201311

ISSN 2287-7266

Republic of Korea ECONOMIC BULLETIN (Republic of Korea)

ECONOMIC BULLETIN

03 The Green Book: Current Economic Trends 47 Economic News Briefing

Korea Grows 1.1% in Q3 Exports Surpass US$50 Billion in October Government to Ease Forex Transaction Regulations ‘Climate Finance Week’ to be Held in December

For free subscriptions and enquiries, please contact:

MOSF/KDI

Economic Information and Education Center Korea Development Institute 47 Hoegiro, Dongdaemun-gu Seoul, 130-740 Republic of Korea Tel. +82 2 958 4645 Fax. +82 2 3295 0748 E-mail. jiyounlee@kdi.re.kr Website. http://eiec.kdi.re.kr

53 Statistical Appendices Vol.35 No.11 November 2013

Foreign Press Spokesperson’s Office Ministry of Strategy and Finance Government Complex, 477 Galmae-ro Sejong, 339-012 Republic of Korea Tel. +82 2 731 1530 Fax. +82 2 731 1540 E-mail. fppr@mosf.go.kr Website. http://english.mosf.go.kr

| Economic Information and Education Center

Vol.35 No.11

November 2013

Republic of Korea Vol.35 No.11

November 2013

Contents

Economic Bulletin The Green Book: Current Economic Trends Overview ......................................................................................................................... 03 1. External economic situation ..................................................................................... 04 2. Private consumption .................................................................................................. 09 3. Facility investment ..................................................................................................... 12 4. Construction investment ........................................................................................... 14 5. Exports and imports .................................................................................................. 17 6. Mining and manufacturing production .................................................................. 19 7. Service sector activity ................................................................................................ 22 8. Employment .............................................................................................................. 24 9. Financial markets ........................................................................................................ 28 9.1 Stock market 9.2 Exchange rate 9.3 Bond market 9.4 Money supply & money market 10. Balance of payments ................................................................................................ 32 11. Prices and international commodity prices ......................................................... 35 11.1 Prices 11.2 International oil and commodity prices 12. Real estate market ................................................................................................... 40 12.1 Housing market 12.2 Land market 13. Composite indices of business cycle indicators .................................................. 45

Economic News Briefing .......................................................................... 47 Statistical Appendices ................................................................................ 53

The Green Book Current Economic Trends Overview Some major economic indicators have worsened recently due to temporary factors such as strikes in the car manufacturing industry and the Chuseok holiday, but employment and inflation remain stable, and the economy improved in the third quarter as mining and manufacturing production rebounded for the first time in two quarters.

The economy added 463,000 jobs year-on-year in September, up from 432,000 in the previous month.

Consumer price inflation went down year-on-year in October from 0.8 percent to 0.7 percent due to a fall in agricultural and petroleum product prices.

Mining and manufacturing production fell 2.1 percent month-on-month in September, negatively affected by temporary factors, such as strikes in the car manufacturing industry and the Chuseok holiday. Service output increased by 0.3 percent from the previous month led by strong hotels & restaurants.

Retail sales decreased 2.0 percent in September compared with the previous month, as durable goods sales plunged due to strikes in the car manufacturing industry, and semi-durable and nondurable goods sales also fell.

Facility investment declined 4.1 percent month-on-month in September as poor transportation equipment investment offset an increase in machinery investment. Construction investment went down by 2.2 percent due to a fall in building construction.

The cyclical indicator of the conincident composite index fell 0.1 point month-on-month in September, and the leading composite index dropped 0.2 points.

Exports in October climbed 7.3 percent year-on-year in line with an increase in shipments of automobiles and mobile phones to advanced countries including the US and EU. The trade balance remained in the black at US$4.9 billion.

In October, stock prices rose and the won strengthened as foreign investors continued to net buy Korean stocks amid easing US debt default uncertainties and increased confidence in Korea’s strong fundamentals.

Housing prices continued to increase month-on-month in October from 0.05 percent to 0.29 percent, while rental prices of Jeonse homes (lump-sum deposits with no monthly payments) stayed on an upward track, affected by the high seasonal demand and decreasing supply of Jeonse homes, up from 0.51 percent to 0.68 percent.

The Green Book | 3

The Korean economy has showed clear signs of recovery. However, private sector investment has yet to pick up and external uncertainites, which include the US fiscal situation and the exit from unconventional monetary stimulus, remain.

The Korean government will closely monitor the global and domestic economic situations and continue to pursue policies that stimulate the economy, such as measures to boost investment.

The government will also focus on supporting the lives of the low- and middle-income classes through job creation and by stabilizing the prices of necessities, while continuing to adopt policies to strengthen the economy.

1.

The global economy continues to gradually recover led by advanced economies, such as the US and Japan, but concerns still remain regarding slowdowns in emerging economies owing to uncertainties surrounding quantitative easing tapering in the US.

External economic situation

* The IMF pointed out that the global economy is in the middle of a transition as advanced economies appear to be recovering, while emerging economies are experiencing a slowdown in economic growth (October 8, IMF World Economic Outlook). ** IMF World Economc Outlook (%, Jul [ Oct): 3.1 [ 2.9 (2013), 3.8 [ 3.6 (2014)

The US debt limit was suspended until early next year, causing fiscal uncertainties to persist, and financial anxiety factors in emerging economies remain due to the possibility of US quantitative easing tapering. * The FOMC decided to maintain its current level of monetary stimulus in its October meeting (buying US$85 billion of bonds per month), and short-term risks have lowered as the US federal government has resumed operations (until January 15, 2014) and the debt limit was suspended (until February 7, 2014), but there is a possibility that there will be an increase in uncertainty once again in the beginning of next year.

World GDP growth 6

(%)

5 4 3 2 1 0 -1

2001

4 | The Green Book

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

US

The US economy grew 2.5 percent in the second quarter of 2013. In September, industrial production expanded, but employment and consumption wavered. The economy is expected to continue recovering in the second half of the year led by consumption and investment.

Contribution to growth rate (Q1 [ Q2, %p)

1.54 [ 1.24 (private consumption), -0.57 [ 0.56 (corporate investment), 0.34 [ 0.40 (housing investment), 0.93 [ 0.41 (inventory investment), -0.28 [ -0.07 (exports), -0.82 [ -0.07 (government spending) * Due to the US federal government shutdown, US third quarter GDP estimates were not released until November 7 (initially scheduled to be released on October 30).

Industrial production in September improved 0.6 percent month-on-month (up from 0.4%), and the ISM Manufacturing Index, which forecasts business sentiment, was 56.4 in October, the highest the index has registered since April 2011.

ISM Manufacturing Index (base=50) 53.1 (Jan 2013) [ 54.2 (Feb) [ 51.3 (Mar) [ 50.7 (Apr) [ 49.0 (May) [ 50.9 (Jun) [ 55.4 (Jul) [ 55.7 (Aug) [ 56.2 (Sep) [ 56.4 (Oct)

US GDP growth and industrial production Source: US Department of Commerce & US Federal Reserve Board 10

(%)

8 6 4 2 0 -2 -4 -6 -8 -10 2001. Q1

2002. Q1

2003. Q1

2004. Q1

2005. Q1

2006. Q1

2007. Q1

2008. Q1

2009. Q1

2010. Q1

GDP (q-o-q, annualized rate)

2011. Q1

2012. Q1

2013. Q1

Industrial production (q-o-q)

September retail sales fell 0.1 percent month-on-month, and consumer sentiment slowed down a bit owing to fiscal uncertainties as the University of Michigan Consumer Sentiment Index fell from 77.5 to 73.2.

University of Michigan Consumer Sentiment Index

73.8 (Jan 2013) [ 77.6 (Feb) [ 78.6 (Mar) [ 76.4 (Apr) [ 84.5 (May) [ 84.1 (Jun) [ 85.1 (Jul) [ 82.1 (Aug) [ 77.5 (Sept) [ 73.2 (Oct)

The housing market continues to recover as housing prices rose for 19 consecutive months, but home sale indicators were mixed. Existing home sales decreased 1.9 percent in September, while new home sales increased 7.9 percent in August.

Case-Shiller Home Price Index (q-o-q, %)

-0.4 (Q1 2012) [ 2.2 (Q2) [ 1.7 (Q3) [ 1.9 (Q4) [ 3.4 (Q1 2013) [ 3.6 (Q2) 0.6 (Jul 2013) [ 0.9 (Aug) The Green Book | 5

New home sales (m-o-m, %)

15.7 (Jan 2013) [ -2.8 (Feb) [ -0.4 (Mar) [ 0.7 (Apr) [ -1.6 (May) [ 3.6 (Jun) [ -13.4 (Jul) [ 7.9 (Aug)

The recovery in the employment market continued to waver in September as nonfarm payrolls increased by only 148,000, falling well below expectations (180,000), despite a decrease in the unemployment rate from 7.3 percent to 7.2 percent.

Nonfarm payroll increase (m-o-m, thousand) 148 (Jan 2013) [ 332 (Feb) [ 142 (Mar) [ 199 (Apr) [ 176 (May) [ 172 (Jun) [ 89 (Jul) [ 193 (Aug) [ 148 (Sep) Nonfarm payroll increase in September by industry (Out of 148,000 jobs added, thousand) 126 (private sector): 4 (mining), 2 (manufacturing), 20 (construction), 100 (service) 22 (public sector)

* The release of the October employment indicators was delayed until November 8 due to the US federal government shutdown (initially scheduled to be released on November 1).

US nonfarm payroll growth and unemployment rate Sourse : US Department of Labor 800

(thousand)

(%)

12

600

10

400

8

200 0

6

-200

4

-400 -600

2

-800 -1,000 2001. 1

0 2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

US nonfarm payroll growth (m-o-m, left)

2012. 1

2013. 1

Unemployment rate (right)

(Percentage change from previous period)

2011

2012

2013¹

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Jul

Aug

Sep

Real GDP²

1.8

2.8

3.7

1.2

2.8

0.1

1.1

2.5

-

-

-

- Personal consumption expenditure

2.5

2.2

2.9

1.9

1.7

1.7

2.3

1.8

-

-

-

- Corporate fixed investment

7.6

7.3

5.8

4.5

0.3

9.8

-4.6

4.7

-

-

-

- Housing construction investment

0.5

12.9

23.0

5.7

14.1

19.8

12.5

14.2

-

-

-

Industrial production

4.1

3.8

1.4

0.6

0.0

0.6

1.0

0.1

0.0

0.4

0.6

Retail sales

8.0

5.0

1.7

-0.3

1.3

1.5

1.0

0.9

0.4

0.2

-0.1

Existing home sales

2.4

9.9

5.5

-2.0

5.1

3.3

1.0

2.4

6.5

1.7

-1.9

Unemployment rate³

9.0

8.1

8.3

8.2

8.1

7.8

7.7

7.6

7.4

7.3

7.2

Consumer prices (y-o-y)

3.2

2.1

2.8

1.9

1.7

1.9

1.7

1.4

2.0

1.5

1.2

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

6 | The Green Book

China

The Chinese economy grew a bit faster in the third quarter of 2013 (7.8%) than the second quarter (7.5%), and retail sales and investment both slightly improved.

The manufacturing PMI has increased month-on-month for four consecutive months.

Manufacturing PMI (base = 50) 50.1 (Jun 2013) [ 50.3 (Jul) [ 51.0 (Aug) [ 51.1 (Sept) [ 51.4 (Oct) Following the Third Plenary Session of the 18th Communist Party Central Committee, the Chinese government is expected to announce economic reform measures, such as new urbanization measures, social welfare reforms, financial reforms and measures to strengthen private sector corporate competitiveness.

(Percentage change from same period in previous year)

2011

2012¹

Annual Annual Real GDP

2013¹

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Aug

Sep

9.3

7.7

8.1

7.6

7.4

7.9

7.7

7.5

7.8

-

-

Industrial production

13.9

10.0

11.6

9.5

9.1

10.0

9.5

9.1

10.1

10.4

10.2

Fixed asset investment (accumulated)

23.8

20.6

20.9

20.4

20.5

20.6

20.9

20.1

20.2

20.3

20.2

Retail sales

17.1

14.3

14.9

13.9

13.5

14.9

12.4

13.0

13.3

13.4

13.3

Exports

20.7

8.3

8.8

10.5

4.5

9.5

18.9

4.2

4.0

7.2

-0.3

Consumer prices²

5.4

2.6

3.8

2.8

1.9

2.1

2.4

2.4

2.8

2.6

3.1

Producer prices²

6.0

-1.7

0.1

-1.4

-3.3

-2.3

-1.7

-2.7

-1.7

-1.6

-1.3

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

China’s GDP growth and fixed asset investment Source: National Bureau of Statistics of China 18

(%)

(%)

70

16

60

14

50

12

40

10

30

8

20

6

10

4 2001. Q1

0 2002. Q1

2003. Q1

GDP (y-o-y, left)

2004. Q1

2005. Q1

2006. Q1

2007. Q1

2008. Q1

2009. Q1

2010. Q1

2011. Q1

2012. Q1

2013. Q1

Fixed asset investment (accumulated, y-o-y, right)

The Green Book | 7

Japan

The Japanese economy grew 0.9 percent quarter-on-quarter in the second quarter of 2013, maintaining its recovery momentum from the first quarter when it grew 1.0 percent. Economic indicators, such as industrial production, retail sales and exports, all continued to improve in September as well.

The consumer price index (CPI) rose for the fourth consecutive month, increasing by 1.1 percent in September. The core CPI increased by 0.7 percent.

On October 1, the Japanese government decided to raise the consumption tax (beginning in April 2014, 5% [ 8%), and announced stimulus measures (about 5 trillion yen), including tax reductions for corporate investment and an expansion of public sector projects.

(Percentage change from previous period)

2011

2012¹

Annual Annual

2013¹

Q1

Q2

Q3

Q4

Q1

Q2

Jul

Aug

Sep

Real GDP

-0.6

2.0

1.2

-0.3

-0.9

0.3

1.0

0.9

-

-

-

Industrial production

-2.4

-0.3

1.2

-2.0

-4.2

-1.9

2.2

1.5

3.4

-0.7

1.5

Retail sales

-1.2

1.6

1.2

0.3

-0.9

-0.2

0.6

1.1

-1.7

0.9

1.8

Exports (y-o-y)

-2.7

-2.8

-1.6

4.8

-8.2

-5.5

1.2

7.1

12.2

14.6

11.5

Consumer prices (y-o-y)

-0.3

-0.0

0.3

0.1

-0.4

-0.2

-0.6

-0.3

0.7

0.9

1.1

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

Japan’s GDP growth and industrial production Source: Japan’s Cabinet Office, Ministry of Economy, Trade and Industry 6

(%)

(%)

25 20

4

15 10

2

5 0

0

-5 -2

-10 -15

-4

-20 -6 2001. Q1

-25 2002. Q1

2003. Q1

GDP (q-o-q, left)

Eurozone

2004. Q1

2005. Q1

2006. Q1

2007. Q1

2008. Q1

2009. Q1

2010. Q1

2011. Q1

2012. Q1

2013. Q1

Industrial production (q-o-q, right)

The recession in the eurozone appears to have ended with Germany and other eurozone countries continuing to recover, but uncertainties remain present as the eurozone maintained a 12.2 percent unemployment rate, the highest unemployment rate the region has ever posted.

Manufacturing PMI (base = 50) 47.9 (Jan 2013) [ 47.9 (Feb) [ 46.8 (Mar) [ 46.7 (Apr) [ 48.3 (May) [ 48.8 (Jun) [ 50.3 (Jul) [ 51.4 (Aug) [ 51.1 (Sep) [ 51.3 (Oct)

8 | The Green Book

Unemployment rate (%) 12.0 (Jan 2013) [ 12.1 (Feb) [ 12.1 (Mar) [ 12.1 (Apr) [ 12.1 (May) [ 12.1 (Jun) [ 12.2 (Jul) [ 12.2 (Aug) [ 12.2 (Sep) (Percentage change from previous period)

2011

2012

Annual Annual

2013¹

Q1

Q2

Q3

Q4

Q1

Q2

Jul

Aug

Sep

Oct

Real GDP

1.4

-0.5

0.0

-0.3

-0.1

-0.5

-0.2

0.3

-

-

-

-

Industrial production

3.5

-2.4

-0.5

-0.5

0.4

-2.4

0.2

1.2

-1.5

1.0

-

-

Retail sales

-0.5

-1.7

-0.3

-0.8

0.0

-1.5

0.3

0.3

0.5

0.7

-

-

Exports (y-o-y)

12.7

7.4

8.6

8.1

7.4

5.5

1.2

1.9

2.7

-5.4

-

-

2.7

2.1

2.7

2.7

2.5

2.3

1.9

1.4

1.6

1.3

1.1

0.7

Consumer prices (y-o-y) 1. Preliminary Source: Eurostat

Eurozone’s GDP growth and industrial production Source: Eurostat 3

(%)

(%)

10 8

2

6 4

1

2 0

0

-2 -1

-4 -6

-2

-8 -3 2001. Q1

-10 2002. Q1

2003. Q1

2004. Q1

2005. Q1

2006. Q1

2007. Q1

2008. Q1

2009. Q1

2010. Q1

GDP (q-o-q, left)

2.

Private consumption

2011. Q1

2012. Q1

2013. Q1

Industrial production (q-o-q, right)

Private consumption in the third quarter (advanced estimates of GDP) increased 1.1 percent compared to the previous quarter and 2.2 percent compared to a year ago.

(Percentage change from previous period)

2011 Private consumption² (y-o-y)

2012¹

2013¹

Annual

Q1

Q2

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

2.4

0.7

0.6

0.1

-0.2

1.7

0.8

0.4

0.7

0.8

-0.4

0.7

1.1

-

3.2

3.1

2.1

1.2

-

1.3

1.0

1.7

2.7

1.5

1.8

2.2

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

The Green Book | 9

Private consumption Source: The Bank of Korea (national accounts) 14

(%)

12 10 8 6 4 2 0 -2 -4 -6 2001. Q1

2002. Q1

2003. Q1

2004. Q1

2005. Q1

2006. Q1

2007. Q1

2008. Q1

2009. Q1

2010. Q1

2011. Q1

Private consumption (y-o-y)

2012. Q1

2013. Q1

Private consumption (q-o-q)

Retail sales in September fell 2.0 percent compared to the previous month and 1.5 percent compared to the previous year as sales of durable goods (down 3.6%, m-o-m), semidurable goods (down 2.4%, m-o-m), and nondurable goods (down 1.1%, m-o-m) all decreased.

(Percentage change from previous period)

2011 Retail sales (y-o-y)

20131

2012

Annual

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3¹

Aug1

Sep1

4.5

0.5

0.0

2.3

1.0

0.3

1.2

0.4

-1.2

0.4

1.2

0.3

-2.0

-

4.0

2.6

-

2.8

1.4

2.6

2.5

0.2

1.1

0.6

2.4

-1.5

- Durable goods²

10.6

0.7

-0.9

5.3

2.5

1.9

2.8

2.3

-4.4

0.8

0.6

-0.3

-3.6

• Automobiles

7.0

4.6

-11.3

2.4

2.4

9.4

-1.6

9.0

-9.0

2.1

6.1

-0.9

-8.3

- Semi-durable goods³

3.7

1.7

-2.7

-1.1

-0.4

0.3

-1.1

1.7

1.0

-0.7

0.5

1.3

-2.4

- Nondurable goods⁴

2.1

-0.1

1.6

2.3

0.9

-0.6

1.5

-1.1

-0.5

0.7

1.7

0.1

-1.1

1. Preliminary 2. Durable goods: Automobiles, electronic appliances, furniture, telecommunications devices, etc.

3. Semi-durable goods: Clothing, footwear, etc.

4. Nondurable goods: Food, medicine, cosmetics, fuel, tobacco, etc.

Source: Statistics Korea

There is a possibility that retail sales in October will improve somewhat compared to September owing to stronger automobile sales, despite a drop in clothing and groceries sales.

Domestic car sales recovered somewhat after the automobile strikes ended, leading to an increase in sales compared to the previous month and a small decrease in sales compared to a year ago.

Domestic car sales (thousands of cars)

98 (Mar 2013) [ 98 (Apr) [ 99 (May) [ 94 (Jun) [ 106 (Jul) [ 95 (Aug) [ 86 (Sep) [ 99 (Oct)

Department store sales decreased year-on-year as seasonal clothing sales fell due to the unusually warm temperatures.

The decrease in large discount store sales accelerated as marine product sales fell due to fears regarding radiation from Japan.

10 | The Green Book

(Percentage change from same period in previous year)

2013 Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Credit card use

5.6

4.5

3.6

4.1

7.2

7.6

1.0

5.1

Department store sales

7.5

-1.9

1.0

4.1

-2.1

7.0

2.8

-1.7

Large discount store sales

-4.4

-9.8

-4.3

4.2

-4.9

-2.4

-5.2

-6.4

Domestic sales of gasoline

7.6

6.5

2.6

2.9

-3.4

12.3

1.3

-0.1

Domestic sales of cars

-1.0

0.8

-1.9

-8.5

5.2

23.9

-14.5

-3.0

Sources: Credit Finance Association of Korea, Ministry of Trade, Industry and Energy, Korea National Oil Corporation, Korea Automobile Manufacturers Association, Ministry of Strategy and Finance (for October data)

Retail sales Source: Statistics Korea (industrial activity trend) 25

(%)

20 15 10 5 0 -5 -10 2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Consumer goods sales (m-o-m)

Consumer goods sales (y-o-y)

Retail sales by type Source: Statistics Korea (industrial activity trend) 50

(y-o-y, %)

40 30 20 10 0 -10 -20 -30 2001. 1

2002. 1 Durable goods

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

Semi-durable goods

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1 Nondurable goods

The Green Book | 11

3.

Facility investment (advanced estimates of GDP) rose 1.2 percent quarter-onquarter and 1.8 percent year-on-year in the third quarter of 2013.

Facility investment

(Percentage change from previous quarter)

2011 Facility investment² (y-o-y)

2012¹ Q2

2013¹

Annual

Annual

Q1

Q3

Q4

Q1

Q2

Q3

3.6

-1.9

10.4

-7.8

-5.2

-1.8

2.6

-0.2

1.2

-

-

8.8

-3.5

-6.9

-5.2

-11.9

-4.6

1.8

- Machinery

4.2

-1.1

11.3

-8.5

-6.0

-3.2

1.1

0.6

-

- Transportation equipment

1.4

-5.0

6.7

-5.2

-1.7

3.7

7.8

-2.9

-

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

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

40 30 20 10 0 -10 -20

-30 2001. Q1

2002. Q1

2003. Q1

2004. Q1

2005. Q1

2006. Q1

2007. Q1

2008. Q1

2009. Q1

2010. Q1

2011. Q1

Facility investment (q-o-q)

2012. Q1

2013. Q1

Facility investment (y-o-y)

Facility investment by type Source: The Bank of Korea (national accounts) 50

(y-o-y, %)

40 30 20 10 0 -10 -20 -30 -40 2001. Q1

2002. Q1

2003. Q1

Transportation equipment

12 | The Green Book

2004. Q1

2005. Q1

2006. Q1

2007. Q1

2008. Q1

2009. Q1

2010. Q1

2011. Q1

2012. Q1

2013. Q1 Machinery

Facility investment declined 4.1 percent month-on-month and 9.1 percent yearon-year in September as a decrease in transportation equipment investment offset an increase in machinery investment.

(Percentage change from previous quarter)

2011

2012

Annual Annual Facility investment index

2013¹

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Aug1

Sep1

4.0

-2.0

6.4

-5.0

-6.8

0.8

-4.5

-1.0

0.5

-0.1

-4.1

-

-

10.7

-2.7

-8.2

-6.9

-15.4

-10.0

-4.7

4.3

-9.1

- Machinery

2.7

-2.2

8.1

-5.5

-6.9

-3.8

-5.7

1.8

0.0

-2.1

1.3

- Transportation equipment

9.8

-1.1

-1.0

-1.8

-6.7

22.0

0.3

-10.7

2.4

9.1

-22.9

(y-o-y)

1. Preliminary Source: Statistics Korea

Despite mixed performance of leading indicators, such as domestic machinery orders and machinery imports, facility investment is likely to improve as the factors that undermined facility investment in September, such as automobile strikes, were removed.

Business survey index for manufacturing sector (Bank of Korea)

70 (Jan 2013) [ 72 (Feb) [ 76 (Mar) [ 80 (Apr) [ 81 (May) [ 82 (Jun) [ 78 (Jul) [ 73 (Aug) [ 77 (Sept) [ 82 (Oct) [ 83 (Nov)

(Percentage change from same period in previous year)

2011

2012

Annual Annual

2013¹

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Aug¹

Sep¹

Domestic machinery orders

7.6

-13.4

-1.1

-19.8

-10.4

-21.5

-10.9

8.7

0.9

5.1

-7.6

(q-o-q, m-o-m)

-

-

-5.3

-18.7

-2.0

3.9

5.0

1.7

-7.5

-12.7

-8.0

- Public

-2.6

-11.0 126.1

-59.7

86.7

-54.6

-47.0

94.2

-12.7

-52.3

-34.2

- Private

8.8

-13.6

-8.7

-15.1

-16.0

-15.1

-5.6

4.0

2.7

12.3

-5.9

Machinery imports

7.1

-3.0

15.3

-4.3

-12.2

-8.2

-11.8

-2.1

6.7

17.5

-1.7

Average manufacturing operation ratio

80.2

78.1

79.6

79.0

76.2

77.8

77.1

75.4

74.7

76.3

73.7

Facility investment adjustment pressure²

1.1

-1.4

0.7

-1.3

-3.0

-1.5

-2.9

-2.0

-1.5

1.7

-5.3

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

The Green Book | 13

Machinery orders and machinery imports Source: Korea International Trade Association (KITA), Statistics Korea 10

(trillion won)

(y-o-y, %)

60

9

50

8

40 30

7

20

6

10 0

5

-10

4

-20 -30

3 2 2001. Q1

70

-40 -50 2002. Q1

2003. Q1

2004. Q1

2005. Q1

2006. Q1

2007. Q1

2008. Q1

2009. Q1

2010. Q1

2011. Q1

2012. Q1

Machinery orders (left)

4.

Construction investment

2013. Q1

Machinery imports (right)

Construction investment (advanced estimates of GDP) in the third quarter of 2013 increased 2.7 percent quarter-on-quarter and 8.0 percent year-on-year.

(Percentage change from previous quarter)

2011¹

2012¹

2013¹

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

-4.7

-2.2

-1.5

-1.3

0.7

-1.2

4.1

3.4

2.7

-

-

-0.4

-3.1

-0.3

-4.2

2.4

7.2

8.0

- Building construction

-2.7

-1.7

0.3

-2.6

0.1

-0.3

4.6

3.7

-

- Civil engineering works

-7.3

-2.9

-3.9

0.4

1.5

-2.4

3.5

3.1

-

Construction investment² (y-o-y)

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

14 | The Green Book

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

20 15 10 5 0 -5 -10

-15 2001. Q1

2002. Q1

2003. Q1

2004. Q1

2005. Q1

2006. Q1

2007. Q1

2008. Q1

2009. Q1

2010. Q1

2011. Q1

Construction investment (q-o-q)

2012. Q1

2013. Q1

Construction investment (y-o-y)

Construction investment by type Source: The Bank of Korea (national accounts) 50

(y-o-y, %)

40 30 20 10 0 -10 -20 -30 2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

Building construction

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

Residential buildings

2012. 1

2013. 1

Civil engineering works

The value of construction completed (constant) in September decreased 2.2 percent month-on-month due to poor building construction. The index increased 6.5 percent year-on-year.

(Percentage change from previous quarter)

2011

2012

Annual Annual Construction completed (constant)

Q1

Q2

2013ยน Q3

Q4

Q1

Q2

Q3

Aug1

Sep1

-6.4

-5.8

-5.6

-0.9

1.0

1.4

4.4

7.7

-1.3

0.3

-2.2

-

-

-4.9

-9.7

-2.3

-5.6

5.2

15.6

11.4

17.0

6.5

- Building construction

-6.9

-7.6

-4.5

-4.8

1.0

1.8

7.6

8.6

-1.0

9.4

-4.9

- Civil engineering works

-5.6

-3.5

-6.9

4.1

0.9

1.0

0.6

6.5

-1.6

-10.5

1.7

(y-o-y)

1. Preliminary Source: Statistics Korea

The Green Book | 15

Despite a rise in new home sales, construction investment is likely to slow down as leading indicators, such as construction orders and building permit area, have been poor since the second quarter of 2012.

Unsold houses (thousand, Ministry of Land, Infrastructure and Transport) 75 (Jan 2013) [ 73 (Feb) [ 71 (Mar) [ 70 (Apr) [ 67 (May) [ 65 (Jun) [ 68 (Jul) [ 68 (Aug) [ 66 (Sep)

(Percentage change from same period in previous year)

2011

2012

Annual Annual

2013ยน

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Aug1

Sep1

Construction orders (current value)

6.1

-8.9

33.3

-0.7

-13.6

-33.1

-41.2

-28.8

-9.4

-8.4

-4.9

(q-o-q, m-o-m)

-

-

15.1

-14.8

-6.1

-20.4

-5.9

1.0

21.3

3.6

8.1

- Building construction

14.0

-8.7

27.4

-7.0

-7.1

-27.4

-33.6

-28.3

-8.5

-19.2

-15.7

- Civil engineering works

-6.0

-9.3

42.0

12.5

-26.3

-43.7

-51.3

-29.7

-11.8

32.3

28.0

9.9

-0.5

8.7

1.2

-7.3

-2.3

-12.4

-14.6

-3.4

3.9

-11.2

2008. 1

2009. 1

Building permit area

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

Leading indicators of construction investment Source: Statistics Korea (construction orders) Ministry of Land, Infrastructure and Transport (building construction permit area) 340

(y-o-y, %)

290 240 190 140 90 40 -10 -60 -110 2001. 1

2002. 1

2003. 1

Construction orders

16 | The Green Book

2004. 1

2005. 1

2006. 1

2007. 1

2010. 1

2011. 1

2012. 1

2013. 1

Building permit area

5.

Exports in October rose 7.3 percent (preliminary) year-on-year to US$50.51 billion.

Exports and imports

Exports continued to grow led by recovering exports to developed countires, which have led the global economic recovery.

Shipments of mobile phones continued to increase, while shipments of automobiles and exports to developed countries, such as the US and EU, soared.

Export growth by item (y-o-y, %) 33.1 (mobile phones), 21.2 (automobiles), 15.2 (semiconductors), 7.0 (vessels), -16.0 (petroleum products), -1.5 (steel) Export growth by region (y-o-y, %)

23.2 (US), 15.9 (EU), 5.5 (China), 0.3 (ASEAN countries), -8.4 (Central and South America), -8.9 (Japan)

Average daily exports, an indicator adjusted to days worked, continued to grow, up 7.3 percent year-on-year, posting US$2.2 billion in October.

Average daily export growth (y-o-y, %)

-8.0 (Apr 2013) [ 1.0 (May) [ 3.6 (Jun) [ -1.5 (Jul) [ 10.0 (Aug) [ 8.4 (Sep) [ 7.3 (Oct) (US$ billion)

2012 Exports

2013

Annual

Q3

Q4

Oct

Q1

Q2

Q3

Sep

Oct

547.87

133.13

139.77

47.09

135.34

141.17

136.84

44.71

50.51

(y-o-y, %)

-1.3

-5.8

-0.4

1.0

0.4

0.7

2.8

-1.5

7.3

Average daily exports

2.00

1.90

2.04

2.05

2.00

2.07

2.01

2.24

2.20

Source: Korea Customs Service

Exports by item Source: Korea Customs Service, Ministry of Trade, Industry and Energy (export and import trend) 160

(y-o-y, %)

140 120 100 80 60 40 20 0 -20 -40 -60 -80 2001. 1

2002. 1

2003. 1

Export growth rate

2004. 1

2005. 1

2006. 1 Automobiles

2007. 1

2008. 1

2009. 1

2010. 1 Semiconductors

2011. 1

2012. 1

2013. 1 Steel

The Green Book | 17

Imports in October increased 5.1 percent (preliminary) year-on-year to US$45.61 billion.

Despite a fall in commodities imports continuing, imports rebounded due to a sharp increase in consumer goods and capital goods imports.

Import growth by category (y-o-y, %) -0.2 (commodities), 16.0 (consumer goods), 12.4 (capital goods) (US$ billion)

2012

2013

Annual

Q3

Q4

Oct

Q1

Q2

Q3

Sep

Oct

519.58

125.65

129.83

43.38

129.67

126.85

125.83

41.03

45.61

(y-o-y, %)

-0.9

-6.9

-1.1

1.6

-3.0

-2.7

0.1

-3.6

5.1

Average daily imports

1.90

1.79

1.89

1.89

1.94

1.85

1.85

2.05

1.98

Imports

Source: Korea Customs Service

Imports by type Source: Korea Customs Service, Ministry of Trade, Industry and Energy (export and import trend) 100

(y-o-y, %)

80 60 40 20 0 -20 -40 -60 -80 2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

Import growth rate

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

Commodities

2013. 1 Capital goods

The trade balance (preliminary) in October remained in the black for 21 months in a row, posting a surplus of US$4.90 billion.

(US$ billion)

2012

Trade balance Source: Korea Customs Service

18 | The Green Book

2013

Annual

Q3

Q4

Oct

Q1

Q2

Q3

Sep

Oct

28.29

7.47

9.94

3.71

5.67

14.32

11.01

3.68

4.90

Exports and imports Source: Korea Customs Service, Ministry of Trade, Industry and Energy (export and import trend) 60

(US$ billion)

50 40 30 20 10 0 -10 2001. 1

2002. 1 Trade balance

6.

Mining and manufacturing production

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1 Exports

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1 Imports

Mining and manufacturing production in September fell 2.1 percent month-onmonth as a fall in automobiles offset an increase in semiconductors & parts and primary metals. Compared to the same period in the previous year, the index declined 3.6 percent.

Compared to the previous month, production of semiconductors & parts (up 2.6%), primary metals (up 1.0%) and clothing & fur (up 4.5%) rose, while automobiles (down 18.6%), rubber and plastics (down 4.9%) and nonmetallic minerals (down 4.1%) fell.

Compared to a year ago, production of semiconductors & parts (up 11.9%), medical, precision & optical instruments (up 13.7%) and chemical products (up 1.6%) increased, while automobiles (down 9.5%), other transportation equipment (down 17.5%) and mechanical equipment (down 10.8%) went down.

The manufacturing inventory-shipment ratio rose by 5.9 percentage points monthon-month as inventories increased 2.3 percent and shipments fell 2.7 percent.

Inventories of semiconductors & parts (up 5.1%), mechanical equipment (up 4.5%) and chemical products (up 3.4%) rose month-on-month, while primary metals (down 2.2%), audio-visual communications equipment (down 2.0%) and other transportation equipment (down 41.0%) declined.

The Green Book | 19

Shipments of semiconductors & parts (up 1.1%), other transportation equipment (up 2.8%) and primary metals (up 0.6%) climbed, while automobiles (down 15.8%), refined petroleum (down 3.6%) and rubber & plastics (down 5.6%) slipped.

The average operation ratio of the manufacturing sector fell by 2.6 percentage points month-on-month to 73.7 percent.

(Percentage change from previous period)

2012 Annual Q1 Mining production (q-o-q, m-o-m)

-

(y-o-y) Manufacturing production (q-o-q, m-o-m) Mining and (y-o-y) manufacturing 2 Shipment activity - Domestic demand - Exports Inventory3

1.7

2013ยน

Q2

Q3

Q4

Sep

Q1

Q2

Q3

-0.5

-2.2

2.9

1.2

-0.9

-1.4

0.7

Augยน Sepยน 1.8

0.8

3.6

1.1

-1.0

-0.1

-0.8

-1.7

-0.7

0.1

3.3

-3.6

-

1.7

-0.5

-2.3

3.0

1.3

-0.9

-1.4

0.5

1.8

-2.3

0.8

3.8

1.0

-1.1

-0.2

-0.7

-1.8

-0.8

0.1

3.4

-3.7

0.7

1.8

-0.3

-2.4

2.0

3.1

-0.5

-1.0

0.3

2.3

-2.7

-1.1

0.7

-0.3

-1.4

1.0

1.2

-0.8

-1.3

1.7

2.9

-3.6

3.0

3.2

-0.3

-3.6

3.2

5.5

-0.2

-0.7

-1.3

1.5

-1.6

2.3

1.6

-1.8

-3.0

2.3

-3.0

-0.8

-1.5

2.3

-0.2

2.3

78.1 79.6 79.0 76.2 77.8 76.7 77.1 75.4 74.1 76.5 73.7

Manufacturing Average operation ratio (%) activity Production capacity4

2.2

3.1

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

2.3

1.9

1.3

1.8

1.1

1.2

1.6

1.4

3. End-period

Industrial production Source: Statistics Korea (industrial activity trend) 50

(%)

40 30 20 10 0 -10 -20 -30 2001. 1

2002. 1

2003. 1

2004. 1

Industrial production (m-o-m)

20 | The Green Book

-2.1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Industrial production (y-o-y)

1.6

Shipment and inventory Source: Statistics Korea (industrial activity trend) 10

(m-o-m, %)

8 6 4 2 0 -2 -4 -6 -8 -10 2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

Shipment growth

2013. 1 Inventory growth

Average manufacturing operation ratio Source: Statistics Korea (industrial activity trend) 100

( %)

90

80

70

60

50 2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Mining and manufacturing production is expected to impove in October as temporary factors that negatively affected the index, such as strikes in the car manufacturing industry and fewer days worked due to the Chuseok holiday, have been removed, and exports of automobiles and mobile phones have been increasing.

Growth of automobile exports (y-o-y, %)

-11.5 (Mar 2013) [ -2.6 (Apr) [ 5.3 (May) [ -1.6 (Jun) [ -4.1 (Jul) [ 43.9 (Aug) [ -11.9 (Sep) [ 21.2 (Oct)

Growth of mobile phone exports (y-o-y, %) 21.8 (Mar 2013) [ 47.9 (Apr) [ 57.1 (May) [ 6.3 (Jun) [ 27.3 (Jul) [ 25.9 (Aug) [ 2.7 (Sep) [ 33.1 (Oct)

The Green Book | 21

7.

Service output in September grew 0.3 percent month-on-month, led by hotels & restaurants and financial & insurance services. Compared to the same period of the previous year, service output decreased 0.3 percent.

Service sector activity

Hotels & restaurants and entertainment, cultural & sports services grew 4.5 percent and 1.4 percent, respectively, boosted by the Chuseok holiday.

Service output Source: Statistics Korea (service industry activity trend) 20

(%)

15 10 5 0 -5 -10 2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Service industry activity (m-o-m)

Service industry activity (y-o-y)

Growth in financial & insurance services accelerated to 2.3 percent, as average daily stock transactions rose from 5.7 trillion won in August to 6.1 trillion won in September.

Healthcare & social welfare services grew 2.5 percent, while professional, scientific & technical services and education services declined 6.6 percent and 2.6 percent, respectively.

Wholesale & retail Source: Statistics Korea (service industry activity trend) 20

(%)

15 10 5 0 -5 -10 2001. 1

2002. 1

2003. 1

Wholesale & retail (y-o-y)

22 | The Green Book

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Wholesale & retail (m-o-m)

(Percentage change from previous period)

Weight Service activity index

2011

20131

2012

Annual Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q31

Aug1

Sep1

100.0

3.2

1.6

0.5

0.1

0.9

0.0

0.3

0.4

0.2

0.8

0.3

21.6

3.8

0.7

-0.1

0.6

0.1

0.7

-1.0

0.2

-0.3

-0.3

0.2

- Transportation services

8.5

4.5

1.2

1.2

0.2

0.9

0.6

0.7

-0.2

-2.2

2.4

-2.7

- Hotels & restaurants

7.2

-1.3

-1.2

-0.1

0.9

1.3

-1.9

-0.6

0.8

2.8

0.7

4.5

- Publishing & communications services

8.4

5.1

3.0

-0.4

0.6

1.6

-0.6

1.1

-1.7

1.9

0.1

1.9

14.7

6.8

2.8

2.3

-2.6

3.1

0.5

1.1

-2.5

-0.1

0.8

2.3

- Wholesale & retail

- Financial & insurance services - Real estate & renting

5.3

-7.6

-4.3

-4.0

2.3

-1.3

1.6

-2.7

8.7

-5.6

1.2

0.8

- Professional, scientific & technical services

5.6

0.5

4.0

-0.6

0.8

0.4

-0.7

-1.6

6.9

-3.0

-0.7

-6.6

- Business services

3.3

5.2

3.5

2.9

1.2

-1.7

-0.2

2.4

0.3

0.2

2.4

1.9

- Education services

10.9

2.2

0.9

0.6

-1.4

0.0

0.9

0.9

-1.2

1.1

2.7

-2.6

- Healthcare & social welfare services

7.5

6.4

5.8

1.4

2.5

1.0

0.2

1.4

1.8

3.5

1.8

2.5

- Entertainment, cultural & sports services

2.9

2.7

2.8

0.9

2.7

-1.5

-3.0

-0.1

3.9

0.0

3.3

1.4

- Membership organizations

3.6

1.6

-1.4

-0.8

-0.4

1.9

-0.6

2.4

-0.6

3.8

-3.8

-1.0

- Sewerage & waste management

0.6

3.3

-0.3

-7.3

5.8

0.3

-4.8

-1.0

2.5

0.6

3.8

-5.8

1. Preliminary Source: Statistics Korea

September 2013 service output by business (y-o-y, %)

8 6 4

Tot al i nde x

2 0

-2

Wh ole sal e

10

&r eta il Tra nsp ort atio ns erv ice Ho s tels &r est aur ant s Pub lish ing &c om mu Fin nic anc atio ial ns &i ser nsu vic es ran c e se Rea rvic l es es tat e& ren Pro tin ser fess g vic ion es al, scie nti fic B &t sup usine ech por ss fa nic al t se cili t rvic y m es an age Edu me nt & cat ion bus ser ine vic ss e s He alth car e& soc ial we Ent lfar ert e se ain rvic me es nt, cul Me tur oth mb al & er p ersh spo ers ip o rts ona rga ser n l vic ser iza Sew es vic tion ma era es s, ter ge rep ial , w air rec ast & ove e m ry & an rem agem edi ent atio , na ctiv itie s

Source: Statistics Korea (service industry activity trend)

-4 -6 -8 -10 -12

In October, real estate & renting is likely to recover and wholesale & retail will grow, led by car sales. However, financial & insurance services may decline.

Average daily stock transactions (trillion won) 6.3 (Jan 2013) [ 5.5 (Feb) [ 6.0 (Mar) [ 6.9 (Apr) [ 6.5 (May) [ 5.8 (Jun) [ 5.3 (Jul) [ 5.7 (Aug) [ 6.1 (Sep) [ 5.9 (Oct)

The Green Book | 23

8.

The number of workers on payroll in September increased by 463,000 from a year earlier to 25,470,000 and the employment rate rose 0.4 percentage points to 60.4 percent.

Employment

Number of persons employed and employment growth Source: Statistics Korea (employment trend) 1,200

(thousand)

(million)

26

1,000 25

800 600

24

400 23

200 0

22

-200 -400 2001. 1

21 2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

Employment growth (y-o-y, left)

2010. 1

2011. 1

2012. 1

2013. 1

Number of employed (seasonally adjusted, right)

Employment rate Source: Statistics Korea (employment trend) 64

(%)

63 62 61 60 59 58 57 56 55 2001. 1

2002. 1 Original rate

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Seasonally adjusted rate

By industry, employment growth in agriculture, forestry & fisheries slowed while that in manufacturing and services accelerated. Meanwhile, employment growth in the construction sector turned positive.

24 | The Green Book

Employment by industry Source: Statistics Korea (employment trend) 100

(%)

80

60

71.0

70.8

70.3

69.7

69.2

69.1

69.3

69.2

69.0

68.7

69.0

70.4

70.9

7.2

7.1

7.2

7.2

7.2

7.2

7.1

7.1

7.1

7.3

7.2

7.2

6.9

6.7

6.9

7.1

7.1

7.1

7.0

6.9

7.0

17.0

17.1

16.6

16.3

16.2

16.3

16.4

16.5

16.6

16.7

16.9

17.1

17.4

17.3

16.9

16.7

16.4

16.4

16.4

16.3

16.4

4.4

4.7

5.6

6.5

7.0

7.0

6.8

6.8

6.8

6.9

6.5

4.9

4.3

4.6

5.6

6.3

6.7

6.9

6.7

6.8

6.8

2012. 1

2

3

4

5

6

7

8

9

10

11

12

2013. 1

2

3

4

5

6

7

8

9

71.1

70.2

69.4

69.2

69.6

69.4

69.1

69.4

40

20

0

Services

Construction

Manufacturing

Agriculture, forestry & fisheries

By status of workers, employment growth among regular workers slowed. The number of self-employed workers contracted by a wider margin, while temporary and daily workers declined by a smaller margin.

2010 2011

2012

Annual Annual Annual Q1 Number of employed (million)

Q2

2013

Q3

Q4

Sep

Q1

Q2

Q3

Aug

Sep

23.83 24.24 24.68 23.93 25.00 24.99 24.80 25.00 24.18 25.33 25.41 25.29 25.47

Employment rate (%)

58.7

59.1

59.4

57.8

60.2

60.0

59.4

60.0

57.7

60.2

60.3

60.0

60.4

(Seasonally adjusted)

58.7

59.1

59.4

59.3

59.4

59.5

59.3

59.5

59.2

59.4

59.7

59.7

59.9

Employment growth (y-o-y, thousand)

323

415

437

467

430

506

342

685

257

324

421

432

463

(Excluding agriculture, forestry & fisheries)

405

440

451

498

454

504

344

672

266

351

402

404

437

191

63

14 -102

-66

85

140

139

119

122

26

5

21

33

-2

22

79

33

17

-40

58

-64

-6

4

-7

7

- Services

200

386

416

541

491

397

236

466

199

212

354

386

396

- Agriculture, forestry & fisheries

-82

-25

-14

-31

-24

2

-2

13

-9

-27

19

28

26

- Wage workers

- Manufacturing - Construction

517

427

315

360

281

317

303

484

329

472

526

506

567

• Regular workers

697

575

436

413

379

485

469

527

554

638

632

639

597

• Temporary workers

-34

-78

-2

110

73

-86 -152 -169

-65

-73

-24

-42

-60

-6

• Daily workers - Non-wage workers • Self-employed workers

-79 -109

-146

-70 -120 -163 -171

-89

-57

43

-194

-11

121

108

150

189

39

201

-73

3

-71 -148 -105

-74 -104

-118

1

124

149

173

143

33

111

-28 -104

-83

-57

-79

- Male

181

238

234

238

242

284

172

349

123

179

179

167

206

- Female

142

177

203

230

188

223

170

336

135

145

242

266

257

- 15 to 29

-43

-35

-36

1

-8

-57

-80

-59 -117

-88

-41

-60

38

- 30 to 39

-4

-47

-31

-65

-80

33

-10

64

-15

8

-34

-23

-30

- 40 to 49

29

57

11

28

8

12

-3

61

12

-6

30

45

13

- 50 to 59

294

291

270

326

260

273

220

326

196

254

279

288

264

47

149

222

178

251

245

215

293

181

156

187

182

178

- 60 or more Source: Statistics Korea

The Green Book | 25

Employment by status of workers Source: Statistics Korea (employment trend) 100

(%)

80

60

4.5

4.5

4.8

5.1

5.4

5.4

5.3

5.3

5.4

5.3

5.2

4.5

4.2

4.2

4.7

5.0

5.0

5.2

5.1

5.2

5.2

23.1

23.1

23.4

23.4

23.3

23.2

23.4

23.3

23.2

23.1

22.9

22.7

22.7

22.8

23.0

22.8

22.6

22.5

22.6

22.7

22.5

6.5

6.5

6.3

6.6

6.8

6.7

6.7

6.4

6.4

6.7

6.8

6.6

6.2

6.0

6.0

6.5

6.7

6.7

6.3

6.1

6.3

20.5

20.5

20.6

20.6

20.5

20.3

20.2

19.9

19.8

19.8

19.9

20.0

19.9

19.7

19.5

19.5

19.5

19.5

19.6

19.2

19.4

45.4

45.4

44.9

44.3

44.0

44.4

44.4

45.1

45.2

45.1

45.2

46.2

46.9

47.3

47.0

46.3

46.2

46.1

46.4

46.8

46.7

2012. 1

2

3

4

5

6

7

8

9

10

11

12

2013. 1

2

3

4

5

6

7

8

9

40

20

0 Unpaid family workers

Self-employed workers

Daily workers

Temporary workers

Regular workers

The number of unemployed persons in September decreased 32,000 year-on-year to 720,000, while the unemployment rate fell 0.2 percentage points to 2.7 percent.

The unemployment rate declined in all age groups except young adults.

2010 2011

2012

Annual Annual Annual Number of unemployed (thousand)

2013

Q1

Q2

Q3

Q4

Sep

Q1

Q2

Q3

Aug

Sep

920

855

820

947

841

770

722

752

907

812

777

783

720

31

-65

-35

-82

-23

-16

-18

-6

-40

-29

7

19

-32

- Male

-7

-48

-26

-54

-19

-16

-13

-6

-7

-20

11

25

-21

- Female

38

-17

-9

-28

-4

0

-6

0

-33

-9

-4

-6

-11

Unemployment rate (%)

3.7

3.4

3.2

3.8

3.3

3.0

2.8

2.9

3.6

3.1

3.0

3.0

2.7

(Seasonally adjusted)

3.7

3.4

3.2

3.5

3.3

3.1

3.0

3.1

3.3

3.1

3.1

3.1

3.0

- 15 to 29

8.0

7.6

7.5

8.2

8.1

6.8

7.0

6.7

8.4

7.9

7.9

7.6

7.7

- 30 to 39

3.5

3.4

3.0

3.2

3.2

2.8

2.7

2.7

3.3

3.0

2.9

3.1

2.5

- 40 to 49

2.5

2.1

2.0

2.4

2.0

2.0

1.8

2.1

2.1

2.1

1.9

2.0

1.7

- 50 to 59

2.5

2.1

2.1

2.3

2.0

2.2

1.8

2.2

2.3

1.8

1.8

1.9

1.7

- 60 or more

2.8

2.6

2.4

4.4

2.0

1.9

1.6

1.7

3.4

1.6

1.2

1.2

1.2

Unemployment growth (y-o-y, thousand)

Source: Statistics Korea

26 | The Green Book

Unemployment rate Source: Statistics Korea (employment trend) 6

(%)

5

4

3

2 2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

Original rate

2013. 1

Seasonally adjusted rate

The economically inactive population in September was up 66,000 from a year earlier to 16,010,000, while the labor force participation rate rose 0.3 percentage points to 62.1 percent.

The number of those economically inactive due to housework (down 61,000, y-o-y) and childcare (down 2,000, y-o-y) decreased, while those due to rest (up 93,000, y-o-y), old age (up 39,000, y-o-y) and education (up 1,000, y-o-y) increased.

2010 2011

2012

Annual Annual Annual Q1 Economically inactive population (million)

Q2

2013

Q3

Q4

Sep

Q1

Q2

Q3

Aug

Sep

15.84 15.95 16.08 16.50 15.67 15.90 16.26 15.94 16.83 15.91 15.98 16.09 16.01

Labor force participation rate (%)

61.0 61.1 61.3 60.1 62.3 61.8 61.1 61.8 59.9 62.2 62.1 61.8 62.1

(seasonally adjusted)

61.0 61.1 61.3 61.4 61.4 61.4 61.1 61.4 61.2 61.3 61.6 61.7 61.7

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

143

112

128

- Childcare

-125

-5

-2

- Housework

201

101

123

- Education

12

-51

- Old age

80 -56

- Rest

103

110

57

4

-7

-3

85

181

101

-12

-28

-64

-45

148

76

174

182

-53

126

-

244 -123

336

242

78

53

66

5

0

10

9

6

-2

126

-5

143

36

-80

-96

-61

5

39

-13

118

147

88

111

1

156

186

154

154

7

32

36

39

-71 -142 -125 -250 -106

44

12

-38

93

Source: Statistics Korea

The Green Book | 27

Labor force participation rate Source: Statistics Korea (employment trend) 65

(%)

64 63 62 61 60 59 58 57 2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

Original rate

9.

Financial markets

2011. 1

2012. 1

2013. 1

Seasonally adjusted rate

9.1 Stock market The Korean stock price index in October rose 1.7 percent to 2,030 points from the previous month’s 1,997 points.

The KOSPI Composite has continued its ascent since late August. Foreign investors’ net buying* of Korean shares persisted, as US default fears declined and Korea’s strong fundamentals** stood out. * Net buying by foreign investors continued, but at a smaller scale than the previous month, down from 7.7 trillion won in September to 5.0 trillion won in October. ** A strong current account surplus, fiscal soundness, ample foreign exchange reserves, and low short-term debt levels were cited as the Korean economy’s strengths.

(End-period, point, trillion won)

KOSPI

Oct 2013

33.1 (1.7%)

534.9

532.4

-2.5 (-0.5%)

1,193.8

25.8 (2.2%)

124.6

125.2

0.6 (0.5%)

4.5

4.2

-0.3 (-6.7%)

1.6

1.7

0.1 (6.3%)

34.7

35.6

0.9 (2.6%)

9.7

9.9

0.2 (0.02%)

Oct 2013

Stock price index (points)

1,997.0

2,030.1

Market capitalization (trillion won)

1,168.0

Foreign stock ownership (%) 1. Change from the end of the previous month Source: Korea Exchange

28 | The Green Book

Change1

Sep 2013

Sep 2013

Average daily trade value (trillion won)

KOSDAQ 1

Change

Stock prices 2,200

(monthly average, KOSPI Jan 4, 1980=100, KOSDAQ Jul 1, 1996=1,000)

2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

KOSPI

2013. 1 KOSDAQ

9.2 Exchange rate The won/dollar exchange rate in October fell 14.0 won to 1,060.7 won from 1,074.7 won at the end of September.

The won/dollar exchange rate fell to the 1,060 won range due to the weak dollar and Korea’s continuing current account surplus.

The won/100 yen exchange rate rose to 1,105 won as concerns over the US government shutdown and debt ceiling negotiations led to purchases of stable currencies, but ended up at 1,078.7 won as the yen fell after an agreement was reached on the US debt ceiling.

(End-period)

2008

2009

2010

2011

2012

Dec

Dec

Dec

Dec

Dec

2013 Sep

Oct

Change1

Won/dollar

1,259.5

1,164.5

1,134.8

1,151.8

1,070.6

1,074.7

1,060.7

0.9

Won/100 yen

1,396.8

1,264.5

1,393.6

1,481.2

1,238.3

1,098.3

1,078.7

14.8

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.

Foreign exchange rate 1,800

(month-end, ￌ)

1,600 1,400 1,200 1,000 800 600 2001. 1

2002. 1 Won/dollar

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1 Won/100 yen

The Green Book | 29

Daily foreign exchange rate trend 1,800

(ￌ)

1,600 1,400 1,200 1,000 800 600 2008. 1

7

2009. 1

7

2010. 1

7

2011. 1

7

2012. 1

7

2013. 1

7

Won/dollar

Won/100 yen

9.3 Bond market 3-year Treasury bond yields remained unchanged in October at 2.82 percent.

Treasury bond yields remained stable as yields on major sovereign bonds declined following the decision by the US to maintain quantitative easing.

Corporate bond yields are also stable, despite Tongyang Group’s filing for bankruptcy.

(End-period, %)

2008

2009

2010

2011

2012

2013

Dec

Dec

Dec

Dec

Dec

Jul

Aug

Sep

Oct

Change1

Call rate (1 day)

3.02

2.01

2.51

3.29

2.77

2.53

2.51

2.50

2.52

-2

CD (91 days)

3.93

2.88

2.80

3.55

2.89

2.66

2.66

2.66

2.65

-1

Treasury bond (3 yrs)

3.41

4.44

3.38

3.34

2.82

2.92

2.88

2.82

2.82

-

Corporate bond (3 yrs)

7.72

5.56

4.27

4.21

3.29

3.36

3.25

3.24

3.24

-

Treasury bond (5 yrs)

3.77

4.98

4.08

3.46

2.97

3.20

3.17

3.05

3.05

-

2005. 1

2006. 1

1. Basis point, changes from the previous month

Interest rates Source: The Bank of Korea 10

(monthly average, yearly, %)

9 8 7 6 5 4 3 2 1 2001. 1

2002. 1

2003. 1

3-yr corporate bonds yield

30 | The Green Book

2004. 1

2007. 1

2008. 1

3-yr treasury bonds yield

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Overnight call rate (daily)

9.4 Money supply & money market M2 (monthly average) in September grew in the mid-4 percent range from a year earlier.

Private sector credit rose due to growth in bank loans, and money supply in the overseas sector expanded as overseas securities investment declined while foreign investment in Korean shares increased.

(Percentage change from same period in previous year, average)

2008

2009

2010

2011

2012

Annual Annual Annual Annual Annual

2013

Q1

Q2

Q3

Q4

Jun

Jul

Aug

Sep

Sep1

M12

-1.8

16.3

11.8

6.6

3.8

1.8

3.6

4.3

5.5

10.2

10.7

9.5

low-11

489.3

M2

14.3

10.3

8.7

4.2

5.2

5.3

5.6

5.6

4.5

4.9

4.6

4.0

mid-4

1,900.2

11.9

7.9

8.2

5.3

7.8

7.5

8.5

7.9

7.1

6.6

6.5

low-6 mid-6

2,573.9

2007. 1

2008. 1

Lf

3

1. Balance at end September 2013, trillion won 2. M1 excluding corporate MMFs and individual MMFs while including CMAs 3. Liquidity aggregates of financial institutions (mostly identical with M3)

Total money supply Source: The Bank of Korea 40

(y-o-y, monthly average balance, %)

30 20 10 0 -10 -20 2001. 1

2002. 1

2003. 1

Reserve money

2004. 1

2005. 1

2006. 1

M1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1 Lf

Bank deposits grew significantly in September while asset management company (AMC) deposits increased slightly.

Time deposits (5.9 trillion won [ -1.4 trillion won) declined due to the outflow of municipal government funds, but an increase in bond issuance (3.1 trillion won [ 5.5 trillion won) lead to a surge in bank deposits.

AMC deposits inched up, as money market funds (MMF) (-1.1 trillion won [ 6.9 trillion won) increased due to inflows of banks’ short-term surplus funds while equity funds (-1.7 trillion won [ -2.9 trillion won) and hybrid funds (1.4 trillion won [ -2.3 trillion won) declined due to profit-taking.

The Green Book | 31

(Monthly change, end-period, trillion won)

2009

2010

2011

Annual Annual Annual

2012

2013

Aug

Annual

Aug

Jun

Jul

Aug

Sep

Sep1

Bank deposits

54.8

36.9

58.9

3.9

37.0

0.7

18.1

-17.1

15.5

6.5

1,162.8

AMC deposits

-27.6

-16.7

-16.6

4.4

18.8

-0.1

-1.7

-1.0

-1.7

1.8

339.1

1. Balance at end September 2013, trillion won

Deposits in financial institutions Source: The Bank of Korea 30

(y-o-y, end of month balance, trillion won)

20 10 0 -10 -20 2001. 1

2002. 1

10.

Balance of payments

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Korea’s current account (preliminary) in September posted a surplus of US$6.57 billion, staying in the black for 20 consecutive months.

The goods account surplus expanded from US$5.33 billion in August to US$5.70 billion in September. Exports continued to rise, led by IT products such as semiconductors, while imports declined due to falling oil prices.

Goods exports (US$ billion) 46.22 (Aug 2013) [ 46.31 (Sep) Goods imports (US$ billion) 40.94 (Aug 2013) [ 40.61 (Sep) Export growth by item (y-o-y, %) 62.6 (vessels), 21.1 (semiconductors), 1.6 (mobile phones), -12.7 (automobiles), -17.2 (steel) Export growth by region (y-o-y, %)

4.5 (ASEAN countries), 1.4 (China), -1.5 (Japan), -1.6 (US), -8.8 (EU)

32 | The Green Book

The service account surplus expanded from US$0.10 billion to US$0.87 billion, as deficits in the travel and intellectual property rights accounts declined.

Service account (US$ billion, August [ September)

-1.02 [ -0.54 (travel), -0.72 [ -0.40 (intellectual property rights), 0.85 [ 0.68 (transportation), 1.14 [ 1.03 (construction), -0.34 [ -0.21 (business services)

The primary income account surplus contracted from US$0.48 billion to US$0.32 billion due to a rise in dividend and interest payments, while the secondary income account deficit expanded from US$0.17 billion to US$0.32 billion.

(US$ billion)

2012

2013

Annual

Q1

Q2

Q3

Q4

Sep

Q1

Q2

Jul

Aug

Sep1

Current account

43.14

2.56

11.19

14.56

14.94

5.91

10.02

19.80

6.77

5.74

6.57

- Goods balance

38.34

2.61

8.52

13.34

13.98

5.49

9.39

15.84

5.68

5.33

5.70

- Service balance

2.68

-0.65

2.31

0.65

0.36

0.32

-0.48

3.76

0.36

0.10

0.87

- Primary income balance

4.89

1.49

0.82

1.04

1.54

0.20

1.38

0.06

0.78

0.48

0.32

- Secondary income balance

-2.76

-0.89

-0.47

-0.25

-0.93

-0.10

-0.26

0.14

-0.04

-0.17

-0.32

1. Preliminary Source: The Bank of Korea

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

(US$ billion)

8 6 4 2 0 -2 -4 -6 2001. 1

2002. 1 Goods account

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

Service account

2011. 1

2012. 1

2013. 1 Current account

The capital and financial account (preliminary) in September posted a net outflow of US$4.59 billion.

Capital & financial account balance (US$ billion)

-6.72 (Mar 2013) [ -2.61 (Apr) [ -11.6 (May) [ -4.91 (Jun) [ -7.44 (Jul) [ -7.62 (Aug) [ -4.59 (Sep)

Net outflows of direct investments expanded from US$0.92 billion in the previous month to US$1.23 billion due an increase in overseas direct investment.

The Green Book | 33

Net inflows of portfolio investments expanded from US$1.44 billion to US$5.99 billion as a result of a rise in foreign investors’ securities investment.

Net inflows of financial derivatives investments expanded from US$0.22 billion to US$1.03 billion, while net outflows of other investments rose from US$6.72 billion to US$7.41 billion due to overseas debt repayments.

The current account in October is expected to maintain a surplus, helped by a goods account surplus which results from an expanding trade surplus (US$4.90 billion).

Travel account balance Source: The Bank of Korea (balance of payments trend) 4

(US$ billion)

3 2 1 -1 -2 -3 2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

Travel balance

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

Travel revenue

2013. 1 Travel payment

Capital & financial account balance Source: The Bank of Korea (balance of payments trend) 15

(US$ billion)

10 5 0 -5 -10 -15 2001. 1

2002. 1

2003. 1

Portfolio investment

34 | The Green Book

2004. 1

2005. 1

2006. 1

Direct investment

2007. 1

2008. 1

2009. 1

2010. 1

Financial derivatives

2011. 1

2012. 1

2013. 1

Capital & financial account

11.

11.1 Prices

Prices and international commodity prices

Consumer prices in October fell 0.3 percent from the previous month but rose 0.7 percent compared to a year ago. The index registered less than 1.0 percent growth year-on-year for the second consecutive month.

Core consumer prices, which exclude oil and agricultural products and show longterm price trends, stayed stable in the 1.0 percent range year-on-year, rising 1.6 percent. The index remained unchanged from the previous month.

The average expected annual inflation was unchanged from the previous month’s 2.9 percent, while the import prices fell 8.1 percent year-on-year.

Expected inflation (%, over the next 12 months)

3.1 (Dec 2012) [ 3.2 (Jan 2013) [ 3.2 (Feb) [ 3.2 (Mar) [ 3.1 (Apr) [ 2.9 (May) [ 2.8 (Jun) [ 2.9 (Jul) [ 3.0 (Aug) [ 2.9 (Sep) [ 2.9 (Oct)

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

-10.6 (Jan 2013) [ -8.6 (Feb) [ -10.8 (Mar) [ -9.7 (Apr) [ -9.7 (May) [ -4.3 (Jun) [ -4.3 (Jul) [ -5.3 (Aug) [ -8.1 (Sep)

<Consumer price inflation>

(%)

2012

2013

Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Month-on-Month

0.7 -0.1 -0.4 0.2 0.6 0.3 -0.2 -0.1 0.0 -0.1 0.2 0.3 0.2 -0.3

Year-on-Year

2.0 2.1 1.6 1.4 1.5 1.4 1.3 1.2 1.0 1.0 1.4 1.3 0.8 0.7

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

1.4 1.5 1.3 1.2 1.2 1.3 1.5 1.4 1.6 1.4 1.5 1.3 1.6 1.6

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

1.4 1.4 1.4 1.4 1.4 1.2 1.4 1.4 1.3 1.3 1.3 1.2 1.3 1.4

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

1.7 1.6 1.0 0.7 0.8 0.8 0.8 0.7 0.2 0.3 0.9 0.8 -0.1 -0.3

Source: Statistics Korea

Prices Source: Statistics Korea (consumer price trend) & The Bank of Korea (producer prices) 16

(y-o-y, %)

13 10 7 4 1 -2 -5 2001. 1

2002. 1

2003. 1

Consumer price inflation

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

Core inflation

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Producer price inflation

The Green Book | 35

Consumer prices fell month-on-month, led by agricultural, livestock and fishery products (down 4.1%, m-o-m) and oil products (down 1.2%, m-o-m).

The prices of agricultural, livestock & fishery products fell 4.1 percent due to stable vegetable shipments and increasing supplies of livestock products such as pork.

Agricultural, livestock & fishery product price increases (m-o-m, %)

-5.9 (agricultural products): -14.0 (vegetables), -2.7 (fruits) -2.4 (livestock products), -0.4 (fishery products)

Price changes by item (m-o-m, %) Chinese cabbages (-43.8), pork (-6.0), spinaches (-52.8) Oil product prices fell 1.2 percent month-on-month due to stabilizing international oil prices and a stronger won.

Gasoline prices (won/liter) 1,928 (Jul 2013) [ 1,948 (Aug) [ 1,936 (Sep) [ 1,907 (Oct)

<Consumer price inflation in major sectors>

Agricultural, livestock & Manufactured products fishery products Oil products

Total

Public utilities

Housing Public Personal rents services services

Month-on-Month (%)

-0.3

-4.1

0.0

-1.2

0.2

0.2

0.0

-0.2

Year-on-Year (%)

0.7

-5.4

1.0

-5.1

2.6

0.7

1.0

1.2

Source: Statistics Korea

Consumer price inflation Source: Statistics Korea (consumer price trend) 7

(%)

6 5 4 3 2 1 0 -1 2001. 1

2002. 1

2003. 1

2004. 1

Consumer price inflation (m-o-m)

36 | The Green Book

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Consumer price inflation (y-o-y)

Contribution to consumer price inflation Source: Statistics Korea (consumer price trend) 5

(%p)

4 3 2 1 0 -1 2003

2004

2005

Agricultural, livestock & fishery products

2006

2007

2008

2009

2010

Manufactured products

Housing rents

Personal services

Public utilities

2011

2012 Public services

11.2 International oil and commodity prices International oil prices in October fluctuated around US$105 per barrel, while domestic oil product prices declined due to the stronger won.

Dubai crude prices stayed near US$105 per barrel, as expectations for a deal on Iranâ&#x20AC;&#x2122;s nuclear program and an increase in US crude oil inventories put downward pressure and disruptions to oil production in Libya and a weak US dollar put upward pressure on prices.

Dubai crude ($/barrel)

104.1 (1st week Oct) [ 105.7 (2nd week) [ 106.6 (3rd week) [ 105.5 (4th week) [ 105.8 (5th week) (US$/barrel, period average)

2011

2012

2013

Annual

Annual

Annual

Apr

May

Jun

Jul

Aug

Sep

Oct

Dubai crude

105.9

109.0

104.6

101.7

100.3

100.2

103.5

107.1

107.9

105.6

Brent crude

111.0

111.7

108.1

102.8

102.8

103.1

107.7

110.8

111.6

109.3

WTI crude

95.1

93.8

97.2

92.0

94.7

95.8

104.7

106.7

106.2

100.5

Source: Korea PDS

The Green Book | 37

International oil prices Source: Korea National Oil Corporation 160

($/B)

140 120 100 80 60 40 20 0 2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Dubai crude

WTI crude

Domestic oil product prices declined due to a falling won/dollar exchange rate.

Gasoline prices (won/liter)

1,918.8 (1st week Oct) [ 1,908.9 (2nd week) [ 1,902.6 (3rd week) [ 1,899.0 (4th week) [ 1,893.5 (5th week)

Won/dollar exchange rate

1,075.0 (1st week Oct) [ 1,072.9 (2nd week) [ 1,068.8 (3rd week) [ 1,059.8 (4th week) [ 1,061.6 (5th week) (won/liter, period average)

2011

2012

Annual

Annual

Annual

Apr

May

Jun

2013 Jul

Aug

Sep

Oct

Gasoline prices

1,929.3

1,985.8

1,933.7

1,949.4

1,899.9

1,902.0

1,933.1

1,947.7

1,934.6

1,907.3

Diesel prices

1,745.7

1,806.3

1,736.7

1,745.2

1,699.4

1,701.0

1,729.7

1,743.6

1,734.3

1,711.8

Source: Korea National Oil Corporation

Dubai crude prices and import prices Source: Korea National Oil Corporation 160

(thousand won/B)

($/B)

160

140

140

120

120

100

100

80

80

60

60

40

40

20 2004. 1

20 2005. 1

2006. 1

Dubai crude (import prices, won, left)

38 | The Green Book

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Dubai international prices (dollar, right)

International grain prices declined in October, as the production outlook was raised due to favorable weather conditions for harvesting in major cultivation areas.

World grain production outlook for 2013-14 (Korean Rural Economic Institute, m-o-m, %)

corn (1.0), soybean (1.4), wheat (0.7)

International grain prices in October (m-o-m, %) corn (-4.6), soybean (-4.2), wheat (6.4)

Nonferrous metal prices inched up in October, following expectations that the US will continue its quantitative easing program and delay the tapering process.

Nonferrous metal prices in October (m-o-m, %) tin (1.7), lead (1.2), nickel (2.1), copper (0.4), zinc (1.9), aluminum (3.1)

<Reuters index*>

2010

(Period average)

2011

2012

Annual Annual Annual

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

3,067

3,037

2,996

2,990

2,947

2,880

2,828

2,756

2,701

2,662

2,630

2,655

2,553

3,062

3,006

2013

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

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

470

4,000

430 390

3,000

350 310

2,000

270 230

1,000

190 150 1997. 1

0 1998. 1

1999. 1

CRB (left)

2000. 1

2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Reuters index (right)

The Green Book | 39

12.

12.1 Housing market

Real estate market

Nationwide apartment sales prices rose 0.4 percent month-on-month in October, picking up the pace from the previous month.

Apartment sales price growth accelerated in the Seoul metropolitan area (up 0.5%, m-o-m), including Seoul (up 0.5%, m-o-m).

Apartment sales prices in areas excluding the Seoul metropolitan area (up 0.4%, m-o-m) also grew at a faster pace compared to the previous month. Apartment prices in the five metropolitan cities and the eight provinces rose 0.4 percent, respectively.

Apartment sales price increase in five metropolitan cities (m-o-m, %) Busan (0.2), Daejeon (0.2), Daegu (0.9), Ulsan (0.3), Gwangju (0.1)

<Nationwide apartment sales prices>

2010 2011

(Percentage change from previous period)

2012

Annual Annual Annual Q3

2013 Q4

Jan-Oct

Q1

Q2

Q3

Aug

Sep

Oct

Oct 71 Oct 141 Oct 211 Oct 281

Nationwide

1.9

8.2

-2.1

-1.2

-0.8

0.2

-0.7

0.5

-0.1

-0.1

0.1

0.4

0.18 0.14 0.10 0.10

Seoul

-2.9

0.3

-5.8

-2.1

-1.7

-1.2

-1.3

0.2

-0.6

-0.3

0.1

0.5

0.22 0.15 0.09 0.09

Gangnam

-2.1

-0.4

-6.7

-2.2

-1.8

-1.4

-1.1

0.2

-0.9

-0.5

0.1

0.5

0.20 0.16 0.12 0.06

3

-1.7

-0.5

-8.0

-3.0

-1.9

-0.7

-1.0

0.5

-0.8

-0.4

0.3

0.6

0.19 0.19 0.14 0.05

-2.6

-0.2

-5.0

-1.3

-1.6

-2.2

-1.2

-0.3

-1.0

-0.5

-0.1

0.4

0.20 0.14 0.09 0.06

7.9 18.3

1.7

-0.2

0.2

1.6

0.1

0.8

0.4

0.1

0.1

0.4

0.14 0.13 0.10 0.12

2

Gangbuk

Seoul metropolitan area 5 metropolitan cities

1. Weekly trends 2. Upscale area of Southern Seoul 3. Northern Seoul Source: Korea Appraisal Board

Apartment sales prices by region Source: Korea Appraisal Board 5

(m-o-m, %)

4 3 2 1 0 -1 -2 2009. 1

7 Nationwide

40 | The Green Book

2010. 1

7

2011. 1 Seoul metropolitan area

7

2012. 1

7

2013. 1

7

Areas excluding Seoul metropolitan area

Nationwide apartment rental prices extended an uptrend in October, rising 1.0 percent month-on-month.

Rental price growth in the Seoul metropolitan area (up 1.4%, m-o-m) accelerated, led by Seoul (up 1.6%, m-o-m), while rental prices in regions excluding the Seoul metropolitan area (up 0.5%, m-o-m) also continued an upward trend.

Apartment rental price increase in major districts in Seoul (m-o-m, %) Gangnam (1.5), Seocho (1.4), Songpa (3.6), Geumcheon (3.0), Yeongdeungpo (2.1), Nowon (2.1)

<Nationwide apartment rental prices>

2010 2011

(Percentage change from previous period)

2012

Annual Annual Annual Q3

2013 Q4

Jan-Oct

Q1

Q2

Q3

Aug

Sep

Oct

Oct 71 Oct 141 Oct 211 Oct 281

Nationwide

8.5 15.4

1.9

0.0

1.1

5.3

1.0

1.4

1.7

0.6

0.7

1.0 0.26 0.29 0.24 0.19

Seoul

7.1 13.3

0.3

-0.2

1.1

6.4

1.1

1.3

2.5

0.9

1.1

1.4 0.35 0.38 0.33 0.24

Gangnam

7.3 13.0

0.0

-0.2

1.7

7.2

1.7

0.7

3.1

1.1

1.3

1.6 0.37 0.41 0.35 0.25

3

Gangbuk

8.8 11.7

0.2

-0.2

2.2

7.5

1.6

1.1

3.4

1.2

1.4

1.8 0.44 0.38 0.29 0.19

Seoul metropolitan area

5.5 14.6

-0.2

-0.2

1.2

6.8

1.7

0.3

2.6

0.9

1.2

1.3 0.29 0.45 0.44 0.34

10.2 17.9

3.6

0.2

1.1

4.1

1.0

1.5

1.0

0.3

0.3

0.5 0.17 0.19 0.15 0.13

2

5 metropolitan cities

1. Weekly trends 2. Upscale area of Southern Seoul 3. Northern Seoul Source: Korea Appraisal Board

Apartment rental prices by region Source: Korea Appraisal Board 5

(m-o-m, %)

4 3 2 1 0 -1 -2 2009. 1

7 Nationwide

2010. 1

7

2011. 1 Seoul metropolitan area

7

2012. 1

7

2013. 1

7

Areas excluding Seoul metropolitan area

The Green Book | 41

Apartment sales transactions in September increased 29.3 percent from the previous monthâ&#x20AC;&#x2122;s 30,794 to 39,801, and were up 52.1 percent from a year earlier (26,165). <Apartment sales transactions>

(thousand)

2009 2010 2011 1

1

2012

1

1

Annual Annual Annual Annual Nationwide

53

48

59

2013

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

Jul Aug Sep

38

25

42

31

26

45

50

81

17

34

47

55

65

95

31

40

1. Monthly average Source: Ministry of Land, Infrastructure and Transport

Monthly apartment transaction volume Source: Ministry of Land, Infrastructure and Transport 140

(thousand)

120 100 80 60 40 20 0 2006. 1

7

2007. 1

Nationwide

7

2008. 1

7

2009. 1

7

2010. 1

Seoul metropolitan area

7

2011. 1

7

2012. 1

7

2013. 1

7

Areas excluding Seoul metropolitan area

12.2 Land market Nationwide land prices in September rose 0.08 percent month-on-month.

Land prices in the Seoul metropolitan area rebounded (up 0.09%, m-o-m), with Seoul and Gyeonggi Province rising 0.15 percent and 0.04 percent, respectively.

Land price increases in Seoul metropolitan area (m-o-m, %) -0.01 (Jan 2013) [ 0.05 (Feb) [ 0.10 (Mar) [ 0.13 (Apr) [ 0.14 (May) [ 0.09 (Jun) [ 0.00 (Jul) [ -0.02 (Aug) [ 0.09 (Sep)

Land price growth accelerated in areas excluding the Seoul metropolitan area (up 0.06%, m-o-m), led by Daegu (up 0.13%, m-o-m) and Sejong (up 0.39%, m-o-m).

42 | The Green Book

Land price increases in areas excluding Seoul metropolitan area (m-o-m, %) 0.11 (Jan 2013) [ 0.11 (Feb) [ 0.12 (Mar) [ 0.13 (Apr) [ 0.11 (May) [ 0.13 (Jun) [ 0.05 (Jul) [ 0.04 (Aug) [ 0.06 (Sep)

<Land prices by region>

(Percentage change from previous period)

2009 2010

2011

Annual Annual Annual Q2

2012

Q3

Q4

Annual

Q2

Q3

2013 Q4 Jan-Sep Q1

Q2

Q3

Jul

Aug

Sep

Nationwide

0.96 1.05 1.17 0.30 0.29 0.29 0.87 0.33 0.12 0.21 0.67 0.21 0.37 0.10 0.02 0.00 0.08

Seoul

1.40 0.53 0.97 0.28 0.17 0.12 0.33 0.26 -0.14 0.09 0.59 0.10 0.41 0.08 -0.04 -0.03 0.15

Gyeonggi

1.22 1.49 1.47 0.38 0.43 0.39 0.97 0.34 0.17 1.32 0.56 0.17 0.33 0.07 0.05 -0.02 0.04

Incheon

1.99 1.43 0.66 0.18 0.15 0.15 0.36 0.16 -0.03 0.13 0.64 0.21 0.37 0.07 -0.01 0.02 0.06

Source: Korea Appraisal Board

Land prices by region Source: Korea Appraisal Board 15

(%)

12 9 6 3 0 -3 -6 -9 -12 -15 -18 1994

1995

1996

National average

1997

1998

1999

2000

2001

2002

Metropolitan area

2003

2004

2005

2006

2007 City

2008

2009

2010

2011

2012 County

Nationwide land transactions in September were 144,000 land lots, down 5.6 percent from the previous month but up 8.3 percent from 133,000 a year earlier.

Monthly land transactions increased in Seoul (up 11.4%, m-o-m) and Incheon (up 6.1%, m-o-m), but decreased in Busan (down 14.8%, m-o-m), Ulsan (down 31.0%, m-o-m) and North Chungcheong Province (down 16.6%, m-o-m).

Transactions of vacant land decreased 15.2 percent month-on-month to 57,000 lots, making up 39.4 percent of the total transactions, and were down 8.6 percent from a year earlier (62,000).

The Green Book | 43

<Land sales transactions>

(Land lot, thousand)

2009 2010 2011 1

1

2012

1

1

Annual Annual Annual Annual Aug Sep Nationwide

203

187

208

170

150

133

2013

Oct

Nov Dec

Jan

Feb

Mar

Apr May

Jun

Jul

Aug Sep

172

185

141

142

181

206

246

169

153

224

216

144

Seoul

22

16

18

13

10

9

15

16

20

10

10

15

18

20

26

13

13

14

Gyeonggi

46

41

43

33

30

27

35

36

45

29

28

33

39

43

49

33

29

30

Incheon

10

8

10

8

8

8

10

9

10

5

5

8

9

9

11

6

6

7

1. Monthly average Source: Korea Land & Housing Corporation

Land and consumer prices since 1970s Source: Korea Appraisal Board 60

(y-o-y, %)

50 40 30 20 10 0 -10 -20 1975

1980

1985

1990

1995

2000

2005

Land price inflation

2010

2012

Consumer price inflation

Land transaction volume Source: Korea Appraisal Board 500,000

(thousand square meter)

450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 2003. 1

2004. 1

2005. 1

Seoul metropolitan area

44 | The Green Book

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Areas excluding Seoul metropolitan area

13.

Industrial output in September decreased 0.8 percent month-on-month and 1.0 percent year-on-year. Output rose in services (up 0.3%, m-o-m), but declined in mining & manufacturing (down 2.1%, m-o-m), construction (down 2.2%, m-o-m) and public administration (down 3.3%, m-o-m).

Composite indices of business cycle indicators Industrial output

Source: Statistics Korea (industrial activity trend) 20

(%)

15 10 5 0 -5 -10 -15 2001. 1

2002. 1

2003. 1

2004. 1

Industrial output (m-o-m)

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Industrial output (y-o-y)

The cyclical indicator of the coincident composite index fell 0.1 point month-onmonth in September.

Four components of the coincident composite index, including mining & manufacturing production, declined while service activity and two other components rose.

Components of the coincident composite index in September (m-o-m) service activity (0.3%), imports (0.1%), nonfarm payroll employment (0.3%), mining & manufacturing production (-0.2%), value of construction completed (-0.9%), retail sales (-0.2%), domestic shipments (-0.6%) The cyclical indicator of the leading composite index declined 0.2 points from the previous month.

Two components of the leading composite index, such as the KOSPI and the value of construction orders received, rose compared to the previous month, but six components, including the ratio of job openings to job seekers and the indicator of inventory cycle, declined.

Components of the leading composite index in September (m-o-m) value of construction orders received (10.3%), KOSPI (1.8%), ratio of job openings to job seekers (-5.5%p), indicator of inventory cycle (-2.2%p), consumer expectations index (-0.7p), ratio of export to import prices (-0.4%), domestic shipments of machinery (-1.6%), international commodity prices (-0.8%), spreads between long & short term interest rates (0.0%p) The Green Book | 45

Cyclical indicator of coincident composite index Source: Statistics Korea (industrial activity trend) 110

(points)

105

100

95

90 2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

2006. 1

2007. 1

2008. 1

2009. 1

2010. 1

2011. 1

2012. 1

2013. 1

Cyclical indicator of leading composite index Source: Statistics Korea (industrial activity trend) 110

(points)

105

100

95

90 2001. 1

2002. 1

2003. 1

2004. 1

2005. 1

2013 Jan Industrial output (m-o-m, %)

Feb

Mar

Apr

May

Jun

Jul1

Aug1

Sep1

-0.9

1.1

-2.0

1.7

-0.6

-0.1

0.0

1.0

-0.8

(y-o-y, %)

3.2

-1.9

-0.8

3.6

1.1

0.4

1.4

2.9

-1.0

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

0.4

0.4

0.0

0.5

0.3

0.6

0.3

0.6

0.2

99.2

99.3

98.9

99.0

98.8

99.0

98.9

99.1

99.0

(m-o-m, p)

0.0

0.1

-0.4

0.1

-0.2

0.2

-0.1

0.2

-0.1

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

0.2

0.3

0.3

0.5

0.6

0.9

0.8

0.7

0.3

Cyclical indicator of leading composite index

99.8

99.6

99.5

99.6

99.9

100.5

100.9

101.2

101.0

(m-o-m, p)

-0.2

-0.2

-0.1

0.1

0.3

0.6

0.4

0.3

-0.2

Cyclical indicator of coincident composite index

1. Preliminary

46 | The Green Book

Economic News Briefing

Korea grows 1.1% in Q3 (Advanced) Koreaâ&#x20AC;&#x2122;s real gross domestic product (GDP) expanded by 1.1 percent quarter-onquarter and 3.3 percent year-on-year in the third quarter of 2013, according to advanced data released by the Bank of Korea (BOK) on October 25.

Manufacturing grew by 1.6 percent, as production of electronic equipment, petrochemical products, food and furniture expanded. Construction grew by 1.2 percent, led by civil engineering works, and agriculture, forestry and fisheries grew by 2.0 percent, led by wheat and pig farming. Services expanded by 0.7 percent, as growth in healthcare & social welfare services, wholesale & retail, hotels & restaurants, financial & insurance services and cultural & sports services offset weaknesses in real estate & renting and education services.

On the expenditure side, private and government consumption increased by 1.1 percent and 0.1 percent, respectively. Construction investment rose by 2.7 percent while facility investment grew by 1.2 percent. Exports declined by 0.9 percent, led by general machinery and petrochemical products, while imports increased by 0.1 percent, led by patent fees.

Meanwhile, real gross domestic income (GDI) grew 0.4 percent quarter-on-quarter and 4.2 percent compared to the third quarter of the previous year.

Economic News Briefing | 47

<GDP by production and expenditure*>

(Percentage change from previous period)

20121

2011 Q1 2

20131

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

0.3 (2.4)2

0.0 (1.6)2

0.3 (1.5)2

0.8 (1.5)2

1.1 (2.3)2

1.1 (3.3)2

GDP

1.3 (4.3)2

0.8 (3.5)2

0.8 (3.6)2

0.4 (3.4)2

0.8 (2.8)2

Agriculture, forestry & fisheries

-1.2

3.0

-4.8

10.0

-6.5

0.2

-2.6

7.9

-4.4

2.1

2.0

Manufacturing

3.1

1.1

1.4

-0.2

1.6

-0.2

-0.3

0.2

1.3

0.9

1.6

Construction

-3.0

1.8

1.5

0.1

-1.4

-1.8

0.9

-2.0

4.0

1.4

1.2

Services

0.9

0.3

0.5

0.6

1.1

0.5

0.3

0.4

0.7

0.9

0.7

Private consumption

0.7

0.6

0.1

-0.2

0.8

0.4

0.7

0.8

-0.4

0.7

1.1

Government consumption

0.5

1.1

1.0

-0.8

3.5

-0.1

0.8

-0.6

1.2

2.4

0.1

Facility investment

-2.0

4.0

-1.8

-3.6

10.4

-7.8

-5.2

-1.8

2.6

-0.2

1.2

Construction investment

-2.6

1.7

-0.4

0.1

-1.5

-1.3

0.7

-1.2

4.1

3.4

2.7

2.2

1.7

2.2

-2.2

3.9

-0.3

1.9

-1.1

3.0

1.8

-0.9

Imports of goods and services

0.6

2.3

1.0

-2.8

4.3

-1.8

1.8

-0.8

2.5

1.1

0.1

GDI

-0.3

0.7

0.5

0.5

-0.1

1.2

1.2

0.0

1.0

2.8

0.4

3

Exports of goods and services

*2005 chained prices in seasonally adjusted terms 1. Preliminary 2. Percentage change from the same period of the previous year 3. Wholesale & retail, 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.

Korea ranks 7th in World Bank’s ‘Doing Business’ report The World Bank’s ‘Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises’ report ranked Korea seven out of 189 countries. Korea rose one spot compared with last year’s report, and has been ranked in the global top 10 for the last three years.

The Doing Business report is a quantitative assessment of the regulations that affect small- and medium-sized enterprises (SMEs) over the course of a business’ life cycle. This is different from the International Institute for Management Development (IMD) and the World Economic Forum’s (WEF) reports on global competitiveness, which are both qualitative and quantitative assessments that cover a much wider area.

Korea’s ranking this year improved in eight indicators, such as the time cost of starting a business and the cost of construction permits. The report recognized the effect of administrative services, such as electronic tax payment systems (hometax,

48 | Economic News Briefing

wetax), social insurance payment systems (si4n), and startup systems (startbiz), on reducing the burden of doing business. The report also reflected that the cost to businesses and investors had decreased through the introduction of fast track systems for resolving insolvency.

Exports surpass US$50 billion in October Koreaâ&#x20AC;&#x2122;s monthly exports hit US$50 billion for the first time, led by the strong performance of IT products and automobiles. According to the Ministry of Trade, Industry and Energy (MOTIE) on November 1, exports in October rose 7.3 percent year-on-year to US$50.51 billion, surpassing the previous record of US$48.95 billion that was reached on July 2011.

Automobile exports increased 21.2 percent, while exports of wireless communication devices and semiconductors rose 33.1 percent and 15.2 percent, respectively. The diversification of export items also helped boost monthly export figures to record high levels. In October, exports of minor items surged 5.8 percent year-on-year, whereas exports of the 13 key items grew 0.2 percent. Electronic parts, cosmetics and plastic products are showing especially robust growth.

Government to ease forex transaction regulations The government will ease regulations regarding foreign exchange transactions to expand the scope of foreign exchange transaction-related businesses by nonbank financial institutions, and to promote the use of the won in foreign exchange-related settlements. According to the revised regulations, foreign exchange transactions between securities brokerages will be allowed, and investment banks will be able to provide improved prime brokerage services as they are allowed to lend foreign currency securities by notifying the BOK following the transaction, instead of reporting it beforehand.

Trust companies will be allowed to deal with derivatives and credit derivatives.

However, credit-based derivatives which have high capital movement risks will be obliged to report to the BOK before transactions. In addition, borrowing from the Korea-China currency swap line will be made easier as the fund will be made

Economic News Briefing | 49

available by opening won accounts in Chinese branches of Korean banks instead of having won accounts in Korea. Also, accessing won deposits in foreign banks will be made easier as transactions through domestic banks’ accounts will be allowed.

The revisions will take effect starting in 2014.

‘Climate Finance Week’ to be held in December A ceremony celebrating the launch of the Green Climate Fund (GCF) Secretariat will take place in Songdo, Incheon on December 4. The Ministry of Strategy and Finance (MOSF) will use the event as an opportunity to hold a ‘Climate Finance Week’ from December 2 to December 5, during which the Ministry will hold international meetings related to climate finance.

The launching ceremony for the GCF will not only be attended by the Korean government and important members of the nation’s private sector, but will also be attended by World Bank President Jim Yong Kim, International Monetary Fund (IMF) Managing Director Christine Lagarde, and UN Framework Convention on Climate Change (UNFCCC) Executive Secretary Christiana Figueres, among other esteemed members of the international community.

On December 5, the MOSF, along with the World Resource Institute (WRI) and the Korean Capital Market Institute (KCMI), will host a seminar to discuss climate change as a new investment opportunity and the role of the GCF and international financial institutions with regards to encouraging private sector investment.

Tax incentives to promote investment in culture and leisure facilities Starting next year, the government will provide additional tax incentives for corporate and private investment in culture and leisure facilities, such as libraries, museums, art museums and performance theaters. Investors will receive a 3 percent extra tax deduction for job creation, and this will lead to a total tax deduction of 4-7 percent. The standard tax deduction rate is 1-2 percent for large corporations, 2-3 percent for medium to large-sized corporations, and 4 percent for SMEs.

50 | Economic News Briefing

Government to revamp audit system Koreaâ&#x20AC;&#x2122;s financial authorities have announced reform plans to improve accounting transparency in limited, unlisted and nonprofit companies. According to the Financial Services Commission (FSC) on October 28, the Act on External Audit of Stock Companies, which is currently applied to listed companies only, will be revised to include unlisted companies as well. Accordingly, the title of the act will be changed to the Act on Accounting and External Audit of For-Profit Companies and Others. Also, large unlisted companies with assets worth more than 1 trillion won will be subject to the same accounting standards as listed companies. In addition, accounting and audit standards that apply to nonprofit companies will be established, in order to boost accounting transparency in those firms.

Korea signs currency swap agreement with Malaysia Korea and Malaysia signed a bilateral currency swap agreement worth US$4.7 billion on October 20. Under the agreement, which expires in three years and can be extended if needed, the two countries can swap 5 trillion won for 15 billion ringgit, or vice versa. Korea and Malaysia agreed to boost trade and increase financial cooperation in order to help the two economies grow and financial markets develop.

Government unveils support plan for failed businesses The government has vowed to help SMEs bounce back from business failure, unveiling a comprehensive plan to support firms at all stages of the business cycle. At the business startup stage, the government will increase the scope of entrepreneurs eligible for the exemption from joint liability, to reduce the risk of becoming delinquent borrowers. The Small and Medium Business Corporation (SBC) will increase the number of businesses that are exempt from joint liability from the current 200 to 2,000 by the end of the year.

Economic News Briefing | 51

At the growth or recovery stage, troubled businesses will be subject to in-depth diagnosis to determine their future options, such as business normalization, conversion or close-down, and when deemed viable, they will be offered a support package including financial support and consulting services to facilitate much needed restructuring. At the business exit or restart stage, a fast track system will be set up to support entrepreneurs who are making exceptional efforts to restart after experiencing failure.

Excessive financial burdens from business failure and an environment that makes it difficult for failed businesses to make rebounds are often cited as the main obstacles to entrepreneurship in Korea. The governmentâ&#x20AC;&#x2122;s latest plan is expected to promote innovative entrepreneurship and growth by facilitating a virtuous cycle in the business environment.

52 | Economic News Briefing

Statistical Appendices

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

Statistical Appendices | 53

1.

National accounts Real GDP Manufacturing

Final consumption expenditure

Construction

Facilities

4.0 5.2 5.1 2.3 0.3 6.3 3.7 2.0

Agri., fores. & fisheries 1.3 1.5 4.0 5.6 3.2 -4.4 -2.1 -0.6

6.2 8.1 7.2 2.8 -1.5 14.7 7.3 2.2

4.6 5.1 5.1 2.0 1.2 4.1 2.3 2.2

1.9 3.4 4.2 -1.9 -1.0 5.8 -1.0 -1.7

-0.4 0.5 1.4 -2.8 3.4 -3.7 -4.7 -2.2

5.3 8.2 9.3 -1.0 -9.8 25.7 3.6 -1.9

Period 2005 2006 2007 2008 2009 2010 2011 2012P

(year-on-year change, %, chained 2005 year prices) Gross fixed capital formation

2005

Ⅰ Ⅱ Ⅲ Ⅳ

2.7 3.4 4.5 5.1

0.4 4.8 3.8 -3.1

4.8 3.9 6.7 9.3

2.7 4.7 5.9 4.9

-0.3 1.8 1.5 3.9

-3.1 0.9 -0.3 0.3

3.4 2.8 4.1 10.8

2006

Ⅰ Ⅱ Ⅲ Ⅳ

6.1 5.1 5.0 4.6

3.9 -0.3 -1.4 4.2

9.4 9.1 8.7 5.4

5.8 4.9 4.6 5.1

3.8 0.1 4.0 5.7

1.9 -4.2 -0.5 5.1

7.2 8.0 12.0 5.7

2007

Ⅰ Ⅱ Ⅲ Ⅳ

4.5 5.3 4.9 5.7

1.6 7.0 8.2 -0.7

4.5 7.2 6.3 10.2

5.1 5.4 5.3 4.7

7.3 5.7 1.5 3.1

4.4 2.0 -0.2 0.4

12.6 13.0 4.0 8.0

2008

Ⅰ Ⅱ Ⅲ Ⅳ

5.5 4.4 3.3 -3.3

7.8 4.6 4.3 6.5

8.9 8.3 5.3 -9.4

4.3 3.0 2.4 -1.7

-0.6 0.6 2.1 -8.7

-2.5 -0.5 0.4 -7.7

2.8 2.0 5.3 -13.3

2009

Ⅰ Ⅱ Ⅲ Ⅳ

-4.2 -2.1 1.0 6.3

2.5 0.0 5.0 5.0

-13.6 -7.1 1.8 13.1

-2.2 0.7 1.5 4.8

-7.5 -3.0 -1.0 6.2

1.6 4.3 3.2 4.0

-21.9 -18.1 -9.4 12.2

2010

Ⅰ Ⅱ Ⅲ Ⅳ

8.7 7.6 4.5 4.9

-0.1 -2.2 -7.8 -5.9

22.4 17.6 9.5 11.0

6.1 3.6 3.5 3.0

11.2 5.8 5.6 2.3

1.8 -4.7 -4.9 -5.2

29.6 32.0 26.3 16.9

2011

Ⅰ Ⅱ Ⅲ Ⅳ

4.3 3.5 3.6 3.4

-9.7 -2.6 -5.8 7.1

10.3 7.4 6.4 5.5

2.8 2.8 2.4 1.3

-1.4 0.4 -1.4 -1.8

-10.0 -4.7 -3.6 -1.7

10.5 7.7 1.1 -3.6

2012P

Ⅰ Ⅱ Ⅲ Ⅳ

2.8 2.4 1.6 1.5

-0.4 -1.8 0.3 -0.5

4.1 2.7 0.9 1.3

2.1 1.6 2.1 2.8

3.7 -2.6 -2.5 -4.2

-0.4 -3.1 -0.3 -4.2

8.8 -3.5 -6.9 -5.2

2013P

Ⅰ Ⅱ Ⅲ

1.5 2.3 3.3

0.3 2.7 7.3

1.0 2.1 4.0

1.4 2.3 2.4

-3.8 2.9 5.6

2.4 7.2 8.0

-11.9 -4.6 1.8

P: Preliminary Source: The Bank of Korea 54 | Statistical Appendices

2.

Production, shipment and inventory (constant prices, 2010=100) Production index Period 2011 2012

105.9 106.8

Y-o-Y change (%) 5.9 0.8

Shipment index

105.6 106.4

Y-o-Y change (%) 5.6 0.8

Inventory index

Service production index

120.2 124.1

Y-o-Y change (%) 14.9 3.2

103.2 104.8

Y-o-Y change (%) 3.2 1.6

2011

Ⅰ Ⅱ Ⅲ Ⅳ

102.6 107.4 103.9 109.7

9.3 6.1 5.3 3.3

103.3 106.6 103.1 109.2

10.0 5.4 4.6 2.6

104.7 110.0 112.7 120.2

7.7 12.0 11.9 14.9

99.5 103.4 103.2 106.7

2.8 2.9 4.5 2.8

2012

Ⅰ Ⅱ Ⅲ Ⅳ

106.3 108.6 102.9 109.6

3.6 1.1 -1.0 -0.1

106.3 108.1 102.6 108.4

2.9 1.4 -0.5 -0.7

117.8 115.2 114.6 124.1

12.5 4.7 1.7 3.2

102.1 104.9 104.7 107.6

2.6 1.5 1.5 0.8

2013

Ⅰ Ⅱ ⅢP

104.5 107.8 103.0

-1.7 -0.7 0.1

104.1 107.3 102.6

-2.1 -0.7 0.0

122.4 118.9 124.7

3.9 3.2 8.8

102.9 106.7 105.4

0.8 1.7 0.7

2011

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

105.3 91.8 110.6 106.8 107.1 108.3 105.9 101.5 104.4 109.7 109.3 110.1

11.9 6.7 8.9 5.5 6.9 5.9 3.6 5.1 7.2 4.2 3.5 2.3

105.8 93.3 110.8 106.8 106.0 107.0 104.0 101.2 104.2 109.1 108.2 110.3

12.8 8.6 8.6 5.2 6.6 4.5 2.9 4.1 6.9 3.5 1.9 2.5

104.6 102.8 104.7 105.8 108.6 110.0 111.8 112.2 112.7 115.6 117.9 120.2

7.6 4.2 7.7 7.6 9.5 12.0 10.7 10.9 11.9 13.6 15.6 14.9

100.1 94.2 104.1 102.1 103.5 104.7 103.1 103.1 103.3 104.2 103.7 112.3

5.1 0.4 2.6 3.3 2.3 3.1 3.6 5.1 4.4 3.7 3.1 1.9

2012

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

101.9 105.8 111.2 106.4 110.4 108.9 105.6 99.4 103.6 107.6 111.6 109.7

-3.2 15.3 0.5 -0.4 3.1 0.6 -0.3 -2.1 -0.8 -1.9 2.1 -0.4

102.6 105.8 110.6 105.9 109.6 108.9 104.8 98.5 104.6 106.6 109.5 109.0

-3.0 13.4 -0.2 -0.8 3.4 1.8 0.8 -2.7 0.4 -2.3 1.2 -1.2

119.4 117.5 117.8 116.6 118.4 115.2 115.8 119.5 114.6 115.5 120.4 124.1

14.1 14.3 12.5 10.2 9.0 4.7 3.6 6.5 1.7 -0.1 2.1 3.2

100.5 100.0 105.9 102.7 105.9 106.0 104.7 103.8 105.9 104.6 105.2 113.1

0.4 6.2 1.7 0.6 2.3 1.2 1.6 0.7 2.2 0.4 1.4 0.7

2013

1 2 3 4 5 6 7 8P 9P

109.7 95.8 108.0 108.0 109.0 106.3 106.5 102.6 99.9

7.7 -9.5 -2.9 1.5 -1.3 -2.4 0.9 3.2 -3.6

107.9 96.4 108.1 107.3 108.1 106.5 105.1 103.0 99.5

5.2 -8.9 -2.3 1.3 -1.4 -2.2 0.3 4.6 -4.9

127.8 124.1 122.4 120.2 121.6 118.9 123.9 123.4 124.7

7.0 5.6 3.9 3.1 2.7 3.2 7.0 3.3 8.8

101.8 100.3 106.6 105.4 107.6 107.0 105.4 105.4 105.3

1.3 0.3 0.7 2.6 1.6 0.9 0.7 1.5 -0.3

P: Preliminary Source: Statistics Korea Statistical Appendices | 55

3.

Production capacity and operation ratio

Period

Production capacity index (2010=100)

2011 2012

104.9 107.2

Y-o-Y change (%) 4.9 2.2

Operation ratio index (2010=100) 99.8 97.0

Y-o-Y change (%) -0.2 -2.8

Average operation ratio (%) 80.2 78.1

2011

Ⅰ Ⅱ Ⅲ Ⅳ

103.6 104.7 105.2 106.1

5.9 5.2 4.5 4.0

97.6 103.1 97.3 101.3

2.0 0.4 -0.3 -2.6

81.4 80.4 80.4 78.8

2012

Ⅰ Ⅱ Ⅲ Ⅳ

106.8 107.1 107.2 107.5

3.1 2.3 1.9 1.3

96.9 100.3 92.8 97.9

-0.7 -2.7 -4.6 -3.4

79.6 79.0 76.2 77.8

2013

Ⅰ Ⅱ ⅢP

108.0 108.4 108.9

1.1 1.2 1.6

92.7 96.8 90.1

-4.3 -3.5 -2.9

77.1 75.4 74.7

2011

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

103.2 103.4 104.2 104.6 104.6 104.9 105.1 105.2 105.4 106.0 106.1 106.2

6.1 5.9 5.8 5.7 5.2 4.9 4.7 4.6 4.3 4.2 4.1 3.7

100.3 87.0 105.4 102.3 102.8 104.3 100.4 94.4 97.2 102.4 101.6 99.9

4.6 -0.1 1.3 -1.0 1.5 0.7 -2.6 0.0 2.1 -1.8 -1.8 -4.1

82.5 80.3 81.3 79.6 80.2 81.3 80.9 80.0 80.4 79.7 78.9 77.7

2012

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

106.7 106.8 106.9 107.0 107.1 107.2 106.9 107.4 107.3 107.4 107.6 107.6

3.4 3.3 2.6 2.3 2.4 2.2 1.7 2.1 1.8 1.3 1.4 1.3

91.8 96.5 102.3 98.2 102.0 100.8 96.8 87.9 93.8 97.7 100.3 95.8

-8.5 10.9 -2.9 -4.0 -0.8 -3.4 -3.6 -6.9 -3.5 -4.6 -1.3 -4.1

79.7 80.4 78.7 79.0 79.5 78.4 77.8 74.0 76.7 77.0 78.0 78.4

2013

1 2 3 4 5 6 7 8P 9P

107.9 108.0 108.1 108.1 108.4 108.6 108.7 109.0 109.0

1.1 1.1 1.1 1.0 1.2 1.3 1.7 1.5 1.6

97.9 84.1 96.2 96.8 98.3 95.3 93.8 90.1 86.4

6.6 -12.8 -6.0 -1.4 -3.6 -5.5 -3.1 2.5 -7.9

78.6 77.2 75.4 75.4 75.4 75.4 74.1 76.3 73.7

P: Preliminary Source: Statistics Korea 56 | Statistical Appendices

4.

Consumer goods sales index (constant prices, 2010=100) Consumer goods sales index Durable goods

Period 2011 2012

104.5 106.9

Y-o-Y change (%) 4.5 2.3

Semi-durable goods

110.6 116.5

Y-o-Y change (%) 10.6 5.3

103.7 102.6

Y-o-Y change (%) 3.7 -1.1

Non-durable goods

102.1 104.4

Y-o-Y change (%) 2.1 2.3

2011

Ⅰ Ⅱ Ⅲ Ⅳ

100.7 104.8 103.7 108.9

5.3 6.2 4.0 2.6

105.4 112.2 111.4 113.3

11.5 16.9 10.3 4.4

98.3 105.5 94.2 116.7

5.1 5.2 3.6 1.2

99.6 101.2 104.4 103.3

2.7 2.0 1.5 2.4

2012

Ⅰ Ⅱ Ⅲ Ⅳ

103.5 106.3 106.4 111.6

2.8 1.4 2.6 2.5

110.0 115.5 118.8 121.8

4.4 2.9 6.6 7.5

98.0 104.4 90.9 117.1

-0.3 -1.0 -3.5 0.3

102.9 102.8 107.5 104.3

3.3 1.6 3.0 1.0

2013

Ⅰ Ⅱ ⅢP

103.7 107.5 107.0

0.2 1.1 0.6

111.3 118.1 116.8

1.2 2.3 -1.7

99.8 105.3 92.7

1.8 0.9 2.0

101.9 103.5 108.8

-1.0 0.7 1.2

2011

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

105.4 92.8 103.9 102.5 107.3 104.7 104.2 100.9 106.0 107.4 107.2 112.0

10.9 -0.5 5.6 6.1 6.6 6.1 4.1 4.9 3.2 3.3 1.8 2.7

104.0 97.8 114.5 106.4 112.6 117.5 117.0 109.7 107.6 109.0 116.3 114.5

12.1 8.2 14.2 14.8 19.0 16.7 12.5 11.7 6.9 3.4 7.4 2.3

104.9 90.0 99.8 105.6 109.9 100.9 96.2 86.2 100.1 116.1 111.9 122.1

10.4 1.7 3.1 5.9 4.7 4.9 3.8 3.4 3.7 2.2 -2.6 4.0

106.3 91.7 100.8 99.4 103.6 100.5 101.8 103.4 107.9 102.7 100.9 106.4

10.7 -5.3 2.6 2.4 2.0 1.7 0.2 2.5 1.5 3.6 1.3 2.3

2012

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

107.5 97.9 105.0 102.9 110.0 105.9 108.0 102.0 109.1 109.0 111.5 114.2

2.0 5.5 1.1 0.4 2.5 1.1 3.6 1.1 2.9 1.5 4.0 2.0

107.7 107.9 114.4 107.8 118.1 120.5 126.2 114.3 115.9 117.1 123.0 125.3

3.6 10.3 -0.1 1.3 4.9 2.6 7.9 4.2 7.7 7.4 5.8 9.4

103.6 91.0 99.3 103.7 110.4 99.2 96.0 80.7 96.0 113.5 117.8 119.9

-1.2 1.1 -0.6 -1.8 0.5 -1.7 -0.2 -6.4 -4.1 -2.2 5.3 -1.8

109.2 96.3 103.1 100.2 106.0 102.1 105.0 105.8 111.7 103.2 103.3 106.5

2.7 5.0 2.3 0.8 2.3 1.6 3.1 2.3 3.5 0.5 2.4 0.1

2013

1 2 3 4 5 6 7 8P 9P

104.6 99.5 106.9 105.0 110.7 106.7 109.1 104.4 107.5

-2.7 1.6 1.8 2.0 0.6 0.8 1.0 2.4 -1.5

112.0 106.6 115.2 114.0 119.9 120.5 127.7 115.7 107.2

4.0 -1.2 0.7 5.8 1.5 0.0 1.2 1.2 -7.5

101.4 91.1 106.9 104.7 111.9 99.4 95.9 85.2 97.1

-2.1 0.1 7.7 1.0 1.4 0.2 -0.1 5.6 1.1

102.6 99.9 103.1 101.0 105.9 103.6 106.3 107.7 112.3

-6.0 3.7 0.0 0.8 -0.1 1.5 1.2 1.8 0.5

P: Preliminary Source: Statistics Korea Statistical Appendices | 57

5.

Consumer goods shipment index and consumer sentiment index Domestic consumer goods shipment index (2010=100) Durable goods

Period 2011 2012

109.2 101.1

Y-o-Y change (%) 0.9 0.2

Non-durable goods

100.2 98.5

Y-o-Y change (%) 0.2 -1.7

101.2 102.3

Y-o-Y change (%) 1.2 1.1

Consumer sentiment index -

2011

Ⅰ Ⅱ Ⅲ Ⅳ

100.8 97.9 101.2 103.8

4.3 1.0 0.6 -2.1

99.5 100.7 100.8 99.9

4.1 3.1 -0.4 -5.3

101.4 96.7 101.4 105.4

4.6 0.2 1.0 -0.8

-

2012

Ⅰ Ⅱ Ⅲ Ⅳ

100.0 99.7 100.9 103.9

-0.8 1.8 -0.3 0.1

97.4 98.9 96.0 101.7

-2.1 -1.8 -4.8 1.8

101.2 100.1 103.0 104.8

-0.2 3.5 1.6 -0.6

-

2013

Ⅰ Ⅱ ⅢP

98.4 95.2 98.6

-1.6 -4.5 -2.3

95.3 91.7 94.2

-2.2 -7.3 -1.9

99.7 96.6 100.5

-1.5 -3.5 -2.4

-

2011

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

108.6 88.7 105.2 98.2 96.1 99.3 99.7 102.1 101.8 105.0 102.1 104.2

7.0 -1.6 7.2 0.9 0.9 1.2 -0.8 2.3 0.4 -1.6 -3.8 -1.0

100.9 92.6 105.1 97.3 99.3 105.4 104.2 98.1 100.0 100.3 98.6 100.9

5.1 1.5 5.4 2.2 4.1 2.9 -1.2 0.4 -0.3 -5.4 -7.4 -3.1

111.9 87.1 105.2 98.6 94.7 96.7 97.8 103.8 102.6 107.0 103.6 105.7

7.8 -2.8 8.0 0.4 -0.4 0.5 -0.6 3.0 0.7 0.1 -2.2 -0.1

111 109 110 102 105 103 103 99 99 101 105 100

2012

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

100.2 97.9 101.9 98.7 101.9 98.6 101.6 98.5 102.7 103.7 104.2 103.7

-7.7 10.4 -3.1 0.5 6.0 -0.7 1.9 -3.5 0.9 -1.2 2.1 -0.5

92.2 98.0 102.1 93.6 100.2 102.9 105.1 87.5 95.4 98.4 101.0 105.7

-8.6 5.8 -2.9 -3.8 0.9 -2.4 0.9 -10.8 -4.6 -1.9 2.4 4.8

103.7 97.9 101.9 100.9 102.7 96.7 100.1 103.1 105.8 105.9 105.6 102.8

-7.3 12.4 -3.1 2.3 8.4 0.0 2.4 -0.7 3.1 -1.0 1.9 -2.7

98 102 102 106 106 101 100 101 99 100 100 99

2013

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

104.0 92.3 98.8 96.6 96.2 92.8 99.4 99.6 96.7 -

3.8 -5.7 -3.0 -2.1 -5.6 -5.9 -2.2 1.1 -5.8 -

96.8 92.7 96.4 90.3 92.2 92.6 99.1 94.2 89.2 -

5.0 -5.4 -5.6 -3.5 -8.0 -10.0 -5.7 7.7 -6.5 -

107.0 92.2 99.8 99.2 97.9 92.8 99.5 102.0 99.9 -

3.2 -5.8 -2.1 -1.7 -4.7 -4.0 -0.6 -1.1 -5.6 -

102 102 104 102 104 105 105 105 102 106

Source: Statistics Korea 58 | Statistical Appendices

6.

Machinery orders received, domestic machinery shipment and estimated facility investment index Domestic machinery orders received excluding ship (billion won, constant value) Period 2012

Private

Total

Public

21,789

2,142

19,647

Manufacturing 10,482

Estimated facility investment index (2005=100)

Domestic machinery shipment excluding ship (2010=100)

136.4

98.8

2012

Ⅰ Ⅱ Ⅲ Ⅳ

6,310 5,391 5,079 5,004

810 285 579 468

5,500 5,106 4,500 4,536

3,055 2,765 2,320 2,339

144.5 145.7 128.1 127.4

103.4 104.6 90.9 96.4

2013

Ⅰ Ⅱ ⅢP

5,621 5,862 5,127

429 554 505

5,192 5,308 4,621

2,928 3,037 2,854

122.3 131.2 122.1

83.5 93.8 85.2

2012

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

1,933 2,541 1,836 1,845 1,830 1,716 1,835 1,516 1,729 1,545 1,689 1,771

52 695 63 56 39 190 310 169 100 86 127 255

1,881 1,846 1,773 1,789 1,791 1,526 1,525 1,347 1,629 1,458 1,562 1,516

1,158 1,036 860 927 988 850 779 689 852 733 833 773

139.4 146.8 147.4 143.1 145.9 148.1 140.4 118.2 125.7 119.7 124.4 138.1

95.0 106.0 109.1 104.1 103.8 105.8 96.4 87.8 88.6 92.7 93.8 102.6

2013

1 2 3 4 5 6 7 8P 9P

1,864 1,675 2,083 1,839 2,128 1,895 1,936 1,593 1,598

139 168 121 92 250 212 359 81 66

991 858 1,078 957 1,109 972 978 935 941

117.5 113.8 135.7 125.8 128.3 139.4 128.8 123.3 114.3

81.1 76.6 92.7 88.9 92.2 100.4 89.3 83.7 82.6

-13.4

-11.0

-25.9

-2.0

-5.3

2012

1,724 1,506 1,961 1,747 1,878 1,683 1,578 1,512 1,532 Y-o-Y change (%) -13.6

2012

Ⅰ Ⅱ Ⅲ Ⅳ

-1.1 -19.8 -10.4 -21.5

126.1 -59.7 86.7 -54.6

-8.7 -15.1 -16.0 -15.1

-19.0 -27.3 -26.6 -31.4

10.7 -2.7 -8.2 -6.9

4.4 -5.0 -10.7 -9.4

2013

Ⅰ Ⅱ ⅢP

-10.9 8.7 0.9

-47.0 94.2 -12.7

-5.6 4.0 2.7

-4.2 9.8 23.0

-15.4 -10.0 -4.7

-19.2 -10.3 -6.3

2012

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

-0.8 25.1 -23.6 -4.4 -14.4 -35.4 -9.4 -13.8 -8.1 -20.8 -26.4 -17.0

-22.2 829.0 -70.9 -10.3 -72.8 -62.2 135.5 105.9 3.5 -72.3 -75.8 31.2

0.0 -5.7 -18.9 -4.3 -10.2 -29.1 -19.5 -19.7 -8.7 -11.0 -11.6 -21.8

3.9 -12.3 -41.7 -22.4 -19.1 -38.7 -25.1 -32.7 -22.4 -24.3 -25.0 -42.0

10.3 27.3 -1.7 2.8 -3.3 -7.0 -0.4 -15.6 -8.6 -3.5 -10.8 -6.3

1.0 16.5 -2.5 -0.3 -6.8 -7.6 -6.9 -12.2 -13.1 -8.5 -8.4 -11.2

2013

1 2 3 4 5 6 7 8P 9P

-3.6 -34.1 13.4 -0.3 16.3 10.4 5.5 5.1 -7.6

169.8 -75.8 92.2 63.8 542.9 11.5 15.8 -52.3 -34.2

-8.3 -18.4 10.6 -2.4 4.8 10.3 3.5 12.3 -5.9

-14.4 -17.2 25.3 3.2 12.1 14.4 25.6 35.7 10.4

-15.7 -22.5 -7.9 -12.1 -12.1 -5.9 -8.3 4.3 -9.1

-14.6 -27.7 -15.0 -14.6 -11.2 -5.1 -7.4 -4.7 -6.8

P: Preliminary Source: Statistics Korea Statistical Appendices | 59

7.

Value of construction completed and domestic construction orders received (current prices, billion won) Period 2012

Value of construction completion (total) 88,031

Type of order Public

Private

Domestic construction orders received (total) 86,821

Type of order Public

Private

33,578

50,260

26,103

57,202

2012

Ⅰ Ⅱ Ⅲ Ⅳ

19,106 22,203 21,135 25,587

7,385 8,813 7,499 9,881

10,795 12,333 12,584 14,548

21,772 25,136 17,665 22,248

5,531 5,602 5,478 9,492

15,549 18,515 11,632 11,506

2013

Ⅰ Ⅱ ⅢP

20,113 25,615 23,624

6,984 9,287 8,051

12,364 15,348 14,658

12,805 17,888 16,000

4,279 5,306 4,860

8,255 11,899 10,822

2012

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

5,742 5,979 7,385 6,789 7,225 8,189 6,970 6,508 7,658 7,298 8,030 10,259

2,106 2,358 2,921 2,625 2,839 3,349 2,337 2,292 2,870 2,574 2,974 4,333

3,339 3,371 4,086 3,875 4,066 4,393 4,254 3,907 4,423 4,432 4,742 5,375

7,244 8,122 6,406 6,033 7,215 11,887 6,450 5,120 6,195 5,501 7,232 9,516

1,796 2,165 1,390 1,448 1,072 3,082 2,284 1,341 1,852 1,962 2,148 5,382

5,100 5,812 4,636 4,097 6,034 8,385 3,886 3,738 4,008 3,507 4,743 3,255

2013

1 2 3 4 5 6 7 8P 9P

6,258 6,217 7,638 8,062 8,105 9,448 7,812 7,635 8,177

2,065 2,341 2,579 2,820 2,782 3,686 2,628 2,550 2,873

3,424 4,304 5,077 4,910 5,889 7,090 5,420 4,690 5,890

1,306 1,280 1,694 1,551 1,552 2,203 1,422 1,522 1,916

1,970 2,955 3,329 2,944 4,219 4,736 3,903 3,156 3,763

-4.0

-4.4

3,948 3,650 4,766 4,948 5,050 5,350 4,875 4,801 4,982 Y-o-Y change (%) -2.7

-8.9

-8.8

-7.5

2012 2012

Ⅰ Ⅱ Ⅲ Ⅳ

-0.9 -7.7 -1.3 -5.1

0.9 -5.1 -2.4 -8.7

-2.1 -7.5 -0.1 -1.0

33.3 -0.7 -13.6 -33.1

34.3 -11.2 -18.4 -17.3

40.0 4.9 -9.6 -43.1

2013

Ⅰ Ⅱ ⅢP

5.3 15.4 11.8

-5.4 5.4 7.4

14.5 24.4 16.5

-41.2 -28.8 -9.4

-22.6 -5.3 -11.3

-46.9 -35.7 -7.0

2012

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

-7.2 12.2 -4.8 -5.4 -2.9 -13.3 3.2 -5.6 -1.5 -8.3 2.2 -7.9

-13.6 16.3 2.3 -4.3 1.8 -10.9 -1.7 -6.8 0.9 -11.3 -6.2 -8.8

-4.3 10.1 -8.8 -4.7 -4.3 -12.5 4.8 -4.7 -0.3 -5.1 10.5 -6.2

47.5 99.1 -12.8 -10.1 0.9 3.7 23.1 -32.4 -19.7 -26.6 -20.0 -43.0

50.2 53.7 0.3 1.4 -43.3 3.0 23.1 -10.9 -44.7 -15.3 -28.1 -12.9

75.6 131.7 -18.6 -11.5 27.3 1.3 25.6 -35.4 0.4 -29.7 -19.2 -65.2

2013

1 2 3 4 5 6 7 8P 9P

9.0 4.0 3.4 18.7 12.2 15.4 12.1 17.3 6.8

-2.0 -0.7 -11.7 7.4 -2.0 10.1 12.5 11.3 0.1

18.3 8.3 16.6 27.7 24.2 21.8 14.6 22.9 12.7

-52.7 -47.0 -20.7 -18.6 -18.4 -40.4 -14.6 -8.4 -4.9

-33.9 -40.9 21.8 7.1 44.8 -28.5 -37.8 13.5 3.4

-61.4 -49.2 -28.2 -28.1 -30.1 -43.5 0.4 -15.6 -6.1

P: Preliminary Source: Statistics Korea 60 | Statistical Appendices

8.

Composite indices of business cycle indicators and BSI

Period

Leading index (2010=100)

Coincident index (2010=100)

Cycle of coincident index (2010=100)

BSI (results)

BSI (prospects)

2009

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

87.4 88.2 88.7 90.5 91.9 93.6 94.3 95.0 95.9 96.9 98.2 98.8

88.5 88.5 89.2 90.3 90.8 92.3 93.1 93.7 94.3 95.3 96.0 96.5

95.3 95.0 95.4 96.1 96.4 97.5 98.0 98.3 98.6 99.2 99.6 99.7

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

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

2010

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

99.2 99.1 99.0 99.0 99.6 100.1 100.7 100.8 101.0 100.5 100.5 100.5

97.0 97.7 98.4 99.1 99.8 100.3 100.9 101.1 101.1 101.0 101.4 102.2

99.9 100.2 100.5 100.8 101.1 101.2 101.4 101.1 100.7 100.2 100.2 100.6

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

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

2011

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

101.3 101.6 101.7 101.3 101.6 102.0 102.6 102.9 103.2 103.3 103.4 103.7

103.5 103.6 104.0 104.0 104.7 105.3 105.9 106.5 106.5 107.0 106.9 107.4

101.4 101.1 101.1 100.7 100.9 101.1 101.2 101.4 101.0 101.0 100.6 100.5

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

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

2012

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

104.4 105.4 105.7 106.2 106.3 107.4 108.0 108.1 108.0 108.3 109.1 109.9

107.4 108.2 108.3 108.6 108.7 109.1 109.7 109.6 110.1 110.0 110.7 111.3

100.2 100.5 100.2 100.0 99.7 99.7 99.8 99.3 99.3 98.9 99.1 99.2

88.6 92.2 101.4 97.5 95.7 90.4 82.1 84.4 89.3 88.9 82.2 87.0

88.3 91.0 106.1 98.4 104.7 98.3 89.7 82.7 99.5 97.0 92.5 82.0

2013

1 2 3 4 5 6 7 8 9 10 11

110.1 110.4 110.7 111.3 112.0 113.0 113.9 114.7 115.0 -

111.8 112.3 112.3 112.9 113.2 113.9 114.2 114.9 115.1 -

99.2 99.3 98.9 99.0 98.8 99.0 98.9 99.1 99.0 -

85.0 83.0 101.3 94.1 97.6 95.0 91.1 89.8 93.0 94.7 -

85.7 86.7 104.4 101.5 99.8 97.2 90.7 92.7 94.4 101.1 94.7

Source: Statistics Korea & The Bank of Korea Statistical Appendices | 61

9.

Balance of payments (I) (million US$) Current balance Goods trade balance

Period 2011 2012

Exports

Imports

Services trade balance

Income trade Balance

Current transfers

26,068.2 43,138.5

31,660.0 38,337.7

551,765.4 552,565.3

520,105.4 514,227.6

-5,849.5 2,676.2

2,890.9 4,885.5

-2,633.2 -2,760.9

2011

Ⅰ Ⅱ Ⅲ Ⅳ

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

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

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

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

-2,538.0 -796.0 -1,198.2 154.8

387.9 -824.8 1,314.9 1,577.8

-1,082.3 -548.0 -418.5 -474.7

2012

Ⅰ Ⅱ Ⅲ Ⅳ

2,559.9 11,188.8 14,561.7 14,828.1

2,612.4 8,520.5 13,341.2 13,863.6

134,627.6 138,784.9 137,086.0 142,066.8

132,015.2 130,264.4 123,744.8 128,203.2

-648.4 2,312.7 654.4 357.5

1,487.6 821.4 1,041.3 1,535.2

-891.7 -465.8 -475.2 -928.2

2013P

Ⅰ Ⅱ Ⅲ

9,971.8 19,803.0 19,014.5

9,339.8 15,838.1 16,657.1

137,293.0 142,434.4 140,914.0

127,953.2 126,596.3 124,256.9

-483.0 3,761.9 1,330.1

1,375.0 62.2 1,571.6

-260.0 140.8 -544.3

2011

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

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

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

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

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

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

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

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

2012

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

-968.8 557.3 2,971.4 1,734.0 3,574.9 5,879.9 6,144.3 2,504.3 5,913.1 5,781.7 6,906.2 2,140.2

-1,624.0 1,310.1 2,926.3 1,750.8 1,715.9 5,053.8 5,340.6 2,514.0 5,486.6 5,168.9 6,777.4 1,917.3

41,383.8 45,863.0 47,380.8 45,820.3 46,162.8 46,801.8 46,620.5 42,895.6 47,569.9 48,144.1 49,636.8 44,285.9

43,007.8 44,552.9 44,454.5 44,069.5 44,446.9 41,748.0 41,279.9 40,381.6 42,083.3 42,975.2 42,859.4 42,368.6

-128.8 -1,219.3 699.7 549.7 1,593.0 170.1 593.3 -262.2 323.3 378.3 -51.6 30.8

1,191.7 613.4 -317.5 -422.0 341.6 901.8 401.9 435.5 203.9 521.9 374.3 639.0

-407.7 -146.9 -337.1 -144.5 -75.6 -245.7 -191.5 -183.0 -100.7 -287.4 -193.9 -446.9

2013P

1 2 3 4 5 6 7 8 9

2,331.7 2,712.9 4,927.2 3,926.9 8,638.8 7,237.3 6,766.7 5,676.7 6,571.1

2,617.7 2,562.9 4,159.2 3,543.3 7,270.0 5,024.8 5,674.0 5,280.1 5,703.0

47,163.0 42,218.6 47,911.4 47,482.1 49,593.9 45,358.4 48,387.5 46,218.3 46,308.2

44,545.3 39,655.7 43,752.2 43,938.8 42,323.9 40,333.6 42,713.5 40,938.2 40,605.2

-927.1 -461.0 905.1 1,447.6 1,130.5 1,183.8 357.0 100.6 872.5

968.4 628.9 -222.3 -1,088.6 193.6 957.2 776.5 475.2 319.9

-327.3 -17.9 85.2 24.6 44.7 71.5 -40.8 -179.2 -324.3

P: Preliminary Source: The Bank of Korea 62 | Statistical Appendices

10.

Balance of payments (II) (million US$) Capital & financial account Period

2011 2012

Direct investment

Portfolio investment

Financial derivative

Other investment

-26,778.0 -43,619.1

-16,410.0 -18,628.1

13,109.3 10,114.8

-1,031.3 3,075.2

-8,468.6 -26,897.7

Capital transfers Changes in & acquisition of reserve assets non-financial assets -24.7 -13,952.8 602.1 -11,885.4

Errors and omissions 709.8 480.6

2011

Ⅰ Ⅱ Ⅲ Ⅳ

-2,754.1 -6,808.0 -8,320.9 -20,931.2

-4,696.3 -4,138.1 -2,807.6 -2,980.7

-1,379.1 2,035.4 8,108.4 -5,338.8

730.3 -542.9 -1,490.7 1,086.4

6,251.6 -1,432.5 -18,692.6 -11,733.2

-181.4 -111.9 235.5 106.8

-3,479.2 -2,618.0 6,326.1 -2,071.7

143.8 1,315.8 1,424.9 6,103.1

2012

Ⅰ Ⅱ Ⅲ Ⅳ

-1,377.1 -7,968.0 -13,342.8 -20,931.2

-7,203.3 -3,015.2 -5,428.9 -2,980.7

15,156.1 -5,481.3 5,778.8 -5,338.8

1,355.0 -65.3 699.1 1,086.4

-4,232.7 -581.2 -10,350.6 -11,733.2

134.3 284.3 76.7 106.8

-6,586.4 890.7 -4,118.0 -2,071.7

-1,182.8 -3,220.8 -1,218.9 6,103.1

2013P

Ⅰ Ⅱ Ⅲ

-10,901.4 -19,112.7 -19,625.6

-4,065.9 -2,554.7 -3,124.4

-5,769.9 -8,374.8 9,272.8

1,418.9 -604.6 1,694.0

1,294.3 -11,584.9 -20,770.7

152.0 -59.6 -119.1

-3,930.8 4,065.9 -6,578.2

929.6 -690.3 611.1

2011

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

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

-1,725.4 -1,635.1 -1,335.8 -738.8 -1,254.7 -2,144.6 327.1 -1,036.4 -2,098.3 -1,132.2 -2,077.1 -842.7

904.6 -3,004.0 720.3 4,575.0 -1,140.1 -1,399.5 9,258.3 -2,923.0 1,773.1 3,919.1 39.8 -2,411.4

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

1,773.30 5,126.9 -648.6 -145.9 -821.7 -464.9 -6,581.0 4,638.4 -16,750.0 2,784.7 -6.2 10.1

-120.7 -32.7 -28.0 -33.6 -49.9 -28.4 13.8 41.5 180.2 109.7 98.1 0.0

-2,683.1 -2,088.0 1,291.9 -3,055.8 -855.4 1,293.2 -6,014.0 -542.5 12,882.6 -10,181.7 -3,866.6 -93.2

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

2012

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

1,305.6 -920.3 -1,762.4 157.7 -2,897.4 -5,228.3 -7,840.1 -605.0 -4,897.7 -7,259.3 -9,838.2 -3,833.7

-2,013.3 -3,572.6 -1,617.4 -940.4 -1,382.0 -692.8 -1,443.6 -1,607.1 -2,378.2 -975.0 -1,336.2 -669.5

7,737.0 6,115.2 1,303.9 -2,213.3 -937.1 -2,330.9 2,529.2 580.9 2,668.7 -4,657.2 -3,875.8 3,194.2

434.2 214.1 706.7 320.5 -390.4 4.6 267.1 68.3 363.7 -135.3 612.6 609.1

-2,190.4 -1,526.1 -516.2 2,667.4 -1,600.9 -1,647.7 -7,625.3 1,464.0 -4,189.3 -15.5 -2,683.7 -9,034.0

-1.7 36.0 100.0 102.3 144.2 37.8 36.3 8.0 32.4 -6.1 5.8 107.1

-2,660.2 -2,186.8 -1,739.4 221.2 1,268.8 -599.3 -1,603.8 -1,119.2 -1,395.0 -1,470.2 -2,560.9 1,959.4

-336.8 363.0 -1,209.0 -1,891.7 -677.5 -651.6 1,695.8 -1,899.3 -1,015.4 1,477.6 2,932.0 1,693.5

2013P

1 2 3 4 5 6 7 8 9

-910.3 -3,269.1 -6,722.0 -2,606.4 -11,596.0 -4,910.3 -7,442.6 -7,593.4 -4,589.6

-1,417.7 -777.8 -1,870.4 303.3 -1,482.2 -1,375.8 -981.0 -915.2 -1,228.2

-4,374.3 1,993.5 -3,389.1 -1,917.5 -1,171.9 -5,285.4 1,847.4 1,438.4 5,987.0

586.9 686.9 145.1 -313.2 649.2 -940.6 443.3 218.1 1032.6

4,643.9 -3,218.3 -131.3 -1,584.7 -8,534.9 -1,465.3 -6,641.3 -6,744.1 -7,411.6

48.5 37.8 65.7 -36.8 -16.8 -6.0 -119.5 66.8 -66.4

-397.6 -1,991.2 -1,542.0 942.5 -1,039.4 4,162.8 -1,991.5 -1,683.7 -2,903.0

-1,421.4 556.2 1,794.8 -1,320.5 2,957.2 -2,327.0 675.9 1,916.7 -1,981.5

P: Preliminary Source: The Bank of Korea Statistical Appendices | 63

11.

Prices (2010=100) Consumer Prices

Producer prices

Export & import prices

Period All Items 2011 2012

Commodity

Service

Core

All Items

Commodity

Export

Import

104.0 106.3

105.7 108.9

102.7 104.2

103.2 104.9

106.7 107.5

108.7 108.9

100.2 97.9

111.6 110.8

2011

7 8 9 10 11 12

104.3 105.0 104.9 104.7 104.8 105.2

105.9 107.1 107.1 106.6 106.8 107.3

103.1 103.3 103.1 103.2 103.3 103.5

103.7 103.8 103.7 103.6 103.9 104.3

107.2 107.4 107.4 107.3 107.0 107.1

109.3 109.5 109.6 109.4 108.9 109.0

97.4 98.1 101.0 102.2 99.5 99.4

109.5 109.8 113.6 114.8 113.1 113.3

2012

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

105.7 106.1 106.0 106.0 106.2 106.1 105.9 106.3 107.0 106.9 106.5 106.7

107.9 108.5 109.2 108.9 109.2 108.8 107.9 108.8 110.4 109.8 108.9 109.0

103.9 104.2 103.5 103.7 103.9 104.0 104.2 104.4 104.4 104.6 104.6 104.8

104.6 104.7 104.3 104.4 104.6 104.9 104.9 105.1 105.2 105.2 105.3 105.5

107.7 108.4 108.9 109.0 108.4 107.1 106.6 107.2 107.6 106.8 106.1 105.8

109.5 110.5 111.2 111.1 110.3 108.4 107.6 108.6 109.2 107.8 106.8 106.4

100.4 100.0 100.6 101.0 100.2 98.8 97.5 97.5 97.6 95.6 92.9 92.3

114.4 115.0 116.9 115.6 113.5 109.4 108.5 110.3 111.1 107.4 104.3 103.2

2013

1 2 3 4 5 6 7 8 9 10

107.3 107.6 107.4 107.3 107.3 107.2 107.4 107.7 107.9 107.6

109.8 110.2 110.3 109.8 109.6 109.3 109.6 110.2 110.7 109.9

105.2 105.5 105.1 105.3 105.4 105.4 105.6 105.8 105.7 105.8

106.0 106.7 106.3 105.9 105.6 105.5 105.5 105.8 105.7 105.3

106.8 107.8 107.1 106.6 106.1 106.0 106.0 106.2 106.1 105.5

92.2 94.4 94.7 95.3 94.4 96.8 96.0 95.3 93.0 91.2

102.3 105.1 104.3 104.4 102.5 104.7 103.8 104.5 102.1 99.6

4.0 2.2

5.7 3.0

105.9 106.1 105.9 105.9 106.3 106.4 106.5 106.5 106.9 106.9 Y-o-Y change (%) 2.7 3.2 1.5 1.6

6.7 0.7

8.7 0.2

0.2 -2.4

11.6 -0.7

2011 2012 2011

7 8 9 10 11 12

4.5 4.7 3.8 3.6 4.2 4.2

6.4 6.8 5.0 4.5 6.0 5.7

2.9 3.0 2.7 2.8 2.7 2.8

3.6 3.5 3.3 3.2 3.5 3.6

7.0 6.9 6.3 5.8 5.1 4.3

9.1 8.9 8.0 7.4 6.5 5.3

-6.0 -2.7 1.0 5.3 2.0 -1.0

7.6 8.0 11.9 14.5 10.7 6.1

2012

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

3.4 3.1 2.6 2.5 2.5 2.2 1.5 1.2 2.0 2.1 1.6 1.4

4.4 3.9 4.1 4.1 4.3 3.6 1.9 1.6 3.1 3.0 2.0 1.6

2.7 2.5 1.4 1.3 1.3 1.2 1.1 1.1 1.3 1.4 1.3 1.3

3.2 2.5 1.9 1.8 1.6 1.5 1.2 1.3 1.4 1.5 1.3 1.2

3.2 3.1 2.4 1.9 1.0 0.0 -0.6 -0.1 0.2 -0.5 -0.9 -1.2

3.6 3.6 2.7 1.9 0.7 -0.7 -1.5 -0.9 -0.4 -1.4 -1.9 -2.3

1.7 -0.7 -3.0 -1.2 -0.3 -0.5 0.1 -0.7 -3.4 -6.5 -6.6 -7.2

7.7 5.2 3.3 1.5 1.8 -1.3 -0.9 0.5 -2.2 -6.4 -7.9 -9.0

2013

1 2 3 4 5 6 7 8 9 10

1.5 1.4 1.3 1.2 1.0 1.0 1.4 1.3 0.8 0.7

1.8 1.6 1.0 0.8 0.4 0.5 1.6 1.3 0.3 0.1

1.3 1.2 1.5 1.5 1.4 1.3 1.3 1.3 1.2 1.1

1.2 1.3 1.5 1.4 1.6 1.4 1.5 1.3 1.6 1.6

-1.6 -1.6 -2.4 -2.8 -2.6 -1.4 -1.0 -1.3 -1.8 -1.4

-2.5 -2.5 -3.7 -4.1 -3.8 -2.2 -1.6 -2.1 -2.8 -2.2

-8.1 -5.6 -5.9 -5.7 -5.8 -2.0 -1.5 -2.2 -4.7 -4.6

-10.6 -8.6 -10.8 -9.7 -9.7 -4.3 -4.3 -5.3 -8.1 -7.3

Source: The Bank of Korea 64 | Statistical Appendices

12.

Employment Economically active persons (thous.)

Period

2011 2012

Wage workers

Employed persons (thous.)

25,099 25,501

All industry Manufacturing 24,244 4,091 24,681 4,105

S.O.C & service 18,595 19,033

Status of Worker

Unemployment (%) Regular

Temporary

Daily

3.4 3.2

17,397 17,712

10,661 11,097

4,990 4,988

1,746 1,627

2011

7 8 9 10 11 12

25,473 25,257 25,076 25,409 25,318 24,880

24,636 24,495 24,318 24,673 24,589 24,125

4,079 4,031 4,014 4,044 4,054 4,071

18,844 18,739 18,595 18,856 18,921 18,833

3.3 3.0 3.0 2.9 2.9 3.0

17,667 17,510 17,378 17,608 17,650 17,496

10,718 10,710 10,764 10,796 10,838 10,824

5,137 5,031 5,047 5,094 5,047 4,986

1,811 1,769 1,567 1,718 1,765 1,686

2012

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

24,585 24,825 25,210 25,653 25,939 25,939 25,901 25,623 25,755 25,787 25,652 25,139

23,732 23,783 24,265 24,758 25,133 25,117 25,106 24,859 25,003 25,069 24,941 24,402

4,034 4,060 4,018 4,027 4,071 4,084 4,114 4,111 4,153 4,188 4,218 4,183

18,631 18,599 18,870 19,103 19,292 19,248 19,265 19,040 19,125 19,128 19,088 19,010

3.5 4.2 3.7 3.5 3.1 3.2 3.1 3.0 2.9 2.8 2.8 2.9

17,184 17,225 17,421 17,679 17,935 17,932 17,911 17,734 17,862 17,958 17,941 17,763

10,769 10,807 10,899 10,957 11,064 11,157 11,153 11,203 11,291 11,302 11,281 11,282

4,868 4,877 4,997 5,095 5,153 5,094 5,081 4,935 4,961 4,964 4,960 4,875

1,547 1,542 1,525 1,627 1,718 1,681 1,676 1,595 1,610 1,692 1,700 1,606

2013

1 2 3 4 5 6 7 8 9 10

24,901 24,973 25,397 25,928 26,195 26,291 26,301 26,074 26,186 26,268

24,054 23,984 24,514 25,103 25,398 25,478 25,473 25,291 25,466 25,545

4,189 4,139 4,141 4,192 4,175 4,180 4,167 4,116 4,174 4,218

17,581 17,493 17,743 18,145 18,388 18,429 18,413 18,240 18,429 18,489

11,292 11,336 11,510 11,616 11,726 11,750 11,814 11,842 11,888 11,875

4,791 4,725 4,769 4,892 4,964 4,980 4,984 4,862 4,937 4,961

1,498 1,431 1,465 1,636 1,699 1,699 1,615 1,536 1,605 1,653

1.4 1.6

1.7 1.8

1.6 0.3

18,810 3.4 18,736 4.0 18,989 3.5 19,303 3.2 19,492 3.0 19,531 3.1 19,577 3.1 19,438 3.0 19,540 2.7 19,558 2.8 Y-o-Y change (%) 2.1 2.4 -

2.5 1.8

5.7 4.1

-1.5 0.0

-3.9 -6.9

2011 2012 2011

7 8 9 10 11 12

1.0 1.7 0.7 1.6 1.9 1.4

1.4 2.0 1.1 2.1 2.0 1.9

1.0 -0.7 -1.2 -1.3 -2.1 -2.1

1.9 3.1 2.1 3.2 3.2 3.1

-

2.5 2.7 1.6 2.5 2.0 2.0

6.0 5.5 5.4 5.0 4.9 4.6

-1.5 -1.8 -1.2 0.1 -0.4 -0.3

-4.9 -0.3 -11.9 -5.0 -7.0 -6.7

2012

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

2.0 1.6 1.2 1.6 1.8 1.4 1.7 1.4 2.7 1.5 1.3 1.0

2.3 1.9 1.8 1.9 1.9 1.5 1.9 1.5 2.8 1.6 1.4 1.1

-2.8 -2.1 -2.5 -2.0 -1.6 -1.2 0.8 2.0 3.5 3.6 4.0 2.8

3.5 3.2 3.4 3.1 3.0 2.3 2.2 1.6 2.8 1.4 0.9 0.9

-

2.1 2.2 2.1 1.9 1.8 1.2 1.4 1.3 2.8 2.0 1.7 1.5

4.5 4.0 3.4 3.2 3.3 4.1 4.1 4.6 4.9 4.7 4.1 4.2

0.4 2.0 4.5 3.4 1.8 -0.7 -1.1 -1.9 -1.7 -2.5 -1.7 -2.2

-7.9 -8.5 -12.3 -10.2 -7.4 -10.2 -7.5 -9.8 2.7 -1.5 -3.6 -4.7

2013

1 2 3 4 5 6 7 8 9 10

1.3 0.6 0.7 1.1 1.0 1.4 1.5 1.7 1.7 1.9

1.4 0.8 1.0 1.4 1.1 1.4 1.5 1.7 1.9 1.9

3.9 1.9 3.1 4.1 2.6 2.3 1.3 0.1 0.5 0.7

1.0 0.7 0.6 1.0 1.0 1.5 1.6 2.1 2.2 2.2

-

2.3 1.6 1.8 2.6 2.5 2.8 2.8 2.9 3.2 3.0

4.9 4.9 5.6 6.0 6.0 5.3 5.9 5.7 5.3 5.1

-1.6 -3.1 -4.6 -4.0 -3.7 -2.2 -1.9 -1.5 -0.5 -0.1

-3.1 -7.1 -4.0 0.6 -1.1 1.0 -3.6 -3.7 -0.4 -2.3

Source: Statistics Korea Statistical Appendices | 65

13.

Financial indicators (period average) Yields(%) Period

Stock

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

Corporate bonds (3 years, AA-) 7.3 7.1 6.1 5.7 5.2 5.2 5.5 5.7 5.6 5.6 5.4 5.4

2010

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

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

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

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

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

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

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

2011

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

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

2.9 3.1 3.4 3.4 3.5 3.5 3.6 3.6 3.6 3.6 3.6 3.6

4.5 4.7 4.5 4.5 4.4 4.4 4.5 4.2 4.2 4.3 4.2 4.2

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

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

2,069.73 1,939.30 2,106.70 2,192.36 2,142.47 2,100.69 2,133.21 1,880.11 1,769.65 1,909.03 1,847.51 1,825.74

2012

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

3.3 3.3 3.3 3.3 3.3 3.3 3.1 3.0 3.0 2.8 2.8 2.8

3.6 3.5 3.5 3.5 3.5 3.5 3.3 3.2 3.1 2.9 2.9 2.9

4.2 4.3 4.4 4.3 4.0 3.9 3.6 3.4 3.3 3.3 3.3 3.3

3.4 3.4 3.6 3.5 3.4 3.3 3.0 2.8 2.8 2.8 2.8 2.9

3.5 3.6 3.7 3.6 3.5 3.4 3.1 2.9 2.9 2.9 2.9 3.0

1,955.79 2,030.25 2,014.04 1,981.99 1,843.47 1,854.01 1,881.99 1,905.12 1,996.21 1,912.06 1,932.90 1,997.05

2013

1 2 3 4 5 6 7 8 9 10

2.8 2.8 2.7 2.8 2.6 2.5 2.5 2.5 2.5 2.5

2.9 2.8 2.8 2.8 2.7 2.7 2.7 2.7 2.7 2.7

3.2 3.1 3.0 2.9 3.0 3.2 3.4 3.3 3.3 3.3

2.8 2.7 2.6 2.6 2.6 2.9 2.9 2.9 2.9 2.8

2.9 2.8 2.7 2.6 2.7 3.1 3.2 3.2 3.2 3.1

1,961.94 2,026.49 2,004.89 1,963.95 2,001.05 1,863.32 1,914.03 1,926.36 1,996.96 2,030.09

Call rate (1 day)

CD (91 days)

Source: The Bank of Korea 66 | Statistical Appendices

Treasury bonds (3 years) 3.4 3.8 3.7 3.8 3.8 4.1 4.1 4.4 4.4 4.5 4.3 4.2

Treasury bonds (5 years) 4.0 4.6 4.5 4.4 4.5 4.7 4.6 4.9 4.9 4.9 4.8 4.8

KOSPI (end-period) 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

14.

Monetary indicators (billion won) Period

Reserve money

2011 2012

M1

M2

Lf

75,232.0 82,131.1

425,675.1 441,963.6

1,708,984.5 1,798,625.7

2,208,170.4 2,379,518.7

2011

7 8 9 10 11 12

74,069.7 75,642.3 77,942.2 76,944.6 76,617.3 77,842.5

418,973.1 422,649.3 425,196.4 421,480.1 423,111.9 432,602.2

1,705,451.5 1,719,437.8 1,729,531.1 1,742,645.4 1,753,296.4 1,756,597.4

2,208,624.3 2,230,191.9 2,243,675.6 2,263,627.7 2,279,234.1 2,288,816.9

2012

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

81,635.4 81,655.3 79,068.0 80,641.8 80,547.7 81,804.0 81,555.7 82,369.1 82,958.7 85,078.6 82,956.5 85,302.7

439,352.9 437,193.9 440,075.4 437,445.3 438,795.3 441,611.0 441,760.6 439,573.2 440,034.3 444,477.8 445,463.9 457,778.9

1,757,058.7 1,762,988.4 1,773,172.9 1,777,114.7 1,784,220.5 1,796,981.5 1,807,289.2 1,817,134.9 1,819,290.1 1,822,420.9 1,830,280.3 1,835,556.7

2,292,213.5 2,302,065.8 2,341,626.9 2,349,723.2 2,357,701.0 2,377,071.3 2,393,737.7 2,405,239.9 2,415,263.5 2,424,000.4 2,440,062.8 2,455,962.9

2013

1 2 3 4 5 6 7 8 9

85,839.3 88,855.7 89,523.5 87,729.0 89,654.8 91,207.6 90,643.7 93,729.6 95,130.6

464,914.5 472,239.6 472,430.1 475,330.0 475,526.7 486,587.5 488,982.7 481,416.9 490,518.7 Y-o-Y change (%) 6.6 3.8

1,841,128.1 1,857,135.0 1,862,405.5 1,867,726.3 1,870,289.7 1,884,193.2 1,890,728.6 1,888,658.4 1,903,187.1

2,469,789.3 2,488,539.0 2,499,718.1 2,512,459.7 2,518,239.1 2,533,750.8 2,549,443.5 2,557,336.3 2,577,546.7

4.2 5.2

5.3 7.8

2011 2012

11.3 9.2

2011

7 8 9 10 11 12

10.6 12.4 10.9 10.1 10.3 8.9

3.8 5.4 5.1 4.1 2.0 1.6

3.2 4.0 4.2 4.4 4.4 4.4

4.6 5.5 5.7 6.1 6.2 6.2

2012

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

11.0 8.3 8.3 10.2 9.1 9.5 10.1 8.9 6.4 10.6 8.3 9.6

2.3 1.1 2.1 2.8 3.5 4.7 5.4 4.0 3.5 5.5 5.3 5.8

4.8 5.3 5.7 5.5 5.5 5.9 6.0 5.7 5.2 4.6 4.4 4.5

6.5 7.2 8.8 8.6 8.4 8.5 8.4 7.8 7.6 7.1 7.1 7.3

2013

1 2 3 4 5 6 7 8 9

5.1 8.8 13.2 8.8 11.3 11.5 11.1 13.8 14.7

5.8 8.0 7.4 8.7 8.4 10.2 10.7 9.5 11.5

4.8 5.3 5.0 5.1 4.8 4.9 4.6 3.9 4.6

7.7 8.1 6.8 6.9 6.8 6.6 6.5 6.3 6.7

Source: The Bank of Korea Statistical Appendices | 67

15.

Exchange rates

￦/US$

￦/100￥

￦/Euro

Period 2011 2012

End-period

Average

End-period

Average

End-period

Average

1,153.3 1,071.1

1,108.1 1,126.9

1,485.2 1,247.5

1,391.3 1,413.1

1,494.1 1,416.3

1,541.4 1,448.2

2011

7 8 9 10 11 12

1,052.6 1,071.7 1,179.5 1,104.5 1,150.3 1,153.3

1,059.5 1,073.2 1,118.6 1,155.5 1,132.3 1,147.5

1,353.2 1,396.8 1,536.6 1,458.0 1,475.7 1,485.2

1,333.4 1,391.4 1,456.5 1,508.2 1,460.0 1,473.4

1,507.9 1,547.3 1,601.4 1,562.7 1,532.9 1,494.1

1,515.4 1,538.7 1,542.4 1,584.0 1,536.6 1,511.0

2012

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

1,125.0 1,126.5 1,137.8 1,134.2 1,177.8 1,153.8 1,136.2 1,134.6 1,118.6 1,094.1 1,084.7 1,071.1

1,145.9 1,123.4 1,125.9 1,135.6 1,154.3 1,165.5 1,143.4 1,131.7 1,124.8 1,106.9 1,087.5 1,077.0

1,473.1 1,399.2 1,380.7 1,412.0 1,489.1 1,453.8 1,453.6 1,444.0 1,441.1 1,374.5 1,320.6 1,247.5

1,488.7 1,433.7 1,364.1 1,393.9 1,447.1 1,469.1 1,446.4 1,438.4 1,438.6 1,400.9 1,344.0 1,288.1

1,478.2 1,516.3 1,513.4 1,501.7 1,456.6 1,435.0 1,393.1 1,419.6 1,444.3 1,418.3 1,407.3 1,416.3

1,477.2 1,486.0 1,487.1 1,495.6 1,478.6 1,462.3 1,407.0 1,402.8 1,446.0 1,436.0 1,395.9 1,411.4

2013

1 2 3 4 5 6 7 8 9 10

1,082.7 1,085.4 1,112.1 1,108.1 1,128.3 1,149.7 1,113.6 1,110.9 1,075.6 1,061.4

1,065.4 1,086.7 1,102.2 1,121.8 1,110.7 1,135.2 1,127.2 1,117.0 1,087.4 1,066.8

1,196.8 1,166.4 1,161.1 1,148.4 1,100.3 1,165.7 1,130.7 1,142.1 1,095.1 1,089.6

1,469.3 1,425.8 1,425.2 1,451.3 1,471.4 1,498.2 1,476.7 1,470.6 1,451.3 1,456.6

1,415.7 1,452.3 1,427.5 1,459.6 1,441.5 1,498.7 1,475.1 1,488.4 1,449.0 1,455.2

1.3 -7.1

-4.2 1.7

1,188.5 1,176.2 1,180.1 1,132.0 1,116.6 1,167.2 1,135.4 1,129.2 1,098.7 1,077.5 Y-o-Y change (%) 6.3 -16.0

5.4 1.6

-1.3 -5.2

0.6 -6.0

2011 2012 2011

7 8 9 10 11 12

-11.3 -9.9 3.3 -2.0 -0.6 1.3

-12.2 -9.0 -4.1 2.8 0.5 0.0

-1.2 -0.7 12.7 4.8 7.4 6.3

-3.2 0.8 5.2 10.0 6.8 7.0

-2.9 2.7 2.9 -0.4 1.0 -1.3

-1.6 1.0 1.6 1.6 -0.3 -0.3

2012

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

1.0 -0.1 2.8 5.8 9.0 7.0 7.9 5.9 -5.2 -0.9 -5.7 -7.1

2.3 0.5 0.3 4.5 6.5 7.8 7.9 5.5 0.6 -4.2 -4.0 -6.1

8.6 1.3 3.7 7.5 11.5 8.8 7.4 3.4 -6.2 -5.7 -10.5 -16.0

9.8 6.1 -0.9 6.8 8.5 9.4 8.5 3.4 -1.2 -7.1 -7.9 -12.6

-2.4 -2.1 -3.2 -5.6 -6.0 -8.0 -7.6 -8.3 -9.8 -9.2 -8.2 -5.2

-1.2 -2.5 -5.4 -4.7 -4.7 -6.0 -7.2 -8.8 -6.3 -9.3 -9.2 -6.6

2013

1 2 3 4 5 6 7 8 9 10

-3.8 -3.6 -2.3 -2.3 -4.2 -0.4 -2.0 -2.1 -3.8 -3.0

-7.0 -3.3 -2.1 -1.2 -3.8 -2.6 -1.4 -1.3 -3.3 -3.6

-19.3 -15.9 -14.5 -19.8 -25.0 -19.7 -21.9 -21.8 -23.8 -21.6

-19.6 -18.6 -14.9 -17.6 -24.0 -20.7 -21.8 -20.6 -23.9 -22.2

-0.6 -6.0 -5.8 -3.4 1.0 4.4 6.0 3.6 0.5 2.7

-4.2 -2.3 -4.0 -2.4 -2.5 2.5 4.8 6.1 0.2 1.3

Source: The Bank of Korea 68 | Statistical Appendices

■ Editor-in-Chief Cho Byung-Koo (KDI) Kim Yong-Jin (MOSF) ■ Editorial Board Lauren Kang (MOSF) Lee Seong-Pyo (KDI) Lee Jae-Yeal (KDI) ■ Coordinators Kim Dae-Hyun (MOSF) Lee Ji-Youn (KDI) ■ Editors David Friedman (MOSF) Joung Hye-Sun (MOSF)

Useful Economy-related Websites Ministry of Strategy and Finance http://english.mosf.go.kr Ministry of Trade, Industry and Energy http://www.motie.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 Employment and Labor http://www.moel.go.kr/english The Bank of Korea http://www.bok.or.kr/eng Statistics Korea http://kostat.go.kr/portal/english

ISSN 2287-7266

Republic of Korea ECONOMIC BULLETIN (Republic of Korea)

ECONOMIC BULLETIN

03 The Green Book: Current Economic Trends 47 Economic News Briefing

Korea Grows 1.1% in Q3 Exports Surpass US$50 Billion in October Government to Ease Forex Transaction Regulations ‘Climate Finance Week’ to be Held in December

For free subscriptions and enquiries, please contact:

MOSF/KDI

Economic Information and Education Center Korea Development Institute 47 Hoegiro, Dongdaemun-gu Seoul, 130-740 Republic of Korea Tel. +82 2 958 4645 Fax. +82 2 3295 0748 E-mail. jiyounlee@kdi.re.kr Website. http://eiec.kdi.re.kr

53 Statistical Appendices Vol.35 No.11 November 2013

Foreign Press Spokesperson’s Office Ministry of Strategy and Finance Government Complex, 477 Galmae-ro Sejong, 339-012 Republic of Korea Tel. +82 2 731 1530 Fax. +82 2 731 1540 E-mail. fppr@mosf.go.kr Website. http://english.mosf.go.kr

| Economic Information and Education Center

Vol.35 No.11

November 2013