201605

ISSN 2287-7266

Republic of Korea

eb.kdi.re.kr

Vol.38 No.5 May 2016

conomic u l l e t i n

The Green Book: Current Economic Trends Featured Issue President Park Makes Historic Visit to Iran

Economic News Briefing Mutual Funds to be Managed More Effectively under New Rules Government to Reform R&D Support OECD Expects 2.7% Growth for Korea in 2016 Korea Grows 0.4% in Q1

Statistical Appendices

02 The Green Book: Current Economic Trends Overview

03

01. External economic situation

04

02. Private consumption

08

03. Facility investment

11

04. Construction investment

13

05. Exports and imports

15

06. Mining and manufacturing production

18

07. Service sector activity

20

08. Employment

22

09. Financial markets

26

9.1 Stock market

26

9.2 Exchange rate

27

9.3 Bond market

27

9.4 Money supply & money market

28

10. Balance of payments

30

11. Prices

32

11.1 Consumer prices

32

11.2 International oil and commodity prices

34

12. Real estate market

36

12.1 Housing market

36

12.2 Land market

39

13. Composite indices of business cycle indicators

41

contents

43 Featured Issue President Park makes historic visit to Iran

45 Economic News Briefing Mutual funds to be managed more effectively under new rules Government to reform R&D support Korea to host 2018 AfDB annual meeting OECD expects 2.7% growth for Korea in 2016 Government to draw up strong rules to ensure fiscal soundness Government to boost funding for industries Korea’s external debt falls to US $385.8 bn Korea grows 0.4% in Q1 (advanced)

49 Statistical Appendices

Editor-in-Chief Kim Joo-Hoon (KDI) Jung Moo-kyung (MOSF) Editorial Board Jung Yeu-Jin (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 02

The Green Book : Current Economic Trends

Overview

The economy has seen domestic demand improving, backed by strong consumption, while exports remain weak.

The economy added more jobs in March than the previous month (223,000 → 300,000, y-o-y) as job markets improved after the Lunar New Year holiday.

Consumer price inflation stayed flat in April compared with the previous month at 1.0 percent year-onyear, as stabilizing service prices offset increases in some manufactured goods prices including oil products and smart phones.

Mining and manufacturing production fell 2.2 percent in March compared with the previous month due to weak semiconductors and a high base effect (up 3.2%, Feb).

In March, service output growth accelerated from 0.1 percent to 0.8 percent month-on-month, while retail sales jumped by 4.2 percent, the highest in seven years and one month, backed by strong durable goods sales: Automobile sales rose as it took advantage of the extension of the luxury sales tax cut and mobile phone sales increased following the release of new models.

Facility investment turned to an increase in March, up 5.1 percent month-on-month, backed by strong machinery and transportation equipment. Construction completed improved for the fourth consecutive month, up 7.3 percent, due to increased apartment supply and frontloaded fiscal spending.

The cyclical indicator of the coincident composite index fell 0.1 points in March partly due to weak imports, and the cyclical indicator of the leading composite index stayed unchanged.

Exports decreased 11.2 percent year-on-year in April after falling 8.1 percent in the previous month, as low international oil prices dragged down export prices. Fewer days worked (down 1.5 days) due to the parliamentary elections also negatively influenced exports.

In April, stock prices and market interest rates stayed stable as volatility in global financial markets had eased. The Korean won weakened against the US dollar while strengthening against the Japanese yen.

Both housing prices and Jeonse (lump-sum deposits with no monthly payments) prices stayed stable in April, as housing prices remained unchanged and Jeonse prices grew at a slow rate, up 0.1 percent.

The Korean economy has seen domestic demand continue to improve, helped by policies to stimulate the economy and growing economic confidence. However private sector recovery has yet to gather momentum and delayed global economic recovery is posing risks.

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.

May 2016

03

In addition to pursuing reform in the four areas of the public, labor, financial and education sectors, the government will promote industrial reform to accelerate the development of new growth engines and job creation.

1. External economic situation

The global economic recovery remained weak, despite stronger growth in the eurozone backed by the European Central Bank̓s (ECB̓ s ) quantitative easing program, as China and other emerging countries continued to struggle and the US recovery slowed.

US

The US economy grew 0.5 percent (advanced estimates, annualized q-o-q) in the first quarter of 2016 as consumption, investment and exports slowed.

Industrial production fell 0.6 percent month-on-month in March and the ISM Manufacturing Index for April fell to 50.8 due to sluggish global demand.

ISM Manufacturing Index (base=50) 51.0 (Aug 2015) → 50.0 (Sep) → 49.4 (Oct) → 48.4 (Nov) → 48.0 (Dec) → 48.2 (Jan 2016) → 49.5 (Feb) → 51.8 (Mar) → 50.8 (Apr)

Retail sales fell 0.4 percent month-on-month in March as automobile sales were hurt by the early Easter holiday, which fell in March rather than in April. Also, the University of Michigan Consumer Sentiment Index and the Conference Board Consumer Confidence Index both fell in April.

University of Michigan Consumer Sentiment Index (1966=100) 91.9 (Aug 2015) → 87.2 (Sep) → 90.0 (Oct) → 91.3 (Nov) → 92.6 (Dec) → 92.0 (Jan 2016) → 91.7 (Feb) → 91.0 (Mar) → 89.0 (Apr) Conference Board Consumer Confidence Index (1985=100) 101.3 (Aug 2015) → 102.6 (Sep) → 99.1 (Oct) → 92.6 (Nov) → 96.3 (Dec) → 97.8 (Jan 2016) → 94.0 (Feb) → 96.1 (Mar) → 94.2 (Apr)

Existing home sales rose 5.1 percent month-on-month in March rebounding from the previous month, while new home sales continued to decline.

Case-Shiller Home Price Index (y-o-y, %) 4.9 (Jul 2015) → 5.0 (Aug) → 5.2 (Sep) → 5.4 (Oct) → 5.7 (Nov) → 5.6 (Dec) → 5.7 (Jan 2016) → 5.4 (Feb)

04

The Green Book : Current Economic Trends

New home sales (m-o-m, %) -8.6 (Jun 2015) → 6.6 (Jul) → 1.4 (Aug) → -9.9 (Sep) → 5.0 (Oct) → 6.5 (Nov) → 5.1 (Dec) → -3.0 (Jan 2016) → -0.4 (Feb) → -1.5 (Mar)

The unemployment rate was 5.0 percent in April remaining unchanged from the previous month, while nonfarm payrolls grew at a slower pace, increasing by 160,000 jobs, due to a decline in public sector hiring and a slowdown in the manufacturing industry.

Labor force participation rate (%) 62.6 (Jul 2015) → 62.6 (Aug) → 62.4 (Sep) → 62.5 (Oct) → 62.5 (Nov) → 62.6 (Dec) → 62.7 (Jan 2016) → 62.9 (Feb) → 63.0 (Mar) → 62.8 (Apr) Nonfarm payroll increase (m-o-m, thousands) 149 (Sep 2015) → 295 (Oct) → 280 (Nov) → 271 (Dec) → 168 (Jan 2016) → 233 (Feb) → 208 (Mar) → 160 (Apr)

(Percentage change from previous period)

2013

2014

Annual Annual

Real GDP1

1.5

2.4

Q4 2.1

Annual

2.4

Q1 0.6

2015 Q2 3.9

Q3 2.0

Q4 1.4

Q1 0.5

2016 Jan Feb -

Mar -

- Personal consumption expenditure

1.7

2.7

4.3

3.1

1.8

3.6

3.0

2.4

1.9

-

-

-

- Nonresidential fixed investment

3.0

6.2

0.7

2.9

1.6

4.1

2.6

-2.1

-5.9

-

-

-

- Residential fixed investment

9.5

1.8

10.0

5.8

10.1

9.3

8.2

10.1

14.8

-

-

-

Industrial production

1.9

2.9

0.9

0.3

-0.5

-0.7

0.4

-0.8

-0.6

0.5

-0.6

-0.6

Retail sales

3.8

4.1

0.6

2.3

-0.7

1.6

0.9

0.3

-0.1

-0.5

0.2

-0.4

Existing home sales

9.1

-3.1

1.8

6.3

-0.7

4.6

2.3

-3.8

1.7

0.4

-7.3

5.1

Unemployment rate²

7.4

6.2

5.7

5.3

5.5

5.2

5.2

5.0

4.9

4.9

4.9

5.0

Consumer prices (y-o-y)

1.5

1.6

1.2

0.1

-0.1

0.0

0.1

0.4

-

1.4

1.0

-

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

2008.Q1

GDP (q-o-q, annualized rate)

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

Industrial production (q-o-q)

May 2016

05

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

12

(thousands)

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 6.7 percent year-on-year in the first quarter of 2016, expanding at a slower rate than the 6.8 percent growth in the fourth quarter of last year, while major economic indicators, including those for domestic demand as well as exports, rebounded in March.

Manufacturing PMI (base=50) 50.0 (Jul 2015) → 49.7 (Aug) → 49.8 (Sep) → 49.8 (Oct) → 49.6 (Nov) → 49.7 (Dec) → 49.4 (Jan 2016) → 49.0 (Feb) → 50.2 (Mar) → 50.1 (Apr)

China’s GDP growth and fixed asset investment 18

Source: China National Bureau of Statistics

(%)

(%)

70

16

60

14

50

12

40

10

30

8

20

6

10 0

4 2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

GDP (y-o-y, left)

06

The Green Book : Current Economic Trends

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

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

(Percentage change from same period in previous year)

2013

6.9 5.9

Q4 6.8 5.9

Dec 5.9

Q1 6.7 5.8

2016 Feb 5.4

Mar 6.8

7.7 9.7

7.3 8.3

Q4 7.3 7.6

19.6

15.7

15.7

10.7

13.5

11.4

10.3

10.0

10.0

10.7

10.2

10.7

13.1 8.6 2.6 -1.9

12.0 5.5 2.0 -1.9

11.7 8.6 1.5 -2.7

10.0 -2.5 1.4 -5.2

10.6 4.7 1.2 -4.6

10.2 -2.1 1.4 -4.8

10.7 -5.9 1.7 -5.7

11.1 -5.0 1.5 -5.9

11.1 -1.4 1.6 -5.9

10.3 -9.6 2.1 -4.8

10.2 -25.4 2.3 -4.9

10.5 11.5 2.3 -4.3

Annual Annual

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

2015

2014 Q2 7.0 6.3

Q3

6.9 6.1

Q1 7.0 6.4

Annual

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

Japan

Industrial production and retail sales picked up in March from the aftermath of the Toyota factory explosion in the previous month, while exports decelerated further due to a strong yen. Consumer prices excluding fresh food fell 0.3 percent year-on-year in March, the steepest drop in three years. The Bank of Japan (BOJ) decided on April 28 to continue its monetary easing and kept the negative 0.1 percent interest rate unchanged.

(Percentage change from previous period)

2013

Annual Annual

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

1.4 -0.6 1.2 9.5 0.4

2015

2014 -0.0 2.1 1.7 4.8 2.7

Q4 0.5 0.8 1.0 9.1 2.6

Annual

0.5 -1.2 -0.4 3.5 0.8

Q1 1.1 1.1 -1.7 9.0 2.3

Q2 -0.4 -1.3 0.2 6.7 0.5

Q3 0.3 -1.0 1.0 3.7 0.1

Q4 -0.3 0.0 -0.2 -4.6 0.3

Dec -1.2 -0.2 -8.0 0.2

2016 Feb -5.2 -2.3 -4.0 0.3

Q1 -1.1 -2.3 -7.9 0.1

Mar 3.6 1.4 -6.8 -0.1

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

2016.Q1

Industrial production (q-o-q, right)

May 2016

07

Eurozone

The eurozone economy grew 0.6 percent (advanced estimates, q-o-q) in the first quarter of 2016 backed by low oil prices and the ECB’s quantitative easing program. However, deflationary pressures have continued, and delayed labor reform and a potential Brexit are posing risks.

Manufacturing PMI (base=50) 52.3 (Aug 2015) → 52.0 (Sep) → 52.3 (Oct) → 52.8 (Nov) → 53.2 (Dec) → 52.3 (Jan 2016) → 51.2 (Feb) → 51.6 (Mar) → 51.7 (Apr)

(Percentage change from previous period)

2013

2014

Real GDP

-0.3

0.9

Q4 0.4

Industrial production

-0.6

0.9

0.6

Annual Annual

1.6

Q1 0.6

2015 Q2 0.4

Q3 0.3

Q4 0.3

Q1 0.6

Jan -

Feb -

Mar -

1.5

0.9

0.1

0.2

-0.4

-

1.9

-0.8

-

Annual

2016

Retail sales

-0.6

1.4

1.0

2.8

1.1

0.6

0.7

0.2

0.7

0.3

0.3

-0.5

Exports (y-o-y)

1.0

2.2

4.4

5.4

5.6

8.2

4.5

3.4

-

-2.0

1.3

-

Consumer prices (y-o-y)

1.4

0.4

0.3

0.0

-0.3

0.2

0.1

0.2

0.0

0.3

-0.2

0.0

Sources: Eurostat, Bloomberg

Eurozone’s GDP growth and industrial production 3

Source: Eurostat

(%)

(%)

2

10 8 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

GDP (q-o-q, left)

2. Private consumption

2013.Q1

2014.Q1

2015.Q1

2016.Q1

Industrial production (q-o-q, right)

Private consumption in the first quarter of 2016 (preliminary GDP) fell 0.3 percent compared to the previous quarter and rose 2.1 percent compared to a year ago.

08

The Green Book : Current Economic Trends

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

2016.Q1

Private consumption (y-o-y)

(Percentage change from previous period)

2013

2014

Annual Annual

Private consumption² (y-o-y)

1.9

1.7

Q1 0.4

-

-

2.8

2015

-0.3

Q3 0.7

Q4 0.3

Annual¹ 2.2

Q1¹ 0.8

1.7

1.4

1.1

-

1.5

Q2

-0.1

Q3¹ 1.1

Q4¹ 1.4

2016 Q1¹ -0.3

1.7

2.2

3.3

2.1

Q2¹

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

Retail sales in March rose 4.2 percent month-on-month as sales of durable goods (up 10.3%), such as automobiles, semi-durable goods (up 3.3%), such as clothing, and nondurable goods (up 1.2%), such as food, all increased. Year-on-year, the index rose 5.7 percent.

Retail sales 20

Source: Statistics Korea (industrial activity trends)

(%)

15

10

5

0

-5 -10 2006.1

2007.1

Retail sales (m-o-m)

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Retail sales (y-o-y)

May 2016

09

(Percentage change from previous period)

2014 Annual Annual Q3 1.4 2013

Retail sales (y-o-y)

0.7

2.0

2.0

Q4 0.3

Annual

-

Q1 1.0

2.4

3.9

2.2

2015 Q2 0.7

Q3 1.3

Q4 3.1

Q1¹ -1.1

2016 Feb¹ -1.5

Mar¹ 4.2

3.4

3.6

6.1

4.5

3.1

5.7

- Durable goods

0.3

5.1

3.2

0.4

10.2

4.3

0.8

2.0

8.2

-6.2

4.4

10.3

· Automobiles

2.1

16.4

5.1

0.3

21.3

7.0

5.4

3.5

11.2

-11.8

9.3

18.2

- Semi-durable goods3

2.1

-0.8

3.9

-2.3

-1.2

-2.0

-1.0

1.8

2.8

-2.2

-2.2

3.3

- Nondurable goods4

0.4

1.6

-0.8

1.3

2.5

0.6

1.2

0.7

0.3

2.5

-4.4

1.2

2

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

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

Durable goods

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Nondurable goods

Semi-durable goods

Domestic sales of cars and department store sales continued to increase in April, while large discount store sales and domestic sales of gasoline turned positive.

(percentage change from same preriod in previous year)

2015

2016

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

Credit card use

14.8

13.1

Department store sales

14.1

17.4

9.8

8.5

15.8

14.2

13.9

7.2

4.1

-3.8

9.6

-0.1

4.8

8.0

Large discount store sales

10.0

1.6

-0.6

-2.1

13.4

-5.4

-1.4

0.2

Domestic sales of gasoline and diesel

10.4

10.0

4.8

Domestic sales of cars

15.5

22.7

16.3

4.3

8.5

-1.1

-0.7

1.6

17.7

-4.5

9.0

18.9

5.8

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

10

The Green Book : Current Economic Trends

3. Facility investment

Facility investment (advanced estimates of GDP) fell 5.9 percent quarter-on-quarter and 3.0 percent year-on-year in the first quarter of 2016.

(Percentage change from previous period)

2013 Annual Annual¹

Facility investment²

-0.8

(y-o-y)

6.0

Q1¹

2014 Q2¹

Q3¹

Q4¹

Annual¹

Q1¹

2015 Q2¹

Q3¹

Q4¹

2016 Q1¹

-1.1

1.3

0.3

3.5

5.3

0.5

0.8

1.8

0.5

-5.9

-

-

7.4

7.9

4.4

4.4

-

5.8

5.1

6.7

3.9

-3.0

- Machinery

-2.3

5.0

-2.9

0.9

0.9

5.2

2.1

0.1

-2.9

0.8

-3.0

-

- Transportation equipment

3.1

8.3

3.5

2.2

-1.0

-0.4

12.5

1.5

9.3

3.7

7.4

-

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

Facility investment

Source: Bank of Korea (national accounts)

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

Facility investment (q-o-q)

2016.Q1

Facility investment (y-o-y)

(Percentage change from previous period)

2013

2014

2015

Annual Annual Annual

Facility investment index (y-o-y)

-0.8

5.2

6.3

Q1 -0.2

-2.2

Q3 5.2

Q2

Q4 -1.2

Q11 -8.8

Jan -6.5

2016 Feb1 -7.0

Mar1 5.1

-

-

-

9.2

4.5

10.2

1.6

-7.2

-6.0

-7.5

-7.8

- Machinery

-2.1

3.9

2.9

-0.1

-6.0

0.7

-2.6

-5.6

-2.7

-3.5

3.3

- Transportation equipment

2.8

8.8

14.9

-1.0

8.8

16.5

1.0

-14.4

-12.1

-15.5

10.7

1. Preliminary Source: Statistics Korea

May 2016

11

The facility investment index in March rose 5.1 percent month-on-month as both machinery and transportation equipment investment increased. The index fell 7.8 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

Transportation equipment

2015.Q1

Machinery

Facility investment outlooks are mixed as machinery orders and the average manufacturing operation ratio remain low, whereas business sentiment is improving.

Business survey index for manufacturing sector (Bank of Korea) 70 (Aug 2015) → 71 (Sep) → 70 (Oct) → 70 (Nov) → 69 (Dec) → 68 (Jan 2016) → 66 (Feb) → 66 (Mar) → 70 (Apr) → 73 (May)

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

(trillion won)

(y-o-y, %)

60

9 40 8 7

20

6 0

5 4

-20 3 2

-40

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

Machinery orders (left)

12

The Green Book : Current Economic Trends

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

Machinery imports (right)

(Percentage change from same period in previous year)

2014

2013

2015

Annual Annual Annual

Domestic machinery orders

6.6

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

14.8

Q1 -3.0

-3.6

Q2

14.9

Q3 -27.1

Q4 6.9

Q1¹ 0.2

2016 Jan Feb¹ -24.0 22.8

Mar¹ 6.4 -9.7

-

-

-

-0.1

8.6

-10.0

9.2

-6.9

-30.2

36.4

20.5

94.2

-61.7

-66.9

61.7

-85.3

-19.8

56.8

-40.7

80.7 110.6

- Private

5.1

4.8

10.0

11.4

12.5

4.7

10.8

-3.6

-23.1

18.0

-0.9

Machinery imports

1.1

5.8

0.3

8.5

-1.1

2.3

-6.4

-13.0

-3.5

-17.2

-17.4

Average manufacturing operation ratio

76.5

76.1

74.3

74.3

74.3

74.9

73.6

73.0

72.3

73.5

73.2

Facility investment adjustment pressure²

-0.9

-1.4

-1.8

-2.8

-2.8

-1.2

-0.6

-1.2

-2.6

1.5

-1.7

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 first quarter of 2016 (advanced estimates of GDP) rose 5.9 percent quarter-on-quarter and rose 8.7 percent year-on-year.

(Percentage change from previous period)

2013 5.5

1.1

Q1¹ 3.3

-

-

4.1

Annual Annual¹

Construction investment² (y-o-y)

2014 Q2¹ 1.0

Q3¹ -0.3

Q4¹ 1.4

Annual¹

3.9

Q1¹ 5.5

2015 Q2¹ 1.8

Q3¹ 3.3

Q4¹ -2.4

2016 Q1¹ 5.9

0.2

2.3

-1.5

-

0.9

1.0

5.6

7.5

8.7

- Building construction

11.2

6.3

2.7

3.6

2.2

-4.9

6.3

2.5

4.9

5.6

0.3

-

- Civil engineering works

-2.5

-7.3

4.5

-3.0

-6.1

-4.7

-7.3

11.4

-3.8

-1.4

-8.0

-

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

Construction investment (q-o-q)

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

Construction investment (y-o-y)

May 2016

13

The value of construction completed (constant) in March rose 7.3 percent month-on-month as both civil engineering works and building construction increased. The index rose 23.3 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

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

Residential buildings

Building construction

2015.Q1

Civil engineering works

(Percentage change from previous period)

2013

2014

2015

Annual Annual Annual

Construction completed (constant) (y-o-y) - Building construction - Civil engineering works

10.2 15.1 4.4

-0.7 7.8 -12.3

2.3 6.0 -3.8

Q1 4.1 -2.0 4.4 3.7

Q2

-2.1 -3.9 -0.7 -4.4

Q3 6.4 5.9 9.5 0.9

Q4 0.0 8.0 2.6 -5.0

Q11 9.3 14.6 8.9 10.1

2016 Jan Feb1 0.7 1.9 9.4 9.9 4.4 2.4 -6.5 0.7

Mar1 7.3 23.3 2.0 18.7

1. Preliminary Source: Statistics Korea

Shipments of intermediate building materials are increasing, but a fall in construction orders and a slowdown in building permit increases may cap construction investment.

Apartment presales (thousands, Real Estate 114) 64 (Oct 2015) → 76 (Nov) → 58 (Dec) → 8 (Jan 2016) → 9 (Feb) → 39 (Mar) → 34 (Apr) Domestic shipments of cement (million tons) 4.38 (Oct 2015) → 4.18 (Nov) → 4.61 (Dec) → 3.01 (Jan 2016) → 2.89 (Feb) → 5.50 (Mar) (Percentage change from same period in previous year)

2013

2014

2015

Annual 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

16.3 24.5 -4.4 11.2

48.2 50.1 42.9 34.3

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

14

The Green Book : Current Economic Trends

Q1 57.4 47.4 89.5 1.7 11.0

Q2

49.1 11.6 49.3 48.3 25.1

Q3 50.4 21.3 42.5 83.6 57.0

Q4 40.1 -26.6 37.8 45.9 40.4

Q11 14.0 18.0 12.7 18.4 19.7

2016 Jan Feb1 -3.9 85.5 19.5 45.3 -16.9 135.1 43.1 -3.1 26.8 27.8

Mar1 -6.3 -13.2 -12.4 19.1 9.9

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

2016.1

2015.1

Construction orders

Building permit area

5. Exports and imports

Exports (preliminary) declined 11.2 percent year-on-year to US $41.05 billion in April.

Exports fell at a faster pace in April compared with the previous month partly due to less days worked (down 1.5 days). Major export items excluding vessels and mobile phones declined and shipments to most regions fell except for the ASEAN countries.

Export growth by item in april (y-o-y, %) 25.2 (vessels), 3.2 (mobile phones), -11.5 (semiconductors), -14.5 (petrochemicals), -15.6 (machinery), -17.4 (steel products), -18.3 (automobiles) Export growth by region in april (y-o-y, %) 7.1 (ASEAN countries), -0.1 (EU), -6.6 (US), -25.5 (Japan), -18.4 (China), -27.6 (Middle East), -39.7 (Latin America) (US $ billion)

2014 Exports (y-o-y, %) Average daily exports

2015

2016

Annual

Annual

Q1

Q2

Q3

Q4

Apr

572.66

526.76

133.40

135.10

128.23

130.02

46.22

Q1 115.62

Feb 36.09

43.01

Apr1 41.05

2.3

-8.0

-3.0

-7.3

-9.5

-12.0

-8.0

-13.3

-13.0

-8.1

-11.2

2.11

1.93

2.01

1.99

1.87

1.86

1.93

1.74

1.80

1.79

1.82

Mar

1. Preliminary Source: Korea Customs Service

May 2016

15

Export volumes turned positive from a 1.9 percent fall in the previous month to a 5.5 percent increase.

Average daily exports, an indicator adjusted to days worked, declined 5.3 percent year-on-year to US $1.82 billion in April.

Average daily export growth in april (y-o-y, %) -10.6 (Sep 2015) → -16.0 (Oct) → -7.0 (Nov) → -14.3 (Dec) → -15.4 (Jan 2016) → -17.3 (Feb) → -8.1 (Mar) → -5.3 (Apr)

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

2009.1

Export growth rate

2010.1

2011.1

2012.1

Semiconductors

2013.1

2014.1

2015.1

Automobiles

2016.1

Steel

Imports in April (preliminary) fell 14.9 percent year-on-year to US $32.21 billion.

Imports declined at a faster pace compared with the previous month (down 13.9%) led by weak capital goods imports. Commodities and consumer goods imports also fell, but at a slightly slower pace than the previous month.

Import growth by category (y-o-y, %, Mar → Apr) -24.3 → -24.1 (commodities), -3.6 → -7.1 (capital goods), -1.5 → -1.2 (consumer goods)

(US $ billion)

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

2013

2014

Annual

Annual

Q1

Q2

2015 Q3

Q4

Apr

Q1

Feb

Mar

Apr1

525.51

436.50

111.77

110.50

107.96

106.27

37.86

93.56

29.02

33.15

32.21

1.9

-16.9

-15.6

-15.6

-18.7

-17.8

-17.5

-16.3

-14.6

-13.9

-14.9

1.94

1.60

1.68

1.62

1.58

1.52

1.58

1.41

1.45

1.38

1.43

1. Preliminary Source: Korea Customs Service

16

The Green Book : Current Economic Trends

2016

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 $8.84 billion in April, staying in the black for the 51st consecutive month. Surpluses decreased compared with the previous month.

(US $ billion)

Trade balance

2013

2014

Annual

Annual

Q1

Q2

2015 Q3

Q4

Apr

Q1

Feb

2016 Mar

Apr1

47.15

90.26

21.63

24.61

20.28

23.74

8.36

22.06

7.07

9.86

8.84

1. Preliminary Source: Korea Customs Service

Exports and imports 60

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

(US $ billion)

50

40

30

20 10 0 -10 2006.1

2007.1

Trade balance

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

Exports

2016.1

Imports

May 2016

17

6. Mining and manufacturing production

Mining and manufacturing production fell 2.2 percent month-on-month in March as decreases in semiconductors and processed metals offset increases in automobiles and communications equipment.

Compared to the same period of the previous year, the index dropped 1.5 percent.

Industrial production Source: Statistics Korea (industrial activity trends) 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

2015.1

2014.1

Industrial production (m-o-m)

2016.1

Industrial production (y-o-y)

(Percentage change from previous period)

2014 -

-

Q1 -0.3

0.2

-0.6

-1.1

Annual Annual

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

2015 Q2 -0.5

Q3 1.7

Q4 -0.9

Q1¹ -0.8

Jan -2.1

-1.3

-0.1

-0.1

-0.6

-2.2

2016 Feb¹ 3.2 2.2

Mar¹ -2.2 -1.5

-

-

-0.3

-0.5

1.7

-0.7

-1.1

-2.4

3.2

-2.1

0.3

-0.6

-1.2

-1.3

-0.3

0.1

-0.8

-2.3

2.0

-1.5

0.1

-0.2

-0.7

-0.4

2.1

-0.5

-1.1

-4.0

0.6

-0.1

0.4

0.4

0.4

0.5

1.5

-0.4

0.4

-1.6

0.7

2.1

- Exports

-0.3

-1.0

-2.0

-1.5

2.7

-0.5

-3.1

-6.9

0.6

-2.7

Inventory³

-2.5

2.8

3.0

2.3

2.6

-5.4

2.7

4.2

3.6

2.7

Manufacturing Average operation ratio (%) 76.2 indicators Production capacity (y-o-y) 1.7

74.3

74.3

74.3

74.9

73.6

73.0

72.3

73.5

73.2

1.2

1.6

1.5

0.9

0.7

0.4

0.3

0.5

0.2

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

Compared to the previous month, production of automobiles (up 4.8%), communications equipment (up 22.4%) and medical precision optics (up 6.5%) rose, while semiconductors (down 21.3%), processed metals (down 6.7%) and other transportation equipment (down 6.7%) fell.

18

The Green Book : Current Economic Trends

Compared to a year ago, production of refined petroleum (up 11.8%), chemical products (up 3.1%) and automobiles (up 1.9%) rose, while mechanical equipment (down 10.4%), electronic parts (down 11.5%) and processed metals (down 9.5%) declined.

The manufacturing inventory-shipment ratio fell 2.1 percentage points month-on-month to 125.9 percent as inventories fell 0.1 percent and shipments increased 1.5 percent.

Inventories of refined petroleum (up 9.3%), automobiles (up 2.0%) and audio-visual equipment (up 15.2%) rose, while semiconductors (down 4.4%), mechanical equipment (down 2.6%) and chemical products (down 1.9%) declined.

Shipments of semiconductors (up 8.6%), communications equipment (up 27.6%) and automobiles (up 4.5%) rose, while electronic parts (down 3.0%), processed metals (down 2.6%) and refined petroleum (down 1.7%) fell.

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

Shipment growth

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Inventory growth

The average operation ratio of the manufacturing sector fell 0.3 percentage points month-on-month to 73.2 percent.

The mining and manufacturing production for April will be affected by both positive and negative factors as domestic sales of cars has taken advantage of the luxury sales tax cut and the release of new mobile phone models has boosted the manufacturing of related products, while exports have been slowing down.

May 2016

19

Average manufacturing operation ratio

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

2016.1

7. Service sector activity

Service output in March increased 0.8 percent month-on-month and 2.7 percent year-on-year.

Month-on-month, wholesale & retail (up 3.1%), real estate & renting (up 2.3%) and education services (up 1.6%) increased, while financial & insurance services (down 1.1%) and hotels & restaurants (down 2.2%) decreased.

(Percentage change from previous period)

Weight Service activity index - Wholesale & retail

100.0

2013 2014 Annual Annual Annual

1.5

2.3

2.8

2015 Q2 0.5 0.5 Q1

Q3 1.2

2016 Q4 Q11 Jan Feb1 Mar1 1.2 -0.1 -1.2 0.1 0.8

21.6

0.1

0.4

1.7

0.7

0.3

0.9

2.2 -0.9 -0.8 -1.1

- Transportation services

8.5

1.0

1.7

1.4

-0.2

-2.6

1.9

1.9

1.8

0.1

2.6 -3.5

- Hotels & restaurants

7.2

0.5

1.5

-2.0

-0.6

-3.4

2.1

0.8 -0.4

1.1

0.2 -2.2

- Publishing & communications services

8.4

2.2

2.0

-0.6

-1.9

-0.5

3.0

1.1 -1.3 -3.8

- Financial & insurance services

2.3

0.5

0.4

3.1

0.8

14.7

0.5

5.2

9.0

1.6

3.8

1.2 -0.4

- Real estate & renting

5.3

2.5

6.2

8.1

-0.8

6.4

0.9 -0.5 -3.6 -1.0 -6.2

2.3

- Professional, scientific & technical services

5.6

3.3

2.3

-0.4

-2.9

-0.1

1.6

0.3 -2.9 -4.9 -3.8

6.9

- Business services

3.3

2.1

2.5

3.9

2.3

0.4 -1.0

3.4

0.4

- Education services

0.2 -1.7

0.8 -1.1

1.2

10.9

0.8

1.3

0.9

1.0

-0.6

0.0

1.0

0.0 -1.2

0.2

1.6

- Healthcare & social welfare services

7.5

5.2

6.3

6.2

1.9

0.0

1.4

3.1

0.6 -1.1

0.4

1.3

- Entertainment, cultural & sports services

2.9

-0.7

-1.0

1.1

1.5

-2.5

1.0

3.2 -2.7 -7.7

4.6 -2.2

- Membership organizations & personal services

3.6

6.1

-0.5

-0.5

0.7

1.6 -0.2 -2.7

1.2 -2.5

- Sewerage & waste management

0.6

-0.4

1.0

7.2

0.6

3.6

2.5 -5.1 -0.4 14.9

1. Preliminary Source: Statistics Korea

20

The Green Book : Current Economic Trends

4.6 -4.6

7.8 -2.7

Service sector activity

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)

Wholesale & retail 20

2015.1

2016.1

Service sector activity (y-o-y)

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

Wholesale & retail (m-o-m)

Wholesale & retail (y-o-y)

March 2016 service output by business 16

2016.1

2015.1

Source: Statistics Korea (industrial activity trends)

(y-o-y, %)

12

8

4

Transportation services

Total index

Publishing & communications Hotels & services

Professional, scientific & technical Real estate services & renting

Education services

restaurants 0

-4

Wholesale & retail

Financial & insurance services

Business services

Membership organizations & personal services Entertainment, cultural & sports services Health & social welfare services

Sewerage & waste management

The service output outlook for April is positive, despite a slowdown in domestic sales of cars, as average daily stock transactions increased.

Average daily stock transactions (trillion won) 10.1 (Jun 2015) → 11.2 (Jul) → 8.9 (Aug) → 8.1 (Sep) → 8.7 (Oct) → 8.3 (Nov) → 7.1 (Dec) → 8.3 (Jan 2016) → 7.8 (Feb) → 7.5 (Mar) → 8.1 (Apr)

May 2016

21

8. Employment

The number of workers on payroll in March increased by 300,000 from a year earlier to 25,800,000, and the employment rate rose 0.2 percentage points to 65.1 percent.

By industry, manufacturing and services continued to lead employment growth.

By employment status, permanent workers continued to drive employment growth, while temporary and daily workers fell at a slower pace, and self-employed workers kept decreasing.

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

21

-400 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

Employment growth (y-o-y, left)

2013.1

2014.1

2015.1

2016.1

Number of employed (seasonally adjusted, right)

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

Original data

22

The Green Book : Current Economic Trends

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Seasonally adjusted rate

Employment by industry

Source: Statistics Korea (employment trends)

(%)

100

80

60

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 71.5 71.5 70.9

40 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

7.0

6.9

7.1

7.1

7.1

7.1

7.0

7.0

6.9

7.0

7.1

7.0

6.8

6.8

20 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 17.9 17.9 17.5 0 4.4 4.5 2014.1 2

5.3 3

6.1 4

6.4 5

6.5 6

6.2 7

Services

6.2 8

6.2 9

6.2 10

5.8 11

4.9 3

4.2 3.9 4.1 12 2015.1 2

Construction

5.9 5

5.9 6

5.8 7

5.7 8

5.7 9

5.6 10

Manufacturing

2012 2013

5.1 11

4.0 3.6 3.8 12 2016.1 2

4.8 3

Agriculture, forestry & fisheries

2015 Q2 Q3

2014

Annual Annual Annual Q3

Number of employed (millions)

5.5 4

Q4 Annual Q1

Q4

Mar

2016 Feb Mar

Q1

24.68 25.07 25.60 25.93 25.77 25.94 25.27 26.10 26.24 26.14 25.50 25.55 25.42 25.80

Employment rate (%)

59.4 59.5 60.2 60.9 60.4 60.6 59.0 60.7 60.9 60.5 59.5 59.7 58.7 59.6

(Seasonally adjusted)

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

Employment growth (y-o-y, thousands)

437

386

533

517

422

337

354

308

310

376

338

287

223 30.0

(Excluding agriculture, forestry & fisheries)

451

394

601

638

531

444

441

435

419

482

408

341

284 32.7

- Manufacturing

14

79

146

194

129

156

139

147

164

176

116

126

108

124

- Construction

22

-19

42

57

72

27

72

44

11

-19

79

-7

-6

-33

- Services

416

318

424

403

336

250

222

235

234

309

196

216

176

229

- Agriculture, forestry & fisheries

-14

-8

-87 -127 -115 -106

-70

-54

-61

-28

-68 -121 -109 -107

Source: Statistics Korea

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

80

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

3.7

3.8

(%) 4.2

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 20.9 20.9 21.3 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

5.7

5.5

5.3

60 19.2 19.4 19.6 19.8 19.3 19.2 19.4 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

40

20

0

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 50.4 50.6 49.9

2014.1 2

3

4

Unpaid family workers

5

6

7

8

9

10

Self-employed workers

11

12 2015.1 2

Daily workers

3

4

5

6

7

8

9

Temporary workers

10

11

12 2016.1 2

3

Permanent workers

May 2016

23

2012 2013

Q4 Annual Q1

2015 Q2 Q3

Q4

Mar

Q1

2016 Feb Mar

2014

Annual Annual Annual Q3

Employment growth (y-o-y, thousands)

437

386

533

517

422

337

354

308

310

376

338

287

223

300

- Wage workers

315

483

548

519

476

487

442

422

521

565

402

427

376

434

路 Permanent workers

436

615

443

333

355

432

355

332

505

536

331

505

496

510

路 Temporary workers

-2

-96

140

226

141

54

82

3

1

129

43

15

-9

34

-120

-37

-35

-40

-20

1

4

87

15 -100

28

-93 -111 -110

121

-97

-15

-3

124

-67

1

19

7

- Male

234

186

266

268

- Female

203

200

267

- 15 to 29

-36

-50

- 30 to 39

-31

-21

路 Daily workers - Nonwage workers 路 Self-employed workers

-54 -151

-88 -114 -211 -189

-64 -140 -154 -134

-89

-49

-37 -136 -135

-19

-96

-98 -105

196

132

141

145

111

132

166

107

60

130

249

226

205

213

163

199

244

172

180

163

170

77

102

56

68

32

90

50

100

39

40

18

76

-21

-7

-29

-38

-1

-56

-60

-36

-3

-21

-44

-29

- 40 to 49

11

22

38

15

4

-14

-47

-15

1

7

-67

6

15

7

- 50 to 59

270

254

239

215

190

149

177

138

145

135

158

84

77

60

- 60 or more

222

181

200

192

201

172

192

150

174

169

210

179

158

185

Source: Statistics Korea

The number of unemployed persons in March was up 79,000 year-on-year to 1,155,000, and the unemployment rate rose 0.3 percentage points year-on-year to 4.3 percent. The unemployment remained unchanged or rose in all age groups except in the group of those in their 40s.

The economically inactive population in March increased 61,000 from a year earlier to 16,360,000, while the labor force participation rate rose 0.2 percentage points year-on-year to 62.2 percent.

The number of those economically inactive due to education (down 145,000, y-o-y) and childcare (down 81,000, y-o-y) decreased, while those due to rest (up 70,000, y-o-y) increased.

2012 2013

2014

Annual Annual Annual

Q3

Q4 Annual Q1

2015 Q2 Q3

Q4

Mar

Q1

2016 Feb

Mar

Number of unemployed (thousands)

820

807

937

884

854

976

Unemployment growth (y-o-y, thousands)

-35

-13

137

107

121

40

58

65

45

-9

52

64

114

79

- Male

-26

-6

49

37

59

24

25

42

31

-3

11

51

73

82

- Female Unemployment rate (%)

1,089 1,042 929

845 1,076 1,153 1,317 1,155

-9

-7

80

70

63

16

32

23

14

-6

41

13

42

-3

3.2

3.1

3.5

3.3

3.2

3.6

4.1

3.8

3.4

3.1

4.0

4.3

4.9

4.3

(Seasonally adjusted)

3.2

3.1

3.5

3.5

3.5

3.6

3.7

3.8

3.6

3.4

3.7

3.8

4.1

3.8

- 15 to 29

7.5

8.0

9.0

8.6

8.3

9.2

10.3

9.9

8.4

8.0

10.7

11.3

12.5

11.8

- 30 to 39

3.0

3.0

3.1

3.0

2.8

3.1

3.1

3.3

3.0

2.9

3.3

3.2

3.4

3.3

- 40 to 49

2.0

2.0

2.2

2.1

2.1

2.3

2.4

2.5

2.3

2.0

2.6

2.4

2.7

2.5

- 50 to 59

2.1

1.9

2.2

2.1

2.2

2.4

2.6

2.6

2.4

1.9

2.5

2.6

2.6

2.7

- 60 or more

2.4

1.8

2.3

1.5

1.6

2.5

4.1

2.2

2.0

2.1

2.8

4.2

6.2

2.8

Source: Statistics Korea

24

The Green Book : Current Economic Trends

Unemployment rate 6

Source: Statistics Korea (employment trends)

(%)

5

4

3

2 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

Original data

Seasonally adjusted rate

Labor force participation rate 65

2016.1

Source: Statistics Korea (employment trends)

(%)

64 63 62 61 60 59 58 57 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

Original data

Seasonally adjusted rate

2012 2013

2014

Annual Annual Annual

Economically inactive population (millions)

2016.1

Q3

Q4 Annual Q1

2015 Q2 Q3

Q4

Mar

Q1

2016 Feb Mar

16.08 16.22 15.98 15.76 16.07 16.11 16.47 15.84 15.92 16.19 16.30 16.57 16.54 16.36

Labor force participation rate (%)

61.3

61.5

62.4

63.0 62.4 62.6 61.5 63.2 63.0 62.5 62.0 61.7 61.8 62.2

(Seasonally adjusted)

61.3

61.5

62.4

62.5 62.4 62.6 62.8 62.3 62.5 62.6 62.6 62.8 63.0 62.8

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

128

141 -246 -222 -101

- Childcare - Housework

-2 123

1 -39 -3 -131

-41 -99

-31 -67

128

72

150

162

128

106

99

111

61

8 -45

41 -91

50 -41

3 -19

-63 -29

28 -115 -104 -56 32 28

-81 11

- Education

-12

77

-81 -109

-72 -146 -141 -213 -112 -118 -153

108 -133 -145

- Old age - Rest

148 -53

54 -7

93 -92

89 -15

161 97

91 -65

109 141

68 154

95 151

103 123

171 136

65 181

155 143

148 70

Source: Statistics Korea

May 2016

25

9. Financial markets 9.1 Stock market

The KOSPI fell 0.1 percent in April from 1,996 points to 1,994 points and the KOSDAQ rose 1.6 percent from 688 points to 700 points.

The KOSPI and KOSDAQ reached yearly highs in April, rising to 2,022 points and 704 points, respectively, backed by rising oil prices and the release of Chinese trade data for March, which showed that exports increased 11.5 percent year-on-year after decreasing 25.4 percent in the previous month.

The Korean stock indices fell toward the end of the month due to bargain hunting and concerns about slowing US economic growth. US GDP rose at an annual pace of 0.5 percent in the first quarter, the slowest pace in two years.

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

(Closing rate)

Mar 2016

KOSPI Apr 2016

Change1

Mar 2016

KOSDAQ Apr 2016

Change1

Stock price index (points)

1,995.9

1,994.2

-1.7 (-0.1%)

688.4

699.8

11.4 (1.6%)

Market capitalization (trillion won)

1,265.0

1,262.0

-3.0 (-0.2%)

206.2

212.6

6.4 (3.1%)

4.4

4.7

0.3 (6.8%)

3.1

3.4

0.3 (9.7%)

32.6

32.6

0 (0.0%)

9.7

9.8

0.1 (0.5%)

Average daily trade value (trillion won) Foreign stock ownership (%, %p) 1. Change from the end of the previous month in April 2016 Source: Korea Exchange

26

The Green Book : Current Economic Trends

9.2 Exchange rate

The dollar-won exchange rate fell to 1,139.3 won at the end of April, after fluctuating in a range of 1,140 to 1,150 won per dollar in line with changes in major economies’ monetary policies and investors’ attitudes toward risk. The dollar depreciated toward the end of the month as the Fed maintained its accommodative monetary policy stance and the BOJ held off further stimulus measures.

The 100 yen-won exchange rate rose to 1,062.2 won in April, as the dollar-yen exchange rate fell from 112.3 yen at the end of March to 107.3 yen at the end of April, reflecting investors’ disappointment with the BOJ’s inaction at its April policy meeting.

(Closing rate)

2010 Dec

2011 Dec

2012 Dec

2013 Dec

2014 Dec

2015 Dec

Mar

2016 Apr

Change1

Dollar-Won

1,134.8

1,151.8

1,070.6

1,055.4

1,099.3

1,172.5

1,143.5

1,139.3

0.4

100 Yen-Won

1,393.6

1,481.2

1,238.3

1,002.3

913.0

974.1

1,018.6

1.062.2

-4.1

1. Appreciation from the end of the previous year in April 2016 (%); the exchange rate is based on the closing price at 3:00 p.m., local time.

Source: Bank of Korea

Foreign exchange rates

Source: Bank of Korea

1,800 (month-end, \) 1,600

1,400

1,200

1,000

800

600 2006.1

2007.1

2008.1

2009.1

Dollar-Won

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

100 Yen-Won

9.3 Bond market

Treasury bond yields remained stable in April. 3-year Treasury bond yields edged up 1 basis point to 1.45 percent, and 5-year Treasury bond yields remained unchanged at 1.55 percent.

May 2016

27

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

3-yr Treasury bond yield

2015.1

2016.1

3-yr corporate bond yield

(Closing rate, %)

Call rate (1 day)

2010 Dec 2.51

2011 Dec 3.29

2012 Dec 2.77

2013 Dec 2.52

2014 Dec 2.03

2015 Dec 1.52

Feb 1.52

Mar 1.53

2016 Apr 1.50

Change1 -3

CD (91 days)

2.80

3.55

2.89

2.66

2.13

1.67

1.63

1.61

1.61

0

Treasury bonds (3 yrs)

3.38

3.34

2.82

2.86

2.10

1.66

1.45

1.44

1.45

1

Corporate bonds (3 yrs)

4.27

4.21

3.29

3.29

2.43

2.11

1.94

1.93

1.92

-1

Treasury bonds (5 yrs)

4.08

3.46

2.97

3.23

2.28

1.81

1.56

1.55

1.55

0

1. Basis point, changes from the previous month in April 2016 Source: Bank of Korea

9.4 Money supply & money market

M2 (monthly average) in February increased 8.3 percent from a year earlier. Private sector credit expanded at a faster pace led by bank loans, and money supply from the public sector also increased.

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

2010

2011

2012

2013

2014

Annual

Annual

Annual

Annual

Annual

Annual

M1²

11.8

6.6

3.8

9.5

10.9

M2

8.7

4.2

5.2

4.8

LfÂł

8.2

5.3

7.8

6.9

1. Balance at end February 2016, trillion won 2. M1 excluding corporate MMFs and individual MMFs while including CMAs 3. Liquidity aggregates of financial institutions (mostly identical with M3) Source: Bank of Korea

28

The Green Book : Current Economic Trends

2015 18.6

Nov 19.6

Jan 20.7

2016 Feb 19.4

Feb1 698.4

6.6

8.6

7.5

8.1

8.3

2,279.1

7.0

9.7

8.9

8.9

8.9

3,125.3

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

2016.1

M1

Lf

Bank deposits increased at a slower pace in March compared with the previous month. Time deposits and certificates of deposit (CD) fell 0.3 trillion won and 1.3 trillion won, respectively, while instant access deposits surged 7.6 trillion won due to corporations depositing funds to prepare for dividend payments in April.

Asset management company (AMC) deposits dropped, led by money market funds (MMF) (down 13.2 trillion won) as financial institutions withdrew funds to meet their quarter-end financial ratio requirements.

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

2016.1

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

Bank deposits AMC deposits

2010

2011

2012

2013

2014

Annual

Annual

Annual

Annual

Annual

Annual

36.9 -16.7

58.9 -16.6

37.0 18.8

41.0 17.7

115.4 42.4

100.3 44.4

2016

2015 Dec 20.7 -4.9

Jan -2.9 23.5

Feb 13.4 11.6

Mar 3.3 -11.1

Mar1 1,404.9 445.7

1. Balance at end March 2016 Source: Bank of Korea

May 2016

29

10. Balance of payments

Korea’s current account in March (preliminary) posted a surplus of US $10.09 billion, staying in the black for 49 consecutive months.

The goods account surplus increased month-on-month from US $7.54 billion to US $12.45 billion as exports declined at a slower rate while imports fell at a faster rate.

Growth in goods exports (y-o-y, %) -10.1 (Fed 2016) → -9.3 (Mar) Growth in goods imports (y-o-y, %) -13.8 (Feb 2016) → -16.1 (Mar) Export growth by item in march (y-o-y, %, customs clearance basis) -8.1 (total), 22.3 (mobile phones), -1.8 (semiconductors), 8.0 (steel), -7.4 (automobiles), -28.8 (vessels), -39.9 (oil products) Import growth by category in march (y-o-y, %, customs clearance basis) -13.9 (total), -24.3 (commodities), -3.6 (capital goods), -1.5 (consumer goods)

Current account balance 14

Source: Bank of Korea (balance of payments trends)

(US $ billion)

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

2007.1

Goods account

2008.1

2009.1

2010.1

2011.1

Services account

2012.1

2013.1

2014.1

2015.1

2016.1

Current account

The services account deficit decreased month-on-month from US $1.24 billion to US $1.00 billion, despite an increase in the other businesses account deficit, as the intellectual property rights account and the construction account improved.

Services account (US $ billion, Feb → Mar) -0.35 → -0.39 (manufacturing), -0.04 → -0.01 (transportation), -0.50 → -0.59 (travel), 0.70 → 0.92 (construction), -0.58 → -0.18 (intellectual property rights), -0.48 → -0.75 (other businesses)

30

The Green Book : Current Economic Trends

Travel balance

Source: Bank of Korea (balance of payments trends)

4 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

2015.1

Travel revenue

2016.1

Travel payment

The primary income account shifted to a deficit of US $0.86 billion from a surplus of US $0.85 as overseas dividend payments increased. The secondary income account went from a surplus of US $0.02 billion to a deficit of US $0.51 billion.

(US $ billion)

2015

2014 Current account

Q11 84.37 105.87 22.44

Q21 27.92

- Goods balance

88.89 120.29 24.22

- Services balance

-3.68

-4.39

Annual Annual1

-15.71

2016 Jan1 Feb1 6.82 7.17

Mar1 10.09

29.11

Q41 26.41

Mar1 10.10

Q11 24.08

33.68

30.64

31.76

10.89

27.88

7.90

7.54

12.45

-3.09

-3.56

-4.67

-0.64

-4.17

-1.93

-1.24

-1.00

Q31

- Primary income balance

4.15

5.90

3.83

-1.56

2.73

0.90

0.23

1.25

1.25

0.85

-0.86

- Secondary income balance

-4.98

-4.61

-1.22

-1.11

-0.70

-1.58

-0.38

-0.88

-0.40

0.02

-0.51

1. Preliminary Source: Bank of Korea

The capital and financial account in March (preliminary) saw an outflow of US $12.91 billion.

Capital & financial account balance* (US $ billion) 10.73 (Mar 2015) → 10.54 (Sep) → 11.08 (Oct) → 8.72 (Nov) → 7.86 (Dec) → 6.48 (Jan 2016) → 9.50 (Feb) → 12.91 (Mar) * Positive figures represent net outflows, and negative figures represent net inflows.

Net FDI outflows expanded from US $1.55 billion a month earlier to US $3.56 billion in March, as inbound FDI fell at a faster pace (down US $0.04 billion → down US $0.64 billion) while Korean FDI rose (up US $1.51 billion → up US $2.92 billion).

Net outflows of portfolio investment decreased from US $6.20 billion in the previous month to US $5.87 billion as foreign investment in Korean shares increased (down US $3.26 billion → up US $3.40 billion), even though Korean investment in foreign shares expanded at a faster pace (up US $2.94 billion → up US $9.27 billion).

Net outflows of financial derivatives investment (US $0.76 billion → US $0.79 billion) and those of other investment (US $2.56 billion → US $2.80 billion) both expanded.

May 2016

31

The current account surplus is expected to decrease month-on-month in April as net exports fell to US $8.84 billion.

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

Direct investment

2009.1

2010.1

2011.1

Portfolio investment

2012.1

2013.1

2014.1

Financial derivatives

2015.1

2016.1

Capital & financial account

11. Prices

11.1 Consumer prices

Consumer prices rose 1.0 percent year-on-year in April.

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

Consumer price inflation (m-o-m)

32

The Green Book : Current Economic Trends

2012.1

2013.1

2014.1

2015.1

2016.1

Consumer price inflation (y-o-y)

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

Jun 0.7 0.0

Jul 0.7 0.2

(%)

2015 Sep 0.6 -0.2

Aug 0.7 0.2

2016 Oct 0.9 0.0

Nov 1.0 -0.1

Dec 1.3 0.3

Jan 0.8 0.0

Feb 1.3 0.8

Mar 1.0 -0.3

Apr 1.0 0.1

Source: Statistics Korea

Prices 16

Source: Statistics Korea (consumer price trends)

(y-o-y, %)

12 8 4 0 -4 -8 2006.1

2007.1

2008.1

2009.1

2010.1

Consumer price inflation

2011.1

2012.1

2013.1

2014.1

Core inflation

2016.1

2015.1

Producer price inflation

Manufactured product prices fell at a slower pace year-on-year as oil product prices rose amid rising international oil prices, and durable goods prices and processed food prices increased due to the release of new mobile phone models and the end of discounts on baby formula.

Personal service prices rose at a slower pace driven by travel costs.

Consumer price inflation in major sectors Total

Agricultural, livestock & fishery products 5.4

Manufactured Oil products products -0.9 -12.4

Public utilities -8.0

Public services 2.1

Personal services 2.2

Housing rents 2.9

Mar (y-o-y, %)

1.0

Apr (y-o-y, %)

1.0

5.5

-0.6

-11.8

-8.0

2.2

2.0

2.7

-

0.40

-0.18

-0.49

-0.39

0.31

0.63

0.26

- Contribution (%p) Source: Statistics Korea

Core inflation, which excludes food and energy, stood at just under 2.0 percent. (percentage change from same period in previous year)

2015 1.7

2016 Mar 1.8 1.7

Apr 1.8

1.9

2.0

1.9

Dec 2.4

Jan

2.3

Nov 2.4

2.6

2.7

2.8

Jul

Aug

Sep

Oct

Consumer prices excluding oil and agricultural products

2.0

2.1

2.1

Consumer prices excluding food and energy

2.5

2.5

2.5

Feb

1.9

Source: Statistics Korea

May 2016

33

Fresh food price inflation slowed slightly in April from 9.7 percent year-on-year in the previous month to 9.6 percent, despite higher vegetable and seafood prices, as fruit prices stabilized.

(Percentage change from same period in previous year)

2015 Consumer prices for basic necessities

Jun

Jul

Aug

Sep

6.1

6.0

4.0

0.7

Oct 3.7

Nov 3.0

Dec

Jan

6.2

4.2

2016 Feb Mar 9.7 9.7

Apr 9.6

Source: Statistics Korea

11.2 International oil and commodity prices

International oil prices rose in April as Us producers reduced their production and the dollar weakened after fluctuating earlier due to discussions among oil producing countries regarding a production cut that ultimately did not materialize. Dubai crude prices rose to US $44.3 per barrel on April 29.

Dubai crude (US $/barrel) 35.3 (1st week Apr) → 39.1 (2nd week) → 39.7 (3rd week) → 42.4 (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

Dubai crude

2016.1

WTI

(US $/barrel, period average)

Annual

Annual

Annual

Dubai crude

105.2

96.6

50.7

Q1 51.9

2015 Q2 60.5

Brent crude

108.7

99.4

53.6

55.1

63.5

51.3

44.7

35.2

31.9

33.5

39.8

43.3

WTI crude

98.0

92.9

48.8

48.6

58.0

46.5

42.2

33.7

31.8

30.6

38.0

41.1

2013

2014

Source: Korea National Oil Corporation

34

The Green Book : Current Economic Trends

Q3 49.9

Q4 40.8

Q1 30.5

Jan 26.9

2016 Feb 28.9

Mar 35.2

Apr 39.0

Domestic gasoline prices were up in April as a rebound in international oil prices was reflected with a time lag.

Domestic gasoline prices (won/liter) 1,362.6 (1st week Apr) → 1,361.4 (2nd week) → 1,361.5 (3rd week) → 1,361.1 (4th week) International gasoline prices (US $/barrel) 52.1 (4th week Mar) → 51.4 (5th week) → 48.8 (1st week Apr) → 52.2 (2nd week) Dollar-won exchange rate (won) 1,160.7 (4th week Mar) → 1,159.6 (5th week) → 1,152.0 (1st week Apr) → 1,150.0 (2nd week)

(Won/liter, period average)

2015 2016 Q1 Q2 Q3 Q4 Q1 Jan Feb Mar Apr Gasoline prices 1,924.5 1,827.3 1,510.4 1,485.4 1,543.2 1,544.4 1,468.4 1,362.6 1,385.3 1,351.7 1,350.1 1,361.7 Diesel prices

2013

2014

Annual

Annual

Annual

1,729.6 1,637.7 1,299.6 1,312.6 1,344.2 1,309.3 1,232.6 1,121.6 1,157.3 1,101.1 1,103.2 1,121.4

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)

International prices of wheat and soybeans rose due to bad weather conditions, while international corn prices were up as China’s Ministry of Agriculture on April 7 announced its plan to reduce the land it allocates for growing corn by around 9 percent by 2020.

International grain price increases in April (monthly average, m-o-m, %) 1.9 (wheat), 2.8 (corn), 8.3 (soybean)

May 2016

35

International copper prices fell amid worries about a supply glut following the CESCO Week World Copper Summit 2016, where against market expectations cost cutting plans were announced instead of plans to reduce production. International aluminum prices rose due to expectations that global demand would exceed supply within the year if major aluminum producers, including Rusal, carry out planned production cuts.

Nonferrous metal price increases in April (monthly average, m-o-m, %) -1.9 (copper), 0.3 (tin), 1.7 (nickel), 2.4 (aluminum)

International commodity prices

Sources: Bloomberg (CRB), Bank of Korea (Reuters Index) * C RB 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 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

CRB (left)

0 2016.1

2015.1

Reuters index (right)

(Period average)

2013 Reuters Index1 (sep 18,1931=100) 2,774

Q1

2015 Q2

Q3

Q4

Q1

Jan

2016 Feb

Mar

Apr

2,368

2,394

2,287

2,269

2,115

2,147

2,067

2,132

2,161

2014

Annual Annual Annual

2,523

2,328

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 April.

Apartment prices rose 0.04 percent in the Seoul metropolitan area, which includes Seoul (up 0.08%), Gyeonggi Province (up 0.01%) and Incheon (up 0.00%).

36

The Green Book : Current Economic Trends

Apartment prices stayed unchanged in areas excluding the Seoul metropolitan area, which include the five metropolitan cities (up 0.03%) and the eight provinces (down 0.02%).

Apartment price increases in five metropolitan cities (m-o-m, %) Busan (0.1), Daegu (-0.2), Gwangju (0.1), Daejeon (0.0), Ulsan (0.1)

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

7

Seoul metropolitan area

2015.1

7

2016.1

Areas excluding Seoul metropolitan area

apartment prices

(Percentage change from previous period)

2010

2011

2012

2013

2015

2014

2016 Feb 0.00

Mar 0.00

Apr 0.02

Nationwide

1.9

6.9

0.0

0.3

1.7

3.5

0.3

Apr Annual Jan 0.4 0.1 0.04

Seoul metropolitan area

-1.7

0.5

-3.0

-1.1

1.5

4.4

0.4

0.6

0.1

0.04

0.00

0.00

0.04

Seoul

-1.2

0.3

-2.9

-1.4

1.1

4.6

0.4

0.5

0.1

0.05

0.00

0.01

0.08

Gangnamš

-1.0

0.3

-3.5

-1.1

1.2

5.2

0.4

0.6

0.1

0.03

-0.03

-0.02

0.09

Gangbuk²

-1.4

0.3

-2.3

-1.7

1.1

3.9

0.3

0.4

0.2

0.06

0.04

0.04

0.07

Areas excluding the Seoul

6.4

15.1

3.1

1.7

1.9

2.7

0.2

0.3

0.0

0.05

0.00

-0.01

0.00

Annual Annual Annual Annual Annual Annual

Mar

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

Apartment rental prices nationwide rose 0.1 percent month-on-month in April. 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 (0.0), Seocho (0.0), Songpa (0.0), Seongdong (0.2), Mapo (0.2), Guro (0.3)

May 2016

37

Apartment rental prices

(Percentage change from previous period)

2010

2011

2012

2013

2015

2014

Nationwide

7.1

12.3

3.5

4.7

3.4

4.8

0.5

Apr Annual Jan 0.6 0.5 0.1

Seoul metropolitan area

6.3

11.0

2.1

6.2

4.7

7.1

0.7

0.9

Annual Annual Annual Annual Annual Annual Mar

0.7

2016 Feb Mar 0.1 0.1

0.2

0.2

0.2

Apr 0.1 0.2

Seoul

6.4

10.8

2.1

6.6

3.6

7.2

0.6

0.8

0.6

0.2

0.1

0.1

0.1

Gangnamš

7.6

11.1

2.4

6.7

3.3

7.9

0.7

1.0

0.6

0.3

0.1

0.1

0.1

Gangbuk²

5.1

10.6

1.8

6.4

3.8

6.5

0.5

0.6

0.6

0.2

0.2

0.1

0.1

Areas excluding the Seoul

9.2

14.5

4.6

3.3

2.2

2.8

0.3

0.3

0.3

0.1

0.1

0.1

0.1

2014.1

7

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

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

Seoul metropolitan area

2015.1

7

2016.1

Areas excluding Seoul metropolitan area

Monthly apartment transaction volume Source: Ministry of Land, Infrastructure and Transport 160 (thousands) 140 120 100 80 60 40 20 0 2009.1

7

Nationwide

38

2010.1

7

2011.1

7

2012.1

7

Seoul metropolitan area

The Green Book : Current Economic Trends

2013.1

7

2014.1

7

2015.1

7

2016.1

Areas excluding Seoul metropolitan area

Apartment sales transactions in March increased 31.4 percent to 77,853 transactions from 59,265 transactions a month earlier and decreased 30.4 percent year-on-year from 111,869 transactions.

Apartment sales transactions

(Thousands)

2015 2016 Annual1 Annual1 Annual1 Annual1 Annual1 Annual1 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Nationwide

2010

2011

2012

2013

2014

67

82

61

71

84

99

120 110 110 111

94

86

106

98

88

62

59

78

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

12.2 Land market

Land prices nationwide rose 0.22 percent month-on-month in March.

Land prices increased 0.18 percent in the Seoul metropolitan area, led by Seoul (up 0.21%) and Gyeonggi Province (up 0.17%).

Land price increases in Seoul metropolitan area (m-o-m, %) 0.18 (Aug 2015) → 0.18 (Sep) → 0.21 (Oct) → 0.20 (Nov) → 0.20 (Dec) → 0.13 (Jan 2016) → 0.14 (Feb) → 0.18 (Mar)

Land prices increased 0.27 percent in areas excluding the Seoul metropolitan area, led by Busan (up 0.34%), Daejeon (up 0.32%) and Ulsan (up 0.26%).

Land price increases in areas excluding Seoul metropolitan area (m-o-m, %) 0.21 (Aug 2015) → 0.22 (Sep) → 0.25 (Oct) → 0.32 (Nov) → 0.34 (Dec) → 0.24 (Jan 2016) → 0.22 (Feb) → 0.27 (Mar)

Land prices

(Percentage change from previous period)

2009 2010 2011 2012 2013 2014

2015 2016 Q2 Q3 Q4 Annual Jan Feb Mar 2.40 0.48 0.59 0.60 0.72 0.56 0.17 0.17 0.22

Annual Annual Annual Annual Annual Annual Annual Q1

Nationwide

0.96

1.05

1.17

0.96

1.14

1.96

Seoul

1.40

0.53

0.97

0.38

1.21

2.66

2.69 0.57

0.69

0.69 0.72 0.57 0.19 0.18 0.21

Gyeonggi

1.22

1.49

1.47

1.04

0.91

1.24

1.73 0.35

0.41

0.43 0.52 0.37 0.09 0.11 0.17

Incheon

1.99

1.43

0.66

0.46

0.87

1.35

1.95 0.37

0.53

0.54 0.50 0.34 0.10 0.12 0.13

Source: Korea Appraisal Board

There were 248,000 land transactions in March, up 29.5 percent from the previous month and down 10.9 percent from a year ago (278,000).

Land transactions nationwide increased month-on-month, led by Seoul (up 27.5%), Gyeonggi Province (up 29.5%), Busan (up 32.0%), Gwangju (up 31.1%), Sejong (up 51.0%) and South Chungcheong Province (up 41.9%).

May 2016

39

Vacant land transactions, which accounted for 42.1 percent of total land transactions, recorded 104,000 in March, up 33.6 percent month-on-month and 5.6 percent compared with a year ago (99,000).

Land transactions 2010

2011

(Land lots, thousands)

2012

2013

2014

2015 2016 Annual1 Annual1 Annual1 Annual1 Annual1 Annual1 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Nationwide 187 208 170 187 220 257 278 293 262 279 290 241 229 263 259 274 207 191 248 Seoul

16

18

13

17

22

30

33

36

34

33

36

29

27

31

29

28

21

20

26

Gyeonggi

41

43

33

37

46

58

62

66

60

65

62

56

58

63

61

62

48

44

56

Incheon

8

10

8

8

10

12

12

13

12

13

15

13

12

14

13

12

8

8

10

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

2008.1

2009.1

2010.1

2011.1

2012.1

Seoul metropolitan area

2014.1

2015.1

2016.1

Areas excluding Seoul metropolitan area

Land and consumer prices since 1970s 60

2013.1

Source: Korea Appraisal Board

(y‐o‐y, %)

50 40 30 20 10 0 -10 -20 1975

1980

1985

1990

Land price inflation

40

The Green Book : Current Economic Trends

1995

2000

2005

2010

2015

Consumer price inflation

13. Composite indices of business cycle indicators

Industrial output in March increased 0.6 percent month-on-month and 2.2 percent year-on-year. Output rose month-on-month in construction (up 7.3%), services (up 0.8%) and public administration (up 7.3%), and fell in mining & manufacturing (down 2.2%).

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

2016.1

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

Aug

Sep

2015 Oct

Nov

Dec

Jan1

2016 Feb1

Mar1

1.2 1.3

1.0 4.6

-0.8 2.5

-0.5 2.0

1.5 2.8

-1.4 1.7

0.6 2.3

0.6 2.2

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

126.8 0.8

128.0 0.9

128.8 0.6

129.1 0.2

129.6 0.4

129.7 0.1

130.0 0.2

130.4 0.3

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

100.0 0.4

100.6 0.6

100.9 0.3

100.7 -0.2

100.7 0.0

100.5 -0.2

100.4 -0.1

100.3 -0.1

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

132.0 0.8

133.3 1.0

134.3 0.8

134.8 0.4

135.0 0.1

135.4 0.3

135.9 0.4

136.7 0.6

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

102.0 0.2

102.5 0.5

102.8 0.3

102.6 -0.2

102.2 -0.4

102.0 -0.2

101.9 -0.1

101.9 0.0

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

1. Preliminary

The cyclical indicator of the coincident composite index fell 0.1 points month-on-month to 100.3. Three components of the coincident composite index, such as the value of construction completed, retail sales and domestic shipments, increased, while four others, including imports, mining & manufacturing production and service output, decreased.

May 2016

41

Components of the coincident composite index in March (m-o-m) value of construction completed (3.3%), retail sales (0.4%), domestic shipments (0.4%), imports (-1.2%), mining & manufacturing production (-0.4%), service output (-0.2%), nonfarm payroll employment (-0.1%)

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

(points)

100

90 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

The cyclical indicator of the leading composite index remained unchanged month-on-month at 101.9.

Five components of the leading composite index, including the value of construction orders received, international commodity prices and the inventory circulation indicator, were up, while four others, such as the ratio of job openings to job seekers and the consumer expectations index, were down.

Components of the leading composite index in March (m-o-m) value of construction orders received (13.1%), international commodity prices (0.5%), inventory circulation indicator (0.3%p), domestic shipments of machinery (0.2%), KOSPI (0.1%), ratio of job openings to job seekers (-1.6%p), consumer expectations index (-0.5p), ratio of export to import prices (-0.2%), spreads between long & short term interest rates (-0.08%p)

Cyclical indicator of leading composite index 110

Source: Statistics Korea (industrial activity trends)

(points)

100

90 2006.1

42

2007.1

2008.1

2009.1

2010.1

The Green Book : Current Economic Trends

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Featured Issue

President Park Makes Historic Visit to Iran

President Park Geun-hye (left) and Iranian President Hassan Rouhani have a talk ahead of the summit meeting at the Sa'dabad Palace in Tehran on May 2.

President Park Makes Historic Visit to Iran President Park Geun-hye made a state visit to Iran on May 1-3, the first by a Korean leader to Iran since the two countries established diplomatic relations in 1962. During her visit, President Park held summit talks with Iranian President Hassan Rouhani, where the two leaders shared the view that there is great potential for cooperation between the two countries and promised to work together towards stability and prosperity on the Korean Peninsula, in the Middle East and throughout the international community.

An economic delegation of 236 business leaders accompanied the President to Iran, and a total of 66 MOUs, including those that could lead to deals worth a total of 42 trillion won, were signed.

The following is a summary of the Joint Statement on the Comprehensive Partnership between the two countries, which was adopted after the Korea-Iran summit.

The two countries shared the view that ‘bilateral trade is the foundation to solidifying economic cooperation,’ and recognized the importance of ‘creating an investment-friendly environment in expediting mutual investment between businesses of the two countries.’ Also, both sides reached an agreement on energy cooperation ‘for the mutual benefit of providing a stable energy supply to Korea and a sales destination to Iran.’ The two countries will pursue joint projects in new energy industries and work to expand infrastructure to enhance the efficiency of electricity supply.

Korea and Iran also agreed to increase cooperation in other areas, including culture, education and tourism, and decided to designate the year 2017 as the Year of Korea-Iran Cultural Exchange. The two countries expressed their willingness to discuss establishing cultural centers in their respective capitals, and agreed to work on simplifying the visa process, establishing direct flights and promoting participation in each other’s tourism fairs. Academic exchanges will be encouraged to help develop joint research projects.

Korea and Iran announced support for the ‘objectives of a nuclear weapons-free world,’ and ‘reaffirmed their commitment to the Non-Proliferation Treaty and denuclearization’, while agreeing to ‘constructively contribute to the promotion and strengthening of international peace and security.’

Follow-ups to the Korea-Iran Summit In order for the outcomes of the talks to bear fruit, the government will build up a sustainable economic cooperation channel with Iran and provide the best support needed. The government will also sell the outcomes of the talks to Korean enterprises and help them participate in the projects, particularly those funded by the US $25 billion financing package.

44

Featured Issue

Economic News Briefing

Mutual funds to be managed more effectively under new rules Government to reform R&D support Korea to host 2018 AfDB annual meeting OECD expects 2.7% growth for Korea in 2016 Government to draw up strong rules to ensure fiscal soundness Government to boost funding for industries Korea’s external debt falls to US $385.8 bn Korea grows 0.4% in Q1 (advanced)

Mutual funds to be managed more effectively under new rules The Financial Services Commission announced on April 27 its plan to improve mutual fund management, which focuses on increasing a rate of return. Fund managers will be allowed to receive different rates of incentives according to the fund’s performance, while required to invest a certain amount in the fund. A portal will be set up to provide customers with information regarding mutual fund management, including return on investment and incentives, as well as with tools to compare the performance and management of the funds.

Government to reform R&D support Korea will reform its R&D support in a way to encourage research bodies to focus on their areas of speciality: Universities to focus on basic science and technology, enterprises on commercialization and public research institutions on new technologies which require long-term as well as high-risk investment.

The Presidential Panel on Science and Technology, launched on May 12, will work on drawing up midto long-term R&D support strategies while restructuring supports given to similar R&D projects.

A total of 70 percent of the support assigned to public research institutions will go to researches dealing with five or more core technologies, which will be designated later, and the government will strictly implement performance-based budgeting.

Korea to host 2018 AfDB annual meeting The 2018 African Development Bank (AfDB) annual meeting will be held in Busan, Korea on May 21-25 of the year, which is expected to strengthen economic cooperation between Korea and African countries.

Korea has steadily worked on building up economic cooperation partnership with African countries through programs designed to provide financial aid and share development experience, such as the Economic Development Cooperation Fund and Knowledge Sharing Program. The 2018 meeting will provide opportunities for Korea to contribute to finding solutions to issues on the African Development Agenda, such as poverty reduction and industrial development, by actively sharing its programs and experience.

OECD expects 2.7% growth for Korea in 2016 The Korean economy is expected to grow 2.7 percent this year, according to the OECD’s latest Economic Survey of Korea released on May 17. The OECD projected that the economy will grow 3.0 46

Economic News Briefing

percent in 2017 as exports and business investment improve in line with increasing global trade. The organization highly evaluated Korea’s Three-year Plan for Economic Innovation as having great potential to raise productivity and increase employment, and estimated that the swift and full implementation of the plan could add up to 3.0 percent to GDP within 10 years. Recommendations for the Korean economy offered in the report included innovation and structural reform to raise productivity, and labor market reform to promote job creation and address dualism between vulnerable nonregular positions and overprotected regular positions.

Government to draw up strong rules to ensure fiscal soundness As part of its mid-term fiscal reform plan, the government will draw up a special law aimed at enhancing fiscal soundness. The law will stipulate rules that govern the management of central government debt and expenditures. The PAYGO rules will be made obligatory when the new law takes effect.

Government to boost funding for industries The Ministry of Trade, Industry and Energy announced on May 3 its plan to expand the Fund for the Advancement and Commercialization of Technology, which was created in 2015 to support investment, technology transfer and job creation in industries, from 95.5 billion won last year to 103.8 billion won this year. The fund will invest in 12 projects aimed at developing core technology, boosting R&D and supporting job creation.

Korea’s external debt falls to US $385.8 bn Korea’s external debt fell to US $385.8 billion as of the end of March 2016, down US $9.6 billion from the previous quarter. (end-period, US $ billion)

Dec

Dec

Dec

Dec

Dec

Dec

Dec

Dec

Mar

2008

2009

2010

2011

2012

2013

2014

2015

2016

Change (q-o-q)

Total debt

315.9

344.6

355.9

400.0

408.9

423.5

424.4

395.4

385.8

-9.6

- Short-term

149.0

148.7

136.5

139.8

128.0

111.8

116.4

107.1

102.8

-4.3

- Long-term

167.0

195.9

219.5

260.3

281.0

311.7

308.0

288.3

283.0

-5.3

External debt soundness indicators have improved as both the ratio of short-term external debt to total external debt and the ratio of short-term external debt to foreign exchange reserves fell 0.5 percentage points to 26.6 percent and 1.3 percentage points to 27.8 percent, respectively, compared with the previous quarter.

May 2016

47

Korea grows 0.4% in Q1 (advanced) Korea’s real gross domestic product (GDP) expanded 0.4 percent quarter-on-quarter and 2.7 percent yearon-year in the first quarter of 2016, according to the data released by the Bank of Korea on April 26.

On the production side, agriculture, forestry & fisheries grew 5.9 percent quarter-on-quarter.

Manufacturing contracted 0.2 percent due to weak machinery and automobiles, while construction grew 3.2 percent, led by residential housing construction. Services were up 0.5 percent, as declines in wholesale & retail, hotels & restaurants and cultural & other services were offset by gains in financial & insurance services and real estate & renting.

On the expenditure side, private consumption declined 0.3 percent, while government consumption rose 1.3 percent. Facility investment contracted 5.9 percent, while construction investment and intellectual property investment rose 5.9 percent and 0.1 percent, respectively.

Exports declined 1.7 percent, led by oil products and automobiles, and imports declined 3.5 percent, led by machinery and transportation equipment.

GDP by production and expenditure*

(Percentage change from previous period)

20151

2014

20161

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

GDP

1.1 (3.9)2

0.6 (3.5)2

0.7 (3.4)2

0.3 (2.7)2

0.8 (2.4)2

0.4 (2.2)2

1.2 (2.8)2

0.7 (3.1)2

0.4 (2.7)2

Agriculture, forestry & fisheries

-1.6

-0.4

1.6

1.7

3.7

-11.0

4.7

-2.6

5.9

Manufacturing

1.8

1.0

-0.7

-0.2

0.4

0.9

0.4

0.7

-0.2

Construction

1.9

0.1

-0.2

-2.1

1.8

-0.1

5.5

0.7

3.2

Services

0.9

0.4

1.2

0.7

0.7

0.2

1.1

0.7

0.5

Private consumption

0.4

-0.3

0.7

0.3

0.8

-0.1

1.1

1.4

-0.3

Government consumption

0.5

0.8

1.9

0.1

0.5

0.9

1.3

1.0

1.3

Facility investment

-1.1

1.3

0.3

3.5

0.5

0.8

1.8

0.5

-5.9

Construction investment

3.3

1.1

-0.8

-4.9

5.5

1.8

3.3

-2.4

5.9

Intellectual property investment

2.0

0.0

0.0

-0.1

1.7

-0.6

0.3

0.7

0.1

Exports

0.8

1.1

-1.5

0.3

0.6

-0.1

-0.3

2.1

-1.7

Imports

-1.6

0.8

-0.1

0.4

0.9

0.4

1.4

3.2

-3.5

3

*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 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 2014 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 3.6 -1.5

3.7 -0.5 13.7 6.5 2.4 3.6 3.5 1.3

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 3.4 3.8

-2.7 3.5 -3.7 -3.4 -3.9 5.5 1.1 3.9

-0.2 -7.7 22.0 4.7 0.1 -0.8 6.0 5.3

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 -5.1

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 2.2

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 -2.3 -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 0.1 4.3 7.0

2.7 3.6 3.8 4.2

1.5 2.2 2.4 2.6

-3.2 4.2 4.9 6.5

1.2 8.9 7.5 3.5

-12.3 -3.2 2.3 11.7

2014 Ⅰ Ⅱ Ⅲ Ⅳ

3.9 3.5 3.4 2.7

5.9 4.5 2.7 2.4

4.7 4.7 3.1 1.8

2.9 1.8 2.0 1.6

6.1 3.6 3.6 0.8

4.5 0.3 2.3 -1.7

7.4 7.9 4.4 4.4

2015pⅠ Ⅱ Ⅱ Ⅳ

2.4 2.2 2.8 3.1

7.5 -4.0 -0.8 -5.0

0.6 0.5 1.5 2.4

1.9 2.1 2.4 3.4

2.6 2.2 5.1 5.4

0.9 1.0 5.6 7.5

5.8 5.1 6.7 3.9

2016pⅠ

2.7

-3.0

1.8

2.6

3.1

8.7

-3.0

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 (%)

2013 2014 2015

108.2 108.4 107.7

0.7 0.2 -0.6

108.1 108.0 107.8

0.8 -0.1 -0.2

130.7 127.4 131.2

4.4 -2.5 3.0

106.4 108.9 112.0

1.5 2.3 2.8

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

106.9 109.8 105.6 111.3

0.8 0.5 1.2 -1.5

106.6 109.3 104.9 111.3

0.5 -0.1 0.4 -0.8

129.6 128.2 129.0 127.4

5.3 7.6 3.6 -2.5

105.4 108.6 108.5 113.1

2.1 1.7 2.7 2.8

2015 Ⅰ Ⅱ Ⅲ Ⅳ

105.7 108.4 105.5 111.2

-1.1 -1.3 -0.1 -0.1

106.0 108.1 105.8 111.2

-0.6 -1.1 0.9 -0.1

132.2 134.0 137.7 131.2

2.0 4.5 6.7 3.0

108.2 111.5 111.6 116.8

2.7 2.7 2.9 3.3

2016 1p

105.1

-0.6

104.8

-1.1

135.8

2.7

111.2

2.8

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

106.5 101.2 113.0 112.3 108.5 108.6 112.5 101.2 103.2 110.1 108.7 115.0

-4.2 4.0 3.1 2.6 -1.9 0.7 4.2 -2.6 2.1 -2.8 -3.1 1.4

105.4 101.4 113.1 111.1 108.7 108.1 109.6 101.7 103.4 109.4 109.5 115.1

-4.2 3.3 2.6 1.6 -1.5 -0.5 2.3 -3.1 2.0 -2.8 -1.7 2.2

131.6 128.8 129.6 130.7 129.6 128.2 132.6 129.9 129.0 130.0 129.2 127.4

2.3 3.4 5.3 8.3 6.5 7.6 6.9 5.2 3.6 2.9 0.1 -2.5

104.8 101.9 109.6 107.1 109.0 109.8 108.9 108.1 108.5 110.8 109.9 118.7

2.3 1.4 2.7 1.4 1.2 2.6 3.1 2.3 2.9 2.8 2.3 3.5

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

108.1 96.0 113.1 109.8 105.2 110.3 108.7 101.4 106.3 112.4 108.5 112.6

1.5 -5.1 0.1 -2.2 -3.0 1.6 -3.4 0.2 3.0 2.1 -0.2 -2.1

108.1 96.6 113.2 109.6 105.4 109.2 107.5 102.1 107.7 112.6 108.4 112.7

2.6 -4.7 0.1 -1.4 -3.0 1.0 -1.9 0.4 4.2 2.9 -1.0 -2.1

131.3 131.9 132.2 133.7 133.0 134.0 137.1 136.8 137.7 136.1 136.2 131.2

-0.2 2.4 2.0 2.3 2.6 4.5 3.4 5.3 6.7 4.7 5.4 3.0

106.9 104.7 113.0 111.7 111.5 111.4 111.7 110.6 112.6 114.1 113.2 123.1

2.0 2.7 3.1 4.3 2.3 1.5 2.6 2.3 3.8 3.0 3.0 3.7

2016 1 2p 3p

105.7 98.1 111.4

-2.2 2.2 -1.5

103.9 97.4 113.1

-3.9 0.8 -0.1

136.9 136.6 135.8

4.3 3.6 2.7

110.1 107.4 116.1

3.0 2.6 2.7

* Including mining, manufacturing, electricity & gas and water industry p: Preliminary Source: Statistics Korea

May 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* (%)

2013 2014 2015

108.6 110.4 111.7

1.6 1.7 1.2

95.1 94.3 92.1

-2.5 -0.8 -2.3

76.5 76.2 74.3

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

77.4 76.1 75.4 77.0

2014 Ⅰ Ⅱ Ⅲ Ⅳ

109.7 109.9 110.7 111.2

1.5 1.5 1.7 1.7

92.9 96.8 91.5 95.8

-0.9 -1.1 0.8 -2.5

77.2 76.3 75.9 75.2

2015 Ⅰ Ⅱ Ⅲ Ⅳ

111.5 111.6 111.7 112.0

1.6 1.5 0.9 0.7

90.0 94.9 89.8 93.8

-3.1 -2.0 -1.9 -2.1

74.3 74.3 74.9 73.6

2016 1p

111.9

0.4

88.4

-1.8

73.0

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

109.8 109.6 109.7 109.6 109.9 110.1 110.4 110.7 111.0 111.1 111.1 111.3

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

91.9 87.6 99.1 99.7 95.6 95.1 98.7 86.8 89.0 95.9 94.0 97.6

-7.1 3.2 2.0 1.8 -3.8 -1.2 4.3 -4.3 2.3 -3.8 -4.3 0.7

77.9 76.1 77.7 77.5 75.1 76.3 77.7 74.8 75.1 74.2 74.8 76.7

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

111.5 111.3 111.8 111.5 111.6 111.7 111.5 111.5 112.1 112.1 112.0 111.9

1.5 1.6 1.9 1.7 1.5 1.5 1.0 0.7 1.0 0.9 0.8 0.5

92.8 81.0 96.3 95.8 91.8 97.1 94.7 86.0 88.8 95.4 91.8 94.2

1.0 -7.5 -2.8 -3.9 -4.0 2.1 -4.1 -0.9 -0.2 -0.5 -2.3 -3.5

73.9 74.7 74.2 74.4 73.5 75.0 74.4 75.4 74.9 74.0 73.1 73.8

2016 1 2p 3p

111.8 111.9 112.0

0.3 0.5 0.2

89.0 81.2 95.0

-4.1 0.2 -1.3

72.3 73.5 73.2

* Manufacturing industry 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 (%)

2013 2014 2015

107.9 110.1 114.4

0.7 2.0 3.9

116.7 122.7 135.2

0.3 5.1 10.2

106.1 105.3 104.0

2.1 -0.8 -1.2

104.7 106.4 109.1

0.4 1.6 2.5

2013 Ⅰ Ⅱ Ⅲ Ⅳ

103.8 107.7 107.2 113.0

0.3 1.1 0.5 1.1

111.1 118.5 117.0 120.3

1.6 3.0 -1.3 -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

106.5 109.0 109.3 115.7

2.6 1.2 2.0 2.4

117.4 121.2 123.4 128.6

5.7 2.3 5.5 6.9

100.1 104.6 96.0 120.5

-2.0 -2.5 1.2 0.5

104.3 105.2 108.6 107.5

3.1 2.2 0.6 0.8

2015 Ⅰ Ⅱ Ⅲ Ⅳ

108.8 112.7 113.2 122.8

2.2 3.4 3.6 6.1

126.7 132.0 132.9 149.3

7.9 8.9 7.7 16.1

97.9 103.2 92.7 122.3

-2.2 -1.3 -3.4 1.5

105.1 107.7 112.9 110.7

0.8 2.4 4.0 3.0

2016 1p

113.7

4.5

134.0

5.8

100.2

2.3

110.1

4.8

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

110.5 99.4 109.7 106.1 112.5 108.4 110.6 107.7 109.7 111.7 114.7 120.6

5.6 -0.1 2.2 0.7 1.4 1.4 1.3 3.1 1.8 0.4 1.3 5.2

116.4 117.1 118.7 114.5 121.7 127.4 131.3 118.5 120.5 118.9 128.8 138.1

3.6 10.5 3.3 -0.7 1.6 5.9 2.9 1.9 12.6 -1.4 7.2 15.0

100.5 91.8 107.9 105.6 111.5 96.8 95.5 91.3 101.3 115.7 120.5 125.2

-2.2 -1.6 -2.1 -1.0 -2.0 -4.4 -2.6 5.4 1.2 1.6 -2.7 2.5

112.1 94.5 106.2 102.4 108.7 104.5 107.5 109.9 108.4 106.5 105.6 110.3

10.2 -4.8 3.6 2.1 3.0 1.5 1.8 2.9 -2.9 0.7 0.3 1.4

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

107.9 105.2 113.2 111.8 116.6 109.6 113.1 110.3 116.1 121.3 121.8 125.4

-2.4 5.8 3.2 5.4 3.6 1.1 2.3 2.4 5.8 8.6 6.2 4.0

128.2 117.3 134.6 129.2 130.3 136.4 140.2 129.2 129.4 143.2 146.8 158.0

10.1 0.2 13.4 12.8 7.1 7.1 6.8 9.0 7.4 20.4 14.0 14.4

97.6 91.5 104.6 107.1 114.3 88.3 92.0 88.1 98.0 122.2 124.5 120.3

-2.9 -0.3 -3.1 1.4 2.5 -8.8 -3.7 -3.5 -3.3 5.6 3.3 -3.9

102.9 105.5 106.9 105.7 111.1 106.3 109.7 111.2 117.8 110.6 109.0 112.4

-8.2 11.6 0.7 3.2 2.2 1.7 2.0 1.2 8.7 3.8 3.2 1.9

2016 1 2p 3p

112.9 108.5 119.7

4.6 3.1 5.7

125.3 125.1 151.5

-2.3 6.6 12.6

101.6 93.1 105.8

4.1 1.7 1.1

112.0 107.6 110.8

8.8 2.0 3.6

p: Preliminary Source: Statistics Korea

May 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 2013 2014 2015

102.2 102.0 104.4

-0.3 -0.2 2.4

103.4 102.7 106.0

0.6 -0.7 3.2

101.7 101.8 103.7

-0.7 0.1 1.9

-

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

100.8 100.8 102.5 104.0

-2.1 2.1 0.1 -0.7

103.5 103.0 100.8 103.3

-4.4 2.1 -1.8 1.5

99.7 99.9 103.2 104.4

-1.1 2.3 0.9 -1.4

-

2015 Ⅰ Ⅱ Ⅲ Ⅳ

101.4 100.5 105.4 110.1

0.6 -0.3 2.8 5.9

100.0 102.6 105.5 115.8

-3.4 -0.4 4.7 12.1

102.0 99.6 105.4 107.7

2.3 -0.3 2.1 3.2

-

2016 1p

104.4

3.0

101.6

1.6

105.5

3.4

-

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

102.5 96.5 103.4 101.8 99.9 100.7 105.0 100.2 102.3 105.2 101.0 105.9

-5.8 -0.4 0.1 2.3 0.2 3.9 1.5 -3.7 2.6 -3.3 -1.8 3.5

99.8 106.7 103.9 98.2 103.7 107.2 107.2 94.9 100.3 99.9 103.1 106.9

-9.5 0.3 -3.9 0.1 2.0 4.3 -1.7 -8.6 5.7 -4.3 0.0 9.3

103.6 92.2 103.2 103.4 98.3 98.0 104.0 102.4 103.1 107.5 100.1 105.5

-4.2 -0.8 1.9 3.4 -0.5 3.8 2.9 -1.7 1.4 -2.9 -2.6 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 11 12

104.5 94.1 105.5 105.1 98.0 98.5 103.2 103.1 109.9 112.9 106.8 110.6

2.0 -2.5 2.0 3.2 -1.9 -2.2 -1.7 2.9 7.4 7.3 5.7 4.4

101.4 92.8 105.7 107.1 98.2 102.5 107.0 103.6 105.8 115.6 114.6 117.1

1.6 -13.0 1.7 9.1 -5.3 -4.4 -0.2 9.2 5.5 15.7 11.2 9.5

105.8 94.7 105.4 104.2 98.0 96.7 101.6 102.9 111.6 111.8 103.4 107.8

2.1 2.7 2.1 0.8 -0.3 -1.3 -2.3 0.5 8.2 4.0 3.3 2.2

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

2016 1 2p 3p 4

106.2 95.0 111.9 -

1.6 1.0 6.1 -

96.8 92.8 115.3 -

-4.5 0.0 9.1 -

110.3 95.9 110.4 -

4.3 1.3 4.7 -

100 98 100 101

p: Preliminary Source: Statistics Korea

54

Consumer sentiment index

Statistical Appendices

6. Machinery orders received and facility investment index

Domestic machinery orders received excluding ship (billion won, constant value)

Total

Period 2013 2014 2015

Public

y-o-y change (%)

Private

y-o-y change (%)

y-o-y change (%)

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

23,078 26,487 25,545

6.6 14.8 -3.6

2,580 5,012 1,921

20.5 94.2 -61.7

20,497 21,475 23,624

5.1 4.8 10.0

99.8 105.0 111.6

-0.8 5.2 6.3

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

6,627 6,106 7,673 6,081

18.6 4.1 49.2 -6.2

1,221 305 2,708 778

184.6 -45.0 418.5 -27.6

5,406 5,801 4,965 5,303

4.8 9.2 7.4 -1.9

98.6 107.9 100.7 112.9

7.5 6.7 1.4 5.5

2015Ⅰ Ⅱ Ⅲ Ⅳ

6,430 7,017 5,596 6,502

-3.0 14.9 -27.1 6.9

405 493 399 624

-66.9 61.7 -85.3 -19.8

6,025 6,524 5,197 5,878

11.4 12.5 4.7 10.8

107.7 112.8 111.0 114.7

9.2 4.5 10.2 1.6

2016 1p

6,441

0.2

635

56.8

5,807

-3.6

99.9

-7.2

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

1,753 1,844 3,030 2,274 1,831 2,001 1,772 4,083 1,818 1,936 2,308 1,837

-4.9 10.7 45.8 23.2 -13.9 5.7 -8.4 151.8 14.5 -25.7 10.2 3.0

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

1,665 1,724 2,017 2,177 1,714 1,909 1,683 1,543 1,739 1,725 1,881 1,698

-2.3 15.2 3.1 24.2 -8.7 13.6 6.8 0.9 14.7 -5.0 -2.6 2.3

90.4 95.6 109.8 110.6 108.2 104.8 111.3 90.6 100.2 100.1 112.6 126.1

0.3 13.9 8.7 12.1 6.0 2.2 2.7 -9.9 12.8 -8.7 10.5 15.3

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

2,313 1,853 2,264 2,766 2,096 2,155 2,004 1,684 1,908 2,048 1,965 2,489

31.9 0.5 -25.3 21.6 14.5 7.7 13.1 -58.8 5.0 5.8 -14.9 35.5

116 141 148 127 197 169 133 160 106 98 228 298

32.0 17.6 -85.4 30.7 69.4 84.7 50.2 -93.7 34.8 -53.6 -46.7 113.6

2,197 1,712 2,116 2,640 1,899 1,986 1,870 1,524 1,802 1,950 1,737 2,191

31.9 -0.7 4.9 21.2 10.8 4.0 11.2 -1.2 3.6 13.1 -7.6 29.1

103.1 98.5 121.4 113.5 107.2 117.7 119.4 105.9 107.8 112.6 107.2 124.4

14.0 3.0 10.6 2.6 -0.9 12.3 7.3 16.9 7.6 12.5 -4.8 -1.3

2016 1 2p 3p

1,758 2,275 2,408

-24.0 22.8 6.4

69 255 311

-40.7 80.7 110.6

1,689 2,021 2,097

-23.1 18.0 -0.9

96.9 90.9 111.9

-6.0 -7.7 -7.8

p: Preliminary Source: Statistics Korea

May 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 (%)

2013 2014 2015

98,089 98,491 99,967

10.6 0.4 1.5

34,459 32,015 30,694

1.9 -7.1 -4.1

59,714 62,413 65,114

18.0 4.5 4.3

77,885 90,606 134,338

-12.9 16.3 48.3

24,736 26,427 28,778

-5.1 6.8 8.9

50,947 62,115 102,449

-14.8 21.9 65.0

2013 Ⅰ Ⅱ Ⅲ Ⅳ

20,178 25,760 23,718 28,432

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

21,678 26,178 23,604 27,031

7.4 1.6 -0.5 -4.9

7,148 8,708 7,245 8,913

2.1 -6.5 -10.1 -11.6

13,677 16,513 15,359 16,864

10.2 6.8 4.2 -1.4

16,144 23,621 24,236 26,604

16.8 26.4 44.0 -6.8

5,924 6,563 5,181 8,758

38.0 22.2 3.9 -13.2

9,759 16,714 18,384 17,258

6.3 32.3 60.7 -2.4

2015 Ⅰ Ⅱ Ⅲ Ⅳ

21,315 25,034 24,816 28,803

-1.7 -4.4 5.1 6.6

6,593 8,189 7,175 8,738

-7.8 -6.0 -1.0 -2.0

13,973 15,862 16,651 18,628

2.2 -3.9 8.4 10.5

25,417 35,210 36,440 37,270

57.4 49.1 50.4 40.1

4,594 9,069 4,900 10,215

-22.5 38.2 -5.4 16.6

20,537 25,623 30,814 25,525

110.4 53.3 67.6 47.9

2016 1p

24,141

13.3

6,746

2.3

16,136

15.5

28,985

14.0

7,959

73.2

20,318

-1.1

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

7,057 6,666 7,954 8,477 8,192 9,509 7,916 7,722 7,966 8,241 8,350 10,439

12.5 6.9 3.7 4.6 0.4 0.2 0.8 0.7 -2.8 -4.6 -8.1 -2.5

2,315 2,207 2,626 2,740 2,584 3,384 2,430 2,324 2,492 2,533 2,675 3,705

11.7 -5.9 1.8 -3.2 -7.6 -8.3 -7.8 -9.0 -13.2 -14.2 -14.2 -7.7

4,452 4,237 4,987 5,459 5,317 5,737 5,149 5,113 5,098 5,370 5,300 6,194

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

5,546 5,632 4,966 7,501 6,820 9,301 7,033 8,789 8,414 8,000 6,399 12,205

55.9 19.3 -10.5 45.6 9.6 27.0 21.8 87.4 32.1 3.2 -20.8 -3.9

2,048 2,244 1,633 1,894 1,983 2,686 1,531 1,617 2,033 1,413 1,850 5,495

57.5 57.2 -4.6 21.0 26.8 19.9 2.5 9.7 0.6 -7.0 -30.5 -6.9

3,309 3,238 3,213 5,596 4,769 6,348 5,364 6,961 6,060 6,406 4,432 6,420

56.9 -1.6 -15.0 77.1 5.1 28.5 29.3 119.4 47.0 4.3 -14.8 1.3

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

6,824 6,690 7,801 7,709 7,767 9,558 7,895 7,939 8,982 8,503 8,709 11,590

-3.3 0.4 -1.9 -9.1 -5.2 0.5 -0.3 2.8 12.8 3.2 4.3 11.0

2,037 2,092 2,463 2,466 2,324 3,399 2,284 2,206 2,685 2,268 2,441 4,029

-12.0 -5.2 -6.2 -10.0 -10.1 0.5 -6.0 -5.1 7.8 -10.4 -8.7 8.7

4,570 4,379 5,024 4,939 5,131 5,792 5,350 5,437 5,864 5,865 5,877 6,886

2.6 3.4 0.7 -9.5 -3.5 1.0 3.9 6.3 15.0 9.2 10.9 11.2

7,515 5,435 12,467 9,055 12,639 13,516 8,685 8,659 19,097 10,378 13,226 13,666

35.5 -3.5 151.0 20.7 85.3 45.3 23.5 -1.5 127.0 29.7 106.7 12.0

1,318 1,135 2,140 2,585 2,485 4,026 1,791 1,921 1,188 1,803 3,296 5,115

-35.6 -49.4 31.3 36.5 24.0 49.9 17.0 18.8 -41.6 27.7 78.2 -6.9

6,084 4,218 10,235 6,414 10,078 9,131 6,817 6,433 17,564 8,574 9,369 7,582

83.9 30.3 218.6 14.6 111.3 43.8 27.1 -7.6 189.8 33.8 111.4 18.1

2016 1 2p 3p

7,359 7,267 9,516

7.8 8.6 22.0

2,042 1,972 2,733

0.2 -5.8 11.0

5,003 4,941 6,192

9.5 12.8 23.3

7,225 10,084 11,676

-3.9 85.5 -6.3

2,691 2,457 2,810

104.1 116.5 31.3

4,260 7,545 8,513

-30.0 78.9 -16.8

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

107.8 107.8 107.5 107.8 108.6 109.4

98.9 98.5 97.8 97.6 97.8 98.1

110.4 110.3 110.6 110.6 111.3 111.9

100.2 99.6 99.5 99.1 99.3 99.4

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

109.7 110.1 110.6 111.2 111.9 112.9 113.7 114.2 114.3 115.1 116.0 117.0

98.0 97.9 97.9 98.0 98.2 98.6 98.8 98.9 98.5 98.7 99.0 99.5

112.3 112.7 112.8 113.4 113.9 114.7 115.1 115.6 115.8 116.4 116.9 117.5

99.4 99.4 99.1 99.2 99.3 99.6 99.6 99.7 99.5 99.6 99.7 99.9

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

117.6 117.9 117.9 118.4 118.6 119.3 119.8 121.0 122.2 122.9 123.4 124.4

99.5 99.3 98.9 98.8 98.7 98.7 98.7 99.3 99.8 100.0 99.9 100.3

118.3 118.6 119.2 119.4 119.7 120.1 120.7 121.3 121.5 121.5 121.8 122.8

100.1 100.1 100.2 100.0 99.8 99.8 99.9 100.1 99.8 99.5 99.3 99.8

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

126.2 127.4 128.8 129.3 130.4 130.5 131.0 132.0 133.3 134.3 134.8 135.0

101.2 101.6 102.1 102.1 102.3 101.9 101.8 102.0 102.5 102.8 102.6 102.2

123.3 124.1 124.4 124.9 124.9 125.2 125.8 126.8 128.0 128.8 129.1 129.6

99.8 100.1 99.9 100.0 99.6 99.5 99.6 100.0 100.6 100.9 100.7 100.7

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 1p 2p 3p 4 5

135.4 136.9 136.7 -

102.0 101.9 101.9 -

129.7 130.0 130.4 -

100.5 100.4 100.3 -

92.1 87.0 94.2 97.3 -

93.2 86.3 98.3 95.7 102.7

Sources: Statistics Korea, Federation of Korean Industries

May 2016

57

9. Balance of payments ( I) Period

Current account

Goods

2013 2014 2015p

81,148.2 84,373.0 105,870.7

2013 Ⅰ Ⅱ Ⅲ Ⅳ

Services

Primary income

Secondary income

535,375.9 524,135.2 428,547.8

-6,499.2 -3,678.5 -15,708.1

9,055.7 4,150.8 5,901.7

-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 26,405.8

24,216.7 33,679.8 30,637.7 31,755.8

134,439.1 142,258.7 135,363.0 136,777.0

110,222.4 108,578.9 104,725.3 105,021.2

-4,387.1 -3,092.6 -3,561.5 -4,666.9

3,830.8 -1,556.9 2,727.7 900.1

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

2016p Ⅰ

24,076.1

27,884.2

118,001.5

90,117.3

-4,172.6

1,249.3

-884.8

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

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

3,847.8 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 10,101.0 7,729.8 8,315.5 11,872.3 9,714.8 8,546.9 10,846.4 9,120.4 9,910.3 7,375.1

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 10,684.5

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 46,117.9

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 35,433.4

-1,991.3 -1,758.8 -637.0 -804.0 -83.8 -2,204.8 -1,254.3 -1,013.0 -1,294.2 -1,701.7 -1,263.9 -1,701.3

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 -587.9

-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

2016p 1 2 3

6,820.9 7,169.7 10,085.5

7,899.7 7,539.0 12,445.5

37,227.8 36,231.7 44,542.0

29,328.1 28,692.7 32,096.5

-1,934.2 -1,242.1 -996.3

1,253.4 852.1 -856.2

-398.0 20.7 -507.5

Exports

Imports

82,781.0 88,885.4 120,290.0

618,156.9 613,020.6 548,837.8

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

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

2014 Ⅰ Ⅱ Ⅲ Ⅳ

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

2015p Ⅰ Ⅱ Ⅲ Ⅳ

p: Preliminary 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

2013 2014 2015p

80,104.6 89,334.0 109,730.0

15,593.2 18,765.6 22,597.8

9,344.5 30,608.9 48,592.8

-4,410.3 -3,826.9 2,532.5

43,281.1 25,900.6 23,954.3

16,296.1 17,885.8 12,052.6

-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 27,643.3

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

7,838.4 6,994.1 15,096.2 18,664.1

-41.0 -461.4 4,040.7 -1,005.8

4,506.4 7,369.2 9,844.1 2,234.6

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

-23.1 -25.5 -27.9 11.8

2016p Ⅰ

28,890.7

5,043.6

16,719.1

2,756.8

5,657.5

-1,286.3

-11.6

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

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

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

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

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

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

2,906.7 2,325.0 1,792.0 665.8 5,967.7 4,536.1 3,327.7 826.9 1,677.4 -247.5 -2,897.5 -2,994.5

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

2015p 1 2 3 4 5 6 7 8 9 10 11 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 7,860.2

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 6,436.4

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 1,504.1

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

2016p 1 2 3

6,478.9 9,503.0 12,908.8

-71.5 1,554.4 3,560.7

4,650.7 6,199.9 5,868.5

1,214.5 756.6 785.7

302.9 2,557.8 2,796.8

382.3 -1,565.7 -102.9

-6.1 -2.3 -3.2

* Positive figures represent net outflows, and negative figures represent net inflows. p: Preliminary Source: Bank of Korea

May 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 (%)

2013 2014 2015

107.7 109.0 109.8

1.3 1.3 0.7

110.1 111.1 110.3

1.0 0.9 -0.7

105.8 107.4 109.4

1.5 1.6 1.8

106.6 108.8 111.1

1.6 2.0 2.2

105.7 105.2 101.0

-1.6 -0.5 -4.0

106.2 104.8 98.0

-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 2 3 4

110.3 110.8 110.5 110.6

0.8 1.3 1.0 1.0

109.7 110.5 109.6 109.6

-1.1 -0.1 -0.6 -0.4

110.8 111.0 111.2 111.4

2.4 2.4 2.3 2.2

112.2 112.5 112.5 112.7

1.7 1.8 1.7 1.8

98.5 98.5 98.4 98.6

-3.3 -3.4 -3.3 -3.1

94.0 93.9 93.8 94.0

-5.7 -5.9 -5.7 -5.3

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 2 3 4

26,433 26,734 26,955 27,228

1.3 1.3 1.4 1.0

25,445 25,418 25,800 26,153

1.4 0.9 1.2 1.0

4,566 4,541 4,525 4,503

3.3 2.4 2.8 1.1

19,955 19,885 20,028 20,263

1.3 0.9 1.0 1.3

3.7 4.9 4.3 3.9

Source: Statistics Korea

May 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 2 3 4

1.5 1.5 1.5 1.5

1.7 1.6 1.6 1.6

2.1 2.0 2.0 1.9

1.6 1.5 1.5 1.5

1.8 1.6 1.6 1.6

1,912.06 1,916.66 1,995.85 1,994.15

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 2012 2013 2014 2015

(period average, billion won)

M1

y-o-y change (%)

M2

y-o-y change (%)

Lf y-o-y change (%)

y-o-y change (%)

82,131.1 91,379.4 103,331.5 120,691.4

9.2 11.3 13.1 16.8

441,963.6 484,062.9 536,733.4 636,639.0

3.8 9.5 10.9 18.6

1,798,625.7 1,885,781.3 2,009,576.3 2,182,911.9

5.2 4.8 6.6 8.6

2,379,518.7 2,543,232.5 2,721,502.2 2,986,699.4

7.8 6.9 7.0 9.7

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

85,839.3 88,855.7 89,523.5 87,729.0 89,654.8 91,207.6 90,643.7 93,729.6 95,130.6 93,640.4 93,609.9 96,988.5

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

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

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

1,841,128.1 1,857,135.0 1,862,405.5 1,867,726.3 1,870,289.7 1,884,193.2 1,890,728.6 1,888,658.4 1,903,187.1 1,908,557.6 1,923,339.2 1,932,026.4

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

2,469,789.3 2,488,539.0 2,499,718.1 2,512,459.7 2,518,239.1 2,533,750.8 2,549,443.5 2,557,336.3 2,577,546.7 2,587,071.4 2,605,866.7 2,619,029.5

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

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

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

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

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

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

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

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

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

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

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

113,304.2 116,502.4 115,974.9 115,132.7 117,726.3 118,688.2 122,041.0 121,854.4 126,572.2 125,616.2 126,767.1 128,117.5

15.0 15.9 15.3 16.4 15.7 17.0 20.6 13.2 20.1 17.3 18.8 16.3

579,964.2 592,737.4 600,719.9 610,803.3 621,985.5 630,546.3 645,975.4 653,105.9 665,691.1 669,737.7 677,629.2 690,772.4

12.5 14.3 15.5 17.7 18.9 18.5 21.0 21.3 21.4 21.5 20.6 19.6

2,092,223.5 2,109,892.3 2,127,887.8 2,148,114.7 2,166,741.1 2,179,561.1 2,200,510.9 2,218,660.3 2,230,000.7 2,232,432.0 2,242,848.2 2,246,070.1

8.0 8.0 8.3 9.0 9.3 9.0 9.3 9.2 9.4 8.8 7.7 7.5

2,857,610.1 2,876,467.8 2,907,976.4 2,936,746.7 2,960,998.1 2,986,316.5 3,013,503.9 3,028,981.1 3,049,823.2 3,059,051.9 3,076,029.2 3,086,887.8

8.4 8.6 9.3 10.0 10.3 10.5 10.6 10.4 10.5 10.2 9.2 8.9

2016 1 2 3

131,279.3 134,913.0 132,957.9

15.9 15.8 14.6

699,767.3 708,014.0 713,861.2

20.7 19.4 18.8

2,261,356.4 2,285,313.5 2,294,544.7

8.1 8.3 7.8

3,110,535.8 3,133,492.2 3,158,687.8

8.9 8.9 8.6

Source: Bank of Korea

May 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 2 3 4

1,208.4 1,235.4 1,153.5 1,143.9

10.8 12.4 4.4 7.1

1,017.1 1,085.8 1,026.0 1,058.2

10.4 17.9 11.5 17.9

1,322.2 1,348.3 1,307.4 1,298.4

7.0 9.6 9.2 9.4

Source: Bank of Korea

64

(end-period)

100/ \

US $/ \

Statistical Appendices

Buk The term buk can be used to call drums in general, but usually refers to a double-headed shallow barrel drum that is played with one stick or one hand and one stick. Buks are used in pansori (a genre of musical storytelling performed by a vocalist and a drummer) and pungmulnori (folk music that includes drumming, dancing and singing).

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 Bank of Korea_http://www.bok.or.kr/eng Statistics Korea_http://kostat.go.kr/portal/eng

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