 9.8 percent in the fourth quarter of 2010 thanks to increasing domestic demand, and achieved annual economic growth of 10.3 percent in 2010. Although prices and the housing price decelerated an increase, the Chinese government raised banks’ reserve requirement ratio on January 20 in line with continuing worries over inflation due to liquidity expansion. M2 growth (y-o-y, %) 17.6 (Jul 2010)

19.2 (Aug)

19.0 (Sep)

19.3 (Oct)

19.5 (Nov)

19.7 (Dec)

(Percentage change from same period in previous year) 2009 Annual Real GDP

20101

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Nov

Dec

9.1

9.1

10.7

10.3

11.9

10.3

9.6

9.8

-

-

Industrial production

11.0

12.4

18.0

15.7

19.6

17.6

13.5

13.3

13.3

13.5

Fixed asset investment (accumulated)

30.5

33.3

30.5

24.5

26.4

25.5

24.5

24.5

24.9

24.5

Retail sales

15.5

15.4

16.9

18.4

17.9

18.5

18.4

18.8

18.7

19.1

Exports

-16.0

-20.3

0.2

31.3

28.7

40.9

32.5

25.2

34.9

17.9

Consumer prices

-0.7

-1.3

0.7

3.3

2.2

2.9

3.5

4.7

5.1

4.6

Producer prices

-5.4

-7.7

-2.1

5.5

5.2

6.8

4.5

5.7

6.1

5.9

1. Preliminary Source: China National Bureau of Statistics

Japan

Japan’s economy showed signs of picking up, as export growth speeded up in November and industrial production posted an increase of 11 month high in December. Japan’s Cabinet Office upgraded its economic assessment on January 21, 2011 for the first time in seven months from the economy “being at standstill” to “some movements toward a pickup being seen”. (Percentage change from previous period) 2009

Real GDP Industrial and mining production Retail sales (y-o-y, %) Exports (y-o-y, %) Consumer prices (y-o-y, %)

20101

Annual

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Dec

-6.3

-0.3

1.4

-

1.7

0.7

1.1

-

-

-21.8

5.3

5.9

16.0

7.0

1.5

-1.8

-1.6

3.1

-2.3

-1.9

-0.7

2.5

3.8

3.7

3.2

-0.4

-2.1

-34.2

-35.5

-8.7

-

44.8

35.2

18.8

-

-

-1.4

-2.2

-2.0

-0.7

-1.2

-0.9

-0.8

0.1

0.0

1. Preliminary Source: Japan’s Statistics Bureau and Statistics Centre

Eurozone

Eurozone’s economy continued steady recovery, as worries over the European fiscal crisis eased with the successful bond sales by Portugal and the European Financial Stability Facility (EFSF). At the EU finance ministers’ meeting between January 17 and 18, EU finance ministers agreed that they wanted tougher stress tests for the region’s banks, and postponed decisions on recapitalizing the EFSF. (Percentage change from previous period) 2009

Real GDP Industrial production Retail sales Exports (y-o-y, %) Consumer prices (y-o-y, %) 1. Preliminary Source: Eurostat

6

February 2011

20101

Annual

Q3

Q4

Annual

Q1

Q2

Q3

Q4

-4.0

0.4

0.2

-

0.4

1.0

0.3

-

-

-

-14.8

2.8

1.1

-

2.4

2.4

1.1

-

0.8

1.3

Nov

Dec

-2.4

-0.3

0.4

0.7

0.6

0.0

0.4

-0.6

-0.3

-0.6

-18.1

-18.7

-9.43

-

12.9

22.3

22.7

-

24.4

-

0.3

-0.4

0.4

1.6

1.1

1.5

1.7

2.0

1.9

2.2


1-4

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

1-5

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

1-6

Eurozone GDP growth and industrial production Source: Eurostat

Economic Bulletin

7


2. Private consumption Private consumption (advanced estimates of GDP) increased 0.3 percent quarter-on-quarter and 3.2 percent year-on-year in the fourth quarter of 2010. (Percentage change from same period in previous year) 2009

Private consumption

2

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

2010 1

Annual

Q1

Q2

Q3

Q4

Annual

Q1

Q2

Q3

Q4

0.2

-4.4

-1.0

0.7

5.8

4.1

6.3

3.7

3.3

3.2

-

0.3

3.3

1.7

0.4

-

0.7

0.8

1.3

0.3

3. Percentage change from previous period

Consumer goods sales in December 2010 declined 1.0 percent month-on-month, as the sales of durable and non-durable goods shifted to a decrease, the former from a 6.5 percent increase to a 2.5 percent drop, the latter from a 3.0 rise to a 2.0 percent fall. On a month-on-month basis, consumer goods sales, despite brisk semi-durable goods sales such as clothing (up 4.2%), fell 1.0 percent, as durable (down 2.5%) and non-durable (down 2.0%) goods sales dropped due to a high base effect and rising petroleum product prices. On a year-on-year basis, the index rose 4.3 percent, thanks to strong sales of semi-durable goods such as clothing (up 13.0%), despite slowing down non-durable goods sales (up 0.2%). (Percentage change from same period in previous year) 2009

Consumer goods sales (Seasonally adjusted)

2

- Durable goods3 ăƒťAutomobiles - Semi-durable goods - Non-durable goods

5

4

2010 1

Annual

Q1

Q2

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Nov

Dec

2.6

-4.7

1.5

2.8

10.8

6.7

9.9

4.9

7.3

5.2

7.0

4.3

-

1.0

5.1

0.3

4.1

-

0.5

0.0

2.8

1.5

2.9

-1.0

8.1

-11.9

5.7

7.9

33.9

14.7

29.5

5.4

16.7

10.7

12.3

6.1

21.8

-20.6

20.1

24.1

76.9

11.1

48.6

-2.1

12.0

0.1

4.8

-8.7

0.3

-1.5

-0.6

-0.7

3.4

7.4

2.7

6.9

7.2

11.9

10.2

13.0

1.2

-1.4

0.5

1.9

4.1

2.2

3.3

3.5

2.9

-0.6

2.7

0.2

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 goods: Food, medicine, cosmetics, fuel, tobaccos, etc. Source: Statistics Korea

Sales at specialized retailers (down 2.3%) posted a month-on-month decline, while those at department stores (up 0.1%) and large discounters (up 0.6%) edged up. On a year-on-year basis, sales at department stores (up 10.2%) jumped, while those at large discounters (up 1.6%) and specialized retailers (up 2.4%) slightly improved. (Percentage change from same period in previous year) 2010 1

2009 Annual

Q1

- Department stores

3.3

-0.8

- Large discounters

-2.0

-4.4

2.9

-6.6

2.6

- Specialized retailers2

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Nov

Dec

0.4

4.2

9.1

9.7

9.0

10.4

8.0

11.1

10.9

10.2

-2.9

-3.4

3.2

4.4

5.9

3.7

7.4

0.2

0.5

1.6

3.5

12.6

5.6

9.7

1.7

7.0

4.2

6.9

2.4

Q2

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

8

February 2011


2-1

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

2-2

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

2-3

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

Economic Bulletin

9


Consumer goods sales is projected to continue an upward trend given increasing real purchasing power in line with a rise in the number of workers hired, steadily improving consumer sentiment, and positive advanced estimates of indicators such as store sales. The number of workers hired has continued to climb with wage increases, leading to strong real purchasing power. Household income (y-o-y, %) -0.7 (Q3 2009)

4.9 (Q4)

7.3 (Q1, 2010)

7.7 (Q2)

6.1 (Q3)

Employment (y-o-y, thousand) 473 (Jul 2010)

386 (Aug)

249 (Sep)

316 (Oct)

303 (Nov)

455 (Dec)

Although the consumer sentiment index slightly declined for two months in a row, it had been well above the base, 100, which reflects positive attitudes of the consumers towards the economy. Consumer Sentiment Index (CSI, base=100) 110 (Aug 2010)

109 (Sep)

108 (Oct)

110 (Nov)

109 (Dec)

108 (Jan 2011)

Domestic credit card spending posted steady growth, while store sales such as those at department stores and discounters soared along with consumer goods imports. Gasoline sales rose at a slow rate, due to cold spells and frequent snowfalls. Value of credit card use (y-o-y, %) 17.2 (Aug 2010)

10.6 (Sep)

19.5 (Oct)

16.0 (Nov)

14.5 (Dec)

16.9 (Jan 2011)

Department store sales (y-o-y, %) 8.5 (Aug 2010)

6.4 (Sep)

13.3 (Oct)

10.1 (Nov)

11.6 (Dec)

23.1 (Jan 2011)

Large discounter sales (y-o-y, %) 3.9 (Aug 2010)

18.0 (Sep)

0.0 (Oct)

1.7 (Nov)

2.9 (Dec)

22.9 (Jan 2011)

Domestic sales of gasoline (y-o-y, %) 8.6 (Aug 2010)

10.5 (Sep)

-0.7 (Oct)

11.6 (Nov)

-0.6 (Dec)

2.3 (Jan 2011)

Consumer goods imports (y-o-y, %) 33.9 (Aug 2010)

17.4 (Sep)

34.0 (Oct)

37.2 (Nov)

17.6 (Dec)

37.5 (Jan 2011)

Source: Ministry of Knowledge Economy The Credit Finance Association Korea National Oil Corporation The Korea Customs Service Ministry of Strategy and Finance (for January data)

It is likely that consumer spending will grow at a limited pace given unstable raw material and agricultural & livestock product prices, the former affected by the unrest in Egypt, and the latter by spreading foot-and-mouth disease and avian influenza. Consumer prices (y-o-y, %) 2.6 (Aug 2010)

3.6 (Sep)

4.1 (Oct)

3.3 (Nov)

3.5 (Dec)

4.1 (Jan 2011)

Dubai crude (US$/barrel) 74.2 (Aug 2010)

10

February 2011

75.2 (Sep)

80.3 (Oct)

83.6 (Nov)

88.9 (Dec)

92.4 (Jan 2011)


2-4

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

2-5

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

2-6

Consumer sentiment index Source: The Bank of Korea

Economic Bulletin

11


3. Facility investment Facility investment (advanced estimates of GDP) in the fourth quarter of 2010 posted a quarter-on-quarter decrease of 1.6 percent and a year-on-year gain of 16.0 percent. (Percentage change from same period in previous year) 2008

Facility investment

2

(Seasonally adjusted)

3

- Machinery - Transportation equipment 1. Preliminary 2. National accounts Source: The Bank of Korea

2009

20101

Annual

Annual

Q3

Q4

Annual

Q1

Q2

Q3

Q4

-1.0

-9.1

-7.0

13.3

24.5

29.9

30.2

24.3

16.0

-

-

10.8

5.3

-

2.4

9.1

5.5

-1.6

-1.8

-13.0

-14.8

10.0

-

32.5

38.7

36.6

-

1.8

4.7

22.9

24.2

-

19.4

4.8

-11.2

-

3. Percentage change from previous period

Despite decreased investment in transportation equipment, in particular other transportation equipment, facility investment in December 2010 rose 0.2 percent month-onmonth, as machinery investment turned to an increase for the first time in four months. On a year-on-year basis, the index fell 1.2 percent due to a base effect from a year ago, when it posted a 20.8 percent spike. (Percentage change from same period in previous year) 2008

2009

2010 1

Annual

Annual

Q4

Annual

Q3

0.8

-8.2

10.0

19.9

27.6

-

-

12.1

-

7.0

- Machinery

0.6

-12.8

8.7

25.1

36.8

- Transportation equipment

1.1

11.7

15.0

2.3

-13.8

-11.8

20.0

-

-

-9.9

5.0

61.7

-15.5

- Machinery imports Facility investment adjustment pressure3

Facility investment (Seasonally adjusted)2

Domestic machinery orders (Seasonally adjusted)2 - Public - Private

Oct

Nov

Dec

4.3

9.7

5.4

-1.2

-10.0

-9.7

0.2

0.2

5.5

13.2

5.1

-0.5

-0.8

0.0

-2.6

6.1

-3.8

10.9

-0.7

11.3

11.4

-14.2

41.0

-

-0.8

-5.4

-15.9

-3.4

42.4

-27.2

-37.6

-72.2

34.0

20.8

-76.5

232.8

-19.9

35.2

21.6

21.9

7.4

10.8

3.6

7.8

6.4

-16.6

7.2

40.4

39.9

26.3

33.0

21.4

25.4

-1.7

-4.0

12.8

11.2

5.7

5.27

7.4

4.6

3.9

Q4

1. Preliminary 2. Percentage change from previous period 3. Production growth rate minus production capacity growth rate in the manufacturing sector (%p) Sources: Statistics Korea, the Korea International Trade Association (machinery imports data)

Facility investment, despite recent slowdown, is expected to maintain an upward momentum given rising exports in major industries and positive investment sentiment.

2010

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

12

February 2011

2011

Sep

Oct

Nov

Dec

Jan

106

105

102

103

103


3-1

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

3-2

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

3-3

Machinery imports Source: Korea International Trade Association (KITA)

Economic Bulletin

13


4. Construction investment Construction investment (advanced estimates of GDP) in the fourth quarter of 2010 rose 4.5 percent quarter-on-quarter, while falling 4.7 percent year-on-year. (Percentage change from same period in previous year) 2008

2009

Annual

Annual

-2.8

4.4

-

-

- Building construction

-4.6

-1.8

- Civil engineering works

-0.2

13.3

Construction investment

2

(Seasonally adjusted)3

20101 Q4

Annual

Q1

Q2

Q3

Q4

4.4

5.0

-2.3

2.3

-2.9

-2.3

-4.7

-0.7

-0.1

-

1.3

-3.6

1.3

-4.5

1.2

2.5

-

1.7

-6.3

-9.7

-

9.7

7.5

-

3.1

1.1

8.5

-

Q3

1. Preliminary 2. National accounts 3. Percentage change from previous period Source: The Bank of Korea

Construction completed (constant value) in December 2010, while dropping 2.9 percent year-on-year, posted a month-on-month rise of 8.0 percent, as both building construction and civil engineering works increased. (Percentage change from same period in previous year) 2008

Construction completed(constant value) (Seasonally adjusted)

2

- Building construction - Civil engineering works Construction orders (current value) (Seasonally adjusted)

2

- Building construction - Civil engineering works Building permit area

2010 1

2009

Annual

Annual

Q4

Annual

Q3

Q4

Oct

Nov

Dec

-8.1

1.7

5.0

-3.4

-3.8

-6.7

-8.9

-9.4

-2.9

-

-

-1.4

-

-2.9

-9.1

-9.7

3.2

8.0

-10.3

-6.5

0.7

-8.2

-11.2

-11.2

-13.0

-13.4

-7.5

-4.0

16.2

11.3

3.4

8.1

-0.9

-2.7

-3.7

2.3

-7.6

3.0

11.6

-19.7

-5.0

-39.8

-59.6

-48.7

-20.8

-

-

19.8

-

-0.2

-39.0

-56.7

56.4

16.1

-15.4

-16.0

17.0

-10.6

-2.5

-45.9

-38.9

-48.8

-46.8

13.5

41.9

3.7

-30.6

-8.7

-29.7

-80.3

-48.5

30.2

-20.1

-12.9

13.1

19.3

-14.3

18.1

15.9

25.6

15.3

1. Preliminary 2. Percentage change from previous period Source: Statistics Korea, the Ministry of Land, Transport and Maritime Affairs

Construction investment is projected to stay in a negative territory, without temporary factors such as end-year budget spending. In 2011, construction investment is likely to be negatively affected by construction orders, a leading indicator, which plunged in 2010 in line with dropping orders of new housing construction and civil engineering works.

14

February 2011


4-1

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

4-2

Construction completed and housing construction Source: Statistics Korea (construction completed) Kookmin Bank (housing construction)

4-3

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

Economic Bulletin

15


5. Exports and imports Exports in January increased 46.0 percent (preliminary) year-on-year to US$44.89 billion, a huge increase from a year ago backed by global economic recovery and a surge in vessel exports that registered a year-on-year gain of 275.1 percent. Both exports and average daily exports posted a month-on-month increase, which is not typical of January when exports fall from the previous month with end-year demand removed. By export category, major items such as petroleum products (up 53.3%t), automobiles (up 48.2%), steel (up 46.3%), and semiconductors (up 23.3%) all posted a year-on-year gain By regional category, exports to both developed countries such as the EU (up 84.5%) and the US (up 36.1%) and emerging countries such as China (up 15.8%) and the ASEAN countries (up 47.0 percent) all soared compared with a year ago. (US$ billion) 2009

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

2010

20111

Annual

Annual

Q1

Q2

Q3

Q4

Nov

Dec

Jan

365.53

466.38

101.08

120.24

116.32

128.75

41.26

44.15

44.89

-13.9

28.3

35.8

33.1

22.7

23.8

21.4

22.6

46.0

1.30

1.70

1.51

1.76

1.72

1.79

1.72

1.80

1.95

323.08

425.21

98.16

105.63

105.70

115.73

38.67

40.06

41.93

-13.9

31.6

37.4

42.8

24.6

24.6

30.9

21.7

32.9

1.30

1.46

0.47

1.54

1.57

1.61

1.61

1.64

1.82

1. Preliminary Source: Korea Customs Service

Imports in January increased 32.9 percent (preliminary) year-on-year to US$41.93 billion. Consumer goods imports rose 37.5 percent with the domestic economy recovering, while raw material imports increased 35.1 percent due to rising international commodities prices. The current account balance in January posted a surplus of US$2.96 billion (preliminary), the first surplus in January since January 2007. (US$ billion) 2009

Trade Balance 1. Preliminary Source: Korea Customs Service

16

February 2011

2010

2010

Annual

Annual

Q1

Q2

Q3

Q4

Nov

Dec

Jan

40.45

41.17

2.93

14.61

10.62

13.02

2.59

4.09

2.96


5-1

Exports (customs clearance basis) Source: Korea Customs Service & Ministry of Knowledge Economy (export and import trend)

5-2

Imports (customs clearance basis) Source: Korea Customs Service & Ministry of Knowledge Economy (export and import trend)

5-3

Trade balance Source: Korea Customs Service & Ministry of Knowledge Economy (export and import trend)

Economic Bulletin

17


6. Mining and manufacturing production Mining and manufacturing production in December 2010 rose 2.8% month-on-month and 9.8% year-on-year thanks to improving manufacturing production, in particular that of semiconductors and automobiles. By business category, manufacturing production in most industries climbed along with semiconductors and parts (up 5.9%), and automobiles (up 6.4%), while there were some exceptions such as non-metallic minerals (down 5.7%) and food production (down 2.1%). A shipment increase (up 2.3%) exceeded that of inventories (up 0.3%), pulling down the manufacturing inventory-shipment ratio for two consecutive months. By business category, the shipments of semiconductors and parts (up 8.8%) and audio-visual communications equipment (up 10.7%) increased month-on-month, while those of refined petroleum products (down 10.1%) and non-metallic minerals (down 8.0%) declined. The inventories of primary metals (up 6.1%) and machinery (up 8.3%) climbed month-on-month, while those of semiconductors and parts (down 6.6%) and audio-visual communications equipment (down 13.1%) fell. The average operation ratio of the manufacturing sector rose 1.6 percentage points from the previous month to 82.5 percent, which is above the average ratio of 78.9 percent from 2005 to 2010. (Percentage change from same period in previous year) 2009 Annual Production (q-o-q, m-o-m)

Mining and manufacturing activity2

20101 Q4

Annual

Q2

Q3

Q3

Oct

Nov

Dec

-

1.3

-

5.0

2.1

-2.9

-4.2

1.5

2.8

(y-o-y)

-0.8

16.2

16.7

19.5

11.9

11.3

13.5

10.7

9.8

- Manufacturing

-0.9

16.8

17.1

20.2

12.2

11.4

13.7

10.9

9.9

7.8

46.3

24.8

27.0

19.9

13.0

12.5

11.3

15.3

∙ICT

3

∙Automobiles

-6.8

14.7

27.4

35.7

16.5

15.2

21.8

12.6

11.9

Shipment

-1.7

12.8

15.0

17.2

11.3

11.5

13.8

11.2

9.7

- Domestic demand

-1.8

12.3

12.6

15.4

8.3

7.4

10.5

8.2

3.7

- Exports

-1.7

13.3

18.5

19.7

15.4

17.3

18.0

15.3

18.6

Inventory

4

Manufacturing Average operation ratio (%) activity Production capacity

-8.0

-8.0

17.1

15.6

18.4

17.1

18.3

16.4

17.1

74.6

78.4

81.8

83.0

82.6

81.0

79.7

80.9

82.5

3.1

4.0

5.9

5.8

6.5

6.2

6.3

6.3

6.0

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

Mining and manufacturing production is expected to stay on an upward track, in line with growing exports and increasing major item production, in particular that of semiconductors and automobiles. Average daily exports (US$ billion) 1.55 (Aug 2010)

1.88 (Sep)

1.84 (Oct)

1.72 (Nov)

1.80 (Dec)

1.95 (Jan 20101)

Automobile production (thousand) 282 (Aug 2010) 1. Preliminary

18

February 2011

339 (Sep)

387 (Oct)

389 (Nov)

397 (Dec)

387 (Jan 20101)


6-1

Industrial production Source: Statistics Korea (industrial activity trend)

6-2

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

6-3

Inventory Source: Statistics Korea (industrial activity trend)

Economic Bulletin

19


7. Service sector activity Although service production has slowed in wholesale & retail sales and hotels & restaurants due to a cold wave and the outbreak of foot-and-mouth disease, service activity in December increased 1.3 percent month-on-month as robust exports and increasing real estate transactions supported transportation services, educational services, and real estate & renting. On a year-on-year basis, despite sluggishness in real estate & renting and professional, scientific & technical services, service activity in December rose 2.1 percent as transportation services and financial & insurance services showed solid growth helped by strong exports. (Percentage change from same period in previous year) Weight Service activity index

100.0

- Wholesale & retail

21.8

2009 Annual Q1

2010 1

Q2

Q3

Q4

1.9

3.7

2.0

-0.3

2.4

0.4

-4.8

Annual Q1 3.7

5.7

Q2

Q3

Q4

4.0

2.3

2.9

Nov Dec 3.8

2.1

-2.2

0.3

5.4

5.5

7.4

5.5

4.9

4.5

6.0

3.9

- Transportation services

9.0

-6.6 -12.7 -10.0

-4.8

1.4

11.9

13.9

13.8

9.7

10.2

7.8

12.3

- Hotels & restaurants

7.7

-1.5

-2.6

-0.6

-2.5

-0.2

1.6

1.5

0.9

1.8

2.0

1.5

0.7

8.4

0.7

-1.4

1.6

1.4

1.8

1.8

1.2

0.4

1.7

3.1

3.8

3.5

15.3

8.0

6.9

10.3

9.0

5.7

4.6

6.5

2.4

1.9

8.3

9.4

8.2

- Real estate & renting

6.3

5.3

-4.2

-2.2

6.7

21.3

-9.0

10.4

- Professional, scientific & technical services

4.8

1.0

-1.7

3.8

0.0

2.0

-1.9

3.1

2.1

-5.2

-6.2

-3.9

-9.5

- Information & communication services - Financial & insurance services

-2.7 -16.2 -24.3 -24.1 -25.5

2.9

-3.0

-4.9

-6.2

-0.8

0.0

7.2

5.4

7.9

7.0

8.2

9.4

7.9

10.8

2.8

9.4

16.5

-3.7

-9.6

1.0

-0.8

1.0

0.0

4.3

6.8

5.7

- Healthcare & social welfare services

6.0

10.4

8.9

8.9

10.4

13.2

9.1

11.5

11.1

8.5

5.3

5.6

4.2

- Entertainment, cultural & sports services

2.9

-0.5

1.4

0.7

0.0

-3.8

-0.2

-3.5

-0.2

-0.2

2.9

0.1

-4.2

- Membership organizations

3.8

-2.4

-3.8

-4.8

-1.4

2.4

4.1

1.3

6.0

5.0

4.0

5.8

1.7

- Sewerage & waste management

0.4

3.7

0.1

9.0

6.0

-0.2

4.9

7.2

5.3

0.2

6.5

4.7

7.8

- Business services - Educational services

1. Preliminary Source: Statistics Korea

Service activity in January is expected to show a gradual increase from the previous month as domestic consumption steadily increases and the Korean stock price index shows strong performance. Meanwhile, service activity is expected to be weighed down by weak construction markets, slowing down facility investment, and the outbreak of foot-and-mouth disease and avian influenza.

20

February 2011


es

usin ty m ess ana sup gem port ent serv & ices Edu cati ona l se rvic es Hea lthc are &s ocia l we Ente serv lfare rtai ices nme nt, c ultu ral & sp Me serv orts & o mbersh ices ther ip o pers rgan ona izat l se ions rvic , re es pair Sew mat erage eria , w ls re aste cove ma ry & nage rem men edi t, acti ation vitie s

Prof

& re ntin g ess iona l , tech scie nica ntif Bus l se ic & ines rvic s fa es cili b

rvic

s

ns

rant

ion

atio

e se

tate

ranc

l es

insu

stau

unic

& re

omm

els

ex

tail

rtat

& re

spo

ale

Tran

oles

&c

Rea

l&

tion

ncia

rma

Fina

Info

Hot

Wh

7-3

l ind

7-2

Tota

7-1 Service industry

Source: Statistics Korea (service industry activity trend)

Wholesale and retail sales

Source: Statistics Korea (service industry activity trend)

December 2010 service industry by business

Source: Statistics Korea (service industry activity trend)

Economic Bulletin

21


8. Employment The number of workers on payroll in December increased by 455,000 from a year earlier, while the employment rate (seasonally adjusted) rose by 0.4 percentage points year-on-year to 58.0 percent. By industry, employment in manufacturing (up 284,000), construction (up 25,000), services (up 154,000) and agriculture, forestry & fishery (up 1,000) climbed. Hiring in manufacturing maintained a high growth rate, rising by more than 0.2 million for the sixth consecutive month. With employment in public administration (down 25,000) decelerating the decline, the service sector continued to increase employment, along with a rise in health & welfare (up 174,000), business assistance (up 98,000), and professional, scientific & technical services (up 57,000). By status of workers, despite a decrease in daily workers (down 41,000) and temporary workers (down 75,000), wage workers (up 599,000) continued to expand growth as the number of regular workers (up 715,000) increased. Non-wage workers (down 144,000) including self-employed workers (down 127,000) continued to decline.

2009 Annual Dec Number of employed (million)

Q1

2010

Q2

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Nov

Dec

23.51 23.23 22.90 23.74 23.75 23.63 23.83 23.04 24.17 24.12 23.99 24.11 23.68

Employment rate (%)

58.6

57.6

57.4

59.3

59.1

58.7

58.7

57.0

59.6

59.3

58.9

59.2

58.0

(seasonally adjusted)

58.6

58.3

58.8

58.6

58.7

58.5

58.7

58.3

58.9

58.9

58.6

58.5

58.8

Employment growth (y-o-y, thousand)

-72

-16 -146 -134

-1

-6

323

132

433

369

358

303

455

(Excluding agriculture, forestry & fishery)

-34

153 -160 -109

24

110

405

296

51.8

414

393

353

454

-16 -163 -151 -143

-49

191

61

172

262

269

284

284

-43 -113 -103 -107

33

-61

44

92

57

50

25

200

- Manufacturing

-126

- Construction

-91

-58

- Services

179

227

38

154

261

313

325

83

80

32

154

- Agriculture, forestry & fishery

-38 -169

14

-25

-25 -116

-82 -164

-85

-45

-35

-50

1

- Wage workers

247

366

73

175

356

385

517

371

623

541

532

511

599

∙Regular workers

383

564

318

313

386

515

697

651

766

671

699

731

715

-8 -136

-5

125

105

-34

-37

42

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

22

261

-26 -114 -187

-158 -191 -108 -133 -155 -235 -146 -243 -185 -104

-53

-33

-75 -41

-319 -382 -220 -309 -357 -391 -194 -239 -189 -172 -174 -207 -144 -259 -265 -197 -286 -276 -279 -118 -106 31

126

-23

-91 -130 -146 -166 -127

24

34

89

181

117

188

207

212

181

227

- Female

-103 -142 -124 -158

-34

-94

142

15

245

163

146

122

228

- 15 to 29

-127

-99 -123

-77

-43

-12

-58

-44

-57

-53

-76

- 30 to 39

-173 -131 -159 -213 -169 -149

-4

-42

-13

21

17

17

15

-12 -212

- 40 to 49

-24

-68

8

-27

-30

-46

29

-21

48

40

50

48

78

- 50 to 59

198

242

193

156

211

230

294

251

342

295

287

274

299

54

-47

23

49

109

37

47

-44

114

57

60

18

139

- 60 or more Source: Statistics Korea

22

February 2011


8-1

Number of employed and employment growth Source: Statistics Korea (employment trend)

8-2

Share of employed by industry Source: Statistics Korea (employment trend)

8-3

Share of employed by status of workers Source: Statistics Korea (employment trend)

Economic Bulletin

23


The number of unemployed persons in December increased by 19,000 year-on-year to 853,000. The unemployment rate (seasonally adjusted) stayed flat at 3.5 percent. By gender, both male unemployment (up 8,000) and female unemployment (up 11,000) increased. By age, unemployment increased in all age brackets except those aged 30 to 39 (down 10,000) and 40 to 49 (down 5,000). The youth unemployment rate rose 0.4 percentage points year-on-year, landing at 8.0 percent.

2009 Annual Dec

2010

Q1

Q2

Q3

Q4

Number of unemployed (thousand)

889

834

908

943

886

817

Unemployment growth (y-o-y, thousand)

119

48

107

176

134

60

31

80

-4

83

116

95

25

- Male

Annual

Q1

Q2

Q3

Q4

Nov

Dec

868

873

808

737

853

222

-75

-13

-10

-82

19

-7

83

-47

-48

-16

-51

8

920 1,130

- Female

40

52

24

60

39

36

38

139

-29

35

6

-30

11

Unemployment rate (%)

3.6

3.5

3.8

3.8

3.6

3.3

3.7

4.7

3.5

3.5

3.3

3.0

3.5

(Seasonally adjusted)

3.6

3.6

3.5

3.9

3.7

3.5

3.7

4.3

3.4

3.6

3.5

3.2

3.6

- 15 to 29

8.1

7.6

8.6

8.0

8.1

7.6

8.0

9.5

7.7

7.6

7.1

6.4

8.0

- 30 to 39

3.6

3.4

3.7

3.9

3.5

3.3

3.5

3.9

3.6

3.5

3.2

3.0

3.4

- 40 to 49

2.4

2.3

2.5

2.6

2.4

2.3

2.5

2.9

2.3

2.5

2.2

2.1

3.2

- 50 to 59

2.5

2.4

2.4

2.7

2.5

2.2

2.5

3.2

2.1

2.3

2.3

2.0

2.4

- 60 or more

1.6

1.9

1.6

1.9

1.6

1.5

2.8

5.8

2.1

2.0

1.9

1.7

1.9

Source: Statistics Korea

The economically inactive population in December was up 12,000 from a year earlier to 16,270,000. Meanwhile, the labor force participation rate (seasonally adjusted) rose 0.4 percentage points year-on-year to 60.1 percent. The number of workers quitting jobs due to housework (up 118,000) and education (up 38,000) increased, while those who quit jobs due to childcare (down 93,000) and rest, timeoff and leisure (down 58,000) decreased.

2009 Annual Dec

Q1

2010

Q2

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Nov

Dec

Economically inactive population (million) 15.70 16.25 16.09 15.35 15.53 15.83 15.84 16.25 15.49 15.66 15.96 15.91 16.27 Labor force participation rate (%)

60.6

59.7

59.7

61.7

61.3

60.7

61.0

59.8

61.8

61.5

60.8

61.0

60.1

(seasonally adjusted)

60.6

60.5

60.9

60.9

61.0

60.6

61.0

61.0

61.0

61.1

60.7

60.5

61.0

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

447

481

514

445

374

456

143

166

146

128

133

257

12

40

-17

78

48

19

15 -125 -118 -126 -149 -107 -103

-93

- Housework

148

330

131

125

100

235

201

237

175

203

189

215

118

- Education

31

-64

90

58

11

-36

12

-74

23

46

55

90

38

- Old age

88

98

52

102

105

92

80

193

59

43

25

49

24

123

107

162

112

94

123

-56 -187

-27

15

-27

4

-58

- Childcare

- Rest Source: Statistics Korea

24

February 2011


8-4

Employment rate Source: Statistics Korea (employment trend)

8-5

Unemployment rate and youth unemployment rate Source: Statistics Korea (employment trend)

8-6

Economically active population Source: Statistics Korea (employment trend)

Economic Bulletin

25


9. Financial market 9.1 Stock market The Korean stock market in January was lifted by the so-called “January effect” at the beginning of the year. In early January, the KOSPI hit a record high, rising beyond 2110-point. The stock market thereafter decelerated an increase due to Japan’s credit rating downgrade, unrest in Egypt, and increasing prospects of China’s further tightening measures. Foreign investors reduced their net-buying of Korean shares in January, purchasing 0.3 trillion won, due to inflation worries of emerging markets and increased redemption for profit taking after the short-term surge in stock prices. (End-period, point, trillion won) KOSPI

KOSDAQ

Dec 2010

Jan 2011

Change

Dec 2010

Jan 2011

Change1

Stock price index

2,051.0

2,069.7

+18.7 (+0.9%)

510.7

521.4

+10.7 (+2.1%)

Market capitalization

1,141.9

1,156.7

+14.8 (+1.3%)

98.0

102.1

+4.1 (+7.5%)

1

Average daily trade value

6.0

7.7

+1.7 (+27.9%)

2.3

2.3

+0.7 (+46.1%)

Foreign stock ownership

32.9

32.5

-0.4 (-1.2%)

10.3

10.4

+0.1 (+1.0%)

1. Change from the end of the previous month

9.2 Exchange rate The won/dollar exchange rate in January decreased 13.3 won to wrap up the month at 1,121.5 won from 1,134.8 won at the end of December. The won/dollar exchange rate fell due to continuing recovery expectations in domestic and foreign economies. However, the decline decelerated due to geopolitical risks posed by the Egyptian crisis at the end of the month. The won/yen exchange rate was up 25.7 won month-on-month as Japanese investors’ appetite for foreign assets increased on expectations of global economic recovery. (End-period) 2006

2007

2008

2009

2010

Dec

Dec

Dec

Dec

Dec

Jan

Change1

Won/Dollar

929.8

936.1

1,259.5

1,164.5

1,134.8

1,121.5

1.2

Won/100Yen

783.4

828.6

1,396.8

1,264.5

1,393.6

1,367.9

1.9

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

26

February 2011

2011


9-1

Stock prices

9-2

Foreign exchange rate (month-end)

9-3

Recent foreign exchange rate

Economic Bulletin

27


9.3 Bond market Treasury bond yields increased in January due to the key interest rate hike and concerns over inflation. Treasury bond yields surged after the Bank of Korea raised the key interest rate by 0.25 percentage points to 2.75 percent on January 13, 2011 to rein in inflation. In addition, foreign investors’ net-selling position on Korean treasury bonds and continuously increasing US Treasury Bond yields contributed to the rise. (End-period) 2006

2007

2008

2009

Dec

Dec

Dec

Dec

Nov

2010 Dec

Jan

2011 Change1

Call rate (1 day)

4.60

5.02

3.02

2.01

2.51

2.51

2.75

+24

CD (91 days)

4.86

5.82

3.93

2.88

2.80

2.80

3.05

+25

Treasury bonds (3 yrs)

4.92

5.74

3.41

4.44

3.19

3.38

3.96

+58

Corporate bonds (3 yrs)

5.29

6.77

7.72

5.56

4.03

4.27

4.75

+48

Treasury bonds (5 yrs)

5.00

5.78

3.77

4.98

3.88

4.08

4.41

+33

1. Basis point changes in December 2010 from the previous month

9.4 Money supply & money market The M2 (monthly average) in November expanded 7.4 percent from a year earlier excluding cash management accounts (CMAs), which were included in M2 since July 2009. Although money supply from overseas sectors increased in line with the current account and capital account surplus, the year-on-year M2 growth fell due to decelerating private credit growth. (Percentage change from same period in previous year, average) 2008 M1

Annual

Q1

Q2

2009 Q3

20104

Q4

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Nov Nov1 11.8

-1.8

-12.4

-0.1

2.1

5.0

16.3

10.8

17.6

18.9

17.8

14.5

10.7

10.8

M2

14.3

13.3

15.3

14.7

13.8

10.3

11.5

10.1

9.9

9.8

9.4

9.5

8.6

7.4 1,680

Lf 3

11.9

11.6

12.8

12.1

11.2

7.9

8.8

7.3

7.8

7.8

8.5

9.1

8.2

7.3 2,146

2

415

1. Balance at end November 2010, trillion won 2. M1 excluding corporate MMFs and individual MMFs while including CMAs 3. Liquidity aggregates of financial institutions (mostly identical with M3) 4. Preliminary

In December, bank deposits as well as asset management company (AMC) deposits decreased affected by rising money demand at the end of the year. Bank deposits significantly accelerated the decline due to the year-end fiscal spending by local governments and the withdrawal of funds by businesses for debt ratio management. Asset management company (AMC) deposits showed a sharp decline due to plummeting money market funds (MMFs) affected by the outflows of treasury surplus and corporate funds at the end of the year. (Monthly change, end-period, trillion won) 2008

2009

2010

Annual

Dec

Annual

Dec

Oct

Nov

Dec

Dec1

Bank deposits

104.3

-8.2

54.8

-8.3

13.7

-2.4

-8.7

1,045

AMC deposits

63.0

12.8

-27.6

-11.1

0.1

0.0

-11.2

315

1. Balance at end December, trillion won

28

February 2011


9-4

Interest rates Source: The Bank of Korea

9-5

Total money supply Source: The Bank of Korea

9-6

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

Economic Bulletin

29


10. Balance of payments Korea’s current account (preliminary) surplus in December expanded from the previous month to US$2.11 billion. The goods account surplus increased to US$3.68 billion from the previous month’s US$3.17 billion driven by an increase in exports amid global economic recovery. The service account deficit rose to US$1.15 billion from the previous month’s deficit of US$300 million as royalties and other service-related payments increased. The primary income account, which posted a substantial deficit in November due to interim dividend payouts made by a few companies, greatly narrowed the deficit to US$30 million from the previous month’s deficit of US$690 million. Meanwhile, the secondary income account deficit increased to US$390 million from US$240 a month earlier. (US$ billion) 2009

2010

Annual

Annual

Q1

Q2

Q3

Q41

Nov

Dec1

Current account

32.79

28.21

0.26

8.86

9.93

9.16

1.93

2.11

- Goods balance

37.87

41.90

4.79

12.24

12.54

12.34

3.17

3.68

- Service balance

-6.64

-11.23

-4.20

-1.87

-2.96

-2.20

-0.30

-1.15

- Income balance

2.28

0.77

0.55

-1.01

1.30

-0.07

-0.69

-0.03

- Current transfers

-0.71

-0.71

-0.87

-0.50

-0.95

-0.91

-0.24

-0.39

1. Preliminary Source: The Bank of Korea

The capital and financial account (preliminary) in December narrowed the outflow to US$340 million, down from the previous month’s outflow of US$2.19 billion. Capital & financial account balance (US$ billion) -0.16 (Q1 2010)

-9.10 (Q2)

-7.68 (Q3); -5.87 (Oct)

-2.19 (Nov)

-0.34 (Dec1)

1. Preliminary

The direct investment account expanded the net outflow to register US$1.61 billion from the previous month’s deficit of US$1.29 billion as locals’ overseas investment increased. The portfolio investment account turned to an outflow of US$ 2.41 billion from the previous month’s inflow of US$2.23 billion as foreign investors sold Korean bonds after the Korean government revived the tax on interest income from Treasury bonds held by foreigners. The financial derivatives account surplus increased to US$510 million from the previous month’s US$110 million as gains from overseas financial derivative transactions increased. The other investment account shifted from the previous month’s net outflow of US$1.49 billion to a net inflow of US$1.27 billion as financial institutions’ borrowing increased. The current account balance in January is expected to fall from the previous month as imports surge due to the rising demand for energy during the winter season and the domestic economic recovery.

30

February 2011


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

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

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

Economic Bulletin

31


11. Prices and international commodity prices 11.1 Prices Consumer prices in January 2011 increased 4.1 percent year-on-year and 0.9 percent month-onmonth. The index rose as prices of agricultural, livestock & fishery products surged due to the spread of foot-and-mouth disease, and those of processed food and oil products rose as a result of higher prices of international commodities such as oil. Core consumer prices, which exclude oil and agricultural products, rose 2.6 percent year-onyear and 0.6 percent month-on-month in January due to a low base effect. Consumer prices of basic necessities, a barometer of perceived consumer prices, were up 4.7 percent compared to the same month of the previous year.

Consumer price inflation 2010

2011

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Month-on-Month (%)

0.4

0.4

0.3

0.5

0.1

-0.2

0.3

0.3

1.1

0.2

-0.6

0.6

0.9

Year-on-Year (%)

3.1

2.7

2.3

2.6

2.7

2.6

2.6

2.6

3.6

4.1

3.3

3.5

4.1

Core consumer prices (y-o-y)

2.1

1.9

1.5

1.5

1.6

1.7

1.7

1.8

1.9

1.9

1.8

2.0

2.6

(m-o-m)

0.1

0.2

0.1

0.2

0.3

0.2

0.2

0.2

0.3

0.0

0.1

0.3

0.6

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

3.8

3.4

2.9

3.2

3.0

2.8

2.7

2.6

4.1

4.8

3.6

3.9

4.7

Source: Statistics Korea

Prices of agricultural, livestock & fishery products increased 3.3 percent month-on-month, as prices of vegetables and livestock products rose due to a cold spell, heavy snow, and widespread damage from foot-and-mouth disease. Prices of agricultural, livestock & fishery products in Jan (m-o-m, %) Pork (15.1), Chinese cabbage (22.2), cucumber (27.4), mackerel (15.7), green onion (12.3), chicken (8.3), apple (7.4), imported beef (5.8), radish (-27.4), green chili (-7.4)

Prices of industrial products surged 3.9 percent month-on-month, led by processed food and oil products, due to a price rise in international commodities such as oil and grains. International oil prices (Dubai crude, US$/barrel) 72.6 (Jul 2010)

74.2 (Aug)

75.2 (Sep)

80.3 (Oct)

83.6 (Nov)

88.9 (Dec)

92.5 (Jan 2011)

Public utility charges rose 0.9 percent month-on-month due to the increase of regional public utility charges and health care fees. Personal service charges also went up (0.6%, mo-m), led by dining out and group travel prices, which were affected by rising income amid economic recovery and inflation expectations.

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

Agricultural, livestock & fishery products

Industrial products

Oil products

Housing rents

Public utility

Personal services

0.9

3.3

1.1

3.9

0.3

0.9

0.6

Contribution (%p)

0.93

0.31

0.34

0.24

0.02

0.14

0.20

Year-on-Year (%)

4.1

17.5

4.3

10.9

2.6

1.1

2.6

Contribution (%p)

4.12

1.49

1.35

0.64

0.24

0.17

0.90

Source: Statistics Korea

32

February 2011


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

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

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

Economic Bulletin

33


11.2. International oil and commodity prices In January 2011, international oil and domestic petroleum product prices continued an upward trend. International oil prices (Dubai crude) rose to more than US$90 per barrel as demand for heating oil surged due to cold spells in Europe, speculative cash flows increased, and geopolitical risks were heightened by the unrest in Egypt. (US$/barrel, period average) 2007

2008

2009

2011

2010

Annual

Annual

Annual

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Dubai crude

68.4

94.3

61.9

72.6

74.2

75.2

80.3

83.6

88.9

92.5

Brent crude

72.8

97.5

61.7

75.7

77.2

77.9

83.2

85.8

91.8

96.8

WTI crude

72.3

99.9

61.9

76.3

76.6

75.3

81.9

84.4

89.2

89.5

Source: Korea National Oil Corporation

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

Although exchange rates stabilized, domestic oil product prices rose with increasing international oil prices. Won/dollar exchange rate (average) 1,123 (Oct 2010)

1,126 (Nov)

1,148 (Dec)

1,120 (Jan 2011) (Won/liter, period average)

2007 Annual

2008 Annual

2009 Annual

2010 Jul

Aug

Sep

Oct

Nov

Dec

2011 Jan

Gasoline prices

1,526

1,692

1,601

1,722

1,716

1,700

1,700

1,716

1,771

1,825

Diesel prices

1,273

1,614

1,397

1,518

1,513

1,499

1,500

1,518

1,570

1,621

Source: Korea National Oil Corporation

International commodity prices continued to rise in January due to decreased production affected by bad weather and strong demand in line with economic recovery. Non-ferrous metal prices rose as supply concerns were raised amid China’s solid demand for nickel and copper. International grain prices rose due to concerns that supply will be disrupted by bad weather in major grain-producing countries such as Argentina and Australia. Prices of non-ferrous metals and grain in Jan (m-o-m, %) Corn (7.3), wheat (3.7), soybean (5.7), raw sugar (3.2), copper (4.8), aluminum (3.7), nickel (6.2), zinc (4.1), lead (5.7), tin (4.8)

Reuters index*

(Period average)

2007

2008

2009

Annual

Annual

Annual

Jul

Aug

Sep

Oct

Nov

Dec

Jan

2,400

2,536

2,079

2,477

2,687

2,765

2,824

2,952

3,119

3,228

* A weighted average index of 17 major commodities Source: KOREAPDS

34

February 2011

2010

2011


11-4 International oil prices Source: Korea National Oil Corporation

11-5 International oil prices (Dubai crude) and import prices Source: Korea National Oil Corporation & Korea Customs Service

11-6 International commodity prices Source: Bloomberg (CRB) & The Bank of Korea (Reuters index) * CRB demonstrates futures price index of 21 commodities listed on the US Commodity Transaction Market, including beans and other crops, crude oil and jewelry.

Economic Bulletin

35


12. Real estate market 12.1 Housing market In January 2011, nationwide apartment sales prices increased 0.6 percent month-on-month. Apartment sales prices in the Seoul metropolitan area posted a slight gain for the second straight month, rising 0.1 percent month-on-month. Apartment sales prices in areas excluding the Seoul metropolitan area showed a continued strong upward trend. The prices in South Gyeongsang Province rose 2.1 percent from the previous month and those in Busan were up 1.8 percent. Apartment prices in 5 metropolitan cities and other cities advanced 1.2 percent and 1.0 percent, respectively.

Nationwide apartment sales prices

(Percentage change from previous period)

2006 2007

2008

Annual Annual

Annual Annual Jan Annual

2009

2010 Jan

2011

Oct

Nov

Dec

Jan

Jan 31 Jan 101 Jan 171 Jan 241

Nationwide

13.8

2.1

2.3

1.6

-0.7

2.5

0.1

0.3

0.5

0.6

0.6

0.13

0.19

0.24 0.23

Seoul

24.1

3.6

3.2

2.6

-0.9

-2.2

0.1

-0.2

-0.1

0.1

0.2

0.05

0.04

0.07 0.07

Gangnam

27.6

0.5

-1.9

3.9

-1.1

-1.8

0.2

-0.2

-0.1

0.1

0.2

0.06

0.06

0.10 0.10

Gangbuk3

19.0

8.3

9.4

0.9

-0.7

-2.7

0.0

-0.2

-0.1

0.0

0.1

0.03

0.01

0.04 0.03

Seoul metropolitan area

24.6

4.0

2.9

0.7

-1.0

-2.9

0.0

-0.2

-0.1

0.1

0.1

0.04

0.05

0.07 0.06

2.1

-0.6

1.0

2.8

-0.4

8.7

0.6

0.4

1.2

1.2

1.2

0.26

0.35

0.43 0.44

2

5 metropolitan cities 1. Weekly trends

2. Upscale area of Southern Seoul

3. Northern Seoul

Source: Kookmin Bank

Nationwide apartment rental prices in January were up 1.1 percent from the previous month. In the Seoul metropolitan area, apartment rental price accelerated an increase, especially in areas with prestigious schools. Apartment rental price increase in major areas (m-o-m, %) Gangnam (1.9), Seocho (2.1), Gwangjin (2.3), Bundang (2.5), Yongin (2.4)

Nationwide apartment rental prices 2006 2007

(Percentage change from previous period) 2008

Annual Annual Annual

Nationwide Seoul Gangnam

2009

2010

Annual Jan

Annual Jan

2011

Oct

Nov

Dec

Jan

Jan 31 Jan 101 Jan 171 Jan 241

7.6

1.9

0.8

4.5 -1.2

8.8

0.4

1.0

1.4

1.0

1.1

0.22

0.39 0.45

0.42

11.5

2.2

-1.8

8.1 -1.7

7.4

0.6

1.2

1.1

0.8

1.1

0.22

0.53 0.52

0.40

11.3

0.5

-3.6

10.4 -1.8

8.8

0.9

1.2

1.4

1.0

1.3

0.21

0.58 0.54

0.35

Gangbuk3

11.8

4.6

0.5

5.4 -1.5

5.6

0.1

1.1

0.8

0.5

1.0

0.24

0.48 0.50

0.46

Seoul metropolitan area

11.7

2.1

-0.4

5.6 -1.9

7.2

0.3

1.1

1.3

0.7

1.0

0.20

0.41 0.45

0.42

3.0

1.1

1.6

3.9 -0.5

12.0

0.7

0.9

1.5

1.4

1.3

0.20

0.41 0.47

0.42

2

5 metropolitan cities 1. Weekly trends

2. Upscale area of Southern Seoul

3. Northern Seoul

Source: Kookmin Bank

Apartment sales transactions in December increased 24.2 percent from the previous month’s 85,704 to 106,411. The transactions were up 29.8 percent from a year earlier.

Apartment sales transactions 2007

(Monthly average, thousand)

2008

2009

Annual Annual Annual Sep Nationwide

84

74

77

Source: Korea Land & Housing Corporation

36

February 2011

90

2010

Oct

Nov

87

82

Dec Annual Mar Apr May Jun Jul Aug Sep Oct Nov Dec 82

71

80

73

62

65

62

57

57

73

86

106


12-1 Real estate prices Source: Kookmin Bank (national housing price trend)

12-2 Weekly apartment sales prices and monthly transaction volume Source: Kookmin Bank (weekly APT price trend) & Korea Land Corporation (monthly land trade trend)

12-3 Apartment prices by region Source: Kookmin Bank (national housing price trend)

Economic Bulletin

37


12.2 Land market Nationwide land prices in December rose for the second consecutive month, rising 0.11 percent month-on-month, which were 2.2 percent lower than the pre-crisis peak reached in October 2008. The aggregate land price increase in 2010 was 1.05 percent, which was slightly higher than the previous year’s 0.96 percent. Land prices in the Seoul metropolitan area rose 0.12 percent from the previous month, with Seoul (up 0.15%), Gyeonggi Province (up 0.10%) and Incheon (up 0.07%) all stepping up the pace of increase. Land price increases in Seoul metropolitan area (m-o-m, %) -0.04 (Jul 2010)

-0.09 (Sep)

-0.08 (Oct)

0.01 (Nov)

0.12 (Dec)

Land prices in areas excluding the Seoul metropolitan area rose 0.1 percent month-onmonth in December, expanding the upward trend since October 2010. Land price increases in areas excluding Seoul metropolitan area (m-o-m, %) 0.06 (Jul 2010)

0.05 (Sep)

0.05 (Oct)

0.06 (Nov)

0.10 (Dec)

Land prices by region 2007

(Percentage change from previous period) 2008

2009

Annual Annual Nationwide

3.88

-0.31

2010

Q4

Annual

Q1

Q2

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Nov

Dec

-4.09

0.96

-1.20

0.35

0.88

0.94

1.05

0.70

0.29

-0.05

0.11

0.03

0.11

Seoul

5.88

-1.00

-6.34

1.40

-1.38

0.68

1.30

0.81

0.53

0.72

0.02

-0.25

0.39

0.02

0.15

Gyeonggi

4.22

-0.26

-4.29

1.22

-1.62

0.37

1.13

1.36

1.49

0.96

0.53

-0.08

0.07

0.01

0.10

Incheon

4.86

1.37

-3.57

1.99

-1.39

0.53

1.16

1.70

1.43

1.08

0.43

-0.10

0.02 -0.03

0.07

Source: Korea Land & Housing Corporation

Nationwide land transactions in December recorded 257,000 land lots, increasing 23.9 percent from the previous month and 6.9 percent from 241,000 a year earlier. In 2010, land transactions slightly fell from the previous year, with 2,241,000 land lots. Month-on-month land transactions significantly increased in areas such as Seoul (up 34.4%), South Chungcheong Province (up 30.6%), North Chungcheong Province (up 29.4%), and Gyeonggi Province (up 28.7%).

Land sales transactions

Nationwide

(Land lot, thousand)

2007 2008

2009

Annual1 Annual1 Annual1 Sep

Oct

Nov

Dec Annual1 Mar

Jun

Jul

2010 Aug

Sep

Oct

Nov

Dec

183

171

163

145

181

208

257

208

208

203

226

212

207

241

187

Seoul

33

26

22

28

25

19

21

16

20

13

10

12

11

14

18

24

Gyeonggi

49

45

46

56

52

48

58

41

44

42

38

36

32

40

45

58

Incheon

13

13

10

13

14

11

12

8

9

8

8

7

7

8

9

11

1. Monthly average Source: Korea Land & Housing Corporation

38

February 2011

213


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

12-5 Land prices by region Source: Korea Land Corporation (land price trend)

12-6 Land trade volume Source: Korea Land Corporation (land trade trend)

Economic Bulletin

39


13. Composite indices of business cycle indicators The cyclical indicator of the coincident composite index remained at the same level as December at 99.3. Among the eight components of the coincident composite index, the volume of imports and the domestic shipment index fell, the mining and manufacturing index stayed flat, and the others rose compared to the previous month. Components of coincident composite index in December (m-o-m) Volume of imports (-1.3%), domestic shipment index (-0.4%), service activity index (1.1%), wholesale & retail sales index (0.8%), manufacturing operation ratio index (0.4%), value of construction completed (0.2%), number of non-farm payroll employment (0.1%), mining & manufacturing production index (0.0%)

The year-on-year leading composite index in December fell 0.2 percentage points from the previous month due to the previous year’s high base effect. Among the components of the leading composite index, the ratio of job openings to job seekers, value of machinery orders received, composite stock price index, value of capital goods imports, and consumer expectations index rose, while the others such as the value of construction orders received, and net terms of trade index fell month-on-month. Components of the leading composite index in December (m-o-m) Ratio of job openings to job seekers (6.3%p), value of machinery orders received (5.9%), composite stock price index (3.4%), value of capital goods imports (2.4%), consumer expectations index (0.7p), indicator of inventory cycle (0.1%p), value of construction orders received (-10.9%), net terms of trade index (-1.3%), liquidity in the financial institutions (-0.6%), spreads between long & short term interest rates (-0.2%p)

2010

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

Jun

Jul

Aug

Sep1

Oct1

Nov1

Dec1

0.8

0.9

0.3

-0.4

-0.9

-0.2

0.5

101.7

102.2

102.1

101.2

99.9

99.3

99.3

(m-o-m, p)

0.3

0.5

-0.1

-0.9

-1.3

-0.6

0.0

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

0.3

0.9

0.2

0.0

-0.8

-0.1

0.2

12 month smoothed change in leading composite index (%)

7.1

6.8

5.9

4.9

3.3

2.5

2.3

-0.9

-0.3

-0.9

-1.0

-1.6

-0.8

-0.2

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

40

February 2011


13-1 Cyclical indicator of coincident composite index Source: Statistics Korea

13-2 Leading composite index Source: Statistics Korea

13-3 Coincident and leading composite indices Source: Statistics Korea

Economic Bulletin

41


Economic News Briefing

Korean economy grows 0.5% in Q4 (Advance) Korea’s real GDP expanded by 0.5 percent in the fourth quarter of 2010 compared with the previous quarter, recording eight consecutive quarters of positive growth since the first quarter of 2009. From a year earlier, the fourth quarter GDP increased by 4.8 percent. On the production side, the manufacturing and construction sectors decreased quarter-onquarter by 0.7 percent and 5.3 percent, respectively. Meanwhile, services rose by 1.3 percent from the previous quarter, mainly led by growth in recreational, cultural & sporting, financial intermediation and transport & storage services. On the expenditure side, private consumption increased by 0.3 percent from a quarter earlier while facility investment decreased by 1.6 percent. Exports of goods grew by 2.4 percent, led by increased exports of general machinery & equipment and wireless communications equipment. Real gross domestic income (GDI), which reflects changes in terms of trade, rose by 0.4 percent from the previous quarter. Meanwhile, real GDP increased by 6.1 percent in 2010 helped by robust exports and increasing manufacturing and facility investment. Real GDI was up 5.8 percent in 2010, the fastest increase since 2002 when it rose 7.2 percent.

42

February 2011


<GDP by production and expenditure*>

(Percentage change from previous period) 2009

GDP

20101

1

Annual

Q1

Q2

Q3

Q4

Annual

Q1

Q2

Q3

Q4

0.2

0.2

2.4

3.2

0.2

6.1

2.1

1.4

0.7

0.5

1.6

-0.1

-0.4

2.9

0.4

-4.9

-4.9

0.1

-3.5

1.3

-1.6

-2.5

8.0

9.4

-1.7

14.6

4.2

5.2

2.2

-0.7

Construction

1.9

4.4

1.2

-1.0

-0.6

-0.7

1.9

-0.9

0.6

-5.3

Services

1.0

0.3

1.0

0.9

0.9

3.5

1.6

0.1

0.1

1.3

Private consumption

0.2

0.3

3.3

1.7

0.4

4.1

0.7

0.8

1.3

0.3

Government consumption

5.0

2.9

0.7

0.0

-2.4

3.4

5.8

0.1

-0.7

-0.7

-9.1

-10.5

9.0

10.8

5.3

24.5

2.4

9.1

5.5

-1.6 -4.5

Agriculture, forestry and fishery Manufacturing

2

Facility investment

4.4

5.9

1.8

-0.7

-0.1

-2.3

1.3

-3.6

1.3

3

0.0

-1.7

13.5

5.1

-1.5

15.7

3.7

7.0

1.9

2.7

Goods imports3

-7.9

-5.8

8.7

8.0

-1.3

18.8

5.1

9.5

2.1

-1.4

1.7

0.1

4.7

1.4

2.8

5.8

1.1

0.5

0.4

0.4

Construction investment Goods exports

Gross Domestic Income

*At 2005 chained prices in seasonally adjusted terms 1. Preliminary 2. Wholesale & retail sales, hotels & restaurants, transportation & storage, communication services, financial & insurance services, real estate & renting, business services, public administration, defense & social security, educational services, healthcare & social welfare services, entertainment, cultural & sports services and other services are included. 3. FOB basis

CEPA boosts Korea-India trade Bilateral trade between Korea and India has increased significantly since the Comprehensive Economic Partnership Agreement (CEPA) took effect. During the twelve months since CEPA first took effect on January 1, 2010, Korea’s exports to India increased 42.7 percent to US$ 11.4 billion and imports from India increased 37 percent to US$ 5.7 billion. The major export items were automobile parts (12%), telephones (6%) and ships (6%), while imports mostly consisted of oil products (54%), cotton (6%) and ferro-alloys (4%).

<Changes in Korea-India bilateral trade>

(US$ billion)

Exports

Imports

Trade balance

2009 (before CEPA)

8

4.1

3.9

2010 (after CEPA)

11.4

5.7

5.8

(% change)

42.7

37

48.8

Economic Bulletin

43


KTB market information website opens The Ministry of Strategy and Finance opened the Korea Treasury Bond (KTB) website (http://ktb.most.go.kr) on January 31, 2011, thus allowing investors easier access to information on KTB trading. Although most countries are already running websites dedicated exclusively to their Treasury bond markets, Korea has until now lacked one that would provide detailed information on the KTB market. The new website, which is serviced in both Korean and English, has contents on KTB-related policies, statistics and press releases. It aims to be a one-stop destination for investors looking for information on KTB trading, such as KTB issuance schedules and auction results, bond yields and other statistics. The Ministry will continue to improve the website in order to ensure better service for bond investors.

Korea’s investment in overseas resources development to reach US$7.8 billion in 2011 Korean firms are expected to spend a total of US$7.8 billion in developing overseas oil and gas reserves this year, the Ministry of Knowledge Economy said on January 24, 2011. The investment amount is 29 percent more than the estimated investment of US$6 billion in 2010. State-run firms such as Korea National Oil Corp (KNOC) and Korea Gas Corp (KOGAS) are expected to invest US$6.55 billion, or 84 percent of the total investment. Private firms will expand investment to US$1.25 billion in 2011, which is twice the size of the previous year. Of the total investment, US$2.1 billion will be spent in North America, while US$1.2 billion and US$ 900 million will be allocated to the Middle East and Southeast Asia, respectively. Investment in 2010 (estimate)

Planned investment in 2011

Public firms

Private firms

Total

Public firms

Private firms

Total

Investment (US$ billion)

5.43

0.61

6.04

6.55

1.25

7.8

Ratio (%)

89.9

10.1

100

84

16

100

In a separate statement, the Ministry of Knowledge Economy announced that the government has earmarked 7.83 billion won this year to support private firms’ overseas mineral resources development projects. The 2011 budget for the development is 77.6 percent more than the previous year’s 4.41 billion won. This drastic increase reflects domestic companies’ growing interest in entering the mineral-rich emerging markets.

44

February 2011


Korea aims to attract US$ 15 billion in FDI On January 31, 2011, the Ministry of Knowledge Economy announced FDI promotion measures for 2011. According to the plan, Korea aims to attract US$15 billion in FDI in 2011 to the areas such as green energy, services and industrial component sectors. The target is an increase of about 16 percent in FDI from the previous year’s US$13.07 billion, which marked a 10-year high. Korea plans to offer various incentives including cash grants and assistance in obtaining necessary land, along with comprehensive foreign investor relations efforts to highlight the advantages of doing business in the country. The government set aside 14 billion won worth of funds that can be given as direct cash grants this year. Foreign businesses will also be eligible to receive various tax and administrative-related support if their investments in the manufacturing sector exceed US$10 million. Similar breaks will be offered to foreign investments in the distribution services sector that surpass US$5 million.

Economic Bulletin

45



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

47


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

2003 2004 2005 2006 2007 2008 2009P 2010P

Gross fixed capital formation

Final consumption expenditure

Agri., fores. & fisheries

Manufacturing

2.8 4.6 4.0 5.2 5.1 2.3 0.2 6.1

-5.4 9.1 1.3 1.5 4.0 5.6 1.6 -4.9

5.4 10.0 6.2 8.1 7.2 2.9 -1.6 14.6

0.5 1.0 4.6 5.1 5.1 2.0 1.3 3.9

Construction

Facilities

4.4 2.1 1.9 3.4 4.2 -1.9 -0.2 6.2

8.5 1.3 -0.4 0.5 1.4 -2.8 4.4 -2.3

-1.5 3.8 5.3 8.2 9.3 -1.0 -9.1 24.5

2003

I II III IV

3.5 1.8 2.0 3.9

0.7 -1.6 -9.6 -8.0

5.4 3.1 4.3 8.5

2.0 0.3 0.0 -0.4

5.1 4.7 2.8 5.0

8.2 8.4 8.3 9.0

2.9 -0.7 -5.8 -2.2

2004

I II III IV

5.2 5.9 4.8 2.7

8.2 7.6 8.3 11.6

10.9 12.9 10.4 6.2

-0.1 1.3 1.0 1.8

2.3 4.9 3.1 -1.4

5.3 4.2 1.2 -3.5

-0.6 6.4 7.7 1.8

2005

I II III IV

2.7 3.4 4.5 5.1

0.4 4.8 3.8 -3.1

4.8 3.9 6.7 9.3

2.7 4.7 5.9 4.9

-0.3 1.8 1.5 3.9

-3.1 0.9 -0.3 0.3

3.4 2.8 4.1 10.8

2006

I II III IV

6.1 5.1 5.0 4.6

3.9 -0.3 -1.4 4.2

9.4 9.1 8.7 5.4

5.8 4.9 4.6 5.1

3.8 0.1 4.0 5.7

1.9 -4.2 -0.5 5.1

7.2 8.0 12.0 5.7

2007

I II III IV

4.5 5.3 4.9 5.7

1.6 7.0 8.2 -0.7

4.5 7.2 6.3 10.2

5.1 5.4 5.3 4.7

7.3 5.7 1.5 3.1

4.4 2.0 -0.2 0.4

12.6 13.0 4.0 8.0

2008

I II III IV

5.5 4.4 3.3 -3.3

7.8 4.6 4.3 6.5

8.9 8.3 5.3 -9.4

4.3 3.0 2.4 -1.7

-0.6 0.6 2.1 -8.7

-2.5 -0.5 0.4 -7.7

2.8 2.0 5.3 -13.3

2009P

I II III IV

-4.3 -2.2 1.0 6.0

1.5 -1.3 3.3 2.8

-13.6 -7.2 1.7 13.0

-2.0 0.7 1.7 4.7

-7.4 -2.3 0.4 7.1

2.8 5.1 4.4 5.0

-23.1 -17.3 -7.0 13.3

2010P

I II III IV

8.1 7.2 4.4 4.8

-1.9 -2.2 -7.5 -6.6

20.7 18.0 10.1 11.2

5.7 3.6 3.2 3.3

11.4 6.4 6.6 2.1

2.3 -2.9 -2.3 -4.7

29.9 30.2 24.3 16.0

P: Preliminary Source: The Bank of Korea

48

February 2011


Growth rate by economic activity

Growth rate by expenditure on GDP

Economic Bulletin

49


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

Period

Production index

2008 2009 2010P

Y-o-Y change (%)

Shipment index

Y-o-Y change (%)

Inventory index

Y-o-Y change (%)

Service production index

Y-o-Y change (%)

119.8 118.9 138.7

3.4 -0.8 16.7

118.3 116.3 133.8

2.6 -1.7 15.0

125.5 115.5 135.2

7.1 -8.0 17.1

116.1 118.4 122.8

3.6 2.0 3.7

2008

I II III IV

121.9 125.5 119.6 112.4

11.2 9.2 5.9 -11.0

119.8 123.0 118.0 112.4

9.3 6.8 5.5 -9.9

123.6 133.2 132.0 125.5

8.4 16.3 17.1 7.1

114.0 116.0 116.4 118.1

6.8 4.3 3.4 0.0

2009

I II III IV

102.8 117.8 124.7 130.5

-15.7 -6.1 4.3 16.2

101.9 115.9 120.5 126.8

-14.9 -5.8 2.1 12.8

115.9 110.6 113.3 115.5

-6.2 -16.9 -14.2 -8.0

113.7 118.8 118.6 122.5

-0.3 2.4 1.9 3.7

2010

I II III IVP

129.3 140.8 139.5 145.2

25.8 19.5 11.9 11.3

124.1 135.8 134.1 141.4

21.8 17.2 11.3 11.5

123.6 127.9 134.2 135.2

6.6 15.6 18.4 17.1

120.2 123.6 121.1 126.1

5.7 4.0 2.1 2.9

2008

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

126.3 111.1 128.3 126.5 126.5 123.5 123.4 116.2 119.1 126.7 110.3 100.0

12.0 10.9 10.9 11.2 9.2 7.3 8.9 2.2 6.7 -1.5 -13.6 -18.4

121.9 109.9 127.6 124.8 123.7 120.5 121.6 114.7 117.6 124.2 109.8 103.2

10.5 8.1 9.2 8.9 6.6 4.9 8.0 2.0 6.3 -1.7 -12.9 -15.1

123.9 124.3 123.6 124.6 128.7 133.1 132.4 132.1 132.0 134.7 133.2 125.5

4.5 7.5 8.4 11.4 12.7 16.2 14.5 14.3 17.1 17.1 15.9 7.1

114.3 109.6 118.1 116.1 116.7 115.1 117.4 114.2 117.5 118.9 113.3 122.2

8.0 6.6 6.0 6.1 4.1 2.7 4.7 1.2 4.2 3.1 -2.0 -1.0

2009

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

93.8 99.8 114.7 116.1 115.0 122.2 124.3 117.4 132.3 127.0 130.3 134.2

-25.7 -10.2 -10.6 -8.2 -9.1 -1.1 0.7 1.0 11.1 0.2 18.1 34.2

93.1 99.4 113.3 114.7 112.8 120.1 120.0 113.5 127.9 123.4 126.8 130.2

-23.6 -9.6 -11.2 -8.1 -8.8 -0.3 -1.3 -1.0 8.8 -0.6 15.5 26.2

123.7 117.6 115.9 112.4 111.4 110.6 112.3 112.8 113.3 112.6 113.7 115.5

-0.2 -5.4 -6.2 -9.8 -13.4 -16.9 -15.2 -14.6 -14.2 -16.4 -14.6 -8.0

112.4 109.5 119.2 119.9 118.5 118.0 118.1 115.5 122.3 118.3 118.1 131.0

-1.7 -0.1 0.9 3.3 1.5 2.5 0.6 1.1 4.1 -0.5 4.2 7.2

2010

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

128.5 118.7 140.7 139.4 139.9 143.2 143.7 137.3 137.6 144.2 144.2 147.3

37.0 18.9 22.7 20.1 21.7 17.2 15.6 17.0 4.0 13.5 10.7 9.8

123.0 113.7 135.6 134.9 134.2 138.2 137.1 132.4 132.8 140.4 141.0 142.8

32.1 14.4 19.7 17.6 19.0 15.1 14.3 16.7 3.8 13.8 11.2 9.7

119.2 122.5 123.6 124.6 127.9 127.9 132.8 134.1 134.2 133.2 132.3 135.2

-3.6 4.2 6.6 10.9 14.8 15.6 18.3 18.9 18.4 18.3 16.4 17.1

117.3 117.5 125.8 124.4 122.9 123.5 121.9 120.3 121.2 122.0 122.6 133.8

4.4 7.3 5.5 3.8 3.7 4.7 3.2 4.2 -0.9 3.1 3.8 2.1

P: Preliminary Source: Statistics Korea

50

February 2011


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

Period

Y-o-Y change (%)

Operation ratio index (2005=100)

Y-o-Y change (%)

Average operation ratio (%)

115.3 118.9 125.9

5.1 3.1 5.9

97.2 93.5 102.9

-3.2 -3.8 10.1

77.5 74.6 81.8

Production capacity index (2005=100)

2008 2009 2010P 2008

I II III IV

113.8 115.1 116.0 116.4

5.9 6.3 5.3 3.4

99.3 103.1 95.5 91.1

2.2 0.5 -0.7 -13.6

81.5 80.8 78.3 69.6

2009

I II III IV

116.8 117.8 119.7 128.6

2.6 2.3 3.2 6.2

81.4 94.6 97.8 106.4

-18.0 -8.2 2.4 6.1

66.9 74.2 78.8 81.0

2010

I II III IVP

122.7 124.6 127.5 128.6

5.1 5.8 6.5 6.2

97.7 106.5 100.8 106.4

20.0 12.6 3.1 6.1

80.5 83.0 82.6 81.0

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

113.8 113.8 113.9 114.3 115.4 115.7 115.7 116.0 116.2 116.3 116.3 116.7

6.2 5.9 5.8 5.9 6.7 6.2 5.5 5.3 4.9 3.6 3.4 3.3

103.2 89.5 105.1 104.7 103.3 101.2 99.8 92.2 94.5 104.1 89.4 79.7

3.4 1.5 1.4 3.2 -0.6 -1.3 1.5 -4.6 0.7 -4.8 -16.8 -20.1

82.1 80.6 81.7 82.1 80.1 80.1 79.3 78.3 77.3 76.9 69.1 62.8

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

116.8 116.7 117.0 117.6 117.6 118.3 119.1 119.5 120.4 120.6 120.8 121.9

2.6 2.5 2.7 2.9 1.9 2.2 2.9 3.0 3.6 3.7 3.9 4.5

73.5 79.5 91.1 93.4 92.6 97.9 98.6 91.1 103.6 99.1 100.6 101.1

-28.8 -11.2 -13.3 -10.8 -10.4 -3.3 -1.2 -1.2 9.6 -4.8 12.5 26.9

62.8 67.7 70.3 72.4 73.6 76.6 78.7 77.7 79.9 77.3 78.2 79.6

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

122.1 122.4 123.6 123.8 124.8 125.1 126.7 127.7 128.2 128.2 128.4 129.2

4.5 4.9 5.6 5.3 6.1 5.7 6.4 6.9 6.5 6.3 6.3 6.0

97.4 88.4 107.2 106.6 104.8 108.2 106.8 97.8 97.9 107.5 103.2 105.4

32.5 11.2 17.7 14.1 13.2 10.5 8.3 7.4 -5.5 8.5 5.6 4.3

78.9 80.3 82.4 82.2 82.8 84.0 84.8 81.5 81.5 79.7 80.9 82.5

P: Preliminary Source: Statistics Korea

Economic Bulletin

51


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

Period

Consumer goods sales index

2008 2009 2010P

Y-o-Y change (%)

Durable goods

Y-o-Y change (%)

Semi-durable goods

Y-o-Y change (%)

Non-durable goods

Y-o-Y change (%)

110.6 113.5 121.1

1.1 2.6 6.7

126.4 136.7 156.8

1.6 8.1 14.7

104.9 105.2 113.0

-3.0 0.3 7.4

110.0 111.3 113.8

1.4 1.2 2.2

2008

I Il III IV

111.5 111.7 108.8 110.4

4.5 2.9 1.4 -4.2

129.9 134.1 125.8 115.7

8.7 8.0 -0.1 -9.6

103.6 107.2 94.0 115.0

4.0 -2.7 0.3 -10.7

109.2 108.8 112.3 109.5

2.3 1.3 1.5 0.2

2009

I II III IV

106.3 113.4 111.9 122.3

-4.7 1.5 2.8 10.8

114.4 141.8 135.7 154.9

-11.9 5.7 7.9 33.9

102.0 106.6 93.3 118.9

-1.5 -0.6 -0.7 3.4

107.7 109.3 114.4 114.0

-1.4 0.5 1.9 4.1

2010

I II III IVP

116.8 118.9 120.1 128.6

9.9 4.9 7.3 5.2

148.1 149.4 158.3 171.4

29.5 5.4 16.7 10.7

104.8 114.0 100.0 133.1

2.7 6.9 7.2 11.9

111.3 113.1 117.7 113.3

3.3 3.5 2.9 -0.6

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

111.7 107.3 115.4 113.4 115.1 106.5 109.6 106.2 110.7 109.7 108.9 112.7

5.4 3.5 4.6 6.3 3.3 -0.7 4.2 2.2 -1.8 -3.3 -4.6 -4.8

128.3 117.8 143.6 139.1 136.0 127.1 140.7 121.5 115.2 123.9 108.9 114.4

8.1 6.1 11.4 15.6 7.9 0.6 7.9 -4.7 -3.8 -0.5 -15.3 -12.5

104.4 97.8 108.5 108.5 112.1 100.9 97.6 86.2 98.1 111.6 120.3 113.1

6.7 7.2 -1.3 -2.8 -3.7 -1.8 3.5 8.8 -8.9 -10.1 -7.7 -14.3

108.8 108.4 110.5 109.5 112.3 104.5 106.1 112.0 118.8 106.6 107.7 114.3

4.3 0.6 2.2 4.5 2.0 -2.7 1.0 2.0 1.6 -2.2 1.2 1.5

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

108.5 100.9 109.4 108.6 117.0 114.6 110.9 106.7 118.1 120.4 119.5 127.0

-2.9 -6.0 -5.2 -4.2 1.7 7.6 1.2 0.5 6.7 9.8 9.7 12.7

103.9 115.8 123.6 123.7 144.0 157.8 138.3 122.7 146.0 144.7 153.2 166.8

-19.0 -1.7 -13.9 -11.1 5.9 24.2 -1.7 1.0 26.7 16.8 40.7 45.8

102.6 96.1 107.4 108.3 112.1 99.4 94.3 85.6 100.1 114.9 120.7 121.2

-1.7 -1.7 -1.0 -0.2 0.0 -1.5 -3.4 -0.7 2.0 3.0 0.3 7.2

114.8 99.0 109.2 107.1 113.0 107.8 111.1 112.9 119.1 116.8 109.3 116.0

5.5 -8.7 -1.2 -2.2 0.6 3.2 4.7 0.8 0.3 9.6 1.5 1.5

2010

116.0 114.1 120.2 116.5 121.3 118.9 120.5 116.6 123.3 125.4 127.9 132.4

6.9 13.1 9.9 7.3 3.7 3.8 8.7 9.3 4.4 4.2 7.0 4.3

145.6 140.1 158.6 144.1 146.7 157.5 163.8 154.3 156.9 165.1 172.1 176.9

40.1 21.0 28.3 16.5 1.9 -0.2 18.4 25.8 7.5 14.1 12.3 6.1

107.3 98.6 108.5 112.7 120.5 108.9 103.1 89.6 107.3 129.4 133.0 136.9

4.6 2.6 1.0 4.1 7.5 9.6 9.3 4.7 7.2 12.6 10.2 13.0

108.8 112.2 112.8 110.6 116.2 112.4 114.9 116.5 121.6 111.3 112.3 116.2

-5.2 13.3 3.3 3.3 2.8 4.3 3.4 3.1 2.1 -4.7 2.7 0.2

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

P: Preliminary Source: Statistics Korea

52

February 2011


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

Period

2008 2009 2010

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

Durable goods

Y-o-Y change (%)

Non-durable goods

Y-o-Y change (%)

Consumer sentiment index

114.8 115.5 120.8

1.6 0.6 4.6

126.8 133.9 139.2

1.8 5.6 4.0

109.9 108.1 113.4

1.4 -1.6 4.9

-

2008

I II III IV

117.5 115.7 113.8 111.9

5.8 4.2 2.2 -5.7

133.3 136.5 123.0 114.4

11.3 11.4 0.1 -13.9

111.1 107.4 110.1 111.0

3.3 0.9 3.2 -1.8

-

2009

I II III IV

106.7 114.1 118.8 122.5

-9.2 -1.4 4.4 9.5

112.7 138.0 138.0 147.0

-15.5 1.1 12.2 28.5

104.3 104.5 111.1 112.6

-6.1 -2.7 0.9 1.4

-

2010

I II III IV

117.6 119.2 120.8 125.4

10.2 4.5 1.7 2.4

136.1 139.7 139.1 141.7

20.8 1.2 0.8 -3.6

110.2 111.0 113.5 118.9

5.7 6.2 2.2 5.6

-

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

125.4 106.5 120.6 119.8 115.7 111.7 117.8 111.7 112.0 119.7 107.0 109.1

9.1 2.1 5.7 7.3 2.4 2.9 7.4 -1.1 0.6 -1.6 -9.3 -6.3

132.6 123.1 144.2 144.2 136.9 128.5 134.3 118.6 116.1 127.7 111.0 104.4

12.4 8.3 12.8 20.3 9.3 5.0 8.0 -5.1 -2.8 -6.4 -15.8 -19.8

122.5 99.8 111.1 110.1 107.2 105.0 111.1 108.9 110.3 116.6 105.4 111.0

7.8 -0.7 2.3 1.7 -0.7 2.0 6.9 0.7 2.1 0.8 -6.2 0.1

84 96 96 88 84 81

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

106.4 102.7 110.9 111.3 112.7 118.2 118.1 110.0 128.2 120.2 118.8 128.4

-15.2 -3.6 -8.0 -7.1 -2.6 5.8 0.3 -1.5 14.5 0.4 11.0 17.7

98.6 115.1 124.4 119.1 138.9 156.1 144.3 124.6 145.0 138.8 146.0 156.1

-25.6 -6.5 -13.7 -17.4 1.5 21.5 7.4 5.1 24.9 8.7 31.5 49.5

109.5 97.7 105.6 108.2 102.2 103.0 107.7 104.2 121.5 112.7 107.9 117.3

-10.6 -2.1 -5.0 -1.7 -4.7 -1.9 -3.1 -4.3 10.2 -3.3 2.4 5.7

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

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

122.3 109.5 121.0 119.5 116.3 121.9 121.3 119.1 122.0 126.8 125.1 124.3

14.9 6.6 9.1 7.4 3.2 3.1 2.7 8.3 -4.8 5.5 5.3 -3.2

135.5 129.1 143.8 135.2 135.5 148.5 146.1 134.0 137.2 145.1 143.2 136.7

37.4 12.2 15.6 13.5 -2.4 -4.9 1.2 7.5 -5.4 4.5 -1.9 -12.4

117.0 101.7 111.9 113.2 108.7 111.2 111.3 113.2 115.9 119.5 117.9 119.3

6.8 4.1 6.0 4.6 6.4 8.0 3.3 8.6 -4.6 6.0 9.3 1.7

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

2011 1

-

-

-

-

-

-

108

Source: Statistics Korea & The Bank of Korea

Economic Bulletin

53


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

2009 2010P

Estimated facility investment index (2005=100)

Domestic machinery shipment excluding ship (2005=100)

Total

Public

Private

20,718 22,984

3,735 2,330

16,983 20,654

9,111 12,139

109.3 131.0

110.4 137.7

Manufacturing

2009

I ll III IV

5,033 4,942 5,591 5,152

932 696 1,345 763

4,101 4,246 4,246 4,389

1,992 2,212 2,321 2,586

97.0 110.4 107.7 122.2

98.7 112.7 107.5 122.6

2010

I ll III IVP

5,563 6,136 5,549 5,736

525 409 374 1,023

5,038 5,727 5,175 4,713

2,956 3,509 3,012 2,663

121.7 137.5 137.4 127.5

119.6 148.1 140.0 143.0

2009 7 8 9 10 11 12

2,494 1,340 1,757 1,541 1,942 1,669

1,073 71 200 84 433 246

1,421 1,268 1,557 1,458 1,509 1,422

754 653 914 836 941 810

101.9 100.7 120.4 112.4 121.4 132.9

107.5 98.2 116.8 109.1 116.3 142.3

2010

1,752 1,630 2,181 1,823 2,168 2,145 2,017 1,697 1,835 1,717 1,666 2,353

169 107 249 127 122 160 105 102 167 101 102 820

1,583 1,523 1,932 1,696 2,046 1,986 1,912 1,595 1,668 1,616 1,564 1,533

1,010 880 1,065 1,053 1,331 1,125 1,070 911 1,031 970 887 806

107.6 114.5 142.9 131.9 133.0 147.6 136.4 141.4 134.4 123.3 127.9 131.3

111.6 105.7 141.5 143.1 145.7 155.4 144.0 137.2 138.8 134.8 137.8 156.5

-11.8 10.9

61.7 -37.6

-27.2 33.2

-8.2 19.9

-5.2 24.7

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

2009 2010P

Y-o-Y change (%) -19.9 21.6

2009

I ll III IV

-35.5 -17.7 3.4 20.0

150.8 29.9 280.2 -27.2

-44.8 -22.3 -16.0 35.2

-59.1 -27.6 -19.4 51.5

-18.3 -12.9 -9.9 10.0

-12.7 -8.0 -6.4 6.4

2010

I ll III IVP

10.5 24.2 -0.7 11.3

-43.7 -41.2 -72.2 34.0

22.9 34.9 21.9 7.4

48.4 58.6 29.8 2.9

25.5 24.5 27.6 4.3

21.2 31.4 30.2 16.6

2009 7 8 9 10 11 12

6.1 -19.6 26.5 -7.9 56.2 21.2

498.5 -17.4 127.5 -79.0 110.1 -44.5

-34.6 -19.7 19.7 14.3 45.5 52.4

-38.1 -30.7 27.3 16.5 74.6 79.5

-18.3 -15.6 5.3 -0.5 10.1 20.8

-10.9 -9.9 1.6 -5.3 4.0 20.1

2010

11.2 -3.1 22.9 25.1 57.5 1.8 -19.1 26.6 4.5 11.4 -14.2 41.0

-27.1 -79.4 37.2 39.0 26.8 -68.6 -90.2 42.5 -16.2 20.8 -76.5 232.8

17.8 30.9 21.3 24.2 59.8 24.1 34.6 25.8 7.1 10.8 3.6 7.8

41.4 65.7 42.7 57.0 102.3 27.3 42.0 39.6 12.7 16.1 -5.7 -0.5

20.9 19.5 34.7 25.6 24.3 23.9 33.9 40.4 11.6 9.7 5.4 -1.2

31.0 8.1 25.1 29.0 39.8 26.3 34.0 39.6 18.8 23.6 18.5 10.0

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

P: Preliminary Source: Statistics Korea

54

February 2011


7. Value of construction completed and domestic construction orders received See graphs 4-2 & 4-3

(current prices, billion won)

Period

Type of order

Private

Public

Private

32,393 35,182

52,562 52,754

107,011 85,981

50,771 28,144

51,914 53,268

Public

89,863 92,192

2009 2010P

Type of order

Domestic construction orders received (total)

Value of construction completed (total)

2009

I ll llI lV

19,130 23,628 22,106 25,000

6,570 8,665 7,875 9,284

11,544 13,577 13,029 14,412

18,104 26,392 19,719 42,795

9,219 17,747 8,826 14,980

8,263 7,760 9,971 25,920

2010

I ll llI lVP

20,066 24,196 22,737 25,193

7,317 9,171 8,181 10,513

11,870 14,011 13,497 13,376

16,848 24,649 18,737 25,747

7,646 6,746 6,648 7,103

8,335 16,453 11,249 17,231

2009

7 8 9 10 11 12

6,988 6,719 8,398 7,301 8,060 9,639

2,362 2,427 3,085 2,585 2,780 3,919

4,252 3,929 4,848 4,354 4,854 5,204

6,009 4,660 9,050 10,570 14,538 17,688

3,314 1,756 3,756 4,700 5,101 5,179

2,398 2,807 4,766 5,616 8,853 11,451

2010

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

6,414 6,051 7,602 7,355 7,784 9,057 7,635 7,420 7,682 7,168 7,878 10,147

2,222 2,236 2,859 2,623 2,858 3,690 2,798 2,610 2,774 2,794 3,217 4,501

6,643 4,615 5,590 6,418 8,354 9,877 7,346 4,010 7,381 4,274 7,459 14,024

2,286 2,109 3,252 1,735 1,613 3,398 3,830 1,251 1,567 1,173 1,957 3,973

4,074 2,163 2,099 4,356 6,521 5,576 3,315 2,640 5,293 2,989 5,191 9,052

3.3 2.6

21.2 8.6

3.0 -19.7

60.9 -44.6

-21.9 2.6

2009 2010P

3,924 3,589 4,357 4,473 4,564 4,973 4,495 4,488 4,514 4,024 4,305 5,047 Y-o-Y change (%) -5.7 0.4

2009

I ll llI lV

4.3 6.4 -1.2 3.7

24.5 31.9 21.3 10.7

-5.3 -5.9 -11.8 0.4

-12.0 -1.1 7.6 11.6

33.1 182.9 78.9 11.6

-37.3 -60.2 -14.3 17.3

2010

I ll llI lVP

4.9 2.4 2.9 0.8

11.4 5.8 3.9 13.2

2.8 3.2 3.6 -7.2

-6.9 -6.6 -5.0 39.8

-17.1 -62.0 -24.7 -52.6

0.9 112.0 12.8 -33.5

2009

7 8 9 10 11 12

-2.8 -8.2 6.8 -5.9 3.2 12.9

16.6 14.1 31.9 3.5 8.1 18.3

-11.6 -18.9 -5.4 -10.1 1.7 9.8

-1.8 -27.0 55.3 28.8 78.8 -19.6

135.8 6.7 99.6 90.8 63.3 -33.9

-42.7 -36.6 57.4 16.2 92.5 -9.6

2010

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

5.8 -0.8 9.2 -1.1 7.8 1.0 9.3 10.4 -8.5 -1.8 -2.3 5.3

3.4 9.6 20.1 -0.5 10.0 7.5 18.4 7.5 -10.1 8.1 15.7 14.9

8.3 -4.3 4.5 1.3 8.5 0.4 5.7 14.2 -6.9 -7.6 -11.3 -3.0

17.1 -6.7 -25.3 -14.6 16.8 -15.8 22.2 -13.9 -18.4 -59.6 -48.7 -20.8

-14.7 -23.5 -14.0 -69.8 -63.6 -55.1 15.6 -28.8 -58.3 -75.1 -61.6 -23.3

49.4 4.7 -39.5 192.8 151.2 51.7 38.2 -5.9 11.1 -46.8 -41.4 -21.0

P: Preliminary Source: Statistics Korea

Economic Bulletin

55


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

Y-o-Y change (%)

Coincident index (2005=100)

Cycle of coincident index (2005=100)

BSI (results)

BSI (prospects)

109.1 110.0 110.4 111.1 111.4 112.3 113.3 114.0 114.7 115.4 116.2 116.6

5.3 5.8 5.8 6.0 5.8 6.2 6.7 7.0 7.1 7.2 7.4 7.2

110.7 111.1 111.7 112.3 112.9 113.8 114.7 115.5 115.7 116.2 116.9 118.0

101.3 101.3 101.4 101.5 101.6 101.9 102.4 102.6 102.3 102.4 102.6 103.1

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

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

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

116.3 115.6 115.2 115.1 115.1 114.6 114.0 113.8 113.6 112.7 111.1 110.4

6.3 5.0 3.9 3.2 2.6 1.5 0.5 -0.1 -0.7 -1.8 -3.4 -4.2

119.1 119.3 119.7 119.7 119.9 119.7 119.9 120.2 120.5 120.3 118.7 116.0

103.6 103.4 103.3 102.8 102.6 102.0 101.8 101.6 101.4 100.8 99.1 96.4

95.2 95.6 101.1 101.7 98.1 79.1 80.8 83.1 76.8 64.6 53.7 52.4

103.0 94.8 102.1 98.1 104.7 95.3 83.2 80.8 98.3 84.9 63.7 55.0

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

110.8 112.2 113.5 115.4 117.6 120.3 122.1 123.2 123.9 124.7 126.1 127.0

-3.9 -2.6 -1.4 0.4 2.7 5.5 7.6 8.8 9.6 10.3 11.3 11.6

113.7 113.9 115.3 117.3 118.4 120.5 121.8 122.8 123.6 124.1 124.7 125.2

94.1 93.9 94.6 95.9 96.3 97.7 98.3 98.7 98.9 98.9 99.0 98.9

58.1 62.4 89.0 93.7 100.9 96.6 98.5 96.0 110.5 107.5 103.8 104.8

52.0 66.0 76.1 86.7 103.8 100.2 98.7 99.8 117.0 116.5 109.0 105.9

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

127.4 127.1 127.3 127.1 127.7 128.2 129.3 129.6 129.6 128.6 128.5 128.8

11.3 10.3 9.7 8.6 7.9 7.1 6.8 5.9 4.9 3.3 2.5 2.3

126.2 127.7 128.9 130.1 131.0 132.0 133.2 133.6 133.0 131.8 131.5 132.2

99.3 100.0 100.6 101.1 101.4 101.7 102.2 102.1 101.2 99.9 99.3 99.3

99.2 98.7 113.1 108.9 111.9 109.4 105.0 98.6 104.1 104.3 103.5 102.1

103.1 102.3 116.2 111.2 113.4 108.9 107.3 100.7 111.1 113.1 107.1 104.2

2011 1 2

-

-

-

-

99.1 -

101.8 98.0

Period

Leading index (2005=100)

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

Source: Statistics Korea & The Federation of Korean Industries

56

February 2011


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

Period

2008 2009 2010P

Current balance

Goods trade balance

Exports

3,197.5 32,790.5 28,213.6

5,170.1 37,866.0 41,904.0

Imports

Services trade balance

Income trade balance

Current transfers

434,651.5 358,189.7 464,286.9

429,481.4 320,323.7 422,383.1

-5,734.1 -6,640.5 -11,229.4

4,435.4 2,276.7 768.4

-673.9 -711.7 -3.229.4

2008

I II III IV

86.3 595.6 -3,981.0 6,496.6

1,365.8 4,095.7 -1,208.3 916.9

106,227.0 117,184.4 119,540.5 91,699.6

104,861.2 113,088.7 120,748.8 90,782.7

-2,358.8 -1,656.7 -3,145.3 1,426.7

1,613.1 -887.1 1,137.3 2,572.1

-533.8 -956.3 -764.7 1,580.9

2009

I II III IV

4,543.3 11,557.4 8,613.2 8,076.6

2,819.2 13,553.3 10,914.6 10,578.9

73,334.9 87,038.0 95,485.2 102,331.6

70,515.7 73,484.7 84,570.6 91,752.7

-26.0 -1,291.4 -2,663.3 -2,659.8

393.9 -151.1 948.6 1,085.3

1,356.2 -553.4 -586.7 -927.8

2010P

I II III IV

263.3 8,857.9 9,931.1 9,161.3

4,785.4 12,240.4 12,542.3 12,335.9

101,354.5 117,585.0 118,257.3 127,090.1

96,569.1 105,344.7 105,715.1 114,754.2

-4,201.1 -1,873.1 -2,954.6 -2,200.6

546.5 -1,006.5 1,296.1 -67.6

-867.4 -502.9 -952.7 -906.4

2008

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

19.2 -1,230.5 1,297.6 -1,205.1 1,002.8 797.9 -192.6 -3,587.6 -200.8 4,984.2 1,453.1 59.3

588.5 30.8 746.5 1,018.4 1,234.9 1,842.4 1,900.0 -2,467.7 -640.6 1,327.3 -388.9 -21.5

36,167.2 32,263.4 37,796.4 38,594.7 39,428.7 39,161.0 43,842.5 37,121.5 38,576.5 37,504.4 28,046.2 26,149.0

35,578.7 32,232.6 37,049.9 37,576.3 38,193.8 37,318.6 41,942.5 39,589.2 39,217.1 36,177.1 28,435.1 26,170.5

-996.1 -1,497.2 134.5 137.5 -391.7 -1,402.5 -1,769.1 -1,211.4 -164.8 1,416.8 716.2 -706.3

718.3 670.3 224.5 -2,036.2 441.5 707.6 228.0 305.4 603.9 1,468.6 635.4 468.1

-291.5 -434.4 192.1 -324.8 -281.9 -349.6 -551.5 -213.9 0.7 771.5 490.4 319.0

2009

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Economic Bulletin

57


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

Period

Capital & financial account

Direct investment

Portfolio investment

Financial derivative

2008 2009 2010P

-1,154.0 -34,651.2 -25,331.5

-16,940.6 -14,948.0 -19,379.7

-2,405.6 49,727.7 38,552.4

-14,769.9 -3,093.0 -7.4

-23,593.2 2,038.9 -17,228.1

Changes in reserve assets

Errors and omissions

109.3 289.6 -174.2

56,446.0 -68,666.4 -27,094.5

-2,043.5 1,860.7 -2,882.1

Capital transfers Other & acquisition of investment non-financial assets

2008

I ll III IV

1,193.5 1,939.6 2,595.0 -6,882.1

-6,108.5 -4,467.0 -3,988.1 -2,377.0

-4,401.5 8,356.7 -9,421.3 3,060.5

-1,249.5 -1,240.7 -3,550.4 -8,729.3

9,213.4 -6,200.3 6,889.4 -33,495.7

-110.4 -226.8 -217.7 664.2

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

-1,279.8 -2,535.2 1,386.0 385.5

2009

I II III IV

-4,368.3 -12,936.8 -6,977.2 -10,368.9

-2,777.9 -2,032.0 -3,305.7 -6,832.4

2,784.6 15,927.2 21,226.9 9,789.0

-2,656.9 599.0 -1,050.9 15.8

6,917.1 -7,914.9 -251.1 3,287.8

382.3 25.8 -103.9 -14.6

-9,017.4 -19,541.8 -23,492.6 -16,614.6

-175.0 1,379.4 -1,636.0 2,292.3

2010P I II III IV

-155.3 -9,099.0 -7,679.6 -8,397.6

-2,307.5 -2,564.1 -6,217.4 -8,290.7

10,159.6 7,098.4 14,032.1 7,262.3

746.6 -983.9 -388.6 618.5

16.7 -7,076.3 -4,725.3 -5,443.2

-175.6 27.1 31.1 -56.8

-8,595.1 -5,600.2 -10,411.5 -2,487.7

-108.0 241.1 -2,251.5 -763.7

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

386.7 808.3 -1.5 1,442.8 670.4 -173.6 1,052.9 2,866.3 -1,324.2 -3,562.9 -1,557.3 -1,761.9

-3,111.7 -199.9 -2,796.9 -2,670.0 -792.4 -1,004.6 -1,574.4 -1,537.7 -876.0 -1,087.9 -724.2 -564.9

-949.8 -3,144.5 -307.2 4,093.1 9,168.1 -4,904.5 -7,025.3 -343.4 -2,052.6 5,004.0 -2,524.0 580.5

-130.4 -298.1 -821.0 -560.3 -627.6 -52.8 -551.2 -69.3 -2,929.9 -3,888.3 -1,347.1 -3,493.9

3,201.2 2,762.6 3,249.6 -1,744.6 -9,293.2 4,837.5 1,209.3 6,139.7 -459.6 -23,932.3 -8,079.7 -1,483.7

-58.7 -14.9 -36.8 -86.7 -49.1 -91.0 -176.9 -107.8 67.0 353.5 213.5 97.2

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

-405.9 422.2 -1,296.1 -237.7 -1,673.2 -624.3 -860.3 721.3 1,525.0 -1,421.3 104.2 1,702.6

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

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

-643.0 -1,095.1 -1,039.8 -695.3 -855.9 -480.8 -1,644.2 -865.9 -795.6 -749.1 -2,855.1 -3,228.2

4,715.2 122.8 -2,053.4 6,879.7 4,157.3 4,890.2 8,470.1 4,004.4 8,752.4 5,829.4 2,992.6 967.0

473.2 -771.2 -2,358.9 274.1 1,279.7 -954.8 -155.1 -870.3 -25.5 -509.1 614.2 -89.3

2,644.7 -1,255.7 5,528.1 -4,669.7 1,818.3 -5,063.5 -3,538.9 2,696.1 591.7 -1,429.4 712.9 4,004.3

61.9 195.6 124.8 60.3 -16.5 -18.0 3.4 -29.4 -77.9 6.9 -56.4 34.9

-4,488.6 -1,260.0 -3,268.8 -5,444.1 -10,248.6 -3,849.1 -5,573.6 -7,095.2 -10,823.8 -7,965.8 -5,637.4 -3,011.4

-963.2 1,483.8 -695.6 83.9 711.9 583.6 -1,616.6 860.1 -879.5 1,614.1 64.2 614.0

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

-686.4 1,398.3 -867.2 641.8 -5,611.5 -4,129.3 -3,528.4 -1,421.7 -2,729.5 -5,869.7 -2,191.7 -336.2

-1,070.2 -613.7 -623.6 -1,163.6 -571.7 -828.8 -1,773.0 -1,184.2 -3,260.2 -5,393.9 -1,286.8 -1,610.0

118.0 2,484.0 7,557.6 5,792.1 747.2 559.1 8,592.4 1,061.0 4,378.7 7,447.3 2,227.2 -2,412.2

241.8 549.3 -44.5 80.6 -854.8 -209.7 -297.3 61.3 -152.6 0.4 106.9 511.2

7,076.7 -1,692.8 -5,367.2 5,343.4 -12,116.8 -302.9 -4,029.4 93.3 -789.2 -5,216.8 -1,494.4 1,268.0

-70.0 -43.2 -62.4 -120.5 101.3 46.3 -0.2 57.9 -26.6 -48.1 -25.3 16.6

-6,982.7 714.7 -2,327.1 -9,290.2 7083.3 -3393.3 -6020.9 -1,511.00 -2,879.60 -2,658.60 -1,719.30 1,890.20

1,258.2 -1,035.2 -331.0 -1,170.8 1,612.6 -200.7 -929.5 -554.0 -768.2 757.2 257.3 -1,778.2

P: Preliminary Source: The Bank of Korea

58

February 2011


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

Consumer prices

Export & import prices

Period All Items

Commodity

Service

Core

All items

Commodity

Export

Import

2009 2010

112.8 116.1

113.6 118.8

112.2 114.3

112.5 114.5

110.9 115.1

111.9 117.0

109.2 106.4

137.7 145.0

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

110.8 111.6 112.4 112.7 112.7 112.6 113.0 113.4 113.5 113.2 113.4 113.8

110.4 112.1 113.3 113.8 113.6 113.3 113.9 114.5 114.6 113.9 114.2 115.0

111.1 111.2 111.8 112.0 112.0 112.1 112.5 112.7 112.7 112.8 112.9 113.0

111.1 111.5 112.0 112.2 112.4 112.5 112.7 112.8 112.9 113.0 113.2 113.3

109.6 110.3 110.8 111.0 110.1 109.8 111.1 111.7 111.8 110.9 111.3 111.9

110.4 111.5 112.1 112.1 111.0 110.5 112.1 112.9 113.0 111.8 112.5 113.1

111.1 116.5 118.4 112.2 106.3 108.3 109.0 109.3 107.3 104.0 104.3 105.1

138.1 143.5 145.4 134.1 130.0 136.7 136.6 139.5 136.8 135.3 137.9 138.6

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

114.2 114.6 115.0 115.6 115.7 115.5 115.9 116.3 117.6 117.8 117.1 117.8

115.6 116.1 116.9 118.1 118.1 117.6 118.3 119.0 121.8 122.1 120.4 121.9

113.3 113.6 113.8 114.0 114.1 114.2 114.4 114.6 114.9 115.0 114.9 115.0

113.4 113.6 113.7 113.9 114.2 114.4 114.6 114.8 115.1 115.1 115.2 115.6

112.7 113.0 113.7 114.6 115.2 114.8 114.9 115.2 116.3 116.4 116.7 117.8

113.9 114.5 115.3 116.4 117.1 116.6 116.7 117.1 118.6 118.6 118.9 120.5

103.5 104.7 104.0 103.8 106.7 109.9 109.4 107.4 106.9 105.0 106.3 109.6

136.9 137.6 139.2 140.9 144.7 147.6 147.0 147.4 147.4 146.1 149.2 156.1

2011 1

118.9

123.8

115.8

116.3

119.7

122.7

-

-

Y-o-Y change (%) 2009 2010

2.8 2.9

3.4 4.6

2.4 4.2

3.6 1.8

-0.2 3.8

-0.5 4.6

-0.2 -2.6

-4.1 5.3

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

3.7 4.1 3.9 3.6 2.7 2.0 1.6 2.2 2.2 2.0 2.4 2.8

3.9 5.2 5.8 5.2 3.3 1.6 0.9 2.0 2.2 2.0 3.5 4.4

3.7 3.4 2.7 2.6 2.3 2.2 2.2 2.2 2.1 2.0 1.8 1.8

5.2 5.2 4.5 4.2 3.9 3.5 3.2 3.1 2.7 2.6 2.5 2.2

4.7 4.4 3.5 1.5 -1.3 -3.1 3.8 -3.0 -2.6 -3.1 -0.4 1.8

5.7 5.5 4.3 1.6 -1.9 -4.3 -5.1 -4.0 -3.4 -4.2 -0.7 2.0

18.6 22.9 17.4 7.7 -4.1 -3.3 -2.7 -1.1 -7.2 -16.5 -13.4 -8.6

16.7 18.0 10.6 -1.8 -13.9 -11.9 -12.9 -7.0 -10.8 -15.3 -7.5 -1.4

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

3.1 2.7 2.3 2.6 2.7 2.6 2.6 2.6 3.6 4.1 3.3 3.5

4.7 3.6 3.2 3.8 4.0 3.8 3.9 3.9 6.3 7.2 5.4 6.0

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

2.1 1.9 1.5 1.5 1.6 1.7 1.7 1.8 1.9 1.9 1.8 2.0

2.8 2.4 2.6 3.2 4.6 4.6 3.4 3.1 4.0 5.0 4.9 5.3

3.2 2.7 2.9 3.8 5.5 5.5 4.1 3.7 5.0 6.1 5.7 6.5

-6.9 -10.2 -12.2 -6.7 0.4 1.5 0.3 -1.7 -0.4 1.0 1.9 4.3

-0.9 -4.1 -4.3 5.1 11.3 8.0 7.5 5.7 7.8 8.1 8.2 12.7

2011 1

4.1

7.1

2.2

2.6

6.2

7.7

-

-

Source: The Bank of Korea

Economic Bulletin

59


12. Employment See graphs 8-1, 8-2 & 8-3 Wage workers (thous.)

Economically active persons (thous.) Period

Employed persons (thous.)

Unemployment (%) Regular

Temporary

Daily

All industry Manufacturing S.O.C&service 2009 2010

24,394 24,748

23,506 23,829

3,836 4,028

17,998 18,214

3.6 3.7

16,454 16,971

9,390 10,086

5,101 5,068

1,963 1,817

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

23,709 23,667 24,062 24,456 24,658 24,927 24,756 24,525 24,630 24,655 24,625 24,063

22,861 22,742 23,110 23,524 23,720 23,967 23,828 23,620 23,805 23,856 23,806 23,229

3,895 3,842 3,813 3,846 3,846 3,836 3,802 3,761 3,810 3,858 3,855 3,872

17,663 17,539 17,701 17,899 18,016 18,251 18,210 18,048 18,155 18,130 18,267 18,104

3.6 3.9 4.0 3.8 3.8 3.9 3.7 3.7 3.4 3.2 3.3 3.5

16,053 15,953 16,076 16,353 16,484 16,736 16,589 16,479 16,687 16,690 16,790 16,555

9,102 9,194 9,174 9,227 9,316 9,340 9,383 9,472 9,606 9,628 9,603 9,632

4,982 4,862 4,941 5,051 5,076 5,281 5,255 5,117 5,151 5,170 5,256 5,074

1,969 1,897 1,961 2,076 2,092 2,115 1,952 1,890 1,931 1,892 1,931 4,860

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

24,082 24,035 24,382 24,858 25,099 25,158 25,232 24,863 24,911 25,004 24,847 24,538

22,865 22,867 23,377 23,924 24,306 24,280 24,301 24,005 24,054 24,172 24,109 23,684

3,924 3,886 3,924 3,991 4,036 4,017 4,040 4,058 4,062 4,098 4,139 4,156

17,796 17,762 18,047 18,285 18,499 18,422 18,489 18,175 18,216 18,264 18,340 18,272

5.0 4.9 4.1 3.8 3.2 3.5 3.7 3.3 3.4 3.3 3.0 3.5

16,297 16,282 16,617 16,994 17,255 17,193 17,228 17,048 17,103 17,178 17,300 17,154

9,712 9,786 9,926 10,011 10,078 10,089 10,107 10,151 10,217 10,280 10,334 10,347

4,860 4,838 4,976 5,147 5,223 5,165 5,215 5,122 5,106 5,089 5,069 4,999

1,725 1,657 1,714 1,836 1,953 1,938 1,905 1,775 1,780 1,809 1,898 1,808

Y-o-Y change (%) 2009 2010

0.2 1.5

-0.3 1.4

-3.2 5.0

0.5 1.2

-

1.5 3.1

4.3 7.4

0.4 -0.7

-7.4 -7.4

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

-0.1 -0.2 -0.2 -0.2 -0.1 0.8 0.3 0.6 0.7 0.3 0.2 0.1

-0.4 -0.6 -0.8 -0.8 -0.9 0.0 -0.3 0.0 0.3 0.0 0.0 -0.1

-3.2 -4.4 -4.7 -3.9 -3.5 -3.9 -4.3 -3.5 -3.0 -2.2 -1.1 -0.4

0.1 0.2 -0.2 -0.2 -0.2 1.0 0.7 1.0 1.1 0.7 1.0 0.9

-

0.1 0.7 0.5 0.6 0.5 2.1 1.4 2.3 2.9 2.3 2.5 2.3

3.3 4.4 3.1 3.7 3.4 3.3 3.6 4.0 5.1 5.4 5.4 6.2

-2.6 -3.8 -1.6 -1.5 -1.7 2.9 1.8 3.0 2.7 2.7 3.7 -0.2

-6.3 -4.1 -5.4 -7.2 -6.2 -4.5 -9.1 -6.7 -6.5 -11.7 -12.0 -9.3

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

1.6 1.6 1.3 1.6 1.8 0.9 1.9 1.3 1.1 1.4 0.9 2.0

0.0 0.5 1.2 1.7 2.5 1.3 2.0 1.6 1.0 1.3 1.3 2.0

0.8 1.2 2.9 3.8 4.9 4.7 6.2 7.9 6.6 6.2 7.4 7.3

0.8 1.3 2.0 2.2 2.7 0.9 1.5 0.7 0.3 0.7 0.4 0.9

-

1.5 2.1 3.4 3.9 4.7 2.7 3.9 3.5 2.5 2.9 3.0 3.6

6.7 6.4 8.2 8.5 8.2 8.0 7.7 7.2 6.4 6.8 7.6 7.4

-2.4 -0.5 0.7 1.9 2.9 -2.2 -0.8 0.1 -0.9 -1.6 -3.6 -1.5

-12.4 -12.6 -12.6 -11.5 -6.6 -8.4 -2.4 -6.1 -7.8 -4.4 -1.7 -2.2

Source: Statistics Korea

60

February 2011


13. Financial indicators See graphs 9-1 & 9-4 (period average) Yields (%)

Stock

Period Call rate (1 day)

CD (91 days)

Corporate bonds (3 years, AA-)

Treasury bonds (3 years)

Treasury bonds (5 years)

KOSPI (end-period)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2.4 2.1 1.8 1.8 1.9 1.9 1.9 2.0 2.0 2.0 2.0 2.0

3.2 2.7 2.5 2.4 2.4 2.4 2.4 2.5 2.6 2.8 2.8 2.8

7.3 7.1 6.1 5.7 5.2 5.2 5.5 5.7 5.6 5.6 5.4 5.4

3.4 3.8 3.7 3.8 3.8 4.1 4.1 4.4 4.4 4.5 4.3 4.2

4.0 4.6 4.5 4.4 4.5 4.7 4.6 4.9 4.9 4.9 4.8 4.8

1,162.11 1,063.03 1,206.26 1,369.40 1,395.89 1,390.07 1,577.29 1,591.85 1,673.14 1,580.69 1,555.60 1,682.77

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

2.0 2.0 2.0 2.0 2.0 2.0 2.2 2.3 2.3 2.3 2.4 2.5

2.9 2.9 2.8 2.5 2.5 2.5 2.6 2.6 2.7 2.7 2.7 2.8

5.4 5.3 5.0 4.7 4.5 4.7 4.8 4.7 4.4 4.1 4.2 4.2

4.3 4.2 3.9 3.8 3.7 3.8 3.9 3.7 3.5 3.2 3.4 3.3

4.8 4.8 4.5 4.4 4.4 4.4 4.5 4.3 3.9 3.7 4.0 4.0

1,602.43 1,594.58 1,692.85 1,741.56 1,641.25 1,698.29 1,759.33 1,742.75 1,872.81 1,882.95 1,904.63 2,051.00

2011 1

2.7

2.9

4.5

3.7

4.3

2,069.73

Source: The Bank of Korea

Economic Bulletin

61


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

Period

(billion won)

Reserve money

M1

M2

Lf

2008 2009 2010

52,272.8 61,739.6 67,585.1

307,273.6 357,344.1 399,412.3

1,367,713.4 1,508,550.4 1,639,675.1

1,794,841.2 1,937,336.0 2,096,534.8

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

64,040.6 63,061.7 65,669.5 61,379.9 60,082.5 59,530.3 59,420.2 60,570.3 59,650.3 63,681.7 61,154.5 62,633.2

331,358.0 334,521.7 342,777.0 350,446.0 355,922.0 362,111.3 363,421.4 361,012.4 367,070.3 371,531.7 370,979.7 376,977.3

1,440,275.8 1,457,931.3 1,470,443.1 1,482,009.7 1,491,542.7 1,501,898.3 1,512,822.5 1,524,879.7 1,535,279.8 1,551,319.5 1,564,175.8 1,570,027.1

1,868,843.3 1,879,102.7 1,889,071.5 1,897,923.7 1,913,084.5 1,925,418.1 1,940,223.0 1,956,130.6 1,972,408.5 1,990,372.5 2,000,503.6 2,014,950.4

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

65,054.7 66,563.8 65,643.6 64,274.7 67,835.1 66,250.8 66,958.2 67,318.7 70,266.5 69,905.0 69,476.8 71,472.9

381,218.2 387,858.6 386,015.4 388,174.7 394,880.2 400,132.8 403,785.1 400,882.5 403,413.5 405,000.1 414,912.8 425,673.9

1,574,215.8 1,595,403.8 1,607,896.1 1,621,176.9 1,630,904.7 1,647,981.2 1,653,057.5 1,653,907.2 1,659,400.1 1,669,376.6 1,679,909.9 1,682,871.9

2,019,563.5 2,041,164.1 2,056,233.7 2,069,616.1 2,084,007.4 2,104,724.0 2,111,672.2 2,113.052.7 2,123.558.2 2,134,385.4 2,145,901.5 2,154,538.9

Y-o-Y change (%) 2008 2009 2010

7.7 18.1 9.5

-1.8 16.3 11.8

14.3 10.3 8.7

11.9 7.9 8.2

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

27.4 20.0 32.5 21.1 19.0 16.1 17.4 16.5 11.9 20.2 12.7 5.6

8.3 9.8 14.3 17.4 17.0 18.5 18.5 18.5 19.5 19.6 17.3 16.4

12.0 11.4 11.1 10.6 9.9 9.6 9.7 10.0 10.0 10.5 9.7 9.3

9.2 8.8 8.4 7.7 7.3 7.0 7.7 8.0 7.7 7.8 7.6 8.1

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

1.6 5.6 0.0 4.7 12.9 11.3 12.7 11.1 17.8 9.8 13.6 14.1

15.0 15.9 12.6 10.8 10.9 10.5 11.1 11.0 10.2 9.0 11.8 12.9

9.3 9.4 9.3 9.4 9.3 9.7 9.3 8.5 8.1 7.6 7.4 7.2

8.1 8.6 8.8 9.0 8.9 9.3 8.8 8.0 7.7 7.2 7.3 6.9

Source: The Bank of Korea

62

February 2011


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

/US$

/100

/Euro

Period End-period

Average

End-period

Average

End-period

Average

2008 2009 2010

1,257.5 1,167.6 1,138.9

1,102.6 1,276.4 1,156.3

1,393.9 1,262.8 1,397.1

1,076.6 1,363.1 1,320.6

1,776.2 1,674.3 1,513.6

1,606.8 1,774.4 1,532.9

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

1,368.5 1,516.4 1,377.1 1,348.0 1,272.9 1,284.7 1,240.5 1,244.9 1,188.7 1,200.6 1,167.4 1,167.6

1,346.1 1,429.5 1,462.0 1,341.9 1,258.7 1,261.4 1,264.0 1,238.4 1,219.2 1,175.3 1,164.2 1,166.5

1,521.0 1,541.1 1,414.8 1,382.9 1,314.1 1,336.3 1,299.2 1,332.8 1,318.8 1,312.6 1,348.3 1,262.8

1,487.2 1,546.1 1,495.7 1,356.2 1,304.5 1,305.5 1,338.1 1,304.3 1,332.4 1,300.8 1,304.4 1,300.8

1,768.7 1,930.1 1,816.4 1,786.8 1,772.7 1,809.3 1,745.9 1,779.1 1,734.3 1,781.3 1,751.7 1,674.3

1,793.8 1,829.9 1,904.0 1,771.6 1,719.1 1,767.8 1,778.8 1,776.3 1,774.2 1,742.9 1,736.6 1,703.7

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

1,156.5 1,158.4 1,130.8 1,115.5 1,200.2 1,210.3 1,187.2 1,189.1 1,142.0 1,126.6 1,157.3 1,138.9

1,138.8 1,157.1 1,137.6 1,117.1 1,163.1 1,212.3 1,207.3 1,179.9 1,167.0 1,123.4 1,126.2 1,147.6

1,287.0 1,299.3 1,217.7 1,186.8 1,318.5 1,364.6 1,370.0 1,406.0 1,363.3 1,390.7 1,373.4 1,397.1

1,248.3 1,281.7 1,255.8 1,195.3 1,265.2 1,333.6 1,377.7 1,380.2 1,384.2 1,371.1 1,366.6 1,376.7

1,614.6 1,569.2 1,518.2 1,479.3 1,474.2 1,475.4 1,552.4 1,505.9 1,556.0 1,569.3 1,518.3 1,513.6

1,627.5 1,584.5 1,544.9 1,501.7 1,460.7 1,480.9 1,540.3 1,523.3 1,518.7 1,559.6 1,541.3 1,515.4

2011 1

1,114.3

1,120.1

1,356.6

1,356.3

1,514.0

1,495.4

Y-o-Y change (%) 2008 2009 2010

34.0 -7.1 -2.5

18.7 15.8 -9.4

67.3 -9.4 10.6

36.3 26.6 -3.1

28.6 -5.7 -9.6

26.2 10.4 -13.6

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

45.0 61.8 38.9 34.8 23.4 23.1 23.0 15.1 0.1 -7.0 -21.3 -7.1

42.8 51.3 49.2 36.0 21.4 22.5 24.0 18.9 7.9 -11.4 -16.2 -15.1

71.1 73.2 41.5 43.8 34.5 36.1 39.3 34.9 15.3 0.5 -13.2 -9.4

70.4 75.6 53.8 40.9 31.2 35.6 40.2 36.9 25.6 -2.0 -9.1 -13.5

26.1 35.6 16.1 14.8 10.8 9.9 11.1 11.9 1.6 7.0 -8.4 -5.7

29.4 31.1 25.3 13.9 6.5 10.4 10.7 13.1 9.0 -1.3 -1.8 -7.7

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

-15.5 -23.6 -17.9 -17.2 -5.7 -5.8 -4.3 -4.5 -3.9 -6.2 -0.9 -2.5

-15.4 -19.1 -22.2 -16.8 -7.6 -3.9 -4.5 -4.7 -4.3 -4.4 -3.3 -1.6

-15.4 -15.7 -13.9 -14.2 0.3 2.1 5.4 5.5 3.4 5.9 1.9 10.6

-16.1 -17.1 -16.0 -11.9 -3.0 2.2 3.0 5.8 3.9 5.4 4.8 5.8

-8.7 -18.7 -16.4 -17.2 -16.8 -18.5 -11.1 -15.4 -10.3 -11.9 -13.3 -9.6

-9.3 -13.4 -18.9 -15.2 -15.0 -16.2 -13.4 -13.8 -14.4 -10.5 -11.2 -11.1

2011 1

-3.6

-1.6

5.4

8.7

-6.2

-8.1

Source: The Bank of Korea

Economic Bulletin

63



Editor-in-Chief Bang, Moon-Kyu (MOSF) Editorial Board Kim, Young-Min (MOSF) Shim, Jae-Hak (KDI) Lee, In-Sook (KDI) Coordinators Kim, Dae-Hyun (MOSF) Cho, Hyun-Joo (KDI) Editors Cho, Eun-Hyung (MOSF) Kang, Ji-Eun (KDI) Lee, Ji-Youn (KDI)

Useful Internet Websites Economy-related Websites Recommended

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



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