201602

ISSN 2287-7266

ECONOMIC BULLETIN (Republic of Korea)

Republic of Korea

eb.kdi.re.kr

Vol.38 No.2 february 2016

conomic u l l e t i n

Vol.38 No.2 february 2016

The Green Book: Current Economic Trends Policy Issue Government Unveils New Round of Investment Boosting Measures

Economic News Briefing Korea to Increase Spending in Q1 Fitch Affirms Korea’s Sovereign credit Rating at AA‘Omnibus Account’ for Foreign Investors to be Introduced Korea Grows 0.6% in Q4

Statistical Appendices

ECONOMIC BULLETIN

(Republic of Korea)

For free subscriptions and enquiries, please contact: International Media Relations Division Ministry of Strategy and Finance Government Complex, 477 Galmae-ro

february 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

03

01. External economic situation

04

02. Private consumption

08

03. Facility investment

10

04. Construction investment

12

05. Exports and imports

15

06. Mining and manufacturing production

17

07. Service sector activity

19

08. Employment

21

09. Financial markets

25

9.1 Stock market

25

9.2 Exchange rate

26

9.3 Bond market

27

9.4 Money supply & money market

27

10. Balance of payments

29

11. Prices

31

11.1 Consumer prices

31

11.2 International oil and commodity prices

33

12. Real estate market

35

12.1 Housing market

35

12.2 Land market

38

13. Composite indices of business cycle indicators

contents

40

42 Policy Issue Government unveils new round of investment boosting measures

45 Economic News Briefing Korea to increase spending in Q1 Fitch affirms Korea’s sovereign credit rating at AAKorea responds to lifting of Iran sanctions Neither global market jitters nor North’s threat can damage Korean economy Korean FDI rises 15% in 2015 ‘Omnibus account’ for foreign investors to be introduced Government unveils its 2016 international economic affairs policies of supporting exports Korea grows 0.6% in Q4 (Advanced)

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

Production and investment improved somewhat from the previous month’s fall, while domestic demand, consumption in particular, continued to increase.

The economy added jobs at a faster rate year-on-year in December 2015, from 285,000 jobs in the previous month to 495,000 jobs, as domestic demand continued to improve and the agricultural, forestry, fishery and construction sectors, which slowed down due to unfavorable weather conditions, picked up.

Consumer price inflation rose at a slower rate year-on-year in January 2016, from 1.3 percent in the previous month to 0.8 percent, due to the low natural gas utilities prices and as the impact of high cigarette prices has diminished.

Mining and manufacturing production, despite weak exports, rebounded in December from a 2.1 percent fall to a 1.3 percent rise, as regular maintenance in oil refineries had been completed.

In December, service output stayed unchanged month-on-month and retail sales slightly fell due to a high base effect, down 0.1 percent. Year-on-year, the two indexes improved 3.0 percent and 3.5 percent, respectively.

Facility investment rose for the first time in three months in December, improving significantly from a 5.4 percent drop in the previous month to a 6.1 percent rise, backed by strong transportation equipment.

Construction completed soared from a 0.7 percent decline to a 7.1 percent increase, led by civil engineering works.

Both the cyclical indicator of the coincident composite index and the cyclical indicator of the leading composite index declined in December, down 0.1 points and 0.5 points, respectively.

Exports continued to fall in January, down 18.5 percent year-on-year, amid low international oil prices and due to temporary factors, such as fewer days worked (down 1day) and weak vessel exports, which usually fluctuate monthly.

In January, stock prices fell amid China’s financial market instability, 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 in January, but at a slower pace, rising 0.04 percent and 0.14 percent month-on-month, respectively.

The Korean economy has to deal with rising external uncertainties, such as China’s slowdown and financial market volatility, the Fed’s rate increase, falling oil prices and North Korean risks.

In order to maintain the recovery momentum gathered backed by strong domestic consumption, the government has increased its first quarter spending by more than 21 trillion won through the frontloading of public sector spending, and has extended the sales tax cut for vehicles.

February 2016

03

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.

1. External economic situation

The global economic recovery slowed as US growth weakened in the fourth quarter of 2015 and sluggish recoveries in Japan and the eurozone as well as economic slowdowns in China and other emerging economies continued.

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

US

The US economy grew 0.7 percent (advanced estimates, annualized q-o-q) in the fourth quarter, marking a slowdown from the previous quarter, due to warm weather, but economic growth is forecast to recover backed by an improving labor market.

Industrial production fell 0.4 percent month-on-month in December, and the ISM Manufacturing Index for January 2016 remained weak due to the strong dollar and sluggish global demand.

ISM Manufacturing Index (base=50) 53.1 (May 2015) → 53.1 (Jun) → 51.9 (Jul) → 51.0 (Aug) → 50.0 (Sep) → 49.4 (Oct) → 48.4 (Nov) → 48.0 (Dec) → 48.2 (Jan 2016)

Retail sales fell 0.1 percent in December, impacted by warm weather, while the Conference Board Consumer Confidence Index for January rose to 98.1.

University of Michigan Consumer Sentiment Index (1966=100) 90.7 (May 2015) → 96.1 (Jun) → 93.1 (Jul) → 91.9 (Aug) → 87.2 (Sep) → 90.0 (Oct) → 91.3 (Nov) → 92.6 (Dec) → 92.0 (Jan 2016)

04

The Green Book : Current Economic Trends

Conference Board Consumer Confidence Index (1985=100) 94.6 (May 2015) → 99.8 (Jun) → 91.0 (Jul) → 101.3 (Aug) → 102.6 (Sep) → 99.1 (Oct) → 92.6 (Nov) → 96.3 (Dec) → 98.1 (Jan 2016) (Percentage change from previous period)

2013

2014

Annual Annual

Real GDP1 - Personal consumption expenditure - Nonresidential fixed investment - Residential fixed investment Industrial production Retail sales Existing home sales Unemployment rate² Consumer prices (y-o-y)

1.5 1.7 3.0 9.5 1.9 3.9 9.0 7.4 1.5

2.4 2.7 6.2 1.8 3.7 3.9 -3.0 6.2 1.6

Q4 2.1 4.3 0.7 10.0 1.2 0.6 0.1 5.7 1.2

Annual

2.4 3.1 2.9 5.8 1.3 2.1 6.3 5.3 0.1

Q1 0.6 1.8 1.6 10.1 -0.1 -1.1 -1.7 5.6 -0.1

Q2 3.9 3.6 4.1 9.3 -0.6 1.7 6.5 5.4 0.0

2015 Q3 Q4 2.0 0.7 3.0 2.2 2.6 -1.8 8.2 8.1 0.7 -0.9 1.1 0.2 3.4 -5.4 5.2 5.0 0.1 0.4

Oct Nov -0.2 -0.9 0.0 0.4 -4.1 -10.5 5.0 5.0 0.2 0.5

Dec -0.4 -0.1 14.7 5.0 0.7

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)

Existing home sales and new home sales grew month-on-month in December partly due to a low base effect, up 14.7 percent and 10.8 percent, respectively, and home price growth continued to accelerate.

Case-Shiller Home Price Index (y-o-y, %) 4.9 (Apr 2015) → 4.9 (May) → 4.9 (Jun) → 4.8 (Jul) → 5.0 (Aug) → 5.3 (Sep) → 5.5 (Oct) → 5.8 (Nov) New home sales (m-o-m, %) -11.0 (Mar 2015) → 4.7 (Apr) → 1.0 (May) → -8.6 (Jun) → 6.6 (Jul) → 1.4 (Aug) → -9.9 (Sep) → 5.5 (Oct) → 1.9 (Nov) → 10.8 (Dec)

The unemployment rate fell to 4.9 percent in January, the lowest since February of 2008, while nonfarm payrolls increased by 151,000 jobs, adding fewer jobs than the previous month.

February 2016

05

Nonfarm payroll increase (m-o-m, thousands) 245 (Jun 2015) → 223 (Jul) → 153 (Aug) → 145 (Sep) → 295 (Oct) → 280 (Nov) → 262 (Dec) → 151 (Jan 2016)

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

(thousands)

12

(%)

600 10 400 200

8

0 6 -200 -400

4

-600 2 -800 -1,000

0

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

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

2015.1

2016.1

Unemployment rate (right)

China

China’s economy grew 6.8 percent in the fourth quarter of 2015, at a slower pace than the previous quarter, as slowing exports and investment offset increasing consumption. China’s economy grew 6.9 percent in 2015.

China’s foreign currency reserves totaled US $3.23 trillion in January, the lowest in three years and eight months, as the country stepped up its currency intervention.

Manufacturing PMI (base=50) 49.7 (Aug 2015) → 49.8 (Sep) → 49.8 (Oct) → 49.6 (Nov) → 49.7 (Dec) → 49.4 (Jan 2016)

China’s GDP growth and fixed asset investment 16

Source: China National Bureau of Statistics

(%)

(%)

60

14

50

12

40

10

30

8

20

6

10

4

0

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

GDP (y-o-y, left)

06

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

2014 Annual Annual Q4 Annual Q3 7.7 7.7 7.7 7.3 7.3 10.0 9.7 10.0 8.3 8.0

Real GDP Industrial production Fixed asset investment (accumulated, nominal) Retail sales (nominal) Exports Consumer prices1 Producer prices1

2013

Q4 Annual Q1 6.9 7.3 7.0 6.1 6.4 7.6

Q2 7.0 6.3

2015 Q3 Q4 6.9 6.8 5.9 5.9

Oct 5.6

Nov 6.2

Dec 5.9

20.6

19.6

19.6

15.7

16.1 15.7

10.7

13.5 11.4 10.3 10.0 10.2 10.2 10.0

14.3 8.4 2.7 -1.7

13.1 8.6 2.6 -1.9

13.5 7.5 2.9 -1.4

12.0 5.5 2.0 -1.9

11.9 11.7 13.0 8.6 2.0 1.5 -1.3 -2.7

10.0 -2.5 1.4 -5.2

10.6 10.2 10.7 11.1 11.0 11.2 11.1 4.7 -2.1 -5.9 -5.0 -6.9 -6.8 -1.4 1.2 1.4 1.7 1.5 1.3 1.5 1.6 -4.6 -4.8 -5.7 -5.9 -5.9 -5.9 -5.9

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

Japan

The Japanese economy slowed in December as major economic indicators fell, and stock prices plunged as the yen continued to gain strength despite additional monetary easing.

The Bank of Japan decided to introduce negative interest rates at a monetary policy meeting in January.

Consumer prices rose 0.2 percent year-on-year in December, staying below 1 percent for the ninth consecutive month.

(Percentage change from previous period)

2012

2013 Q4 Annual Q1 1.6 -0.2 -0.1 1.1 -0.6 1.8 2.1 2.3 1.2 1.4 1.7 3.8 9.5 17.4 4.8 6.6 0.4 1.4 2.7 1.5

Annual Annual

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

1.8 0.2 1.5 -2.7 -0.0

2014 Q2 -1.9 -3.1 -7.2 0.1 3.6

Q3 -0.3 -1.3 3.9 3.2 3.3

Q4 0.3 0.8 1.0 9.1 2.6

Q1 1.1 1.6 -2.1 9.0 2.3

2015 Q3 Oct 0.3 -1.2 1.4 1.8 1.2 3.7 -2.2 0.1 0.3

Q2 -0.1 -1.4 0.2 6.7 0.5

Nov -0.9 -2.5 -3.3 0.3

Dec -1.4 -0.2 -8.0 0.2

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

Japan’s GDP growth and industrial production 6

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

(%)

(%)

4

25 20 15 10

2

5 0

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)

February 2016

07

Eurozone

Eurozone’s financial market volatility increased due to growing concerns about nonperforming loans, while the economy continued to steadily recover backed by accommodative monetary policy and low oil prices.

Manufacturing PMI (base=50) 52.2 (May 2015) → 52.5 (Jun) → 52.4 (Jul) → 52.3 (Aug) → 52.0 (Sep) → 52.3 (Oct) → 52.8 (Nov) → 53.2 (Dec) → 52.3 (Jan 2016) (Percentage change from previous period)

2013 Real GDP Industrial production Retail sales Exports (y-o-y) Consumer prices (y-o-y)

2014

Annual

Annual

-0.3 -0.7 -0.8 1.0 1.4

0.9 0.8 1.2 2.2 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

Annual

2.4 0.0

Q2 0.4 -0.1 0.5 8.2 0.2

Q3 0.3 0.2 0.6 4.3 0.1

Q4 -0.1 0.2

Oct 0.8 -0.2 0.4 0.1

Nov -0.7 0.0 6.1 0.1

Dec 0.3 0.2

Sources: Eurostat, Bloomberg

Eurozone’s GDP growth and industrial production 3

Source: Eurostat

(%)

10

(%)

8

2

6 4

1

2 0

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 fourth quarter of 2015 (advanced estimates of GDP) grew 1.5 percent compared to the previous quarter and rose 3.2 percent compared to a year ago.

(Percentage change from previous period)

Private consumption² (y-o-y)

2013 Annual Q3 1.9 1.1 1.9

Q4 0.6 2.2

Annual¹

1.8 -

Q1¹ 0.4 2.6

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

08

The Green Book : Current Economic Trends

2014 Q2¹ -0.4 1.7

Q3¹ 0.8 1.5

Q4¹ Annual¹ 0.5 2.1 1.4 -

Q1¹ 0.6 1.5

2015 Q2¹ -0.2 1.7

Q3¹ 1.2 2.1

Q4¹ 1.5 3.2

Private consumption 12

Source: Bank of Korea (national accounts)

(%)

10 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 December fell 0.1 percent month-on-month as sales of durable goods (up 3.8%), such as automobiles, increased while sales of semi-durable goods (down 5.0%), such as clothing, and nondurable goods (down 0.4%), such as food, decreased. The index rose 3.5 percent compared to the same period of the previous year.

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)

2013 Annual Annual

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

0.7 0.3 2.1 2.1 0.4

1.7 5.1 16.6 -0.6 0.8

2014 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

Annual¹

3.4 10.1 20.3 -1.1 1.8

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

Q3 1.1 3.1 0.4 1.5 1.1 1.5

2015 Q4¹ 3.6 5.7 10.0 16.2 4.1 -0.3

Oct 3.2 8.3 8.2 3.2 7.9 -1.6

Nov¹ Dec¹ -1.0 -0.1 5.6 3.5 -0.2 3.8 6.9 12.4 -2.9 -5.0 -0.6 -0.4

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

February 2016

09

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 January 2016, sales at department stores and large discount stores continued to increase year-on-year along with sales of gasoline and credit card use, while domestic sales of cars decreased. (percentage change from same preriod in previous year)

2015 Sep

Dec

2016 Jan

9.8

8.5

10.1

4.1

-3.8

9.6

-0.6

-2.1

13.4

10.0

4.8

4.3

8.5

22.7

16.3

17.7

-4.5

Jun

Jul

Aug

Oct

Credit card use

8.6

14.5

10.3

14.8

13.1

Department store sales

-6.0

5.7

1.2

14.1

17.4

Large discount store sales

-4.4

2.5

-4.8

10.0

1.6

Domestic sales of gasoline and diesel

1.0

0.7

10.8

10.4

Domestic sales of cars

9.4

3.5

14.9

15.5

Nov

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

3. Facility investment

Facility investment (advanced estimates of GDP) rose 0.9 percent quarter-on-quarter and 3.5 percent year-on-year in the fourth quarter of 2015.

(Percentage change from previous period)

2013 Annual Annual¹

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

-0.8

5.8

Q1¹ -1.4

Q3¹ 0.2

Q4¹ 4.0

Annual¹

5.2

Q1¹ 0.2

2015 Q2¹ 0.5

Q3¹ 1.8

Q4¹ 0.9

-

-

7.2

7.7

4.2

4.2

-

5.8

5.0

6.6

3.5

-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

10

2014 Q2¹ 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

2014.Q1

Facility investment (q-o-q)

2015.Q1

Facility investment (y-o-y)

The facility investment index in December rose 6.1 percent month-on-month as transportation equipment investment increased, despite a decline in machinery investment. The index fell 1.0 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

2014 Q3 -0.9 1.5 -0.8 -1.4

Q4 8.6 5.4 11.7 1.5

Annualยน

6.2 2.7 15.2

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

Q41 0.1 1.7 -2.2 4.7

Nov1 -5.4 -4.9 -1.2 -14.0

Dec1 6.1 -1.0 -3.1 29.7

1. Preliminary Source: Statistics Korea

Facility investment is expected to increase taking into account an increase in machinery orders, but the index may be negatively affected by weak business sentiment and low facility investment adjustment pressure.

February 2016

11

Business survey index for manufacturing sector (prospects, Bank of Korea) 82 (May 2015) → 76 (Jun) → 67 (Jul) → 70 (Aug) → 71 (Sep) → 70 (Oct) → 70 (Nov) → 69 (Dec) → 68 (Jan 2016) → 66 (Feb) Aircraft and vessel imports (US $ million, Korea Customs Service) 510 (Aug 2015) → 850 (Sep) → 870 (Oct) → 420 (Nov) → 500 (Dec) → 440 (Jan 2016)

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

(trillion won)

70

(y-o-y, %)

60

9

50 40

8

30 7

20 10

6

0 5

-10 -20

4

-30 3

-40

2

-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 Q3

Q4

Annual¹

Q1

Q2

2015 Q3

Q4¹

Nov¹

Dec¹

49.4

-6.3

-3.1

-2.6

15.7

-26.6

7.3

-14.7

35.6

-

6.2

1.4

-13.1

14.1

-7.2

20.6

-66.9

61.7

-85.3

-19.9

Domestic machinery orders

6.6

14.8

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

-

-

- Public

20.5

94.2

- Private

5.1

4.8

7.7

-2.0

10.6

12.0

13.2

5.3

11.3

-7.3

29.2

Machinery imports

1.1

5.8

1.7

7.0

0.3

8.5

-1.1

2.3

-6.4

-16.7

-9.1

Average manufacturing operation ratio

76.5

76.1

76.0

75.1

74.2

74.4

74.2

74.7

73.5

72.8

73.8

Facility investment adjustment pressure²

-0.9

-1.5

-0.5

-3.5

-1.6

-2.5

-2.7

-1.1

-0.5

-0.8

-2.3

45.2 -26.0

418.5 -27.6 -61.7

-46.9 113.7

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 fourth quarter of 2015 (advanced estimates of GDP) fell 6.1 percent quarter-on-quarter but rose 7.3 percent year-on-year.

12

The Green Book : Current Economic Trends

(Percentage change from previous period)

2013 Annual Annual¹

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

5.5 11.2 -2.5

1.0 4.4 -4.4

Q1¹ 5.3 4.1 3.2 8.9

2014 Q2¹ 0.5 0.2 3.1 -3.8

Q3¹ 0.9 2.3 2.4 -1.8

Q4¹ -7.8 -1.5 -7.3 -8.8

Annual¹

4.0 -

Q1¹ 7.4 0.6 4.5 12.7

2015 Q2¹ 1.6 1.6 4.6 -3.6

Q3¹ 5.0 5.7 7.5 0.1

Q4¹ -6.1 7.3 -

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

Construction investment 20

Source: Bank of Korea (national accounts)

(%)

15

10

5

0

-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 December rose 7.4 percent month-on-month as both building construction and civil engineering works increased. The index rose 12.2 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

February 2016

13

(Percentage change from previous period)

2013

2014 Annual Annual Q3 Construction completed (constant) 10.2 -0.8 -2.7 (y-o-y) -1.9 - Building construction 15.1 7.8 -3.8 - Civil engineering works 4.4 -12.3 -0.8

Q4 -3.9 -5.9 -3.7 -4.2

Annual¹

2.1 5.7 -4.0

Q1 4.8 -2.0 5.0 4.5

Q2 -2.7 -3.9 -1.5 -4.7

2015 Q3 7.5 5.9 10.6 2.2

Q41 -1.5 7.8 1.7 -7.5

Nov1 -0.7 5.9 0.3 -2.7

Dec1 7.4 12.2 2.2 18.5

1. Preliminary Source: Statistics Korea

Construction investment outlooks are mixed: Building permits increased, while new apartment supply and shipments of intermediate goods declined.

New apartment supply (thousands, Real Estate 114) 31¹ (H1 2015) → 46¹ (Q3) → 64 (Oct) → 76 (Nov) → 58 (Dec) → 8 (Jan 2016) 1. Monthly average

Domestic shipments of cement (million tons) 4.08 (Jul 2015) → 3.97 (Aug) → 4.03 (Sep) → 4.38 (Oct) → 4.18 (Nov) → 4.61 (Dec) → 3.01 (Jan 2016)

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)

2013 Annual Annual

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

-12.9 -10.2 -18.2 -7.3

15.3 24.5 -4.4 11.2

2014 Q3 42.8 22.0 61.8 -6.2 14.7

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

14

The Green Book : Current Economic Trends

Q4 Annual¹ Q1 -7.5 48.3 55.4 -29.0 50.9 -5.0 49.8 87.7 -13.1 44.2 -1.5 -4.6 34.3 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

Q41 40.2 -27.7 37.6 46.7 40.4

Nov1 105.6 18.0 114.2 86.4 47.3

Dec1 9.8 -38.6 -8.6 52.0 34.5

5. Exports and imports

Exports in January 2016 (preliminary) declined 18.5 percent year-on-year to US $36.74 billion.

Exports fell at a faster pace in January compared with the previous month, due to falling oil prices (down 41.5% y-o-y, US $46 → US $27 per barrel), a decrease in vessel exports (US $4.4 billion → US $3.0 billion) and fewer days worked (down 1 day).

Shipments of major items continued to fall, with shipments to most regions declining, excluding the EU. Export growth by region (y-o-y, %) 7.3 (EU), -9.2 (US), -18.2 (Japan), -19.7 (ASEAN countries), -21.5 (China), -31.1 (Middle East), -35.7 (Latin America) Export growth by item (y-o-y, %) -7.3 (mobile phones), -13.6 (semiconductors), -18.8 (petrochemicals), -19.9 (steel), -21.5 (automobiles), -32.3 (vessels), -35.6 (petroleum products)

Average daily exports, an indicator adjusted to days worked, fell to US $1.63 billion in January.

Average daily export growth (US $ billion) 1.92 (Jan 2015) → 1.95 (Mar) → 2.06 (May) → 1.83 (Jul) → 2.02 (Sep) → 1.93 (Nov) → 1.77 (Dec) → 1.63 (Jan 2016)

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

2008.1

Export growth rate

2009.1

2010.1

2011.1

2012.1

Semiconductors

2013.1

2014.1

2015.1

2016.1

Automobiles

Steel

(US $ billion)

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

2013

2014

2015

Annual

Annual

Annual

559.63 2.1 2.05

572.66 2.3 2.11

526.90 -8.0 1.93

Q1 133.40 -3.0 2.01

Q2 135.10 -7.3 1.99

Q3 128.24 -9.5 1.87

Q4 130.15 -11.9 1.86

Jan 45.11 -1.0 1.92

2016 Jan1 36.74 -18.5 1.63

1. Preliminary Source: Korea Customs Service

February 2016

15

Imports in January (preliminary) fell 20.1 percent year-on-year to US $31.42 billion.

Imports fell at a faster pace in January compared with the previous month (down 19.2% → 20.1%) as commodities and capital goods imports continued to decline, and consumer goods turned negative.

Import growth by category (Dec 2015 → Jan 2016, y-o-y, %) -26.8 → -28.9 (commodities), -15.8 → -13.1 (capital goods), 4.0 → -2.9 (consumer goods) (US $ billion)

Imports

2013

2014

Annual

Annual

Annual

Q1

Q2

2015 Q3

Q4

Jan

2016 Jan1

515.59

525.51

436.55

111.74

110.48

108.03

106.29

39.30

31.42

(y-o-y, %)

-0.8

1.9

-16.9

-15.6

-15.6

-18.7

-17.8

-12.2

-20.1

Average daily imports

1.89

1.94

1.60

1.68

1.62

1.58

1.52

1.67

1.40

1. Preliminary Source: Korea Customs Service

Imports by category 100

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

(y-o-y, %)

80 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

2016.1

Capital goods

The trade balance (preliminary) posted a surplus of US $5.33 billion in January, staying in the black for the 48th consecutive month. Surpluses decreased compared with the previous month.

(US $ billion)

Trade balance

2013

2014

2015

Annual

Annual

Annual

Q1

Q2

Q3

Q4

Jan

Jan1

44.05

47.15

90.35

21.66

24.63

20.21

23.86

5.81

5.33

1. Preliminary Source: Korea Customs Service

16

The Green Book : Current Economic Trends

2016

Exports and imports

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

60 (US $ billion) 50

40

30

20

10

0

-10 2006.1

2007.1

2008.1

2009.1

2010.1

Trade balance

2011.1

2012.1

2013.1

2014.1

2015.1

Exports

2016.1

Imports

6. Mining and manufacturing production

Mining and manufacturing production rose 1.3 percent month-on-month in December 2015 due to improved chemical products and refined petroleum, despite weak communications equipment and electronic parts. Compared to the same period of the previous year, the index fell 1.9 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)

February 2016

17

Compared to the previous month, production of chemical products (up 4.7%), refined petroleum (up 7.3%) and semiconductors (up 5.2%) rose, while communications equipment (down 13.8%), electronic parts (down 3.8%) and audio-visual equipment (down 16.3%) fell.

Compared to a year ago, production of semiconductors (up 29.7%), refined petroleum (up 6.0%) and chemical products (up 2.7%) rose, while electronic parts (down 14.8%), mechanical equipment (down 11.9%) and processed metals (down 7.9%) declined.

(Percentage change from previous period)

2013

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

2014 Annual Annual Q3 0.1 0.7

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

0.0

1.2

Q4 Annual¹ Q1 -0.9 -0.1

Q2 -0.9

2015 Q3 1.6

Q4¹ -0.6

Nov¹ Dec¹ -2.1 1.3

-1.9

-1.5

-0.2

0.0

-0.1

-0.6

-0.9

-1.9

-

-

0.1

-1.0

-

0.0

-1.0

1.5

-0.3

-2.2

1.5

0.7

0.1

1.2

-1.9

-0.6

-1.0

-1.4

-0.4

0.1

-0.1

-1.8

0.7

0.0

-0.4

0.0

-0.3

-0.6

-0.7

2.0

-0.3

-2.0

1.3

-0.8

0.3

-0.9

-0.8

0.5

0.5

0.5

0.9

-0.2

-0.8

0.8

- Exports

2.6

-0.4

0.1

1.1

-1.0

-2.0

-2.1

3.2

-0.3

-3.6

2.0

Inventory³

4.4

-1.8

0.9

-2.2

4.3

3.5

3.3

2.9

-5.8

-1.0

-3.0

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

76.5

76.1

76.0

75.1

74.2

74.4

74.2

74.7

73.5

72.8

73.8

1.6

1.6

1.7

1.6

1.0

1.5

1.3

0.7

0.6

0.7

0.5

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

The manufacturing inventory-shipment ratio fell 5.4 percentage points month-on-month to 122.7 percent as inventories dropped 3.0 percent and shipments increased 1.3 percent.

Shipment and inventory

Source: Statistics Korea (industrial activity trends)

10 (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

18

The Green Book : Current Economic Trends

2011.1

2012.1

2013.1

2014.1

2015.1

Inventory growth

Inventories of refined petroleum (up 4.3%), rubber and plastics (up 2.4%) and medical, precision and optical instruments (up 3.9%) rose, while semiconductors (down 11.8%), automobiles (down 6.3%) and electronic parts (down 6.9%) declined.

Shipments of automobiles (up 4.3%), refined petroleum (up 6.1%) and electrical equipment (up 9.1%) rose, while communications equipment (down 19.2%), electronic parts (down 4.0%) and audio-visual equipment (down 10.8%) fell.

The average operation ratio of the manufacturing sector rose 1.0 percentage points month-on-month to 73.8 percent.

Average manufacturing operation ratio 100

Source: Statistics Korea (industrial activity trends)

(%)

90

80

70

60

50 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

The mining and manufacturing production outlook for January 2016 is mixed as there are both positive factors, such as a production hike ahead of the release of new mobile phone models, and negative factors, such as struggling exports and weak corporate and consumer confidence amid rising global uncertainties.

7. Service sector activity

Service output in December 2015 stayed unchanged month-on-month and increased 3.0 percent yearon-year.

Business services (up 1.5%, m-o-m) rose for four consecutive months, and transportation services (up 2.9%, m-o-m), education services (up 0.2%, m-o-m) and entertainment, cultural & sports services (up 6.0%, m-o-m) increased.

Meanwhile, wholesale & retail (down 1.0%, m-o-m), hotels & restaurants (down 2.0%, m-o-m) and real estate & renting (down 0.4%, m-o-m) continued to decrease.

February 2016

19

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 100.0 - Wholesale & retail 21.6 - Transportation services 8.5 - Hotels & restaurants 7.2 - Publishing & communications services 8.4 - Financial & insurance services 14.7 - Real estate & renting 5.3 - Professional, scientific & technical services 5.6 - Business services 3.3 - Education services 10.9 - Healthcare & social welfare services 7.5 - Entertainment, cultural & sports services 2.9 - Membership organizations & personal services 3.6 - Sewerage & waste management 0.6

2013

2014

Annual Annual Q4

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

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

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

Annual1

2.9 1.6 1.7 -1.8 -0.4 8.9 7.2 -0.6 3.6 0.5 6.2 0.9 -0.6 7.2

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

2015 Q2 Q3 Q41 Oct -0.1 1.4 1.3 0.3 0.0 0.7 2.7 2.1 -3.2 1.7 2.9 0.0 -3.3 1.8 1.3 0.2 -0.6 4.7 0.4 -1.0 1.9 1.6 0.2 -0.6 7.3 0.7 -0.9 1.9 -0.3 2.5 -1.0 -4.6 0.5 -0.8 3.4 2.2 -0.8 0.1 1.0 2.2 -0.9 1.6 3.7 -0.9 -4.2 1.4 3.8 2.7 2.1 0.1 -4.4 -3.6 3.2 6.1 -6.8 -9.1

Nov1 0.3 -1.5 -0.5 -1.1 -0.5 3.0 -1.3 3.2 0.7 -0.7 2.0 -2.3 1.2 -1.0

Dec1 0.0 -1.0 2.9 -2.0 1.1 -1.2 -0.4 -1.2 1.5 0.2 0.8 6.0 -1.0 6.8

1. Preliminary Source: Statistics Korea

Wholesale & retail 20

Source: 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)

20

The Green Book : Current Economic Trends

2011.1

2012.1

2013.1

2014.1

2015.1

Wholesale & retail (y-o-y)

December 2015 service output by business 14 12

Source: Statistics Korea (industrial activity trends)

(y-o-y, %)

10 8

Total index

6 4

Transportation services

Health & social welfare services

Business services

Real estate & renting

Publishing & communications services

Membership organizations & personal services

2 0 -2

Wholesale & retail

-4 -6

Financial & insurance services

Hotels & restaurants

-8

Professional, scientific & technical services

Education services

Entertainment, cultural & sports services

Sewerage & waste management

-10 -12

In January 2016, automobile sales fell year-on-year, but sales at department stores and large discount stores accelerated, which suggests a mixed outlook for January service output.

The volume of average daily stock transactions increased month-on-month.

Average daily stock transactions (trillion won) 8.1 (Mar 2015) → 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) → 8.3 (Jan 2016)

8. Employment

The number of workers on payroll in December 2015 increased by 495,000 from a year earlier to 25,880,000, and the employment rate rose 0.6 percentage points to 65.9 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 increased, while self-employed workers decreased.

Number of persons employed and employment growth 1,000

Source: Statistics Korea (employment trends)

(thousands)

(millions)

800

27 26

600

25

400 24 200 23

0

22

-200 -400 2006.1

21 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)

February 2016

21

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

80

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

69.9

70.2

70.2

70.1

70.6

71.2

6.8

6.7

6.8

6.9

7.1

7.1

7.1

7.0

7.1

7.1

7.2

7.2

7.0

6.9

7.0

7.1

7.1

7.1

7.1

7.0

7.0

6.9

7.0

7.1

17.3

17.2

17.0

16.7

16.8

16.8

16.8

16.7

16.8

16.8

16.8

17.4

17.6

17.6

17.3

17.2

17.0

17.1

17.2

17.2

17.2

17.4

17.3

17.6

4.5 0 4.4 2014.1 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 3.9 4.1 12 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

4.0 12

60

40

20

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

5.0

5.0

5.0

4.9

4.9

4.7

4.1

4.0

4.1

4.3

4.5

4.6

4.7

4.7

4.6

4.6

4.6

4.4

(%) 3.9

22.1

22.0

22.3

22.2

22.1

22.1

22.1

22.4

22.2

22.1

21.9

21.5

21.5

21.5

21.9

21.8

21.8

21.6

21.5

21.5

21.3

21.2

21.0

20.8

6.3

6.0

5.7

6.0

6.1

6.1

6.0

5.8

6.1

6.2

6.4

6.2

6.0

6.0

5.7

6.2

6.5

6.2

6.1

5.9

5.9

5.8

5.7

5.9

60 19.2

19.4

19.6

19.7

19.7

19.5

20.1

19.7

19.8

19.7

19.7

19.7

19.5

19.4

19.5

19.4

19.3

19.5

19.7

19.5

19.7

19.8

20.2

19.8

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

49.0

48.5

48.1 47.8

47.9

48.0

48.5

48.6

48.7

48.7

49.7

2014.1

2

3

4

5

6

7

8

9

10

11

2

3

6

7

8

9

10

11

12

80

40

20

0

Unpaid family workers

22

Self-employed workers

12 2015.1

Daily workers

The Green Book : Current Economic Trends

4

5

Temporary workers

Permanent workers

2011 2012 2013

2014 Q4

Annual Annual Annual Annual Q3

Number of employed (millions)

Dec Annual Q1

2015 Q3

Q2

Q4

Nov Dec

24.24 24.68 25.07 25.60 25.93 25.77 25.38 25.94 25.27 26.10 26.24 26.14 26.25 25.88

Employment rate (%)

59.1 59.4 59.5 60.2 60.9 60.4 59.4 60.6 59.0 60.7 60.9 60.5 60.8 59.9

(Seasonally adjusted)

59.1 59.4 59.5 60.2 60.3 60.3 60.3 60.3 60.5 59.9 60.3 60.5 60.3 60.8

Employment growth (y-o-y, thousands)

415

437

386

533

517

422

422

337

354

308

310

376

285

495

(Excluding agriculture, forestry & fisheries)

440

451

394

601

638

531

516

444

441

435

419

482

453

522

- Manufacturing

63

14

79

146

194

129

142

156

139

147

164

176

190

146

- Construction

-2

22

-19

42

57

72

83

27

72

44

11

-19

-37

7

- Services

386

416

318

424

403

336

292

250

222

235

234

309

284

354

- Agriculture, forestry & fisheries

-25

-14

-8

- Wage workers

427

315

路 Permanent workers

575

路 Temporary workers

-78

路 Daily workers

-68 -121 -109

-94 -107

-87 -127 -115 -106 -168

-27

483

548

519

476

464

487

442

422

521

565

503

609

436

615

443

333

355

372

432

355

332

505

536

496

548

-2

-96

140

226

141

129

54

82

3

1

129

174

113

-70 -120

-37

-35

-40

-20

-38

1

4

87

15 -100 -167

-52

-11

121

-97

-15

-3

-54

-42 -151

1

124

-67

1

19

7

-6

-89

-49

-37 -136 -135 -152

-94

- Male

238

234

186

266

268

196

184

132

141

145

111

132

76

183

- Female

177

203

200

267

249

226

238

205

213

163

199

244

209

312

- 15 to 29

-35

-36

-50

77

102

56

41

68

32

90

50

100

90

111

- 30 to 39

-47

-31

-21

-21

-7

-29

-30

-38

-1

-56

-60

-36

-50

-11

- 40 to 49

57

11

22

38

15

4

3

-14

-47

-15

1

7

-4

-9

- 50 to 59

291

270

254

239

215

190

209

149

177

138

145

135

139

142

- 60 or more

149

222

181

200

192

201

199

172

192

150

174

169

110

263

- Nonwage workers 路 Self-employed workers

-88 -114 -211 -189 -218 -114

Source: Statistics Korea

Unemployment rate 6

Source: Statistics Korea (employment trends)

(%)

5

4

3

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

February 2016

23

The number of unemployed persons in December was down 19,000 year-on-year to 868,000, and the unemployment rate dropped 0.2 percentage points year-on-year to 3.2 percent. The unemployment rate stayed unchanged or fell year-on-year in all age groups except those in their 60s.

2011 2012 2013 Annual Annual Annual Annual

2014 Q3 Q4

Dec Annual Q1

Q2

2015 Q3

Q4

Nov

Dec

929 845

829

868

11

-19

-3

22

-10

-6

-11

-9

Number of unemployed (thousands)

855

820

807

937

884

854

886

Unemployment growth (y-o-y, thousands)

-65

-35

-13

137

107

121

113

- Male

-48

-26

-6

49

37

59

56

24

25

42

31

- Female

-17

-9

-7

80

70

63

58

16

32

23

14

976 1,089 1,042 40

58

65

45

-9

Unemployment rate (%)

3.4

3.2

3.1

3.5

3.3

3.2

3.4

3.6

4.1

3.8

3.4

3.1

3.1

3.2

(Seasonally adjusted)

3.4

3.2

3.1

3.5

3.5

3.5

3.5

3.6

3.7

3.8

3.6

3.4

3.4

3.4

- 15 to 29

7.6

7.5

8.0

9.0

8.6

8.3

9.0

9.2

10.3

9.9

8.4

8.0

8.1

8.4

- 30 to 39

3.4

3.0

3.0

3.1

3.0

2.8

2.7

3.1

3.1

3.3

3.0

2.9

2.9

2.7

- 40 to 49

2.1

2.0

2.0

2.2

2.1

2.1

2.2

2.3

2.4

2.5

2.3

2.0

1.8

2.2

- 50 to 59

2.1

2.1

1.9

2.2

2.1

2.2

2.3

2.4

2.6

2.6

2.4

1.9

1.8

1.9

- 60 or more

2.6

2.4

1.8

2.3

1.5

1.6

1.8

2.5

4.1

2.2

2.0

2.1

1.9

2.1

Source: Statistics Korea

The economically inactive population in December was up 11,000 from a year earlier to 16,470,000, while the labor force participation rate rose 0.4 percentage points year-on-year to 61.9 percent.

The number of those economically inactive due to education (down 99,000, y-o-y) and childcare (down 103,000, y-o-y) decreased, while those due to rest (up 71,000, y-o-y) increased.

Labor force participation rate 65

Source: Statistics Korea (employment trends)

(%)

64 63 62 61 60 59 58 57 2006.1

2007.1

2008.1

2009.1

2010.1

Original data

24

The Green Book : Current Economic Trends

2011.1

2012.1

2013.1

2014.1

2015.1

Seasonally adjusted rate

2011 2012 2013

2014 Q4

Annual Annual Annual Annual Q3

Economically inactive population (millions)

Dec Annual Q1

2015 Q3

Q2

Q4

Nov

Dec

15.95 16.08 16.22 15.98 15.76 16.07 16.46 16.11 16.47 15.84 15.92 16.19 16.10 16.47

Labor force participation rate (%)

61.1

61.3

61.5

62.4 63.0 62.4 61.5 62.6 61.5 63.2 63.0 62.5 62.7 61.9

(Seasonally adjusted)

61.1

61.3

61.5

62.4 62.5 62.4 62.5 62.6 62.8 62.3 62.5 62.6 62.5 63.0

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

112

128

141 -246 -222 -101

- Childcare - Housework

-5 101

-2 123

1 -39 -3 -131

-78

128

72

150

162

128

197

8 -45

41 -91

50 -41

3 -19

-63 -29

-73 -103 23 -63

-41 -99

-31 -67

-15 -93

11

- Education

-51

-12

77

-81 -109

-72

-91 -146 -141 -213 -112 -118 -131

-99

- Old age - Rest

-45 182

148 -53

54 -7

93 -92

89 -15

80 52

165 71

91 -65

109 141

68 154

95 151

103 123

171 136

169 210

Source: Statistics Korea

9. Financial markets 9.1 Stock market

The KOSPI fell 2.5 percent in January 2016 from 1,961 points at the end of December 2015 to 1,912 points at the end of January, due to the volatile stock markets in China and falling international oil prices.

The KOSDAQ rose 0.1 percent month-on-month from 682 points to 683 points due to net buying by foreign investors and the Bank of Japan’s rate cut to minus 0.1 percent.

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

2016.1

KOSDAQ

February 2016

25

(Closing rate)

Dec 2015

KOSPI Jan 2016

Change1

Dec 2015

KOSDAQ Jan 2016

Stock price index (points)

1,961.3

1,912.1

-49.2 (-2.5%)

682.4

682.8

0.4 (0.1%)

Market capitalization (trillion won)

1,242.8

1,207.5

-35.4 (-2.8%)

201.6

201.9

0.3 (0.1%)

Average daily trade value (trillion won) Foreign stock ownership (%, %p)

Change1

4.0

4.8

0.8 (20.6%)

3.2

3.5

0.4 (11.0%)

32.2

31.7

-0.5 (-1.6%)

9.9

10.3

0.4 (4.0%)

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

9.2 Exchange rate

The dollar-won exchange rate rose as high as 1,214 won in January affected by a weak yuan and heightened risk aversion among investors amid falling international oil prices, but the exchange rate closed the month at 1,199.1 won as investors’ risk aversion eased in line with rebounding oil prices and the Bank of Japan’s rate cut to minus 0.1 percent on January 29.

The 100 yen-won exchange rate rose to 995.1 won despite the yen’s depreciation against the dollar after the Bank of Japan’s rate cut, as the won fell against the dollar at a faster pace than the yen.

(Closing rate)

2009 Dec

2010 Dec

2011 Dec

2012 Dec

2013 Dec

2014 Dec

2015 Dec

2016 Jan

Change1

Dollar-Won

1,164.5

1,134.8

1,151.8

1,070.6

1,055.4

1,099.3

1,172.5

1,199.1

-2.2

100 Yen-Won

1,264.5

1,393.6

1,481.2

1,238.3

1,002.3

913.0

974.1

995.1

-2.1

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

26

The Green Book : Current Economic Trends

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

100 Yen-Won

9.3 Bond market

3-year Treasury bond yields fell from 1.66 percent at the end of December to 1.56 percent at the end of January. Treasury bond yields dropped as investors’ appetite for safe haven assets increased amid volatility in stock markets in China and falling international oil prices.

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

2010.1

Overnight call rate (daily)

2011.1

2012.1

2013.1

2014.1

2016.1

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 Nov 1.50 1.66 1.79 2.17 1.96

Dec 1.52 1.67 1.66 2.11 1.81

Jan 1.50 1.65 1.56 2.04 1.70

2016 Change1 -2 -2 -10 -7 -11

1. Basis point, changes from the previous month

9.4 Money supply & money market

M2 (monthly average) in November 2015 rose 7.7 percent from a year earlier. Private sector credit expanded at a slower pace as depository institutions’ securities investment contracted slightly due to increased concerns over the risk of margin trading, despite continued increases in lending to households.

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

M1² M2 Lf³

2009

2010

2011

2012

2013

2014

Annual

Annual

Annual

Annual

Annual

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 Sep 21.4 9.6 10.4

Oct 21.5 8.8 10.2

Nov 20.6 7.7 9.2

Nov1 682.9 2,244.3 3,076.2

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

February 2016

27

Total money supply Source: Bank of Korea 40

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

30

20

10

0

-10 -20 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

Reserve money

2012.1

2013.1

2014.1

2015.1

M1

Lf

Bank deposits in December 2015 rose at a faster pace than the previous month (up 5.4 trillion won → up 20.7 trillion won), as money flowed in from the public sector for year-end government fiscal spending, and banks increased deposits to meet their loan-to-deposit ratio requirements at the end of the year.

Asset management company (AMC) deposits fell at a faster pace than the previous month, as corporations withdrew funds to improve their financial ratios at the end of the year.

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

2014

Annual

Annual

Annual

Annual

Annual

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 December 2015

28

The Green Book : Current Economic Trends

Sep 14.4 -7.5

Oct 11.9 6.4

2015 Nov 5.4 -3.8

Dec 20.7 -4.9

Dec1 1,391.1 421.7

10. Balance of payments

Korea’s current account in December 2015 (preliminary) posted a surplus of US $7.46 billion, staying in the black for 46 consecutive months, and surpluses reached US $105.96 billion for the entire year of 2015.

The goods account surplus rose slightly to US $10.77 billion in December from US $10.47 billion in the previous month, as exports of goods including semiconductors, steel and automobiles continued to decrease, while goods imports fell at a faster pace.

Growth in goods exports (y-o-y, %) -11.9 (Nov 2015) → -11.9 (Dec) Growth in goods imports (y-o-y, %) -17.0 (Nov 2015) → -21.0 (Dec) Export growth by item (y-o-y, %, customs clearance basis) -14.1 (total), 10.3 (mobile phones), -8.5 (automobiles), -17.5 (semiconductors), -23.4 (steel), -28.3 (oil products) Import growth by category (y-o-y, %, customs clearance basis) -19.2 (total), -26.8 (commodities), -15.8 (capital goods), 4.0 (consumer goods)

Current account balance 15

Source: Bank of Korea (balance of payments trends)

(US $ billion)

10

5

0

-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 expanded from US $1.26 billion to US $1.70 billion as the transportation and travel accounts worsened, despite an increase in construction account surpluses.

Services account (US $ billion, Nov → Dec) -0.55 → -0.55 (manufacturing), 0.21 → -0.10 (transportation), -0.72 → -0.95 (travel), 0.78 → 1.34 (construction), -0.01 → -0.22 (intellectual property rights), -0.88 → -1.14 (other businesses)

February 2016

29

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 went from a surplus of US $0.89 billion to a deficit of US $0.59 billion, due to increased dividend payments. The secondary income account deficit increased from US $0.19 billion to US $1.02 billion.

(US $ billion)

2013 Annual Annual

Current account - Goods balance - Services balance - Primary income balance - Secondary income balance

81.15 82.78 -6.50 9.06 -4.19

84.37 88.89 -4.02 4.49 -4.98

2014 2015 Q3 Q4 Dec Q1 Q2 Q3 Q41 20.66 26.45 6.95 22.44 27.92 29.11 26.49 20.98 25.14 7.56 24.22 33.68 30.64 31.84 -0.46 -0.38 -0.64 -4.39 -3.09 -3.56 -4.67 1.40 2.93 0.89 3.83 -1.56 2.73 0.90 -1.25 -1.24 -0.86 -1.22 -1.11 -0.70 -1.58

Nov 9.91 10.47 -1.26 0.89 -0.19

Dec1 Annual1 7.46 105.96 10.77 120.37 -1.70 -15.71 -0.59 5.90 -1.02 -4.61

1. Preliminary Source: Bank of Korea

The capital and financial account in December (preliminary) saw an increase of US $7.76 billion in net assets.

Capital & financial account balance* (US $ billion) 10.63 (Dec 2014) → 10.29 (Jun 2015) → 9.99 (Jul) → 9.05 (Aug) → 10.54 (Sep) → 11.08 (Oct) → 8.72 (Nov) → 7.76 (Dec) * Positive figures represent increases in assets/liabilities, and negative figures represent decreases.

Net FDI outflows expanded from US $0.90 billion a month earlier to US $1.42 billion as Korean FDI (US $1.28 billion → US $3.65 billion) increased more than inbound FDI (US $0.38 billion → US $2.24 billion).

In portfolio investment, net outflows increased from US $5.13 billion to US $7.46 billion as foreign investment in Korean shares decreased at a faster pace compared to the previous month (down US $1.72 billion → down US $4.04 billion).

Derivatives net outflows increased (down US $0.61 billion → up US $0.42 billion), and other investment net outflows grew at a slower rate (up US $1.66 billion → up US $0.38 billion) as the inflows of loans paid back increased faster than the outflows of loans paid back.

The current account surplus is expected to decrease month-on-month in January 2016 as net exports dropped to US $5.33 billion.

30

The Green Book : Current Economic Trends

Capital & financial account balance 15

Source: Bank of Korea (balance of payments trends)

(US $ billion)

10 5 0 -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

Financial derivatives

2015.1

Capital & financial account

11. Prices

11.1 Consumer prices

Consumer prices rose 0.8 percent year-on-year in January 2016, a slower pace than the 1.3 percent of the previous month, due to falling international oil prices, subdued inflationary pressure from a cigarette tax increase and a public gas price cut.

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

2016.1

Consumer price inflation (y-o-y)

Consumer price inflation

(%)

2015 Month-on-Month Year-on-Year

May 0.5 0.3

Jun 0.7 0.0

Jul 0.7 0.2

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

2016 Jan 0.8 0.0

Source: Statistics Korea

February 2016

31

Contribution to consumer price inflation 5

Source: Statistics Korea (consumer price trends)

(%p)

3

1

-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

Oil product prices fell 3.2 percent month-on-month amid falling international oil prices. The year-on-year decrease of oil product prices, however, slowed from 15.6 percent a month earlier to 10.3 percent, due to a low base effect from a year ago when oil product prices dropped 9.0 percent month-on-month.

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

1.3 0.8 -

Manufactured Agricultural, livestock Oil products & fishery products products 0.4 -15.6 2.9 -0.8 -10.3 2.4 -0.26 -0.43 0.18

Public utilities -7.1 -8.1 -0.41

Public services 2.0 2.2 0.31

Personal services 2.3 2.2 0.71

Housing rents 2.9 2.9 0.28

The diminishing effect of the higher cigarette tax on inflation and the government’s 8.5 percent cut in public gas prices that became effective from January 1 dragged down January consumer price inflation by 0.58 percentage points and 0.15 percentage points year-on-year, respectively.

Prices 16

Source: Statistics Korea (consumer price trends)

(y-o-y, %)

12 8 4 0 -4 -8 2006.1

2007.1

Consumer price inflation

32

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 Consumer prices excluding food and energy

2012

2013

2014

Annual

Annual

Annual

Annual

2015

1.6 1.5

1.6 1.5

2.0 1.7

2.2 2.4

2016 Jan 1.7 1.9

Dec 2.4 2.8

Source: Statistics Korea

Agricultural, livestock & fishery product prices increased at a slower pace despite cold weather and heavy snow, as agricultural product supplies and bargain promotions increased ahead of the Lunar New Year holiday.

Core inflation stayed just below 2 percent.

11.2 International oil and commodity prices

International oil prices fell to the lowest level in 12 years in January 2016 due to the lifting of sanctions on Iran, slumping economic indicators in China and the strong dollar.

Dubai crude prices fell to US $22.8 per barrel on January 21, the lowest since 2003, as the lifting of sanctions on Iran caused concerns over a supply glut, but oil prices rebounded at the end of the month due to the expectations that oil producing countries could agree to cut oil production.

Dubai crude (US $/barrel) 30.4 (1st week Jan) → 26.7 (2nd week) → 23.9 (3rd week) → 26.5 (4th 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

2016.1

Dubai crude

WTI

(US $/barrel, period average)

Dubai crude Brent crude WTI crude

2013

2014

Annual

Annual

Annual

105.2 108.7 98.0

96.6 99.4 92.9

50.7 53.6 48.8

Q1 51.9 55.1 48.6

Q2 60.5 63.5 58.0

2015 Q3 49.9 51.3 46.5

Oct 45.8 49.3 46.3

Nov 41.6 45.9 42.9

Dec 34.9 38.9 37.3

2016 Jan 26.9 31.9 31.8

Source: Korea PDS

February 2016

33

Domestic gasoline prices continued to fall amid decreasing international oil prices.

Domestic gasoline prices (won/liter) 1,402.3 (1st week Jan) → 1,391.9 (2nd week) → 1,380.2 (3rd week) → 1,370.0 (4th week) International gasoline prices (US $/barrel) 50.9 (4th week Dec) → 51.4 (5th week) → 51.0 (1st week Jan) → 47.4 (2nd week) Dollar-won exchange rate (won) 1,177.6 (4th week Dec) → 1,169.0 (5th week) → 1,187.5 (1st week Jan) → 1,206.6 (2nd week) (Won/liter, period average)

2013

2014 1,510.4

Q1 1,485.4

Q2 1,543.2

2015 Q3 1,544.0

Annual

Annual

Annual

Gasoline prices

1,924.5

1,827.3

Diesel prices

1,729.6

1,637.7

1,299.6

1,312.6

1,344.2

1,309.3

Oct 1,498.7

Nov 1,473.6

Dec 1,432.9

2016 Jan 1,385.3

1,251.9

1,235.0

1,211.0

1,157.3

Source: Korea National Oil Corporation

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

(thousand won/B)

(US $/B)

160

140

140

120

120

100

100

80

80

60

60

40

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

2016.1

Dubai international prices (dollar, right)

Corn prices decreased in January as a supply glut was expected to continue with declining imports of corn fodder by China. China National Grain and Oils Information Center forecast that China’s corn imports would decrease 26 percent to around 3.5 million tons in 2016 compared to the previous year.

Wheat and soybean prices remained nearly unchanged year-on-year.

International grain price increases in January (monthly average, m-o-m, %) -2.0 (corn), -0.4 (wheat), -0.0 (soybean)

International prices of nonferrous metals were down, as demand from China decreased and production cuts were expected to be delayed due to lower production costs being helped by falling international oil prices and the strong dollar. In Chile, the largest copper producing country, copper production costs

34

The Green Book : Current Economic Trends

in dollar terms dropped 9.6 percent year-on-year in the third quarter of 2015, while Russia’s Norilsk Nickel, the world’s largest nickel producer, decided not to cut its production.

Nonferrous metal price increases in January (monthly average, m-o-m, %) -6.3 (tin), -3.6 (copper), -2.4 (nickel), -1.0 (aluminum)

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.

4000

470 430

3000

390 350

2000

310 270 230

1000

190 150

0

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

CRB (left)

2016.1

Reuters index (right)

(Period average)

Reuters Index1 (sep 18,1931=100)

2013

2014

Annual

Annual

Annual

Q1

2,774

2,523

2,328

2,368

Q2

2015 Q3

Oct

Nov

Dec

2016 Jan

2,394

2,287

2,279

2,285

2,243

2,147

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

12. Real estate market 12.1 Housing market

Apartment prices nationwide remained unchanged month-on-month in January 2016.

Apartment prices stayed unchanged in the Seoul metropolitan area, which includes Seoul (up 0.0%), Gyeonggi Province (up 0.0%) and Incheon (up 0.0%).

Apartment prices also did not change in areas excluding the Seoul metropolitan area, which include the five metropolitan cities (up 0.0%) and the eight provinces (up 0.1%).

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

February 2016

35

Apartment sales prices by region

Source: Korea Appraisal Board

3

2

1

0

-1 2009.1

7

2010.1

7

2011.1

7

Nationwide

2012.1

7

2013.1

7

2014.1

Seoul metropolitan area

2015.1

7

2016.1

Areas excluding Seoul metropolitan area

apartment prices

(Percentage change from previous period)

2010

2011

2012

2013

2014

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

3.5 4.4 4.6 5.2 3.9

0.3 0.4 0.4 0.4 0.3

Aug 0.3 0.3 0.4 0.4 0.4

6.4

15.1

3.1

1.7

1.9

2.7

0.2

0.2

Annual Annual Annual Annual Annual Annual

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

7

Jul

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

2016 Jan 0.0 0.0 0.0 0.0 0.1

0.3

0.2

0.3

0.1

0.0

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

Apartment rental prices rose 0.1 percent month-on-month nationwide in January. Rental prices rose 0.2 percent in the Seoul metropolitan area and 0.1 percent in regions excluding the Seoul metropolitan area.

Apartment rental price increases in major districts in Seoul (m-o-m, %) Gangnam (0.1), Seocho (0.1), Songpa (0.0), Guro (0.6), Gangseo (0.5), Dobong (0.4)

apartment rental prices 2010

(Percentage change from previous period)

2011

2012

2013

2014

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

4.8 7.1 7.2 7.9 6.5

0.3 0.5 0.5 0.6 0.5

Aug 0.3 0.4 0.5 0.4 0.5

9.2

14.5

4.6

3.3

2.2

2.8

0.2

0.2

Annual Annual Annual Annual Annual Annual

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

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

36

The Green Book : Current Economic Trends

Jul

2015 Sep 0.4 0.6 0.7 0.7 0.7

Oct 0.4 0.6 0.6 0.5 0.8

Nov 0.4 0.6 0.7 0.7 0.8

Dec 0.3 0.4 0.5 0.5 0.5

2016 Jan 0.1 0.2 0.2 0.3 0.2

0.3

0.2

0.3

0.2

0.1

Apartment rental prices by region Source: Korea Appraisal Board 3

(m-o-m, %)

2

1

0

-1

-2 2009.1

7

2010.1

7

2001.1

7

Nationwide

2012.1

7

2013.1

7

2014.1

Seoul metropolitan area

7

2015.1

7

2016.1

Areas excluding Seoul metropolitan area

Apartment sales transactions were down 10.2 percent from 97,813 transactions in November to 87,871 transactions in December and decreased 3.6 percent from 91,130 recorded a year ago.

Apartment sales transactions

(Thousands)

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

2010

2011

2012

2013

2014

67

82

61

71

84

99

79

79

112 120 110 110 111

94

86

106

98

88

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

7

Nationwide

2010.1

7

2011.1

7

2012.1

7

Seoul metropolitan area

2013.1

7

2014.1

7

2015.1

7

Areas excluding Seoul metropolitan area

February 2016

37

12.2 Land market

Land prices nationwide rose 0.25 percent month-on-month in December.

Land prices increased 0.20 percent in the Seoul metropolitan area, which includes Seoul (up 0.24%) and Gyeonggi Province (up 0.17%).

Land price increases in Seoul metropolitan area (m-o-m, %) 0.17 (May 2015) → 0.19 (Jun) → 0.20 (Jul) → 0.18 (Aug) → 0.18 (Sep) → 0.21 (Oct) → 0.20 (Nov) → 0.20 (Dec)

Land prices increased 0.34 percent in areas excluding the Seoul metropolitan area, led by Busan (up 0.34%), Daegu (up 0.39%), Daejeon (up 0.39%) and Jeju (up 2.09%).

Land price increases in areas excluding Seoul metropolitan area (m-o-m, %) 0.20 (May 2015) → 0.25 (Jun) → 0.24 (Jul) → 0.21 (Aug) → 0.22 (Sep) → 0.25 (Oct) → 0.32 (Nov) → 0.34 (Dec)

Land prices

(Percentage change from previous period)

2009 2010 2011 2012 2013

2014

2015 Q4 Annual Q2 Q3 Q4 Oct Nov Dec 0.49 0.53 2.40 0.59 0.60 0.72 0.22 0.24 0.25

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 2.69 0.69 0.69 0.72 0.24 0.24 0.24 1.24 0.27 0.33 1.73 0.41 0.43 0.52 0.18 0.17 0.17 1.35 0.32 0.40 1.95 0.53 0.54 0.50 0.18 0.17 0.14

Source: Korea Appraisal Board

Land prices by region 15 12

Source: Korea Appraisal Board

(%)

9 6 3 0 -3 -6 -9 -12 -15 -18 1996

1997

National average

1998

1999

2000

2001

2002

2003

2004

2005

Metropolitan city

2006

2007

2008

City

2009

2010

2011

2012

2013

2014

2015

County

There were 274,000 land transactions in December, up 5.8 percent from the previous month and up 6.4 percent from a year ago (257,000).

38

The Green Book : Current Economic Trends

Land transactions decreased month-on-month in the Seoul metropolitan area including Seoul (down 3.1%) and Incheon (down 6.0%), while transactions increased in areas excluding the Seoul metropolitan area, led by Daejeon (up 11.5%), Jeju (up 24.7%), North Jeolla Province (up 19.9%) and North Chungcheong Province (up 15.2%).

Vacant land transactions, which accounted for 41.8 percent of total land transactions, recorded 115,000 in December, up 19.5 percent month-on-month and up 14.8 percent compared with a year ago (100,000).

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 Jul Aug Sep Oct Nov Dec 279 290 241 229 263 259 274 33 36 29 27 31 29 28 65 62 56 58 63 61 62 13 15 13 12 14 13 12

Annual1 Annual1 Annual1 Annual1 Annual1 Dec Jan Feb Mar Apr May Jun

Nationwide 187 Seoul 16 Gyeonggi 41 Incheon 8

208 18 43 10

170 13 33 8

187 17 37 8

220 22 46 10

257 219 199 278 293 262 23 20 21 33 36 34 53 45 43 62 66 60 9 8 8 12 13 12

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

February 2016

39

13. Composite indices of business cycle indicators

Industrial output in December 2015 increased 1.2 percent month-on-month and 2.3 percent year-on-year.

Output rose month-on-month in mining & manufacturing (up 1.3%), construction (up 7.4%) and public administration (up 4.7%), but stayed unchanged in services.

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

May -0.6 0.1

Jun 0.6 1.4

Jul 0.6 0.3

Aug 0.3 1.2

Sep 2.5 4.5

Oct -1.3 2.5

Nov1 -0.4 2.2

Dec1 1.2 2.3

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

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

129.8 0.2

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

100.9 -0.1

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

132.1 0.8

132.3 0.2

133.0 0.5

133.9 0.7

135.3 1.0

136.3 0.7

137.0 0.5

137.0 0.0

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

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

103.8 -0.5

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

1. Preliminary

The cyclical indicator of the coincident composite index was down 0.1 points month-on-month to 100.9.

Three components of the coincident composite index, such as service output, retail sales and nonfarm payroll employment, increased, while the other four components, including mining & manufacturing production, the value of construction completed and imports, decreased.

40

The Green Book : Current Economic Trends

Components of the coincident composite index in December (m-o-m) service output (0.3%), retail sales (0.7%), nonfarm payroll employment (0.2%), mining & manufacturing production (-0.6%), value of construction completed (-0.4%), domestic shipments (-0.6%), imports (-0.8%)

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 0.5 points month-on-month to 103.8. Six components of the leading composite index, such as the ratio of export to import prices and the ratio of job openings to job seekers, were up, while three others, such as the consumer expectations index, domestic shipments of machinery and the value of construction orders received, were down.

Components of the leading composite index in December (m-o-m) ratio of export to import prices (0.5%), international commodity prices (3.7%), ratio of job openings to job seekers (1.8%p), KOSPI (0.5%), spreads between long & short term interest rates (0.02%p), inventory circulation indicator (0.0%p), consumer expectations index (-0.6p), domestic shipments of machinery (-1.4%), value of construction orders received (-29.5%)

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

February 2016

41

Policy Issue

Government Unveils New Round of Investment Boosting Measures

The government unveiled its new round of measures to boost the private sector investment following the 9th Presidential Meeting to Promote Trade and Investment held on February 17.

Strategies The new round of measures, drawn up to encourage investment in promising areas and subsequently stimulate job creation, focus on - providing investment opportunities in promising projects - promoting investment in new growth engines, such as services and the farming and fishery sector - attracting investment in the Saemangeum area

Key measures in detail 1. Help restart suspended projects: A total of 6.2 trillion won worth of investment expected in six projects that have been suspended due to regulatory difficulties or lack of experience - Attract 3.0 trillion won of investment to the R&D complex construction in Yangjae and Woomyoun, southern part of Seoul, by introducing special regulations, including eased floor area ratio requirements - Enable 1.4 trillion won of investment in the K-Culture Valley project, which has been suspended due to regulations regarding public land use, by extending the maximum rental period for public land from five years to 20 years for cultural and tourist facilities - Attract 800 billion won of investment to the development of an automobile repair complex in the Seoul metropolitan area by removing the green belt from the area - Create 600 billion won worth of investment opportunities and at the same time launch a public rental housing construction project by settling disagreements between administrative bodies: The government will provide a decent alternative to accelerate the moving of the industrial zone located where the public rental housing complex is planned.

42

Policy Issue

- Enable 300 billion won worth of investment in building an “on the road tire performance test facility” in the Taeahn Business City by changing the city development plan - Allow solar panels to be installed on the 39 reservoirs located in Agriculture Promotion Zones and provide 100 billion won of financial support

2. Grow promising service markets, such as sports and healthcare, and promote the sharing economy1 Sports - Revise regulations regarding the use of green belts, rivers and mountains to promote the building of sports facilities - Investments in sports facilities to receive tax deduction of the same rate as the manufacturing sector receives - Increase R&D funds2 and other financial support3 to promote the development of new materials, sporting goods and equipment - Encourage sports enterprises to participate in high-tech material development projects4 - Classify electric bicycles as bicycles, instead of motor vehicles, to allow the use of bike roads - Develop the sports management industry: The government will establish guidelines for managing a sports agency, and will revise the regulation according to which only a lawyer can qualify as a sports agent and works for only one player.

Healthcare and nonmedical care - Provide guidelines to help people clearly distinguish between medical care and nonmedical care, and promote the development of the nonmedical care market - Reduce approval-related uncertainties through an advance notification system to promote the development of high-tech medical services - New medicines not to be bound by the current low medicine price policy

1. Market outlooks for these industries are very bright.

Market outlooks: Sports (trillion won, domestic market): 41 (2013) → 50 (2017) Biomedicine (trillion won, global market): 330 (2013) → 635 (2020) Sharing economy (US $ billion, global market): 5.1 (2013) → 335 (2025) 2. Government R&D funds to be increased from 13 billion won in 2015 to 14.1 billion won in 2016 3. Sports Industry Support Fund to be increased from 38.5 billion won in 2015 to 198.5 billion won in 2018 Loans from the Sports Industry Promotion Fund to be increased from 18 billion won in 2015 to 54 billion won in 2016 with a 0.5 percentage point reduced interest rate 4. 116.8 billion won worth of the Core Industrial Material Technology Development Project and 32.4 billion won worth of the Materials and Components Development Project

February 2016

43

Policy Issue - Extend the facility investment tax deduction given to pharmaceutical companies until 2019 - Eased KOSDAQ listing requirements5 to be applied to bio-ventures: Companies with less than 3 billion won of annual sales will be allowed to stay listed for the maximum of five years.

Sharing economy - Improve regulations and build information systems to support the development of the sharing economy, such as shared transport, accommodations vacancy sharing and equity crowdfunding

3. Enhance farming sector competitiveness: Promote large-scale investment by the private sector and transform the farming sector into a new industry which involves distribution, IT and development - Build a specialized zone for agriculture which is equipped with high-tech infrastructure and improved regulations - Attract large-scale investment in seafood farming, and promote large-scale fish farming overseas - Support the transformation of the farming sector into a lucrative industry: Farmers can use public sector distribution channels6 to sell their products and private development of fishing ports will become legitimate - Promote the development of high-end products: Introduce R&D tax incentives and draw up guidelines for organic farming

4. Attract investment in the Saemangeum area: Provide all-round support from financial incentives to deregulation to create a most favorable environment for doing business - Attract domestic enterprises to the area: Revise laws to offer long term rental contracts for spaces for as long as 100 years and increase financial support for facility investments by 10 percentage points, at most, compared with other areas - Accelerate land reclamation: Revise laws to provide developers with corporate tax reduction7 - Relax regulations: Work on deregulation according to the negative list approach and ease the required floor area ratio by 150 percent

5. Annual sales of 3 billion won or more 6. For example, public agency-owned TV shopping channels 7. Five year tax reduction: 50 percent reduction for the first three years and 25 percent for the remaining two years

44

Policy Issue

Economic News Briefing

Korea to increase spending in Q1 Fitch affirms Korea’s sovereign credit rating at AAKorea responds to lifting of Iran sanctions Neither global market jitters nor North’s threat can damage Korean economy Korean FDI rises 15% in 2015 ‘Omnibus account’ for foreign investors to be introduced Government unveils its 2016 international economic affairs policies of supporting exports Korea grows 0.6% in Q4 (Advanced)

Korea to increase spending in Q1 The government announced on February 3 that total public sector spending will be increased by over 21 trillion won in the first quarter of 2016 to stimulate the economy: 6 trillion won in fiscal spending and 15.5 trillion won in public financial institutions’ support.

To stimulate private consumption, the government will reintroduce the luxury goods sales tax cut for vehicles, effective until the end of June 2016, and will organize a large scale shopping event to attract more visitors during the Visit Korea Years (2016-2018).

Fitch affirms Korea’s sovereign credit rating at AAFitch announced on February 2 that it would maintain Korea’s sovereign credit rating at AA-. The outlook on the long-term rating continues to be stable as well. Fitch cited both positive factors, such as Korea’s strong macroeconomic environment and external sector strength, and negative factors, such as Korea’s low per capita GDP relative to other countries with similar credit ratings and geopolitical risks stemming from North Korea, as the key rating drivers.

Korea responds to lifting of Iran sanctions The government announced its plan to promote trade with Iran following the lifting of international economic sanctions on Iran on January 16, which include providing export financing for goods and infrastructure construction, offering trade insurance, jointly establishing assembly plants in Iran with Iranian companies and strengthening economic cooperation in industries such as shipping, port development, healthcare, ICT, food, culture and sports. The Korea-Iran Joint Economic Commission Meeting, an annual meeting suspended since 2006, has been resumed on February 29.

Neither global market jitters nor North’s threat can damage Korean economy On February 22, Deputy Prime Minister Yoo Il Ho held a meeting with foreign journalists and discussed the issues the Korean economy has currently faced with: international financial market volatility and threats from North Korea. At the meeting, Minister Yoo confirmed Korea’s financial market stability as it has remained stable compared to other major economies amid increasing volatility in global financial markets and has been quick to absorb shocks from North’s provocations.

46

Economic News Briefing

Korean FDI rises 15% in 2015 Korean foreign direct investment (FDI) rose 15.0 percent from US $35.00 billion to US $40.23 billion in 2015 compared to a year ago. By industry, FDI rose in finance & insurance (up 65.5%), manufacturing (up 7.6%) and mining (up 19.3%), and fell in real estate & renting (down 35.3%). By region, FDI in the top three destinations, which include Asia (up 51.3%), North America (up 3.2%) and Latin America (up 34.6%), all increased, while FDI in Europe (down 42.7%) declined.

(US $ billion, according to prior notification)

FDI (y-o-y, %)

2011

2012

2013

2014

2015

45.74

39.65

35.64

35.00

40.23

32.8

-13.3

-10.1

-1.8

15.0

‘Omnibus account’ for foreign investors to be introduced The Financial Services Commission (FSC) announced on February 1 its plan to introduce an ‘omnibus account’, a single account opened by a global asset management company or securities company for the purpose of consolidating trading orders and settlements from multiple clients in Korean stock markets.

The omnibus account system will allow foreign retail investors or small- and medium-sized institutional investors to invest in Korean stocks more easily through global brokerage companies and will increase convenience for global asset management firms.

Government unveils its 2016 international economic affairs policies of supporting exports The government announced on January 28 the 2016 policies on international economic affairs, which focus on exploring new markets, enhancing export competitiveness and expanding economic development contributions.

The government will establish a roadmap for expanding into new markets, and will strengthen export competitiveness by promoting the development of value-added consumer goods, encouraging the use of free trade agreements (FTA) and addressing difficulties with customs clearance and nontariff barriers. In addition, the government will continue to improve its development cooperation programs such as the Economic Development Cooperation Fund (EDCF) and Knowledge Sharing Program (KSP), which will not only increase aid efficiency but also provide Korean enterprises with increased opportunities in new countries.

February 2016

47

Korea grows 0.6% in Q4 (Advanced) Korea’s real gross domestic product (GDP) expanded 0.6 percent quarter-on-quarter and 3.0 percent year-on-year in the fourth quarter of 2015, according to advanced data released by the Bank of Korea (BOK) on January 26. For the year, the Korean economy grew 2.6 percent in 2015.

Manufacturing grew 0.6 percent from the previous quarter, led by oil and chemical products as well as semiconductors. Services grew 0.8 percent, led by wholesale & retail, hotels & restaurants, transportation & storage and healthcare & social welfare services. Agriculture, forestries & fisheries declined 1.4 percent and construction fell 0.4 percent.

Private consumption rose 1.5 percent, led by durable goods and services, and facility investment rose 0.9 percent as gains in transportation equipment investment offset declines in machinery investment.

Meanwhile, construction investment fell 6.1 percent due to weak civil engineering works. Exports rose 2.1 percent due to increased chemical products and mobile phones, and imports were up 2.8 percent, led by oil and chemical products.

GDP by production and expenditure*

(Percentage change from previous period) 1

20151

2014 Annual

Q1

Q2

Q3

Q4

Annual

Q1

Q2

Q3

Q4

GDP

3.3

1.1 (3.9)2

0.5 (3.4)2

0.8 (3.3)2

0.3 (2.7)2

2.6

0.8 (2.5)2

0.3 (2.2)2

1.3 (2.7)2

0.6 (3.0)2

Agriculture, forestry & fisheries

2.6

-2.2

-2.0

2.0

2.8

-1.6

3.4

-12.2

6.5

-1.4

Manufacturing

4.0

2.2

1.1

-0.9

0.0

1.4

0.4

1.2

0.1

0.6

Construction

0.6

1.4

0.1

0.9

-3.0

3.2

2.0

0.0

5.6

-0.4

Services3

3.1

0.9

0.3

1.2

0.6

2.8

0.9

0.0

1.0

0.8

Private consumption

1.8

0.4

-0.4

0.8

0.5

2.1

0.6

-0.2

1.2

1.5

Government consumption

2.8

0.1

0.6

2.1

0.2

3.3

0.2

0.8

1.7

1.2

Facility investment

5.8

-1.4

1.3

0.2

4.0

5.2

0.2

0.5

1.8

0.9

Construction investment

1.0

5.3

0.5

0.9

-7.8

4.0

7.4

1.6

5.0

-6.1

Intellectual property investment

4.6

2.0

-0.1

-0.3

-0.5

1.4

2.3

-0.7

0.1

0.3

Exports

2.8

1.4

1.3

-1.7

0.4

0.4

0.1

0.3

-0.6

2.1

Imports

2.1

-1.1

1.2

-0.7

0.7

3.0

0.6

0.9

1.1

2.8

*At 2010 chained prices in seasonally adjusted terms 1. Preliminary 2. Percentage change from the same period of the previous year (original data) 3. Wholesale & retail, hotels & restaurants, transportation & storage, communications services, financial & insurance services, real estate & renting, business services, public administration, defense & social security, education services, healthcare & social welfare services, entertainment, cultural & sports services and other services are included.

48

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

2008 2009 2010 2011 2012 2013 2014p 2015p

2.8 0.7 6.5 3.7 2.3 2.9 3.3 2.6

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

3.7 -0.5 13.7 6.5 2.4 3.6 4.0 1.4

2.2 1.3 4.3 2.7 2.2 2.2 2.0 2.4

-0.9 0.3 5.5 0.8 -0.5 3.3 3.1 3.8

-2.7 3.5 -3.7 -3.4 -3.9 5.5 1.0 4.0

-0.2 -7.7 22.0 4.7 0.1 -0.8 5.8 5.2

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

7.3 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 1.3

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 3.0

-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

2.5 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 Ⅱ Ⅳ

2.5 2.2 2.7 3.0

6.3 -4.7 -0.7 -4.5

0.7 0.8 1.7 2.3

1.9 2.0 2.3 3.4

2.4 2.4 5.1 5.1

0.6 1.6 5.7 7.3

5.8 5.0 6.6 3.5

p: Preliminary Source: Bank of Korea

50

(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 (%)

y-o-y change (%)

2012 2013 2014 2015p

107.4 108.2 108.2 107.5

1.3 0.7 0.0 -0.6

107.2 108.1 107.9 107.7

1.5 0.8 -0.2 -0.2

125.2 130.7 128.4 133.8

4.4 4.4 -1.8 4.2

104.8 106.4 108.7 111.8

1.6 1.5 2.2 2.9

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 Ⅳp

105.7 108.2 105.3 110.9

-0.9 -1.5 -0.2 0.0

105.9 108.0 105.7 111.0

-0.6 -1.2 0.9 0.0

133.7 136.0 139.5 133.8

2.8 5.5 7.6 4.2

108.2 111.1 111.4 116.4

2.8 2.5 2.9 3.1

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 10 11p 12p

108.1 96.0 113.0 109.5 105.1 110.0 108.6 101.2 106.0 111.9 108.2 112.5

1.8 -5.0 0.1 -2.6 -3.0 1.4 -3.3 0.0 2.8 1.9 -0.1 -1.9

108.1 96.6 113.1 109.5 105.5 108.9 107.8 101.9 107.4 112.1 108.2 112.7

2.9 -4.6 0.0 -1.6 -2.9 1.0 -1.6 0.2 4.1 2.8 -0.9 -1.9

132.4 133.0 133.7 135.2 134.6 136.0 138.8 138.7 139.5 138.0 138.2 133.8

0.2 2.9 2.8 3.0 3.5 5.5 4.2 6.2 7.6 5.6 6.6 4.2

107.1 104.6 113.0 111.2 111.4 110.6 111.3 110.4 112.4 114.1 113.3 121.9

2.4 2.8 3.3 4.0 2.4 0.9 2.4 2.3 3.8 3.2 3.2 3.0

p: Preliminary Source: Statistics Korea

February 2016

51

3. Production capacity and operation ratio Period

Production capacity index (2010=100)

y-o-y change (%)

y-o-y change (%)

Average operation ratio (%)

2012 2013 2014 2015p

106.9 108.6 110.3 111.4

2.1 1.6 1.6 1.0

97.5 95.1 94.2 92.1

-2.7 -2.5 -0.9 -2.2

78.6 76.5 76.1 74.2

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 Ⅳp

111.2 111.3 111.4 111.7

1.5 1.3 0.7 0.6

90.1 94.8 89.8 93.7

-2.9 -2.1 -1.9 -2.2

74.4 74.2 74.7 73.5

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 10 11p 12p

111.1 111.0 111.5 111.2 111.3 111.4 111.2 111.3 111.8 111.8 111.7 111.6

1.3 1.4 1.6 1.5 1.3 1.2 0.7 0.5 0.9 0.8 0.7 0.5

93.0 81.1 96.3 95.8 91.9 96.8 94.8 85.9 88.8 95.3 91.8 94.1

1.2 -7.3 -2.7 -4.0 -3.9 2.0 -4.0 -1.0 -0.1 -0.5 -2.4 -3.6

74.1 75.1 73.9 74.1 73.2 75.2 74.7 74.1 75.2 74.0 72.8 73.8

p: Preliminary Source: Statistics Korea

52

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 (%)

y-o-y change (%)

Nondurable goods

y-o-y change (%)

y-o-y change (%)

2012 2013 2014 2015p

107.1 107.9 109.7 113.4

2.5 0.7 1.7 3.4

116.3 116.6 122.6 135.0

5.4 0.3 5.1 10.1

103.9 106.1 105.5 104.3

-0.3 2.1 -0.6 -1.1

104.3 104.7 105.5 107.4

2.2 0.4 0.8 1.8

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 Ⅳp

108.0 111.8 112.2 121.7

1.6 2.9 3.1 5.7

126.6 131.9 132.6 148.8

8.0 8.8 7.5 15.7

98.7 104.0 92.9 121.7

-1.6 -0.9 -3.4 1.1

103.4 105.8 111.2 109.0

-0.4 1.4 3.4 2.3

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 10 11p 12p

107.3 104.4 112.4 110.8 115.6 108.9 112.2 109.2 115.3 120.3 120.7 124.1

-2.8 5.3 2.8 4.9 3.1 0.7 2.1 2.0 5.5 8.3 5.6 3.5

128.2 117.2 134.5 129.3 130.1 136.2 139.9 129.2 128.7 142.8 146.7 156.9

10.4 0.3 13.5 13.2 6.8 6.8 6.7 9.0 6.8 20.1 14.0 13.6

97.9 92.6 105.7 107.6 115.4 89.1 92.4 87.7 98.7 122.2 123.6 119.2

-2.8 0.7 -2.3 1.7 3.2 -8.3 -3.4 -4.2 -2.8 5.3 2.5 -4.4

101.7 103.6 105.0 103.5 109.0 104.9 107.9 109.3 116.4 108.9 107.2 110.9

-9.1 10.3 -0.5 2.0 1.2 1.2 1.5 0.6 8.3 3.3 2.2 1.5

p: Preliminary Source: Statistics Korea

February 2016

53

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 2015p

102.5 102.2 101.8 104.2

1.6 -0.3 -0.4 2.4

102.8 103.4 102.6 105.7

2.5 0.6 -0.8 3.0

102.4 101.7 101.5 103.5

1.2 -0.7 -0.2 2.0

-

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 Ⅳp

101.8 101.0 104.5 109.6

1.1 0.7 2.1 5.5

99.9 102.5 105.0 115.6

-3.4 -0.5 4.1 12.0

102.5 100.4 104.2 107.0

3.0 1.2 1.2 2.7

-

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

109 108 108 108 104 107 105 106 107 105 103 101

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

104.8 94.5 106.0 105.5 98.8 98.8 103.2 102.1 108.1 110.8 106.8 111.1

2.3 -2.2 2.9 3.7 -1.0 -0.7 -1.5 1.9 5.8 5.5 5.8 5.0

101.2 92.8 105.8 107.1 98.1 102.3 107.0 103.3 104.6 114.3 113.6 118.8

1.3 -13.0 2.1 9.4 -5.1 -5.0 -0.6 8.7 4.5 14.5 10.4 11.2

106.3 95.2 106.1 104.7 99.1 97.3 101.6 101.5 109.6 109.4 103.9 107.8

2.8 3.1 3.2 1.4 0.9 1.2 -2.0 -0.9 6.4 2.0 3.9 2.3

102 103 101 104 105 98 100 101 103 105 105 102

2016 1

-

-

-

-

-

100

p: Preliminary Source: Statistics Korea

54

Consumer sentiment index

Statistical Appendices

-

6. Machinery orders received and estimated facility investment index Domestic machinery orders received excluding ship & aircraft (billion won, constant value)

Total

Period

2012 2013 2014 2015p

Public

y-o-y change (%)

Private

y-o-y change (%)

y-o-y change (%)

Facility investment index (2010=100) y-o-y change (%)

21,648 23,078 26,485 25,670

-13.9 6.6 14.8 -3.1

2,142 2,580 5,012 1,920

-11.0 20.5 94.2 -61.7

19,506 20,497 21,473 23,749

-14.2 5.1 4.8 10.6

100.6 99.8 105.0 111.5

-2.8 -0.8 5.2 6.2

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 Ⅳp

6,453 7,054 5,643 6,520

-2.6 15.7 -26.6 7.3

405 493 399 623

-66.9 61.7 -85.3 -19.9

6,048 6,561 5,244 5,897

12.0 13.2 5.3 11.3

106.9 113.5 110.9 114.7

8.4 5.2 10.0 1.7

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 11p 12p

2,324 1,856 2,273 2,782 2,102 2,170 2,023 1,702 1,917 2,059 1,964 2,496

32.9 0.5 -24.9 22.2 15.1 8.6 13.7 -58.4 5.5 6.6 -14.7 35.6

116 141 148 127 197 169 133 160 106 98 227 298

32.0 17.6 -85.4 30.7 69.4 84.7 50.2 -93.7 34.8 -53.6 -46.9 113.7

2,208 1,715 2,126 2,656 1,905 2,000 1,890 1,542 1,811 1,961 1,737 2,198

33.0 -0.7 5.5 21.9 11.4 5.0 11.8 -0.4 4.1 13.9 -7.3 29.2

102.7 98.6 119.5 113.5 109.1 117.8 119.4 105.8 107.5 112.3 107.0 124.7

13.7 3.1 8.8 2.6 0.7 12.3 7.2 16.6 7.3 12.5 -4.9 -1.0

p: Preliminary Source: Statistics Korea

February 2016

55

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 (%)

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 2015p

88,713 98,089 98,465 99,749

-3.3 10.6 0.4 1.3

33,807 34,459 32,004 30,615

-3.7 1.9 -7.1 -4.3

50,622 59,714 62,403 65,001

-2.0 18.0 4.5 4.2

89,395 77,885 89,833 133,252

-6.2 -12.9 15.3 48.3

26,071 24,736 26,497 28,786

-8.9 -5.1 7.1 8.6

59,811 50,947 61,321 101,304

-3.3 -14.8 20.4 65.2

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 Ⅳp

21,252 25,004 24,746 28,747

-2.0 -4.5 4.9 6.4

6,554 8,190 7,174 8,697

-8.3 -5.9 -1.0 -2.4

13,949 15,831 16,582 18,640

2.0 -4.1 8.0 10.6

24,821 35,163 36,274 36,994

55.4 50.0 50.9 40.2

4,566 9,186 4,900 10,134

-22.6 39.7 -5.6 14.7

19,980 25,459 30,647 25,218

107.5 54.0 68.6 48.5

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 10 11p 12p

6,774 6,681 7,796 7,708 7,764 9,531 7,883 7,909 8,954 8,499 8,695 11,552

-4.0 0.2 -2.0 -9.1 -5.2 0.3 -0.4 2.4 12.4 3.2 4.3 10.7

1,997 2,089 2,468 2,467 2,325 3,399 2,284 2,207 2,684 2,269 2,443 3,984

-13.7 -5.3 -6.0 -10.0 -10.0 0.5 -6.0 -5.0 7.7 -10.4 -8.6 7.6

4,561 4,374 5,014 4,937 5,127 5,767 5,338 5,406 5,838 5,860 5,861 6,919

2.4 3.2 0.5 -9.6 -3.6 0.5 3.7 5.7 14.5 9.1 10.7 11.7

7,216 5,367 12,238 9,048 12,556 13,559 8,680 8,496 19,097 10,377 13,216 13,401

30.5 -3.3 150.0 22.9 83.7 46.7 24.6 -2.2 128.0 33.8 105.6 9.8

1,297 1,133 2,136 2,586 2,458 4,142 1,791 1,921 1,188 1,802 3,296 5,035

-36.2 -49.4 31.6 36.5 22.9 54.4 16.9 18.0 -41.5 27.3 74.0 -8.8

5,882 4,115 9,982 6,406 9,995 9,059 6,812 6,270 17,565 8,574 9,247 7,397

78.0 30.3 215.4 17.4 109.7 43.4 28.6 -8.5 191.4 39.2 109.5 15.4

p: Preliminary Source: Statistics Korea

56

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)

2012 7 8 9 10 11 12

108.3 108.4 108.1 108.5 109.3 110.1

99.3 98.9 98.2 98.1 98.4 98.7

110.5 110.4 110.8 110.9 111.5 112.1

100.9 100.4 100.4 100.0 100.2 100.3

82.1 84.4 89.3 88.9 82.2 87.0

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

127.8 129.0 130.5 131.1 132.1 132.3 133.0 133.9 135.3 136.3 136.9 137.0

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

123.6 124.5 124.7 125.1 125.0 125.2 125.9 126.8 128.2 129.1 129.5 129.8

100.1 100.5 100.3 100.3 99.8 99.5 99.7 100.1 100.8 101.1 101.0 100.9

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 2

-

-

-

-

92.1 -

93.2 86.3

Sources: Statistics Korea, Bank of Korea, The Federation of Korean Industries

February 2016

57

9. Balance of payments ( I) Period

Current account

Goods

2012 2013 2014r 2015p

50,835.0 81,148.2 84,373.0 105,955.1

2013 Ⅰ Ⅱ Ⅲ Ⅳ

Services

Primary income

Secondary income

554,103.2 535,375.9 524,135.2 428,559.2

-5,213.6 -6,499.2 -3,678.5 -15,707.9

12,116.7 9,055.7 4,150.8 5,901.8

-5,474.1 -4,189.3 -4,984.7 -4,612.9

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

-2,889.0 50.8 -459.6 -380.7

-736.9 556.0 1,398.7 2,933.0

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

22,439.2 27,917.6 29,108.1 26,490.2

24,216.7 33,679.8 30,637.7 31,839.9

134,439.1 142,258.7 135,363.0 136,872.5

110,222.4 108,578.9 104,725.3 105,032.6

-4,387.1 -3,092.6 -3,561.5 -4,666.7

3,830.8 -1,556.9 2,727.7 900.2

-1,221.2 -1,112.7 -695.8 -1,583.2

2014r 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 -529.9 -632.1 -226.5 159.6 117.7 343.2 -391.6 -411.2 163.7 94.0 -638.4

84.9 -444.1 -377.7 -1,912.8 629.4 1,839.4 466.0 835.6 97.1 856.3 1,183.5 893.2

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

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 9,910.3 7,459.5

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 10,466.1 10,768.6

45,022.1 40,294.9 49,122.1 49,908.3 43,471.9 48,878.5 47,259.6 42,991.3 45,112.1 47,298.7 43,360.4 46,213.4

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 32,894.3 35,444.8

-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 -1,263.9 -1,701.1

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 -587.8

-620.0 -218.7 -382.5 -459.8 -434.1 -218.8 -95.3 -96.4 -504.1 -377.5 -185.5 -1,020.2

Exports

Imports

49,406.0 82,781.0 88,885.4 120,374.1

603,509.2 618,156.9 613,020.6 548,933.3

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 r Ⅰ Ⅱ Ⅲ Ⅳ

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

2015p Ⅰ Ⅱ Ⅲ Ⅳ

p: Preliminary r : Revised Source: Bank of Korea

58

(US $ million)

Statistical Appendices

10. Balance of payments ( II)

(US $ million)

Period

Financial account*

Direct investment

Portfolio investment

Financial derivatives

Other investment

Reserve assets

Capital account

2012 2013 2014 2015p

51,582.4 80,104.6 89,334.0 109,626.8

21,136.2 15,593.2 18,765.6 22,597.8

-6,747.8 9,344.5 30,608.9 49,613.0

-2,627.8 -4,410.3 -3,826.9 2,532.5

26,637.3 43,281.1 25,900.6 22,830.9

13,184.5 16,296.1 17,885.8 12,052.6

-41.7 -27.0 -8.9 -64.7

2013 Ⅰ Ⅱ Ⅲ Ⅳ

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

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

2014 Ⅰ Ⅱ Ⅲ Ⅳ

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

2015 p Ⅰ Ⅱ Ⅲ Ⅳ

23,800.1 28,671.4 29,615.2 27,540.1

4,386.2 7,467.6 4,920.9 5,823.1

7,838.4 6,994.1 15,096.2 19,684.3

-41.0 -461.4 4,040.7 -1,005.8

4,506.4 7,369.2 9,844.1 1,111.2

7,110.1 7,301.9 -4,286.7 1,927.3

-23.1 -25.5 -27.9 11.8

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 2,325.0 1,792.0 665.8 5,967.7 4,536.1 3,327.7 826.9 1,677.4 -245.7 -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 12

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 7,757.0

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 1,418.7

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 7,456.6

76.2 -27.5 -89.7 -301.9 -403.7 244.2 936.4 1,618.6 1,485.7 -812.0 -609.9 416.1

-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 1,662.4 380.7

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 -1,915.1

-13.0 -1.7 -8.4 -8.5 -1.5 -15.5 -29.9 1.1 0.9 -5.4 17.0 0.2

* Positive figures represent increases in assets/liabilities, and negative figures represent decreases. p: Preliminary Source: Bank of Korea

February 2016

59

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 (%)

y-o-y change (%)

y-o-y change (%)

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

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 99.0

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

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 -6.6

2016 1

110.3

0.8

109.7

-1.1

110.8

2.4

112.6

1.7

98.5

-3.3

94.1

-5.6

Source: Bank of Korea

60

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

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

2016 1

26,433

1.3

25,445

1.4

4,566

3.3

19,955

1.3

3.7

Source: Statistics Korea

February 2016

61

13. Financial indicators Call rate (1 day)

CDs (91 days)

2012 7 8 9 10 11 12

3.1 3.0 3.0 2.8 2.8 2.8

3.3 3.2 3.1 2.9 2.9 2.9

3.6 3.4 3.3 3.3 3.3 3.3

3.0 2.8 2.8 2.8 2.8 2.9

3.1 2.9 2.9 2.9 2.9 3.0

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

2016 1

1.5

1.7

2.1

1.6

1.8

1,912.06

Period

Source: Bank of Korea

62

(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

(period average, billion won)

M1

y-o-y change (%)

M2

y-o-y change (%)

Lf y-o-y change (%)

y-o-y change (%)

2012

82,131.1

9.2

441,963.6

3.8

1,798,625.7

5.2

2,379,518.7

7.8

2013

91,379.4

11.3

484,062.9

9.5

1,885,781.3

4.8

2,543,232.5

6.9

2014

103,331.5

13.1

536,733.4

10.9

2,009,576.3

6.6

2,721,502.2

7.0

2015

120,691.4

16.8

636,639.0

18.6

2,182,911.9

8.6

2,986,698.6

9.7

2013 1

85,839.3

5.1

464,914.5

5.8

1,841,128.1

4.8

2,469,789.3

7.7

2

88,855.7

8.8

472,239.6

8.0

1,857,135.0

5.3

2,488,539.0

8.1

3

89,523.5

13.2

472,430.1

7.4

1,862,405.5

5.0

2,499,718.1

6.8

4

87,729.0

8.8

475,330.0

8.7

1,867,726.3

5.1

2,512,459.7

6.9

5

89,654.8

11.3

475,526.7

8.4

1,870,289.7

4.8

2,518,239.1

6.8

6

91,207.6

11.5

486,587.5

10.2

1,884,193.2

4.9

2,533,750.8

6.6

7

90,643.7

11.1

488,982.7

10.7

1,890,728.6

4.6

2,549,443.5

6.5

8

93,729.6

13.8

481,416.9

9.5

1,888,658.4

3.9

2,557,336.3

6.3

9

95,130.6

14.7

490,518.7

11.5

1,903,187.1

4.6

2,577,546.7

6.7

10

93,640.4

10.1

491,947.9

10.7

1,908,557.6

4.7

2,587,071.4

6.7

11

93,609.9

12.8

499,242.7

12.1

1,923,339.2

5.1

2,605,866.7

6.8

12

96,988.5

13.7

509,617.9

11.3

1,932,026.4

5.3

2,619,029.5

6.6

2014 1

98,541.6

14.8

515,742.5

10.9

1,937,045.6

5.2

2,635,100.1

6.7

2

100,547.9

13.2

518,475.5

9.8

1,954,340.7

5.2

2,647,674.0

6.4

3

100,624.0

12.4

520,299.0

10.1

1,964,954.0

5.5

2,659,443.2

6.4

4

98,898.5

12.7

518,809.3

9.1

1,970,361.6

5.5

2,669,341.4

6.2

5

101,791.4

13.5

523,069.9

10.0

1,982,390.9

6.0

2,684,643.9

6.6

6

101,412.3

11.2

532,041.2

9.3

1,999,376.3

6.1

2,703,088.1

6.7

7

101,164.2

11.6

534,028.8

9.2

2,013,935.1

6.5

2,725,737.6

6.9

8

107,682.4

14.9

538,640.3

11.9

2,031,777.2

7.6

2,743,972.5

7.3

9

105,354.1

10.7

548,550.8

11.8

2,037,600.8

7.1

2,759,390.8

7.1

10

107,117.5

14.4

551,416.0

12.1

2,051,149.8

7.5

2,776,968.0

7.3

11

106,667.9

13.9

562,006.2

12.6

2,083,253.5

8.3

2,817,698.0

8.1

12

110,175.6

13.6

577,721.1

13.4

2,088,729.8

8.1

2,834,968.4

8.2

2015 1

113,304.2

15.0

579,964.2

12.5

2,092,223.5

8.0

2,857,610.1

8.4

2

116,502.4

15.9

592,737.4

14.3

2,109,892.3

8.0

2,876,467.8

8.6

3

115,974.9

15.3

600,719.9

15.5

2,127,887.8

8.3

2,907,976.4

9.3

4

115,132.7

16.4

610,803.3

17.7

2,148,114.7

9.0

2,936,746.7

10.0

5

117,726.3

15.7

621,985.5

18.9

2,166,741.1

9.3

2,960,998.1

10.3

6

118,688.2

17.0

630,546.3

18.5

2,179,561.1

9.0

2,986,316.5

10.5

7

122,041.0

20.6

645,975.4

21.0

2,200,510.9

9.3

3,013,503.9

10.6

8

121,854.4

13.2

653,105.9

21.3

2,218,660.3

9.2

3,028,981.1

10.4

9

126,572.2

20.1

665,691.1

21.4

2,230,000.7

9.4

3,049,823.2

10.5

10

125,616.2

17.3

669,737.7

21.5

2,232,432.0

8.8

3,059,051.9

10.2

11

126,767.1

18.8

677,629.2

20.6

2,242,848.2

7.7

3,076,029.2

9.2

12

128,117.5

16.3

690,772.4

19.6

2,246,070.1

7.5

3,086,877.8

8.9

Source: Bank of Korea

February 2016

63

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

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

2016 1

1,208.4

10.8

1,017.1

10.4

1,322.2

7.0

Source: Bank of Korea

64

(end-period)

100/ \

US $/ \

Statistical Appendices

Geomungo The geomungo is a traditional Korean string instument that originated in the ancient kingdom of Goguryeo around the fourth century. Due to its deep and grand tones, the geomungo is considered a 'masculine' instrument, in contrast to the gayageum, which is also a traditional string instrument but has soft and delicate tones.

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

ISSN 2287-7266

ECONOMIC BULLETIN (Republic of Korea)

Republic of Korea

eb.kdi.re.kr

Vol.38 No.2 february 2016

conomic u l l e t i n

Vol.38 No.2 february 2016

The Green Book: Current Economic Trends Policy Issue Government Unveils New Round of Investment Boosting Measures

Economic News Briefing Korea to Increase Spending in Q1 Fitch Affirms Korea’s Sovereign credit Rating at AA‘Omnibus Account’ for Foreign Investors to be Introduced Korea Grows 0.6% in Q4

Statistical Appendices

ECONOMIC BULLETIN

(Republic of Korea)

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february 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

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