201606

ISSN 2287-7266

Republic of Korea

eb.kdi.re.kr

Vol.38 No.6 June 2016

CONOMIC U L L E T I N

The Green Book: Current Economic Trends Policy Issue Government Launches a Ministerial Meeting to Facilitate Industrial Restructuring Government Unveils its Plan to Reform Public Institutions in Energy, Environment and Education Sectors Revisions to FX Regulations Focus on Flexibility

Economic News Briefing BOK Cuts Key Rate to 1.25% Government Revises Regulations to Allow Won-Yuan Direct Trading in China ODA Budget for 2017 to be 2.7 tn Won Korea Grows 0.5% 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 and 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 Policy Issue Government launches a ministerial meeting to facilitate industrial restructuring Government unveils its plan to reform public institutions in energy, environment and education sectors Revisions to FX regulations focus on flexibility

50 Economic News Briefing BOK cuts key rate to 1.25% Government revises regulations to allow won-yuan direct trading in China ODA budget for 2017 to be 2.7 tn won Korea and China discuss joint project development Korea grows 0.5% in Q1 (preliminary)

53 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

Production and exports continued to struggle due to weak global recovery while domestic demand stayed positive backed by the strong service sector.

The economy added fewer jobs in April than the previous month (300,000 → 252,000, y-o-y) as the number of daily jobs decreased due to the election day, a national holiday.

Consumer price inflation slowed in May to 0.8 percent compared with 1.0 percent in the previous month, due to stable agricultural product prices and a cut in natural gas rates.

Mining and manufacturing production fell 1.3 percent month-on-month in April as automobiles and other transportation equipment declined due to weak exports.

Service output grew for the third consecutive month in April, up 0.5 percent month-on-month, while retail sales, which grew 4.3 percent in the previous month, inched down 0.5 percent due to a high base effect.

Facility investment rose 3.4 percent month-on-month in April, rising for the second month in a row, backed by strong machinery and transportation equipment. Construction completed fell for the first time in five months, down 6.7 percent, due to a high base effect from the previous month (up 7.0%).

In April, the cyclical indicator of the coincident composite index stayed unchanged, and the cyclical indicator of the leading composite index rose 0.2 points.

Exports continued to fall in May, but at a slower rate compared with the previous month (down 11.2% → down 6.0%, y-o-y) partly due to more days worked.

In May, stock prices slightly declined, and market interest rates fell in line with the expectations of the Bank of Korea’s key interest rate cut. The Korean won weakened against both the US dollar and the Japanese yen amid the strong dollar.

Both housing prices and Jeonse (lump-sum deposits with no monthly payments) prices stayed stable month-on-month in May (up 0.02% → up 0.03% and up 0.13% → up 0.11%, respectively).

Domestic demand has been recovering backed by improving consumption. However, business confidence as well as household confidence has yet to pick up, and uncertainties over the timing of the Fed’s rate hike and Brexit are 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.

To help the economy build up recovery momentum, the government will draw up the economic policies for the second half of 2016, focusing on stimulating the private sector to boost exports and investment.

June 2016

03

1. External economic situation

The global economic recovery remains weak, as the US and other major economies have yet to build up momentum and emerging economies including China continue to struggle, while possibilities of the Fed’s rate hike and Brexit are posing risks.

US

The US economy grew 0.8 percent (preliminary, annualized q-o-q) in the first quarter of 2016. Major indicators were mixed as production and retail sales improved while employment slowed.

Industrial production rose 0.7 percent month-on-month in April backed by strong utilities production (up 5.8%), and the ISM Manufacturing Index for May rose to 51.3.

ISM Manufacturing Index (base=50) 49.4 (Oct 2015) → 48.4 (Nov) → 48.0 (Dec) → 48.2 (Jan 2016) → 49.5 (Feb) → 51.8 (Mar) → 50.8 (Apr) → 51.3 (May)

Retail sales increased 1.3 percent month-on-month in April due to strong automobiles and automobile parts (up 3.2%). The University of Michigan Consumer Sentiment Index increased in May. University of Michigan Consumer Sentiment Index (1966=100) 91.3 (Nov 2015) → 92.6 (Dec) → 92.0 (Jan 2016) → 91.7 (Feb) → 91.0 (Mar) → 89.0 (Apr) → 94.7 (May) Conference Board Consumer Confidence Index (1985=100) 92.6 (Nov 2015) → 96.3 (Dec) → 97.8 (Jan 2016) → 94.0 (Feb) → 96.1 (Mar) → 94.2 (Apr) → 92.6 (May)

New home sales soared 16.1 percent from the previous month in April, rebounding from a decline in the previous month, while existing home sales continued to improve (up 1.7%).

Case-Shiller Home Price Index (y-o-y, %) 5.2 (Sep 2015) → 5.4 (Oct) → 5.7 (Nov) → 5.6 (Dec) → 5.7 (Jan 2016) → 5.4 (Feb) → 5.4 (Mar) New home sales (m-o-m, %) 1.4 (Aug 2015) → -9.5 (Sep) → 4.6 (Oct) → 6.3 (Nov) → 5.9 (Dec) → -2.2 (Jan 2016) → 2.3 (Feb) → -1.3 (Mar) → 16.6 (Apr)

The unemployment rate was 4.7 percent, falling from the previous month, while nonfarm payrolls grew at a slower pace, adding 38,000 jobs, due to a slow growth in the service sector (144,000 → 61,000).

Nonfarm payroll increase (m-o-m, thousands) 280 (Nov 2015) → 271 (Dec) → 168 (Jan 2016) → 233 (Feb) → 186 (Mar) → 123 (Apr) → 38 (May)

04

The Green Book : Current Economic Trends

(Percentage change from previous period)

2013

2014

2015 Q2 3.9

Q3 2.0

Q4 1.4

Q1 0.8

2016 Feb Mar -

2.4

1.9

-

-

-

Real GDP

1.5

2.4

Q4 2.1

2.4

Q1 0.6

- Personal consumption expenditure

1.7

2.7

4.3

3.1

1.8

3.6

3.0

- Nonresidential fixed investment

3.0

6.2

0.7

2.9

1.6

4.1

2.6

-2.1

-6.2

-

-

-

- Residential fixed investment

9.5

1.8

10.0

5.8

10.1

9.3

8.2

10.1

17.1

-

-

-

Industrial production

1.9

2.9

0.9

0.3

-0.5

-0.7

0.4

-0.8

-0.4

-0.2

-0.9

0.7

Retail sales

3.8

4.1

0.6

2.3

-0.7

1.5

0.9

0.3

-0.1

0.3

-0.3

1.3

Existing home sales

9.1

-3.1

1.8

6.3

-0.7

4.6

2.3

-3.8

1.9

-7.3

5.7

1.7

Unemployment rate²

7.4

6.2

5.7

5.3

5.5

5.2

5.2

5.0

4.9

4.9

5.0

5.0

Consumer prices (y-o-y)

1.5

1.6

1.2

0.1

-0.1

0.0

0.1

0.4

1.1

1.0

0.9

1.1

Annual Annual 1

Annual

Apr -

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

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

GDP (q-o-q, annualized rate)

2015.Q1

2016.Q1

Industrial production (q-o-q)

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

(thousands)

(%)

12

600 10 400 200

8

0 6

-200 -400

4

-600 2

-800 -1,000

0

2006.1

2007.1

2008.1

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

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Unemployment rate (right)

June 2016

05

China

China’s economy grew 6.7 percent year-on-year in the first quarter of 2016, meeting market expectations, but major indicators slipped in April.

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) → 50.1 (May)

China’s GDP growth and fixed asset investment 18

Source: China National Bureau of Statistics

(%)

70

(%)

16

60

14 50 12 40

10 8

30

6 20 4 10

2

0

0 2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

GDP (y-o-y, left)

2014.Q1

2015.Q1

2016.Q1

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

(Percentage change from same period in previous year)

2013

2014

Real GDP

7.7

7.3

Q4 7.3

Industrial production

Annual Annual

Annual

6.9

Q1 7.0

2015 Q2 7.0

Q3 6.9

Q4 6.8

Q1 6.7

Feb -

2016 Mar -

Apr -

9.7

8.3

7.6

6.1

6.4

6.3

5.9

5.9

5.8

5.4

6.8

6.0

Fixed asset investment (accumulated, nominal)

19.6

15.7

15.7

10.7

13.5

11.4

10.3

10.0

10.7

10.2

10.7

10.5

Retail sales (nominal)

13.1

12.0

11.7

10.0

10.6

10.2

10.7

11.1

10.3

10.2

10.5

10.1

8.6

5.5

8.6

-2.5

4.7

-2.1

-5.9

-5.0

-9.6

-25.4

11.5

-1.8

Exports Consumer prices

2.6

2.0

1.5

1.4

1.2

1.4

1.7

1.5

2.1

2.3

2.3

2.3

Producer prices1

-1.9

-1.9

-2.7

-5.2

-4.6

-4.8

-5.7

-5.9

-4.8

-4.9

-4.3

-3.4

1

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

06

The Green Book : Current Economic Trends

Japan

The Japanese economy grew 0.4 percent quarter-on-quarter in the first quarter of 2016. Industrial production picked up in April despite the Kumamoto earthquakes, while consumption and exports slowed down.

On June 1, the Japanese government pushed back the second stage of the consumption tax hike (8% → 10%) from April 2017 to October 2019. Consumer prices fell 0.3 percent year-on-year in April.

(Percentage change from previous period)

2013

Q1 1.3

2015 Q2 -0.4

Q3 0.4

2014

Q4 -0.4

Q1 0.4

Feb -

2016 Mar -

Apr -

Real GDP

1.4

0.0

Q4 0.5

Industrial production

-0.6

2.1

0.8

-1.2

1.1

-1.3

-1.0

0.0

-1.1

-5.2

3.8

0.3

Retail sales

1.2

1.7

1.0

-0.4

-1.7

0.2

1.0

-0.2

-2.3

-2.3

1.5

0.0

Exports (y-o-y)

9.5

4.8

9.1

3.5

9.0

6.7

3.7

-4.6

-7.9

-4.0

-6.8

-10.1

Consumer prices (y-o-y)

0.4

2.7

2.6

0.8

2.3

0.5

0.1

0.3

0.1

0.3

-0.1

-0.3

Annual Annual

Annual

0.6

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

2008.Q1

GDP (q-o-q, left)

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

Industrial production (q-o-q, right)

Eurozone

The eurozone economy grew 0.5 percent quarter-on-quarter in the first quarter of 2016 backed by low oil prices and the European Central Bank’s quantitative easing program. However, deflationary pressures have continued, and a potential Brexit is posing risks.

June 2016

07

Manufacturing PMI (base=50) 52.3 (Oct 2015) → 52.8 (Nov) → 53.2 (Dec) → 52.3 (Jan 2016) → 51.2 (Feb) → 51.6 (Mar) → 51.7 (Apr) → 51.5 (May)

(Percentage change from previous period)

2013

2014 1.6

Q1 0.6

Q3 0.3

Q4 0.3

Q1 0.5

Feb -

2016 Mar -

Real GDP

-0.3

0.9

Q4 0.4

Industrial production

-0.6

0.9

0.6

1.5

0.9

0.1

0.2

-0.4

0.9

-1.2

-0.8

-

Retail sales

-0.6

1.4

1.0

2.8

1.1

0.6

0.7

0.2

0.8

0.4

-0.6

0.0

Exports (y-o-y)

1.0

2.2

4.4

5.4

5.6

8.2

4.5

3.4

-1.3

1.1

-2.7

-

Consumer prices (y-o-y)

1.4

0.4

0.3

0.0

-0.3

0.2

0.1

0.2

0.0

-0.2

0.0

-0.2

Annual Annual

Annual

2015 Q2 0.4

Apr -

Sources: Eurostat, Bloomberg

Eurozone’s GDP growth and industrial production 3

Source: Eurostat

(%)

(%)

10 8

2 6 4

1

2 0

0 -2

-1

-4 -6

-2 -8 -3

-10

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

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 0.2 percent compared to the previous quarter and rose 2.2 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 -0.2

1.7

2.2

3.3

2.2

Q2¹

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

Retail sales in April declined 0.5 percent month-on-month, despite increasing sales of nondurable goods (up 0.4%), such as food, as sales of durable goods (down 2.0%), such as automobiles, and semi-durable goods (down 0.2%), such as clothing, decreased. Year-on-year, the index rose 4.2 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)

June 2016

09

(Percentage change from previous period)

2014 Annual Annual Q3 1.4 2013

Retail sales (y-o-y)

0.7

Q4 0.3

Annual

-

Q1 1.0

2015 Q2 0.7

Q3 1.3

Q4 3.1

Q1¹ -1.1

2016 Mar¹ 4.3

Apr¹ -0.5

6.1

4.5

5.7

4.2

2.0

2.0

2.4

3.9

2.2

3.4

3.6

- Durable goods

0.3

5.1

3.2

0.4

10.2

4.3

0.8

2.0

8.2

-6.3

10.1

-2.0

· Automobiles

2.1

16.4

5.1

0.3

21.3

7.0

5.4

3.5

11.2

-11.8

18.2

-6.4

- Semi-durable goods

2.1

-0.8

3.9

-2.3

-1.2

-2.0

-1.0

1.8

2.8

-2.1

3.9

-0.2

- Nondurable goods4

0.4

1.6

-0.8

1.3

2.5

0.6

1.2

0.7

0.3

2.6

1.1

0.4

2

3

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

2010.1

Durable goods

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Nondurable goods

Semi-durable goods

Retail sales in May are expected to increase backed by strong domestic sales of cars, department store sales and domestic sales of gasoline.

(Percentage change from same preriod in previous year)

Oct

2015 Nov

Dec

Jan

Feb

2016 Mar

Apr

May

Credit card use

13.1

Department store sales

17.4

9.8

8.5

15.8

14.2

13.9

7.2

22.7

4.1

-3.8

9.6

-0.1

4.8

8.0

1.5

Large discount store sales

1.6

-0.6

-2.1

13.4

-5.4

-1.4

0.2

-5.5

Domestic sales of gasoline

10.0

4.8

Domestic sales of cars

22.7

16.3

4.3

8.5

-1.1

-0.7

1.6

7.2

17.7

-4.5

9.0

18.9

5.8

20.8

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 (preliminary GDP) fell 7.4 percent quarter-on-quarter and 4.5 percent year-on-year in the first quarter of 2016.

(Percentage change from previous period)

2013 Q1

2014 Q2

Q3

Q4

Annual¹

Q1¹

2015 Q2¹

Q3¹

Q4¹

2016 Q1¹

-0.8

6.0

-1.1

1.3

0.3

3.5

5.3

0.5

0.8

1.8

0.5

-7.4

-

-

7.4

7.9

4.4

4.4

-

5.8

5.1

6.7

3.9

-4.5

- Machinery

-2.3

5.0

-2.9

0.9

0.9

5.2

2.1

0.1

-2.9

0.8

-3.0

-6.4

- Transportation equipment

3.1

8.3

3.5

2.2

-1.0

-0.4

12.5

1.5

9.3

3.7

7.4

-9.4

Annual Annual

Facility investment² (y-o-y)

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

Facility investment 40

Source: Bank of Korea (national accounts)

(%)

30

20

10

0

-10

-20

-30 2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

Facility investment (q-o-q)

2015.Q1

2016.Q1

Facility investment (y-o-y)

(Percentage change from previous period)

2015

2014 Annual Annual

Facility investment index (y-o-y)

5.2

6.3

Q1 -0.2

-2.2

Q3 5.2

Q2

Q4 -1.2

Q11 -8.8

Jan -6.5

2016 Feb -7.1

Mar1 5.8

Apr1 3.4

-

-

9.2

4.5

10.2

1.6

-7.1

-6.0

-7.9

-7.4

-2.7

- Machinery

3.9

2.9

-0.1

-6.0

0.7

-2.6

-5.6

-2.7

-3.5

3.3

0.9

- Transportation equipment

8.8

14.9

-1.0

8.8

16.5

1.0

-14.4

-12.1

-15.5

10.7

9.3

1. Preliminary Source: Statistics Korea

June 2016

11

The facility investment index in April rose 3.4 percent month-on-month as both machinery and transportation equipment investment increased. The index fell 2.7 percent year-on-year.

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

(y-o-y, %)

40

30

20

10

0

-10

-20 -30 2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

Transportation equipment

2016.Q1

Machinery

Facility investment outlooks are mixed as the average manufacturing operation ratio and facility investment adjustment pressure remain low, whereas machinery imports are decreasing at a slower pace.

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)

2015

2014 Annual Annual

Domestic machinery orders

14.8

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

-3.6

Q1 -3.0

14.9

Q3 -27.1

Q2

Q4 6.9

Q1¹ 0.9

Jan -24.0

2016 Feb 22.7

Mar¹ Apr1 8.5 -28.2

-

-

-0.1

8.6

-10.0

9.2

-6.9

-30.2

36.4

-7.8

-10.3

- Public

94.2

-61.7

-66.9

61.7

-85.3

-19.8

56.9

-40.7

80.7 110.8

49.3

- Private

4.8

10.0

11.4

12.5

4.7

10.8

-2.8

-23.1

18.0

1.4

-31.9

Machinery imports

5.8

0.3

8.5

-1.1

2.3

-6.4

-13.0

-3.5

-17.2

-17.4

-5.5

Average manufacturing operation ratio

76.1

74.3

74.3

74.3

74.9

73.6

73.2

72.3

73.5

73.7

71.0

Facility investment adjustment pressure²

-1.4

-1.8

-2.8

-2.8

-1.2

-0.6

-1.2

-2.6

1.5

-1.7

-3.3

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 (preliminary GDP) rose 6.8 percent quarter-onquarter and 9.6 percent year-on-year.

(Percentage change from previous period)

2013 5.5

1.1

Q1 3.3

-

-

4.1

Annual Annual

Construction investment² (y-o-y)

2014 Q2 1.0

Q3 -0.3

Q4 1.4

Annual¹

3.9

Q1¹ 5.5

2015 Q2¹ 1.8

Q3¹ 3.3

Q4¹ -2.4

2016 Q1¹ 6.8

0.2

2.3

-1.5

-

0.9

1.0

5.6

7.5

9.6

- Building construction

11.2

6.3

2.7

3.6

2.2

-4.9

6.3

2.5

4.9

5.6

0.3

3.6

- 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

14.0

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)

June 2016

13

The value of construction completed (constant) in April fell 6.7 percent month-on-month as both civil engineering works and building construction decreased. The index rose 16.1 percent year-on-year.

Construction 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

Residential buildings

Building construction

2015.Q1

Civil engineering works

(Percentage change from previous period)

2015

2014 Annual Annual

Construction completed (constant) -0.7 (y-o-y) - Building construction 7.8 - Civil engineering works -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

Jan 0.6 9.4 4.4 -6.5

2016 Feb 2.0 10.1 2.4 0.7

Mar1 7.0 23.1 2.0 18.7

Apr1 -6.7 16.1 -4.9 -10.1

1. Preliminary Source: Statistics Korea

Apartment presales and shipments of intermediate building materials are increasing, but leading indicators are mixed as building permits fell and construction orders increased.

Apartment presales (thousands, Real Estate 114) 64 (Oct 2015) → 76 (Nov) → 58 (Dec) → 8 (Jan 2016) → 9 (Feb) → 39 (Mar) → 34 (Apr) → 53 (May) 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) → 5.00 (Apr) → 5.10 (May) (Percentage change from same period in previous year)

2015

2014 Annual Annual

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

16.3 24.5 -4.4 11.2

48.2 50.1 42.9 34.3

Q1 57.4 47.4 89.5 1.7 11.0

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

14

The Green Book : Current Economic Trends

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 -26.5 37.8 45.9 40.4

Q11 14.3 18.1 13.7 16.4 19.7

Jan -3.9 19.5 -16.9 43.1 26.8

2016 Feb1 84.3 44.3 136.3 -8.8 27.8

Mar1 Apr1 -5.3 18.0 -11.6 1.9 -10.9 32.2 18.6 -24.9 9.9 -1.5

Leading indicators of construction investment Sources: Statistics Korea (construction orders), Ministry of Land, Infrastructure and Transport (building permit area) 300 (y-o-y, %) 250 200 150 100 50 0 -50 -100 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Construction orders

2015.1

2016.1

Building permit area

5. Exports and imports

Exports declined 6.0 percent (preliminary) year-on-year to US $39.78 billion in May. Exports fell at a slower pace in May compared with the previous month partly due to more days worked (up 1 day). Shipments to most regions decreased at a slower rate and exports to the US turned positive. Major export items, including automobiles and steel products, declined at a slower pace than the previous month.

Export growth by region in May (y-o-y, %) 0.7 (US), 0.1 (ASEAN countries), -6.7 (Latin America), -9.1 (China), -12.4 (Japan), -13.1 (EU), -14.4 (Middle East) Export growth by item in May (y-o-y, %) 3.6 (computers), 0.2 (petrochemicals), -4.0 (steel products), -4.1 (semiconductors), -7.1 (automobiles), -11.8 (mobile phones), -16.6 (vessels)

By volume, export growth slowed from 5.3 percent in the previous month to 2.7 percent.

Average daily exports, an indicator adjusted to days worked, increased month-on-month to US $1.85 billion in May. Average daily exports (billion) 1.62 (Jan 2016) → 1.80 (Feb) → 1.79 (Mar) → 1.82 (Apr) → 1.85 (May)

June 2016

15

(US $ billion)

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

2015

2016

Annual

Annual

Q1

Q2

Q3

Q4

May 42.33

Q1 115.62

572.66

526.76

133.40

135.10

128.23

130.02

2.3

-8.0

-3.0

-7.3

-9.5

2.11

1.93

2.01

1.99

1.87

43.01

Apr 41.05

May1 39.78

-12.0

-11.0

-13.3

-8.1

-11.2

-6.0

1.86

2.06

1.74

1.79

1.82

1.85

Mar

1. Preliminary Source: Korea Customs Service

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 May fell 9.3 percent (preliminary) year-on-year to US $32.70 billion.

Imports fell at a slower pace compared with the previous month (down 14.9% → down 9.3%) as capital and consumer goods imports increased and commodities decreased at a slower rate.

Import growth by category (y-o-y, %, Apr → May) -24.2 → -19.6 (commodities), -6.9 → 0.4 (capital goods), -1.2 → 6.9 (consumer goods)

(US $ billion)

2014 Imports (y-o-y, %) Average daily imports

2015

2016

Annual

Annual

Q1

Q2

Q3

Q4

May

Q1

Mar

Apr

May1

525.51

436.50

111.77

110.50

107.96

106.27

36.04

93.57

33.16

32.22

32.70

1.9

-16.9

-15.6

-15.6

-18.7

-17.8

-15.4

-16.3

-13.9

-14.9

-9.3

1.94

1.60

1.68

1.62

1.58

1.52

1.76

1.41

1.38

1.43

1.52

1. Preliminary Source: Korea Customs Service

16

The Green Book : Current Economic Trends

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

2011.1

Import growth rate

2012.1

2013.1

2014.1

2015.1

Commodities

2016.1

Capital goods

The trade balance (preliminary) posted a surplus of US $7.08 billion in May, staying in the black for the 52nd consecutive month. Surpluses decreased compared with the previous month.

(US $ billion)

2014 Trade balance

2015

2016

Annual

Annual

Q1

Q2

Q3

Q4

May

Q1

Mar

Apr

May1

47.15

90.26

21.63

24.61

20.28

23.74

6.29

22.03

9.85

8.82

7.08

1. Preliminary Source: Korea Customs Service

Exports and imports

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

60 (US $ billion) 50

40

30

20

10

0 -10 2006.1

2007.1

Trade balance

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

Exports

2016.1

Imports

June 2016

17

6. Mining and manufacturing production

Mining and manufacturing production fell 1.3 percent month-on-month in April as decreases in automobiles and other transportation equipment offset increases in semiconductors and primary metals.

Compared to the same period of the previous year, the index dropped 2.8 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

2014.1

Industrial production (m-o-m)

2015.1

2016.1

Industrial production (y-o-y)

(Percentage change from previous period)

2015

2016

-

Q1 -0.3

Q4 -0.9

Apr -0.7

Q1¹ -0.6

Feb 3.2

Mar¹ -1.3

Apr¹ -1.3

-0.6

-1.1

-0.1

-2.2

-0.3

2.3

-0.6

-2.8

-

-0.3

-0.7

-0.6

-0.8

3.2

-1.2

-1.2

Mining and (y-o-y) manufacturing Shipment activity² - Domestic consumption

-0.6

-1.2

0.1

-2.3

-0.4

2.1

-0.6

-2.8

-0.2

-0.7

-0.5

-0.7

-1.9

2.3

2.2

-1.6

0.4

0.4

-0.4

0.5

-0.9

0.7

3.8

-2.4

- Exports

-1.0

-2.0

-0.6

-2.2

-3.2

4.2

0.3

-0.6

Annual

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

Inventory³

2.9

3.0

-5.3

1.7

3.9

1.9

0.0

-2.3

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

74.3

74.3

73.6

74.4

73.2

73.5

73.7

71.0

1.2

1.6

0.7

1.7

0.4

0.5

0.4

0.5

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

Compared to the previous month, production of semiconductors (up 13.5%), primary metals (up 1.2%) and clothing & fur (up 5.1%) rose, while automobiles (down 6.3%), other transportation equipment (down

18

The Green Book : Current Economic Trends

12.0%) and chemical products (down 3.1%) fell.

Compared to a year ago, production of semiconductors (up 15.1%), refined petroleum (up 9.1%) and cigarettes (up 20.8%) rose, while automobiles (down 8.7%), electronic parts (down 12.7%) and mechanical equipment (down 9.5%) declined.

The manufacturing inventory-shipment ratio fell 0.9 percentage points month-on-month to 124.2 percent as inventories fell 2.3 percent and shipments decreased 1.6 percent.

Inventories of semiconductors (up 2.9%), processed metals (up 1.5%) and other products (up 9.9%) rose, while electronic parts (down 10.0%), refined petroleum (down 9.4%) and chemical products (down 4.8%) declined.

Shipments of refined petroleum (up 6.0%), semiconductors (up 4.2%) and primary metals (up 0.9%) rose, while automobiles (down 5.0%), other transportation equipment (down 14.2%) and communications equipment (down 13.8%) 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 2.7 percentage points month-on-month to 71.0 percent.

Mining and manufacturing production for May will be affected by both positive and negative factors as exports have been declining at a slower pace and domestic sales of cars have taken advantage of the luxury sales tax cut, while the global economic recovery remains weak.

June 2016

19

Average manufacturing operation ratio 100

Source: Statistics Korea (industrial activity trends)

(%)

90

80

70

60

50 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

7. Service sector activity

Service output in April increased 0.5 percent month-on-month and 2.1 percent year-on-year.

Month-on-month, healthcare & social welfare services (up 2.3%), financial & insurance services (up 1.4%) and hotels & restaurants (up 0.6%) increased, while professional, scientific & technical services (down 3.2%) and business services (down 1.8%) decreased.

(Percentage change from previous period)

100.0

1.5

2.3

2.8

21.6

0.1

0.4

1.7

0.7

0.3

0.9

2.2 -0.8 -1.1

- Transportation services

8.5

1.0

1.7

1.4

-0.2

-2.6

1.9

1.9

- Hotels & restaurants

7.2

0.5

1.5

-2.0

-0.6

-3.4

- Publishing & communications services

8.4

2.2

2.0

-0.6

-1.9

-0.5

Service activity index - Wholesale & retail

- Financial & insurance services

2013 2014

2016 Feb Mar1 Apr1 0.3 0.5 0.5

2015 Q2 0.5 0.5

Weight

Annual Annual Annual

Q1

Q3 1.2

Q4 Q11 1.2 -0.1

3.3

0.5

1.1

1.4 -3.3

0.6

2.1

0.8 -0.3

0.2 -1.9

0.6

3.0

1.1 -0.5

1.2

1.7

1.6

2.4 -3.7

1.4

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 -3.8 -6.3

2.4

2.1

- Professional, scientific & technical services

5.6

3.3

2.3

-0.4

-2.9

-0.1

1.6

0.3 -2.7 -4.0

8.0 -3.2

- Business services

3.3

2.1

2.5

3.9

2.3

0.4 -1.0

3.4

0.2

1.2

0.3 -1.8

- Education services

0.4

10.9

0.8

1.3

0.9

1.0

-0.6

0.0

1.0 -0.2

0.0

1.4 -0.5

- Healthcare & social welfare services

7.5

5.2

6.3

6.2

1.9

0.0

1.4

3.1

0.4

0.8

2.3

- Entertainment, cultural & sports services

2.9

-0.7

-1.0

1.1

1.5

-2.5

1.0

3.2 -2.4

4.4 -0.8

3.0

- Membership organizations & personal services

3.6

6.1

-0.5

-0.5

0.7

1.6 -0.2 -2.7

1.4

7.7 -2.0

0.0

- Sewerage & waste management

0.6

-0.4

1.0

7.2

0.6

3.6

1.5 -0.4 11.8 -5.6

1. Preliminary Source: Statistics Korea

20

The Green Book : Current Economic Trends

4.6 -4.6

0.4

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 15

2015.1

2016.1

Service sector activity (y-o-y)

Source: Statistics Korea (industrial activity trends)

(%)

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)

April 2016 service output by business 8

4

Transportation services

Total index

0

Source: Statistics Korea (industrial activity trends)

Publishing & communications services

(y-o-y, %)

Hotels & restaurants Wholesale & retail

2016.1

2015.1

Entertainment, cultural & sports services Professional, scientific & technical Real estate services & renting

Financial & insurance services

Membership organizations & personal services

Education services

Business services

Health & social welfare services

Sewerage & waste management

-4

The service output outlook for May is positive as domestic sales of cars and average daily stock transactions increased.

Average daily stock transactions (trillion won) 11.2 (Jul 2015) → 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) → 8.5 (May)

June 2016

21

8. Employment

The number of workers on payroll in April increased by 252,000 from a year earlier to 26,150,000, and the employment rate rose 0.1 percentage points to 65.7 percent.

By industry, services continued to lead employment growth.

By employment status, permanent workers continued to drive employment growth, while daily workers fell at a faster 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

2011.1

Original data

22

The Green Book : Current Economic Trends

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 70.6

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

6.9

7.0

7.0

7.1

7.1

7.1

7.1

7.0

7.0

6.9

7.0

7.1

7.0

6.8

6.8

6.9

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 17.3 0 4.4 4.5 2014.1 2

5.3 3

6.1 4

6.4

6.5

5

6

6.2 7

6.2 8

Services

6.2 9

6.2 10

5.8 11

4.2 3.9 4.1 12 2015.1 2

4.9 3

Construction

5.9 6

5.8 7

5.7 8

5.7 9

5.6 10

Manufacturing

2012 2013

2014 Q4 Annual Q1

Annual Annual Annual Q3

Number of employed (millions)

5.9 5

5.5 4

5.1 11

4.0 3.6 3.8 12 2016.1 2

4.8 3

5.2 4

Agriculture, forestry & fisheries

2015 Q2 Q3

Q4

Apr

Q1

2016 Mar Apr

24.68 25.07 25.60 25.93 25.77 25.94 25.27 26.10 26.24 26.14 25.90 25.55 25.80 26.15

Employment rate (%)

59.4 59.5 60.2 60.9 60.4 60.6 59.0 60.7 60.9 60.5 60.3 59.7 59.6 60.3

(Seasonally adjusted)

59.4 59.5 60.2 60.3 60.3 60.3 60.5 59.9 60.3 60.5 60.0 60.5 60.4 60.1

Employment growth (y-o-y, thousands)

437

386

533

517

422

337

354

308

310

376

216

287

300

252

(Excluding agriculture, forestry & fisheries)

451

394

601

638

531

444

441

435

419

482

351

341

327

312

- Manufacturing

14

79

146

194

129

156

139

147

164

176

167

126

124

48

- Construction

22

-19

42

57

72

27

72

44

11

-19

63

-7

-33

-37

- Services

416

318

424

403

336

250

222

235

234

309

108

216

229

302

- Agriculture, forestry & fisheries

-14

-8

-87 -127 -115 -106 -135

-54

-28

-60

-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

(%) 4.3

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 21.2 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

5.5

19.8 19.3 19.2 19.4 19.5 60 19.2 19.4 19.6 19.7 19.7 19.5 20.1 19.7 19.8 19.7 19.7 19.7 19.5 19.4 19.5 19.4 19.3 19.5 19.7 19.5 19.7 19.8 20.2

40

20

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 49.4

0

Unpaid family workers

Self-employed workers

Daily workers

Temporary workers

Permanent workers

June 2016

23

2012 2013

Q4 Annual Q1

2015 Q2 Q3

Q4

Apr

Q1

2016 Mar Apr

2014

Annual Annual Annual Q3

Employment growth (y-o-y, thousands)

437

386

533

517

422

337

354

308

310

376

216

287

300

252

- Wage workers

315

483

548

519

476

487

442

422

521

565

347

427

434

386

路 Permanent workers

436

615

443

333

355

432

355

332

505

536

300

505

510

459

路 Temporary workers

-2

-96

140

226

141

54

82

3

1

129

-31

15

34

96

-120

-37

-35

-40

-20

1

4

87

15 -100

78

-93 -110 -169

121

-97

-15

-3

124

-67

1

19

7

-89

-49

-37 -136 -135

-57

-96 -105 -105

- Male

234

186

266

268

196

132

141

145

111

132

121

107

130

74

- Female

203

200

267

249

226

205

213

163

199

244

95

180

170

178

- 15 to 29

-36

-50

77

102

56

68

32

90

50

100

85

40

76

43

- 30 to 39

-31

-21

-21

-7

-29

-38

-1

-56

-60

-36

-68

-21

-29

-22

路 Daily workers - Nonwage workers 路 Self-employed workers

-54 -151

-88 -114 -211 -189 -131 -140 -134 -133

- 40 to 49

11

22

38

15

4

-14

-47

-15

1

7

-26

6

7

-52

- 50 to 59

270

254

239

215

190

149

177

138

145

135

112

84

60

76

- 60 or more

222

181

200

192

201

172

192

150

174

169

114

179

185

208

Source: Statistics Korea

The number of unemployed persons in April was up 22,000 year-on-year to 1,075,000, and the unemployment rate stayed unchanged year-on-year at 3.9 percent. The unemployment rate fell in all age groups except in the groups of those aged 15 to 29 and those in their 60s or more.

The economically inactive population in April increased 149,000 from a year earlier to 16,120,000, while the labor force participation rate remained unchanged year-on-year at 62.8 percent.

Year-on-year, the number of those economically inactive due to education (down 112,000) and childcare (down 123,000) decreased, while those due to rest (up 150,000) increased.

2012 2013

2014

Annual Annual Annual

Q3

Q4 Annual Q1

2015 Q2 Q3

Q4

Apr

Q1

2016 Mar

Apr

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

23

64

79

22

- Male

-26

-6

49

37

59

24

25

42

31

-3

-1

51

82

30

- Female

1,089 1,042 929

845 1,053 1,153 1,155 1,075

-9

-7

80

70

63

16

32

23

14

-6

24

13

-3

-8

Unemployment rate (%)

3.2

3.1

3.5

3.3

3.2

3.6

4.1

3.8

3.4

3.1

3.9

4.3

4.3

3.9

(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

3.8

3.7

- 15 to 29

7.5

8.0

9.0

8.6

8.3

9.2

10.3

9.9

8.4

8.0

10.2

11.3

11.8

10.9

- 30 to 39

3.0

3.0

3.1

3.0

2.8

3.1

3.1

3.3

3.0

2.9

3.6

3.2

3.3

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

2.4

2.4

2.5

2.3

- 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

2.7

2.4

- 60 or more

2.4

1.8

2.3

1.5

1.6

2.5

4.1

2.2

2.0

2.1

2.3

4.2

2.8

2.3

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

Apr

Q1

2016 Mar Apr

16.08 16.22 15.98 15.76 16.07 16.11 16.47 15.84 15.92 16.19 15.97 16.57 16.36 16.12

Labor force participation rate (%)

61.3

61.5

62.4

63.0 62.4 62.6 61.5 63.2 63.0 62.5 62.8 61.7 62.2 62.8

(Seasonally adjusted)

61.3

61.5

62.4

62.5 62.4 62.6 62.8 62.3 62.5 62.6 62.4 62.8 62.8 62.4

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

128

141 -246 -222 -101

- Childcare - Housework

-2 123

1 -39 -3 -131

- Education

-12

77

-81 -109

-72 -146 -141 -213 -112 -118 -197 -108 -145 -112

- Old age - Rest

148 -53

54 -7

93 -92

89 -15

-41 -99 91 -65

-31 -67

128

72

150

162

128

8 -45

41 -91

50 -41

3 -19

-63 -29

109 141

68 154

95 151

103 123

171 136

272

99

71 -115 -2 32 107 214

161 97

61

149

-81 -123 11 46 148 70

110 150

Source: Statistics Korea

June 2016

25

9. Financial markets 9.1 Stock market

The KOSPI fell 0.5 percent in May from 1,994 points to 1,983 points and the KOSDAQ was down 0.2 percent from 700 points to 699 points.

The KOSPI dropped to 1,939 points on May 24 affected by the release of the April FOMC minutes, which signaled a possible rate hike in June. The index, however, rebounded toward the end of the month backed by bargain hunting and a rally in China’s Shanghai Composite Index.

Shanghai Composite Index (p) 2,992.64 (May 1st) → 2,806.91 (May 19th) → 2,916.62 (May 31st)

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)

Apr 2016

KOSPI May 2016

Change1

Apr 2016

KOSDAQ May 2016

Change1

Stock price index (points)

1,994.2

1,983.4

-10.8 (-0.5%)

699.8

698.5

-1.3 (-0.2%)

Market capitalization (trillion won)

1,262.0

1,255.4

-6.6 (-0.5%)

212.6

212.7

0.1 (0.0%)

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

4.7

5.0

0.3 (6.4%)

3.4

3.5

0.1 (2.9%)

32.61

32.86

0.25 (0.8%)

9.76

9.82

0.06 (0.6%)

1. Change from the end of the previous month in May 2016 Source: Korea Exchange

26

The Green Book : Current Economic Trends

9.2 Exchange rate

The dollar-won exchange rate rose to 1,191.7 won at the end of May as the dollar strengthened after the release of the April FOMC minutes, which signaled a June rate hike.

The 100 yen-won exchange rate rose to 1,071.4 won in May as the dollar-yen exchange rate rebounded to around 111 yen amid a strong dollar. The yen fell to around 105 yen against the dollar in early May as the Bank of Japan (BOJ) held off on further stimulus.

(Closing rate)

2010 Dec

2011 Dec

2012 Dec

2013 Dec

2014 Dec

2015 Dec

Apr

2016 May

Change1

Dollar-Won

1,134.8

1,151.8

1,070.6

1,055.4

1,099.3

1,172.5

1,139.3

1,191.7

-4.4

100 Yen-Won

1,393.6

1,481.2

1,238.3

1,002.3

913.0

974.1

1.062.2

1,071.4

-0.9

1. Appreciation from the end of the previous year in May 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 fluctuated slightly in May amid expectations of a rate cut by the Bank of Korea (BOK) and affected by economic indicators released in major economies. In May, 3-year, 5-year and 10-year bond yields fell to record lows of 1.412 percent, 1.520 percent and 1.764 percent, respectively.

June 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

2015.1

3-yr Treasury bond yield

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

2016 Mar 1.53

Apr 1.50

May 1.48

Change1 -2

CD (91 days)

2.80

3.55

2.89

2.66

2.13

1.67

1.61

1.61

1.56

-5

Treasury bonds (3 yrs)

3.38

3.34

2.82

2.86

2.10

1.66

1.44

1.45

1.50

5

Corporate bonds (3 yrs)

4.27

4.21

3.29

3.29

2.43

2.11

1.93

1.92

1.95

3

Treasury bonds (5 yrs)

4.08

3.46

2.97

3.23

2.28

1.81

1.55

1.55

1.58

3

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

9.4 Money supply and money market

M2 (monthly average) in March increased 7.8 percent from a year earlier. Private sector credit expanded at a slower pace, as corporate loans and security investments by depository institutions grew at a slower rate.

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

2010

2011

2012

2013

2014

2015

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 March 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

2016

18.6

Jan 20.7

Feb 19.4

Mar 18.8

Mar1 712.5

6.6

8.6

8.1

8.3

7.8

2,296.8

7.0

9.7

8.9

8.9

8.6

3,160.3

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 decreased month-on-month in April as instant access deposits fell 8.8 trillion won due to seasonal factors including fund withdrawals by corporations to pay value added taxes (VATs) and dividends.

Asset management company (AMC) deposits surged led by money market funds (MMFs) as banks redeposited funds which they had temporarily withdrawn 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

2015

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

Jan -2.9 23.5

Feb 13.4 11.6

2016 Mar 3.3 -11.1

Apr -11.0 7.4

Apr1 1,393.9 453.2

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

June 2016

29

10. Balance of payments

Korea’s current account in April (preliminary) posted a surplus of US $3.37 billion, staying in the black for 50 consecutive months.

The goods account surplus decreased month-on-month from US $12.45 billion to US $9.56 billion as exports declined at a faster rate.

Growth in goods exports (y-o-y, %) -9.3 (Mar 2016) → -19.2 (Apr) Growth in goods imports (y-o-y, %) -16.1 (Mar 2016) → -18.7 (Apr) Export growth by item in April (y-o-y, %, customs clearance basis) -11.2 (total), 0.0 (mobile phones), -11.8 (semiconductors), -16.9 (steel), -19.7 (automobiles), 24.1 (vessels), -39.7 (oil products) Import growth by category in April (y-o-y, %, customs clearance basis) -14.9 (total), -24.2 (commodities), -6.9 (capital goods), -1.2 (consumer goods)

Current account balance 14

Source: Bank of Korea (balance of payments trends)

(US $ billion)

10

5

0

-5 2006.1

2007.1

Goods account

2008.1

2009.1

2010.1

2011.1

Services account

2012.1

2013.1

2014.1

2015.1

2016.1

Current account

The services account deficit increased month-on-month from US $1.00 billion to US $1.62 billion, despite an improvement in the intellectual property rights account, as the construction account surplus fell, and the other businesses account deficit rose.

Services account (US $ billion, Mar → Apr) -0.39 → -0.40 (manufacturing), -0.01 → -0.05 (transportation), -0.59 → -0.53 (travel), 0.92 → 0.55 (construction), -0.18 → -0.06 (intellectual property rights), -0.75 → -1.11 (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

2011.1

Travel balance

2012.1

2013.1

2014.1

2015.1

Travel revenue

2016.1

Travel payment

The primary income account deficit expanded from US $0.86 billion to US $4.07 billion due to overseas dividend payments. The secondary income account deficit fell from US $0.51 billion to US $0.50 billion.

(US $ billion)

2015 29.11

Q41 26.41

Apr1 7.73

Q11 24.08

2016 Mar1 10.09

33.68

30.64

31.76

12.09

27.88

12.45

9.56

-3.09

-3.56

-4.67

-0.80

-4.17

-1.00

-1.62

2014 105.87

Q11 22.44

Q21 27.92

88.89

120.29

24.22

-3.68

-15.71

-4.39

Annual

Annual1

Current account

84.37

- Goods balance - Services balance

Q31

Apr1 3.37

- Primary income balance

4.15

5.90

3.83

-1.56

2.73

0.90

-3.10

1.25

-0.86

-4.07

- Secondary income balance

-4.98

-4.61

-1.22

-1.11

-0.70

-1.58

-0.46

-0.88

-0.51

-0.50

1. Preliminary Source: Bank of Korea

The capital and financial account in April (preliminary) saw an outflow of US $0.17 billion.

Capital & financial account balance* (US $ billion) 9.80 (Apr 2015) → 11.08 (Oct) → 8.72 (Nov) → 7.86 (Dec) → 6.48 (Jan 2016) → 9.50 (Feb) → 12.24 (Mar) → 0.17 (Apr) * Positive figures represent net outflows, and negative figures represent net inflows.

FDI ended April with a net inflow of US $0.14 billion, reversing from a net outflow of US $3.59 billion a month earlier as Korean FDI increased at a slower pace (up US $3.89 billion → up US $1.78 billion) while inbound FDI expanded at a faster pace (up US $0.30 billion → up US $1.93 billion).

Net outflows of portfolio investment decreased from US $5.87 billion to US $3.36 billion as Korean investment in foreign shares expanded at a slower pace (up US $9.27 billion → up US $7.20 billion) while foreign investment in Korean shares increased at a faster pace (up US $3.40 billion → up US $3.84 billion).

Financial derivatives investment ended the month with a net inflow of US $1.03 billion, reversing from a net outflow of US $0.79 billion, and other investment also reversed to a net inflow of US $3.33 billion from a net outflow of US $2.10 billion.

June 2016

31

The current account is expected to continue to be in surplus in May as net exports totaled US $7.08 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 0.8 percent year-on-year in May.

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

(%)

2015 Month-on-Month Year-on-Year

Jul 0.7 0.2

Aug 0.7 0.2

Sep 0.6 -0.2

Oct 0.9 0.0

Nov 1.0 -0.1

Dec 1.3 0.3

Jan 0.8 0.0

2016 Mar 1.0 -0.3

Feb 1.3 0.8

Apr 1.0 0.1

May 0.8 0.0

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

2016.1

2015.1

Core inflation

Producer price inflation

Prices of agricultural, livestock & fishery products grew at a slower pace, increasing 1.3 percent compared to 5.5 percent in the previous month, due to supplies of newly harvested produce and the government’s efforts to balance supply and demand.

Oil product prices rose month-on-month but fell 11.6 percent year-on-year due to a high base effect.

Personal service prices rose 2.2 percent after increasing 2.0 percent a month earlier, affected by a temporary holiday.

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

1.0 0.8 -

Agricultural, livestock & fishery products 5.5 1.3 0.10

Manufactured Oil products products -0.6 -11.8 -0.9 -11.6 -0.27 -0.49

Public utilities -8.0 -6.4 -0.30

Public services 2.2 2.2 0.30

Personal services 2.0 2.2 0.69

Housing rents 2.7 2.6 0.25

Source: Statistics Korea

Core inflation stood at just under 2.0 percent.

(Percentage change from same period in previous year)

2015 Consumer prices excluding oil and agricultural products Consumer prices excluding food and energy

2016

Aug

Sep

Oct

Nov

2.1 2.5

2.1 2.5

2.3 2.6

2.4 2.7

Dec 2.4 2.8

Jan 1.7 1.9

Feb

Mar

1.8 2.0

1.7 1.9

Apr 1.8 1.9

May 1.6 1.8

Source: Statistics Korea

June 2016

33

Fresh food prices increased at a slower pace as vegetable prices stabilized.

(Percentage change from same period in previous year)

2015 Fresh food prices

Jul

Aug

Sep

Oct

6.0

4.0

0.7

3.7

Nov 3.0

Dec 6.2

Jan

Feb

4.2

9.7

2016 Mar 9.7

Apr 9.6

May 3.5

Source: Statistics Korea

11.2 International oil and commodity prices

International oil prices rose in May due to a projected decline in US oil inventories and supply disruptions in major oil producing countries including Canada and Nigeria. Wildfires in Canada’s oilproducing Alberta province and militant attacks on oil-producing facilities in Nigeria lowered oil output in those countries. Dubai crude prices rose to US $45.9 per barrel on May 31.

Dubai crude (US $/barrel) 42.4 (1st week May) → 43.1 (2nd week) → 45.4 (3rd week) → 45.1 (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)

2014

2016

Annual

Annual

Dubai crude

96.6

50.7

Q1 51.9

2015 Q2 60.5

Brent crude

99.4

53.6

55.1

63.5

51.3

44.7

35.2

31.9

33.5

39.8

43.3

47.7

WTI crude

92.9

48.8

48.6

58.0

46.5

42.2

33.7

31.8

30.6

38.0

41.1

46.8

Q3 49.9

Q4 40.8

Q1 30.5

Jan 26.9

Feb 28.9

Mar 35.2

Apr 39.0

May 44.3

Source: Korea National Oil Corporation

34

The Green Book : Current Economic Trends

Domestic gasoline prices continued to rise in May due to a strong dollar and rising international oil prices.

Domestic gasoline prices (won/liter) 1,368.7 (1st week May) → 1,376.8 (2nd week) → 1,389.2 (3rd week) → 1,407.1 (4th week) International gasoline prices (US $/barrel) 50.4 (3rd week Apr) → 54.7 (4th week) → 53.9 (1st week May) → 53.8 (2nd week) Dollar-won exchange rate (won) 1,141.9 (3rd week Apr) → 1,146.1 (4th week) → 1,138.7 (1st week May) → 1,164.9 (2nd week)

(Won/liter, period average)

2016 2015 Q1 Q2 Q3 Q4 Q1 Jan Feb Mar Apr May Gasoline prices 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 1,388.7 2014

Annual

Diesel prices

Annual

1,637.7 1,299.6 1,312.6 1,344.2 1,309.3 1,232.6 1,121.0 1,157.3 1,101.1 1,103.1 1,121.4 1,157.9

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 wheat prices fell due to a good harvest. International prices of soybeans and corn rose as soybean stocks and corn production are expected to decrease. The US Department of Agriculture (USDA) forecast on May 10 that global soybean ending stocks for 2016/17 would decrease by more than 6 million tons compared with those for 2015/16. The USDA also cut its estimate for Brazil’s corn production this year from 84 million tons to 81 million tons.

International grain price increases in May (monthly average, m-o-m, %) -0.5 (wheat), 10.1 (soybean), 4.9 (corn)

June 2016

35

International prices of nonferrous metals fell due to China’s economic slowdown and concerns over a supply glut. Refined copper production in China increased by about 10 percent year-on-year in JanuaryApril, and copper production in Peru, the third largest copper producing country, surged by more than 50 percent in the first quarter. International aluminum prices edged up.

Nonferrous metal price increases in May (monthly average, m-o-m, %) -2.6 (copper), -1.8 (tin), -1.6 (nickel), -2.0 (lead), 0.2 (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

1000

230 190 150

0 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

CRB (left)

2016.1

Reuters Index (right)

(Period average)

2014 Annual Annual

Reuters Index1 (Sep 18,1931=100) 2,523

2,328

2016 Mar

Q1

2015 Q2

Q3

Q4

Q1

Jan

Feb

2,368

2,394

2,287

2,269

2,115

2,147

2,067

2,132

Apr

May

2,161 2,222

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

12. Real estate market 12.1 Housing market

Apartment prices nationwide rose 0.03 percent month-on-month in May. Apartment prices rose 0.09 percent in the Seoul metropolitan area, which includes Seoul (up 0.15%), Gyeonggi Province (up 0.06%) and Incheon (up 0.05%).

36

The Green Book : Current Economic Trends

Apartment prices fell 0.02 percent in areas excluding the Seoul metropolitan area, which include the five metropolitan cities (up 0.03%) and the eight provinces (down 0.05%).

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

Seoul metropolitan area

7

2015.1

7

2016.1

Areas excluding Seoul metropolitan area

Apartment prices

(Percentage change from previous period)

2010 2011 2012 2013 2014

2015

Annual Annual Annual Annual Annual Annual

Apr

2016 Mar Apr 0.00 0.02

May 0.03

Nationwide

1.9

6.9

0.0

0.3

1.7

3.5

0.4

May Annual Feb 0.3 0.1 0.00

Seoul metropolitan area

-1.7

0.5

-3.0

-1.1

1.5

4.4

0.6

0.4

0.2

0.00

0.00

0.04

0.09

Seoul

-1.2

0.3

-2.9

-1.4

1.1

4.6

0.5

0.4

0.3

0.00

0.01

0.08

0.15

Gangnamš

-1.0

0.3

-3.5

-1.1

1.2

5.2

0.6

0.6

0.3

-0.03 -0.02

0.09

0.20

Gangbuk²

-1.4

0.3

-2.3

-1.7

1.1

3.9

0.4

0.3

0.3

0.04

0.07

0.09

Areas excluding the Seoul metropolitan area

6.4

15.1

3.1

1.7

1.9

2.7

0.3

0.2

0.0

0.00 -0.01

0.04

0.00 -0.02

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 May. Rental prices increased 0.2 percent in the Seoul metropolitan area and stayed unchanged in areas excluding the Seoul metropolitan area.

Apartment rental price increases in major districts in Seoul (m-o-m, %) Gangnam (0.1), Seocho (0.0), Songpa (0.0), Mapo (0.3), Gwanak (0.3), Guro (0.3)

June 2016

37

Apartment rental prices

(Percentage change from previous period)

2015

2010 2011 2012 2013 2014

2016 Mar 0.1

Apr 0.1

May 0.1

Nationwide

7.1

12.3

3.5

4.7

3.4

4.8

0.6

May Annual Feb 0.4 0.6 0.1

Seoul metropolitan area

6.3

11.0

2.1

6.2

4.7

7.1

0.9

0.7

0.9

0.2

0.2

0.2

0.2

Seoul

6.4

10.8

2.1

6.6

3.6

7.2

0.8

0.6

0.8

0.1

0.1

0.1

0.2

Gangnamš

7.6

11.1

2.4

6.7

3.3

7.9

1.0

0.7

0.7

0.1

0.1

0.1

0.1

Gangbuk²

5.1

10.6

1.8

6.4

3.8

6.5

0.6

0.5

0.8

0.2

0.1

0.1

0.2

Areas excluding the Seoul metropolitan area

9.2

14.5

4.6

3.3

2.2

2.8

0.3

0.2

0.4

0.1

0.1

0.1

0.0

2014.1

7

Annual Annual Annual Annual Annual Annual

Apr

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

2013.1

7

Seoul metropolitan area

Monthly apartment transaction volume 160

7

2015.1

7

2016.1

Areas excluding Seoul metropolitan area

Source: Ministry of Land, Infrastructure and Transport

(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 April increased 10.8 percent to 86,298 transactions from 77,853 transactions a month earlier and decreased 28.4 percent year-on-year from 120,488 transactions.

Apartment sales transactions 2011

2012

2013

(Thousands)

Annual1 Annual1 Annual1 Annual1 Annual1

Nationwide

82

61

71

Apr

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

120

110 110 111

2014 84

99

94

86

106

98

88

62

59

78

86

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

12.2 Land market

Land prices nationwide rose 0.21 percent month-on-month in April.

Land prices increased 0.20 percent in the Seoul metropolitan area, led by Seoul (up 0.23%) and Incheon (up 0.19%).

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

Land prices rose 0.24 percent in areas excluding the Seoul metropolitan area, led by Daejeon (up 0.28%), Ulsan (up 0.15%) and North Chungcheong Province (up 0.13%).

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

Land prices 2010

(Percentage change from previous period)

2011

2012

2013

2015

2014

2016

Nationwide

1.05

1.17

0.96

1.14

1.96

2.40

Q1 0.48

Seoul

0.53

0.97

0.38

1.21

2.66

2.69

0.57

0.69

0.69

0.72

0.80

0.57

0.18

0.21

0.23

Gyeonggi

1.49

1.47

1.04

0.91

1.24

1.73

0.35

0.41

0.43

0.52

0.54

0.37

0.11

0.17

0.17

Incheon

1.43

0.66

0.46

0.87

1.35

1.95

0.37

0.53

0.54

0.50

0.53

0.34

0.12

0.13

0.19

Annual Annual Annual Annual Annual Annual

Q1 0.56

Feb

0.60

Q4 Annual 0.72 0.78

0.17

Mar 0.22

Apr 0.21

Q2

Q3

0.59

Source: Korea Appraisal Board

There were 245,000 land transactions in April, down 1.0 percent from the previous month and 16.2 percent from a year ago (293,000).

Land transactions increased month-on-month in the Seoul metropolitan area including Seoul (up 8.6%) and Gyeonggi Province (up 0.8%). Land transactions decreased in the areas excluding the Seoul metropolitan area, led by Daejeon (down 6.4%), South Chungcheong Province (down 19.7%), North

June 2016

39

Jeolla Province (down 11.0%) and North Gyeongsang Province (down 11.4%).

Vacant land transactions, which accounted for 39.4 percent of total land transactions, recorded 97,000 in April, down 7.2 percent month-on-month and 6.4 percent compared with a year ago (103,000).

Land transactions

(Land lots, thousands)

2010

2011

2012

2013

2014

2015 2016 Annual1 Annual1 Annual1 Annual1 Annual1 Annual1 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Nationwide 187 208 170 187 220 257 293 262 279 290 241 229 263 259 274 207 191 248 245 Seoul

16

18

13

17

22

30

36

34

33

36

29

27

31

29

28

21

20

26

28

Gyeonggi

41

43

33

37

46

58

66

60

65

62

56

58

63

61

62

48

44

56

57

Incheon

8

10

8

8

10

12

13

12

13

15

13

12

14

13

12

8

8

10

12

1. Monthly average Source: Korea Land & Housing Corporation

Land transaction volume 500,000

Source: Korea Appraisal Board

(thousand m²)

400,000

300,000

200,000

100,000

0 2006.1

2007.1

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 April decreased 0.8 percent month-on-month and increased 0.8 percent year-on-year.

Output rose month-on-month in services (up 0.5%), and fell in mining & manufacturing (down 1.3%), construction (down 6.7%) and public administration (down 4.0%).

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)

2015 Sep

2016

Oct

Nov

Dec

Jan

Feb1

Mar1

Apr1

1.0 4.6

-0.8 2.5

-0.5 2.0

1.5 2.8

-1.4 1.7

0.7 2.5

0.7 2.4

-0.8 0.8

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

128.0 0.9

128.8 0.6

129.1 0.2

129.6 0.4

129.7 0.1

130.1 0.3

130.5 0.3

131.0 0.4

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

100.6 0.6

100.9 0.3

100.7 -0.2

100.7 0.0

100.5 -0.2

100.4 -0.1

100.4 0.0

100.4 0.0

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

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

137.7 0.7

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

102.5 0.5

102.8 0.3

102.6 -0.2

102.2 -0.4

102.0 -0.2

101.8 -0.2

102.0 0.2

102.2 0.2

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

1. Preliminary

The cyclical indicator of the coincident composite index remained unchanged at 100.4. Five components of the coincident composite index, such as retail sales, the value of construction completed and domestic shipments, increased, while two others, including imports and nonfarm payroll employment, decreased.

June 2016

41

Components of the coincident composite index in April (m-o-m) retail sales (0.8%), value of construction completed (0.6%), domestic shipments (0.5%), service output (0.3%), mining & manufacturing production (0.2%), imports (-1.1%), nonfarm payroll employment (-0.1%)

Cyclical indicator of coincident composite index 110

Source: Statistics Korea (industrial activity trends)

(points)

100

90 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

The cyclical indicator of the leading composite index rose 0.2 percentage points month-on-month to 102.2. Five components of the leading composite index, including the value of construction orders received, the inventory circulation indicator and domestic shipments of machinery, were up, while four others, such as the ratio of export to import prices and international commodity prices, were down.

Components of the leading composite index in April (m-o-m) value of construction orders received (8.0%), inventory circulation indicator (2.4%p), domestic shipments of machinery (1.8%), KOSPI (1.8%), consumer expectations index (1.0p), ratio of export to import prices (-1.2%), international commodity prices (-0.6%), ratio of job openings to job seekers (-0.4%p), spreads between long & short term interest rates (-0.05%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

2011.1

The Green Book : Current Economic Trends

2012.1

2013.1

2014.1

2015.1

2016.1

Policy Issue

Government launches a ministerial meeting to facilitate industrial restructuring Government unveils its plan to reform public institutions in energy, environment and education sectors Revisions to FX regulations focus on flexibility

Government Launches a Ministerial Meeting to Facilitate Industrial Restructuring

The government launched the Ministerial Meeting on Industrial Restructuring on June 8 in order to accelerate corporate restructuring in the shipping and shipbuilding industries, and promote industrial restructuring to help develop future growth engines. Deputy Prime Minister Yoo Il Ho will lead the meeting, and the June 8 meeting discussed the proceedings of restructuring in shipping and shipbuilding companies, and plans to recapitalize state-run banks involved in the restructuring.

Background The current industrial structure needs to be reformed as the global industrial structure has been fast changing. The government has been working on transforming major industries into high value added ones, while continuing to pursue the development of new growth engines. The meeting will discuss mid- to long-term challenges as well as find solutions to current problems with regard to corporate and industrial restructuring.

Proceedings of restructuring in shipping and shipbuilding companies Companies under restructuring are required to take steps according to their own plans and responsibilities.

1) Shipping industry Hyundai Merchant Marine (HMM) The creditor group agreed on the company’s debt restructuring proposal on condition that HMM would successfully conclude its negotiations with bond holders and shipowners, and that HMM would join a shipping alliance. HMM has gained bond holders’ approval for the debt restructuring proposal, and is expected to successfully conclude negotiations with shipowners on charter rates.

Hanjin Shipping Hanjin is now undergoing negotiations with 22 shipowners on charter rates, and will meet with bond holders for debt restructuring. Hanjin is required to secure liquidity.

44

Policy Issue

2) Shipbuilding industry The ‘Big Three’, Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering, have prepared plans in case of further slumps and economic downturn.

Hyundai Heavy Industries (HHI) HHI plans to raise 3.5 trillion won by selling non-core assets, streaming management and reorganizing businesses. Creditor banks evaluate that HHI’s plan will be able to withstand further cuts in orders.

Samsung Heavy Industries (SHI) SHI prepared a plan worth 1.5 trillion won including the issuance of asset-backed securities and new stocks to increase capital.

Daewoo Shipbuilding & Marine Engineering (DSME) DSME has submitted an additional plan worth 3.5 trillion won as creditor banks asked for stronger measures to secure liquidity in addition to the previous one worth 1.85 trillion won. DSME’s previous plan is now underway.

Recapitalization of state-run banks The government will successfully deal with any repercussions in the market as it has finalized plans to finance state-run banks involved in the restructuring of shipping and shipbuilding companies, the Korea Development Bank (KDB) and the Export-Import Bank of Korea (KEXIM). The Recapitalization Fund, which consists of 10 trillion won from the BOK and 1 trillion won from the government, will purchase contingent convertible bonds (CoCos) issued by the KDB and the KEXIM. The fund is scheduled to be launched in July 2016 and run until the end of 2017. < Framework for recapitalization of state-run banks >

Government

direct injection of 1 trillion won (increase in common equity Tier 1)

KDB

KEXIM buy CoCos

establish and operate SPC

KAMCO

Recapitalization Fund (11 trillion won)

BOK’s direct capital injection will be considered in case of systemic risk

BOK

loan (10 trillion won) subordinated loan (1 trillion won)

KAMCO BOK loan (10 trillion won) payment guarantee

KODIT

IBK

(conduit bank)

in-kind contribution

KAMCO: Korea Asset Management Corporation KODIT: Korea Credit Guarantee Fund

June 2016

45

Layoffs and local economies With regard to the restructuring of shipbuilders, the government will work to minimize the effect on employment and local economies. The government will decide whether to designate the shipbuilding industry as a sector that requires special support for laid off workers and small-sized affiliates, and will announce details by the end of June.

A view of Daewoo Shipbuilding & Marine Engineering's Okpo Shipyard in Geoje, South Gyeongsang Province on March 8. The government recently launched the Ministerial Meeting on Industrial Restructuring to accelerate corporate restructuring in the shipping and shipbuilding industries.

Government Unveils its Plan to Reform Public Institutions in Energy, Environment and Education Sectors

The government unveiled on June 14 its plan to reform public institutions in the energy, environment and education sectors. The plan deals with reforming the current functions and capacities in order to ensure that public enterprises focus on their core competencies, provide high-quality services and boost management efficiency.

46

Policy Issue

Five public institutions will be subject to M&As, two will undergo restructuring and 29 will adjust their business models. The government will minimize layoffs by promoting workforces to transfer to the companies where their jobs are moved, and will prepare measures to help change jobs.

Energy sector Restructure overlapping functions - Korea Electrical Engineering and Science Research Institute to be merged with Electric Power Research Institute - Electric power exporters to focus on their specified areas: Korea Electric Power Corporation (KEPCO) to focus on large scale projects and new energy industries, while the five electric power generating public companies1 to focus on new renewable energy - Electrical safety inspection, currently carried out by both KEPCO and Korea Electrical Safety Corporation, to be conducted by Korea Electrical Safety Corporation only -H ydropower facilities to be managed by K-water, instead of Korea Hydro and Nuclear Power Corporation (KHNP) Focus on core competencies - Korea Coal Corporation to be downsized - Overseas energy development projects to be managed more efficiently2: Korea National Oil Corporation and Korea Gas Corporation will be restructured with a focus on core assets and increased cooperation with the private sector, while Korea Resources Corporation will downsize its overseas resources development sector.

- KEPCO to stop overseas power generation resources development and gradually sell shares it holds in nine mine fields - Korea Electrical Safety Corporation to stop serving non-core functions, such as electrical product approval and electric pole management -K orea National Oil Corporation to transfer some of its functions to Korea Energy Agency, such as the management and appropriation of the Energy Special Account Open markets to the private sector - Private companies to be able to engage in electric power retailing, currently carried out by KEPCO3 - Gas imports and the wholesale market to be gradually open to the private sector starting in 2025 - Private companies to be able to engage in the maintenance of electric power generation equipment, currently carried out exclusively by KEPCO Plant Service and Engineering

1. Korea South-East Power Corporation, Korea Southern Power Corporation, Korea East-West Power Corporation, Korea Western Power Corporation, Korea Midland Power Corporation 2. Ministry of Trade, Industry and Energy will announce plans regarding the issue.

3. Ministry of Trade, Industry and Energy will announce plans regarding the issue this year.

June 2016

47

- More private companies to be able to participate in nuclear power plant design, one of the functions carried out by KEPCO Engineering and Construction - KEPCO to close its fiber optic cable installation business in 2017 in order to avoid possible overlaps with the private sector Promote sound management - A total of 20-30 percent of shares in eight energy public enterprises to be listed starting in the first half of 2017, which will put those companies under market watch and eventually improve their financial soundness - Korea District Heating Corporation to increase capital by issuing new stocks in order to improve its financial conditions - Korea Resources Corporation and Korea District Heating Corporation to sell shares they hold in 10 companies whose businesses are irrelevant to their core functions Strengthen the new energy sector - KHNP to focus more on exporting nuclear energy and the International Nuclear Graduate School, currently operated by KEPCO, to go under KHNP - Energy public enterprises to increase investment in new energy industries

Environment sector Restructure overlapping functions - The National Institute of Ecology and three other ecology public institutions to be merged into one - Overlapping services between Korea Environment Corporation and Korea Environmental Industry and Technology Institute to be fixed: Korea Environment Corporation to focus on environmental protection and Korea Environmental Industry and Technology to focus on product safety Open market to the private sector - Korea Environment Corporation to close businesses where it unnecessarily competes with the private sector, such as recycling facilities management, from 2017 - Contracts made between local governments and Korea Environment Corporation for the operation of environmental facilities not to be extended

Education sector Restructure overlapping functions - Korea Institute of Science and Technology Information to be made in charge of purchasing information from overseas, which has been jointly done with Korea Education and Research Information Service Avoid unnecessary competition with the private sector - Korea Foundation for the Promotion of Private Schools to close their teacher training programs if they overlap with programs provided by the private sector 48

Policy Issue

Plans for the future Ministries will have prepared schedules specific to industries and corporations by July, and the Ministry of Strategy and Finance will examine the implementation of the plan by regularly holding meetings.

Revisions to FX Regulations Focus on Flexibility

The government will ease foreign exchange (FX) regulations: Macroprudential regulations and banksâ&#x20AC;&#x2122; FX liquidity regulations, each of which are aimed at avoiding systemic risks and helping banks secure FX liquidity. The decision was made as foreign capital inflows have been stabilized amid the US monetary policies getting less expansionary while there is a need to be prepared for outflow increases that may follow the impending external risks, such as the outcomes of the Brexit referendum, the Fedâ&#x20AC;&#x2122;s rate hike and the US presidential election.

Caps on FX forward positions will be raised as of July 1, 2016, from 30 percent to 40 percent for local banks and from 150 percent to 200 percent for foreign bank branches in Korea, while the bank levy rate will be held at the current level of 0.1 percent and will be imposed on short-term liabilities: on the amount which will reach maturity in a year or less. The bank levy rate may be temporarily lowered in case of sudden capital outflows.

The Basel III liquidity coverage ratio (the ratio of high liquid FX assets to net short-term obligations for the month to come) will be adopted in 2017, and overlapping regulations will be lifted: Different ratios will be applied in 2017 according to the types of banks (commercial banks to meet 60 percent, while some public financial institutions to meet 40 percent), but all banks will have to meet 80 percent as of 2019, except Korea Development Bank which will have to meet 60 percent. The revised law allows the government to lower ratios in case of a crisis.

June 2016

49

Economic News Briefing

BOK cuts key rate to 1.25% Government revises regulations to allow won-yuan direct trading in China ODA budget for 2017 to be 2.7 tn won Korea and China discuss joint project development Korea grows 0.5% in Q1 (preliminary)

BOK cuts key rate to 1.25% The Bank of Korea (BOK) cut its benchmark interest rate by 25 basis points to a record low of 1.25 percent on June 9, lowering the rate for the first time in 12 months. The central bank warned that weak exports and domestic demand are posing risks to the economy, as well as slowing job growth. The BOK stated that it will continue to monitor external risks such as Brexit, monetary policy changes in major countries and global capital flows, while keeping an eye on the progress of corporate restructuring and household debt growth.

Government revises regulations to allow won-yuan direct trading in China The government has revised regulations on foreign exchange transactions in order to lift hurdles to opening the won-yuan direct trade market in China, scheduled at the end of June. The revision allows individuals and businesses to use the won for won-yuan spot trading and the settlement of accounts, in addition to trade settlement. The won clearing bank will be able to borrow up to 3 trillion won from its head office in Korea without reporting to the BOK.

ODA budget for 2017 to be 2.7 tn won The government is planning to spend 2.7 trillion won on official development assistance (ODA) programs in 2017, an increase of 289.2 billion won from this year. About 28 percent of the budget will go to development cooperation, and more than 70 percent will go to programs related to the Sustainable Development Goals (SDGs).

Korea and China discuss joint project development The Ministry of Strategy and Finance (MOSF) hosted the 14th Korea-China Ministerial Meeting on Economic Cooperation on May 27. Deputy Prime Minister Yoo Il Ho and China’s National Development and Reform Commission (NDRC) director Xu Shaoshi attended the meeting along with officials from both countries. The MOSF and NDRC discussed developing joint projects to accelerate cooperation on President Park’s Eurasia Initiative and Xi Jinping’s One Belt and One Road as follow ups to the 2015 Korea-China summit.

With regard to cooperation on the Eurasia Initiative and One Belt and One Road, the MOSF proposed working on the development of a logistics complex in Hunchun, China and a new port in Russia, and the NDRC proposed developing Northeast China. Korea suggested forming a MOSF-NDRC high-level official conference and four working groups, each of which specialize in financing, joint research, joint corporate projects and development cooperation.

June 2016

51

Korea grows 0.5% in Q1 (preliminary) Koreaâ&#x20AC;&#x2122;s real gross domestic product (GDP) expanded 0.5 percent quarter-on-quarter and 2.8 percent year-on-year in the first quarter of 2016, according to preliminary data released by the Bank of Korea on June 2. Both the quarter-on-quarter and year-on-year figures were revised up 0.1 percentage points from the advanced estimates that were released on April 26.

On the production side, agriculture, forestry & fisheries grew 6.5 percent quarter-on-quarter.

Manufacturing contracted 0.2 percent as production of machinery, equipment and automobiles decreased, while construction grew 4.8 percent as both building construction and civil engineering works increased. Services expanded 0.5 percent, led by financial & insurance services and healthcare & social welfare services.

On the expenditure side, private consumption declined 0.2 percent, while government consumption rose 1.3 percent. Facility investment contracted 7.4 percent, while construction investment and intellectual property investment rose 6.8 percent and 0.3 percent, respectively.

Exports declined 1.1 percent, led by oil products and automobiles, while imports declined 3.1 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

0.5 (2.8)2

Agriculture, forestry & fisheries

-1.6

-0.4

1.6

1.7

3.7

-11.0

4.7

-2.6

6.5

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

4.8

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

-0.2

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

-7.4

Construction investment

3.3

1.1

-0.8

-4.9

5.5

1.8

3.3

-2.4

6.8

Intellectual property investment

2.0

0.0

0.0

-0.1

1.7

-0.6

0.3

0.7

0.3

Exports

0.8

1.1

-1.5

0.3

0.6

-0.1

-0.3

2.1

-1.1

Imports

-1.6

0.8

-0.1

0.4

0.9

0.4

1.4

3.2

-3.1

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.

52

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

2.8

-2.4

1.9

2.7

3.0

9.6

-4.5

p: Preliminary Source: Bank of Korea

54

(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 Ⅰp

105.4

-0.3

105.1

-0.8

136.1

3.0

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 2 3p 4p

105.7 98.2 112.4 106.7

-2.2 2.3 -0.6 -2.8

103.9 97.5 114.0 107.5

-3.9 0.9 0.7 -1.9

136.9 136.6 136.1 132.2

4.3 3.6 3.0 -1.1

110.1 107.6 115.9 114.0

3.0 2.8 2.6 2.1

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

June 2016

55

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 Ⅰp

112.0

0.4

88.6

-1.6

73.2

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 2 3p 4p

111.8 111.9 112.2 112.1

0.3 0.5 0.4 0.5

89.0 81.2 95.6 89.7

-4.1 0.2 -0.7 -6.4

72.3 73.5 73.7 71.0

* Manufacturing industry p: Preliminary Source: Statistics Korea

56

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 Ⅰp

113.7

4.5

133.8

5.6

100.4

2.6

110.2

4.9

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 2 3p 4p

112.9 108.6 119.7 116.5

4.6 3.2 5.7 4.2

125.3 125.0 151.1 139.4

-2.3 6.6 12.3 7.9

101.6 93.1 106.4 109.1

4.1 1.7 1.7 1.9

112.0 107.8 110.9 109.0

8.8 2.2 3.7 3.1

p: Preliminary Source: Statistics Korea

June 2016

57

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 Ⅰp

104.5

3.1

101.8

1.8

105.7

3.6

-

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 2 3p 4p 5

106.2 95.0 112.4 106.4 -

1.6 1.0 6.5 1.2 -

96.8 92.8 115.9 107.3 -

-4.5 0.0 9.6 0.2 -

110.3 95.9 110.9 106.0 -

4.3 1.3 5.2 1.7 -

100 98 100 101 99

p: Preliminary Source: Statistics Korea

58

Consumer sentiment index

Statistical Appendices

6. Machinery orders received and facility investment index Period 2013 2014 2015

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

2016Ⅰp

6,490

0.9

635

56.9

5,855

-2.8

100.0

-7.1

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 2 3p 4p p: Preliminary Source: Statistics Korea

1,758 2,275 2,457 1,987

-24.0 22.7 8.5 -28.2

69 255 312 189

-40.7 80.7 110.8 49.3

1,689 2,020 2,146 1,797

-23.1 18.0 1.4 -31.4

96.9 90.7 112.4 110.4

-6.0 -7.9 -7.4 -2.7

June 2016

59

7. Value of construction completed and domestic construction orders received

(current value, billion won)

Period

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

Type of order Public Private 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

Ⅰp 2016Ⅰ

24,140

13.3

6,705

1.7

16,164

15.7

29,052

14.3

7,836

70.6

20,508

-0.1

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 2,458 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

7,359 2016 1 7,273 2 9,508 3p 8,959 4p p: Preliminary Source: Statistics Korea

7.8 8.7 21.9 16.2

2,042 1,970 2,694 2,374

0.2 -5.9 9.4 -3.7

5,003 4,948 6,212 6,130

9.5 13.0 23.7 24.1

7,225 10,014 11,812 10,683

-3.9 84.3 -5.3 18.0

2,691 2,347 2,798 1,314

104.1 106.8 30.7 -49.2

4,260 7,586 8,661 9,001

-30.0 79.8 -15.4 40.3

60

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

129.7 130.1 130.5 131.0 -

100.5 100.4 100.4 100.4 -

92.1 87.0 94.2 97.3 97.1 -

93.2 86.3 98.3 95.7 102.3 94.8

2016 1 135.4 102.0 2p 135.9 101.8 3p 136.7 102.0 4p 137.7 102.2 5 6 Sources: Statistics Korea, Federation of Korean Industries

June 2016

61

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

6,820.9 7,169.7 10,085.5 3,371.7

7,899.7 7,539.0 12,445.5 9,559.3

37,227.8 36,231.7 44,542.0 40,313.0

29,328.1 28,692.7 32,096.5 30,753.7

-1,934.2 -1,242.1 -996.3 -1,617.9

1,253.4 852.1 -856.2 -4,066.2

-398.0 20.7 -507.5 -503.5

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

2016p 1 2 3 4 p: Preliminary Source: Bank of Korea

62

(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

2015p 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

28,218.0

5,070.3

16,719.1

2,756.8

4,958.1

-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 6,478.9 -71.5 4,650.7 1,214.5 302.9 2 9,503.0 1,554.4 6,199.9 756.6 2,557.8 3 12,236.1 3,587.4 5,868.5 785.7 2,097.4 4 167.1 -143.4 3,360.8 -1,033.1 -3,333.8 * Positive figures represent net outflows, and negative figures represent net inflows. p: Preliminary Source: Bank of Korea

382.3 -1,565.7 -102.9 1,316.6

-6.1 -2.3 -3.2 -5.0

June 2016

63

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

106.8 107.8 107.1 106.6 106.1 106.0 105.9 106.3 106.1 105.5 105.2 105.5

-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 5

110.3 110.8 110.5 110.6 110.7

0.8 1.3 1.0 1.0 0.8

109.7 110.5 109.6 109.6 109.5

-1.1 -0.1 -0.6 -0.4 -1.1

110.8 111.0 111.2 111.4 111.6

2.4 2.4 2.3 2.2 2.2

112.2 112.5 112.5 112.7 112.9

1.7 1.8 1.7 1.8 1.6

98.5 98.5 98.4 98.7 98.7

-3.3 -3.4 -3.3 -3.0 -3.1

94.0 93.9 93.8 94.1 94.1

-5.7 -5.9 -5.7 -5.2 -5.2

Source: Bank of Korea

64

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 (%)

SOC & services Unemployment 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 1.8 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 5

26,433 26,734 26,955 27,228 27,455

1.3 1.3 1.4 1.0 0.9

25,445 25,418 25,800 26,153 26,450

1.4 0.9 1.2 1.0 1.0

4,566 4,541 4,525 4,503 4,514

3.3 2.4 2.8 1.1 1.1

19,955 19,885 20,028 20,263 20,483

1.3 0.9 1.0 1.3 1.5

3.7 4.9 4.3 3.9 3.7

Source: Statistics Korea

June 2016

65

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 3.3 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 2.7 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 5

1.5 1.5 1.5 1.5 1.5

1.7 1.6 1.6 1.6 1.6

2.1 2.0 2.0 1.9 1.9

1.6 1.5 1.5 1.5 1.5

1.8 1.6 1.6 1.6 1.6

1,912.06 1,916.66 1,995.85 1,994.15 1,983.40

Period

Source: Bank of Korea

66

(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 4

131,279.3 134,913.0 132,957.9 135,038.9

15.9 15.8 14.6 17.3

699,767.3 708,014.0 713,861.2 720,818.5

20.7 19.4 18.8 18.0

2,261,356.4 2,285,313.5 2,294,544.7 2,299,081.3

8.1 8.3 7.8 7.0

3,110,535.8 3,133,492.2 3,158,687.8 3,170,277.9

8.9 8.9 8.6 8.0

Source: Bank of Korea

June 2016

67

15. Exchange rates Period

100/ \

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 5

1,208.4 1,235.4 1,153.5 1,143.9 1,190.6

10.8 12.4 4.4 7.1 7.5

1,017.1 1,085.8 1,026.0 1,058.2 1,072.8

10.4 17.9 11.5 17.9 19.9

1,322.2 1,348.3 1,307.4 1,298.4 1,326.8

7.0 9.6 9.2 9.4 9.2

Source: Bank of Korea

68

(end-period)

US $/ \

Statistical Appendices

Jultagi Tightrope walking in most countries is a form of art that focuses solely on acrobatic skills. The traditional Korean form of tightrope walking, or jultagi, is unique in that it is accompanied by music and comedy. A jultagi performance is composed of a rope player, a clown and a group of musicians. The rope player carries out acrobatic moves while singing and exchanging banter with the clown, who performs on the ground with the musicians.

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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