201701 by KOCIS

Republic of Korea

Economic Bulletin

VOL.39 NO.1 JANUARY 2017 eb.kdi.re.kr ISSN 2287-7266

The Green Book: Current Economic Trends Policy Issue 2017 Work Report: Making the Economy Stronger

Economic News Briefing DPM Holds IR in New York BOK Sees 2.5% Growth for 2017 FX Stabilization Bonds Worth US $1 bn Sold FDI Posts Record High in 2016

Statistical Appendices

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

9.1 Stock market

9.2 Exchange rate

9.3 Bond market

9.4 Money supply and money market

10. Balance of payments

11. Prices

11.1 Consumer prices

11.2 International oil and commodity prices

12. Real estate market

12.1 Housing market

12.2 Land market

13. Composite indices of business cycle indicators

Contents

Policy Issue 2017 work report: making the economy stronger

Economic News Briefing Deputy Prime Minister holds IR in New York BOK forecasts 2.5% growth for 2017 FX stabilization bonds worth US $1 bn sold Government to boost overseas infrastructure projects FDI posts record high in 2016 Exports down 5.9% in 2016

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 Bumjoon (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

January 2017

OVERVIEW

The Korean economy has seen production and investment rebound with exports improving, but consumption slowed somewhat due to a high base effect and shrinking consumer confidence. The economy added 339,000 jobs in November, a rise from 278,000 in the previous month, backed by the brisk agriculture, forestry & fishery and construction sectors. Job creation in the manufacturing sector remains weak (down 102,000, y-o-y). Consumer prices rose at a slower rate in December compared with the previous month (up 1.5% → up 1.3%, y-o-y), despite rising oil product prices, as electricity rates fell and agricultural product prices rose at a slower rate. Mining and manufacturing production in November picked up (down 1.3% → up 3.4%, m-o-m) as the auto worker strikes came to an end and the index was no more affected by a production halt of Samsung’s Galaxy Note 7 smartphones. Service output rose 0.1 percent month-on-month in November, backed by financial & insurance services and transportation services. Retail sales slipped on falling consumer confidence in November, as well as a high base effect from the previous month when the index soared backed by the Korea Sales Festa. The index dropped 0.2 percent month-on-month, after surging 5.5 percent in the previous month. Facility investment rose 5.9 percent month-on-month in November due to increased investments by the IT industries, such as a high level of investments in semiconductor fabrication facilities. Construction investment rebounded, rising 6.4 percent month-on-month, backed by strong presales of new apartments. In November, both the cyclical indicator of the coincident composite index and the cyclical indicator of the leading composite index remained unchanged. Exports increased for the second consecutive month in December, going up 6.4 percent year-on-year, due to strong semiconductors and other major export items, and also due to more days worked (up 0.5 days, y-o-y). Stock prices rose in December backed by bullish global stock markets, and the dollar-won exchange rate increased as a result of dollar appreciation amid expectations of additional rate hikes in the US. Both housing prices (up 0.15% → up 0.07%, m-o-m) and Jeonse (lump-sum deposits with no monthly payments) prices (up 0.15% → up 0.08%, m-o-m) rose at a slower rate in December in the wake of the government measures to curb housing market overheating and as demand decreased after seasonal spikes.

Economic Bulletin

The Green Book

Although exports have been improving, there is a chance that the recovery momentum will be hampered by internal and external uncertainties amid sluggish domestic demand. The government will successfully implement budgets frontloaded to the first quarter, the largest ever, and other 2017 economic policies, and closely monitor necessities prices to increase stability in the real economy. Moreover, the government will operate an emergency task force and closely monitor developments in the economy and financial markets, and be thoroughly prepared for internal and external risks.

1. External economic situation The global economy has been recovering steadily, backed by the US and other major economies, although there are risks arising from the Fedâ&#x20AC;&#x2122;s additional rate hikes, concerns over the spread of protectionism, and political instability in Europe.

US The US economy grew 3.5 percent (annualized q-o-q) in the third quarter of 2016 as private consumption stayed in good shape and exports improved. The job market has continued to improve. However, production slowed in November.

US GDP growth and industrial production (%) 10 8 6 4 2 0 -2 -4 -6

GDP (q-o-q, annualized rate)

-8 -10

Industrial production (q-o-q)

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

Sources: US Department of Commerce, Federal Reserve Board

2013.Q1

2014.Q1

2015.Q1

2016.Q1

January 2017

Industrial production (down 0.4%, m-o-m) fell in November due to weak manufacturing (down 0.1%) as well as a slowdown in the energy sector (down 4.4%). The ISM Manufacturing Index continued to rise. 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) → 54.7 (Dec) (Percentage change from previous period)

2015 Annual Q1

2016

Sep Oct Nov

Real GDP

2.6

2.0

2.6

2.0

0.9

0.8

1.4

3.5

- Personal consumption expenditures

3.2

2.4

2.9

2.7

2.3

1.6

4.3

3.0

- Nonresidential fixed investment

2.1

1.3

1.6

3.9 -3.3 -3.4

1.0

1.4

7.8 -7.7 -4.1

- Residential fixed investment Industrial production 1. Annualized rate (%)

11.7 0.3

13.3 14.9 12.6 11.5 -0.5 -0.7

0.4 -0.8 -0.4 -0.2

0.5 -0.2

0.1 -0.4

Sources: US Department of Commerce, Bloomberg

Retail sales in November (up 0.1%, m-o-m) fell short of the market expectation (up 0.3%) due to poor auto sales (down 0.5%). However, consumer sentiment indices improved for the second consecutive month in December. 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) → 98.2 (Dec)

Conference Board Consumer Confidence Index (1985=100)

94.7 (Apr 2016) → 92.4 (May) → 97.4 (Jun) → 96.7 (Jul) → 101.8 (Aug) → 103.5 (Sep) → 100.8 (Oct) → 109.4 (Nov) → 113.7 (Dec)

Existing home sales rose 0.7 percent to an annualized pace of 5,610,000 in November, the largest since February 2007. New home sales increased 5.2 percent month-on-month. Case-Shiller Home Price Index (y-o-y, %)

5.4 (Feb 2016) → 5.5 (Mar) → 5.4 (Apr) → 5.2 (May) → 5.1 (Jun) → 4.9 (Jul) → 5.0 (Aug) → 5.0 (Sep) → 5.1 (Oct)

New home sales (m-o-m, %)

-0.2 (Feb 2016) → 2.3 (Mar) → 6.1 (Apr) → -0.7 (May) → -1.4 (Jun) → 11.5 (Jul) → -10.1 (Aug) → 2.1 (Sep) → -1.4 (Oct) → 5.2 (Nov) (Percentage change from previous period)

2015 Annual Q1

2016

Q3 Sep Oct Nov Dec

Retail sales

2.3

-0.7 1.5

1.0

0.2 0.0

1.5

0.9 1.0

0.6

0.1

Existing home sales

6.3

-0.7 4.6

2.3 -3.8 1.9

3.8 -2.1 3.6

1.5

0.7

Unemployment rate1

5.3

5.5 5.4

5.2

5.0 4.9

4.9

4.9 5.0

4.9

4.6

4.7

Consumer prices (y-o-y)

0.1

-0.1 0.0

0.1

0.4 1.1

1.1

1.1 1.5

1.6

1.7

1. Seasonally adjusted (%)

Sources: US Department of Commerce, Bloomberg

Economic Bulletin

The Green Book

The unemployment rate rose to 4.7 percent in December, and nonfarm payroll growth (up 156,000, m-o-m) decelerated due to unusually severe weather.

US nonfarm payroll growth and unemployment rate (thousands)

(%)

800

600

400 200

-200 -400

-600

Labor force participation rate (%)

-800 -1,000

However, wages increased 2.9 percent over the 12 months ended in December, the most since June 2009, a sign that the job market has been improving.

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

63.0 (Mar 2016) → 62.8 (Apr) → 62.6 (May) → 62.7 (Jun) → 62.8 (Jul) → 62.8 (Aug) → 62.9 (Sep) → 62.8 (Oct) → 62.6 (Nov) → 62.7 (Dec)

Source: US Department of Labor US nonfarm payroll growth (m-o-m, left)

Unemployment rate (right)

Nonfarm payroll increase (m-o-m, thousands)

24 (May 2016) → 271 (Jun) → 252 (Jul) → 176 (Aug) → 208 (Sep) → 135 (Oct) → 204 (Nov) → 156 (Dec)

China China’s economy continued to show signs of recovery as both private consumption and exports improved, backed by the weak yuan and Singles’ Day sales event. At the Central Economic Work Conference held on December 14-16, the Chinese government mapped out priorities for 2017, which focus on ‘seeking progress while maintaining stability,’ such as by working to avoid financial risks and asset bubbles. (Percentage change from same period in previous year)

2014

2015

Annual Annual

2016

Sep

Oct

Nov

Real GDP

7.3

6.9

7.0

6.9

6.8

6.7

Industrial production

8.3

6.1

5.9

6.3

5.8

6.1

6.2

Fixed asset investment (accumulated, nominal)

15.7

10.0

11.4

10.3

10.0

10.7

9.0

8.2

8.3

Retail sales (nominal)

12.0

10.7

10.2

10.7

11.1

10.3

10.2

10.5

10.7

10.0

10.8

6.0

-3.0

-2.9

-6.4

-5.3

-9.6

-3.6

-5.8 -10.0

-7.5

0.1

Exports Consumer prices Producer prices1

2.0

1.4

1.7

1.5

2.1

1.7

1.9

2.1

2.3

-1.9

-5.2

-4.7

-5.7

-5.9

-4.8

-2.9

-0.8

0.1

1.2

3.3

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

January 2017

China’s GDP growth and fixed asset investment (%)

(%)

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

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

Source: China National Bureau of Statistics

Japan Japan’s economy showed signs of moderate recovery, as export decline slowed backed by the weak yen, and industrial production and retail sales increased. 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) → -0.4 (Nov)

Japan’s GDP growth and industrial production (%)

(%) 4

15 10

5 0

0 -5

-2

-10 -15

-4

-20

GDP (q-o-q, left) Industrial production (q-o-q, right)

-6 2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

-25

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

Economic Bulletin

The Green Book

(Percentage change from previous period)

2014

2015

Annual Annual

2016

Sep

Oct

Nov

Real GDP

0.0

0.6

-0.1

0.2

-0.4

0.7

0.5

0.3

Industrial production

2.1

-1.2

-1.3

-1.0

0.0

-1.0

0.2

1.4

0.6

0.0

1.5

Retail sales (nominal)

1.7

-0.4

0.2

1.0

-0.2

-2.3

0.1

1.0

0.3

2.5

0.2

Exports (y-o-y) Consumer prices (y-o-y)

4.8

3.4

6.7

3.7

-4.6

-7.9

-9.5 -10.2

-6.9 -10.3

-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 Although the eurozone economy has not fared well in some of the real economic indicators, there are expectations of a turnaround as manufacturing PMI and ESI have been strong. Manufacturing PMI

52.0 (Jul 2016) → 51.7 (Aug) → 52.6 (Sep) → 53.5 (Oct) → 53.7 (Nov) → 54.9 (Dec)

Economic Sentiment Indicator (ESI)

104.5 (Jul 2016) → 103.5 (Aug) → 104.9 (Sep) → 106.4 (Oct) → 106.6 (Nov) → 107.8 (Dec)

Eurozone’s GDP growth and industrial production (%)

(%)

10 8

6 4

2 0

-2 -1

-4 -6

-2

-8

GDP (y-o-y, left) -3

Industrial production (q-o-q, right)

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

-10

Source: Bank of Korea (national accounts) (Percentage change from previous period)

2014

2015

Annual Annual Q1

2016 Sep

Oct

Nov

Real GDP

1.2

2.0

0.8

0.4

0.3

0.5

0.3

Industrial production

0.9

1.5

0.7

0.1

0.4

0.1

0.8

-0.2

0.4

-0.9

-0.1

Retail sales

1.4

2.7

0.9

0.7

0.6

0.2

0.6

0.1

0.4

-0.4

1.4

0.4

Exports (y-o-y)

2.2

5.4

5.5

8.2

4.5

3.6

-0.9

0.0

-0.3

2.1

-4.6

Consumer prices (y-o-y)

0.4

0.0

-0.3

0.2

0.1

0.2

0.0

-0.1

0.3

0.4

0.5

0.6

Sources: Eurostat, Bloomberg

January 2017

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. (Percentage change from previous period)

2014

2015

2016

Annual

Annual¹

Q1¹

Q2¹

Q3¹

Q4¹

Q1¹

Q2¹

Q3¹

1.7

2.2

0.8

-0.1

1.1

1.4

-0.2

1.0

0.5

1.5

1.7

2.2

3.3

2.2

3.3

2.7

Private consumption² (y-o-y)

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

Private consumption (%)

12 10 8 6 4 2 0 -2

Private consumption (y-o-y)

-4 -6

Private consumption (q-o-q)

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

Source: Bank of Korea (national accounts)

Retail sales in November fell 0.2 percent month-on-month, despite an increase in nondurable goods sales (up 0.6%), as sales of durable goods (down 1.2%), such as electronic appliances, and semi-durable goods (down 0.4%), such as clothing, declined. Year-on-year, the index rose 3.2 percent. (Percentage change from previous period)

2014 Annual

2015

2016

Annual

Oct¹

Nov¹

Retail sales

1.0

0.7

1.3

3.1

-1.7

5.5

-0.2

(y-o-y)

2.0

3.9

2.2

3.4

3.6

6.1

3.6

2.5

3.2

- Durable goods

5.1

10.2

4.3

0.8

2.0

8.2

-7.1

10.8

-1.2

· Automobiles

16.4

21.3

7.0

5.4

3.5

11.2

-19.9

12.8

3.1

- Semi-durable goods

-0.8

-1.2

-2.0

-1.0

1.8

2.8

-0.7

3.8

-0.4

- Nondurable goods4

1.6

2.5

0.6

1.2

0.7

0.3

1.3

3.1

0.6

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

Economic Bulletin

The Green Book

Retail sales (%) 15

-5

-10

Retail sales (y-o-y) -15

Retail sales (m-o-m)

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2012.1

2013.1

2014.1

2015.1

2016.1

Source: Statistics Korea (industrial activity trends)

Retail sales by type (y-o-y, %) 60 50 40 30 20 10 0

Durable goods

-10 -20

Semi-durable goods -30

Nondurable goods

2008.1

2009.1

2010.1

2011.1

Source: Statistics Korea (industrial activity trends)

Retail sales are expected to increase in December given strong sales numbers in department stores and large discount stores as well as an increase in domestic gasoline sales and credit card use. (Percentage change from same period in previous year)

2016 May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

22.7

12.9

9.1

15.0

9.1

12.4

11.7

9.8

Department store sales

1.5

13.5

11.2

4.8

4.2

5.6

-1.6

3.8

Large discount store sales

-5.5

2.9

5.8

0.2

-0.4

4.8

-3.9

0.7

Credit card use

Domestic sales of gasoline Domestic sales of cars

7.2

4.6

2.3

9.7

6.2

-2.9

6.6

8.6

20.8

24.1

-10.5

-11.1

-10.9

-11.5

1.4

-8.6

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

January 2017

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

2014

2015

Annual Annual¹

Facility investment²

6.0

(y-o-y)

2016

Q1¹

Q2¹

Q3¹

Q4¹

Q1¹

Q2¹

Q3¹

5.3

0.5

0.8

1.8

0.5

-7.4

2.8

0.2

5.8

5.1

6.7

3.9

-4.5

-2.7

-4.2

- 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

Source: Bank of Korea

Facility investment (%)

40 30 20 10 0 -10 -20

Facility investment (y-o-y)

-30

Facility investment (q-o-q)

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

Source: Bank of Korea (national accounts)

Facility investment by type (y-o-y, %) 50 40 30 20 10 0 -10 -20

Machinery -30

Transportation equipment

2008.Q1

2009.Q1

2010.Q1

Source: Bank of Korea (national accounts)

2011.Q1

Economic Bulletin

The Green Book

The facility investment index in November rose 5.9 percent month-on-month as both machinery and transportation equipment investment increased. The index increased 10.2 percent year-on-year. (Percentage change from previous period)

2015

2014 Annual Annual

Facility investment index (y-o-y)

2016

Oct¹

Nov¹

5.2

6.3

-0.2

-2.2

5.2

-1.2

-8.7

6.4

-1.5

0.6

5.9

9.2

4.5

10.2

1.6

-7.1

0.8

-4.9

-4.2

10.2

-2.6

-5.3

-0.3

9.0

-2.3

7.1

20.5 -21.1

8.4

2.1

- Machinery

3.9

2.9

-0.1

-6.0

0.7

- Transportation equipment

8.8

14.9

-1.0

8.8

16.5

1. Preliminary

1.0 -14.3

Source: Statistics Korea

The facility investment outlook is mixed: Domestic machinery orders and machinery imports increased, as well as the average manufacturing operation ratio, but the Fed’s rate hikes and changes in US policies may interfere in facility investment. (Percentage change from same period in previous year)

2015 Domestic machinery orders (q-o-q, m-o-m)

2016

-3.0

14.9 -27.1

6.9

0.9

-2.9

1.2 -11.7 17.1

8.6 -10.0

9.2

-2.9

-0.1

Oct¹ Nov¹

4.6

-5.4 -10.4 22.1

- Public

-66.9

61.7 -85.3 -19.8

56.9 15.4

17.7 -39.7 38.5

- Private

11.4

12.5

4.7

10.8

-2.9

-4.3

0.0 -10.2 24.4

8.5

-1.1

2.3

-6.4 -13.0

-6.7

-2.2

-3.9 14.4

Average manufacturing operation ratio (%) 74.3 74.3

74.9

73.6

73.2 72.2

71.8

70.5 73.5

Facility investment adjustment pressure²

-1.2

-0.6

-0.7

Machinery imports

-2.8

0.8

0.2

-2.0

4.2

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

Leading indicators of facility investment (trillion won)

(y-o-y, %)

10 9

40 8 7

6 0

5 4

-20

Machinery orders (left) Machinery imports (right)

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

Sources: Statistics Korea (machinery orders), Korea International Trade Association (machinery imports)

2016.Q1

-40

January 2017

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 (%) 15

-5

-10

Construction investment (y-o-y) -15

Construction investment (q-o-q)

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

Source: Bank of Korea (national accounts)

Construction investment by type (y-o-y, %)

50 40 30 20 10 0 -10

Building construction -20

Residential buildings -30

Civil engineering works

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

Source: Bank of Korea (national accounts) (Percentage change from previous period)

2014 Construction investment²

2016

2015

Annual Annual¹

Q1¹

Q2¹

Q3¹

Q4¹

Q1¹

Q2¹

Q3¹

1.1

3.9

5.5

1.8

3.3

-2.4

6.8

3.1

3.5

0.9

1.0

5.6

7.5

9.6

10.8

11.4

(y-o-y) - Building construction

6.3

2.5

4.9

5.6

0.3

3.6

5.5

5.4

- Civil engineering works

-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

Economic Bulletin

The Green Book

The value of construction completed (constant) in November rose 6.4 percent month-on-month as both building construction and civil engineering works increased. The index rose 25.9 percent year-on-year. (Percentage change from previous period)

2015

2014 Annual Annual Q1

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

2016

Q3 Oct¹ Nov¹

-0.7

2.3

4.1 -2.1

6.4

0.0

9.4

2.3

4.5 -0.3

-2.0 -3.9

5.9

8.0 14.8 19.2 17.1 17.8 25.9

7.8

6.0

4.4 -0.7

9.5

2.6

9.0

3.1

6.5

3.1

5.9

-12.3

-3.8

3.7 -4.4

0.9 -5.0 10.2

0.7

0.5 -8.0

7.5

6.4

Source: Statistics Korea

The construction investment outlook is mixed as there are both positive and negative factors: Apartment presales increased recently, but construction orders received declined in November. Apartment presales (thousands, Real Estate 114)

54 (May 2016) → 41 (Jun) → 48 (Jul) → 30 (Aug) → 18 (Sep) → 76 (Oct) → 40 (Nov) → 54 (Dec)

Leading indicators of construction investment (y-o-y, %) 200

150

100

-50

Construction orders -100

Building permit area

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Sources: Statistics Korea (construction orders), Ministry of Land, Infrastructure and Transport (building permit area) (Percentage change from same period in previous year)

2015 Annual

2016 Q3

Oct¹ Nov¹

-6.3

2.7 42.9

Construction orders (current value) 48.2

57.4 49.1 50.4 40.1 13.8

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

47.4 11.6 21.3 -26.5 17.7 -10.2 36.4 26.1 -26.7

- Building construction

50.1

- Civil engineering works

42.9

Building permits²

34.3

1. Preliminary

2. Floor area

89.5 49.3 42.5 37.8 13.1

2.6

1.7 48.3 83.6 45.9 16.0 -32.8 11.0 25.1 57.0 40.4 19.7

4.2 34.5

-9.7 4.1

-2.3 84.0 -47.2

5.3 -24.8 -14.7

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

-3.3

January 2017

5. Exports and Imports Exports (preliminary) increased 6.4 percent year-on-year to US $45.07 billion in December. Exports rose for the second consecutive month in December, a first two-monthin-a-row increase in 26 months, backed by strong major export items and more days worked (up 0.5 days, y-o-y). By item, major items including semiconductors rose, while vessels fell. By region, shipments to the EU, the ASEAN countries and China increased, while exports to the US and the Middle East declined. Export growth by item (y-o-y, %)

22.4 (semiconductors), 13.7 (petroleum products), 8.4 (petrochemicals), 4.6 (automobiles), 0.7 (steel), -0.9 (mobile phones), -14.1 (vessels)

Export growth by region (y-o-y, %)

30.8 (EU), 13.6 (ASEAN countries), 9.6 (China), 7.8 (Japan), 4.9 (Latin America), -2.3 (US), -5.1 (Middle East)

Average daily exports, an indicator adjusted to days worked, decreased monthon-month to US $1.84 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) → 1.89 (Nov) → 1.84 (Dec)

Exports by item (y-o-y, %)

160 140 120 100 80 60 40 20

Export growth rate

0 -20

Semiconductors Automobiles

-40 -60 -80

Steel

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

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

2016.1

Economic Bulletin

The Green Book

(US $ billion)

2015 Annual

Exports

2016 Q4

Dec

526.76 128.24 130.02

Annual¹

Q4¹

Nov

Dec¹

42.38 495.54 115.19 126.03 121.87 132.45 45.41

45.07

(y-o-y, %)

-8.0

-9.5

-12.0

-14.3

-5.9

-13.6

-6.7

-5.0

1.9

2.5

6.4

Average daily exports

1.93

1.87

1.86

1.77

1.82

1.73

1.88

1.78

1.87

1.89

1.84

1. Preliminary Source: Korea Customs Service

Imports (preliminary) in December rose 7.3 percent year-on-year to US $38.07 billion. Capital goods import growth accelerated and commodities imports grew at a slower rate, while consumer goods imports decreased. Import growth by category (y-o-y, %, Nov → Dec) 11.1 → 6.4 (commodities), 6.2 → 13.4 (capital goods), 10.9 → -4.1 (consumer goods)

Imports by category (y-o-y, %)

100 80 60 40 20 0 -20

Import growth rate Commodities

-40 -60 -80

Capital goods

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

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

(US $ billion)

2015 Annual

Imports

2016 Q4

436.50 107.96 106.27

Dec

Annual¹

Q4¹

Nov

Dec¹ 38.07

35.46

405.72

93.81

99.25 102.36 110.29 37.21

(y-o-y, %)

-16.9

-18.7

-17.8

-19.2

-7.1

-16.1

-10.2

-5.2

3.8

9.3

7.3

Average daily imports

1.60

1.58

1.52

1.48

1.49

1.41

1.48

1.49

1.55

1. Preliminary Source: Korea Customs Service

January 2017

The trade balance (preliminary) posted a surplus of US $7.00 billion in December, staying in the black for the 59th consecutive month. Surpluses decreased compared with the previous month. (US $ billion)

2015 Trade balance

2016

Annual

Dec

Annualยน

Q4ยน

Nov

Decยน

90.26

20.28

23.74

10.24

89.83

21.38

26.78

19.51

22.16

8.20

7.00

1. Preliminary Source: Korea Customs Service

Exports and imports (US $ billion)

60 50 40 30 20 10

Exports

Imports -10

Trade balance

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

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

6. Mining and manufacturing production Mining and manufacturing production rose 3.4 percent month-on-month in November, due to strong automobiles and communications equipment, despite electronic parts and refined petroleum declining. Compared to the same period of the previous year, the index increased 4.8 percent. Compared to the previous month, production of automobiles (up 11.4%), communications equipment (up 30.6%) and chemical products (up 3.3%) rose, while electronic parts (down 3.0%), refined petroleum (down 2.4%) and precision medical optics (down 2.1%) fell. Compared to a year ago, production of semiconductors (up 17.8%), automobiles (up 6.2%) and chemical products (up 6.9%) rose, while communications equipment (down 10.5%), audio-visual equipment (down 26.0%) and clothing & fur (down 9.1%) declined.

Economic Bulletin

The Green Book

Industrial production (%) 50 40 30 20 10 0 -10 -20

Industrial production (y-o-y) -30

Industrial production (m-o-m)

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Source: Statistics Korea (industrial activity trends)

The manufacturing inventory-shipment ratio fell 4.1 percentage points monthon-month to 115.5 percent as inventories fell 1.1 percent and shipments rose 2.4 percent from a month earlier. Inventories of mechanical equipment (up 6.9%), chemical products (up 0.9%) and communications equipment (up 11.4%) rose, while primary metals (down 4.1%), automobiles (down 3.3%) and semiconductors (down 4.0%) declined. Shipments of automobiles (up 8.5%), processed metals (up 8.5%) and communications equipment (up 23.7%) rose, while semiconductors (down 5.4%), refined petroleum (down 5.2%) and electronic parts (down 3.8%) fell.

Shipment and inventory (m-o-m, %) 10 8 6 4 2 0 -2 -4 -6 -8

Shipment growth

-10 -12

Inventory growth

2007.1

2008.1

2009.1

2010.1

Source: Statistics Korea (industrial activity trends)

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

January 2017

The average operation ratio of the manufacturing sector rose 3.0 percentage points month-on-month to 73.5 percent.

Average manufacturing operation ratio (%) 100

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Source: Statistics Korea (industrial activity trends)

Mining and manufacturing for December is likely to slow down given increasing global uncertainties, such as those arising from changes in US policies, and falling economic sentiments in the country, as well as a high base effect from the previous month. (Percentage change from previous period)

2015 Annual

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

Mining and manufacturing2 (y-o-y)

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

Manufacturing

2016

Nov

Sep

1.7

-1.5

1.0

0.6

0.5

Octยน Novยน -1.3

3.4

-0.6

-0.1

-0.2

1.0

0.6

-1.9

-1.3

4.8

1.7

-1.6

1.1

0.5

-1.0

3.4

(y-o-y)

-0.6

-0.3

-0.2

1.1

0.7

-2.0

-1.3

5.0

Shipment

-0.2

2.1

-2.1

2.1

-0.1

1.1

-1.3

2.4

- Domestic consumption

0.4

1.5

-1.2

0.9

0.0

1.7

-1.5

4.5

- Exports

-1.0

2.7

-3.0

3.5

-0.1

0.4

-0.9

-0.1

Inventory 3

2.9

2.6

-1.0

-2.6

-3.5

-1.5

0.3

-1.1

Average operation ratio (%)

74.3

74.9

73.1

72.2

71.8

71.5

70.5

73.5

Production capacity (y-o-y)

1.2

0.9

0.8

0.4

0.2

0.7

0.8

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

Economic Bulletin

The Green Book

7. Service sector activity Service output in November increased 0.1 percent month-on-month and 2.5 percent year-on-year.

Service sector activity (%) 15

Service sector activity (y-o-y) -5

Service sector activity (m-o-m)

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Source: Statistics Korea (industrial activity trends) (Percentage change from previous period)

Weight Service activity index - Wholesale & retail

2014

2016

2015

Annual Annual Q1

Q3 Octยน Novยน

100.0

2.3

2.8

0.5 0.5 1.2 1.2 0.8 -0.3 0.1 0.7 0.3 0.9 2.2 -0.6 2.7 -0.8

21.6

0.4

1.7

- Transportation services

8.5

1.7

1.4 -0.2 -2.6 1.9 1.9 0.9 -2.8 2.1

- Hotels & restaurants

7.2

1.5

-2.0 -0.6 -3.4 2.1 0.8 1.0 -0.7 -2.1

- Publishing & communications services

8.4

2.0

-0.6 -1.9 -0.5 3.0 1.1 -1.7 -1.0 -3.0

- Financial & insurance services

14.7

5.2

9.0

- Real estate & renting

5.3

6.2

8.1 -0.8 6.4 0.9 -0.5 5.5 1.6 -0.5

1.6 3.8 1.2 -0.4 2.9 -2.4 2.2

- Professional, scientific & technical services

5.6

2.3

-0.4 -2.9 -0.1 1.6 0.3 -2.6 -3.4 3.7

- Business services

3.3

2.5

3.9

2.3 0.4 -1.0 3.4 0.7 0.0 0.7

- Education services

10.9

1.3

0.9

1.0 -0.6 0.0 1.0 0.1 0.3 -0.2

- Healthcare & social welfare services

7.5

6.3

6.2

1.9 0.0 1.4 3.1 5.0 0.7 -1.4

- Entertainment, cultural & sports services

2.9

-1.0

1.1

1.5 -2.5 1.0 3.2 -1.9 -4.4 0.8

- Membership organizations & personal services

3.6

-0.5

0.7 1.6 -0.2 -2.7 -2.0 0.9 -0.2

- Sewerage & waste management

0.6

1.0

7.2

0.6 3.6 4.6 -4.6 -2.6 -5.9 8.0

1. Preliminary Source: Statistics Korea

Month-on-month, professional, scientific & technical services (up 3.7%), financial & insurance services (up 2.2%) and transportation services (up 2.1%) increased, while publishing & communications services (down 3.0%), wholesale & retail (down 0.8%) and real estate & renting (down 0.5%) decreased.

January 2017

Wholesale & retail (%) 15

-5

Wholesale & retail (y-o-y) -10

Wholesale & retail (m-o-m)

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Source: Statistics Korea (industrial activity trends)

November 2016 service output by business (y-o-y, %) 15 Health & social welfare services

10 Financial & insurance services

-5

Wholesale & retail

Professional, scientific & technical services

Hotels & restaurants Total index

Transportation services

Publishing & communications services

Real estate & renting

Business services

Education services

Membership organizations & personal services Entertainment, cultural & sports services

Sewerage & waste management

-10

Source: Statistics Korea (industrial activity trends)

The service output in December is positive as sales at department stores and large discount stores increased. However, it may be hampered by decreases in domestic sales of cars and average daily stock transactions. Department store sales (y-o-y, %)

13.5 (Jun 2016) → 11.2 (Jul) → 4.8 (Aug) → 4.2 (Sep) → 5.6 (Oct) → -1.6 (Nov) → 3.8 (Dec)

Large discount store sales (y-o-y, %)

2.9 (Jun 2016) → 5.8 (Jul) → 0.2 (Aug) → -0.4 (Sep) → 4.8 (Oct) → -3.9 (Nov) → 0.7 (Dec)

Domestic sales of cars (y-o-y, %)

24.1 (Jun 2016) → -10.5 (Jul) → -11.1 (Aug) → -10.9 (Sep) → -11.5 (Oct) → 1.4 (Nov) → -8.6 (Dec)

Average daily stock transactions (trillion won)

9.1 (Jun 2016) → 8.3 (Jul) → 7.9 (Aug) → 8.1 (Sep) → 7.5 (Oct) → 7.4 (Nov) → 6.5 (Dec)

Economic Bulletin

The Green Book

8. Employment The number of workers on payroll in November increased by 339,000 from a year earlier to 26,590,000, and the employment rate rose 0.3 percentage points to 66.6 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 four consecutive months. Temporary and daily workers continued to decrease.

Number of persons employed and employment growth (thousands)

(millions) 27

1,000 800

600

400 24 200 23 0

Employment growth (y-o-y, left)

-200

Number of employed (seasonally adjusted, right)

-400

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Source: Statistics Korea (employment trends)

Employment rate (%) 64 63 62 61 60 59 58 57 56

Original data 55

Seasonally adjusted rate

2007.1

2008.1

2009.1

2010.1

Source: Statistics Korea (employment trends)

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

January 2017

Employment by industry (%) 100

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 70.9 70.8 70.8 70.8

Services Construction Manufacturing Agriculture, forestry & fisheries

7.0

6.9

7.0

7.1

7.0

6.9

7.0

7.1

7.0

6.8

6.9

7.0

7.1

7.3

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 17.2 17.1 16.9 16.8 16.7 16.7 16.7 16.7

0 3.9 4.1 2015.1 2

4.9

5.5

5.9

5.8

5.7

5.6

5.1

4.0

12 2016.1 2

3.6

3.8

4.8

5.2

5.4

5.5

5.3

5.4

5.1

Source: Statistics Korea (employment trends)

2015

2014 Annual Annual Q1

Number of employed (millions)

2016

Q4 Nov Q1

Oct Nov

25.60 25.94 25.27 26.10 26.24 26.14 26.25 25.55 26.39 26.55 26.58 26.59

Employment rate (%)

60.2 60.6 59.0 60.7 60.9 60.5 60.8 59.7 60.8 61.1 61.1 61.1

(Seasonally adjusted)

60.2 60.3 60.5 59.9 60.3 60.5 60.4 60.5 60.1 60.5 60.5 60.6

Employment growth (y-o-y, thousands)

533

337 354 308 310 376 285 287 289 318 278 339

(Excluding agriculture, forestry & fisheries) 601

444 441 435 419 482 453 341 375 399 324 308

- Manufacturing

156 139 147 164 176 190 126

146

- Construction

- Services

424

- Agriculture, forestry & fisheries

-68 -107

-19

-37

-7

-71 -115 -102

-28

59 111

250 222 235 234 309 284 216 360 430 390 311 -87 -127 -109 -106 -168

-54

-86

-81

-46

Source: Statistics Korea

Employment by status of workers (%) 100 4.0

4.1

4.3

4.5

4.6

4.7

4.6

4.4

3.9

3.7

3.8

4.2

4.3

4.4

4.5

4.4

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 21.3 6.0

6.0

5.7

6.2

6.5

6.2

6.1

5.9

5.8

5.7

5.9

5.7

5.5

5.3

5.5

5.4

5.7

5.8

5.5

5.6

5.8

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

Unpaid family workers

Self-employed workers Daily workers

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 49.2

Temporary workers Permanent workers

0 2015.1 2

Source: Statistics Korea (employment trends)

12 2016.1 2

Economic Bulletin

The Green Book

2015

2014 Annual Annual Q1

2016 Q3

Q4 Nov

Oct Nov

Employment growth (y-o-y, thousands)

533

337

354 308 310 376 285 287 289 318 278 339

- Wage workers

548

487

442 422 521 565 503 427 392 283 158 186

路 Permanent workers

443

432

355 332 505 536 496 505 457 316 256 297

路 Temporary workers

140

1 129 174

15 120

-67 -147

路 Daily workers

-35

15 -100 -167

-93 -185

-78

-30

-15

-151

-88 -114 -211 -189 -218 -140 -103

35 120 153

-89

-49

52 124 141

- Male

266

132

141 145 111 132

- Female

267

205

213 163 199 244 209 180 165 134 100 117

- Nonwage workers 路 Self-employed workers

-37 -136 -135 -152

-96

-68

76 107 124 183 178 222

- 15 to 29

50 100

-19

- 30 to 39

-21

-38

-1

-56

-60

-36

-11

-21

-23

-53

-61

-26

-15

-45

- 40 to 49

-14

-47

-41

-16 -100

- 50 to 59

239

149

177 138 145 135

90 133 113

- 60 and above

200

172

192 150 174 169

37 179 189 236 275 316

Source: Statistics Korea

The number of unemployed persons in November was up 25,000 from a year earlier to 854,000, and the unemployment rate stayed unchanged year-on-year at 3.1 percent. The unemployment rate rose in all age groups except in the group of those in their 40s.

Unemployment rate (%) 6

Original data Seasonally adjusted rate

2008.1

2009.1

2010.1

2011.1

Source: Statistics Korea (employment trends)

2012.1

2013.1

2014.1

2015.1

2016.1

January 2017

2015

2014 Annual Annual

Number of unemployed 937 (thousands) Unemployment growth (y-o-y, thousands)

976 1,089 1,042

2016

929

845

137

-9

- Male

- Female

Unemployment rate (%)

3.5

3.6

4.1

3.8

(Seasonally adjusted)

3.5

3.6

3.7

3.8

- 15 to 29

9.0

9.2

10.3

- 30 to 39

3.1

- 40 to 49

2.2

2.3

- 50 to 59

2.2

2.4

- 60 and above

2.3

2.5

Nov

Oct

Nov

829 1,153 1,028 985

923

854

-3

-6

-11

3.4

3.1

3.6

3.4

9.9

8.4

3.3

3.0

2.4

2.5

2.6

4.1

2.2

-14

-20

-24

3.1

4.3

3.8

3.6

3.4

3.1

3.5

3.8

3.7

3.8

3.7

3.6

8.0

8.1 11.3 10.3

9.3

8.5

8.2

2.9

3.2

3.4

3.0

2.3

2.0

1.8

2.4

2.1

2.0

1.7

2.4

1.9

1.8

2.6

2.3

2.1

2.0

2.1

1.9

4.2

2.2

2.3

2.1

2.0

Source: Statistics Korea

The economically inactive population in November decreased 8,000 from a year earlier to 16,090,000, while the labor force participation rate rose 0.3 percentage points year-on-year to 63.0 percent. The number of those economically inactive due to education (down 40,000), childcare (down 37,000) and rest (down 111,000) decreased.

Labor force participation rate (%)

65 64 63 62 61 60 59

Original data 58

Seasonally adjusted rate

2008.1

2009.1

2010.1

2011.1

Source: Statistics Korea (employment trends)

2012.1

2013.1

2014.1

2015.1

2016.1

Economic Bulletin

The Green Book

2015

2014 Annual Annual

Economically inactive population (millions)

2016

Nov

Oct

Nov

15.98 16.11 16.47 15.84 15.92 16.19 16.10 16.57 15.97 15.93 16.01 16.09

Labor force participation 62.4 rate (%)

62.6

61.5 63.2 63.0 62.5 62.7 61.7 63.2 63.4 63.2 63.0

(Seasonally adjusted)

62.4

62.6

62.8 62.3 62.5 62.6 62.5 62.8 62.4 62.9 62.8 62.9

Growth in economically inactive population -246 (y-o-y, thousands)

128

150

162

128

197

135

-8

-63

-73 -115 -105

-63

-52

-37

-45

-91

-41

-19

-29

- Childcare

-39

- Housework

-131

101

- Education

-81

-146 -141 -213 -112 -118 -131 -108

-89 -116

-96

-40

- Old age

109

103

171

169

161

109

113

- Rest

-92

141

154

151

123

136

210

141

-19

-77 -111

Source: Statistics Korea

9. Financial markets 9.1 Stock market The KOSPI rose 2.2 percent in December from 1,983.48 points to 2,026.46 points, and the KOSDAQ was up 5.9 percent from 596.11 points to 631.44 points. The KOSPI and KOSDAQ surged in early December due to high international oil prices and expectations that the ECB would extend its QE program, but volatility increased with the Fed’s decision on December 14 to raise rates. The indices closed higher in December backed by early gains and foreign investors’ net buying of Korean shares. (Closing rate)

KOSPI Nov 2016 Dec 2016

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

KOSDAQ Change1

Nov 2016 Dec 2016

1,983.48 2,026.46 +42.98 (+2.2%) 596.11

Change¹

631.44 +35.33 (+5.9%)

1,277.3

1,308.4 +31.1 (+2.4%)

189.2

201.5

+12.3 (+6.5%)

4.46

3.51 -0.95 (-21.2%)

2.93

2.98

-0.05 (-1.9%)

10.16

10.06

-0.10 (-1.0%)

35.22

35.20

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

+0.02 (-0.1%)

January 2017

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

KOSPI

200

KOSDAQ

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Source: Korea Exchange

9.2 Exchange rate The dollar-won exchange rate rose 3.2 percent in December to 1,207.7 won as the dollar strengthened in the wake of the Fed’s rate hike and amid expectations of a faster pace of tightening in 2017.

Foreign exchange rates (month-end, ￦) 1,800 1,600

The 100 yen-won exchange rate remained nearly unchanged as both the won and the yen depreciated against the dollar.

1,400 1,200 1,000 800 600

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Source: Bank of Korea Dollar-Won

100 Yen-Won

(Closing rate)

2010

2011

2012

2013

2014

2015

Dec

Nov

Dec

1,134.8

1,151.8

1,070.6

1,055.4

1,099.3

1,172.5

1,169.1

1,207.7

-3.2

100 Yen-Won 1,393.6

1,481.2

1,238.3

1,002.3

913.0

974.1

1,037.8

1,035.4

+0.2

Dollar-Won

2016 Change¹

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

Economic Bulletin

The Green Book

Daily foreign exchange rate trend (â&#x201A;Š) 1,300

1,200

1,100

1,000

Dollar-Won 900

100 Yen-Won

2015.12

2016.1

2016.2

2016.3

2016.4

2016.5

2016.6

2016.7

2016.8

2016.9

Source: Bank of Korea

9.3 Bond market Treasury bond yields, which rose in the wake of the Fedâ&#x20AC;&#x2122;s rate hike and its signaling of faster rate increases in 2017, recovered into the end of December backed by seasonal demand from investors working on their year-end portfolio adjustments.

Interest rates (monthly average, %) 10 9 8 7 6 5 4

3-yr corporate bond yield

3 2

3-yr Treasury bond yield 1

Overnight call rate (daily)

2008.1

2009.1

Source: Bank of Korea

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

January 2017

(Closing rate, %)

2010

2011

2012

2013

2014

2015

Dec

Call rate (1 day)

2.51

3.29

2.77

2.52

2.03

CD (91 days)

2.80

3.55

2.89

2.66

2.13

2016 Oct

Nov

Dec

Change¹

1.52

1.24

1.23

1.27

1.67

1.39

1.52

Treasury bonds (3 yrs)

3.38

3.34

2.82

2.86

2.10

1.66

1.44

1.71

1.64

-7

Corporate bonds (3 yrs)

4.27

4.21

3.29

2.43

2.11

1.85

2.15

2.13

-2

Treasury bonds (5 yrs)

4.08

3.46

2.97

3.23

2.28

1.81

1.50

1.90

1.80

-10

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

9.4 Money supply and money market M2 (monthly average) in October increased 7.1 percent from a year ago as the money supply from the private sector as well as the public sector increased.

Total money supply (y-o-y, monthly average balance, %) 40

Reserve money

-10

M1 -20

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Source: Bank of Korea

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

2010

2011

2012

2013

2014

2015

2016

Annual

Aug

Sep

Oct

Oct¹

M1²

11.8

6.6

3.8

9.5

10.9

18.6

13.0

12.9

12.5

758.9

8.7

4.2

5.2

4.8

6.6

8.6

7.2

6.9

7.1

2,392.1

Lf³

8.2

5.3

7.8

6.9

7.0

9.7

8.0

7.8

8.1

3,309.6

1. Balance at end October 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

Economic Bulletin

The Green Book

Bank deposits expanded 12.0 trillion won month-on-month in November, led by instant access deposits (up 8 trillion won), as corporations redeposited funds they withdrew to pay value added taxes (VATs). Asset management company (AMC) deposits increased at a slower pace monthon-month, as fixed income funds fell by 3.3 trillion won amid rising market interest rates and money market funds (MMFs) increased 4.2 trillion won with inflows of corporations’ short-term surplus funds. (Change from the end of the previous period, trillion won)

2010

2011

2012

2013

2014

2016

2015

Annual Annual Annual Annual Annual Annual

Aug

Sep

Oct

Nov

Nov¹

Bank deposits

36.9

58.9

37.0

41.0

115.4

100.3

12.8

6.3

13.9

12.0

1,462.8

AMC deposits

-16.7

-16.6

18.8

17.7

42.4

44.4

-1.4

-11.2

6.3

5.7

485.3

1. Balance at end November 2016

Source: Bank of Korea

Deposits in financial institutions (m-o-m, end of month balance, trillion won) 60 50 40 30 20 10 0 -10 -20

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Source: Bank of Korea

10. Balance of payments Korea’s current account (preliminary) in November posted a surplus of US $8.99 billion, staying in the black for 57 consecutive months. The goods account surplus increased month-on-month from US $9.83 billion to US $10.52 billion. Growth in goods exports (y-o-y, %) -6.3 (Oct 2016) → 7.7 (Nov)

January 2017

Growth in goods imports (y-o-y, %) -5.0 (Oct 2016) → 10.6 (Nov)

Export growth by item in November (y-o-y, %, customs clearance basis)

2.5 (total), 20.0 (petrochemicals), 11.6 (semiconductors), 10.7 (steel), 1.7 (petroleum products), 1.3 (automobiles), -17.9 (mobile phones), -36.8 (vessels)

Import growth by category in November (y-o-y, %, customs clearance basis) 9.3 (total), 11.1 (commodities), 6.2 (capital goods), 10.9 (consumer goods)

The services account deficit expanded month-on-month from US $1.59 billion to US $1.74 billion as the travel account deficit increased. Services account (US $ billion, Oct → Nov)

-0.48 → -0.48 (manufacturing), 0.15 → -0.15 (transportation), -0.50 → -0.75 (travel), 0.57 → 0.72 (construction), -0.51 → -0.31 (intellectual property rights), -0.90 → -0.92 (other businesses)

Travel balance (US $ billion) 4

-1

Travel balance

-2

Travel payment -3

Travel revenue

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Source: Bank of Korea (balance of payments trends)

The primary income account surplus decreased from US $0.86 billion to US $0.44 billion as the interest income account surplus fell. The secondary income account deficit fell from US $0.38 billion to US $0.23 billion. (US $ billion)

2015 Annual

2016 Q3

Nov

Q1¹

Q2¹

Q3¹

Oct¹ Nov¹

Current account

105.94 23.22 26.95 28.25 27.52

- Goods balance

122.27 24.52 33.67 31.32 32.77 10.64 28.95 33.53 28.27 9.83 10.52

- Services balance

-14.92 -4.11 -3.04 -3.74 -4.03 -1.22 -3.92 -3.91 -5.66 -1.59 -1.74

9.84 25.35 26.34 21.51 8.72

8.99

- Primary income balance

3.57

- Secondary income balance

-4.99 -1.20 -0.85 -1.68 -0.88 -0.19 -0.88 -1.18 -2.36 -0.38 -0.23

1. Preliminary Source: Bank of Korea

4.07 -2.48

1.52

0.47

0.61

1.20 -2.11

1.26 0.86

0.44

Economic Bulletin

The Green Book

Current account balance (US $ billion) 16 14 12 10 8 6 4 2 0

Current account

-2

Goods account

-4 -6

Services account

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Source: Bank of Korea (balance of payments trends)

The capital and financial account (preliminary) in November saw an outflow of US $8.90 billion. Capital & financial account balance* (US $ billion)

7.81 (Nov 2015) → 0.71 (Apr 2016) → 9.09 (May) → 9.32 (Jun) → 10.15 (Jul) → 7.52 (Aug) → 9.58 (Sep)→ 7.04 (Oct) → 8.90 (Nov) * Positive figures represent net outflows, and negative figures represent net inflows.

Net outflows of FDI decreased from US $1.36 billion a month earlier to US $0.66 billion as inbound FDI increased at a faster pace (up US $1.26 billion → up US $1.44 billion), while Korean FDI rose at a slower pace (up US $2.62 billion → up US $2.10 billion). Net outflows of portfolio investment fell from US $9.87 billion to US $6.97 billion, as foreign investment in Korean shares decreased at a slower pace (down US $3.25 billion → down US $2.69 billion), while Korean investment in foreign shares expanded at a slower pace (up US $6.61 billion → up US $4.28 billion).

Capital & financial account balance (US $ billion) 15 10 5 0 -5 -10 -15

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Source: Bank of Korea (balance of payments trends) Capital & financial account

Direct investment

Portfolio investment

Financial derivatives

Financial derivatives investment and other investment saw net outflows of US $0.1 billion and US $1.69 billion, respectively. The current account surplus is likely to decrease in December given falling trade surpluses (US $8.00 billion → US $7.00 billion, Nov → Dec).

January 2017

11. Prices 11.1 Consumer prices Consumer prices in December rose 1.3 percent year-on-year and 0.1 percent month-on-month.

Consumer price inflation (%) 7 6 5 4 3 2 1

Consumer price inflation (y-o-y) Consumer price inflation (m-o-m)

0 -1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Source: Statistics Korea (consumer price trends)

Consumer price inflation

(%)

2016 Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Year-on-Year

0.6

1.1

0.8

1.0

0.8

0.7

0.4

0.5

1.3

1.5

1.3

Month-on-Month

0.2

0.4

-0.3

0.2

0.1

0.0

-0.2

0.3

0.6

0.1

-0.1

0.1

Source: Statistics Korea

Agricultural, livestock & fishery product prices increased at a slower pace (up 8.0% â&#x2020;&#x2019; up 6.7%, y-o-y) due to a high base effect from a year earlier when vegetable prices surged. Oil product prices rose 1.1 percent after falling 2.5 percent in the previous month as international oil prices increased with OPEC member countries agreeing to cut production. Public utility charges fell at a faster pace (down 6.5% â&#x2020;&#x2019; down 11.5%) as the government cut electricity rates for households as of December 1.

Economic Bulletin

The Green Book

Contribution to consumer price inflation (%p) 6 5 4

Personal services

Public services

Housing rents

Public utilities 0

Manufactured products -1

Agricultural, livestock & fishery products

2008

2009

2010

2011

2012

2013

2014

2015

2016

Source: Statistics Korea (consumer price trends)

Consumer price inflation in major sectors Total

Agricultural, Manufactured Oil Excluding Public Housing Public Personal livestock products products oil products utilities rents services services & fishery products

Nov (y-o-y, %)

1.5

Dec (y-o-y, %)

1.3

6.7

0.6

- Contribution (%p)

0.52

0.19

8.0

0.2

-2.5

0.6

-6.5

1.7

0.9

2.7

1.1

0.5

-11.5

1.7

0.9

2.7

0.05

0.14

-0.51

0.16

0.14

0.84

Source: Statistics Korea

Consumer prices excluding oil and agricultural products rose 1.2 percent year-onyear, a slower pace than the previous month. (Percentage change from same period in previous year)

2016 May Jun

Sep

Oct

Nov

Dec

Consumer prices excluding oil and agricultural products 1.8

1.8

1.3

1.5

1.8

1.6

1.2

Consumer prices excluding food and energy

0.0

0.2

-0.1

0.0

-0.1

0.1

0.2

Jul

Aug

Source: Statistics Korea

Consumer prices for basic necessities rose at a slower pace than the previous month (up 1.6% â&#x2020;&#x2019; up 1.2%, y-o-y) due to electricity rate cuts. Fresh food prices increased at a slower rate (up 14.2% â&#x2020;&#x2019; up 12.0%) as vegetable price inflation slowed down.

January 2017

(Percentage change from same period in previous year)

2016 Mar

Apr

May

Jun

Jul

Aug

Consumer prices for basic necessities

0.5

0.6

Fresh food prices

7.8

7.0

0.4

0.3

-0.3

-0.2

1.3

-3.4

-2.0

1.1

Sep

Oct

Nov

Dec

1.0

1.4

1.6

1.2

16.6 13.3

14.2

12.0

Source: Statistics Korea

Prices (y-o-y, %) 16

Consumer price inflation

-4

Core consumer price inflation -8

Producer price inflation

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Sources: Statistics Korea (consumer price trends), Bank of Korea (producer prices)

11.2 International oil and commodity prices International oil prices rose month-on-month in December amid expectations that global oil markets would balance out as OPEC as well as non-OPEC oil producers agreed to cut production on November 30 and December 10, respectively. Under these agreements, oil production would be cut by 1,758,000 barrels a day. Dubai crude (US $/barrel)

51.1 (1st week Dec) → 52.6 (2nd week) → 52.4 (3rd week) → 53.5 (4th week)

(US $/barrel, period average)

2016

2015 Q1

Annual

Oct

Nov

Dec

Dubai crude 50.7

Annual

51.9

60.5

49.9

40.8

41.4

30.5

43.2

48.3

49.0

44.0

52.1

Brent crude

53.6

55.1

63.5

51.3

44.7

45.1

35.2

47.0

51.1

51.4

47.1

54.9

WTI crude

48.8

48.6

58.0

46.5

42.2

43.5

33.6

45.6

44.9

49.3

49.9

45.8

52.2

Source: Korea National Oil Corporation

Economic Bulletin

The Green Book

International oil prices (US $/B) 160 140 120 100 80 60 40 20

WTI 0

Dubai crude

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Source: Korea National Oil Corporation

Domestic gasoline prices increased month-on-month in December as rising international oil prices were reflected with a time lag. Domestic gasoline prices (won/liter)

1,433.7 (1st week Dec) → 1,448.2 (2nd week) → 1,464.1 (3rd week) → 1,475.5 (4th week)

International gasoline prices (US $/barrel)

58.5 (4th week Nov) → 58.4 (5th week) → 62.7 (1st week Dec) → 63.7 (2nd week)

Dollar-won exchange rate (won)

1,179.2 (4th week Nov) → 1,171.1 (5th week) → 1,168.0 (1st week Dec) → 1,169.5 (2nd week)

Dubai crude prices and import prices (thousand won/B)

(US $/B)

160

140

120

100

Dubai crude (import prices, left) 20

Dubai international prices (right)

2008.1

2009.1

2010.1

Source: Korea National Oil Corporation

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

January 2017

(Won/liter, period average)

2016

2015 Annual

Annual

Oct

Nov

Dec

Gasoline prices 1,510 1,485 1,543 1,544 1,468 1,403 1,363 1,396 1,419 1,433 1,417 1,427 1,455 Diesel prices

1,300 1,313 1,344 1,309 1,233 1,183 1,121 1,168 1,213 1,228 1,211 1,223 1,250

Source: Korea National Oil Corporation

International corn and wheat prices rose in December due to unfavorable weather conditions in Argentina and India’s lifting of wheat import duty. Argentina was hit by an extremely dry spell, the most severe since 1980, and India decided on December 9 to scrap its 10 percent wheat import duty. International grain price increases in December (monthly average, m-o-m, %) 2.4 (corn), 0.8 (wheat), 1.6 (soybeans)

International copper prices rose in December as economic indicators improved in China. China’s imports and exports in November increased 6.7 percent and 0.1 percent, respectively, going against market expectations that each would decline 1.3 percent and 5 percent. International aluminum prices decreased in December as China’s aluminum production in November increased 3.8 percent from a year earlier to 2.8 million tons. Nonferrous metal price increases in December (monthly average, m-o-m, %) 3.9 (copper), -0.2 (aluminum), -1.4 (nickel), 3.8 (zinc), 2.1 (lead), 0.2 (tin)

International commodity prices (points)

(points)

470

4,000

430 390

3,000

350 310

2,000

270 230

1,000

190

CRB (left) 150

Reuters index (right)

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Sources: KOREA PDS * CRB demonstrates a futures price index of 21 commodities listed on the US Commodity Transaction Market, including beans and other crops, crude oil and jewelry. (Period average, points)

2016

2015 Annual Q1

Reuters Index1 (Sep 18,1931=100)

Q4 Annual Q1

Oct

Nov

Dec

2,328 2,368 2,394 2,287 2,269 2,330 2,115 2,250 2,414 2,536 2,493 2,543 2,574

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

Economic Bulletin

The Green Book

12. Real estate market 12.1 Housing market Housing prices nationwide rose 0.1 percent month-on-month in December. Housing prices rose 0.1 percent in the Seoul metropolitan area, which includes Seoul (up 0.1%), Gyeonggi Province (up 0.1%) and Incheon (up 0.1%). 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 (0.4), Daegu (-0.1), Gwangju (0.1), Daejeon (0.1), Ulsan (0.0)

Housing sales prices

(Percentage change from previous period)

2015

2012 2013 2014

Annual Annual Annual Annual Nov

2016 Dec Annual Sep

Oct

Nov

Dec

Nationwide

0.0

0.3

1.7

3.5

0.3

0.2

0.7

0.1

0.2

0.1

Seoul metropolitan area

-3.0

-1.1

1.5

4.4

0.4

0.2

1.3

0.1

0.2

0.1

- Seoul

-2.9

-1.4

1.1

4.6

0.5

0.3

2.1

0.3

0.4

0.3

0.1

· Gangnam¹

-3.5

-1.1

1.2

5.2

0.5

0.3

2.5

0.3

0.6

0.4

0.1

· Gangbuk²

-2.3

-1.7

1.1

3.9

0.4

0.3

1.8

0.2

0.3

0.1

3.1

1.7

1.9

2.7

0.3

0.1

0.2

0.0

0.1

Areas excluding the Seoul metropolitan area 1. Upscale area of Southern Seoul Source: Korea Appraisal Board

2. Northern Seoul

Housing sales prices (m-o-m, %) 3

Nationwide

-1

Seoul metropolitan area -2

Areas excluding Seoul metropolitan area

2008.1

2009.1

2010.1

Source: Korea Appraisal Board

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

January 2017

Housing rental prices nationwide rose 0.1 percent month-on-month in December. Rental prices increased 0.1 percent both in the Seoul metropolitan area and in areas excluding the Seoul metropolitan area. Housing rental price increases in major districts in Seoul (m-o-m, %) Gangnam (0.1), Seocho (0.0), Gangdong (-0.1), Yangcheon (0.3), Mapo (0.3)

Housing rental prices

(Percentage change from previous period)

2015

2012 2013 2014

Annual Annual Annual Annual Nov

2016 Dec Annual Sep

Oct

Nov

Dec

Nationwide

3.5

4.7

3.4

4.8

0.4

0.3

1.3

0.1

Seoul metropolitan area

2.1

6.2

4.7

7.1

0.6

0.4

2.0

0.1

0.2

0.1

- Seoul

2.1

6.6

3.6

7.2

0.7

0.5

2.0

0.1

0.2

0.1

· Gangnam¹

2.4

6.7

3.3

7.9

0.7

0.5

1.8

0.1

0.2

0.1

· Gangbuk²

1.8

6.4

3.8

6.5

0.8

0.5

2.1

0.2

0.1

4.6

3.3

2.2

2.8

0.3

0.2

0.7

0.0

0.1

Areas excluding the Seoul metropolitan area 1. Upscale area of Southern Seoul Source: Korea Appraisal Board

2. Northern Seoul

Housing rental prices (m-o-m, %) 3

-1

Nationwide

-2

Seoul metropolitan area Areas excluding Seoul metropolitan area

-3

2008.1

2009.1

2010.1

2001.1

2012.1

2013.1

2014.1

2015.1

2016.1

Source: Korea Appraisal Board

There were 102,888 housing transactions in November, down 5.3 percent from a month earlier (108,601) and up 5.2 percent from a year ago (97,813).

Housing transactions

(Thousands)

2012 2013 2014 2015

2016

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

Nationwide

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

109 103

Economic Bulletin

The Green Book

Monthly housing transactions (thousands) 150

125

100

Nationwide

Seoul metropolitan area 0

Areas excluding Seoul metropolitan area

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Source: Ministry of Land, Infrastructure and Transport

12.2 Land market Land prices nationwide rose 0.24 percent month-on-month in November. Land prices increased 0.23 percent in the Seoul metropolitan area including Seoul (up 0.25%) and Gyeonggi Province (up 0.22%). Land prices rose 0.26 percent in areas excluding the Seoul metropolitan area, led by Daegu (up 0.34%), Gwangju (up 0.32%) and Jeju (up 0.42%). Land price increases in Seoul metropolitan area (m-o-m, %)

0.21 (May 2016) → 0.24 (Jun) → 0.25 (Jul) → 0.23 (Aug) → 0.24 (Sep) → 0.25 (Oct) → 0.23 (Nov)

Land price increases in areas excluding Seoul metropolitan area (m-o-m, %)

0.24 (May 2016) → 0.25 (Jun) → 0.24 (Jul) → 0.24 (Aug) → 0.24 (Sep) → 0.25 (Oct) → 0.26 (Nov)

Land prices by region (y-o-y, %) 16

National average Metropolitan city

-4

City County

-8

2000

2001

2002

2003

Source: Korea Appraisal Board

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

January 2017

Land prices

(Percentage change from previous period)

2015

2012 2013 2014 Annual Annual Annual Annual

2016

Annual

Sep

Oct

Nov

Nationwide

0.96

1.14

1.96

2.40

0.60

0.72

2.48

0.56

0.68

0.72

0.24

0.25

0.24

Seoul

0.38

1.21

2.66

2.69

0.69

0.72

2.73

0.57

0.76

0.83

0.27

0.29

0.25

Gyeonggi

1.04

0.91

1.24

1.73

0.43

0.52

2.05

0.37

0.58

0.64

0.21

0.23

0.22

Incheon

0.46

0.87

1.35

1.95

0.54

0.50

1.61

0.34

0.48

0.47

0.14

0.15

Source: Korea Appraisal Board

There were 274,000 land transactions in November, up 0.1 percent from the previous month and up 5.8 percent from a year ago (259,000). Land transactions decreased month-on-month in Seoul (down 5.8%), Busan (down 2.0%), Gwangju (down 12.6%) and Sejong (down 13.4%) but increased in Gangwon Province (up 17.9%), North Chungcheong Province (up 16.8%) and South Jeolla Province (up 14.0%). Vacant land transactions, which accounted for 34.4 percent of total land transactions, recorded 94,000, up 7.0 percent month-on-month and down 1.7 percent compared with a year ago (96,000).

Land transactions

(Land lots, thousands)

2012 2013 2014 2015

2016

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

Nationwide

170

187

220

257

Seoul

207 191 248 245 253 262 258 266 240 274 274 21

Gyeonggi

Incheon

1. Monthly average Source: Korea Land & Housing Corporation

Land transactions (thousand mÂ˛) 350,000 300,000 250,000 200,000 150,000 100,000 50,000

Seoul metropolitan area Areas excluding Seoul metropolitan area

2008.1

2009.1

Source: Korea Appraisal Board

2010.1

2011.1

2012.1

2013.1

2014.1

2015.01

2016.01

Economic Bulletin

The Green Book

13. Composite indices of business cycle indicators Industrial output in November increased 1.6 percent month-on-month and 4.6 percent year-on-year. Output rose month-on-month in mining & manufacturing (up 3.4%), construction (up 6.4%), services (up 0.1%) and public administration (up 0.5%).

Index of all industry production (%)

20 15 10 5 0 -5 -10

Index of all industry production (y-o-y) -15

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

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Source: Statistics Korea (industrial activity trends)

2016 Index of all industry production (m-o-m, %) (y-o-y, %)

Apr

May

Jun

-0.7 0.8

2.0 5.0

0.7 4.8

Jul 0.0 3.5

Aug

Sep1

Oct1

Nov1

0.0 5.1

-0.9 1.2

-0.4 1.9

1.6 4.6

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

119.8 120.4 121.0 121.8 122.4 122.4 122.3 122.7 0.3 0.5 0.5 0.7 0.5 0.0 -0.1 0.3

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

100.0 100.3 100.5 100.9 101.2 100.9 100.6 100.6 0.0 0.3 0.2 0.4 0.3 -0.3 -0.3 0.0

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

124.5 124.9 125.3 125.8 126.5 127.3 127.9 128.3 0.5 0.3 0.3 0.4 0.6 0.6 0.5 0.3

Cyclical indicator of leading composite index 100.4 100.4 100.3 100.4 100.7 100.9 101.0 101.0 0.1 0.0 -0.1 0.1 0.3 0.2 0.1 0.0 (m-o-m, p) 1. Preliminary Source: Statistics Korea

The cyclical indicator of the coincident composite index remained unchanged at 100.6. Five components of the coincident composite index, including domestic shipments, imports and mining & manufacturing production, increased, while service output and nonfarm payroll employment decreased.

January 2017

Components of the coincident composite index in November (m-o-m)

domestic shipments (1.4%), imports (1.2%), mining & manufacturing production (0.8%), value of construction completed (0.4%), retail sales (0.2%), service output (-0.4%), nonfarm payroll employment (-0.1%)

Cyclical indicator of coincident composite index (points) 110

100

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Source: Statistics Korea (industrial activity trends)

The cyclical indicator of the leading composite index stayed unchanged at 101.0. Five components of the leading composite index, including domestic shipments of machinery and the inventory circulation indicator, were up, while three others, such as the value of construction orders received and the consumer expectations index, were down. Components of the leading composite index in November (m-o-m)

domestic shipments of machinery (2.1%), inventory circulation indicator (1.4%p), ratio of job openings to job seekers (0.9%p), ratio of export to import prices (0.4%), spreads between long & short term interest rates (0.16%p), value of construction orders received (-15.0%), consumer expectations index (-2.9p), KOSPI (-0.9%)

Cyclical indicator of leading composite index (points) 110

100

2008.1

2009.1

2010.1

2011.1

Source: Statistics Korea (industrial activity trends)

2012.1

2013.1

2014.1

2015.1

2016.1

Policy Issue

2017 work report: making the economy stronger

January 2017

2017 Work Report: Making the Economy Stronger The government has presented the 2017 work report: making the economy stronger, which focuses on reducing uncertainties and boosting the economy.

Evaluation for the last four years The Korean economy has been doing well for the last four years as the country’s GDP is projected to be the 11th largest in 20161, going up from 14th in 2012, and the country’s credit ratings have been upgraded to the highest notches in history despite increasing external uncertainties. In addition, fiscal resources have been efficiently managed as the government cut spending on overlapping or similar projects as well as reformed fiscal spending2, and total tax revenue3 has been on the rise. The reform of the public sector proved successful as financial soundness of public institutions has improved significantly and performance-based reward has been adopted by 119 public enterprises and quasi-governmental institutions as of June 2016. However, the economy has to cope with weakening recovery momentum and widening income discrepancy between permanent and temporary workers, and between large conglomerates and small- and medium-sized enterprises (SMEs). Furthermore, the economy needs to be prepared for risks possibly arising from internal and external uncertainties, and also for the 4th Industrial Revolution. 1. According to the IMF 2. Introduced zero-based budgeting for fiscal projects and cut support in 2015, reduced discretionary spending by 10 percent in 2016 3. Total tax revenue excluding social security contributions as percentage to GDP: 17.9 (2013) → 18.0 (2014) → 18.5 (2015) → 18.9 (2016 supplementary budget)

Economic Bulletin

Policy Issue

Against this backdrop, the government presented the 2017 work report which focuses on the following.

1. Do its utmost to successfully manage internal and external uncertainties - Implement dynamic macroeconomic policies to sustain growth momentum: a fiscal spending increase by more than 20 trillion won, 31 percent of the budget frontloaded to the first quarter of 2017, the largest ever, and efforts to avoid FX market volatility - Improve household debt quality as well as control the debt level, and announce another round of housing market measures in the first half, which are tailored to different market situations in different regions - Maintain the countryâ&#x20AC;&#x2122;s high level of credit worthiness by building trust with foreign investors and credit rating agencies regarding the strong fundamentals of the economy - Manage external soundness by closely monitoring risk factors such as capital movements and external debt situations, as well as increasing financial resources4 to prepare for sudden volatility that will possibly occur - C ope with protectionism: Establish mutually beneficial economic and trade relationship with the new US administration, address issues regarding trade with China, and find solutions through multilateral cooperation bodies, such as the APEC - Actively participate in the G20 discussion of major agenda from Koreaâ&#x20AC;&#x2122;s point of view

2. Boost the real economy and support the working class - Keep necessities prices low, such as the prices of fresh food, public utilities and processed food - Work on the creation of decent jobs, and promote the employment of young adults, women and those laid off due to restructuring - Promote consumption: Provide tax breaks for new car purchases if they replace old diesel vehicles5, and expand the Korea Sales Festa6 to art performances, restaurants and other services - Encourage private sector investment in public projects: Conduct a fastest review possible if public projects are proposed by the private sector, and promote BTL projects7

A shopping street in downtown Seoul is filled with tourists and shoppers during the Korea Sales Festa period on October 3, 2016. The government stated in its 2017 work report that it will promote consumption by expanding the Korea Sales Festa to art performances, restaurants and other services.

4. US $1 billion worth of foreign currency-denominated bond issuance to finance FX market stabilization funds 5. Temporarily provide a 70 percent individual consumption tax cut and a 50 percent registration tax cut until June 2017 6. Nationwide sales promotion event 7. Build-Transfer-Lease, in which the private sector invests in public projects and recollects their investments by operating the facilities

January 2017

- Work on bilateral and multilateral trade negotiations currently underway, including RECP and TISA8, to reach agreements as fast as possible - Promote Korean companiesâ&#x20AC;&#x2122; participation in overseas infrastructure projects by providing all-round support, including diplomatic support and increased financing

3. Efficiently manage fiscal resources Fiscal soundness - Accelerate fiscal reform: Work on the passage of the Fiscal Soundness Act by the National Assembly to build a legal foundation for securing mid- to long-term fiscal soundness, which limits the level of national debt below 45 percent to GDP and the deficit in the consolidated fiscal balance excluding social security funds below 3 percent to GDP - Increase fiscal spending efficiency: Root out benefit fraud by building an integrated system to manage government support programs, and thoroughly evaluate fiscal projects to better allocate fiscal resources to addressing current issues, such as sluggish exports and low birth rates

Fair and efficient taxation - Help boost the economy: Introduce an investment-friendly as well as employmentfriendly tax system, and expand tax support for working and middle-income classes - Work on redesigning tax incentives for fairer taxation and on improving tax transparency - Reduce compliance costs: Keep working on improving tax regulations and on the rewriting of tax legislation to improve understandability

Treasury management - Work on providing appropriate financing through Treasury bond issuance: Strengthen the monitoring of the financial market and further develop the primary dealer system that works for Treasury bond markets - Work on increasing management efficiency regarding national properties and outsourced public projects

4. P ersistently pursue restructuring and prepare for the future Restructuring - Public sector reform: Implement performance-based salaries in public enterprises and quasi-governmental institutions, draw up plans for adjusting public enterprise 8. Regional Comprehensive Economic Partnership (RECP), a proposed trade agreement among Asia-Pacific countries, and Trade in Service Agreement (TISA), WTOâ&#x20AC;&#x2122;s service trade agreement under negotiation

Economic Bulletin

Policy Issue

businesses in the policy financing, healthcare and industrial promotion sectors to help the public institutions focus on their core-competencies, and increase investment in essential public services and new industries - Corporate and industrial restructuring: Pursue restructuring according to the firm principles of self-rescue efforts and fair burden-sharing, and prepare for potential risks arising from the restructuring

Future growth engines - Work on removing regulatory obstacles, and revise government support, including tax and financial support, to be new industry-friendly - Work for the service sector development plans to produce tangible outcomes, as well as work on enacting the framework act on service sector development - Found a basis for further developing the service sector: Promote business services which support the manufacturing sector, increase R&D investment, support service exporters, and work on the development of the seven promising services, such as healthcare, tourism, contents, education, finance, software and logistics

Prepare for the future - Prepare for low birth rates and ageing population: Review fiscal projects designed to increase birth rates and redesign them if necessary, work on adjusting state pension ages and retirement ages, and promote the elderly to establish multiple streams of income - Prepare for the 4th Industrial Revolution: Form a public-private task force which will act as a control tower to better cope with changes due to the 4th Industrial Revolution

Launch a government-wide emergency task force The government will form a task force to successfully deal with any emergency that would possibly arise, and will closely cooperate in all areas of state affairs from foreign affairs including global financial markets, to economic affairs, National Assembly, diplomacy and national defense. The Ministry of Strategy and Finance will act as a control tower in the case of an economic emergency.

Government officials brief the press on the 2017 work report at the Government Complex in Seoul on January 5.

Economic News Briefing

Deputy Prime Minister holds IR in New York BOK forecasts 2.5% growth for 2017 FX stabilization bonds worth US $1 bn sold Government to boost overseas infrastructure projects FDI posts record high in 2016 Exports down 5.9% in 2016

Economic Bulletin

Economic News Briefing

Deputy Prime Minister holds IR in New York D e p u t y Pr i m e M i n i s te r Yoo Il Ho held an investor relations (IR) conference in New York on January 11. Some 170 foreign investors and officials from major global financial companies attended the meeting. In his speech titled “Korean Economy: Navigating Uncertainties,” Deputy Prime Minister Yoo emphasized that the Korean economy is strong and agile enough to withstand both internal and external uncertainties, and Deputy Prime Minister Yoo Il Ho speaks in front of foreign investors at an IR conference in New York on January 11. that the Korean government will continue to pursue macroeconomic strength, as well as work on industrial restructuring, household debt management, and corporate governance reform. Foreign investors and economists in attendance positively assessed the IR conference in that it was timely and made them reassured about strong fundamentals of the Korean economy when uncertainties are rising domestically and globally. They also assessed the meeting as a signal that the Korean government will act promptly and appropriately in the face of difficulty.

BOK forecasts 2.5% growth for 2017 The Bank of Korea (BOK) predicted that the Korean economy will grow 2.5 percent in 2017. According to the central bank’s economic outlook report released on January 13, Korea’s economic growth rate will be 2.4 percent in the first half of 2017, but will improve to 2.6 percent in the second half of the year. Despite a slowdown in private consumption and construction investment, the economy will gradually recover with exports and facility investment improving. In 2018, the economy is expected to grow 2.8 percent as the global economy improves.

January 2017

The number of workers on payrolls is expected to increase by 260,000 in 2017, and the unemployment rate is forecast to be 3.9 percent. Consumer prices are expected to rise 1.8 percent this year.

FX stabilization bonds worth US $1 bn sold The government successfully sold US $1 billion worth of 10-year governmentissued dollar-denominated bonds to strong global demand on January 12. This was Korea’s first dollar-denominated bond sale since the country’s sovereign credit rating was upgraded to AA in the second half of last year. The bonds were sold at 55 basis points over comparable US Treasury bonds. The 2.871 percent yield is the lowest yield ever for government-issued dollar-denominated bonds. Also, the rate is low compared to equivalents issued by countries with similar credit ratings. Strong global demand, which amounted to US $3 billion, lowered the spread to a record level of 55 basis points. The sale is expected to contribute to lowering external debt costs for the private sector as well as state-owned financial institutions and public enterprises by providing a lower benchmark yield rate. It will also contribute to stabilizing credit default swap (CDS) premiums by increasing foreign exchange (FX) stabilization bonds in the market.

Government to boost overseas infrastructure projects Measures to increase support for the infrastructure industry were discussed at this year’s first Ministerial Meeting on International Economic Affairs held on January 4. The government support will be focused on major bilateral economic cooperation projects, large scale projects and projects that create strong forward and backward linkages. The government will regularly examine how well Korean companies are doing in receiving orders through high-level official meetings and ministerial meetings. The government will also provide a total of 10 trillion won of financial support to relieve financial difficulties faced by companies participating in overseas infrastructure projects, an increase of 2.2 trillion won compared with last year, through the country’s Economic Development Cooperation Fund (EDCF), SOC export financing programs and other economic cooperation funds.

Economic Bulletin

Economic News Briefing

FDI posts record high in 2016 Foreign direct investment (FDI) in Korea reached a record high of US $21.30 billion in 2016, surpassing US $20.00 billion for the second consecutive year. FDI in manufacturing rose 12.4 percent year-on-year to US $5.13 billion, led by transportation machinery, biopharmaceuticals and metals, while FDI in services was up 5.3 percent to a record high of US $15.51 billion, led by business services, wholesale & retail and financial & insurance services. By investor country, EU investment in Korea increased 196.5 percent to US $7.40 billion, and China’s investment in Korea rose 3.6 percent to US $2.05 billion.

Exports down 5.9% in 2016 Korea’s exports in 2016 declined 5.9 percent year-on-year to US $ 49.55 billion, and imports dropped 7.1 percent to US $40.57 billion. Exports declined due to a slowdown in global trade, falling prices of major items, strikes in the auto industry and discontinuation of new smartphone products. Excluding mobile devices, exports of 12 major items improved in the second half of 2016 compared to the first half. Imports decreased due to falling oil prices, and a sharp decline in commodity imports offset an increase in consumer goods imports. In 2017, Korea’s exports and imports are forecast to grow 2.9 percent and 7.2 percent, respectively, as the global economy improves and demand for major export items, such as semiconductors, displays and petrochemicals, increases.

Containers are loaded onto ships at Busan Port on February 22, 2016. Korea’s exports and imports last year declined 5.9 percent and 7.1 percent, respectively.

Statistical Appendices

01. National accounts 02. Production, shipment and inventory 03. Production capacity and operation ratio 04. Consumer goods sales index 05. M achinery orders received and facility investment index 06. V alue of construction completed and domestic construction orders received 07. C omposite indices of business cycle indicators, CSI and BSI 08. Prices 09. Employment (I) 10. Employment (II)

11. Balance of payments (I) 12. Balance of payments (II) 13. Financial indicators 14. Monetary indicators 15. Exchange rates

Economic Bulletin

Statistical Appendices

1. National accounts (year-on-year change, %, chained 2010 year prices)

Real GDP

Period

Agri., fores. & fisheries

Final consumption Manufacturing expenditure

Gross fixed capital formation Private consumption

Construction

Facilities

2009

0.7

3.2

-0.5

1.3

0.2

0.3

3.5

-7.7

2010

6.5

-4.3

13.7

4.3

4.4

5.5

-3.7

22.0

2011

3.7

-2.0

6.5

2.7

2.9

0.8

-3.4

4.7

2012

2.3

-0.9

2.4

2.2

1.9

-0.5

-3.9

0.1

2012

2.9

3.1

3.6

2.2

1.9

3.3

5.5

-0.8

2014

3.3

3.6

3.5

2.0

1.7

3.4

1.1

6.0

2015

2.6

-1.5

1.3

2.4

2.2

3.8

3.9

5.3

2008 Ⅰ Ⅱ Ⅲ Ⅳ 2009 Ⅰ Ⅱ Ⅲ Ⅳ 2010 Ⅰ Ⅱ Ⅲ Ⅳ 2011 Ⅰ Ⅱ Ⅲ Ⅳ 2012 Ⅰ Ⅱ Ⅲ Ⅳ 2013 Ⅰ Ⅱ Ⅲ Ⅳ 2014 Ⅰ Ⅱ Ⅲ Ⅳ 2015p Ⅰ Ⅱ Ⅲ Ⅳ 2016p Ⅰ Ⅱ

5.5 4.1 3.9 -1.6 -1.9 -1.1 0.9 4.8 7.3 7.4 5.4 6.0 4.9 3.6 3.3 3.0 2.5 2.4 2.1 2.2 2.1 2.7 3.2 3.5 3.9 3.5 3.4 2.7 2.4 2.2 2.8 3.1 2.8 3.3

7.7 4.6 4.3 6.4 2.5 0.0 5.0 5.0 0.0 -2.2 -7.8 -5.7 -9.3 -2.5 -5.8 7.1 0.1 -1.8 0.0 -1.3 -1.2 0.1 4.3 7.0 5.9 4.5 2.7 2.4 7.5 -4.0 -0.8 -5.0 -2.4 1.5

8.2 7.1 6.1 -5.3 -8.4 -5.7 1.6 10.4 16.1 17.2 10.1 11.9 11.4 6.5 5.6 3.4 2.7 2.8 2.0 2.0 2.7 3.6 3.8 4.2 4.7 4.7 3.1 1.8 0.6 0.5 1.5 2.4 1.9 2.2

4.7 3.1 2.4 -1.4 -1.9 0.9 1.7 4.5 6.2 3.6 3.9 3.4 3.3 3.3 2.8 1.7 2.2 1.3 2.7 2.7 1.5 2.2 2.4 2.6 2.9 1.8 2.0 1.6 1.9 2.1 2.4 3.4 2.7 3.4

4.6 2.6 1.7 -3.2 -4.3 -0.8 0.7 5.3 6.8 3.6 4.0 3.2 3.7 3.7 2.5 1.7 1.6 0.7 2.6 2.7 1.5 1.9 1.9 2.2 2.8 1.7 1.4 1.1 1.5 1.7 2.2 3.3 2.2 3.3

1.8 0.9 2.3 -7.0 -5.4 -1.1 0.8 5.8 12.0 6.8 3.8 1.3 -0.7 2.5 1.7 -0.3 6.2 -2.3 -0.9 -3.6 -3.2 4.2 4.9 6.5 6.1 3.6 3.6 0.8 2.6 2.2 5.1 5.4 3.0 5.3

-2.0 -0.7 0.2 -7.3 1.9 4.4 3.1 4.1 1.6 -4.8 -4.8 -5.1 -8.2 -2.5 -2.2 -2.0 -0.2 -5.3 -2.6 -6.4 1.2 8.9 7.5 3.5 4.5 0.3 2.3 -1.7 0.9 1.0 5.6 7.5 9.6 10.8

7.0 1.4 5.6 -13.0 -19.4 -13.6 -5.9 9.5 27.6 28.8 20.6 12.9 8.3 8.3 3.4 -0.9 11.0 -1.9 -4.2 -3.8 -12.3 -3.2 2.3 11.7 7.4 7.9 4.4 4.4 5.8 5.1 6.7 3.9 -4.5 -2.7

2.6

-4.6

0.8

3.0

2.7

5.3

11.4

-4.2

Ⅲ

p: Preliminary Source: Bank of Korea

January 2017

2. Production, shipment and inventory (constant prices, 2010=100)

Period

Production index*

Shipment index*

y-o-y change (%)

Inventory index*

y-o-y change (%)

Service production index

y-o-y change (%)

2013 2014 2015 2014 2015 2016

Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ 2014 7 8 9 10 11 12 2015 1 2 3 4 5 6 7 8 9 10 11 12 2016 1 2 3 4 5 6 7 8 9 10p

108.2 108.4 107.7 106.9 109.8 105.6 111.3 105.7 108.4 105.5 111.2 105.5 109.5 106.1 112.5 101.2 103.2 110.1 108.7 115.0 108.1 96.0 113.1 109.8 105.2 110.3 108.7 101.4 106.3 112.4 108.5 112.6 105.7 98.2 112.5 107.1 110.1 111.3 110.4 103.7 104.3 110.9

0.7 0.2 -0.6 0.8 0.5 1.2 -1.5 -1.1 -1.3 -0.1 -0.1 -0.2 1.0 0.6 4.2 -2.6 2.1 -2.8 -3.1 1.4 1.5 -5.1 0.1 -2.2 -3.0 1.6 -3.4 0.2 3.0 2.1 -0.2 -2.1 -2.2 2.3 -0.5 -2.5 4.7 0.9 1.6 2.3 -1.9 -1.3

108.1 108.0 107.8 106.6 109.3 104.9 111.3 106.0 108.1 105.8 111.2 105.2 109.5 105.9 109.6 101.7 103.4 109.4 109.5 115.1 108.1 96.6 113.2 109.6 105.4 109.2 107.5 102.1 107.7 112.6 108.4 112.7 103.9 97.5 114.2 108.0 109.5 111.0 108.5 104.1 105.2 110.5

0.8 -0.1 -0.2 0.5 -0.1 0.4 -0.8 -0.6 -1.1 0.9 -0.1 -0.8 1.3 0.1 2.3 -3.1 2.0 -2.8 -1.7 2.2 2.6 -4.7 0.1 -1.4 -3.0 1.0 -1.9 0.4 4.2 2.9 -1.0 -2.1 -3.9 0.9 0.9 -1.5 3.9 1.6 0.9 2.0 -2.3 -1.9

130.7 127.4 131.2 129.6 128.2 129.0 127.4 132.2 134.0 137.7 131.2 136.1 131.1 127.4 132.6 129.9 129.0 130.0 129.2 127.4 131.3 131.9 132.2 133.7 133.0 134.0 137.1 136.8 137.7 136.1 136.2 131.2 136.9 136.6 136.1 132.4 133.5 131.1 133.7 130.2 127.4 128.0

4.4 -2.5 3.0 5.3 7.6 3.6 -2.5 2.0 4.5 6.7 3.0 3.0 -2.2 -7.5 6.9 5.2 3.6 2.9 0.1 -2.5 -0.2 2.4 2.0 2.3 2.6 4.5 3.4 5.3 6.7 4.7 5.4 3.0 4.3 3.6 3.0 -1.0 0.4 -2.2 -2.5 -4.8 -7.5 -6.0

106.4 108.9 112.0 105.4 108.6 108.5 113.1 108.2 111.5 111.6 116.8 111.2 115.6 115.6 108.9 108.1 108.5 110.8 109.9 118.7 106.9 104.7 113.0 111.7 111.5 111.4 111.7 110.6 112.6 114.1 113.2 123.1 110.1 107.6 115.8 113.9 115.6 117.4 115.3 115.9 115.5 116.6

1.5 2.3 2.8 2.1 1.7 2.7 2.8 2.7 2.7 2.9 3.3 2.8 3.7 3.6 3.1 2.3 2.9 2.8 2.3 3.5 2.0 2.7 3.1 4.3 2.3 1.5 2.6 2.3 3.8 3.0 3.0 3.7 3.0 2.8 2.5 2.0 3.7 5.4 3.2 4.8 2.6 2.2

11p

113.7

4.8

112.8

4.1

127.7

-6.2

116.0

2.5

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

Economic Bulletin

Statistical Appendices

3. Production capacity and operation ratio (constant prices, 2010=100)

Period

Production capacity index* (2010=100)

Operation ratio index* (2010=100)

y-o-y change (%)

Average operation ratio* (%)

2013

108.6

1.6

95.1

-2.5

76.5

2014

110.4

1.7

94.3

-0.8

76.2

2015

111.7

1.2

92.1

-2.3

74.3

2014 Ⅰ Ⅱ Ⅲ Ⅳ 2015 Ⅰ Ⅱ Ⅲ Ⅳ 2016 Ⅰ Ⅱ Ⅲ 2014 7 8 9 10 11 12 2015 1 2 3 4 5 6 7 8 9 10 11 12 2016 1 2 3 4 5 6 7 8 9 10p

109.7 109.9 110.7 111.2 111.5 111.6 111.7 112.0 112.0 112.0 112.2 110.4 110.7 111.0 111.1 111.1 111.3 111.5 111.3 111.8 111.5 111.6 111.7 111.5 111.5 112.1 112.1 112.0 111.9 111.8 111.9 112.2 112.1 112.0 111.9 112.0 112.2 112.3 112.9

1.5 1.5 1.7 1.7 1.6 1.5 0.9 0.7 0.4 0.4 0.4 1.7 1.7 1.9 1.8 1.7 1.6 1.5 1.6 1.9 1.7 1.5 1.5 1.0 0.7 1.0 0.9 0.8 0.5 0.3 0.5 0.4 0.5 0.4 0.2 0.4 0.6 0.2 0.7

92.9 96.8 91.5 95.8 90.0 94.9 89.8 93.8 88.6 92.1 87.0 98.7 86.8 89.0 95.9 94.0 97.6 92.8 81.0 96.3 95.8 91.8 97.1 94.7 86.0 88.8 95.4 91.8 94.2 89.0 81.2 95.6 90.1 92.8 93.3 92.2 83.8 84.9 91.1

-0.9 -1.1 0.8 -2.5 -3.1 -2.0 -1.9 -2.1 -1.6 -3.0 -3.1 4.3 -4.3 2.3 -3.8 -4.3 0.7 1.0 -7.5 -2.8 -3.9 -4.0 2.1 -4.1 -0.9 -0.2 -0.5 -2.3 -3.5 -4.1 0.2 -0.7 -5.9 1.1 -3.9 -2.6 -2.6 -4.4 -4.5

77.2 76.3 75.9 75.2 74.3 74.3 74.9 73.6 73.2 72.2 71.8 77.7 74.8 75.1 74.2 74.8 76.7 73.9 74.7 74.2 74.4 73.5 75.0 74.4 75.4 74.9 74.0 73.1 73.8 72.3 73.5 73.8 71.3 73.1 72.2 73.8 70.2 71.5 70.5

11p

112.9

0.8

94.0

2.4

73.5

* Manufacturing industry p: Preliminary Source: Statistics Korea

January 2017

4. Consumer goods sales index (constant prices, 2010=100)

Consumer goods sales index Durable goods Semi-durable goods

Total

Period

y-o-y change (%)

Nondurable goods

y-o-y change (%)

2013

107.9

0.7

116.7

0.3

106.1

2.1

104.7

0.4

2014

110.1

2.0

122.7

5.1

105.3

-0.8

106.4

1.6

2015

114.4

3.9

135.2

10.2

104.0

-1.2

109.1

2.5

2014 2015 2016

Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ 2014 7 8 9 10 11 12 2015 1 2 3 4 5 6 7 8 9 10 11 12 2016 1 2 3 4 5 6 7 8 9 10p

106.5 109.0 109.3 115.7 108.8 112.7 113.2 122.8 113.8 119.7 117.3 110.6 107.7 109.7 111.7 114.7 120.6 107.9 105.2 113.2 111.8 116.6 109.6 113.1 110.3 116.1 121.3 121.8 125.4 112.9 108.6 119.8 116.5 122.9 119.6 118.1 117.0 116.8 124.3

2.6 1.2 2.0 2.4 2.2 3.4 3.6 6.1 4.6 6.2 3.6 1.3 3.1 1.8 0.4 1.3 5.2 -2.4 5.8 3.2 5.4 3.6 1.1 2.3 2.4 5.8 8.6 6.2 4.0 4.6 3.2 5.8 4.2 5.4 9.1 4.4 6.1 0.6 2.5

117.4 121.2 123.4 128.6 126.7 132.0 132.9 149.3 133.8 146.7 134.6 131.3 118.5 120.5 118.9 128.8 138.1 128.2 117.3 134.6 129.2 130.3 136.4 140.2 129.2 129.4 143.2 146.8 158.0 125.3 125.0 151.1 139.3 146.0 154.9 141.2 137.2 125.5 144.2

5.7 2.3 5.5 6.9 7.9 8.9 7.7 16.1 5.6 11.1 1.3 2.9 1.9 12.6 -1.4 7.2 15.0 10.1 0.2 13.4 12.8 7.1 7.1 6.8 9.0 7.4 20.4 14.0 14.4 -2.3 6.6 12.3 7.8 12.0 13.6 0.7 6.2 -3.0 0.7

100.1 104.6 96.0 120.5 97.9 103.2 92.7 122.3 100.5 107.9 96.2 95.5 91.3 101.3 115.7 120.5 125.2 97.6 91.5 104.6 107.1 114.3 88.3 92.0 88.1 98.0 122.2 124.5 120.3 101.6 93.1 106.7 109.4 115.1 99.1 98.8 89.6 100.1 124.3

-2.0 -2.5 1.2 0.5 -2.2 -1.3 -3.4 1.5 2.7 4.6 3.8 -2.6 5.4 1.2 1.6 -2.7 2.5 -2.9 -0.3 -3.1 1.4 2.5 -8.8 -3.7 -3.5 -3.3 5.6 3.3 -3.9 4.1 1.7 2.0 2.1 0.7 12.2 7.4 1.7 2.1 1.7

104.3 105.2 108.6 107.5 105.1 107.7 112.9 110.7 110.2 112.2 118.4 107.5 109.9 108.4 106.5 105.6 110.3 102.9 105.5 106.9 105.7 111.1 106.3 109.7 111.2 117.8 110.6 109.0 112.4 112.0 107.8 110.9 109.0 115.5 112.0 115.7 119.5 120.1 115.0

3.1 2.2 0.6 0.8 0.8 2.4 4.0 3.0 4.9 4.2 4.9 1.8 2.9 -2.9 0.7 0.3 1.4 -8.2 11.6 0.7 3.2 2.2 1.7 2.0 1.2 8.7 3.8 3.2 1.9 8.8 2.2 3.7 3.1 4.0 5.4 5.5 7.5 2.0 4.0

11p

125.7

3.2

149.4

1.8

125.8

1.0

114.5

5.0

p: Preliminary Source: Statistics Korea

Economic Bulletin

Statistical Appendices

5. Machinery orders received and facility investment index Period

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

2013

23,078

6.6

2,580

2014

26,487

14.8

2015

25,545

-3.6

2014 2015 2016

6,627 6,106 7,673 6,081 6,430 7,017 5,596 6,502 6,486 6,810 5,665 1,772 4,083 1,818 1,936 2,308 1,837 2,313 1,853 2,264 2,766 2,096 2,155 2,004 1,684 1,908 2,048 1,965 2,489 1,758 2,275 2,453 1,987 2,135 2,688 2,011 1,656 1,998 1,810 2,300

18.6 4.1 49.2 -6.2 -3.0 14.9 -27.1 6.9 0.9 -2.9 1.2 -8.4 151.8 14.5 -25.7 10.2 3.0 31.9 0.5 -25.3 21.6 14.5 7.7 13.1 -58.8 5.0 5.8 -14.9 35.5 -24.0 22.7 8.4 -28.2 1.9 24.7 0.4 -1.7 4.7 -11.4 17.1

Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ 2014 7 8 9 10 11 12 2015 1 2 3 4 5 6 7 8 9 10 11 12 2016 1 2 3 4 5 6 7 8 9 10p 11p p: Preliminary Source: Statistics Korea

y-o-y change (%)

20.5

20,497

5,012

94.2

1,921

-61.7

1,221 305 2,708 778 405 493 399 624 635 569 470 89 2,541 79 211 428 139 116 141 148 127 197 169 133 160 106 98 228 298 69 255 312 189 169 211 52 84 334 59 140

184.6 -45.0 418.5 -27.6 -66.9 61.7 -85.3 -19.8 56.9 15.4 17.7 -75.3 2,653.2 10.6 -73.2 162.6 12.5 32.0 17.6 -85.4 30.7 69.4 84.7 50.2 -93.7 34.8 -53.6 -46.7 113.6 -40.7 80.7 110.8 49.3 -14.2 24.6 -61.3 -47.3 214.8 -39.7 -38.5

Facility investment index (2010=100)

y-o-y change (%)

5.1

99.8

-0.8

21,475

4.8

105.0

5.2

23,624

10.0

111.6

6.3

5,406 5,801 4,965 5,303 6,025 6,524 5,197 5,878 5,851 6,241 5,195 1,683 1,543 1,739 1,725 1,881 1,698 2,197 1,712 2,116 2,640 1,899 1,986 1,870 1,524 1,802 1,950 1,737 2,191 1,689 2,020 2,142 1,798 1,966 2,477 1,960 1,572 1,644 1,751 2,160

4.8 9.2 7.4 -1.9 11.4 12.5 4.7 10.8 -2.9 -4.3 0.0 6.8 0.9 14.7 -5.0 -2.6 2.3 31.9 -0.7 4.9 21.2 10.8 4.0 11.2 -1.2 3.6 13.1 -7.6 29.1 -23.1 18.0 1.2 -31.9 3.5 24.8 4.8 3.1 -7.7 -10.2 24.4

98.6 107.9 100.7 112.9 107.7 112.8 111.0 114.7 100.1 113.7 105.6 111.3 90.6 100.2 100.1 112.6 126.1 103.1 98.5 121.4 113.5 107.2 117.7 119.4 105.9 107.8 112.6 107.2 124.4 96.9 90.7 112.7 110.3 110.4 120.5 104.5 109.2 103.2 107.9 118.1

7.5 6.7 1.4 5.5 9.2 4.5 10.2 1.6 -7.1 0.8 -4.9 2.7 -9.9 12.8 -8.7 10.5 15.3 14.0 3.0 10.6 2.6 -0.9 12.3 7.3 16.9 7.6 12.5 -4.8 -1.3 -6.0 -7.9 -7.2 -2.8 3.0 2.4 -12.5 3.1 -4.3 -4.2 10.2

January 2017

6. Value of construction completed and domestic construction orders received (current value, billion won)

Period

Total

Value of construction completed Public

y-o-y change (%)

Domestic construction orders received Total Public Private

Private

y-o-y change (%)

2013

98,089

10.6

34,459

1.9

59,714

18.0

2014

98,491

0.4

32,015

-7.1

62,413

2015

99,967

1.5

30,694

-4.1

65,114

2014 Ⅰ Ⅱ Ⅲ Ⅳ 2015 Ⅰ Ⅱ Ⅲ Ⅳ 2016 Ⅰ Ⅱ Ⅲ 2014 7 8 9 10 11 12 2015 1 2 3 4 5 6 7 8 9 10 11 12 2016 1 2 3 4 5 6 7 8 9 10p 11p

21,678 26,178 23,604 27,031 21,315 25,034 24,816 28,803 24,191 30,026 29,532 7,916 7,722 7,966 8,241 8,350 10,439 6,824 6,690 7,801 7,709 7,767 9,558 7,895 7,939 8,982 8,503 8,709 11,590 7,359 7,273 9,559 8,983 9,460 11,583 9,567 9,944 10,021 10,258 11,275

7.4 1.6 -0.5 -4.9 -1.7 -4.4 5.1 6.6 13.5 19.9 19.0 0.8 0.7 -2.8 -4.6 -8.1 -2.5 -3.3 0.4 -1.9 -9.1 -5.2 0.5 -0.3 2.8 12.8 3.2 4.3 11.0 7.8 8.7 22.5 16.5 21.8 21.2 21.2 25.3 11.6 20.6 29.5

7,148 8,708 7,245 8,913 6,593 8,189 7,175 8,738 6,711 8,136 7,014 2,430 2,324 2,492 2,533 2,675 3,705 2,037 2,092 2,463 2,466 2,324 3,399 2,284 2,206 2,685 2,268 2,441 4,029 2,042 1,970 2,699 2,316 2,350 3,469 2,239 2,331 2,445 2,333 2,806

2.1 -6.5 -10.1 -11.6 -7.8 -6.0 -1.0 -2.0 1.8 -0.7 -2.2 -7.8 -9.0 -13.2 -14.2 -14.2 -7.7 -12.0 -5.2 -6.2 -10.0 -10.1 0.5 -6.0 -5.1 7.8 -10.4 -8.7 8.7 0.2 -5.9 9.6 -6.1 1.1 2.1 -2.0 5.7 -9.0 2.9 14.9

13,677 16,513 15,359 16,864 13,973 15,862 16,651 18,628 16,209 20,505 21,286 5,149 5,113 5,098 5,370 5,300 6,194 4,570 4,379 5,024 4,939 5,131 5,792 5,350 5,437 5,864 5,865 5,877 6,886 5,003 4,948 6,257 6,269 6,703 7,533 6,968 7,241 7,077 7,532 8,050

p: Preliminary Source: Statistics Korea

y-o-y change (%)

77,885

-12.9

24,736

-5.1

4.5

90,606

16.3

26,427

4.3

134,338

48.3

28,778

10.2 6.8 4.2 -1.4 2.2 -3.9 8.4 10.5 16.0 29.3 27.8 4.9 5.9 1.9 0.5 -5.9 1.1 2.6 3.4 0.7 -9.5 -3.5 1.0 3.9 6.3 15.0 9.2 10.9 11.2 9.5 13.0 24.6 26.9 30.6 30.1 30.2 33.2 20.7 28.4 37.0

16,144 23,621 24,236 26,604 25,417 35,210 36,440 37,270 28,927 32,992 37,431 7,033 8,789 8,414 8,000 6,399 12,205 7,515 5,435 12,467 9,055 12,639 13,516 8,685 8,659 19,097 10,378 13,226 13,666 7,225 10,014 11,687 10,828 9,657 12,507 12,550 13,415 11,466 14,827 11,940

16.8 26.4 44.0 -6.8 57.4 49.1 50.4 40.1 13.8 -6.3 2.7 21.8 87.4 32.1 3.2 -20.8 -3.9 35.5 -3.5 151.0 20.7 85.3 45.3 23.5 -1.5 127.0 29.7 106.7 12.0 -3.9 84.3 -6.3 19.6 -23.6 -7.5 44.5 54.9 -40.0 42.9 -9.7

5,924 6,563 5,181 8,758 4,594 9,069 4,900 10,215 7,812 5,570 8,565 1,531 1,617 2,033 1,413 1,850 5,495 1,318 1,135 2,140 2,585 2,458 4,026 1,791 1,921 1,188 1,803 3,296 5,115 2,691 2,347 2,774 1,190 2,126 2,254 3,170 3,466 1,929 3,210 2,830

y-o-y change (%)

50,947

-14.8

6.8

62,115

21.9

8.9

102,449

65.0

38.0 22.2 3.9 -13.2 -22.5 38.2 -5.4 16.6 70.1 -38.6 74.8 2.5 9.7 0.6 -7.0 -30.5 -6.9 -35.6 -49.4 31.3 36.5 24.0 49.9 17.0 18.8 -41.6 27.7 78.2 -6.9 104.1 106.8 29.6 -54.0 -13.5 -44.0 77.0 80.4 62.4 78.0 -14.1

9,759 16,714 18,384 17,258 20,537 25,623 30,814 25,525 20,406 26,678 26,974 5,364 6,961 6,060 6,406 4,432 6,420 6,084 4,218 10,235 6,414 10,078 9,131 6,817 6,433 17,564 8,574 9,369 7,582 4,260 7,586 8,559 9,271 7,412 9,995 8,433 9,446 9,096 11,541 9,038

6.3 32.3 60.7 -2.4 110.4 53.3 67.6 47.9 -0.6 4.1 -12.5 29.3 119.4 47.0 4.3 -14.8 1.3 83.9 30.3 218.6 14.6 111.3 43.8 27.1 -7.6 189.8 33.8 111.4 18.1 -30.0 79.8 -16.4 44.5 -26.5 9.5 23.7 46.8 -48.2 34.6 -3.5

Economic Bulletin

Statistical Appendices

7. Composite indices of business cycle indicators, CSI and BSI Period 2013 7 8 9 10 11 12 2014 1 2 3 4 5 6 7 8 9 10 11 12 2015 1 2 3 4 5 6 7 8 9 10 11 12 2016 1 2 3 4 5 6 7 8 9p 10p 11p 12 2017 1

indicator indicator Leading index Cyclical index Cyclical of leading index Coincident of coincident (2010=100) (2010=100) (2010=100) index (2010=100) 110.7 111.2 111.3 111.8 112.3 112.9 113.3 113.6 113.9 114.3 114.6 114.9 115.1 115.7 116.3 116.8 117.1 117.6 118.2 118.7 119.2 119.7 120.4 120.7 121.1 121.6 122.2 122.7 123.0 123.2 123.4 123.5 123.9 124.5 124.9 125.3 125.8 126.5 127.3 127.9 128.3 -

99.9 100.1 99.9 100.0 100.1 100.3 100.4 100.3 100.1 100.2 100.0 100.0 99.8 100.0 100.2 100.2 100.1 100.2 100.4 100.4 100.6 100.6 100.8 100.7 100.7 100.8 100.9 101.0 100.9 100.8 100.5 100.3 100.3 100.4 100.4 100.3 100.4 100.7 100.9 101.0 101.0 -

110.1 110.4 110.5 110.9 111.2 111.7 112.2 112.5 112.9 113.0 113.1 113.3 113.8 114.2 114.3 114.3 114.4 115.1 115.5 116.0 116.1 116.4 116.3 116.4 116.8 117.6 118.4 119.0 119.1 119.4 119.3 119.4 119.5 119.8 120.4 121.0 121.8 122.4 122.4 122.3 122.7 -

99.7 99.7 99.5 99.7 99.7 99.9 100.1 100.1 100.2 100.1 99.9 99.9 100.0 100.2 100.0 99.7 99.7 100.1 100.1 100.3 100.1 100.1 99.8 99.6 99.7 100.1 100.6 100.9 100.7 100.6 100.3 100.2 100.0 100.0 100.3 100.5 100.9 101.2 100.9 100.6 100.6 -

CSI1 103.7 104.0 100.8 105.5 106.9 106.2 108.6 107.7 108.2 108.1 104.3 106.8 104.5 106.2 107.0 104.5 102.6 101.0 102.3 103.0 101.3 103.8 105.1 98.4 100.3 101.5 102.6 104.9 105.5 102.4 100.0 97.9 100.0 101.5 99.2 98.8 100.9 101.8 101.7 101.9 95.8 94.2 -

1. Consumer Sentiment Index 2. Business Survey Index (manufacturing, seasonally adjusted) p: Preliminary Source: Statistics Korea, Bank of Korea

BOK BSI2 Results

Prospects

73 76 78 83 80 78 78 79 78 76 75 75 75 75 77 73 76 76 75 74 74 74 69 65 71 71 70 73 69 69 67 63 65 66 68 69 73 74 73 72 73 75 -

79 75 79 81 85 81 81 83 82 81 80 79 79 77 76 78 77 78 79 75 80 76 76 74 68 72 73 71 72 71 70 67 65 66 69 72 72 73 77 76 74 74 73

January 2017

8. Prices (2015=100)

Period

2013 2014 2015 2016 2013 7 8 9 10 11 12 2014 1 2 3 4 5 6 7 8 9 10 11 12 2015 1 2 3 4 5 6 7 8 9 10 11 12 2016 1 2 3 4 5 6 7 8 9 10 11 12

All items

Consumer prices Commodities Services

y-o-y change (%)

98.0 99.3 100.0 101.0 97.9 98.3 98.5 98.2 98.2 98.3 98.8 99.1 99.3 99.3 99.5 99.4 99.5 99.7 99.6 99.3 99.1 99.1 99.8 99.7 99.7 99.8 100.0 100.1 100.2 100.4 100.1 100.1 99.9 100.2 100.4 100.8 100.6 100.8 100.8 100.8 100.6 100.9 101.5 101.6 101.5 101.6

1.3 1.3 0.7 1.0 1.6 1.5 1.0 0.9 1.2 1.1 1.1 1.0 1.3 1.5 1.7 1.7 1.6 1.4 1.1 1.1 1.0 0.8 1.0 0.6 0.5 0.4 0.6 0.7 0.7 0.7 0.5 0.8 0.8 1.1 0.6 1.1 0.8 1.0 0.8 0.7 0.4 0.5 1.3 1.5 1.5 1.3

y-o-y change (%)

99.8 100.7 100.0 99.4 99.4 100.0 100.6 99.8 99.8 99.9 100.6 101.0 101.1 100.9 101.1 100.8 100.8 101.0 101.0 100.3 99.9 99.8 100.6 100.4 100.1 99.8 100.3 100.4 100.0 100.1 99.8 99.6 99.3 99.7 99.2 99.9 99.1 99.3 99.1 99.1 98.2 98.5 100.0 100.3 100.1 100.1

Source: Statistics Korea, Bank of Korea

1.0 0.9 -0.7 -0.6 1.7 1.5 0.4 0.3 1.0 0.9 0.9 0.9 1.1 1.3 1.7 1.7 1.4 1.0 0.5 0.5 0.2 0.0 0.1 -0.6 -1.0 -1.1 -0.8 -0.4 -0.8 -0.9 -1.3 -0.7 -0.7 -0.2 -1.4 -0.5 -1.0 -0.5 -1.2 -1.3 -1.8 -1.6 0.3 0.8 0.8 0.4

y-o-y change (%)

96.7 98.2 100.0 102.3 96.8 96.9 96.8 96.9 96.9 97.0 97.4 97.6 97.8 98.1 98.2 98.2 98.5 98.6 98.5 98.5 98.5 98.5 99.1 99.2 99.4 99.7 99.8 99.8 100.4 100.6 100.4 100.6 100.5 100.7 101.3 101.6 101.8 101.9 102.2 102.2 102.6 102.8 102.6 102.7 102.6 102.8

1.5 1.6 1.8 2.3 1.5 1.5 1.5 1.4 1.3 1.3 1.3 1.1 1.5 1.6 1.6 1.6 1.7 1.7 1.7 1.7 1.6 1.6 1.7 1.7 1.7 1.6 1.6 1.6 2.0 2.0 1.9 2.1 2.0 2.2 2.3 2.5 2.4 2.3 2.4 2.4 2.1 2.2 2.2 2.1 2.1 2.0

Producer prices (2010=100) All items Commodities

Core y-o-y change (%)

95.9 97.8 100.0 101.6 96.0 96.0 96.3 96.4 96.6 96.7 96.9 97.2 97.4 97.6 97.9 98.0 98.2 98.2 98.2 98.2 98.2 98.3 99.4 99.5 99.6 99.6 99.9 99.9 100.2 100.3 100.2 100.4 100.4 100.6 101.0 101.2 101.3 101.5 101.7 101.8 101.5 101.6 101.7 102.1 102.0 101.9

1.6 2.0 2.2 1.6 1.7 1.5 1.7 1.8 2.0 1.9 1.7 1.7 2.1 2.3 2.2 2.1 2.2 2.4 1.9 1.8 1.6 1.6 2.6 2.4 2.2 2.1 2.1 2.0 2.1 2.1 2.0 2.2 2.2 2.3 1.6 1.7 1.7 1.9 1.8 1.8 1.3 1.3 1.5 1.8 1.6 1.2

y-o-y change (%)

105.7 105.2 101.0 99.1 105.5 105.8 105.7 105.3 105.1 105.4 105.6 105.8 105.7 105.6 105.5 105.6 105.7 105.6 105.2 104.5 104.1 103.1 101.9 101.9 101.8 101.8 101.8 101.8 101.4 100.8 100.3 99.7 99.3 99.0 98.5 98.5 98.4 98.7 98.8 99.0 98.9 99.0 99.2 99.5 100.0 100.8

-1.6 -0.5 -4.0 -1.8 -1.0 -1.3 -1.8 -1.4 -0.9 -0.4 -0.3 -0.9 -0.5 -0.3 0.0 0.1 0.2 -0.2 -0.5 -0.8 -0.9 -2.1 -3.6 -3.6 -3.7 -3.6 -3.5 -3.6 -4.0 -4.5 -4.6 -4.6 -4.7 -4.0 -3.3 -3.4 -3.3 -3.0 -3.0 -2.7 -2.5 -1.8 -1.1 -0.1 0.7 1.8

y-o-y change (%)

106.2 104.8 98.0 94.6 105.9 106.3 106.1 105.5 105.2 105.5 105.7 105.9 105.7 105.4 105.3 105.4 105.4 105.1 104.7 103.6 103.1 101.7 99.7 99.7 99.5 99.3 99.3 99.3 98.6 97.7 97.0 96.0 95.3 95.0 94.0 93.9 93.8 94.1 94.3 94.6 94.4 94.4 94.7 95.0 95.7 96.9

-2.5 -1.4 -6.4 -3.4 -1.6 -2.1 -2.8 -2.2 -1.5 -0.9 -1.0 -1.7 -1.3 -1.1 -0.7 -0.6 -0.5 -1.1 -1.4 -1.8 -2.0 -3.6 -5.8 -5.8 -5.9 -5.8 -5.7 -5.8 -6.4 -7.1 -7.3 -7.4 -7.6 -6.6 -5.7 -5.9 -5.7 -5.2 -5.1 -4.7 -4.3 -3.4 -2.4 -1.0 0.4 2.1

Economic Bulletin

Statistical Appendices

9. Employment (I) Period

Economically active persons (thousands)

y-o-y change

Economically inactive persons (thousands)

2013

25,873

373

16,223

141

61.5

59.5

3.1

2014

26,536

663

15,977

-246

62.4

60.2

3.5

2015

26,913

377

16,105

128

62.6

60.3

3.6

2016 2015 Ⅰ Ⅱ Ⅲ Ⅳ 2016 Ⅰ Ⅱ Ⅲ Ⅳ

27,247

335

16,169

62.8

60.4

3.7

26,356 27,140 27,166 26,989 26,708 27,415 27,539 27,327 26,891 26,775 26,766 26,809 26,786 26,270 26,094 26,398 26,577 26,954 27,211 27,255 27,303 27,064 27,129 27,137 27,082 26,747 26,433 26,734 26,955 27,228 27,455 27,563 27,578 27,524 27,516 27,499 27,446 27,035

412 373 355 367 351 275 374 338 589 701 580 541 556 534 444 401 390 239 449 430 413 290 363 328 296 476 339 337 379 274 244 308 274 460 387 362 364 288

16,469 15,835 15,921 16,194 16,568 15,970 15,926 16,210 15,637 15,797 15,845 15,837 15,902 16,458 16,681 16,429 16,298 15,971 15,764 15,770 15,751 16,022 15,990 16,012 16,099 16,469 16,806 16,540 16,358 16,120 15,932 15,859 15,864 15,941 15,972 16,013 16,091 16,526

72 150 162 128 99 135 4 17 -206 -298 -163 -113 -113 -78 27 83 106 272 73 104 114 225 146 176 197 11 125 111 61 149 169 89 113 -81 -18 1 -8 57

61.5 63.2 63.0 62.5 61.7 63.2 63.4 62.8 63.2 62.9 62.8 62.9 62.7 61.5 61.0 61.6 62.0 62.8 63.3 63.3 63.4 62.8 62.9 62.9 62.7 61.9 61.1 61.8 62.2 62.8 63.3 63.5 63.5 63.3 63.3 63.2 63.0 62.1

59.0 60.7 60.9 60.5 59.1 60.8 61.1 60.7 61.1 60.8 60.8 60.9 60.8 59.4 58.7 58.8 59.5 60.3 30.9 60.9 61.1 60.7 60.9 60.9 60.8 59.9 58.8 58.7 59.6 60.3 61.0 61.2 61.2 61.0 61.0 61.1 61.1 60.1

4.1 3.8 3.4 3.1 4.3 3.8 3.6 3.2 3.4 3.3 3.2 3.2 3.1 3.4 3.8 4.6 4.0 3.9 3.8 3.9 3.7 3.4 3.2 3.1 3.1 3.2 3.7 4.9 4.3 3.9 3.7 3.6 3.5 3.6 3.6 3.4 3.1 3.2

2014 7 8 9 10 11 12 2015 1 2 3 4 5 6 7 8 9 10 11 12 2016 1 2 3 4 5 6 7 8 9 10 11 12

Source: Statistics Korea

y-o-y change

Labor force rate participation rate Employment (%) (%)

Unemployment rate (%)

January 2017

10. Employment (II) Employed persons (thousands) Period

All industry

y-o-y change

Manufacturing

2013

25,066

386

2014

25,599

533

2015

25,936

2016 2015 Ⅰ Ⅱ Ⅲ Ⅳ 2016 Ⅰ Ⅱ Ⅲ Ⅳ 2014 7 8 9 10 11 12 2015 1 2 3 4 5 6 7 8 9 10 11 12 2016 1 2 3 4 5 6 7 8 9 10 11 12 Source: Statistics Korea

y-o-y change

SOC & services

y-o-y change

4,184

19,347

313

4,330

146

19,805

458

337

4,486

156

20,092

287

26,235

299

4,481

-5

20,449

357

25,267 26,098 26,237 26,143 25,554 26,387 26,554 26,446 25,979 25,885 25,917 25,951 25,968 25,384 25,106 25,195 25,501 25,900 26,189 26,205 26,305 26,141 26,264 26,298 26,253 25,879 25,445 25,418 25,800 26,153 26,450 26,559 26,603 26,528 26,531 26,577 26,592 26,168

354 308 310 376 287 289 318 302 505 594 451 406 438 422 347 376 338 216 379 329 326 256 347 348 285 495 339 223 300 252 261 354 298 387 267 278 339 289

4,418 4,466 4,511 4,550 4,544 4,503 4,439 4,439 4,358 4,335 4,347 4,361 4,355 4,406 4,421 4,433 4,400 4,455 4,464 4,478 4,528 4,491 4,512 4,552 4,545 4,552 4,566 4,541 4,525 4,503 4,514 4,493 4,464 4,418 4,436 4,437 4,443 4,437

139 147 164 176 126 38 -71 -110 191 219 173 142 102 142 141 159 116 167 140 133 170 156 166 191 190 146 145 108 124 48 50 15 -65 -74 -76 -115 -102 -115

19,747 20,114 20,217 20,289 19,956 20,446 20,683 20,710 20,003 19,940 19,949 19,973 20,098 19,896 19,693 19,716 19,832 20,004 20,179 20,161 20,250 20,153 20,249 20,248 20,353 20,266 19,955 19,885 20,028 20,263 20,483 20,593 20,719 20,677 20,653 20,682 20,759 20,689

307 290 253 300 209 332 466 421 426 502 409 415 428 381 317 309 294 185 364 319 247 213 300 275 256 370 262 169 196 259 304 433 469 524 404 434 406 424

Economic Bulletin

Statistical Appendices

11. Balance of payments (I) (US $ million)

Period 2013 2014 2015 2014 Ⅰ Ⅱ Ⅲ Ⅳ 2015 Ⅰ Ⅱ Ⅲ Ⅳ 2016p Ⅰ Ⅱ Ⅲ 2014 1 2 3 4 5 6 7 8 9 10 11 12 2015 1 2 3 4 5 6 7 8 9 10 11 12 2016p 1 2 3 4 5 6 7 8 9 10 11 p: Preliminary Source: Bank of Korea

Current account

Goods

81,148.2 84,373.0 105,939.6 13,149.4 24,107.9 20,664.9 26,450.8 23,222.0 26,951.4 28,246.3 27,519.9 25,349.7 26,337.2 21,509.8 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 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 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 8,989.2

82,781.0 88,885.4 122,269.2 17,595.3 25,175.7 20,977.4 25,137.0 24,516.1 33,667.7 31,319.2 32,766.2 28,954.6 33,534.3 28,268.1 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 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 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 10,522.0

Exports

Imports

618,156.9 613,020.6 542,811.2 151,471.8 158,004.3 150,820.7 152,723.8 131,427.3 142,086.3 133,550.1 135,817.5 118,316.3 128,243.4 127,558.4 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 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 37,340.3 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 46,459.8

535,375.9 524,135.2 420,612.0 133,876.5 132,828.6 129,843.3 127,586.8 106,911.2 108,418.6 102,230.9 103,051.3 89,361.7 94,709.1 99,290.3 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 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 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 35,937.8

Services

Primary income

Secondary income

-6,499.2 -3,678.5 -14,916.8 -2,889.0 50.8 -459.6 -380.7 -4,111.1 -3,037.3 -3,736.1 -4,032.3 -3,917.8 -3,910.7 -5,660.0 -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 -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 -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 -1,737.0

9,055.7 4,150.8 3,572.4 -736.9 556.0 1,398.7 2,933.0 4,067.5 -2,479.2 1,515.2 468.9 1,197.7 -2,108.9 1,262.5 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 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 1,232.2 831.1 -856.6 -4,057.1 858.5 1,089.7 -46.5 531.9 777.1 860.9 435.4

-4,189.3 -4,984.7 -4,985.2 -820.0 -1,674.6 -1,251.6 -1,238.5 -1,250.5 -1,199.8 -852.0 -1,682.9 -884.8 -1,177.5 -2,360.8 -335.6 -164.1 -320.3 -898.3 -388.8 -387.5 -389.8 -518.3 -343.5 -262.4 -115.3 -860.8 -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 -398.0 20.7 -507.5 -503.5 -149.8 -524.2 -623.2 -943.4 -794.2 -377.3 -231.2

January 2017

12. Balance of payments (II) (US $ million)

Period 2013 2014 2015 2014 Ⅰ Ⅱ Ⅲ Ⅳ 2015 Ⅰ Ⅱ Ⅲ Ⅳ 2016p Ⅰ Ⅱ Ⅲ 2014 1 2 3 4 5 6 7 8 9 10 11 12 2015 1 2 3 4 5 6 7 8 9 10 11 12 2016p 1 2 3 4 5 6 7 8 9 10 11

Financial account* 80,104.6 89,334.0 106,299.2 15,120.7 24,650.2 21,230.4 28,332.7 22,974.3 25,857.1 29,806.1 27,661.7 28,794.3 19,126.9 27,255.5 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 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 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 8,898.8

Direct investment

Portfolio investment

Financial derivatives

Other investment

Reserve assets

15,593.2 18,765.6 19,656.3 2,367.1 7,990.4 2,952.8 5,455.3 4,328.8 6,256.2 3,695.1 5,376.2 5,266.0 1,893.5 2,296.8 -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 1,998.3 687.3 933.9 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 13.8 1,645.1 3,607.1 -121.2 698.1 1,316.6 845.5 431.6 1,019.7 1,358.1 657.7

9,344.5 30,608.9 49,529.8 12,614.4 4,291.2 4,292.1 9,411.2 7,743.0 7,111.1 15,559.7 19,116.0 16,887.9 13,426.6 15,949.6 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 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 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 6,968.2

-4,410.3 -3,826.9 1,791.3 -1,004.6 -1,983.9 -1,649.7 811.3 -726.3 -759.5 4,731.1 -1,454.0 2,724.0 -1,185.3 -3,798.1 -177.3 -264.6 -562.7 -890.2 -546.6 -547.1 -597.0 -621.0 -431.7 426.1 91.7 293.5 -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 1,227.8 756.6 739.6 -1,043.5 -463.7 321.9 -471.8 -1,292.6 -2,033.7 -740.5 100.4

43,281.1 25,900.6 23,269.2 -5,879.9 3,182.9 9,803.2 18,794.4 4,518.7 5,947.4 10,106.9 2,696.2 5,202.7 4,043.6 5,850.2 -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 -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 2,097.8 480.2 2,502.0 2,220.5 -2,266.4 3,909.7 2,400.3 7,556.3 -1,419.0 -287.1 -3,662.3 1,689.6

16,296.1 17,885.8 12,052.6 7,023.7 11,169.6 5,832.0 -6,139.5 7,110.1 7,301.9 -4,286.7 1,927.3 -1,286.3 948.5 6,957.0 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 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 -1,915.1 382.3 -1,565.7 -102.9 1,316.6 401.5 -769.6 1,966.8 3,089.0 1,901.2 220.3 -517.1

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

Capital account -27.0 -8.9 -60.2 -2.1 -4.3 3.6 -6.1 -22.0 -25.6 -26.2 13.6 -11.6 -7.0 11.0 -3.0 3.5 -2.6 2.6 -4.3 -2.6 -6.3 11.2 -1.3 -1.1 -0.8 -4.2 -13.0 -1.7 -7.3 -8.7 -1.6 -15.3 -29.9 1.5 2.2 -5.4 18.8 0.2 -6.1 -2.3 -3.2 -5.0 1.0 -3.0 2.7 17.1 -8.8 -9.6 -34.9

Economic Bulletin

Statistical Appendices

13. Financial indicators (period average)

Yields (%) Period 2013 1 2 3 4 5 6 7 8 9 10 11 12 2014 1 2 3 4 5 6 7 8 9 10 11 12 2015 1 2 3 4 5 6 7 8 9 10 11 12 2016 1 2 3 4 5 6 7 8 9 10 11 12 Source: Bank of Korea

Call rate (1 day)

CDs (91 days)

Treasury bonds (3 years)

2.8 2.8 2.7 2.8 2.6 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.3 2.2 2.1 2.0 2.0 2.0 2.0 1.8 1.7 1.7 1.6 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.3 1.2 1.2 1.2 1.2 1.2 1.2

2.9 2.8 2.8 2.8 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.5 2.4 2.2 2.1 2.1 2.1 2.1 2.0 1.8 1.8 1.7 1.7 1.6 1.6 1.6 1.6 1.7 1.7 1.6 1.6 1.6 1.6 1.4 1.4 1.4 1.3 1.4 1.4 1.5

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 2.9 2.9 2.9 2.8 2.7 2.6 2.5 2.4 2.2 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 1.6 1.5 1.5 1.5 1.5 1.3 1.2 1.2 1.3 1.4 1.6 1.7

Stock Treasury bonds (5 years)

Corporate bonds (3 years, AA-)

KOSPI (end-period)

2.9 2.8 2.7 2.6 2.7 3.1 3.2 3.3 3.2 3.1 3.2 3.3 3.3 3.2 3.2 3.2 3.1 3.0 2.8 2.8 2.7 2.4 2.3 2.3 2.2 2.1 2.0 1.9 2.1 2.0 2.1 2.0 1.9 1.8 2.0 1.9 1.8 1.6 1.6 1.6 1.6 1.4 1.3 1.3 1.4 1.4 1.7 1.9

3.2 3.1 3.0 2.9 3.0 3.2 3.4 3.3 3.3 3.3 3.4 3.4 3.3 3.3 3.3 3.3 3.3 3.2 3.0 3.0 2.8 2.6 2.5 2.5 2.4 2.3 2.1 2.0 2.1 2.0 2.0 2.0 2.0 2.0 2.1 2.1 2.1 2.0 2.0 1.9 1.9 1.8 1.7 1.7 1.7 1.8 2.0 2.2

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 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 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 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 2,026.46

January 2017

14. Monetary indicators (period average, billion won)

Reserve money Period

y-o-y change (%)

M2 y-o-y change (%)

Lf y-o-y change (%)

y-o-y change (%)

2013

91,379.4

11.3

484,062.9

9.5

1,885,781.3

4.8

2,543,232.5

6.9

2014

103,331.5

13.1

536,733.4

10.9

2,009,576.3

6.6

2,721,502.2

7.0

2015 2013 7 8 9 10 11 12 2014 1 2 3 4 5 6 7 8 9 10 11 12 2015 1 2 3 4 5 6 7 8 9 10 11 12 2016 1 2 3 4 5 6 7 8 9 10 11

120,691.4 90,643.7 93,729.6 95,130.6 93,640.4 93,609.9 96,988.5 98,541.6 100,547.9 100,624.0 98,898.5 101,791.4 101,412.3 101,164.2 107,682.4 105,354.1 107,117.5 106,667.9 110,175.6 113,304.2 116,502.4 115,974.9 115,132.7 117,726.3 118,688.2 122,041.0 121,854.4 126,572.2 125,616.2 126,767.1 128,117.5 131,279.3 134,913.0 132,957.9 135,038.9 135,971.3 135,758.4 135,906.7 139,073.9 142,079.6 141,103.5 141,757.2

16.8 11.1 13.8 14.7 10.1 12.8 13.7 14.8 13.2 12.4 12.7 13.5 11.2 11.6 14.9 10.7 14.4 13.9 13.6 15.0 15.9 15.3 16.4 15.7 17.0 20.6 13.2 20.1 17.3 18.8 16.3 15.9 15.8 14.6 17.3 15.5 14.4 11.4 14.1 12.3 12.3 11.8

636,639.0 488,982.7 481,416.9 490,518.7 491,947.9 499,242.7 509,617.9 515,742.5 518,475.5 520,299.0 518,809.3 523,069.9 532,041.2 534,028.8 538,640.3 548,550.8 551,416.0 562,006.2 577,721.1 579,964.2 592,737.4 600,719.9 610,803.3 621,985.5 630,546.3 645,975.4 653,105.9 665,691.1 669,737.7 677,629.2 690,772.4 699,767.3 708,014.0 713,861.2 720,818.5 722,544.4 730,637.8 735,172.2 738,120.9 751,408.5 753,367.3 762,639.7

18.6 10.7 9.5 11.5 10.7 12.1 11.3 10.9 9.8 10.1 9.1 10.0 9.3 9.2 11.9 11.8 12.1 12.6 13.4 12.5 14.3 15.5 17.7 18.9 18.5 21.0 21.3 21.4 21.5 20.6 19.6 20.7 19.4 18.8 18.0 16.2 15.9 13.8 13.0 12.9 12.5 12.5

2,182,911.9 1,890,728.6 1,888,658.4 1,903,187.1 1,908,557.6 1,923,339.2 1,932,026.4 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 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 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 2,406,393.5

8.6 4.6 3.9 4.6 4.7 5.1 5.3 5.2 5.2 5.5 5.5 6.0 6.1 6.5 7.6 7.1 7.5 8.3 8.1 8.0 8.0 8.3 9.0 9.3 9.0 9.3 9.2 9.4 8.8 7.7 7.5 8.1 8.3 7.8 7.0 6.7 7.1 6.9 7.2 6.9 7.1 7.3

2,986,699.4 2,549,443.5 2,557,336.3 2,577,546.7 2,587,071.4 2,605,866.7 2,619,029.5 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 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 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 3,328,489.7

9.7 6.5 6.3 6.7 6.7 6.8 6.6 6.7 6.4 6.4 6.2 6.6 6.7 6.9 7.3 7.1 7.3 8.1 8.2 8.4 8.6 9.3 10.0 10.3 10.5 10.6 10.4 10.5 10.2 9.2 8.9 8.9 8.9 8.6 8.0 7.7 7.9 7.6 8.0 7.8 8.1 8.2

Source: Bank of Korea

Economic Bulletin

Statistical Appendices

15. Exchange rates (end-period)

US $/\ Period 2013 2014 2015 2016 2013 1 2 3 4 5 6 2014 1 2 3 4 5 6 7 8 9 10 11 12 2015 1 2 3 4 5 6 7 8 9 10 11 12 2016 1 2 3 4 5 6 7 8 9 10 11 12 Source: Bank of Korea

100ďżĽ/\

Won

y-o-y change (%)

1,055.3 1,099.2 1,172.0 1,208.5 1,113.6 1,110.9 1,075.6 1,061.4 1,062.1 1,055.3 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 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 1,208.4 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 1,208.5

-1.5 4.2 6.6 3.1 -2.0 -2.1 -3.8 -3.0 -2.1 -1.5 -0.3 -1.6 -3.9 -6.9 -9.5 -11.8 -8.0 -8.8 -2.3 -0.7 3.7 4.2 1.1 3.0 3.4 3.5 8.5 10.8 13.9 16.1 13.7 8.4 4.5 6.6 10.8 12.4 4.4 7.1 7.5 3.6 -3.5 -4.9 -8.2 0.3 1.6 3.1

Euro/\

Won

y-o-y change (%)

Won

y-o-y change (%)

1,004.7 920.1 972.0 1,036.8 1,135.4 1,129.2 1,098.7 1,077.5 1,038.2 1,004.7 1,043.7 1,044.8 1,038.7 1,005.3 1,004.2 1,000.0 995.7 977.6 960.2 964.1 933.9 920.1 921.4 920.7 920.3 897.2 894.6 917.2 939.3 970.1 996.8 944.1 936.7 972.0 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 1,036.8

-19.5 -8.4 5.6 6.7 -21.9 -21.8 -23.8 -21.6 -21.4 -19.5 -12.2 -11.2 -12.0 -11.2 -10.1 -14.3 -12.3 -13.4 -12.6 -10.5 -10.0 -8.4 -11.7 -11.9 -11.4 -10.8 -10.9 -8.3 -5.7 -0.8 3.8 -2.1 0.3 5.6 10.4 17.9 11.5 17.9 19.9 23.4 14.3 12.0 8.7 15.9 10.9 6.7

1,456.3 1,336.5 1,280.5 1,267.6 1,476.7 1,470.6 1,451.3 1,456.6 1,444.8 1,456.3 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 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 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 1,267.6

2.8 -8.2 -4.2 -1.0 6.0 3.6 0.5 2.7 2.7 2.8 0.3 2.7 3.1 -1.8 -5.6 -7.6 -7.1 -9.1 -8.1 -8.8 -5.0 -8.2 -16.1 -15.9 -18.6 -16.7 -12.6 -8.9 -7.0 -1.4 0.8 -5.6 -11.2 -4.2 7.0 9.6 9.2 9.4 9.2 2.8 -2.3 -5.3 -8.5 0.2 2.1 -1.0

Useful websites

Ministry of Strategy and Finance

http://english.mosf.go.kr Korea Development Institute

http://www.kdi.re.kr/kdi_eng 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

January 2017

ECONOMIC BULLETIN (Republic of Korea)

For free subscriptions and enquiries, please contact: International Media Relations Division Ministry of Strategy and Finance Government Complex, 477 Galmae-ro Sejong, 30109 Republic of Korea Tel. +82 2 731 1530 Fax. +82 2 731 1540 E-mail. fppr@mosf.go.kr Website. http://english.mosf.go.kr Economic Information and Education Center Korea Development Institute 263 Namsejong-ro Sejong, 30149 Republic of Korea Tel. +82 44 550 4645 Fax. +82 44 550 4941 E-mail. jiyounlee@kdi.re.kr Website. http://eb.kdi.re.kr