201610

ISSN 2287-7266

Republic of Korea

eb.kdi.re.kr

Vol.38 No.10 October 2016

CONOMIC U L L E T I N

The Green Book: Current Economic Trends Policy Issue Restructuring Frameworks for Steel and Petrochemical Industries

Economic News Briefing

Korea Ranks 26th in Global Competitiveness Report Korea Issues New 50-year KTBs FDI Up 13.4% in Jan-Sep Period Korea to Ease Listing Rules for Tech Startups

Statistical Appendices

02 The Green Book: Current Economic Trends Overview

03

01. External economic situation

04

02. Private consumption

09

03. Facility investment

11

04. Construction investment

13

05. Exports and imports

15

06. Mining and manufacturing production

18

07. Service sector activity

20

08. Employment

21

09. Financial markets

25

9.1 Stock market

25

9.2 Exchange rate

26

9.3 Bond market

27

9.4 Money supply and money market

28

10. Balance of payments

29

11. Prices

32

11.1 Consumer prices

32

11.2 International oil and commodity prices

33

12. Real estate market

36

12.1 Housing market

36

12.2 Land market

38

13. Composite indices of business cycle indicators

contents

40

43 42 Policy Issue Restructuring frameworks for steel and petrochemical industries

46 Economic News Briefing 50

Government announces three framework policies to respond to global trade challenges Korea ranks 26 in global competitiveness report th

Korea issues new 50-year KTBs FDI up 13.4% in Jan-Sep period Korea to ease listing rules for tech startups Korea and UK agree to work together for bilateral trade

53 49 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

Although the Korean economy has seen domestic demand improve as consumption and investment both increased somewhat, the economy has yet to gain recovery momentum as exports and production have slowed due to strikes in the automobile industry.

The economy added more jobs in August than the previous month (298,000 → 387,000, y-o-y) led by the agriculture, forestry & fisheries sector and the construction sector. Jobs continued to decline in the manufacturing sector.

Consumer prices rose at a faster rate in September compared with the previous month (up 0.4% → up 1.2%, y-o-y), as agricultural, livestock & fishery product prices rose and prices for petroleum products fell at a slower rate.

Mining and manufacturing production fell 2.4 percent month-on-month in August due to strikes in the automobile industry.

Service output rose 0.7 percent month-on-month in August, after falling 0.3 percent in July, due to strong wholesale & retail and an increase in real estate transactions.

Retail sales increased 2.0 percent month-on-month in August backed by strong sales of durable goods, such as home appliances and mobile phones, and nondurable goods, such as food. A government program aimed at encouraging purchases of energy efficient home appliances and the release of new mobile phone models, as well as extremely hot weather, boosted retail sales.

Facility investment rebounded in August, up 14.0 percent month-on-month, due to large investments in the semiconductor industry and a low base effect. Construction completed rose 3.2 percent month-onmonth backed by private sector residential housing construction and public sector spending on infrastructure projects.

In August, the cyclical indicator of the coincident composite index rose 0.2 points month-on-month as the value of construction completed improved and imports increased. The cyclical indicator of the leading composite index rose 0.3 points due to an increase in the value of construction orders received.

Exports fell 5.9 percent year-on-year in September due to strikes in the automobile industry, a recall of mobile phones and fewer days worked.

Stock prices rose and both the dollar-won exchange rate and Treasury yields fell in September as the Fed’s decision on September 22 to leave interest rates unchanged eased uncertainty in financial markets.

Housing prices increased at a faster rate than the previous month in September (up 0.07% → up 0.08%, m-o-m) due to robust demand for apartments scheduled for reconstruction, while Jeonse (lump-sum deposits with no monthly payments) prices remained stable (up 0.08% → up 0.08%, m-o-m) due to increasing supply.

October 2016

03

Economic recovery could be limited if strikes in some industries are prolonged amid rising internal and external uncertainties, including the enforcement of a new anti-graft law and the Fed’s rate hike.

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.

The government will work to improve the rate of budget execution and implement additional fiscal stimulus measures as planned, including the expansion of local government supplementary budgets, while renewing efforts to support consumption, investment and exports.

1. External economic situation

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

US

The US economy grew 1.4 percent (annualized q-o-q) in the second quarter of 2016 as falling investment offset increasing consumption. The economy showed signs of slowing in August as production and consumption fell.

Industrial production fell 0.4 percent month-on-month in August, the largest drop since March, due to declines in manufacturing (down 0.4%) and electricity & gas (down 1.4%). The ISM Manufacturing Index for September improved compared to the previous month.

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) → 49.4 (Aug) → 51.5 (Sep)

Retail sales fell 0.3 percent in August, a larger drop than the 0.1 percent fall markets had expected, due to a decline in sales of motor vehicles and parts (down 0.9%). Consumer sentiment indexes for September improved.

University of Michigan Consumer Sentiment Index (1966=100) 91.7 (Feb 2016) → 91.0 (Mar) → 89.0 (Apr) → 94.7 (May) → 93.5 (Jun) → 90.0 (Jul) → 89.8 (Aug) → 91.2 (Sep)

04

The Green Book : Current Economic Trends

Conference Board Consumer Confidence Index (1985=100) 94.0 (Feb 2016) → 96.1 (Mar) → 94.7 (Apr) → 92.4 (May) → 97.4 (Jun) → 96.7 (Jul) → 101.8 (Aug) →104.1 (Sep)

Existing home sales fell 0.9 percent month-on-month to an annualized pace of 5,330,000 in August, while new home sales declined 7.6 percent month-on-month due to a high base effect.

Case-Shiller Home Price Index (y-o-y, %) 5.6 (Nov 2015) → 5.6 (Dec) → 5.6 (Jan 2016) → 5.4 (Feb) → 5.5 (Mar) → 5.4 (Apr) → 5.2 (May) → 5.1 (Jun) → 5.0 (Jul) New home sales (m-o-m, %) 6.3 (Nov 2015) → 5.9 (Dec) → -2.2 (Jan 2016) → -0.2 (Feb) → 2.3 (Mar) → 6.1 (Apr) → -0.7 (May) → 2.3 (Jun) → 13.8 (Jul) → -7.6 (Aug)

The unemployment rate rose slightly compared to the previous month to 5.0 percent in September as the labor force participation rate increased to 62.9 percent. Nonfarm payrolls added 156,000 jobs in September, growing at a slower pace than the previous month, due to a decline in the manufacturing sector.

Labor force participation rate (%) 62.9 (Feb 2016) → 63.0 (Mar) → 62.8 (Apr) → 62.6 (May) → 62.7 (Jun) → 62.8 (Jul) → 62.8 (Aug) → 62.9 (Sep) Nonfarm payroll increase (m-o-m, thousands) 233 (Feb 2016) → 186 (Mar) → 144 (Apr) → 24 (May) → 292 (Jun) → 252 (Jul) → 167 (Aug) → 156 (Sep)

US GDP growth and industrial production

Sources: US Department of Commerce, Federal Reserve Board

10 (%) 8 6 4 2 0 -2 -4 -6 -8 -10

2006.Q1

2007.Q1

GDP (q-o-q, annualized rate)

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

Industrial production (q-o-q)

October 2016

05

(Percentage change from previous period)

2015 2014 Annual Annual Q4 Annual Q1 Q2 1.7 2.4 2.3 2.6 2.0 2.6 2013

Real GDP

1

- Personal consumption expenditures - Nonresidential fixed investment

1.5

2.9

4.6

Q3 2.0

Q4 0.9

Q1 0.8

Q2 1.4

2.3

1.6

2016 Jun Jul -

Aug Sep -

3.2

2.4

2.9

2.7

4.3

-

-

-

-

2.1

1.3

1.6

3.9 -3.3 -3.4 -1.0

-

-

-

-

-

-

-

-

3.5

6.0

-1.1

11.9

3.5

11.4

Industrial production

1.9

2.9

0.9

0.3

-0.5 -0.7

0.4 -0.8 -0.4 -0.1

0.5

0.6 -0.4

-

Retail sales

3.8

4.1

0.6

2.3

-0.7

1.5

0.9

1.5

0.7

0.1 -0.3

-

Existing home sales

9.1

-3.1

1.8

6.3

-0.7

4.6

2.3 -3.8

1.9

3.8

1.1 -3.4 -0.9

Unemployment rate²

7.4

6.2

5.7

5.3

5.5

5.4

5.2

5.0

4.9

4.9

4.9

4.9

4.9

5.0

Consumer prices (y-o-y)

1.5

1.6

1.2

0.1

-0.1

0.0

0.1

0.4

1.1

1.1

1.0

0.8

1.1

-

- Residential fixed investment

11.7 13.3 14.9 12.6 11.5

7.8 -7.7

0.3 -0.1

-

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

China

China’s economy is showing signs of recovery as industrial production rose backed by increased government investment in infrastructure, while consumption improved and exports fell at a slower pace.

China’s National Bureau of Statistics assessed that industrial production remained stable, and that new growth engines were rapidly developing as the high-tech industry and the equipment manufacturing industry improved 11.8 and 10.8 percent, respectively, from a year ago.

China’s GDP growth and fixed asset investment

Source: China National Bureau of Statistics 60

16 (%)

(%)

14

50

12

40

10

30

8

20

6

10

4

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

GDP (y-o-y, left)

06

The Green Book : Current Economic Trends

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

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

0

(Percentage change from same period in previous year)

2013

2014

Real GDP

7.7

7.3

6.9

Q1 7.0

Industrial production

Annual Annual Annual

2015 Q2 7.0

Q3 6.9

Q4 6.8

Q1 6.7

Q2 6.7

2016 Jun -

Jul -

Aug -

9.7

8.3

6.1

6.4

6.3

5.9

5.9

5.8

6.1

6.2

6.0

6.3

Fixed asset investment (accumulated, nominal)

19.6

15.7

10.0

13.5

11.4

10.3

10.0

10.7

9.0

9.0

8.1

8.1

Retail sales (nominal)

13.1

12.0

10.7

10.6

10.2

10.7

11.1

10.3

10.2

10.6

10.2

10.6

Exports

8.6

5.5

-2.5

4.7

-2.1

-5.9

-5.0

-9.6

-3.6

-4.8

-4.4

-2.8

Consumer prices1

2.6

2.0

1.4

1.2

1.4

1.7

1.5

2.1

2.1

1.9

1.8

1.3

Producer prices

-1.9

-1.9

-5.2

-4.6

-4.8

-5.7

-5.9

-4.8

-2.9

-2.6

-1.7

-0.8

1

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

Japan

Japan’s economy continued to show signs of a slowdown: Retail sales fell in August, both consumer and core consumer prices continued to decline, and exports fell for the 11th consecutive month due to the strong yen.

Core consumer prices (excluding fresh food, y-o-y, %) 0.0 (Feb 2016) → -0.3 (Mar) → -0.4 (Apr) → -0.4 (May) → -0.4 (Jun) → -0.5 (Jul) → -0.5 (Aug)

Japan’s GDP growth and industrial production

Sources: Japan's Cabinet Office, Ministry of Economy, Trade and Industry 25

6 (%)

(%) 20

4

15 10

2

5 0

0

-5 -2

-10 -15

-4

-20 -6

2006.Q1

GDP (q-o-q, left)

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

-25

Industrial production (q-o-q, right)

October 2016

07

(Percentage change from previous period)

2013

2014

2015 Q2 -0.4

Q3 0.5

Q4 -0.4

Q1 0.5

Q2 0.2

2016 Jun -

Jul -

Aug -

0.2

-2.3

-0.4

1.5

Real GDP

1.4

0.0

0.6

Q1 1.2

Industrial production

-0.6

2.1

-1.2

1.1

-1.3

-1.0

0.0

-1.0

Retail sales (nominal)

1.2

1.7

-0.4

-1.7

0.2

1.0

-0.2

-2.3

0.1

0.3

1.5

-1.1

Exports (y-o-y)

9.5

4.8

3.4

9.0

6.7

3.7

-4.6

-7.9

-9.5

-7.4

-14.0

-9.6

Consumer prices (y-o-y)

0.4

2.7

0.8

2.3

0.5

0.1

0.3

0.1

-0.4

-0.4

-0.4

-0.5

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 as weak domestic and foreign demand led to declines in industrial production, retail sales and exports. The composite PMI fell for the second consecutive month.

Composite PMI (base=50) 53.0 (Feb 2016) → 53.1 (Mar) → 53.0 (Apr) → 53.1 (May) → 53.1 (Jun) → 53.2 (Jul) → 52.9 (Aug) → 52.6 (Sep)

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)

2015.Q1

-10

2016.Q1

Industrial production (q-o-q, right)

(Percentage change from previous period)

2013

2014 2.0

Q1 0.8

Q3 0.4

Q4 0.4

Q1 0.5

Q2 0.3

2016 Jun -

Jul -

Aug -

0.8

-0.4

0.8

-1.1

-

Real GDP

-0.3

1.1

Q4 0.4

Industrial production

-0.7

0.9

0.6

1.5

0.7

0.1

0.4

0.1

Retail sales

-0.6

1.4

1.0

2.7

0.9

0.7

0.6

0.2

0.6

0.1

0.0

0.3

-0.1

Exports (y-o-y)

1.0

2.2

4.4

5.4

5.5

8.2

4.4

3.6

-1.0

-0.3

-1.7

-9.8

-

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

0.1

0.2

0.2

Annual Annual

Annual

2015 Q2 0.4

Sources: Eurostat, Bloomberg

08

The Green Book : Current Economic Trends

2. Private consumption

Private consumption (preliminary GDP) in the second quarter of 2016 rose 1.0 percent compared to the previous quarter and 3.3 percent compared to a year ago.

(Percentage change from previous period)

2013 1.9

1.7

Q1 0.4

-

-

2.8

Annual Annual

Private consumption² (y-o-y)

2014 Q2 -0.3

2015 Q3 0.7

Q4 0.3

Annual¹

1.7

1.4

1.1

2.2

Q1¹ 0.8

-

1.5

-0.1

Q3¹ 1.1

Q4¹ 1.4

2016 Q1¹ Q2¹ -0.2 1.0

1.7

2.2

3.3

2.2

Q2¹

3.3

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

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 August rose 2.0 percent month-on-month, even though sales of semi-durable goods (down 1.2%) fell, as sales of durable goods (up 4.7%), such as home appliances, and sales of nondurable goods (up 1.8%), such as food, increased. Year-on-year, the index rose 6.0 percent.

(Percentage change from previous period)

-

-

2014 Q3 1.4

0.7

2.0

2.0

2.4

3.9

2.2

3.4

3.6

2013 Annual Annual

Retail sales (y-o-y)

-

Q1 1.0

2015 Q2 0.7

Q3 1.3

Q4 3.1

Q2 2.8

2016 Jul¹ -2.5

Aug¹ 2.0

6.1

6.2

4.4

6.0

Q4 0.3

Annual

- Durable goods

0.3

5.1

3.2

0.4

10.2

4.3

0.8

2.0

8.2

7.6

-9.8

4.7

· Automobiles

2.1

16.4

5.1

0.3

21.3

7.0

5.4

3.5

11.2

15.3

-26.4

-0.3

- Semi-durable goods3

2.1

-0.8

3.9

-2.3

-1.2

-2.0

-1.0

1.8

2.8

2.2

0.7

-1.2

- Nondurable goods4

0.4

1.6

-0.8

1.3

2.5

0.6

1.2

0.7

0.3

0.4

0.7

1.8

2

1. Preliminary 2. Durable goods: Automobiles, electronic appliances, furniture, telecommunications devices, etc.

3. Semi-durable goods: Clothing, footwear, etc.

4. Nondurable goods: Food, medicine, cosmetics, fuel, tobacco, etc.

Source: Statistics Korea

October 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)

2016.1

Retail sales (y-o-y)

Retail sales by type

Source: Statistics Korea (industrial activity trends)

50 (y-o-y, %) 40 30 20 10 0 -10 -20 -30 2006.1

2007.1

2008.1

2009.1

2010.1

Durable goods

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Nondurable goods

Semi-durable goods

Credit card use, department store sales and sales of gasoline continued to increase in September.

(Percentage change from same preriod in previous year)

2016 Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Credit card use

14.2

13.9

7.2

22.7

12.9

9.1

15.0

9.1

Department store sales

-0.1

4.8

8.0

1.5

13.5

11.2

4.8

4.2

Large discount store sales

-5.4

-1.4

0.2

-5.5

2.9

5.8

0.2

-0.4

Domestic sales of gasoline

-1.1

-0.7

1.6

7.2

4.6

2.3

9.7

6.2

Domestic sales of cars

9.0

18.9

5.8

20.8

24.1

-10.5

-11.1

-10.9

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

10

The Green Book : Current Economic Trends

3. Facility investment

Facility investment (preliminary GDP) rose 2.8 percent quarter-on-quarter and fell 2.7 percent year-onyear in the second quarter of 2016.

(Percentage change from previous period)

2014 Facility investment²

5.3

Q1¹ 0.5

2015 Q2¹ 0.8

Q3¹ 1.8

Q4¹ 0.5

Q1¹ -7.4

Q2¹ 2.8

-

5.8

5.1

6.7

3.9

-4.5

-2.7

Annual¹

6.0

Q4 3.5

-

4.4

Annual

(y-o-y)

2016

- Machinery

5.0

5.2

2.1

0.1

-2.9

0.8

-3.0

-6.4

1.9

- Transportation equipment

8.3

-0.4

12.5

1.5

9.3

3.7

7.4

-9.4

4.5

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

Facility investment

Source: Bank of Korea (national accounts)

40 (%) 30

20

10

0

-10

-20

-30

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

Facility investment (q-o-q)

2016.Q1

Facility investment (y-o-y)

The facility investment index in August rose 14.0 percent month-on-month as both machinery and transportation equipment investment increased. The index increased 3.6 percent year-on-year.

(Percentage change from previous period)

2014

2015 Q2 -2.2

Q3 5.2

Q4 -1.2

Q1 -8.7

Q2 6.4

2016 Jul1 -11.7

Aug1 14.0

10.2

1.6

-7.1

0.8

-12.3

3.6

Annual

Annual

Facility investment index

5.2

6.3

Q1 -0.2

(y-o-y)

-

-

9.2

4.5

- Machinery

3.9

2.9

-0.1

-6.0

0.7

-2.6

-5.3

-0.3

-0.3

15.3

- Transportation equipment

8.8

14.9

-1.0

8.8

16.5

1.0

-14.3

20.5

-31.6

11.0

1. Preliminary Source: Statistics Korea

October 2016

11

Facility investment by type Source: Bank of Korea (national accounts) 50 (y-o-y, %) 40 30 20 10 0 -10 -20 -30

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

Transportation equipment

Machinery

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

60 (trillion won)

(y-o-y, %)

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)

2014

2015 Q2 14.9

Q3 -27.1

Q4 6.9

Q1 0.9

2016 Q2 Jul1 -3.0 0.4

Aug1 -3.3

14.8

-3.6

Q1 -3.0

-

-

-0.1

8.6

-10.0

9.2

-6.3

4.6

-15.5

-10.2

- Public

94.2

-61.7

-66.9

61.7

-85.3

-19.8

56.9

15.1

-61.3

-50.0

- Private

4.8

10.0

11.4

12.5

4.7

10.8

-2.9

-4.3

4.8

1.6

Machinery imports

5.8

0.3

8.5

-1.1

2.3

-6.4

-13.0

-6.7

-15.3

13.4

Average manufacturing operation ratio (%)

76.1

74.3

74.3

74.3

74.9

73.6

73.2

72.2

73.8

70.4

Facility investment adjustment pressure²

-1.4

-1.8

-2.8

-2.8

-1.2

-0.6

-0.7

0.8

1.3

1.8

Annual Annual

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

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

The facility investment outlook is mixed: Machinery imports and facility investment adjustment pressure increased, but domestic machinery orders and the average manufacturing operation ratio fell.

Domestic automobile sales growth (y-o-y, %) 5.8 (Apr 2016) → 20.8 (May) → 24.1 (Jun) → -10.5 (Jul) → -11.1 (Aug) → -10.9 (Sep)

4. Construction investment

Construction investment (preliminary GDP) in the second quarter of 2016 rose 3.1 percent quarter-onquarter and 10.8 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)

2016.Q1

2015.Q1

Construction investment (y-o-y)

(Percentage change from previous period)

2014

2015 Q2¹ 1.8

Q3¹ 3.3

Q4¹ -2.4

Q1¹ 6.8

2016 Q2¹ 3.1

1.0

5.6

7.5

9.6

10.8

Annual¹

1.1

Q4 1.4

3.9

Q1¹ 5.5

-

-1.5

-

0.9

- Building construction

6.3

-4.9

6.3

2.5

4.9

5.6

0.3

3.6

5.5

- Civil engineering works

-7.3

-4.7

-7.3

11.4

-3.8

-1.4

-8.0

14.0

-1.9

Annual

Construction investment² (y-o-y)

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

The value of construction completed (constant) in August rose 3.2 percent month-on-month as both civil engineering works and building construction increased. The index rose 23.6 percent year-on-year.

October 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)

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

Annual

Annual

-0.7

2.3

Q1 4.1

2015 Q2 -2.1

Q3 6.4

Q4 0.0

Q1 9.4

Q2 2.3

2016 Jul1 0.2

Aug1 3.2

-

-

-2.0

-3.9

5.9

8.0

14.8

19.2

19.8

23.6

7.8

6.0

4.4

-0.7

9.5

2.6

9.0

3.1

0.2

4.6

-12.3

-3.8

3.7

-4.4

0.9

-5.0

10.2

0.7

0.3

0.1

1. Preliminary Source: Statistics Korea

Construction completed is expected to rise, considering a continued large increase in construction orders. However, the index may be temporarily hampered by apartment presales, which fell for two consecutive months.

Apartment presales (thousands, Real Estate 114) 9 (Feb 2016) → 38 (Mar) → 35 (Apr) → 54 (May) → 41 (Jun) → 48 (Jul) → 30 (Aug) → 18 (Sep) Domestic shipments of cement (million tons) 2.89 (Feb 2016) → 5.50 (Mar) → 5.00 (Apr) → 5.10 (May) → 4.85 (Jun) → 4.50 (Jul) → 4.32 (Aug) → 4.50 (Sep) (Percentage change from same period in previous year)

Q1

2015 Q2

Q3

2014 Annual Annual

Construction orders (current value)

2016 Q4

Q1

Q2

Jul1

Aug1

16.3

48.2

57.4

49.1

50.4

40.1

13.8

-6.3

45.7

54.6

-

-

47.4

11.6

21.3

-26.5

17.7

-10.2

64.5

7.8

- Building construction

24.5

50.1

89.5

49.3

42.5

37.8

13.1

2.6

35.3

30.9

- Civil engineering works

-4.4

42.9

1.7

48.3

83.6

45.9

16.0

-32.8

93.9

200.7

Building permits²

11.2

34.3

11.0

25.1

57.0

40.4

19.7

5.3

-27.9

-9.5

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

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

Construction orders

2012.1

2013.1

2014.1

2015.1

2016.1

Building permit area

5. Exports and imports

Exports (preliminary) decreased 5.9 percent year-on-year to US $40.86 billion in September.

Exports fell partly due to strikes in the auto industry, smartphone recalls and fewer days worked (down 0.5 days, y-o-y). By item, shipments of automobiles and mobile phones fell. By region, shipments to Japan and Latin America increased, while exports to the EU and the Middle East declined.

Export growth by item (y-o-y, %) -2.6 (semiconductors), -4.1 (steel), -13.4 (petroleum products), -13.6 (vessels), -24.0 (automobiles), -27.9 (mobile phones) Export growth by region (y-o-y, %) 6.3 (Japan), 0.2 (Latin America), -1.3 (ASEAN countries), -6.1 (US), -9.1 (China), -14.5 (EU), -19.1 (Middle East)

By volume, exports fell 0.5 percent in September, decreasing at a slower rate than last month’s fall of 3.3 percent.

Average daily exports, an indicator adjusted to days worked, increased month-on-month to US $1.95 billion.

Average daily exports (US $ billion) 1.62 (Jan 2016) → 1.80 (Feb) → 1.79 (Mar) → 1.83 (Apr) → 1.85 (May) → 1.97 (Jun) → 1.74 (Jul) → 1.67 (Aug) → 1.95 (Sep)

October 2016

15

(US $ billion)

2014 Exports

2015 Q1

Annual

Annual

572.66

526.76 133.40

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

2016

Q2

Q3

Q4

Sep

Q1

Q2

Q31

Aug

Sep1

135.10

128.24

130.02

43.43

115.20

126.02

121.94

40.12

40.86

2.3

-8.0

-3.0

-7.3

-9.5

-12.0

-8.5

-13.6

-6.7

-4.9

2.6

-5.9

2.11

1.93

2.01

1.99

1.87

1.86

2.02

1.73

1.88

1.78

1.67

1.95

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

Exports

2009.1

2010.1

2011.1

2012.1

Semiconductors

2013.1

2014.1

2015.1

2016.1

Automobiles

Steel

Imports (preliminary) in September fell 2.3 percent year-on-year to US $33.76 billion.

Commodities imports decreased at a slower rate, but capital goods tumbled and consumer goods increased at a slower rate.

Import growth by category (y-o-y, %, Aug → Sep) -5.2 → -0.8 (commodities), 5.9 → -6.3 (capital goods), 7.8 → 2.5 (consumer goods) (US $ billion)

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

2015

2016

Annual

Annual

Q1

Q2

Q3

Q4

Sep

Q1

Q2

Q31

Aug

Sep1

525.51

436.50

111.77

110.50

107.96

106.27

34.54

93.75

99.09

102.17

35.01

33.76

1.9

-16.9

-15.6

-15.6

-18.7

-17.8

-21.8

-16.1

-10.3

-5.4

0.7

-2.3

1.94

1.60

1.68

1.62

1.58

1.52

1.61

1.41

1.48

1.49

1.46

1.61

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

Imports

2012.1

2013.1

2014.1

2015.1

2016.1

Commodities

Capital goods

The trade balance (preliminary) posted a surplus of US $7.10 billion in September, staying in the black for the 56th consecutive month. Surpluses decreased compared with the previous month.

(US $ billion)

2014

2015

2016

Annual

Annual

Q1

Q2

Q3

Q4

Sep

Q1

Q2

Q31

Aug

Sep1

47.15

90.26

21.63

24.61

20.28

23.74

8.89

21.45

26.93

19.77

5.11

7.10

Trade balance

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

October 2016

17

6. Mining and manufacturing production

Mining and manufacturing production fell 2.4 percent month-on-month in August, due to weak semiconductors and automobiles, despite an increase in primary metals and food. Compared to the same period of the previous year, the index increased 2.3 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

2015.1

Industrial production (m-o-m)

2016.1

Industrial production (y-o-y)

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

-

2015 Q2 -0.5

Aug 1.9

Q1 -0.6

Q2 1.0

-0.6

-1.3

0.2

-0.2

-

-0.5

2.0

-0.7

(y-o-y)

-0.6

-1.3

0.0

Shipment

-0.2

-0.4

1.9

Annual

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

Mining and manufacturing2 (y-o-y)

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

Manufacturing

2016 Jun -0.3

Julยน 1.3

1.0

0.9

1.6

2.3

1.1

-0.3

1.2

-2.5

-0.4

1.1

1.0

1.7

2.3

-1.8

2.1

0.5

0.2

-2.1 -1.5

Augยน -2.4

- Domestic consumption

0.4

0.5

1.0

-0.9

0.9

-0.3

0.5

- Exports

-1.0

-1.5

2.9

-3.1

3.5

1.6

-0.2

-2.7

Inventory 3

2.9

2.3

0.7

3.9

-2.6

-0.5

-0.4

-1.7

Average operation ratio (%)

74.3

74.3

75.4

73.2

72.2

72.2

73.8

70.4

Production capacity (y-o-y)

1.2

1.5

0.7

0.4

0.4

0.2

0.4

0.5

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

3. End-period

Compared to the previous month, production of primary metals (up 3.2%), food (up 3.7%) and nonmetallic minerals (up 4.4%) rose, while automobiles (down 17.7%), semiconductors (down 5.2%) and mechanical equipment (down 2.4%) fell.

Compared to a year ago, production of semiconductors (up 27.5%), chemical products (up 5.1%) and primary metals (up 5.2%) rose, while automobiles (down 12.1%), communications equipment (down 30.0%) and mechanical equipment (down 4.7%) declined.

18

The Green Book : Current Economic Trends

The manufacturing inventory-shipment ratio rose 0.4 percentage points month-on-month to 120.7 percent as inventories fell 1.7 percent and shipments decreased 2.1 percent.

Inventories of refined petroleum (up 10.9%), primary metals (up 2.6%) and chemical products (up 2.4%) rose, while semiconductors (down 29.3%), communications equipment (down 18.8%) and clothing & furs (down 3.2%) declined. Shipments of semiconductors (up 2.7%), communications equipment (up 13.0%) and food (up 4.4%) rose, while automobiles (down 12.4%), refined petroleum (down 8.9%) and electronic parts (down 5.7%) fell.

Shipment and inventory 10

Source: Statistics Korea (industrial activity trends)

(m-o-m, %)

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

2006.1

2007.1

2008.1

2009.1

2010.1

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 3.4 percentage points month-on-month to 70.4 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

Mining and manufacturing for September is likely to increase given a low base effect from August.

However, there is a chance that it will be hindered by weak exports and long autoworker strikes.

October 2016

19

7. Service sector activity

Service output in August increased 0.7 percent month-on-month and 4.7 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

2014.1

Service sector activity (m-o-m)

2015.1

2016.1

Service sector activity (y-o-y)

(Percentage change from previous period)

2016 Q2 Jul1 Aug1 1.6 -0.3 0.7 2.0 -0.5

1.5

2.3

0.8

2.8

21.6

0.1

0.4

-0.4

1.7

0.7

0.3

0.9

2.2

- Transportation services

8.5

1.0

1.7

1.8

1.4

-0.2

-2.6

1.9

1.9 -0.5

2.1 -1.1

- Hotels & restaurants

7.2

0.5

1.5

-1.7 -2.0

-0.6

-3.4

2.1

0.8 -0.8

2.0 -0.3

1.1

- Publishing & communications services

2014

Q4 1.2

100.0

Service activity index - Wholesale & retail

2013

Q3 1.2

2015 Q2 0.5 0.5

Weight

Annual Annual Q4 Annual Q1

0.7

8.4

2.2

2.0

-0.4 -0.6

-1.9

-0.5

3.0

1.8 -3.4

1.5

14.7

0.5

5.2

3.3

9.0

1.6

3.8

1.2 -0.4

1.6

0.5

0.1

- Real estate & renting

5.3

2.5

6.2

4.3

8.1

-0.8

6.4

0.9 -0.5

2.9

2.7

2.2

- Professional, scientific & technical services

5.6

3.3

2.3

2.9 -0.4

-2.9

-0.1

1.6

1.7 -6.2

6.1

- Business services

3.3

2.1

2.5

0.8

3.9

2.3

0.4 -1.0

3.4 -0.6

- Education services

- Financial & insurance services

0.3

0.5 -1.6

10.9

0.8

1.3

-0.4

0.9

1.0

-0.6

0.0

1.0

0.0 -0.4

0.6

- Healthcare & social welfare services

7.5

5.2

6.3

2.2

6.2

1.9

0.0

1.4

3.1

3.6

1.9

1.0

- Entertainment, cultural & sports services

2.9

-0.7

-1.0

-2.3

1.1

1.5

-2.5

1.0

3.2

5.9 -6.6

0.4

- Membership organizations & personal services

3.6

6.1

-0.5

-1.9 -0.5

0.7

1.6 -0.2 -2.7

1.0 -1.8

1.6

- Sewerage & waste management

0.6

-0.4

1.0

3.6

0.6

3.6

4.4 -7.1 -0.7

7.2

4.6 -4.6

1. Preliminary Source: Statistics Korea

Month-on-month, professional, scientific & technical services (up 6.1%), real estate & renting (up 2.2%), publishing & communications services (up 1.5%) and wholesale & retail (up 0.7%) increased, while business services (down 1.6%), transportation services (down 1.1%) and hotels & restaurants (down 0.3%) decreased.

20

The Green Book : Current Economic Trends

August 2016 service output by business

Source: Statistics Korea (industrial activity trends)

16 (y-o-y, %)

14 12 10

Financial & insurance services

8 Total index

6

Wholesale & retail

Real estate & renting Professional, scientific & technical services

4 Hotels & restaurants

2 0

Transportation services

-2

Publishing & communications services

Entertainment, cultural & sports services

Education services Business services

Health & social welfare services

Sewerage & waste management

Membership organizations & personal services

-4

The service output outlook for September is positive as average daily stock transactions increased.

Average daily stock transactions (trillion won) 8.3 (Jan 2016) → 7.8 (Feb) → 7.5 (Mar) → 8.1 (Apr) → 8.5 (May) → 9.1 (Jun) → 8.3 (Jul) → 7.9 (Aug) → 8.1 (Sep)

8. Employment

The number of workers on payroll in August increased by 387,000 from a year earlier to 26,530,000, and the employment rate rose 0.5 percentage points to 66.4 percent.

By industry, services and construction led employment growth.

Number of persons employed and employment growth

Source: Statistics Korea (employment trends)

1,000

27 (thousands)

(millions)

800

26

600

25

400 24 200 23

0

22

-200 -400

2006.1

2007.1

2008.1

Employment growth (y-o-y, left)

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

21

Number of employed (seasonally adjusted, right)

October 2016

21

Employment rate Source: Statistics Korea (employment trends) 64 (%) 63 62 61 60 59 58 57 56 55

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

Original data

2016.1

Seasonally adjusted rate

Employment by industry

Source: Statistics Korea (employment trends)

(%)

100

80

60

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 70.9 70.8

40 7.1

7.0

7.1

7.1

7.2

20

7.2

7.0

7.0

6.9

7.1

7.1

7.1

7.1

7.0

7.0

6.9

7.0

7.1

7.0

6.8

6.8

6.9

7.0

7.0

7.0

7.1

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 16.8 16.7 0

6.2

6.2

6.2

6.2

5.8

9

10

11

2014.7 8

4.2

3.9 4.1 12 2015.1 2

Services

4.9

5.5

5.9

5.9

5.8

5.7

5.7

5.6

5.1

3

4

5

6

7

8

9

10

11

Construction

4.8

5.2

5.4

5.5

5.3

5.3

3

4

5

6

7

8

Manufacturing

2012 2013

2014

Annual Annual Annual Q4 Annual Q1

Number of employed (millions)

4.0 3.6 3.8 12 2016.1 2

Agriculture, forestry & fisheries

2015 Q2 Q3

Q4

Aug

Q1

2016 Q2 Jul

Aug

24.68 25.07 25.60 25.77 25.94 25.27 26.10 26.24 26.14 26.14 25.55 26.39 26.60 26.53

Employment rate (%)

59.4 59.5 60.2 60.4 60.6 59.0 60.7 60.9 60.5 60.7 59.7 60.8 61.2 61.0

(Seasonally adjusted)

59.4 59.5 60.2 60.3 60.3 60.5 59.9 60.3 60.5 60.3 60.5 60.1 60.3 60.6

Employment growth (y-o-y, thousands)

437

386

533

422

337

354

308

310

376

256

287

289

298

387

(Excluding agriculture, forestry & fisheries)

451

394

601

531

444

441

435

419

482

371

341

375

410

454

- Manufacturing

14

79

146

129

156

139

147

164

176

156

126

38

-65

-74

- Construction

22

-19

42

72

27

72

44

11

-19

10

-7

-28

1

71

- Services

416

318

424

336

250

222

235

234

309

194

216

360

465

457

- Agriculture, forestry & fisheries

-14

-8

-87 -127 -115 -106 -115

-54

-86 -111

-67

-68 -109 -107

Source: Statistics Korea

22

The Green Book : Current Economic Trends

By employment status, permanent workers continued to drive employment growth, while temporary, daily and self-employed workers increased.

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

80

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

4.4

4.6

3.9

3.7

3.8

4.2

4.3

4.4

4.4

4.4

(%) 4.5

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 21.2 21.5 6.0

60

5.0

5.8

6.1

6.2

6.4

6.2

6.0

6.0

5.7

6.2

6.5

6.1

6.2

5.9

5.9

5.7

5.8

5.9

5.7

5.5

5.3

5.5

5.4

5.7

5.8

5.5

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

40

20

0

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 48.8 48.9

2014.7 8

9

10

11

Unpaid family workers

12 2015.1 2

3

4

5

6

7

Self-employed workers

2012 2013

8

9

10

11

Daily workers

2014

Annual Annual Annual Q4 Annual Q1

12 2016.1 2

3

4

Temporary workers

5

6

7

8

Permanent workers

2015 Q2 Q3

Q4

Aug

Q1

2016 Q2 Jul

Aug

Employment growth (y-o-y, thousands)

437

386

533 422

337

354

308

310

376

256

287

289

298

387

- Wage workers

315

483

548 476

487

442

422

521

565

536

427

392

356

315

436

615

443 355

432

355

332

505

536

510

505

457

364

291

1

129

2

15

15 -100

24

路 Permanent workers 路 Temporary workers

-2

-96

140 141

54

82

3

-120

-37

-35

-20

1

4

87

121

-97

-15

-54

-151

124

-67

1

7

-89

- Male

234

186

266 196

- Female

203

200

267 226

- 15 to 29

-36

-50

77

- 30 to 39

-31

-21

-21 38

路 Daily workers - Nonwage workers 路 Self-employed workers

120

70

91

-93 -185

-78

-67

-88 -114 -211 -189 -279 -140 -103

-58

72

-49

-37 -136 -135 -183

-96

-68

-10

79

132

141

145

111

132

97

107

124

163

209

205

213

163

199

244

160

180

165

136

178

56

68

32

90

50

100

36

40

82

88

56

-29

-38

-1

-56

-60

-36

-60

-21

-23

-56

-61

- 40 to 49

11

22

4

-14

-47

-15

1

7

-17

6

-41

-9

11

- 50 to 59

270

254

239 190

149

177

138

145

135

121

84

82

45

124

- 60 or more

222

181

200 201

172

192

150

174

169

177

179

189

230

258

Source: Statistics Korea

The number of unemployed persons in August increased by 73,000 year-on-year to 996,000, and the unemployment rate rose 0.2 percentage points year-on-year to 3.6 percent. The unemployment rate rose in all age groups except in the groups of those in their 40s and 50s.

The economically inactive population fell 81,000 from a year earlier to 15,940,000, while the labor force participation rate rose 0.5 percentage points to 63.3 percent. The number of those economically inactive due to education (down 100,000), childcare (down 61,000) and rest (down 83,000) decreased.

October 2016

23

Unemployment rate

Source: Statistics Korea (employment trends)

6 (%)

5

4

3

2 2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Seasonally adjusted rate

Original data

2012 2013

2015 Q2 Q3

Q4

Aug

976 1,089 1,042 929

845

923 1,153 1,028

2014

Annual Annual Annual Q4 Annual

Number of unemployed (thousands)

Q1

Q1

820

807

937

854

-35

-13

137

121

40

58

65

45

-9

33

64

-26 -9 3.2

-6 -7 3.1

49 80 3.5

59 63 3.2

24 16 3.6

25 32 4.1

42 23 3.8

31 14 3.4

-3 -6 3.1

14 19 3.4

51 13 4.3

(Seasonally adjusted)

3.2

3.1

3.5

3.5

3.6

3.7

3.8

3.6

3.4

3.6

- 15 to 29

7.5

8.0

9.0

8.3

9.2

10.3

9.9

8.4

8.0

8.0

- 30 to 39

3.0

3.0

3.1

2.8

3.1

3.1

3.3

3.0

2.9

3.0

- 40 to 49

2.0

2.0

2.2

2.1

2.3

2.4

2.5

2.3

2.0

- 50 to 59

2.1

1.9

2.2

2.2

2.4

2.6

2.6

2.4

1.9

- 60 or more

2.4

1.8

2.3

1.6

2.5

4.1

2.2

2.0

2.1

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

Q2

2016 Jul

Aug

975

996

-14

-24

73

11 -24 3.8

3 -27 3.5

53 20 3.6

3.8

3.7

3.6

3.8

11.3

10.3

9.2

9.3

3.2

3.2

3.2

3.2

2.5

2.4

2.1

2.0

2.1

2.5

2.6

2.3

2.4

2.3

1.9

4.2

2.2

2.1

2.4

Source: Statistics Korea

Labor force participation rate

Source: Statistics Korea (employment trends)

65 (%) 64 63 62 61 60 59 58 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

2014

Annual Annual Annual Q4 Annual Q1

Economically inactive population (millions)

2015 Q2 Q3

Q4

Aug

Q1

2016 Q2 Jul

Aug

16.08 16.22 15.98 16.07 16.11 16.47 15.84 15.92 16.19 16.02 16.57 15.97 15.86 15.94

Labor force participation rate (%)

61.3

61.5

62.4 62.4 62.6 61.5 63.2 63.0 62.5 62.8 61.7 63.2 63.5 63.3

(Seasonally adjusted)

61.3

61.5

62.4 62.4 62.6 62.8 62.3 62.5 62.6 62.6 62.8 62.4 62.5 63.1

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

128

141 -246 -101

- Childcare

1

72

150

162

128

225

99

135

113

-81

-39

-31

8

41

50

3

-63

12 -115 -105

-71

-61

123

-3 -131

-67

-45

-91

-41

-19

-29

16

97

-21

- Education

-12

77

-81

-72 -146 -141 -213 -112 -118 -111 -108

-89 -107 -100

- Old age

148

54

93

89

109

68

95

103

171

102

161

109

88

111

- Rest

-53

-7

-92

-15

141

154

151

123

136

142

97

141

92

-83

- Housework

-2

128

32

69

Source: Statistics Korea

9. Financial markets 9.1 Stock market

The KOSPI rose 0.4 percent in September from 2,034.7 points to 2,043.6 points, and the KOSDAQ was up 2.6 percent from 663.7 points to 681.2 points.

The KOSPI rose in early September but later plunged due to concerns about a US rate hike and as Samsung Electronics shares fell following a recall of its Galaxy Note 7 smartphones. The index rebounded toward the end of the month, rising to a fresh yearly-high on September 29, as the Fed on September 22 kept its key rate unchanged.

KOSPI (points) 2,032.72 (Sep 1) → 2,066.53 (Sep 6) → 1,991.48 (Sep 12, monthly low) → 2,068.72 (Sep 29, yearly high) (Closing rate)

Stock price index (points) Market capitalization (trillion won) Average daily trade value (trillion won) Foreign stock ownership (%, %p)

Aug 2016 2,034.7

KOSPI Sep 2016 2,043.6

1,296.9 4.37 34.41

KOSDAQ Sep 2016 Change1 681.2 +17.5 (+2.6%)

Change1 +8.9 (+0.4%)

Aug 2016 663.7

1,301.8

+4.9 (+0.4%)

204.4

210.4

+6.0 (+2.9%)

4.55

+0.18 (+4.1%)

3.50

3.55

+0.05 (+1.4%)

34.47

+0.06 (+0.2%)

9.98

9.93

-0.05 (-0.5%)

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

October 2016

25

Stock prices 2,400 2,200

(monthly average)

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

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

KOSPI

2016.1

KOSDAQ

9.2 Exchange rate

The dollar-won exchange rate fell to 1,101.3 won at the end of September as investors’ risk appetite increased, the Fed decided to keep its interest rate unchanged and the Bank of Japan’s (BOJ) additional stimulus measures disappointed investors.

The 100 yen-won exchange rate rose in September to close the month at 1,092.3 won. The dollar-yen exchange rate dropped from 103.2 yen to 100.8 yen as investors were disappointed by the BOJ’s additional stimulus measures.

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

Dollar-Won

26

The Green Book : Current Economic Trends

2012.1

2013.1

2014.1

2015.1

2016.1

100 Yen-Won

(Closing rate)

2010 Dec

2011 Dec

2012 Dec

2013 Dec

2014 Dec

2015 Dec

Aug

2016 Sep

Change1

Dollar-Won

1,134.8

1,151.8

1,070.6

1,055.4

1,099.3

1,172.5

1,114.8

1,101.3

+1.2

100 Yen-Won

1,393.6

1,481.2

1,238.3

1,002.3

913.0

974.1

1,080.7

1,092.3

-1.1

1. Appreciation from the end of the previous year in September 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 rose in early September amid expectations for a US rate hike before falling back as the BOJ announced modest extra stimulus measures and as the Fed decided to keep its interest rate unchanged.

Interest rates

Source: Bank of Korea

10 (monthly average, yearly, %) 9 8 7 6 5 4 3 2 1

2006.1

2007.1

2008.1

2009.1

2010.1

Overnight call rate (daily)

2011.1

2012.1

2013.1

2014.1

2015.1

3-yr Treasury bond yield

2016.1

3-yr corporate bond yield

(Closing rate, %)

Call rate (1 day)

2010 Dec 2.51

2011 Dec 3.29

2012 Dec 2.77

2013 Dec 2.52

2014 Dec 2.03

2015 Dec 1.52

Jul 1.24

Aug 1.24

2016 Sep 1.25

Change1 +1

CD (91 days)

2.80

3.55

2.89

2.66

2.13

1.67

1.36

1.34

1.34

-

Treasury bonds (3 yrs)

3.38

3.34

2.82

2.86

2.10

1.66

1.22

1.31

1.25

-6

Corporate bonds (3 yrs)

4.27

4.21

3.29

3.29

2.43

2.11

1.64

1.69

1.67

-2

Treasury bonds (5 yrs)

4.08

3.46

2.97

3.23

2.28

1.81

1.24

1.35

1.25

-10

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

October 2016

27

9.4 Money supply and money market

M2 (monthly average) in July increased 6.9 percent from a year earlier, a slower pace than the previous month. Overseas sector credit expanded as foreigners’ security investment shifted to a net inflow. Private sector credit, led by bank lending, expanded at a slower pace compared to a year earlier.

(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

Lf³

8.2

5.3

7.8

6.9

2016

18.6

May 16.2

Jun 15.9

Jul 13.8

Jul1 735.1

6.6

8.6

6.7

7.1

6.9

2,348.3

7.0

9.7

7.7

7.9

7.6

3,239.3

1. Balance at end July 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

Total money supply Source: Bank of Korea 40 (y-o-y, monthly average balance, %)

30

20

10

0

-10

-20

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

Reserve money

2012.1

M1

2013.1

2014.1

2015.1

2016.1

Lf

Bank deposits shifted to an increase in August as instant access deposits (up 12.0 trillion won) and time deposits (up 1.0 trillion won) rose due to inflows of corporations’ short-term surplus funds and funds from local governments.

Asset management company (AMC) deposits decreased. Money market funds (MMFs) fell 3.9 trillion won as the government withdrew surplus funds, while equity funds decreased 2.3 trillion won as investors continued to sell shares to pocket profits.

28

The Green Book : Current Economic Trends

Deposits in financial institutions

Source: Bank of Korea

60 (m-o-m, 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)

2010

2011

2012

2013

2014

2015

Annual

Annual

Annual

Annual

Annual

Annual

Bank deposits

36.9

58.9

37.0

41.0

115.4

100.3

May 11.4

AMC deposits

-16.7

-16.6

18.8

17.7

42.4

44.4

13.9

Jun 14.3

2016 Jul -1.8

Aug 12.8

Aug1 1,430.5

-4.6

23.3

-1.4

484.5

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

10. Balance of payments

Korea’s current account (preliminary) in August posted a surplus of US $5.51 billion, staying in the black for 54 consecutive months.

The goods account surplus decreased month-on-month from US $10.78 billion to US $7.30 billion.

Growth in goods exports (y-o-y, %) -10.1 (Jul 2016) → -3.0 (Aug) Growth in goods imports (y-o-y, %) -15.1 (Jul 2016) → 0.6 (Aug)

October 2016

29

Export growth by item in August (y-o-y, %, customs clearance basis) 2.6 (total), 89.9 (vessels), 5.3 (steel), 2.5 (semiconductors), -9.0 (mobile phones), -14.8 (automobiles), -26.5 (petroleum products) Import growth by category in August (y-o-y, %, customs clearance basis) 0.7 (total), -5.2 (commodities), 5.9 (capital goods), 7.8 (consumer goods)

The services account deficit fell month-on-month from US $1.53 billion to US $1.45 billion, even though the intellectual property rights account shifted to a deficit, as the transportation account shifted to a surplus.

Services account (US $ billion, Jul → Aug) 0.00 → -0.14 (intellectual property rights), -0.30 → 0.04 (transportation), -1.28 → -1.28 (travel), -0.47 → -0.46 (other businesses), 0.77 → 0.77 (construction), -0.42 → -0.44 (manufacturing)

The primary income account surplus increased from US $0.05 billion to US $0.61 billion as the dividend income account turned to a surplus. The secondary income account deficit rose from US $0.62 billion to US $0.94 billion.

(US $ billion)

2015

2014

2016

Annual

Annual1

Q11

Q21

Q31

Q41

Aug1

Q11

Q21

Jul1

Aug1

Current account

84.37

105.87

22.44

27.92

29.11

26.41

8.55

24.08

25.79

8.67

5.51

- Goods balance

88.89

120.29

24.22

33.68

30.64

31.76

8.81

27.88

33.01

10.78

7.30

- Services balance

-3.68

-15.71

-4.39

-3.09

-3.56

-4.67

-1.01

-4.17

-4.13

-1.53

-1.45

- Primary income balance

4.15

5.90

3.83

-1.56

2.73

0.90

0.85

1.25

-1.90

0.05

0.61

- Secondary income balance

-4.98

-4.61

-1.22

-1.11

-0.70

-1.58

-0.10

-0.88

-1.18

-0.62

-0.94

1. Preliminary Source: Bank of Korea

The capital and financial account (preliminary) in August saw an outflow of US $7.70 billion.

Capital & financial account balance* (US $ billion) 9.05 (Aug 2015) → 9.50 (Feb 2016) → 12.24 (Mar) → 0.17 (Apr) → 8.93 (May) → 9.60 (Jun) → 9.39 (Jul) → 7.70 (Aug) * Positive figures represent net outflows, and negative figures represent net inflows.

Net outflows of FDI decreased from US $0.95 billion a month earlier to US $0.51 billion as Korean FDI (up US $2.20 billion → up US $2.16 billion) increased at a slower pace, while inbound FDI (up US $1.25 billion → up US $1.66 billion) rose at a faster pace.

Net outflows of portfolio investment rose from US $0.09 billion to US $6.75 billion, as Korean investment in foreign shares expanded at a faster pace (up US $4.62 billion → up US $8.37 billion), while foreign investment in Korean shares increased at a slower pace (up US $4.53 billion → up US $1.62 billion).

30

The Green Book : Current Economic Trends

Net inflows of financial derivatives investment were up from US $0.48 billion to US $1.18 billion. Other investment reversed from a net outflow of US $6.86 billion to a net inflow of US $1.46 billion.

The current account surplus is expected to increase in September as net exports rose to US $7.10 billion.

Current account balance

Source: Bank of Korea (balance of payments trends)

15 (US $ billion)

10

5

0

-5

2006.1

2007.1

2008.1

2009.1

2010.1

Goods account

2011.1

2012.1

2013.1

2014.1

2015.1

Services account

Capital & financial account balance

2016.1

Current account

Source: Bank of Korea (balance of payments trends)

15 (US $ billion)

10

5

0

-5

-10

-15

2006.1

2007.1

Direct investment

2008.1

2009.1

2010.1

Portfolio investment

2011.1

2012.1

2013.1

Financial derivatives

2014.1

2015.1

2016.1

Capital & financial account

October 2016

31

11. Prices

11.1 Consumer prices

Consumer prices in September rose 1.2 percent year-on-year and 0.6 percent month-on-month.

Consumer price inflation

(%)

2015 Oct

2016

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Year-on-Year

0.9

1.0

1.3

0.8

1.3

1.0

1.0

0.8

0.8

0.7

0.4

1.2

Month-on-Month

0.0

-0.1

0.3

0.0

0.8

-0.3

0.1

0.0

0.0

0.1

-0.1

0.6

Source: Statistics Korea

Consumer price inflation

Source: Statistics Korea (consumer price trends)

7 (%) 6 5 4 3 2 1 0 -1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Consumer price inflation (m-o-m)

2015.1

2016.1

Consumer price inflation (y-o-y)

Consumer price inflation accelerated in September. Agricultural, livestock & fishery product prices grew at a faster pace in September compared to the previous month (up 1.0% → up 10.2%) as vegetable prices rose due to unusually hot weather. Oil product prices fell month-on-month due to declining international oil prices, but fell at a slower pace compared to the same period last year (down 8.8% → down 7.0%) due to a low base effect.

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

0.4

Agricultural, livestock & fishery products 1.0

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

1.2 -

10.2 0.77

Total

Manufactured Oil products products -0.5 -8.8 0.0 0.00

Source: Statistics Korea

32

The Green Book : Current Economic Trends

-7.0 -0.29

Public utilities -12.6

Housing rents 2.5

Public services 1.0

Personal services 2.2

-13.9 -0.64

2.4 0.23

0.9 0.13

2.2 0.71

Consumer prices excluding oil and agricultural products rose 1.3 percent year-on-year, a faster pace than the previous month. Consumer prices excluding food and energy were up 1.8 percent after rising 1.7 percent in the previous month.

(Percentage change from same period in previous year)

2015

2016

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Consumer prices excluding oil and agricultural products

2.4

1.7

1.8

1.7

1.8

1.6

1.7

1.6

1.1

1.3

Consumer prices excluding food and energy

2.8

1.9

2.0

1.9

1.9

1.9

2.0

1.7

1.7

1.8

Source: Statistics Korea

Consumer prices for basic necessities rose 0.6 percent from a year earlier due to an increase in agricultural product prices. Fresh food prices rose 20.5 percent year-on-year.

(Percentage change from same period in previous year)

Consumer prices for basic necessities Fresh food prices

2015 Dec 0.6

Jan 0.2

Feb 0.9

Mar 0.4

Apr 0.5

2016 May 0.1

Jun 0.1

Jul 0.0

Aug -0.6

Sep 0.6

6.2

4.2

9.7

9.7

9.6

3.5

-1.7

-0.4

2.8

20.5

Source: Statistics Korea

11.2 International oil and commodity prices

International oil prices edged down in September amid concerns about a supply glut as the International Energy Agency (IEA) forecast the surplus in global oil markets to persist. However, oil prices rose at the end of the month as OPEC member countries agreed on September 28 to cut production.

Dubai crude (US $/barrel) 44.3 (1st week Sep) → 42.9 (2nd week) → 42.9 (3rd week) → 43.5 (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

2012.1

2013.1

2014.1

2015.1

2016.1

Dubai crude

WTI

October 2016

33

(US $/barrel, period average)

2014

2016

2015

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

May

Jun

Jul

Aug

Sep

Dubai crude

96.6

50.7

51.9

60.5

49.9

40.8

30.5

43.2

44.3

46.3

42.5

43.6

43.3

Brent crude

99.4

53.6

55.1

63.5

51.3

44.7

35.2

47.0

47.7

49.9

46.5

47.2

47.2

WTI crude

92.9

48.8

48.6

58.0

46.5

42.2

33.7

45.6

46.8

48.9

44.8

44.8

45.2

Source: Korea National Oil Corporation

Domestic gasoline prices fell slightly in September as changes in international oil prices were reflected with a time lag.

Domestic gasoline prices (won/liter) 1,408.3 (1st week Sep) → 1,408.7 (2nd week) → 1,408.5 (3rd week) → 1,407.2 (4th week) International gasoline prices (US $/barrel) 54.7 (4th week Aug) → 54.7 (5th week) → 55.8 (1st week Sep) → 55.0 (2nd week) Dollar-won exchange rate (won) 1,119.1 (4th week Aug) → 1,118.4 (5th week) → 1,102.6 (1st week Sep) → 1,110.0 (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

2014.1

Dubai crude (import prices, won, left)

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

May

Jun

Jul

Aug

Sep

Gasoline prices

1,827

1,510

1,485

1,543

1,544

1,468

1,363

1,396

1,389

1,438

1,437

1,412

1,408

Diesel prices

1,638

1,300

1,313

1,344

1,309

1,233

1,121

1,168

1,158

1,225

1,228

1,207

1,203

Source: Korea National Oil Corporation

34

The Green Book : Current Economic Trends

International corn prices rose as US corn production recorded 170.2 bushels per acre, falling short of the US Department of Agriculture’s (USDA) forecast of 175.1 bushels per acre.

International wheat prices fell after the USDA announced on September 2 that the US spring wheat harvest was 81 percent complete, a higher completion rate than the five-year average of 62 percent, leading to growing expectations that inventories would increase.

International grain price increases in September (monthly average, m-o-m, %) 3.2 (corn), -1.2 (wheat), -4.2 (soybean)

International copper and aluminum prices fell as inventory increased in China. China’s aluminum inventory as of the end of August increased 40,000 tons from the previous month to 300,000 tons, according to S&P Global Platts on September 1.

Nonferrous metal price increases in September (monthly average, m-o-m, %) -1.0 (copper), -3.1 (aluminum), -1.4 (nickel), 6.3 (tin), 5.5 (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

430 390

3000

350 310

2000

270 230

1000

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)

2016

2015 Q1

Q2

Q3

Q4

Q1

Q2

May

Jun

Jul

Aug

Sep

2,523 2,328 2,368 2,394 2,287 2,269 2,115 2,250 2,222 2,361 2,374 2,444 2,423

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

October 2016

35

12. Real estate market 12.1 Housing market

Housing prices nationwide rose 0.08 percent month-on-month in September.

Housing sales prices by region

Source: Korea Appraisal Board

3 (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

7

Seoul metropolitan area

2015.1

7

2016.1

7

Areas excluding Seoul metropolitan area

Housing sales prices

(Percentage change from previous period)

2015

2010 2011 2012 2013 2014

Annual Annual Annual Annual Annual Annual Aug

2016 Sep Annual Jun

Jul

Aug

Sep

Nationwide

1.9

6.9

0.0

0.3

1.7

3.5

0.3

0.3

0.3

0.04

0.04

0.07

0.08

Seoul metropolitan area

-1.7

0.5

-3.0

-1.1

1.5

4.4

0.3

0.4

0.7

0.15

0.14

0.16

0.15

Seoul

-1.2

0.3

-2.9

-1.4

1.1

4.6

0.4

0.4

1.3

0.22

0.23

0.26

0.26

Gangnamš

-1.0

0.3

-3.5

-1.1

1.2

5.2

0.4

0.5

1.5

0.31

0.29

0.30

0.33

Gangbuk²

-1.4

0.3

-2.3

-1.7

1.1

3.9

0.4

0.4

1.0

0.13

0.17

0.21

0.19

Areas excluding the Seoul metropolitan area

6.4

15.1

3.1

1.7

1.9

2.7

0.2

0.3

-0.1

-0.05 -0.04 -0.01

0.02

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

2. Northern Seoul

Housing prices rose 0.15 percent in the Seoul metropolitan area, which includes Seoul (up 0.3%), Gyeonggi Province (up 0.1%) and Incheon (up 0.1%).

Housing prices rose 0.02 percent in areas excluding the Seoul metropolitan area, which include the five metropolitan cities (up 0.1%) and the eight provinces (up 0.0%).

36

The Green Book : Current Economic Trends

Housing price increases in five metropolitan cities (m-o-m, %) Busan (0.3), Daegu (-0.1), Gwangju (0.0), Daejeon (0.0), Ulsan (0.0)

Housing rental prices nationwide rose 0.1 percent month-on-month in September. Rental prices increased 0.1 percent in the Seoul metropolitan area and continued to stay stable in areas excluding the Seoul metropolitan area.

Housing rental price increases in major districts in Seoul (m-o-m, %) Seocho (-0.1), Songpa (0.0), Gangdong (-0.1), Mapo (0.4), Yangcheon (0.3)

Housing 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

2015.1

Seoul metropolitan area

7

2016.1

7

Areas excluding Seoul metropolitan area

Housing rental prices

(Percentage change from previous period)

2015

2010 2011 2012 2013 2014

Annual Annual Annual Annual Annual Annual Aug

2016 Sep Annual Jun

Jul

Aug

Sep

Nationwide

7.1

12.3

3.5

4.7

3.4

4.8

0.3

0.4

0.9

0.1

0.1

0.1

0.1

Seoul metropolitan area

6.3

11.0

2.1

6.2

4.7

7.1

0.4

0.6

1.6

0.2

0.2

0.2

0.1

Seoul

6.4

10.8

2.1

6.6

3.6

7.2

0.5

0.7

1.4

0.2

0.2

0.1

0.1

Gangnamš

7.6

11.1

2.4

6.7

3.3

7.9

0.4

0.7

1.3

0.2

0.2

0.1

0.1

Gangbuk²

5.1

10.6

1.8

6.4

3.8

6.5

0.5

0.7

1.6

0.2

0.2

0.2

0.2

Areas excluding the Seoul metropolitan area

9.2

14.5

4.6

3.3

2.2

2.8

0.2

0.3

0.4

0.0

0.0

0.0

0.0

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

2. Northern Seoul

There were 98,130 housing transactions in August, up 2.7 percent from a month earlier (95,578) and 4.3 percent from a year ago (94,110).

October 2016

37

Monthly housing transactions 160

Source: Ministry of Land, Infrastructure and Transport

(thousands)

140 120 100 80 60 40 20 0

2009.1

7

2010.1

7

2011.1

7

Nationwide

2012.1

7

2013.1

7

2014.1

7

2015.1

Seoul metropolitan area

7

2016.1

Areas excluding Seoul metropolitan area

Housing sales transactions 2011

2012

2013

(Thousands)

2014

2016

2015

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

Nationwide

82

61

71

84

7

99

94

86

106

98

88

62

59

78

86

89

Jul Aug

93

96

98

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

12.2 Land market

Land prices nationwide rose 0.23 percent month-on-month in August.

Land prices 2010

(Percentage change from previous period)

2011

2012

2013

2015

2014

2016

Q2

Q3

Q4

Annual

Q1

Q2

Jun

Jul

Aug

Nationwide

1.05

1.17

0.96

1.14

1.96

2.40

0.59

0.60

0.72

1.73

0.56

0.68

0.25

0.24

0.23

Seoul

0.53

0.97

0.38

1.21

2.66

2.69

0.69

0.69

0.72

1.90

0.57

0.76

0.28

0.28

0.27

Gyeonggi

1.49

1.47

1.04

0.91

1.24

1.73

0.41

0.43

0.52

1.38

0.37

0.58

0.22

0.22

0.21

Incheon

1.43

0.66

0.46

0.87

1.35

1.95

0.53

0.54

0.50

1.15

0.34

0.48

0.16

0.18

0.15

Annual Annual Annual Annual Annual Annual

Source: Korea Appraisal Board

Land prices increased 0.23 percent in the Seoul metropolitan area, led by Seoul (up 0.27%) and Incheon (up 0.15%).

38

The Green Book : Current Economic Trends

Land price increases in Seoul metropolitan area (m-o-m, %) 0.14 (Feb 2016) → 0.18 (Mar) → 0.20 (Apr) → 0.21 (May) → 0.24 (Jun) → 0.25 (Jul) → 0.23 (Aug)

Land prices rose 0.24 percent in areas excluding the Seoul metropolitan area, led by Busan (up 0.34%), Daejeon (up 0.28%) and Gwangju (up 0.21%).

Land price increases in areas excluding Seoul metropolitan area (m-o-m, %) 0.22 (Feb 2016) → 0.27 (Mar) → 0.24 (Apr) → 0.24 (May) → 0.25 (Jun) → 0.24 (Jul) → 0.24 (Aug)

There were 266,000 land transactions in August, up 3.2 percent from the previous month and 10.4 percent from a year ago (241,000).

Land transactions nationwide increased month-on-month, led by Seoul (up 2.4%), Incheon (up 4.2%), Busan (up 8.6%) and Gangwon Province (up 10.4%).

Vacant land transactions, which accounted for 34.6 percent of total land transactions, recorded 92,000, down 0.7 percent month-on-month and up 6.7 percent compared with a year ago (86,000).

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 2012

2013

(Land lots, thousands)

2014

2015

Annual1 Annual1 Annual1 Annual1 Aug

Nationwide 170

2016.1

2016

Sep

Oct

Nov Dec

Jan

Feb Mar Apr May Jun

Jul

Aug

187

220

257

241

229

263

259

274

207

191

248

245

253

262

258

266

Seoul

13

17

22

30

29

27

31

29

28

21

20

26

28

31

34

37

38

Gyeonggi

33

37

46

58

56

58

63

61

62

48

44

56

57

59

65

69

70

Incheon

8

8

10

12

13

12

14

13

12

8

8

10

12

13

13

15

15

1. Monthly average Source: Korea Land & Housing Corporation

October 2016

39

13. Composite indices of business cycle indicators

Industrial output in August decreased 0.1 percent month-on-month and increased 5.0 percent year-onyear. Output rose month-on-month in services (up 0.7%), construction (up 3.2%) and public administration (up 1.8%), and fell in mining & manufacturing (down 2.4%).

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 Jan

Feb

Mar

Apr

May

Jun1

Jul1

Aug1

-1.4 1.7

0.7 2.5

0.7 2.4

-0.7 0.8

2.0 5.0

0.7 4.8

0.0 3.4

-0.1 5.0

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

119.3 -0.1

119.4 0.1

119.5 0.1

119.8 0.3

120.4 0.5

121.0 0.5

121.8 0.7

122.4 0.5

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

100.3 -0.3

100.2 -0.1

100.0 -0.2

100.0 0.0

100.3 0.3

100.5 0.2

100.9 0.4

101.1 0.2

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

123.4 0.2

123.5 0.1

123.9 0.3

124.5 0.5

124.9 0.3

125.3 0.3

125.8 0.4

126.6 0.6

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

100.5 -0.3

100.3 -0.2

100.3 0.0

100.4 0.1

100.4 0.0

100.3 -0.1

100.4 0.1

100.7 0.3

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 month-on-month to 101.1.

Five components of the coincident composite index, including the value of construction completed, imports and service output increased, while mining & manufacturing production and domestic shipments decreased.

40

The Green Book : Current Economic Trends

Components of the coincident composite index in August (m-o-m) value of construction completed (2.3%), imports (1.2%), service output (0.5%), nonfarm payroll employment (0.4%), retail sales (0.2%), mining & manufacturing production (-0.5%), domestic shipments (-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 rose 0.3 points month-on-month to 100.7. Seven components of the leading composite index, including the value of construction orders received, domestic shipments of machinery, the ratio of job openings to job seekers and the KOSPI, were up, while spreads between long & short term interest rates were down.

Components of the leading composite index in August (m-o-m) value of construction orders received (19.7%), domestic shipments of machinery (1.6%), ratio of job openings to job seekers (1.4%p), KOSPI (1.2%), consumer expectations index (0.9p), inventory circulation indicator (0.7%p), ratio of export to import prices (0.1%), spreads between long & short term interest rates (-0.01%p)

Cyclical indicator of leading 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

October 2016

41

Policy Issue

Restructuring frameworks for steel and petrochemical industries

Restructuring Frameworks for Steel and Petrochemical Industries

The government unveiled its frameworks for restructuring the steel and petrochemical industries on September 30. The two industries, along with the shipping and shipbuilding industries, are the focuses of the government’s industrial restructuring.

Restructuring frameworks for steel industry 1. Current situation and outlook lthough the global steel industry depends on domestic demand due to low prices and high shipping costs, A Korea and Japan have been major exporters backed by lower prices and high quality. However, there has been an issue of global oversupply in line with a slowdown in demand from China, as well as tightening import restriction measures in other countries. Furthermore, regulations on the industry are getting stricter with environmental regulations regarding greenhouse gas emissions being tough, and demands for steel products are expected to decrease as the development of steel-replacing materials, such as aluminum products and carbon fibers, is accelerating.

Competition in domestic markets is getting fierce as new manufacturers enter markets and imports from China increase. Integrated iron steel mills remain competitive, even compared with major global players, but forging manufacturers have been suffering.

2. Frameworks for restructuring Restructure businesses - Steel sheets: Promote the restructuring of businesses through M&As between domestic companies and encourage exporters to acquire factories located in export destinations - Steel plates: Support the reduction of production facilities

October 2016

43

Develop high value-added materials - Promote R&D for the early development of value-added steel materials and lightweight materials, in particular titanium alloys, magnesium alloys and aluminum alloys

Upgrade production facilities - Develop eco-friendly steelmaking methods: Hydrogen Reduction Iron and Steel Making, which will reduce carbon dioxide emissions by 15 percent, and technologies to recycle iron waste and use by-products - Use IT and develop a state-of-the-art production management system

Explore new export markets - Transform the industry from the one producing common steel products to the one making high valueadded products and providing technical and maintenance services - Promote the sales of non-operating plants to foreign manufacturers - Establish a tracking system for newly developed steel materials, which will provide information gathered from material suppliers, facilities builders and end users, in order to ensure that the prices and qualities are good enough to be exported - Promote an export partnership between steel manufacturers and facilities builders, in particular power plant constructors - Promote a partnership between steel manufacturers and parts manufacturing SMEs when steel manufacturers set up processing centers overseas

Improve trade environment - Form a joint public-private committee to swiftly respond to import restrictions - Utilize bilateral as well as multilateral trade negotiations - Closely monitor markets, especially those for major export items - Raise the national standards (KS) for structural steel to ensure the safety of buildings and avoid the import of low quality materials - Carry out a government-wide investigation into the distribution of fraudulent products, including those with a fake KS and country of origin certificates

Restructuring frameworks for petrochemical industry The industry The petrochemical industry is a process industry which produces materials important to other manufacturers, such as those making plastics, textiles and cosmetics. The cost of raw materials is the most crucial factor behind the competitiveness of the industry as raw materials account for 70 percent of

44

Policy Issue

the total manufacturing costs, in particular naphtha, whose price fluctuates in line with oil prices. Energy efficiency is another factor that influences the industry’s competitiveness as energy costs also account for a fair portion of the total costs.

1. Current situation and outlook The industry is working to achieve economies of scale, a cost advantage backed by larger production capacity. Newly constructed naphtha cracking centers (NCCs) have much larger capacities, most of them producing more than 1 million tons a year and some of them around 3 million tons. However, petrochemical markets are expected to remain stable until 2020, given sluggish demand due to a slow global economic recovery and a limited increase in supply amid low oil prices.

Meanwhile restructuring is under way globally: China is working on developing the industry in terms of quality as well as size, the US and EU are working on business restructuring with their focuses on strengthening core competencies, the Japanese government is working in partnership with the private sector to restructure the industry and develop high value-added businesses, and the Middle East is working to change their major exports from crude oil to petrochemical products.

Korea is the fourth largest petrochemical production country following the US, China and Saudi Arabia.

Most of the country’s NCCs have a world class producing capacity, processing more than 1 million tons a year. Furthermore the country’s NCCs are located in three industrial complexes, which makes it easy for other industries to use petrochemical materials. However, there are oversupply issues regarding purified terephthalic acid (PTA), polystyrene (PS), butadiene rubber (BR), styrene butadiene rubber (SBR) and polyvinyl chloride (PVC) as China and India are becoming more and more self-sufficient of those materials.

2. Frameworks for restructuring - Pursue economies of scale to deal with high raw material costs - Early start business restructuring to avoid oversupply, and accelerate the development of high valueadded products - Promote the use of raw materials other than oil to reduce costs, as well as the establishment of a joint business with raw material exporters - Support the development of core technologies important to produce high value-added materials - Promote R&D by providing tax support as well as commercialization support - Create industrial clusters specific to precision chemical manufacturing

October 2016

45

Economic News Briefing

Government announces three framework policies to respond to global trade challenges Korea ranks 26th in global competitiveness report Korea issues new 50-year KTBs FDI up 13.4% in Jan-Sep period Korea to ease listing rules for tech startups Korea and UK agree to work together for bilateral trade 46

Economic News Briefing

Government announces three framework policies to respond to global trade challenges Deputy Prime Minister Yoo Il Ho presided over the 184th Ministerial Meeting on International Economic Affairs on October 11, and discussed three framework policies that the government has come up with to ride out changes in the global trade environment. The three frameworks include the following: effectively dealing with protectionism, providing all-round support to help open markets in emerging economies, and taking the lead in new trade frameworks.

Other issues discussed at the meeting included the Trade in Services Agreement (TISA), a multilateral services trade agreement in which 23 countries are expected to take part. The Deputy Prime Minister mentioned that the government will work to make the agreement an opportunity to remove barriers to services markets in developing countries, in particular contents, healthcare and construction services markets.

Korea ranks 26th in global competitiveness report Korea ranked 26th in this year’s World Economic Forum (WEF) Global Competitiveness Report, the same place as last year’s, as Korea’s ranking remained unchanged in the “innovation and sophistication factors” (22nd), and fell slightly in the “basic requirements” (18th → 19th) and “efficiency enhancers” (25th → 26th). Korea’s ranking improved in seven of 12 sets of indicators, including “macroeconomic environment” (5th → 3rd) and “infrastructure” (13th → 10th), and fell in four, including “health and primary education” (23rd → 29th) and “innovation” (19th → 20th).

Korea issues new 50-year KTBs The Ministry of Strategy and Finance (MOSF) issued its first 50-year Korea Treasury Bonds (KTBs), worth 1.1 trillion won, at a rate of 1.535 percent, 4 basis points higher than the 10-year KTB yield of 1.495 percent. The government expects the ultra long-term bonds to help the nation better plan longterm financing.

October 2016

47

FDI up 13.4% in Jan-Sep period Foreign direct investment (FDI) in the first three quarters of 2016 increased 13.4 percent compared to a year ago to a record high level of US $15.05 billion (according to prior notification). FDI in manufacturing rose 46.2 percent to US $4.32 billion during the same period, and investment in services rose 14.9 percent to US $10.23 billion. By country, investment from the EU surged 194.8 percent to US $5.32 billion, while FDI from Japan declined 25.8 percent to US $0.89 billion.

Korea to ease listing rules for tech startups The Financial Services Commission (FSC) announced on October 6 that it will revise market listing requirements in order to make it easier for tech startups to raise funds through the stock market. The FSC will allow promising startups to apply for initial public offerings (IPOs) in the KOSDAQ market as long as they fulfill basic requirements including a market capitalization of 50 billion won or more, at least 30 billion won in revenue and an average sales growth rate for the past two years of at least 20 percent.

Korea and UK agree to work together for bilateral trade Deputy Prime Minister Yoo Il Ho held talks with UK Chancellor of the Exchequer Philip Hammond on October 7, while attending the 2016 IMF/WB Annual Meetings. The two leaders talked about bilateral trade and economic cooperation after the UK leaves the EU, and made sure that Korea and the UK will further strengthen economic cooperation, including trade. In particular, the two countries agreed to work together for successful Korea-UK free trade negotiations.

Deputy Prime Minister Yoo stressed the importance of restructuring in order for the global economy to continue to recover and increase its growth potential. UK Chancellor of the Exchequer Hammond agreed with him, sharing Spain’s labor market restructuring after the financial crisis as a success story.

Regarding protectionist movements, both leaders agreed on the importance of free trade and the need to strengthen cooperation among the G20 countries to prevent the spread of protectionism.

48

Economic News Briefing

Statistical Appendices

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

1. National accounts Period

Agri., fores. & fisheries

Manufacturing

Final consumption expenditure

Gross fixed capital formation Construction

Facilities

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 Ⅲ 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 Ⅲ

2.8 3.3 2.7

-2.4 1.5 -3.9

1.9 2.2 0.7

2.7 3.4 2.9

3.0 5.3 5.4

9.6 10.8 11.9

-4.5 -2.7 -4.5

p: Preliminary Source: Bank of Korea

50

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

Real GDP

Statistical Appendices

2. Production, shipment and inventory Period

Production index*

Shipment index*

y-o-y change (%)

Inventory index*

y-o-y change (%)

(constant prices, 2010=100)

Service production index

y-o-y change (%)

y-o-y change (%)

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 Ⅱ

105.5 109.5

-0.2 1.0

105.2 109.5

-0.8 1.3

136.1 131.1

3.0 -2.2

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 5 6 7p 8p

105.7 98.2 112.5 107.1 110.1 111.3 110.4 103.7

-2.2 2.3 -0.5 -2.5 4.7 0.9 1.6 2.3

103.9 97.5 114.2 108.0 109.5 111.0 108.4 104.2

-3.9 0.9 0.9 -1.5 3.9 1.6 0.8 2.1

136.9 136.6 136.1 132.4 133.5 131.1 133.8 130.2

4.3 3.6 3.0 -1.0 0.4 -2.2 -2.4 -4.8

110.1 107.6 115.8 113.9 115.6 117.4 115.1 115.8

3.0 2.8 2.5 2.0 3.7 5.4 3.0 4.7

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

October 2016

51

3. Production capacity and operation ratio Period

Production capacity index* (2010=100) y-o-y change (%)

y-o-y change (%)

Average operation ratio* (%)

2013 2014 2015

108.6 110.4 111.7

1.6 1.7 1.2

95.1 94.3 92.1

-2.5 -0.8 -2.3

76.5 76.2 74.3

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 Ⅱ

112.0 112.0

0.4 0.4

88.6 92.1

-1.6 -3.0

73.2 72.2

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

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

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

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

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

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

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

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

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

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

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

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

2016 1 2 3 4 5 6 7p 8p

111.8 111.9 112.2 112.1 112.0 111.9 112.0 112.1

0.3 0.5 0.4 0.5 0.4 0.2 0.4 0.5

89.0 81.2 95.6 90.1 92.8 93.3 92.2 83.9

-4.1 0.2 -0.7 -5.9 1.1 -3.9 -2.6 -2.4

72.3 73.5 73.8 71.3 73.1 72.2 73.8 70.4

* Manufacturing industry p: Preliminary Source: Statistics Korea

52

Operation ratio index* (2010=100)

Statistical Appendices

4. Consumer goods sales index

(constant prices, 2010=100)

Consumer goods sales index Durable goods Semi-durable goods

Period

y-o-y change (%)

y-o-y change (%)

Nondurable goods

y-o-y change (%)

y-o-y change (%)

2013 2014 2015

107.9 110.1 114.4

0.7 2.0 3.9

116.7 122.7 135.2

0.3 5.1 10.2

106.1 105.3 104.0

2.1 -0.8 -1.2

104.7 106.4 109.1

0.4 1.6 2.5

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 Ⅱ

113.8 119.7

4.6 6.2

133.8 146.7

5.6 11.1

100.5 107.9

2.7 4.6

110.2 112.2

4.9 4.2

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 5 6 7p 8p

112.9 108.6 119.8 116.5 122.9 119.6 118.1 116.9

4.6 3.2 5.8 4.2 5.4 9.1 4.4 6.0

125.3 125.0 151.1 139.3 146.0 154.9 141.2 137.7

-2.3 6.6 12.3 7.8 12.0 13.6 0.7 6.6

101.6 93.1 106.7 109.4 115.1 99.1 98.8 90.0

4.1 1.7 2.0 2.1 0.7 12.2 7.4 2.2

112.0 107.8 110.9 109.0 115.5 112.0 115.7 119.0

8.8 2.2 3.7 3.1 4.0 5.4 5.5 7.0

p: Preliminary Source: Statistics Korea

October 2016

53

5. Consumer goods shipment index and consumer sentiment index

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

Period 2013 2014 2015

102.2 102.0 104.4

-0.3 -0.2 2.4

103.4 102.7 106.0

0.6 -0.7 3.2

101.7 101.8 103.7

-0.7 0.1 1.9

-

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 Ⅱ

104.5 104.8

3.1 4.3

101.8 106.3

1.8 3.6

105.7 104.2

3.6 4.6

-

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

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

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

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

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

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

-4.2 -0.8 1.9 3.4 -0.5 3.8 2.9 -1.7 1.4 -2.9 -2.6 1.2

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

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

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

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

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

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

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

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

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

2016 1 2 3 4 5 6 7p 8pp 9p

106.2 95.0 112.4 106.3 103.6 104.5 102.0 104.3 -

1.6 1.0 6.5 1.1 5.7 6.1 -1.2 1.2 -

96.8 92.8 115.8 106.7 102.2 110.0 92.5 89.7 -

-4.5 0.0 9.6 -0.4 4.1 7.3 -13.6 -13.4 -

110.3 95.9 110.9 106.1 104.2 102.2 106.0 110.5 -

4.3 1.3 5.2 1.8 6.3 5.7 4.3 7.4 -

100 98 100 101 99 99 101 102 102

p: Preliminary Source: Statistics Korea

54

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 Ⅱ

6,486 6,810

0.9 -2.9

635 569

56.9 15.4

5,851 6,241

-2.9 -4.3

100.1 113.7

-7.1 0.8

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 5 6 7p 8p

1,758 2,275 2,453 1,987 2,135 2,688 2,012 1,629

-24.0 22.7 8.4 -28.2 1.9 24.7 0.4 -3.3

69 255 312 189 169 211 52 80

-40.7 80.7 110.8 49.3 -14.2 24.6 -61.3 -50.0

1,689 2,020 2,142 1,798 1,966 2,477 1,961 1,549

-23.1 18.0 1.2 -31.9 3.5 24.8 4.8 1.6

96.9 90.7 112.7 110.3 110.4 120.5 104.7 109.7

-6.0 -7.9 -7.2 -2.8 3.0 2.4 -12.3 3.6

p: Preliminary Source: Statistics Korea

October 2016

55

7. Value of construction completed and domestic construction orders received

(current value, billion won)

Period

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

y-o-y change (%)

y-o-y change (%)

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

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

y-o-y change (%)

2013 2014 2015

98,089 98,491 99,967

10.6 0.4 1.5

34,459 32,015 30,694

1.9 -7.1 -4.1

59,714 62,413 65,114

18.0 4.5 4.3

77,885 90,606 134,338

-12.9 16.3 48.3

24,736 26,427 28,778

-5.1 6.8 8.9

50,947 62,115 102,449

-14.8 21.9 65.0

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 Ⅱ

24,191 30,026

13.5 19.9

6,711 8,136

1.8 -0.7

16,209 20,505

16.0 29.3

28,927 32,992

13.8 -6.3

7,812 5,570

70.1 -38.6

20,406 26,678

-0.6 4.1

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1,318 1,135 2,140 2,585 2,458 4,026 1,791 1,921 1,188 1,803 3,296 5,115

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

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

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

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

7,359 7,273 9,559 8,983 9,460 11,583 9,575 9,953

7.8 8.7 22.5 16.5 21.8 21.2 21.3 25.4

2,042 1,970 2,699 2,316 2,350 3,469 2,236 2,327

0.2 -5.9 9.6 -6.1 1.1 2.1 -2.1 5.5

5,003 4,948 6,257 6,269 6,703 7,533 6,968 7,251

9.5 13.0 24.6 26.9 30.6 30.1 30.2 33.4

7,225 10,014 11,687 10,828 9,657 12,507 12,655 13,391

-3.9 84.3 -6.3 19.6 -23.6 -7.5 45.7 54.6

2,691 2,347 2,774 1,190 2,126 2,254 3,282 3,511

104.1 106.8 29.6 -54.0 -13.5 -44.0 83.2 82.8

4,260 7,586 8,559 9,271 7,412 9,995 8,426 9,376

-30.0 79.8 -16.4 44.5 -26.5 9.5 23.6 45.8

p: Preliminary Source: Statistics Korea

56

Type of order Public Private

Statistical Appendices

8. Composite indices of business cycle indicators and BSI Period

Leading index (2010=100)

Cyclical indicator of leading index (2010=100)

Coincident index (2010=100)

Cyclical indicator of coincident index (2010=100)

BSI (results)

BSI (prospects)

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 4 5p 6p 7p 8p 9 10

123.4 123.5 123.9 124.5 124.9 125.3 125.8 126.6 -

100.5 100.3 100.3 100.4 100.4 100.3 100.4 100.7 -

119.3 119.4 119.5 119.8 120.4 121.0 121.8 122.4 -

100.3 100.2 100.0 100.0 100.3 100.5 100.9 101.1 -

92.1 87.0 94.2 97.3 97.1 91.3 89.7 90.0 92.0 -

93.2 86.3 98.3 95.7 102.3 94.8 90.5 89.5 95.0 96.0

Sources: Statistics Korea, Federation of Korean Industries

October 2016

57

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 25,794.6

27,884.2 33,005.9

118,001.5 127,882.2

90,117.3 94,876.3

-4,172.6 -4,132.5

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 7 8

6,820.9 7,169.7 10,085.5 3,371.7 10,361.3 12,061.6 8,671.6 5,513.2

7,899.7 7,539.0 12,445.5 9,559.3 10,737.6 12,709.0 10,778.2 7,296.4

37,227.8 36,231.7 44,542.0 40,313.0 42,426.0 45,143.2 42,476.6 41,698.9

29,328.1 28,692.7 32,096.5 30,753.7 31,688.4 32,434.2 31,698.4 34,402.5

-1,934.2 -1,242.1 -996.3 -1,617.9 -1,135.2 -1,379.4 -1,532.4 -1,453.3

1,253.4 852.1 -856.2 -4,066.2 908.7 1,256.2 49.0 613.5

-398.0 20.7 -507.5 -503.5 -149.8 -524.2 -623.2 -943.4

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

58

(US $ million)

Statistical Appendices

10. Balance of payments ( II)

(US $ million)

Period

Financial account*

Direct investment

Portfolio investment

Financial derivatives

Other investment

Reserve assets

Capital account

2013 2014 2015p

80,104.6 89,334.0 109,730.0

15,593.2 18,765.6 22,597.8

9,344.5 30,608.9 48,592.8

-4,410.3 -3,826.9 2,532.5

43,281.1 25,900.6 23,954.3

16,296.1 17,885.8 12,052.6

-27.0 -8.9 -64.7

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 7 8

6,478.9 9,503.0 12,236.1 167.1 8,928.1 9,599.3 9,388.0 7,698.7

-71.5 1,554.4 3,587.4 -143.4 715.8 1,475.4 949.2 506.8

4,650.7 6,199.9 5,868.5 3,360.8 4,358.8 6,198.2 90.7 6,745.8

1,214.5 756.6 785.7 -1,033.1 -463.7 365.6 -482.6 -1,180.2

302.9 2,557.8 2,097.4 -3,333.8 3,915.7 2,329.7 6,863.9 -1,462.7

382.3 -1,565.7 -102.9 1,316.6 401.5 -769.6 1,966.8 3,089.0

-6.1 -2.3 -3.2 -5.0 1.0 -3.0 2.7 17.1

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

October 2016

59

11. Prices Period

(2010=100)

All items y-o-y change (%)

y-o-y change (%)

Producer prices All items Commodities

Core

y-o-y change (%)

y-o-y change (%)

y-o-y change (%)

y-o-y change (%)

2013 2014 2015

107.7 109.0 109.8

1.3 1.3 0.7

110.1 111.1 110.3

1.0 0.9 -0.7

105.8 107.4 109.4

1.5 1.6 1.8

106.6 108.8 111.1

1.6 2.0 2.2

105.7 105.2 101.0

-1.6 -0.5 -4.0

106.2 104.8 98.0

-2.5 -1.4 -6.4

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

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

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

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

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

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

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

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

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

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

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

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

-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 8 9

110.3 110.8 110.5 110.6 110.7 110.7 110.8 110.7 111.4

0.8 1.3 1.0 1.0 0.8 0.8 0.7 0.4 1.2

109.7 110.5 109.6 109.6 109.5 109.5 109.5 108.9 110.5

-1.1 -0.1 -0.6 -0.4 -1.1 -1.1 -0.7 -1.5 0.3

110.8 111.0 111.2 111.4 111.6 111.6 111.9 112.1 112.1

2.4 2.4 2.3 2.2 2.2 2.2 1.9 1.9 1.9

112.2 112.5 112.5 112.7 112.9 113.0 113.1 112.8 112.8

1.7 1.8 1.7 1.8 1.6 1.7 1.6 1.1 1.3

98.5 98.5 98.4 98.7 98.8 99.0 98.9 99.0 99.2

-3.3 -3.4 -3.3 -3.0 -3.0 -2.7 -2.5 -1.8 -1.1

94.0 93.9 93.8 94.1 94.3 94.6 94.4 94.4 94.7

-5.7 -5.9 -5.7 -5.2 -5.1 -4.7 -4.3 -3.4 -2.4

Source: Bank of Korea

60

Consumer prices Commodities Services

Statistical Appendices

12. Employment Period

Economically active persons (thousands)

y-o-y change (%)

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

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 8 9

26,433 26,734 26,955 27,228 27,455 27,563 27,578 27,524 27,516

1.3 1.3 1.4 1.0 0.9 1.1 1.0 1.7 1.4

25,445 25,418 25,800 26,153 26,450 26,559 26,603 26,528 26,531

1.4 0.9 1.2 1.0 1.0 1.4 1.1 1.5 1.0

4,566 4,541 4,525 4,503 4,514 4,493 4,464 4,418 4,436

3.3 2.4 2.8 1.1 1.1 0.3 -1.4 -1.6 -1.7

19,955 19,885 20,028 20,263 20,483 20,593 20,719 20,677 20,653

1.3 0.9 1.0 1.3 1.5 2.1 2.3 2.6 2.0

3.7 4.9 4.3 3.9 3.7 3.6 3.5 3.6 3.6

Source: Statistics Korea

October 2016

61

13. Financial indicators Call rate (1 day)

CDs (91 days)

2012 7 8 9 10 11 12

3.1 3.0 3.0 2.8 2.8 2.8

3.3 3.2 3.1 2.9 2.9 2.9

3.6 3.4 3.3 3.3 3.3 3.3

3.0 2.8 2.8 2.8 2.8 2.9

3.1 2.9 2.9 2.9 2.9 3.0

1,881.99 1,905.12 1,996.21 1,912.06 1,932.90 1,997.05

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

2.8 2.8 2.7 2.8 2.6 2.5 2.5 2.5 2.5 2.5 2.5 2.5

2.9 2.8 2.8 2.8 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7

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

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

2.9 2.8 2.7 2.6 2.7 3.1 3.2 3.3 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 8 9

1.5 1.5 1.5 1.5 1.5 1.3 1.2 1.2 1.2

1.7 1.6 1.6 1.6 1.6 1.4 1.4 1.4 1.3

2.1 2.0 2.0 1.9 1.9 1.8 1.7 1.7 1.7

1.6 1.5 1.5 1.5 1.5 1.3 1.2 1.2 1.3

1.8 1.6 1.6 1.6 1.6 1.4 1.3 1.3 1.4

1,912.06 1,916.66 1,995.85 1,994.15 1,983.40 1,970.35 2,016.19 2,034.65 2,043.63

Period

Source: Bank of Korea

62

(period average)

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

Statistical Appendices

Treasury bonds (3 years)

Treasury bonds (5 years)

Stock KOSPI (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 7 8

131,279.3 134,913.0 132,957.9 135,038.9 135,971.3 135,758.4 135,906.7 139,073.9

15.9 15.8 14.6 17.3 15.5 14.4 11.4 14.1

699,767.3 708,014.0 713,861.2 720,818.5 722,544.4 730,637.8 735,172.2 738,120.9

20.7 19.4 18.8 18.0 16.2 15.9 13.8 13.0

2,261,356.4 2,285,313.5 2,294,544.7 2,299,081.3 2,312,801.2 2,334,256.2 2,352,245.1 2,377,323.1

8.1 8.3 7.8 7.0 6.7 7.1 6.9 7.2

3,110,535.8 3,133,492.2 3,158,687.8 3,170,277.9 3,189,899.3 3,223,154.5 3,242,338.3 3,270,365.6

8.9 8.9 8.6 8.0 7.7 7.9 7.6 8.0

Source: Bank of Korea

October 2016

63

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 8 9

1,208.4 1,235.4 1,153.5 1,143.9 1,190.6 1,164.7 1,125.7 1,118.5 1,096.3

10.8 12.4 4.4 7.1 7.5 3.6 -3.5 -4.9 -8.2

1,017.1 1,085.8 1,026.0 1,058.2 1,072.8 1,132.2 1,073.7 1,086.3 1,083.7

10.4 17.9 11.5 17.9 19.9 23.4 14.3 12.0 8.7

1,322.2 1,348.3 1,307.4 1,298.4 1,326.8 1,295.5 1,246.7 1,246.9 1,230.3

7.0 9.6 9.2 9.4 9.2 2.8 -2.3 -5.3 -8.5

Source: Bank of Korea

64

(end-period)

US $/ \

Statistical Appendices

Jangseung A jangseung is a traditional Korean totem pole usually made of wood. Jangseungs were generally placed at village entrances to mark village boundaries and ward off bad luck. They were also placed on roadsides as mileposts.

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