201711

Republic of Korea

Economic Bulletin

Vol.39 No.11 NOVEMBER 2017 eb.kdi.re.kr ISSN 2287-7266

The Green Book: Current Economic Trends Policy Issue Korea to Boost Entrepreneurship, Building up Startup-friendly Environment

Economic News Briefing Government Unveils Support Prior to Minimum Wage Increase Korea and Canada Sign Standing Currency Swap Agreement Government to Improve Regulations to Develop KTB Market Korea Grows 1.4% in Q3 2017

Statistical Appendices

Janggu The janggu , which is a double-headed drum with an hourglass-shaped body, is one of the most widely used instruments in traditional Korean music.

The left head of the janggu is covered with thick leather to produce deep tones, while the right head is covered with lighter leather to produce high tones.

02

The Green Book: Current Economic Trends Overview

03

01. External economic situation

04

02. Private consumption

09

03. Facility investment

11

04. Construction investment

13

05. Exports and imports

15

06. Mining and manufacturing production

17

07. Service sector activity

19

08. Employment

21

09. Financial markets

25

9.1 Stock market

25

9.2 Exchange rate

26

9.3 Bond market

27

9.4 Money supply and money market

28

10. Balance of payments

29

11. Prices

32

11.1 Consumer prices

32

11.2 International oil and commodity prices

34

12. Real estate market

36

12.1 Housing market

36

12.2 Land market

38

13. Composite indices of business cycle indicators

42

11

Contents

40

Policy Issue Korea to boost entrepreneurship, building up startup-friendly environment

45

Economic News Briefing Government unveils support prior to minimum wage increase Korea and Canada sign standing currency swap agreement Government to improve regulations to develop KTB market Korea grows 1.4% in Q3 2017 (advanced) Korea ranks 4th in World Bank’s Doing Business index

49 Statistical Appendices

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

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

03

November 2017

Overview The Korean economy continued to improve as exports and production have been strong amid recovering global economies, and domestic demand showed signs of rebound.

The economy added 314,000 jobs year-on-year in September, picking up from the temporary setback in the previous month (212,000 jobs) due to the bad weather.

Supplementary budget spending contributed somewhat to the increase.

Consumer price inflation in October fell 0.3 percentage points from the previous month (up 2.1% → up 1.8%, y-o-y) due to low vegetable prices and without a low base effect from last summer’s electricity rate cut.

Mining and manufacturing production rose for the third month in a row in September (up 0.1% → up 0.1%, m-o-m) as automobiles, vessels and chemical products improved, and service output rose for the fourth consecutive month (up 0.1% → up 1.3%, m-o-m) due to strong wholesale & retail.

Retail sales rebounded in September (down 0.9% → up 3.1%, m-o-m) due to increased demand before the Chuseok holiday and strong smartphone sales.

Facility investment, which had slowed down for two months in a row, surged in September (down 0.7% → up 5.5%, m-o-m) due to a low base effect and strong investment in semiconductor manufacturing equipment. Construction investment continued to decline compared with the previous month (down 1.7% → down 2.2%, m-o-m) due to a slowdown in new home construction, which had risen for three consecutive months. Year-on-year construction investment rose 16.1 percent.

In September, the cyclical indicator of the coincident composite index rose 0.1 points from the previous month to 100.9, and the cyclical indicator of the leading composite index fell 0.2 points to 101.6.

Exports increased for the 12th consecutive month in October (up 35.0% → up 7.1%, y-o-y), despite fewer days worked, backed by strong semiconductors, vessels and petroleum products.

In October, KOSPI increased amid strong global markets and expectations for economic recovery, and the dollar-won exchange rate fell as geopolitical risks on the Korean peninsula have eased somewhat. Government bond yields rose.

Housing prices grew in October (up 0.12% → up 0.13%, m-o-m) due to rising prices in the Seoul metropolitan area, and Jeonse (lump sum deposits with no monthly payments) price growth stayed stable (up 0.06% → up 0.06%, m-o-m).

The economy is expected to stay on a recovery path given strong exports and supplementary budget spending. However, internal and external risks linger, such as trade issues, major economies’ monetary policies and North related problems.

04

Economic Bulletin

The Green Book

The government will strengthen its risk management, and will work to help create decent jobs and boost the real economy by successfully implementing supplementary budgets.

1. External economic situation The global economy has been recovering as growth continues in both developed and emerging countries. However, there are risks arising from the spread of protectionism and monetary policy normalization in advanced economies.

US The US economy grew 3.0 percent (annualized q-o-q, advanced estimates) in the third quarter of 2017, despite hurricanes, as private consumption and nonresidential fixed investment improved. Industrial production and consumption increased in September.

Industrial production in September rose 0.3 percent month-on-month, meeting the market expectations, backed by an increase in manufacturing production (up 0.1%, m-o-m). The ISM Manufacturing Index fell in October.

ISM Manufacturing Index (base=50)

57.7 (Feb 2017) → 57.2 (Mar) → 54.8 (Apr) → 54.9 (May) → 57.8 (Jun) → 56.3 (Jul) → 58.8 (Aug) → 60.8 (Sep) → 58.7 (Oct)

US GDP growth and industrial production (%)

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

2013.Q1

Sources: US Department of Commerce, Federal Reserve Board

2014.Q1

2015.Q1

2016.Q1

2017.Q1

05

November 2017

Retail sales rose 1.6 percent month-on-month in September due to strong auto sales (up 3.6%, m-o-m) and gasoline sales (up 5.8%, m-o-m). Consumer confidence increased for a fourth consecutive month in October.

Conference Board Consumer Confidence Index (1985=100)

124.9 (Mar 2017) → 119.4 (Apr) → 117.6 (May) → 117.3 (Jun) → 120.0 (Jul) → 120.4 (Aug) → 120.6 (Sep) → 125.9 (Oct)

Existing home sales improved by 0.8 percent month-on-month in September to an annual rate of 5,390,000 homes. New home sales rebounded, rising 18.9 percent to an annual rate of 560,000 units.

Case-Shiller Home Price Index (y-o-y, %)

5.4 (Dec 2016) → 5.7 (Jan 2017) → 5.9 (Feb) → 6.0 (Mar) → 5.8 (Apr) → 5.8 (May) → 5.7 (Jun) → 5.8 (Jul) → 5.9 (Aug)

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

-5.4 (Dec 2016) → 9.3 (Jan 2017) → 2.7 (Feb) → 3.7 (Mar) → -7.5 (Apr) → 2.7 (May) → 2.1 (Jun) → -6.0 (Jul) → -3.6 (Aug) → 18.9 (Sep)

In October, nonfarm payrolls added 261,000 new jobs, falling short of the market expectations of 310,000 new jobs. The unemployment rate fell 0.1 percentage points from the previous month to the lowest level since December 2000.

Labor force participation rate (%)

63.0 (Feb 2017) → 63.0 (Mar) → 62.9 (Apr) → 62.7 (May) → 62.8 (Jun) → 62.9 (Jul) → 62.9 (Aug) → 63.1 (Sep) → 62.7 (Oct)

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

232 (Feb 2017) → 50 (Mar) → 207 (Apr) → 145 (May) → 210 (Jun) → 138 (Jul) → 208 (Aug) → 18 (Sep) → 261 (Oct)

US nonfarm payroll growth and unemployment rate (thousands)

(%)

800

12

600 10 400 200

8

0 6 -200 -400

4

-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

0

06

Economic Bulletin

The Green Book

(Percentage change from previous period)

2014 2015

2016

2017

Annual Annual Annual Q2 Q3 Q4 Q1 Q2 Q3 Aug Sep Oct

Real GDP¹

2.6

2.9

- Personal consumption expenditures

2.9

- Nonresidential fixed investment

6.9

- Residential fixed investment

1.5

2.2 2.8 1.8 1.2 3.1 3.0

-

-

-

3.6

2.7

3.8 2.8 2.9 1.9 3.3 2.4

-

-

-

2.3

-0.6

3.3 3.4 0.2 7.2 6.7 3.9

-

-

-

3.5

10.2

5.5

-4.7 -4.5 7.1 11.1 -7.3 -6.0

-

-

-

Industrial production

3.1

-0.7

-1.2

-0.2 0.2 0.2 0.4 1.3 -0.4 -0.7 0.3

-

Retail sales

4.2

2.6

3.0

1.5 0.9 1.5 1.0 0.3 0.9 -0.1 1.6

-

Existing home sales

-3.1

6.3

3.9

2.2 -1.8 3.1 1.3 -1.0 -3.1 -1.7 0.8

-

Unemployment rate²

6.2

5.3

4.9

4.9 4.9 4.7 4.7 4.4 4.3 4.4 4.2 4.1

Consumer prices (y-o-y)

1.6

0.1

1.3

1.1 1.1 1.8 2.6 1.9 2.0 1.9 2.2

-

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

China China’s economy grew 6.8 percent year-on-year in the third quarter of 2017, despite a slowdown in investment, as consumption continued to be strong.

Industrial production, retail sales and exports improved in September compared with the previous month.

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

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

(%)

14

50

12

40

10

30

8

20

6

10

0

4 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

07

November 2017

(Percentage change from same period in previous year)

2014 2015

2016

Annual Annual Annual

2017

Q2

Q3

Q4

Q1

Q2

Q3

Jul

Aug

Sep

Real GDP

7.3

6.9

6.7

6.7

6.7

6.8

6.9

6.9

6.8

-

-

-

Industrial production

8.2

6.0

6.2

6.1

6.2

6.1

6.8

6.9

6.3

6.4

6.0

6.6

Fixed asset investment 15.7 10.0 (accumulated)

8.1

9.0

8.2

8.1

9.2

8.6

7.5

8.3

7.8

7.5

Retail sales

12.0 10.6 10.4 10.2 10.5 10.6 10.9 10.8 10.3 10.4 10.1 10.3

Exports

6.0

-3.0

-7.7

-6.4

-7.0

-5.3

7.6

8.5

6.5

6.5

5.1

8.1

Consumer prices

2.0

1.4

2.0

2.1

1.7

2.2

1.4

1.4

1.6

1.4

1.8

1.6

Producer prices

-1.9

-5.2

-1.3

-2.9

-0.8

3.3

7.4

5.8

6.5

5.5

6.3

6.9

Source: China National Bureau of Statistics

Japan Japan’s economy continued to grow as retail sales rebounded and exports continued to be strong.

The Bank of Japan decided to maintain its monetary easing at the Monetary Policy Meeting held on October 30-31.

Core consumer prices (excluding fresh food, y-o-y, %)

0.2 (Mar 2017) → 0.3 (Apr) → 0.4 (May) → 0.4 (Jun) → 0.5 (Jul) → 0.7 (Aug) → 0.7 (Sep)

Japan’s GDP growth and industrial production (%)

(%)

6

25 20

4

15 10

2

5 0

0 -5

-2

- 10 - 15

-4

- 20

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

-6 2008.Q1

- 25 2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

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

08

Economic Bulletin

The Green Book

(Percentage change from previous period)

2014 2015

2016

Annual Annual Annual Q1

2017

Q2

Q3

Q4

Q1

Q2

Q3 -

Jul Aug Sep

Real GDP

0.3

1.1

1.0

0.5

0.5

0.2

0.4

0.3

0.6

Industrial production

2.1

-1.2

-0.2 -0.9

0.2

1.6

1.9

0.2

2.1

Retail sales

1.6

-0.3

-0.7 -1.3

0.0

0.5

1.5 -0.2

Exports (y-o-y)

4.8

3.8

-7.4 -7.9 -9.6 -10.2 -1.8 8.2 10.7 15.2 13.4 18.1 14.1

Consumer prices (y-o-y)

2.7

0.8

-0.1

0.0 -0.4 -0.5

0.3

0.3

-

0.4 -0.8

0.7 -0.1

0.4

-

0.6

-

2.0 -1.1

1.1 -1.6

0.4

0.8

0.7

0.7

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

Eurozone The eurozone economy grew 0.6 percent quarter-on-quarter in the third quarter of 2017, exceeding the market expectations of 0.5 percent growth, backed by an improvement in consumption and strong investment.

Manufacturing PMI

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) → 58.1 (Sep) → 58.6 (Oct)

Eurozone Economic Sentiment Indicator (base 2010=100)

108.0 (Feb 2017) → 108.0 (Mar) → 109.7 (Apr) → 109.2 (May) → 111.1 (Jun) → 111.3 (Jul) → 111.9 (Aug) → 113.1 (Sep) → 114.0 (Oct)

Eurozone’s GDP growth and industrial production (%)

(%)

2

6 4

1

2 0

0 -2

-1 -4 -2

-6 -8

-3

-10

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

-4

-12 2008.Q1

2009.Q1

Source: Eurostat Source: Eurostat

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

09

November 2017

(Percentage change from previous period)

2014 2015

2016

Annual Annual Annual Q2

2017

Q3

Q4

Q1

Q2

Q3 0.6

-

-

1.4

Real GDP

1.3

2.1

1.9

0.3

0.4

0.6

0.6

0.7

Industrial production

0.8

2.1

1.5 -0.1

0.4

1.0

0.1

1.2

Retail sales

1.5

2.7

1.5

0.3

0.6

0.9

0.3

1.0

Exports (y-o-y)

2.3

5.3

0.3 -0.2

-0.2

2.3 10.9

5.2

-

Consumer prices (y-o-y)

0.4

0.0

0.2 -0.1

0.3

0.7

1.5

1.5

1.8

Aug Sep

Oct

-

-

-

-

0.7

-

6.8

-

-

1.5

1.5

1.4

0.6 -0.5

Sources: Eurostat, Bloomberg

2. Private consumption Private consumption (advanced estimates of GDP) in the third quarter of 2017 rose 0.7 percent quarter-on-quarter and 2.4 percent year-on-year.

(Percentage change from previous period)

2014

2015

Annual Annual Q1

Private consumption² (y-o-y)

Q2

2016 Q3

2017

Q4 Annual¹ Q1¹ Q2¹ Q3¹ Q4¹ Q1¹ Q2¹ Q3¹

1.7

2.2

0.9 -0.3 1.3 1.5

-

-

1.5 1.7 2.2 3.4

2.5 -0.1 0.8 0.6 0.2 0.4 1.0 0.7 -

2.3 3.5 2.7 1.5 2.0 2.3 2.4

1. Preliminary 2. National accounts Source: The 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 September rose 3.1 percent month-on-month. Sales of durable goods (up 2.4%), semi-durable goods (up 1.3%) and nondurable goods (up 4.1%) all improved. Year-on-year, the index rose 8.3 percent..

10

Economic Bulletin

The Green Book

(Percentage change from previous period)

2015

2016

Annual Annual

2017 Q3¹

Aug¹

-

4.3

-0.2

2.0

-1.2

2.1

-0.5

1.2

1.1

-0.9

3.1

(y-o-y)

2.0

-

5.0

5.9

3.5

2.5

1.9

1.7

4.3

0.9

8.3

- Durable goods²

5.1

4.5

-4.0

5.1

-5.8

5.6

-0.3

5.3

0.1

-2.2

2.4

2.5 -10.0

Retail sales

16.4 · Automobiles - Semi-durable goods³ -0.8 1.6 - Nondurable goods

Q1

Q2

Q3

Q4

Q1

Q2

Sep¹

13.9

-20.0

18.4

-4.0

4.1

-4.8

4.3

0.2

2.5

-0.9

1.1

0.1

0.0

-1.3

-0.9

1.1

0.5

1.3

4.8

2.5

0.6

1.1

1.0

-0.3

-0.3

1.8

-0.6

4.1

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 (%)

15

10

5

0

-5

Retail sales (y-o-y) Retail sales (m-o-m)

-10 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)

In October, consumer sentiment continued to improve and Chinese tourists declined at a slower rate, while domestic sales of cars and department store sales fell.

2017 Mar

Aug

Sep

Oct

13.7

3.8

1.9

5.6

4.2

0.3

8.3

-0.8

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

1.7

0.5

-2.8

0.8

0.1

-1.0

5.0

-0.2

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

3.2

6.8

3.8

1.6

1.0

-1.6

-1.1

1.7

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

4.8

-2.7

6.3

9.7

13.7

-6.1

9.5

3.4

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

Apr

May

Jun

Jul

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

-2.6

-6.3

-9.0

-14.8

9.8

11.7

15.8

-13.5

Consumer sentiment index

96.7

101.2

108.0

111.1

111.2

109.9

107.7

109.2

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

-40.0

-66.6

-64.1

-66.4

-69.3

-61.2

-56.1 -46.9¹

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

11

November 2017

3. Facility investment Facility investment (advanced estimates of GDP) in the third quarter of 2017 rose 0.5 percent quarter-on-quarter and 16.8 percent year-on-year.

(Percentage change from previous period)

2015

2016

Annual Annual¹

Facility investment²

Q1¹

Q2¹

2017 Q3¹

Q4¹

Q1¹

Q2¹

Q3¹

4.7

-2.3

-7.0

2.6

0.9

5.9

4.4

5.2

0.5

-

-

-4.6

-2.9

-3.9

2.0

14.4

17.3

16.8

- Machinery

2.9

-2.4

-6.8

2.2

-10.2

2.5

-0.5

8.7

-

- Transportation equipment

8.7

-2.0

-7.2

2.8

6.8

7.5

6.4

3.7

-

(y-o-y)

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

The facility investment index in September rose 5.5 percent month-on-month as machinery investment increased. The index increased 25.2 percent year-on-year.

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

Facility investment (y-o-y) Facility investment (q-o-q)

-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

2016

Annual Annual

Facility investment index

2017

Q1

Q2

Q3

Q4

Q1

Q2

Q3¹

Aug¹

Sep¹

6.9

-1.3

-6.5

5.1

-1.9

8.0

5.6

4.4

-0.3

-0.7

5.5

-

-

-7.6

0.6

-4.7

5.9

18.1

17.7

20.7

12.5

25.2

3.6

-2.2

-4.7

1.2

7.1

6.8

7.4

8.6

-0.2

-3.1

9.0

- Transportation equipment 15.0

0.9

-8.7

11.8 -18.9

10.8

2.0

-5.8

-1.3

5.8

-3.8

(y-o-y) - Machinery 1. Preliminary Source: Statistics Korea

12

Economic Bulletin

The Green Book

The facility investment outlook is mixed: Facility investment pressure improved significantly in September, but domestic machinery orders grew slowly and capacity utilization rates fell.

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

71 (Jan 2017) → 76 (Feb) → 81 (Mar) → 82 (Apr) → 84 (May) → 84 (Jun) → 80 (Jul) → 78 (Aug) → 83 (Sep) → 79 (Oct) → 84 (Nov) (Percentage change from same period in previous year)

2015

2016

Annual Annual Q1

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

Q2

2017 Q3

Q4

Q1

Q2

Q3¹ Aug¹ Sep¹

-3.9

3.8

-0.6

-3.0

3.3 16.0 29.0 28.5 30.6 38.9 16.9

-

-

-8.3

7.4

-6.2 26.4

0.9

8.3

-4.2

-4.4

-61.7 48.0 56.9 15.7 17.7 87.1

8.2

-4.9

-2.6

-3.2 -75.9

-6.1

-Private

9.6

0.2

-4.5

-4.4

2.2

8.4 31.3 31.5 33.6 40.6 35.4

Machinery imports

0.4

-2.5 -13.0

-6.7

-2.2

5.9 24.1 23.4 22.8 10.9 27.8

Capacity utilization rate

74.5

Facility investment pressure²

-1.2

72.6 73.4 72.8 71.9 72.4 72.8 71.5 72.3 72.0 71.8 0.2

-0.8

0.5

-0.4

1.3

2.3

-0.5

2.5

1.5

7.5

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

Leading indicators of facility investment (trillion won)

(y-o-y, %)

10

60

9 40

8 7

20

6 0

5 4

-20

3

Machinery orders (left) Machinery imports (right)

2 2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

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

-40

13

November 2017

4. Construction investment Construction investment (advanced estimates of GDP) in the third quarter of 2017 rose 1.5 percent quarter-on-quarter and 7.5 percent year-on-year.

(Percentage change from previous period)

2015

2016

Annual Annual¹

Construction investment²

Q1¹

Q2¹

Q3¹

Q4¹

Q1¹

Q2¹

6.6

10.7

7.6

3.1

2.2

-1.2

6.8

0.3

1.5

-

-

9.0

10.6

11.2

11.6

11.3

8.0

7.5

10.0

17.3

6.0

4.9

4.1

1.7

4.9

2.4

-

0.3

-2.8

11.3

-1.1

-2.3

-8.5

12.2

-5.4

-

(y-o-y) - Building construction - Civil engineering works

2017 Q3¹

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

Construction investment (%)

15

10

5

0

-5

Construction investment (y-o-y) Construction investment (q-o-q)

-10 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)

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

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

14

Economic Bulletin

The Green Book

The value of construction completed (constant) in September fell 2.2 percent month-on-month as building construction decreased. The index rose 16.1 percent year-on-year.

(Percentage change from previous period)

2016

2015 Annual Annual Q1

Construction completed (constant)

5.0 15.4

6.2

2017

Q2

Q3

Q4

Q1

Q2

Q3¹ Aug¹ Sep¹

2.3

4.2

4.1

5.9

-1.1

0.0

-1.7

-2.2

(y-o-y)

-

- Building construction

7.3 25.7

8.2

4.7

5.7

6.9

7.0

1.7

2.6

1.0

-2.9

- Civil engineering works

1.2

2.4

-2.5

0.9

-2.4

3.1

-8.3

-7.8

-9.9

0.2

-

13.2 15.8 14.5 17.7 17.9 13.6 12.5

-2.6

8.3 16.1

1. Preliminary Source: Statistics Korea

The construction investment outlook is mixed: Building permits increased in September, but construction orders received continued to decline and apartment presales fell in October.

Apartment presales (thousands, monthly average of the quarter, Real Estate 114) 43 (Q2 2016) → 32 (Q3) → 57 (Q4) → 19 (Q1 2017) → 27 (Q2) → 30 (Q3) → 17 (Oct)

(Percentage change from same period in previous year)

2015

2016

Annual Annual Q1

Construction orders received 48.4 (current value) (q-o-q, m-o-m)

-

2017

Q2

Q3

8.4 13.9

-6.7

1.3 26.0

-

-8.4 27.2 -11.0

2.0

1.3

-9.6 51.0 -37.8

1.7

-5.0

7.9

-9.1

16.3

Q4

- Building construction - Civil engineering works

50.5 14.5 13.5 42.6

-9.4 15.1 -32.4 -6.4

Building permits²

34.3

-5.7 19.7

3.6 39.7

Q1

Q2

Q3¹

3.6 16.8 -11.4

Aug¹ Sep¹ -4.6

-0.7

-0.8

2.0

-6.8 31.0 57.2 -20.1 -15.0 -14.7

5.3 -24.8 -11.1

-5.0

-7.8

-0.3 -10.0 41.5

1. Preliminary 2. Floor area Sources: Statistics Korea, Ministry of Land, Infrastructure and Transport

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

150

100

50

0

-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)

15

November 2017

5. Exports and imports Exports (preliminary) increased 7.1 percent year-on-year to US $44.98 billion in October. Exports rose for the 12th month in a row, backed by strong major export items such as semiconductors and vessels.

By item, semiconductors, vessels and petroleum products surged, while mobile phones fell. By region, shipments to the ASEAN countries, China and the EU increased.

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

69.6 (semiconductors), 36.0 (vessels), 10.3 (petroleum products), 6.1 (petrochemicals), 4.5 (steel), -12.8 (automobiles), -29.0 (mobile phones)

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

17.4 (ASEAN countries), 13.5 (China), 2.7 (EU), -12.0 (US), -12.0 (Japan), -13.9 (Latin America), -33.3 (Middle East)

Average daily exports, an indicator adjusted to days worked, increased month-onmonth to US $2.50 billion.

Average daily exports (US $ billion)

1.87 (Oct 2016) → 1.96 (Feb 2017) → 2.03 (Mar) → 2.26 (Apr) → 2.14 (May) → 2.23 (Jun) → 2.08 (Jul) → 1.96 (Aug) → 2.35 (Sep) → 2.50 (Oct)

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

140 120 100 80 60 40 20 0

Export growth rate Semiconductors Automobiles

-20 -40 -60 -80 2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Steel

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, %)

Q1

Q2

2017

Q3

Q4

Oct

Q1

Q2

Q3

Sep

Oct1

572.66 526.76 495.43 115.19 126.02 121.85 132.36 41.98 132.10 147.20 151.04 55.13 44.98 2.3

-8.0

-5.9 -13.7

-6.7

-5.0

1.8

-3.2

14.7

16.8

24.0

35.0

7.1

Average daily 2.11 exports

1.93

1.81

1.88

1.78

1.86

1.87

1.96

2.21

2.13

2.35

2.50

1.73

1. Preliminary Source: Korea Customs Service

16

Economic Bulletin

The Green Book

Imports (preliminary) in October rose 7.4 percent year-on-year to US $37.65 billion. Imports of commodities and capital goods rose at a slower rate, while consumer goods imports fell.

Import growth by category (y-o-y, %, Sep → Oct)

22.4 → 14.0 (commodities), 27.3 → 3.6 (capital goods), 13.5 → -2.0 (consumer goods)

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

Import growth rate

-40 -60

Commodities 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, %)

Q1

Q2

2017

Q3

Q4

Oct

Q1

Q2

Q3

Sep

Oct1

525.51 436.50 406.19 93.83 99.30 102.46 110.59 35.05 116.25 117.34 120.71 41.67 37.65 1.9 -16.9

Average daily 1.94 imports

1.60

-6.9 -16.0 -10.1

-5.1

4.1

-4.7

23.9

18.2

17.8

22.6

7.4

1.49

1.50

1.56

1.56

1.72

1.76

1.70

1.77

2.09

1.41

1.48

1. Preliminary Source: Korea Customs Service

The trade balance (preliminary) posted a surplus of US $7.33 billion in October, staying in the black for the 69th consecutive month. Surpluses decreased compared with the previous month.

(US $ billion)

2014 2015 Annual Annual Annual

2016 Q1

Q2

Q3

2017 Q4

Oct

Q1

Q2

Q3

Sep

Oct1

Trade balance 47.15 90.26 89.23 21.36 26.72 19.39 21.77 6.93 15.86 29.14 30.33 13.46 7.33 1. Preliminary Source: Korea Customs Service

17

November 2017

6. Mining and manufacturing production Mining and manufacturing production rose 0.1 percent month-on-month in September: Automobiles and other transportation equipment improved while refined petroleum and primary metals fell. The index increased 8.4 percent year-on-year.

Compared to the previous month, production of automobiles (up 3.8%), other transportation equipment (up 19.6%) and chemical products (up 0.9%) rose, while refined petroleum (down 4.2%), primary metals (down 2.7%) and electrical equipment (down 4.1%) fell.

Compared to a year ago, production of automobiles (up 27.1%), mechanical equipment (up 19.0%) and electronic parts (up 16.6%) rose, while other transportation equipment (down 19.9%), refined petroleum (down 3.6%) and communications equipment (down 11.0%) 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 fell 2.0 percentage points month-on-month to 119.2 percent as inventories and shipments fell 1.9 percent and 0.2 percent, respectively.

Inventories of automobiles (up 4.4%), mechanical equipment (up 2.3%) and leather & shoes (up 6.4%) rose, while primary metals (down 4.7%), semiconductors (down 11.3%) and refined petroleum (down 9.4%) declined.

Shipments of other transportation equipment (up 16.9%), automobiles (up 2.3%) and communications equipment (up 12.7%) rose, while mechanical equipment (down 3.7%), chemical products (down 1.9%) and refined petroleum (down 2.4%) fell.

The capacity utilization rate of the manufacturing sector declined 0.2 percentage points month-on-month to 71.8 percent.

Mining and manufacturing for October is likely to improve given strong exports, but there are uncertainties as to major economies’ monetary policies and trade related issues.

18

Economic Bulletin

The Green Book

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

Shipment growth

-12 2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2013.1

2014.1

2015.1

2016.1

2017.1

Inventory growth

Source: Statistics Korea (industrial activity trends)

Capacity utilization rate (%) 100

90

80

70

60

50 2008.1

2009.1

2010.1

2011.1

2012.1

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

2016 (q-o-q, m-o-m) Mining and manufacturing2 (y-o-y)

Manufacturing

2017

Annual

Q3

Sep

Q2

Q3ยน

Jul

-

0.1

0.7

-2.3

1.5

1.6

Augยน Sepยน 0.1

1.0

0.5

-2.0

0.5

3.5

-0.3

2.3

8.4

0.1

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

-

0.1

0.8

-2.5

1.6

1.5

0.3

0.3

1.0

0.6

-2.0

0.4

3.5

-0.4

2.5

8.7

Shipment

0.6

-0.5

0.5

-2.0

1.8

0.3

0.5

-0.2

-Domestic consumption

1.3

-0.3

1.2

-2.1

1.2

0.5

0.8

-0.2

-Exports

-0.1

-0.8

-0.4

-1.7

2.6

0.1

0.3

-0.3

Inventory3

-5.9

-3.2

-0.8

1.9

1.2

0.9

2.2

-1.9

Capacity utilization rate (%) 72.6 Production capacity (y-o-y) 0.8

71.9

71.6

71.5

72.3

73.1

72.0

71.8

1.0

0.8

0.9

1.0

0.7

1.0

1.2

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

3. At the end of the period

19

November 2017

7. Service sector activity Service output rose 1.3 percent month-on-month in September, led by wholesale & retail and healthcare & social welfare services. Transportation services declined, along with publishing & communications services. Compared to a year ago, service output rose 5.4 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

Q3

Q4

Q2 Q31 Aug1 Sep1

Service activity index

100.0 2.9 3.0 0.2 1.1 1.0 -0.3 0.6 1.4 0.1 1.3

- Wholesale & retail

21.6 1.8 3.0 -0.4 1.5 -0.4 1.0 0.2 1.5 -0.4 2.8

- Transportation services

8.5 1.2 1.9 1.3 0.0 0.2 -3.2 0.3 1.4 0.2 -1.3

- Hotels & restaurants

7.2 -2.0 -0.5 -0.4 -0.9 0.3 -3.1 -0.1 0.6 -0.1 3.0

- Publishing & communications services - Financial & insurance services

8.4 -0.5 2.2 -0.3 1.0 -1.5 0.3 0.3 1.5 0.0 -1.2 14.7 9.1 5.9 2.1 1.4 2.9 -0.3 1.1 1.3 -0.2 0.1

- Real estate & renting

5.3 8.4 2.3 -3.5 3.8 3.8 -1.3 3.0 4.8 -0.4 3.2

- Professional, scientific & technical services

5.6 -0.3 -1.3 -2.6 1.0 -0.6 -0.3 0.6 -1.9 1.2 -0.2

- Business services

3.3 3.9 2.0 -0.7 -0.1 0.8 0.7 0.5 1.5 0.5 -0.9

- Education services

10.9 0.7 0.8 0.4 -0.4 0.6 -0.5 -0.8 0.9 0.3 0.5

- Healthcare & social welfare services

7.5 6.2 9.3 0.9 2.8 5.3 1.5 1.6 3.3 1.9 3.5

- Entertainment & leisure

2.9 1.1 2.7 -1.6 2.7 -0.6 -1.1 2.7 -2.7 -2.9 2.8

- Membership organizations & personal services

3.6 -0.5 -0.9 2.0 -0.6 -1.2 -1.2 -0.6 1.6 -0.3 2.2

- Sewerage & waste management

0.6 7.2 3.9 1.3 4.6 -2.2 0.9 -4.3 2.5 -0.8 3.4

1. Preliminary Source: Statistics Korea

20

Economic Bulletin

The Green Book

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

Wholesale & retail (y-o-y)

-8

2008.1

Wholesale & retail (m-o-m)

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Source: Statistics Korea (industrial activity trends)

September 2017 service output by business (y-o-y, %) 12

Healthcare & social welfare services

10 8 6

Total index

Financial & insurance services

Transportation services

4

Business services

Publishing & communications services

Wholesale & retail

Hotels & restaurants

Sewerage & waste management

Professional, scientific & technical services

2 0

Entertainment & leisure

Real estate & renting

Membership organizations & personal services

Education services

-2

Source: Statistics Korea (industrial activity trends)

The service output data for October will likely by affected by both positive and negative factors: Domestic sales of cars and department store sales declined, but stock markets remained strong.

2017 Mar

Apr

May

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

-2.6

-6.3

-9.0 -14.8

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

1.7

0.5

-2.8

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

3.2

6.8

3.8

Average daily stock transactions (trillion won)

8.0

8.0

9.1

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

Jun

Jul

Aug

Sep

Oct

9.8

11.7

15.8 -13.5

0.8

0.1

-1.0

5.0

-0.2

1.6

1.0

-1.6

-1.1

1.7

9.9

8.4

7.6

8.8

10.1

-40.0 -66.6 -64.1 -66.4 -69.3 -61.2 -56.1 -46.9

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

21

November 2017

8. Employment The number of workers on payroll in September increased by 314,000 from a year earlier to 26,844,000, and the employment rate (aged 15-64) rose 0.5 percentage points to 66.9 percent.

By industry, services continued to lead employment growth.

By employment status, permanent, daily and self-employed workers increased, while temporary workers declined.

Number of persons employed and employment growth (thousands)

(millions)

1,000

27

800

26

600

25

400 24 200 23

0

22

-200

Employment growth (y-o-y, left) -400

21 2008.1

Number of employed (seasonally adjusted, right)

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

80 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 70.8 70.6

60

40

Services Construction

7.0

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

7.2

7.4

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 16.6 16.6

Manufacturing 0

Agriculture, forestry & fisheries

6.8

20

3.6 3.8 2016.1 2

4.8

5.2

5.4

5.5

5.3

5.3

5.4

5.4

5.1

3

4

5

6

7

8

9

10

11

Source: Statistics Korea (employment trends)

3.9

3.5 3.7 12 2017.1 2

4.5

5.1

5.4

5.5

5.3

5.4

5.4

3

4

5

6

7

8

9

22

Economic Bulletin

The Green Book

Employment by status of workers (%)

100

3.7

3.8

4.2

4.3

4.4

4.4

4.4

4.5

4.5

4.5

4.4

3.8

3.8

3.7

4.0

4.3

4.3

4.4

4.3

4.3

4.3

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 21.3 21.3

80 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

5.3

5.6

60 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 18.8 18.8

Unpaid family workers

40

Self-employed workers Daily workers Temporary workers Regular workers

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 50.2 50.0

20

0

2016.1 2

3

4

5

6

7

8

9

10

11

12 2017.1 2

3

4

5

6

7

8

9

Source: Statistics Korea (employment trends)

2016 Annual Q1

Number of employed (millions)

Q2

2017

Q3

Q4

Sep

Q1

Q2

Q3

Aug Sep

26.24 25.55 26.39 26.55 26.45 26.53 25.92 26.75 26.83 26.74 26.84

Employment rate (%)

60.4 59.1 60.8 61.1 60.7 61.0 59.4 61.2 61.3 61.1 61.3

(Seasonally adjusted)

60.4 60.5 60.1 60.5 60.6 60.5 60.8 60.6 60.6 60.6 60.7

- 15 to 64

66.1 65.1 66.2 66.5 66.5 66.4 65.7 66.9 66.9 66.7 66.9

Employment growth (y-o-y, thousands)

299 287 289 318 302 267 360 367 279 212

314

(Excluding agriculture, forestry & fisheries) 358 341 375 399 315 332 385 363 255 193 284 - Manufacturing - Construction - Services

-5 126

38

-71 -110

-76 -112

-23

31

25

20

22

-28

38

41 131 157

81

34

108

338 216 360 430 350 369 365 228 142 134

153

-7

85

- Agriculture, forestry & fisheries

-59

19

29

- Wage workers

317 427 392 283 164 178 198 301 281 256

318

386 505 457 316 266 293 322 338 408 460

375

路 Permanent workers

-54

-86

-81

-13

-65

-25

4

24

路 Temporary workers

18

15 120

45 -106

-26 -149 -125 -145 -167 -107

路 Daily workers

-88

-93 -185

-78

-89

- Nonwage workers

25

89

19

-36

50

35 138

89 163

65

-2

-44

-5

52 140

86 170

66

31

-3

45

- Male

151 107 124 183 189 177 174 166

84

- Female

148 180 165 134 113

路 Self-employed workers

-18 -140 -103

5

7

-96

-68

41

83

90 186 201 195 176

231

- 15 to 29

48

40

82

62

7

41

10

15

-22

-21

-30

- 30 to 39

-36

-21

-23

-53

-45

-42

-30

-4

5

-14

27

- 40 to 49

-29

6

-41

-16

-63

-51

-39

-50

-62

- 50 to 59

92

84

82

90 114

- 60 and above Source: Statistics Korea

-69

-68

99 162 141 121 108

110

223 179 189 236 289 219 257 265 237 208

274

23

November 2017

The number of unemployed persons in September was down by 51,000 from a year earlier to 935,000, and the unemployment rate declined 0.2 percentage points year-on-year to 3.4 percent.

The unemployment rate fell in all age groups except those in their 50s.

Unemployment rate (%)

6

5

4

3

Original data

2 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 Annual

Q1

Q2

Number of unemployed 1,012 1,153 1,028 (thousands)

2017

Q3

Q4

Sep

985

881

Q1

Q2

Q3

Aug

Sep

986 1,167 1,082

966 1,001

935

Unemployment growth (y-o-y, thousands)

36

64

-14

56

36

120

14

54

-19

5

-51

- Male

24

51

11

37

-1

55

-15

34

-8

3

-2

- Female

11

13

-24

19

37

65

29

20

-12

1

-49

Unemployment rate (%)

3.7

4.3

3.8

3.6

3.2

3.6

4.3

3.9

3.5

3.6

3.4

(Seasonally adjusted)

3.7

3.8

3.7

3.8

3.6

4.0

3.8

3.8

3.7

3.8

3.7

- 15 to 29

9.8

11.3

10.3

9.3

8.4

9.4

10.8

10.4

9.3

9.4

9.2

- 30 to 39

3.2

3.2

3.2

3.2

3.1

3.2

3.6

3.5

3.0

3.3

2.9

- 40 to 49

2.1

2.4

2.1

2.1

1.9

2.1

2.4

2.4

2.0

2.1

1.9

- 50 to 59

2.3

2.6

2.3

2.3

2.0

2.3

2.2

2.4

2.3

2.4

2.3

- 60 and above

2.6

4.2

2.2

2.3

2.1

2.3

4.8

2.3

2.2

2.3

2.0

Source: Statistics Korea

24

Economic Bulletin

The Green Book

The economically inactive population in September increased 54,000 from a year earlier to 16,026,000, and the labor force participation rate rose 0.1 percentage points year-on-year to 63.4 percent.

The number of persons economically inactive due to rest (up 187,000) and old age (up 65,000) increased, and those due to childcare (down 104,000) and education (down 61,000) decreased.

Labor force participation rate (%)

65 64 63 62 61 60 59

Original data 58

Seasonally adjusted rate 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 Annual

Economically inactive population (millions)

Q1

Q2

2017

Q3

Q4

Sep

Q1

16.17 16.57 15.97 15.93 16.21 15.97 16.55

Q2

Q3

Aug

Sep

15.9 15.99 16.05 16.03

Labor force participation 62.8 rate (%)

61.7

63.2

63.4

62.8

63.3

62.1

63.7

63.5

63.3

63.4

(seasonally adjusted)

62.8

62.8

62.4

62.9

62.9

63.0

63.2

63.0

63.0

63.0

63.1

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

64

99

135

4

17

-18

-17

-74

66

111

54

- Childcare

-79

-115

-105

-63

-36

-57

-83

-87

-105

-111

-104

- Housework

49

32

69

35

59

28

27

24

11

48

-10

- Education

-96

-108

-89

-116

-71

-142

-56

-120

-72

-75

-61

- Old age

117

161

109

113

86

140

57

90

87

95

65

36

97

141

-19

-76

-65

28

14

163

217

187

- Rest Source: Statistics Korea

25

November 2017

9. Financial markets 9.1 Stock market KOSPI rose 5.4 percent in October from 2,394.47 points to 2,523.43 points, and KOSDAQ rose 6.3 percent from 652.82 points to 694.20 points.

KOSPI rose to an all-time high, amid strong US markets, due to expectations for a buoyant economy and foreign net buying.

KOSPI (points)

2,433.81 (Oct 10, 2017) → 2,489.54 (Oct 20) → 2,523.43 (Oct 31)

(Closing rate)

KOSPI

KOSDAQ Change1

Sep 2017 Oct 2017

Sep 2017 Oct 2017

Change1

Stock price index (points) 2,394.47 2,523.43

+128.96 (+5.4%)

652.82

694.20

+41.38 (+6.3%)

Market capitalization (trillion won)

1,588.2

1,642.3

+54.1 (+3.4%)

224.9

240.1

+15.2 (+6.7%)

Average daily trade value (trillion won)

5.27

6.20

+0.93 (+17.7%)

3.53

3.85

+0.32 (+9.2%)

Foreign stock ownership (%, %p)

37.52

37.79

+0.27 (+0.7%)

12.64

12.62

-0.02 (-0.2%)

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

Stock prices (monthly average, points)

2,600

2,200

1,800

1,400

1,000

600

KOSPI KOSDAQ

200 2008.1

2009.1

Source: Korea Exchange

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

26

Economic Bulletin

The Green Book

9.2 Exchange rate The dollar-won exchange rate fell 2.2 percent in October to 1,120.4 won due to easing geopolitical risks, improving economic indicators, rising KOSPI and foreign investors’ net buying of Korean stocks.

The 100 yen-won exchange rate fell 2.6 percent to 991.2 won as the yen weakened against the dollar following Bank of Japan’s decision to continue its accommodative monetary policies.

Foreign exchange rates (month-end, ₩)

1,800

1,600

1,400

1,200

1,000

800

Dollar-Won 100 Yen-Won

600 2008.1

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 (₩)

1,250 1,200 1,150

1,100 1,050 1,000

Dollar-Won 100 Yen-Won

950 2016.11 2016.12

Source: Bank of Korea

2017.1

2017.2

2017.3

2017.4

2017.5

2017.6

2017.7

2017.8

2017.9

2017.10

27

November 2017

(Closing rate)

2011

2012

2013

2014

2015

2016

Dec

Dec

Dec

Dec

Dec

Dec

Sep

Oct

Change1

1,151.8

1,070.6

1,055.4

1,099.3

1,172.5

1,207.7

1,145.4

1,120.4

+2.2

100 Yen-Won 1,481.2

1,238.3

1,002.3

913.0

974.1

1,035.4

1,016.7

991.2

+2.6

Dollar-Won

2017

1. Appreciation from the end of the previous month in October 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 spiked in October due to the possibilty of an interest rate hike. At the Bank of Korea’s Monetary Policy Board meeting in October, some members of the board called for a rate hike, and Korea’s growth outlook for 2017 was raised from 2.8 percent to 3.0 percent.

(Closing rate, %)

2011

2012

2013

2014

2015

2016

Dec

Dec

Dec

Dec

Dec

Dec

Aug

Sep

2017 Oct

Call rate (1 day)

3.29

2.77

2.52

2.03

1.52

1.27

1.27

1.24

1.22

-2

CD (91 days)

3.55

2.89

2.66

2.13

1.67

1.52

1.38

1.38

1.40

+2

Treasury bonds (3 yrs)

3.34

2.82

2.86

2.10

1.66

1.64

1.75

1.89

2.16

+27

Change1

Corporate bonds (3 yrs)

4.21

3.29

3.29

2.43

2.11

2.13

2.30

2.43

2.73

+30

Treasury bonds (5 yrs)

3.46

2.97

3.23

2.28

1.81

1.80

1.97

2.09

2.40

+31

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

Interest rates (monthly average, yearly, %)

10 9 8 7 6 5 4 3 2

3-yr corporate bond yield

1

3-yr Treasury bond yield

0 2008.1

2009.1

Overnight call rate (daily)

Source: Bank of Korea

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

28

Economic Bulletin

The Green Book

9.4 Money supply & money market M2 (monthly average) in August rose 4.6 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

Annual

Annual

Annual

Annual

Annual

Annual

Jul

Aug

Aug1

M12

11.8

6.6

3.8

9.5

10.9

18.6

15.4

9.5

9.1

810.9

M2

8.7

4.2

5.2

4.8

6.6

8.6

7.3

5.1

4.6

2,486.3

Lf3

8.2

5.3

7.8

6.9

7.0

9.7

8.1

6.5

6.2

3,478.8

1. Balance at end August 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

30

20

10

0

Reserve money M1

-10

-20 2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Lf

Source: Bank of Korea

Bank deposits increased 27.8 trillion won in September: Instant access deposits increased 27.8 trillion won as surplus funds flowed in from corporations and Chuseok bonuses flowed in from households. Time deposits rose 3.5 trillion won.

Asset management company (AMC) deposits decreased 10.7 trillion won as a total of 15 trillion won flowed out from money market funds (MMFs). Banks withdrew funds from MMFs to meet their BIS ratio requirements and the government also took out funds.

(Change from the end of the previous period, trillion won)

2010

2011

2012

2013

2014

2015

2016

Annual Annual Annual Annual Annual Annual Annual

2017 Jul

Aug

Sep

Sep1

Bank deposits

36.9

58.9

37.0

41.0 115.4 100.3

80.8

-9.5

16.7

27.8

1,535.6

AMC deposits

-16.7

-16.6

18.8

17.7

47.6

23.1

-4.6

-10.7

501.4

1. Balance at end September 2017 Source: Bank of Korea

42.4

44.4

29

November 2017

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 September posted a surplus of US $12.21 billion, staying in the black for 67 consecutive months.

Goods account surpluses increased month-on-month from US $9.31 billion to US $15.01 billion.

Growth in goods exports (y-o-y, %) 15.8 (Aug 2017) → 25.5 (Sep)

Growth in goods imports (y-o-y, %) 12.1 (Aug 2017) → 20.5 (Sep)

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

107.2 (steel), 70.0 (semiconductors), 57.6 (automobiles), 49.5 (petroleum products), 41.5 (petrochemicals), 38.7 (vessels), -15.9 (mobile phones)

Import growth by category in September (y-o-y, %, customs clearance basis) 22.4 (commodities), 27.3 (capital goods), 13.5 (consumer goods)

Services account deficits increased month-on-month from US $2.33 billion to US $2.90 billion.

Services balance (US $ billion, Aug → Sep)

-0.57 → -0.77 (manufacturing), -0.27 → -0.46 (transportation), -1.41 → -1.31 (travel), 0.62 → 0.71 (construction), -0.19 → -0.02 (intellectual property rights), -0.61 → -1.12 (other businesses)

The primary income account shifted from deficits of US $0.08 billion to surpluses of US $1.15 billion, and secondary income account deficits expanded from US $0.84 billion to US $1.06 billion.

30

Economic Bulletin

The Green Book

Current account balance (US $ billion) 18 15 12 9 6 3 0

Goods account

-3

Services account

-6 2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2013.1

2014.1

2015.1

2016.1

2017.1

Current account

Source: Bank of Korea (balance of payments trends)

Travel balance (US $ billion)

4 3 2 1 0 -1 -2

Travel balance

-3

Travel payment

-4

Travel revenue

2008.1

2009.1

2010.1

2011.1

2012.1

Source: Bank of Korea (balance of payments trends)

(US $ billion)

2016 Annual1 Q11

Current account

Q21

Q31

2017 Q41

Q11

Q21

Q31

Aug1 Sep1

8.07 19.43 16.84 25.53

6.06 12.21

- Goods balance

120.45 28.95 33.53 28.27 29.69 10.66 27.98 30.36 35.03

9.31 15.01

- Services balance

-17.61 -3.92 -3.91 -5.66 -4.12 -2.58 -8.86 -6.88 -8.52 -2.33 -2.90

- Primary income balance

98.68 25.35 26.34 21.51 25.48

Sep1

1.46

1.20 -2.11

1.26

1.11

0.78

1.13 -5.17

1.65 -0.08 1.15

- Secondary income balance -5.62 -0.88 -1.18 -2.36 -1.20 -0.79 -0.82 -1.48 -2.63 -0.84 -1.06 1. Preliminary Source: Bank of Korea

31

November 2017

The capital and financial account (preliminary) in September posted an outflow of US $12.75 billion.

Capital & financial account balance* (US $ billion)

9.58 (Sep 2016) → 9.21 (Feb 2017) → 6.00 (Mar) → 1.83 (Apr) → 2.58 (May) → 8.72 (Jun) → 9.77 (Jul) → 9.13 (Aug) → 12.75 (Sep) * Positive figures represent net outflows, and negative figures represent net inflows.

Net outflows of foreign direct investment (FDI) increased from US $1.58 billion to US $2.28 billion as Korean FDI (up US $2.99 billion → up US $4.09 billion) rose faster than inbound FDI (up US $1.41 billion → up US $1.82 billion).

Net outflows of portfolio investment decreased from US $11.46 billion to US $10.35 billion as foreign investment in Korean shares (down US $6.33 billion → down US $3.90 billion) declined at a slower rate. Korean investment in foreign shares (up US $5.13 billion → up US $6.45 billion) increased.

Net inflows of financial derivatives investment increased from US $0.07 billion to US $0.11 billion, and other investment went from an inflow of US $4.19 billion to an outflow of US $0.86 billion.

The current account surplus is likely to decrease in October given a decrease in trade surpluses (up US $13.46 billion → up US $7.33 billion).

Capital & financial account balance (US $ billion)

15 12 9 6 3 0 -3

Capital & financial account

-6

Direct investment

-9

Portfolio investment

-12 2008.1

Financial derivatives

2009.1

2010.1

2011.1

2012.1

Source: Bank of Korea (balance of payments trends)

2013.1

2014.1

2015.1

2016.1

2017.1

32

Economic Bulletin

The Green Book

11. Prices 11.1 Consumer prices Consumer prices in October declined 0.2 percent from the previous month and rose 1.8 percent from the same period of the previous year.

(Percentage change)

2017 Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Consumer price inflation (m-o-m) 0.9

0.3

0.0

-0.1

0.1

-0.1

0.2

0.6

0.1

-0.2

(y-o-y)

1.9

2.2

1.9

2.0

1.9

2.2

2.6

2.1

1.8

2.0

Source: Statistics Korea

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

Consumer price inflation (y-o-y)

-1 2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Consumer price inflation (m-o-m)

Source: Statistics Korea (consumer price trends)

Agricultural, livestock & fishery product prices rose at a slower pace compared to the previous month (up 4.8% → up 3.0%, y-o-y) due to stabilizing vegetable and livestock product prices.

Public utility prices declined (up 8.0% → down 1.6%, y-o-y) without a low base effect from last year’s temporary electricity rate cut.

Oil product prices went up at a faster pace (up 6.1% → up 8.2%, y-o-y) in line with high international oil prices amid expectations of OPEC’s output cut extension.

33

November 2017

Consumer price inflation in major sectors Total

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

Housing Public Personal rents services services

Sep (y-o-y, %)

2.1

Oct (y-o-y, %)

1.8

3.0

1.5

8.2

-1.6

1.5

0.9

2.7

- Contribution (%p)

-

0.25

0.47

0.35

-0.06

0.14

0.13

0.85

4.8

1.2

6.1

8.0

1.5

1.0

2.3

Source: Statistics Korea

Core consumer price inflation has been stable. Consumer prices excluding oil and agricultural products rose 1.3 percent year-on-year.

(Percentage change from same period in previous year)

2017 Mar Apr May Jun

Jul

Aug Sep

Oct

Consumer prices excluding oil and agricultural products 1.4

1.3

1.4

1.4

1.8

1.8

1.6

1.3

Consumer prices excluding food and energy

1.5

1.5

1.5

1.5

1.4

1.4

1.6

1.7

Source: Statistics Korea

Basic necessities prices and fresh food prices rose at a slower pace due to falling vegetable prices (down 18.2%, m-o-m).

(Percentage change from same period in previous year)

2017 Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Consumer prices for basic necessities

2.8

2.5

2.5

2.3

3.1

3.7

2.9

2.0

Fresh food prices

7.5

4.7

5.6

10.5

12.3

18.3

6.0

1.8

Source: Statistics Korea

Prices (y-o-y, %) 16

12

8

4

0

Consumer price inflation Core inflation Producer price inflation

-4

-8 2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

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

2015.1

2016.1

2017.1

34

Economic Bulletin

The Green Book

11.2 International oil and commodity prices International oil prices rose month-on-month in October amid expectations of OPEC’s output cut extension and rising geopolitical risks in Iran and Iraq.

Dubai crude (US $/barrel)

54.6 (1st week Oct 2017) → 54.6 (2nd week) → 55.7 (3rd week) → 56.1 (4th week)

(US $/barrel, period average)

2017

2016 Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Jul

Aug

Sep

Oct

Dubai crude

41.4

30.5

43.2

43.2

48.3

53.0

49.7

50.4

47.6

50.2

53.7

55.5

WTI crude

43.5

33.6

45.6

44.9

49.3

51.8

48.1

48.2

46.7

48.1

49.9

51.6

Brent crude

45.1

35.2

47.0

47.0

51.1

54.6

50.8

52.2

49.1

51.9

55.5

57.6

Source: Korea National Oil Corporation

International oil prices (US $/B)

160 140 120 100 80 60 40 20

WTI

0 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 October, reflecting with a time lag rising international oil prices and exchange rates.

Domestic gasoline prices (won/liter)

1,500.5 (1st week Oct 2017) → 1,503.1 (2nd week) → 1,505.3 (3rd week) → 1,506.6 (4th week)

International gasoline prices (US $/barrel)

67.3 (3rd week Sep 2017) → 68.1 (4th week) → 66.1 (1st week Oct) → 66.3 (2nd week)

Dollar-won exchange rate (won)

1,130.7 (3rd week Sep 2017) → 1,137.9 (4th week) → 1,137.8 (2nd week Oct)

35

November 2017

(Won/liter, period average)

2017

2016 Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Jul

Aug

Sep

Oct

Gasoline prices

1,403 1,363 1,396 1,419 1,433 1,510 1,477 1,456 1,439 1,452 1,480 1,504

Diesel prices

1,183 1,121 1,168 1,213 1,228 1,301 1,267 1,248 1,230 1,245 1,271 1,296

Source: Korea National Oil Corporation

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

Dubai crude (import prices, left)

(US $/B)

160

160

140

140

120

120

100

100

80

80

60

60

40

40

20 2008.1

20 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Dubai international prices (right)

Source: Korea National Oil Corporation

International corn prices declined in October after the US Department of Agriculture raised its production outlook. Wheat prices fell as the crop yields are expected to improve in the US. International grain price increases in October (monthly average prices, m-o-m, %) -1.5 (corn), -2.6 (wheat), 1.0 (soybeans)

International copper prices rose in October due to strong demand from China, and aluminum prices rose due to supply concerns in China. According to Bloomberg, aluminum production in China is expected to fall by 1 to 1.5 million tons as the country decided to close unlicensed smelting facilities.

Nonferrous metal price increases in October (monthly average prices, m-o-m, %) 2.9 (copper), 1.4 (aluminum), 0.8 (nickel)

(Period average)

2017

2016 Annual 1

Reuters Index

(Sep 18, 1931=100)

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Jul

Aug

Sep

Oct

2,330 2,115 2,250 2,414 2,536 2,644 2,426 2,404 2,406 2,404 2,402 2,417

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

36

Economic Bulletin

The Green Book

12. Real estate market 12.1 Housing market Housing prices nationwide rose 0.1 percent month-on-month in October.

Housing prices rose 0.2 percent in the Seoul metropolitan area which includes Seoul (up 0.2%), Gyeonggi Province (up 0.2%) and Incheon (up 0.2%).

Housing prices were up 0.1 percent in the five metropolitan cities (up 0.1%) and the eight provinces (up 0.0%).

Housing price increases in five metropolitan cities (m-o-m, %) Busan (0.1), Daegu (0.3), Gwangju (0.2), Daejeon (0.2), Ulsan (-0.1)

Nationwide housing prices

(Percentage change from previous period)

2013 2014 2015

2016

Annual Annual Annual Annual

Nationwide

Oct

2017 Annual Jun

Jul

Aug

Sep

Oct

0.3

1.7

3.5

0.7

0.2

1.2

0.2

0.2

0.2

0.1

0.1

Seoul metropolitan area -1.1

1.5

4.4

1.3

0.3

1.8

0.4

0.3

0.4

0.2

0.2

- Seoul

-1.4

1.1

4.6

2.1

0.4

2.7

0.7

0.4

0.5

0.1

0.2

· Gangnam¹

-1.1

1.2

5.2

2.5

0.6

3.1

0.9

0.4

0.6

0.0

0.3

· Gangbuk²

-1.7

1.1

3.9

1.8

0.3

2.2

0.5

0.4

0.3

0.1

0.2

1.7

1.9

2.7

0.2

0.1

0.7

0.1

0.1

0.1

0.1

0.1

Areas excluding the Seoul metropolitan area

1. Upscale area of Southern Seoul 2. Northern Seoul Source: Korea Appraisal Board

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

3

2

1

0

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

37

November 2017

Housing rental prices nationwide rose 0.1 percent month-on-month. Rental prices were up 0.1 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 (0.1), Songpa (0.4), Seocho (-0.2), Gangdong (0.4), Dongjak (0.3), Bundang (0.3)

Nationwide housing rental prices

(Percentage change from previous period)

2016

2013 2014 2015

Annual Annual Annual Annual

2017 Jul

Aug

Sep

Oct

4.7

3.4

4.8

1.3

0.1

0.6

0.1

0.1

0.1

0.1

0.1

Seoul metropolitan area 6.2

4.7

7.1

2.0

0.2

1.3

0.2

0.2

0.2

0.1

0.1

- Seoul

6.6

3.6

7.2

2.0

0.2

1.6

0.3

0.2

0.2

0.1

0.1

· Gangnam¹

6.7

3.3

7.9

1.8

0.2

2.1

0.4

0.3

0.3

0.1

0.2

· Gangbuk²

6.4

3.8

6.5

2.1

0.2

1.2

0.2

0.1

0.1

0.1

0.1

Areas excluding the Seoul metropolitan area 3.3

2.2

2.8

0.7

0.1

0.0

0.0

0.0

0.0

0.0

0.0

Nationwide

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

Oct

Annual Jun

2. Northern Seoul

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

3

2

1

0

-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 84,350 housing transactions in September, down 12.7 percent from a month earlier (96,578) and down 7.9 percent from a year ago (91,612).

Housing transactions 2015

(Thousands)

2017

2016 1

1

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

Nationwide

99

88

92

109 103

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

89

59

63

77

75

85

98

98

97

84

38

Economic Bulletin

The Green Book

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 0.32 percent month-on-month in September. Land prices rose 0.30 percent in the Seoul metropolitan area which includes Seoul (up 0.32%) and Gyeonggi Province (up 0.27%).

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

0.22 (Feb 2017) → 0.32 (Mar) → 0.32 (Apr) → 0.41 (May) → 0.40 (Jun) → 0.39 (Jul) → 0.34 (Aug) → 0.30 (Sep)

Land prices rose 0.36 percent in areas excluding the Seoul metropolitan area, led

by Busan (up 0.59%), Ulsan (up 0.30%), Sejong (up 0.67%) and Jeju (up 0.44%).

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

0.24 (Feb 2017) → 0.32 (Mar) → 0.31 (Apr) → 0.34 (May) → 0.38 (Jun) → 0.38 (Jul) → 0.37 (Aug) → 0.36 (Sep)

Land prices

(Percentage change from previous period)

2013 2014 2015

2016

Annual Annual Annual Annual

2017

Q3

Q4

Annual

Q1

Q2

Q3

Aug

Sep

Nationwide

1.14

1.96

2.40

2.70

0.72

0.71

2.92

0.74

1.10

1.06

0.35

0.32

Seoul

1.21

2.66

2.69

2.97

0.83

0.78

3.32

0.75

1.34

1.20

0.40

0.32

Gyeonggi

0.91

1.24

1.73

2.23

0.64

0.63

2.57

0.68

1.00

0.87

0.28

0.27

Incheon

0.87

1.35

1.95

1.74

0.47

0.44

2.36

0.67

0.77

0.90

0.29

0.28

Source: Korea Appraisal Board

39

November 2017

There were 293,000 land transactions in September, down 10.4 percent from the previous month and up 22.2 percent from a year ago (240,000).

Land transaction increases (m-o-m, %)

Seoul (-29.6), Busan (-33.8), Sejong (-32.5), South Gyeongsang Province (-14.7)

Vacant land transactions declined 3.0 percent from the previous month to 94,000, accounting for 32.0 percent of the total land transactions. The index increased 16.9 percent compared with a year ago (80,000).

Land transactions

(Land lots, thousands)

2015

2016

1

2017

1

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

Nationwide

257

250

240 274 274 276 216 226 273 258 280 301 312 327 293

Seoul

30

31

31

35

33

32

24

26

29

30

35

41

40

45

31

Gyeonggi

58

63

64

74

72

74

53

52

66

64

70

79

91

93

86

Incheon

12

13

13

14

15

12

10

9

14

13

16

17

18

21

20

1. Monthly average Source: Korea Land & Housing Corporation

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

0

2008.1

2009.1

2010.1

Source: Korea Appraisal Board

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

40

Economic Bulletin

The Green Book

13. Composite indices of business cycle indicators Industrial output rose 0.9 percent month-on-month in September. Output increased in mining & manufacturing (up 0.1%), services (up 1.3%) and public administration (up 6.5%), and decreased in construction (down 2.2%). Compared to a year ago, industrial output rose 7.4 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)

2017 Feb

Mar

Apr

May

Jun

Jul1

Aug1

Sep1

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

-0.3

1.3

-1.0

-0.1

0.0

1.0

-0.1

0.9

(y-o-y, %)

4.2

4.1

3.5

2.6

1.7

2.0

2.5

7.4

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, %)

124.1 124.7 125.1 125.2 125.3 125.7 126.1 126.6 0.2

0.5

0.3

0.1

0.1

0.3

0.3

0.4

100.7 101.0 101.0 100.8 100.7 100.7 100.8 100.9 0.0

0.3

0.0

-0.2

-0.1

0.0

0.1

0.1

129.3 129.7 130.3 131.0 131.9 132.6 133.1 133.2 0.5

0.3

0.5

0.5

0.7

0.5

0.4

0.1

Cyclical indicator of leading composite index 100.9 100.8 101.0 101.2 101.6 101.7 101.8 101.6 (m-o-m, p)

0.2

-0.1

0.2

0.2

0.4

0.1

0.1

-0.2

1. Preliminary

The cyclical indicator of the coincident composite index rose 0.1 points from the previous month to 100.9. Among the seven components of the coincident composite index, only the value of construction completed declined.

41

November 2017

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

mining & manufacturing production (0.5%), service output (0.5%), retail sales (0.7%), domestic shipments (0.3%), imports (0.3%), nonfarm payroll employment (0.1%), value of construction completed (-0.4%)

Cyclical indicator of coincident composite index (points)

110

105

100

95

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 declined 0.2 points from the previous month to 101.6. Spreads between long & short term interest rates increased, and KOSPI remained unchanged. Six components of the index, such as domestic shipments of machinery and the consumer expectations index, declined.

Components of the leading composite index in September (m-o-m)

spreads between long & short term interest rates (0.04%p), inventory circulation indicator (-0.5%p), consumer expectations index (-2.1p), domestic shipments of machinery (-2.8%), value of construction orders received (-1.2%), ratio of export to import prices (-0.4%), ratio of job openings to job seekers (-0.9%p), KOSPI (0.0%)

Cyclical indicator of leading composite index (points)

110

105

100

95

90 2008.1

2009.1

2010.1

2011.1

2012.1

Source: Statistics Korea (industrial activity trends)

2013.1

2014.1

2015.1

2016.1

2017.1

Policy Issue

Korea to boost entrepreneurship, building up startup-friendly environment

43

November 2017

Korea to Boost Entrepreneurship, Building up Startup-friendly Environment The government unveiled its plan to support innovative startups, which covers creating startup-friendly environment, providing financial support and promoting venture capital. The plan is in line with the administration’s growth through innovation policies.

Create startup-friendly environment - ‌ Launch a ‘startup leave’ program, which allows returning to where he used to work in a company when he fails, to encourage talented employees to start his own business - ‌ Promote academic professionals’ venturing into their own business by giving them more flexibility in their employment contracts - ‌ Revise the current innovative startup support programs to be more private sector-driven, for example authorizing the private sector to select recipients - ‌ Offer office spaces and provide networking opportunities, both online and offline, to seed stage startups: Set up nationwide a center for commercializing ideas and utilize the Pangyo Techno Valley, government properties and public institutions as places for exchanging ideas and networking - ‌ Assist startups throughout their development stages, from financing to helping them participate in public procurement markets, secure market shares and gain access to overseas markets, so that they can grow further into medium-sized strong enterprises

44

Economic Bulletin

Policy Issue

Strengthen financial support and tax incentives - ‌ Launch an innovative startup fund worth 10 trillion won which includes 3 trillion won of public sector contribution, such as through fiscal expenditure and policybased loans, and 7 trillion of private sector money: The fund will provide venture capital to innovative startups, increasing its investment in common shares, and will continue to provide support throughout business development, from idea commercialization to product launch, or from M&A to business restructuring - ‌ Promote technology-backed financing: Properly assess future value the technology will create, and open courses on technology financing at graduate schools as well as at the Korea Banking Institute - ‌ Increase tax incentives for investing in startups: Introduce a tax incentive package which includes 1) raising the angel investment tax exemption ceiling two-fold from 15 million won to 30 million won, 2) reviving the tax exemption for gains from the sales of employee stock options, 3) raising the tax exemption ceiling for employee stock ownership from 4 million won to 15 million won, and 4) giving tax incentives for investing in venture investment firms to promote ordinary citizens’ micro investment

Create an ecosystem in which those who failed can have chances to try again - ‌ Gradually phase out joint surety of which the burden startup failures have to carry: Public sector financial institutions will lift joint surety in the first half of 2018, and private sector financial institutions will gradually phase it out afterwards.

- ‌ Develop a secondary market and promote M&As to attract venture capital: Work to make the KOSDAQ and KONEX markets thriving and encourage pension funds to invest in those markets, and promote M&As by large companies and global venture capital funds - ‌ Strictly deal with technology theft: Launch a task force for technology theft investigation at the Korea Fair Trade Commission (KFTC) and strengthen KFTC’s investigative mandate for technology theft

Economic News Briefing

Government unveils support prior to minimum wage increase Korea and Canada sign standing currency swap agreement Government to improve regulations to develop KTB market Korea grows 1.4% in Q3 2017 (advanced) Korea ranks 4th in World Bank’s Doing Business index

46

Economic Bulletin

Economic News Briefing

Government unveils support prior to minimum wage increase The government unveiled its support for the minimum wage increase scheduled to take effect next year, focusing on small businesses that are likely to suffer from increased labor costs. Hourly minimum wages will be 7,530 won in 2018, and will reach 10,000 won by 2020 according to the administration’s minimum wage initiative.

Worries over shrinking employment There have been worries over shrinking employment when the minimum wage increase takes effect next year, as it will impose burden on small businesses. Against this backdrop, the government has proposed budgets for small business support worth 3 trillion won.

Support The government will provide small businesses with a monthly support of 130,000 won per employee. A total of 3 million employees are expected to receive the support.

- ‌ Eligibility: Small businesses with less than 30 employees if they pass the screening, and small businesses with 30 employees or more for some services industries, such as those providing home security services and janitorial services - Recipient employees: Employees earning less than 1.9 million won per month - ‌ Support: Monthly support of 130,000 won per employee, which includes extra management costs caused by the minimum wage increase

Korea and Canada sign standing currency swap agreement Korea and Canada have signed their first standing bilateral currency swap agreement on November 16. The currency swap agreement, effective immediately, “will enable the Bank of Canada to provide Canadian dollars to the Bank of Korea, as well as to provide liquidity in the Korean won to financial institutions in Canada, should the need arise.”

“Likewise, the Bank of Korea will provide Korean won to the Bank of Canada, as well as to provide liquidity in the Canadian dollar to financial institutions in Korea.” The currency swap agreement has no limit on liquidity provisions and no expiration date.

47

November 2017

Government to improve regulations to develop KTB market The government unveiled its plans to promote the development of Korea’s sovereign bond market.

Summary of the plan - ‌ Encourage primary dealers: Revise regulations on primary dealers to encourage them to more actively participate in KTB auctions, as well as to ease their burden in the market - ‌ Ensure steady supply of inflation-linked KTBs: Keep the issuance of inflation-linked KTBs steady below 15 percent of the 10 year KTB issuance, so that the market can predict the supply - ‌ Promote repurchase agreement (RP) transactions: Promote RP transactions between financial institutions to facilitate short-term financing in the market - ‌ Reflect market interest rates in exchange offer yields: Reflect KTB yields in the market, with which the bonds are traded on the day, when determining exchange offer yields - ‌ Expand KTB-backed RPs: Ease maturity requirements for KTBs to guarantee RPs, from KTBs with at least five years of remaining maturity to KTBs maturing later than the time of repurchase - ‌ Increase the share of long-term KTBs: Increase the share of long-term debt to meet growing demand in the market, as well as to properly finance the country’s mid- to long-term fiscal needs

Korea grows 1.4% in Q3 2017 (advanced) Korea’s real gross domestic product (GDP) expanded 1.4 percent quarter-on-quarter and 3.6 percent year-on-year in the third quarter of 2017, according to advanced data released by the Bank of Korea (BOK) on October 26.

On the production side, agriculture, forestry & fisheries contracted 6.5 percent from the previous quarter as beef and vegetable production declined. Manufacturing rose 2.7 percent, led by semiconductors and chemical products, and construction grew 1.3 percent, led by residential building construction. Services rose 0.9 percent, as wholesale & retail, hotels & restaurants and health & social welfare services improved.

On the expenditure side, private consumption expanded 0.7 percent, as expenditures on services and nondurable goods rose. Government consumption rose 2.3 percent, led by expenditures on goods and health insurance benefits. Construction investment rose 1.5 percent as investment in building construction increased, and facility investment rose 0.5 percent due to strong machinery investment.

48

Economic Bulletin

Economic News Briefing

Exports expanded 6.1 percent due to strong semiconductors, chemical products and automobiles. Imports rose 4.5 percent, led by chemical products and crude oil.

GDP by production and expenditure*

(Percentage change from previous period)

2015

2016

20171

1

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

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

1.4 (3.6)2

Agriculture, forestry & fisheries

1.8

-8.3

4.1

-2.0

3.7

-4.5

-1.9

-1.8

5.9

-1.1

-6.5

Manufacturing

0.9

0.7

0.8

0.4

0.4

1.0

-0.4

1.8

2.1

-0.3

2.7

Electricity, gas & water supply

-0.4

1.1

3.8

0.6

0.1

0.0

3.4

-3.0

-1.4

3.8

3.5

Construction

2.5

1.5

4.2

0.9

3.6

2.6

2.3

1.3

5.3

-1.3

1.3

Services

0.6

0.3

1.0

0.8

0.4

0.5

0.6

0.2

0.2

0.8

0.9

Private consumption

0.9

-0.3

1.3

1.5

-0.1

0.8

0.6

0.2

0.4

1.0

0.7

Government consumption

-0.1

1.1

1.0

1.3

1.4

0.6

0.9

0.6

0.5

1.1

2.3

Construction investment

9.0

1.4

2.1

-2.2

7.6

3.1

2.2

-1.2

6.8

0.3

1.5

Facility investment

0.3

0.8

1.9

0.0

-7.0

2.6

0.9

5.9

4.4

5.2

0.5

Intellectual property investment

1.6

-0.4

0.5

0.7

0.2

1.3

0.5

0.6

0.3

1.2

1.1

Exports

-0.3

-0.2

0.1

2.1

-0.6

1.0

1.0

-0.1

2.1

-2.9

6.1

Imports

0.1

0.7

1.2

2.9

-1.5

2.2

2.6

-0.1

4.8

-1.0

4.5

3

*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, cultural & sports services and other services are included.

Korea ranks 4th in World Bank’s Doing Business index Korea ranks fourth among 190 countries in World Bank’s Ease of Doing Business index for 2018, up one notch compared to the previous year to an all-time high. Of the 10 sets of indicators to measure the ease of doing business, Korea ranks high in “enforcing contracts” (1st → 1st), “getting electricity” (1st → 2nd), “resolving insolvency” (4th → 5th) and “starting a business” (11th → 9th), while it is placed lower in areas such as “dealing with construction permits” (31st → 28th), “trading across borders” (32nd → 33rd) and “getting credit” (44th → 55th).

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

50

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 2011 2012 2013 2014 2015 2016p 2009 Ⅰ Ⅱ

Ⅲ

Ⅳ

2010 Ⅰ Ⅱ

Ⅲ

Ⅳ

2011 Ⅰ Ⅱ

Ⅲ

Ⅳ

2012 Ⅰ Ⅱ

Ⅲ

Ⅳ

2013 Ⅰ Ⅱ

Ⅲ

Ⅳ

2014 Ⅰ Ⅱ

Ⅲ

Ⅳ

2015 Ⅰ Ⅱ

Ⅲ

Ⅳ

6.5 3.7 2.3 2.9 3.3 2.8 2.8 -1.9 -1.1 0.9 4.8 7.3 7.4 5.4 6.0 4.9 3.6 3.3 3.0 2.5 2.4 2.1 2.2 2.1 2.7 3.2 3.5 3.9 3.5 3.4 2.7 2.6 2.4 3.0 3.2

-4.3 -2.0 -0.9 3.1 3.6 -0.4 -2.9 2.5 0.0 5.0 5.0 0.0 -2.2 -7.8 -5.7 -9.3 -2.5 -5.8 7.1 0.1 -1.8 0.0 -1.3 -1.2 0.1 4.3 7.0 5.9 4.5 2.7 2.4 8.5 -3.0 0.3 -4.0

13.7 6.5 2.4 3.6 3.5 1.8 2.3 -8.4 -5.7 1.6 10.4 16.1 17.2 10.1 11.9 11.4 6.5 5.6 3.4 2.7 2.8 2.0 2.0 2.7 3.6 3.8 4.2 4.7 4.7 3.1 1.8 1.1 0.9 2.2 2.7

4.3 2.7 2.2 2.2 2.0 2.4 2.9 -1.9 0.9 1.7 4.5 6.2 3.6 3.9 3.4 3.3 3.3 2.8 1.7 2.2 1.3 2.7 2.7 1.5 2.2 2.4 2.6 2.9 1.8 2.0 1.6 1.8 2.0 2.3 3.4

4.4 2.9 1.9 1.9 1.7 2.2 2.5 -4.3 -0.8 0.7 5.3 6.8 3.6 4.0 3.2 3.7 3.7 2.5 1.7 1.6 0.7 2.6 2.7 1.5 1.9 1.9 2.2 2.8 1.7 1.4 1.1 1.5 1.7 2.2 3.4

5.5 0.8 -0.5 3.3 3.4 5.1 5.2 -5.4 -1.1 0.8 5.8 12.0 6.8 3.8 1.3 -0.7 2.5 1.7 -0.3 6.2 -2.3 -0.9 -3.6 -3.2 4.2 4.9 6.5 6.1 3.6 3.6 0.7 3.9 3.9 6.0 6.3

-3.7 -3.4 -3.9 5.5 1.1 6.6 10.7 1.9 4.4 3.1 4.1 1.6 -4.8 -4.8 -5.1 -8.2 -2.5 -2.2 -2.0 -0.2 -5.3 -2.6 -6.4 1.2 8.9 7.5 3.5 4.5 0.3 2.3 -1.7 4.0 4.6 7.6 9.6

22.0 4.7 0.1 -0.8 6.0 4.7 -2.3 -19.4 -13.6 -5.9 9.5 27.6 28.8 20.6 12.9 8.3 8.3 3.4 -0.9 11.0 -1.9 -4.2 -3.8 -12.3 -3.2 2.3 11.7 7.5 8.0 4.3 4.2 5.4 4.3 6.0 3.1

2016p Ⅰ Ⅱ

Ⅲ

Ⅳ

2.9 3.4 2.6 2.4 2.9 2.7 3.6

-2.3 1.0 -4.7 -4.7 -2.4 0.8 -3.7

2.4 2.7 1.4 2.7 4.5 3.2 6.3

2.9 3.7 3.1 2.0 2.2 2.5 2.9

2.3 3.5 2.7 1.5 2.0 2.3 2.4

2.9 5.2 5.3 7.1 10.4 9.6 9.1

9.0 10.6 11.2 11.6 11.3 8.0 7.5

-4.6 -2.9 -3.9 2.0 14.4 17.3 16.8

2017p Ⅰ Ⅱ

Ⅲ

p: Preliminary Source: Bank of Korea

51

November 2017

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

Period 2015 2016 2015 Ⅰ Ⅱ

Ⅲ

Ⅳ

2016 Ⅰ Ⅱ

Ⅲ

Ⅳ

2017 Ⅰ Ⅱ

Ⅲp

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 6 7

8p

9p

Production index*

Shipment index*

y-o-y change (%)

108.1 109.2 105.9 108.9 106.0 111.7 105.6 109.7 106.5 114.8 109.5 110.3 110.2 108.3 96.1 113.3 110.2 105.6 110.8 109.2 101.8 106.9 112.9 109.0 113.1 105.9 98.3 112.7 107.2 110.2 111.8 110.8 104.0 104.8 111.5 114.9 118.0 107.3 104.9 116.4 109.2 110.5 111.3 110.5 106.4 113.6

-0.3 1.0 -0.9 -0.8 0.4 0.4 -0.3 0.7 0.5 2.8 3.7 0.5 3.5 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 -0.4 -0.3 2.3 8.4

Inventory index*

y-o-y change (%)

108.2 109.0 106.3 108.6 106.3 111.8 105.4 109.9 106.2 114.5 109.0 109.9 110.3 108.4 96.9 113.6 110.1 105.8 109.8 108.0 102.7 108.2 113.1 109.0 113.2 104.2 97.6 114.4 108.2 109.8 111.6 108.8 104.4 105.4 111.0 114.1 118.5 105.7 104.7 116.5 108.7 109.1 111.8 109.5 107.5 114.3

0.2 0.7 -0.3 -0.6 1.3 0.4 -0.8 1.2 -0.1 2.4 3.4 0.0 3.9 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 0.2 0.6 2.7 8.4

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

Service production index

y-o-y change (%)

131.6 124.0 132.7 134.5 138.2 131.6 136.8 131.8 127.4 124.0 129.2 129.5 130.8 131.9 132.4 132.7 134.2 133.5 134.5 137.6 137.3 138.2 136.4 136.7 131.6 137.8 137.5 136.8 133.1 134.1 131.8 130.9 130.0 127.4 128.0 127.9 124.0 129.8 129.2 129.2 132.1 135.8 129.5 133.3 134.6 130.8

3.3 -5.8 2.4 4.9 7.1 3.3 3.1 -2.0 -7.8 -5.8 -5.6 -1.7 2.7 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 -1.7 1.8 3.5 2.7

y-o-y change (%)

112.1 115.5 108.3 111.6 111.7 116.8 111.3 115.5 115.7 119.3 114.2 118.2 119.4 107.1 104.7 113.0 111.6 111.5 111.8 111.9 110.9 112.4 114.0 113.1 123.2 110.1 108.0 115.8 113.8 115.5 117.3 115.5 115.8 115.7 116.3 116.0 125.6 113.0 110.7 119.0 116.5 118.2 119.8 118.1 118.2 122.0

2.9 3.0 2.8 2.8 2.9 3.3 2.8 3.5 3.6 2.1 2.6 2.3 3.2 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 2.3 2.1 5.4

52

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 Ⅱ

Ⅲp

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

6 7

8p

9p

Production capacity index* (2010=100)

Operation ratio index* (2010=100)

y-o-y change (%)

111.4 112.3 111.2 111.3 111.4 111.8 111.5 111.8 112.5 113.6 113.2 112.8 113.6 111.1 111.0 111.5 111.2 111.3 111.4 111.2 111.2 111.8 111.9 111.8 111.7 111.3 111.4 111.7 111.6 111.7 112.1 112.3 112.5 112.7 113.3 113.7 113.8 113.5 113.4 112.8 112.8 112.8 112.8 113.1 113.6 114.0

* 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 1.0 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 0.7 1.0 1.2

92.4 90.4 90.3 95.2 90.1 93.9 89.1 92.3 86.9 93.5 88.2 91.2 89.4 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 92.0 91.4 85.2 91.7

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 2.9 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 -1.5 -0.8 1.8 8.1

74.5 72.6 74.4 74.5 75.2 73.7 73.4 72.8 71.9 72.4 72.8 71.5 72.3 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 71.3 73.1 72.0 71.8

53

November 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 Ⅱ

Ⅲp

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

8p

9p p: Preliminary Source: Statistics Korea

y-o-y change (%)

114.6 119.5 109.1 113.2 113.2 123.0 114.6 119.9 117.2 126.1 116.8 121.9 122.2 108.0 105.8 113.5 112.8 117.2 109.5 113.2 110.0 116.5 121.7 121.8 125.6 113.8 109.3 120.6 117.1 122.9 119.8 118.0 116.8 116.7 124.8 125.7 127.9 118.5 109.8 122.0 120.1 124.6 121.1 122.2 117.9 126.4

4.1 4.3 2.4 3.9 3.6 6.3 5.0 5.9 3.5 2.5 1.9 1.7 4.3 -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 3.6 0.9 8.3

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

135.0 141.1 126.2 131.9 132.7 149.3 134.3 146.5 134.1 149.4 138.5 152.9 151.0 127.8 116.8 133.9 129.1 130.6 136.1 139.8 129.0 129.2 143.2 146.9 157.8 125.7 125.4 151.7 138.9 145.9 154.6 140.4 136.6 125.2 144.2 148.8 155.2 127.8 134.7 152.9 146.9 154.9 157.0 156.8 144.9 151.3

10.0 4.5 7.5 8.8 7.5 16.1 6.4 11.1 1.1 0.1 3.1 4.4 12.6 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 1.6 11.7 6.1 20.8

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 95.3 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 87.8 102.1

-1.1 2.5 -2.0 -1.3 -3.5 1.5 2.3 4.4 3.5 0.4 -1.4 -2.1 -0.5 -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 -1.5 2.3

Nondurable goods

y-o-y change (%)

109.7 115.0 105.9 108.7 113.2 111.1 111.5 112.9 118.7 116.7 114.4 114.7 120.5 103.2 106.8 107.8 107.6 112.2 106.4 110.2 110.8 118.7 111.4 108.9 112.9 113.6 108.9 112.0 110.4 115.6 112.8 116.1 119.7 120.2 116.1 115.2 118.8 122.0 105.9 115.4 112.0 117.1 115.0 117.5 118.5 125.4

3.1 4.8 1.5 3.3 4.2 3.3 5.3 3.9 4.9 5.0 2.6 1.6 1.5 -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 1.2 -1.0 4.3

54

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 Ⅱ

Ⅲp

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

8p

9p 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 8,760 7,422 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 3,210 2,783 2,296 2,343

-3.9 3.8 -2.5 15.2 -28.3 6.3 -0.6 -3.0 3.3 16.0 29.0 28.5 30.6 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 20.0 37.9 38.4 16.9

y-o-y change (%)

1,921 2,842 405 493 399 624 635 570 470 1,167 687 542 458 116 141 148 127 197 169 133 160 106 98 228 298 69 255 312 188 169 213 52 84 334 59 141 967 118 226 342 241 117 184 296 82 81

-61.7 48.0 -66.9 61.6 -85.3 -19.8 56.9 15.7 17.7 87.1 8.2 -4.9 -2.6 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 -13.5 473.1 -3.2 -75.9

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 8,218 6,964 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 3,026 2,487 2,215 2,262

9.6 0.2 12.0 12.7 2.8 10.1 -4.5 -4.4 2.2 8.4 31.3 31.5 33.6 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 22.8 26.5 40.6 35.4

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

change (%)

112.2 110.7 108.3 113.5 111.6 115.2 100.1 114.2 106.3 122.0 118.2 134.4 128.3 103.8 99.0 122.1 113.9 107.9 118.6 120.2 106.3 108.3 113.0 107.8 124.9 97.0 90.7 112.7 111.0 110.6 121.1 105.0 109.8 104.0 109.3 118.8 138.0 107.0 108.4 139.1 126.9 132.7 143.6 131.1 123.5 130.2

6.9 -1.3 9.2 5.2 10.8 2.0 -7.6 0.6 -4.7 5.9 18.1 17.7 20.7 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 18.6 24.9 12.5 25.2

55

November 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 Ⅱ

Ⅲp

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

8p

9p

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 35,556 34,733 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 13,073 11,209 11,122 12,403

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 18.6 17.4 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 12.7 17.4 13.1 21.7

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 8,067 6,838 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 3,338 2,236 2,099 2,504

-3.1 -0.4 -6.5 -4.9 0.0 2.6 0.4 -2.3 -2.6 2.6 3.7 -0.4 -3.2 -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 -3.4 -0.9 -10.5 1.8

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 26,578 27,046 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 9,393 8,711 8,774 9,560

7.9 24.3 5.9 -0.4 11.7 32.2 14.0 24.6 23.7 32.2 37.0 29.7 27.4 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 26.0 23.4 32.7

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 38,544 32,742 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 12,556 8,460 12,763 11,519

48.4 8.7 57.8 49.8 50.6 26.0 13.9 -6.7 1.3 26.0 3.6 16.8 -11.4 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 0.4 -29.5 -4.6 -0.8

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 7,525 6,872 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 3,937 1,801 3,031 2,040

8.0 19.0 -22.4 36.5 -5.5 25.1 70.0 -37.9 62.6 25.1 -6.4 35.2 -13.7 -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 74.7 -31.4 -11.0 5.6

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 30,261 25,728 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 8,529 6,638 9,720 9,371

66.1 5.2 110.9 55.0 67.9 29.2 -0.5 3.1 -11.9 29.2 -8.9 13.3 -5.4 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 -14.7 -21.9 2.7 1.5

56

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

5

6

7 8p 9p

10

11

indicator indicator Leading index Cyclical index Cyclical of leading index Coincident of coincident (2010=100) (2010=100) (2010=100) index (2010=100) 112.9 113.2 113.4 113.8 114.1 114.4 114.6 115.2 115.8 116.2 116.5 117.0 117.7 118.1 118.7 119.1 119.8 120.1 120.5 121.0 121.6 122.0 122.4 122.6 122.7 122.8 123.1 123.7 124.2 124.5 125.0 125.8 126.5 127.0 127.5 128.1 128.6 129.3 129.7 130.3 131.0 131.9 132.6 133.1 133.2 -

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 99.9 100.1 100.3 100.5 100.5 100.6 100.7 100.9 100.8 101.0 101.2 101.6 101.7 101.8 101.6 -

112.0 112.3 112.8 113.0 113.0 113.2 113.5 113.9 114.1 114.0 114.2 114.9 115.3 115.9 116.2 116.6 116.4 116.5 116.8 117.5 118.4 119.0 119.0 119.3 119.3 119.5 119.6 119.9 120.5 121.0 121.6 122.1 122.2 122.2 122.6 123.2 123.8 124.1 124.7 125.1 125.2 125.3 125.7 126.1 126.6 -

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

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 96.7 101.2 108.0 111.1 111.2 109.9 107.7 109.2 -

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 85 83 -

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 79 87

57

November 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 9 10

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 99.9 100.2 100.4 100.8 100.6 100.8 100.8 100.8 100.6 100.9 101.5 101.6 101.5 101.6 102.4 102.8 102.8 102.7 102.8 102.7 102.9 103.5 103.6 103.4

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 2.1 1.8

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 98.5 100.0 100.3 100.1 100.1 101.1 101.6 101.5 100.8 101.0 100.9 100.8 102.0 102.5 101.8

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 2.4 1.5

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

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 1.8 2.0

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 99.9 100.2 100.3 100.2 100.4 100.4 100.6 101.0 101.2 101.3 101.5 101.7 101.8 101.5 101.6 101.7 102.1 102.0 101.9 102.5 102.7 102.8 102.8 103.1 103.2 103.3 103.4 103.3 103.5

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 1.6 1.3

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 99.5 100.0 100.9 102.3 102.7 102.7 102.4 102.2 101.8 101.9 102.3 103.0 103.0

-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 3.3 3.8 3.5

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 98.5 99.5 99.5

-1.4 -6.4 -3.4 -1.0 -1.7 -1.3 -1.1 -0.7 -0.6 -0.5 -1.1 -1.4 -1.8 -2.0 -3.6 -5.8 -5.8 -5.9 -5.8 -5.7 -5.8 -6.4 -7.1 -7.3 -7.4 -7.6 -6.6 -5.7 -5.9 -5.7 -5.2 -5.1 -4.7 -4.3 -3.4 -2.4 -1.0 0.4 2.2 5.3 6.0 5.9 5.1 4.4 3.4 3.7 4.4 5.1 4.7

58

Economic Bulletin

Statistical Appendices

9. Employment (I) Period 2015 2016 2015 Ⅰ Ⅱ

Ⅲ

Ⅳ

2016 Ⅰ Ⅱ

Ⅲ

Ⅳ

2017 Ⅰ Ⅱ

Ⅲ

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 9 10

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 27,799 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 27,779 27,751

377 335 412 373 355 367 351 275 374 338 374 421 260 444 401 390 239 449 430 413 290 363 328 296 476 339 337 379 274 244 308 274 460 387 362 364 288 374 404 454 522 373 367 301 216 263 252

16,105 16,169 16,469 15,835 15,921 16,194 16,568 15,970 15,926 16,210 16,552 15,896 15,992 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 16,026 16,076

128 64 72 150 162 128 99 135 4 17 -17 -74 66 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 54 63

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 63.5 61.0 61.6 62.0 62.8 63.3 63.3 63.4 62.8 62.9 62.9 62.7 61.9 61.1 61.8 62.2 62.8 63.3 63.5 63.5 63.3 63.3 63.2 63.0 62.1 62.1 62.2 62.8 63.5 63.6 63.8 63.7 63.3 63.4 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 61.3 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 61.3 61.3

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 3.5 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 3.4 3.2

59

November 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 26,833 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 26,844 26,855

337 299 354 308 310 376 287 289 318 302 360 367 279 347 376 338 216 379 329 326 256 347 348 285 495 339 223 300 252 261 354 298 387 267 278 339 289 243 371 466 424 375 301 313 212 314 279

4,486 4,481 4,418 4,466 4,511 4,550 4,544 4,503 4,439 4,439 4,432 4,480 4,470 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 4,456 4,465

156 -5 139 147 164 176 126 38 -71 -110 -112 -23 31 141 159 116 167 140 133 170 156 166 191 190 146 145 108 124 48 50 15 -65 -74 -76 -115 -102 -115 -160 -92 -83 -62 -25 16 50 25 20 28

20,092 20,449 19,747 20,114 20,217 20,289 19,956 20,446 20,683 20,710 20,449 20,829 20,902 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 20,913 20,913

287 357 307 290 253 300 209 332 466 421 493 383 219 317 309 294 185 364 319 247 213 300 275 256 370 262 169 196 259 304 433 469 524 404 434 406 424 407 469 604 496 392 259 234 163 260 232

2015 2016 2015 Ⅰ Ⅱ

Ⅲ

Ⅳ

2016 Ⅰ Ⅱ

Ⅲ

Ⅳ

2017 Ⅰ Ⅱ

Ⅲ

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 9 10 Source: Statistics Korea

60

Economic Bulletin

Statistical Appendices

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

Period 2015 2016p 2015 Ⅰ Ⅱ

Ⅲ

Ⅳ

2016p Ⅰ Ⅱ

Ⅲ

Ⅳ

2017p Ⅰ Ⅱ

Ⅲ

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 8 9 p: Preliminary Source: Bank of Korea

Current account

Goods

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 19,430.9 16,835.4 25,527.4 7,035.8 6,305.5 9,880.7 7,254.8 8,136.1 11,560.5 9,325.9 8,207.6 10,712.8 9,576.4 9,841.5 8,102.0 7,183.0 7,619.7 10,547.0 3,756.4 10,494.5 12,086.3 8,412.6 5,030.1 8,067.1 8,719.3 8,892.2 7,869.2 5,277.8 8,400.2 5,752.9 3,891.1 5,937.3 7,007.0 7,261.3 6,061.1 12,205.0

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 27,981.3 30,363.9 35,030.3 6,860.8 7,061.6 10,593.7 11,850.1 8,868.3 12,949.3 10,304.2 8,848.7 12,166.3 10,971.6 10,635.0 11,159.6 8,186.1 7,926.2 12,842.3 9,847.8 10,857.3 12,829.2 10,665.7 6,940.1 10,662.3 9,830.2 10,425.1 9,433.4 7,813.9 10,545.3 9,622.1 11,823.9 8,834.3 9,705.7 10,707.3 9,310.2 15,012.8

Exports

Imports

542,811.2 511,776.1 131,427.3 142,086.3 133,550.1 135,817.5 118,316.3 128,243.4 127,558.4 137,658.0 138,937.2 142,980.1 150,122.4 44,427.0 39,430.9 47,569.4 49,643.9 43,406.2 49,036.2 47,221.5 42,080.5 44,248.1 46,261.8 43,126.3 46,429.4 37,340.3 36,291.5 44,684.5 40,434.3 42,545.7 45,263.4 42,364.1 41,281.3 43,913.0 43,339.0 46,365.8 47,953.2 44,107.5 44,630.1 50,199.6 48,095.4 46,895.9 47,988.8 47,211.2 47,818.2 55,093.0

420,612.0 391,330.4 106,911.2 108,418.6 102,230.9 103,051.3 89,361.7 94,709.1 99,290.3 107,969.3 110,955.9 112,616.2 115,092.1 37,566.2 32,369.3 36,975.7 37,793.8 34,537.9 36,086.9 36,917.3 33,231.8 32,081.8 35,290.2 32,491.3 35,269.8 29,154.2 28,365.3 31,842.2 30,586.5 31,688.4 32,434.2 31,698.4 34,341.2 33,250.7 33,508.8 35,940.7 38,519.8 36,293.6 34,084.8 40,577.5 36,271.5 38,061.6 38,283.1 36,503.9 38,508.0 40,080.2

Services

Primary income

Secondary income

-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 -8,863.2 -6,875.4 -8,523.5 -1,913.6 -1,658.4 -539.1 -861.6 -18.2 -2,157.5 -1,502.5 -982.4 -1,251.2 -1,490.5 -1,219.4 -1,322.4 -1,837.3 -1,158.3 -922.2 -1,530.8 -1,071.5 -1,308.4 -1,583.4 -1,498.5 -2,578.1 -1,594.5 -1,737.1 -787.9 -3,359.3 -2,229.4 -3,274.5 -2,376.1 -1,688.1 -2,811.3 -3,294.6 -2,332.1 -2,896.8

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 1,128.6 -5,168.9 1,650.3 2,711.9 1,130.2 225.4 -3,236.8 -270.3 1,027.9 712.7 460.6 341.9 533.0 612.0 -676.1 1,232.2 831.1 -856.6 -4,057.1 858.5 1,089.7 -46.5 531.9 777.1 860.9 435.4 -188.3 1,090.3 631.3 -593.0 -5,026.2 -689.1 546.4 577.0 -77.5 1,150.8

-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 -815.8 -1,484.2 -2,629.7 -623.3 -227.9 -399.3 -496.9 -443.7 -259.2 -188.5 -119.3 -544.2 -437.7 -186.1 -1,059.1 -398.0 20.7 -507.5 -503.5 -149.8 -524.2 -623.2 -943.4 -794.2 -377.3 -231.2 -588.0 -267.1 -547.0 -1.7 -530.6 -519.8 -433.8 -728.4 -839.5 -1,061.8

61

November 2017

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

Period 2015 2016p 2015 Ⅰ Ⅱ

Ⅲ

Ⅳ

2016p Ⅰ Ⅱ

Ⅲ

Ⅳ

2017p Ⅰ Ⅱ

Ⅲ

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 8 9

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 31,644.6 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 9,125.0 12,749.6

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 4,254.4 933.9 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 1,579.6 2,276.9

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 25,016.0 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 11,455.9 10,353.1

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 -404.2 -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 -71.2 -111.3

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 2,929.7 -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 -4,186.2 858.0

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 -151.3 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 78.5 306.6 128.9 346.9 -627.1

* 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 -7.7 -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 -21.8 -1.2

62

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

9

10 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 1.3 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 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 1.8 2.0

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 2.0 2.2

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 2.3 2.6

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 2,394.47 2,523.43

63

November 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 8 9

M1

y-o-y change (%)

103,331.5 120,691.4 137,441.5 98,541.6 100,547.9 100,624.0 98,898.5 101,791.4 101,412.3 101,164.2 107,682.4 105,354.1 107,117.5 106,667.9 110,175.6 113,304.2 116,502.4 115,974.9 115,132.7 117,726.3 118,688.2 122,041.0 121,854.4 126,572.2 125,616.2 126,767.1 128,117.5 131,279.3 134,913.0 132,957.9 135,038.9 135,971.3 135,758.4 135,906.7 139,073.9 142,079.6 141,103.5 141,757.2 143,458.7 147,380.8 150,092.9 145,049.0 149,630.1 149,446.2 150,519.7 149,955.1 152,170.5 154,578.6

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 9.4 8.8

M2 y-o-y change (%)

536,733.4 636,639.0 734,411.8 515,742.5 518,475.5 520,299.0 518,809.3 523,069.9 532,041.2 534,028.8 538,640.3 548,550.8 551,416.0 562,006.2 577,721.1 579,964.2 592,737.4 600,719.9 610,803.3 621,985.5 630,546.3 645,975.4 653,105.9 665,691.1 669,737.7 677,629.2 690,772.4 699,767.3 708,014.0 713,861.2 720,818.5 722,544.4 730,637.8 735,172.2 738,120.9 751,408.5 753,367.3 762,639.7 776,589.6 780,995.5 776,362.5 789,187.8 791,859.3 791,074.8 798,890.2 804,853.4 805,103.3 810,905.0

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 9.1 7.9

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 2,485,629.9 2,492,388.4

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 4.6 4.6

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 3,472,041.5 3,483,119.8

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 6.2 5.9

64

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 9 10 Source: Bank of Korea

100/\

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 1,146.7 1,125.0

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 4.6 -1.8

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 1,020.4 994.2

-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 -5.8 -9.2

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 1,350.9 1,310.1

-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 9.8 4.2

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

November 2017

ECONOMIC BULLETIN (Republic of Korea)

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