201612

Page 1

ISSN 2287-7266

Republic of Korea

eb.kdi.re.kr

Vol.38 No.12 December 2016

CONOMIC U L L E T I N

The Green Book: Current Economic Trends Policy Issue

2017 Economic Policies

Economic News Briefing

Government to Frontload 68% of Budget in First Half of 2017 Korea Grows 0.6% in Q3 Economy Picks Up in 2018 according to the OECD Korea Tops ICT Development Index for Second Consecutive Year

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

21

08. Employment

23

09. Financial markets

27

9.1 Stock market

27

9.2 Exchange rate

28

9.3 Bond market

28

9.4 Money supply and money market

29

10. Balance of payments

31

11. Prices

33

11.1 Consumer prices

33

11.2 International oil and commodity prices

35

12. Real estate market

38

12.1 Housing market

38

12.2 Land market

40

13. Composite indices of business cycle indicators

contents

42

44 Policy Issue 2017 economic policies

49 Economic News Briefing 2017 budget approved at the National Assembly Government to frontload 68% of budget in first half of 2017 Korea grows 0.6% in Q3 (preliminary) External debt rises to US $400.4 bn in Q3 Economy picks up in 2018 according to the OECD Daily transactions in won-yuan direct trading market average US $2 bn Korea tops ICT Development Index for second consecutive year

53 Statistical Appendices

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


The Green Book: Current Economic Trends Overview 01. External economic situation 02. Private consumption 03. Facility investment 04. Construction investment 05. Exports and imports 06. Mining and manufacturing production 07. Service sector activity 08. Employment 09. Financial markets 10. Balance of payments 11. Prices 12. Real estate market 13. Composite indices of business cycle indicators 02

The Green Book : Current Economic Trends


Overview

The Korean economic recovery has been slowing down due to weak production and investment, although domestic consumption improved helped by consumption boosting measures, such as the Korea Sales Festa. Job growth improved in October as the economy added 278,000 jobs year-on-year, a rise from 267,000 in the previous month. Jobs in the service and construction sectors increased, while manufacturing shed 115,000 jobs. Consumer prices rose 1.3 percent year-on-year in November, showing the same increase pace as the previous month, despite oil product prices falling at a slower rate compared with the previous month, as the prices of durable goods and processed food temporarily decreased due to seasonal discount events. Mining and manufacturing production fell 1.7 percent month-on-month in October partly due to a production halt of Samsung’s Galaxy Note 7 smartphones. Service output fell 0.2 percent month-on-month in October, going down for two months in a row, due to weak financial & insurance services and transportation services. Retail sales rose 5.2 percent month-on-month in October, rebounding from a 4.5 percent fall in the previous month, owing to the Korea Sales Festa and as the index recovered from the consequences of a halt in sales of Samsung’s Galaxy Note 7. Facility investment fell 0.4 percent month-on-month in October, after a large investment in semiconductor fabrication facilities in the third quarter. Construction completed fell 0.8 percent as public investment in SOC projects declined. In October, the cyclical indicator of the coincident composite index fell 0.3 points due to weak mining & manufacturing production and domestic shipments. The cyclical indicator of the leading composite index rose 0.1 points due to strong domestic shipments of machinery. Exports in November rose for the first time in three months, going up 2.7 percent year-on-year, as major export items, such as petroleum products, semiconductors and steel products, improved. Stock prices fell and both the won-dollar exchange rate and Treasury bond yields rose in November due to the Fed’s impending rate hike and as changes are expected in US policies. Housing prices increased at a slower rate than the previous month in November (up 0.17% → up 0.15%, m-o-m) as government measures to curb housing market overheating, announced on November 3, cooled overheated areas, including the Gangnam district. Jeonse (lump-sum deposits with no monthly payments) prices rose at a faster rate (up 0.14% → up 0.15%, m-o-m) due to strong seasonal demand. There are worries over weakening consumption and investor sentiment as uncertainty remains as to the new US government’s economic policies, the pace of the Fed’s rate hikes and eurozone’s instability, as well as the situation in the country.

December 2016

03


The government will strengthen the monitoring of domestic and global economic developments, and will be ready for the most appropriate action if necessary. The government will swiftly implement fiscal stimulus measures, such as a supplementary budget, and will be prepared for next year’s budget execution.

1. External economic situation

The global economy has been recovering steadily, backed by the US and other major economies. However, there are risks arising from the Fed’s rate hikes, the new US administration’s possible policy shifts and worries over the spread of protectionism.

US

The US economy grew 3.2 percent (annualized q-o-q, preliminary) in the third quarter, despite low investment, as private consumption and exports improved. Retail sales and employment also picked up in October. Manufacturing (up 0.2%) and mining (up 2.1%) improved, as well as the ISM Manufacturing Index. ISM Manufacturing Index (base=50) 50.8 (Apr 2016) → 51.3 (May) → 53.2 (Jun) → 52.6 (Jul) → 49.4 (Aug) → 51.5 (Sep) → 51.9 (Oct) → 53.2 (Nov)

US GDP growth and industrial production 10

Sources: US Department of Commerce, Federal Reserve Board

(%)

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

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

GDP (q-o-q, annualized rate)

04

The Green Book : Current Economic Trends

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

Industrial production (q-o-q)


Retail sales rose 0.8 percent month-on-month in October, exceeding market expectations (up 0.6%), backed by strong sales of household appliances (up 0.2%) and clothing (up 0.6%). Consumer sentiment indexes for November improved. University of Michigan Consumer Sentiment Index (1966=100) 89.0 (Apr 2016) → 94.7 (May) → 93.5 (Jun) → 90.0 (Jul) → 89.8 (Aug) → 91.2 (Sep) → 87.2 (Oct) → 93.8 (Nov) Conference Board Consumer Confidence Index (1985=100) 94.7 (Apr 2016) → 92.4 (May) → 97.4 (Jun) → 96.7 (Jul) → 101.8 (Aug) → 104.1 (Sep) → 98.6 (Oct) → 107.1 (Nov)

Existing home sales rose 2.0 percent to an annualized pace of 5,600,000 in October due to a strong labor market, while new home sales fell 1.9 percent month-on-month, a temporary setback considering a strong labor market. Case-Shiller Home Price Index (y-o-y, %) 5.6 (Jan 2016) → 5.4 (Feb) → 5.5 (Mar) → 5.4 (Apr) → 5.2 (May) → 5.1 (Jun) → 5.0 (Jul) → 5.1 (Aug) → 5.1 (Sep) New home sales (m-o-m, %) -2.2 (Jan 2016) → -0.2 (Feb) → 2.3 (Mar) → 6.1 (Apr) → -0.7 (May) → -1.4 (Jun) → 12.7 (Jul) → -8.6 (Aug) → 3.1 (Sep) → -1.9 (Oct)

With a decline in the labor force participation rate (62.7%), the unemployment rate in November fell to 4.6 percent, a nine-year low. Nonfarm payrolls added 178,000 jobs, led by service and public sector jobs. Labor force participation rate (%) 62.8 (Apr 2016) → 62.6 (May) → 62.7 (Jun) → 62.8 (Jul) → 62.8 (Aug) → 62.9 (Sep) → 62.8 (Oct) → 62.7 (Nov) Nonfarm payroll increase (m-o-m, thousands) 144 (Apr 2016) → 24 (May) → 271 (Jun) → 252 (Jul) → 176 (Aug) → 208 (Sep) → 142 (Oct) → 178 (Nov)

(Percentage change from previous period)

2015 Annual Annual Annual Q1 Q2 2013

2014

Q3

Q4

Q1

Q2

Q3

2016 Aug Sep

Oct

Nov

Real GDP

1.7

2.4

2.6

2.0

2.6

2.0

0.9

0.8

1.4

3.2

-

-

-

-

- Personal consumption expenditures

1.5

2.9

3.2

2.4

2.9

2.7

2.3

1.6

4.3

2.8

-

-

-

-

- Nonresidential fixed investment

3.5

6.0

2.1

1.3

1.6

3.9 -3.3 -3.4

1.0

0.1

-

-

-

-

11.9

3.5

11.7

7.8 -7.7 -4.4

-

-

-

-

Industrial production

1.9

2.9

0.3

-0.5 -0.7

0.4 -0.8 -0.4 -0.2

0.5 -0.1 -0.2

0.0

-

Retail sales

3.8

4.1

2.3

-0.7

1.5

1.0

0.9

Existing home sales

9.1

-3.1

6.3

-0.7

4.6

2.3 -3.8

Unemployment rate²

7.4

6.2

5.3

5.5

5.4

5.2

Consumer prices (y-o-y)

1.5

1.6

0.1

-0.1

0.0

0.1

1

- Residential fixed investment

13.3 14.9 12.6 11.5

0.2 -0.1

1.5

0.0

1.0

0.8

-

1.9

3.8 -2.1 -1.5

3.6

2.0

-

5.0

4.9

4.9

4.9

4.9

5.0

4.9

4.6

0.4

1.1

1.1

1.1

1.1

1.5

1.6

-

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

December 2016

05


US nonfarm payroll growth and unemployment rate

Source: US Department of Labor

800

12 (thousands)

(%)

600 10 400 200

8

0

6 -200 -400

4

-600 2 -800 -1,000

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

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

2015.1

0

2016.1

Unemployment rate (right)

China

China’s economy has been growing steadily backed by strong investment and exports, despite retail sales showing slower growth. Retail sales growth declined in October due to a slowdown in automobile sales (up 10.7% → up 10.0%, y-o-y). The index is expected to rebound in November, helped by the Singles’ Day Sales event.

China’s GDP growth and fixed asset investment

Source: China National Bureau of Statistics

18

(%)

(%)

70

16

60

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

2015

2014

Annual Annual Annual

Q2

Q3

Q4

Q1

Q2

Q3

2016 Aug

Sep

Oct

Real GDP

7.7

7.3

6.9

7.0

6.9

6.8

6.7

6.7

6.7

-

-

-

Industrial production

9.7

8.3

6.1

5.9

6.3

5.8

5.8

6.1

6.1

6.3

6.1

6.1

Fixed asset investment (accumulated, nominal)

19.6

15.7

10.0

11.4

10.3

10.0

10.7

9.0

8.2

8.1

8.2

8.3

Retail sales (nominal)

13.1

12.0

10.7

10.2

10.7

11.1

10.3

10.2

10.5

10.6

10.7

10.0

Exports

7.8

6.0

-3.0

-2.9

-6.4

-5.3

-9.6

-3.6

-5.8

-2.8

-10.0

-7.3

Consumer prices1

2.6

2.0

1.4

1.4

1.7

1.5

2.1

2.1

1.7

1.3

1.9

2.1

Producer prices1

-1.9

-1.9

-5.2

-4.7

-5.7

-5.9

-4.8

-2.9

-0.8

-0.8

0.1

1.2

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

Japan

Japan’s economy continued to show signs of a slowdown due to low global demand resulting in declining exports and slow industrial production growth, and as core consumer prices continued to fall. Core consumer prices (excluding fresh food, y-o-y, %) -0.4 (Apr 2016) → -0.4 (May) → -0.4 (Jun) → -0.5 (Jul) → -0.5 (Aug) → -0.5 (Sep) → -0.4 (Oct)

Japan’s GDP growth and industrial production Sources: Japan's Cabinet Office, Ministry of Economy Trade and Industry, Ministry of Finance, Statistics Bureau of Japan 6

25 (%)

(%)

20 4

15 10

2

5 0

0 -5

-2

-10 -15

-4

-20 -6

2006.Q1

2007.Q1

GDP (q-o-q, left)

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

-25

Industrial production (q-o-q, right)

December 2016

07


(Percentage change from previous period)

2013

2014

2015

Annual Annual Annual

Q2

Q3

Q4

Q1

Q2

Q3

2016 Aug

Sep

Oct

Real GDP

1.4

0.0

0.6

-0.3

0.4

-0.4

0.5

0.2

0.5

-

-

-

Industrial production

-0.6

2.1

-1.2

-1.3

-1.0

0.0

-1.0

0.2

1.4

1.3

0.6

0.1

Retail sales (nominal)

1.2

1.7

-0.4

0.2

1.0

-0.2

-2.3

0.1

1.0

-1.2

0.3

2.5

Exports (y-o-y)

9.5

4.8

3.4

6.7

3.7

-4.6

-7.9

-9.5

-10.2

-9.6

-6.9

-10.3

Consumer prices (y-o-y)

0.4

2.7

0.8

0.5

0.1

0.3

0.0

-0.4

-0.5

-0.5

-0.5

0.1

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

Eurozone

The eurozone economy continues to show signs of steady recovery evidenced by declining unemployment rates and the October retail sales recording the highest in the last 26-month period. However, there are uncertainties arising from concerns over a hard Brexit and Italy’s referendum against constitutional reform. Unemployment rate (%) 10.4 (Jan 2016) → 10.3 (Feb) → 10.2 (Mar) → 10.2 (Apr) → 10.1 (May) → 10.1 (Jun) → 10.0 (Jul) → 10.0 (Aug) → 9.9 (Sep) → 9.8 (Oct)

Eurozone’s GDP growth and industrial production 3

Source: Eurostat (%)

(%)

10 8

2

6 4

1

2 0

0 -2

-1

-4 -6

-2

-8 -3

-10 2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

GDP (q-o-q, left)

08

The Green Book : Current Economic Trends

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

Industrial production (q-o-q, right)


(Percentage change from previous period)

2013

2014

Annual Annual Annual

Q1

2015 Q2

Q3

Q4

Q1

Q2

Q3

2016 Aug

Sep

Oct

Real GDP

-0.3

1.2

2.0

0.8

0.4

0.3

0.5

0.5

0.3

0.3

-

-

-

Industrial production

-0.7

0.9

1.5

0.7

0.1

0.4

0.1

0.8

-0.4

0.4

1.8

-0.8

-

Retail sales

-0.6

1.4

2.7

0.9

0.7

0.6

0.2

0.6

0.1

0.4

-0.1

-0.4

1.1

Exports (y-o-y)

1.0

2.2

5.4

5.5

8.2

4.5

3.6

-0.9

-0.3

-0.3

8.2

2.0

-

Consumer prices (y-o-y)

1.4

0.4

0.0

-0.3

0.2

0.1

0.2

0.0

-0.1

0.3

0.2

0.4

0.5

Sources: Eurostat, Bloomberg

2. Private consumption

Private consumption (preliminary GDP) in the third quarter of 2016 rose 0.5 percent compared to the previous quarter and rose 2.7 percent compared to a year ago. 2013 Annual Annual

Private consumption² (y-o-y)

(Percentage change from previous period)

2014 Q1 Q2

2015 Q3

Q4

Annual¹

Q1¹

Q2¹

Q3¹

Q4¹

Q1¹

2016 Q2¹

Q3¹

1.9

1.7

0.4

-0.3

0.7

0.3

2.2

0.8

-0.1

1.1

1.4

-0.2

1.0

0.5

-

-

2.8

1.7

1.4

1.1

-

1.5

1.7

2.2

3.3

2.2

3.3

2.7

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

Private consumption (q-o-q)

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

Private consumption (y-o-y)

December 2016

09


Retail sales in October rose 5.2 percent month-on-month as sales of durable goods (up 10.8%), such as mobile phones, sales of semi-durable goods (up 3.2%), such as clothing, and sales of nondurable goods (up 3.0%), such as food, all increased. Year-on-year, the index rose 2.3 percent. (Percentage change from previous period)

2014 Annual Annual Q3 1.4

-

Q1 1.0

2015 Q2 0.7

Q3 1.3

Q4 3.1

2013

Retail sales

Q4 0.3

Annual

Q3¹ -1.7

2016 Sep¹ -4.5

Oct¹ 5.2

(y-o-y)

0.7

2.0

2.0

2.4

3.9

2.2

3.4

3.6

6.1

3.6

0.6

2.3

- Durable goods2

0.3

5.1

3.2

0.4

10.2

4.3

0.8

2.0

8.2

-7.1

-6.0

10.8

· Automobiles

2.1

16.4

5.1

0.3

21.3

7.0

5.4

3.5

11.2

-19.9

1.7

12.8

- Semi-durable goods3

2.1

-0.8

3.9

-2.3

-1.2

-2.0

-1.0

1.8

2.8

-0.8

-0.5

3.2

- Nondurable goods

0.4

1.6

-0.8

1.3

2.5

0.6

1.2

0.7

0.3

1.3

-5.2

3.0

4

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

Retail sales

Source: Statistics Korea (industrial activity trends)

15 (%) 10

5

0

-5

-10

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

Retail sales (m-o-m)

2016.1

Retail sales (y-o-y)

Retail sales by type

Source: Statistics Korea (industrial activity trends)

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

2006.1

2007.1

Durable goods

10

2008.1

2009.1

2010.1

2011.1

2012.1

Semi-durable goods

The Green Book : Current Economic Trends

2013.1

2014.1

2015.1

2016.1

Nondurable goods


Retail sales are projected to increase in November, given strong domestic sales of cars and credit card use. (Percentage change from same period in previous year)

2016 Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Credit card use

7.2

22.7

12.9

9.1

15.0

9.1

12.4

11.7

Department store sales

8.0

1.5

13.5

11.2

4.8

4.2

5.6

-1.6

Large discount store sales

0.2

-5.5

2.9

5.8

0.2

-0.4

4.8

-3.9

Domestic sales of gasoline

1.6

7.2

4.6

2.3

9.7

6.2

-2.9

6.6

Domestic sales of cars

5.8

20.8

24.1

-10.5

-11.1

-10.9

-11.5

1.4

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

3. Facility investment

Facility investment (preliminary GDP) rose 0.2 percent quarter-on-quarter and fell 4.2 percent year-onyear in the third quarter of 2016. (Percentage change from previous quarter)

2014 Facility investment² (y-o-y)

2015 Q2¹ 0.8

Q3¹ 1.8

Q4¹ 0.5

Q1¹ -7.4

2016 Q2¹ 2.8

Q3¹ 0.2 -4.2

Annual

Annual¹

6.0

5.3

Q1¹ 0.5

-

-

5.8

5.1

6.7

3.9

-4.5

-2.7

- Machinery

5.0

2.1

0.1

-2.9

0.8

-3.0

-6.4

1.9

6.9

- Transportation equipment

8.3

12.5

1.5

9.3

3.7

7.4

-9.4

4.5

-11.7

1. Preliminary

2. National accounts

Facility investment

Source: Bank of Korea

Source: Bank of Korea (national accounts)

40 (%) 30 20 10 0 -10 -20 -30

2006.Q1

2007.Q1

Facility investment (q-o-q)

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

Facility investment (y-o-y)

December 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

The facility investment index in October fell 0.4 percent month-on-month as machinery investment decreased, despite a rise in transportation equipment investment. The index fell 4.9 percent year-on-year. (Percentage change from previous quarter)

2014 Annual

Annual

5.2 3.9 8.8

6.3 2.9 14.9

Facility investment index (y-o-y) - Machinery - Transportation equipment 1. Preliminary

Q1 -0.2 9.2 -0.1 -1.0

2015 Q2 -2.2 4.5 -6.0 8.8

Q3 5.2 10.2 0.7 16.5

Q4 -1.2 1.6 -2.6 1.0

Q1 -8.7 -7.1 -5.3 -14.3

Q2 6.4 0.8 -0.3 20.5

2016 Q3¹ -1.5 -4.8 9.2 -21.1

Sep¹ -2.1 -4.0 -2.3 -1.6

Oct¹ -0.4 -4.9 -3.6 7.9

Source: Statistics Korea

The facility investment outlook is mixed: Domestic machinery orders and machinery imports decreased, while domestic automobile sales increased. Domestic automobile sales growth (y-o-y, %) 24.1 (Jun 2016) → -10.5 (Jul) → -11.1 (Aug) → -10.9 (Sep) → -11.5 (Oct) → 1.4 (Nov) (Percentage change from same period in previous year)

2014 Annual Annual

Domestic machinery orders (q-o-q, m-o-m) - Public - Private Machinery imports Average manufacturing operation ratio (%) Facility investment adjustment pressure²

14.8 -3.6 94.2 -61.7 4.8 10.0 5.8 0.3 76.1 74.3 -1.4 -1.8

Q1 -3.0 -0.1 -66.9 11.4 8.5 74.3 -2.8

2015 Q2 Q3 Q4 Q1 14.9 -27.1 6.9 0.9 8.6 -10.0 9.2 -2.9 61.7 -85.3 -19.8 56.9 12.5 4.7 10.8 -2.9 -1.1 2.3 -6.4 -13.0 74.3 74.9 73.6 73.2 -2.8 -1.2 -0.6 -0.7

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

Q2 -2.9 4.6 15.4 -4.3 -6.7 72.2 0.8

2016 Q3¹ Sep¹ Oct¹ 0.9 3.6 -13.0 -5.8 10.8 -10.9 17.7 214.8 -39.7 -0.4 -8.8 -11.7 -2.2 -2.2 -3.9 71.9 71.6 70.3 0.3 -2.1 -2.3


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 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

-40

Machinery imports (right)

4. Construction investment

Construction investment (preliminary GDP) in the third quarter of 2016 rose 3.5 percent quarter-on-quarter and 11.4 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

Construction investment (q-o-q)

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

Construction investment (y-o-y)

December 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 investment² (y-o-y)

3.9

Q1¹ 5.5

2015 Q2¹ 1.8

Q3¹ 3.3

Q4¹ -2.4

Q1¹ 6.8

2016 Q2¹ 3.1

Q3¹ 3.5

-

0.9

1.0

5.6

7.5

9.6

10.8

11.4

Annual

Annual¹

1.1 -

- Building construction

6.3

6.3

2.5

4.9

5.6

0.3

3.6

5.5

5.4

- Civil engineering works

-7.3

-7.3

11.4

-3.8

-1.4

-8.0

14.0

-1.9

-0.8

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

The value of construction completed (constant) in October fell 0.8 percent month-on-month as civil engineering works decreased, despite an increase in building construction. The index rose 17.3 percent year-on-year. (Percentage change from previous period)

2014 Construction completed (constant) (y-o-y) - Building construction - Civil engineering works 1. Preliminary

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 Q3¹ 4.6

Sep¹ -4.6

Oct¹ -0.8

-

-

-2.0

-3.9

5.9

8.0

14.8

19.2

17.2

9.5

17.3

7.8

6.0

4.4

-0.7

9.5

2.6

9.0

3.1

6.5

-3.5

2.5

-12.3

-3.8

3.7

-4.4

0.9

-5.0

10.2

0.7

0.5

-6.9

-8.1

Source: Statistics Korea

The construction investment outlook is mixed as there are both positive and negative factors: Construction orders received rebounded in October and building permits fell at a slower pace, while apartment presales and shipments of intermediate goods declined. Apartment presales (thousands, Real Estate 114) 35 (Apr 2016) → 54 (May) → 41 (Jun) → 48 (Jul) → 30 (Aug) → 18 (Sep) → 76 (Oct) → 40 (Nov)

14

The Green Book : Current Economic Trends


Domestic shipments of cement (million tons) 5.00 (Apr 2016) → 5.10 (May) → 4.85 (Jun) → 4.50 (Jul) → 4.32 (Aug) → 4.50 (Sep) → 4.95 (Oct) → 4.08 (Nov)

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

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

Construction orders

2016.1

Building permit area

(Percentage change from same period in previous year)

Q1

2015 Q2

Q3

2014 Annual Annual

Construction orders (current value)

Q4

Q1

Q2

2016 Q3¹

Sep¹

Oct¹

16.3

48.2

57.4

49.1

50.4

40.1

13.8

-6.3

2.7

-40.0

41.2

-

-

47.4

11.6

21.3

-26.5

17.7

-10.2

36.4

-32.2

24.6

- Building construction

24.5

50.1

89.5

49.3

42.5

37.8

13.1

2.6

4.2

-28.0

32.6

- Civil engineering works

-4.4

42.9

1.7

48.3

83.6

45.9

16.0

-32.8

-2.3

-68.0

83.4

-24.8

-35.1

-14.7

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

Building permits² 1. Preliminary

2. Floor area

11.2

34.3

11.0

25.1

57.0

40.4

19.7

5.3

Sources: Statistics Korea, Ministry of Land, Infrastructure and Transport

5. Exports and imports

Exports (preliminary) increased 2.7 percent year-on-year to US $45.49 billion in November. Exports increased in November for the first time in three months, backed by more days worked (up 1 day, y-o-y) and strong exports of major items. By item, exports of petroleum products, steel and semiconductors rose, while exports of vessels and mobile phones fell. By region, shipments to the ASEAN countries, Japan and the Middle East increased,

December 2016

15


while exports to the EU and Latin America declined. Export growth by item (y-o-y, %) 20.0 (petrochemicals), 11.6 (semiconductors), 10.8 (steel), 2.8 (petroleum products), 1.5 (automobiles), -36.8 (vessels), -17.9 (mobile phones) Export growth by region (y-o-y, %) 22.0 (ASEAN countries), 12.6 (Japan), 11.1 (Middle East), 3.9 (US), 0.4 (China), -22.0 (EU), -16.0 (Latin America)

Average daily exports, an indicator adjusted to days worked, increased month-on-month to US $1.90 billion. Average daily exports (US $ billion) 1.83 (Apr 2016) → 1.85 (May) → 1.97 (Jun) → 1.74 (Jul) → 1.67 (Aug) → 1.95 (Sep) → 1.87 (Oct) → 1.90 (Nov)

Exports by item

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

160 (y-o-y, %) 140 120 100 80 60 40 20 0 -20 -40 -60 -80

2006.1

2007.1

2008.1

2009.1

Export growth rate

2010.1

2011.1

2012.1

Semiconductors

2013.1

2014.1

2015.1

2016.1

Automobiles

Steel

(US $ billion)

2014

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

2015 Q1

Annual

Annual

572.66

526.76 133.40

2016

Q2

Q3

Q4

Nov

Q1

Q2

Q3

Oct

Nov¹

135.10

128.24

130.02

44.29

115.20

126.03

121.88

41.97

45.49

2.3

-8.0

-3.0

-7.3

-9.5

-12.0

-5.0

-13.6

-6.7

-5.0

-3.2

2.7

2.11

1.93

2.01

1.99

1.87

1.86

1.93

1.73

1.88

1.78

1.87

1.90

1. Preliminary Source: Korea Customs Service

16

The Green Book : Current Economic Trends


Imports (preliminary) in November rose 10.1 percent year-on-year to US $37.49 billion. Commodities and capital goods imports rebounded, and consumer goods imports grew at a faster rate. Import growth by category (y-o-y, %, Oct → Nov) -6.2 → 11.2 (commodities), -5.6 → 8.4 (capital goods), 1.4 → 10.9 (consumer goods)

Imports by category

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

100 (y-o-y, %) 80 60 40 20 0 -20 -40 -60 -80

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

Import growth rate

2012.1

2013.1

2014.1

2015.1

2016.1

Commodities

Capital goods

(US $ billion)

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

2015

2016

Annual

Annual

Q1

Q2

Q3

Q4

Nov

Q1

Q2

Q3

Oct

Nov¹

525.51

436.50

111.77

110.50

107.96

106.27

34.05

93.80

99.21

102.34

35.00

37.49

1.9

-16.9

-15.6

-15.6

-18.7

-17.8

-17.6

-16.1

-10.2

-5.2

-4.8

10.1

1.94

1.60

1.68

1.62

1.58

1.52

1.48

1.41

1.48

1.49

1.56

1.56

1. Preliminary Source: Korea Customs Service

The trade balance (preliminary) posted a surplus of US $8.00 billion in November, staying in the black for the 58th consecutive month. Surpluses increased compared with the previous month. (US $ billion)

2014 Trade balance

2015

2016

Annual

Annual

Q1

Q2

Q3

Q4

Nov

Q1

Q2

Q3

Oct

Nov¹

47.15

90.26

21.63

24.61

20.28

23.74

10.24

21.40

26.82

19.54

6.97

8.00

1. Preliminary Source: Korea Customs Service

December 2016

17


Exports and imports

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

60 (US $ billion) 50

40

30

20

10

0

-10

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

Trade balance

2012.1

2013.1

2014.1

2015.1

2016.1

Exports

Imports

6. Mining and manufacturing production

Mining and manufacturing production fell 1.7 percent month-on-month in October, due to weak primary metals and communications equipment, despite automobiles and semiconductors improving. Compared to the same period of the previous year, the index fell 1.6 percent. Compared to the previous month, production of automobiles (up 4.6%), semiconductors (up 3.8%) and chemical products (up 0.5%) rose, while primary metals (down 4.0%), communications equipment (down 18.1%) and electronic parts (down 3.7%) fell. Compared to a year ago, production of semiconductors (up 11.7%), mechanical equipment (up 4.1%) and chemical products (up 2.0%) rose, while communications equipment (down 41.7%), automobiles (down 8.5%) and processed metals (down 7.7%) declined. The manufacturing inventory-shipment ratio rose 2.1 percentage points month-on-month to 119.8 percent as inventories increased 0.1 percent and shipments fell 1.7 percent. Inventories of semiconductors (up 20.0%), electronic parts (up 4.5%) and processed metals (up 2.7%) rose, while automobiles (down 5.0%), primary metals (down 3.0%) and refined petroleum (down 6.9%) declined.

18

The Green Book : Current Economic Trends


Shipments of automobiles (up 3.7%), refined petroleum (up 2.2%) and electrical equipment (up 0.7%) rose, while semiconductors (down 4.0%), communications equipment (down 19.9%) and other transportation equipment (down 6.7%) fell.

Industrial production Source: Statistics Korea (industrial activity trends) 50

(%)

40

30

20

10

0

-10

-20

-30

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Industrial production (m-o-m)

Shipment and inventory

2015.1

2016.1

Industrial production (y-o-y)

Source: Statistics Korea (industrial activity trends)

10 (m-o-m, %)

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

2006.1

2007.1

Shipment growth

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Inventory growth

The average operation ratio of the manufacturing sector fell 1.3 percentage points month-on-month to 70.3 percent.

December 2016

19


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

(Percentage change from previous period)

Annual

2015 Q3

Oct

Q2

Q3¹

2016 Aug

Sep¹

Oct¹

-

1.7

-1.3

1.0

0.6

-2.4

0.6

-1.7

-0.6

-0.1

2.1

1.0

0.7

2.3

-1.7

-1.6

-

1.7

-1.2

1.1

0.5

-2.5

0.6

-1.4

-0.6

-0.3

2.4

1.1

0.7

2.2

-1.9

-1.6

Shipment

-0.2

2.1

-1.2

2.1

-0.1

-2.2

1.2

-1.7

- Domestic consumption

0.4

1.5

-0.7

0.9

0.0

-1.6

1.7

-1.8

- Exports

-1.0

2.7

-1.8

3.5

0.0

-3.0

0.5

-1.3

Inventory 3

2.9

2.6

-1.1

-2.6

-3.5

-1.7

-1.4

0.1

74.3

74.9

74.0

72.2

71.9

70.2

71.6

70.3

1.2

0.9

0.9

0.4

0.4

0.6

0.2

0.7

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

Mining and manufacturing2

(y-o-y) Production

Manufacturing

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

Average operation ratio Production capacity (y-o-y) 1. Preliminary 2. Including mining, manufacturing, electricity and gas industry 3. End-period Source: Statistics Korea

Mining and manufacturing for November is projected to improve given a rebound in exports, but it is also possible that the index slows down due to external uncertainties, such as worries over US policy change and the Fed’s rate hikes, as well as internal uncertainties, such as shrinking economic sentiment.

20

The Green Book : Current Economic Trends


7. Service sector activity

Service output in October decreased 0.2 percent month-on-month and increased 2.5 percent year-on-year.

Service sector activity

Source: Statistics Korea (industrial activity trends)

15 (%)

10

5

0

-5

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

Service sector activity (m-o-m)

2016.1

Service sector activity (y-o-y)

(Percentage change from previous period)

Weight Service activity index

2013

2014

Annual Annual Q4 Annual Q1

2015 Q2

Q3

Q4

2016 Q3ยน Sepยน Octยน 0.8 -0.7 -0.2

100.0

1.5

2.3

0.8

2.8

0.5

0.5

1.2

1.2

21.6

0.1

0.4

-0.4

1.7

0.7

0.3

0.9

2.2 -0.6 -1.7

- Transportation services

8.5

1.0

1.7

1.8

1.4

-0.2

-2.6

1.9

1.9

0.9 -3.7 -2.0

- Hotels & restaurants

7.2

0.5

1.5

-1.7

-2.0

-0.6

-3.4

2.1

0.8

1.0 -1.5 -0.7

- Publishing & communications services

8.4

2.2

2.0

-0.4

-0.6

-1.9

-0.5

3.0

1.1 -1.8

14.7

0.5

5.2

3.3

9.0

1.6

3.8

1.2 -0.4

2.9

- Real estate & renting

5.3

2.5

6.2

4.3

8.1

-0.8

6.4

0.9 -0.5

6.1 -1.6

- Professional, scientific & technical services

5.6

3.3

2.3

2.9

-0.4

-2.9

-0.1

1.6

- Business services

3.3

2.1

2.5

0.8

3.9

2.3

0.4 -1.0

3.4

0.7

0.3

0.0

- Education services

10.9

0.8

1.3

-0.4

0.9

1.0

-0.6

0.0

1.0

0.1

0.2

0.2

- Healthcare & social welfare services

7.5

5.2

6.3

2.2

6.2

1.9

0.0

1.4

3.1

5.0

0.0

0.3

- Entertainment, cultural & sports services

2.9

-0.7

-1.0

-2.3

1.1

1.5

-2.5

1.0

3.2 -1.9

- Membership organizations & personal services

3.6

6.1

-0.5

-1.9

-0.5

0.7

1.6 -0.2 -2.7 -2.0 -3.4

- Sewerage & waste management

0.6

-0.4

1.0

3.6

7.2

0.6

3.6

- Wholesale & retail

- Financial & insurance services

2.7

1.8 -0.6 0.4 -1.2 0.7

0.3 -2.6 -1.8 -3.1

4.6 -4.6 -2.6

2.5 -4.9 0.6

3.9 -5.9

1. Preliminary Source: Statistics Korea

December 2016

21


Month-on-month, wholesale & retail (up 2.7%), real estate & renting (up 0.7%) and education services (up 0.2%) increased, while financial & insurance services (down 1.2%) and entertainment, cultural & sports services (down 4.9%) decreased.

Wholesale & retail 15

Source: Statistics Korea (industrial activity trends)

(%)

10

5

0

-5

-10

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

Wholesale & retail (m-o-m)

2016.1

Wholesale & retail (y-o-y)

October 2016 service output by business

Source: Statistics Korea (industrial activity trends)

15 (y-o-y, %)

Health & social welfare services Financial & insurance services

10

5

0

-5

Real estate & renting Total index

Wholesale & retail

Publishing & communications services

Hotels & restaurants

Business services

Education services

Entertainment, cultural & sports services

Sewerage & waste management

Membership organizations & personal services

Transportation services Professional, scientific & technical services

-10

The service output in November is mixed as domestic sales of cars increased, whereas department store sales, large discount store sales and average daily stock transactions decreased. Average daily stock transactions (trillion won) 8.1 (Apr 2016) → 8.5 (May) → 9.1 (Jun) → 8.3 (Jul) → 7.9 (Aug) → 8.1 (Sep) → 7.5 (Oct) → 7.4 (Nov)

22

The Green Book : Current Economic Trends


8. Employment

The number of workers on payroll in October increased by 278,000 from a year earlier to 26,580,000, and the employment rate rose 0.3 percentage points to 66.5 percent. By industry, services continued to lead employment growth. By employment status, permanent workers continued to drive employment growth, and self-employed workers rose for three consecutive months. Temporary and daily workers decreased.

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

2009.1

2010.1

2011.1

2012.1

Employment growth (y-o-y, left)

2013.1

2014.1

2015.1

2016.1

21

Number of employed (seasonally adjusted, right)

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

2006.1

2007.1

Original data

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Seasonally adjusted rate

December 2016

23


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 70.8 70.8

40 7.1

7.0

7.1

7.1

7.2

20

7.2

6.9

7.0

7.0

7.1

7.1

7.1

7.1

7.0

7.0

6.9

7.0

7.1

7.0

6.8

6.8

6.9

7.0

7.0

7.0

7.1

7.1

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 16.7 16.7 0

6.2

6.2

6.2

5.8

4.2

2014.7 8

9

10

11

12 2015.1 2

6.2

4.1

3.9

Services

4.9

5.5

5.9

5.9

5.8

5.7

5.7

5.6

5.1

4.0

3.8

4.8

5.2

5.4

5.5

5.3

5.3

5.4

5.4

3

4

5

6

7

8

9

10

11

12 2016.1 2

3

4

5

6

7

8

9

10

Construction

Manufacturing

Agriculture, forestry & fisheries

2015 Q2 Q3

2012 2013 2014 Annual Annual Annual Annual Q1

Number of employed (millions)

3.6

Q4

Oct

Q1

2016 Q3 Sep

Q2

Oct

24.68 25.07 25.60 25.94 25.27 26.10 26.24 26.14 26.30 25.55 26.39 26.55 26.53 26.58

Employment rate (%)

59.4 59.5 60.2 60.6 59.0 60.7 60.9 60.5 60.9 59.7 60.8 61.1 61.0 61.1

(Seasonally adjusted)

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

Employment growth (y-o-y, thousands)

437

386

533

337

354

308

310

376

348

287

289

318

267

278

(Excluding agriculture, forestry & fisheries)

451

394

601

444

441

435

419

482

472

341

375

399

332

324

- Manufacturing

14

79

146

156

139

147

164

176

191

126

38

-71

-76 -115

- Construction

22

-19

42

27

72

44

11

-19

-27

-7

-28

38

41

59

- Services

416

318

424

250

222

235

234

309

292

216

360

430

369

390

- Agriculture, forestry & fisheries

-14

-8

-87 -127 -115 -106 -124

-54

-86

-81

-65

-46

-68 -107

Source: Statistics Korea

Employment by status of workers 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

4.6

4.4

3.9

3.7

(%) 3.8

4.2

4.3

4.4

4.4

4.4

4.5

4.5

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 21.4 21.4 6.0

60

5.0

Source: Statistics Korea (employment trends)

5.8

6.1

6.2

6.4

6.2

6.0

6.0

5.7

6.2

6.5

6.2

6.1

5.9

5.9

5.8

5.7

5.9

5.7

5.5

5.3

5.5

5.4

5.7

5.8

5.5

5.5

5.6

19.8 19.3 19.2 19.4 19.5 19.7 19.7 19.8 19.6 19.4 19.3 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 49.2 49.1

2014.7 8

9

10

Unpaid family workers

24

11

12 2015.1 2

3

4

5

6

7

Self-employed workers

The Green Book : Current Economic Trends

8

9

10

Daily workers

11

12 2016.1 2

3

4

Temporary workers

5

6

7

8

9

10

Permanent workers


Employment growth (y-o-y, thousands)

437

386

533

337

354

2015 Q2 Q3 308 310

- Wage workers

315

483

548

487

442

422

521

565

583

427

392

283

178

158

路 Permanent workers

436

615

443

432

355

332

505

536

565

505

457

316

293

256

路 Temporary workers

-2

-96

140

54

82

3

1

129

101

15

120

45

-26

-67

-120

-37

-35

1

4

87

15 -100

-82

121

-97

-15

-151

124

-67

1

- Male

234

186

- Female

203

200

- 15 to 29

-36

- 30 to 39

-31

2012 2013 2014 Annual Annual Annual Annual Q1

路 Daily workers - Nonwage workers 路 Self-employed workers

Q4 376

Oct 348

Q1 287

Q2 289

2016 Q3 Sep 318 267

Oct 278

-93 -185

-78

-89

-30

-88 -114 -211 -189 -236 -140 -103

35

89

120

-89

-49

-37 -136 -135 -159

-96

-68

52

86

124

266

132

141

145

111

132

137

107

124

183

177

178

267

205

213

163

199

244

211

180

165

134

90

100

-50

77

68

32

90

50

100

101

40

82

62

41

31

-21

-21

-38

-1

-56

-60

-36

-47

-21

-23

-53

-42

-61

-51 -100

- 40 to 49

11

22

38

-14

-47

-15

1

7

33

6

-41

-16

- 50 to 59

270

254

239

149

177

138

145

135

125

84

82

90

99

133

- 60 and above

222

181

200

172

192

150

174

169

136

179

189

236

219

275

Source: Statistics Korea

The number of unemployed persons in October increased 84,000 year-on-year to 923,000, and the unemployment rate rose 0.3 percentage points year-on-year to 3.4 percent. The unemployment rate rose in all age groups except in the groups of those in their 40s, and 60 and above. The economically inactive population in October decreased 1,000 from a year earlier to 16,010,000, while the labor force participation rate rose 0.3 percentage points year-on-year to 63.2 percent. The number of those economically inactive due to education (down 96,000), childcare (down 52,000) and rest (down 77,000) decreased.

Unemployment rate

Source: Statistics Korea (employment trends)

6 (%)

5

4

3

2

2006.1

2007.1

Original data

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Seasonally adjusted rate

December 2016

25


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

2012.1

2013.1

2014.1

2015.1

Original data

Seasonally adjusted rate

2012 2013 2014 Annual Annual Annual Annual

Number of unemployed (thousands) Unemployment growth (y-o-y, thousands)

Q1

2015 Q2 Q3

Oct

Q1

929

845

839 1,153 1,028

807

937

-35

-13

137

40

58

65

45

-9

-19

64

-26

-6

49

24

25

42

31

-3

-22

-9

-7

80

16

32

23

14

-6

3

Unemployment rate (%)

3.2

3.1

3.5

3.6

4.1

3.8

3.4

3.1

(Seasonally adjusted)

3.2

3.1

3.5

3.6

3.7

3.8

3.6

3.4

- 15 to 29

7.5

8.0

9.0

9.2

10.3

9.9

8.4

- 30 to 39

3.0

3.0

3.1

3.1

3.1

3.3

3.0

- 40 to 49

2.0

2.0

2.2

2.3

2.4

2.5

- 50 to 59

2.1

1.9

2.2

2.4

2.6

2.6

- 60 and above

2.4

1.8

2.3

2.5

4.1

2.2

- Female

Economically inactive population (millions) Labor force participation rate (%) (Seasonally adjusted) Growth in economically inactive population (y-o-y, thousands) - Childcare

976 1,089 1,042

Q4

820

- Male

2016.1

Q2

2016 Q3 Sep

Oct

985

986

923

-14

56

120

84

51

11

37

55

41

13

-24

19

65

43

3.1

4.3

3.8

3.6

3.6

3.4

3.4

3.8

3.7

3.8

4.0

3.7

8.0

7.4

11.3

10.3

9.3

9.4

8.5

2.9

2.9

3.2

3.2

3.2

3.2

3.4

2.3

2.0

2.0

2.4

2.1

2.1

2.1

2.0

2.4

1.9

2.0

2.6

2.3

2.3

2.3

2.1

2.0

2.1

2.2

4.2

2.2

2.3

2.3

2.1

16.08 16.22 15.98 16.11 16.47 15.84 15.92 16.19 16.01 16.57 15.97 15.93 15.97 16.01 61.3

61.5

62.4

62.6

61.5

63.2 63.0 62.5

62.9

61.7

63.2

63.4

63.3

63.2

61.3

61.5

62.4

62.6

62.8

62.3 62.5 62.6

62.4

62.8

62.4

62.9

63.0

62.8

128

141

-246

128

72

150

162

128

176

99

135

4

-18

1

-2

1

-39

8

41

50

3

-63

-14

-115 -105

-63

-57

-52

-91

-41

-19

-29

-48

32

35

28

101

-141 -213 -112 -118

-124

-108

-89 -116 -142

-96

- Housework

123

-3

-131

-45

- Education

-12

77

-81

-146

- Old age

148

54

93

109

68

95

103

171

180

161

109

113

140

78

- Rest

-53

-7

-92

141

154

151

123

136

127

97

141

-19

-65

-77

Source: Statistics Korea

26

The Green Book : Current Economic Trends

69


9. Financial markets 9.1 Stock market

The KOSPI fell 1.2 percent in November from 2,008.19 points to 1,983.48 points, and the KOSDAQ was down 4.6 percent from 624.68 points to 596.11 points. The KOSPI fluctuated in early November amid uncertainties surrounding the US presidential election, and remained weak due to continuing uncertainties of possible policy shifts under the new US administration and the Fed’s rate hike at the end of the year.

Stock prices 2,200 (monthly average) 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

KOSPI

KOSDAQ

(Closing rate)

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

Oct 2016

KOSPI Nov 2016

Change1

Oct 2016

KOSDAQ Nov 2016

Changeš

2,008.19

1,983.48

-24.71 (-1.2%)

624.68

596.11

-28.57 (-4.6%)

1,279.8

1,277.3

-2.5 (-0.2%)

196.0

189.2

-6.8 (-3.5%)

4.48

4.45

-0.03 (-0.7%)

3.05

2.93

-0.12 (-3.9%)

35.02

35.22

+0.20 (+0.6%)

10.24

10.16

-0.08 (-0.8%)

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

December 2016

27


9.2 Exchange rate

The dollar-won exchange rate rose 2.1 percent in November from 1,144.5 won to 1,169.1 won as expectations for expansionary fiscal policies and deregulation by the Trump administration pushed up the dollar. The 100 yen-won exchange rate fell to 1,037.8 won in November as the yen depreciated against the dollar due to a surge in long-term US Treasury bond yields, which led to expectations for a further widening of spreads between US and Japanese bond yields.

Foreign exchange rates

Source: Bank of Korea

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

1,400

1,200

1,000

800

600

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

Dollar-Won

2016.1

100 Yen-Won

(Closing rate)

Dollar-Won

2010 Dec 1,134.8

2011 Dec 1,151.8

2012 Dec 1,070.6

2013 Dec 1,055.4

2014 Dec 1,099.3

2015 Dec 1,172.5

Oct 1,144.5

2016 Nov 1,169.1

Changeš -2.1

100 Yen-Won

1,393.6

1,481.2

1,238.3

1,002.3

913.0

974.1

1,092.2

1,037.8

+5.2

1. Appreciation from the end of the previous month in November 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 November as global bond yields increased due to expectations of the new US government’s carrying out expansive fiscal policy and also due to rising inflation expectations. Increases of 10-year Treasury bond yields in November (basis points) +46 (Korea), +56 (US), +11 (Germany), +26 (France), +14 (UK)

28

The Green Book : Current Economic Trends


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

2011.1

Overnight call rate (daily)

2012.1

2013.1

2014.1

2015.1

3-yr Treasury bond yield

2016.1

3-yr corporate bond yield

(Closing rate, %)

Call rate (1 day)

2010 Dec 2.51

2011 Dec 3.29

2012 Dec 2.77

2013 Dec 2.52

2014 Dec 2.03

2015 Dec 1.52

2016 Sep 1.26

Oct 1.24

Nov 1.23

Change¹ -1

CD (91 days)

2.80

3.55

2.89

2.66

2.13

1.67

1.34

1.39

1.52

+13

Treasury bonds (3 yrs)

3.38

3.34

2.82

2.86

2.10

1.66

1.25

1.44

1.71

+27

Corporate bonds (3 yrs)

4.27

4.21

3.29

3.29

2.43

2.11

1.67

1.85

2.15

+30

Treasury bonds (5 yrs)

4.08

3.46

2.97

3.23

2.28

1.81

1.25

1.50

1.90

+40

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

9.4 Money supply and money market

M2 (monthly average) in September increased 6.9 percent from a year earlier after rising 7.2 percent in the previous month. Private sector credit expanded at a slower rate due to a slowdown in bank lending. Money supply in the overseas sector decreased as current account surpluses fell and Korean investment in foreign shares expanded. (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

Jul 13.8

Aug 13.0

Sep 12.9

Sep¹ 752.4

6.6

8.6

6.9

7.2

6.9

2,384.1

7.0

9.7

7.6

8.0

7.8

3,290.4

1. Balance at end September 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

December 2016

29


Total money supply Source: Bank of Korea 40 (y-o-y, monthly average balance, %) 30

20

10

0

-10

-20

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

Reserve money

2012.1

2013.1

2014.1

2015.1

2016.1

M1

Lf

Bank deposits expanded 13.9 trillion won month-on-month in October, a faster pace than the previous month, backed by increases in instant access deposits (up 6.6 trillion won) and time deposits (up 6.2 trillion won). Asset management company (AMC) deposits increased 6.3 trillion won, led by money market funds (MMFs). MMFs expanded 5.1 trillion won as financial institutions redeposited funds they withdrew at the end of the third quarter to improve their quarter-end financial ratios and the government deposited surplus funds.

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

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

Jul -1.8

AMC deposits

-16.7

-16.6

18.8

17.7

42.4

44.4

23.3

1. Balance at end October 2016

30

Source: Bank of Korea

The Green Book : Current Economic Trends

Aug 12.8

2016 Sep 6.3

Oct 13.9

Octยน 1,450.8

-1.4

-11.2

6.3

479.6


10. Balance of payments

Korea’s current account (preliminary) in October posted a surplus of US $8.72 billion, staying in the black for 56 consecutive months. The goods account surplus decreased month-on-month from US $10.66 billion to US $9.83 billion. Growth in goods exports (y-o-y, %) -0.8 (Sep 2016) → -6.3 (Oct) Growth in goods imports (y-o-y, %) 3.6 (Sep 2016) → -5.0 (Oct) Export growth by item in October (y-o-y, %, customs clearance basis) -3.2 (total), 49.4 (vessels), 1.7 (semiconductors), -0.8 (steel), -3.1 (petroleum products), -12.0 (automobiles), -28.1 (mobile phones) Import growth by category in October (y-o-y, %, customs clearance basis) -4.8 (total), -6.2 (commodities), -5.6 (capital goods), 1.4 (consumer goods)

The services account deficit fell month-on-month from US $2.58 billion to US $1.59 billion as the travel account deficit decreased. Services account (US $ billion, Sep → Oct) -0.48 → -0.48 (manufacturing), -0.24 → 0.15 (transportation), -1.09 → -0.50 (travel), 0.59 → 0.57 (construction), -0.39 → -0.51 (intellectual property rights), -1.03 → -0.90 (other businesses)

Travel balance

Source: Bank of Korea (balance of payments trends)

4 (US $ billion) 3

2

1

-1

-2

-3

2006.1

2007.1

Travel balance

2008.1

2009.1

2010.1

2011.1

2012.1

Travel revenue

2013.1

2014.1

2015.1

2016.1

Travel payment

December 2016

31


The primary income account surplus increased from US $0.78 billion to US $0.86 billion as the interest income account surplus expanded. The secondary income account deficit fell from US $0.79 billion to US $0.38 billion. (US $ billion)

2016 Q3¹

Sep¹

Oct¹

9.58 25.35 26.34 21.51

8.07

8.72

88.89

122.27 24.52 33.67 31.32 32.77 10.97 28.95 33.53 28.27 10.66

9.83

- Services balance

-3.68

-14.92

-4.11

-3.04

-3.74

-4.03 -1.49

-3.92

-3.91 -5.66

-2.58

-1.59

- Primary income balance

4.15

3.57

4.07

-2.48

1.52

0.47

0.53

1.20

-2.11

1.26

0.78

0.86

- Secondary income balance

-4.98

-4.99

-1.20

-0.85

-1.68

-0.88 -0.44

-0.88

-1.18 -2.36

-0.79

-0.38

2014 Q1¹

2015 Q2¹ Q3¹

Annual

Annual¹

Q4¹

Current account

84.37

105.94 23.22 26.95 28.25 27.52

- Goods balance

Oct¹

Q1¹

Q2¹

1. Preliminary Source: Bank of Korea

Current account balance

Source: Bank of Korea (balance of payments trends)

14 (US $ billion) 12 10 8 6 4 2 0 -2 -4 -6

2006.1

2007.1

Goods account

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

Services account

2016.1

Current account

The capital and financial account (preliminary) in October saw an outflow of US $7.04 billion. Capital & financial account balance* (US $ billion) 11.15 (Oct 2015) → 0.71 (Apr 2016) → 9.09 (May) → 9.32 (Jun) → 10.15 (Jul) → 7.52 (Aug) → 9.58 (Sep) → 7.04 (Oct) * Positive figures represent net outflows, and negative figures represent net inflows.

Net outflows of FDI increased from US $1.02 billion a month earlier to US $1.36 billion as Korean FDI (up US $1.47 billion → up US $2.62 billion) rose at a faster pace than inbound FDI (up US $0.45 billion → up US $1.26 billion). Net outflows of portfolio investment rose from US $8.98 billion to US $9.87 billion, as foreign investment in Korean shares decreased at a faster pace (down US $1.93 billion → down US $3.25 billion), although Korean

32

The Green Book : Current Economic Trends


investment in foreign shares expanded at a slower pace (up US $7.05 billion → up US $6.61 billion). Net inflows of financial derivatives investment went down from US $2.03 billion to US $0.78 billion. Net inflows of other investment increased from US $0.29 billion to US $3.66 billion. The current account surplus in November is expected to edge up as net exports rose to US $8.00 billion from US $7.16 billion in the previous month.

Capital & financial account balance

Source: Bank of Korea (balance of payments trends)

15 (US $ billion) 10

5

0

-5

-10

-15

2006.1

2007.1

2008.1

2009.1

Direct investment

2010.1

2011.1

2012.1

Portfolio investment

2013.1

2014.1

Financial derivatives

2015.1

2016.1

Capital & financial account

11. Prices

11.1 Consumer prices

Consumer prices in November rose 1.3 percent year-on-year and fell 0.1 percent month-on-month.

Consumer price inflation

(%)

2015 Year-on-Year Month-on-Month

2016

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

1.3 0.3

0.8 0.0

1.3 0.8

1.0 -0.3

1.0 0.1

0.8 0.0

0.8 0.0

0.7 0.1

0.4 -0.1

1.2 0.6

1.3 0.1

1.3 -0.1

Source: Statistics Korea

December 2016

33


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)

Oil product prices fell at a slower pace than the previous month (down 5.7% → down 2.8%, y-o-y) as rising international oil prices were reflected with a time lag. Public utility charges were down at a slower pace (down 8.2% → down 6.4%, y-o-y) as the government raised natural gas rates by 6.1 percent as of November 1. Prices of manufactured products excluding oil products rose at a slower rate (up 1.1% → up 0.5%, y-o-y) as prices of durable goods and processed goods fell due to large seasonal discounts offered by retailers.

Consumer price inflation in major sectors livestock Manufactured Total Agricultural, & fishery products products Oct (y-o-y, %)

1.3

8.1

0.3

Oil products -5.7

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

1.3 -

7.9 0.57

0.1 0.04

-2.8 -0.11

Excluding Public Housing Public Personal oil products utilities rents services services 1.1 -8.2 2.4 0.8 2.0 0.5 0.15

-6.4 -0.31

2.3 0.23

0.8 0.12

2.1 0.65

Source: Statistics Korea

Consumer prices excluding oil and agricultural products rose 1.4 percent year-on-year, a slower pace than the previous month. (Percentage change from same period in previous year)

2016 Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

1.8 2.0

1.7 1.9

1.8 1.9

1.6 1.9

1.7 2.0

1.6 1.7

1.1 1.7

1.3 1.8

1.5 1.6

1.4 1.4

Consumer prices excluding oil and agricultural products Consumer prices excluding food and energy Source: Statistics Korea

Consumer prices for basic necessities rose at a faster pace than the previous month (up 1.0% → up 1.1%, y-o-y) due to natural gas rate hikes. Fresh food prices rose at a slower rate (up 15.4% → up 15.0%, y-o-y) as vegetable prices fell.

34

The Green Book : Current Economic Trends


(Percentage change from same period in previous year)

2016 Consumer prices for basic necessities

Feb 0.9

Mar 0.4

Apr 0.5

May 0.1

Jun 0.1

Jul 0.0

Aug -0.6

Sep 0.6

Oct 1.0

Nov 1.1

Fresh food prices

9.7

9.7

9.6

3.5

-1.7

-0.4

2.8

20.5

15.4

15.0

Source: Statistics Korea

11.2 International oil and commodity prices

International oil prices fell month-on-month in November, despite expectations that OPEC member countries would agree to cut production, due to the strong dollar as well as concerns about a supply glut amid increasing oil rigs and oil production in the US. Dubai crude (US $/barrel) 44.7 (1st week Nov) → 43.1 (2nd week) → 42.7 (3rd week) → 45.7 (4th week) → 46.4 (5th 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

(US $/barrel, period average)

2014

2016

2015

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Aug

Sep

Oct

Nov

Dubai crude

96.6

50.7

51.9

60.5

49.9

40.8

30.5

43.2

46.3

43.6

43.3

49.0

44.0

Brent crude

99.4

53.6

55.1

63.5

51.3

44.7

35.2

47.0

49.9

47.2

47.2

51.4

47.1

WTI crude

92.9

48.8

48.6

58.0

46.5

42.2

33.7

45.6

48.9

44.8

45.2

49.9

45.8

Source: Korea National Oil Corporation

December 2016

35


Domestic gasoline prices increased month-on-month in November as rising international oil prices were reflected with a time lag. Domestic gasoline prices (won/liter) 1,428.5 (1st week Nov) → 1,429.0 (2nd week) → 1,427.3 (3rd week) → 1,424.8 (4th week) → 1,425.2 (5th week) International gasoline prices (US $/barrel) 60.8 (3rd week Oct) → 60.9 (4th week) → 58.4 (1st week Nov) → 55.2 (2nd week) → 54.6 (3rd week) Dollar-won exchange rate (won) 1,129.9 (3rd week Oct) → 1,135.1 (4th week) → 1,143.7 (1st week Nov) → 1,143.2 (2nd week) → 1,168.3 (3rd week) (Won/liter, period average)

2014

2016

2015

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Aug

Sep

Oct

Nov

Gasoline prices

1,827

1,510

1,485

1,543

1,544

1,468

1,363

1,396

1,438

1,412

1,408

1,417

1,427

Diesel prices

1,638

1,300

1,313

1,344

1,309

1,233

1,121

1,168

1,225

1,207

1,203

1,211

1,223

Source: Korea National Oil Corporation

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

Dubai crude (import prices, won, left)

2012.1

2013.1

2014.1

2015.1

2016.1

20

Dubai international prices (dollar, right)

International corn and wheat prices fell in November due to an upward revision to the grain stock outlooks and good weather conditions.

36

The Green Book : Current Economic Trends


The US Department of Agriculture (USDA) upgraded on November 9 its 2016-17 global grain stockpile forecast from 618 million tons to 621 million tons. The USDA also expected that abundant rainfall in Brazil would provide favorable conditions for grain seeds to germinate. International grain price increases in November (monthly average, m-o-m, %) -1.3 (corn), -1.4 (wheat), 3.2 (soybeans)

International copper and aluminum prices rose due to falling inventories and expectations that infrastructure investments would increase in the US. As of November 22, copper inventories on the London Metal Exchange (LME) fell 34 percent since the end of September. Demand for nonferrous metals is expected to grow as the US president-elect pledged to increase infrastructure investments during his campaign. Nonferrous metal price increases in November (monthly average, m-o-m, %) 15.0 (copper), 4.3 (aluminum), 8.5 (nickel), 11.0 (zinc), 6.8 (lead), 5.2 (tin) (Period average)

2014 1

Reuters Index (Sep 18,1931=100)

2016

2015

Annual Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Aug

Sep

Oct

Nov

2,523 2,328 2,368 2,394 2,287 2,269 2,115 2,250 2,361 2,444 2,423 2,493 2,543

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

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

CRB (left)

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

0

Reuters Index (right)

December 2016

37


12. Real estate market 12.1 Housing market

Housing prices nationwide rose 0.2 percent month-on-month in November. Housing prices rose 0.2 percent in the Seoul metropolitan area, which includes Seoul (up 0.3%), Gyeonggi Province (up 0.2%) and Incheon (up 0.1%).

Housing sales prices

(Percentage change from previous period)

2010

2011

2012

2013

2015

2014

Annual Annual Annual Annual Annual Annual

2016

Oct

Nov Annual Aug

Sep

Oct

Nov

Nationwide

1.9

6.9

0.0

0.3

1.7

3.5

0.3

0.3

0.6

0.1

0.1

0.2

0.2

Seoul metropolitan area

-1.7

0.5

-3.0

-1.1

1.5

4.4

0.4

0.4

1.2

0.2

0.1

0.2

0.2

Seoul

-1.2

0.3

-2.9

-1.4

1.1

4.6

0.5

0.5

2.0

0.3

0.3

0.4

0.3

Gangnamš

-1.0

0.3

-3.5

-1.1

1.2

5.2

0.5

0.5

2.5

0.3

0.3

0.6

0.4

Gangbuk²

-1.4

0.3

-2.3

-1.7

1.1

3.9

0.5

0.4

1.6

0.2

0.2

0.3

0.3

Areas excluding the Seoul metropolitan area

6.4

15.1

3.1

1.7

1.9

2.7

0.2

0.3

0.1

0.0

0.0

0.1

0.1

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

2. Northern Seoul

Housing sales prices Source: Korea Appraisal Board 3 (m-o-m, %)

2

1

0

-1

2009.1

7

Nationwide

38

2010.1

7

2011.1

7

2012.1

7

Seoul metropolitan area

The Green Book : Current Economic Trends

2013.1

7

2014.1

7

2015.1

7

2016.1

7

Areas excluding Seoul metropolitan area


Housing prices rose 0.1 percent in areas excluding the Seoul metropolitan area, which include the five metropolitan cities (up 0.2%) and the eight provinces (up 0.0%). Housing price increases in five metropolitan cities (m-o-m, %) Busan (0.6), Daegu (0.0), Gwangju (0.1), Daejeon (0.1), Ulsan (0.0)

Housing rental prices nationwide rose 0.1 percent month-on-month in November. Rental prices increased 0.2 percent in the Seoul metropolitan area and 0.1 percent in areas excluding the Seoul metropolitan area. Housing rental price increases in major districts in Seoul (m-o-m, %) Gangman (0.1), Seocho (0.1), Yangcheon (0.6), Gwanak (0.4), Mapo (0.3)

Housing rental prices

(Percentage change from previous period)

2015

2010 2011 2012 2013 2014 Annual Annual Annual Annual Annual Annual

2016

Oct

Nov Annual Aug

Sep

Oct

Nov

Nationwide

7.1

12.3

3.5

4.7

3.4

4.8

0.4

0.4

1.2

0.1

0.1

0.1

0.1

Seoul metropolitan area

6.3

11.0

2.1

6.2

4.7

7.1

0.6

0.6

1.9

0.2

0.1

0.2

0.2

Seoul

6.4

10.8

2.1

6.6

3.6

7.2

0.6

0.7

1.8

0.1

0.1

0.2

0.2

Gangnamš

7.6

11.1

2.4

6.7

3.3

7.9

0.5

0.7

1.7

0.1

0.1

0.2

0.2

Gangbuk²

5.1

10.6

1.8

6.4

3.8

6.5

0.8

0.8

2.0

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

0.6

0.0

0.0

0.1

0.1

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

2. Northern Seoul

Housing rental prices Source: Korea Appraisal Board 3 (m-o-m, %)

2

1

0

-1

-2

2009.1

7

Nationwide

2010.1

7

2001.1

7

2012.1

7

Seoul metropolitan area

2013.1

7

2014.1

7

2015.1

7

2016.1

7

Areas excluding Seoul metropolitan area

December 2016

39


There were 108,601 housing transactions in October, up 18.5 percent from a month earlier (91,612) and up 2.2 percent from a year ago (106,274).

Housing transactions 2011

2012

(Thousands)

2013

2014

2015

2016

Annual Annual Annual Annual Annual Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct 1

Nationwide

82

1

1

61

71

1

1

84

99

106

98

88

62

59

78

86

89

93

96

98

92

109

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

Monthly housing transactions 150

Source: Ministry of Land, Infrastructure and Transport

(thousands)

125

100

75

50

25

0 2009.1

7

2010.1

7

2011.1

Nationwide

7

2012.1

7

Seoul metropolitan area

2013.1

7

2014.1

7

2015.1

7

2016.1

7

Areas excluding Seoul metropolitan area

12.2 Land market

Land prices nationwide rose 0.25 percent month-on-month in October. Land prices increased 0.25 percent in the Seoul metropolitan area, led by Seoul (up 0.29%) and Gyeonggi Province (up 0.23%). Land price increases in Seoul metropolitan area (m-o-m, %) 0.18 (Mar 2016) → 0.20 (Apr) → 0.21 (May) → 0.24 (Jun) → 0.25 (Jul) → 0.23 (Aug) → 0.24 (Sep) → 0.25 (Oct)

Land prices rose 0.25 percent in areas excluding the Seoul metropolitan area, led by Daejeon (up 0.30%), Gwangju (up 0.30%) and Sejong (up 0.42%). Land price increases in areas excluding Seoul metropolitan area (m-o-m, %) 0.27 (Mar 2016) → 0.24 (Apr) → 0.24 (May) → 0.25 (Jun) → 0.24 (Jul) → 0.24 (Aug) → 0.24 (Sep) → 0.25 (Oct)

40

The Green Book : Current Economic Trends


Land prices

(Percentage change from previous period)

2010

2011

2012

2013

2015

2014

Annual Annual Annual Annual Annual Annual

2016

Q3

Q4

Annual

Q1

Q2

Q3

Aug

Sep

Oct

Nationwide

1.05

1.17

0.96

1.14

1.96

2.40

0.60

0.72

2.23

0.56

0.68

0.72

0.23

0.24

0.25

Seoul

0.53

0.97

0.38

1.21

2.66

2.69

0.69

0.72

2.47

0.57

0.76

0.83

0.27

0.27

0.29

Gyeonggi

1.49

1.47

1.04

0.91

1.24

1.73

0.43

0.52

1.83

0.37

0.58

0.64

0.21

0.21

0.23

Incheon

1.43

0.66

0.46

0.87

1.35

1.95

0.54

0.50

1.45

0.34

0.48

0.47

0.15

0.14

0.15

Source: Korea Appraisal Board

There were 274,000 land transactions in October, up 14.0 percent from the previous month and up 4.0 percent from a year ago (263,000). Land transactions nationwide increased month-on-month, led by Seoul (up 13.9%), Daejeon (up 23.0%), Gwangju (up 23.0%) and South Chungcheong Province (up 23.6%). Vacant land transactions, which accounted for 32.2 percent of total land transactions, recorded 88,000, up 9.5 percent month-on-month and down 5.8 percent compared with a year ago (94,000).

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

2016.1

2015.1

Areas excluding Seoul metropolitan area

Land transactions

(Land lots, thousands)

2011 2012 2013 2014

2015

Annual1 Annual1 Annual1 Annual1 Annual1 Oct

2016 Jul

Aug Sep

Oct

170

187

220

257

263

259

274

207

191

248

245

253

262

258

266

240

274

18

13

17

22

30

31

29

28

21

20

26

28

31

34

37

38

31

35

Gyeonggi

43

33

37

46

58

63

61

62

48

44

56

57

59

65

69

70

64

74

Incheon

10

8

8

10

12

14

13

12

8

8

10

12

13

13

15

15

13

14

Nationwide 208 Seoul

Nov Dec

Jan

Feb

Mar

Apr May Jun

1. Monthly average Source: Korea Land & Housing Corporation

December 2016

41


13. Composite indices of business cycle indicators

Industrial output in October decreased 0.4 percent month-on-month and increased 2.0 percent year-on-year. Output rose month-on-month in public administration (up 4.2%), but fell in mining & manufacturing (down 1.7%), services (down 0.2%) and construction (down 0.8%).

Index of all industry production 20

Source: Statistics Korea (industrial activity trends)

(%)

15

10

5

0

-5

-10

-15

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

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

2015.1

2016.1

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

2016 Mar

Apr

May

Jun

0.7 2.4

-0.7 0.8

2.0 5.0

0.7 4.8

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

119.5 0.1

119.8 0.3

120.4 0.5

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

100.0 -0.2

100.0 0.0

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

123.9 0.3

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

100.3 0.0

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

Jul

Aug1

Sep1

Oct1

0.0 3.5

0.0 5.1

-0.8 1.3

-0.4 2.0

121.0 0.5

121.8 0.7

122.4 0.5

122.4 0.0

122.3 -0.1

100.3 0.3

100.5 0.2

100.9 0.4

101.2 0.3

100.9 -0.3

100.6 -0.3

124.5 0.5

124.9 0.3

125.3 0.3

125.8 0.4

126.5 0.6

127.3 0.6

127.9 0.5

100.4 0.1

100.4 0.0

100.3 -0.1

100.4 0.1

100.7 0.3

100.9 0.2

101.0 0.1

1. Preliminary

The cyclical indicator of the coincident composite index fell 0.3 points month-on-month to 100.6. Out of seven components of the coincident composite index, retail sales and nonfarm payroll employment increased, while five others, including mining & manufacturing production, the value of construction completed and imports, decreased.

42

The Green Book : Current Economic Trends


Components of the coincident composite index in October (m-o-m) retail sales (0.8%), nonfarm payroll employment (0.1%), mining & manufacturing production (-1.2%), value of construction completed (-0.8%), imports (-0.7%), domestic shipments (-0.5%), service output (-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 0.1 points month-on-month to 101.0. Five components of the leading composite index, including domestic shipments of machinery and the ratio of job openings to job seekers, were up, while three others, such as the value of construction orders received and the inventory circulation indicator, were down. Components of the leading composite index in October (m-o-m) domestic shipments of machinery (1.8%), ratio of job openings to job seekers (1.5%p), KOSPI (0.5%), consumer expectations index (0.1p), spreads between long & short term interest rates (0.05%p), value of construction orders received (-3.0%), inventory circulation indicator (-0.9%p), ratio of export to import prices (-0.2%)

Cyclical indicator of leading composite index 110

Source: Statistics Korea (industrial activity trends)

(points)

100

90

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

December 2016

43


Policy Issue

2017 economic policies

44

Policy The Green Issue Book : Current Economic Trends


2017 Economic Policies

Background The economy will have to deal with weakening recovery momentum due to increasing external and internal uncertainties, slowing domestic demand and structural issues. It is likely that ordinary citizens will be affected if the weakening of the momentum continues. - External uncertainties: Another round of US rate hikes, US trade policy change under the new administration, worries over Brexit and massive corporate debt in China - Internal uncertainties: Slowing domestic demand amid consumption and construction investment losing momentum, which used to fill sluggish exports - Worries over deteriorating job markets and income volatility among lower income population - Worries over weakening growth momentum due to major industries losing competitiveness and birth rates remaining low The 2017 economic policies prioritize successfully managing risks that arise from those uncertainties and ensure that working classes will not be affected, as well as focus on restructuring to develop growth potential and on preparation for the future.

2017 economic policies 1. Maintain growth momentum and successfully manage risks Over 20 trillion won of spending to boost the economy - Expansionary fiscal spending: More than 13 trillion won of spending to be loaded to the first quarter, the largest ever, to avoid a slowdown and support job creation - Provide 187 trillion won of policy financing, an increase of 8 trillion won compared with 2016, through state-owned financial institutions1, 25 percent of which will be spent in the first quarter

1. Korea Development Bank, Industrial Bank of Korea, Korea Credit Guarantee Fund, Korea Technology Finance Corporation

December 2016

45


Work on the recovery of economic sentiment, and expand investment in eco-friendly and safety industries - Increase the corporate tax credit for job creation investment: Provide a 2 percentage point extra credit2 for jobs created in 2017, which will encourage businesses to start projects in advance - Carry out a government-wide review of the Anti-graft Act, focusing on its performance and effect - Reinforce investment in eco-friendly industries: For example, to promote electric vehicles, increase the number of electric vehicle charging stations to 12,900, 110 billion won worth of investment, and at the same time provide a 50 percent toll discount - Launch port redevelopment projects and jointly invest 3.7 trillion won with the private sector in 2017 alone

Cope adequately with protectionism and promote participation in overseas infrastructure projects - Review the import of natural resources, such as shale gas, for balanced trade with US - Increase financial support by 2.2 trillion won to help win overseas infrastructure projects - Provide 1.7 trillion won worth of EDCF3 to support participation in developing country infrastructure projects

Maintain external soundness and safeguard financial market stability - Strengthen IR activities overseas: Hold IR in New York in January, hosted by DPM - Lower interest rates for SME financing from 2.47 percent to 2.3 percent, and increase SME financial support by 6.8 trillion won, including up to 3 trillion won of a guarantee increase through Korea Credit Guarantee Fund and Korea Technology Finance Corporation

Support restructuring by providing financial aid and improving procedures - Expand KAMCO’s4 buy and lease back program from 100 billion won to 500 billion won, in which KAMCO takes over assets from financially troubled companies and lease back the assets to the companies5 - Come up with plans to help declining sectors regain strength - Promote the use of ‘prepackaged bankruptcy6’ and review the launch of a body that deals with bankrupt companies

Successfully deal with household debt problems - Control the household debt increase below 10 percent - Improve household debt quality, such as by raising the target ratio of loans with amortization schedules for bank as well as nonbank loans

2. 1 percentage point for large conglomerates 3. Economic Development Cooperation Fund, Korea’s financial aid program for developing countries 4. KAMCO: Korea Asset Management Corporation 5. The program is also available to large conglomerates 6. In which restructuring plans are agreed in advance of the company’s declaring insolvency, ultimately leading to saved time and money

46

Policy Issue


Flexibly manage housing markets - Flexibly respond to housing market overheating or cooling off by implementing measures tailored to the region - Increase the supply of affordable rental homes, including Jeonse7, to 50,000 units, if necessary, buy unsold presale housing units under repurchase agreements to help builders relieve their financial difficulties, or buy housing units and lease them at affordable rates to stabilize the housing market

2. Support the working class Create jobs - Private sector jobs: A total of 17.1 trillion won of private sector job creation budgets, an increase from 15.8 trillion won in 2016, to be implemented according to the frontloaded schedule -P ublic sector jobs: Increase government employees by 10,000 and public sector employees by 60,000 - Young adults: Of a total of 2.6 trillion won of young adult employment budgets, large amounts to be implemented in the first quarter. The corporate tax credit for regular positions created will be raised from 5 million won per employee to 7 million won, and from 2 million won to 3 million won for large conglomerates - Women: Promote the employment of women who want to return to work, as well as promote jobs with ‘working flexible hours’ - Increase job trainee entitlements from 1 million won per month to 2 million won8, to support those losing jobs due to restructuring and encourage them to find new jobs through training -D raw up plans to help those losing jobs due to restructuring maintain income

Work on improving income security - Promote fair treatment of employees: Strengthen supervision at workplace to ensure fair treatment, work on regulation revision to impose a ban on illegally employing foreigners, raise the ceiling of loans employers can take out if the money is used to pay unpaid wages - Review the current welfare programs to increase support for low income families with 1-2 members and senior households: Complete the first round of basic social security plans, which include plans to increase low income household benefits, revise senior employment programs to encourage low income seniors to work, such as giving extra points to basic social pension recipients - Work to increase disposable income of the working class by easing burdens of basic living costs and keeping necessities prices low

Address unfair practices against temporary workers and small businesses - Announce a temporary-worker support package in the second half, which will contain expanded corporate tax credit for transferring workers from temporary positions to permanent positions, from 2 million won per transfer to 5 million won, as well as contain revised criteria for assessing discrimination in the workplace

7. A type of rental home with lump-sum deposits and no monthly payments 8. Up to 10 million won a year

December 2016

47


- Root out unfair business practices, such as unfair cross-affiliate deals and unbalanced relations between franchisors and franchisees - The reporting of insider deals between overseas affiliates to be mandatory, as well as insider transactions of shares

3. Structural reform and preparation for the future Prepare for the fourth industrial revolution by innovating infrastructure, technology and industries - Launch a Strategic Committee on the Fourth Industrial Revolution, which will act as a control tower to cope with economic and social changes due to the fourth revolution - Promote data analysis and its use to gain a competitive edge in the fourth revolution - Work on deregulation, such as adopting ‘regulation free zones’, to break down barriers to innovation - Revise government support programs to focus on new industries, including Korea Development Bank’s investment and loan programs - Accelerate structural reform of the labor, public, finance and education sectors to support the fourth industrial revolution

Address low birth rates and prepare for population ageing - Thoroughly examine fiscal projects aimed at raising birth rates and reflect outcomes when drawing up budget plans, from 2018 onwards - Review the expansion of the current multiple children benefits from families with three or more children to families with two or more - Introduce marriage tax breaks: Income tax credit of 500,000 won per person9 - Prepare for population ageing: Adjust state pension ages and retirement ages, and work on diversifying income streams of the elderly

2017 outlook - Growth: 2.6 percent growth, similar to 2016, is expected, with a nominal growth rate slowing down to 3.8 percent. The low nominal growth rate outlook is due to deteriorating terms of trade amid rising oil prices, which lead to a low GDP deflator. - Employment: A total of 260,000 jobs are expected to be added to the economy. - Inflation: The annual consumer price inflation is projected to be 1.6 percent. - Current account balance: The current account surplus is expected to decline to US $82 billion, as exports are projected to increase 2.9 percent and imports to rise 7.2 percent.

9. 1 million won if both work

48

Policy Issue


Economic News Briefing

2017 budget approved at the National Assembly Government to frontload 68% of budget in first half of 2017 Korea grows 0.6% in Q3 (preliminary) External debt rises to US $400.4 bn in Q3 Economy picks up in 2018 according to the OECD Daily transactions in won-yuan direct trading market average US $2 bn Korea tops ICT Development Index for second consecutive year December 2016

49


2017 budget approved at the National Assembly A total of 400.5 trillion won of budget spending, 0.2 trillion won less compared with the 2017 budget proposal, was approved by the National Assembly on December 3. Total revenues were cut by 0.3 trillion won to 414.3 trillion won, and government debt is expected to decline 0.3 trillion won to 682.4 trillion won, 40.4 percent to GDP, according to the adjustment.

Government to frontload 68% of budget in first half of 2017 The Ministry of Strategy and Finance (MOSF) announced on December 6 that a total of 68 percent of the 2017 budget will be set aside for spending in the first half to spur growth, as the government will frontload budgets earmarked for increasing employment, completing SOC projects and improving safety. Fixed budgets, such as operating expenses and labor costs, will be spread out evenly throughout the year with adjustments according to seasonal demand.

Korea grows 0.6% in Q3 (preliminary) Korea’s real gross domestic product (GDP) expanded 0.6 percent quarter-on-quarter and 2.6 percent year-on-year in the third quarter of 2016, according to preliminary data released by the Bank of Korea (BOK) on December 2. Both the quarter-on-quarter and year-on-year figures were revised down 0.1 percentage points from the advanced estimates that were released on October 25. On the production side, agriculture, forestry & fisheries contracted 1.6 percent compared to the previous quarter. Manufacturing decreased 0.9 percent, led by transportation equipment and electric & electronic equipment, while construction grew 3.7 percent, led by building construction. Services were up 0.9 percent, due to gains in health & social welfare services and communications services. On the expenditure side, private consumption rose 0.5 percent, led by nondurable goods and services, while government consumption was up 1.4 percent due to an increase in health insurance benefits. Facility investment rose 0.2 percent, led by transportation equipment. Construction investment was up 3.5 percent, as investment in both residential and nonresidential building construction increased. Exports rose 0.6 percent, led by semiconductors and chemical products, while imports increased 2.8 percent, led by machinery equipment and overseas consumption by residents.

50

Economic News Briefing


GDP by production and expenditure*

(Percentage change from previous period)

2014 GDP Agriculture, forestry & fisheries Manufacturing

20151

20161

Q1 1.1 (3.9)2 -1.6

Q2 0.6 (3.5)2 -0.4

Q3 0.7 (3.4)2 1.6

Q4 0.3 (2.7)2 1.7

Q1 Q2 0.8 0.4 (2.4)2 (2.2)2 3.7 -11.0

Q3 1.2 (2.8)2 4.7

Q4 0.7 (3.1)2 -2.6

Q1 0.5 (2.8)2 6.5

Q2 0.8 (3.3)2 -6.6

Q3 0.6 (2.6)2 -1.6

1.8

1.0

-0.7

-0.2

0.4

0.9

0.4

0.7

-0.2

1.2

-0.9

Construction Services3

1.9

0.1

-0.2

-2.1

1.8

-0.1

5.5

0.7

4.8

1.0

3.7

0.9

0.4

1.2

0.7

0.7

0.2

1.1

0.7

0.5

0.6

0.9

Private consumption Government consumption

0.4

-0.3

0.7

0.3

0.8

-0.1

1.1

1.4

-0.2

1.0

0.5

0.5

0.8

1.9

0.1

0.5

0.9

1.3

1.0

1.3

0.1

1.4

Facility investment

-1.1

1.3

0.3

3.5

0.5

0.8

1.8

0.5

-7.4

2.8

0.2

Construction investment

3.3

1.1

-0.8

-4.9

5.5

1.8

3.3

-2.4

6.8

3.1

3.5

Intellectual property investment

2.0

0.0

0.0

-0.1

1.7

-0.6

0.3

0.7

0.3

1.5

0.6

Exports Imports

0.8 -1.6

1.1 0.8

-1.5 -0.1

0.3 0.4

0.6 0.9

-0.1 0.4

-0.3 1.4

2.1 3.2

-1.1 -3.1

1.1 2.1

0.6 2.8

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

External debt rises to US $400.4 bn in Q3 Korea’s external debt amounted to US $400.4 billion as of the end of September 2016, an increase of US $8.6 billion from the previous quarter. Short-term debt increased US $5 billion quarter-on-quarter to US $111.8 billion as a result of a rise in borrowings by banks. Long-term debt rose US $3.6 billion quarter-on-quarter to US $288.6 billion, largely due to a rise in foreigners’ investment in Korean bonds. (US $ billion, end-period)

2012

2013

2014

2015

Dec

Dec

Dec

Dec (A)

Jun (B)

2016 Sep (C)

(C-B)

Change (C-A)

Total debt

408.9

423.5

424.4

395.4

391.8

400.4

8.6

5.0

Short-term

128.0

111.8

116.4

107.1

106.8

111.8

5.0

4.7

Long-term

281.0

311.7

308.0

288.3

285.0

288.6

3.6

0.3

External debt soundness indicators remain stable, as the ratio of short-term external debt to total external debt stayed low at 27.9 percent and the ratio of short-term external debt to foreign exchange reserves remained low compared to the previous quarter at 29.6 percent, although both indicators slightly rose quarter-on-quarter, up 0.7 percentage points each. Solvency improved as net foreign assets in debt instruments (total external assets in debt instruments minus total external debt) increased by US $25.7 billion to a record high of US $383.5 billion.

December 2016

51


Economy picks up in 2018 according to the OECD The Organization for Economic Cooperation and Development (OECD) predicted that the Korean economy is likely to grow 2.7 percent in 2016 and 2.6 percent the following year. According to the OECD’s latest economic outlook report released on November 28, the Korean economy will continue to grow at a steady pace this year due to low interest rates and increased fiscal spending. The report suggests that the country continue to increase fiscal spending and pursue structural reform in order to break out of low growth, and projects that the economy will pick up in 2018 as global trade increases. Although the economy has been struggling due to short-term risks, such as recent problems in the mobile phone industry, political uncertainty and restructuring in troubled industries, as well as a delayed rebound in world trade, “well designed fiscal stimulus and effective structural reforms could reignite domestic demand and reverse the decline in the country’s export performance, leading to faster growth”, according to the report.

Daily transactions in won-yuan direct trading market average US $2 bn Seoul’s won-yuan direct exchange market has maintained an average of US $2 billion worth of daily transactions since its opening in December 2014, with averages of US $2.27 billion and US $2.02 billion in 2015 and 2016, respectively. The volume of transactions has decreased somewhat since September this year due to seasonal factors and as foreign exchange rate volatility increased globally following the US presidential election. The Seoul direct market is competitive in terms of spread, and getting more and more competitive in terms of brokerage fees: The bid-ask spread, between 0.01 won and 0.03 won, is smaller than the arbitrage transaction spread, between 0.01 won and 0.04 won, and brokerage fees fell from 2,000 won per 1 million yuan before the opening of the market to around 740 won in 2016.

Korea tops ICT Development Index for second consecutive year Korea has been ranked first out of 175 countries in this year’s ICT Development Index, a composite index released annually by the International Telecommunications Union (ITU) that compares the level of ICT development in three areas of ICT access, ICT use and ICT skills. Korea topped the index for the second consecutive year in 2016.

52

Economic News Briefing


Statistical Appendices

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


1. National accounts Agri., fores. & fisheries

Manufacturing

Final consumption expenditure

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

Period 2009 2010 2011 2012 2013 2014 2015p

Gross fixed capital formation Construction

Facilities

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

2015p Ⅰ 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

2016p Ⅰ Ⅱ Ⅲ

2.8 3.3 2.6

-2.4 1.5 -4.6

1.9 2.2 0.8

2.7 3.4 3.0

3.0 5.3 5.3

9.6 10.8 11.4

-4.5 -2.7 -4.2

p: Preliminary Source: Bank of Korea

54

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

Real GDP

Statistical Appendices


2. Production, shipment and inventory Production index*

Period

Shipment index*

y-o-y change (%)

2013 2014 2015

Inventory index*

y-o-y change (%)

(constant prices, 2010=100)

Service production index

y-o-y change (%)

y-o-y change (%)

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 Ⅲp

105.5 109.5 106.2

-0.2 1.0 0.7

105.2 109.5 106.0

-0.8 1.3 0.2

136.1 131.1 127.5

3.0 -2.2 -7.4

111.2 115.6 115.6

2.8 3.7 3.6

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 7 8 9p 10p

105.7 98.2 112.5 107.1 110.1 111.3 110.4 103.7 104.5 110.6

-2.2 2.3 -0.5 -2.5 4.7 0.9 1.6 2.3 -1.7 -1.6

103.9 97.5 114.2 108.0 109.5 111.0 108.5 104.1 105.3 110.3

-3.9 0.9 0.9 -1.5 3.9 1.6 0.9 2.0 -2.2 -2.0

136.9 136.6 136.1 132.4 133.5 131.1 133.7 130.2 127.5 127.8

4.3 3.6 3.0 -1.0 0.4 -2.2 -2.5 -4.8 -7.4 -6.1

110.1 107.6 115.8 113.9 115.6 117.4 115.3 115.9 115.5 116.9

3.0 2.8 2.5 2.0 3.7 5.4 3.2 4.8 2.6 2.5

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

December 2016

55


3. Production capacity and operation ratio Period

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

y-o-y change (%)

Average operation ratio* (%)

2013 2014 2015

108.6 110.4 111.7

1.6 1.7 1.2

95.1 94.3 92.1

-2.5 -0.8 -2.3

76.5 76.2 74.3

2014 Ⅰ Ⅱ Ⅲ Ⅳ

109.7 109.9 110.7 111.2

1.5 1.5 1.7 1.7

92.9 96.8 91.5 95.8

-0.9 -1.1 0.8 -2.5

77.2 76.3 75.9 75.2

2015 Ⅰ Ⅱ Ⅲ Ⅳ

111.5 111.6 111.7 112.0

1.6 1.5 0.9 0.7

90.0 94.9 89.8 93.8

-3.1 -2.0 -1.9 -2.1

74.3 74.3 74.9 73.6

2016 Ⅰ Ⅱ Ⅲp

112.0 112.0 112.2

0.4 0.4 0.4

88.6 92.1 87.0

-1.6 -3.0 -3.1

73.2 72.2 71.9

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 7 8 9p 10p

111.8 111.9 112.2 112.1 112.0 111.9 112.0 112.2 112.3 112.9

0.3 0.5 0.4 0.5 0.4 0.2 0.4 0.6 0.2 0.7

89.0 81.2 95.6 90.1 92.8 93.3 92.2 83.8 84.9 90.8

-4.1 0.2 -0.7 -5.9 1.1 -3.9 -2.6 -2.6 -4.4 -4.8

72.3 73.5 73.8 71.3 73.1 72.2 73.8 70.2 71.6 70.3

* Manufacturing industry p: Preliminary Source: Statistics Korea

56

Operation ratio index* (2010=100)

Statistical Appendices


4. Consumer goods sales index

(constant prices, 2010=100)

Consumer goods sales index Durable goods Semi-durable goods

Period

y-o-y change (%)

y-o-y change (%)

Nondurable goods

y-o-y change (%)

y-o-y change (%)

2013 2014 2015

107.9 110.1 114.4

0.7 2.0 3.9

116.7 122.7 135.2

0.3 5.1 10.2

106.1 105.3 104.0

2.1 -0.8 -1.2

104.7 106.4 109.1

0.4 1.6 2.5

2014 Ⅰ Ⅱ Ⅲ Ⅳ

106.5 109.0 109.3 115.7

2.6 1.2 2.0 2.4

117.4 121.2 123.4 128.6

5.7 2.3 5.5 6.9

100.1 104.6 96.0 120.5

-2.0 -2.5 1.2 0.5

104.3 105.2 108.6 107.5

3.1 2.2 0.6 0.8

2015 Ⅰ Ⅱ Ⅲ Ⅳ

108.8 112.7 113.2 122.8

2.2 3.4 3.6 6.1

126.7 132.0 132.9 149.3

7.9 8.9 7.7 16.1

97.9 103.2 92.7 122.3

-2.2 -1.3 -3.4 1.5

105.1 107.7 112.9 110.7

0.8 2.4 4.0 3.0

2016 Ⅰ Ⅱ Ⅲp

113.8 119.7 117.3

4.6 6.2 3.6

133.8 146.7 134.6

5.6 11.1 1.3

100.5 107.9 96.1

2.7 4.6 3.7

110.2 112.2 118.4

4.9 4.2 4.9

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2016 1 2 3 4 5 6 7 8 9p 10p

112.9 108.6 119.8 116.5 122.9 119.6 118.1 117.0 116.8 124.1

4.6 3.2 5.8 4.2 5.4 9.1 4.4 6.1 0.6 2.3

125.3 125.0 151.1 139.3 146.0 154.9 141.2 137.2 125.5 144.1

-2.3 6.6 12.3 7.8 12.0 13.6 0.7 6.2 -3.0 0.6

101.6 93.1 106.7 109.4 115.1 99.1 98.8 89.6 100.0 123.5

4.1 1.7 2.0 2.1 0.7 12.2 7.4 1.7 2.0 1.1

112.0 107.8 110.9 109.0 115.5 112.0 115.7 119.5 120.1 114.9

8.8 2.2 3.7 3.1 4.0 5.4 5.5 7.5 2.0 3.9

p: Preliminary Source: Statistics Korea

December 2016

57


5. Consumer goods shipment index and consumer sentiment index

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

Period 2013 2014 2015

102.2 102.0 104.4

-0.3 -0.2 2.4

103.4 102.7 106.0

0.6 -0.7 3.2

101.7 101.8 103.7

-0.7 0.1 1.9

-

2014 Ⅰ Ⅱ Ⅲ Ⅳ

100.8 100.8 102.5 104.0

-2.1 2.1 0.1 -0.7

103.5 103.0 100.8 103.3

-4.4 2.1 -1.8 1.5

99.7 99.9 103.2 104.4

-1.1 2.3 0.9 -1.4

-

2015 Ⅰ Ⅱ Ⅲ Ⅳ

101.4 100.5 105.4 110.1

0.6 -0.3 2.8 5.9

100.0 102.6 105.5 115.8

-3.4 -0.4 4.7 12.1

102.0 99.6 105.4 107.7

2.3 -0.3 2.1 3.2

-

2016 Ⅰ Ⅱ Ⅲp

104.5 104.8 104.3

3.1 4.3 -1.0

101.8 106.3 94.0

1.8 3.6 -10.9

105.7 104.2 108.8

3.6 4.6 3.2

-

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 7 8 9p 10p 11

106.2 95.0 112.4 106.3 103.6 104.5 102.1 104.8 106.1 104.9 -

1.6 1.0 6.5 1.1 5.7 6.1 -1.1 1.6 -3.5 -7.1 -

96.8 92.8 115.8 106.7 102.2 110.0 92.9 90.4 98.7 90.1 -

-4.5 0.0 9.6 -0.4 4.1 7.3 -13.2 -12.7 -6.7 -22.1 -

110.3 95.9 110.9 106.1 104.2 102.2 106.1 111.0 109.2 111.3 -

4.3 1.3 5.2 1.8 6.3 5.7 4.4 7.9 -2.2 -0.4 -

100 98 100 101 99 99 101 102 102 102 96

p: Preliminary Source: Statistics Korea, Bank of Korea

58

Consumer sentiment index

Statistical Appendices


6. Machinery orders received and facility investment index Period

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 (%)

2013 2014 2015

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

2014 Ⅰ 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

2015 Ⅰ Ⅱ Ⅲ Ⅳ

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

-3.0 14.9 -27.1 6.9

405 493 399 624

-66.9 61.7 -85.3 -19.8

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

11.4 12.5 4.7 10.8

107.7 112.8 111.0 114.7

9.2 4.5 10.2 1.6

2016 Ⅰ Ⅱ Ⅲp

6,486 6,810 5,645

0.9 -2.9 0.9

635 569 470

56.9 15.4 17.7

5,851 6,241 5,175

-2.9 -4.3 -0.4

100.1 113.7 105.6

-7.1 0.8 -4.8

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 7 8 9p 10p

1,758 2,275 2,453 1,987 2,135 2,688 2,011 1,656 1,978 1,782

-24.0 22.7 8.4 -28.2 1.9 24.7 0.4 -1.7 3.6 -13.0

69 255 312 189 169 211 52 84 334 59

-40.7 80.7 110.8 49.3 -14.2 24.6 -61.3 -47.3 214.8 -39.7

1,689 2,020 2,142 1,798 1,966 2,477 1,960 1,572 1,644 1,723

-23.1 18.0 1.2 -31.9 3.5 24.8 4.8 3.1 -8.8 -11.7

96.9 90.7 112.7 110.3 110.4 120.5 104.5 109.2 103.5 107.1

-6.0 -7.9 -7.2 -2.8 3.0 2.4 -12.5 3.1 -4.0 -4.9

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

p: Preliminary Source: Statistics Korea

December 2016

59


7. Value of construction completed and domestic construction orders received

(current value, billion won)

Period

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

y-o-y change (%)

y-o-y change (%)

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

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

y-o-y change (%)

2013 2014 2015

98,089 98,491 99,967

10.6 0.4 1.5

34,459 32,015 30,694

1.9 -7.1 -4.1

59,714 62,413 65,114

18.0 4.5 4.3

77,885 90,606 134,338

-12.9 16.3 48.3

24,736 26,427 28,778

-5.1 6.8 8.9

50,947 62,115 102,449

-14.8 21.9 65.0

2014 Ⅰ Ⅱ Ⅲ Ⅳ

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

7.4 1.6 -0.5 -4.9

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

2.1 -6.5 -10.1 -11.6

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

10.2 6.8 4.2 -1.4

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

16.8 26.4 44.0 -6.8

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

38.0 22.2 3.9 -13.2

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

6.3 32.3 60.7 -2.4

2015 Ⅰ Ⅱ Ⅲ Ⅳ

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

-1.7 -4.4 5.1 6.6

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

-7.8 -6.0 -1.0 -2.0

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

2.2 -3.9 8.4 10.5

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

57.4 49.1 50.4 40.1

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

-22.5 38.2 -5.4 16.6

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

110.4 53.3 67.6 47.9

2016 Ⅰ Ⅱ Ⅲp

24,191 30,026 29,531

13.5 19.9 19.0

6,711 8,136 7,004

1.8 -0.7 -2.4

16,209 20,505 21,295

16.0 29.3 27.9

28,927 32,992 37,426

13.8 -6.3 2.7

7,812 5,570 8,561

70.1 -38.6 74.7

20,406 26,678 26,974

-0.6 4.1 -12.5

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 3 4 5 6 7 8 9p 10p

7,359 7,273 9,559 8,983 9,460 11,583 9,567 9,944 10,020 10,206

7.8 8.7 22.5 16.5 21.8 21.2 21.2 25.3 11.6 20.0

2,042 1,970 2,699 2,316 2,350 3,469 2,239 2,331 2,434 2,304

0.2 -5.9 9.6 -6.1 1.1 2.1 -2.0 5.7 -9.4 1.6

5,003 4,948 6,257 6,269 6,703 7,533 6,968 7,241 7,086 7,518

9.5 13.0 24.6 26.9 30.6 30.1 30.2 33.2 20.8 28.2

7,225 10,014 11,687 10,828 9,657 12,507 12,550 13,415 11,462 14,652

-3.9 84.3 -6.3 19.6 -23.6 -7.5 44.5 54.9 -40.0 41.2

2,691 2,347 2,774 1,190 2,126 2,254 3,170 3,466 1,925 3,227

104.1 106.8 29.6 -54.0 -13.5 -44.0 77.0 80.4 62.1 78.9

4,260 7,586 8,559 9,271 7,412 9,995 8,433 9,446 9,096 11,349

-30.0 79.8 -16.4 44.5 -26.5 9.5 23.7 46.8 -48.2 32.4

p: Preliminary Source: Statistics Korea

60

Type of order Public Private

Statistical Appendices


8. Composite indices of business cycle indicators and BSI Period

Leading index (2010=100)

Cyclical indicator of leading index (2010=100)

Coincident index (2010=100)

Cyclical indicator of coincident index (2010=100)

BSI (results)

BSI (prospects)

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

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

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

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

99.6 99.6 99.3 99.4 99.4 99.7 99.7 99.7 99.5 99.7 99.7 99.9

85.0 83.0 101.3 94.1 97.6 95.0 91.1 89.8 93.0 94.7 91.9 90.5

85.7 86.7 104.4 101.5 99.8 97.2 90.7 92.7 94.4 101.1 94.7 92.6

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2016 1 2 3 4 5 6 7 8p 9p 10p 11 12

123.4 123.5 123.9 124.5 124.9 125.3 125.8 126.5 127.3 127.9 -

100.5 100.3 100.3 100.4 100.4 100.3 100.4 100.7 100.9 101.0 -

119.3 119.4 119.5 119.8 120.4 121.0 121.8 122.4 122.4 122.3 -

100.3 100.2 100.0 100.0 100.3 100.5 100.9 101.2 100.9 100.6 -

92.1 87.0 94.2 97.3 97.1 91.3 89.7 90.0 92.0 89.0 91.0 -

93.2 86.3 98.3 95.7 102.3 94.8 90.5 89.5 95.0 96.0 89.8 91.7

Sources: Statistics Korea, Federation of Korean Industries

December 2016

61


9. Balance of payments ( I) Period 2013 2014 2015

Current account

Goods

81,148.2 84,373.0 105,939.6

Services

Primary income

Secondary income

535,375.9 524,135.2 420,612.0

-6,499.2 -3,678.5 -14,916.8

9,055.7 4,150.8 3,572.4

-4,189.3 -4,984.7 -4,985.2

Exports

Imports

82,781.0 88,885.4 122,269.2

618,156.9 613,020.6 542,811.2

2014

Ⅰ Ⅱ Ⅲ Ⅳ

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

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

151,471.8 158,004.3 150,820.7 152,723.8

133,876.5 132,828.6 129,843.3 127,586.8

-2,889.0 50.8 -459.6 -380.7

-736.9 556.0 1,398.7 2,933.0

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

2015

Ⅰ Ⅱ Ⅲ Ⅳ

23,222.0 26,951.4 28,246.3 27,519.9

24,516.1 33,667.7 31,319.2 32,766.2

131,427.3 142,086.3 133,550.1 135,817.5

106,911.2 108,418.6 102,230.9 103,051.3

-4,111.1 -3,037.3 -3,736.1 -4,032.3

4,067.5 -2,479.2 1,515.2 468.9

-1,250.5 -1,199.8 -852.0 -1,682.9

2016 p Ⅰ Ⅱ Ⅲ

25,349.7 26,337.2 21,509.8

28,954.6 33,534.3 28,268.1

118,316.3 128,243.4 127,558.4

89,361.7 94,709.1 99,290.3

-3,917.8 -3,910.7 -5,660.0

1,197.7 -2,108.9 1,262.5

-884.8 -1,177.5 -2,360.8

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

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

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

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

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

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

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

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

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

7,035.8 6,305.5 9,880.7 7,254.8 8,136.1 11,560.5 9,325.9 8,207.6 10,712.8 9,576.4 9,841.5 8,102.0

6,860.8 7,061.6 10,593.7 11,850.1 8,868.3 12,949.3 10,304.2 8,848.7 12,166.3 10,971.6 10,635.0 11,159.6

44,427.0 39,430.9 47,569.4 49,643.9 43,406.2 49,036.2 47,221.5 42,080.5 44,248.1 46,261.8 43,126.3 46,429.4

37,566.2 32,369.3 36,975.7 37,793.8 34,537.9 36,086.9 36,917.3 33,231.8 32,081.8 35,290.2 32,491.3 35,269.8

-1,913.6 -1,658.4 -539.1 -861.6 -18.2 -2,157.5 -1,502.5 -982.4 -1,251.2 -1,490.5 -1,219.4 -1,322.4

2,711.9 1,130.2 225.4 -3,236.8 -270.3 1,027.9 712.7 460.6 341.9 533.0 612.0 -676.1

-623.3 -227.9 -399.3 -496.9 -443.7 -259.2 -188.5 -119.3 -544.2 -437.7 -186.1 -1,059.1

2016 p 1 2 3 4 5 6 7 8 9 10

7,183.0 7,619.7 10,547.0 3,756.4 10,494.5 12,086.3 8,412.6 5,030.1 8,067.1 8,719.3

8,186.1 7,926.2 12,842.3 9,847.8 10,857.3 12,829.2 10,665.7 6,940.1 10,662.3 9,830.2

37,340.3 36,291.5 44,684.5 40,434.3 42,545.7 45,263.4 42,364.1 41,281.3 43,913.0 43,339.0

29,154.2 28,365.3 31,842.2 30,586.5 31,688.4 32,434.2 31,698.4 34,341.2 33,250.7 33,508.8

-1,837.3 -1,158.3 -922.2 -1,530.8 -1,071.5 -1,308.4 -1,583.4 -1,498.5 -2,578.1 -1,594.5

1,232.2 831.1 -856.6 -4,057.1 858.5 1,089.7 -46.5 531.9 777.1 860.9

-398.0 20.7 -507.5 -503.5 -149.8 -524.2 -623.2 -943.4 -794.2 -377.3

p: Preliminary Source: Bank of Korea

62

(US $ million)

Statistical Appendices


10. Balance of payments ( II)

(US $ million)

Period

Financial account*

Direct investment

Portfolio investment

Financial derivatives

Other investment

Reserve assets

Capital account

2013 2014 2015

80,104.6 89,334.0 106,299.2

15,593.2 18,765.6 19,656.3

9,344.5 30,608.9 49,529.8

-4,410.3 -3,826.9 1,791.3

43,281.1 25,900.6 23,269.2

16,296.1 17,885.8 12,052.6

-27.0 -8.9 -60.2

2014

Ⅰ Ⅱ Ⅲ Ⅳ

15,120.7 24,650.2 21,230.4 28,332.7

2,367.1 7,990.4 2,952.8 5,455.3

12,614.4 4,291.2 4,292.1 9,411.2

-1,004.6 -1,983.9 -1,649.7 811.3

-5,879.9 3,182.9 9,803.2 18,794.4

7,023.7 11,169.6 5,832.0 -6,139.5

-2.1 -4.3 3.6 -6.1

2015

Ⅰ Ⅱ Ⅲ Ⅳ

22,974.3 25,857.1 29,806.1 27,661.7

4,328.8 6,256.2 3,695.1 5,376.2

7,743.0 7,111.1 15,559.7 19,116.0

-726.3 -759.5 4,731.1 -1,454.0

4,518.7 5,947.4 10,106.9 2,696.2

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

-22.0 -25.6 -26.2 13.6

2016p Ⅰ Ⅱp Ⅲp

28,794.3 19,126.9 27,255.5

5,266.0 1,893.5 2,296.8

16,887.9 13,426.6 15,949.6

2,724.0 -1,185.3 -3,798.1

5,202.7 4,043.6 5,850.2

-1,286.3 948.5 6,957.0

-11.6 -7.0 11.0

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

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

6,561.4 6,015.2 10,397.7 9,207.3 7,148.8 9,501.0 10,175.7 8,778.2 10,852.2 11,148.7 7,808.2 8,704.8

933.9 1,186.6 2,208.3 1,267.5 375.4 4,613.3 -394.9 -280.6 4,370.6 3,452.7 589.0 1,334.5

3,385.5 3,030.3 1,327.2 107.2 353.1 6,650.8 8,169.7 2,395.5 4,994.5 7,118.3 5,228.6 6,769.1

-310.7 -332.5 -83.1 -581.5 -429.5 251.5 1,384.8 1,616.5 1,729.8 -1,272.4 -600.1 418.5

-1,475.4 1,931.8 4,062.3 5,010.6 3,951.7 -3,014.9 1,988.9 8,928.5 -810.5 -379.6 978.0 2,097.8

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 -7.3 -8.7 -1.6 -15.3 -29.9 1.5 2.2 -5.4 18.8 0.2

2016 p 1 2 3 4 5 6 7 8 9 10

7,556.3 9,199.0 12,039.0 713.3 9,092.9 9,320.7 10,151.2 7,521.4 9,582.9 7,044.3

13.8 1,645.1 3,607.1 -121.2 698.1 1,316.6 845.5 431.6 1,019.7 1,358.1

5,452.2 5,861.0 5,574.4 2,827.8 4,547.3 6,051.5 254.4 6,712.4 8,982.8 9,868.7

1,227.8 756.6 739.6 -1,043.5 -463.7 321.9 -471.8 -1,292.6 -2,033.7 -740.5

480.2 2,502.0 2,220.0 -2,266.4 3,909.7 2,400.3 7,556.3 -1,419.0 -287.1 -3,662.3

382.3 -1,565.7 -102.9 1,316.6 401.5 -769.6 1,966.8 3,089.0 1,901.2 220.3

-6.1 -2.3 -3.2 -5.0 1.0 -3.0 2.7 17.1 -8.8 -9.6

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

December 2016

63


11. Prices Period

(2010=100)

All items y-o-y change (%)

y-o-y change (%)

Producer prices All items Commodities

Core

y-o-y change (%)

y-o-y change (%)

y-o-y change (%)

y-o-y change (%)

2013 2014 2015

107.7 109.0 109.8

1.3 1.3 0.7

110.1 111.1 110.3

1.0 0.9 -0.7

105.8 107.4 109.4

1.5 1.6 1.8

106.6 108.8 111.1

1.6 2.0 2.2

105.7 105.2 101.0

-1.6 -0.5 -4.0

106.2 104.8 98.0

-2.5 -1.4 -6.4

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

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

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

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

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

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

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

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

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

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

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

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

-2.5 -2.5 -3.7 -4.1 -3.8 -2.2 -1.6 -2.1 -2.8 -2.2 -1.5 -0.9

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

108.5 108.8 109.0 109.1 109.2 109.1 109.3 109.5 109.4 109.1 108.8 108.8

1.1 1.0 1.3 1.5 1.7 1.7 1.6 1.4 1.1 1.2 1.0 0.8

110.9 111.4 111.6 111.3 111.5 111.2 111.2 111.4 111.5 110.6 110.2 110.1

0.9 0.9 1.1 1.3 1.7 1.7 1.4 1.0 0.5 0.5 0.2 0.0

106.6 106.7 107.0 107.3 107.5 107.4 107.7 107.9 107.8 107.8 107.7 107.8

1.3 1.1 1.5 1.6 1.6 1.6 1.7 1.7 1.7 1.7 1.6 1.6

107.7 108.0 108.3 108.5 108.8 108.9 109.1 109.2 109.1 109.1 109.1 109.3

1.7 1.7 2.1 2.3 2.2 2.1 2.2 2.4 1.9 1.8 1.6 1.6

105.6 105.8 105.7 105.6 105.5 105.6 105.7 105.6 105.2 104.5 104.1 103.1

-0.3 -0.9 -0.5 -0.3 0.0 0.1 0.2 -0.2 -0.5 -0.8 -0.9 -2.1

105.7 105.9 105.7 105.4 105.3 105.4 105.4 105.1 104.7 103.6 103.1 101.7

-1.0 -1.7 -1.3 -1.1 -0.7 -0.6 -0.5 -1.1 -1.4 -1.8 -2.0 -3.6

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

109.4 109.4 109.4 109.5 109.8 109.8 110.0 110.2 110.0 110.1 109.9 110.2

0.8 0.5 0.4 0.4 0.5 0.7 0.7 0.7 0.6 0.9 1.0 1.3

110.9 110.6 110.3 110.1 110.6 110.7 110.3 110.5 110.2 109.9 109.7 110.1

-0.1 -0.7 -1.2 -1.1 -0.8 -0.5 -0.8 -0.8 -1.1 -0.6 -0.5 0.0

108.2 108.4 108.7 109.0 109.2 109.2 109.8 110.0 109.9 110.1 110.1 110.3

1.5 1.5 1.6 1.6 1.6 1.6 2.0 2.0 2.0 2.1 2.2 2.3

110.3 110.4 110.6 110.7 111.1 111.1 111.3 111.5 111.4 111.6 111.7 111.9

2.4 2.3 2.1 2.0 2.1 2.0 2.0 2.1 2.1 2.3 2.4 2.4

101.9 101.9 101.8 101.8 101.8 101.8 101.4 100.8 100.3 99.7 99.3 99.0

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

99.7 99.7 99.5 99.3 99.3 99.3 98.6 97.7 97.0 96.0 95.3 95.0

-5.8 -5.8 -5.9 -5.8 -5.7 -5.8 -6.4 -7.1 -7.3 -7.4 -7.6 -6.6

2016 1 2 3 4 5 6 7 8 9 10 11

110.3 110.8 110.5 110.6 110.7 110.7 110.8 110.7 111.4 111.5 111.4

0.8 1.3 1.0 1.0 0.8 0.8 0.7 0.4 1.2 1.3 1.3

109.7 110.5 109.6 109.6 109.5 109.5 109.5 108.9 110.5 110.7 110.4

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

110.8 111.0 111.2 111.4 111.6 111.6 111.9 112.1 112.1 112.1 112.1

2.4 2.4 2.3 2.2 2.2 2.2 1.9 1.9 1.9 1.8 1.8

112.2 112.5 112.5 112.7 112.9 113.0 113.1 112.8 112.8 113.4 113.2

1.7 1.8 1.7 1.8 1.6 1.7 1.6 1.1 1.3 1.5 1.4

98.5 98.5 98.4 98.7 98.8 99.0 98.9 99.0 99.2 99.5 99.9

-3.3 -3.4 -3.3 -3.0 -3.0 -2.7 -2.5 -1.8 -1.1 -0.1 0.7

94.0 93.9 93.8 94.1 94.3 94.6 94.4 94.4 94.7 95.0 95.6

-5.7 -5.9 -5.7 -5.2 -5.1 -4.7 -4.3 -3.4 -2.4 -1.0 0.3

Source: Bank of Korea

64

Consumer prices Commodities Services

Statistical Appendices


12. Employment Period

Economically active persons (thousands)

y-o-y change (%)

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

SOC & services Unemployment rate (%) y-o-y change (%)

2013 2014 2015

25,873 26,536 26,913

1.5 2.6 1.4

25,066 25,599 25,936

1.6 2.1 1.3

4,184 4,330 4,486

1.9 3.5 3.6

19,347 19,805 20,029

1.6 2.4 1.5

3.1 3.5 3.6

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

24,901 24,973 25,397 25,928 26,195 26,291 26,301 26,074 26,186 26,268 26,230 25,736

1.3 0.6 0.7 1.1 1.0 1.4 1.5 1.8 1.7 1.9 2.3 2.4

24,054 23,984 24,514 25,103 25,398 25,478 25,473 25,291 25,466 25,545 25,530 24,962

1.4 0.8 1.0 1.4 1.1 1.4 1.5 1.7 1.9 1.9 2.4 2.3

4,189 4,139 4,141 4,192 4,175 4,180 4,167 4,116 4,174 4,218 4,253 4,264

3.9 1.9 3.1 4.1 2.6 2.3 1.3 0.1 0.5 0.7 0.8 2.0

18,810 18,736 18,989 19,303 19,492 19,531 19,577 19,438 19,540 19,558 19,670 19,514

1.0 0.7 0.6 1.0 1.0 1.5 1.6 2.1 2.2 2.2 3.0 2.7

3.4 4.0 3.5 3.2 3.0 3.1 3.1 3.0 2.7 2.8 2.7 3.0

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

25,650 25,997 26,187 26,714 26,762 26,825 26,891 26,775 26,766 26,809 26,786 26,270

3.0 4.1 3.1 3.0 2.2 2.0 2.2 2.7 2.2 2.1 2.1 2.1

24,759 24,819 25,163 25,684 25,811 25,875 25,979 25,885 25,917 25,951 25,968 25,384

2.9 3.5 2.6 2.3 1.6 1.6 2.0 2.3 1.8 1.6 1.7 1.7

4,280 4,274 4,284 4,288 4,324 4,345 4,358 4,335 4,347 4,361 4,355 4,406

2.2 3.3 3.5 2.3 3.6 3.9 4.6 5.3 4.1 3.4 2.4 3.3

19,376 19,407 19,538 19,819 19,815 19,841 20,003 19,940 19,949 19,973 20,098 19,896

3.0 3.6 2.9 2.7 1.7 1.6 2.2 2.6 2.1 2.1 2.2 2.0

3.5 4.5 3.9 3.9 3.6 3.5 3.4 3.3 3.2 3.2 3.1 3.4

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

26,094 26,398 26,577 26,954 27,211 27,255 27,303 27,064 27,129 27,137 27,082 26,747

1.7 1.5 1.5 0.9 1.7 1.6 1.5 1.1 1.4 1.2 1.1 1.8

25,106 25,195 25,501 25,900 26,189 26,205 26,305 26,141 26,264 26,298 26,253 25,879

1.4 1.5 1.3 0.8 1.5 1.3 1.3 1.0 1.3 1.3 1.1 2.0

4,421 4,433 4,400 4,455 4,464 4,478 4,528 4,491 4,512 4,552 4,545 4,552

3.3 3.7 2.7 3.9 3.2 3.1 3.9 3.6 3.8 4.4 4.4 3.3

19,693 19,716 19,832 20,004 20,179 20,161 20,250 20,153 20,249 20,248 20,353 20,266

1.6 1.6 1.5 0.9 1.8 1.6 1.2 1.1 1.5 1.4 1.3 1.9

3.8 4.6 4.0 3.9 3.8 3.9 3.7 3.4 3.2 3.1 3.1 3.2

2016 1 2 3 4 5 6 7 8 9 10 11

26,433 26,734 26,955 27,228 27,455 27,563 27,578 27,524 27,516 27,499 27,446

1.3 1.3 1.4 1.0 0.9 1.1 1.0 1.7 1.4 1.3 1.3

25,445 25,418 25,800 26,153 26,450 26,559 26,603 26,528 26,531 26,577 26,592

1.4 0.9 1.2 1.0 1.0 1.4 1.1 1.5 1.0 1.1 1.3

4,566 4,541 4,525 4,503 4,514 4,493 4,464 4,418 4,436 4,437 4,443

3.3 2.4 2.8 1.1 1.1 0.3 -1.4 -1.6 -1.7 -2.5 -2.2

19,955 19,885 20,028 20,263 20,483 20,593 20,719 20,677 20,653 20,682 20,759

1.3 0.9 1.0 1.3 1.5 2.1 2.3 2.6 2.0 2.1 2.0

3.7 4.9 4.3 3.9 3.7 3.6 3.5 3.6 3.6 3.4 3.1

Source: Statistics Korea

December 2016

65


13. Financial indicators Call rate (1 day)

CDs (91 days)

2012 7 8 9 10 11 12

3.1 3.0 3.0 2.8 2.8 2.8

3.3 3.2 3.1 2.9 2.9 2.9

3.6 3.4 3.3 3.3 3.3 3.3

3.0 2.8 2.8 2.8 2.8 2.9

3.1 2.9 2.9 2.9 2.9 3.0

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

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

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

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

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

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

2.9 2.8 2.7 2.6 2.7 3.1 3.2 3.3 3.2 3.1 3.2 3.3

1,961.94 2,026.49 2,004.89 1,963.95 2,001.05 1,863.32 1,914.03 1,926.36 1,996.96 2,030.09 2,044.87 2,011.34

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

2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.3 2.2 2.1 2.0 2.0

2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.5 2.4 2.2 2.1 2.1

3.3 3.3 3.3 3.3 3.3 3.2 3.0 3.0 2.8 2.6 2.5 2.5

2.9 2.9 2.9 2.9 2.8 2.7 2.6 2.5 2.4 2.2 2.1 2.1

3.3 3.2 3.2 3.2 3.1 3.0 2.8 2.8 2.7 2.4 2.3 2.3

1,941.15 1,979.99 1,985.61 1,961.79 1,994.96 2,002.21 2,076.12 2,068.54 2,020.09 1,964.43 1,980.78 1,915.59

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

2.0 2.0 1.8 1.7 1.7 1.6 1.5 1.5 1.5 1.5 1.5 1.5

2.1 2.1 2.0 1.8 1.8 1.7 1.7 1.6 1.6 1.6 1.6 1.7

2.4 2.3 2.1 2.0 2.1 2.0 2.0 2.0 2.0 2.0 2.1 2.1

2.0 2.0 1.9 1.7 1.9 1.8 1.8 1.7 1.7 1.6 1.8 1.7

2.2 2.1 2.0 1.9 2.1 2.0 2.1 2.0 1.9 1.8 2.0 1.9

1,949.26 1,985.80 2,041.03 2,127.17 2,114.80 2,074.20 2,030.16 1,941.49 1,962.81 2,029.47 1,991.97 1,961.31

2016 1 2 3 4 5 6 7 8 9 10 11

1.5 1.5 1.5 1.5 1.5 1.3 1.2 1.2 1.2 1.2 1.2

1.7 1.6 1.6 1.6 1.6 1.4 1.4 1.4 1.3 1.4 1.4

2.1 2.0 2.0 1.9 1.9 1.8 1.7 1.7 1.7 1.8 2.0

1.6 1.5 1.5 1.5 1.5 1.3 1.2 1.2 1.3 1.4 1.6

1.8 1.6 1.6 1.6 1.6 1.4 1.3 1.3 1.4 1.4 1.7

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 2,008.19 1,983.48

Period

Source: Bank of Korea

66

(period average)

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

Statistical Appendices

Treasury bonds (3 years)

Treasury bonds (5 years)

Stock KOSPI (end-period)


14. Monetary indicators Reserve money

Period 2013 2014 2015

(period average, billion won)

M1

y-o-y change (%)

M2

y-o-y change (%)

Lf y-o-y change (%)

y-o-y change (%)

91,379.4 103,331.5 120,691.4

11.3 13.1 16.8

484,062.9 536,733.4 636,639.0

9.5 10.9 18.6

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

4.8 6.6 8.6

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

6.9 7.0 9.7

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2016 1 2 3 4 5 6 7 8 9 10

131,279.3 134,913.0 132,957.9 135,038.9 135,971.3 135,758.4 135,906.7 139,073.9 142,079.6 141,103.5

15.9 15.8 14.6 17.3 15.5 14.4 11.4 14.1 12.3 12.3

699,767.3 708,014.0 713,861.2 720,818.5 722,544.4 730,637.8 735,172.2 738,120.9 751,408.5 753,367.3

20.7 19.4 18.8 18.0 16.2 15.9 13.8 13.0 12.9 12.5

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 2,383,040.5 2,391,059.2

8.1 8.3 7.8 7.0 6.7 7.1 6.9 7.2 6.9 7.1

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 3,288,026.0 3,305,950.4

8.9 8.9 8.6 8.0 7.7 7.9 7.6 8.0 7.8 8.1

Source: Bank of Korea

December 2016

67


15. Exchange rates Period

100/ \

Euro/ \

Won

y-o-y change (%)

Won

y-o-y change (%)

Won

y-o-y change (%)

2013 2014 2015

1,055.3 1,099.2 1,172.0

-1.5 4.2 6.6

1,004.7 920.1 972.0

-19.5 -8.4 5.6

1,456.3 1,336.5 1,280.5

2.8 -8.2 -4.2

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

1,082.7 1,085.4 1,112.1 1,108.1 1,128.3 1,149.7 1,113.6 1,110.9 1,075.6 1,061.4 1,062.1 1,055.3

-3.8 -3.6 -2.3 -2.3 -4.2 -0.4 -2.0 -2.1 -3.8 -3.0 -2.1 -1.5

1,188.5 1,176.2 1,180.1 1,132.0 1,116.6 1,167.2 1,135.4 1,129.2 1,098.7 1,077.5 1,038.2 1,004.7

-19.3 -15.9 -14.5 -19.8 -25.0 -19.7 -21.9 -21.8 -23.8 -21.6 -21.4 -19.5

1,469.3 1,425.8 1,425.2 1,451.3 1,471.4 1,498.2 1,476.7 1,470.6 1,451.3 1,456.6 1,444.8 1,456.3

-0.6 -6.0 -5.8 -3.4 1.0 4.4 6.0 3.6 0.5 2.7 2.7 2.8

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

1,079.2 1,067.7 1,068.8 1,031.7 1,021.6 1,014.4 1,024.3 1,013.6 1,050.6 1,054.0 1,101.1 1,099.2

-0.3 -1.6 -3.9 -6.9 -9.5 -11.8 -8.0 -8.8 -2.3 -0.7 3.7 4.2

1,043.7 1,044.8 1,038.7 1,005.3 1,004.2 1,000.0 995.7 977.6 960.2 964.1 933.9 920.1

-12.2 -11.2 -12.0 -11.2 -10.1 -14.3 -12.3 -13.4 -12.6 -10.5 -10.0 -8.4

1,473.6 1,463.6 1,469.4 1,425.0 1,389.6 1,384.2 1,371.8 1,336.2 1,333.3 1,328.8 1,372.2 1,336.5

0.3 2.7 3.1 -1.8 -5.6 -7.6 -7.1 -9.1 -8.1 -8.8 -5.0 -8.2

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

1,090.8 1,099.2 1,105.0 1,068.1 1,108.0 1,124.1 1,166.3 1,176.3 1,194.5 1,142.3 1,150.4 1,172.0

1.1 3.0 3.4 3.5 8.5 10.8 13.9 16.1 13.7 8.4 4.5 6.6

921.3 920.7 920.3 897.2 894.6 917.2 939.3 970.1 996.8 944.1 936.7 972.0

-11.7 -11.9 -11.4 -10.8 -10.9 -8.3 -5.7 -0.8 3.8 -2.1 0.3 5.6

1,235.7 1,230.7 1,196.8 1,187.0 1,215.2 1,260.5 1,275.4 1,317.3 1,343.9 1,254.8 1,218.3 1,280.5

-16.1 -15.9 -18.6 -16.7 -12.6 -8.9 -7.0 -1.4 0.8 -5.6 -11.2 -4.2

2016 1 2 3 4 5 6 7 8 9 10 11

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 1,145.2 1,168.5

10.8 12.4 4.4 7.1 7.5 3.6 -3.5 -4.9 -8.2 0.3 1.6

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 1,094.4 1,038.8

10.4 17.9 11.5 17.9 19.9 23.4 14.3 12.0 8.7 15.9 10.9

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 1,257.1 1,244.3

7.0 9.6 9.2 9.4 9.2 2.8 -2.3 -5.3 -8.5 0.2 2.1

Source: Bank of Korea

68

(end-period)

US $/ \

Statistical Appendices


Yundo Yundo is a compass used by feng shui practitioners to determine auspicious locations for homes or burial plots.

Useful websites Ministry of Strategy and Finance_http://english.mosf.go.kr Ministry of Trade, Industry and Energy_http://english.motie.go.kr Financial Services Commission_http://www.fsc.go.kr/eng Financial Supervisory Service_http://english.fss.or.kr Fair Trade Commission_http://eng.ftc.go.kr Ministry of Employment and Labor_http://www.moel.go.kr/english Bank of Korea_http://www.bok.or.kr/eng Statistics Korea_http://kostat.go.kr/portal/eng


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