201702 by KOCIS

Republic of Korea

Economic Bulletin

VOL.39 NO.2 FEBRUARY 2017 eb.kdi.re.kr ISSN 2287-7266

The Green Book: Current Economic Trends Economic News Briefing Government to Promote R&D in Services Korea Renews Currency Swap Deals with Australia and Malaysia Government Decides on 2018-2020 Emissions Trading Scheme Korea Grows 0.4% in Q4 2016

Statistical Appendices

A traditional Korean gate handle

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

Economic News Briefing Government to promote R&D in services 2017 EDCF focuses on expanding cooperation to African, Latin American and CIS countries Government posts 8.0 tn won surplus in 2016 External debt amounts to US $380.9 bn in 2016 Korean FDI up 18.7% in 2016 Korea renews currency swap deals with Australia and Malaysia Government decides on 2018-2020 emissions trading scheme Korea grows 0.4% in Q4 2016 (advanced)

49 Statistical Appendices

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

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

February 2017

OVERVIEW

The Korean economy has seen investment continue to improve as exports are recovering, but consumption and consumer confidence remain weak, keeping the economy from rebounding. The economy added 289,000 jobs year-on-year in December 2016, despite a high base effect from a year ago (up 495,000), backed by strong services and construction. Consumer prices rose at a faster rate in January 2017, compared with the previous month (up 1.3% → up 2.0%, y-o-y), due to rising agricultural and livestock product prices as well as a low base effect from a year ago when energy prices fell. Mining and manufacturing production fell in December (up 3.6% → down 0.5%, m-o-m) due to a high base effect from the previous month. Service output rose 0.3 percent month-on-month in December backed by strong publishing & communications services. Retail sales continued to fall in December (down 0.1% → down 1.2%, m-o-m) due to weak sales of clothing and gasoline amid unusually warm weather and rising oil prices as well as due to weak consumer confidence. Facility investment rose for the third consecutive month in December, increasing 3.4 percent month-on-month, backed by the strong IT sector, particularly semiconductors. Construction investment fell 1.8 percent due to a high base effect from the previous month. In December, the cyclical indicator of the coincident composite index rose 0.2 points from the previous month, and the cyclical indicator of the leading composite index improved 0.1 points. Exports continued to improve in January, rising 11.2 percent year-on-year backed by strong semiconductors and petroleum products, despite fewer days worked (down 1 day, y-o-y). Stock prices rose in January on strong corporate earnings, and the dollar-won exchange rate fell due to dollar depreciation amid worries over the new US administration’s protectionist policies. Both house price growth (up 0.07% → up 0.02%, m-o-m) and Jeonse (lump-sum deposits with no monthly payments) price growth (up 0.08% → up 0.03%, m-o-m) slowed in January due to increased supplies as well as seasonal slowdown.

Economic Bulletin

The Green Book

Although exports have been improving, domestic demand can be hampered by internal and external uncertainties, such as poor consumer confidence and changes in US policies. The government will closely monitor developments in the global economy as well as in the Korean economy, and will continue to work on creating jobs and boosting the real economy as it will successfully implement budgets frontloaded to the first quarter, promote consumption and investment, and help increase exports.

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 concerns over the spread of protectionism and a hard Brexit.

US The US economy grew 1.9 percent (advanced estimates, annualized q-o-q) in the fourth quarter of 2016 as domestic demand improved. Retail sales and employment indicators continued to improve. Industrial production (up 0.8%, m-o-m) rose in December as utilities production (up 6.6%), such as gas and electricity, increased due to a cold spell. The ISM Manufacturing Index continued to rise. ISM Manufacturing Index (base=50)

49.4 (Aug 2016) → 51.5 (Sep) → 51.9 (Oct) → 53.2 (Nov) → 54.5 (Dec) → 56.0 (Jan 2017)

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

February 2017

Retail sales in December (up 0.6%, m-o-m) increased backed by auto sales (up 2.4%) and gasoline sales (up 2.0%). However, consumer confidence fell slightly in January 2016. University of Michigan Consumer Sentiment Index (1966=100)

94.7 (May 2016) → 93.5 (Jun) → 90.0 (Jul) → 89.8 (Aug) → 91.2 (Sep) → 87.2 (Oct) → 93.8 (Nov) → 98.2 (Dec) → 98.1 (Jan 2017)

Conference Board Consumer Confidence Index (1985=100)

92.4 (May 2016) → 97.4 (Jun) → 96.7 (Jul) → 101.8 (Aug) → 103.5 (Sep) → 100.8 (Oct) → 109.4 (Nov) → 113.3 (Dec) → 111.8 (Jan 2017)

Existing home sales fell 2.8 percent month-on-month in December to an annualized pace of 5,490,000 due to low housing inventory (down 6.3%, y-o-y). New home sales decreased 10.4 percent. Existing home sales (m-o-m, %)

5.7 (Mar 2017) → 1.3 (Apr) → 1.5 (May) → 1.1 (Jun) → -3.4 (Jul) → -1.5 (Aug) → 3.6 (Sep) → 1.5 (Oct) → 1.4 (Nov) → -2.8 (Dec)

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

2.3 (Mar 2017) → 6.1 (Apr) → -0.7 (May) → -1.4 (Jun) → 11.5 (Jul) → -10.1 (Aug) → 2.1 (Sep) → -1.4 (Oct) → 5.2 (Nov) → -10.4 (Dec)

The unemployment rate rose slightly from the previous month to 4.8 percent in January due to rising labor force participation rates. However, the job market continued to improve as nonfarm payrolls added 227,000 new jobs. Labor force participation rate (%)

62.8 (Aug 2016) → 62.9 (Sep) → 62.8 (Oct) → 62.6 (Nov) → 62.7 (Dec) → 62.9 (Jan 2017)

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

176 (Aug 2016) → 208 (Sep) → 135 (Oct) → 204 (Nov) → 156 (Dec) → 227 (Jan 2017) (Percentage change from previous period)

2014

2015

2016

Annual Annual Q4 Annual Q1

Oct Nov Dec

Real GDP

2.4

2.6

0.9

1.6

0.8

1.4

3.5

1.9

- Personal consumption expenditures

2.9

3.2

2.3

2.7

1.6

4.3

3.0

2.5

- Nonresidential fixed investment

6.0

2.1

-3.3

-0.4

-3.4

1.0

1.4

2.4

- Residential fixed investment

3.5

11.7 11.5

4.9

7.8 -7.7 -4.1 10.2

Industrial production

2.9

0.3

-0.8

-1.0

-0.4 -0.2

0.5 -0.2 0.2 -0.7 0.8

Retail sales

4.1

2.3

0.2

3.0

0.0

1.5

0.9 1.6

0.6

0.1

Existing home sales

-3.1

6.3

-3.8

4.0

1.9

3.8 -2.1 3.3

1.5

1.4 -2.8

Unemployment rate2

6.2

5.3

5.0

4.8

4.9

4.9 4.7

4.9

4.6

4.7

Consumer prices (y-o-y)

1.6

0.1

0.4

1.3

1.1

1.1 1.8

1.6

1.7

2.1

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

0.6

Economic Bulletin

The Green Book

US nonfarm payroll growth and unemployment rate (%)

(thousands) 800

600 10 400 200

0 6 -200 -400

-600 2 -800

US nonfarm payroll growth (m-o-m, left) Unemployment rate (right)

-1,000

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Source: US Department of Labor

China China’s economy grew 6.8 percent in the fourth quarter of 2016, exceeding the market expectations of 6.7 percent, backed by strong domestic demand. The annual growth of 6.7 percent met the government’s 2016 target of 6.5 percent to 7.0 percent. In the fourth quarter, retail sales, such as auto sales (up 14.4%) and ‘cultural & office appliances’ sales (up 15.3%), improved backed by Singles’ Day sales, and private investment went up by 3.2 percent. (Percentage change from same period in previous year)

2014

2015

Annual Annual

2016

Annual

Oct

Nov

Dec

Real GDP

7.3

6.9

6.8

6.7

6.8

Industrial production

8.3

6.1

5.8

6.0

5.8

6.1

6.2

6.1

6.2

6.0

Fixed asset investment (accumulated, nominal)

15.7

10.0

8.1

10.7

9.0

8.2

8.1

8.3

8.1

Retail sales (nominal)

12.0

10.7

11.1

10.4

10.2 10.2

10.5

10.6

10.0

10.8

10.9

6.0

-3.0

-5.3

-7.7

-13.0

-6.9

-5.2

-7.9

-1.5

-6.2

Exports Consumer prices Producer prices1

-6.4

2.0

1.4

1.5

2.0

2.1

1.7

2.2

2.1

2.3

2.1

-1.9

-5.2

-5.9

-1.4

-4.8

-2.9

-0.8

3.3

1.2

3.3

5.5

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

February 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 exports increased for the first time in 15 months, helped by the weak yen, and industrial production continued to rise backed by the strong auto industry. Core consumer prices (excluding fresh food, y-o-y, %)

-0.4 (Jun 2016) → -0.5 (Jul) → -0.5 (Aug) → -0.5 (Sep) → -0.4 (Oct) → -0.4 (Nov) → -0.2 (Dec)

Japan’s GDP growth and industrial production (%)

(%)

25 20

15 10

5 0

0 -5

-2

-10 -15

-4

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

-20 -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

Annual

Oct

Nov

Dec

Real GDP

0.3

1.2

-0.4

0.7

0.5

0.3

Industrial production

2.1

-1.2

0.0

-0.5

-1.0

0.2

1.4

2.0

0.0

1.5

0.5

Retail sales (nominal)

1.7

-0.4

-0.2

-0.9

-2.3

0.1

1.0

1.9

2.5

0.2

-1.7

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

4.8

3.4

-4.6

-7.4

-7.9

-9.5 -10.2

-1.9 -10.3

-0.4

5.4

2.7

0.8

0.3

-0.1

0.0

-0.4

0.3

0.5

0.3

-0.5

0.1

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

Eurozone The eurozone economy grew 0.5 percent quarter-on-quarter in the fourth quarter of 2016, backed by an improvement in private consumption. However, there are uncertainties arising from a hard Brexit and early elections in Italy. Manufacturing PMI

51.7 (Aug 2016) → 52.6 (Sep) → 53.5 (Oct) → 53.7 (Nov) → 54.9 (Dec) → 55.2 (Jan 2017)

Economic Sentiment Indicator (ESI)

103.5 (Aug 2016) → 104.9 (Sep) → 106.4 (Oct) → 106.6 (Nov) → 107.8 (Dec) → 107.9 (Jan 2017)

Eurozone’s GDP growth and industrial production (%)

(%) 6

4 1 2 0

-2 -1 -4 -6

-2

-8 -3 -10

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

-4

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

-12

Source: Eurostat (Percentage change from previous period)

2014

2015

Annual Annual

Real GDP Industrial production Retail sales Exports (y-o-y) Consumer prices (y-o-y) Sources: Eurostat, Bloomberg

2016

Annual

Oct

Nov

Dec

1.2

2.0

0.5

1.7

0.5

0.3

0.5

0.9

1.5

0.1

0.8

-0.2

0.4

0.1

1.5

-0.3

1.4

2.7

0.2

1.9

0.6

0.1

0.4

0.8

1.4

-0.4

2.2

5.4

3.6

-0.9

0.0

-0.3

-4.5

6.0

0.4

0.0

0.2

0.0

-0.1

0.3

0.5

0.6

1.1

February 2017

2. Private consumption Private consumption (advanced estimates of GDP) in the fourth quarter of 2016 rose 0.2 percent compared to the previous quarter and 1.6 percent compared to a year ago. (Percentage change from previous period)

2014

2015

Annual Annual¹

Private consumption²

2016

Q1¹

Q2¹

Q3¹

Q4¹ Annual¹

Q1¹

Q2¹

Q3¹

Q4¹

1.7

2.2

0.8

-0.1

1.1

1.4

2.4

-0.2

1.0

0.5

0.2

1.5

1.7

2.2

3.3

2.2

3.3

2.7

1.6

(y-o-y)

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

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

Private consumption (y-o-y) -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 fell 1.2 percent month-on-month in December as sales of semidurable goods (down 4.2%), such as clothing, and nondurable goods (down 1.2%), such as food, declined. Sales of durable goods (up 1.0%) increased, backed by strong auto sales (up 6.3%). Year-on-year, the index rose 1.6 percent. (Percentage change from previous period)

2015

2016

Annual

Q4 Annual¹ Q1

Q4¹

Oct

Nov¹

Dec¹

Retail sales

1.3

3.1

-1.0

2.8

-1.7

2.5

5.5

-0.1

-1.2

(y-o-y)

3.9

3.6

6.1

4.1

4.6

6.2

3.6

2.4

2.5

3.2

1.6

- Durable goods

10.2

2.0

8.2

4.3

-6.3

7.6

-7.1

6.8 10.7

-1.7

1.0

· Automobiles

21.3

3.5

11.2

2.7

-11.8 15.3 -19.9 18.9 12.8

3.1

6.3

- Semi-durable goods

-1.2

1.8

2.8

2.9

-2.0

2.2

-0.7

1.1

3.9

-0.6

-4.2

- Nondurable goods4

2.5

0.7

0.3

4.7

2.6

0.4

1.3

0.6

3.2

1.0

-1.2

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

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 Semi-durable goods

-10 -20 -30

Nondurable goods

2008.1

2009.1

2010.1

2011.1

Source: Statistics Korea (industrial activity trends)

The outlook for January retail sales is mixed: Consumer sentiment and domestic sales of gasoline fell, but sales at department stores and large discount stores increased along with credit card use. 2016 Jun

Jul

Aug

2017

Sep

Oct

Nov

Dec

Jan 17.1

Credit card use (y-o-y, %)

12.9

9.1

15.0

9.1

12.4

11.7

9.8

Department store sales (y-o-y, %)

13.5

11.2

4.8

4.2

5.6

-1.6

3.8

4.3

2.9

5.8

0.2

-0.4

4.8

-3.9

0.7

13.4 -7.3

Large discount store sales (y-o-y, %) Domestic sales of gasoline (y-o-y, %)

4.6

2.3

9.7

6.2

-2.9

6.6

8.6

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

24.1

-10.5

-11.1

-10.9

-11.5

1.4

-8.6

1.1

Consumer Sentiment Index

98.8

101.0

101.9

101.8

102.0

95.7

94.1

93.3

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

February 2017

3. Facility investment Facility investment (advanced estimates of GDP) rose 6.3 percent quarter-onquarter and 1.5 percent year-on-year in the fourth quarter of 2016. (Percentage change from previous period)

2014

2015

Annual Annual¹ Q1¹

Facility investment²

6.0

(y-o-y)

5.3

0.5

2016

Q2¹

Q3¹

Q4¹ Annual¹ Q1¹

Q2¹

Q3¹

Q4¹

0.8

1.8

0.5

-2.4

-7.4

2.8

0.2

6.3

5.8

5.1

6.7

3.9

-4.5

-2.7

-4.2

1.5

- 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 2008.Q1

Facility investment (q-o-q)

2009.Q1

2010.Q1

2011.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

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

Economic Bulletin

The Green Book

The facility investment index in December rose 3.4 percent month-on-month as machinery investment increased. Transportation equipment investment stayed unchanged. The index increased 10.0 percent year-on-year. (Percentage change from previous period)

2015

2014 Annual Annual

Facility investment index (y-o-y)

5.2

2016

Annual

Q4¹

6.3

5.2

-1.2

-1.3

-8.7

6.4

-1.5

8.6

Nov¹ Dec¹ 5.9

3.4

10.2

1.6

-7.1

0.8

-4.9

5.6

10.4

10.0

- Machinery

3.9

2.9

0.7

-2.6

-2.2

-5.3

-0.3

9.0

7.1

7.0

5.1

- Transportation equipment

8.8

14.9

16.5

1.0

0.7

-14.3 20.5 -21.1 12.4

2.0

0.0

1. Preliminary

Source: Statistics Korea

The facility investment outlook is mixed: Domestic machinery orders and machinery imports have been strong along with growing exports, but manufacturing operation ratios are low and there are uncertainties at home and abroad. BSI in the manufacturing sector (base=100, Bank of Korea)

71 (Aug 2016) → 74 (Sep) → 75 (Oct) → 72 (Nov) → 72 (Dec) → 71 (Jan 2017) → 76 (Feb)

Leading indicators of facility investment (trillion won)

(y-o-y, %)

9 40 8 7

6 0

5 4

-20 3

Machinery orders (left) 2

Machinery imports (right)

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

-40

2016.Q1

Sources: Statistics Korea (machinery orders), Korea International Trade Association (machinery imports) (Percentage change from same period in previous year)

2015 Annual Q3

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

-3.6 -27.1 -

-10.0

2016 Q4 Annual Q1

6.9

2.6

0.9 -2.9

9.2

-6.3

Q4¹ Nov¹ Dec¹

1.2 11.5 17.3 26.0

4.6 -5.4 20.1 22.4 32.9

- Public

-61.7 -85.3 -19.8 36.7

56.9 15.4 17.7 52.7 -38.5 152.7

- Private

10.0

-2.9 -4.3

Machinery imports

0.3

4.7 10.8

-0.2

0.0

2.3 -6.4

-2.4 -13.0 -6.7 -2.2

7.1 24.6 88.7 5.9 14.4

7.7

Average manufacturing operation ratio (%) 74.3

74.9 73.6 72.4

73.2 72.2 71.8 72.5 73.8 73.0

Facility investment adjustment pressure²

-1.2 -0.6

-0.7

-1.8

0.5

0.8

0.2

2.1

4.6

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

3.4

February 2017

4. Construction investment Construction investment (advanced estimates of GDP) in the fourth quarter of 2016 fell 1.7 percent quarter-on-quarter and rose 11.8 percent year-on-year. (Percentage change from previous period)

2014 Construction investment²

2016

2015

Annual Annual¹ Q1¹

Q2¹

Q3¹

Q4¹ Annual¹ Q1¹

Q2¹

Q3¹

Q4¹

1.1

3.9

5.5

1.8

3.3

-2.4

11.0

6.8

3.1

3.5

-1.7

0.9

1.0

5.6

7.5

9.6

10.8

11.4

11.8

(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

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

Source: Bank of Korea (national accounts)

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

Economic Bulletin

The Green Book

The value of construction completed (constant) in December fell 1.8 percent month-on-month as both building construction and civil engineering works decreased. The index rose 12.8 percent year-on-year. (Percentage change from previous period)

2015

2014

Annual Annual Q3

Construction completed (constant)

-0.7

2016 Q4 Annual Q1

Q4 Nov¹ Dec¹

2.3

6.4

0.0

2.3

4.5

1.1 6.3 -1.8

17.5

(y-o-y)

5.9

8.0

- Building construction

7.8

6.0

9.5

2.6

25.2

-12.3

-3.8

0.9 -5.0

- Civil engineering works 1. Preliminary

9.4

14.8 19.2 17.1 18.3 25.9 12.8 9.0

3.1

6.5

6.6 6.7 -0.5

3.3 10.2

0.7

0.5 -10.7 5.6 -5.1

Source: Statistics Korea

The construction investment outlook is mixed as there are both positive and negative factors: Construction orders received increased, but building permits and apartment presales declined. Apartment presales (thousands, monthly average, Real Estate 114)

48 (Jul 2016) → 30 (Aug) → 18 (Sep) → 78 (Oct) → 40 (Nov) → 54 (Dec) → 14 (Jan 2017)

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

Annual

Construction orders (current value) 48.2

50.4

40.1

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

21.3 -26.5

8.0

13.8

-6.3

2.7 22.9

-8.7

38.3

17.7 -10.2 36.4 -18.0 -25.8

1.1

- Building construction

50.1

42.5

37.8

- Civil engineering works

42.9

83.6

45.9 -10.6

16.0 -32.8

Building permits²

34.3

57.0

40.4

19.7

1. Preliminary

2. Floor area

14.4 -5.7

13.1

2.6

Nov¹ Dec¹

4.2 38.3

5.6

82.0

-2.3 -13.7 -47.7 -22.7

5.3 -24.8 -11.1

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

-3.3 -14.6

February 2017

5. Exports and Imports Exports (preliminary) increased 11.2 percent year-on-year to US $40.33 billion in January. Exports rebounded in January, going up more than 10 percent for the first time in four years and rising for three months in a row for the first time in 33 months, backed by strong major export items. By item, petroleum products and semiconductors surged, while vessels fell. By region, shipments to the ASEAN countries, Japan and China increased, while exports to the US and Latin America declined. Export growth by item (y-o-y, %)

67.4 (petroleum products), 41.6 (semiconductors), 34.9 (petrochemicals), 8.5 (steel), -4.7 (automobiles), -17.0 (mobile phones), -17.5 (vessels)

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

19.2 (ASEAN countries), 19.2 (Japan), 13.5 (China), 13.4 (EU), 8.8 (Middle East), -1.8 (US), -6.1 (Latin America)

Average daily exports, an indicator adjusted to days worked, increased month-onmonth to US $1.88 billion. Average daily exports (US $ billion)

1.61 (Jan 2016) → 1.97 (Jun) → 1.74 (Jul) → 1.67 (Aug) → 1.95 (Sep) → 1.87 (Oct) → 1.89 (Nov) → 1.84 (Dec) → 1.88 (Jan 2017)

Exports by item (y-o-y, %) 140 120 100 80 60 40 20

Export growth rate

0 -20

Semiconductors

-40

Automobiles

-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

2017.1

Economic Bulletin

The Green Book

(US $ billion)

Exports

2014

2015

Annual

Jan

Jan¹

572.66

526.76

495.47

115.19

126.03

121.86

132.38

36.26

40.33

2.3

-8.0

-5.9

-13.6

-6.7

-5.0

1.8

-19.6

11.2

2.11

1.93

1.81

1.73

1.88

1.78

1.86

1.61

1.88

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

2016

2017

1. Preliminary Source: Korea Customs Service

Imports (preliminary) in January rose 18.6 percent year-on-year to US $37.13 billion. Commodities and capital goods imports continued to increase, and consumer goods imports turned positive. Import growth by category (y-o-y, %, Dec 2016 → Jan 2017) 6.6 → 29.2 (commodities), 15.8 → 11.1 (capital goods), -4.0 → 5.0 (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

2017.1

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

(US $ billion)

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

2015

2016

2017

Annual

Jan

Jan¹

525.51

436.50

406.06

93.81

99.29

102.44

110.52

31.33

37.13

1.9

-16.9

-7.0

-16.1

-10.1

-5.1

4.0

-20.3

18.6

1.94

1.60

1.49

1.41

1.48

1.50

1.56

1.39

1.73

1. Preliminary Source: Korea Customs Service

February 2017

The trade balance (preliminary) posted a surplus of US $3.2 billion in January, staying in the black for the 60th consecutive month. Surpluses decreased compared with the previous month. (US $ billion)

Trade balance

2014

2015

Annual

2016 Q3

Jan

2017 Janยน

47.15

90.26

89.41

21.38

26.74

19.42

21.86

4.95

3.20

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

2017.1

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

6. Mining and manufacturing production Mining and manufacturing production fell 0.5 percent month-on-month in December, despite strong refined petroleum and semiconductors, as electronic parts and processed metals decreased. Compared to the same period of the previous year, the index increased 4.3 percent. Compared to the previous month, production of refined petroleum (up 6.0%), semiconductors (up 2.3%) and primary metals (up 2.8%) rose, while electronic parts (down 5.5%), processed metals (down 5.5%) and other transportation equipment (down 6.2%) fell. Compared to a year ago, production of semiconductors (up 17.6%), mechanical equipment (up 13.0%) and automobiles (up 5.8%) rose, while other transportation equipment (down 10.3%), processed metals (down 6.4%) and audio-visual equipment (down 25.0%) 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 1.2 percentage points month-onmonth to 113.7 percent as inventories fell 0.4 percent and shipments rose 0.6 percent. Inventories of chemical products (up 3.2%), refined petroleum (up 3.8%) and precision medical optics (up 7.0%) rose, while processed metals (down 6.2%), semiconductors (down 3.1%) and communications equipment (down 21.8%) declined. Shipments of semiconductors (up 9.1%), refined petroleum (up 3.1%) and automobiles (up 1.7%) rose, while processed metals (down 4.4%), other transportation equipment (down 6.1%) and electronic parts (down 2.2%) fell.

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

Shipment growth

-10 -12

Inventory growth

2008.1

2009.1

2010.1

2011.1

Source: Statistics Korea (industrial activity trends)

2012.1

2013.1

2014.1

2015.1

2016.1

February 2017

The average operation ratio of the manufacturing sector fell 0.8 percentage points month-on-month to 73.0 percent.

Average manufacturing operation ratio (%) 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)

(Percentage change from previous period)

2015 (q-o-q, m-o-m) Mining and manufacturing2 (y-o-y) Production (q-o-q, m-o-m)

Manufacturing

2016

Annual

Dec Annualยน

-0.9

0.6

-0.6

-0.1

-2.1

Q4ยน

Octยน Novยน Decยน

0.6

-1.2

3.6

-0.5

1.0

2.7

-1.2

5.3

4.3

-0.7

0.7

0.8

-0.9

3.7

-0.4

(y-o-y)

-0.6

0.1

-1.8

1.0

2.9

-1.2

5.4

4.4

Shipment

-0.2

-0.5

1.0

0.6

0.9

-1.2

2.9

0.6

- Domestic consumption

0.4

-0.4

0.8

1.5

2.3

-1.5

4.8

0.3

- Exports

-1.0

-0.6

1.2

-0.2

-0.9

-0.8

0.5

1.1

Inventory 3

2.9

-5.3

-3.3

-4.0

-1.2

0.5

-1.2

-0.4

Average operation ratio (%)

74.3

73.6

73.8

72.4

72.5

70.8

73.8

73.0

Production capacity (y-o-y)

1.2

0.7

0.5

0.8

0.6

0.8

1.0

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

Mining and manufacturing for January is likely to improve given strong exports, but uncertainties surrounding US policies under the new administration and weak confidence may interfere.

Economic Bulletin

The Green Book

7. Service sector activity Service output in December increased 0.3 percent month-on-month and 1.7 percent year-on-year. Publishing & communications services (up 5.6%) and education services (up 0.4%) increased month-on-month, while financial & insurance services (down 0.8%) and membership organizations & personal services (down 2.2%) decreased.

Service sector activity (%) 10 8 6 4 2 0 -2

Service sector activity (y-o-y) -4

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

2014

2016

2015

Annual Annual Q1

Q4 Q4ยน Novยน Decยน

100.0

2.3

2.8

0.5 0.5 1.2 1.2 -0.3 0.3 0.3

21.6

0.4

1.7

0.7 0.3 0.9 2.2 1.2 -0.7 -0.1

- Transportation services

8.5

1.7

1.4 -0.2 -2.6 1.9 1.9 -0.4 1.7 0.5

- Hotels & restaurants

7.2

1.5

-2.0 -0.6 -3.4 2.1 0.8 -3.4 -2.2 -0.5

- Wholesale & retail

- Publishing & communications services

8.4

2.0

-0.6 -1.9 -0.5 3.0 1.1 0.2 -3.6 5.6

14.7

5.2

9.0

- Real estate & renting

5.3

6.2

8.1 -0.8 6.4 0.9 -0.5 -1.5 -0.3 -2.4

- Professional, scientific & technical services

5.6

2.3

-0.4 -2.9 -0.1 1.6 0.3 1.2 4.1 3.4

- Business services

3.3

2.5

3.9

2.3 0.4 -1.0 3.4 0.4 0.9 0.2

- Education services

- Financial & insurance services

1.6 3.8 1.2 -0.4 -1.2 2.5 -0.8

10.9

1.3

0.9

1.0 -0.6 0.0 1.0 0.7 -0.1 0.4

- Healthcare & social welfare services

7.5

6.3

6.2

1.9 0.0 1.4 3.1 1.6 0.7 0.0

- Entertainment, cultural & sports services

2.9

-1.0

1.1

1.5 -2.5 1.0 3.2 -1.6 1.6 0.5

- Membership organizations & personal services

3.6

-0.5

0.7 1.6 -0.2 -2.7 -2.0 0.1 -2.2

- Sewerage & waste management

0.6

1.0

7.2

0.6 3.6 4.6 -4.6 1.2 6.0 0.8

1. Preliminary Source: Statistics Korea

February 2017

Wholesale & retail (%) 12 10 8 6 4 2 0 -2 -4

Wholesale & retail (y-o-y)

-6 -8

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)

December 2016 service output by business (y-o-y, %) 16 Health & social welfare services

Wholesale & retail

Professional, scientific & technical services

Hotels & restaurants

-4

Sewerage & waste management

Financial & insurance services

Total index Transportation services

Publishing & communications services

Real estate & renting

Business services

Education services

Entertainment, cultural & sports services

Membership organizations & personal services

-8

Source: Statistics Korea (industrial activity trends)

The service output outlook for January 2017 is positive as sales at department stores and large discount stores increased and average daily stock transactions rose. Domestic sales of cars (y-o-y, %)

-10.5 (Jul 2016) → -11.1 (Aug) → -10.9 (Sep) → -11.5 (Oct) → 1.4 (Nov) → -8.6 (Dec) → 1.1 (Jan 2017)

Department store sales (y-o-y, %)

11.2 (Jul 2016) → 4.8 (Aug) → 4.2 (Sep) → 5.6 (Oct) → -1.6 (Nov) → 3.8 (Dec) → 4.3 (Jan 2017)

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

5.8 (Jul 2016) → 0.2 (Aug) → -0.4 (Sep) → 4.8 (Oct) → -3.9 (Nov) → 0.7 (Dec) → 13.4 (Jan 2017)

Average daily stock transactions (trillion won)

8.3 (Jul 2016) → 7.9 (Aug) → 8.1 (Sep) →7.5 (Oct) → 7.4 (Nov) → 6.5 (Dec) → 7.0 (Jan 2017)

Economic Bulletin

The Green Book

8. Employment The number of workers on payroll in December increased by 289,000 from a year earlier to 26,170,000, and the employment rate rose 0.4 percentage points to 66.3 percent. By industry, services continued to lead employment growth. By employment status, permanent workers continued to grow, while temporary and daily workers continued to fall. Self-employed workers increased for five consecutive months.

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 (%) 63 62 61 60 59 58 57 56

Original data 55

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

February 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 71.8

Services 7.0

Construction

7.0

7.1

7.0

6.9

7.0

7.1

7.0

6.8

6.9

7.0

7.1

7.3

7.4

17.6 17.6 17.3 17.2 17.0 17.1 17.2 17.2 17.2 17.4 17.3 17.6 17.9 17.9 17.5 17.2 17.1 16.9 16.8 16.7 16.7 16.7 16.7 17.0

Manufacturing Agriculture, forestry & fisheries

6.9

3.9

4.1

0 2015.1 2

4.9

5.5

5.9

5.8

5.7

5.6

5.1

4.0

3.8

4.8

5.2

5.4

5.5

5.3

5.4

5.1

3.9

12 2016.1 2

3.6

Source: Statistics Korea (employment trends)

2015

2014

Annual Annual Q3

Number of employed (millions)

2016

Q4 Dec Annual Q1

Q4 Nov Dec

25.60 25.94 26.24 26.14 25.88 26.24 25.55 26.39 26.55 26.45 26.59 26.17

Employment rate (%)

60.2 60.6 60.9 60.5 59.9 60.4 59.7 60.8 61.1 60.7 61.1 60.1

(Seasonally adjusted)

60.2 60.3 60.3 60.5 60.8 60.4 60.5 60.1 60.5 60.7 60.6 60.9

Employment growth (y-o-y, thousands)

533

337

310 376 495

299

287 289 318 302 339 289

(Excluding agriculture, forestry & fisheries) 601

444

419 482 522

358

341 375 399 315 308 313

- Manufacturing

146

156

164 176 146

- Services

424

250

- Agriculture, forestry & fisheries

-68 -107 -109 -106

- Construction

-5

126

-71 -110 -102 -115

-7

-28

234 309 363

338

216 360 430 350 311 330

-59

-54

-19

-27

-86

85 111

-81

-13

86 -24

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

3.8

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 21.1 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 19.3 19.2 19.4 19.5 19.7 19.7 19.8 19.6 19.4 19.3 19.4 19.1 19.4 19.3 19.5 19.7 19.5 19.7 19.8 20.2 19.8

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 50.1

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

2016

Dec Annual

Nov

Dec

Employment growth (y-o-y, thousands)

533

337

310

376

495

299

287

289

318

302

339

289

- Wage workers

548

487

521

565

609

317

427

392

283

164

186

148

路 Permanent workers

443

432

505

536

548

386

505

457

316

266

297

245

路 Temporary workers

140

129

113

120

路 Daily workers

-35

15 -100

-52

-88

-93 -185

-78

-15

-151

-211 -189 -114

-18

-140 -103

138

153

141

-89

-136 -135

-94

-96

-68

140

141

155

- Male

266

132

111

132

183

151

107

124

183

189

222

168

- Female

267

205

199

244

312

148

180

165

134

113

117

121

- Nonwage workers 路 Self-employed workers

45 -106 -147 -105

- 15 to 29

100

111

-19

- 30 to 39

-21

-38

-60

-36

-11

-36

-21

-23

-53

-45

-26

-48

- 40 to 49

-14

-9

-29

-41

-16

-63

-45

-42

- 50 to 59

239

149

145

135

142

114

113

- 60 and above

200

172

174

169

263

223

179

189

236

316

276

Source: Statistics Korea

The number of unemployed persons in December was down 1,000 from a year earlier to 867,000, and the unemployment rate stayed unchanged year-on-year at 3.2 percent. The unemployment rate declined or remained unchanged in all age groups except in the group of those in their 30s.

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

February 2017

2015

2014

Annual Annual Q3

Number of unemployed 937 (thousands)

2016

Dec Annual Q1

Nov

Dec

868 1,012 1,153 1,028 985

881

854

867

-19

976

929

845

137

-9

-1

- Male

-3

-24

- Female

-6

Unemployment rate (%)

3.5

3.6

3.4

3.1

3.2

(Seasonally adjusted)

3.5

3.6

3.4

3.5

- 15 to 29

9.0

9.2

8.4

8.0

8.4

9.8

- 30 to 39

3.1

3.0

2.9

2.7

3.2

- 40 to 49

2.2

2.3

2.0

2.2

2.1

2.4

- 50 to 59

2.2

2.4

1.9

2.3

2.6

- 60 and above

2.3

2.5

2.0

2.1

2.6

4.2

Unemployment growth (y-o-y, thousands)

-14

-1

-20

-10

-24

-9

3.7

4.3

3.8

3.6

3.2

3.1

3.2

3.7

3.8

3.7

3.8

3.6

3.4

11.3 10.3

9.3

8.4

8.2

8.4

3.2

3.1

3.0

2.1

1.9

1.7

1.9

2.3

2.0

1.8

2.2

2.3

2.1

2.0

2.1

Source: Statistics Korea

The economically inactive population in December increased 57,000 from a year earlier to 16,530,000, while the labor force participation rate rose 0.2 percentage points year-on-year to 62.1 percent. The number of those economically inactive due to education (down 77,000), childcare (down 18,000) and rest (down 40,000) decreased.

Labor force participation rate (%) 65 64 63 62 61 60 59

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

Economic Bulletin

The Green Book

2015

2014

Annual Annual Q3

Economically inactive population (millions)

2016

Dec Annual Q1

Nov

Dec

15.98 16.11 15.92 16.19 16.47 16.17 16.57 15.97 15.93 16.21 16.09 16.53

Labor force participation 62.4 rate (%)

62.6

63.0 62.5 61.9

62.8

61.7 63.2 63.4 62.8 63.0 62.1

(Seasonally adjusted)

62.4

62.6

62.5 62.6 62.9

62.8

62.8 62.4 62.9 62.9 62.9 63.1

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

128

162

-45

-19

- Childcare

-39

128

-63 -103

135

-8

-79 -115 -105

-63

-36

-37

-18

- Housework

-131

-29

-63

- Education

-81

-146 -112 -118

-99

-96 -108

-89 -116

-71

-40

-77

- Old age

109

103

171

165

117

161

109

113

- Rest

-92

141

123

136

141

-19

-76 -111

-40

Source: Statistics Korea

9. Financial markets 9.1 Stock market The KOSPI rose 2.0 percent in January from 2,026.46 points to 2067.57 points, while the KOSDAQ declined 2.4 percent from 631.44 points to 616.13 points. Despite worries over US economic policy uncertainty, the KOSPI rose in January due to IT companies’ strong fourth quarter earnings, high international oil prices and foreign investors’ net buying of Korean shares. Foreign net-buying of Korean shares (trillion won) -1.2 (Nov 2016) → 1.7 (Dec) → 1.8 (Jan 2017)

(Closing rate)

KOSPI Dec 2016 Jan 2017

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

KOSDAQ Change

Dec 2016 Jan 2017

2,026.46 2,067.57 +41.11 (+2.0%) 631.44

Change¹

616.13 -15.31 (-2.4%)

1,308.4

1,338.4 +30.0 (+2.3%)

201.5

198.1

-3.4 (-1.7%)

3.51

4.23 +0.72 (+20.5%)

2.98

2.81

-0.17 (-5.7%)

35.20

35.91 +0.71 (+2.0%)

10.06

1. Change from the end of the previous month in January 2017 Source: Korea Exchange

10.34 +0.28 (+2.8%)

February 2017

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

KOSPI

400 200

KOSDAQ

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Source: Korea Exchange

9.2 Exchange rate The dollar-won exchange rate fell 3.9 percent in January to 1,162.1 won as the dollar weakened due to concerns about rising protectionism in US policies. The won appreciated moderately against the yen as the BOJ announced it would increase government bond purchases.

Foreign exchange rates (month-end, ďżŚ) 1,800

1,600

1,400

1,200

1,000

800

Dollar-Won 600

100 Yen-Won

2008.1

2009.1

Source: Bank of Korea

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Economic Bulletin

The Green Book

(Closing rate)

2010

2011

2012

2013

2014

2015

2016

Dec

Jan

Changeยน

1,134.8

1,151.8

1,070.6

1,055.4

1,099.3

1,172.5

1,207.7

1,162.1

+3.9

100 Yen-Won 1,393.6

1,481.2

1,238.3

1,002.3

913.0

974.1

1,035.4

1,024.1

+1.1

Dollar-Won

2017

1. Appreciation from the end of the previous month in January 2017 (%); the exchange rate is based on the closing price at 3:00 p.m., local time. Source: Bank of Korea

Daily foreign exchange rate trend (โ ฉ) 1,300 1,250 1,200 1,150 1,100 1,050 1,000 950

Dollar-Won 900

100 Yen-Won

2016.2

2016.3

2016.4

2016.5

2016.6

2016.7

2016.8

2016.9

2016.10

2016.11

2016.12

2017.1

Source: Bank of Korea

9.3 Bond market Treasury bond yields fluctuated in January amid uncertainties regarding the global economy before edging up.

Interest rates (monthly average, %) 10 9 8 7 6 5 4 3

3-yr corporate bond yield 3-yr Treasury bond yield

2 1 0

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

2017.1

February 2017

(Closing rate, %)

2010

2011

2012

2013

2014

2015

Dec

2016

Call rate (1 day)

2.51

3.29

2.77

2.52

2.03

1.52

1.23

1.27

1.25

-2

CD (91 days)

2.80

3.55

2.89

2.66

2.13

1.67

1.52

1.49

-3

Nov

2017

Dec

Jan

Change¹

Treasury bonds (3 yrs)

3.38

3.34

2.82

2.86

2.10

1.66

1.71

1.64

1.68

Corporate bonds (3 yrs)

4.27

4.21

3.29

2.43

2.11

2.15

2.13

2.14

Treasury bonds (5 yrs)

4.08

3.46

2.97

3.23

2.28

1.81

1.90

1.80

1.85

1. Basis points, changes from the previous month in January 2017 Source: Bank of Korea

9.4 Money supply and money market M2 (monthly average) in November rose 7.3 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

Sep

Oct

Nov

Nov¹

M1²

11.8

6.6

3.8

9.5

10.9

18.6

12.9

12.5

766.5

8.7

4.2

5.2

4.8

6.6

8.6

6.9

7.1

7.3

2,405.1

Lf³

8.2

5.3

7.8

6.9

7.0

9.7

7.8

8.1

8.2

3,328.6

1. Balance at end November 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 9.0 trillion won month-on-month in December, due to seasonal increases in instant access deposits (up 23.5 trillion won), such as inflows of government’s funds for year-end spending and households’ year-end bonuses. Asset management company (AMC) deposits decreased 16.0 trillion won, as money market funds (MMFs) fell 12.9 trillion won and fixed income funds fell 3.5 trillion won. (Change from the end of the previous period, trillion won)

2010

2011

2012

2013

2014

2016

2015 Sep

Oct

Nov

Dec

Dec¹

Bank deposits

Annual Annual Annual Annual Annual Annual 36.9

58.9

37.0

41.0

115.4

100.3

6.3

13.9

12.0

9.0

1,471.8

AMC deposits

-16.7

-16.6

18.8

17.7

42.4

44.4

-11.2

6.3

5.7

-16.0

469.3

1. Balance at end December 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 December posted a surplus of US $7.87 billion, staying in the black for 58 consecutive months. The goods account surplus decreased month-on-month from US $10.43 billion to US $9.43 billion. Growth in goods exports (y-o-y, %) 7.5 (Nov 2016) → 3.3 (Dec)

February 2017

Growth in goods imports (y-o-y, %) 10.6 (Nov 2016) → 9.2 (Dec)

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

6.4 (total), 22.4 (semiconductors), 14.3 (petroleum products), 8.4 (petrochemicals), 4.7 (automobiles), 0.7 (steel), -0.9 (mobile phones), -14.1 (vessels)

Import growth by category in December (y-o-y, %, customs clearance basis) 8.0 (total), 6.6 (commodities), 15.8 (capital goods), -4.0 (consumer goods)

The services account deficit decreased month-on-month from US $1.74 billion to US $0.79 billion as the construction account and other businesses account improved. Services account (US $ billion, Nov → Dec)

-0.48 → -0.49 (manufacturing), -0.15 → -0.16 (transportation), -0.75 → -1.02 (travel), 0.72 → 1.32 (construction), -0.31 → -0.12 (intellectual property rights), -0.92 → -0.34 (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 went from a surplus of US $0.44 billion to a deficit of US $0.19 billion due to increased dividend payments. The secondary income account deficit rose from US $0.23 billion to US $0.59 billion. (US $ billion)

2015 Annual

2016 Q4

Dec Annual¹ Q1¹

Q2¹

Q3¹

Q4¹

Nov¹ Dec¹

Current account

105.94 28.25 27.52 8.10

98.68 25.35 26.34 21.51 25.48 8.89

7.87

- Goods balance

122.27 31.32 32.77 11.16 120.45 28.95 33.53 28.27 29.69 10.43

9.43

- Services balance

-14.92 -3.74 -4.03 -1.32 -17.61 -3.92 -3.91 -5.66 -4.12 -1.74 -0.79

- Primary income balance

3.57

- Secondary income balance

-4.99 -1.68 -0.88 -1.06

1. Preliminary Source: Bank of Korea

1.52

0.47 -0.68

1.46

1.20 -2.11

1.26

1.11 0.44 -0.19

-5.62 -0.88 -1.18 -2.36 -1.20 -0.23 -0.59

Economic Bulletin

The Green Book

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

Current account Goods account

-2 -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 December saw an outflow of US $9.27 billion. Capital & financial account balance* (US $ billion)

8.70 (Dec 2015) → 7.52 (Aug 2016) → 9.58 (Sep) → 7.04 (Oct) → 8.90 (Nov) → 9.27 (Dec) * Positive figures represent net outflows, and negative figures represent net inflows.

Capital & financial account balance (US $ billion) 15

Capital & financial account Direct investment

-5

-10

Portfolio investment -15

Financial derivatives

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)

Net outflows of FDI increased from US $0.66 billion a month earlier to US $4.98 billion as inbound FDI increased at a slower pace (up US $1.44 billion → up US $1.09 billion), while Korean FDI rose at a faster pace (up US $2.10 billion → up US $6.06 billion).

February 2017

Net outflows of portfolio investment fell from US $6.97 billion to US $3.23 billion, as foreign investment in Korean shares increased (down US $2.69 billion → up US $0.15 billion) and Korean investment in foreign shares expanded at a slower pace (up US $4.28 billion → up US $3.39 billion). Financial derivatives investment and other investment saw net inflows of US $0.28 billion and US $0.03 billion, respectively. The current account surplus is likely to decrease in January given falling trade surpluses (US $7.00 billion → US $3.20 billion, Dec 2016 → Jan 2017).

11. Prices 11.1 Consumer prices Consumer prices in January rose 2.0 percent year-on-year and 0.9 percent monthon-month.

Consumer price inflation (%) 7 6 5 4 3 2 1 0

Consumer price inflation (y-o-y) -1

Consumer price inflation (m-o-m)

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Source: Statistics Korea (consumer price trends)

Consumer price inflation

(%)

2016 Feb

Mar

Apr

May

Jun

2017

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Year-on-Year

1.1

0.8

1.0

0.8

0.7

0.4

0.5

1.3

1.5

1.3

2.0

Month-on-Month

0.4

-0.3

0.2

0.1

0.0

-0.2

0.3

0.6

0.1

-0.1

0.1

0.9

Source: Statistics Korea

Economic Bulletin

The Green Book

Agricultural, livestock & fishery product prices increased at a faster pace in January compared to the previous month (up 6.7% → up 8.5%, y-o-y) as egg prices rose due to the avian influenza outbreak. Oil product prices soared (up 1.1% → up 8.4%, y-o-y) due to high international oil prices as well as a low base effect from January 2016 when prices fell 3.4 percent. Public utility charges fell at a slower pace (down 11.5% → down 8.3%, y-o-y) due to a low base effect from January 2016 when natural gas rates were cut by 9.0 percent.

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

Dec 2016 (y-o-y, %)

1.3

6.7

0.6

1.1

0.5

-11.5

1.7

0.9

2.7

Jan 2017 (y-o-y, %)

2.0

8.5

1.6

8.4

0.5

-8.3

1.7

1.1

2.8

0.67

0.51

0.36

0.15

-0.35

0.16

0.89

- Contribution (%p)

Source: Statistics Korea

Consumer prices excluding oil and agricultural products rose 1.5 percent year-onyear, a faster pace than the previous month, led by rising livestock product prices. (Percentage change from same period in previous year)

2016

2017

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Consumer prices excluding oil and agricultural products 1.8 2.1 Consumer prices excluding food and energy

1.3

1.5

1.8

1.6

1.2

1.5

1.8

2.0

1.9

1.7

1.6

1.7

Source: Statistics Korea

February 2017

Consumer prices for basic necessities rose at a faster pace than the previous month (up 1.2% → up 2.4%, y-o-y) due to rising energy prices and agricultural & livestock product prices. Fresh food prices rose 12.0 percent. (Percentage change from same period in previous year)

2016

2017

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Consumer prices for basic necessities

0.3

-0.3

-0.2

1.0

1.4

1.6

1.2

Fresh food prices

-3.4

-2.0

1.1

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

2017.1

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 January due to production cuts and rising geopolitical uncertainties in the Middle East. Dubai crude (US $/barrel)

54.3 (1st week Jan 2017) → 53.5 (2nd week) → 53.4 (3rd week) → 53.9 (4th week) (US $/barrel, period average)

2016

2015 Annual

2017

Annual

Nov

Dec

Jan

Dubai crude 50.7

51.9

60.5

49.9

40.8

41.4

30.5

43.2

48.3

44.0

52.1

53.7

WTI crude

48.8

48.6

58.0

46.5

42.2

43.5

33.6

45.6

44.9

49.3

45.8

52.2

52.6

Brent crude

53.6

55.1

63.5

51.3

44.7

45.1

35.2

47.0

51.1

47.1

54.9

55.5

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

2017.1

Source: Korea National Oil Corporation

Domestic gasoline prices increased month-on-month in January. Domestic gasoline prices (won/liter)

1,491.9 (1st week Jan 2017) → 1,505.5 (2nd week) → 1,511.6 (3rd week) → 1,516.5 (4th week)

International gasoline prices (US $/barrel)

64.9 (3rd week Dec 2016) → 67.5 (4th week) → 67.3 (1st week Jan 2017) → 65.9 (2nd week)

Dollar-won exchange rate (won)

1,190.6 (3rd week Dec 2016) → 1,204.7 (4th week) → 1,204.2 (1st week Jan 2017) → 1,194.5 (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

2017.1

February 2017

(Won/liter, period average)

2016

2015 Annual

Annual

2017 Q4

Nov

Dec

Jan

Gasoline prices 1,510 1,485 1,543 1,544 1,468 1,403 1,363 1,396 1,419 1,433 1,427 1,455 1,508 Diesel prices

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

Source: Korea National Oil Corporation

International corn and wheat prices rose in January due to unfavorable weather conditions and a downward revision to the global grain stock outlook. The Great Plains region in the US has been suffering from below-average precipitation since October 2016, and the US Department of Agriculture (USDA) revised down its 2016-2017 global grain stock outlook from 627.3 million tons to 625.8 million tons. International grain price increases in January (monthly average, m-o-m, %) 2.6 (corn), 4.7 (wheat), 1.3 (soybeans)

International copper and aluminum prices rose in January as economic indicators improved in China. The Caixin Manufacturing PMI in December was 51.9, the highest since January 2013. International nickel prices fell in January as supply shortages eased due to Indonesiaâ&#x20AC;&#x2122;s partial lift of its export ban. Nonferrous metal price increases in January (monthly average, m-o-m, %) 1.8 (copper), 6.0 (aluminum), -8.9 (nickel)

International commodity prices (points)

(points) 4,000

470 430

3,000

390 350

2,000

310 270

1,000

230 190

CRB (left) 150

Reuters index (right)

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Source: 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 1

Reuters Index (Sep 18,1931=100)

Q4 Annual Q1

2017 Q4

Nov

Dec

Jan

2,328 2,368 2,394 2,287 2,269 2,330 2,115 2,250 2,414 2,536 2,543 2,574 2,646

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 remained flat in January. Housing prices were unchanged from the previous month in the Seoul metropolitan area, which includes Seoul (up 0.0%), Gyeonggi Province (up 0.0%) and Incheon (up 0.0%). Housing prices also remained unchanged in areas excluding the Seoul metropolitan area, which include the five metropolitan cities (up 0.1%) and the eight provinces (up 0.0%). Housing price increases in five metropolitan cities (m-o-m, %) Busan (0.2), Daegu (-0.1), Gwangju (0.1), Daejeon (0.1), Ulsan (-0.1)

Housing sales prices

(Percentage change from previous period)

2012

2013

2014

2015

2016

Annual Annual Annual Annual Annual

2017

Oct

Nov

Dec

Jan

Nationwide

0.0

0.3

1.7

3.5

0.7

0.2

0.1

0.0

Seoul metropolitan area

-3.0

-1.1

1.5

4.4

1.3

0.2

0.1

0.0

- Seoul

-2.9

-1.4

1.1

4.6

2.1

0.4

0.3

0.1

0.0

· Gangnam¹

-3.5

-1.1

1.2

5.2

2.5

0.6

0.4

0.1

0.0

· Gangbuk²

-2.3

-1.7

1.1

3.9

1.8

0.3

0.1

3.1

1.7

1.9

2.7

0.2

0.1

0.0

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

2017.1

February 2017

Housing rental prices remained unchanged nationwide. Housing rental price increases in major districts in Seoul (m-o-m, %)

Gangnam (0.0), Seocho (-0.1), Gangdong (-0.1), Yangcheon (0.1), Seongdong (-0.1)

Housing rental prices

(Percentage change from previous period)

2012

2013

2014

2015

2016

Annual Annual Annual Annual Annual

2017

Oct

Nov

Dec

Jan

Nationwide

3.5

4.7

3.4

4.8

1.3

0.1

0.0

Seoul metropolitan area

2.1

6.2

4.7

7.1

2.0

0.2

0.1

0.0

- Seoul

2.1

6.6

3.6

7.2

2.0

0.2

0.1

· Gangnam¹

2.4

6.7

3.3

7.9

1.8

0.2

0.1

0.0

· Gangbuk²

1.8

6.4

3.8

6.5

2.1

0.2

0.1

4.6

3.3

2.2

2.8

0.7

0.1

0.0

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

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Source: Korea Appraisal Board

There were 88,601 housing transactions in December, down 13.9 percent from a month earlier (102,888) and up 0.8 percent from a year ago (87,871).

Housing transactions 2014

(Thousands)

2015

2016

Annual Annual Annual 1

Nationwide

Jan Feb Mar Apr May Jun

Jul Aug Sep Oct Nov Dec

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 0.22 percent month-on-month in December. Land prices rose 0.20 percent in the Seoul metropolitan area including Seoul (up 0.24%) and Gyeonggi Province (up 0.18%). Land prices rose 0.25 percent in areas excluding the Seoul metropolitan area, led by Busan (up 0.35%), Daejeon (up 0.25%) and South Chungcheong Province (up 0.14%). Land price increases in Seoul metropolitan area (m-o-m, %)

0.24 (Jun 2016) → 0.25 (Jul) → 0.23 (Aug) → 0.24 (Sep) → 0.25 (Oct) → 0.23 (Nov) → 0.20 (Dec)

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

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

Land prices by region (y-o-y, %) 12 10 8 6 4

National average 2

Metropolitan city 0

City -2

County

2000

2001

2002

2003

Source: Korea Appraisal Board

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

February 2017

Land prices

(Percentage change from previous period)

2015

2012 2013 2014

Annual Annual Annual Annual

2016 Q4

Annual

Oct

Nov

Dec

Nationwide

0.96

1.14

1.96

2.40

0.72

2.70

0.56

0.68

0.72

0.71

0.25

0.24

0.22

Seoul

0.38

1.21

2.66

2.69

0.72

2.97

0.57

0.76

0.83

0.78

0.29

0.25

0.24

Gyeonggi

1.04

0.91

1.24

1.73

0.52

2.23

0.37

0.58

0.64

0.63

0.23

0.22

0.18

Incheon

0.46

0.87

1.35

1.95

0.50

1.74

0.34

0.48

0.47

0.44

0.15

0.13

Source: Korea Appraisal Board

There were 276,000 land transactions in December, up 0.7 percent from the previous month and up 0.8 percent from a year ago (274,000). Land transactions decreased month-on-month in Seoul (down 2.6%), Busan (down 7.6%), Incheon (down 19.6%) and Sejong (down 13.1%) but increased in North Gyeongsang Province (up 13.2%), North Jeolla Province (up 12.8%) and Jeju Province (up 28.9%). Vacant land transactions, which accounted for 39.1 percent of total land transactions, recorded 108,000, up 14.5 percent month-on-month and down 5.8 percent compared with a year ago (115,000).

Land transactions

(Land lots, thousands)

2014 2015

2016

Annual1 Annual1 Annual1 Jan Feb Mar Apr May Jun

Nationwide Seoul

220

257

250

Jul Aug Sep Oct Nov Dec

207 191 248 245 253 262 258 266 240 274 274 276 26

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 0

Areas excluding Seoul metropolitan area

2008.1

2009.1

Source: Korea Appraisal Board

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

Economic Bulletin

The Green Book

13. Composite indices of business cycle indicators Industrial output in December remained unchanged month-on-month and increased 3.3 percent year-on-year. Output fell month-on-month in mining & manufacturing (down 0.5%) and construction (down 1.8%), and rose in services (up 0.3%) and public administration (up 1.9%).

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)

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, %)

May

Jun

2.0 5.0

0.7 4.8

Jul 0.0 3.5

Aug

Sep

Oct1

Nov1

Dec1

0.0 5.1

-0.9 1.2

-0.4 1.9

1.8 4.9

0.0 3.3

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

120.4 121.0 121.8 122.4 122.4 122.3 122.7 123.3 0.5 0.5 0.7 0.5 0.0 -0.1 0.3 0.5

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

100.3 100.5 100.9 101.2 100.9 100.6 100.7 100.9 0.3 0.2 0.4 0.3 -0.3 -0.3 0.1 0.2

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

124.9 125.3 125.8 126.5 127.3 127.9 128.3 128.8 0.3 0.3 0.4 0.6 0.6 0.5 0.3 0.4

Cyclical indicator of leading composite index 100.4 100.3 100.4 100.7 100.9 101.0 101.0 101.1 0.0 -0.1 0.1 0.3 0.2 0.1 0.0 0.1 (m-o-m, p) 1. Preliminary Source: Statistics Korea

The cyclical indicator of the coincident composite index rose 0.2 points to 100.9. Service output decreased, but all other components of the coincident composite index increased.

February 2017

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

domestic shipments (0.8%), nonfarm payroll employment (0.2%), retail sales (1.3%), mining & manufacturing production (0.6%), value of construction completed (1.4%), imports (0.2%), service output (-0.1%)

Cyclical indicator of coincident composite index (points) 110

105

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 rose 0.1 points to 101.1. Four components of the leading composite index, including the consumer expectations index and ratio of export to import prices, went down, while four others, such as the spreads between long & short term interest rates and domestic shipments of machinery, went up. Components of the leading composite index in December (m-o-m)

spreads between long & short term interest rates (0.18%p), domestic shipments of machinery (2.6%), inventory circulation indicator (0.6%p), ratio of job openings to job seekers (2.2%p), consumer expectations index (-3.0p), ratio of export to import prices (0.3%), value of construction orders received (-2.2%), KOSPI (-0.3%)

Cyclical indicator of leading composite index (points) 110

105

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

Economic News Briefing

Government to promote R&D in services 2017 EDCF focuses on expanding cooperation to African, Latin American and CIS countries Government posts 8.0 tn won surplus in 2016 External debt amounts to US $380.9 bn in 2016 Korean FDI up 18.7% in 2016 Korea renews currency swap deals with Australia and Malaysia Government decides on 2018-2020 emissions trading scheme Korea grows 0.4% in Q4 2016 (advanced)

February 2017

Government to promote R&D in services The government announced on February 1 its mid- to long-term plan to promote R&D in services. The plan focuses on industrial convergence between the service and manufacturing sectors to increase service sector productivity as well as strengthen the manufacturing sector. The government will double its investment in service sector R&D and spend a total of 4.7 trillion won over the next five years from 2016 to 2021, and will help promising service businesses enter global markets. The plan is expected to boost Koreaâ&#x20AC;&#x2122;s potential growth rate by 2 percentage points, and help balance the services account by 2020.

2017 EDCF focuses on expanding cooperation to African, Latin American and CIS countries The government announced this yearâ&#x20AC;&#x2122;s plan for the Economic Development and Cooperation Fund (EDCF) at the Ministerial Meeting on International Economic Affairs on January 26. The 2017 EDCF will focus on expanding economic cooperation to countries in Africa, Latin America and the CIS, as well as expanding interest free finance to IT and transportation infrastructure projects in addition to the current solar and wind power generation projects and biotechnology projects. The government will also increase cooperation with multilateral development banks and work to find projects the country is best at.

Government posts 8.0 tn won surplus in 2016 The government ran an 8.0 trillion won surplus in 2016, following a 2.8 trillion won surplus in 2015. The general and special accounts revenues amounted to 345.0 trillion won, while expenditures amounted to 332.2 trillion won. General account surpluses worth 6.1 trillion won will be used, under Article 90 of the National Finance Act, to pay subsidies for local governments and repay government debt.

Economic Bulletin

Economic News Briefing

External debt amounts to US $380.9 bn in 2016 Koreaâ&#x20AC;&#x2122;s external debt amounted to US $380.9 billion as of the end of December 2016, a decrease of US $15.1 billion from a year ago. The ratio of short-term external debt to total external debt was low at 27.6 percent and the ratio of short-term debt to foreign exchange reserves remained stable at 28.3 percent. Net foreign assets in debt instruments posted a record high of US $403.4 billion.

Korean FDI up 18.7% in 2016 Korean foreign direct investment (FDI) in 2016 rose to a record high of US $49.24 billion, up 18.7 percent from US $41.49 billion in the previous year. The surge is largely attributed to a rapid increase in M&A investments. By industry, FDI rose in real estate & renting (up 44.2%) and wholesale & retail (up 296.9%), but fell in mining (down 27.7%). FDI changed little in finance & insurance (up 1.1%) and manufacturing (up 0.6%). By region, FDI in North America (up 68.6%) and Europe (up 74.0%) increased, but fell in Asia (down 21.9%). Korean FDI

(US $ billion)

2012

2013

2014

2015

2016

Amount reported

40.64

36.33

35.88

41.49

49.24

(y-o-y, %)

-12.6

-10.6

-1.2

15.6

18.7

Amount invested

28.96

30.63

28.16

30.87

35.25

-1.1

5.7

-8.1

9.6

14.2

(y-o-y, %)

Korea renews currency swap deals with Australia and Malaysia Korea and Australia agreed on February 8 to double their bilateral currency swap agreement to US $7.7 billion. The swap agreement will be effective for three years until February 7, 2020, replacing the current swap agreement signed on February 23, 2014.

February 2017

Korea also renewed its currency swap deal with Malaysia as the two countries agreed to extend the current agreement to January 2020. The Korea-Malaysia currency swap agreement of exchanging 5 trillion won for 15 billion ringgit, or vice versa, was first signed in October 2013.

Government decides on 2018-2020 emissions trading scheme The government decided on its second emissions trading scheme at the cabinet meeting held on January 24, which will be applied for three years from 2018 to 2020. According to the Act on the Allocation and Trading of Greenhouse Gas Emissions Rights, the government has drawn up the country’s emissions trading scheme every three years since 2015. The second emissions trading scheme focuses on encouraging industrial innovation and promoting environmentally friendly investment, increasing productivity by efficiently allocating emissions rights, and preparing for changes in the emissions market as the Paris Agreement was adopted in November 2016. Unlike the first round scheme in which emissions rights are allocated according to the amount emitted in the past, the 2018-2020 scheme favors companies efficiently managing production facilities to reduce emissions as well as those working to reduce emissions through environmentally friendly investment. The government also revised the 2017 emissions rights allocation at the January 24 meeting. Approximately 538.9 million tons of emissions rights will be allocated to the emissions trading market, an increase of 17 million tons from the government’s earlier goal of 521.9 million tons for the year.

Korea grows 0.4% in Q4 2016 (advanced) Korea’s real gross domestic product (GDP) expanded 0.4 percent quarter-on-quarter and 2.3 percent year-on-year in the fourth quarter of 2016, according to the advanced data released by the Bank of Korea (BOK) on January 25. The Korean economy grew 2.7 percent in 2016.

Economic Bulletin

Economic News Briefing

On the production side, manufacturing grew 1.8 percent compared to the previous quarter, led by machinery & equipment and electronic & electrical equipment. Construction grew 0.5 percent, led by building construction. Services showed no change, as growth in healthcare & social welfare services offset a decline in real estate & renting. Agriculture, forestry & fisheries declined 2.8 percent, and electricity, gas & water supply contracted 4.3 percent. On the expenditure side, private consumption rose 0.2 percent quarter-on-quarter as expenditures on durable goods increased. Facility investment grew 6.3 percent, led by transportation equipment and machinery, while construction investment declined 1.7 percent due to a fall in civil engineering works. Intellectual property investment rose 0.2 percent as R&D investment increased. Exports contracted 0.1 percent as a decline in exports of transportation services offset an increase in automobile exports. Imports rose 0.2 percent, led by crude oil and natural gas. GDP by production and expenditure*

(Percentage change from previous period)

20151

20161

Annual

GDP

2.6

0.8 (2.4)2

0.4 (2.2)2

1.2 (2.8)2

0.7 (3.1)2

2.7

0.5 (2.8)2

0.8 (3.3)2

0.6 (2.6)2

0.4 (2.3)2

Agriculture, forestry & fisheries

-1.5

3.7

-11.0

4.7

-2.6

-2.8

6.5

-6.6

-1.6

-2.8

Manufacturing

1.3

0.4

0.9

0.4

0.7

1.7

-0.2

1.2

-0.9

1.8

Electricity, gas & water supply

6.2

-0.8

0.8

5.5

0.8

3.8

-1.8

0.3

5.9

-4.3

Construction

3.0

1.8

-0.1

5.5

0.7

11.0

4.8

1.0

3.7

0.5

Services

2.8

0.7

0.2

1.1

0.7

2.5

0.5

0.6

0.9

0.0

Private consumption

2.2

0.8

-0.1

1.1

1.4

2.4

-0.2

1.0

0.5

0.2

Government consumption

3.4

0.5

0.9

1.3

1.0

3.9

1.3

0.1

1.4

0.5

Facility investment

5.3

0.5

0.8

1.8

0.5

-2.4

-7.4

2.8

0.2

6.3

Construction investment

3.9

5.5

1.8

3.3

-2.4

11.0

6.8

3.1

3.5

-1.7

Intellectual property investment

1.5

1.7

-0.6

0.3

0.7

2.4

0.3

1.5

0.6

0.2

Exports

0.8

0.6

-0.1

-0.3

2.1

1.4

-1.1

1.1

0.6

-0.1

Imports

3.2

0.9

0.4

1.4

3.2

3.0

-3.1

2.1

2.8

0.2

*At 2010 chained prices in seasonally adjusted terms 1. Preliminary 2. Percentage change from the same period of the previous year (original data) 3. â&#x20AC;&#x152; Wholesale & retail, hotels & restaurants, transportation & storage, communications services, financial & insurance services, real estate & renting, business services, public administration, defense & social security, education services, healthcare & social welfare services, entertainment, cultural & sports services and other services are included.

Statistical Appendices

01. National accounts 02. Production, shipment and inventory 03. Production capacity and operation ratio 04. Consumer goods sales index 05. Machinery orders received and facility investment index 06. Value of construction completed and domestic construction orders received 07. Composite 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

2013

2.9

3.1

3.6

2.2

1.9

3.3

5.5

-0.8 6.0

2014

3.3

3.6

3.5

2.0

1.7

3.4

1.1

2015p

2.6

-1.5

1.3

2.4

2.2

3.8

3.9

5.3

2016p

2.7

-2.8

1.7

2.8

2.4

5.3

11.0

-2.4

2009 Ⅰ

-1.9

2.5

-8.4

-1.9

-4.3

-5.4

1.9

-19.4

Ⅱ

-1.1

0.0

-5.7

0.9

-0.8

-1.1

4.4

-13.6

Ⅲ

0.9

5.0

1.6

1.7

0.7

0.8

3.1

-5.9

Ⅳ

4.8

5.0

10.4

4.5

5.3

5.8

4.1

9.5

2010 Ⅰ

7.3

0.0

16.1

6.2

6.8

12.0

1.6

27.6

Ⅱ

7.4

-2.2

17.2

3.6

6.8

-4.8

28.8

Ⅲ

5.4

-7.8

10.1

3.9

4.0

3.8

-4.8

20.6

Ⅳ

6.0

-5.7

11.9

3.4

3.2

1.3

-5.1

12.9

2011 Ⅰ

4.9

-9.3

11.4

3.3

3.7

-0.7

-8.2

8.3

Ⅱ

3.6

-2.5

6.5

3.3

3.7

2.5

-2.5

8.3

Ⅲ

3.3

-5.8

5.6

2.8

2.5

1.7

-2.2

3.4

Ⅳ

3.0

7.1

3.4

1.7

-0.3

-2.0

-0.9

2012 Ⅰ

2.5

0.1

2.7

2.2

1.6

6.2

-0.2

11.0

Ⅱ

2.4

-1.8

2.8

1.3

0.7

-2.3

-5.3

-1.9

Ⅲ

2.1

0.0

2.0

2.7

2.6

-0.9

-2.6

-4.2

Ⅳ

2.2

-1.3

2.0

2.7

-3.6

-6.4

-3.8

2013 Ⅰ

2.1

-1.2

2.7

1.5

-3.2

1.2

-12.3

Ⅱ

2.7

0.1

3.6

2.2

1.9

4.2

8.9

-3.2

Ⅲ

3.2

4.3

3.8

2.4

1.9

4.9

7.5

2.3

Ⅳ

3.5

7.0

4.2

2.6

2.2

6.5

3.5

11.7

2014 Ⅰ

3.9

5.9

4.7

2.9

2.8

6.1

4.5

7.4

Ⅱ

3.5

4.5

4.7

1.8

1.7

3.6

0.3

7.9

Ⅲ

3.4

2.7

3.1

2.0

1.4

3.6

2.3

4.4

Ⅳ

2.7

2.4

1.8

1.6

1.1

0.8

-1.7

4.4

2015 Ⅰ

2.4

7.5

0.6

1.9

1.5

2.6

0.9

5.8

Ⅱ

2.2

-4.0

0.5

2.1

1.7

2.2

1.0

5.1

Ⅲ

2.8

-0.8

1.5

2.4

2.2

5.1

5.6

6.7

Ⅳ

3.1

-5.0

2.4

3.4

3.3

5.4

7.5

3.9

2016p Ⅰ

2.8

-2.4

1.9

2.7

2.2

3.0

9.6

-4.5

Ⅱ

3.3

1.5

2.2

3.4

3.3

5.3

10.8

-2.7

Ⅲ

2.6

-4.6

0.8

3.0

2.7

5.3

11.4

-4.2

Ⅳ

2.3

-4.8

1.9

2.0

1.6

7.0

11.8

1.5

p: Preliminary Source: Bank of Korea

February 2017

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

Production index*

Period

Shipment index*

y-o-y change (%)

Inventory index*

y-o-y change (%)

Service production index

y-o-y change (%)

2013

108.2

0.7

108.1

0.8

130.7

4.4

106.4

1.5

2014

108.4

0.2

108.0

-0.1

127.4

-2.5

108.9

2.3

2015

107.7

-0.6

107.8

-0.2

131.2

3.0

112.0

2.8

2016p

108.8

1.0

108.6

0.7

126.0

-4.0

115.4

3.0

2014 Ⅰ

106.9

0.8

106.6

0.5

129.6

5.3

105.4

2.1

Ⅱ

109.8

0.5

109.3

-0.1

128.2

7.6

108.6

1.7

Ⅲ

105.6

1.2

104.9

0.4

129.0

3.6

108.5

2.7

Ⅳ

111.3

-1.5

111.3

-0.8

127.4

-2.5

113.1

2.8

2015 Ⅰ

105.7

-1.1

106.0

-0.6

132.2

2.0

108.2

2.7

Ⅱ

108.4

-1.3

108.1

-1.1

134.0

4.5

111.5

2.7

Ⅲ

105.5

-0.1

105.8

0.9

137.7

6.7

111.6

2.9

Ⅳ

111.2

-0.1

111.2

-0.1

131.2

3.0

116.8

3.3

2016 Ⅰ

105.5

-0.2

105.2

-0.8

136.1

3.0

111.2

2.8

Ⅱ

109.5

1.0

109.5

1.3

131.1

-2.2

115.6

3.7

Ⅲ

106.1

0.6

105.9

0.1

127.4

-7.5

115.6

3.6

Ⅳp

114.2

2.7

113.6

2.2

126.0

-4.0

119.3

2.1

2015 1

108.1

1.5

108.1

2.6

131.3

-0.2

106.9

2.0

96.0

-5.1

96.6

-4.7

131.9

2.4

104.7

2.7

113.1

0.1

113.2

0.1

132.2

2.0

113.0

3.1

109.8

-2.2

109.6

-1.4

133.7

2.3

111.7

4.3

105.2

-3.0

105.4

-3.0

133.0

2.6

111.5

2.3

110.3

1.6

109.2

1.0

134.0

4.5

111.4

1.5

108.7

-3.4

107.5

-1.9

137.1

3.4

111.7

2.6

101.4

0.2

102.1

0.4

136.8

5.3

110.6

2.3

106.3

3.0

107.7

4.2

137.7

6.7

112.6

3.8

112.4

2.1

112.6

2.9

136.1

4.7

114.1

3.0

108.5

-0.2

108.4

-1.0

136.2

5.4

113.2

3.0

112.6

-2.1

112.7

-2.1

131.2

3.0

123.1

3.7

2016 1

105.7

-2.2

103.9

-3.9

136.9

4.3

110.1

3.0

98.2

2.3

97.5

0.9

136.6

3.6

107.6

2.8

112.5

-0.5

114.2

0.9

136.1

3.0

115.8

2.5

107.1

-2.5

108.0

-1.5

132.4

-1.0

113.9

2.0

110.1

4.7

109.5

3.9

133.5

0.4

115.6

3.7

111.3

0.9

111.0

1.6

131.1

-2.2

117.4

5.4

110.4

1.6

108.5

0.9

133.7

-2.5

115.3

3.2

103.7

2.3

104.1

2.0

130.2

-4.8

115.9

4.8

104.3

-1.9

105.2

-2.3

127.4

-7.5

115.5

2.6

10p

111.0

-1.2

110.5

-1.9

128.2

-5.8

116.4

2.0

114.2

5.3

113.2

4.4

127.7

-6.2

116.2

2.7

12p

117.4

4.3

117.1

3.9

126.0

-4.0

125.2

1.7

* 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

2016p

112.3

0.5

90.3

-2.0

72.4

2014 Ⅰ

109.7

1.5

92.9

-0.9

77.2

Ⅱ

109.9

1.5

96.8

-1.1

76.3

Ⅲ

110.7

1.7

91.5

0.8

75.9

Ⅳ

111.2

1.7

95.8

-2.5

75.2

2015 Ⅰ

111.5

1.6

90.0

-3.1

74.3

Ⅱ

111.6

1.5

94.9

-2.0

74.3

Ⅲ

111.7

0.9

89.8

-1.9

74.9

Ⅳ

112.0

0.7

93.8

-2.1

73.6

2016 Ⅰ

112.0

0.4

88.6

-1.6

73.2

Ⅱ

112.0

0.4

92.1

-3.0

72.2

Ⅲ

112.2

0.4

87.0

-3.1

71.8

Ⅳp

112.9

0.8

93.6

-0.2

72.5

2015 1

111.5

1.5

92.8

1.0

73.9

111.3

1.6

81.0

-7.5

74.7

111.8

1.9

96.3

-2.8

74.2

111.5

1.7

95.8

-3.9

74.4

111.6

1.5

91.8

-4.0

73.5 75.0

111.7

1.5

97.1

2.1

111.5

1.0

94.7

-4.1

74.4

111.5

0.7

86.0

-0.9

75.4

112.1

1.0

88.8

-0.2

74.9

112.1

0.9

95.4

-0.5

74.0

112.0

0.8

91.8

-2.3

73.1

111.9

0.5

94.2

-3.5

73.8

2016 1

111.8

0.3

89.0

-4.1

72.3

111.9

0.5

81.2

0.2

73.5

112.2

0.4

95.6

-0.7

73.8

112.1

0.5

90.1

-5.9

71.3

112.0

0.4

92.8

1.1

73.1

111.9

0.2

93.3

-3.9

72.2

112.0

0.4

92.2

-2.6

73.8

112.2

0.6

83.8

-2.6

70.2

112.3

0.2

84.9

-4.4

71.5

10p

112.8

0.6

91.3

-4.3

70.8

11p

112.9

0.8

94.4

2.8

73.8

12p

113.0

1.0

95.2

1.1

73.0

* Manufacturing industry p: Preliminary Source: Statistics Korea

February 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

2016p

119.1

4.1

141.0

4.3

107.0

2.9

114.2

4.7

2014 Ⅰ Ⅱ

106.5

2.6

117.4

5.7

100.1

-2.0

104.3

3.1

109.0

1.2

121.2

2.3

104.6

-2.5

105.2

2.2

Ⅲ

109.3

2.0

123.4

5.5

96.0

1.2

108.6

0.6

Ⅳ

115.7

2.4

128.6

6.9

120.5

0.5

107.5

0.8

2015 Ⅰ Ⅱ

108.8

2.2

126.7

7.9

97.9

-2.2

105.1

0.8

112.7

3.4

132.0

8.9

103.2

-1.3

107.7

2.4

Ⅲ

113.2

3.6

132.9

7.7

92.7

-3.4

112.9

4.0

Ⅳ

122.8

6.1

149.3

16.1

122.3

1.5

110.7

3.0

2016 Ⅰ Ⅱ

113.8

4.6

133.8

5.6

100.5

2.7

110.2

4.9

119.7

6.2

146.7

11.1

107.9

4.6

112.2

4.2

Ⅲ

117.3

3.6

134.6

1.3

96.2

3.8

118.4

4.9

Ⅳp

125.8

2.4

148.9

-0.3

123.4

0.9

116.0

4.8

2015 1

107.9

-2.4

128.2

10.1

97.6

-2.9

102.9

-8.2

105.2

5.8

117.3

0.2

91.5

-0.3

105.5

11.6

113.2

3.2

134.6

13.4

104.6

-3.1

106.9

0.7

111.8

5.4

129.2

12.8

107.1

1.4

105.7

3.2

116.6

3.6

130.3

7.1

114.3

2.5

111.1

2.2

109.6

1.1

136.4

7.1

88.3

-8.8

106.3

1.7

113.1

2.3

140.2

6.8

92.0

-3.7

109.7

2.0

110.3

2.4

129.2

9.0

88.1

-3.5

111.2

1.2

116.1

5.8

129.4

7.4

98.0

-3.3

117.8

8.7

121.3

8.6

143.2

20.4

122.2

5.6

110.6

3.8

121.8

6.2

146.8

14.0

124.5

3.3

109.0

3.2

125.4

4.0

158.0

14.4

120.3

-3.9

112.4

1.9

2016 1

112.9

4.6

125.3

-2.3

101.6

4.1

112.0

8.8

108.6

3.2

125.0

6.6

93.1

1.7

107.8

2.2

119.8

5.8

151.1

12.3

106.7

2.0

110.9

3.7

116.5

4.2

139.3

7.8

109.4

2.1

109.0

3.1

122.9

5.4

146.0

12.0

115.1

0.7

115.5

4.0

119.6

9.1

154.9

13.6

99.1

12.2

112.0

5.4

118.1

4.4

141.2

0.7

98.8

7.4

115.7

5.5

117.0

6.1

137.2

6.2

89.6

1.7

119.5

7.5

116.8

0.6

125.5

-3.0

100.1

2.1

120.1

2.0

10p

124.3

2.5

144.0

0.6

124.4

1.8

115.1

4.1

11p

125.7

3.2

148.4

1.1

125.5

0.8

115.1

5.6

12p

127.4

1.6

154.4

-2.3

120.3

0.0

117.9

4.9

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

2016p

26,210

2014 Ⅰ Ⅱ

y-o-y change (%)

20.5

20,497

5,012

94.2

1,921

-61.7

2.6

2,626

6,627

18.6

6,106

4.1

Ⅲ

7,673

Ⅳ

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

36.7

23,584

-0.2

110.1

-1.3

1,221

184.6

5,406

4.8

98.6

7.5

305

-45.0

5,801

9.2

107.9

6.7

49.2

2,708

418.5

4,965

7.4

100.7

1.4

6,081

-6.2

778

-27.6

5,303

-1.9

112.9

5.5

2015 Ⅰ Ⅱ

6,430

-3.0

405

-66.9

6,025

11.4

107.7

9.2

7,017

14.9

493

61.7

6,524

12.5

112.8

4.5

Ⅲ

5,596

-27.1

399

-85.3

5,197

4.7

111.0

10.2

Ⅳ

6,502

6.9

624

-19.8

5,878

10.8

114.7

1.6

2016 Ⅰ Ⅱ

6,486

0.9

635

56.9

5,851

-2.9

100.1

-7.1

6,810

-2.9

569

15.4

6,241

-4.3

113.7

0.8

Ⅲ

5,665

1.2

470

17.7

5,195

0.0

105.6

-4.9

Ⅳp

7,249

11.5

952

52.7

6,296

7.1

121.1

5.6

2015 1

2,313

31.9

116

32.0

2,197

31.9

103.1

14.0

1,853

0.5

141

17.6

1,712

-0.7

98.5

3.0

2,264

-25.3

148

-85.4

2,116

4.9

121.4

10.6

2,766

21.6

127

30.7

2,640

21.2

113.5

2.6

2,096

14.5

197

69.4

1,899

10.8

107.2

-0.9

2,155

7.7

169

84.7

1,986

4.0

117.7

12.3

2,004

13.1

133

50.2

1,870

11.2

119.4

7.3

1,684

-58.8

160

-93.7

1,524

-1.2

105.9

16.9

1,908

5.0

106

34.8

1,802

3.6

107.8

7.6

2,048

5.8

-53.6

1,950

13.1

112.6

12.5

1,965

-14.9

228

-46.7

1,737

-7.6

107.2

-4.8

2,489

35.5

298

113.6

2,191

29.1

124.4

-1.3

2016 1

1,758

-24.0

-40.7

1,689

-23.1

96.9

-6.0

2,275

22.7

255

80.7

2,020

18.0

90.7

-7.9

2,453

8.4

312

110.8

2,142

1.2

112.7

-7.2

1,987

-28.2

189

49.3

1,798

-31.9

110.3

-2.8

2,135

1.9

169

-14.2

1,966

3.5

110.4

3.0

2,688

24.7

211

24.6

2,477

24.8

120.5

2.4

2,011

0.4

-61.3

1,960

4.8

104.5

-12.5

1,656

-1.7

-47.3

1,572

3.1

109.2

3.1

1,998

4.7

334

214.8

1,644

-7.7

103.2

-4.3

10p

1,809

-11.7

-39.6

1,751

-10.3

108.1

-4.0

11p

2,305

17.3

140

-38.5

2,165

24.6

118.3

10.4

12p

3,135

26.0

753

152.7

2,382

8.7

136.8

10.0

p: Preliminary Source: Statistics Korea

February 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

77,885

-12.9

24,736

-5.1

50,947

-14.8

2014

98,491

0.4

32,015

-7.1

62,413

4.5

90,606

16.3

26,427

6.8

62,115

21.9

2015

99,967

1.5

30,694

-4.1

65,114

4.3

134,338

48.3

28,778

8.9

102,449

65.0

2016p

118,878

18.9

30,784

0.3

82,931

27.4

145,149

8.0

34,233

19.0

107,183

4.6

2014 Ⅰ Ⅱ

21,678

7.4

7,148

2.1

13,677

10.2

16,144

16.8

5,924

38.0

9,759

6.3

26,178

1.6

8,708

-6.5

16,513

6.8

23,621

26.4

6,563

22.2

16,714

32.3

Ⅲ Ⅳ

23,604

-0.5

7,245

-10.1

15,359

4.2

24,236

44.0

5,181

3.9

18,384

60.7

27,031

-4.9

8,913

-11.6

16,864

-1.4

26,604

-6.8

8,758

-13.2

17,258

-2.4

2015 Ⅰ Ⅱ

21,315

-1.7

6,593

-7.8

13,973

2.2

25,417

57.4

4,594

-22.5

20,537

110.4

25,034

-4.4

8,189

-6.0

15,862

-3.9

35,210

49.1

9,069

38.2

25,623

53.3

Ⅲ Ⅳ

24,816

5.1

7,175

-1.0

16,651

8.4

36,440

50.4

4,900

-5.4

30,814

67.6

28,803

6.6

8,738

-2.0

18,628

10.5

37,270

40.1

10,215

16.6

25,525

47.9

2016 Ⅰ Ⅱ

24,191

13.5

6,711

1.8

16,209

16.0

28,927

13.8

7,812

70.1

20,406

-0.6

30,026

19.9

8,136

-0.7

20,505

29.3

32,992

-6.3

5,570

-38.6

26,678

4.1

Ⅲ Ⅳp

29,532

19.0

7,014

-2.2

21,286

27.8

37,431

2.7

8,565

74.8

26,974

-12.5

35,129

22.0

8,923

2.1

24,931

33.8

45,800

22.9

12,285

20.3

33,126

29.8

2015 1

6,824

-3.3

2,037

-12.0

4,570

2.6

7,515

35.5

1,318

-35.6

6,084

83.9

6,690

0.4

2,092

-5.2

4,379

3.4

5,435

-3.5

1,135

-49.4

4,218

30.3

7,801

-1.9

2,463

-6.2

5,024

0.7

12,467

151.0

2,140

31.3

10,235

218.6

7,709

-9.1

2,466

-10.0

4,939

-9.5

9,055

20.7

2,585

36.5

6,414

14.6

7,767

-5.2

2,324

-10.1

5,131

-3.5

12,639

85.3

2,458

24.0

10,078

111.3

9,558

0.5

3,399

0.5

5,792

1.0

13,516

45.3

4,026

49.9

9,131

43.8

7,895

-0.3

2,284

-6.0

5,350

3.9

8,685

23.5

1,791

17.0

6,817

27.1

7,939

2.8

2,206

-5.1

5,437

6.3

8,659

-1.5

1,921

18.8

6,433

-7.6

8,982

12.8

2,685

7.8

5,864

15.0

19,097

127.0

1,188

-41.6

17,564

189.8

8,503

3.2

2,268

-10.4

5,865

9.2

10,378

29.7

1,803

27.7

8,574

33.8

8,709

4.3

2,441

-8.7

5,877

10.9

13,226

106.7

3,296

78.2

9,369

111.4

11,590

11.0

4,029

8.7

6,886

11.2

13,666

12.0

5,115

-6.9

7,582

18.1

2016 1

7,359

7.8

2,042

0.2

5,003

9.5

7,225

-3.9

2,691

104.1

4,260

-30.0

7,273

8.7

1,970

-5.9

4,948

13.0

10,014

84.3

2,347

106.8

7,586

79.8

9,559

22.5

2,699

9.6

6,257

24.6

11,687

-6.3

2,774

29.6

8,559

-16.4

8,983

16.5

2,316

-6.1

6,269

26.9

10,828

19.6

1,190

-54.0

9,271

44.5

9,460

21.8

2,350

1.1

6,703

30.6

9,657

-23.6

2,126

-13.5

7,412

-26.5

11,583

21.2

3,469

2.1

7,533

30.1

12,507

-7.5

2,254

-44.0

9,995

9.5

9,567

21.2

2,239

-2.0

6,968

30.2

12,550

44.5

3,170

77.0

8,433

23.7

9,944

25.3

2,331

5.7

7,241

33.2

13,415

54.9

3,466

80.4

9,446

46.8

10,021

11.6

2,445

-9.0

7,077

20.7

11,466

-40.0

1,929

62.4

9,096

-48.2 34.6

10p

10,257

20.6

2,327

2.6

7,538

28.5

14,822

42.8

3,210

78.0

11,537

11p

11,278

29.5

2,763

13.2

8,097

37.8

12,072

-8.7

2,791

-15.3

9,209

-1.7

12p

13,593

17.3

3,833

-4.9

9,296

35.0

18,906

38.3

6,285

22.9

12,380

63.3

p: Preliminary Source: Statistics Korea

Economic Bulletin

Statistical Appendices

7. Composite indices of business cycle indicators, CSI and BSI indicator indicator Leading index Cyclical index Cyclical of leading index Coincident of coincident (2010=100) (2010=100) (2010=100) index (2010=100)

Period

CSI1

BOK BSI2 Results

Prospects

2014 1

113.3

100.4

112.2

100.1

108.6

113.6

100.3

112.5

100.1

107.7

113.9

100.1

112.9

100.2

108.2

114.3

100.2

113.0

100.1

108.1

114.6

100.0

113.1

99.9

104.3

114.9

100.0

113.3

99.9

106.8

115.1

99.8

113.8

100.0

104.5

115.7

100.0

114.2

100.2

106.2

116.3

100.2

114.3

100.0

107.0

116.8

100.2

114.3

99.7

104.5

117.1

100.1

114.4

99.7

102.6

117.6

100.2

115.1

100.1

101.0

2015 1

118.2

100.4

115.5

100.1

102.3

118.7

100.4

116.0

100.3

103.0

119.2

100.6

116.1

100.1

101.3

119.7

100.6

116.4

100.1

103.8

120.4

100.8

116.3

99.8

105.1

120.7

100.7

116.4

99.6

98.4

121.1

100.7

116.8

99.7

100.3

121.6

100.8

117.6

100.1

101.5

122.2

100.9

118.4

100.6

102.6

122.7

101.0

119.0

100.9

104.9

123.0

100.9

119.1

100.7

105.5

123.2

100.8

119.4

100.6

102.4

2016 1

123.4

100.5

119.3

100.3

100.0

123.5

100.3

119.4

100.2

97.9

123.9

100.3

119.5

100.0

124.5

100.4

119.8

100.0

101.6

124.9

100.4

120.4

100.3

99.2

125.3

100.3

121.0

100.5

98.8

125.8

100.4

121.8

100.9

101.0

126.5

100.7

122.4

101.9

127.3

100.9

122.4

100.9

101.8

127.9

101.0

122.3

100.6

102.0

11p

128.3

101.0

122.7

100.7

95.7

12p

128.8

101.1

123.3

100.9

94.1

2017 1

93.3

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

February 2017

8. Prices (2015=100)

Period

2013 2014 2015 2016 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 2017 1

All items

Consumer prices Commodities Services

y-o-y change (%)

98.0 99.3 100.0 101.0 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 99.9 100.2 100.4 100.8 100.6 100.8 100.8 100.8 100.6 100.9 101.5 101.6 101.5 101.6 102.4

1.3 1.3 0.7 1.0 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 2.0

y-o-y change (%)

99.8 100.7 100.0 99.4 100.6 101.0 101.1 100.9 101.1 100.8 100.8 101.0 101.0 100.3 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 98.5 100.0 100.3 100.1 100.1 101.1

Sources: Statistics Korea, Bank of Korea

1.0 0.9 -0.7 -0.6 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 1.9

y-o-y change (%)

96.7 98.2 100.0 102.3 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 99.8 100.4 100.6 100.4 100.6 100.5 100.7 101.3 101.6 101.8 101.9 102.2 102.2 102.6 102.8 102.6 102.7 102.6 102.8 103.5

1.5 1.6 1.8 2.3 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 2.2

Producer prices (2010=100) All items Commodities

Core y-o-y change (%)

95.9 97.8 100.0 101.6 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 99.9 100.2 100.3 100.2 100.4 100.4 100.6 101.0 101.2 101.3 101.5 101.7 101.8 101.5 101.6 101.7 102.1 102.0 101.9 102.5

1.6 2.0 2.2 1.6 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 1.5

y-o-y change (%)

105.7 105.2 101.0 99.1 105.6 105.8 105.7 105.6 105.5 105.6 105.7 105.6 105.2 104.5 104.1 103.1 101.9 101.9 101.8 101.8 101.8 101.8 101.4 100.8 100.3 99.7 99.3 99.0 98.5 98.5 98.4 98.7 98.8 99.0 98.9 99.0 99.2 99.5 100.0 100.9 102.2

-1.6 -0.5 -4.0 -1.8 -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 3.7

y-o-y change (%)

106.2 104.8 98.0 94.6 105.7 105.9 105.7 105.4 105.3 105.4 105.4 105.1 104.7 103.6 103.1 101.7 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 97.0 98.8

-2.5 -1.4 -6.4 -3.4 -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 2.2 5.1

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

y-o-y change

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

Unemployment rate (%)

2016

27,247

335

16,169

62.8

60.4

3.7

2015 Ⅰ

26,356

412

16,469

61.5

59.0

4.1

Ⅱ

27,140

373

15,835

150

63.2

60.7

3.8

Ⅲ

27,166

355

15,921

162

63.0

60.9

3.4

Ⅳ

26,989

367

16,194

128

62.5

60.5

3.1

2016 Ⅰ

26,708

351

16,568

61.7

59.1

4.3

Ⅱ

27,415

275

15,970

135

63.2

60.8

3.8

Ⅲ

27,539

374

15,926

63.4

61.1

3.6

Ⅳ

27,327

338

16,210

62.8

60.7

3.2

2015 1

26,094

444

16,681

61.0

58.7

3.8

26,398

401

16,429

61.6

58.8

4.6

26,577

390

16,298

106

62.0

59.5

4.0

26,954

239

15,971

272

62.8

60.3

3.9

27,211

449

15,764

63.3

30.9

3.8

27,255

430

15,770

104

63.3

60.9

3.9

27,303

413

15,751

114

63.4

61.1

3.7

27,064

290

16,022

225

62.8

60.7

3.4

27,129

363

15,990

146

62.9

60.9

3.2

27,137

328

16,012

176

62.9

60.9

3.1

27,082

296

16,099

197

62.7

60.8

3.1

26,747

476

16,469

61.9

59.9

3.2

2016 1

26,433

339

16,806

125

61.1

58.8

3.7

26,734

337

16,540

111

61.8

58.7

4.9

26,955

379

16,358

62.2

59.6

4.3

27,228

274

16,120

149

62.8

60.3

3.9

27,455

244

15,932

169

63.3

61.0

3.7

27,563

308

15,859

63.5

61.2

3.6

27,578

274

15,864

113

63.5

61.2

3.5

27,524

460

15,941

-81

63.3

61.0

3.6

27,516

387

15,972

-18

63.3

61.0

3.6

27,499

362

16,013

63.2

61.1

3.4

27,446

364

16,091

-8

63.0

61.1

3.1

27,035

288

16,526

62.1

60.1

3.2

2017 1

26,698

265

16,903

61.2

58.9

3.8

Source: Statistics Korea

February 2017

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

All industry

y-o-y change

Manufacturing

y-o-y change

SOC & services

y-o-y change

2013

25,066

386

2014

25,599

533

4,184

19,347

313

4,330

146

19,805

458

2015

25,936

2016

26,235

337

4,486

156

20,092

287

299

4,481

-5

20,449

2015 Ⅰ

357

25,267

354

4,418

139

19,747

307

Ⅱ

26,098

308

4,466

147

20,114

290

Ⅲ

26,237

310

4,511

164

20,217

253

Ⅳ

26,143

376

4,550

176

20,289

300

2016 Ⅰ

25,554

287

4,544

126

19,956

209

Ⅱ

26,387

289

4,503

20,446

332

Ⅲ

26,554

318

4,439

-71

20,683

466

Ⅳ

26,446

302

4,439

-110

20,710

421

2015 1

25,106

347

4,421

141

19,693

317

25,195

376

4,433

159

19,716

309

25,501

338

4,400

116

19,832

294

25,900

216

4,455

167

20,004

185

26,189

379

4,464

140

20,179

364

26,205

329

4,478

133

20,161

319

26,305

326

4,528

170

20,250

247

26,141

256

4,491

156

20,153

213

26,264

347

4,512

166

20,249

300

26,298

348

4,552

191

20,248

275

26,253

285

4,545

190

20,353

256

25,879

495

4,552

146

20,266

370

2016 1

25,445

339

4,566

145

19,955

262

25,418

223

4,541

108

19,885

169

25,800

300

4,525

124

20,028

196

26,153

252

4,503

20,263

259

26,450

261

4,514

20,483

304

26,559

354

4,493

20,593

433

26,603

298

4,464

-65

20,719

469

26,528

387

4,418

-74

20,677

524

26,531

267

4,436

-76

20,653

404

26,577

278

4,437

-115

20,682

434

26,592

339

4,443

-102

20,759

406

26,168

289

4,437

-115

20,689

424

2017 1

25,689

243

4,406

-160

20,362

407

Source: Statistics Korea

Economic Bulletin

Statistical Appendices

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

Period

Current account

Goods

Services

Primary income

Secondary income

2013

81,148.2

2014

84,373.0

535,375.9

-6,499.2

9,055.7

-4,189.3

524,135.2

-3,678.5

4,150.8

2015

-4,984.7

542,811.2

420,612.0

-14,916.8

3,572.4

-4,985.2

120,445.7

511,776.1

391,330.4

-17,608.0

1,459.3

-5,619.6

13,149.4

17,595.3

151,471.8

133,876.5

-2,889.0

-736.9

-820.0

24,107.9

25,175.7

158,004.3

132,828.6

50.8

556.0

-1,674.6

Ⅲ

20,664.9

20,977.4

150,820.7

129,843.3

-459.6

1,398.7

-1,251.6

Ⅳ

26,450.8

25,137.0

152,723.8

127,586.8

-380.7

2,933.0

-1,238.5

2015 Ⅰ Ⅱ

23,222.0

24,516.1

131,427.3

106,911.2

-4,111.1

4,067.5

-1,250.5

26,951.4

33,667.7

142,086.3

108,418.6

-3,037.3

-2,479.2

-1,199.8

Ⅲ

28,246.3

31,319.2

133,550.1

102,230.9

-3,736.1

1,515.2

-852.0

Ⅳ

27,519.9

32,766.2

135,817.5

103,051.3

-4,032.3

468.9

-1,682.9

2016p Ⅰ Ⅱ

25,349.7

28,954.6

118,316.3

89,361.7

-3,917.8

1,197.7

-884.8

26,337.2

33,534.3

128,243.4

94,709.1

-3,910.7

-2,108.9

-1,177.5

Ⅲ

21,509.8

28,268.1

127,558.4

99,290.3

-5,660.0

1,262.5

-2,360.8

Ⅳ

25,480.7

29,688.7

137,658.0

107,969.3

-4,119.5

1,108.0

-1,196.5

2015 1

7,035.8

6,860.8

44,427.0

37,566.2

-1,913.6

2,711.9

-623.3

6,305.5

7,061.6

39,430.9

32,369.3

-1,658.4

1,130.2

-227.9

9,880.7

10,593.7

47,569.4

36,975.7

-539.1

225.4

-399.3

7,254.8

11,850.1

49,643.9

37,793.8

-861.6

-3,236.8

-496.9

8,136.1

8,868.3

43,406.2

34,537.9

-18.2

-270.3

-443.7

11,560.5

12,949.3

49,036.2

36,086.9

-2,157.5

1,027.9

-259.2

9,325.9

10,304.2

47,221.5

36,917.3

-1,502.5

712.7

-188.5

8,207.6

8,848.7

42,080.5

33,231.8

-982.4

460.6

-119.3

10,712.8

12,166.3

44,248.1

32,081.8

-1,251.2

341.9

-544.2

9,576.4

10,971.6

46,261.8

35,290.2

-1,490.5

533.0

-437.7

9,841.5

10,635.0

43,126.3

32,491.3

-1,219.4

612.0

-186.1

8,102.0

11,159.6

46,429.4

35,269.8

-1,322.4

-676.1

-1,059.1

2016p 1

7,183.0

8,186.1

37,340.3

29,154.2

-1,837.3

1,232.2

-398.0

7,619.7

7,926.2

36,291.5

28,365.3

-1,158.3

831.1

20.7

10,547.0

12,842.3

44,684.5

31,842.2

-922.2

-856.6

-507.5

Exports

Imports

82,781.0

618,156.9

88,885.4

613,020.6

105,939.6

122,269.2

2016p

98,677.4

2014 Ⅰ Ⅱ

3,756.4

9,847.8

40,434.3

30,586.5

-1,530.8

-4,057.1

-503.5

10,494.5

10,857.3

42,545.7

31,688.4

-1,071.5

858.5

-149.8

12,086.3

12,829.2

45,263.4

32,434.2

-1,308.4

1,089.7

-524.2

8,412.6

10,665.7

42,364.1

31,698.4

-1,583.4

-46.5

-623.2

5,030.1

6,940.1

41,281.3

34,341.2

-1,498.5

531.9

-943.4

8,067.1

10,662.3

43,913.0

33,250.7

-2,578.1

777.1

-794.2

8,719.3

9,830.2

43,339.0

33,508.8

-1,594.5

860.9

-377.3

8,892.2

10,425.1

46,365.8

35,940.7

-1,737.1

435.4

-231.2

7,869.2

9,433.4

47,953.2

38,519.8

-787.9

-188.3

-588.0

p: Preliminary Source: Bank of Korea

February 2017

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

Period

Financial account*

2013

80,104.6

2014

89,334.0

2015 2016p

Direct investment

Capital account

Portfolio investment

Financial derivatives

Other investment

Reserve assets

15,593.2

9,344.5

-4,410.3

43,281.1

16,296.1

18,765.6

30,608.9

-3,826.9

25,900.6

17,885.8

-8.9

106,299.2

19,656.3

49,529.8

1,791.3

23,269.2

12,052.6

-60.2

-27.0

100,385.6

16,447.6

66,333.6

-3,177.9

13,092.8

7,689.5

-36.6

2014 Ⅰ Ⅱ

15,120.7

2,367.1

12,614.4

-1,004.6

-5,879.9

7,023.7

-2.1

24,650.2

7,990.4

4,291.2

-1,983.9

3,182.9

11,169.6

-4.3

Ⅲ

21,230.4

2,952.8

4,292.1

-1,649.7

9,803.2

5,832.0

3.6

Ⅳ

28,332.7

5,455.3

9,411.2

811.3

18,794.4

-6,139.5

-6.1

2015 Ⅰ Ⅱ

22,974.3

4,328.8

7,743.0

-726.3

4,518.7

7,110.1

-22.0

25,857.1

6,256.2

7,111.1

-759.5

5,947.4

7,301.9

-25.6

Ⅲ

29,806.1

3,695.1

15,559.7

4,731.1

10,106.9

-4,286.7

-26.2

Ⅳ

27,661.7

5,376.2

19,116.0

-1,454.0

2,696.2

1,927.3

13.6

2016p Ⅰ Ⅱ

28,794.3

5,266.0

16,887.9

2,724.0

5,202.7

-1,286.3

-11.6

19,126.9

1,893.5

13,426.6

-1,185.3

4,043.6

948.5

-7.0

Ⅲ

27,255.5

2,296.8

15,949.6

-3,798.1

5,850.2

6,957.0

11.0

Ⅳ

25,208.9

6,991.3

20,069.5

-918.5

-2,003.7

1,070.3

-29.0

2015 1

6,561.4

933.9

3,385.5

-310.7

-1,475.4

4,028.1

-13.0

6,015.2

1,186.6

3,030.3

-332.5

1,931.8

199.0

-1.7

10,397.7

2,208.3

1,327.2

-83.1

4,062.3

2,883.0

-7.3

9,207.3

1,267.5

107.2

-581.5

5,010.6

3,403.5

-8.7

7,148.8

375.4

353.1

-429.5

3,951.7

2,898.1

-1.6

9,501.0

4,613.3

6,650.8

251.5

-3,014.9

1,000.3

-15.3

10,175.7

-394.9

8,169.7

1,384.8

1,988.9

-972.8

-29.9

8,778.2

-280.6

2,395.5

1,616.5

8,928.5

-3,881.7

1.5

10,852.2

4,370.6

4,994.5

1,729.8

-810.5

567.8

2.2

11,148.7

3,452.7

7,118.3

-1,272.4

-379.6

2,229.7

-5.4

7,808.2

589.0

5,228.6

-600.1

978.0

1,612.7

18.8

8,704.8

1,334.5

6,769.1

418.5

2,097.8

-1,915.1

0.2

2016p 1

7,556.3

13.8

5,452.2

1,227.8

480.2

382.3

-6.1

9,199.0

1,645.1

5,861.0

756.6

2,502.0

-1,565.7

-2.3

12,039.0

3,607.1

5,574.4

739.6

2,220.5

-102.9

-3.2

713.3

-121.2

2,827.8

-1,043.5

-2,266.4

1,316.6

-5.0

9,092.9

698.1

4,547.3

-463.7

3,909.7

401.5

1.0

9,320.7

1,316.6

6,051.5

321.9

2,400.3

-769.6

-3.0

10,151.2

845.5

254.4

-471.8

7,556.3

1,966.8

2.7

7,521.4

431.6

6,712.4

-1,292.6

-1,419.0

3,089.0

17.1

9,582.9

1,019.7

8,982.8

-2,033.7

-287.1

1,901.2

-8.8

7,044.3

1,358.1

9,868.7

-740.5

-3,662.3

220.3

-9.6

8,898.8

657.7

6,968.2

100.4

1,689.6

-517.1

-34.9

9,265.8

4,975.5

3,232.6

-278.4

-31.0

1,367.1

15.5

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

Economic Bulletin

Statistical Appendices

13. Financial indicators (period average)

Yields (%) 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 9 10 11 12 2017 1 Source: Bank of Korea

Call rate (1 day)

CDs (91 days)

Treasury bonds (3 years)

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 1.2

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 1.5

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 1.6

Stock Treasury bonds (5 years)

Corporate bonds (3 years, AA-)

KOSPI (end-period)

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 1.8

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 2.1

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 2,067.57

February 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

120,691.4

16.8

636,639.0

18.6

2,182,911.9

8.6

2,986,699.4

9.7

2016

137,441.5

13.9

734,411.8

15.4

2,342,621.3

7.3

3,229,766.4

8.1

2014 1

98,541.6

14.8

515,742.5

10.9

1,937,045.6

5.2

2,635,100.1

6.7

100,547.9

13.2

518,475.5

9.8

1,954,340.7

5.2

2,647,674.0

6.4

100,624.0

12.4

520,299.0

10.1

1,964,954.0

5.5

2,659,443.2

6.4

98,898.5

12.7

518,809.3

9.1

1,970,361.6

5.5

2,669,341.4

6.2

101,791.4

13.5

523,069.9

10.0

1,982,390.9

6.0

2,684,643.9

6.6

101,412.3

11.2

532,041.2

9.3

1,999,376.3

6.1

2,703,088.1

6.7

101,164.2

11.6

534,028.8

9.2

2,013,935.1

6.5

2,725,737.6

6.9

107,682.4

14.9

538,640.3

11.9

2,031,777.2

7.6

2,743,972.5

7.3

105,354.1

10.7

548,550.8

11.8

2,037,600.8

7.1

2,759,390.8

7.1

107,117.5

14.4

551,416.0

12.1

2,051,149.8

7.5

2,776,968.0

7.3

106,667.9

13.9

562,006.2

12.6

2,083,253.5

8.3

2,817,698.0

8.1

110,175.6

13.6

577,721.1

13.4

2,088,729.8

8.1

2,834,968.4

8.2

2015 1

113,304.2

15.0

579,964.2

12.5

2,092,223.5

8.0

2,857,610.1

8.4

116,502.4

15.9

592,737.4

14.3

2,109,892.3

8.0

2,876,467.8

8.6

115,974.9

15.3

600,719.9

15.5

2,127,887.8

8.3

2,907,976.4

9.3

115,132.7

16.4

610,803.3

17.7

2,148,114.7

9.0

2,936,746.7

10.0

117,726.3

15.7

621,985.5

18.9

2,166,741.1

9.3

2,960,998.1

10.3

118,688.2

17.0

630,546.3

18.5

2,179,561.1

9.0

2,986,316.5

10.5

122,041.0

20.6

645,975.4

21.0

2,200,510.9

9.3

3,013,503.9

10.6

121,854.4

13.2

653,105.9

21.3

2,218,660.3

9.2

3,028,981.1

10.4

126,572.2

20.1

665,691.1

21.4

2,230,000.7

9.4

3,049,823.2

10.5

125,616.2

17.3

669,737.7

21.5

2,232,432.0

8.8

3,059,051.9

10.2

126,767.1

18.8

677,629.2

20.6

2,242,848.2

7.7

3,076,029.2

9.2

128,117.5

16.3

690,772.4

19.6

2,246,070.1

7.5

3,086,887.8

8.9

2016 1

131,279.3

15.9

699,767.3

20.7

2,261,356.4

8.1

3,110,535.8

8.9

134,913.0

15.8

708,014.0

19.4

2,285,313.5

8.3

3,133,492.2

8.9

132,957.9

14.6

713,861.2

18.8

2,294,544.7

7.8

3,158,687.8

8.6

135,038.9

17.3

720,818.5

18.0

2,299,081.3

7.0

3,170,277.9

8.0

135,971.3

15.5

722,544.4

16.2

2,312,801.2

6.7

3,189,899.3

7.7

135,758.4

14.4

730,637.8

15.9

2,334,256.2

7.1

3,223,154.5

7.9

135,906.7

11.4

735,172.2

13.8

2,352,245.1

6.9

3,242,338.3

7.6

139,073.9

14.1

738,120.9

13.0

2,377,323.1

7.2

3,270,365.6

8.0

142,079.6

12.3

751,408.5

12.9

2,383,040.5

6.9

3,288,026.0

7.8

141,103.5

12.3

753,367.3

12.5

2,391,059.2

7.1

3,305,950.4

8.1

141,757.2

11.8

762,639.7

12.5

2,406,393.5

7.3

3,328,489.7

8.2

143,458.7

12.0

776,589.6

12.4

2,414,040.9

7.5

3,335,979.6

8.1

Source: Bank of Korea

Economic Bulletin

Statistical Appendices

15. Exchange rates (end-period)

US $/\ Period

100ďżĽ/\

Won

y-o-y change (%)

2013

1,055.3

2014

1,099.2

2015

1,172.0

2016

1,208.5

2014 1 2

Euro/\ y-o-y change (%)

Won

y-o-y change (%)

Won

-1.5

1,004.7

-19.5

1,456.3

2.8

4.2

920.1

-8.4

1,336.5

-8.2

6.6

972.0

5.6

1,280.5

-4.2

3.1

1,036.8

6.7

1,267.6

-1.0

1,079.2

-0.3

1,043.7

-12.2

1,473.6

0.3

1,067.7

-1.6

1,044.8

-11.2

1,463.6

2.7

1,068.8

-3.9

1,038.7

-12.0

1,469.4

3.1

1,031.7

-6.9

1,005.3

-11.2

1,425.0

-1.8

1,021.6

-9.5

1,004.2

-10.1

1,389.6

-5.6

1,014.4

-11.8

1,000.0

-14.3

1,384.2

-7.6

1,024.3

-8.0

995.7

-12.3

1,371.8

-7.1

1,013.6

-8.8

977.6

-13.4

1,336.2

-9.1

1,050.6

-2.3

960.2

-12.6

1,333.3

-8.1

1,054.0

-0.7

964.1

-10.5

1,328.8

-8.8

1,101.1

3.7

933.9

-10.0

1,372.2

-5.0

1,099.2

4.2

920.1

-8.4

1,336.5

-8.2

2015 1

1,090.8

1.1

921.4

-11.7

1,235.7

-16.1

1,099.2

3.0

920.7

-11.9

1,230.7

-15.9

1,105.0

3.4

920.3

-11.4

1,196.8

-18.6

1,068.1

3.5

897.2

-10.8

1,187.0

-16.7

1,108.0

8.5

894.6

-10.9

1,215.2

-12.6

1,124.1

10.8

917.2

-8.3

1,260.5

-8.9

1,166.3

13.9

939.3

-5.7

1,275.4

-7.0

1,176.3

16.1

970.1

-0.8

1,317.3

-1.4

1,194.5

13.7

996.8

3.8

1,343.9

0.8

1,142.3

8.4

944.1

-2.1

1,254.8

-5.6

1,150.4

4.5

936.7

0.3

1,218.3

-11.2

1,172.0

6.6

972.0

5.6

1,280.5

-4.2

2016 1

1,208.4

10.8

1,017.1

10.4

1,322.2

7.0

1,235.4

12.4

1,085.8

17.9

1,348.3

9.6

1,153.5

4.4

1,026.0

11.5

1,307.4

9.2

1,143.9

7.1

1,058.2

17.9

1,298.4

9.4

1,190.6

7.5

1,072.8

19.9

1,326.8

9.2

1,164.7

3.6

1,132.2

23.4

1,295.5

2.8

1,125.7

-3.5

1,073.7

14.3

1,246.7

-2.3

1,118.5

-4.9

1,086.3

12.0

1,246.9

-5.3

1,096.3

-8.2

1,083.7

8.7

1,230.3

-8.5

1,145.2

0.3

1,094.4

15.9

1,257.1

0.2

1,168.5

1.6

1,038.8

10.9

1,244.3

2.1

1,208.5

3.1

1,036.8

6.7

1,267.6

-1.0

2017 1

1,157.8

-4.2

1,017.9

0.1

1,239.5

-6.3

Source: Bank of Korea

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

February 2017

ECONOMIC BULLETIN (Republic of Korea)

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