201608

Page 1

ISSN 2287-7266

Republic of Korea

eb.kdi.re.kr

Vol.38 No.8 August 2016

CONOMIC U L L E T I N The Green Book: Current Economic Trends Policy Issue Tax Revision Bill

Economic News Briefing

S&P Raises Korea’s Sovereign Credit Rating to AA Government Pledges Support for Nine Strategic Technologies Korean FDI Up 21.6% in First Half of 2016 Korea Grows 0.7% in Q2

Statistical Appendices



02 The Green Book: Current Economic Trends Overview

03

01. External economic situation

04

02. Private consumption

08

03. Facility investment

10

04. Construction investment

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

37

12.1 Housing market

37

12.2 Land market

39

13. Composite indices of business cycle indicators

contents

41

43 43 Policy Issue Tax revision bill

49 Economic News Briefing 50

S&P raises Korea’s sovereign credit rating to AA Supplementary budget positive for Korea’s credit rating, says Moody’s Ministry of Strategy and Finance considers issuing 50-year KTBs Government pledges support for nine strategic technologies Korean FDI up 21.6% in first half of 2016 ‘Fintech Demo-day’ held in London Korea grows 0.7% in Q2 (advanced)

53 53 Statistical Appendices

Editor-in-Chief Kim Joo-Hoon (KDI) Jung Moo-Kyung (MOSF) Editorial Board Lee Young-Joo (MOSF) Lee Jae-Yeal (KDI) Yu Seong-Im (KDI) Coordinators Kim Dae-Hyun (MOSF) Lee Ji-Youn (KDI) Editors Jeon Aram (MOSF) Kim Hanul (MOSF) Kang Ji-Eun (KDI)


The Green Book: Current Economic Trends Overview

01. External economic situation

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

The Green Book : Current Economic Trends


Overview

The Korean economy has seen domestic demand pick up as government measures helped boost consumption, while production remains weak due to export slowdown. The economy added more jobs in June than the previous month (up 261,000 → up 354,000, y-o-y) led by the service sector, due to a low base effect from a year ago when service industries were hit by the MERS outbreak. Job growth continued to decelerate in the manufacturing sector. Consumer prices rose at a slower rate in July compared with the previous month (up 0.8% → up 0.7%, y-o-y), as the effect of public service fee increases diminished. Mining and manufacturing production fell 0.2 percent month-on-month in June as the production of automobiles, steel and vessels declined due to a high base effect and sluggish exports. Service output continued to grow in June, up 1.0 percent month-on-month, backed by an increase in automobile sales and stock transactions. Retail sales rose 1.0 percent in June led by durable goods sales, as automobile sales jumped before the sunset of the individual consumption tax cut on cars, scheduled at the end of June. Facility investment continued to increase in June, up 4.5 percent month-on-month, led by transportation equipment. Construction completed rose 3.1 percent from the previous month, helped by the public sector which has been boosted by frontloaded budget spending. In June, the cyclical indicator of the coincident composite index rose 0.2 points, backed by strong production and retail sales indices, and the cyclical indicator of the leading composite index fell 0.1 points, due to a decrease in construction orders received. Exports declined at a faster pace in July, down 10.2 percent year-on-year, partly due to fewer days worked and suspended delivery of vessels. Stock prices rose and Korea Treasury bond yields declined in July in line with increased expectations for expansionary monetary policies in major economies following the Brexit referendum. The Korean won strengthened against both the US dollar and the Japanese yen as global risk aversion eased. Housing prices increased at the same rate as the previous month in July (up 0.04%), while Jeonse (lumpsum deposits with no monthly payments) prices rose at a slower pace (up 0.11% → up 0.08%). Recovery in domestic demand could be limited due to government measures to stimulate the economy becoming less effective, for example, with the expiration of the individual consumption tax cut on cars, while external and internal risks to the economy from Brexit and industrial restructuring remain. The government will closely monitor domestic and global economic developments as well as examine the possible impact of internal and external uncertainties on domestic financial markets.

August 2016

03


The government will actively respond to any risks to the economy and employment by implementing expansionary fiscal policies, including the supplementary budget, as well as other policies aimed at increasing consumption and investment.

1. External economic situation

Major economies including the US and eurozone have yet to build up recovery momentum and emerging economies including China continue to struggle, while risks to the global economy, such as a Fed rate hike and Brexit, remain.

US

The US economy grew 1.2 percent (annualized, q-o-q) in the second quarter of 2016, falling short of the forecast for 2.4 percent growth, due to declining investment and falling inventories, even though consumption and employment improved. Industrial production rose 0.6 percent month-on-month in June due to an increase in the production of durable goods (up 3.4%), including automotive products (up 6.3%), while the ISM manufacturing index for July fell. ISM Manufacturing Index (base=50) 48.2 (Jan 2016) → 49.5 (Feb) → 51.8 (Mar) → 50.8 (Apr) → 51.3 (May) → 53.2 (Jun) → 52.6 (Jul)

Retail sales rose 0.6 percent month-on-month in June, increasing for the third consecutive month, however, consumer confidence fell in July due to concerns over the impact of Brexit. University of Michigan Consumer Sentiment Index (1966=100) 92.0 (Jan 2016) → 91.7 (Feb) → 91.0 (Mar) → 89.0 (Apr) → 94.7 (May) → 93.5 (Jun) → 90.0 (Jul) Conference Board Consumer Confidence Index (1985=100) 97.8 (Jan 2016) → 94.0 (Feb) → 96.1 (Mar) → 94.7 (Apr) → 92.4 (May) → 98.0 (Jun) → 97.3 (Jul)

Existing home sales grew 1.1 percent month-on-month to an annualized pace of 5,570,000 in June, reaching the highest in nine years for the second consecutive month, while home prices and new home sales also increased.

04

The Green Book : Current Economic Trends


Case-Shiller Home Price Index (y-o-y, %) 5.7 (Nov 2015) → 5.6 (Dec) → 5.7 (Jan 2016) → 5.4 (Feb) → 5.5 (Mar) → 5.4 (Apr) → 5.2 (May) New home sales (m-o-m, %) 6.3 (Nov 2015) → 5.9 (Dec) → -2.2 (Jan 2016) → -0.2 (Feb) → 2.3 (Mar) → 6.5 (Apr) → 0.0 (May) → 3.5 (Jun)

Nonfarm payrolls added more than 250,000 jobs for the second straight month in July (255,000 jobs), backed by the strong service sector, while the unemployment rate was 4.9 percent, staying at a similar level to the previous month. Nonfarm payroll increase (m-o-m, thousands) 168 (Jan 2016) → 233 (Feb) → 186 (Mar) → 144 (Apr) → 24 (May) → 292 (Jun) → 255 (Jul)

US GDP growth and industrial production 10

Sources: US Department of Commerce, Federal Reserve Board

(%)

8 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

2015.Q1

GDP (q-o-q, annualized rate)

2016.Q1

Industrial production (q-o-q)

(Percentage change from previous period)

2013

Real GDP1

2014 Annual Annual Q4 Annual Q1 1.7 2.4 2.3 2.6 2.0

2015 Q2 2.6

Q3 2.0

Q4 0.9

Q1 0.8

Q2 1.2

2016 Apr May -

Jun -

- Personal consumption expenditure

1.5

2.9

4.6

3.2

2.4

2.9

2.7

2.3

1.6

4.2

-

-

-

- Nonresidential fixed investment

3.5

6.0

-1.1

2.1

1.3

1.6

3.9

-3.3

-3.4

-2.2

-

-

-

11.9

3.5

11.4

11.7

13.3

14.9 12.6

11.5

7.8

-6.1

-

-

-

Industrial production

1.9

2.9

0.9

0.3

-0.5

-0.7

0.4

-0.8

-0.5

-0.3

0.5

-0.3

0.6

Retail sales

3.8

4.1

0.6

2.3

-0.7

1.5

0.9

0.3

-0.1

1.4

1.2

0.2

0.6

- Residential fixed investment

Existing home sales

9.1

-3.1

1.8

6.3

-0.7

4.6

2.3

-3.8

1.9

3.8

1.3

1.5

1.1

Unemployment rate²

7.4

6.2

5.7

5.3

5.5

5.4

5.2

5.0

4.9

4.9

5.0

4.7

4.9

Consumer prices (y-o-y)

1.5

1.6

1.2

0.1

-0.1

0.0

0.1

0.4

1.1

1.1

1.1

1.0

1.0

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

August 2016

05


China

China’s economy grew 6.7 percent year-on-year in the second quarter, beating market expectations for 6.6 percent growth, as strong service sector growth and public sector investment offset the weak manufacturing sector. GDP growth by sector (y-o-y, %) 3.1 (primary sector), 6.3 (secondary sector), 7.5 (tertiary sector)

Consumption has contributed more to GDP growth as China’s economy undergoes structural changes. Contribution to H1 GDP growth (%p, 2015 → 2016) 4.2 → 4.9 (consumption), 2.9 → 2.5 (investment), -0.7 → -0.7 (net exports)

China’s GDP growth and fixed asset investment 16

Source: China National Bureau of Statistics 60

(%)

(%)

14

50

12

40

10

30

8

20

6

10

4

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

0

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

(Percentage change from same period in previous year)

2013

2014

2015 Q2 7.0

Q3 6.9

Q4 6.8

Q1 6.7

Q2 6.7

2016 Apr -

May -

Jun -

Real GDP

7.7

7.3

6.9

Q1 7.0

Industrial production

9.7

8.3

6.1

6.4

6.3

5.9

5.9

5.8

6.1

6.0

6.0

6.2

Fixed asset investment (accumulated, nominal)

19.6

15.7

10.0

13.5

11.4

10.3

10.0

10.7

9.0

10.5

9.6

9.0

Retail sales (nominal)

13.1

12.0

10.7

10.6

10.2

10.7

11.1

10.3

10.2

10.1

10.0

10.6

8.6

5.5

-2.5

4.7

-2.1

-5.9

-5.0

-9.6

-3.6

-1.8

-4.1

-4.8

Annual Annual Annual

Exports Consumer prices

2.6

2.0

1.4

1.2

1.4

1.7

1.5

2.1

2.1

2.3

2.0

1.9

Producer prices1

-1.9

-1.9

-5.2

-4.6

-4.8

-5.7

-5.9

-4.8

-2.9

-3.4

-2.8

-2.6

1

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

06

The Green Book : Current Economic Trends


Japan

Industrial production improved in June due to a low base effect, while weak exports and consumption as well as deflationary concerns stemming from falling prices remain as risks. The Japanese government unveiled on August 2 a 28.1 trillion yen stimulus package aimed at expanding infrastructure investment and dealing with the fallout from Brexit, while the Bank of Japan decided on July 29 to expand its quantitative easing program by increasing annual ETF purchases to 6.0 trillion yen from 3.3 trillion yen.

Japan’s GDP growth and industrial production 4

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

(%)

15 10

2

5 0

0

-5 -2

-10 -15

-4 -20 -6

-25 2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

GDP (q-o-q, left)

2015.Q1

2016.Q1

Industrial production (q-o-q, right)

(Percentage change from previous period)

2013

2014

2015 Q2 -0.4

Q3 0.4

Q4 -0.4

Q1 0.5

Q2 -

2016 Apr -

May -

Jun -

0.1

0.5

-2.6

1.9

Real GDP

1.4

0.0

0.6

Q1 1.3

Industrial production

-0.6

2.1

-1.2

1.1

-1.3

-1.0

0.0

-1.0

Retail sales

1.2

1.7

-0.4

-1.7

0.2

1.0

-0.2

-2.3

0.1

-0.1

-0.1

0.2

Exports (y-o-y)

9.5

4.8

3.4

9.0

6.7

3.7

-4.6

-7.9

-9.5

-10.1

-11.3

-7.4

Consumer prices (y-o-y)

0.4

2.7

0.8

2.3

0.5

0.1

0.3

0.1

-0.4

-0.3

-0.4

-0.4

Annual Annual Annual

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

Eurozone

The eurozone economy slowed in the second quarter, growing 0.3 percent compared with the previous quarter, due to deteriorating global conditions, while the impact of Brexit could dampen growth further in the second half of the year. Manufacturing PMI (base=50) 53.2 (Dec 2015) → 52.3 (Jan 2016) → 51.2 (Feb) → 51.6 (Mar) → 51.7 (Apr) → 51.5 (May) → 52.8 (Jun) → 52.0 (Jul)

August 2016

07


Eurozone’s GDP growth and industrial production

Source: Eurostat

3

10 (%)

(%) 8

2

6 4

1

2 0

0 -2

-1

-4 -6

-2

-8 -3

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

GDP (q-o-q, left)

-10 2016.Q1

2015.Q1

Industrial production (q-o-q, right)

(Percentage change from previous period)

2013

2014 1.7

Q1 0.6

2015 Q2 0.4

Q3 0.3

Q4 0.4

Q1 0.6

Q2 0.3

2016 Apr -

Real GDP

-0.3

0.9

Q4 0.4

Industrial production

-0.7

0.9

0.6

1.5

0.7

0.1

0.4

0.1

0.8

-

1.1

-

-

Retail sales

-0.6

1.4

1.0

2.7

0.9

0.7

0.6

0.2

0.6

0.3

0.2

0.4

0.0

Exports (y-o-y)

1.0

2.2

4.4

5.4

5.5

8.2

4.4

3.6

-1.1

-

-0.9

1.9

-

Consumer prices (y-o-y)

1.4

0.4

0.3

0.0

-0.3

0.2

0.1

0.2

0.0

-0.1

-0.2

-0.1

0.1

Annual Annual

Annual

May -

Jun -

Sources: Eurostat, Bloomberg

2. Private consumption

Private consumption (preliminary GDP) in the second quarter of 2016 rose 0.9 percent compared to the previous quarter and rose 3.2 percent compared to a year ago.

(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

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

08

The Green Book : Current Economic Trends

-0.1

Q3¹ 1.1

Q4¹ 1.4

2016 Q1¹ Q2¹ -0.2 0.9

1.7

2.2

3.3

2.2

Q2¹

3.2


Private consumption

Source: Bank of Korea (national accounts)

12 (%) 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)

Retail sales in June rose 1.0 percent month-on-month, as sales of durable goods (up 3.0%), such as automobiles, and sales of nondurable goods (up 0.8%), such as food, increased, while sales of semidurable goods fell (down 1.5%). Year-on-year, the index rose 8.9 percent. (Percentage change from previous period)

2014 Annual Annual Q3 1.4

Q1 1.0

2015 Q2 0.7

2013

Retail sales

Q4 0.3

Annual

-

Q3 1.3

Q4 3.1

2016 May¹ 0.8

Q2¹ 2.7

Jun¹ 1.0

(y-o-y)

0.7

2.0

2.0

2.4

3.9

2.2

3.4

3.6

6.1

6.0

5.3

8.9

- Durable goods2

0.3

5.1

3.2

0.4

10.2

4.3

0.8

2.0

8.2

7.4

0.9

3.0

· Automobiles

2.1

16.4

5.1

0.3

21.3

7.0

5.4

3.5

11.2

15.3

6.0

10.1

- Semi-durable goods3

2.1

-0.8

3.9

-2.3

-1.2

-2.0

-1.0

1.8

2.8

2.2

1.3

-1.5

- Nondurable goods

0.4

1.6

-0.8

1.3

2.5

0.6

1.2

0.7

0.3

0.4

0.7

0.8

4

1. Preliminary 2. Durable goods: Automobiles, electronic appliances, furniture, telecommunications devices, etc. 3. Semi-durable goods: Clothing, footwear, etc. 4. Nondurable goods: Food, medicine, cosmetics, fuel, tobacco, etc. Source: Statistics Korea

Retail sales in July are forecast to slow, despite sales at department stores and large discount stores continuing to increase, due to declining domestic sales of cars. (Percentage change from same preriod in previous year)

2015 Dec

Jan

Feb

Mar

2016 Apr

May

Jun

Credit card use

8.5

15.8

14.2

13.9

7.2

22.7

12.9

9.1

Department store sales

-3.8

9.6

-0.1

4.8

8.0

1.5

13.5

10.5

Large discount store sales

-2.1

13.4

-5.4

-1.4

0.2

-5.5

2.9

5.8

Domestic sales of gasoline

4.3

8.5

-1.1

-0.7

1.6

7.2

4.6

2.3

17.7

-4.5

9.0

18.9

5.8

20.8

24.1

-10.5

Domestic sales of cars

Jul

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

August 2016

09


Retail sales

Source: Statistics Korea (industrial activity trends)

20 (%) 15

10

5

0

-5

-10

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

Retail sales (m-o-m)

Retail sales (y-o-y)

Retail sales by type 50

2016.1

Source: Statistics Korea (industrial activity trends)

(y-o-y, %)

40 30 20 10 0 -10 -20 -30

2006.1

2007.1

Durable goods

2008.1

2009.1

2010.1

2011.1

Semi-durable goods

3. Facility investment

2012.1

2013.1

2014.1

2015.1

2016.1

Nondurable goods

Facility investment (advanced estimates of GDP) rose 2.9 percent quarter-on-quarter but fell 2.6 percent year-on-year in the second quarter of 2016.

10

The Green Book : Current Economic Trends


(Percentage change from previous period)

2014 Facility investment² (y-o-y)

Annual

Q4

Annual¹

Q1¹

2015 Q2¹

2016

6.0

3.5

5.3

0.5

0.8

1.8

0.5

-7.4

2.9

-

4.4

-

5.8

5.1

6.7

3.9

-4.5

-2.6

Q3¹

Q4¹

Q1¹

Q2¹

- Machinery

5.0

5.2

2.1

0.1

-2.9

0.8

-3.0

-6.4

-

- Transportation equipment

8.3

-0.4

12.5

1.5

9.3

3.7

7.4

-9.4

-

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

Facility investment

Source: Bank of Korea (national accounts)

40 (%) 30

20

10

0

-10

-20

-30 2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

Facility investment (q-o-q)

2015.Q1

2016.Q1

Facility investment (y-o-y)

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

Transportation equipment

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2016.Q1

2015.Q1

Machinery

August 2016

11


The facility investment index in June rose 4.5 percent month-on-month as both machinery and transportation equipment investment rose. The index increased 2.0 percent year-on-year. (Percentage change from previous period)

2015

2014 Facility investment index

Annual

Annual

5.2

6.3

Q1 -0.2

-2.2

Q3 5.2

Q2

Q4 -1.2

Q1 -8.7

2016 May1 6.2 0.1

Q21

Jun1 4.5

(y-o-y)

-

-

9.2

4.5

10.2

1.6

-7.1

0.7

3.0

2.0

- Machinery

3.9

2.9

-0.1

-6.0

0.7

-2.6

-5.3

-0.5

-4.8

2.2

- Transportation equipment

8.8

14.9

-1.0

8.8

16.5

1.0

-14.3

20.5

8.1

10.4

1. Preliminary Source: Statistics Korea

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

60

(y-o-y, %)

(trillion won) 9

40 8

7

20

6 0

5 4

-20 3

-40

2 2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

Machinery orders (left)

2015.Q1

2016.Q1

Machinery imports (right)

(Percentage change from same period in previous year)

2015

2014 Annual Annual

Domestic machinery orders (q-o-q, m-o-m)

14.8

-3.6

Q1 -3.0

14.9

Q3 -27.1

Q2

Q4 6.9

Q1 0.9

2016 Q21 May1 -3.1 1.9

Jun1 24.3

-

-

-0.1

8.6

-10.0

9.2

-6.3

4.4

7.4

18.7

- Public

94.2

-61.7

-66.9

61.7

-85.3

-19.8

56.9

15.1

-14.2

23.6

- Private

4.8

10.0

11.4

12.5

4.7

10.8

-2.9

-4.5

3.6

24.3

Machinery imports

5.8

0.3

8.5

-1.1

2.3

-6.4

-13.0

-6.7

1.7

2.0

Average manufacturing operation ratio

76.1

74.3

74.3

74.3

74.9

73.6

73.2

72.1

73.0

72.1

Facility investment adjustment pressure²

-1.4

-1.8

-2.8

-2.8

-1.2

-0.6

-0.7

0.7

4.4

0.8

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

12

The Green Book : Current Economic Trends


Facility investment outlooks are mixed as domestic machinery orders increased further, while the average manufacturing operation ratio remains low and automobile sales fell. Domestic automobile sales growth (y-o-y, %) -4.5 (Jan 2016) → 9.0 (Feb) → 18.9 (Mar) → 5.8 (Apr) → 20.8 (May) → 24.1 (Jun) → -10.5 (Jul)

4. Construction investment

Construction investment (advanced estimates of GDP) in the second quarter of 2016 rose 2.9 percent quarter-on-quarter and 10.6 percent year-on-year.

Construction investment

Source: Bank of Korea (national accounts)

20 (%) 15 10 5 0 -5 -10 2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

Construction investment (q-o-q)

2015.Q1

2016.Q1

Construction investment (y-o-y)

(Percentage change from previous period)

2014 3.9

Q1¹ 5.5

2015 Q2¹ 1.8

Q3¹ 3.3

Q4¹ -2.4

Q1¹ 6.8

2016 Q2¹ 2.9

-

0.9

1.0

5.6

7.5

9.6

10.6

0.3

3.6

-

-8.0

14.0

-

Annual¹

1.1

Q4 1.4

-

-1.5

- Building construction

6.3

-4.9

6.3

2.5

4.9

5.6

- Civil engineering works

-7.3

-4.7

-7.3

11.4

-3.8

-1.4

Annual

Construction investment² (y-o-y)

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

The value of construction completed (constant) in June rose 3.1 percent month-on-month as both civil engineering works and building construction increased. The index rose 18.5 percent year-on-year.

August 2016

13


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

2015.Q1

Residential buildings

Building construction

2016.Q1

Civil engineering works

(Percentage change from previous period)

2.3

Q1 4.1

2015 Q2 -2.1

Q3 6.4

Q4 0.0

Q1 9.4

Q21 1.6

2016 May1 4.2

Jun1 3.1

-

-2.0

-3.9

5.9

8.0

14.8

18.3

20.5

18.5

7.8

6.0

4.4

-0.7

9.5

2.6

9.0

2.1

3.6

3.6

-12.3

-3.8

3.7

-4.4

0.9

-5.0

10.2

0.5

5.4

2.0

2014 Construction completed (constant) (y-o-y) - Building construction - Civil engineering works

Annual

Annual

-0.7 -

1. Preliminary Source: Statistics Korea

Construction investment is expected to increase given an increase in apartment presales, while a fall in new construction orders may have a negative impact. Apartment presales (thousands, Real Estate 114) 58 (Dec 2015) → 8 (Jan 2016) → 9 (Feb) → 39 (Mar) → 34 (Apr) → 53 (May) → 41 (Jun) → 65 (Jul) Domestic shipments of cement (million tons) 4.61 (Dec 2015) → 3.01 (Jan 2016) → 2.89 (Feb) → 5.50 (Mar) → 5.00 (Apr) → 5.10 (May) → 4.85 (Jun) (Percentage change from same period in previous year)

2015

2014 Annual Annual

Construction orders (current value)

Q1

Q2

Q3

Q4

Q1

Q21

2016 May1

Jun1

16.3

48.2

57.4

49.1

50.4

40.1

13.8

-8.5

-22.7

-13.9

-

-

47.4

11.6

21.3

-26.5

17.7

-11.7

-21.3

-11.6

24.5

50.1

89.5

49.3

42.5

37.8

13.1

-0.5

-28.3

6.7

- Civil engineering works

-4.4

42.9

1.7

48.3

83.6

45.9

16.0

-32.6

12.5

-51.5

Building permits²

11.2

34.3

11.0

25.1

57.0

40.4

19.7

5.3

9.9

7.6

(q-o-q, m-o-m) - Building construction

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

14

The Green Book : Current Economic Trends


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

2015.1

Construction orders

2016.1

Building permit area

5. Exports and imports

Exports (preliminary) declined 10.2 percent year-on-year to US $41.05 billion in July. Exports fell at a faster pace in July compared with the previous month partly due to fewer days worked (down 1.5 days, y-o-y). By region, shipments to the US, Latin America and Middle East declined at a faster pace, and by item, shipments of vessels, automobiles and petrochemicals fell rapidly. Export growth by region in July (y-o-y, %) -2.1 (Japan), -3.5 (ASEAN countries), -4.3 (EU), -9.3 (China), -14.3 (US), -16.3 (Latin America), -19.3 (Middle East) Export growth by item in July (y-o-y, %) -2.6 (semiconductors), -4.0 (mobile phones), -9.4 (oil products), -12.3 (petrochemicals), -14.6 (automobiles), -42.5 (vessels)

By volume, exports fell at a slower rate of 1.6 percent in July compared to the 2.9 percent of the previous month. Average daily exports, an indicator adjusted to days worked, decreased month-on-month to US $1.75 billion. Average daily exports (US $ billion) 1.62 (Jan 2016) → 1.80 (Feb) → 1.79 (Mar) → 1.82 (Apr) → 1.85 (May) → 1.97 (Jun) → 1.75 (Jul)

August 2016

15


(US $ billion)

2014 Exports

2015

2016

Annual

Annual

Q1

Q2

Q3

Q4

Jul

572.66

526.76

133.40

135.10

128.24

130.02

2.3

-8.0

-3.0

-7.3

-9.5

2.11

1.93

2.01

1.99

1.87

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

45.70

Q1 115.60

Q2 126.20

Jun 45.29

Jul1 41.05

-12.0

-5.2

-13.3

-6.6

-2.7

-10.2

1.86

1.83

1.74

1.88

1.97

1.75

1. Preliminary Source: Korea Customs Service

Exports by item

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

160 140

(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

2013.1

Semiconductors

2014.1

2015.1

Automobiles

2016.1

Steel

Imports (preliminary) in July fell 14.0 percent year-on-year to US $33.25 billion. Imports fell at a faster pace compared with the previous month (down 7.7% → down 14.0%) as imports of commodities and capital goods decreased at a faster rate, and consumer goods imports also turned negative. Import growth by category (y-o-y, %, Jun → Jul) -14.1 → -18.4 (commodities), -3.9 → -9.6 (capital goods), 4.8 → -8.6 (consumer goods)

(US $ billion)

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

2015

2016

Annual

Annual

Q1

Q2

Q3

Q4

Jul

Q1

Q2

Jun

Jul1

525.51

436.50

111.77

110.50

107.96

106.27

38.65

93.64

98.86

33.80

33.25

1.9

-16.9

-15.6

-15.6

-18.7

-17.8

-15.7

-16.2

-10.5

-7.7

-14.0

1.94

1.60

1.68

1.62

1.58

1.52

1.55

1.41

1.47

1.47

1.41

1. Preliminary Source: Korea Customs Service

16

The Green Book : Current Economic Trends


Imports by category

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

100 (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 $7.79 billion in July, staying in the black for the 54th consecutive month. Surpluses decreased compared with the previous month.

(US $ billion)

2014 Trade balance

2015

2016

Annual

Annual

Q1

Q2

Q3

Q4

Jul

Q1

Q2

Jun

Jul1

47.15

90.26

21.63

24.61

20.28

23.74

7.05

21.97

27.33

11.50

7.79

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

2016.1

Exports

Imports

August 2016

17


6. Mining and manufacturing production

Mining and manufacturing production fell 0.2 percent month-on-month in June, as weak automobiles and primary metals offset increases in semiconductors and communications equipment. Compared to the same period of the previous year, the index increased 0.8 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 Q2 -0.5

Jun 1.9

Q1 -0.6

Q2ยน 1.0

2016 Apr -1.0

Mayยน 2.7

-0.6

-1.3

1.6

-0.2

1.0

-2.5

4.7

0.8

-

-0.5

1.9

-0.7

1.1

-1.0

2.9

-0.2

(y-o-y)

-0.6

-1.3

1.6

-0.4

1.1

-2.5

4.8

1.1

Shipment

-0.2

-0.4

1.0

-1.8

1.8

-1.5

1.3

0.2

- Domestic consumption

0.4

0.5

0.7

-0.9

0.8

-2.4

0.8

-0.4

- Exports

-1.0

-1.5

1.7

-3.1

3.2

0.0

2.0

0.8

Annual

(q-o-q, m-o-m) Mining and manufacturing2 (y-o-y) Production (q-o-q, m-o-m)

Manufacturing

Inventory

Junยน -0.2

2.9

2.3

2.4

3.9

-2.1

-2.9

0.2

-0.1

Average operation ratio (%)

74.3

74.3

75.0

73.2

72.1

71.3

73.0

72.1

Production capacity (y-o-y)

1.2

1.5

1.5

0.4

0.4

0.5

0.4

0.3

3

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

3. End-period

Compared to the previous month, production of semiconductors (up 11.1%), communications equipment (up 4.7%) and furniture (up 6.2%) rose, while automobiles (down 2.5%), primary metals (down 3.0%) and other transportation equipment (down 6.1%) fell. Compared to a year ago, production of semiconductors (up 45.5%), chemical products (up 4.6%) and pharmaceutical products (up 10.6%) rose, while electronic parts (down 10.2%), mechanical equipment (down 8.6%) and automobiles (down 4.4%) declined.

18

The Green Book : Current Economic Trends


The manufacturing inventory-shipment ratio fell 0.3 percentage points month-on-month to 122.2 percent as inventories fell 0.1 percent and shipments increased 0.2 percent. Inventories of semiconductors (up 7.7%), refined petroleum (up 7.0%) and food (up 4.0%) rose, while electronic parts (down 13.1%), mechanical equipment (down 3.9%) and automobiles (down 2.8%) declined. Shipments of semiconductors (up 10.5%), chemical products (up 1.1%) and mechanical equipment (up 1.3%) rose, while refined petroleum (down 5.0%), primary metals (down 2.5%) and other transportation equipment (down 6.4%) 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

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

Shipment growth

2016.1

Inventory growth

The average operation ratio of the manufacturing sector fell 0.9 percentage points month-on-month to 72.1 percent.

Average manufacturing operation ratio

Source: Statistics Korea (industrial activity trends)

100 (%) 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

August 2016

19


Mining and manufacturing for July may decrease due to increased external uncertainties, in particular those following the Brexit referendum, as well as strikes in the auto industry.

7. Service sector activity

Service output in June increased 1.0 percent month-on-month and 5.4 percent year-on-year.

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

Service sector activity (m-o-m)

2014.1

2015.1

2016.1

Service sector activity (y-o-y)

(Percentage change from previous period)

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

2013 1.5 0.1 1.0 0.5 2.2 0.5 2.5 3.3 2.1 0.8 5.2 -0.7 6.1 -0.4

1. Preliminary Source: Statistics Korea

20

2014

Annual Annual Q4

The Green Book : Current Economic Trends

2.3 0.4 1.7 1.5 2.0 5.2 6.2 2.3 2.5 1.3 6.3 -1.0 -0.5 1.0

0.8 -0.4 1.8 -1.7 -0.4 3.3 4.3 2.9 0.8 -0.4 2.2 -2.3 -1.9 3.6

Annual

Q1

2.8 1.7 1.4 -2.0 -0.6 9.0 8.1 -0.4 3.9 0.9 6.2 1.1 -0.5 7.2

0.5 0.7 -0.2 -0.6 -1.9 1.6 -0.8 -2.9 2.3 1.0 1.9 1.5 0.7 0.6

2016 2015 Q2 Q3 Q4 Q21 May1 Jun1 0.5 1.2 1.2 1.5 0.2 1.0 0.3 0.9 2.2 1.9 -0.9 0.6 -2.6 1.9 1.9 -0.1 1.3 0.9 -3.4 2.1 0.8 -0.7 -0.7 0.1 -0.5 3.0 1.1 1.8 -2.8 1.8 3.8 1.2 -0.4 1.5 0.8 1.3 6.4 0.9 -0.5 2.4 3.4 1.5 -0.1 1.6 0.3 1.6 1.8 -0.2 0.4 -1.0 3.4 -0.6 0.0 1.7 -0.6 0.0 1.0 0.1 -0.1 0.2 0.0 1.4 3.1 3.9 2.7 1.6 -2.5 1.0 3.2 5.6 -1.9 6.8 1.6 -0.2 -2.7 1.0 0.7 -0.3 3.6 4.6 -4.6 4.4 -0.1 3.5


Month-on-month, publishing & communications services (up 1.8%), healthcare & social welfare services (up 1.6%), financial & insurance services (up 1.3%), wholesale & retail (up 0.6%) and hotels & restaurants (up 0.1%) increased, while scientific & technical services (down 0.2%) and membership organizations & personal services (down 0.3%) decreased.

Wholesale & retail 15

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)

2016.1

Wholesale & retail (y-o-y)

June 2016 service output by business 16

2015.1

Source: Statistics Korea (industrial activity trends)

(y-o-y, %) Health & social welfare services

12 Transportation services 8

Sewerage & waste management

Publishing & communications services

Total index

Business services

4 Real estate & renting 0

Wholesale & retail

Hotels & restaurants

Financial & insurance services

Professional, scientific & technical services

Education services

Membership organizations & personal services Entertainment, cultural & sports services

-4

The service output in July is expected to be affected by decreases in domestic sales of cars and average daily stock transactions. Average daily stock transactions (trillion won) 8.1 (Sep 2015) → 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) → 9.1 (Jun) → 8.3 (Jul)

August 2016

21


8. Employment

The number of workers on payroll in June increased by 354,000 from a year earlier to 26,560,000, and the employment rate rose 0.5 percentage points to 66.5 percent. By industry, services continued to lead employment growth. By employment status, permanent workers continued to drive employment growth, while temporary, daily and self-employed workers fell at a slower pace.

Number of persons employed and employment growth

Source: Statistics Korea (employment trends) 27

1,000 (thousands)

(millions)

800

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 70.7 70.6 70.7

40 6.8 20

0

6.7 6.8 6.9

7.1 7.1 7.1 7.0

7.1 7.1 7.2 7.2 7.0 6.9 7.0 7.1

7.1 7.1 7.1 7.0

7.0 6.9 7.0 7.1 7.0 6.8 6.8

6.9 7.0 7.0

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 17.1 16.9 4.4 4.5 2014.1 2

5.3 6.1 6.4 6.5 3

4

5

6.2 6.2

6

7

Services

8

6.2 6.2 5.8 4.2 3.9 4.1 4.9 5.5 5.9 5.9 9

10

11

12 2015.1 2

3

Construction

5

5.8 5.7 5.7 5.6

6

7

8

9

10

5.1 4.0 11

2012 2013

3.6

3.8

4.8 5.2 5.4 5.5

12 2016.1 2

Manufacturing

3

4

5

6

Agriculture, forestry & fisheries

2014 Q4 Annual Q1

Annual Annual Annual Q3

Number of employed (millions)

4

2015 Q2 Q3

Q4

Jun

2016 May Jun

Q1

24.68 25.07 25.60 25.93 25.77 25.94 25.27 26.10 26.24 26.14 26.21 25.55 26.45 26.56

Employment rate (%)

59.4 59.5 60.2 60.9 60.4 60.6 59.0 60.7 60.9 60.5 60.9 59.7 61.0 61.2

(Seasonally adjusted)

59.4 59.5 60.2 60.3 60.3 60.3 60.5 59.9 60.3 60.5 59.9 60.5 60.0 60.2

Employment growth (y-o-y, thousands)

437

386

533

517

422

337

354

308

310

376

329

287

261

354

(Excluding agriculture, forestry & fisheries)

451

394

601

638

531

444

441

435

419

482

452

341

360

453

14

79

146

194

129

156

139

147

164

176

133

126

50

15

- Manufacturing - Construction

22

-19

42

57

72

27

72

44

11

-19

29

-7

-22

-24

- Services

416

318

424

403

336

250

222

235

234

309

282

216

325

454

- Agriculture, forestry & fisheries

-14

-8

-87 -127 -115 -106 -123

-54

-99

-98

-68 -121 -109 -107

Source: Statistics Korea

Employment by status of workers Source: Statistics Korea (employment trends) 100 4.2 4.3 4.6 4.8 5.0 5.0 5.0 5.0 4.9 4.9 4.7 4.1 4.0 4.1 4.3 4.5 4.6 4.7 4.7 4.6 4.6 4.6 4.4 3.9 3.7 3.8 4.2 4.3 4.4 4.4

80

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 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 5.4 5.7

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

40

20

0

48.3 48.2 47.8 47.3 47.1 47.2 46.8 47.0 47.1 47.2 47.3 48.5 49.0 49.0 48.5 48.1 47.8 47.9 48.0 48.5 48.6 48.7 48.7 49.7 50.4 50.6 49.9 49.4 49.1 48.9

2014.1 2

3

4

Unpaid family workers

5

6

7

8

9

10

11

12 2015.1 2

Self-employed workers

3

4

5

Daily workers

6

7

8

9

10

11

12 2016.1 2

Temporary workers

3

4

5

6

Permanent workers

August 2016

23


2012 2013

2014

Annual Annual Annual Q3

Q4 Annual Q1

2015 Q2 Q3

Q4

Jun

Q1

2016 May Jun

Employment growth (y-o-y, thousands)

437

386

533

517 422

337

354

308

310

376

329

287

261

354

- Wage workers

315

483

548

519 476

487

442

422

521

565

457

427

358

433

路 Permanent workers

436

615

443

333 355

432

355

332

505

536

346

505

470

443

路 Temporary workers

-2

-96

140

226 141

54

82

3

1

129

65

15

158

107

-120

-37

-35

-40

-20

1

4

87

15 -100

47

-93 -270 -117

121

-97

-15

-3

-54

-151

19

路 Daily workers - Nonwage workers 路 Self-employed workers

-88 -114 -211 -189 -128 -140

-98

-78

124

-67

1

7

-89

-49

-37 -136 -135

-57

-96

-70

-29

- Male

234

186

266

268 196

132

141

145

111

132

131

107

105

192

- Female

203

200

267

249 226

205

213

163

199

244

199

180

155

162

- 15 to 29

-36

-50

77

102

56

68

32

90

50

100

71

40

72

131

- 30 to 39

-31

-21

-21

-7

-29

-38

-1

-56

-60

-36

-55

-21

-20

-28

15

- 40 to 49

11

22

38

4

-14

-47

-15

1

7

-12

6

-37

-33

- 50 to 59

270

254

239

215 190

149

177

138

145

135

155

84

83

88

- 60 or more

222

181

200

192 201

172

192

150

174

169

170

179

162

197

Source: Statistics Korea

The number of unemployed persons in June was down 46,000 year-on-year to 1,004,000, and the unemployment rate fell 0.3 percentage points year-on-year to 3.6 percent. The unemployment rate fell in all age groups except in the group of those aged 15 to 29. The economically inactive population in June increased 89,000 from a year earlier to 15,860,000, while the labor force participation rate rose 0.2 percentage points year-on-year to 63.5 percent. The number of those economically inactive due to education (down 88,000) and childcare (down 83,000) decreased, while those due to rest (up 133,000) increased.

Unemployment rate 6

Source: Statistics Korea (employment trends)

(%)

5

4

3

2 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

Original data

24

The Green Book : Current Economic Trends

2012.1

2013.1

2014.1

2015.1

2016.1

Seasonally adjusted rate


2012 2013 Number of unemployed (thousands)

2015 Q2 Q3

2014

Annual Annual Annual

Q3

Q4 Annual Q1

Q4

2016 May

Q1

Jun

820

807

937

884

854

976

-35

-13

137

107

121

40

58

65

45

-9

101

64

-17

-46

-26 -9 3.2

-6 -7 3.1

49 80 3.5

37 70 3.3

59 63 3.2

24 16 3.6

25 32 4.1

42 23 3.8

31 14 3.4

-3 -6 3.1

77 24 3.9

51 13 4.3

16 -33 3.7

-15 -32 3.6

(Seasonally adjusted)

3.2

3.1

3.5

3.5

3.5

3.6

3.7

3.8

3.6

3.4

3.9

3.8

3.7

3.6

- 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

9.7

10.3

- 30 to 39

3.0

3.0

3.1

3.0

2.8

3.1

3.1

3.3

3.0

2.9

3.3

3.2

3.1

3.1

- 40 to 49

2.0

2.0

2.2

2.1

2.1

2.3

2.4

2.5

2.3

2.0

2.3

2.4

2.2

1.9

- 50 to 59

2.1

1.9

2.2

2.1

2.2

2.4

2.6

2.6

2.4

1.9

2.7

2.6

2.4

2.3

- 60 or more

2.4

1.8

2.3

1.5

1.6

2.5

4.1

2.2

2.0

2.1

2.1

4.2

2.4

2.0

Unemployment growth (y-o-y, thousands) - Male - Female Unemployment rate (%)

1,089 1,042 929

Jun

845 1,050 1,153 1,005 1,004

Source: Statistics Korea

Labor force participation rate

Source: Statistics Korea (employment trends)

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

2007.1

2008.1

2009.1

2010.1

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

Jun

Q1

2016 May Jun

16.08 16.22 15.98 15.76 16.07 16.11 16.47 15.84 15.92 16.19 15.77 16.57 15.93 15.86

Labor force participation rate (%)

61.3

61.5

62.4

63.0 62.4 62.6 61.5 63.2 63.0 62.5 63.3 61.7 63.3 63.5

(Seasonally adjusted)

61.3

61.5

62.4

62.5 62.4 62.6 62.8 62.3 62.5 62.6 62.3 62.8 62.3 62.5

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 -212 -108

-67

-88

- Old age - Rest

148 -53

54 -7

93 -92

89 -15

111 140

106 133

-41 -99 91 -65

-31 -67

128

72

150

162

128

104

169

89

8 -45

41 -91

50 -41

3 -19

-63 -29

37 -115 -108 -72 32 84

-83 76

109 141

68 154

95 151

103 123

171 136

96 102

99

161 97

Source: Statistics Korea

August 2016

25


9. Financial markets 9.1 Stock market

The KOSPI rose 2.3 percent in July from 1,970.4 points to 2,016.2 points, and the KOSDAQ was up 4.6 percent from 675.1 points to 706.2 points. Global investor sentiment improved as investors expected further monetary easing in major economies after the UK’s decision to leave the EU in June. Foreign portfolio investors were net buyers of Korean shares for 15 consecutive days from July 11 to 29, with their net buying amounting to 4.0 trillion won during the period. For the entire month, foreign investors’ net buying of Korean shares recorded 4.1 trillion won.

Stock prices 2,400 (monthly average) 2,200 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

2016.1

KOSPI

KOSDAQ

(Closing rate)

Jun 2016

KOSPI Jul 2016

Change1

Stock price index (points)

1,970.4

2,016.2

Market capitalization (trillion won)

1,250.2

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

Jun 2016

KOSDAQ Jul 2016

Change1

+45.8 (+2.3%)

675.1

706.2

+31.1 (+4.6%)

1,283.2

+33.0 (+2.6%)

208.1

215.4

+7.3 (+3.5%)

5.2

4.2

-1.0 (-19.2%)

3.9

4.1

+0.2 (+5.1%)

33.35

33.84

+0.49 (+1.5%)

9.82

9.82

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

26

The Green Book : Current Economic Trends

-

-


9.2 Exchange rate

The dollar-won exchange rate fell to 1,120.2 won at the end of July due to increased risk-taking by global investors, foreigners’ net buying of Korean shares and lower expectations for a US interest rate hike. The 100 yen-won exchange rate fell 3.8 percent in July to close the month at 1,081.6 won as the yen depreciated due to increased risk appetite among investors and amid expectations for extra stimulus in Japan. The dollar-yen exchange rate rose to 107.1 yen on July 21 amid heightened expectations for a massive new fiscal stimulus package pledged by Japanese Prime Minister Shinzo Abe on July 11, before falling back to 103.6 yen at the end of the month as investors were disappointed by the Bank of Japan’s decision to keep interest rates unchanged on July 29.

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

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

Dollar-Won

2016.1

100 Yen-Won

(Closing rate)

2010 Dec

2011 Dec

2012 Dec

2013 Dec

2014 Dec

2015 Dec

Jun

2016 Jul

Change1

Dollar-Won

1,134.8

1,151.8

1,070.6

1,055.4

1,099.3

1,172.5

1,151.8

1,120.2

+2.8

100 Yen-Won

1,393.6

1,481.2

1,238.3

1,002.3

913.0

974.1

1,122.8

1,081.6

+3.8

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

9.3 Bond market

Treasury bond yields continued to fall in July amid expectations for accommodative monetary policies in major economies including the US and Japan. On July 28, 3-year, 5-year and 10-year bond yields fell to record lows of 1.203 percent, 1.217 percent and 1.357 percent, respectively, after the US Fed’s decision to leave its benchmark interest rate unchanged. 20-year and 30-year bond yields also reached record lows of 1.433 percent and 1.456 percent, respectively, on the same day.

August 2016

27


Interest rates 9

Source: Bank of Korea

(monthly average, yearly, %)

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

May 1.48

Jun 1.23

2016 Jul 1.24

Change1 +1

CD (91 days)

2.80

3.55

2.89

2.66

2.13

1.67

1.56

1.37

1.36

-1

Treasury bonds (3 yrs)

3.38

3.34

2.82

2.86

2.10

1.66

1.50

1.25

1.22

-3

Corporate bonds (3 yrs)

4.27

4.21

3.29

3.29

2.43

2.11

1.95

1.69

1.64

-5

Treasury bonds (5 yrs)

4.08

3.46

2.97

3.23

2.28

1.81

1.58

1.30

1.24

-6

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

9.4 Money supply and money market

M2 (monthly average) in May increased 6.7 percent from a year earlier, a slower pace than the previous month, as private sector credit and foreign investment in Korean shares decreased year-on-year. (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 May 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

Mar 18.8

Apr 18.0

May 16.2

May1 724.8

6.6

8.6

7.8

7.0

6.7

2,318.5

7.0

9.7

8.6

8.0

7.7

3,196.2


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

2012.1

Reserve money

2013.1

2014.1

2015.1

2016.1

M1

Lf

Bank deposits increased 14.3 trillion won in June. Instant access deposits surged 18.3 trillion won as the government expanded fiscal expenditures in line with its plan to frontload 59.5 percent of spending in the first half of the year. Asset management company (AMC) deposits shifted to a decrease compared to the previous month. Money market funds (MMFs) decreased 9.0 trillion won as the government retrieved surplus funds, while corporations withdrew funds to improve their financial ratios at the end of the first half.

Deposits in financial institutions

Source: Bank of Korea

60 (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)

100.3

Mar 3.3

Apr -11.0

2016 May 11.4

Jun 14.3

Jun1 1,419.5

44.4

-11.1

7.4

13.9

-4.6

462.5

2010

2011

2012

2013

2014

2015

Annual

Annual

Annual

Annual

Annual

Annual

Bank deposits

36.9

58.9

37.0

41.0

115.4

AMC deposits

-16.7

-16.6

18.8

17.7

42.4

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

August 2016

29


10. Balance of payments

Korea’s current account (preliminary) in June posted a surplus of US $12.17 billion, staying in the black for 52 consecutive months. The goods account surplus increased month-on-month from US $10.74 billion to US $12.82 billion. Growth in goods exports (y-o-y, %) -2.4 (May 2016) → -7.4 (Jun) Growth in goods imports (y-o-y, %) -8.6 (May 2016) → -10.1 (Jun) Export growth by item in June (y-o-y, %, customs clearance basis) -2.7 (total), -2.3 (steel), -0.5 (semiconductors), -12.3 (automobiles), -1.4 (mobile phones), 29.6 (vessels), -27.2 (oil products) Import growth by category in June (y-o-y, %, customs clearance basis) -7.7 (total), -14.1 (commodities), -3.9 (capital goods), 4.8 (consumer goods)

Current account balance

Source: Bank of Korea (balance of payments trends)

15 (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 expanded month-on-month from US $1.14 billion to US $1.38 billion, despite an improvement in the intellectual property rights account, as deficits in the travel and transportation accounts rose. Services account balance (US $ billion, May → Jun) -0.45 → -0.49 (manufacturing), -0.16 → -0.28 (transportation), -0.25 → -0.74 (travel), 0.84 → 0.74 (construction), -0.45 → 0.04 (intellectual property rights), -0.73 → -0.75 (other businesses)

30

The Green Book : Current Economic Trends


Travel balance 4

Source: Bank of Korea (balance of payments trends)

(US $ billion)

3

2

1

-1

-2

-3 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

Travel balance

2012.1

2013.1

2014.1

2015.1

Travel revenue

2016.1

Travel payment

The primary income account surplus increased from US $0.91 billion to US $1.26 billion due to surpluses in the dividend income account. The secondary income account deficit rose from US $0.15 billion to US $0.52 billion. (US $ billion)

2015

Annual

Annual1

Current account

84.37

105.87

Q11 22.44

Q21 27.92

29.11

Q41 26.41

Jun1 11.87

Q11 24.08

2016 Q21 May1 25.90 10.36

- Goods balance

88.89

120.29

24.22

33.68

30.64

31.76

12.80

27.88

33.12

10.74

12.82

- Services balance

-3.68

-15.71

-4.39

-3.09

-3.56

-4.67

-2.20

-4.17

-4.14

-1.14

-1.38

- Primary income balance

4.15

5.90

3.83

-1.56

2.73

0.90

1.50

1.25

-1.90

0.91

1.26

- Secondary income balance

-4.98

-4.61

-1.22

-1.11

-0.70

-1.58

-0.22

-0.88

-1.18

-0.15

-0.52

2014

Q31

Jun1 12.17

1. Preliminary Source: Bank of Korea

The capital and financial account (preliminary) in June saw an outflow of US $9.60 billion. Capital & financial account balance* (US $ billion) 10.31 (Jun 2015) → 7.86 (Dec) → 6.48 (Jan 2016) → 9.50 (Feb) → 12.24 (Mar) → 0.17 (Apr) → 8.93 (May) → 9.60 (Jun) * Positive figures represent net outflows, and negative figures represent net inflows.

Net outflows of FDI increased from US $0.72 billion a month earlier to US $1.48 billion as Korean FDI increased at a faster pace (up US $1.91 billion → up US $2.82 billion) than inbound FDI (up US $1.19 billion → up US $1.35 billion). Net outflows of portfolio investment increased from US $4.36 billion to US $6.20 billion as foreign investment in Korean shares turned to a decrease (up US $0.71 billion → down US $2.22 billion),

August 2016

31


although Korean investment in foreign shares grew at a slower pace (up US $5.07 billion → up US $3.98 billion). Financial derivatives investment reversed from a net outflow of US $0.46 billion to a net inflow of US $0.37 billion. Net outflows of other investment decreased from US $3.92 billion to US $2.23 billion. The current account surplus is expected to decrease in July as net exports fell to US $7.8 billion.

Capital & financial account balance

Source: Bank of Korea (balance of payments trends)

15 (US$ billion) 10

5

0

-5

-10

-15

2006.1

2007.1

2008.1

2009.1

Direct investment

2010.1

2011.1

2012.1

Portfolio investment

2013.1

2014.1

2015.1

Financial derivatives

2016.1

Capital & financial account

11. Prices

11.1 Consumer prices

Consumer prices rose 0.7 percent year-on-year in July, a slower pace than the previous month, as prices of public services and manufactured products excluding oil products increased at a slower pace.

Consumer price inflation

(%)

2015

2016

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Year-on-Year

0.2

-0.2

0.0

-0.1

0.3

0.0

0.8

-0.3

0.1

0.0

0.0

0.1

Month-on-Month

0.7

0.6

0.9

1.0

1.3

0.8

1.3

1.0

1.0

0.8

0.8

0.7

Source: Statistics Korea

32

The Green Book : Current Economic Trends


Consumer price inflation 7

Source: Statistics Korea (consumer price trends)

(%)

6 5 4 3 2 1 0 -1 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Consumer price inflation (m-o-m)

2015.1

2016.1

Consumer price inflation (y-o-y)

Prices of public services increased at a slower pace (up 2.1% → up 1.0%) with diminishing effects of public transportation fare hikes, implemented in major cities a year earlier. Prices of manufactured products excluding oil products increased at a slower pace (up 1.0% → up 0.7%) as prices of processed food and other manufactured products fell due to special discounts offered by retail stores, although durable goods prices increased as the individual consumption tax cut expired. Oil product prices decreased at a slower pace from a year earlier (down 9.6% → down 8.9%), rising slightly month-on-month, as a decline in international oil prices is reflected with a time lag.

Consumer price inflation in major sectors Jun (y-o-y, %)

0.8

Agricultural, livestock & fishery products -0.7

Jul (y-o-y, %) - Contribution (%p)

0.7 -

0.2 0.02

Total

Manufactured Oil products products -0.4 -9.6 -0.5 -0.17

-8.9 -0.38

Public utilities -6.5

Housing rents 2.6

Public services 2.1

Personal services 2.2

-3.9 -0.18

2.5 0.24

1.0 0.15

2.1 0.66

Source: Statistics Korea

Prices 16

Source: Statistics Korea (consumer price trends)

(y-o-y, %)

12 8 4 0 -4 -8

2006.1

2007.1

Consumer price inflation

2008.1

2009.1

2010.1

2011.1

Core inflation

2012.1

2013.1

2014.1

2015.1

2016.1

Producer price inflation

August 2016

33


Core inflation continued to remain under 2.0 percent. (Percentage change from same period in previous year)

2015

2016

Oct

Nov

Dec

Consumer prices excluding oil and agricultural products

2.3

2.4

2.4

Consumer prices excluding food and energy

2.6

2.7

2.8

Jan

Feb

Mar

Apr

May

Jun

Jul

1.7

1.8

1.7

1.8

1.6

1.7

1.6

1.9

2.0

1.9

1.9

1.9

2.0

1.7

Source: Statistics Korea

Consumer prices for basic necessities stayed unchanged. Fresh food prices fell 0.4 percent year-on-year. (Percentage change from same period in previous year)

Consumer prices for basic necessities

0.1

2016 Nov 0.1

Fresh food prices

3.7

3.0

Oct

0.9

Mar 0.4

2016 Apr 0.5

May 0.1

Jun 0.1

Jul 0.0

9.7

9.7

9.6

3.5

-1.7

-0.4

Dec 0.6

Jan

Feb

0.2

6.2

4.2

Source: Statistics Korea

11.2 International oil and commodity prices

International oil prices fell in July as an increase in US oil product inventories caused concerns over a supply glut, while the dollar appreciated after the UK’s decision to leave the EU. Dubai crude (US $/barrel) 44.9 (1st week Jul) → 42.6 (2nd week) → 42.4 (3rd week) → 40.2 (4th week)

International oil prices

Source: Korea National Oil Corporation

160 (US $/B) 140 120 100 80 60 40 20 0

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

Dubai crude

34

The Green Book : Current Economic Trends

2012.1

2013.1

2014.1

2015.1

2016.1

WTI


(US $/barrel, period average)

2014

2016

2015

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Apr

May

Jun

Jul

Dubai crude

96.6

50.7

51.9

60.5

49.9

40.8

30.5

43.2

39.0

44.3

46.3

42.5

Brent crude

99.4

53.6

55.1

63.5

51.3

44.7

35.2

47.0

43.3

47.7

49.9

46.5

WTI crude

92.9

48.8

48.6

58.0

46.5

42.2

33.7

45.6

41.1

46.8

48.9

44.8

Source: Korea National Oil Corporation

Domestic gasoline prices fell in July as a decline in international oil prices was reflected with a time lag. Domestic gasoline prices (won/liter) 1,442.5 (1st week Jul) → 1,440.7 (2nd week) → 1,436.7 (3rd week) → 1,431.0 (4th week) International gasoline prices (US $/barrel) 57.1 (4th week Jun) → 54.7 (5th week) → 51.7 (1st week Jul) → 49.3 (2nd week) Dollar-won exchange rate (won) 1,159.4 (4th week Jun) → 1,168.6 (5th week) → 1,153.8 (1st week Jul) → 1,148.2 (2nd week)

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

160 (thousand won/B)

(US $/B)

140

140

120

120

100

100

80

80

60

60

40

40

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

20

2016.1

Dubai international prices (dollar, right)

(Won/liter, period average)

2014

2016

2015

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Apr

May

Jun

Jul

Gasoline prices

1,827

1,510

1,485

1,543

1,544

1,468

1,363

1,396

1,362

1,389

1,438

1,437

Diesel prices

1,638

1,300

1,313

1,344

1,309

1,233

1,121

1,168

1,121

1,158

1,225

1,228

Source: Korea National Oil Corporation

August 2016

35


International prices of wheat and corn fell due to improved weather conditions and as farmers planted more of these crops than expected in the US. On July 6, Bloomberg reported that abundant rainfall had improved conditions for growing grain in the US Midwest. International grain price increases in July (monthly average, m-o-m, %) -11.6 (wheat), -16.3 (corn), -6.9 (soybean)

International copper prices increased as Anglo American, a major mining company, cut its copper production plan for this year from 630,000 tons to 570,000 tons due to heavy snow affecting its operations in Chile. International nickel prices rose as the Philippine government suspended the operations of domestic miners, including two operations in Zambales Province, and suggested a potential ban on strip mining. Nonferrous metal price increases in July (monthly average, m-o-m, %) 5.0 (copper), 15.1 (nickel), 2.3 (aluminum), 5.1 (tin), 7.0 (lead)

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. 470

4000

430

3000

390

350

2000

310

270

1000

230

190

150

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

CRB (left)

0

2016.1

Reuters Index (right)

(Period average)

2014 Annual Annual 1

Reuters Index (Sep 18,1931=100)

Q2

Q3

Q4

Q1

Q2

Apr

May

Jun

2,523 2,328 2,368 2,394 2,287 2,269 2,115 2,250 2,161 2,222 2,361

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

36

2016

2015 Q1

The Green Book : Current Economic Trends

Jul 2,374


12. Real estate market 12.1 Housing market

Apartment prices nationwide rose 0.04 percent month-on-month in July. Apartment prices rose 0.14 percent in the Seoul metropolitan area, which includes Seoul (up 0.2%), Gyeonggi Province (up 0.1%) and Incheon (up 0.1%).

Apartment sales prices by region 3

Source: Korea Appraisal Board

(m-o-m, %)

2

1

0

-1

2009.1

7

2010.1

7

2011.1

Nationwide

7

2012.1

7

2013.1

7

2014.1

Seoul metropolitan area

2015.1

7

2016.1

7

Areas excluding Seoul metropolitan area

Apartment sales prices

(Percentage change from previous period)

2015

2010 2011 2012 2013 2014 Annual Annual Annual Annual Annual Annual

Nationwide

7

1.9

6.9

0.0

0.3

1.7

3.5

2016

Jun

Jul Annual Apr

May

Jun

Jul

0.4

0.3

0.03

0.04

0.04

0.2

0.02

Seoul metropolitan area

-1.7

0.5

-3.0

-1.1

1.5

4.4

0.5

0.4

0.4

0.04

0.09

0.15

0.14

Seoul

-1.2

0.3

-2.9

-1.4

1.1

4.6

0.5

0.4

0.7

0.08

0.15

0.22

0.23

Gangnamš

-1.0

0.3

-3.5

-1.1

1.2

5.2

0.6

0.4

0.9

0.09

0.20

0.31

0.17

Gangbuk²

-1.4

0.3

-2.3

-1.7

1.1

3.9

0.4

0.3

0.6

0.07

0.09

0.13

0.29

Areas excluding the Seoul metropolitan area

6.4

15.1

3.1

1.7

1.9

2.7

0.3

0.2

-0.1

0.00 -0.02 -0.05 -0.04

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

2. Northern Seoul

Apartment prices fell 0.04 percent in areas excluding the Seoul metropolitan area, which include the five metropolitan cities (down 0.0%) and the eight provinces (down 0.1%).

August 2016

37


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

Apartment rental prices nationwide rose 0.1 percent month-on-month in July. 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 (0.4), Yeongdeungpo (0.4), Yangcheon (0.3)

Apartment rental prices by region Source: Korea Appraisal Board 3 (m-o-m, %)

2

1

0

-1

-2 2009.1

7

2010.1

7

2001.1

7

Nationwide

2012.1

7

2013.1

7

2014.1

7

Seoul metropolitan area

2015.1

7

2016.1

7

Areas excluding Seoul metropolitan area

Apartment rental prices

(Percentage change from previous period)

2015

2010 2011 2012 2013 2014

Annual Annual Annual Annual Annual Annual Jun

2016 Jul Annual Apr

May

Jun

Jul

Nationwide

7.1

12.3

3.5

4.7

3.4

4.8

0.5

0.3

0.8

0.1

0.1

0.1

0.1

Seoul metropolitan area

6.3

11.0

2.1

6.2

4.7

7.1

0.7

0.5

1.3

0.2

0.2

0.2

0.2

Seoul

6.4

10.8

2.1

6.6

3.6

7.2

0.7

0.5

1.1

0.1

0.2

0.2

0.2

Gangnamš

7.6

11.1

2.4

6.7

3.3

7.9

0.8

0.6

1.1

0.1

0.1

0.2

0.2

Gangbuk²

5.1

10.6

1.8

6.4

3.8

6.5

0.5

0.5

1.2

0.1

0.2

0.2

0.2

Areas excluding the Seoul metropolitan area

9.2

14.5

4.6

3.3

2.2

2.8

0.3

0.2

0.3

0.1

0.0

0.0

0.0

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

2. Northern Seoul

Apartment sales transactions in June increased 3.7 percent to 92,611 transactions from 89,267 transactions a month earlier and decreased 16.1 percent year-on-year from 110,383 transactions.

38

The Green Book : Current Economic Trends


Monthly apartment transactions

Source: Ministry of Land, Infrastructure and Transport

160 (thousands) 140

120

100

80

60

40

20

0

2009.1

7

2010.1

7

2011.1

Nationwide

7

2012.1

7

2013.1

7

2014.1

7

Seoul metropolitan area

2015.1

7

2016.1

Areas excluding Seoul metropolitan area

Apartment sales transactions 2011

2012

2013

(Thousands)

2014

Annual1 Annual1 Annual1 Annual1 Annual1

Nationwide

82

61

71

84

2016

2015 99

Jun

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

110

111

94

86

106

98

88

62

59

78

86

89

93

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

12.2 Land market

Land prices nationwide rose 0.25 percent month-on-month in June. Land prices increased 0.24 percent in the Seoul metropolitan area, led by Seoul (up 0.28%) and Gyeonggi Province (up 0.22%). Land price increases in Seoul metropolitan area (m-o-m, %) 0.20 (Dec 2015) → 0.13 (Jan 2016) → 0.14 (Feb) → 0.18 (Mar) → 0.20 (Apr) → 0.21 (May) → 0.24 (Jun)

Land prices rose 0.25 percent in areas excluding the Seoul metropolitan area, led by Busan (up 0.38%), Sejong (up 0.48%) and North Chungcheong Province (up 0.19%). Land price increases in areas excluding Seoul metropolitan area (m-o-m, %) 0.34 (Dec 2015) → 0.24 (Jan 2016) → 0.22 (Feb) → 0.27 (Mar) → 0.24 (Apr) → 0.24 (May) → 0.25 (Jun)

August 2016

39


Land prices

(Percentage change from previous period)

2010

2011

2012

2013

2015

2014

2016 Apr

May

Jun

Nationwide

1.05

1.17

0.96

1.14

1.96

2.40

0.59

0.60

0.72

1.25

0.56

0.68

0.21

0.22

0.25

Seoul

0.53

0.97

0.38

1.21

2.66

2.69

0.69

0.69

0.72

1.34

0.57

0.76

0.23

0.26

0.28

Gyeonggi

1.49

1.47

1.04

0.91

1.24

1.73

0.41

0.43

0.52

0.95

0.37

0.58

0.17

0.18

0.22

Incheon

1.43

0.66

0.46

0.87

1.35

1.95

0.53

0.54

0.50

0.82

0.34

0.48

0.19

0.12

0.16

Annual Annual Annual Annual Annual Annual

Q2

Q3

Q4

Annual

Q1

Q2

Source: Korea Appraisal Board

There were 262,000 land transactions in June, up 3.6 percent from the previous month and down 6.1 percent from a year ago (279,000). Land transactions increased month-on-month in areas including Seoul (up 7.7%), Gyeonggi Province (up 9.0%), Busan (up 18.2%), Ulsan (up 13.3%) and North Chungcheong Province (up 4.2%). Vacant land transactions, which accounted for 37.0 percent of total land transactions, recorded 97,000, down 0.2 percent month-on-month and 4.7 percent compared with a year ago (103,000).

Land transactions

Source: Korea Appraisal Board

500,000

(thousand m²)

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

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Seoul metropolitan area

2015.1

Areas excluding Seoul metropolitan area

Land transactions 2010

2011

2016.1

(Land lots, thousands)

2012

2013

2014

2015

2016

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

Nationwide 187

208

170

187

220

257

279 290 241 229 263 259 274 207 191 248 245 253 262

Seoul

16

18

13

17

22

30

33

36

29

27

31

29

28

21

20

26

28

31

34

Gyeonggi

41

43

33

37

46

58

65

62

56

58

63

61

62

48

44

56

57

59

65

Incheon

8

10

8

8

10

12

13

15

13

12

14

13

12

8

8

10

12

13

13

1. Monthly average Source: Korea Land & Housing Corporation

40

The Green Book : Current Economic Trends


13. Composite indices of business cycle indicators

Industrial output in June increased 0.6 percent month-on-month and 4.8 percent year-on-year. Output rose month-on-month in construction (up 3.1%) and services (up 1.0%) but fell in mining & manufacturing (down 0.2%) and public administration (down 1.0%).

Index of all industry production

Source: Statistics Korea (industrial activity trends)

20 (%) 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)

2016

2016

Nov

Dec

Jan

Feb

Mar

Apr1

May1

Jun1

-0.5 2.0

1.5 2.8

-1.4 1.7

0.7 2.5

0.7 2.4

-0.7 0.8

1.9 4.9

0.6 4.8

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

119.1 0.1

119.4 0.3

119.3 -0.1

119.4 0.1

119.5 0.1

119.8 0.3

120.4 0.5

120.9 0.4

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

100.7 -0.2

100.6 -0.1

100.3 -0.3

100.2 -0.1

100.0 -0.2

100.0 0.0

100.2 0.2

100.4 0.2

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

123.0 0.2

123.2 0.2

123.4 0.2

123.5 0.1

123.9 0.3

124.5 0.5

124.9 0.3

125.2 0.2

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

100.9 -0.1

100.8 -0.1

100.5 -0.3

100.3 -0.2

100.3 0.0

100.4 0.1

100.4 0.0

100.3 -0.1

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

1. Preliminary

The cyclical indicator of the coincident composite index rose 0.2 points to 100.4. Five components of the coincident composite index, such as mining & manufacturing production, service output, retail sales, imports and nonfarm payroll employment, increased.

August 2016

41


Components of the coincident composite index in June (m-o-m) imports (1.3%), service output (0.8%), mining & manufacturing production (0.6%), retail sales (0.5%), nonfarm payroll employment (0.3%), domestic shipments (-0.7%), value of construction completed (-0.2%)

Cyclical indicator of coincident composite index

Source: Statistics Korea (industrial activity trends)

110 (points)

100

90 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

The cyclical indicator of the leading composite index fell 0.1 points month-on-month to 100.3. Four components of the leading composite index, including the value of construction orders received, the ratio of export to import prices, the consumer expectations index and the ratio of job openings to job seekers decreased while the inventory circulation indicator increased. Components of the leading composite index in June (m-o-m) inventory circulation indicator (1.9%p), domestic shipments of machinery (0.0%), KOSPI (0.0%), spreads between long & short term interest rates (0.0%p), value of construction orders received (-9.7%), ratio of export to import prices (-0.9%), consumer expectations index (-0.6p), ratio of job openings to job seekers (-0.3%p)

Cyclical indicator of leading composite index

Source: Statistics Korea (industrial activity trends)

110 (points)

100

90

42

2006.1

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

Tax revision bill


Tax Revision Bill 2016 Revision Focuses on Boosting Investment and Promoting Employment

Background Despite production and consumption steadily improving, investment has yet to pick up due to sluggish exports, and the job market will likely be negatively affected by the industrial restructuring and external uncertainties, such as China’s economic slowdown and Brexit. There is still increased demand for social welfare although recovering consumption has led to an increase in tax revenues1. Against this backdrop, the government drew up the 2016 tax revision bill which focuses on stimulating the economy and improving people’s livelihoods, while pursuing fair and rational taxation.

I. Stimulate the economy Support future growth engines - Restructure the new growth engine R&D tax credit to help develop the 11 new technologies2 : an up to 30 percent income or corporate tax credit, the higher the ratio of R&D investment to sales revenue, the higher the credit rates are - Introduce an up to 10 percent tax credit for facility investment if it is to commercialize new growth engine technologies - Restructure the tax support given to companies with foreign investment3 in order to promote the development of new growth industries: an up to 100 percent foreign investment tax deduction - Introduce tax incentives to promote the content industry - Increase tax support for eco-friendly cars: an up to 4 million won individual consumption tax reduction when buying hydrogen fuel cell vehicles

1. T ax revenues increased by 19 trillion won for January-May this year to 112.7 trillion won compared with the same period last year 2. Future cars, AI technology, next generation SW and security, contents, next generation electronic devices and information security, next generation broadcasting and communications, bio- and health industries, energy and environment industries, material science and engineering, robots, aerospace engineering 3. More than 10 percent for the largest foreign share holder

44

Policy Issue


Promote employment - Adopt a negative list approach in providing tax support for job creation and investment: applying to most of the businesses

Boost investment and consumption - Promote investment in ventures: • Introduce a 5 percent corporate tax credit for investment in ventures • Raise the ceiling of the stock option tax break4 from 100 million won a year to 500 million won for three years to help attract talented human resources • Introduce tax breaks for individual investors who invest in PEFs which finance ventures -P romote tourism: Expand the VAT refund amount for foreign visitors to get at the tax refunding counters in cities from up to 2 million won per store to up to 5 million won per store

Shoppers fill a duty free shop in downtown Seoul on July 3. The 2016 tax revision bill includes measures to stimulate the economy, one of which is expanding the VAT refund amount for foreign visitors to receive at tax refunding counters in cities.

Support industrial restructuring - Provide the shipping industry with tax support: Shipping companies will be allowed not to apply the tonnage tax for the 2016 and 2017 business years - Expand tax support for corporate restructuring: • Requirements for tax deferrals due to spinoff or in-kind investment will be eased that parent companies need to meet the more than 50 percent holding requirement for only three years. • Asset losses associated with M&As will be counted as expenses if they are not built-in losses. • Taxes to be deferred on capital gains from a merger between overseas subsidiaries if the taxes have been deferred in the foreign country -E xtend the special tax advantage given to high-risk and high-yield trust funds until the end of 2017, which is aimed at helping SMEs issue corporate bonds

4. P ay either income taxes (6-38%) or capital gains taxes (10%, 20%) for the income generated by exercising stock options

August 2016

45


II. Support the working class and SMEs Support the working class - Extend the income tax deduction for credit card payments until the end of 2019, while adjusting the deduction ceiling from 3 million won to 2 million won for those earning 120 million won or more a year - Increase EITC by around 10 percent5 - Raise the childbirth tax credit for having more than one child from 300,000 won to 500,000 won for a second child and 300,000 won to 700,000 won from a third child onwards - Increase the rate of the tax credit for housing rent payments by 2 percentage points to 12 percent - Introduce tax incentives to encourage corporate investment in long-term, large-scale rental housing supply: dividend income from rental housing funds or real estate investment trusts (REITs) to be made tax-exempt, while giving a capital gains tax deduction for stock transactions

A nurse cares for a newborn baby in a hospital in Seoul on July 10. The 2016 tax revision bill raises the childbirth tax credit for having more than one child from 300,000 won to 500,000 won for a second child and 300,000 won to 700,000 won from a third child onwards.

Support SMEs and the self-employed - Extend the VAT preferential deemed input tax deduction ceiling applied to the purchases of agricultural products and seafood until the end of 2018 - Introduce a 3 percent tax credit to large corporations for their investment in facilities when the facilities are rented free of charge to SMEs through foundations set up to promote cooperation between conglomerates and SMEs - Increase the tax credit for SMEs’ investment in welfare facilities from 7 percent to 10 percent - The forest industry to be made eligible for the Special SME Tax Reduction6

5. Maximum benefits (million won, 2016 → 2017): single households (0.7 → 7.7), single income households (1.70 → 1.85), dual income household (2.10 → 2.30) 6. 5-30%

46

Policy Issue


III. Fair taxation Broaden the tax base - Improve effectiveness of taxes on capital gains from the sales of shares: Those holding equities worth 1.5 billion won or more per company are subject to the capital gains tax, an increase from 2.5 billion won for a KOSPI-listed company and 2.0 billion won for a KOSDAQ-listed company -E xtend the special low income tax rate for foreign workforce until the end of 2019, while adjusting the tax rate from 17 percent to 19 percent - Allow foreign corporate branches in Korea to use a loss carryforward, which can be deducted from this year’s revenues for the amount of up to 80 percent of the revenues, the same rate applied to domestic companies - Give a 10 percent income tax deduction for credit card payments made to purchase used cars - Expand businesses that are obliged to issue cash receipts to 55 businesses, including used car dealers and art dealers

Reduce international tax evasion - Multinational enterprises to be required to submit the country-by-country report in accordance with the OECD BEPS7 project for the 2016 business year by the end of 2017 - Impose a 20 percent capital gains tax on shares owned by large shareholders regardless of the sales of the shares on the date when they become nonresidents due to such as emigration, which will be effective from January 2018 - Impose gift taxes on givers instead of recipients if the givers are residents and recipients are nonresidents, and the gifts are foreign assets - Impose taxes on technical services that are provided overseas by a foreign company if the payments are made in Korea according to tax treaties - Multinational companies will still be subject to taxes after they withdraw their advance pricing agreement applications, for as long as a year.

Taxation to increase household income - Revise the corporate tax system to promote increases in employee wages and investments rather than dividend payments - Allow businesses to change their tax methods from the one which does not include investment as taxdeductible to the one which includes investment as tax-deductible8

7. Base Erosion and Profit Shifting 8. Businesses must spend a certain amount on investments, wage increases and dividend payments, and choose between either A or B methods and must adhere to it for three years. - A: [income x 80% base rate – (investment + employment wage increase + dividends, and etc.)] x 10% tax rate - B: [income x 30% base rate – (employee wage increase + dividends, and etc.)] x 10% tax rate 9. KOFIA (Korea Financial Investment Association) Over the Counter Market

August 2016

47


IV. A taxpayer friendly system of taxation Strengthen taxpayer rights - Reduce penalty tax by 50 percent for minor offenses, such as not submitting less relevant documents - Allow to apply price adjustments when traders file the imported goods with the arm’s length price approved by domestic tax law.

Relieve administrative burden on taxpayers - Ease the preliminary return duties of the capital gains tax on share transactions from four times a year to twice a year - Continue to work on rewriting the tax code, which is aimed at increasing taxpayers’ understanding of the rules

Promote stock transactions - Lower the securities transaction tax rate imposed on the K-OTC9 trading of unlisted stocks from 0.5 percent to 0.3 percent

V. Expected revenue The government expects to earn a total of 317.1 billion won of tax revenue due to these revisions. Tax revenue increase

(y-o-y, billion won)

Total

2017

2018

2019

2020

2021 and beyond

Total

317.1

246.1

-519.6

487.2

155.2

-51.8

Income tax

-102.7

-65.5

-601.1

495.0

68.9

-

5.1

-8.0

-13.6

-3.0

83.2

-53.5

VAT

-39.1

-20.7

-18.4

-

-

-

Others

453.8

340.3

113.5

-4.8

3.1

1.7

Corporate tax

Tax payer burden increase

(billion won)

Working class/SMEs

High income earners/large conglomerates

Others

Total

-380.5

+725.2

-27.6

+317.1

9. KOFIA (Korea Financial Investment Association) Over the Counter Market

48

Policy Issue


Economic News Briefing

S&P raises Korea’s sovereign credit rating to AA Supplementary budget positive for Korea’s credit rating, says Moody’s Ministry of Strategy and Finance considers issuing 50-year KTBs Government pledges support for nine strategic technologies Korean FDI up 21.6% in first half of 2016 ‘Fintech Demo-day’ held in London Korea grows 0.7% in Q2 (advanced)


S&P raises Korea’s sovereign credit rating to AA Standard & Poor’s (S&P) raised Korea’s long-term sovereign credit rating by one notch from AA- to AA on August 8. S&P stated in its press release that “Korea’s steady economic growth, greater fiscal monetary flexibility and continual improvements in external metrics” were the rationale behind the upgrade. The latest upgrade is meaningful given that credit appraisers have recently downgraded sovereign credit ratings of many countries. The latest upgrade will help the Korean financial market further stabilize amid increasing external uncertainties, such as from Brexit, the Fed’s rate hike and China’s economic slowdown. In addition, Korean corporations and financial institutions will be able to borrow overseas at lower costs.

Supplementary budget positive for Korea’s credit rating, says Moody’s Moody’s reported on July 28 that the government’s supplementary budget will have a positive effect on Korea’s credit rating by helping to offset the negative effects of a sluggish global economy and boost domestic consumption. The government drew up the supplementary budget, which was announced on July 22, to support the restructuring of the shipbuilding industry and prepare for shocks in the job market following the restructuring.

Ministry of Strategy and Finance considers issuing 50-year KTBs The Ministry of Strategy and Finance (MOSF) is mulling over the issuance of new ultra-long Korea Treasury Bonds (KTBs) as interest rates have remained low and the yield gap between short- and longterm KTBs has significantly narrowed. The MOSF will come to a decision after discussing the timing, terms and conditions, and volume of issuance with bond market participants and experts. In the case that the new 50-year KTBs are successfully issued, it will improve the debt management capacity of the Korean government as it will be able to raise long-term fiscal funds in a stable manner while diversifying its Treasury bond issuance.

Government pledges support for nine strategic technologies The government held the 2nd Presidential Panel on Science and Technology on August 10 and pledged to support the development of nine strategic technologies. Support for artificial intelligence, virtual and augmented reality, unmanned vehicles, lightweight materials and smart cities is aimed at generating future economic growth, while support for precision medicine, biomedicine, carbon resources and reducing fine dust is aimed at improving the quality of life in Korea. More than 2 trillion won worth of support will be given, including 1.6 trillion won from the government and 615.2 billion won from the private sector.

50

Economic News Briefing


Korean FDI up 21.6% in first half of 2016 Korean foreign direct investment (FDI) rose 21.6 percent, from US $17.89 billion to US $21.75 billion, in the first half of 2016 compared to the same period a year ago. FDI rose in finance & insurance (up 37.0%), manufacturing (up 11.5%) and real estate & renting (up 91.2%), but fell in mining (down 49.0%). FDI in North America (up 29.4%) and Latin America (up 69.2%) increased, while FDI in Asia (down 9.9%) and Oceania (down 36.9%) declined. Korean FDI is expected to slow down in the second half as FDI is projected to be sluggish across the globe amid increasing risks, such as delayed global economic recovery due to Brexit, the spread of protectionism, and economic and political uncertainties arising from the US presidential election scheduled in November this year.

‘Fintech Demo-day’ held in London The Fintech Center, with support from the Financial Services Commission (FSC), hosted a Fintech Demo-day in London on July 22 to promote Korean fintech startups. Startups participating in the event introduced their technology to UK investment firms, tech companies and investors. Several startups succeeded in attracting investment and winning contracts to export their services to the UK. FSC Chairman Yim Jong-Yong said in a congratulatory speech at the event that Korea’s fintech industry is experiencing fast growth thanks to efforts aimed at easing regulations and creating a favorable environment for fintech services.

FSC Chairman Yim Jong-Yong (center) looks at a demonstration of a Korean fintech startup’s product during Fintech Demo-day in London on July 22.

August 2016

51


Korea grows 0.7% in Q2 (advanced) Korea’s real gross domestic product (GDP) expanded 0.7 percent in the second quarter of 2016 compared to the previous quarter, according to advanced estimates released by the Bank of Korea (BOK) on July 26. Korea’s GDP was up 3.2 percent from a year earlier. On the production side, agriculture, forestry & fisheries contracted 6.1 percent quarter-on-quarter. Manufacturing grew 1.3 percent, led by automobiles and chemical products, while construction grew 0.5 percent, led by residential housing construction. Services were up 0.5 percent, as gains in wholesale & retail, hotels & restaurants, cultural & sports services and other services offset declines in transportation services and real estate & renting. On the expenditure side, private consumption rose 0.9 percent due to increasing semi-durable goods consumption, while facility investment grew 2.9 percent due to strong transportation equipment investment. Construction investment was up 2.9 percent, led by residential housing construction, and intellectual property investment rose 1.1 percent, led by software investment. Exports rose 0.9 percent, led by semiconductors, oil and chemical products, while imports rose 1.9 percent, led by crude oil and automobiles.

GDP by production and expenditure*

(Percentage change from previous period) 1

2014

20161

2015

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

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

0.7 (3.2)2

Agriculture, forestry & fisheries

-1.6

-0.4

1.6

1.7

3.7

-11.0

4.7

-2.6

6.5

-6.1

Manufacturing

1.8

1.0

-0.7

-0.2

0.4

0.9

0.4

0.7

-0.2

1.3

Construction

1.9

0.1

-0.2

-2.1

1.8

-0.1

5.5

0.7

4.8

0.5

Services

0.9

0.4

1.2

0.7

0.7

0.2

1.1

0.7

0.5

0.5

Private consumption

0.4

-0.3

0.7

0.3

0.8

-0.1

1.1

1.4

-0.2

0.9

Government consumption

0.5

0.8

1.9

0.1

0.5

0.9

1.3

1.0

1.3

0.2

Facility investment

-1.1

1.3

0.3

3.5

0.5

0.8

1.8

0.5

-7.4

2.9

Construction investment

3.3

1.1

-0.8

-4.9

5.5

1.8

3.3

-2.4

6.8

2.9

Intellectual property investment

2.0

0.0

0.0

-0.1

1.7

-0.6

0.3

0.7

0.3

1.1

Exports

0.8

1.1

-1.5

0.3

0.6

-0.1

-0.3

2.1

-1.1

0.9

Imports

-1.6

0.8

-0.1

0.4

0.9

0.4

1.4

3.2

-3.1

1.9

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

2009 2010 2011 2012 2013 2014 2015p

0.7 6.5 3.7 2.3 2.9 3.3 2.6

3.2 -4.3 -2.0 -0.9 3.1 3.6 -1.5

-0.5 13.7 6.5 2.4 3.6 3.5 1.3

1.3 4.3 2.7 2.2 2.2 2.0 2.4

0.3 5.5 0.8 -0.5 3.3 3.4 3.8

3.5 -3.7 -3.4 -3.9 5.5 1.1 3.9

-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 Ⅱ

2.8 3.2

-2.4 2.0

1.9 2.3

2.7 3.3

3.0 5.1

9.6 10.6

-4.5 -2.6

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

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 Ⅰ Ⅱp

105.5 109.5

-0.2 1.0

105.2 109.3

-0.8 1.1

136.1 131.9

3.0 -1.6

111.2 115.6

2.8 3.7

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 3 4 5p 6p

105.7 98.2 112.5 107.1 110.1 111.2

-2.2 2.3 -0.5 -2.5 4.7 0.8

103.9 97.5 114.2 108.0 109.4 110.5

-3.9 0.9 0.9 -1.5 3.8 1.2

136.9 136.6 136.1 132.4 133.7 131.9

4.3 3.6 3.0 -1.0 0.5 -1.6

110.1 107.6 115.8 113.9 115.5 117.4

3.0 2.8 2.5 2.0 3.6 5.4

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

August 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

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 Ⅰ Ⅱp

112.0 112.1

0.4 0.4

88.6 92.0

-1.6 -3.1

73.2 72.1

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 3 4 5p 6p

111.8 111.9 112.2 112.1 112.1 112.0

0.3 0.5 0.4 0.5 0.4 0.3

89.0 81.2 95.6 90.1 92.7 93.3

-4.1 0.2 -0.7 -5.9 1.0 -3.9

72.3 73.5 73.8 71.3 73.0 72.1

* 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

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 Ⅰ Ⅱp

113.8 119.5

4.6 6.0

133.8 146.6

5.6 11.1

100.5 107.8

2.7 4.5

110.2 112.1

4.9 4.1

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 3 4 5p 6p

112.9 108.6 119.8 116.5 122.8 119.3

4.6 3.2 5.8 4.2 5.3 8.9

125.3 125.0 151.1 139.3 145.7 154.8

-2.3 6.6 12.3 7.8 11.8 13.5

101.6 93.1 106.7 109.4 115.3 98.8

4.1 1.7 2.0 2.1 0.9 11.9

112.0 107.8 110.9 109.0 115.4 111.8

8.8 2.2 3.7 3.1 3.9 5.2

p: Preliminary Source: Statistics Korea

August 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

-

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 Ⅰ Ⅱp

104.5 104.8

3.1 4.3

101.8 106.2

1.8 3.5

105.7 104.3

3.6 4.7

-

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 3 4 5p 6p 7p

106.2 95.0 112.4 106.3 103.6 104.6 -

1.6 1.0 6.5 1.1 5.7 6.2 -

96.8 92.8 115.8 106.7 102.0 109.8 -

-4.5 0.0 9.6 -0.4 3.9 7.1 -

110.3 95.9 110.9 106.1 104.3 102.4 -

4.3 1.3 5.2 1.8 6.4 5.9 -

100 98 100 101 99 99 101

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

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

2016Ⅰ Ⅱp

6,486 6,800

0.9 -3.1

635 576

56.9 15.1

5,851 6,233

-2.9 -4.5

100.1 113.6

-7.1 0.7

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 3 4 5p 6p

1,758 2,275 2,453 1,987 2,135 2,678

-24.0 22.7 8.4 -28.2 1.9 24.3

69 255 312 189 169 209

-40.7 80.7 110.8 49.3 -14.2 23.6

1,689 2,020 2,142 1,798 1,966 2,469

-23.1 18.0 1.2 -31.9 3.6 24.3

96.9 90.7 112.7 110.3 110.4 120.0

-6.0 -7.9 -7.2 -2.8 3.0 2.0

p: Preliminary Source: Statistics Korea

August 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)

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

2014 Ⅰ Ⅱ Ⅲ Ⅳ

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

7.4 1.6 -0.5 -4.9

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

2.1 -6.5 -10.1 -11.6

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

10.2 6.8 4.2 -1.4

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

16.8 26.4 44.0 -6.8

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

38.0 22.2 3.9 -13.2

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

6.3 32.3 60.7 -2.4

2015 Ⅰ Ⅱ Ⅲ Ⅳ

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

-1.7 -4.4 5.1 6.6

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

-7.8 -6.0 -1.0 -2.0

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

2.2 -3.9 8.4 10.5

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

57.4 49.1 50.4 40.1

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

-22.5 38.2 -5.4 16.6

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

110.4 53.3 67.6 47.9

2016 Ⅰ Ⅱp

24,191 29,875

13.5 19.3

6,711 8,221

1.8 0.4

16,209 20,310

16.0 28.0

28,927 32,234

13.8 -8.5

7,812 5,540

70.1 -38.9

20,406 25,951

-0.6 1.3

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

2016 1 2 3p 4 5p 6p

7,359 7,273 9,559 8,983 9,428 11,463

7.8 8.7 22.5 16.5 21.4 19.9

2,042 1,970 2,699 2,316 2,343 3,562

0.2 -5.9 9.6 -6.1 0.8 4.8

5,003 4,948 6,257 6,269 6,679 7,363

9.5 13.0 24.6 26.9 30.2 27.1

7,225 10,014 11,687 10,828 9,764 11,641

-3.9 84.3 -6.3 19.6 -22.7 -13.9

2,691 2,347 2,774 1,190 2,119 2,232

104.1 106.8 29.6 -54.0 -13.8 -44.6

4,260 7,586 8,559 9,271 7,527 9,153

-30.0 79.8 -16.4 44.5 -25.3 0.2

p: Preliminary Source: Statistics Korea

60

Type of order Public Private

Statistical Appendices


8. Composite indices of business cycle indicators and BSI Period

Leading index (2010=100)

Cyclical indicator of leading index (2010=100)

Coincident index (2010=100)

Cyclical indicator of coincident index (2010=100)

BSI (results)

BSI (prospects)

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

107.9 108.2 108.6 108.9 109.4 110.2 110.7 111.2 111.3 111.8 112.3 112.9

99.2 99.2 99.2 99.2 99.3 99.7 99.9 100.1 99.9 100.0 100.1 100.3

108.3 108.6 108.5 108.9 109.2 109.8 110.1 110.4 110.5 110.9 111.2 111.7

99.6 99.6 99.3 99.4 99.4 99.7 99.7 99.7 99.5 99.7 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

113.3 113.6 113.9 114.3 114.6 114.9 115.1 115.7 116.3 116.8 117.1 117.6

100.4 100.3 100.1 100.2 100.0 100.0 99.8 100.0 100.2 100.2 100.1 100.2

112.2 112.5 112.9 113.0 113.1 113.3 113.8 114.2 114.3 114.3 114.4 115.1

100.1 100.1 100.2 100.1 99.9 99.9 100.0 100.2 100.0 99.7 99.7 100.1

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

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

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

118.2 118.7 119.2 119.7 120.4 120.7 121.1 121.6 122.2 122.7 123.0 123.2

100.4 100.4 100.6 100.6 100.8 100.7 100.7 100.8 100.9 101.0 100.9 100.8

115.5 116.0 116.1 116.4 116.3 116.4 116.8 117.6 118.4 119.0 119.1 119.4

100.1 100.3 100.1 100.1 99.8 99.6 99.7 100.1 100.6 100.9 100.7 100.6

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

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

2016 1 2p 3 4p 5p 6p 7 8

123.4 123.5 123.9 124.5 124.9 125.2 -

100.5 100.3 100.3 100.4 100.4 100.3 -

119.3 119.4 119.5 119.8 120.4 120.9 -

100.3 100.2 100.0 100.0 100.2 100.4 -

92.1 87.0 94.2 97.3 97.1 91.3 89.7 -

93.2 86.3 98.3 95.7 102.3 94.8 90.5 89.5

Sources: Statistics Korea, Federation of Korean Industries

August 2016

61


9. Balance of payments ( I) Period

Current account

Goods

2013 2014 2015p

81,148.2 84,373.0 105,870.7

2014 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

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

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

24,076.1 25,901.4

27,884.2 33,115.7

118,001.5 127,989.9

90,117.3 94,874.2

-4,172.6 -4,135.5

1,249.3 -1,901.3

-884.8 -1,177.5

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

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

3,847.8 6,103.7 7,643.8 10,068.2 8,786.8 6,320.7 5,677.3 7,041.2 8,258.9 7,983.9 9,593.0 7,560.1

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

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

-1,727.0 -529.9 -632.1 -226.5 159.6 117.7 343.2 -391.6 -411.2 163.7 94.0 -638.4

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

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

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

6,257.1 6,081.1 10,101.0 7,729.8 8,315.5 11,872.3 9,714.8 8,546.9 10,846.4 9,120.4 9,910.3 7,375.1

6,310.3 7,020.8 10,885.6 12,090.2 8,792.6 12,797.0 9,924.9 8,805.4 11,907.4 10,605.2 10,466.1 10,684.5

45,022.1 40,294.9 49,122.1 49,908.3 43,471.9 48,878.5 47,259.6 42,991.3 45,112.1 47,298.7 43,360.4 46,117.9

38,711.8 33,274.1 38,236.5 37,818.1 34,679.3 36,081.5 37,334.7 34,185.9 33,204.7 36,693.5 32,894.3 35,433.4

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

2,558.1 1,037.8 234.9 -3,096.6 40.8 1,498.9 1,139.5 850.9 737.3 594.4 893.6 -587.9

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

2016p 1 2 3 4 5 6

6,820.9 7,169.7 10,085.5 3,371.7 10,361.3 12,168.4

7,899.7 7,539.0 12,445.5 9,559.3 10,737.6 12,818.8

37,227.8 36,231.7 44,542.0 40,313.0 42,426.0 45,250.9

29,328.1 28,692.7 32,096.5 30,753.7 31,688.4 32,432.1

-1,934.2 -1,242.1 -996.3 -1,617.9 -1,135.2 -1,382.4

1,253.4 852.1 -856.2 -4,066.2 908.7 1,256.2

-398.0 20.7 -507.5 -503.5 -149.8 -524.2

Exports

Imports

82,781.0 88,885.4 120,290.0

618,156.9 613,020.6 548,837.8

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

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

2015p Ⅰ Ⅱ Ⅲ Ⅳ

22,439.2 27,917.6 29,108.1 26,405.8

2016p Ⅰ Ⅱp

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

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 Ⅱp

28,218.0 18,694.5

5,070.3 2,047.8

16,719.1 13,917.8

2,756.8 -1,131.2

4,958.1 2,911.6

-1,286.3 948.5

-11.6 -7.0

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

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

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

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

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

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

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

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

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

7,898.1 5,175.2 10,726.8 9,802.8 8,558.1 10,310.5 10,018.0 9,052.5 10,544.7 11,086.1 8,697.0 7,860.2

659.2 1,631.0 2,096.0 1,712.2 949.9 4,805.5 -15.1 328.1 4,607.9 3,501.4 903.0 1,418.7

3,623.7 3,001.5 1,213.2 138.0 358.3 6,497.8 8,277.2 2,537.4 4,281.6 7,098.9 5,128.8 6,436.4

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

-489.1 371.2 4,624.3 4,851.0 4,755.5 -2,237.3 1,792.3 8,450.1 -398.3 -931.9 1,662.4 1,504.1

4,028.1 199.0 2,883.0 3,403.5 2,898.1 1,000.3 -972.8 -3,881.7 567.8 2,229.7 1,612.7 -1,915.1

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

2016p 1 2 3 4 5 6

6,478.9 9,503.0 12,236.1 167.1 8,928.1 9,599.3

-71.5 1,554.4 3,587.4 -143.4 715.8 1,475.4

4,650.7 6,199.9 5,868.5 3,360.8 4,358.8 6,198.2

1,214.5 756.6 785.7 -1,033.1 -463.7 365.6

302.9 2,557.8 2,097.4 -3,333.8 3,915.7 2,329.7

382.3 -1,565.7 -102.9 1,316.6 401.5 -769.6

-6.1 -2.3 -3.2 -5.0 1.0 -3.0

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

August 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 6 7

110.3 110.8 110.5 110.6 110.7 110.7 110.8

0.8 1.3 1.0 1.0 0.8 0.8 0.7

109.7 110.5 109.6 109.6 109.5 109.5 109.5

-1.1 -0.1 -0.6 -0.4 -1.1 -1.1 -0.7

110.8 111.0 111.2 111.4 111.6 111.6 111.9

2.4 2.4 2.3 2.2 2.2 2.2 1.9

112.2 112.5 112.5 112.7 112.9 113.0 113.1

1.7 1.8 1.7 1.8 1.6 1.7 1.6

98.5 98.5 98.4 98.7 98.8 99.0 99.0

-3.3 -3.4 -3.3 -3.0 -3.0 -2.7 -2.4

94.0 93.9 93.8 94.1 94.3 94.6 94.4

-5.7 -5.9 -5.7 -5.2 -5.1 -4.7 -4.3

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 (%)

2013 2014 2015

25,873 26,536 26,913

1.5 2.6 1.4

25,066 25,599 25,936

1.6 2.1 1.3

4,184 4,330 4,486

1.9 3.5 3.6

19,347 19,805 20,029

1.6 2.4 1.5

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 6 7

26,433 26,734 26,955 27,228 27,455 27,563 27,578

1.3 1.3 1.4 1.0 0.9 1.1 1.0

25,445 25,418 25,800 26,153 26,450 26,559 26,603

1.4 0.9 1.2 1.0 1.0 1.4 1.1

4,566 4,541 4,525 4,503 4,514 4,493 4,464

3.3 2.4 2.8 1.1 1.1 0.3 -1.4

19,955 19,885 20,028 20,263 20,483 20,593 20,719

1.3 0.9 1.0 1.3 1.5 2.1 2.3

3.7 4.9 4.3 3.9 3.7 3.6 3.5

Source: Statistics Korea

August 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 6 7

1.5 1.5 1.5 1.5 1.5 1.3 1.2

1.7 1.6 1.6 1.6 1.6 1.4 1.4

2.1 2.0 2.0 1.9 1.9 1.8 1.7

1.6 1.5 1.5 1.5 1.5 1.3 1.2

1.8 1.6 1.6 1.6 1.6 1.4 1.3

1,912.06 1,916.66 1,995.85 1,994.15 1,983.40 1,970.35 2,016.19

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 (end-period)


14. Monetary indicators Reserve money

Period 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 (%)

91,379.4 103,331.5 120,691.4

11.3 13.1 16.8

484,062.9 536,733.4 636,639.0

9.5 10.9 18.6

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

4.8 6.6 8.6

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

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 5 6

131,279.3 134,913.0 132,957.9 135,038.9 135,971.3 135,758.4

15.9 15.8 14.6 17.3 15.5 14.4

699,767.3 708,014.0 713,861.2 720,818.5 722,544.4 730,747.4

20.7 19.4 18.8 18.0 16.2 15.9

2,261,356.4 2,285,313.5 2,294,544.7 2,299,081.3 2,312,801.2 2,335,532.3

8.1 8.3 7.8 7.0 6.7 7.2

3,110,535.8 3,133,492.2 3,158,687.8 3,170,277.9 3,189,899.3 3,223,745.1

8.9 8.9 8.6 8.0 7.7 8.0

Source: Bank of Korea

August 2016

67


15. Exchange rates Period

100/ \

Euro/ \

Won

y-o-y change (%)

Won

y-o-y change (%)

Won

y-o-y change (%)

2013 2014 2015

1,055.3 1,099.2 1,172.0

-1.5 4.2 6.6

1,004.7 920.1 972.0

-19.5 -8.4 5.6

1,456.3 1,336.5 1,280.5

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 6 7

1,208.4 1,235.4 1,153.5 1,143.9 1,190.6 1,164.7 1,125.7

10.8 12.4 4.4 7.1 7.5 3.6 -3.5

1,017.1 1,085.8 1,026.0 1,058.2 1,072.8 1,132.2 1,073.7

10.4 17.9 11.5 17.9 19.9 23.4 14.3

1,322.2 1,348.3 1,307.4 1,298.4 1,326.8 1,295.5 1,246.7

7.0 9.6 9.2 9.4 9.2 2.8 -2.3

Source: Bank of Korea

68

(end-period)

US $/ \

Statistical Appendices


Seungmu Seungmu is a Korean traditional dance whose origin can be traced back to Buddhist rituals or folk dances. The dancer wears a robe with long sleeves and a white hood, and dances to different rhythms such as yeombul, dodeuri, taryeong and gutgeori. Seungmu is a highly sophisticated dance that involves various rhythms and a unique choreography, a combination of flowing movements and stillness.

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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August 2016

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