201709 by KOCIS

Republic of Korea

Economic Bulletin

VOL.39 NO.9 SEPTEMBER 2017 eb.kdi.re.kr ISSN 2287-7266

The Green Book: Current Economic Trends Featured Issue President Moon Jae-in had Talks with Global Investors and Business Leaders in New York

Policy Issue 2018 Budget Proposal

Economic News BrieďŹ ng 16th Meeting of Korea-Russia Economic Cooperation Commission Discusses Far East Development External Debt Rises to US $407.3 Billion in Q2 2017 Korea Grows 0.6% in Q2 2017

Statistical Appendices

Kkotgama The kkotgama is a traditional four-bearer palanquin in which brides rode to their groomâ&#x20AC;&#x2122;s home after the wedding ceremony, usually taking place at the brideâ&#x20AC;&#x2122;s house. Grooms either rode on horseback or in a separate, less decorative palanquin to their way home with the bride.

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

Featured Issue President Moon Jae-in had talks with global investors and business leaders in New York

45 50

Policy Issue 2018 budget proposal

Editor-in-Chief Kim Joo-Hoon (KDI) Jung Moo-Kyung (MOSF)

Economic News Briefing

Editorial Board Lee Young-Joo (MOSF) Lee Jae-Yeal (KDI) Yu Seong-Im (KDI)

16th meeting of Korea-Russia Economic Cooperation Commission discusses Far East development External debt rises to US $407.3 billion in Q2 2017 Korea grows 0.6% in Q2 2017 (preliminary)

53 Statistical Appendices

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

September 2017

OVERVIEW The Korean economy has not yet gained momentum: Facility investment falters although all industry production increased for the first time in four months backed by strong exports. The economy added 313,000 jobs year-on-year in July, partly due to a low base effect in the manufacturing sector. Job growth in the construction sector slowed down. Consumer prices in August rose at a faster pace compared with the previous month (up 2.2% → up 2.6%, y-o-y) due to high vegetable prices and a low base effect from a year ago when electricity rates were temporarily cut for the summer. Mining and manufacturing production rebounded in July (down 0.5% → up 1.9%, m-o-m) due to strong automobiles and electronic parts, and service output rose (up 0.6% → up 0.6%, m-o-m) for two months in a row as wholesale & retail improved. Retail sales continued to rise in July backed by the release of new smartphone models, but growth decelerated (up 1.2% → up 0.2%, m-o-m). Facility investment in July fell (up 4.8% → down 5.1%, m-o-m) due to a high base effect from the previous month when investment in semiconductor manufacturing equipment jumped. Construction investment improved (down 0.4% → up 3.6%, m-o-m) after falling for three months in a row. In July, the cyclical indicator of the coincident composite index stayed unchanged from the previous month at 100.7, and the cyclical indicator of the leading composite index rose 0.2 points to 101.7. Exports increased for the 10th consecutive month in August (up 19.5% → up 17.4%, y-o-y) as major export items continued to be strong, such as semiconductors, petroleum products and petrochemicals. In August, KOSPI fell and the dollar-won exchange rate rose amid increasing North related risks and profit taking in the stock market. Government bond yields increased. Housing prices continued to rise in August (up 0.18% → up 0.25%, m-o-m) due to a price surge in the Seoul metropolitan area, and Jeonse (lump sum deposits with no monthly payments) prices rose modestly (up 0.06% → up 0.08%, m-o-m).

The economy is expected to stay on a recovery path given strong exports and supplementary budget implementation. However, internal and external risks linger, such as trade issues, strikes in the auto industry and North related problems.

Economic Bulletin

The Green Book

The government will strengthen its risk management, and will work to successfully carry out the new administration’s economic policies and implement supplementary budgets as planned to create decent jobs and boost the real economy.

1. External economic situation The global economy has been on a recovery path as growth continues in both developed and emerging countries. However there are risks arising from the spread of protectionism and uncertainties as to US policies.

US The US economy grew modestly as industrial production and retail sales increased. However, job market indicators showed signs of a slowdown in August. Industrial production rose 0.2 percent month-on-month in July, falling below the market expectations of a 0.3 percent increase, due to a drop in automobile production (down 3.6%, m-o-m). However, the ISM Manufacturing Index edged up in August. ISM Manufacturing Index (base=50)

54.5 (Dec 2016) → 56.0 (Jan 2017) → 57.7 (Feb) → 57.2 (Mar) → 54.8 (Apr) → 54.9 (May) → 57.8 (Jun) → 56.3 (Jul) → 58.8 (Aug)

US GDP growth and industrial production (%)

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

GDP (q-o-q, annualized rate) Industrial production (q-o-q)

- 10

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

2017.Q1

September 2017

Retail sales in July posted the largest growth in seven months, rising 0.6 percent month-on-month, due to an increase in automobile sales (up 1.2%, m-o-m). Consumer confidence in August rose for the second straight month. Conference Board Consumer Confidence Index (1985=100)

111.6 (Jan 2017) →116.1 (Feb) → 124.9 (Mar) → 119.4 (Apr) → 117.6 (May) → 117.3 (Jun) → 120.0 (Jul) → 122.9 (Aug)

Existing home sales dropped (down 1.3%, m-o-m) for the second consecutive month in July to an annual rate of 5,440,000 homes. New home sales also fell 9.4 percent to an annual rate of 570,000 units. Case-Shiller Home Price Index (y-o-y, %)

5.0 (Oct 2016) → 5.2 (Nov) → 5.4 (Dec) → 5.7 (Jan 2017) → 5.9 (Feb) → 5.9 (Mar) → 5.8 (Apr) → 5.7 (May) → 5.7 (Jun)

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

1.2 (Oct 2016) → 0.3 (Nov) → -5.4 (Dec) → 9.3 (Jan 2017) → 2.7 (Feb) → 3.7 (Mar) → -7.5 (Apr) → 4.7 (May) → 1.9 (Jun) → -9.4 (Jul)

In August, nonfarm payrolls added 156,000 new jobs, falling short of the market expectations of 180,000 new jobs, due to a slowdown in the service sector employment. The unemployment rate edged up 0.1 percentage points from the previous month. Labor force participation rate (%)

62.7 (Dec 2016) → 62.9 (Jan 2017) → 63.0 (Feb) → 63.0 (Mar) → 62.9 (Apr) → 62.7 (May) → 62.8 (Jun) → 62.9 (Jul) → 62.9 (Aug)

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

216 (Jan 2017) → 232 (Feb) → 50 (Mar) → 207 (Apr) → 145 (May) → 210 (Jun) → 189 (Jul) → 156 (Aug)

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

Source: US Department of Labor

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Economic Bulletin

The Green Book

(Percentage change from previous period)

2014 2015

2016

Annual Annual Annual Q2

2017 Q4

Q2 Jun Jul Aug

Real GDP1

2.6

2.9

1.5

2.2 2.8 1.8 1.2 3.0

- Personal consumption expenditures

2.9

3.6

2.7

3.8 2.8 2.9 1.9 2.8

- Nonresidential fixed investment

6.2

2.3

-0.6

3.3 3.4 0.2 7.2 5.2

- Residential fixed investment

3.5

10.2

5.5

-4.7 -4.5 7.1 11.1 -6.8

Industrial production

3.1

0.7

-1.2 -0.2 0.2 0.2 0.4 1.3 0.4 0.2

Retail sales

4.1

2.3

3.0

1.5 0.9 1.6 1.0 0.4 0.3 0.6

Existing home sales

-3.1

6.3

3.9

2.2 -1.8 3.1 1.3 -1.0 -2.0 -1.3

Unemployment rate

6.2

5.3

4.9

4.9 4.9 4.7 4.7 4.4 4.4 4.3 4.4

Consumer prices (y-o-y)

1.6

0.1

1.3

1.1 1.1 1.8 2.6 1.9 1.6 1.7

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

China Chinaâ&#x20AC;&#x2122;s economy grew 6.9 percent year-on-year in the second quarter of 2017, backed by improving consumption and exports.

Chinaâ&#x20AC;&#x2122;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

Source: China National Bureau of Statistics

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

September 2017

(Percentage change from same period in previous year)

2014 2015

2016

Annual Annual Annual Q1

2017

May

Jun

Jul

Real GDP

7.3

6.9

6.7

6.8

6.9

Industrial production

8.3

6.1

6.0

5.8

6.1

6.2

6.1

6.8

6.9

6.5

7.6

6.4

8.1 10.7

9.0

8.2

8.1

9.2

8.7

8.6

8.3

Fixed asset investment 15.7 10.0 (accumulated, nominal) Retail sales (nominal) Exports

12.0 10.7 10.4 10.5 10.2 10.5 10.6 10.9 10.7 10.7 6.0

-3.0

-7.7 -11.9

-6.3

11.0 10.4

-6.9

-5.2

7.1

9.0

8.3 11.3

7.2

Consumer prices

2.0

1.4

2.0

2.1

1.7

2.2

1.4

1.5

1.4

Producer prices

-1.9

-5.2

-1.3

-4.8

-2.9

-0.8

3.3

7.4

5.8

5.5

Source: China National Bureau of Statistics

Japan Japan’s economy grew 1.0 percent quarter-on-quarter in the second quarter of 2017, expanding for a sixth straight quarter for the first time in 11 years, as consumption, investment and exports had all been strong. Core consumer prices (excluding fresh food, y-o-y, %)

0.1 (Jan 2017) → 0.2 (Feb) → 0.2 (Mar) → 0.3 (Apr) → 0.4 (May) → 0.4 (Jun) → 0.4 (Jul)

Japan’s GDP growth and industrial production (%)

(%)

25 20

15 10

5 0

-5 -2

- 10 - 15

-4

- 20

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

-6

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.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

2016

Annual Annual Annual

2017

May Jun

Jul

Real GDP

0.3

1.2

1.0

0.6

0.3

0.4

1.0

Industrial production

2.1

-1.2

-0.2

-0.9

0.2

1.6

1.9

0.2

Retail sales (nominal)

1.6

-0.3

-0.7

-1.3

0.0

0.5

1.5 -0.2

Exports (y-o-y)

4.8

3.4

-7.4

-7.9

-9.5 -10.2 -1.9

8.5 10.5 14.9

9.7 13.4

Consumer prices (y-o-y)

2.7

0.8

-0.1

0.0

-0.4

0.3

0.4

-0.5

0.3

2.1 -3.3

1.6

-0.8

0.7 -1.5

0.2

1.1

0.4

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

Eurozone The eurozone economy continued to grow modestly, and retail sales have been improving. The manufacturing PMI rose to a 76-month high in August. Manufacturing PMI

53.7 (Nov 2016) → 54.9 (Dec) → 55.2 (Jan 2017) → 55.4 (Feb) → 56.2 (Mar) → 56.7 (Apr) → 57.0 (May) → 57.4 (Jun) → 56.6 (Jul) → 57.4 (Aug)

Eurozone Economic Sentiment Indicator

107.8 (Dec 2016) → 107.9 (Jan 2017) → 108.0 (Feb) → 108.0 (Mar) → 109.7 (Apr) → 109.2 (May) → 111.1 (Jun) → 111.2 (Jul) → 111.9 (Aug)

Eurozone’s GDP growth and industrial production (%)

(%)

6 4

2 0

-2 -1

-4 -6

-2

-8 -3

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

-4

2008.Q1 Source: Eurostat2009.Q1

Source: Eurostat

- 10 2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

- 12

September 2017

(Percentage change from previous period)

2014 2015

2016

Annual Annual Annual

2017

Jun

Jul

Aug -

Real GDP

1.2

2.0

1.7

0.3

0.4

0.6

0.5

0.6

Industrial production

0.8

2.1

1.4

-0.1

0.3

1.1

0.1

1.2

-0.6

Retail sales

1.2

2.6

1.4

0.2

0.5

0.8

0.4

0.9

0.5

Exports (y-o-y)

2.2

5.3

0.3

-0.2

2.3

10.9

5.2

3.9

Consumer prices (y-o-y)

0.4

0.0

0.2

-0.1

0.3

0.5

1.8

1.5

1.3

1.5

Sources: Eurostat, Bloomberg

2. Private consumption Private consumption (preliminary GDP) in the second quarter of 2017 rose 1.0 percent compared to the previous quarter and 2.3 percent compared to a year ago. (Percentage change from previous period)

2014

2015

Annual Annual

Private consumption² (y-o-y)

1.7

2.2

2016 Q3

2017

Q4 Annual¹ Q1¹ Q2¹ Q3¹ Q4¹ Q1¹ Q2¹

0.9 -0.3

1.3

1.5

2.5

-0.1

0.8

0.6

0.2

0.4

1.0

1.5

2.2

3.4

2.3

3.5

2.7

1.5

2.0

2.3

1.7

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

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

Private consumption (y-o-y) Private consumption (q-o-q)

-6 2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

Source: Bank of Korea (national accounts)

Retail sales in July rose 0.2 percent month-on-month. Sales of semi-durable goods (down 0.2%) and nondurable goods (down 0.6%) slipped, but durable goods sales (up 1.5%) picked up. Year-on-year, the index rose 3.5 percent.

Economic Bulletin

The Green Book

(Percentage change from previous period)

2014

2015

Annual Annual

Retail sales

2016

2017

Annual

Q2¹

Jun¹

Jul¹

1.1

2.9

-0.2

2.0

-1.2

2.1

1.2

0.2

2.0

4.1

3.5

6.3

4.3

5.0

5.9

3.5

2.5

1.7

1.1

3.5

- Durable goods

5.1 10.0

2.9

6.6

4.5

-4.0

5.1

-5.8

5.6

5.3

-0.8

1.5

· Automobiles

16.4 21.2

2.5 -10.0 13.9 -20.0 18.4

4.1

3.7 -10.1

(y-o-y) 2

2.7 10.6

- Semi-durable goods3 -0.8

-1.1

0.8

3.5

2.5

-0.9

1.1

0.1

0.0

-0.9

2.4

-0.2

- Nondurable goods4

3.1

0.3

0.5

4.7

2.5

0.6

1.1

1.0

-0.3

2.1

-0.6

1.6

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

Retail sales (%)

-5

Retail sales (y-o-y)

-10

Retail sales (m-o-m)

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

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)

September 2017

Retail sales will be affected by both positive and negative indicators in August: Domestic sales of cars increased, but sales at department stores and large discount stores declined along with the domestic sales of gasoline. 2017 Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

17.1

11.5

13.7

3.8

1.9

5.6

4.2

0.3

4.3

-1.1

1.7

0.5

-2.8

0.8

0.1

-1.0

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

13.4

-14.6

3.2

6.8

3.8

1.6

1.0

-1.6

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

-7.3

0.2

4.8

-2.7

6.3

9.7

13.7

-6.1

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

1.1

6.2

-2.6

-6.3

-9.0

-14.8

9.8

11.7

93.3

94.4

96.7

101.2

108.0

111.1

111.2

109.9

8.3

8.1

-40.0

-66.6

-64.1

-66.4

-69.3 -59.3ยน

Credit card use (y-o-y, %) Department store sales (y-o-y, %)

Consumer sentiment index Number of Chinese tourists (y-o-y, %)

1. Advanced estimates based on all Chinese entries, which can be different from the statistic released by the Ministry of Culture, Sports and Tourism as it excludes diplomatic and military personnel Sources: Bank of Korea, Credit Finance Association of Korea, Korea National Oil Corporation, Korea Automobile Manufacturers Association, data provided by retail industries

3. Facility investment Facility investment (preliminary GDP) in the second quarter of 2017 rose 5.2 percent quarter-on-quarter and 17.3 percent year-on-year.

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

Facility investment (y-o-y) -30

Facility investment (q-o-q)

2008.Q1

2009.Q1

2010.Q1

2011.Q1

Source: Bank of Korea (national accounts)

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

Economic Bulletin

The Green Book

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

40 30 20 10

0 -10 -20

Machinery Transportation equipment

-30

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

Source: Bank of Korea (national accounts)

(Percentage change from previous period)

2015 Annual Q1

Facility investment² (y-o-y) - Machinery

2016

2017

Q4 Annual¹ Q1¹

Q2¹

Q3¹

Q4¹

Q1¹

Q2¹

4.7

0.3

0.8

1.9

0.0 -2.3 -7.0

2.6

0.9

5.9

4.4

5.2

5.4

-4.6 -2.9

-3.9

2.0 14.4 17.3

6.8

7.5

2.9

- Transportation equipment 8.7

4.3

6.0

3.1

0.2 -2.0

0.4

-2.7 -2.4 -7.2

2.8

0.7

5.0

5.6 -2.0 -6.8

2.2 -10.2

7.2

6.4

3.7

2.5 -0.5

8.7

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

The facility investment index in July fell 5.1 percent month-on-month as both machinery and transportation equipment investment decreased. The index increased 25.0 percent year-on-year. (Percentage change from previous period)

2015

2016

Annual Annual

2017 Q3

Q2¹

May Jun¹

Jul¹

5.6

4.4

2.2

4.8 -5.1

18.1 17.7

20.0

18.5 25.0

Facility investment index

6.9

-1.3

-6.5

5.1

-1.9

8.0

(y-o-y)

-7.6

0.6

-4.7

5.9

- Machinery

3.6

-2.2

-4.7

1.2

7.1

6.8

7.4

8.6

10.6

3.2 -6.1

- Transportation equipment 15.0

0.9

-8.7

11.8 -18.9

10.8

2.0

-5.8 -17.5

8.6 -2.2

1. Preliminary Source: Statistics Korea

The facility investment outlook is mixed: Domestic machinery orders, capacity utilization rates and machinery imports increased, but facility investment pressure fell.

September 2017

BSI in the manufacturing sector (base=100, Bank of Korea)

72 (Dec 2016) → 71 (Jan 2017) → 76 (Feb) → 81 (Mar) → 82 (Apr) → 84 (May) → 84 (Jun) → 80 (Jul) → 78 (Aug) → 83 (Sep) (Percentage change from same period in previous year)

2015

2016

Annual Annual Q1

3.8 -0.6

-3.0

3.3 16.0 29.0 31.6 23.0 28.0 40.8

7.4 -6.2 26.4

0.9 10.8 -13.5 24.6 -8.5

-61.7 48.0 56.9 15.7 17.7 87.1

8.2 -4.9 -30.9 -13.5 460.5

Domestic machinery orders

-3.9

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

- Public

2017

-8.3

Q2¹ May Jun¹ Jul¹

- Private

9.6

2.2

8.4 31.3 35.0 27.6 31.6 29.8

Machinery imports

0.3 -2.5 -13.0 -6.7 -2.2

5.9 24.1 23.4 21.8 20.0 31.1

0.2 -4.5

-4.4

Average manufacturing operation ratio (%) 74.5 72.6 73.4 72.8 71.9 72.4 72.8 71.5 71.5 71.2 73.4 Facility investment adjustment pressure²

-1.2

0.2 -0.8

0.5 -0.4

1.3

2.3 -0.5 -0.9 -1.3 -0.7

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

Leading indicators of facility investment (trillion won)

(y-o-y, %)

9 40

8 7

6 0

5 4

- 20

Machinery orders (left) Machinery imports (right)

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

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

2017.Q1

- 40

Economic Bulletin

The Green Book

4. Construction investment Construction investment (preliminary GDP) in the second quarter of 2017 rose 0.3 percent quarter-on-quarter and 8.0 percent year-on-year. (Percentage change from previous period)

2015 Q1

2017

2016

Q4 Annual¹ Q1¹

Q2¹

Q3¹

Q4¹

Q1¹

Q2¹

Construction investment²

9.0

1.4

2.1

-2.2

10.7

7.6

3.1

2.2

-1.2

6.8

0.3

(y-o-y)

4.0

4.6

7.6

9.6

9.0

10.6

11.2

11.6

11.2

8.0

- Building construction - Civil engineering works 1. Preliminary

6.4

3.3

5.9

0.6

17.3

6.0

4.9

4.1

1.7

4.9

2.4

14.0

-2.2

-5.1

-8.0

-2.8

11.3

-1.1

-2.3

-8.5

12.2

-5.4

2. National accounts

Source: Bank of Korea

Construction investment (%)

-5

Construction investment (y-o-y)

-10

Construction investment (q-o-q)

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.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 Civil engineering works

-30

2008.Q1

2009.Q1

2010.Q1

2011.Q1

Source: Bank of Korea (national accounts)

2012.Q1

September 2017

The value of construction completed (constant) in July rose 3.6 percent monthon-month as both building construction and civil engineering works increased. The index rose 14.1 percent year-on-year. (Percentage change from previous period)

2016

2015 Annual Annual Q1

Construction completed (constant) 5.0 15.4 (y-o-y)

6.2

2017

Q2¹

May Jun¹ Jul¹

2.3

4.2

4.1

5.9

-1.0

-1.7

-0.4

13.2 15.8 14.5 17.7 17.9 13.7 14.9

3.6

8.7 14.1

- Building construction

7.3 25.7

8.2

4.7

5.7

6.9

7.0

1.6

-3.3

0.7

4.5

- Civil engineering works

1.2

2.4

-2.5

0.9

-2.4

3.1

-9.9

3.0

-3.4

1.2

1. Preliminary

-2.6

Source: Statistics Korea

The construction investment outlook is mixed: Increased apartment presales in 2016 are a positive factor, but both construction orders received and building permits declined. Apartment presales (thousands, monthly average of the quarter, Real Estate 114) 18 (Q1 2016) → 43 (Q2) → 32 (Q3) → 57 (Q4) → 19 (Q1 2017) → 27 (Q2) → 23 (Aug)

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

150

100

-50

Construction orders Building permit area

-100

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

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

2015

2016

Annual Annual Q1

2017

1.3 26.0

Construction orders received 48.4 (current value)

8.4

13.9

-6.7

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

16.3

-8.4 27.2 -11.0 1.7

- Building construction

50.5 14.5

13.5

- Civil engineering works

42.6

-9.4

15.1 -32.4

Building permits²

34.3

-5.7

19.7

1. Preliminary

2. Floor area

3.6 17.2 2.0

3.6 39.7 -5.0 -6.4

Q2¹

18.3

7.7 -7.8

12.2

Jul¹

1.6 -30.8

1.6 -26.7 -18.4

-6.8 31.0 60.7

5.3 -24.8 -11.1 -5.0

May Jun¹

-0.1

-7.4 -29.3

43.2 40.5 -37.0 -6.4

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

-4.7 -20.6

Economic Bulletin

The Green Book

5. Exports and imports Exports (preliminary) increased 17.4 percent year-on-year to US $47.12 billion in August. Exports posted double-digit growth for the eighth month in a row, backed by strong major export items. By item, semiconductors, petroleum products and petrochemicals surged, while mobile phones fell. By region, shipments to the EU, the ASEAN countries and the US increased. Export growth by item (y-o-y, %)

56.8 (semiconductors), 36.1 (petroleum products), 23.6 (automobiles), 18.8 (petrochemicals), 13.8 (steel), -23.3 (mobile phones), -25.8 (vessels)

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

43.2 (EU), 32.6 (CIS countries), 23.4 (ASEAN countries), 23.2 (US), 16.5 (Latin America), 15.6 (China), 5.5 (Japan), 1.1 (Middle East)

Average daily exports, an indicator adjusted to days worked, decreased monthon-month to US $1.96 billion. Average daily exports (US $ billion)

1.96 (Feb 2017) → 2.03 (Mar) → 2.26 (Apr) → 2.14 (May) → 2.23 (Jun) → 2.08 (Jul) → 1.96 (Aug)

Exports by item (y-o-y, %) 140 120 100 80 60 40 20 0

Export growth rate Semiconductors Automobiles Steel

-20 -40 -60 -80

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 2015

2016

Annual Annual Annual

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

2017 Q3

Aug

Jul

Aug¹

572.66 526.76 495.43 115.19 126.02 121.85 132.36 40.12 132.10 147.20 48.84 47.12 2.3

-8.0

-5.9 -13.7

-6.7

-5.0

1.8

2.6

14.7

16.8

19.5

17.4

2.11

1.93

1.81

1.88

1.78

1.86

1.67

1.96

2.21

2.08

1.96

1. Preliminary Source: Korea Customs Service

1.73

September 2017

Imports (preliminary) in August rose 14.2 percent year-on-year to US $40.10 billion. Commodities imports grew faster, while capital and consumer goods imports rose at a slower pace. Import growth by category (y-o-y, %, Jul → Aug)

10.7 → 15.7 (commodities), 19.3 → 12.1 (capital goods), 21.8 → 14.8 (consumer goods)

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

100 80 60 40 20

0 -20

Import growth rate

-40

Commodities

-60

Capital goods

-80

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 2015

2016

Annual Annual Annual

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

2017 Q3

Aug

Jul

Aug¹

525.51 436.50 406.19 93.83 99.30 102.46 110.59 35.10 116.25 117.34 38.56 40.10 1.9 -16.9 1.94

1.60

-6.9 -16.0 -10.1

-5.1

4.1

1.0

23.9

18.2

15.5

14.2

1.49

1.50

1.56

1.46

1.72

1.76

1.64

1.67

1.41

1.48

1. Preliminary Source: Korea Customs Service

The trade balance (preliminary) posted a surplus of US $7.01 billion in August, staying in the black for the 67th consecutive month. Surpluses decreased compared with the previous month. (US $ billion)

2014 2015 Annual Annual Annual

2016 Q1

2017 Q4

Trade balance 47.15 90.26 89.23 21.36 26.72 19.39 21.77 1. Preliminary Source: Korea Customs Service

Aug

Jul

Aug¹

5.02 15.86 11.74 10.29 7.01

Economic Bulletin

The Green Book

6. Mining and manufacturing production Mining and manufacturing production rose 1.9 percent month-on-month in July due to strong automobiles and electronic parts. Other transportation equipment and processed metals fell. The index increased 0.1 percent year-on-year. Compared to the previous month, production of automobiles (up 6.5%), electronic parts (up 9.4%) and refined petroleum (up 9.7%) rose, while other transportation equipment (down 7.2%), processed metals (down 4.2%) and electrical equipment (down 3.9%) fell. Compared to a year ago, production of mechanical equipment (up 17.6%), electronic parts (up 10.7%) and refined petroleum (up 8.0%) rose, while semiconductors (down 13.0%), other transportation equipment (down 17.9%) and processed metals (down 8.2%) declined.

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

Industrial production (y-o-y) Industrial production (m-o-m)

-30

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Source: Statistics Korea (industrial activity trends)

The manufacturing inventory-shipment ratio rose 0.3 percentage points month-on-month to 118.7 percent as inventories rose 0.8 percent and shipments increased 0.6 percent. Inventories of semiconductors (up 7.9%), primary metals (up 2.0%) and electronic parts (up 5.8%) rose, while refined petroleum (down 7.4%), electrical equipment (down 3.6%) and food (down 3.1%) declined. Shipments of refined petroleum (up 7.4%), automobiles (up 4.4%) and electronic parts (up 6.2%) rose, while semiconductors (down 7.0%), other transportation equipment (down 6.9%) and processed metals (down 4.0%) fell. The average operation ratio of the manufacturing sector improved 2.2 percentage points month-on-month to 73.4 percent. Mining and manufacturing for August is likely to improve given strong exports and IT sectors, but there are uncertainties as to trade related issues, autoworker strikes and risks from the North.

September 2017

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

Shipment growth

-12

Inventory growth

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2014.1

2015.1

2016.1

2017.1

Source: Statistics Korea (industrial activity trends)

Average manufacturing operation ratio (%) 100

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

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

2016 Annual (q-o-q, m-o-m) Mining and manufacturing2 (y-o-y) 1.0 Production (q-o-q, m-o-m) 1.0 (y-o-y) 0.6 Shipment 1.3 -Domestic consumption Manufacturing -0.1 -Exports -5.9 Inventory3 72.6 Average operation ratio Production capacity (y-o-y) 0.8

2017

Jul

Q2ยน

May

Junยน

Julยน

1.4

1.1

1.6

-2.4

0.3

-0.5

1.9

0.7

1.5

3.7

0.5

0.3

-0.5

0.1

1.5

1.1

1.5

-2.5

0.2

-0.5

1.9

0.9

1.6

3.8

0.4

0.1

-0.7

-0.1

1.4

0.7

3.3

-0.4

-1.0

-0.2

0.5

0.8

-1.3

3.1

0.8

0.6

0.9

2.2

3.2

3.6

-1.6

-3.0

-1.0

0.0

-2.1

-5.0

-5.6

-1.9

1.1

-1.9

1.6

72.8

73.7

72.8

71.5

71.2

73.4

0.4

1.0

1.5

0.9

1.0

0.6

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

Economic Bulletin

The Green Book

7. Service sector activity Service output rose 0.6 percent in July, led by wholesale & retail and healthcare & social welfare services. Professional, scientific & technical services declined, along with hotels & restaurants. Compared to a year ago, service output rose 2.2 percent.

Service sector activity (%)

10 8 6 4 2 0 2

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

-4 2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Source: Statistics Korea (industrial activity trends)

(Percentage change from previous period)

Weight

2015 Annual Annual Q1

2017

2016 Q2

Q4 Q2ยน May Junยน Julยน

Service activity index

100.0 2.9 3.0 0.2 1.1 1.0 -0.3 0.6 -0.1 0.6 0.6

- Wholesale & retail

21.6

1.8 3.0 -0.4 1.5 -0.4 1.0 0.2 -1.4 0.5 1.0

- Transportation services

8.5

1.2 1.9 1.3 0.0 0.2 -3.2 0.3 0.0 1.1 0.9

- Hotels & restaurants

7.2 -2.0 -0.5 -0.4 -0.9 0.3 -3.1 -0.2 -0.4 -0.5 -0.2

- Publishing & communications services

8.4 -0.5 2.2 -0.3 1.0 -1.5 0.3 0.3 -2.8 3.4 0.5

- Financial & insurance services

14.7

9.1 5.9 2.1 1.4 2.9 -0.3 1.1 1.0 1.1 0.1

- Real estate & renting

5.3

8.4 2.3 -3.5 3.8 3.8 -1.3 3.0 0.4 2.0 2.5

- Professional, scientific & technical services

5.6 -0.3 -1.3 -2.6 1.0 -0.6 -0.3 0.5 3.6 -1.7 -2.6

- Business services

3.3

3.9 2.0 -0.7 -0.1 0.8 0.7 0.5 1.3 2.0 -0.2

- Education services

10.9

0.7 0.8 0.4 -0.4 0.6 -0.5 -0.8 -0.2 -0.1 0.8

- Healthcare & social welfare services

7.5

6.2 9.3 0.9 2.8 5.3 1.5 1.5 1.2 -0.8 1.3

- Entertainment & leisure

2.9

1.1 2.7 -1.6 2.7 -0.6 -1.1 2.7 -1.0 -2.0 0.6

- Membership organizations & personal services

3.6 -0.5 -0.9 2.0 -0.6 -1.2 -1.2 -0.6 0.3 0.0 1.0

- Sewerage & waste management

0.6

1. Preliminary Source: Statistics Korea

7.2 3.9 1.3 4.6 -2.2 0.9 -4.3 2.6 2.3 -0.5

September 2017

Wholesale & retail (%) 15

-5

Wholesale & retail (y-o-y)

-10

Wholesale & retail (m-o-m)

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Source: Statistics Korea (industrial activity trends)

July 2017 service output by business (y-o-y, %) 8

Real estate & renting

6 4

Business services

Publishing & communications services

Total index

2 0

Transportation services Wholesale & retail

Financial & insurance services

-2 -4 -6

Sewerage & waste Entertainment & management leisure

Education services

Hotels & restaurants

Healthcare & social welfare services

Membership organizations & personal services

Professional, scientific & technical services

-8

Source: Statistics Korea (industrial activity trends)

Service output will continue to be strong as indicators, such as exports and domestic sales of cars, remain strong, but a decline in average daily stock transactions is a negative factor. 2017 Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

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

1.1

6.2

-2.6

-6.3

-9.0 -14.8

9.8

11.7

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

4.3

-1.1

1.7

0.5

-2.8

0.8

0.1

-1.0

13.4

-14.6

3.2

6.8

3.8

1.6

1.0

-1.6

Average daily stock transactions (trillion won)

7.0

7.3

8.0

9.0

9.9

8.4

7.6

Number of Chinese tourists (y-o-y, %)

8.3

8.1 -40.0 -66.6 -64.1 -66.4 -69.3 -59.3

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

Sources: Korea Automobile Manufacturers Association, Korea Exchange, data provided by retail industriess

Economic Bulletin

The Green Book

8. Employment The number of workers on payroll in July increased by 313,000 from a year earlier to 26,916,000, and the employment rate (aged 15-64) rose 0.5 percentage points to 67.2 percent. By industry, services and construction continued to lead employment growth. By employment status, permanent workers continued to grow, while temporary workers declined sharply. Self-employed workers increased for the 12th month in a row.

Number of persons employed and employment growth (thousands)

(millions)

1,000

800

600 25 400 24 200 23

Employment growth (y-o-y, left) Number of employed (seasonally adjusted, right)

-200 -400

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Source: Statistics Korea (employment trends)

Employment by industry (%)

100

Services Construction

7.1 7.0 7.0 6.9 7.0 7.1 7.0 6.8 6.8 6.9 7.0 7.0 7.0 7.1 7.1 7.1 7.3 7.4 7.2 7.3 7.3 7.4 7.5 7.4 7.3 17.2 17.2 17.2 17.4 17.3 17.6 17.9 17.9 17.5 17.3 17.1 16.9 16.8 16.7 16.7 16.7 16.7 17.0 17.2 17.3 16.9 16.7 16.7 16.8 16.8

Manufacturing Agriculture, forestry & fisheries

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 72.1 71.8 71.4 70.8 70.4 70.3 70.6

5.8 5.7 5.7 5.6 5.1 4.0 3.6 3.8 4.8 5.2 5.4 5.5 5.3 5.3 5.4 5.4 5.1 3.9 3.5 3.7 4.5 5.1 5.4 5.5 5.3

2015.7 8

11 12 2016.1 2

Source: Statistics Korea (employment trends)

10 11 12 2017.1 2

September 2017

Employment by status of workers (%)

100 4.7 4.6 4.6 4.6 4.4 3.9 3.7 3.8 4.2 4.3 4.4 4.4 4.4 4.5 4.5 4.5 4.4 3.8 3.7 3.8 4.0 4.3 4.3 4.4 4.3

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 21.3 21.4 21.4 21.3 21.2 21.2 21.2 80

6.1 5.9 5.9 5.8 5.7 5.9 5.7 5.5 5.3 5.5 5.4 5.7 5.8 5.5 5.5 5.6 5.8 5.8 5.7 5.5 5.4 5.7 5.9 5.9 5.8 60 19.7 19.5 19.7 19.8 20.2 19.8 19.3 19.2 19.4 19.5 19.7 19.7 19.8 19.6 19.4 19.3 19.4 19.1 18.4 18.3 18.6 18.8 18.9 19.0 18.9

Unpaid family workers

Self-employed workers Daily workers Temporary workers

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 50.9 51.0 50.6 49.9 49.7 49.6 49.7

2015.7 8

11 12 2016.1 2

12 2017.1 2

Permanent workers

Source: Statistics Korea (employment trends)

2015

2016

Annual Annual Q1

Number of employed (millions)

2017

Jul

Jun

Jul

25.94 26.24 25.55 26.39 26.55 26.45 26.60 25.92 26.75 26.86 26.92

Employment rate (%)

60.6 60.4 59.1 60.8 61.1 60.7 61.2 59.4 61.2 61.4 61.5

(Seasonally adjusted)

60.3 60.4 60.5 60.1 60.5 60.6 60.3 60.8 60.6 60.5 60.6

- 15 to 64

65.7 66.1 65.1 66.2 66.5 66.5 66.7 65.7 66.9 67.0 67.2

Employment growth (y-o-y, thousands)

337 299 287 289 318 302 298 360 367 301 313

(Excluding agriculture, forestry & fisheries) 444 358 341 375 399 315 410 385 363 280 288 - Manufacturing - Construction

156 27

-5 126

-71 -110

-28

-7

-65 -112

-23

1 131 157 149 101

- Services

250 338 216 360 430 350 465 365 228 115 140

- Agriculture, forestry & fisheries

-107

- Wage workers

487 317 427 392 283 164 356 198 301 258 270

路 Permanent workers 路 Temporary workers 路 Daily workers - Nonwage workers 路 Self-employed workers

-59

-54

-86

-81

-13 -111

-25

432 386 505 457 316 266 364 322 338 316 388 54

15 120

45 -106

70 -149 -125 -116 -162

-88

-93 -185

-78

-151 -89

-18 -140 -103 7

-96

-68

35 138

-58 163

52 140

-10 170

- Male

132 151 107 124 183 189 163 174 166 130 131

- Female

205 148 180 165 134 113 136 186 201 171 181

- 15 to 29

-34

-16

- 30 to 39

-38

-36

-21

-23

-53

-45

-56

-30

-4

- 40 to 49

-14

-29

-41

-16

-63

-9

-39

-50

-37

-48

- 50 to 59

149

90 114

- 60 and above

172 223 179 189 236 289 230 257 265 261 229

Source: Statistics Korea

45 162 141 115 145

Economic Bulletin

The Green Book

The number of unemployed persons in July was down by 11,000 from a year earlier to 963,000, and the unemployment rate remained unchanged year-on-year at 3.5 percent. The unemployment rate rose in the groups of those aged 15 to 29 and those aged 60 and above.

Unemployment rate (%)

Original data

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Seasonally adjusted rate

Source: Statistics Korea (employment trends)

2016

2015 Annual Annual

Number of unemployed (thousands)

2017

Jul

985

881

975 1,167 1,082 1,069

963

-14

-24

-11

976 1,012 1,153 1,028

Jun

Jul

Unemployment growth (y-o-y, thousands)

- Male

-1

-15

-24

- Female

-24

-27

Unemployment rate (%)

3.6

3.7

4.3

3.8

3.6

3.2

3.5

4.3

3.9

3.8

3.5

(Seasonally adjusted)

3.6

3.7

3.8

3.7

3.8

3.6

3.8

3.6

- 15 to 29

9.2

9.8

11.3

10.3

9.3

8.4

9.2

10.8

10.4

10.5

9.3

- 30 to 39

3.1

3.2

3.1

3.2

3.6

3.5

3.2

3.0

- 40 to 49

2.3

2.1

2.4

2.1

1.9

2.0

2.4

2.1

1.9

- 50 to 59

2.4

2.3

2.6

2.3

2.0

2.4

2.2

2.4

2.5

2.2

- 60 and above

2.5

2.6

4.2

2.2

2.3

2.1

4.8

2.3

Source: Statistics Korea

September 2017

The economically inactive population in July increased 33,000 from a year earlier to 15,897,000, and the labor force participation rate rose 0.2 percentage points to 63.7 percent. The number of persons economically inactive due to old age (up 100,000) and rest (up 84,000) increased, and those due to childcare (down 101,000) and education (down 79,000) decreased.

Labor force participation rate (%) 65

64 63 62 61 60

Original data Seasonally adjusted rate

59 58 57

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Source: Statistics Korea (employment trends)

2016

2015 Annual Annual

Economically inactive population (millions)

2017

Jul

Jun

Jul

16.11 16.17 16.57 15.97 15.93 16.21 15.86 16.55 15.90 15.83 15.90

Labor force participation 62.6 rate (%)

62.8

61.7

63.2

63.4

62.8

63.5

62.1

63.7

63.8

63.7

(Seasonally adjusted)

62.6

62.8

62.4

62.9

62.5

63.2

63.0

62.9

62.8

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

128

135

113

-17

-74

-24

-79

-115

-105

-63

-36

-71

-83

-87

-109

-101

- Childcare - Housework

-45

-6

- Education

-146

-96

-108

-89

-116

-71

-107

-56

-120

-88

-79

- Old age

109

117

161

109

113

100

- Rest

141

-19

-76

Source: Statistics Korea

Economic Bulletin

The Green Book

9. Financial markets 9.1 Stock market KOSPI fell 1.6 percent in August from 2,402.71 points to 2,363.19 points, and KOSDAQ rose 1.1 percent from 650.47 points to 657.83 points. KOSPI declined as investors withdrew returns following a strong rally and as North related risks heightened, but pared losses later in the month as the risks receded. KOSPI (points)

2,422.96 (Aug 1, 2017) → 2,319.71 (Aug 11) → 2,355.00 (Aug 21) → 2,363.19 (Aug 31)

(Closing rate)

KOSPI

KOSDAQ

Jul 2017 Aug 2017

Stock price index (points) 2,402.71 2,363.19 Market capitalization (trillion won)

Change¹

Jul 2017 Aug 2017

Change¹

-39.52 (-1.6%)

650.47

657.83

+7.36 (+1.1%)

1,560.7

1,535.6

-25.1 (-1.6%)

219.0

223.6

+4.6 (+2.1%)

Average daily trade value (trillion won)

5.31

4.94

-0.37 (-7.0%)

2.93

2.69

-0.24 (-8.2%)

Foreign stock ownership (%, %p)

37.27

37.04

-0.23 (-0.6%)

10.88

12.16

+1.28 (11.8%)

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

Stock prices (monthly average, points)

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

KOSPI KOSDAQ

0 2008.1

2009.1

Source: Korea Exchange

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

September 2017

9.2 Exchange rate The dollar-won exchange rate rose 0.8 percent in August to 1,127.8 won due to geopolitical risks from North Korea. The 100 yen-won exchange rate rose 0.8 percent to 1,020.2 won as the yen gained against the dollar.

Foreign exchange rates (month-end, â&#x201A;Š)

1,800

1,600

1,400

1,200

1,000

800

Dollar-Won

600 2008.1

100 Yen-Won

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Source: Bank of Korea

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

1,250

1,200

1,150

1,100

1,050

1,000

Dollar-Won

950

2016.9

2016.10

100 Yen-Won

Source: Bank of Korea

2016.11

2016.12

2017.1

2017.2

2017.3

2017.4

2017.5

2017.6

2017.7

2017.8

Economic Bulletin

The Green Book

(Closing rate)

2011

2012

2013

2014

2015

2016

Dec

Jul

Aug

Change¹

1,151.8

1,070.6

1,055.4

1,099.3

1,172.5

1,207.7

1,119.0

1,127.8

-0.8

100 Yen-Won 1,481.2

1,238.3

1,002.3

913.0

974.1

1,035.4

1,011.9

1,020,2

-0.8

Dollar-Won

2017

1. Appreciation from the end of the previous month in August 2017 (%); the exchange rate is based on the closing price at 3:30 p.m., local time. Source: Bank of Korea

9.3 Bond market Treasury bond yields rose in August as geopolitical risks heightened after the North̛s ballistic missile launch, and also as foreign investors sold treasury bond futures. (Closing rate, %)

2011 Call rate (1 day)

2012

2013

2014

2015

2016

2017

Dec

Jun

Jul

Aug

Change¹

3.29

2.77

2.52

2.03

1.52

1.27

1.29

1.24

1.27

CD (91 days)

3.55

2.89

2.66

2.13

1.67

1.52

1.38

1.39

1.38

-1

Treasury bonds (3 yrs)

3.34

2.82

2.86

2.10

1.66

1.64

1.70

1.72

1.75

Corporate bonds (3 yrs) 4.21

3.29

2.43

2.11

2.13

2.24

2.26

2.30

Treasury bonds (5 yrs)

2.97

3.23

2.28

1.81

1.80

1.91

1.93

1.97

3.46

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

Interest rates (monthly average, %)

10 9 8 7 6 5 4 3

3-yr corporate bond yield

2 1

3-yr Treasury bond yield Overnight call rate (daily)

0 2008.1

2009.1

Source: Bank of Korea

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

September 2017

9.4 Money supply and money market M2 (monthly average) in June rose 5.9 percent from a year ago as certificate of deposits (CDs) and currency in circulation increased. (Percentage change from same period in previous year, average)

2010

2011

2012

2013

2014

2015

2016

2017

Annual

May

Jun

Jun¹

M1²

11.8

6.6

3.8

9.5

10.9

18.6

15.4

9.5

9.3

797.8

8.7

4.2

5.2

4.8

6.6

8.6

7.3

6.1

5.9

2,472.2

8.2

5.3

7.8

6.9

7.0

9.7

8.1

7.1

6.7

3,438.9

1. Balance at end June 2017, trillion won 2. M1 excludes corporate MMFs and individual MMFs, and includes CMAs 3. Liquidity aggregates of financial institutions (mostly identical with M3) Source: Bank of Korea

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

Reserve money M1 Lf

-10

-20 2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Source: Bank of Korea

Bank deposits decreased 9.5 trillion won in July as corporations withdrew funds from instant access deposits (down 20.0 trillion won) to pay VATs. Time deposits increased in some banks (up 3.8 trillion won) as they worked to improve liquidity ratios. Asset management company (AMC) deposits increased 23.1 trillion won. Money market funds (MMFs) surged 19.6 trillion won due to the inflows of government’s extra funds and as corporations redeposited money they withdrew temporarily in the previous month to improve their quarter-end balance. (Change from the end of the previous period, trillion won)

2010

2011

2012

2013

2014

2015

2016

Annual Annual Annual Annual Annual Annual Annual

Bank deposits

36.9

58.9

37.0

41.0

AMC deposits

-16.7

-16.6

18.8

17.7

1. Balance at end July 2017

Source: Bank of Korea

115.4 100.3 42.4

44.4

2017 May

Jun

Jul

Jul¹

80.8

9.8

26.1

-9.5

1,491.0

47.6

2.2

-9.4

23.1

516.8

Economic Bulletin

The Green Book

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

2017.1

Source: Bank of Korea

10. Balance of payments Korea’s current account (preliminary) in July posted a surplus of US $7.26 billion, staying in the black for 65 consecutive months. Goods account surpluses increased month-on-month from US $9.71 billion to US $10.71 billion. Growth in goods exports (y-o-y, %) 6.0 (Jun 2017) → 11.4 (Jul)

Growth in goods imports (y-o-y, %) 18.0 (Jun 2017) → 15.2 (Jul)

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

208.2 (vessels), 57.8 (semiconductors), 13.6 (petrochemicals), 10.7 (steel), 7.4 (automobiles), 0.9 (petroleum products), -27.4 (mobile phones)

Import growth by category in July (y-o-y, %, customs clearance basis) 10.7 (commodities), 19.3 (capital goods), 21.8 (consumer goods)

Services account deficits increased month-on-month from US $2.81 billion to US $3.29 billion. Services balance (US $ billion, Jun → Jul)

-0.47 → -0.41 (transportation), -0.98 → -0.79 (other businesses), 0.70 → 0.51 (construction), -0.22 → -0.30 (intellectual property rights), -0.56 → -0.58 (manufacturing), -1.39 → -1.79 (travel)

September 2017

Primary income account surpluses increased from US $0.55 billion to US $0.58 billion, and secondary income account deficits expanded from US $0.43 billion to US $0.73 billion.

Current account balance (US $ billion)

14 12 10 8 6 4 2 0

Goods account

-2 -4

Services account Current account

-6

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Source: Bank of Korea (balance of payments trends)

(US $ billion)

2016 Annual¹

Q1¹

Q2¹

2017 Q3¹

Q4¹

Jul¹

Q1¹

Q2¹

Jun¹

Jul¹

3.89 7.01

7.26

Current account

98.68

- Goods balance

120.45

28.95 33.53 28.27 29.69 10.67 27.98 11.82 9.71 10.71

- Services balance

-17.61

25.35 26.34 21.51 25.48

8.41 19.43

-3.92 -3.91 -5.66 -4.12 -1.58 -8.86 -2.38 -2.81

-3.29

- Primary income balance

1.46

1.20 -2.11

1.13 -5.03 0.55

0.58

- Secondary income balance

-5.62

-0.88 -1.18 -2.36 -1.20 -0.62 -0.82 -0.53 -0.43

-0.73

1. Preliminary

1.26

1.11 -0.05

Source: Bank of Korea

The capital and financial account (preliminary) in July posted an outflow of US $9.77 billion. Capital & financial account balance* (US $ billion)

9.72 (Jul 2016) → 4.35 (Jan 2017) → 9.21 (Feb) → 6.00 (Mar) → 1.83 (Apr) → 2.58 (May) → 8.72 (Jun) → 9.77 (Jul) * Positive figures represent net outflows, and negative figures represent net inflows.

Net outflows of foreign direct investment (FDI) decreased from US $1.27 billion to US $0.40 billion as Korean FDI (up US $2.48 billion → up US $0.74 billion) slowed faster than inbound FDI (up US $1.21 billion → up US $0.34 billion).

Economic Bulletin

The Green Book

Net outflows of portfolio investment increased from US $2.91 billion to US $3.21 billion as Korean investment in foreign shares (up US $5.52 billion → up US $6.86 billion) increased faster than foreign investment in Korean shares (up US $2.61 billion → up US $3.66 billion). Net inflows of financial derivatives investment decreased from US $0.74 billion to US $0.22 billion, and net outflows of other investment increased from US $4.98 billion to US $6.26 billion. The current account surplus is likely to increase in August, given an increase in trade surpluses (up US $4.20 billion → up US $4.61 billion, excluding vessels).

Capital & financial account balance (US $ billion)

Capital & financial account Direct investment Portfolio investment Financial derivatives

-5

- 10

- 15 2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Source: Bank of Korea (balance of payments trends)

11. Prices 11.1 Consumer prices Consumer prices in August rose 0.6 percent from the previous month and 2.6 percent from the same period of the previous year.

Consumer price inflation

(Percentage change)

2016

2017

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Consumer price inflation (m-o-m) -0.1

0.1

0.9

0.3

0.0

-0.1

0.1

-0.1

0.2

0.6

(y-o-y)

1.3

2.0

1.9

2.2

1.9

2.0

1.9

2.2

2.6

Source: Statistics Korea

1.5

September 2017

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

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

-1 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)

Agricultural, livestock & fishery product prices rose at a faster pace (up 8.6% → up 12.2%, y-o-y) as vegetable prices surged due to heavy rains and hot weather. Public utility prices rose (up 8.0% → up 8.0%, y-o-y) due to a low base effect from a year ago when electricity rates were temporarily cut by 18.8 percent during the summer. Oil product prices went up at a faster pace (up 0.5% → up 3.6%, y-o-y) in line with low oil inventories.

Consumer price inflation in major sectors Total

Agricultural, Manufactured Public Oil livestock & utilities fishery products products products

Housing rents

Public service

Personal services

1.0

2.4

Jul (y-o-y, %)

2.2

Aug (y-o-y, %)

2.6

12.2

1.0

3.6

8.0

1.6

0.9

2.3

- Contribution (%p)

0.96

0.31

0.15

0.29

0.15

0.14

0.75

8.6

0.7

0.5

8.0

1.7

Source: Statistics Korea

Consumer prices excluding oil and agricultural products rose 1.8 percent yearon-year in August due to a low base effect from last year’s electricity rate cut. (percentage change from same period in previous year)

2017 Feb Mar Apr May Jun

Jul

Aug

Consumer prices excluding oil and agricultural products 1.5

Jan

1.5

1.4

1.3

1.4

1.8

Consumer prices excluding food and energy

1.7

1.5

1.4

Source: Statistics Korea

1.7

Economic Bulletin

The Green Book

Basic necessities prices and fresh food prices rose at a faster pace due to rising vegetable prices and a low base effect from a year ago when agricultural prices were low. Agricultural prices in 2016 (y-o-y, %)

-1.0 (May 2016) → -5.5 (Jun) → -4.7 (Jul) → -1.9 (Aug) (Percentage change from same period in previous year)

2017 Consumer prices for basic necessities Fresh food prices

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

2.4

2.3

2.8

2.5

2.3

3.1

3.7

12.0

4.8

7.5

4.7

5.6

10.5

12.3

18.3

Source: Statistics Korea

Prices (y-o-y, %) 16

Consumer price inflation Core consumer price inflation Producer price inflation

-4

-8 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 August as oversupply concerns eased: US oil inventories and the number of drilling rigs stayed low. Dubai crude (US $/barrel)

50.6 (1st week Aug 2017) → 50.9 (2nd week) → 49.4 (3rd week) → 50.4 (4th week) → 50.0 (5th week) (US $/barrel, period average)

2017

2016 Dubai crude

Annual

Apr

May

Jun

Jul

Aug

41.4

30.5

43.2

48.3

53.0

49.7

52.3

50.7

46.4

47.6

50.2

WTI crude

43.5

33.6

45.6

44.9

49.3

51.8

48.1

51.1

48.5

45.2

46.7

48.1

Brent crude

45.1

35.2

47.0

51.1

54.6

50.8

53.8

51.4

47.6

49.1

51.9

Source: Korea National Oil Corporation

September 2017

International oil prices (US $/B)

160 140 120 100 80 60 40 20

WTI

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Dubai crude

Source: Korea National Oil Corporation

Domestic gasoline prices went up in August, reflecting with a time lag international oil prices. Domestic gasoline prices (won/liter)

1,439.4 (1st week Aug 2017) → 1,444.6 (2nd week) → 1,452.2 (3rd week) → 1,457.2 (4th week) → 1,461.5 (5th week)

International gasoline prices (US $/barrel)

59.6 (3rd week Jul 2017) → 60.5 (4th week) → 63.6 (1st week Aug) → 64.5 (2nd week) → 64.1 (3rd week)

Dollar-won exchange rate (won)

1,127.4 (3 rd week Jul 2017) → 1,117.2 (4 th week) → 1,122.0 (1 st week Aug) → 1,130.8 (2nd week) → 1,140.0 (3rd week)

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

Dubai crude (import prices, left) Dubai international prices (right)

(US $/B)

160

140

120

100

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

Economic Bulletin

The Green Book

(Won/liter, period average)

2017

2016 Annual

Apr

May

Jun

Jul

Aug

Gasoline prices

1,403 1,363 1,396 1,419 1,433 1,510 1,477 1,488 1,481 1,462 1,439 1,452

Diesel prices

1,183 1,121 1,168 1,213 1,228 1,301 1,267 1,278 1,271 1,251 1,230 1,245

Source: Korea National Oil Corporation

International corn and wheat prices declined in August due to favorable weather and a higher inventory outlook. International grain price increases in August (monthly average prices, m-o-m, %) -7.0 (corn), -13.6 (wheat), -6.2 (soybeans)

International copper prices rose in August due to increasing demand from China and low inventories. Aluminum prices rose as China closed production facilities: On August 8, Shandong Province announced that 3.21 million tons of unlicensed smelting capacity had been cut by the end of July. Nonferrous metal price increases in August (monthly average prices, m-o-m, %) 8.5 (copper), 6.8 (aluminum), 14.8 (nickel)

International commodity prices (points)

(points) 4,000

470 430

3,000

390 350

2,000

310 270 230

1,000

190

CRB (left) Reuters index (right)

150

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)

2017

2016 Annual 1

Reuters Index

(Sep 18, 1931=100)

Apr

May

Jun

Jul

Aug

2,330 2,115 2,250 2,414 2,536 2,644 2,426 2,510 2,428 2,360 2,406 2,404

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

September 2017

12. Real estate market 12.1 Housing market Housing prices nationwide rose 0.2 percent month-on-month in August. Housing prices rose 0.4 percent in the Seoul metropolitan area which includes Seoul (up 0.5%), Gyeonggi Province (up 0.3%) and Incheon (up 0.4%). Housing prices were up 0.1 percent in the five metropolitan cities (up 0.2%) and the eight provinces (up 0.0%). Housing price increases in five metropolitan cities (m-o-m, %) Busan (0.2), Daegu (0.5), Gwangju (0.2), Daejeon (0.2), Ulsan (-0.1)

Housing sales prices

(Percentage change from previous period)

2013 2014 2015

2016

2017

Annual Annual Annual Annual Aug Annual

Nationwide

Apr

May

Jun

Jul

Aug

0.3

1.7

3.5

0.7

0.1

1.0

0.1

0.2

Seoul metropolitan area -1.1

1.5

4.4

1.3

0.2

1.5

0.1

0.2

0.4

0.3

0.4

- Seoul

-1.4

1.1

4.6

2.1

0.3

2.3

0.2

0.4

0.7

0.4

0.5

· Gangnam¹

-1.1

1.2

5.2

2.5

0.3

2.7

0.3

0.4

0.9

0.4

0.6

· Gangbuk²

-1.7

1.1

3.9

1.8

0.2

1.9

0.2

0.3

0.5

0.4

0.3

1.7

1.9

2.7

0.2

0.0

0.5

0.1

Areas excluding the Seoul metropolitan area

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

2. Northern Seoul

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

Nationwide Seoul metropolitan area Areas excluding Seoul metropolitan area

-1

-2

2008.1

2009.1

2010.1

Source: Korea Appraisal Board

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Economic Bulletin

The Green Book

Housing rental prices nationwide rose 0.1 percent month-on-month. Rental prices were up 0.2 percent in the Seoul metropolitan area and remained unchanged in areas excluding the Seoul metropolitan area. Housing rental price increases in major districts in Seoul metropolitan area (m-o-m, %) Gangnam (0.4), Songpa (0.5), Gangdong (0.9), Mapo (0.3), Bundang (0.7), Hanam (0.9)

Housing rental prices

(Percentage change from previous period)

2016

2013 2014 2015

2017

Annual Annual Annual Annual Aug Annual

Apr

May

Jun

Jul

Aug

4.7

3.4

4.8

1.3

0.3

0.5

0.1

Seoul metropolitan area 6.2

4.7

7.1

2.0

0.4

1.0

0.1

0.2

- Seoul

3.6

7.2

2.0

0.5

1.4

0.2

0.3

0.2

Nationwide

6.6

· Gangnam¹

6.7

3.3

7.9

1.8

0.4

1.8

0.2

0.3

0.4

0.3

· Gangbuk²

6.4

3.8

6.5

2.1

0.5

0.9

0.1

0.2

0.1

Areas excluding the Seoul metropolitan area 3.3

2.2

2.8

0.7

0.2

0.0

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

2. Northern Seoul

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

-1

Nationwide Seoul metropolitan area Areas excluding Seoul metropolitan area

-2

-3 2008.1

2009.1

2010.1

2001.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Source: Korea Appraisal Board

There were 98,414 housing transactions in July, up 0.4 percent from a month earlier (97,998) and up 3.0 percent from a year ago (95,578).

Housing transactions

(Thousands)

2015

2017

2016

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

Nationwide

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

109 103

Jul 98

September 2017

Monthly housing transactions (thousands)

160 140 120 100 80 60 40

Nationwide Seoul metropolitan area Areas excluding Seoul metropolitan area

20 0

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Source: Ministry of Land, Infrastructure and Transport

12.2 Land market Land prices nationwide rose 0.39 percent month-on-month in July. Land prices rose 0.39 percent in the Seoul metropolitan area which includes Seoul (up 0.48%) and Gyeonggi Province (up 0.31%). Land price increases in Seoul metropolitan area (m-o-m, %)

0.20 (Dec 2016) → 0.17 (Jan 2017) → 0.22 (Feb) → 0.32 (Mar) → 0.32 (Apr)→ 0.41 (May) → 0.40 (Jun) → 0.39 (Jul)

Land prices rose 0.38 percent in areas excluding the Seoul metropolitan area, led by Busan (up 0.66%), Gwangju (up 0.44%) Daegu (up 0.40%) and Sejong (up 0.82%). Land price increases in areas excluding Seoul metropolitan area (m-o-m, %)

0.25 (Dec 2016) → 0.21 (Jan 2017) → 0.24 (Feb) → 0.32 (Mar) → 0.31 (Apr) → 0.34 (May) → 0.38 (Jun) → 0.38 (Jul)

Land prices

(Percentage change from previous period)

2012 2013 2014 2015

2016

Annual Annual Annual Annual Annual

2017

Annual

Jun

Jul

Nationwide 0.96

1.14

1.96

2.40

2.70

0.68

0.72

0.71

2.24

0.74

1.10

0.39

Seoul

0.38

1.21

2.66

2.69

2.97

0.76

0.83

0.78

2.59

0.75

1.34

0.49

0.48

Gyeonggi

1.04

0.91

1.24

1.73

2.23

0.58

0.64

0.63

2.00

0.68

1.00

0.33

0.31

Incheon

0.46

0.87

1.35

1.95

1.74

0.48

0.47

0.44

1.79

0.67

0.77

0.29

0.33

Source: Korea Appraisal Board

Economic Bulletin

The Green Book

There were 312,000 land transactions in July, up 3.8 percent from the previous month and up 21.0 percent from a year ago (258,000). Land transactions (m-o-m, %)

Gyeonggi Province (14.1), Incheon (8.9), Daegu (16.3), Sejong (23.5)

Vacant land transactions declined 1.7 percent from the previous month to 99,000, accounting for 31.7 percent of the total land transactions. The index increased 6.7 percent compared with a year ago (93,000).

Land transactions (thousand m²)

350,000 300,000 250,000 200,000 150,000 100,000 50,000

Seoul metropolitan area

Areas excluding Seoul metropolitan area

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Source: Korea Appraisal Board

Land transactions

(Land lots, thousands)

2015

2016

2017

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

Nationwide

257

250

258 266 240 274 274 276 216 226 273 258 280 301 312

Seoul

Gyeonggi

Incheon

1. Monthly average Source: Korea Land & Housing Corporation

September 2017

13. Composite indices of business cycle indicators Industrial output rose 1.2 percent month-on-month in July. Output increased in mining & manufacturing (up 1.9%), construction (up 3.6%), services (up 0.6%) and public administration (up 0.3%). Compared to a year ago, industrial output rose 2.2 percent.

Index of all industry production (%)

20 15 10 5 0 -5 -10

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

-15 2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Source: Statistics Korea (industrial activity trends)

2016 Dec

2017 Jan

Feb

Mar

Apr

Mayยน Junยน

Julยน

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

0.3

0.5

-0.3

1.3

-1.0

-0.1

0.0

1.2

(y-o-y, %)

3.6

3.4

4.2

4.1

3.5

2.6

1.7

2.2

Coincident composite index (2010=100) (m-o-m, %) Cyclical indicator of coincident composite index (m-o-m, p) Leading composite index (2010=100) (m-o-m, %)

123.2 123.8 124.1 124.7 125.1 125.2 125.3 125.7 0.5

0.5

0.2

0.5

0.3

0.1

0.3

100.5 100.7 100.7 101.0 101.0 100.8 100.7 100.7 0.2

0.2

0.0

0.3

0.0

-0.2

-0.1

0.0

128.1 128.6 129.3 129.7 130.3 131.0 131.9 132.6 0.5

0.4

0.5

0.3

0.5

0.7

0.5

Cyclical indicator of leading composite index 100.6 100.7 100.9 100.8 101.0 101.2 101.5 101.7 (m-o-m, p)

0.1

0.2

-0.1

0.2

0.3

0.2

1. Preliminary

The cyclical indicator of the coincident composite index was unchanged from the previous month at 100.7. Six out of the seven components of the index improved, except imports.

Economic Bulletin

The Green Book

Components of the coincident composite index in July (m-o-m) mining & manufacturing production (0.6%), service output (0.5%), value of construction completed (0.5%), retail sales (0.2%), domestic shipments (0.5%), nonfarm payroll employment (0.1%), imports (-0.4%)

Cyclical indicator of coincident composite index (points) 110

105

100

90 2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Source: Statistics Korea (industrial activity trends)

The cyclical indicator of the leading composite index rose 0.2 points to 101.7. Six components of the index, such as the consumer expectations index, KOSPI and ratio of job openings to job seekers, rose, and the other two, such as the value of construction orders received and inventory circulation indicator, went down. Components of the leading composite index in July (m-o-m) consumer expectations index (3.1p), KOSPI (3.7%), domestic shipments of machinery (0.1%), ratio of export to import prices (0.7%), ratio of job openings to job seekers (0.4%p), spreads between long & short term interest rates (0.02%p), inventory circulation indicator (-1.0%p), value of construction orders received (-17.1%)

Cyclical indicator of leading composite index (points)

110

105

100

90 2008.1

2009.1

2010.1

2011.1

Source: Statistics Korea (industrial activity trends)

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Featured Issue

President Moon Jae-in had talks with global investors and business leaders in New York

Economic Bulletin

Featured Issue

President Moon Jae-in had Talks with Global Investors and Business Leaders in New York Korea’s President Moon Jae-in had talks with global investors and business leaders in New York on September 20, where he affirmed the economy’s strong fundamentals and sustained vitality despite increased provocations by the North. The following is a summary of President Moon’s keynote speech. Even though Korea went through a political turmoil last winter, the country successfully overcame difficulties thanks to many responsive citizens and finally saw the launch of a new administration. Korea’s new administration has been working on the shift of the country’s growth paradigm, moving towards “people friendly growth” and pursuing “increased household income”, “growth through innovation” and “a fairer playing field”. I believe these new economic policies will be able to address the economy’s structural problems and contribute to increased transparency, and thus will make the economy stronger. The Korean economy has been stable despite increased provocations by the North, as it maintains strong fundamentals and external soundness. The new administration will spare no efforts to contain North’s nuclear ambitions and will work closely together with the international community, but at the same time will try to find a diplomatic and peaceful way to address the issues. The Korea-US FTA is a part of the Korea-US alliance, and benefits of the FTA have been increasing in both countries. Korea wants this mutually beneficial trade pact to continue and would like to further develop economic cooperation between the two countries.

President Moon Jae-in answers questions during a meeting with investors and business leaders in New York on September 20.

Policy Issue

2018 budget proposal

Economic Bulletin

Policy Issue

2018 Budget Proposal 2018 Budget Focuses on Job Creation, Wage-led Growth and Innovation

The 2018 budget proposal contains support to achieve a people-friendly economy and sustainable growth, and emphasizes the role of expansionary fiscal spending in pursuing these goals. A total of 429.0 trillion won, an increase of 28.4 trillion won, or 7.1 percent compared with the 2017 budget, will be spent to successfully implement the new administrationâ&#x20AC;&#x2122;s economic policies.

I. 2018 budget proposal 1. Key policies Successfully implement new administrationâ&#x20AC;&#x2122;s economic policies - Support job creation: increase public sector jobs, support private sector job creation, and develop a model for the Korean job market, focusing on security and flexibility - Improve welfare to ensure wage-led growth: strengthen support for employmentfriendly welfare, adopt childcare benefits, and raise basic pensions - Promote innovation to help develop new growth engines: support the fourth industrial revolution, build industry clusters for innovation, and develop innovative human resources Carry out strong fiscal restructuring - Prudently manage SOC budgets and significantly expand spending on welfare and job creation

September 2017

- Carry out a zero-based analysis of a project, and increase spending efficiency by revising the budget and expenditure system on the basis of those in need Pursue innovation in fiscal management - Introduce a support system that promotes cooperation, including the support for infrastructure projects, whose aim is to improve cooperation - Try out citizen participation in budget planning and build a fiscal information management system that provides citizens with information on demand real time

2. Key features (Total revenues) The government revenues are projected to increase 7.9 percent compared with the previous year to 447.1 trillion won, backed by strong corporate performance and the 2017 tax revision bill. (Total expenditures) The total government expenditures will rise 7.1 percent from the previous year to 429.0 trillion won, which is an expansionary budget to implement the administrationâ&#x20AC;&#x2122;s economic policies, such as strong support for job creation, and to meet increasing welfare demand.

(trillion won)

Changes

2017 budget (A)

2018 budget proposal (B)

B-A

Total government revenues - Tax revenues

414.3 242.3

447.1 268.2

32.8 25.9

7.9 10.7

Total government expenditures

400.5

429.0

28.4

7.1

(Fiscal balance) Deficits in the consolidated fiscal balance will improve by 0.1 percentage points compared with the previous year, from 1.7 percent to GDP to 1.6 percent. (Government debt) Government debt is expected to decline by 0.1 percentage points compared with the previous year, from 39.7 percent to GDP to 39.6 percent.

(trillion won, %)

2017 budget (A)

2018 budget proposal (B)

Changes

Consolidated fiscal balance (% to GDP)

-28.3 (-1.7)

-28.6 (-1.6)

-0.3 (0.1%p)

Government debt (% to GDP)

669.9 (39.7)Âš

708.9 (39.6)

39.0 (-0.1%p)

B-A

1. 39.6% to GDP according to the supplementary budget approved by the National Assembly

3. Budget proposal by initiative The 2018 budget proposal reflects 18.7 trillion won worth of the administrationÍ&#x192;s first year initiatives.

Economic Bulletin

Policy Issue

Welfare initiatives 1) Strengthen childcare support - Provide a childcare support of 100,000 won per month for a child aged between 0 and 5 - Increase public daycare centers from 180 to 450 - Pay 100 percent of daycare charges for children aged between 3 and 5 2) Provide young adults with employment support - Provide SMEs with an annual support of 20,000,000 won per newly hired young adult employee for three years1) - Give a jobseeker benefit of 300,000 won per month for three months 3) Improve housing support for the newly married - Increase the supply of public rental housing for the newly married from 20,000 units to 30,000 - Introduce low interest rate mortgages for the newly married, which lend up to 30,000,000 won with the interest rates 0.3 percentage points lower than other mortgages 4) Increase the income of the elderly - Raise the basic pension from 206,000 won per month to 250,000 won - Increase jobs for the elderly from 437,000 to 514,000 - Strengthen support for dementia care centers 5) Improve welfare for the low income class - Expand housing support to cover more households, and supply 170,000 public rental homes - Increase the energy voucher from 95,000 won to 102,000 won - Expand national healthcare coverage to all kinds of diseases 6) Increase support for small merchants - Launch a 20 billion won worth of small merchant fund - Increase the number of traditional markets equipped with their own parking spaces from 30 to 43 Innovation and safety initiatives 1) Pursue growth through innovation - Expand investment in the fourth industrial revolution from 1.2 trillion won to 1.5 trillion won - Increase startup support through the Tech Incubator Program for Startups (TIPS), from 150 startups to 284 startups 2) Ensure safety - Increase support for the Kill Chain development from 2.1 trillion won to 2.3 trillion won - R enew efforts to reduce fine dust pollution, such as by promoting the early scrapping of old diesel vehicles

1) For up to 20,000 employees

September 2017

4. Budgets by area

(trillion won)

2017 budget (A)

Change

2018 budget proposal (B)

(B-A)

Total expenditures

400.5

429.0

28.4

7.1

1. Health, welfare, employment - Job creation

129.5 17.1

146.2 19.2

16.7 2.1

12.9 12.4

57.4 42.9

64.1 49.6

6.7 6.6

11.7 15.4

2. Education - Grant to local education governments 3. Culture, sports, tourism

6.9

6.3

-0.6

-8.2

4. Environment

6.9

6.8

-0.1

-2.0

5. R&D

19.5

19.6

0.1

0.9

6. Industry, SME, energy

16.0

15.9

-0.1

-0.7

7. SOC

22.1

17.7

-4.4

-20.0

8. Agriculture, forestry, fishery, food

19.6

0.02

0.1

9. National defense

40.3

43.1

2.8

6.9

4.6

4.8

0.2

5.2

11. Social order, safety

10. Diplomacy, reunification

18.1

18.9

0.8

4.2

12. Public administration, local governments - Grant to local governments

63.3 40.7

69.6 46.0

6.3 5.2

10.0 12.9

II. 2017-2021 fiscal outlook Total government revenues are projected to increase at an average of 5.5 percent every year in 2017-2021. Total government expenditures will be managed to increase at an average of 5.8 percent every year in 2017-2021. Mid-term outlook for government revenues and expenditures 2017

(trillion won, %)

2018

2019

2020

2021

Annual growth (%)

423.1 251.1

447.1 268.2

471.4 287.6

492.0 301.0

513.5 315.0

5.5 6.8

410.1 (6.1)

429.0 (7.1)

453.3 (5.7)

476.7 (5.2)

500.9 (5.1)

5.8

Original

Supplementary

Total government revenues - Tax revenues

414.3 242.3

Total government expenditures (growth, %)

400.5 (3.7)

The consolidated fiscal balance minus social security funds will be managed at a deficit of around 2.0 percent to GDP in 2017-2021. Government debt will be managed at around 40 percent to GDP. Mid-term outlook for fiscal balance and government debt

(trillion won, %)

2017

2018

2019

2020

2021

Consolidated fiscal balance minus social security (% to GDP)

-28.3 (-1.7)

-28.6 (-1.6)

-33.0 (-1.8)

-38.4 (-2.0)

-44.3 (-2.1)

Government debt (% to GDP)

669.9 (39.7)ยน

708.9 (39.6)

749.1 (39.9)

793.0 (40.3)

835.2 (40.4)

1. 39.6% for the supplementary budget

Economic News Briefing

16th meeting of Korea-Russia Economic Cooperation Commission discusses Far East development External debt rises to US $407.3 billion in Q2 2017 Korea grows 0.6% in Q2 2017 (preliminary)

September 2017

16th meeting of Korea-Russia Economic Cooperation Commission discusses Far East development At the 16th meeting of the Korea-Russia Joint Commission on Economic, Scientific and Technological Cooperation, held in Vladivostok, Russia, on September 4, Korea and Russia discussed expanded cooperation across eight different sectors, including trade and investment, energy, science and technology, healthcare, infrastructure development and North Sea research. The 16th meeting was the first one held under the Moon administration, and discussions were focused on developing the Far East, which include promoting Korean investment in the region and working to improve healthcare services, transportation and other infrastructures in the region.

External debt rises to US $407.3 billion in Q2 2017 Koreaâ&#x20AC;&#x2122;s external debt amounted to US $407.3 billion as of the end of June 2017, an increase of US $1.7 billion from the previous quarter. Short-term debt rose US $1.9 billion quarter-on-quarter to US $117.3 billion, and long-term debt declined US $0.3 billion to US $290.0 billion. External debt increased in the second quarter due to a rise in foreign investment in Korean bonds (up US $0.9 billion). (US $ billion)

2010

2011

2012

2013

2014

2015

2016

Total debt

355.9

400.0

408.9

423.5

424.3

396.1

- Short-term

136.5

139.8

128.0

111.8

116.4

104.3

- Long-term

219.5

260.3

281.0

311.7

307.9

291.7

2017 Mar

Jun

Change (q-o-q)

380.9

405.7

407.3

1.7

105.2

115.4

117.3

1.9

275.8

290.3

290.0

-0.3

Solvency improved as net foreign assets in debt instruments increased US $15.7 billion from the previous quarter to a record high of US $423.1 billion. External debt soundness indicators remain stable as the ratio of short-term debt to total external debt stayed low at 28.8 percent and the ratio of short-term external debt to foreign exchange reserves remained stable at 30.8 percent.

Economic Bulletin

Economic News Briefing

Korea grows 0.6% in Q2 2017 (preliminary) Korea’s real gross domestic product (GDP) expanded 0.6 percent quarter-on-quarter and 2.7 percent year-on-year in the second quarter of 2017, according to preliminary data released by the Bank of Korea (BOK) on September 1. The figures were unchanged from the advanced estimates that were released on July 27. On the production side, agriculture, forestry & fisheries declined 1.1 percent from the previous quarter as crop yields declined due to a drought. Manufacturing fell 0.3 percent, led by metal products, and construction fell 1.3 percent, led by civil engineering works. Services grew 0.8 percent, as declines in real estate & renting were offset by gains in financial & insurance services and health & social welfare services. On the expenditure side, private consumption expanded 1.0 percent, as expenditures on durable goods rose. Construction investment rose 0.3 percent as investment in building construction increased, and facility investment rose 5.2 percent due to strong machinery and transportation equipment investment. Intellectual property investment went up 1.2 percent, led by investment in R&D and software. Exports decreased 2.9 percent due to weak automobiles and chemical products. Imports fell 1.0 percent as crude oil imports declined.

GDP by production and expenditure*

(Percentage change from previous period)

2015

2016¹

2017¹

GDP

0.8 (2.6)²

0.4 (2.4)²

1.3 (3.0)²

0.7 (3.2)²

0.5 (2.9)²

0.9 (3.4)²

0.5 (2.6)²

0.5 (2.4)²

1.1 (2.9)²

0.6 (2.7)²

Agriculture, forestry & fisheries

1.8

-8.3

4.1

-2.0

3.7

-4.5

-1.9

-1.8

5.9

-1.1

Manufacturing

0.9

0.7

0.8

0.4

1.0

-0.4

1.8

2.1

-0.3

Electricity, gas & water supply

-0.4

1.1

3.8

0.6

0.1

0.0

3.4

-3.0

-1.4

3.8

Construction

2.5

1.5

4.2

0.9

3.6

2.6

2.3

1.3

5.3

-1.3

Services³

0.6

0.3

1.0

0.8

0.4

0.5

0.6

0.2

0.8

Private consumption

0.9

-0.3

1.3

1.5

-0.1

0.8

0.6

0.2

0.4

1.0

Government consumption

-0.1

1.1

1.0

1.3

1.4

0.6

0.9

0.6

0.5

1.1

Construction investment

9.0

1.4

2.1

-2.2

7.6

3.1

2.2

-1.2

6.8

0.3

Facility investment

0.3

0.8

1.9

0.0

-7.0

2.6

0.9

5.9

4.4

5.2

Intellectual property investment

1.6

-0.4

0.5

0.7

0.2

1.3

0.5

0.6

0.3

1.2

Exports

-0.3

-0.2

0.1

2.1

-0.6

1.0

-0.1

2.1

-2.9

Imports

0.1

0.7

1.2

2.9

-1.5

2.2

2.6

-0.1

4.8

-1.0

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

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

2014

3.3

3.6

3.5

2.0

1.7

3.4

1.1

6.0

2015

2.8

-0.4

1.8

2.4

2.2

5.1

6.6

4.7

2016p

2.8

-2.9

2.3

2.9

2.5

5.2

10.7

-2.3

2009 Ⅰ Ⅱ

-1.9

2.5

-8.4

-1.9

-4.3

-5.4

1.9

-19.4

-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 Ⅱ

7.3

0.0

16.1

6.2

6.8

12.0

1.6

27.6

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 Ⅱ

4.9

-9.3

11.4

3.3

3.7

-0.7

-8.2

8.3

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 Ⅱ

2.5

0.1

2.7

2.2

1.6

6.2

-0.2

11.0

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 Ⅱ

2.1

-1.2

2.7

1.5

-3.2

1.2

-12.3

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 Ⅱ

3.9

5.9

4.7

2.9

2.8

6.1

4.5

7.5

3.5

4.5

4.7

1.8

1.7

3.6

0.3

8.0

Ⅲ

3.4

2.7

3.1

2.0

1.4

3.6

2.3

4.3

Ⅳ

2.7

2.4

1.8

1.6

1.1

0.7

-1.7

4.2

2015 Ⅰ Ⅱ

2.6

8.5

1.1

1.8

1.5

3.9

4.0

5.4

2.4

-3.0

0.9

2.0

1.7

3.9

4.6

4.3

Ⅲ

3.0

0.3

2.2

2.3

2.2

6.0

7.6

6.0

Ⅳ

3.2

-4.0

2.7

3.4

6.3

9.6

3.1

2016p Ⅰ Ⅱ

2.9

-2.3

2.4

2.9

2.3

2.9

9.0

-4.6

3.4

1.0

2.7

3.7

3.5

5.2

10.6

-2.9

Ⅲ

2.6

-4.7

1.4

3.1

2.7

5.3

11.2

-3.9

Ⅳ

2.4

-4.7

2.7

2.0

1.5

7.1

11.6

2.0

2017p Ⅰ Ⅱ

2.9

-2.4

4.5

2.2

2.0

10.4

11.3

14.4

2.7

0.8

3.2

2.5

2.3

9.6

8.0

17.3

p: Preliminary Source: Bank of Korea

September 2017

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

Period 2015 2016 2015 2016

Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ 2017 Ⅰ Ⅱp

2015 1 2 3 4 5 6 7 8 9 10 11 12 2016 1 2 3 4 5 6 7 8 9 10p 11 12 2017 1 2 3 4 5 6p 7p

Production index*

Shipment index*

y-o-y change (%)

108.1 109.2 105.9 108.9 106.0 111.7 105.6 109.7 106.5 114.8 109.5 110.3 108.3 96.1 113.3 110.2 105.6 110.8 109.2 101.8 106.9 112.9 109.0 113.1 105.9 98.3 112.7 107.2 110.2 111.8 110.8 104.0 104.8 111.5 114.9 118.0 107.3 104.9 116.4 109.2 110.5 111.2 110.9

-0.3 1.0 -0.9 -0.8 0.4 0.4 -0.3 0.7 0.5 2.8 3.7 0.5 1.7 -5.0 0.3 -1.9 -2.7 2.0 -2.9 0.6 3.6 2.5 0.3 -1.7 -2.2 2.3 -0.5 -2.7 4.4 0.9 1.5 2.2 -2.0 -1.2 5.4 4.3 1.3 6.7 3.3 1.9 0.3 -0.5 0.1

Inventory index*

y-o-y change (%)

108.2 109.0 106.3 108.6 106.3 111.8 105.4 109.9 106.2 114.5 109.0 109.8 108.4 96.9 113.6 110.1 105.8 109.8 108.0 102.7 108.2 113.1 109.0 113.2 104.2 97.6 114.4 108.2 109.8 111.6 108.8 104.4 105.4 111.0 114.1 118.5 105.7 104.7 116.5 108.7 109.1 111.7 109.8

0.2 0.7 -0.3 -0.6 1.3 0.4 -0.8 1.2 -0.1 2.4 3.4 -0.1 2.8 -4.4 0.4 -0.9 -2.7 1.6 -1.5 1.0 4.6 3.4 -0.5 -1.7 -3.9 0.7 0.7 -1.7 3.8 1.6 0.7 1.7 -2.6 -1.9 4.7 4.7 1.4 7.3 1.8 0.5 -0.6 0.1 0.9

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

Service production index

y-o-y change (%)

131.6 124.0 132.7 134.5 138.2 131.6 136.8 131.8 127.4 124.0 129.2 129.4 131.9 132.4 132.7 134.2 133.5 134.5 137.6 137.3 138.2 136.4 136.7 131.6 137.8 137.5 136.8 133.1 134.1 131.8 130.9 130.0 127.4 128.0 127.9 124.0 129.8 129.2 129.2 132.1 135.8 129.4 133.1

3.3 -5.8 2.4 4.9 7.1 3.3 3.1 -2.0 -7.8 -5.8 -5.6 -1.8 0.2 2.8 2.4 2.7 3.0 4.9 3.8 5.7 7.1 4.9 5.8 3.3 4.5 3.9 3.1 -0.8 0.4 -2.0 -4.9 -5.3 -7.8 -6.2 -6.4 -5.8 -5.8 -6.0 -5.6 -0.8 1.3 -1.8 1.7

y-o-y change (%)

112.1 115.5 108.3 111.6 111.7 116.8 111.3 115.5 115.7 119.3 114.2 118.2 107.1 104.7 113.0 111.6 111.5 111.8 111.9 110.9 112.4 114.0 113.1 123.2 110.1 108.0 115.8 113.8 115.5 117.3 115.5 115.8 115.7 116.3 116.0 125.6 113.0 110.7 119.0 116.5 118.2 119.8 118.0

2.9 3.0 2.8 2.8 2.9 3.3 2.8 3.5 3.6 2.1 2.6 2.3 2.2 2.7 3.1 4.2 2.3 1.8 2.8 2.6 3.6 2.9 2.9 3.8 2.8 3.2 2.5 2.0 3.6 4.9 3.2 4.4 2.9 2.0 2.6 1.9 2.6 2.5 2.8 2.4 2.3 2.1 2.2

Economic Bulletin

Statistical Appendices

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

Period 2015 2016 2015 Ⅰ Ⅱ Ⅲ Ⅳ 2016 Ⅰ Ⅱ Ⅲ Ⅳ 2017 Ⅰ Ⅱp 2015 1 2 3 4 5 6 7 8 9 10 11 12 2016 1 2 3 4 5 6 7 8 9 10p 11p 12 2017 1 2 3 4 5 6p 7p

Production capacity index* (2010=100)

Operation ratio index* (2010=100)

y-o-y change (%)

111.4 112.3 111.2 111.3 111.4 111.8 111.5 111.8 112.5 113.6 113.2 112.8 111.1 111.0 111.5 111.2 111.3 111.4 111.2 111.2 111.8 111.9 111.8 111.7 111.3 111.4 111.7 111.6 111.7 112.1 112.3 112.5 112.7 113.3 113.7 113.8 113.5 113.4 112.8 112.8 112.8 112.8 113.0

* Manufacturing industry p: Preliminary Source: Statistics Korea

0.9 0.8 1.4 1.3 0.6 0.5 0.3 0.4 1.0 1.6 1.5 0.9 1.2 1.3 1.6 1.5 1.3 1.2 0.7 0.5 0.7 0.7 0.6 0.4 0.2 0.4 0.2 0.4 0.4 0.6 1.0 1.2 0.8 1.3 1.7 1.9 2.0 1.8 1.0 1.1 1.0 0.6 0.6

92.4 90.4 90.3 95.2 90.1 93.9 89.1 92.3 86.9 93.5 88.2 91.2 93.1 81.2 96.5 96.1 92.1 97.4 95.0 86.3 89.0 95.5 91.9 94.3 89.4 81.6 96.2 90.4 93.1 93.4 92.1 83.7 84.8 91.1 94.3 95.0 85.1 84.1 95.5 90.5 91.2 91.9 91.8

y-o-y change (%)

Capacity utilization rate* (%)

-2.0 -2.2 -2.8 -1.7 -1.5 -2.0 -1.3 -3.0 -3.6 -0.4 -1.0 -1.2 1.3 -7.3 -2.6 -3.6 -3.7 2.4 -3.7 -0.6 0.0 -0.4 -2.2 -3.4 -4.0 0.5 -0.3 -5.9 1.1 -4.1 -3.1 -3.0 -4.7 -4.6 2.6 0.7 -4.8 3.1 -0.7 0.1 -2.0 -1.6 -0.3

74.5 72.6 74.4 74.5 75.2 73.7 73.4 72.8 71.9 72.4 72.8 71.5 74.4 74.7 74.0 74.8 73.4 75.4 74.7 75.8 75.1 74.4 73.0 73.7 72.8 73.7 73.7 71.8 74.3 72.4 73.7 70.4 71.6 70.9 73.7 72.6 74.2 71.0 73.1 71.8 71.5 71.2 73.4

September 2017

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

Total

Period 2015 2016 2015 Ⅰ Ⅱ Ⅲ Ⅳ 2016 Ⅰ Ⅱ Ⅲ Ⅳ 2017 Ⅰ Ⅱp 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 2 3 4 5 6p 7p p: Preliminary Source: Statistics Korea

y-o-y change (%)

114.6 119.5 109.1 113.2 113.2 123.0 114.6 119.9 117.2 126.1 116.8 121.9 108.0 105.8 113.5 112.8 117.2 109.5 113.2 110.0 116.5 121.7 121.8 125.6 113.8 109.3 120.6 117.1 122.9 119.8 118.0 116.8 116.7 124.8 125.7 127.9 118.5 109.8 122.0 120.1 124.6 121.1 122.1

4.1 4.3 2.4 3.9 3.6 6.3 5.0 5.9 3.5 2.5 1.9 1.7 -2.3 6.4 3.5 6.3 4.2 1.0 2.4 2.1 6.2 9.0 6.2 4.1 5.4 3.3 6.3 3.8 4.9 9.4 4.2 6.2 0.2 2.5 3.2 1.8 4.1 0.5 1.2 2.6 1.4 1.1 3.5

Consumer goods sales index Durable goods Semi-durable goods y-o-y change (%)

135.0 141.1 126.2 131.9 132.7 149.3 134.3 146.5 134.1 149.4 138.5 152.9 127.8 116.8 133.9 129.1 130.6 136.1 139.8 129.0 129.2 143.2 146.9 157.8 125.7 125.4 151.7 138.9 145.9 154.6 140.4 136.6 125.2 144.2 148.8 155.2 127.8 134.7 152.9 146.9 154.9 156.8 156.6

10.0 4.5 7.5 8.8 7.5 16.1 6.4 11.1 1.1 0.1 3.1 4.4 9.8 -0.3 12.8 12.8 7.3 6.8 6.5 8.9 7.2 20.4 14.1 14.3 -1.6 7.4 13.3 7.6 11.7 13.6 0.4 5.9 -3.1 0.7 1.3 -1.6 1.7 7.4 0.8 5.8 6.2 1.4 11.5

y-o-y change (%)

104.1 106.7 98.1 103.2 92.6 122.3 100.4 107.7 95.8 122.8 99.0 105.4 97.9 91.6 104.7 107.2 114.2 88.3 91.9 87.9 98.1 122.2 124.5 120.3 101.4 93.0 106.8 109.2 115.0 98.9 98.5 89.1 99.8 123.8 125.0 119.7 100.6 92.1 104.2 109.8 109.5 96.9 96.1

-1.1 2.5 -2.0 -1.3 -3.5 1.5 2.3 4.4 3.5 0.4 -1.4 -2.1 -2.6 -0.2 -3.0 1.5 2.4 -8.8 -3.8 -3.7 -3.2 5.6 3.3 -3.9 3.6 1.5 2.0 1.9 0.7 12.0 7.2 1.4 1.7 1.3 0.4 -0.5 -0.8 -1.0 -2.4 0.5 -4.8 -2.0 -2.4

Nondurable goods

y-o-y change (%)

109.7 115.0 105.9 108.7 113.2 111.1 111.5 112.9 118.7 116.7 114.4 114.7 103.2 106.8 107.8 107.6 112.2 106.4 110.2 110.8 118.7 111.4 108.9 112.9 113.6 108.9 112.0 110.4 115.6 112.8 116.1 119.7 120.2 116.1 115.2 118.8 122.0 105.9 115.4 112.0 117.1 115.0 117.3

3.1 4.8 1.5 3.3 4.2 3.3 5.3 3.9 4.9 5.0 2.6 1.6 -7.9 13.0 1.5 5.1 3.2 1.8 2.5 0.8 9.5 4.6 3.1 2.4 10.1 2.0 3.9 2.6 3.0 6.0 5.4 8.0 1.3 4.2 5.8 5.2 7.4 -2.8 3.0 1.4 1.3 2.0 1.0

Economic Bulletin

Statistical Appendices

5. Machinery orders received and facility investment index Period 2015 2016 2015 Ⅰ Ⅱ Ⅲ Ⅳ 2016 Ⅰ Ⅱ Ⅲ Ⅳ 2017 Ⅰ Ⅱp 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 2 3 4 5 6p 7p p: Preliminary Source: Statistics Korea

Domestic machinery orders received excluding ship (billion won, constant value) Total Public Private y-o-y change (%)

25,453 26,413 6,459 7,032 5,501 6,461 6,419 6,818 5,682 7,494 8,280 8,976 2,334 1,857 2,268 2,771 2,101 2,159 2,010 1,631 1,860 1,999 1,969 2,493 1,682 2,279 2,458 1,987 2,155 2,676 2,018 1,659 2,005 1,812 2,303 3,379 2,286 2,667 3,327 2,899 2,651 3,426 2,842

-3.9 3.8 -2.5 15.2 -28.3 6.3 -0.6 -3.0 3.3 16.0 29.0 31.6 33.1 0.7 -25.1 21.9 14.8 7.9 13.5 -60.1 2.3 3.3 -14.7 35.7 -27.9 22.7 8.4 -28.3 2.5 23.9 0.4 1.7 7.8 -9.4 16.9 35.5 36.0 17.0 35.3 45.9 23.0 28.0 40.8

y-o-y change (%)

1,921 2,842 405 493 399 624 635 570 470 1,167 687 542 116 141 148 127 197 169 133 160 106 98 228 298 69 255 312 188 169 213 52 84 334 59 141 967 118 226 342 241 117 184 289

-61.7 48.0 -66.9 61.6 -85.3 -19.8 56.9 15.7 17.7 87.1 8.2 -4.9 32.0 17.6 -85.4 30.7 69.1 84.7 50.2 -93.7 34.8 -53.6 -46.7 113.6 -40.7 80.7 110.8 48.7 -14.1 25.6 -61.3 -47.3 214.8 -39.7 -38.3 224.7 71.7 -11.1 9.8 28.1 -30.9 -13.5 460.5

y-o-y change (%)

23,533 23,571 6,054 6,539 5,101 5,838 5,784 6,248 5,212 6,327 7,594 8,434 2,218 1,716 2,121 2,645 1,905 1,990 1,876 1,471 1,754 1,902 1,742 2,195 1,613 2,025 2,147 1,799 1,986 2,464 1,966 1,575 1,671 1,753 2,163 2,411 2,168 2,441 2,985 2,658 2,534 3,242 2,553

9.6 0.2 12.0 12.7 2.8 10.1 -4.5 -4.4 2.2 8.4 31.3 35.0 33.2 -0.5 5.2 21.5 11.1 4.2 11.5 -4.6 0.8 10.2 -7.4 29.3 -27.3 18.0 1.2 -32.0 4.3 23.8 4.8 7.1 -4.7 -7.8 24.2 9.9 34.4 20.6 39.0 47.8 27.6 31.6 29.8

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

change (%)

112.2 110.7 108.3 113.5 111.6 115.2 100.1 114.2 106.3 122.0 118.2 134.4 103.8 99.0 122.1 113.9 107.9 118.6 120.2 106.3 108.3 113.0 107.8 124.9 97.0 90.7 112.7 111.0 110.6 121.1 105.0 109.8 104.0 109.3 118.8 138.0 107.0 108.4 139.1 126.9 132.7 143.5 131.2

6.9 -1.3 9.2 5.2 10.8 2.0 -7.6 0.6 -4.7 5.9 18.1 17.7 14.8 3.6 11.2 3.0 -0.3 13.2 8.0 17.3 8.1 12.9 -4.3 -1.0 -6.6 -8.4 -7.7 -2.5 2.5 2.1 -12.6 3.3 -4.0 -3.3 10.2 10.5 10.3 17.7 23.4 14.3 20.0 18.5 25.0

September 2017

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

Period 2015 2016 2015 Ⅰ Ⅱ Ⅲ Ⅳ 2016 Ⅰ Ⅱ Ⅲ Ⅳ 2017 Ⅰ Ⅱp 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 2 3 4 5 6p 7p

Total

Value of construction completed Public Private

y-o-y change (%)

102,614 119,959 21,925 25,735 25,420 35,895 24,533 29,977 29,573 35,895 30,622 35,593 7,055 6,870 8,000 7,915 7,994 9,826 8,104 8,123 9,193 8,714 8,888 11,932 7,509 7,424 9,600 9,027 9,347 11,603 9,545 9,832 10,195 10,474 11,459 13,962 8,988 9,658 11,976 11,230 11,253 13,110 11,320

p: Preliminary Source: Statistics Korea

4.2 16.9 1.1 -1.7 7.7 21.5 11.9 16.5 16.3 21.5 24.8 18.7 0.0 3.1 0.6 -6.6 -2.4 3.3 2.4 5.2 15.4 5.7 6.4 14.3 6.4 8.1 20.0 14.0 16.9 18.1 17.8 21.0 10.9 20.2 28.9 17.0 19.7 30.1 24.7 24.4 20.4 13.0 18.6

y-o-y change (%)

31,034 30,907 6,681 8,286 7,247 9,046 6,710 8,099 7,061 9,046 6,960 8,108 2,067 2,121 2,494 2,493 2,358 3,434 2,312 2,224 2,710 2,292 2,465 4,062 2,045 1,976 2,689 2,317 2,326 3,456 2,256 2,344 2,460 2,348 2,779 3,920 1,972 2,149 2,839 2,302 2,428 3,378 2,292

-3.1 -0.4 -6.5 -4.9 0.0 2.6 0.4 -2.3 -2.6 2.6 3.7 0.1 -10.7 -3.9 -5.1 -9.0 -8.8 1.5 -4.8 -4.3 8.8 -9.5 -7.8 9.6 -1.1 -6.8 7.8 -7.1 -1.4 0.6 -2.4 5.4 -9.2 2.4 12.7 -3.5 -3.6 8.8 5.6 -0.7 4.4 -2.2 1.6

Total

y-o-y change (%)

67,349 83,686 14,482 16,451 17,164 25,454 16,512 20,494 21,226 25,454 22,619 26,574 47,680 4,527 5,187 5,112 5,319 6,019 5,523 5,598 6,043 6,043 6,025 7,185 5,144 5,086 6,282 6,299 6,611 7,585 6,914 7,109 7,203 7,693 8,226 9,535 6,682 7,232 8,705 8,641 8,543 9,390 8,764

7.9 24.3 5.9 -0.4 11.7 32.2 14.0 24.6 23.7 32.2 37.0 29.7 7.1 6.8 4.0 -6.3 0.1 4.9 7.3 9.5 18.5 12.5 13.7 16.0 7.9 12.3 21.1 23.2 24.3 26.0 25.2 27.0 19.2 27.3 36.5 32.7 29.9 42.2 38.6 37.2 29.2 23.8 26.8

Domestic construction orders received Public Private

y-o-y change (%)

134,493 146,247 25,470 35,382 36,494 46,811 29,008 33,013 36,970 46,811 30,050 38,692 7,520 5,432 12,519 9,100 12,640 13,641 8,681 8,767 19,046 10,387 13,244 13,517 7,339 10,002 11,666 10,850 9,656 12,507 11,991 13,372 11,607 14,819 12,563 19,428 8,551 12,437 9,062 14,564 11,425 12,704 8,295

48.4 8.7 57.8 49.8 50.6 26.0 13.9 -6.7 1.3 26.0 3.6 17.2 35.6 -3.5 152.1 21.3 85.3 46.7 23.4 -0.3 126.4 29.8 107.0 10.8 -2.4 84.1 -6.8 19.2 -23.6 -8.3 38.1 52.5 -39.1 42.7 -5.1 43.7 16.5 24.3 -22.3 34.2 18.3 1.6 -30.8

y-o-y change (%)

28,546 33,963 4,599 8,962 4,899 12,619 7,816 5,564 7,964 12,619 7,313 7,732 1,325 1,140 2,134 2,569 2,368 4,025 1,791 1,921 1,187 1,803 3,265 5,019 2,693 2,362 2,761 1,185 2,126 2,254 2,626 3,404 1,933 3,212 2,792 6,615 2,255 3,091 1,967 2,102 1,486 4,143 1,808

8.0 19.0 -22.4 36.5 -5.5 25.1 70.0 -37.9 62.6 25.1 -6.4 38.9 -35.3 -49.2 30.7 35.6 19.4 49.8 17.0 18.8 -41.6 27.6 76.5 -8.7 103.3 107.1 29.4 -53.9 -10.2 -44.0 46.6 77.2 62.9 78.2 -14.5 31.8 -16.3 30.9 -28.7 77.4 -30.1 83.8 -31.2

y-o-y change (%)

103,185 108,561 20,586 25,902 30,869 33,363 20,485 26,705 27,196 33,363 18,665 30,211 6,082 4,210 10,293 6,475 10,169 9,258 6,813 6,541 17,515 8,583 9,419 7,827 4,373 7,559 8,552 9,297 7,412 9,995 8,499 9,464 9,233 11,532 9,667 12,164 6,293 5,999 6,374 11,852 9,880 8,479 6,450

66.1 5.2 110.9 55.0 67.9 29.2 -0.5 3.1 -11.9 29.2 -8.9 13.1 83.8 30.0 220.4 15.7 113.2 45.8 27.0 -6.0 189.0 34.0 112.5 21.9 -28.1 79.5 -16.9 43.6 -27.1 8.0 24.7 44.7 -47.3 34.4 2.6 55.4 43.9 -20.6 -25.5 27.5 33.3 -15.2 -24.1

Economic Bulletin

Statistical Appendices

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

indicator indicator Leading index Cyclical index Cyclical of leading index Coincident of coincident (2010=100) (2010=100) (2010=100) index (2010=100) 112.9 113.2 113.4 113.8 114.1 114.4 114.6 115.2 115.8 116.2 116.5 117.0 117.7 118.1 118.7 119.1 119.8 120.1 120.5 121.0 121.6 122.0 122.4 122.6 122.7 122.8 123.1 123.7 124.2 124.5 125.0 125.8 126.5 127.0 127.5 128.1 128.6 129.3 129.7 130.3 131.0 131.9 132.6 -

100.6 100.5 100.4 100.4 100.3 100.3 100.1 100.2 100.4 100.4 100.3 100.3 100.6 100.6 100.7 100.7 100.8 100.7 100.7 100.7 100.7 100.7 100.6 100.4 100.1 99.7 99.7 99.8 99.8 99.8 99.9 100.1 100.3 100.5 100.5 100.6 100.7 100.9 100.8 101.0 101.2 101.5 101.7 -

112.0 112.3 112.8 113.0 113.0 113.2 113.5 113.9 114.1 114.0 114.2 114.9 115.3 115.9 116.2 116.6 116.4 116.5 116.8 117.5 118.4 119.0 119.0 119.3 119.3 119.5 119.6 119.9 120.5 121.0 121.6 122.1 122.2 122.2 122.6 123.2 123.8 124.1 124.7 125.1 125.2 125.3 125.7 -

100.0 100.0 100.2 100.1 99.9 99.8 99.8 99.9 99.8 99.5 99.5 99.8 99.9 100.2 100.1 100.2 99.8 99.6 99.6 99.9 100.4 100.7 100.4 100.4 100.1 100.0 99.9 99.9 100.1 100.2 100.5 100.6 100.4 100.2 100.3 100.5 100.7 100.7 101.0 101.0 100.8 100.7 100.7 -

CSI1 109.0 108.0 108.5 108.4 104.5 107.0 104.7 106.5 107.3 104.7 102.7 101.1 102.5 103.1 101.4 104.0 105.3 98.4 100.3 101.6 102.7 105.1 105.7 102.6 100.0 97.9 100.0 101.6 99.2 98.8 101.0 101.9 101.8 102.0 95.7 94.1 93.3 94.4 96.7 101.2 108.0 111.1 111.2 109.9 -

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

BOK BSI2 Results

Prospects

78 79 78 76 75 75 75 75 77 73 76 76 75 74 74 74 69 65 71 71 70 73 69 69 67 64 65 66 68 70 72 73 72 73 74 74 77 77 77 77 78 77 78 81 -

81 83 82 81 80 79 79 77 76 78 77 78 79 75 80 76 76 74 68 72 73 71 72 71 70 68 65 67 69 72 72 74 76 75 74 74 73 78 79 78 79 82 81 81 84

September 2017

8. Prices

Period 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 2 3 4 5 6 7 8

All items

y-o-y change (%)

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 99.9 100.2 100.4 100.8 100.6 100.8 100.8 100.8 100.6 100.9 101.5 101.6 101.5 101.6 102.4 102.8 102.8 102.7 102.8 102.7 102.9 103.5

Source: Bank of Korea

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 1.9 2.2 1.9 2.0 1.9 2.2 2.6

Consumer prices (2015=100) Commodities Services y-o-y change (%)

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 98.5 100.0 100.3 100.1 100.1 101.1 101.6 101.5 100.8 101.0 100.9 100.8 102.0

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 1.7 2.4 1.6 2.0 1.8 2.7 3.6

Core

y-o-y change (%)

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 99.8 100.4 100.6 100.4 100.6 100.5 100.7 101.3 101.6 101.8 101.9 102.2 102.2 102.6 102.8 102.6 102.7 102.6 102.8 103.5 103.7 103.9 104.1 104.2 104.1 104.5 104.7

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 2.1 2.1 2.2 2.0 1.9 1.9 1.8

y-o-y change (%)

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 99.9 100.2 100.3 100.2 100.4 100.4 100.6 101.0 101.2 101.3 101.5 101.7 101.8 101.5 101.6 101.7 102.1 102.0 101.9 102.5 102.7 102.8 102.8 103.1 103.2 103.3 103.4

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 1.5 1.4 1.3 1.4 1.4 1.8 1.8

Producer prices (2010=100) All items Commodities y-o-y change (%)

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 99.5 100.0 100.9 102.3 102.7 102.7 102.4 102.2 101.8 101.9 102.2

-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 3.9 4.3 4.3 3.8 3.4 2.8 3.0 3.2

y-o-y change (%)

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 99.0 99.5 99.3 99.0 98.5 97.8 97.9 98.4

-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 5.3 6.0 5.9 5.1 4.4 3.4 3.7 4.2

Economic Bulletin

Statistical Appendices

9. Employment (I) Period 2015 2016 2015 Ⅰ Ⅱ Ⅲ Ⅳ 2016 Ⅰ Ⅱ Ⅲ Ⅳ 2017 Ⅰ Ⅱ 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 2 3 4 5 6 7 8

Economically active persons (thousands)

y-o-y change

Economically inactive persons (thousands)

y-o-y change

26,913 27,247 26,356 27,140 27,166 26,989 26,708 27,415 27,539 27,327 27,082 27,836 26,094 26,398 26,577 26,954 27,211 27,255 27,303 27,064 27,129 27,137 27,082 26,747 26,433 26,734 26,955 27,228 27,455 27,563 27,578 27,524 27,516 27,499 27,446 27,035 27,082 27,138 27,409 27,751 27,828 27,929 27,879 27,740

377 335 412 373 355 367 351 275 374 338 374 421 444 401 390 239 449 430 413 290 363 328 296 476 339 337 379 274 244 308 274 460 387 362 364 288 374 404 454 522 373 367 301 216

16,105 16,169 16,469 15,835 15,921 16,194 16,568 15,970 15,926 16,210 16,552 15,896 16,681 16,429 16,298 15,971 15,764 15,770 15,751 16,022 15,990 16,012 16,099 16,469 16,806 16,540 16,358 16,120 15,932 15,859 15,864 15,941 15,972 16,013 16,091 16,526 16,552 16,495 16,257 15,947 15,907 15,834 15,897 16,052

128 64 72 150 162 128 99 135 4 17 -17 -74 27 83 106 272 73 104 114 225 146 176 197 11 125 111 61 149 169 89 113 -81 -18 1 -8 57 -17 -45 -101 -173 -25 -24 33 111

Source: Statistics Korea

Labor force rate participation rate Employment (%) (%) 62.6 62.8 61.5 63.2 63.0 62.5 61.7 63.2 63.4 62.8 62.1 63.7 61.0 61.6 62.0 62.8 63.3 63.3 63.4 62.8 62.9 62.9 62.7 61.9 61.1 61.8 62.2 62.8 63.3 63.5 63.5 63.3 63.3 63.2 63.0 62.1 62.1 62.2 62.8 63.5 63.6 63.8 63.7 63.3

60.3 60.4 59.0 60.7 60.9 60.5 59.1 60.8 61.1 60.7 59.4 61.2 58.7 58.8 59.5 60.3 30.9 60.9 61.1 60.7 60.9 60.9 60.8 59.9 58.8 58.7 59.6 60.3 61.0 61.2 61.2 61.0 61.0 61.1 61.1 60.1 59.4 59.1 60.2 60.8 61.3 61.4 61.5 61.1

Unemployment rate (%) 3.6 3.7 4.1 3.8 3.4 3.1 4.3 3.8 3.6 3.2 4.3 3.9 3.8 4.6 4.0 3.9 3.8 3.9 3.7 3.4 3.2 3.1 3.1 3.2 3.7 4.9 4.3 3.9 3.7 3.6 3.5 3.6 3.6 3.4 3.1 3.2 4.3 5.0 4.2 4.2 3.6 3.8 3.5 3.6

September 2017

10. Employment (II) Period

Employed persons (thousands) All industry

y-o-y change

Manufacturing

y-o-y change

SOC & services

y-o-y change

25,936 26,235 25,267 26,098 26,237 26,143 25,554 26,387 26,554 26,446 25,915 26,754 25,106 25,195 25,501 25,900 26,189 26,205 26,305 26,141 26,264 26,298 26,253 25,879 25,445 25,418 25,800 26,153 26,450 26,559 26,603 26,528 26,531 26,577 26,592 26,168 25,689 25,788 26,267 26,577 26,824 26,860 26,916 26,740

337 299 354 308 310 376 287 289 318 302 360 367 347 376 338 216 379 329 326 256 347 348 285 495 339 223 300 252 261 354 298 387 267 278 339 289 243 371 466 424 375 301 313 212

4,486 4,481 4,418 4,466 4,511 4,550 4,544 4,503 4,439 4,439 4,432 4,480 4,421 4,433 4,400 4,455 4,464 4,478 4,528 4,491 4,512 4,552 4,545 4,552 4,566 4,541 4,525 4,503 4,514 4,493 4,464 4,418 4,436 4,437 4,443 4,437 4,406 4,449 4,441 4,441 4,489 4,509 4,513 4,442

156 -5 139 147 164 176 126 38 -71 -110 -112 -23 141 159 116 167 140 133 170 156 166 191 190 146 145 108 124 48 50 15 -65 -74 -76 -115 -102 -115 -160 -92 -83 -62 -25 16 50 25

20,092 20,449 19,747 20,114 20,217 20,289 19,956 20,446 20,683 20,710 20,449 20,829 19,693 19,716 19,832 20,004 20,179 20,161 20,250 20,153 20,249 20,248 20,353 20,266 19,955 19,885 20,028 20,263 20,483 20,593 20,719 20,677 20,653 20,682 20,759 20,689 20,362 20,354 20,631 20,759 20,875 20,852 20,953 20,841

287 357 307 290 253 300 209 332 466 421 493 383 317 309 294 185 364 319 247 213 300 275 256 370 262 169 196 259 304 433 469 524 404 434 406 424 407 469 604 496 392 259 234 163

2015 2016 2015 Ⅰ Ⅱ Ⅲ Ⅳ 2016 Ⅰ Ⅱ Ⅲ Ⅳ 2017 Ⅰ Ⅱ 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 2 3 4 5 6 7 8 Source: Statistics Korea

Economic Bulletin

Statistical Appendices

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

Current account

Goods

2016p Ⅰ Ⅱ Ⅲ Ⅳ

105,939.6 98,677.4 23,222.0 26,951.4 28,246.3 27,519.9 25,349.7 26,337.2 21,509.8 25,480.7

2017p Ⅰ Ⅱ 2015 1 2 3 4 5 6 7 8 9 10 11 12 2016p 1 2 3 4 5 6 7 8 9 10 11 12 2017p 1 2 3 4 5 6 7

Period 2015 2016p 2015 Ⅰ Ⅱ Ⅲ Ⅳ

p: Preliminary Source: Bank of Korea

Services

Primary income

Secondary income

420,612.0 391,330.4 106,911.2 108,418.6 102,230.9 103,051.3 89,361.7 94,709.1 99,290.3 107,969.3

-14,916.8 -17,608.0 -4,111.1 -3,037.3 -3,736.1 -4,032.3 -3,917.8 -3,910.7 -5,660.0 -4,119.5

3,572.4 1,459.3 4,067.5 -2,479.2 1,515.2 468.9 1,197.7 -2,108.9 1,262.5 1,108.0

-4,985.2 -5,619.6 -1,250.5 -1,199.8 -852.0 -1,682.9 -884.8 -1,177.5 -2,360.8 -1,196.5

138,937.2 142,980.1 44,427.0

110,955.9 112,616.2 37,566.2

-8,863.2 -6,875.4 -1,913.6

1,128.6 -5,168.9 2,711.9

-815.8 -1,484.2 -623.3

39,430.9 47,569.4 49,643.9 43,406.2 49,036.2 47,221.5 42,080.5 44,248.1 46,261.8 43,126.3 46,429.4 37,340.3 36,291.5 44,684.5 40,434.3 42,545.7 45,263.4 42,364.1 41,281.3 43,913.0 43,339.0 46,365.8 47,953.2 44,107.5 44,630.1 50,199.6 48,095.4 46,895.9 47,988.8 47,211.2

32,369.3 36,975.7 37,793.8 34,537.9 36,086.9 36,917.3 33,231.8 32,081.8 35,290.2 32,491.3 35,269.8 29,154.2 28,365.3 31,842.2 30,586.5 31,688.4 32,434.2 31,698.4 34,341.2 33,250.7 33,508.8 35,940.7 38,519.8 36,293.6 34,084.8 40,577.5 36,271.5 38,061.6 38,283.1 36,503.9

-1,658.4 -539.1 -861.6 -18.2 -2,157.5 -1,502.5 -982.4 -1,251.2 -1,490.5 -1,219.4 -1,322.4 -1,837.3 -1,158.3 -922.2 -1,530.8 -1,071.5 -1,308.4 -1,583.4 -1,498.5 -2,578.1 -1,594.5 -1,737.1 -787.9 -3,359.3 -2,229.4 -3,274.5 -2,376.1 -1,688.1 -2,811.3 -3,294.6

1,130.2 225.4 -3,236.8 -270.3 1,027.9 712.7 460.6 341.9 533.0 612.0 -676.1 1,232.2 831.1 -856.6 -4,057.1 858.5 1,089.7 -46.5 531.9 777.1 860.9 435.4 -188.3 1,090.3 631.3 -593.0 -5,026.2 -689.1 546.4 577.0

-227.9 -399.3 -496.9 -443.7 -259.2 -188.5 -119.3 -544.2 -437.7 -186.1 -1,059.1 -398.0 20.7 -507.5 -503.5 -149.8 -524.2 -623.2 -943.4 -794.2 -377.3 -231.2 -588.0 -267.1 -547.0 -1.7 -530.6 -519.8 -433.8 -728.4

Exports

Imports

122,269.2 120,445.7 24,516.1 33,667.7 31,319.2 32,766.2 28,954.6 33,534.3 28,268.1 29,688.7

542,811.2 511,776.1 131,427.3 142,086.3 133,550.1 135,817.5 118,316.3 128,243.4 127,558.4 137,658.0

19,430.9 16,835.4 7,035.8

27,981.3 30,363.9 6,860.8

6,305.5 9,880.7 7,254.8 8,136.1 11,560.5 9,325.9 8,207.6 10,712.8 9,576.4 9,841.5 8,102.0 7,183.0 7,619.7 10,547.0 3,756.4 10,494.5 12,086.3 8,412.6 5,030.1 8,067.1 8,719.3 8,892.2 7,869.2 5,277.8 8,400.2 5,752.9 3,891.1 5,937.3 7,007.0 7,261.3

7,061.6 10,593.7 11,850.1 8,868.3 12,949.3 10,304.2 8,848.7 12,166.3 10,971.6 10,635.0 11,159.6 8,186.1 7,926.2 12,842.3 9,847.8 10,857.3 12,829.2 10,665.7 6,940.1 10,662.3 9,830.2 10,425.1 9,433.4 7,813.9 10,545.3 9,622.1 11,823.9 8,834.3 9,705.7 10,707.3

September 2017

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

Period 2015 2016p 2015 Ⅰ Ⅱ Ⅲ Ⅳ 2016p Ⅰ Ⅱ Ⅲ Ⅳ 2017p Ⅰ Ⅱ 2015 1 2 3 4 5 6 7 8 9 10 11 12 2016p 1 2 3 4 5 6 7 8 9 10 11 12 2017p 1 2 3 4 5 6 7

Financial account*

Direct investment

Portfolio investment

Financial derivatives

Other investment

Reserve assets

106,299.2 100,385.6 22,974.3 25,857.1 29,806.1 27,661.7 28,794.3 19,126.9 27,255.5 25,208.9 19,554.4 13,132.6 6,561.4 6,015.2 10,397.7 9,207.3 7,148.8 9,501.0 10,175.7 8,778.2 10,852.2 11,148.7 7,808.2 8,704.8 7,556.3 9,199.0 12,039.0 713.3 9,092.9 9,320.7 10,151.2 7,521.4 9,582.9 7,044.3 8,898.8 9,265.8 4,347.8 9,205.6 6,001.0 1,828.4 2,582.4 8,721.8 9,770.0

19,656.3 16,447.6 4,328.8 6,256.2 3,695.1 5,376.2 5,266.0 1,893.5 2,296.8 6,991.3 6,982.6 3,301.3 933.9 1,186.6 2,208.3 1,267.5 375.4 4,613.3 -394.9 -280.6 4,370.6 3,452.7 589.0 1,334.5 13.8 1,645.1 3,607.1 -121.2 698.1 1,316.6 845.5 431.6 1,019.7 1,358.1 657.7 4,975.5 3,268.1 4,246.7 -532.2 1,363.0 668.9 1,269.4 397.9

49,529.8 66,333.6 7,743.0 7,111.1 15,559.7 19,116.0 16,887.9 13,426.6 15,949.6 20,069.5 8,033.0 11,205.0 3,385.5 3,030.3 1,327.2 107.2 353.1 6,650.8 8,169.7 2,395.5 4,994.5 7,118.3 5,228.6 6,769.1 5,452.2 5,861.0 5,574.4 2,827.8 4,547.3 6,051.5 254.4 6,712.4 8,982.8 9,868.7 6,968.2 3,232.6 4,772.3 878.2 2,382.5 2,763.2 5,531.7 2,910.1 3,207.0

1,791.3 -3,177.9 -726.3 -759.5 4,731.1 -1,454.0 2,724.0 -1,185.3 -3,798.1 -918.5 -3,107.6 -2,063.6 -310.7 -332.5 -83.1 -581.5 -429.5 251.5 1,384.8 1,616.5 1,729.8 -1,272.4 -600.1 418.5 1,227.8 756.6 739.6 -1,043.5 -463.7 321.9 -471.8 -1,292.6 -2,033.7 -740.5 100.4 -278.4 -317.6 -1,579.1 -1,210.9 -909.0 -413.3 -741.3 -221.7

23,269.2 13,092.8 4,518.7 5,947.4 10,106.9 2,696.2 5,202.7 4,043.6 5,850.2 -2,003.7 6,910.1 475.7 -1,475.4 1,931.8 4,062.3 5,010.6 3,951.7 -3,014.9 1,988.9 8,928.5 -810.5 -379.6 978.0 2,097.8 480.2 2,502.0 2,220.5 -2,266.4 3,909.7 2,400.3 7,556.3 -1,419.0 -287.1 -3,662.3 1,689.6 -31.0 -3,633.2 5,811.4 4,731.9 -1,217.9 -3,283.4 4,977.0 6,257.9

12,052.6 7,689.5 7,110.1 7,301.9 -4,286.7 1,927.3 -1,286.3 948.5 6,957.0 1,070.3 736.3 214.2 4,028.1 199.0 2,883.0 3,403.5 2,898.1 1,000.3 -972.8 -3,881.7 567.8 2,229.7 1,612.7 -1,915.1 382.3 -1,565.7 -102.9 1,316.6 401.5 -769.6 1,966.8 3,089.0 1,901.2 220.3 -517.1 1,367.1 258.2 -151.6 629.7 -170.9 78.5 306.6 128.9

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

Capital account -60.2 -36.6 -22.0 -25.6 -26.2 13.6 -11.6 -7.0 11.0 -29.0 36.4 -60.3 -13.0 -1.7 -7.3 -8.7 -1.6 -15.3 -29.9 1.5 2.2 -5.4 18.8 0.2 -6.1 -2.3 -3.2 -5.0 1.0 -3.0 2.7 17.1 -8.8 -9.6 -34.9 15.5 40.1 -2.0 -1.7 -26.2 -2.0 -32.1 15.3

Economic Bulletin

Statistical Appendices

13. Financial indicators (period average)

Yields (%) Period 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 2 3 4 5 6 7 8 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 2.3 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 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 2.5 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 1.5 1.5 1.4 1.4 1.4 1.4 1.4

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 1.7 1.7 1.7 1.7 1.7 1.7 1.8

Stock Treasury bonds (5 years)

Corporate bonds (3 years, AA-)

KOSPI (end-period)

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 1.8 1.8 1.9 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 1.9 1.9 1.9 1.9 1.9 1.9 2.0

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 2.1 2.2 2.2 2.2 2.2 2.3 2.3

1,941.15 1,979.99 1,985.61 1,961.79 1,994.96 2,002.21 2,076.12 2,068.54 2,020.09 1,964.43 1,980.78 1,915.59 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 2,091.64 2,160.23 2,205.44 2,347.38 2,391.79 2,402.71 2,363.19

September 2017

14. Monetary indicators (period average, billion won)

Reserve money Period 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 2 3 4 5 6 7

y-o-y change (%)

103,331.5 120,691.4 137,441.5 98,541.6 100,547.9 100,624.0 98,898.5 101,791.4 101,412.3 101,164.2 107,682.4 105,354.1 107,117.5 106,667.9 110,175.6 113,304.2 116,502.4 115,974.9 115,132.7 117,726.3 118,688.2 122,041.0 121,854.4 126,572.2 125,616.2 126,767.1 128,117.5 131,279.3 134,913.0 132,957.9 135,038.9 135,971.3 135,758.4 135,906.7 139,073.9 142,079.6 141,103.5 141,757.2 143,458.7 147,380.8 150,092.9 145,049.0 149,630.1 149,446.2 150,519.7 149,955.1

Source: Bank of Korea

13.1 16.8 13.9 14.8 13.2 12.4 12.7 13.5 11.2 11.6 14.9 10.7 14.4 13.9 13.6 15.0 15.9 15.3 16.4 15.7 17.0 20.6 13.2 20.1 17.3 18.8 16.3 15.9 15.8 14.6 17.3 15.5 14.4 11.4 14.1 12.3 12.3 11.8 12.0 12.3 11.3 9.1 10.8 9.9 10.9 10.3

M2 y-o-y change (%)

536,733.4 636,639.0 734,411.8 515,742.5 518,475.5 520,299.0 518,809.3 523,069.9 532,041.2 534,028.8 538,640.3 548,550.8 551,416.0 562,006.2 577,721.1 579,964.2 592,737.4 600,719.9 610,803.3 621,985.5 630,546.3 645,975.4 653,105.9 665,691.1 669,737.7 677,629.2 690,772.4 699,767.3 708,014.0 713,861.2 720,818.5 722,544.4 730,637.8 735,172.2 738,120.9 751,408.5 753,367.3 762,639.7 776,589.6 780,995.5 776,362.5 789,187.8 791,859.3 791,074.8 798,890.2 804,853.4

10.9 18.6 15.4 10.9 9.8 10.1 9.1 10.0 9.3 9.2 11.9 11.8 12.1 12.6 13.4 12.5 14.3 15.5 17.7 18.9 18.5 21.0 21.3 21.4 21.5 20.6 19.6 20.7 19.4 18.8 18.0 16.2 15.9 13.8 13.0 12.9 12.5 12.5 12.4 11.6 9.7 10.6 9.9 9.5 9.3 9.5

Lf y-o-y change (%)

2,009,576.3 2,182,911.9 2,342,621.3 1,937,045.6 1,954,340.7 1,964,954.0 1,970,361.6 1,982,390.9 1,999,376.3 2,013,935.1 2,031,777.2 2,037,600.8 2,051,149.8 2,083,253.5 2,088,729.8 2,092,223.5 2,109,892.3 2,127,887.8 2,148,114.7 2,166,741.1 2,179,561.1 2,200,510.9 2,218,660.3 2,230,000.7 2,232,432.0 2,242,848.2 2,246,070.1 2,261,356.4 2,285,313.5 2,294,544.7 2,299,081.3 2,312,801.2 2,334,256.2 2,352,245.1 2,377,323.1 2,383,040.5 2,391,059.2 2,406,393.5 2,414,040.9 2,417,635.8 2,420,285.6 2,436,994.7 2,450,220.9 2,454,386.7 2,470,861.1 2,472,110.4

6.6 8.6 7.3 5.2 5.2 5.5 5.5 6.0 6.1 6.5 7.6 7.1 7.5 8.3 8.1 8.0 8.0 8.3 9.0 9.3 9.0 9.3 9.2 9.4 8.8 7.7 7.5 8.1 8.3 7.8 7.0 6.7 7.1 6.9 7.2 6.9 7.1 7.3 7.5 6.9 5.9 6.2 6.6 6.1 5.9 5.1

y-o-y change (%)

2,721,502.2 2,986,699.4 3,229,766.4 2,635,100.1 2,647,674.0 2,659,443.2 2,669,341.4 2,684,643.9 2,703,088.1 2,725,737.6 2,743,972.5 2,759,390.8 2,776,968.0 2,817,698.0 2,834,968.4 2,857,610.1 2,876,467.8 2,907,976.4 2,936,746.7 2,960,998.1 2,986,316.5 3,013,503.9 3,028,981.1 3,049,823.2 3,059,051.9 3,076,029.2 3,086,887.8 3,110,535.8 3,133,492.2 3,158,687.8 3,170,277.9 3,189,899.3 3,223,154.5 3,242,338.3 3,270,365.6 3,288,026.0 3,305,950.4 3,328,489.7 3,337,069.4 3,359,110.8 3,364,315.8 3,387,986.2 3,404,957.2 3,416,320.2 3,440,571.4 3,454,563.6

7.0 9.7 8.1 6.7 6.4 6.4 6.2 6.6 6.7 6.9 7.3 7.1 7.3 8.1 8.2 8.4 8.6 9.3 10.0 10.3 10.5 10.6 10.4 10.5 10.2 9.2 8.9 8.9 8.9 8.6 8.0 7.7 7.9 7.6 8.0 7.8 8.1 8.2 8.1 8.0 7.4 7.3 7.4 7.1 6.7 6.5

Economic Bulletin

Statistical Appendices

15. Exchange rates (end-period)

US $/\ Period 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 2 3 4 5 6 7 8 Source: Bank of Korea

100ďżĽ/\

Won

y-o-y change (%)

1,099.2 1,172.0 1,208.5 1,079.2 1,067.7 1,068.8 1,031.7 1,021.6 1,014.4 1,024.3 1,013.6 1,050.6 1,054.0 1,101.1 1,099.2 1,090.8 1,099.2 1,105.0 1,068.1 1,108.0 1,124.1 1,166.3 1,176.3 1,194.5 1,142.3 1,150.4 1,172.0 1,208.4 1,235.4 1,153.5 1,143.9 1,190.6 1,164.7 1,125.7 1,118.5 1,096.3 1,145.2 1,168.5 1,208.5 1,157.8 1,132.1 1,116.1 1,130.1 1,123.9 1,139.6 1,119.1 1,122.8

4.2 6.6 3.1 -0.3 -1.6 -3.9 -6.9 -9.5 -11.8 -8.0 -8.8 -2.3 -0.7 3.7 4.2 1.1 3.0 3.4 3.5 8.5 10.8 13.9 16.1 13.7 8.4 4.5 6.6 10.8 12.4 4.4 7.1 7.5 3.6 -3.5 -4.9 -8.2 0.3 1.6 3.1 -4.2 -8.4 -3.2 -1.2 -5.6 -2.2 -0.6 0.4

Euro/\

Won

y-o-y change (%)

Won

y-o-y change (%)

920.1 972.0 1,036.8 1,043.7 1,044.8 1,038.7 1,005.3 1,004.2 1,000.0 995.7 977.6 960.2 964.1 933.9 920.1 921.4 920.7 920.3 897.2 894.6 917.2 939.3 970.1 996.8 944.1 936.7 972.0 1,017.1 1,085.8 1,026.0 1,058.2 1,072.8 1,132.2 1,073.7 1,086.3 1,083.7 1,094.4 1,038.8 1,036.8 1,017.9 1,004.0 998.5 1,016.0 1,014.3 1,017.6 1,012.3 1,017.4

-8.4 5.6 6.7 -12.2 -11.2 -12.0 -11.2 -10.1 -14.3 -12.3 -13.4 -12.6 -10.5 -10.0 -8.4 -11.7 -11.9 -11.4 -10.8 -10.9 -8.3 -5.7 -0.8 3.8 -2.1 0.3 5.6 10.4 17.9 11.5 17.9 19.9 23.4 14.3 12.0 8.7 15.9 10.9 6.7 0.1 -7.5 -2.7 -4.0 -5.4 -10.1 -5.7 -6.3

1,336.5 1,280.5 1,267.6 1,473.6 1,463.6 1,469.4 1,425.0 1,389.6 1,384.2 1,371.8 1,336.2 1,333.3 1,328.8 1,372.2 1,336.5 1,235.7 1,230.7 1,196.8 1,187.0 1,215.2 1,260.5 1,275.4 1,317.3 1,343.9 1,254.8 1,218.3 1,280.5 1,322.2 1,348.3 1,307.4 1,298.4 1,326.8 1,295.5 1,246.7 1,246.9 1,230.3 1,257.1 1,244.3 1,267.6 1,239.5 1,198.6 1,192.6 1,228.1 1,255.6 1,304.0 1,315.7 1,335.6

-8.2 -4.2 -1.0 0.3 2.7 3.1 -1.8 -5.6 -7.6 -7.1 -9.1 -8.1 -8.8 -5.0 -8.2 -16.1 -15.9 -18.6 -16.7 -12.6 -8.9 -7.0 -1.4 0.8 -5.6 -11.2 -4.2 7.0 9.6 9.2 9.4 9.2 2.8 -2.3 -5.3 -8.5 0.2 2.1 -1.0 -6.3 -11.1 -8.8 -5.4 -5.4 0.7 5.5 7.1

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://www.ftc.go.kr/eng 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

September 2017

ECONOMIC BULLETIN (Republic of Korea)

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