201601 by KOCIS

ISSN 2287-7266

ECONOMIC BULLETIN (Republic of Korea)

Republic of Korea

eb.kdi.re.kr

Vol.38 No.1 January 2016

conomic u l l e t i n

Vol.38 No.1 January 2016

The Green Book: Current Economic Trends Policy Issue 2016 Work Report

Economic News Briefing

ECONOMIC BULLETIN

(Republic of Korea)

BOK Forecasts 3.0% Growth for 2016 FDI Posts Record High in 2015 Government to Work on Speeding Up Corporate Restructuring FX reserves amount to US $368.0 bn at end of 2015

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Statistical Appendices

International Media Relations Division Ministry of Strategy and Finance Government Complex, 477 Galmae-ro

January 2016

Sejong, 30109 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 Korea Development Institute 263 Namsejong-ro Sejong, 30149 Republic of Korea Fax. +82 44 550 4941 E-mail. jiyounlee@kdi.re.kr Website. http://eb.kdi.re.kr

MOSF / KDI

Tel. +82 44 550 4645

02 The Green Book: Current Economic Trends Overview

01. External economic situation

02. Private consumption

03. Facility investment

04. Construction investment

05. Exports and imports

06. Mining and manufacturing production

07. Service sector activity

08. Employment

09. Financial markets

9.1 Stock market

9.2 Exchange rate

9.3 Bond market

9.4 Money supply & money market

10. Balance of payments

11. Prices

11.1 Consumer prices

11.2 International oil and commodity prices

12. Real estate market

12.1 Housing market

12.2 Land market

13. Composite indices of business cycle indicators

contents

42 Policy Issue 2016 work report

45 Economic News Briefing BOK forecasts 3.0% growth for 2016 FDI posts record high in 2015 Government to work on speeding up corporate restructuring Korea expands flexible tariff list in 2016 Exports down 7.9% in 2015 FX reserves amount to US $368.0 bn at end of 2015 Korea attends AIIB opening ceremony

49 Statistical Appendices

Editor-in-Chief Kim Joo-Hoon (KDI) Jung Moo-kyung (MOSF) Editorial Board Park Joon-Kyu (MOSF) Lee Yong-Soo (KDI) Lee Jae-Yeal (KDI) Coordinators Kim Dae-Hyun (MOSF) Lee Ji-Youn (KDI) Editors Jeon Aram (MOSF) Kim Hanul (MOSF) Kang Ji-Eun (KDI)

The Green Book: Current Economic Trends Overview

01. External economic situation

02. Private consumption 03. Facility investment 04. Construction investment 05. Exports and imports 06. Mining and manufacturing production 07. Service sector activity 08. Employment 09. Financial markets 10. Balance of payments 11. Prices 12. Real estate market 13. Composite indices of business cycle indicators

Overview

Domestic consumption continues to rise, while production and investment stumble due to weak exports. The economy continued to add jobs in November 2015, but at a slower rate of 285,000 year-on-year growth compared with the previous month (348,000) as unfavorable weather conditions negatively affected job markets in the agricultural, forestry, fishery and construction sectors. Consumer price inflation edged up year-on-year in December from 1.0 percent to 1.3 percent backed by strong domestic consumption as well as due to a low base effect.

Mining and manufacturing production fell 2.1 percent in December, down at a faster pace compared with the previous month (down 1.3%), due to weak exports as well as inventory reduction in the IT industry and regular maintenance in oil refineries. In November, service output rose 0.1 percent month-on-month, improving for the fifth consecutive month. Retail sales fell by 1.1 percent compared with the previous month due to a high base effect, but increased 5.5 percent year-on-year. Facility investment dropped 6.0 percent month-on-month in November due to weak transportation equipment, while construction completed fell 0.8 percent due to heavy rainfall. The cyclical indicator of the coincident composite index fell 0.1 points, down for the first time in five months. The cyclical indicator of the leading composite index declined 0.1 points, down for the first time in four months. Exports continued to fall in December amid low petroleum product prices, down 13.8 percent year-on-year. In December, stock prices fell as the Fed raised rates, and bond yields dropped due to growing demand for safe assets. The Korean won depreciated against both the US dollar and Japanese yen. Both housing prices and Jeonse (lump-sum deposits with no monthly payments) prices continued to increase month-on-month in December, rising 0.2 percent and 0.3 percent, respectively. Although the economy continues to recover backed by strong domestic consumption, it is faced with both external and internal risks, such as Chinaâ&#x20AC;&#x2122;s slowdown and financial market volatility, effects of the Fedâ&#x20AC;&#x2122;s rate hike, falling oil prices and Northâ&#x20AC;&#x2122;s nuclear test. The government will stimulate the economy through its spending frontloaded to the first quarter of 2016, work to boost consumption and investment, seek enhanced export competitiveness and renew efforts to restructure the four areas of the public, labor, financial and education sectors. The government will closely monitor internal and external economic developments as well as examine uncertainties and their possible impact on domestic financial markets, and will be prepared to make appropriate responses if necessary.

January 2016

1. External economic situation

Despite US economic growth, the global economy is facing growing risks from China’s slowing economy and volatile stock markets as well as economic uncertainties in emerging countries due to US interest rate hikes and low international oil prices.

World GDP growth 7

Source: International Monetary Fund

(%)

6 5 4 3 2 1 0 2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

The US economy grew 2.0 percent (annualized, q-o-q) in the third quarter of 2015 as better labor market conditions helped boost consumption. Industrial production fell 0.6 percent month-on-month in November and the ISM Manufacturing Index for December dropped to 48.2, both of which declined for the third consecutive month as the dollar gained strength and global demand remained weak. ISM Manufacturing Index (base=50) 51.5 (Apr 2015) → 52.8 (May) → 53.5 (Jun) → 52.7 (Jul) → 51.1 (Aug) → 50.2 (Sep) → 50.1 (Oct) → 48.6 (Nov) → 48.2 (Dec)

Backed by improving labor markets, retail sales grew 0.2 percent month-on-month in November and both the University of Michigan Consumer Sentiment Index and the Conference Board Consumer Confidence Index rose in December to 92.6 and 96.5, respectively. University of Michigan Consumer Sentiment Index (1966=100) 95.9 (Apr 2015) → 90.7 (May) → 96.1 (Jun) → 93.1 (Jul) → 91.9 (Aug) → 87.2 (Sep) → 90.0 (Oct) → 91.3 (Nov) → 92.6 (Dec) Conference Board Consumer Confidence Index (1985=100) 94.3 (Apr 2015) → 94.6 (May) → 99.8 (Jun) → 91.0 (Jul) → 101.3 (Aug) → 102.6 (Sep) → 99.1 (Oct) → 92.6 (Nov) → 96.5 (Dec)

The Green Book : Current Economic Trends

(Percentage change from previous period)

2012

2013

2014

2.2

1.5

2.4

Q3 4.3

Q4 2.1

Q1 0.6

Q2 3.9

Q3 2.0

Sep -

Oct -

Nov -

1.5 9.0 13.5

1.7 3.0 9.5

2.7 6.2 1.8

3.5 9.0 3.4

4.3 0.7 10.0

1.8 1.6 10.1

3.6 4.1 9.3

3.0 2.6 8.2

Annual Annual Annual

Real GDP1 - Personal consumption expenditure - Nonresidential fixed investment - Residential fixed investment

2015

Industrial production

2.8

1.9

3.7

1.0

1.2

-0.1

-0.6

0.7

-0.1

-0.4

-0.6

Retail sales

4.9

3.9

0.7

0.6

-1.1

1.7

1.1

-0.1

0.1

0.2

Existing home sales

8.9

9.0

-3.0

3.5

0.1

-1.7

6.5

3.4

4.7

-4.1 -10.5

Unemployment rate² Consumer prices (y-o-y)

8.1 2.1

7.4 1.5

6.2 1.6

6.1 1.8

5.7 1.2

5.6 -0.1

5.4 0.0

5.2 0.1

5.1 0.0

5.0 0.2

5.0 0.5

1. Annualized rate (%) 2. Seasonally adjusted Sources: US Department of Commerce, Bloomberg

US GDP growth and industrial production 10 8

Sources: US Department of Commerce, Federal Reserve Board

(%)

6 4 2 0 -2 -4 -6 -8 -10 2006.Q1

2007.Q1

GDP (q-o-q, annualized rate)

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

Industrial production (q-o-q)

New home sales in November increased 4.3 percent month-on-month, while existing home sales sharply fell by 10.5 percent as some sales data were not included due to new regulations. Case-Shiller Home Price Index (y-o-y, %) 4.9 (Mar 2015) → 4.9 (Apr) → 4.9 (May) → 4.9 (Jun) → 4.9 (Jul) → 5.1 (Aug) → 5.4 (Sep) → 5.5 (Oct) New home sales (m-o-m, %) 4.6 (Feb 2015) → -11.0 (Mar) → 4.7 (Apr) → 1.0 (May) → -8.6 (Jun) → 6.6 (Jul) → 1.4 (Aug) → -12.8 (Sep) → 6.3 (Oct) → 4.3 (Nov)

The unemployment rate reached 5.0 percent in December, being at full employment, while nonfarm payrolls added 292,000 jobs, increasing by more than 200,000 jobs for the third consecutive month. Nonfarm payroll increase (m-o-m, thousands) 260 (May 2015) → 245 (Jun) → 223 (Jul) → 153 (Aug) → 145 (Sep) → 307 (Oct) → 252 (Nov) → 292 (Dec)

January 2016

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

(thousands)

(%)

600

12 10

400 8

200 0

-200 4

-400 -600

-800 -1,000

0 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

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

2014.1

2015.1

Unemployment rate (right)

China

Concerns over China’s slowing economy grew as the PMI for December fell and exports continued to slow, while financial market volatility increased with the yuan’s recent devaluation and sharp stock market losses. The China Securities Regulatory Commission announced on January 7 that the country would suspend its new circuit breaker system and implement measures to stabilize the markets, including restricting the stock sales by listed companies’ large shareholders to 1.0 percent of the company’s share capital. Manufacturing PMI (base=50, Caixin) 49.4 (Jun 2015) → 47.8 (Jul) → 47.3 (Aug) → 47.2 (Sep) → 48.3 (Oct) → 48.6 (Nov) → 48.2 (Dec) Services PMI (base=50, Caixin) 51.8 (Jun 2015) → 53.8 (Jul) → 51.5 (Aug) → 50.5 (Sep) → 52.0 (Oct) → 51.2 (Nov) → 50.2 (Dec)

China’s GDP growth and fixed asset investment 16

Source: China National Bureau of Statistics

(%)

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

GDP (y-o-y, left)

The Green Book : Current Economic Trends

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

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

(Percentage change from same period in previous year)

2012 2013 2014 Annual Annual Q41 Annual Q3 7.7 7.7 7.7 7.3 7.3

Real GDP Industrial production

10.0

9.7

10.0

8.3

Fixed asset investment (accumulated) Retail sales

20.6 14.3

19.6 13.1

19.6 13.5

15.7 12.0

Exports

8.4

8.6

7.5

Consumer prices1 Producer prices1

2.7 -1.7

2.6 -1.9

2.9 -1.4

8.0

Q4 7.3

Q1 7.0

Q2 7.0

Q3 6.9

7.6

6.4

6.3

5.9

2015 Sep Oct 5.7

Nov -

5.6

Dec -

6.2

16.1 15.7 13.5 11.4 10.3 10.3 10.2 10.2 11.9 11.7 10.6 10.2 10.7 10.9 11.0 11.2

5.5

13.0

8.6

4.7

-2.1

-5.9

-3.7

-6.9

-6.8

2.0 -1.9

2.0 -1.3

1.5 -2.7

1.2 -4.6

1.4 -4.8

1.7 -5.7

1.6 -5.9

1.3 -5.9

1.5 1.6 -5.9 -5.9

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

Japan

Japanese third quarter growth was revised up to 0.3 percent from -0.2 percent backed by strong fixed investment, but all major economic indicators fell in November. The Japanese government decided to draw up a supplementary budget worth 3.3 trillion yen, and the Bank of Japan announced measures to bolster its quantitative easing program on December 18. Consumer prices rose 0.3 percent year-on-year in October. (Percentage change from previous period)

2012 Real GDP

1.8

2013 Q4 Annual Q1 1.6 -0.2 -0.1 1.1

2014 Q2 -1.9

Q3 -0.3

Q4 0.3

Q1 1.1

Q2 -0.1

2015 Q3 Sep 0.3 -

Oct -

Nov -

Industrial production

0.2

-0.6

2.3

-3.1

-1.3

0.8

1.6

-1.4

-1.2

1.4

-1.0

Annual Annual

1.8

2.1

1.1

Retail sales

1.5

1.2

1.4

1.7

3.8

-7.2

3.9

1.0

-2.1

0.2

1.8

0.8

1.2

-2.5

Exports (y-o-y) Consumer prices (y-o-y)

-2.7 -0.0

9.5 0.4

17.4 1.4

4.8 2.7

6.6 1.5

0.1 3.6

3.2 3.3

9.1 2.6

9.0 2.3

6.7 0.5

3.7 0.1

0.5 0.0

-2.2 0.3

-3.3 0.3

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

Japanâ&#x20AC;&#x2122;s GDP growth and industrial production 6

Source: Japan's Cabinet Office, Ministry of Economy, Trade and Industry

(%)

25 20 15 10

5 0

-5 -2

-10 -15

-4

-20 -6

-25

2006.Q1

2007.Q1

GDP (q-o-q, left)

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

Industrial production (q-o-q, right)

January 2016

Eurozone

The eurozone economy has continued to steadily recover as monetary policy remains accommodative, the weak euro helps increase exports and industrial production rebounded from the previous month. Manufacturing PMI (base=50) 52.0 (Apr 2015) → 52.2 (May) → 52.5 (Jun) → 52.4 (Jul) → 52.3 (Aug) → 52.0 (Sep) → 52.3 (Oct) → 52.8 (Nov) → 53.2 (Dec) (Percentage change from previous period)

Real GDP Industrial production Retail sales Exports (y-o-y) Consumer prices (y-o-y)

2012

2013

Annual

-0.8 -2.4 -1.6 7.6 2.5

-0.3 -0.7 -0.8 1.0 1.4

0.9 0.8 1.2 2.2 0.4

2014 Q3 0.3 -0.3 0.2 2.8 0.4

2015 Q4 0.4 0.4 0.8 4.4 0.2

Q1 0.5 1.1 1.0 5.6 -0.3

Q2 0.4 -0.1 0.5 8.2 0.2

Q3 0.3 0.2 0.7 4.3 0.1

Sep -0.3 -0.2 0.7 -0.1

Oct 0.6 -0.3 0.6 0.1

Nov 0.2

Sources: Eurostat, Bloomberg

Eurozone’s GDP growth and industrial production 3

Source: Eurostat

(%)

6 4

2 0

-2 -1

-4 -6

-2

-8 -3

-10

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

GDP (q-o-q, left)

2015.Q1

Industrial production (q-o-q, right)

2. Private consumption

Private consumption in the third quarter of 2015 (preliminary GDP) grew 1.2 percent compared to the previous quarter and rose 2.1 percent compared to a year ago. (Percentage change from previous period)

Annual

Private consumption² (y-o-y)

1.9 -

Q1 -0.1 1.6

2013 Q2 0.5 1.9

Q3 1.1 1.9

Q4 0.6 2.2

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

The Green Book : Current Economic Trends

Annual

1.8 -

Q1 0.4 2.6

2014 Q2 -0.4 1.7

Q3 0.8 1.5

Q4¹ 0.5 1.4

Q1¹ 0.6 1.5

2015 Q2¹ -0.2 1.7

Q3¹ 1.2 2.1

Private consumption 12 10

Source: Bank of Korea (national accounts)

(%)

8 6 4 2 0 -2 -4 -6 2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

Private consumption (q-o-q)

2015.Q1

Private consumption (y-o-y)

Retail sales in November fell 1.1 percent month-on-month as sales of durable goods (down 0.3%), such as appliances, semi-durable goods (down 3.5%), such as clothing, and nondurable goods (down 0.5%), such as fuel, all decreased. The index rose 5.5 percent compared to the same period of the previous year as sales of durable goods (up 13.9%), semi-durable goods (up 2.1%) and nondurable goods (up 2.3%) all increased.

Retail sales 20

Source: Statistics Korea (industrial activity trends)

(%)

15 10 5 0 -5 -10 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

Retail sales (m-o-m)

Retail sales (y-o-y)

(Percentage change from previous period)

Annual

Retail sales (y-o-y) - Durable goods2 · Automobiles - Semi-durable goods3 - Nondurable goods4

0.7 0.3 2.1 2.1 0.4

2013 Q3 0.8 0.5 -0.3 2.1 0.7 1.5

Q4 0.4 1.1 0.2 -2.1 -0.4 0.8

Annual

1.7 5.1 16.6 -0.6 0.8

Q1 0.2 2.4 3.8 9.8 -1.4 -0.9

2014 Q2 -0.2 0.8 -0.2 5.3 -1.1 0.2

Q3 1.3 1.5 1.8 1.2 4.8 -0.7

Q4 0.4 1.9 1.3 6.3 -1.8 1.0

Q1 0.5 1.6 5.2 3.9 -3.5 -0.5

Q2 0.6 2.9 -0.4 3.9 -0.1 1.5

2015 Q3¹ 1.1 3.1 0.4 1.5 1.1 1.5

Oct¹ 3.2 8.4 8.3 3.2 8.1 -1.6

Nov¹ -1.1 5.5 -0.3 6.9 -3.5 -0.5

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

January 2016

Retail sales by type 50

Source: Statistics Korea (industrial activity trends)

(y-o-y, %)

40 30 20 10 0 -10 -20 -30 2006.1

2007.1

2008.1

2009.1

2010.1

Durable goods

2011.1

2012.1

2013.1

2014.1

2015.1

Nondurable goods

Semi-durable goods

In December, domestic sales of cars and credit card use increased year-on-year, while sales at department stores and large discount stores decreased. (percentage change from same preriod in previous year)

2015 May

Jun

Jul

Aug

Sep

Oct

Nov

Credit card use

7.1

8.6

14.5

10.3

14.8

13.1

9.8

Dec 8.5

Department store sales

7.8

-6.0

5.7

1.2

14.1

17.4

4.1

-3.8

Large discount store sales

4.4

-4.4

2.5

-4.8

10.0

1.6

-0.6

-2.1

Domestic sales of gasoline and diesel

3.3

1.0

0.7

10.8

10.4

10.0

4.8

2.4

Domestic sales of cars

-0.2

9.4

3.5

14.9

15.5

22.7

16.3

17.7

Sources: Credit Finance Association of Korea, Korea National Oil Corporation, Korea Automobile Manufacturers Association, data provided by retail industries

3. Facility investment

Facility investment (preliminary GDP) rose 1.8 percent quarter-on-quarter and 6.6 percent year-on-year in the third quarter of 2015. (Percentage change from previous period)

2013 Facility investment² (y-o-y) - Machinery - Transportation equipment

Annual

-0.8

5.8

Q3 0.2

Q4 4.0

Q1¹ 0.2

2015 Q2¹ 0.5

Q3¹ 1.8

7.2

7.7

4.2

5.8

5.0

6.6

-2.3 3.1

5.0 7.7

-3.4 3.7

0.4 3.6

2.0 -3.8

5.6 0.4

-0.7 2.4

-3.9 10.6

2.3 0.9

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

Q1 -1.4

2014 Q2 1.3

The Green Book : Current Economic Trends

Facility investment 40

Source: Bank of Korea (national accounts)

(%)

30 20 10 0 -10 -20 -30 2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

Facility investment (q-o-q)

2014.Q1

2015.Q1

Facility investment (y-o-y)

The facility investment index in November fell 6.0 percent month-on-month as both machinery investment and transportation equipment investment decreased. The index fell 5.4 percent year-on-year.

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

(y-o-y, %)

40 30 20 10 0 -10 -20 -30 2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

Transportation equipment

Machinery

(Percentage change from previous period)

2013 Annual Annual

Facility investment index (y-o-y) - Machinery - Transportation equipment

-0.8 -2.1 2.8

5.2 3.9 8.8

Q1 -4.0 7.5 -6.1 1.6

2014 Q2 1.7 6.7 0.9 3.6

Q3 -0.9 1.5 -0.8 -1.4

Q4 8.6 5.4 11.7 1.5

Q1 -1.6 8.4 -1.3 -2.4

Q2 -1.5 5.2 -5.8 10.2

2015 Q3 4.7 10.0 1.4 12.6

Oct1 -0.7 12.5 2.5 -7.8

Nov1 -6.0 -5.4 -1.8 -14.4

1. Preliminary Source: Statistics Korea

Facility investment outlooks are mixed as machinery orders and the average manufacturing operation ratio dropped in November while aircraft and vessel imports have been strong.

January 2016

Business survey index for manufacturing sector (prospects, Bank of Korea) 80 (Apr 2015) → 82 (May) → 76 (Jun) → 67 (Jul) → 70 (Aug) → 71 (Sep) → 70 (Oct) → 70 (Nov) → 69 (Dec) → 68 (Jan 2016) Aircraft and vessel imports (US $ million, Korea Customs Service) 510 (Aug 2015) → 850 (Sep) → 870 (Oct) → 420 (Nov) → 500 (Dec)

Leading indicators of facility investment Sources: Statistics Korea (machinery orders), Korea International Trade Association (machinery imports) 10

(trillion won)

(y-o-y, %)

40 30

10 0

-10

-20 -30

-40

-50

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

Machinery orders (left)

2015.Q1

Machinery imports (right)

(Percentage change from same period in previous year)

2013 Annual Annual

2014 Q2

2015 Q3

Oct¹

Nov¹

49.4

-6.3

-2.6

15.7

-26.6

6.3

-15.0

45.2 -26.0

6.2

1.4

-13.1

6.7

-7.2

-45.0 418.5 -27.6

-66.9

61.7

-85.3

-51.8

-46.7

Domestic machinery orders

6.6

14.8

18.5

4.0

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

-2.0

-11.3

- Public

20.5

94.2

184.6

- Private

5.1

4.8

4.7

9.1

7.7

-2.0

12.0

13.2

5.3

13.4

-7.7

Machinery imports

1.1

5.8

2.5

11.9

1.7

7.0

8.5

-1.1

2.3

9.0

-16.7

Average manufacturing operation ratio

76.5

76.1

77.1

76.1

76.0

75.1

74.4

74.2

74.7

73.9

72.7

Facility investment adjustment pressure²

-0.9

-1.5

-0.7

-1.1

-0.5

-3.5

-2.5

-2.7

-1.1

1.3

-1.0

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

4. Construction investment

Construction investment in the third quarter of 2015 (preliminary GDP) rose 5.0 percent quarter-onquarter and 5.7 percent year-on-year.

The Green Book : Current Economic Trends

(Percentage change from previous period)

2013 Annual

Annual

5.5 11.2 -2.5

1.0 4.4 -4.4

Construction investment² (y-o-y) - Building construction - Civil engineering works

Q1 5.3 4.1 3.2 8.9

2014 Q2 0.5 0.2 3.1 -3.8

Q3 0.9 2.3 2.4 -1.8

Q4 -7.8 -1.5 -7.3 -8.8

2015 Q2¹ 1.6 1.6 4.6 -3.6

Q1¹ 7.4 0.6 4.5 12.7

Q3¹ 5.0 5.7 7.5 0.1

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

Construction investment 20

Source: Bank of Korea (national accounts)

(%)

-5

-10 2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

Construction investment (q-o-q)

2014.Q1

2015.Q1

Construction investment (y-o-y)

The value of construction completed (constant) in November fell 0.8 percent month-on-month as both building construction and civil engineering works declined. The index rose 5.7 percent year-on-year.

Construction investment by type Source: Bank of Korea (national accounts) 40

(y-o-y, %)

30 20 10 0 -10 -20 -30 2006.Q1

2007.Q1

Building construction

2008.Q1

2009.Q1

2010.Q1

2011.Q1

Residential buildings

2012.Q1

2013.Q1

2014.Q1

2015.Q1

Civil engineering works

January 2016

(Percentage change from previous period)

2013 Annual Annual Construction completed (constant) 10.2 -0.8 (y-o-y) - Building construction 15.1 7.8 - Civil engineering works 4.4 -12.3

Q1 1.0 6.6 4.8 -4.6

2014 Q2 -0.4 0.1 2.0 -4.1

Q3 -2.7 -1.9 -3.8 -0.8

Q4 -3.9 -5.9 -3.7 -4.2

Q1 4.8 -2.0 5.0 4.5

2015 Q3 7.5 5.9 10.6 2.2

Q2 -2.7 -3.9 -1.5 -4.7

Oct1 -7.3 4.3 -1.7 -17.2

Nov1 -0.8 5.7 -0.1 -2.4

1. Preliminary Source: Statistics Korea

Construction investment is projected to increase as shipments of intermediate goods and construction orders have been strong. New apartment supply (thousands, Real Estate 114) 31¹ (H1 2015) → 46¹ (Q3) → 58 (Oct) → 74 (Nov) → 59 (Dec) 1. Monthly average

Domestic shipments of cement (million tons) 4.33 (May 2015) → 4.60 (Jun) → 4.08 (Jul) → 3.97 (Aug) → 4.03 (Sep) → 4.38 (Oct) → 4.18 (Nov) → 4.61 (Dec)

Leading indicators of construction investment Sources: Statistics Korea (construction orders), Ministry of Land, Infrastructure and Transport (building permit area) 300

(y-o-y, %)

250 200 150 100 50 0 -50 -100 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Construction orders

2015.1

Building permit area

(Percentage change from same period in previous year)

Construction orders (current value) (q-o-q, m-o-m) - Building construction - Civil engineering works Building permits²

2013 Annual -12.9 -10.2 -18.2 -7.3

Annual 15.3 24.5 -4.4 11.2

Q1 15.5 -5.1 11.2 24.0 18.4

1. Preliminary 2. Floor area Sources: Statistics Korea, Ministry of Land, Infrastructure and Transport

The Green Book : Current Economic Trends

2014 Q2 25.4 12.4 45.6 -11.5 21.6

Q3 42.8 22.0 61.8 -6.2 14.7

Q4 -7.5 -29.0 -5.0 -13.1 -4.6

Q1 55.4 50.9 87.7 -1.5 11.0

Q2 50.0 13.4 49.9 50.0 25.1

2015 Q3 50.9 19.4 41.6 92.2 57.0

Oct1 Nov1 30.3 104.0 -50.4 20.1 41.8 112.3 -5.9 85.1 40.9 47.3

5. Exports and imports

Exports in December 2015 declined 13.8 percent (preliminary) year-on-year to US $42.64 billion. Exports fell at a faster pace in December compared with the previous month, down from a 4.8 percent fall to a 13.8 percent fall, due to a high base effect from a year ago (up US $3 billion, m-o-m) and a month-on-month decrease in vessel exports (US $5.6 billion → US $2.5 billion). Export growth excluding vessels (y-o-y, %) -12.1 (Aug 2015) → -7.5 (Sep) → -11.6 (Oct) → -12.2 (Nov) → -12.0 (Dec)

Most major exports declined excluding mobile phones. By region, shipments to all regions excluding the EU fell in December. Export growth by item (y-o-y, %) 7.6 (mobile phones), -8.8 (automobiles), -14.7 (petrochemicals), -17.1 (semiconductors), -23.3 (steel), -25.6 (oil products), -35.1 (vessels) Export growth by region (y-o-y, %) -4.7 (US), -7.6 (EU), -11.1 (ASEAN countries), -13.1 (Japan), -14.9 (Middle East), -16.7 (China), -35.3 (Latin America)

Average daily exports, an indicator adjusted to days worked, fell to US $1.78 billion in December. Average daily export growth (US $ billion) 1.92 (Jan 2015) → 2.18 (Feb) → 1.95 (Mar) → 1.93 (Apr) → 2.06 (May) → 1.98 (Jun) → 1.83 (Jul) → 1.78 (Aug) → 2.02 (Sep) → 1.89 (Oct) → 1.93 (Nov) → 1.78 (Dec)

Exports by item 160 140

Sources: Korea Customs Service, Ministry of Trade, Industry and Energy (export and import trends)

(y-o-y, %)

120 100 80 60 40 20 0 -20 -40 -60 -80 2006.1

2007.1

Export growth rate

2008.1

2009.1

2010.1

Semiconductors

2011.1

2012.1

2013.1

2014.1

2015.1

Automobiles

Steel

January 2016

(US $ billion)

2013

2014 Q3 Q4 559.63 572.66 141.76 147.70 2.1 2.3 3.6 0.9 2.05 2.11 2.07 2.13

2015 Dec Annual¹ Q1 Q2 Q3 Q41 49.46 527.16 133.41 135.11 128.24 130.39 3.1 -7.9 -3.0 -7.2 -9.5 -11.7 2.06 1.93 2.01 1.99 1.87 1.86

Annual Annual

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

Nov 44.38 -4.8 1.93

Dec1 42.64 -13.8 1.78

1. Preliminary Source: Korea Customs Service

Imports in December fell 19.2 percent (preliminary) year-on-year to US $35.48 billion. Imports fell faster compared with the previous month despite strong consumer goods, down from -17.6 percent to -19.2 percent, as oil prices continued to fall and capital goods imports decreased. Import growth by category (Nov → Dec, y-o-y, %) -30.1 → -26.8 (commodities), -3.6 → -15.8 (capital goods), 3.0 → 4.0 (consumer goods) (US $ billion)

2013

2014 2015 Q3 Q4 Dec Annual¹ Q1 Q2 Q3 Q41 Nov 515.59 525.51 132.84 129.35 43.91 436.80 111.80 110.50 108.21 106.30 34.06 -0.8 1.9 5.4 -2.8 -1.0 -16.9 -15.5 -15.6 -18.5 -17.8 -17.6 1.89 1.94 1.94 1.86 1.83 1.60 1.68 1.62 1.58 1.52 1.48

Annual Annual

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

Dec1 35.48 -19.2 1.48

1. Preliminary Source: Korea Customs Service

Imports by category 100 80

Sources: Korea Customs Service, Ministry of Trade, Industry and Energy (export and import trends)

(y-o-y, %)

60 40 20 0 -20 -40 -60 -80 2006.1

2007.1

2008.1

2009.1

2010.1

Import growth rate

2011.1

2012.1

2013.1

2014.1

2015.1

Commodities

Capital goods

(US $ billion)

2013 Trade balance

2014

2015

Annual Annual

Dec

Annual¹

Q41

Nov

Dec1

44.05

8.92

18.35

5.55

90.35

21.61

24.62

20.03

24.09

10.32

7.16

47.15

1. Preliminary Source: Korea Customs Service

The Green Book : Current Economic Trends

Exports and imports

Sources: Korea Customs Service, Ministry of Trade, Industry and Energy (export and import trends)

60 (US $ billion) 50

-10 2006.1

2007.1

2008.1

2009.1

2010.1

Trade balance

2011.1

2012.1

2013.1

2014.1

2015.1

Exports

Imports

The trade balance (preliminary) posted a surplus of US $7.16 billion in December, staying in the black for the 47th consecutive month. Surpluses decreased compared with the previous month.

6. Mining and manufacturing production

Mining and manufacturing production fell 2.1 percent month-on-month in November 2015 due to decreases in semiconductors and communications equipment, despite mechanical equipment and beverages being strong. Compared to the same period of the previous year, the index fell 0.3 percent.

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

(%)

40 30 20 10 0 -10 -20 -30 2006.1

2007.1

Industrial production (m-o-m)

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

Industrial production (y-o-y)

January 2016

Compared to the previous month, production of mechanical equipment (up 2.9%), beverages (up 7.0%) and clothing and furs (up 5.2%) rose, while semiconductors (down 9.7%), communications equipment (down 20.2%) and processed metals (down 4.7%) fell. Compared to a year ago, production of semiconductors (up 27.1%), chemical products (up 5.0%) and groceries (up 5.5%) rose, while mechanical equipment (down 9.0%), other transportation equipment (down 15.5%) and processed metals (down 7.9%) declined. (Percentage change from previous period)

2013

2014 Q2 -0.6

Q3 0.1

Q4 -0.9

Q1 -0.1

Q2 -0.9

2015 Q3 Oct¹ 1.6 -1.3

Nov¹ -2.1

1.2

-1.9

-0.9

-1.5

-0.2

1.7

-0.3

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

Q1 -0.3

(y-o-y)

0.7

0.0

0.7

0.5

-0.2

-0.7

0.1

-1.0

0.0

-1.0

1.5

-1.0

-2.3

0.7

0.1

0.7

0.4

1.2

-1.9

-1.0

-1.4

-0.4

2.1

-0.4

Annual Annual

Manufacturing (q-o-q, m-o-m) Mining and (y-o-y) manufacturing Shipment activity² - Domestic consumption

0.7

0.0

-0.3

-0.4

0.0

-0.6

-0.7

2.0

-1.3

-2.2

-0.8

0.3

-0.4

-0.2

-0.9

-0.8

0.5

0.9

-1.0

-0.9

- Exports

2.6

-0.4

-0.1

-0.3

0.1

1.1

-2.0

-2.1

3.2

-1.7

-3.8

Inventory³

4.4

-1.8

-0.3

0.6

0.9

-2.2

3.5

3.3

2.9

-2.3

-0.8

Manufacturing Average operation ratio (%) indicators Production capacity (y-o-y)

76.5

76.1

77.1

76.1

76.0

75.1

74.4

74.2

74.7

73.9

72.7

1.6

1.4

1.5

1.7

1.6

1.5

1.3

0.7

0.8

0.6

1. Preliminary 2. Including mining, manufacturing and electricity & gas industry 3. End-period

The manufacturing inventory-shipment ratio rose 1.8 percentage points month-on-month to 128.1 percent as inventories dropped 0.8 percent and shipments declined 2.2 percent.

Shipment and inventory 10

Source: Statistics Korea (industrial activity trends)

(m-o-m, %)

8 6 4 2 0 -2 -4 -6 -8 -10 -12 2006.1

2007.1

2008.1

2009.1

2010.1

Shipment growth

The Green Book : Current Economic Trends

2011.1

2012.1

2013.1

2014.1

2015.1

Inventory growth

Inventories of refined petroleum (up 4.4%), primary metals (up 1.1%) and electrical equipment (up 2.9%) rose, while electronic parts (down 7.5%), automobiles (down 3.9%) and mechanical equipment (down 2.5%) declined. Shipments of electronic parts (up 3.5%), mechanical equipment (up 1.3%) and clothing and furs (up 4.2%) rose, while communications equipment (down 16.2%), semiconductors (down 5.1%) and refined petroleum (down 5.3%) fell. The average operation ratio of the manufacturing sector fell 1.2 percentage points month-on-month to 72.7 percent.

Average manufacturing operation ratio 100

Source: Statistics Korea (industrial activity trends)

(%)

50 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

Mining and manufacturing production is expected to recover in December as domestic car sales are strong and regular maintenance in oil refineries has completed. However, mining and manufacturing may fail to rebound due to weak exports and external factors.

7. Service sector activity

Service output in November 2015 rose 0.1 percent month-on-month and 3.1 percent year-on-year.

Financial & insurance services (up 3.2%, m-o-m), healthcare & social welfare services (up 2.1%, m-o-m) and professional, scientific & technical services (up 1.1%, m-o-m) drove the service output to rise month-on-month for the fifth consecutive month.

Meanwhile, real estate & renting (down 1.6%, m-o-m) and education services (down 1.4%, m-o-m) have been fluctuating monthly.

January 2016

Service sector activity 20

Source: Statistics Korea (industrial activity trends)

(%)

15 10 5 0 -5 -10 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Service sector activity (m-o-m)

2015.1

Service sector activity (y-o-y)

(Percentage change from previous period)

Weight Service activity index - Wholesale & retail - Transportation services - Hotels & restaurants - Publishing & communications services - Financial & insurance services - Real estate & renting - Professional, scientific & technical services - Business services - Education services - Healthcare & social welfare services - Entertainment, cultural & sports services - Membership organizations & personal services - Sewerage & waste management

100.0 21.6 8.5 7.2 8.4 14.7 5.3 5.6 3.3 10.9 7.5 2.9 3.6 0.6

2013

2014 Q2 0.7 0.1 -0.4 -0.5 0.8 0.7 0.2 -1.5 -1.2 0.9 2.5 1.2 0.2 4.4 0.1 2.6 1.5 -0.6 1.6 -1.9 1.4 1.0 0.0 -4.7 1.1 -1.0 0.2 -1.4

Annual Q4 Annual Q1

1.5 0.1 1.0 0.5 2.2 0.5 2.5 3.3 2.1 0.8 5.2 -0.7 6.1 -0.4

0.8 0.8 -0.3 0.9 3.0 0.5 2.7 0.4 0.4 0.3 1.7 -0.4 -1.0 1.2

2.2 -0.2 1.7 1.2 1.8 5.2 6.2 2.3 2.4 1.3 6.3 -1.1 -0.6 1.0

Q3 0.9 0.1 0.6 2.6 -0.2 2.1 0.0 -1.1 0.3 1.1 1.4 6.1 0.5 1.6

Q4 1.0 0.1 2.6 -1.2 0.1 2.9 3.6 2.0 1.0 0.0 2.7 -2.1 -3.8 1.1

Q1 0.5 0.5 0.1 -0.5 -2.7 2.7 -2.1 -2.9 1.9 0.8 2.1 2.6 1.8 1.8

Q2 -0.1 0.0 -3.2 -3.3 -0.6 1.9 7.3 -0.3 0.5 -0.8 -0.9 -4.2 2.1 3.2

2015 Q3 1.4 0.7 1.7 1.8 4.7 1.6 0.7 2.5 -0.8 0.1 1.6 1.4 0.1 6.1

Oct1 0.4 2.1 0.7 0.1 -1.6 -0.6 2.1 -4.3 1.7 2.8 -0.9 2.9 -3.6 -9.1

Nov1 0.1 -1.5 -0.3 -1.2 -0.5 3.2 -1.6 1.1 0.9 -1.4 2.1 -2.7 1.3 -1.0

1. Preliminary Source: Statistics Korea

Wholesale & retail 20

Statistics Korea (industrial activity trends)

(%)

15 10 5 0 -5 -10 2006.1

2007.1

2008.1

2009.1

2010.1

Wholesale & retail (m-o-m)

The Green Book : Current Economic Trends

2011.1

2012.1

2013.1

2014.1

2015.1

Wholesale & retail (y-o-y)

November 2015 service output by business 14

Source: Statistics Korea (industrial activity trends)

(y-o-y, %)

Health & social welfare services

Financial & insurance services

10 8

Total index

Professional, scientific & technical services

Transportation services

Hotels & restaurants

2 0 -2

Wholesale & retail

-4

Publishing & communications services

-6

Real estate & renting

Education services

Business services

Membership organizations & personal services

Entertainment, cultural & sports services

Sewerage & waste management

-8 -10 -12

In December 2015, automobile sales rose at a faster pace, but the volume of average daily stock transactions dropped, which suggests a mixed outlook for December service output. Average daily stock transactions (trillion won) 7.2 (Jan 2015) → 7.5 (Feb) → 8.1 (Mar) → 10.9 (Apr) → 9.8 (May) → 10.1 (Jun) → 11.2 (Jul) → 8.9 (Aug) → 8.1 (Sep) → 8.7 (Oct) → 8.3 (Nov) → 7.1 (Dec)

8. Employment

The number of workers on payroll in November 2015 increased by 285,000 from a year earlier to 26,250,000, and the employment rate rose 0.4 percentage points to 66.3 percent. By industry, manufacturing and services continued to lead employment growth. By employment status, permanent workers continued to drive employment growth, and temporary and daily workers also kept increasing, while self-employed workers decreased.

Number of persons employed and employment growth 1,000

Source: Statistics Korea (employment trends) 27

(thousands)

800

600

400 24 200 23

-200 -400

2006.1

2007.1

2008.1

Employment growth (y-o-y, left)

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

Number of employed (seasonally adjusted, right)

January 2016

Employment rate Source: Statistics Korea (employment trends) 64

(%)

63 62 61 60 59 58 57 56 55 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Original data

2015.1

Seasonally adjusted rate

Employment by industry

Source: Statistics Korea (employment trends)

(%)

100

71.1

71.2

70.6

69.7

69.4

69.3

69.6

69.7

69.6

69.5

69.8

70.8

71.5

71.4

70.8

70.2

70.0

69.9

70.2

70.1

70.6

6.8

6.7

6.8

6.9

7.1

7.0

7.1

7.2

7.0

6.9

7.0

7.1

7.0

6.9

7.0

17.3

17.2

17.0

16.7

16.8

16.7

16.8

17.4

17.6

17.3

17.2

17.0

17.1

17.2

17.4

17.3

0 4.4 2014.1

4.5 2

5.3 3

6.1 4

6.4 5

6.5 6

6.2 7

6.2 8

6.2 9

6.2 10

5.8 11

4.2 12

3.9 4.1 2015.1 2

4.9 3

5.5 4

5.9 5

5.9 6

5.8 7

5.7 8

5.7 9

5.6 10

5.1 11

Services

Construction

Manufacturing

Agriculture, forestry & fisheries

Employment by status of workers Source: Statistics Korea (employment trends) 100 4.2

4.3

4.6

4.8

5.0

4.9

4.7

4.1

4.0

4.1

4.3

4.5

4.6

4.7

4.6

(%) 4.4

22.1

22.0

22.3

22.2

22.1

22.4

22.2

22.1

21.9

21.5

21.9

21.8

21.6

21.5

21.3

21.2

21.0

6.3

6.0

5.7

6.0

6.1

6.0

5.8

6.1

6.2

6.4

6.2

6.0

5.7

6.2

6.5

6.2

6.1

5.9

5.8

5.7

19.2

19.4

19.6

19.7

19.5

20.1

19.7

19.8

19.7

19.5

19.4

19.5

19.4

19.3

19.5

19.7

19.5

19.7

19.8

20.2

48.3

48.2

47.8

47.3

47.1

47.2

46.8

47.0

47.1

47.2

47.3

48.5

49.0

48.5

48.1

47.8

47.9

48.0

48.5

48.6

48.7

2014.1

2015.1

Unpaid family workers

Self-employed workers

Daily workers

The Green Book : Current Economic Trends

Temporary workers

Permanent workers

2011 2012 2013 Annual Annual Annual Annual Q1

Number of employed (millions)

2014 Q2 Q3

Nov

2015 Q3 Oct

Nov

24.24 24.68 25.07 25.60 24.91 25.79 25.93 25.77 25.97 25.27 26.10 26.24 26.30 26.25

Employment rate (%)

59.1 59.4 59.5 60.2 58.8 60.8 60.9 60.4 60.8 59.0 60.7 60.9 60.9 60.8

(Seasonally adjusted)

59.1 59.4 59.5 60.2 60.4 59.9 60.3 60.3 60.3 60.5 59.9 60.3 60.3 60.3

Employment growth (y-o-y, thousands)

415

437

386

533

729

464

517

422

438

354

308

310

348

285

(Excluding agriculture, forestry & fisheries)

440

451

394

601

717

518

638

531

523

441

435

419

472

453

- Manufacturing

146

123

136

194

129

102

139

147

164

191

190

- Construction

-2

-19

-27

-37

- Services

386

416

318

424

570

387

403

336

345

222

235

194

292

284

- Agriculture, forestry & fisheries

-25

-14

-8

-68

-54 -121 -109

-85

-87 -127 -115 -124 -168

- Wage workers

427

315

483

548

711

485

519

476

509

442

422

521

583

503

路 Permanent workers

575

436

615

443

606

478

333

355

332

355

332

505

565

496

路 Temporary workers

-78

-2

-96

140

118

226

141

146

101

174

路 Daily workers

-70 -120

-37

-35

31 -111

-40

-20

-11

121

-97

-15

-22

-3

-54

-71

124

-67

-7

-14

-49

-37 -136 -159 -152

- Male

238

234

186

266

373

228

268

196

201

141

145

111

137

- Female

177

203

200

267

357

236

249

226

238

213

163

199

211

209

- 15 to 29

-35

-36

-50

102

101

- 30 to 39

-47

-31

-21

-6

-42

-7

-29

-34

-1

-56

-60

-47

-50

- 40 to 49

-47

-15

-4

- 50 to 59

291

270

254

239

323

227

215

190

193

177

138

145

125

139

- 60 or more

149

222

181

200

218

192

201

221

192

150

174

136

110

- Nonwage workers 路 Self-employed workers

-82 -167

-88 -114 -211 -236 -218

Source: Statistics Korea

Unemployment rate 6

Source: Statistics Korea (employment trends)

(%)

2 2006.1

Original data

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

Seasonally adjusted rate

January 2016

The number of unemployed persons in November was up 11,000 year-on-year to 829,000, and the unemployment rate stayed unchanged at 3.1 percent. The unemployment rate rose in all age groups except those in their 40s and 50s.

2011 2012 2013 Annual Annual Annual Annual

2014 Q2 Q3

Nov

2015 Q3

Oct

Nov

Number of unemployed (thousands)

855

820

807

937

1,031 977

884

854

818 1,089 1,042 929

839

829

Unemployment growth (y-o-y, thousands)

-65

-35

-13

137

125 165

107

121

118

-19

- Male

-48

-26

-6

-22

- Female

-17

-9

-7

84 103

-11

Unemployment rate (%)

3.4

3.2

3.1

3.5

4.0

3.7

3.3

3.2

3.1

4.1

3.8

3.4

3.1

(Seasonally adjusted)

3.4

3.2

3.1

3.5

3.7

3.5

3.4

3.7

3.8

3.6

3.4

-15 to 29

7.6

7.5

8.0

9.0

9.8

9.4

8.6

8.3

7.9

10.3

9.9

8.4

7.4

8.1

- 30 to 39

3.4

3.0

3.1

3.2

3.4

3.0

2.8

2.6

3.1

3.3

3.0

2.9

- 40 to 49

2.1

2.0

2.2

2.3

2.4

2.1

2.2

2.4

2.5

2.3

2.0

1.8

- 50 to 59

2.1

1.9

2.2

2.3

2.1

2.2

2.6

2.4

2.0

1.8

- 60 or more

2.6

2.4

1.8

2.3

4.4

1.9

1.5

1.6

1.2

4.1

2.2

2.0

2.2

1.9

Source: Statistics Korea

The economically inactive population in November was up 197,000 from a year earlier to 16,100,000, while the labor force participation rate remained unchanged year-on-year at 62.7 percent. The number of those economically inactive due to education (down 131,000, y-o-y) and childcare (down 73,000, y-o-y) decreased, while those due to rest (up 210,000, y-o-y) increased.

Labor force participation rate

Source: Statistics Korea (employment trends)

65 (%) 64 63 62 61 60 59 58 57 2006.1

2007.1

2008.1

2009.1

2010.1

Original data

The Green Book : Current Economic Trends

2011.1

2012.1

2013.1

2014.1

2015.1

Seasonally adjusted rate

2011 2012 2013 Annual Annual Annual Annual Q1

Economically inactive population (millions)

2014 Q2 Q3

Nov

2015 Q3 Oct

Nov

15.95 16.08 16.22 15.98 16.40 15.69 15.76 16.07 15.90 16.47 15.84 15.92 16.01 16.10

Labor force participation rate (%)

61.1

61.3

61.5

62.4 61.3 63.1 63.0 62.4 62.7 61.5 63.2 63.0 62.9 62.7

(Seasonally adjusted)

61.1

61.3

61.5

62.4 62.6 62.2 62.5 62.4 62.4 62.8 62.3 62.5 62.4 62.5

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

112

128

141 -246 -433 -226 -222 -101 -113

- Childcare - Housework

-5 101

-2 123

1 -39 -29 -57 -3 -131 -230 -127

- Education

-51

-12

-81

- Old age - Rest

-45 182

148 -53

54 -7

93 81 -92 -197

-76

150

162

176

197

41 -91

50 -41

3 -19

-14 -48

-73 23

-41 -99

-31 -67

-28 -70

-68 -109

-72

-59 -141 -213 -112 -124 -131

113 -90

89 -15

99 -66

91 -65

68 154

95 151

103 123

180 127

169 210

Source: Statistics Korea

9. Financial markets 9.1 Stock market

The KOSPI fell 1.5 percent in December 2015 from 1,992 points at the end of November to wrap up the month at 1,961 points, due to the Fedâ&#x20AC;&#x2122;s rate hike, net selling by foreign investors and falling international oil prices. The KOSDAQ dropped 0.9 percent from 688 points to 682 points due to worries over Chinaâ&#x20AC;&#x2122;s economic slowdown, despite net buying by foreign investors.

Stock prices 2,200

(monthly average)

2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

KOSPI

KOSDAQ

January 2016

(Closing rate)

Nov 2015

KOSPI Dec 2015

Nov 2015

KOSDAQ Dec 2015

Change1

Stock price index (points)

1,992.0

1,961.3

-30.7 (-1.5%)

688.3

682.3

-6.0 (-0.9%)

Market capitalization (trillion won)

1,263.7

1,242.8

-20.9 (-1.7%)

199.4

201.6

2.2 (1.1%)

4.7

4.0

-0.8 (-16.2%)

3.6

3.2

-0.4 (-10.5%)

32.4

32.2

-0.2 (-0.6%)

10.1

9.9

-0.2 (-2.0%)

Average daily trade value (trillion won) Foreign stock ownership (%, %p) 1. Change from the end of the previous month Source: Korea Exchange

9.2 Exchange rate

The dollar-won exchange rate rose in December to close the month at 1,172.5 won affected by the weak yuan and heightened risk aversion among investors amid a fall in international oil prices, despite Moody’s upgrade of Korea’s sovereign rating and increased sales of dollars by exporters at the end of the year. The 100 yen-won exchange rate rose to 974.1 won as increased risk aversion pushed up the yen’s value. (Closing rate)

2009 Dec

2010 Dec

2011 Dec

2012 Dec

2013 Dec

2014 Dec

Nov

2015 Dec

Change1

Dollar-Won

1,164.5

1,134.8

1,151.8

1,070.6

1,055.4

100 Yen-Won

1,264.5

1,393.6

1,481.2

1,238.3

1,002.3

1,099.3

1,158.1

1,172.5

-1.2

913.0

943.7

974.1

-3.1

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

Foreign exchange rates 1,800

(month-end, \)

1,600

1,400

1,200

1,000

800

600 2006.1

2007.1

2008.1

2009.1

2010.1

Dollar-Won

The Green Book : Current Economic Trends

2011.1

2012.1

2013.1

2014.1

2015.1

100 Yen-Won

9.3 Bond market

3-year Treasury bond yields fell from 1.79 percent at the end of November to 1.66 percent at the end of December. Treasury bond yields dropped as investors’ appetite for safe haven assets increased amid falling international oil prices, despite a US rate hike.

Interest rates 10

Source: Bank of Korea

(monthly average, yearly, %)

9 8 7 6 5 4 3 2

1 2006.1

2007.1

2008.1

2009.1

Overnight call rate (daily)

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

3-yr Treasury bond yield

3-yr corporate bond yield

(Closing rate, %)

Call rate (1 day) CD (91 days) Treasury bonds (3 yrs) Corporate bonds (3 yrs) Treasury bonds (5 yrs)

2009 Dec 2.01 2.88 4.44 5.56 4.98

2010 Dec 2.51 2.80 3.38 4.27 4.08

2011 Dec 3.29 3.55 3.34 4.21 3.46

2012 Dec 2.77 2.89 2.82 3.29 2.97

2013 Dec 2.52 2.66 2.86 3.29 3.23

2014 Dec 2.03 2.13 2.10 2.43 2.28

2015 Oct 1.50 1.57 1.66 2.00 1.79

Nov 1.50 1.66 1.79 2.17 1.96

Dec 1.52 1.67 1.66 2.11 1.81

Change1 2 1 -13 -6 -15

1. Basis point, changes from the previous month

9.4 Money supply & money market

M2 (monthly average) in October 2015 rose 8.8 percent from a year earlier. Private sector credit expanded, despite a contraction in the corporate bond market, backed by increased bank lending, and money supply from the overseas sector also increased due to the current account surplus. (Percentage change from same period in previous year, average)

M1² M2 Lf³

2009

2010

2011

2012

2013

2014

Annual

16.3 10.3 7.9

11.8 8.7 8.2

6.6 4.2 5.3

3.8 5.2 7.8

9.5 4.8 6.9

10.9 6.6 7.0

2015 Aug 21.3 9.2 10.5

Sep 21.4 9.6 10.4

Oct 21.2 8.8 10.1

Oct1 676.7 2,232.4 3,058.1

1. Balance at end October 2015, trillion won 2. M1 excluding corporate MMFs and individual MMFs while including CMAs 3. Liquidity aggregates of financial institutions (mostly identical with M3)

January 2016

Total money supply Source: Bank of Korea 40

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

-10 -20 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

Reserve money

2012.1

2013.1

2014.1

2015.1

Bank deposits in November rose at a slower pace than the previous month, as time deposits decreased 1.3 trillion won after increasing 8.9 trillion won in the previous month, due to fund withdrawals by local governments for year-end fiscal spending. Asset management company (AMC) deposits fell from the previous month due to weak stock prices as well as less attractive MMF yields amid rising short-term interest rates.

Deposits in financial institutions 60

Source: Bank of Korea

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

50 40 30 20 10 0 -10 -20 -30 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

(Change from the end of the previous period, trillion won)

Bank deposits AMC deposits

2009

2010

2011

2012

2013

Annual

54.8 -27.6

36.9 -16.7

58.9 -16.6

37.0 18.8

41.0 17.7

115.4 47.0

1. Balance at end November 2015

The Green Book : Current Economic Trends

2014

2015 Dec 52.0 -8.7

Sep 14.4 -7.5

Oct 11.9 6.4

Nov 5.4 -3.8

Nov1 1,370.4 426.6

10. Balance of payments

Korea’s current account (preliminary) in November 2015 posted a surplus of US $9.40 billion, staying in the black for 45 consecutive months, and surpluses reached US $97.99 billion in the Jan-Nov period. The goods account surplus fell to US $9.98 billion in November from US $10.61 billion in the previous month, despite weak imports, as exports excluding vessels were down month-on-month from US $41.7 billion to US $38.8 billion. vessels were excluded due to differences in time between when deliveries are reported and payments are made. Goods exports (US $ billion) 47.30 (Oct 2015) → 43.43 (Nov) Goods imports (US $ billion) 36.69 (Oct 2015) → 33.45 (Nov) Export growth by item (y-o-y, %, customs clearance basis) -4.8 (total), 7.6 (mobile phones), -8.8 (automobiles), -17.1 (semiconductors), -23.3 (steel), -25.6 (oil products) Import growth by category (y-o-y, %, customs clearance basis) -17.6 (total), -30.1 (commodities), -3.6 (capital goods), 3.0 (consumer goods)

Current account balance 15

Source: Bank of Korea (balance of payments trends)

(US $ billion)

-5 2006.1

2007.1

Goods account

2008.1

2009.1

2010.1

2011.1

Services account

2012.1

2013.1

2014.1

2015.1

Current account

The services account deficit edged down from US $1.70 billion to US $1.28 billion due to decreased deficits in the travel account and the intellectual property rights account. Services account (US $ billion, Oct → Nov) -0.45 → -0.55 (manufacturing), 0.26 → 0.20 (transportation), -0.85 → -0.72 (travel), 0.83 → 0.77 (construction), -0.68 → -0.01 (intellectual property rights), -0.92 → -0.88 (other businesses)

January 2016

Travel balance 4

Source: Bank of Korea (balance of payments trends)

(US $ billion)

3 2 1 -1 -2 -3 2006.1

2007.1

2008.1

2009.1

2010.1

Travel balance

2011.1

2012.1

2013.1

2014.1

Travel revenue

2015.1

Travel payment

The primary income account surplus inched up from US $0.59 billion to US $0.89 billion due to a rise in dividend income. The secondary income account deficit dropped from US $0.38 billion to US $0.19 billion. (US $ billion)

2013 Current account

81.15

2014 2015 Q2 Q3 Q4 Nov Q1 Q2 Q3 Oct 84.37 24.11 20.66 26.45 10.76 22.44 27.92 29.11 9.12

- Goods balance - Services balance

82.78 -6.50

88.89 25.18 20.98 25.14 -4.02 -0.08 -0.54 -0.40

- Primary income balance - Secondary income balance

9.06 -4.19

4.49 -4.98

Annual Annual

0.69 -1.67

1.48 -1.25

Nov1 Jan-Nov1 9.40 97.99

9.59 24.22 33.68 30.64 10.61 9.98 109.12 0.06 -4.39 -3.09 -3.56 -1.70 -1.28 -14.02

2.95 1.22 -1.24 -0.12

3.83 -1.22

-1.56 2.73 -1.11 -0.70

0.59 0.89 -0.38 -0.19

6.49 -3.59

1. Preliminary Source: Bank of Korea

The capital and financial account (preliminary) in November posted a net outflow of US $8.68 billion. Capital & financial account balance (US $ billion) -9.81 (Apr 2015) → -8.56 (May) → -10.33 (Jun) → -10.05 (Jul) → -9.05 (Aug) → -10.54 (Sep) → -11.10 (Oct) → 8.68 (Nov)

FDI net outflows declined month-on-month from US $3.50 billion to US $0.90 billion. Net outflows of portfolio investment fell from US $7.10 billion to US $5.13 billion as Korean investment in overseas shares decreased. Net inflows of derivatives investment shrank from US $0.81 billion to US $0.61 billion, while other investment reversed its course, going from net inflows of US $0.93 billion to net outflows of US $1.66 billion, as net inflows of deposits shifted to net outflows and domestic financial institutions increased their loan repayments. The current account surplus is expected to decrease month-on-month in December as net exports were down to US $7.16 billion.

The Green Book : Current Economic Trends

Capital & financial account balance 15

Source: Bank of Korea (balance of payments trends)

(US $ billion)

-5

-10

-15 2006.1

2007.1

2008.1

2009.1

Direct investment

2010.1

2011.1

Portfolio investment

2012.1

2013.1

2014.1

2015.1

Financial derivatives

Capital & financial account

11. Prices

11.1 Consumer prices

Consumer prices rose 1.3 percent year-on-year in December 2015, a faster pace than 1.0 percent of the previous month.

Consumer price inflation 7

Source: Statistics Korea (consumer price trends)

(%)

6 5 4 3 2 1 0 -1 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Consumer price inflation (m-o-m)

2015.1

Consumer price inflation (y-o-y)

Consumer price inflation Month-on-Month Year-on-Year

Apr 0.4 0.1

(%)

May 0.5 0.3

Jun 0.7 0.0

Jul 0.7 0.2

2015 Aug 0.7 0.2

Sep 0.6 -0.2

Oct 0.9 0.0

Nov 1.0 -0.1

Dec 1.3 0.3

Source: Statistics Korea

January 2016

Contribution to consumer price inflation 5

Source: Statistics Korea (consumer price trends)

(%p)

-1 2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Agricultural, livestock & fishery products

Manufactured products

Housing rents

Public services

Personal services

Public utilities

The year-on-year price decrease of oil products slowed to 15.6 percent from 17.5 percent a month ago, due to a low base effect from a year ago when the price dropped 3.9 percent month-on-month. Agricultural product prices increased at a faster pace led by vegetables, due to frequent rain and a shortage of sunshine.

Consumer price inflation in major sectors Total Nov (y-o-y, %) Dec (y-o-y, %) - Contribution (%p)

1.0 1.3 -

Manufactured Agricultural, livestock Oil products & fishery products products 0.0 -17.5 1.7 0.4 -15.6 2.9 0.14 -0.73 0.21

Public utilities -7.1 -7.1 -0.37

Public services 2.0 2.0 0.29

Personal services 2.1 2.3 0.73

Housing rents 2.8 2.9 0.28

Core inflation stayed in the 2 percent range. Consumer prices excluding oil and agricultural products rose 2.4 percent year-on-year, and consumer prices excluding food and energy were up 2.8 percent.

Prices 16

Source: Statistics Korea (consumer price trends)

(y-o-y, %)

-4

-8 2006.1

2007.1

Consumer price inflation

2008.1

2009.1

2010.1

2011.1

Core inflation

The Green Book : Current Economic Trends

2012.1

2013.1

2014.1

2015.1

Producer price inflation

(percentage change from same period in previous year)

Consumer prices excluding oil and agricultural products

Apr 2.0

May 2.1

Jun 2.0

Jul 2.0

2015 Aug 2.1

Sep 2.1

Oct 2.3

Nov 2.4

Dec 2.4

Consumer prices excluding food and energy

2.3

2.2

2.5

2.6

2.7

2.8

Source: Statistics Korea

The expected annual inflation stayed in the mid-2 percent range. Expected inflation (%, Bank of Korea) 2.5 (Apr 2015) → 2.5 (May) → 2.5 (Jun) → 2.6 (Jul) → 2.5 (Aug) → 2.5 (Sep) → 2.5 (Oct) → 2.5 (Nov) → 2.5 (Dec)

11.2 International oil and commodity prices

International oil prices fell in December as demand for heating oil decreased amid the continued global oil supply glut and OPEC member countries are expected to keep increasing oil production.

Dubai crude prices fell to the lowest level since December 2004 (US $34.3 per barrel) due to warm weather, US rate hikes, and OPEC member countries’ failure to agree on cutting output. Dubai crude (US $/barrel) 39.4 (1st week Dec) → 36.9 (2nd week) → 33.7 (3rd week) → 32.2 (4th week) → 32.4 (5th week)

International oil prices 160

Source: Korea National Oil Corporation

(US $/B)

140 120 100 80 60 40 20 0 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

Dubai crude

WTI

(US $/barrel, period average)

2013 Dubai crude Brent crude WTI crude

Annual

105.2 108.7 98.0

96.6 99.1 93.1

Q1 104.4 108.1 98.7

2014 Q2 106.1 109.7 103.0

Q3 101.6 102.7 97.2

Q4 74.6 76.7 73.4

Q1 51.9 55.1 48.6

Q2 60.5 63.5 58.0

2015 Q3 49.9 51.3 46.5

Nov 41.6 45.9 42.9

Dec 34.9 38.9 37.3

Source: Korea PDS

January 2016

Domestic gasoline prices continued to fall amid decreasing international gasoline prices. Domestic gasoline prices (won/liter) 1,456.7 (1st week Dec) → 1,448.1 (2nd week) → 1,434.8 (3rd week) → 1,421.7 (4th week) → 1,411.7 (5th week) International gasoline prices (US $/barrel) 55.2 (3rd week Nov) → 55.8 (4th week) → 54.8 (1st week Dec) → 52.8 (2nd week) → 52.9 (3rd week) Dollar-won exchange rate (won) 1,168.2 (3rd week Nov) → 1,152.2 (4th week) → 1,158.6 (1st week Dec) → 1,171.0 (2nd week) → 1,181.2 (3rd week)

(Won/liter, period average)

2013

Gasoline prices

2014 2015 Annual Annual Q1 Q2 Q3 Q4 Q1 Q2 Q3 Nov Dec 1,924.5 1,827.6 1,882.7 1,868.9 1,837.8 1,721.1 1,485.4 1,543.2 1,544.0 1,473.6 1,432.9

Diesel prices

1,729.6 1,637.0 1,699.9 1,680.0 1,641.4 1,526.7 1,312.6 1,344.2 1,308.7 1,235.0 1,211.0

Source: Korea National Oil Corporation

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

160 (thousand won/B)

(US $/B)

140

120

100

40 20

20 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

Dubai crude (import prices, won, left)

2014.1

2015.1

Dubai international prices (dollar, right)

Corn and soybean prices were up amid expectations of a demand increase as the US Environmental Protection Agency (EPA) raised the required amount of biofuel use for 2016 from 17.4 billion gallons proposed on May 2015 to 18.1 billion gallons. International wheat prices decreased amid concerns over a supply glut as Argentina announced its plan to scrap or cut export taxes on wheat and other agricultural products. International grain price increases in December (monthly average, m-o-m, %) 0.8 (corn), -4.1 (wheat), 1.3 (soybean)

The Green Book : Current Economic Trends

International commodity prices

Sources: Bloomberg (CRB), 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. 4,000

470 430

3,000

390 350

2,000

310 270

1,000

230 190 150

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

CRB (left)

2015.1

Reuters index (right)

Prices of copper, zinc and tin continued to fall due to a supply glut, while aluminum prices rose as major smelters such as China Hongqiao announced their plans to slash aluminum production. Nonferrous metal price increases in December (monthly average, m-o-m, %) 2.0 (aluminum), -3.7 (copper), -3.8 (zinc), -0.3 (tin) (Period average)

2013 Annual Annual 1

Reuters Index (sep 18,1931=100)

2,774

2,523

2014 Q2

2,600

2,608

2,491

2,397

2,368

2015 Q3

Nov

Dec

2,394

2,287

2,285

2,243

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

12. Real estate market 12.1 Housing market

Apartment prices rose 0.2 percent month-on-month nationwide in December 2015. Apartment prices were up 0.2 percent in the Seoul metropolitan area, which includes Seoul (up 0.3%), Gyeonggi Province (up 0.1%) and Incheon (up 0.1%). Apartment prices rose 0.1 percent in areas excluding the Seoul metropolitan area, which include the five metropolitan cities (up 0.1%) and the eight provinces (up 0.1%). Apartment price increases in five metropolitan cities (m-o-m, %) Busan (0.2), Daegu (0.0), Gwangju (0.2), Daejeon (0.0), Ulsan (0.2)

January 2016

Apartment sales prices by region

Source: Korea Appraisal Board

-1 2009.1

2010.1

2011.1

Nationwide

2012.1

2013.1

2014.1

Seoul metropolitan area

2015.1

Areas excluding Seoul metropolitan area

apartment prices

(Percentage change from previous period)

2010

2011

2012

2013

2014

Annual Annual Annual Annual Annual Dec Annual

Nationwide Seoul metropolitan area Seoul Gangnam¹ Gangbuk² Areas excluding the Seoul metropolitan area

1.9 -1.7 -1.2 -1.0 -1.4

6.9 0.5 0.3 0.3 0.3

0.0 -3.0 -2.9 -3.5 -2.3

0.3 -1.1 -1.4 -1.1 -1.7

1.7 1.5 1.1 1.2 1.1

0.1 0.1 0.0 0.0 0.0

3.5 4.4 4.6 5.2 3.9

Jul 0.3 0.4 0.4 0.4 0.3

6.4

15.1

3.1

1.7

1.9

0.2

2.7

0.2

Aug 0.3 0.3 0.4 0.4 0.4

2015 Sep 0.3 0.4 0.4 0.5 0.4

Oct 0.3 0.4 0.5 0.5 0.5

Nov 0.3 0.4 0.5 0.5 0.4

Dec 0.2 0.2 0.3 0.3 0.3

0.2

0.3

0.2

0.3

0.1

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

Apartment rental prices rose 0.3 percent month-on-month nationwide in December. Rental prices rose 0.4 percent in the Seoul metropolitan area and 0.2 percent in regions excluding the Seoul metropolitan area. Apartment rental price increases in major districts in Seoul (m-o-m, %) Gangnam (0.5), Seocho (0.2), Songpa (0.5), Guro (1.0), Seongdong (0.9), Nowon (0.7)

apartment rental prices 2010

(Percentage change from previous period)

2011

2012

2013

2014

Annual Annual Annual Annual Annual Dec Annual

Nationwide Seoul metropolitan area Seoul Gangnam¹ Gangbuk² Areas excluding the Seoul metropolitan area

7.1 6.3 6.4 7.6 5.1

12.3 11.0 10.8 11.1 10.6

3.5 2.1 2.1 2.4 1.8

4.7 6.2 6.6 6.7 6.4

3.4 4.7 3.6 3.3 3.8

0.3 0.3 0.3 0.3 0.2

4.8 7.1 7.2 7.9 6.5

Jul 0.3 0.5 0.5 0.6 0.5

9.2

14.5

4.6

3.3

2.2

0.2

2.8

0.2

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

The Green Book : Current Economic Trends

2015 Aug Sep 0.3 0.4 0.4 0.6 0.5 0.7 0.4 0.7 0.5 0.7

Oct 0.4 0.6 0.6 0.5 0.8

Nov Dec 0.4 0.3 0.6 0.4 0.7 0.5 0.7 0.5 0.8 0.5

0.2

0.3

0.2

Apartment rental prices by region Source: Korea Appraisal Board 3

(m-o-m, %)

-1

-2 2009.1

2010.1

2001.1

2012.1

Nationwide

2013.1

2014.1

Seoul metropolitan area

2015.1

Areas excluding Seoul metropolitan area

Apartment sales transactions were down 8.0 percent from 106,274 transactions in October to 97,813 transactions in November and climbed 7.4 percent from 91,050 recorded a year ago.

Apartment sales transactions 2011

2012

2013

(Thousands)

2014 2015 Annual1 Annual1 Annual1 Annual1 Annual1 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Nationwide

2010

112 120 110 110 111

106

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

Monthly apartment transaction volume 160

Source: Ministry of Land, Infrastructure and Transport

(thousands)

140 120 100 80 60 40 20 0 2009.1

Nationwide

2010.1

2011.1

2012.1

Seoul metropolitan area

2013.1

2014.1

2015.1

Areas excluding Seoul metropolitan area

January 2016

12.2 Land market

Land prices nationwide rose 0.24 percent month-on-month in November. Land prices increased 0.20 percent in the Seoul metropolitan area, which includes Incheon (up 0.17%) and Gyeonggi Province (up 0.17%). Land price increases in Seoul metropolitan area (m-o-m, %) 0.19 (Apr 2015) → 0.17 (May) → 0.19 (Jun) → 0.20 (Jul) → 0.18 (Aug) → 0.18 (Sep) → 0.21 (Oct) → 0.20 (Nov)

Land prices increased 0.32 percent in areas excluding the Seoul metropolitan area, led by Daegu (up 0.37%), Gwangju (up 0.33%), Sejong (up 0.80%) and Jeju (up 1.97%). Land price increases in areas excluding Seoul metropolitan area (m-o-m, %) 0.21 (Apr 2015) → 0.20 (May) → 0.25 (Jun) → 0.24 (Jul) → 0.21 (Aug) → 0.22 (Sep) → 0.25 (Oct) → 0.32 (Nov)

Land prices

(Percentage change from previous period)

2009 2010 2011 2012 2013

2014

2015 Q4 Annual Q1 Q2 Q3 Sep Oct Nov 0.49 0.53 2.15 0.48 0.59 0.60 0.19 0.22 0.24

Annual Annual Annual Annual Annual Annual Q3

Nationwide

0.96

1.05

1.17

0.96

1.14

1.96

Seoul Gyeonggi Incheon

1.40 1.22 1.99

0.53 1.49 1.43

0.97 1.47 0.66

0.38 1.04 0.46

1.21 0.91 0.87

2.66 0.69 0.67 2.44 0.57 0.69 0.69 0.22 0.24 0.24 1.24 0.27 0.33 1.56 0.35 0.41 0.43 0.14 0.18 0.17 1.35 0.32 0.40 1.80 0.37 0.53 0.54 0.17 0.18 0.17

Source: Korea Appraisal Board

Land prices by region 15 12

Source: Korea Appraisal Board

(%)

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

1995

1996

National average

1997

1998

1999

2000

2001

2002

2003

Metropolitan city

2004

2005

2006

2007

City

2008

2009

2010

2011

2012

2013

2014

County

There were 259,000 land transactions in November, down 1.6 percent from the previous month and up 13.4 percent from a year ago (228,000).

The Green Book : Current Economic Trends

Land transactions decreased month-on-month in Seoul (down 4.9%), Daegu (down 8.6%), Daejeon (down 17.4%) and Sejong (down 43.3%). Vacant land transactions, which accounted for 37.0 percent of total land transactions, recorded 96,000 in November, up 2.5 percent month-on-month and up 18.1 percent compared with a year ago (81,000).

Land and consumer prices since 1970s 60

Source: Korea Appraisal Board

(y‐o‐y, %)

50 40 30 20 10 0 -10 -20 1974

1978

1982

1986

1990

1994

1998

2002

2006

2010

Land price inflation

Consumer price inflation

Land transactions 2010

2014

2011

(Land lots, thousands)

2012

2013

2014 2015 Annual1 Annual1 Annual1 Annual1 Annual1 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Nationwide 187 208 170 187 220 228 257 219 199 278 293 262 279 290 241 229 263 259 Seoul 16 18 13 17 22 25 23 20 21 33 36 34 33 36 29 27 31 29 Gyeonggi 41 43 33 37 46 50 53 45 43 62 66 60 65 62 56 58 63 61 Incheon 8 10 8 8 10 11 9 8 8 12 13 12 13 15 13 12 14 13 1. Monthly average Source: Korea Land & Housing Corporation

Land transaction volume 500,000

Source: Korea Appraisal Board

(thousand m²)

400,000

300,000

200,000

100,000

0 2006.1

2007.1

Seoul metropolitan area

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

Areas excluding Seoul metropolitan area

January 2016

13. Composite indices of business cycle indicators

Industrial output in November 2015 decreased 0.5 percent month-on-month and increased 2.0 percent year-on-year. Output fell month-on-month in mining & manufacturing (down 2.1%) and construction (down 0.8%), but rose in services (up 0.1%) and public administration (up 2.7%).

Index of all industry production 20

Source: Statistics Korea (industrial activity trends)

(%)

15 10 5 0 -5 -10 -15 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Index of all industry production (m-o-m)

2015.1

Index of all industry production (y-o-y)

2015 Apr -0.5 0.7

May -0.6 0.1

Jun 0.6 1.4

Jul 0.6 0.3

Aug 0.3 1.2

Sep1 2.5 4.5

Oct1 -1.3 2.5

Nov1 -0.5 2.0

Coincident composite index (2010=100) (m-o-m, %)

125.1 0.3

125.0 -0.1

125.2 0.2

125.9 0.6

126.8 0.7

128.2 1.1

129.1 0.7

129.5 0.3

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

100.3 0.0

99.8 -0.5

99.5 -0.3

99.7 0.2

100.1 0.4

100.8 0.7

101.1 0.3

101.0 -0.1

Leading composite index (2010=100) (m-o-m, %)

131.1 0.5

132.1 0.8

132.3 0.2

133.0 0.5

133.9 0.7

135.3 1.0

136.3 0.7

136.9 0.4

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

103.7 -0.1

104.0 0.3

103.6 -0.4

103.5 -0.1

103.6 0.1

104.2 0.6

104.4 0.2

104.3 -0.1

Index of all industry production (m-o-m, %) (y-o-y, %)

1. Preliminary

The cyclical indicator of the coincident composite index was down 0.1 points month-on-month to 101.0. Four components of the coincident composite index, including service output and nonfarm payroll employment, increased, while the other three components, such as mining & manufacturing production, the value of construction completed and domestic shipments, decreased.

The Green Book : Current Economic Trends

Components of the coincident composite index in November (m-o-m) service output (0.3%), retail sales (0.9%), nonfarm payroll employment (0.1%), mining & manufacturing production (-0.4%), value of construction completed (-1.1%), domestic shipments (0.0%), imports (-0.9%)

Cyclical indicator of coincident composite index 110

Source: Statistics Korea (industrial activity trends)

(points)

100

90 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

The cyclical indicator of the leading composite index fell 0.1 points month-on-month to 104.3. Five components of the leading composite index, such as the consumer expectations index and the KOSPI, were up, while four others, including the inventory circulation indicator, domestic shipments of machinery and the ratio of job openings to job seekers, were down. Components of the leading composite index in November (m-o-m) consumer expectations index (0.9p), value of construction orders received (2.4%), international commodity prices (2.2%), KOSPI (0.9%), inventory circulation indicator (-0.6%p), domestic shipments of machinery (-2.5%), ratio of export to import prices (-0.1%), ratio of job openings to job seekers (-0.7%p), spreads between long & short term interest rates (0.0%p)

Cyclical indicator of leading composite index 110

Source: Statistics Korea (industrial activity trends)

(points)

100

90 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

January 2016

Policy Issue 2016 Work Report

Government to Work on Boosting Exports and Sustaining Recovery Momentum The government has published a comprehensive report on improving Koreaâ&#x20AC;&#x2122;s economic fundamentals and balancing domestic demand and exports. The report requires the joint cooperation of the Ministry of Strategy and Finance, the Ministry of Agriculture, Food and Rural Affairs, the Ministry of Trade, Industry and Energy, the Ministry of Oceans and Fisheries, the Ministry of Land, Infrastructure and Transport, the Fair Trade Commission and the Financial Services Commission.

Summary of the general report The government will focus on balancing domestic demand and exports, promoting a creative economy and developing culture-related industries, creating jobs for young adults, and developing welfare programs to be more recipient-friendly.

1. Do its utmost to help exports rebound Effectively implement Korea-China FTA - Provide exporters with information, education and consulting services to help them make good use of the FTA - Work to remove nontariff barriers, such as inspections to which medicines are subject and Chinese government certificates required to export cosmetics regardless of whether the products have already received equivalent certificates from internationally renowned authorities - Promote investment in China: Attract 1 trillion won worth of foreign investment to the Saemangeum Korea-China Economic Cooperation Complex, and operate a 4 trillion won support program to help Korean corporations enter the Chinese market 42

Policy Issue

Strengthen support for market exploration - Help Korean corporations participate in large overseas projects - Provide the five promising consumer goods (cosmetics, groceries, clothing, daily necessaries and baby supplies) with R&D and marketing support - Encourage promising services, such as contents and healthcare, to enter overseas markets - Provide exporters of promising consumer goods and services with 4.8 trillion won worth of trade finance

Encourage exporters to become more competitive - Expand tax incentives for small- and medium-sized exporters and promote exports through online market places - Promote the development of future growth engines, including transforming major industries to become high value-added - Build industrial complexes overseas for Korean companies to use

2. Work for the economy to sustain recovery momentum Provide fiscal support - Execute budgets frontloaded to the first quarter: a 8 trillion won increase compared with the same period of the previous year - Public institutions to increase investment by 6 trillion won, and pension funds to expand investment in alternative assets by 10 trillion won - Work on increasing fiscal space: Adopt the PAYGO rules1, and reduce public institution debt and improve their management efficiency

Continue to boost domestic consumption - Regularly hold shopping events and ease regulations regarding visa applications and duty free shops to attract foreign customers - Work to increase household disposable income: Revise corporate tax incentives designed to increase employee wages and dividend payouts, expand reverse mortgages, and provide housing support as well as increase the supply of less expensive rental homes

1. â&#x20AC;&#x2DC;Budget neutralâ&#x20AC;&#x2122;, new spending must be paid for by cutting existing spending or by revenue increases

January 2016

Policy Issue - Prepare for demographic changes: Increase the employment of women and young adults, attract qualified foreign workers and modify immigrant policies

Promote private sector investment by easing regulations - Establish regulation-free zones in which region-specific new growth engine industries will be located, and invest 5 trillion won in new energy industries and other new growth engine industries - Announce service sector development policies in the first half, which will cover policies regarding regulations and support - Promote large-scale rental housing construction, ease land-use regulations for 100,000 hectares of land set aside for farming, and provide tax incentives to small- and medium-sized enterprises (SMEs) investing in production facilities

Work to avoid risks - Effectively manage household debt by requiring financial institutions to adhere to the lending guidelines set out by Korea Federation of Banks - Work to address oversupply issues in the five industries of shipbuilding, shipping, petrochemical, steel and construction industries - Continue to work on corporate restructuring

Deputy Prime Minister Yoo Il Ho (center) delivers opening remarks at a joint briefing for presenting the 2016 work report of the economy-related ministries at Sejong Goverment Complex on January 14.

Policy Issue

Economic News Briefing

BOK forecasts 3.0% growth for 2016 FDI posts record high in 2015 Government to work on speeding up corporate restructuring Korea expands flexible tariff list in 2016 Exports down 7.9% in 2015 FX reserves amount to US $368.0 bn at end of 2015 Korea attends AIIB opening ceremony

BOK forecasts 3.0% growth for 2016 The Bank of Korea (BOK) predicted that the Korean economy will grow 3.0 percent in 2016. According to the central bank’s economic outlook report released on January 14, the Korean economic growth rate will be 3.1 percent in the first half of 2016, but will fall to 2.9 percent in the second half of the year. Although domestic demand is showing an uptrend, led by consumption, the economy is recovering at a modest pace due to slowing growth in external demand. In 2017, Korea’s economic growth rate is expected to rise to 3.2 percent as the global economy gradually improves. The number of workers on payrolls is expected to increase by 340,000 in 2016, and the unemployment rate is forecast to be 3.5 percent. Consumer prices are expected to rise 1.4 percent this year, and the current account surplus is projected to stand at US $98 billion.

FDI posts record high in 2015 Foreign direct investment (FDI) in Korea posted a record high in 2015, rising 10.0 percent from the previous year to US $20.91 billion (according to prior notification). Investment from China (US $1.98 billion, up 66.3%) continued to grow at a fast pace thanks to the Korea-China FTA and investment related to Hallyu, Korean pop culture, while investment from the Middle East rose to a record high of US $1.38 billion (up 514.1%) following President Park Geun-hye’s visit to the region last year. By sector, FDI in services (US $14.73 billion, up 31.7%) and construction (US $1.62 billion, up 871.7%) rose, while investment in manufacturing (US $4.56 billion, down 40.3%) declined. (US $ billion, according to prior notification)

FDI (y-o-y, %)

2011

2012

2013

2014

2015

13.67

16.29

14.55

19.00

20.91

4.6

19.1

-10.7

30.6

10.0

Government to work on speeding up corporate restructuring The government will accelerate corporate restructuring in the shipbuilding, shipping, steel, petrochemical and construction industries. Shipbuilders, which are suffering from oversupply and excessive competition, will be encouraged to work on restructuring to solve the oversupply problem. For the shipping industry, the government will create a US $1.2 billion vessel fund, which will be made available to shipping companies that successfully reduce their debt ratios to 400 percent or lower. 46

Economic News Briefing

Restructuring in the petrochemical and steel industries will focus on facility adjustment, in particular cutting facility capacity for the production of terephthalic acid and ferroalloys. Restructuring measures for the construction industry include weeding out insolvent companies and setting up a fund to support companies participating in overseas construction projects.

Korea expands flexible tariff list in 2016 The Ministry of Strategy and Finance announced on December 29, 2015 that it will expand the number of products on its flexible tariff list in 2016. The number of products eligible for preferential tariff rates will increase from 41 to 51, and adjustment duties will be applied to 14 products, down from 15 last year. Raw materials and intermediary goods used for producing Korea’s key export items such as display panels and semiconductors, as well as those mostly used by the nation’s small manufacturers, will benefit from the tariff quotas.

Exports down 7.9% in 2015 Korea’s exports in 2015 declined 7.9 percent year-on-year to US $527.2 billion, while imports dropped 16.9 percent to US $436.8 billion. The decline in exports was driven by oil products and petrochemicals, whose prices fell in line with low international oil prices. Imports were also down due to falling oil

Freight containers are about to be loaded onto trucks at Incheon port on December 21, 2015. Korea's exports and imports declined 7.9 percent and 16.9 percent, respectively, in 2015, while the trade surplus posted a record high.

January 2016

prices, with a sharp decline in commodity imports offsetting increases in capital and consumer goods imports. Meanwhile, the trade balance posted a surplus of US $90.4 billion, a record high. Korea was the world’s sixth largest exporter in 2015, up from the seventh spot in the previous year. Korea’s trade is expected to show modest improvements in 2016 due to the gradual recovery of the global economy and a low base effect from the previous year. Exports and imports are forecast to grow 2.1 percent and 2.6 percent, respectively, and the trade surplus is predicted to remain at around US $90 billion.

FX reserves amount to US $368.0 bn at end of 2015 Korea’s official foreign exchange reserves amounted to US $368.0 billion as of the end of December 2015, down US $500 million from a month earlier and up US $4.37 billion from the same period of the previous year. Korea’s foreign exchange reserves consisted of securities valued at US $345.24 billion (93.8%), deposits of US $13.27 billion (3.6%), gold of US $4.79 billion (1.3%), special drawing rights (SDRs) of US $3.24 billion (0.9%) and Korea’s IMF reserve position of US $1.41 billion (0.4%). As of the end of November, Korea was the sixth-largest holder of foreign exchange reserves in the world, moving up one notch from October. (US $ billion, end-period)

2015

2013

2014

Oct

Nov

Dec

Official foreign reserves

346.46

363.59

369.60

368.46

367.96

- Securities

321.06

341.67

334.60

336.48

345.24

14.59

11.93

25.34

22.39

13.27

- Deposits - SDRs

3.49

3.28

3.44

3.39

3.24

- IMF position

2.53

1.92

1.43

1.41

- Gold

4.79

Korea attends AIIB opening ceremony Korea’s Deputy Prime Minister and Minister of Strategy and Finance Yoo Il Ho attended the Asian Infrastructure Investment Bank (AIIB) opening ceremony and the board of directors’ meeting on January 16-17 as one of the founding members of the China-led multilateral development bank. In his congratulatory speech, the Deputy Prime Minister envisioned that the AIIB will help the region cope better with its challenges and provide the investment capital that is required for sustainable growth.

Economic News Briefing

Statistical Appendices

01. National accounts 02. Production, shipment and inventory 03. Production capacity and operation ratio 04. Consumer goods sales index 05. Consumer goods shipment index and consumer sentiment index 06. Machinery orders received and estimated facility investment index 07. Value of construction completed and domestic construction orders received 08. Composite indices of business cycle indicators and BSI 09. Balance of payments (I) 10. Balance of payments (II) 11. Prices 12. Employment 13. Financial indicators 14. Monetary indicators 15. Exchange rates

1. National accounts Period

Agri., fores. & fisheries

Manufacturing

Final consumption expenditure

Gross fixed capital formation Construction

Facilities

2006 2007 2008 2009 2010 2011 2012 2013 2014p

5.2 5.5 2.8 0.7 6.5 3.7 2.3 2.9 3.3

1.6 4.1 5.6 3.2 -4.3 -2.0 -0.9 3.1 2.6

7.7 8.4 3.7 -0.5 13.7 6.5 2.4 3.6 4.0

5.2 5.3 2.2 1.3 4.3 2.7 2.2 2.2 2.0

3.6 5.0 -0.9 0.3 5.5 0.8 -0.5 3.3 3.1

0.7 1.5 -2.7 3.5 -3.7 -3.4 -3.9 5.5 1.0

8.4 9.7 -0.2 -7.7 22.0 4.7 0.1 -0.8 5.8

2006 Ⅰ Ⅱ Ⅲ Ⅳ

6.3 4.7 2.1 4.8

4.1 -0.2 -1.3 4.2

9.6 7.4 8.2 6.1

5.9 5.1 4.7 5.0

3.0 0.7 4.3 5.9

1.7 -4.1 -0.3 5.4

4.6 8.8 13.5 6.8

2007 Ⅰ Ⅱ Ⅲ Ⅳ

4.7 5.6 5.1 6.3

1.7 7.0 8.1 -0.6

6.5 8.6 7.4 10.9

5.2 5.6 5.5 5.0

6.6 6.3 2.1 5.2

3.8 2.0 0.0 0.9

10.3 14.2 2.1 12.2

2008 Ⅰ Ⅱ Ⅲ Ⅳ

5.5 4.1 3.9 -1.6

7.7 4.6 4.3 6.4

8.2 7.1 6.1 -5.3

4.7 3.1 2.4 -1.4

1.8 0.9 2.3 -7.0

-2.0 -0.7 0.2 -7.3

7.0 1.4 5.6 -13.0

2009 Ⅰ Ⅱ Ⅲ Ⅳ

-1.9 -1.1 0.9 4.8

2.5 0.0 5.0 5.0

-8.4 -5.7 1.6 10.4

-1.9 0.9 1.7 4.5

-5.4 -1.1 0.8 5.8

1.9 4.4 3.1 4.1

-19.4 -13.6 -5.9 9.5

2010 Ⅰ Ⅱ Ⅲ Ⅳ

7.2 7.4 5.4 6.0

0.0 -2.2 -7.8 -5.7

16.1 17.2 10.1 11.9

6.2 3.6 3.9 3.4

12.0 6.8 3.8 1.2

1.6 -4.8 -4.8 -5.2

27.6 28.8 20.6 12.9

2011 Ⅰ Ⅱ Ⅲ Ⅳ

4.9 3.6 3.3 3.1

-9.3 -2.5 -5.8 7.1

11.4 6.5 5.6 3.4

3.3 3.3 2.8 1.7

-0.7 2.5 1.7 -0.3

-8.2 -2.5 -2.2 -2.0

8.3 8.3 3.4 -0.9

2012 Ⅰ Ⅱ Ⅲ Ⅳ

2.6 2.4 2.1 2.1

0.1 -1.8 0.0 -1.3

2.7 2.8 2.0 2.0

2.2 1.3 2.7 2.7

6.2 -2.2 -0.9 -3.6

-0.2 -5.3 -2.6 -6.4

11.0 -1.9 -4.2 -3.8

2013 Ⅰ Ⅱ Ⅲ Ⅳ

2.1 2.7 3.2 3.5

-1.2 0.3 4.4 6.8

2.7 3.6 3.8 4.2

1.5 2.2 2.4 2.6

-3.2 4.3 4.9 6.5

1.3 8.9 7.4 3.5

-12.3 -3.2 2.3 11.6

2014pⅠ Ⅱ Ⅲ Ⅳ

3.9 3.4 3.3 2.7

5.6 3.3 1.4 1.3

5.1 5.1 3.3 2.4

2.7 1.7 2.0 1.8

5.8 3.3 3.3 0.7

4.1 0.2 2.3 -1.5

7.2 7.7 4.2 4.2

2015pⅠ Ⅱ Ⅲ

2.5 2.2 2.7

6.3 -4.7 -0.7

0.7 0.8 1.7

1.9 2.0 2.3

2.4 2.4 5.1

0.6 1.6 5.7

5.8 5.0 6.6

p: Preliminary Source: Bank of Korea

(year-on-year change, %, chained 2010 year prices)

Real GDP

Statistical Appendices

2. Production, shipment and inventory Period

Production index

Shipment index

y-o-y change (%)

Inventory index

y-o-y change (%)

(constant prices, 2010=100)

Service production index

y-o-y change (%)

2012 2013 2014

107.4 108.2 108.2

1.3 0.7 0.0

107.2 108.1 107.9

1.5 0.8 -0.2

125.2 130.7 128.4

4.4 4.4 -1.8

104.8 106.4 108.7

1.6 1.5 2.2

2013 Ⅰ Ⅱ Ⅲ Ⅳ

106.0 109.3 104.3 113.0

-0.6 0.4 0.6 2.2

106.1 109.4 104.5 112.2

-0.5 0.9 0.7 2.2

123.1 119.2 124.5 130.7

4.6 3.8 8.7 4.4

103.2 106.8 105.6 110.0

1.2 1.8 0.8 2.1

2014 Ⅰ Ⅱ Ⅲ Ⅳ

106.7 109.8 105.5 110.9

0.7 0.5 1.2 -1.9

106.5 109.3 104.8 111.0

0.4 -0.1 0.3 -1.1

130.0 128.9 129.7 128.4

5.6 8.1 4.2 -1.8

105.3 108.4 108.3 112.9

2.0 1.5 2.6 2.6

2015 Ⅰ Ⅱ Ⅲ

105.7 108.2 105.3

-0.9 -1.5 -0.2

105.9 108.0 105.7

-0.6 -1.2 0.9

133.7 136.0 139.5

2.8 5.5 7.6

108.2 111.1 111.4

2.8 2.5 2.9

2013 1 2 3 4 5 6 7 8 9 10 11 12

111.2 97.3 109.6 109.5 110.6 107.8 108.0 103.9 101.1 113.3 112.2 113.4

9.0 -8.3 -1.8 2.5 -0.1 -1.3 1.9 3.6 -3.4 4.1 -0.4 2.8

110.0 98.2 110.2 109.3 110.3 108.6 107.1 104.9 101.4 112.6 111.4 112.6

7.0 -7.4 -0.7 2.9 0.4 -0.5 1.8 5.0 -4.5 4.1 0.4 2.3

128.6 124.6 123.1 120.7 121.7 119.2 124.0 123.5 124.5 126.3 129.1 130.7

7.8 6.1 4.6 3.6 3.0 3.8 7.5 3.5 8.7 8.8 6.4 4.4

102.4 100.4 106.7 105.6 107.7 107.0 105.6 105.7 105.4 107.8 107.4 114.7

2.1 0.5 0.9 2.7 1.6 1.0 0.8 1.7 -0.3 2.9 1.8 1.8

2014 1 2 3 4 5 6 7 8 9 10 11 12

106.2 101.0 112.9 112.4 108.4 108.5 112.3 101.2 103.1 109.8 108.3 114.7

-4.5 3.8 3.0 2.6 -2.0 0.6 4.0 -2.6 2.0 -3.1 -3.5 1.1

105.1 101.3 113.1 111.3 108.7 107.8 109.5 101.7 103.2 109.0 109.2 114.9

-4.5 3.2 2.6 1.8 -1.5 -0.7 2.2 -3.1 1.8 -3.2 -2.0 2.0

132.1 129.3 130.0 131.2 130.0 128.9 133.2 130.6 129.7 130.7 129.7 128.4

2.7 3.8 5.6 8.7 6.8 8.1 7.4 5.7 4.2 3.5 0.5 -1.8

104.7 101.8 109.4 106.9 108.8 109.6 108.7 107.9 108.3 110.6 109.8 118.4

2.2 1.4 2.5 1.2 1.0 2.4 2.9 2.1 2.8 2.6 2.2 3.2

2015 1 2 3 4 5 6 7 8 9 10p 11p

108.1 96.0 113.0 109.5 105.1 110.0 108.6 101.2 106.0 111.7 108.0

1.8 -5.0 0.1 -2.6 -3.0 1.4 -3.3 0.0 2.8 1.7 -0.3

108.1 96.6 113.1 109.5 105.5 108.9 107.8 101.9 107.4 112.0 108.1

2.9 -4.6 0.0 -1.6 -2.9 1.0 -1.6 0.2 4.1 2.8 -1.0

132.4 133.0 133.7 135.2 134.6 136.0 138.8 138.7 139.5 137.4 137.8

0.2 2.9 2.8 3.0 3.5 5.5 4.2 6.2 7.6 5.1 6.2

107.1 104.6 113.0 111.2 111.4 110.6 111.3 110.4 112.4 114.2 113.2

2.4 2.8 3.3 4.0 2.4 0.9 2.4 2.3 3.8 3.3 3.1

p: Preliminary Source: Statistics Korea

January 2016

3. Production capacity and operation ratio Period

Production capacity index (2010=100)

y-o-y change (%)

Average operation ratio (%)

2012 2013 2014

106.9 108.6 110.3

2.1 1.6 1.6

97.5 95.1 94.2

-2.7 -2.5 -0.9

78.6 76.5 76.1

2013 Ⅰ Ⅱ Ⅲ Ⅳ

108.1 108.3 108.8 109.3

1.7 1.5 1.7 1.7

93.7 97.9 90.8 98.3

-3.9 -3.1 -2.6 0.0

77.3 76.1 75.4 77.0

2014 Ⅰ Ⅱ Ⅲ Ⅳ

109.6 109.9 110.6 111.0

1.4 1.5 1.7 1.6

92.8 96.8 91.5 95.8

-1.0 -1.1 0.8 -2.5

77.1 76.1 76.0 75.1

2015 Ⅰ Ⅱ Ⅲ

111.2 111.3 111.4

1.5 1.3 0.7

90.1 94.8 89.8

-2.9 -2.1 -1.9

74.4 74.2 74.7

2013 1 2 3 4 5 6 7 8 9 10 11 12

108.0 108.1 108.1 108.1 108.3 108.5 108.6 108.9 108.9 109.1 109.2 109.6

1.7 1.8 1.6 1.4 1.5 1.6 1.8 1.6 1.8 1.7 1.6 1.9

98.9 84.9 97.2 97.9 99.4 96.3 94.6 90.7 87.0 99.7 98.2 96.9

6.9 -12.7 -5.5 -1.0 -3.1 -5.0 -2.7 2.7 -7.5 1.6 -2.5 0.8

78.8 77.3 75.9 75.8 76.4 76.2 74.7 76.8 74.8 77.0 76.5 77.4

2014 1 2 3 4 5 6 7 8 9 10 11 12

109.7 109.5 109.7 109.6 109.9 110.1 110.4 110.7 110.8 110.9 110.9 111.1

1.6 1.3 1.5 1.4 1.5 1.5 1.7 1.7 1.7 1.6 1.6 1.4

91.9 87.5 99.0 99.8 95.6 94.9 98.7 86.8 88.9 95.8 94.1 97.6

-7.1 3.1 1.9 1.9 -3.8 -1.5 4.3 -4.3 2.2 -3.9 -4.2 0.7

77.8 76.3 77.2 77.2 74.9 76.3 77.9 74.7 75.4 74.2 74.6 76.6

2015 1 2 3 4 5 6 7 8 9 10p 11p

111.1 111.0 111.5 111.2 111.3 111.4 111.2 111.3 111.8 111.8 111.6

1.3 1.4 1.6 1.5 1.3 1.2 0.7 0.5 0.9 0.8 0.6

93.0 81.1 96.3 95.8 91.9 96.8 94.8 85.9 88.8 95.2 91.8

1.2 -7.3 -2.7 -4.0 -3.9 2.0 -4.0 -1.0 -0.1 -0.6 -2.4

74.1 75.1 73.9 74.1 73.2 75.2 74.7 74.1 75.2 73.9 72.7

p: Preliminary Source: Statistics Korea

Operation ratio index (2010=100)

Statistical Appendices

4. Consumer goods sales index

(constant prices, 2010=100)

Consumer goods sales index Durable goods Semi-durable goods

Period

y-o-y change (%)

Nondurable goods

y-o-y change (%)

2012 2013 2014

107.1 107.9 109.7

2.5 0.7 1.7

116.3 116.6 122.6

5.4 0.3 5.1

103.9 106.1 105.5

-0.3 2.1 -0.6

104.3 104.7 105.5

2.2 0.4 0.8

2013 Ⅰ Ⅱ Ⅲ Ⅳ

103.8 107.7 107.2 113.0

0.3 1.1 0.5 1.1

111.0 118.2 116.8 120.3

1.5 2.8 -1.4 -1.5

102.1 107.3 94.9 119.9

3.1 1.6 2.7 1.3

101.2 102.9 108.0 106.6

-1.6 -0.1 0.5 2.4

2014 Ⅰ Ⅱ Ⅲ Ⅳ

106.3 108.6 108.8 115.1

2.4 0.8 1.5 1.9

117.2 121.2 123.4 128.6

5.6 2.5 5.7 6.9

100.3 104.9 96.2 120.4

-1.8 -2.2 1.4 0.4

103.8 104.3 107.5 106.5

2.6 1.4 -0.5 -0.1

2015 Ⅰ Ⅱ Ⅲ

108.0 111.8 112.2

1.6 2.9 3.1

126.6 131.9 132.6

8.0 8.8 7.5

98.7 104.0 92.9

-1.6 -0.9 -3.4

103.4 105.8 111.2

-0.4 1.4 3.4

2013 1 2 3 4 5 6 7 8 9 10 11 12

104.6 99.5 107.3 105.4 110.9 106.8 109.2 104.5 107.8 111.3 113.2 114.6

-2.8 1.6 2.1 2.2 0.6 0.6 0.7 2.0 -1.4 2.0 1.3 0.1

112.3 105.9 114.8 115.1 119.7 119.9 127.5 116.2 106.8 120.5 120.2 120.1

4.7 -1.2 0.9 7.2 2.0 -0.2 1.4 1.8 -7.8 2.9 -2.4 -4.7

102.8 93.3 110.2 106.7 113.8 101.3 98.0 86.6 100.1 113.9 123.8 122.1

-1.9 1.5 9.8 1.7 2.2 0.9 0.6 5.4 2.6 -0.8 4.1 0.4

101.7 99.3 102.5 100.3 105.5 103.0 105.6 106.8 111.6 105.8 105.3 108.8

-6.7 3.2 -0.6 0.0 -0.8 0.7 0.4 0.8 0.3 2.8 1.9 2.6

2014 1 2 3 4 5 6 7 8 9 10 11 12

110.4 99.1 109.3 105.6 112.1 108.1 109.9 107.1 109.3 111.1 114.3 119.9

5.5 -0.4 1.9 0.2 1.1 1.2 0.6 2.5 1.4 -0.2 1.0 4.6

116.1 116.9 118.5 114.2 121.8 127.5 131.1 118.5 120.5 118.9 128.7 138.1

3.4 10.4 3.2 -0.8 1.8 6.3 2.8 2.0 12.8 -1.3 7.1 15.0

100.7 92.0 108.2 105.8 111.8 97.2 95.7 91.5 101.5 116.0 120.6 124.7

-2.0 -1.4 -1.8 -0.8 -1.8 -4.0 -2.3 5.7 1.4 1.8 -2.6 2.1

111.9 93.9 105.5 101.5 107.7 103.7 106.3 108.6 107.5 105.4 104.9 109.3

10.0 -5.4 2.9 1.2 2.1 0.7 0.7 1.7 -3.7 -0.4 -0.4 0.5

2015 1 2 3 4 5 6 7 8 9 10p 11p

107.3 104.4 112.4 110.8 115.6 108.9 112.2 109.2 115.3 120.4 120.6

-2.8 5.3 2.8 4.9 3.1 0.7 2.1 2.0 5.5 8.4 5.5

128.2 117.2 134.5 129.3 130.1 136.2 139.9 129.2 128.7 142.9 146.6

10.4 0.3 13.5 13.2 6.8 6.8 6.7 9.0 6.8 20.2 13.9

97.9 92.6 105.7 107.6 115.4 89.1 92.4 87.7 98.7 122.4 123.1

-2.8 0.7 -2.3 1.7 3.2 -8.3 -3.4 -4.2 -2.8 5.5 2.1

101.7 103.6 105.0 103.5 109.0 104.9 107.9 109.3 116.4 108.9 107.3

-9.1 10.3 -0.5 2.0 1.2 1.2 1.5 0.6 8.3 3.3 2.3

p: Preliminary Source: Statistics Korea

January 2016

5. Consumer goods shipment index and consumer sentiment index

Domestic consumer goods shipment index (2010=100) Durable goods Nondurable goods y-o-y y-o-y y-o-y change (%) change (%) change (%)

Period 2012 2013 2014

102.5 102.2 101.8

1.6 -0.3 -0.4

102.8 103.4 102.6

2.5 0.6 -0.8

102.4 101.7 101.5

1.2 -0.7 -0.2

2013 Ⅰ Ⅱ Ⅲ Ⅳ

103.0 98.7 102.4 104.7

2.2 -1.2 -1.1 -1.2

108.3 100.9 102.6 101.8

10.7 1.8 0.1 -9.1

100.8 97.7 102.3 105.9

-1.2 -2.5 -1.5 2.4

2014 Ⅰ Ⅱ Ⅲ Ⅳ

100.7 100.3 102.4 103.9

-2.2 1.6 0.0 -0.8

103.4 103.0 100.9 103.2

-4.5 2.1 -1.7 1.4

99.5 99.2 103.0 104.2

-1.3 1.5 0.7 -1.6

2015 Ⅰ Ⅱ Ⅲ

101.8 101.0 104.5

1.1 0.7 2.1

99.9 102.5 105.0

-3.4 -0.5 4.1

102.5 100.4 104.2

3.0 1.2 1.2

2013 1 2 3 4 5 6 7 8 9 10 11 12

108.8 96.9 103.3 99.5 99.7 96.9 103.4 104.0 99.7 108.8 102.9 102.3

8.2 -1.7 0.2 0.3 -1.9 -2.0 0.6 2.5 -6.0 2.1 -2.6 -3.2

110.3 106.4 108.1 98.1 101.7 102.8 109.0 103.8 94.9 104.4 103.1 97.8

19.2 8.2 5.5 4.3 1.3 0.0 3.5 5.5 -8.7 -3.8 -7.0 -16.1

108.1 92.9 101.3 100.0 98.8 94.4 101.1 104.2 101.7 110.7 102.8 104.2

3.9 -5.9 -1.9 -1.3 -3.2 -3.0 -0.7 1.3 -5.0 4.7 -0.7 3.1

102 102 104 102 104 105 105 105 102 106 107 107

2014 1 2 3 4 5 6 7 8 9 10 11 12

102.4 96.6 103.0 101.7 99.8 99.5 104.8 100.2 102.2 105.0 100.9 105.8

-5.9 -0.3 -0.3 2.2 0.1 2.7 1.4 -3.7 2.5 -3.5 -1.9 3.4

99.9 106.7 103.6 97.9 103.4 107.7 107.6 95.0 100.1 99.8 102.9 106.8

-9.4 0.3 -4.2 -0.2 1.7 4.8 -1.3 -8.5 5.5 -4.4 -0.2 9.2

103.4 92.3 102.8 103.3 98.2 96.1 103.7 102.4 103.0 107.3 100.0 105.4

-4.3 -0.6 1.5 3.3 -0.6 1.8 2.6 -1.7 1.3 -3.1 -2.7 1.2

109 108 108 108 105 107 105 107 107 105 103 101

2015 1 2 3 4 5 6 7 8 9 10p 11p 12

104.8 94.5 106.0 105.5 98.8 98.8 103.2 102.1 108.1 111.1 107.0 -

2.3 -2.2 2.9 3.7 -1.0 -0.7 -1.5 1.9 5.8 5.8 6.0 -

101.2 92.8 105.8 107.1 98.1 102.3 107.0 103.3 104.6 114.5 113.2 -

1.3 -13.0 2.1 9.4 -5.1 -5.0 -0.6 8.7 4.5 14.7 10.0 -

106.3 95.2 106.1 104.7 99.1 97.3 101.6 101.5 109.6 109.6 104.3 -

2.8 3.1 3.2 1.4 0.9 1.2 -2.0 -0.9 6.4 2.1 4.3 -

102 103 101 104 105 99 100 102 103 105 106 103

p: Preliminary Source: Statistics Korea

Consumer sentiment index

Statistical Appendices

6. Machinery orders received and estimated facility investment index

Domestic machinery orders received excluding ship (billion won, constant value) Public Private y-o-y y-o-y y-o-y change (%) change (%) change (%)

Total

Period 2012 2013 2014

y-o-y change (%)

21,648 23,078 26,485

-13.9 6.6 14.8

2,142 2,580 5,012

-11.0 20.5 94.2

19,506 20,497 21,473

-14.2 5.1 4.8

100.6 99.8 105.0

-2.8 -0.8 5.2

2013Ⅰ Ⅱ Ⅲ Ⅳ

5,587 5,865 5,144 6,481

-11.5 8.8 2.1 32.0

429 554 522 1,075

-47.0 94.2 -9.7 129.7

5,158 5,311 4,622 5,406

-6.2 4.0 3.7 21.7

91.7 101.1 99.3 107.0

-12.7 -3.5 3.2 11.0

2014Ⅰ Ⅱ Ⅲ Ⅳ

6,624 6,099 7,687 6,075

18.5 4.0 49.4 -6.3

1,221 305 2,708 778

184.6 -45.0 418.5 -27.6

5,403 5,794 4,979 5,297

4.7 9.1 7.7 -2.0

98.6 107.9 100.8 112.8

7.5 6.7 1.5 5.4

2015Ⅰ Ⅱ Ⅲ

6,453 7,054 5,643

-2.6 15.7 -26.6

405 493 399

-66.9 61.7 -85.3

6,048 6,561 5,244

12.0 13.2 5.3

106.9 113.5 110.9

8.4 5.2 10.0

2013 1 2 3 4 5 6 7 8 9 10 11 12

1,844 1,666 2,078 1,846 2,127 1,893 1,934 1,622 1,588 2,604 2,094 1,783

-4.6 -34.5 13.2 0.0 16.2 10.3 5.4 7.5 -6.2 72.3 26.5 2.3

139 168 121 92 250 212 359 92 71 788 163 124

169.8 -75.8 92.2 63.8 542.9 11.5 15.8 -45.5 -28.5 815.5 28.2 -51.4

1,704 1,497 1,957 1,753 1,877 1,681 1,575 1,530 1,517 1,816 1,931 1,659

-9.4 -18.9 10.4 -2.0 4.8 10.2 3.3 14.2 -4.8 27.4 26.3 11.5

90.1 83.9 101.0 98.7 102.1 102.5 108.4 100.6 88.8 109.6 101.9 109.4

-7.8 -23.1 -6.7 -7.1 -3.5 0.2 2.8 11.7 -4.6 16.0 10.3 7.0

2014 1 2 3 4 5 6 7 8 9 10 11 12

1,748 1,847 3,029 2,276 1,826 1,997 1,779 4,090 1,818 1,932 2,303 1,840

-5.2 10.9 45.8 23.3 -14.1 5.5 -8.0 152.2 14.5 -25.8 10.0 3.2

88 120 1,013 97 116 92 89 2,541 79 211 428 139

-36.9 -28.8 735.6 5.1 -53.4 -56.7 -75.3 2,653.2 10.6 -73.2 162.6 12.5

1,660 1,727 2,016 2,179 1,709 1,906 1,690 1,549 1,739 1,722 1,874 1,701

-2.6 15.3 3.0 24.3 -8.9 13.4 7.3 1.3 14.7 -5.2 -2.9 2.5

90.3 95.6 109.8 110.6 108.3 104.9 111.4 90.7 100.2 99.8 112.5 126.0

0.2 13.9 8.7 12.1 6.1 2.3 2.8 -9.8 12.8 -8.9 10.4 15.2

2015 1 2 3 4 5 6 7 8 9 10 p 11p

2,324 1,856 2,273 2,782 2,102 2,170 2,023 1,702 1,917 2,054 1,958

32.9 0.5 -24.9 22.2 15.1 8.6 13.7 -58.4 5.5 6.3 -15.0

116 141 148 127 197 169 133 160 106 102 228

32.0 17.6 -85.4 30.7 69.4 84.7 50.2 -93.7 34.8 -51.8 -46.7

2,208 1,715 2,126 2,656 1,905 2,000 1,890 1,542 1,811 1,952 1,730

33.0 -0.7 5.5 21.9 11.4 5.0 11.8 -0.4 4.1 13.4 -7.7

102.7 98.6 119.5 113.5 109.1 117.8 119.4 105.8 107.5 112.3 106.4

13.7 3.1 8.8 2.6 0.7 12.3 7.2 16.6 7.3 12.5 -5.4

p: Preliminary Source: Statistics Korea

January 2016

7. Value of construction completed and domestic construction orders received

(current value, billion won)

Period

Value of construction y-o-y completed change (%) (Total)

y-o-y change (%)

Domestic construction orders y-o-y received change (%) (Total)

Type of order Public Private y-o-y change (%)

y-o-y change (%)

2012 2013 2014

88,713 98,089 98,465

-3.3 10.6 0.4

33,807 34,459 32,004

-3.7 1.9 -7.1

50,622 59,714 62,403

-2.0 18.0 4.5

89,395 77,885 89,833

-6.2 -12.9 15.3

26,071 24,736 26,497

-8.9 -5.1 7.1

59,811 50,947 61,321

-3.3 -14.8 20.4

2013 Ⅰ Ⅱ Ⅲ Ⅳ

20,178 25,760 23,718 28,732

4.7 14.9 11.1 10.7

6,998 9,318 8,058 10,085

-6.0 4.8 6.0 2.1

12,415 15,455 14,739 17,106

14.0 24.2 16.3 17.1

13,826 18,694 16,833 28,532

-39.0 -27.4 -8.5 26.3

4,292 5,371 4,987 10,086

-24.1 -3.6 -7.7 6.8

9,180 12,636 11,442 17,688

-43.7 -33.8 -8.6 48.9

2014 Ⅰ Ⅱ Ⅲ Ⅳ

21,675 26,174 23,601 27,016

7.4 1.6 -0.5 -5.0

7,147 8,706 7,243 8,909

2.1 -6.6 -10.1 -11.7

13,676 16,512 15,360 16,855

10.2 6.8 4.2 -1.5

15,972 23,436 24,035 26,390

15.5 25.4 42.8 -7.5

5,898 6,577 5,190 8,833

37.4 22.5 4.1 -12.4

9,628 16,537 18,175 16,982

4.9 30.9 58.8 -4.0

2015 Ⅰ Ⅱ Ⅲ

21,252 25,004 24,746

-2.0 -4.5 4.9

6,554 8,190 7,174

-8.3 -5.9 -1.0

13,949 15,831 16,582

2.0 -4.1 8.0

24,821 35,163 36,274

55.4 50.0 50.9

4,566 9,186 4,900

-22.6 39.7 -5.6

19,980 25,459 30,647

107.5 54.0 68.6

2013 1 2 3 4 5 6 7 8 9 10 11 12

6,272 6,236 7,670 81,057 81,607 94,947 7,854 7,666 8,199 8,637 9,088 10,708

8.2 3.3 3.0 18.4 11.7 15.0 11.6 16.5 6.0 17.6 12.2 4.6

2,072 2,346 2,581 2,830 2,797 3,691 2,635 2,553 2,870 2,952 3,118 4,015

-2.4 -1.1 -12.4 7.0 -2.7 9.4 11.1 10.0 -1.2 13.9 3.8 -6.2

3,962 3,662 4,790 4,978 5,088 5,389 4,908 4,827 5,004 5,344 5,635 6,126

17.4 7.5 16.4 27.5 23.9 21.6 14.7 22.4 12.4 20.0 18.1 13.7

3,557 4,723 5,546 5,151 6,221 7,321 5,775 4,690 6,368 7,751 8,083 12,698

-52.4 -44.4 -17.4 -19.9 -14.9 -39.0 -15.4 -13.0 3.0 33.6 11.6 32.9

1,300 1,281 1,711 1,565 1,564 2,241 1,493 1,474 2,021 1,518 2,664 5,904

-36.1 -42.3 21.9 7.7 47.4 -26.7 -35.2 12.0 13.5 -23.0 26.5 10.0

2,109 3,290 3,781 3,160 4,537 4,940 4,148 3,172 4,122 6,144 5,204 6,340

-60.0 -46.3 -23.1 -29.2 -26.0 -41.9 -4.2 -21.3 -0.9 62.2 8.5 92.7

2014 1 2 3 4 5 6 7 8 9 10 11 12

7,057 6,665 7,953 8,476 8,191 9,506 7,914 7,721 7,966 8,239 8,339 10,438

12.5 6.9 3.7 4.6 0.4 0.1 0.8 0.7 -2.8 -4.6 -8.2 -2.5

2,314 2,207 2,626 2,740 2,584 3,382 2,429 2,324 2,491 2,532 2,673 3,704

11.7 -6.0 1.8 -3.2 -7.6 -8.4 -7.8 -9.0 -13.2 -14.2 -14.3 -7.8

4,452 4,237 4,987 5,458 5,316 5,737 5,149 5,112 5,099 5,369 5,293 6,194

12.4 15.7 4.1 9.6 4.5 6.5 4.9 5.9 1.9 0.5 -6.1 1.1

5,528 5,549 4,895 7,359 6,834 9,243 6,969 8,688 8,377 7,755 6,427 12,209

55.4 17.5 -11.7 42.9 9.9 26.2 20.7 85.2 31.6 0.0 -20.5 -3.9

2,034 2,241 1,623 1,894 2,000 2,682 1,533 1,628 2,029 1,416 1,895 5,522

56.4 75.0 -5.1 21.0 27.8 19.7 2.7 10.5 0.4 -6.7 -28.9 -6.5

3,305 3,158 3,165 5,454 4,767 6,316 5,298 6,849 6,029 6,157 4,415 6,410

56.7 -4.0 -16.3 72.6 5.1 27.8 27.7 115.9 46.3 0.2 -15.2 1.1

2015 1 2 3 4 5 6 7 8 9 10p 11p

6,774 6,681 7,796 7,708 7,764 9,531 7,883 7,909 8,954 8,497 8,680

-4.0 0.2 -2.0 -9.1 -5.2 0.3 -0.4 2.4 12.4 3.1 4.1

1,997 2,089 2,468 2,467 2,325 3,399 2,284 2,207 2,684 2,269 2,427

-13.7 -5.3 -6.0 -10.0 -10.0 0.5 -6.0 -5.0 7.7 -10.4 -9.2

4,561 4,374 5,014 4,937 5,127 5,767 5,338 5,406 5,838 5,858 5,864

2.4 3.2 0.5 -9.6 -3.6 0.5 3.7 5.7 14.5 9.1 10.8

7,216 5,367 12,238 9,048 12,556 13,559 8,680 8,496 19,097 10,106 13,110

30.5 -3.3 150.0 22.9 83.7 46.7 24.6 -2.2 128.0 30.3 104.0

1,297 1,133 2,136 2,586 2,458 4,142 1,791 1,921 1,188 1,802 3,271

-36.2 -49.4 31.6 36.5 22.9 54.4 16.9 18.0 -41.5 27.3 72.7

5,882 4,115 9,982 6,406 9,995 9,059 6,812 6,270 17,565 8,303 9,166

78.0 30.3 215.4 17.4 109.7 43.4 28.6 -8.5 191.4 34.8 107.6

p: Preliminary Source: Statistics Korea

Type of order Public Private

Statistical Appendices

8. Composite indices of business cycle indicators and BSI Period

Leading index (2010=100)

Cyclical indicator of leading index (2010=100)

Coincident index (2010=100)

Cyclical indicator of coincident index (2010=100)

BSI (results)

BSI (prospects)

2011 7 8 9 10 11 12

102.8 103.0 103.1 103.3 103.5 103.8

99.5 99.2 99.0 98.7 98.4 98.3

106.2 106.7 106.8 107.2 107.3 107.7

101.9 102.0 101.6 101.6 101.2 101.2

96.2 86.8 96.4 95.0 93.0 90.1

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

104.6 105.7 106.2 106.6 106.7 107.8 108.3 108.4 108.1 108.5 109.3 110.1

98.5 99.2 99.1 99.1 98.7 99.3 99.3 98.9 98.2 98.1 98.4 98.7

107.7 108.6 108.8 109.2 109.3 109.7 110.5 110.4 110.8 110.9 111.5 112.1

100.8 101.3 101.0 101.0 100.6 100.7 100.9 100.4 100.4 100.0 100.2 100.3

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 12

110.4 110.9 111.4 111.9 112.7 113.8 114.5 115.1 115.3 116.2 117.1 118.1

98.5 98.5 98.5 98.6 98.8 99.3 99.5 99.6 99.3 99.6 99.9 100.3

112.4 112.9 113.0 113.6 114.1 114.8 115.2 115.8 116.1 116.8 117.2 117.8

100.2 100.2 99.8 100.0 100.0 100.2 100.2 100.3 100.1 100.3 100.2 100.3

85.0 83.0 101.3 94.1 97.6 95.0 91.1 89.8 93.0 94.7 91.9 90.5

85.7 86.7 104.4 101.5 99.8 97.2 90.7 92.7 94.4 101.1 94.7 92.6

2014 1 2 3 4 5 6 7 8 9 10 11 12

118.7 118.9 119.0 119.4 119.8 120.5 121.1 122.4 123.6 124.4 124.9 125.9

100.4 100.2 99.8 99.7 99.6 99.7 99.8 100.4 101.0 101.2 101.1 101.5

118.5 118.9 119.4 119.6 119.8 120.2 120.8 121.5 121.8 121.9 122.2 123.1

100.5 100.5 100.5 100.3 100.1 100.1 100.2 100.4 100.2 99.9 99.8 100.1

89.4 87.0 100.7 95.8 93.0 91.3 90.8 89.0 92.3 93.1 90.0 95.4

93.4 88.7 104.4 99.5 101.7 94.5 94.0 91.6 93.1 100.7 93.6 94.0

2015 1 2 3 4 5 6 7 8 9 10 11 12

127.8 129.0 130.5 131.1 132.1 132.3 133.0 133.9 135.3 136.3 136.9 -

102.5 103.1 103.8 103.7 104.0 103.6 103.5 103.6 104.2 104.4 104.3 -

123.6 124.5 124.7 125.1 125.0 125.2 125.9 126.8 128.2 129.1 129.5 -

100.1 100.5 100.3 100.3 99.8 99.5 99.7 100.1 100.8 101.1 101.0 -

94.0 89.4 101.5 101.3 95.6 79.9 88.4 86.6 96.1 97.2 95.5 95.5

90.3 92.1 103.7 97.5 99.4 96.4 84.3 89.6 95.1 101.2 95.9 97.5

2016 1

93.2

Source: Statistics Korea, Bank of Korea

January 2016

9. Balance of payments ( I) Period

Current account

Goods

2012 2013 2014

50,835.0 79,883.6 84,373.0

2013 Ⅰ Ⅱ Ⅲ Ⅳ

Services

Primary income

Secondary income

554,103.2 536,559.0 524,135.2

-5,213.6 -7,927.4 -4,016.9

12,116.7 11,424.8 4,489.2

-5,474.1 -4,182.3 -4,984.7

147,823.3 154,065.9 153,715.8 162,551.9

133,525.3 133,480.6 130,410.1 137,959.9

-2,667.9 647.9 -2,078.5 -2,400.7

1,812.4 1,660.5 2,346.6 3,236.2

-828.2 -546.3 -1,323.4 -1,491.4

17,595.3 25,175.7 20,977.4 25,137.0

151,471.8 158,004.3 150,820.7 152,723.8

133,876.5 132,828.6 129,843.3 127,586.8

-2,990.8 -83.7 -541.6 -400.8

-635.1 690.5 1,480.7 2,953.1

-820.0 -1,674.6 -1,251.6 -1,238.5

22,439.2 27,917.6 29,108.1

24,216.7 33,679.8 30,637.7

134,439.1 142,258.7 135,363.0

110,222.4 108,578.9 104,725.3

-4,387.1 -3,092.6 -3,561.5

3,830.8 -1,556.9 2,727.7

-1,221.2 -1,112.7 -695.8

2013 1 2 3 4 5 6 7 8 9 10 11 12

3,075.6 2,473.1 7,065.6 5,334.6 9,886.4 7,126.4 7,323.2 6,745.6 8,181.6 11,108.9 6,229.9 6,597.3

3,953.0 3,256.4 7,088.6 5,510.6 9,363.1 5,711.6 7,462.2 7,271.4 8,572.1 9,767.8 8,024.8 6,799.4

51,765.7 44,916.0 51,141.6 51,704.7 53,477.3 48,883.9 53,326.3 49,899.2 50,490.3 56,820.8 52,702.3 53,028.8

47,812.7 41,659.6 44,053.0 46,194.1 44,114.2 43,172.3 45,864.1 42,627.8 41,918.2 47,053.0 44,677.5 46,229.4

-1,556.6 -1,144.9 33.6 496.2 -28.7 180.4 -879.0 -869.3 -330.2 405.8 -2,088.9 -717.6

1,169.5 623.3 19.6 -482.0 721.6 1,420.9 1,032.7 665.9 648.0 1,335.7 674.8 1,225.7

-490.3 -261.7 -76.2 -190.2 -169.6 -186.5 -292.7 -322.4 -708.3 -400.4 -380.8 -710.2

2014 1 2 3 4 5 6 7 8 9 10 11 12

1,870.1 4,965.6 6,313.7 7,030.6 9,187.0 7,890.3 6,096.7 6,966.9 7,601.3 8,741.5 10,755.2 6,954.1

3,487.8 6,103.7 7,643.8 10,068.2 8,786.8 6,320.7 5,677.3 7,041.2 8,258.9 7,983.9 9,593.0 7,560.1

50,116.2 47,605.8 53,749.8 56,091.9 51,957.8 49,954.6 52,416.1 48,151.0 50,253.6 51,029.1 49,241.6 52,453.1

46,268.4 41,502.1 46,106.0 46,023.7 43,171.0 43,633.9 46,738.8 41,109.8 41,994.7 43,045.2 39,648.6 44,893.0

-1,727.0 -569.9 -693.9 -293.1 102.9 106.5 329.1 -437.3 -433.4 131.8 61.2 -593.8

84.9 -404.1 -315.9 -1,846.2 686.1 1,850.6 480.1 881.3 119.3 888.2 1,216.3 848.6

-335.6 -164.1 -320.3 -898.3 -388.8 -387.5 -389.8 -518.3 -343.5 -262.4 -115.3 -860.8

2015p 1r 2r 3r 4r 5r 6r 7r 8r 9r 10r 11

6,257.1 6,081.1 10,101.1 7,729.8 8,315.5 11,872.3 9,714.8 8,546.9 10,846.4 9,120.4 9,404.4

6,310.3 7,020.8 10,885.6 12,090.2 8,792.6 12,797.0 9,924.9 8,805.4 11,907.4 10,605.2 9,977.0

45,022.1 40,294.9 49,112.1 49,908.3 43,471.9 48,878.5 47,259.6 42,991.3 45,112.1 47,298.7 43,427.4

38,711.8 33,274.1 38,236.5 37,818.1 34,679.3 36,081.5 37,334.7 34,185.9 33,204.7 36,693.5 33,450.4

-1,991.3 -1,758.8 -637.0 -804.0 -83.8 -2,204.8 -1,254.3 -1,013.0 -1,294.2 -1,701.7 -1,280.7

2,558.1 1,037.8 234.9 -3,096.6 40.8 1,498.9 1,139.5 850.9 737.3 594.4 893.6

-620.0 -218.7 -382.5 -459.8 -434.1 -218.8 -95.3 -96.4 -504.1 -377.5 -185.5

Exports

Imports

49,406.0 80,568.6 88,885.4

603,509.2 617,127.6 613,020.6

12,614.3 22,347.4 22,250.4 23,936.1

14,298.0 20,585.3 23,305.7 24,592.0

2014 Ⅰ Ⅱ Ⅲ Ⅳ

13,149.4 24,107.9 20,664.9 26,450.8

2015p Ⅰr Ⅱr Ⅲr

p: Preliminary r : Revised Source: Bank of Korea

(US $ million)

Statistical Appendices

10. Balance of payments ( II)

(US $ million)

Financial derivatives

Other investment

Reserve assets

Capital account

6,747.8 -9,344.5 -30,608.9

2,627.8 4,410.3 3,826.9

-26,637.3 -43,281.1 -25,900.6

-13,184.5 -16,296.1 -17,885.8

-41.7 -27.0 -8.9

-3,878.4 -3,397.8 -3,426.8 -4,890.2

-7,285.9 -9,776.5 9,375.4 -1,657.5

1,395.8 -513.6 1,656.3 1,871.8

2,880.2 -10,063.8 -23,611.4 -12,486.1

-4,560.4 4,106.1 -6,669.0 -9,172.8

-2.7 -27.5 12.8 -9.6

-15,120.7 -24,650.2 -21,230.4 -28,332.7

-2,367.1 -7,990.4 -2,952.8 -5,455.3

-12,614.4 -4,291.2 -4,292.1 -9,411.2

1,004.6 1,983.9 1,649.7 -811.3

5,879.9 -3,182.9 -9,803.2 -18,794.4

-7,023.7 -11,169.6 -5,832.0 6,139.5

-2.1 -4.3 3.6 -6.1

2015p Ⅰ Ⅱ Ⅲ

-23,800.1 -28,671.4 -29,615.2

-4,386.2 -7,467.6 -4,920.9

-7,838.4 -6,994.1 -15,096.2

41.0 461.4 -4,040.7

-4,506.4 -7,369.2 -9,844.1

-7,110.1 -7,301.9 4,286.7

-23.1 -25.5 -27.9

2013 1 2 3 4 5 6 7 8 9 10 11 12

-2,694.7 -1,707.1 -7,046.9 -2,435.7 -12,288.9 -4,921.0 -9,446.1 -6,236.3 -6,993.1 -10,139.4 -7,433.1 -8,762.3

-802.5 -909.3 -2,166.6 401.3 -2,175.6 -1,623.5 -796.8 -1,157.2 -1,472.8 -340.7 -2,243.9 -2,305.6

-5,964.7 2,149.9 -3,471.1 -2,060.8 -1,642.1 -6,073.6 1,785.8 1,584.1 6,005.5 4,942.8 -1,557.9 -5,042.4

579.6 651.0 165.2 -301.1 719.1 -931.6 431.4 210.0 1,014.9 805.3 466.9 599.6

4,123.7 -1,158.3 -85.2 -1,382.5 -8,189.7 -491.6 -8,821.6 -5,172.4 -9,617.4 -10,754.2 -1,248.6 -483.3

-630.8 -2,440.4 -1,489.2 907.4 -1,000.6 4,199.3 -2,044.9 -1,700.8 -2,923.3 -4,792.6 -2,849.6 -1,530.6

-8.0 -2.9 8.2 -1.6 -11.0 -14.9 1.1 18.2 -6.5 -2.0 0.0 -7.6

2014 1 2 3 4 5 6 7 8 9 10 11 12

-3,459.5 -6,830.1 -4,831.1 -6,109.1 -8,223.5 -10,317.6 -4,787.1 -7,866.8 -8,576.5 -7,243.3 -10,457.9 -10,631.5

1,420.3 -1,601.5 -2,185.9 -2,369.9 -3,512.1 -2,108.4 -492.8 -524.3 -1,935.7 -2,769.7 -1,998.3 -687.3

-4,393.6 -6,429.0 -1,791.8 1,793.6 -2,027.7 -4,057.1 -1,696.5 705.2 -3,300.8 -339.4 -2,686.3 -6,385.5

177.3 264.6 562.7 890.2 546.6 547.1 597.0 621.0 431.7 -426.1 -91.7 -293.5

2,243.2 3,260.8 375.9 -5,757.2 2,737.4 -163.1 132.9 -7,841.8 -2,094.3 -3,955.6 -8,579.1 -6,259.7

-2,906.7 -2,324.7 -1,792.0 -665.8 -5,967.7 -4,536.1 -3,327.7 -826.9 -1,677.4 247.5 2,897.5 2,994.5

-3.0 3.5 -2.6 2.6 -4.3 -2.6 -6.3 11.2 -1.3 -1.1 -0.8 -4.2

2015p 1 2 3 4 5 6 7 8 9 10 11

-7,898.1 -5,175.2 -10,726.8 -9,802.8 -8,558.1 -10,310.5 -10,018.0 -9,052.5 -10,544.7 -11,086.1 -8,697.0

-659.2 -1,631.0 -2,096.0 -1,712.2 -949.9 -4,805.5 15.1 -328.1 -4,607.9 -3,501.4 -903.0

-3,623.7 -3,001.5 -1,213.2 -138.0 -358.3 -6,497.8 -8,277.2 -2,537.4 -4,281.6 -7,098.9 -5,128.8

-76.2 27.5 89.7 301.9 403.7 -244.2 -936.4 -1,618.6 -1,485.7 812.0 609.9

489.1 -371.2 -4,624.3 -4,851.0 -4,755.5 2,237.3 -1,792.3 -8,450.1 398.3 931.9 -1,662.4

-4,028.1 -199.0 -2,883.0 -3,403.5 -2,898.1 -1,000.3 972.8 3,881.7 -567.8 -2,229.7 -1,612.7

-13.0 -1.7 -8.4 -8.5 -1.5 -15.5 -29.9 1.1 0.9 -5.4 17.0

Period

Financial account

Direct investment

2012 2013 2014

-51,582.4 -80,104.6 -89,334.0

-21,136.2 -15,593.2 -18,765.6

2013 Ⅰ Ⅱ Ⅲ Ⅳ

-11,448.7 -19,645.6 -22,675.5 -26,334.8

2014 Ⅰ Ⅱ Ⅲ Ⅳ

Portfolio investment

p: Preliminary Source: Bank of Korea

January 2016

11. Prices Period

(2010=100)

All Items y-o-y change (%)

y-o-y change (%)

Producer prices All Items Commodities

Core

y-o-y change (%)

2012 2013 2014 2015

106.3 107.7 109.0 109.8

2.2 1.3 1.3 0.7

108.9 110.1 111.1 110.3

3.1 1.0 0.9 -0.7

104.2 105.8 107.4 109.4

1.4 1.5 1.6 1.8

104.9 106.6 108.8 111.1

1.6 1.6 2.0 2.2

107.5 105.7 105.2 101.0

0.7 -1.6 -0.5 -4.0

108.9 106.2 104.8 98.0

0.2 -2.5 -1.4 -6.4

2012 7 8 9 10 11 12

105.9 106.3 107.1 106.9 106.5 106.7

1.5 1.3 2.1 2.1 1.6 1.4

107.8 108.7 110.5 109.8 108.9 109.1

1.8 1.4 3.2 3.0 2.0 1.7

104.3 104.5 104.4 104.6 104.6 104.8

1.2 1.1 1.3 1.3 1.2 1.3

104.9 105.1 105.3 105.2 105.3 105.5

1.2 1.2 1.5 1.6 1.3 1.1

106.6 107.2 107.6 106.8 106.1 105.8

-0.6 -0.1 0.2 -0.5 -0.9 -1.2

107.6 108.6 109.2 107.8 106.8 106.4

-1.5 -0.9 -0.4 -1.4 -1.9 -2.3

2013 1 2 3 4 5 6 7 8 9 10 11 12

107.3 107.7 107.6 107.5 107.5 107.3 107.6 107.9 108.1 107.8 107.8 107.9

1.6 1.6 1.5 1.3 1.1 1.2 1.6 1.5 1.0 0.9 1.2 1.1

109.9 110.4 110.4 109.9 109.6 109.4 109.7 110.3 110.9 110.1 110.1 110.2

1.7 1.6 1.1 0.9 0.4 0.7 1.7 1.5 0.4 0.3 1.0 0.9

105.3 105.6 105.4 105.6 105.7 105.7 105.9 106.1 106.0 106.0 106.0 106.2

1.5 1.5 1.7 1.7 1.8 1.6 1.5 1.5 1.5 1.4 1.3 1.3

105.9 106.2 106.0 106.0 106.4 106.6 106.7 106.7 107.0 107.1 107.4 107.5

1.3 1.4 1.6 1.6 1.7 1.6 1.7 1.5 1.7 1.8 2.0 1.9

106.0 106.7 106.3 105.9 105.6 105.5 105.5 105.8 105.7 105.3 105.1 105.4

-1.6 -1.6 -2.4 -2.8 -2.6 -1.4 -1.0 -1.3 -1.8 -1.4 -0.9 -0.4

106.8 107.8 107.1 106.6 106.1 106.0 106.0 106.3 106.1 105.5 105.2 105.5

-2.5 -2.5 -3.7 -4.1 -3.8 -2.2 -1.6 -2.1 -2.8 -2.2 -1.5 -0.9

2014 1 2 3 4 5 6 7 8 9 10 11 12

108.5 108.8 109.0 109.1 109.2 109.1 109.3 109.5 109.4 109.1 108.8 108.8

1.1 1.0 1.3 1.5 1.7 1.7 1.6 1.4 1.1 1.2 1.0 0.8

110.9 111.4 111.6 111.3 111.5 111.2 111.2 111.4 111.5 110.6 110.2 110.1

0.9 0.9 1.1 1.3 1.7 1.7 1.4 1.0 0.5 0.5 0.2 0.0

106.6 106.7 107.0 107.3 107.5 107.4 107.7 107.9 107.8 107.8 107.7 107.8

1.3 1.1 1.5 1.6 1.6 1.6 1.7 1.7 1.7 1.7 1.6 1.6

107.7 108.0 108.3 108.5 108.8 108.9 109.1 109.2 109.1 109.1 109.1 109.3

1.7 1.7 2.1 2.3 2.2 2.1 2.2 2.4 1.9 1.8 1.6 1.6

105.6 105.8 105.7 105.6 105.5 105.6 105.7 105.6 105.2 104.5 104.1 103.1

-0.3 -0.9 -0.5 -0.3 0.0 0.1 0.2 -0.2 -0.5 -0.8 -0.9 -2.1

105.7 105.9 105.7 105.4 105.3 105.4 105.4 105.1 104.7 103.6 103.1 101.7

-1.0 -1.7 -1.3 -1.1 -0.7 -0.6 -0.5 -1.1 -1.4 -1.8 -2.0 -3.6

2015 1 2 3 4 5 6 7 8 9 10 11 12

109.4 109.4 109.4 109.5 109.8 109.8 110.0 110.2 110.0 110.1 109.9 110.2

0.8 0.5 0.4 0.4 0.5 0.7 0.7 0.7 0.6 0.9 1.0 1.3

110.9 110.6 110.3 110.1 110.6 110.7 110.3 110.5 110.2 109.9 109.7 110.1

-0.1 -0.7 -1.2 -1.1 -0.8 -0.5 -0.8 -0.8 -1.1 -0.6 -0.5 0.0

108.2 108.4 108.7 109.0 109.2 109.2 109.8 110.0 109.9 110.1 110.1 110.3

1.5 1.5 1.6 1.6 1.6 1.6 2.0 2.0 2.0 2.1 2.2 2.3

110.3 110.4 110.6 110.7 111.1 111.1 111.3 111.5 111.4 111.6 111.7 111.9

2.4 2.3 2.1 2.0 2.1 2.0 2.0 2.1 2.1 2.3 2.4 2.4

101.9 101.9 101.8 101.8 101.8 101.8 101.4 100.8 100.3 99.7 99.3 99.1

-3.6 -3.6 -3.7 -3.6 -3.5 -3.6 -4.0 -4.5 -4.6 -4.6 -4.7 -3.9

99.7 99.7 99.5 99.3 99.3 99.3 98.6 97.7 97.0 96.0 95.3 95.0

-5.8 -5.8 -5.9 -5.8 -5.7 -5.8 -6.4 -7.1 -7.3 -7.4 -7.6 -6.5

Source: Bank of Korea

Consumer prices Commodities Services

Statistical Appendices

12. Employment Period

Economically active persons (thousands)

y-o-y change (%)

Employed persons (thousands) All industry Manufacturing y-o-y y-o-y change (%) change (%)

Unemployment SOC & services rate (%) y-o-y change (%)

2012 2013 2014 2015

25,501 25,873 26,536 26,913

1.6 1.5 2.6 1.4

24,681 25,066 25,599 25,936

1.8 1.6 2.1 1.3

4,105 4,184 4,330 4,486

0.3 1.9 3.5 3.6

19,033 19,347 19,805 20,029

2.4 1.6 2.4 1.5

3.2 3.1 3.5 3.6

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

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

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

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

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

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

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 3.2 3.4 3.1 3.0 2.3 2.2 1.6 2.8 1.4 0.9 0.9

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

2013 1 2 3 4 5 6 7 8 9 10 11 12

24,901 24,973 25,397 25,928 26,195 26,291 26,301 26,074 26,186 26,268 26,230 25,736

1.3 0.6 0.7 1.1 1.0 1.4 1.5 1.7 1.7 1.9 2.3 2.4

24,054 23,984 24,514 25,103 25,398 25,478 25,473 25,291 25,466 25,545 25,530 24,962

1.4 0.8 1.0 1.4 1.1 1.4 1.5 1.7 1.9 1.9 2.4 2.3

4,189 4,139 4,141 4,192 4,175 4,180 4,167 4,116 4,174 4,218 4,253 4,264

3.9 1.9 3.1 4.1 2.6 2.3 1.3 0.1 0.5 0.7 0.8 2.0

18,810 18,736 18,989 19,303 19,492 19,531 19,577 19,438 19,540 19,558 19,670 19,514

1.0 0.7 0.6 1.0 1.0 1.5 1.6 2.1 2.2 2.2 3.0 2.7

3.4 4.0 3.5 3.2 3.0 3.1 3.1 3.0 2.7 2.8 2.7 3.0

2014 1 2 3 4 5 6 7 8 9 10 11 12

25,650 25,997 26,187 26,714 26,762 26,825 26,891 26,775 26,766 26,809 26,786 26,270

3.0 4.1 3.1 3.0 2.2 2.0 2.2 2.7 2.2 2.1 2.1 2.1

24,759 24,819 25,163 25,684 25,811 25,875 25,979 25,885 25,917 25,951 25,968 25,384

2.9 3.5 2.6 2.3 1.6 1.6 2.0 2.3 1.8 1.6 1.7 1.7

4,280 4,274 4,284 4,288 4,324 4,345 4,358 4,335 4,347 4,361 4,355 4,406

2.2 3.3 3.5 2.3 3.6 3.9 4.6 5.3 4.1 3.4 2.4 3.3

19,376 19,407 19,538 19,819 19,815 19,841 20,003 19,940 19,949 19,973 20,098 19,896

3.0 3.6 2.9 2.7 1.7 1.6 2.2 2.6 2.1 2.1 2.2 2.0

3.5 4.5 3.9 3.9 3.6 3.5 3.4 3.3 3.2 3.2 3.1 3.4

2015 1 2 3 4 5 6 7 8 9 10 11 12

26,094 26,398 26,577 26,954 27,211 27,255 27,303 27,064 27,129 27,137 27,082 26,747

1.7 1.5 1.5 0.9 1.7 1.6 1.5 1.1 1.4 1.2 1.1 1.8

25,106 25,195 25,501 25,900 26,189 26,205 26,305 26,141 26,264 26,298 26,253 25,879

1.4 1.5 1.3 0.8 1.5 1.3 1.3 1.0 1.3 1.3 1.1 2.0

4,421 4,433 4,400 4,455 4,464 4,478 4,528 4,491 4,512 4,552 4,545 4,552

3.3 3.7 2.7 3.9 3.2 3.1 3.9 3.6 3.8 4.4 4.4 3.3

19,693 19,716 19,832 20,004 20,179 20,161 20,250 20,153 20,249 20,248 20,353 20,266

1.6 1.6 1.5 0.9 1.8 1.6 1.2 1.1 1.5 1.4 1.3 1.9

3.8 4.6 4.0 3.9 3.8 3.9 3.7 3.4 3.2 3.1 3.1 3.2

Source: Statistics Korea

January 2016

13. Financial indicators Call rate (1 day)

CDs (91 days)

2011 7 8 9 10 11 12

3.3 3.3 3.3 3.2 3.3 3.3

3.6 3.6 3.6 3.6 3.6 3.6

4.5 4.2 4.2 4.3 4.2 4.2

3.8 3.6 3.5 3.5 3.4 3.4

4.0 3.7 3.6 3.6 3.5 3.5

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 11 12

2.8 2.8 2.7 2.8 2.6 2.5 2.5 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 2.7 2.7

3.2 3.1 3.0 2.9 3.0 3.2 3.4 3.3 3.3 3.3 3.4 3.4

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

2.9 2.8 2.7 2.6 2.7 3.1 3.2 3.2 3.2 3.1 3.2 3.3

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 2,044.87 2,011.34

2014 1 2 3 4 5 6 7 8 9 10 11 12

2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.3 2.2 2.1 2.0 2.0

2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.5 2.4 2.2 2.1 2.1

3.3 3.3 3.3 3.3 3.3 3.2 3.0 3.0 2.8 2.6 2.5 2.5

2.9 2.9 2.9 2.9 2.8 2.7 2.6 2.5 2.4 2.2 2.1 2.1

3.3 3.2 3.2 3.2 3.1 3.0 2.8 2.8 2.6 2.4 2.3 2.3

1,941.15 1,979.99 1,985.61 1,961.79 1,994.96 2,002.21 2,076.12 2,068.54 2,020.09 1,964.43 1,980.78 1,915.59

2015 1 2 3 4 5 6 7 8 9 10 11 12

2.0 2.0 1.8 1.7 1.7 1.6 1.5 1.5 1.5 1.5 1.5 1.5

2.1 2.1 2.0 1.8 1.8 1.7 1.7 1.6 1.6 1.6 1.6 1.7

2.4 2.3 2.1 2.0 2.1 2.0 2.0 2.0 2.0 2.0 2.1 2.1

2.0 2.0 1.9 1.7 1.9 1.8 1.8 1.7 1.7 1.6 1.8 1.7

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

1,949.26 1,985.80 2,041.03 2,127.17 2,114.80 2,074.20 2,030.16 1,941.49 1,962.81 2,029.47 1,991.97 1,961.31

Period

Source: Bank of Korea

(period average)

Yields (%) Corporate bonds (3 years, AA-)

Statistical Appendices

Treasury bonds (3 years)

Treasury bonds (5 years)

Stock KOSPI (endperiod)

14. Monetary indicators Reserve money

Period 2012 2013 2014

(period average, billion won)

y-o-y change (%)

Lf y-o-y change (%)

y-o-y change (%)

82,131.1 91,379.4 103,331.5

9.2 11.3 13.1

441,963.6 484,062.9 536,733.4

3.8 9.5 10.9

1,798,625.7 1,885,781.3 2,009,576.3

5.2 4.8 6.6

2,379,518.7 2,543,232.5 2,721,502.2

7.8 6.9 7.0

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

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

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

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

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

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

2,292,213.5 2,302,395.9 2,340,852.4 2,349,723.6 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

6.5 7.2 8.7 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 10 11 12

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 93,640.4 93,609.9 96,988.5

5.1 8.8 13.2 8.8 11.3 11.5 11.1 13.8 14.7 10.1 12.8 13.7

464,914.5 472,239.6 472,430.1 475,330.0 475,526.7 486,587.5 488,982.7 481,416.9 490,518.7 491,947.9 499,242.7 509,617.9

5.8 8.0 7.4 8.7 8.4 10.2 10.7 9.5 11.5 10.7 12.1 11.3

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 1,908,557.6 1,923,339.2 1,932,026.4

4.8 5.3 5.0 5.1 4.8 4.9 4.6 3.9 4.6 4.7 5.1 5.3

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 2,587,071.4 2,605,866.7 2,619,029.5

7.7 8.1 6.8 6.9 6.8 6.6 6.5 6.3 6.7 6.7 6.8 6.6

2014 1 2 3 4 5 6 7 8 9 10 11 12

98,541.6 100,547.9 100,624.0 98,898.5 101,791.4 101,412.3 101,164.2 107,682.4 105,354.1 107,117.5 106,667.9 110,175.6

14.8 13.2 12.4 12.7 13.5 11.2 11.6 14.9 10.7 14.4 13.9 13.6

515,742.5 518,475.5 520,299.0 518,809.3 523,069.9 532,041.2 534,028.8 538,640.3 548,550.8 551,416.0 562,006.2 577,721.1

10.9 9.8 10.1 9.1 10.0 9.3 9.2 11.9 11.8 12.1 12.6 13.4

1,937,045.6 1,954,340.7 1,964,954.0 1,970,361.6 1,982,390.9 1,999,376.3 2,013,935.1 2,031,777.2 2,037,600.8 2,051,149.8 2,083,253.5 2,088,729.8

5.2 5.2 5.5 5.5 6.0 6.1 6.5 7.6 7.1 7.5 8.3 8.1

2,635,100.1 2,647,674.0 2,659,443.2 2,669,341.4 2,684,643.9 2,703,088.1 2,725,737.6 2,743,972.5 2,759,390.8 2,776,968.0 2,817,698.0 2,834,968.4

6.7 6.4 6.4 6.2 6.6 6.7 6.9 7.3 7.1 7.3 8.1 8.2

2015 1 2 3 4 5 6 7 8 9 10 11

113,304.2 116,502.4 115,974.9 115,132.7 117,726.3 118,688.2 122,041.0 121,854.4 126,572.2 125,616.2 126,767.1

15.0 15.9 15.3 16.4 15.7 17.0 20.6 13.2 20.1 17.3 18.8

579,964.2 592,737.4 600,719.9 610,803.3 621,985.5 630,546.3 645,975.4 653,105.9 665,691.1 669,737.7 677,629.2

12.5 14.3 15.5 17.7 18.9 18.5 21.0 21.3 21.4 21.5 20.6

2,092,223.5 2,109,892.3 2,127,887.8 2,148,114.7 2,166,741.1 2,179,561.1 2,200,510.9 2,218,660.3 2,230,000.7 2,232,432.0 2,242,848.2

8.0 8.0 8.3 9.0 9.3 9.0 9.3 9.2 9.4 8.8 7.7

2,857,610.1 2,876,467.8 2,907,976.4 2,936,746.7 2,960,998.1 2,986,316.5 3,013,503.9 3,028,981.1 3,049,823.2 3,059,051.9 3,076,029.2

8.4 8.6 9.3 10.0 10.3 10.5 10.6 10.4 10.5 10.2 9.2

Source: Bank of Korea

January 2016

15. Exchange rates Period

Euro/ \

Won

y-o-y change (%)

Won

y-o-y change (%)

Won

y-o-y change (%)

2012 2013 2014 2015

1,071.1 1,055.3 1,099.2 1,172.0

-7.1 -1.5 4.2 6.6

1,247.5 1,004.7 920.1 972.0

-16.0 -19.5 -8.4 5.6

1,416.3 1,456.3 1,336.5 1,280.5

-5.2 2.8 -8.2 -4.2

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

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

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

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

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

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

2013 1 2 3 4 5 6 7 8 9 10 11 12

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 1,062.1 1,055.3

-3.8 -3.6 -2.3 -2.3 -4.2 -0.4 -2.0 -2.1 -3.8 -3.0 -2.1 -1.5

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 1,038.2 1,004.7

-19.3 -15.9 -14.5 -19.8 -25.0 -19.7 -21.9 -21.8 -23.8 -21.6 -21.4 -19.5

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 1,444.8 1,456.3

-0.6 -6.0 -5.8 -3.4 1.0 4.4 6.0 3.6 0.5 2.7 2.7 2.8

2014 1 2 3 4 5 6 7 8 9 10 11 12

1,079.2 1,067.7 1,068.8 1,031.7 1,021.6 1,014.4 1,024.3 1,013.6 1,050.6 1,054.0 1,101.1 1,099.2

-0.3 -1.6 -3.9 -6.9 -9.5 -11.8 -8.0 -8.8 -2.3 -0.7 3.7 4.2

1,043.7 1,044.8 1,038.7 1,005.3 1,004.2 1,000.0 995.7 977.6 960.2 964.1 933.9 920.1

-12.2 -11.2 -12.0 -11.2 -10.1 -14.3 -12.3 -13.4 -12.6 -10.5 -10.0 -8.4

1,473.6 1,463.6 1,469.4 1,425.0 1,389.6 1,384.2 1,371.8 1,336.2 1,333.3 1,328.8 1,372.2 1,336.5

0.3 2.7 3.1 -1.8 -5.6 -7.6 -7.1 -9.1 -8.1 -8.8 -5.0 -8.2

2015 1 2 3 4 5 6 7 8 9 10 11 12

1,090.8 1,099.2 1,105.0 1,068.1 1,108.0 1,124.1 1,166.3 1,176.3 1,194.5 1,142.3 1,150.4 1,172.0

1.1 3.0 3.4 3.5 8.5 10.8 13.9 16.1 13.7 8.4 4.5 6.6

921.3 920.7 920.3 897.2 894.6 917.2 939.3 970.1 996.8 944.1 936.7 972.0

-11.7 -11.9 -11.4 -10.8 -10.9 -8.3 -5.7 -0.8 3.8 -2.1 0.3 5.6

1,235.7 1,230.7 1,196.8 1,187.0 1,215.2 1,260.5 1,275.4 1,317.3 1,343.9 1,254.8 1,218.3 1,280.5

-16.1 -15.9 -18.6 -16.7 -12.6 -8.9 -7.0 -1.4 0.8 -5.6 -11.2 -4.2

Source: Bank of Korea

(end-period)

100ďżĽ/ \

US $/ \

Statistical Appendices

Traditional winter games Kite flying, Yutnori (a traditional board game) and top-spinning are some of the most popular Korean folk games played in the winter, usually between Lunar New Year's Day and Daeboreum (the first full moon of the year).

Useful websites Ministry of Strategy and Finance_http://english.mosf.go.kr Ministry of Trade, Industry and Energy_http://english.motie.go.kr 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

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ECONOMIC BULLETIN (Republic of Korea)

Republic of Korea

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Vol.38 No.1 January 2016

conomic u l l e t i n

Vol.38 No.1 January 2016

The Green Book: Current Economic Trends Policy Issue 2016 Work Report

Economic News Briefing

ECONOMIC BULLETIN

(Republic of Korea)

BOK Forecasts 3.0% Growth for 2016 FDI Posts Record High in 2015 Government to Work on Speeding Up Corporate Restructuring FX reserves amount to US $368.0 bn at end of 2015

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Statistical Appendices

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January 2016

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