Economic bulletin 201805 english by KOCIS

Republic of Korea

Economic Bulletin

Vol.40 No.5 May 2018 eb.kdi.re.kr ISSN 2287-7266

The Green Book: Current Economic Trends Economic News Briefing New Administrationâ&#x20AC;&#x2122;s First Year Evaluation Korea Hosts 2018 AfDB Annual Meetings Government to Lower Barriers to Entry in Financial Services Korea Grows 2.8% in Q1 2018

Statistical Appendices

Norigae A norigae is an accessory worn by women with traditional costumes. Norigaes , beautifully hung from the top of the skirts or the end of the jackets which are short enough to border on the skirts, were a good-luck charm, as well as a luxurious fashion item. Ornaments made of jade, coral, gold and other valuable materials are placed at the center from which colorful tassels flow freely. Intricate knots are placed in-between as a link, making the norigae flowing freely and gracefully.

The Green Book: Current Economic Trends Overview

01. External economic situation

02. Private consumption

03. Facility investment

04. Construction investment

05. Exports and imports

06. Mining and manufacturing production

07. Service sector activity

08. Employment

09. Financial markets

9.1 Stock market

9.2 Exchange rate

9.3 Bond market

9.4 Money supply and money market

10. Balance of payments

11. Prices

11.1 Consumer prices

11.2 International oil and commodity prices

12. Real estate market

12.1 Housing market

12.2 Land market

13. Composite indices of business cycle indicators

Contents

Economic News Briefing New administrationâ&#x20AC;&#x2122;s first year evaluation: The economy grows more than 3% but jobs and regulations need improving Korea hosts 2018 AfDB Annual Meetings Government to lower barriers to entry in financial services Korea grows 2.8% in Q1 2018 (advanced)

Editor-in-Chief Kim Joo-Hoon (KDI) Lee Kye-Moon (MOSF) Editorial Board Suk Ran (MOSF) Lee Jae-Yeal (KDI) Yu Seong-Im (KDI) Coordinators Kim Dae-Hyun (MOSF) Lee Ji-Youn (KDI)

49 Statistical Appendices

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. C omposite indices of business cycle indicators

May 2018

Overview

The Korean economy has seen a slowdown in mining and manufacturing production, as well as in investment, due to a high base effect from January-February. However, consumption continued to rise in March. The economy added 112,000 jobs year-on-year in March led by manufacturing and construction as well as a rebound in the service sector. The young adult unemployment rate continued to rise (11.3% → 11.6%, up 0.3%p, y-o-y). Consumer price inflation in April rose 0.3 percentage points from the previous month (up 1.3% → up 1.6%, y-o-y) due to a price hike in agricultural products and manufactured goods. Industrial production fell in March (down 0.2% → down 1.2%, m-o-m). Mining and manufacturing production slipped (up 0.8% → down 2.5%, m-o-m) due to a slowdown in automobiles and mechanical equipment. Service output edged up (down 0.2% → up 0.4%, m-o-m) backed by strong wholesale & retail and hotels & restaurants, despite a drop in financial & insurance services. Retail sales rose in March (up 0.8% → up 2.7%, m-o-m) as the sales of durable goods and semi-durable goods increased. Facility investment fell in March (up 1.1% → down 7.8%, m-o-m), despite an increase in transportation equipment, due to a slowdown in machinery investment. Construction completed fell (down 4.9% → down 4.5%, m-o-m) as building construction continued to decline. In March, the cyclical indicator of the coincident composite index stayed unchanged at 99.8, and the cyclical indicator of the leading composite index fell 0.2 points to 100.4. Exports declined 1.5 percent year-on-year in April (up 6.1% → down 1.5%, y-o-y) due to a high base effect from a year ago (up 23.8%). However, exports in April exceeded US $50 billion for the second consecutive month backed by strong major exports. In April, KOSPI rose as concerns over geopolitical risks eased in the wake of the inter-Korean summit and due to an improvement in corporate earnings. The dollarwon exchange rate increased due to rising US treasury bond yields. Government bond yields rose. Housing prices increased at a slower rate in April (up 0.12% → up 0.06%, m-o-m) as housing prices stabilized in the Seoul metropolitan area, and Jeonse (lump-sum deposits with no monthly payments) prices continued to fall (down 0.13% → down 0.19%, m-o-m).

Economic Bulletin

The Green Book

The economy is expected to stay on a recovery path given improving global economies and recovering investor confidence. However, young adult unemployment has been rising and external risks linger, such as Fed’s interest rate hikes. The government will strengthen its risk management, and will continue to work to improve the job market and the real economy by successfully implementing the 2018 economic policies and the recent measures aimed at increasing young adult jobs.

1. External economic situation The global economy has been improving as recovery continues in both developed and emerging economies. However, there are risks arising from the possibility of faster rate hikes in the US and trade conflicts between the US and China.

US The US economy continued to grow as industrial production increased and private consumption improved in March. Consumer confidence continued to be strong. Industrial production in March rose 0.5 percent compared to the previous month and 4.3 percent compared to a year ago backed by strong automobiles and utilities. The ISM Manufacturing Index edged down in April. ISM Manufacturing Index (base=50)

59.3 (Aug 2017) → 60.2 (Sep) → 58.5 (Oct) → 58.2 (Nov) → 59.3 (Dec) → 59.1 (Jan 2018) → 60.8 (Feb) → 59.3 (Mar) → 57.3 (Apr)

Retail sales in March rebounded 0.6 percent month-on-month led by strong automobile sales. Consumer confidence picked up in April. Conference Board Consumer Confidence Index (1985=100)

120.6 (Sep 2017) → 126.2 (Oct) → 128.6 (Nov) → 123.1 (Dec) → 124.3 (Jan 2018) → 130.0 (Feb) → 127.0 (Mar) → 128.7 (Apr)

Existing home sales grew 1.1 percent month-on-month in March to an annual rate of 5,600,000 homes. New home sales rose for the third consecutive month (up 4.0%, m-o-m) to an annual rate of 690,000 units. Case-Shiller Home Price Index (y-o-y, %)

5.7 (May 2017) → 5.6 (Jun) → 5.8 (Jul) → 5.8 (Aug) → 6.1 (Sep) → 6.3 (Oct) → 6.4 (Nov) → 6.3 (Dec) → 6.4 (Jan 2018) → 6.8 (Feb)

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

2.7 (May 2017) → 2.1 (Jun) → -8.9 (Jul) → -0.9 (Aug) → 14.3 (Sep) → -3.6 (Oct) → 15.4 (Nov) → -9.4 (Dec) → 0.0 (Jan 2018) → 3.6 (Feb) → 4.0 (Mar)

May 2018

US GDP growth and industrial production (%)

6 4 2 0 -2 -4

GDP (q-o-q, annualized rate)

-6 2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

Industrial production (q-o-q)

Sources: US Department of Commerce, Federal Reserve Board

In April, nonfarm payrolls added 164,000 new jobs, and the employment rate stood at 60.3 percent. The unemployment rate fell to 3.9 percent, a new record low since December 2000. Labor force participation rate (%)

62.7 (Nov 2017) → 62.7 (Dec) → 62.7 (Jan 2018) → 63.0 (Feb) → 62.9 (Mar) → 62.8 (Apr)

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

216 (Nov 2017) → 175 (Dec) → 176 (Jan 2018) → 324 (Feb) → 135 (Mar) → 164 (Apr)

Unemployment rate (%)

4.1 (Nov 2017) → 4.1 (Dec) → 4.1 (Jan 2018) → 4.1 (Feb) → 4.1 (Mar) → 3.9 (Apr)

US nonfarm payroll growth and unemployment rate (thousands)

(%)

600

400

200 8

-200 -400

-600 2

-800

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

-1,000

0 2009.1

2010.1

2011.1

Unemployment rate (right)

Source: US Department of Labor

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Economic Bulletin

The Green Book

(Percentage change from previous period)

2015 2016

2017

Annual Annual Annual

Real GDP

2.9

- Personal consumption expenditures - Nonresidential fixed investment

2018

Jan Feb Mar

1.5

2.3

1.2

3.1

3.2

2.9

2.3

3.6

2.7

2.8

1.9

3.3

2.2

4.0

1.1

2.3

-0.6

4.7

7.2

6.7

4.7

6.8

6.1

- Residential fixed investment

10.2

5.5

1.8

11.1 -7.3 -4.7 12.8

0.0

Industrial production

-1.0

-1.9

1.6

0.2

1.2 -0.4

1.9

1.1 -0.2

Retail sales

2.6

2.9

4.6

1.4

0.3

2.5

0.2 -0.2 -0.1 0.6

Existing home sales

6.2

4.1

1.7

1.0 -1.0 -2.6

3.5 -1.5 -3.2

3.0 1.1

Unemployment rate

5.3

4.9

4.4

4.7

4.3

4.1

4.1 4.1

Consumer prices (y-o-y)

0.1

1.3

2.1

2.6

1.9

2.0

2.1

2.3

2.1

2.2 2.4

1.1

1.0 0.5

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 first quarter of 2018, exceeding the government’s annual growth target of 6.5 percent, backed by strong fixed asset investment, retail sales and exports. Exports edged down 2.7 percent year-on-year in March, but bounced back in April, rising 12.9 percent.

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

(%) (%)

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

0 2009.Q1

2010.Q1

2011.Q1

2012.Q1

Source: China National Bureau of Statistics

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

2018.Q1

May 2018

(Percentage change from same period in previous year)

2015 2016

2017

Annual Annual Annual

2018

Jan

Feb

Mar

Real GDP

6.9

6.7

6.9

6.8

Industrial production

6.0

6.2

6.6

6.8

6.9

6.3

6.2

6.8

7.21

6.2

Fixed asset investment (accumulated)

10.0

8.1

7.2

9.2

8.6

7.5

7.2

7.5

7.91

7.5

Retail sales

10.6

10.4

10.2

10.8

10.3

9.9

9.8

9.71

10.1

Exports

-3.0

-7.7

7.9

7.2

8.2

6.4

9.6

14.1

11.0

44.0

-2.7

Consumer prices

1.4

2.0

1.6

1.4

1.6

1.8

2.2

1.5

2.9

2.1

Producer prices

-5.2

-1.3

6.3

7.4

5.8

6.2

5.9

3.7

4.3

3.7

3.1

1. Accumulated, January-February Source: China National Bureau of Statistics

Japan Japan’s economy continued to recover: Retail sales fell 0.7 percent month-onmonth in March, but industrial production rose 1.2 percent and exports continued to be strong. Japan’s Cabinet Office said in its monthly economic report on April 16 that the economy is expected to continue recovering given the improving employment and income situations. Unemployment rate (%)

3.0 (May 2017) → 2.8 (Jun) → 2.8 (Jul) → 2.8 (Aug) → 2.8 (Sep) → 2.8 (Oct) → 2.7 (Nov) → 2.7 (Dec) → 2.4 (Jan 2018) → 2.5 (Feb) → 2.5 (Mar)

Japan’s GDP growth and industrial production

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

(%)

-1

-5

-2

-10

-3

-15

-4

-20

-5

-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

Economic Bulletin

The Green Book

(Percentage change from previous period)

2015 2016

2017

Annual Annual Annual

2018

Jan

Feb

Mar

Real GDP

1.4

0.9

1.7

0.5

0.6

0.4

Industrial production

-1.2

-0.2

4.5

0.2

1.8

0.4

1.6

-1.4

-4.5

2.0

1.2

Retail sales

-0.3

-0.6

1.9

-0.2

0.6

0.1

1.3

-0.6

-1.6

0.5

-0.7

Exports (y-o-y)

3.8

-7.4

11.8

8.5 10.5 15.1 13.0

4.9 12.3

1.8

2.1

Consumer prices (y-o-y)

0.8

-0.1

0.5

0.3

1.3

1.5

1.1

0.4

0.6

1.4

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

Eurozone The eurozone economy grew modestly, despite a slowdown in industrial production, as employment continued to improve and economic confidence remained strong. The unemployment rate in March stayed at 8.5 percent, the lowest level since December 2008. Unemployment rate (%)

9.2 (May 2017) → 9.0 (Jun) → 9.0 (Jul) → 9.0 (Aug) → 8.9 (Sep) → 8.8 (Oct) → 8.7 (Nov) → 8.6 (Dec) → 8.6 (Jan 2018) → 8.5 (Feb) → 8.5 (Mar)

Manufacturing PMI

57.4 (Jun 2017) → 56.6 (Jul) → 57.4 (Aug) → 58.1 (Sep) → 58.5 (Oct) → 60.1 (Nov) → 60.6 (Dec) → 59.6 (Jan 2018) → 58.6 (Feb) → 56.6 (Mar) → 56.2 (Apr)

Eurozone Economic Sentiment Indicator (base 2010=100)

110.7 (Jul 2017) → 111.4 (Aug) → 112.5 (Sep) → 113.5 (Oct) → 114.0 (Nov) → 115.3 (Dec) → 114.9 (Jan 2018) → 114.1 (Feb) → 112.7 (Mar) → 112.7 (Apr)

Eurozone’s GDP growth and industrial production (%)

(%)

6 4

1 2 0

0 -2

-1 -4 -2

-6 -8

-3 -10

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

-4

-12 2009.Q1

Source: Eurostat

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

May 2018

(Percentage change from previous period)

2015 2016

2017

Annual Annual Annual

2018

Jan

Feb

Mar

0.4

Real GDP

2.1

1.9

2.4

0.6

0.7

Industrial production

2.1

1.6

2.9

0.1

1.2

1.3

1.5

-0.6

-0.8

Retail sales

2.9

1.6

2.2

0.3

0.8

0.4

-0.2

-0.3

0.3

0.1

Exports (y-o-y)

5.3

0.3

7.1

1.2

1.3

-2.2

6.0

9.0

3.0

Consumer prices (y-o-y)

0.0

0.2

1.5

1.8

1.5

1.4

1.3

1.1

1.3

Sources: Eurostat, Bloomberg

2. Private consumption Private consumption (advanced estimates of GDP) in the first quarter of 2018 rose 0.6 percent compared to the previous quarter and 3.4 percent compared to a year ago. (Percentage change from previous period)

2015

2016

Annual Annual

Private consumption2 (y-o-y)

2017 Q3

Q4 Annual

2018 1

Q11

2.2

2.5

-0.2

0.8

0.5

0.3

2.6

0.5

1.0

0.8

1.0

0.6

2.4

3.6

2.8

1.4

2.1

2.4

2.6

3.4

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

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

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

-6 2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

2018.Q1

Source: Bank of Korea (national accounts)

Retail sales in March increased 2.7 percent month-on-month as the sales of durable goods (up 6.6%) and semi-durable goods (up 5.5%) rose. Year-on-year, the index rose 7.0 percent.

Economic Bulletin

The Green Book

(Percentage change from previous period)

2015

2016

Annual Annual

2017

2018

Annual

Q11

Feb1 Mar1

Retail sales

4.1

3.9

-1.6

1.4

1.9

0.4

1.0

0.2

0.9

3.1

0.8

(y-o-y)

3.1

2.2

1.6

1.0

3.2

2.1

5.0

6.6

7.0

10.1

4.6

-8.3

6.5

5.4

1.0

5.2

-3.0

1.4

5.5

0.0

6.6

21.1

2.8 -21.2 16.5

0.9

-0.5

3.5

-6.9

1.4 11.0

1.7

8.1

-1.2

2.3

-0.9

-0.1

-1.1

-1.3

-0.5

1.1

1.4

2.8

5.0

5.5

3.2

4.2

1.3

-0.3

1.7

0.8

-0.5

1.4

0.5

2.1

-0.4

-0.3

- Durable goods2 Âˇ Automobiles - Semi-durable goods - Nondurable goods4

2.7

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

Retail sales (%)

-5

Retail sales (y-o-y)

-10 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Retail sales (m-o-m)

Source: Statistics Korea (industrial activity trends)

In April, domestic sales of cars and credit card use increased, but large discount store sales declined. The number of Chinese tourists rose due to a low base effect from a year ago.

2017 Sep

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

Oct

2018

Nov

Dec

6.6

4.1

8.3

-0.8

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

5.0

-0.2

6.3

5.9

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

-1.1

1.7

5.9

1.0

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

15.8

-13.5

-4.0

-19.4

107.4

108.9

112.0

Number of Chinese tourists (y-o-y, %) -56.1

-49.3

-42.1

Consumer sentiment index

Jan 0.2

Feb

Mar

Apr

4.2

1.2

14.1

-7.9

8.5

5.5

0.5

-8.7

24.7

3.1

-2.0

8.6

-11.2

-3.5

1.3

110.6

109.9

108.2

108.1

107.1

-37.9

-46.0

-41.5

11.8

58.81

1. â&#x20AC;&#x152; 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

May 2018

3. Facility investment Facility investment (advanced estimates of GDP) in the first quarter of 2018 rose 5.2 percent quarter-on-quarter and 9.2 percent year-on-year. (Percentage change from previous period)

2015

2016

Annual Annual

2017 1

2018

Q11 5.2

Q4 Annual Q1

-7.1

2.7

1.6

6.5

14.6

4.3

0.2 -0.7

-3.6 -1.6 -2.5

3.3

Facility investment2

4.7

-1.0

(y-o-y)

- Machinery

2.9

-0.8

-7.5

4.1

6.5

8.6

23.0

7.1

3.9

- Transportation equipment

8.7

-1.5

-6.3

0.2 -7.9

1.8

-3.2

-1.7

5.3 -5.5

4.5

16.1 17.9 16.3

8.6

9.2

2.4 -1.2 0.8

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

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

Facility investment (y-o-y)

-30 2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

2018.Q1

Facility investment (q-o-q)

Source: Bank of Korea (national accounts)

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

40 30 20 10 0 -10 -20

Machinery Transportation equipment

-30 2009.Q1

2010.Q1

2011.Q1

Source: Bank of Korea (national accounts)

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

Economic Bulletin

The Green Book

The facility investment index in March fell 7.8 percent month-on-month and 0.2 percent year-on-year, as machinery investment decreased. In the first quarter of 2018, the index rose 8.3 percent quarter-on-quarter and 9.2 percent year-on-year. (Percentage change from previous period)

2015 2016

2017

Annual Annual Annual Q1

Facility investment index

6.9

(y-o-y)

- Machinery

3.6

- Transportation equipment

15.0

-1.3 14.1 -

2018 Q11

Jan

-1.7

8.3

5.4

1.1

-7.8

2.0

9.2 21.5

9.4

-0.2

5.1

-4.8 -11.6

3.1

0.2

18.2 17.8 20.6

6.0

-2.2 22.4

6.6

7.9

-0.1

-2.0

0.9

5.1

-8.7

0.4

-0.8 18.0

-4.4

6.9

Feb1 Mar1

0.3 21.9

3.5

1. Preliminary Source: Statistics Korea

The facility investment outlook is mixed: Machinery imports and business sentiment improved, but domestic machinery orders received fell along with the capacity utilization rate. BSI in the manufacturing sector (base=100, Bank of Korea)

84 (Nov 2017) → 82 (Dec) → 82 (Jan 2018) → 77 (Feb) → 82 (Mar) → 78 (Apr) → 81 (May) (Percentage change from same period in previous year)

2015 2016

2017

Annual Annual Annual Q1

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

-3.9 -

-Public

2018 Q3

Jan

4.7 19.2

21.1 23.7 31.3

4.2

-8.6 11.4

1.4

0.3 -11.8

8.4

-0.9 -54.0 -13.1 120.7 -38.1 -44.4

-61.7 49.0 -21.8

-5.8

-Private

9.6

1.1 24.1

22.5 26.3 34.1 15.0

Machinery imports

0.4

-2.5 18.8

24.2 20.5 22.7

Capacity utilization rate

74.4 72.9 72.6

Facility investment pressure2

-1.2

-0.3

0.6

0.8 22.3

Feb1 Mar1

-7.2

2.2 16.3

-9.4

-5.9

-5.2

0.6

-6.5

-1.2

9.1 20.4 30.3 23.8 10.3

73.5 72.0 73.0 71.8 71.0 70.6 72.1 70.3 2.8

0.3

3.8

-4.7

-2.6

3.7

-7.9

-3.6

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

Leading indicators of facility investment (trillion won)

(y-o-y, %)

10 9

8 7

6 0

5 4

-20

Machinery orders (left)

-40

2 2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

Machinery imports (right)

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

2018.Q1

May 2018

4. Construction investment Construction investment (advanced estimates of GDP) in the first quarter of 2018 rose 2.8 percent quarter-on-quarter and 2.7 percent year-on-year. (Percentage change from previous period)

2015

2016

Annual Annual Q1

Construction investment2 (y-o-y) - Building construction - Civil engineering works 1. Preliminary

6.6

10.3

5.6

2017

2018

Q4 Annual1 Q11

Q21

Q31

Q41

Q11

3.2

2.2

1.0

0.9

1.1 -2.3

2.8 2.7

7.6

4.2

8.4

9.4 11.0 11.9

11.3

8.5

8.0

10.0

16.2

4.4

5.0

2.4

12.1

4.5

2.4

1.9 -1.6

0.3

-1.8

8.3 -1.0 -1.4 -2.7

-3.5

3.5 -3.0 -1.2 -4.2

3.7

3.8

2. National accounts Source: Bank of Korea

Construction investment (%)

-5

Construction investment (y-o-y)

-10 2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

2018.Q1

Construction investment (q-o-q)

Source: Bank of Korea (national accounts)

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

Building construction

-20

Residential buildings

-30

Civil engineering works

2009.Q1

2010.Q1

2011.Q1

Source: Bank of Korea (national accounts)

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

Economic Bulletin

The Green Book

Construction completed (constant) in March decreased 4.5 percent month-onmonth and 6.3 percent year-on-year, as building construction fell. In the first quarter of 2018, construction completed rose 2.3 percent quarter-on-quarter and 1.4 percent year-on-year. (Percentage change from previous period)

2015 2016

2017

Annual Annual Annual Q1

Construction completed (constant)

5.0 15.4

(y-o-y)

10.1

2018

-0.2

-0.3

17.7 13.6 12.7

4.3

Q11

Jan Feb1 Mar1

-0.1

2.3

7.3

-4.9

-4.5

-0.5

1.4 14.4

-1.2

-6.3

- Building construction

7.3 25.7

18.2

5.8

2.2

1.8

-0.9

0.9

7.8

-6.7

-6.1

- Civil engineering works

1.2

-8.4

0.6

-6.5

-6.2

2.3

6.6

5.5

0.7

0.0

1. Preliminary

-2.6

Source: Statistics Korea

With regard to outlook, construction orders received rebounded along with building permits and apartment presales increasing, but work orders in civil engineering continued to fall. Apartment presales (thousands, monthly average of the quarter, Real Estate 114)

57 (Q4 2016) → 19 (Q1 2017) → 27 (Q2) → 30 (Q3) → 33 (Q4) → 17 (Q1 2018) → 39 (Apr) (Percentage change from same period in previous year)

2015 2016

2017

Annual Annual Annual Q1

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

48.4

2018 Q3

8.1 -3.1

1.2 17.9 -10.2 -15.0

Feb1 Mar1

0.9 39.4 -35.7 15.5

-5.4

8.5 -10.6

50.5 14.4 -6.5

-7.7

8.4

- Civil engineering works

42.6 -10.5

29.7 63.3 -17.3 -13.0 13.1 266.1 -42.0 -38.4

Building permits

9.7

34.3 -5.7 -4.0

-5.0

-7.8

-1.1

Jan

- Building construction 2

-8.3 -15.5

-0.3

-2.4

5.5 17.8 -36.3

2.3

-4.5 -12.0 -31.7 40.0

3.7

3.5

2.2

5.3

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

Construction orders Building permit area

-100 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Sources: Statistics Korea (construction orders), Ministry of Land, Infrastructure and Transport (building permit area)

May 2018

5. Exports and imports Exports (preliminary) decreased 1.5 percent year-on-year to US $50.06 billion in April. Exports exceeded US $50 billion for the second month in a row but edged down year-on-year due to a high base effect from a year ago (up 23.8%). By item, semiconductors, computers, petrochemicals rose, while steel, automobiles and vessels dropped. By region, shipments to China, Japan, the Middle East and India increased, while exports to the US, Latin America, Vietnam and the EU declined. Export growth by item (y-o-y, %)

37.0 (semiconductors), 23.5 (computers), 11.7 (petrochemicals), -7.4 (steel), -8.6 (automobiles), -75.0 (vessels)

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

23.0 (China), 17.8 (Japan), 10.3 (Middle East), 4.5 (India), -1.8 (US), -2.5 (Latin America), -17.6 (Vietnam), -21.2 (EU)

Average daily exports, an indicator adjusted to days worked, fell month-on-month to US $2.18 billion (down US $20 million). Average daily exports (US $ billion)

2.07 (Nov 2017) → 2.18 (Dec) → 2.05 (Jan 2018) → 2.29 (Feb) → 2.20 (Mar) → 2.18 (Apr)

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

140 120 100 80 60 40 20 0

Export growth rate Semiconductors

-20 -40 -60

Automobiles Steel

-80 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

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

(US $ billion)

2015

2016

2017

Annual Annual Annual

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

2018 Q3

573.69 132.06 147.04 151.05 143.54

Apr

Apr1

526.76

495.43

51.58

50.06

-8.0

-5.9

15.8

14.6

16.7

24.0

8.4

23.8

10.1

6.1

-1.5

1.93

1.81

2.13

1.96

2.21

2.13

2.23

2.26

2.17

2.20

2.18

1. Preliminary Source: Korea Customs Service

50.84 145.44

Mar

Economic Bulletin

The Green Book

Imports (preliminary) in April rose 14.5 percent year-on-year to US $43.45 billion. Import growth accelerated in all three categories. Import growth by category (y-o-y, %, Mar → Apr)

5.3 → 18.8 (commodities), 4.2 → 7.9 (capital goods), 7.4 → 16.0 (consumer goods)

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

100 80 60 40 20 0 -20 -40

Import growth rate Commodities Capital goods

-60 -80 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

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

(US $ billion)

2015

2016

2017

Annual Annual Annual

2018 Q3

Apr

Mar

Apr1

44.81

43.45

Imports

436.50

406.19

(y-o-y, %)

-16.9

-6.9

17.8

24.1

18.6

18.0

11.6

17.2

13.5

5.2

14.5

Average daily imports

1.60

1.49

1.78

1.72

1.77

1.70

1.91

1.69

1.97

1.91

1.89

478.48 116.43 117.80 120.85 123.40

37.96 132.20

1. Preliminary Source: Korea Customs Service

The trade balance (preliminary) posted a surplus of US $6.61 billion in April, staying in the black for the 75th consecutive month. Surpluses decreased compared with the previous month. (US $ billion)

2015

2016

2017

Annual Annual Annual

Trade balance

90.26

89.23

1. Preliminary Source: Korea Customs Service

95.22

2018

Apr

15.63

29.25

30.20

20.14

12.88

13.24

Mar 6.78

Apr1 6.61

May 2018

Exports and imports (US $ billion)

60 50 40 30 20 10

Exports

Imports

-10 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Trade balance

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

6. Mining and manufacturing production Mining and manufacturing production fell 2.5 percent month-on-month in March as manufacturing declined. The index fell 4.3 percent year-on-year. Compared to the previous month, production of semiconductors (up 1.2%), other transportation equipment (up 4.6%) and primary metals (up 1.7%) rose, while automobiles (down 3.7%), mechanical equipment (down 4.3%) and chemical products (down 3.2%) fell. Compared to a year ago, production of semiconductors (up 5.0%), electronic products (up 7.5%) and pharmaceutical products (up 11.7%) rose, while automobiles (down 12.5%), processed metals (down 13.8%) and other transportation equipment (down 20.0%) declined. The manufacturing inventory-shipment ratio rose 2.9 percentage points month-onmonth to 114.2 percent as inventories increased 1.2 percent and shipments fell 1.4 percent. Inventories of semiconductors (up 8.3%), primary metals (up 4.7%) and chemical products (up 2.0%) rose, while automobiles (down 3.4%), mechanical equipment (down 3.7%) and clothing & fur (down 5.8%) declined. Shipments of semiconductors (up 9.2%), other transportation equipment (up 6.2%) and broadcasting & communications equipment (up 6.4%) rose, while refined petroleum (down 10.4%), groceries (down 6.4%) and mechanical equipment (down 3.6%) fell. The capacity utilization rate of the manufacturing sector fell 1.8 percentage points month-on-month to 70.3 percent.

Economic Bulletin

The Green Book

Industrial production (%)

50 40 30 20 10 0 -10 -20

Industrial production (y-o-y)

-30 2009.1

Industrial production (m-o-m)

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Statistics Korea (industrial activity trends)

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

Shipment growth

-6 2009.1

2010.1

2011.1

2012.1

Inventory growth

Source: Statistics Korea (industrial activity trends)

Capacity utilization rate (%) 90 85 80 75 70 65 60 2009.1

2010.1

2011.1

2012.1

Source: Statistics Korea (industrial activity trends)

May 2018

(Percentage change from previous period)

2017 Annual Q1

2018 Mar

Q11

Jan

Feb1 Mar1

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

1.7

-1.0

2.0

-1.3

0.8

-2.5

(y-o-y)

1.9

4.7

-3.8

5.0

-2.4

4.2

-6.8

-4.3

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

1.5

-1.1

2.1

-1.4

1.2

0.7

-2.2

(y-o-y)

1.6

4.8

-4.8

5.0

-3.0

3.5

-7.8

-4.7

Shipment

0.7

0.4

-1.0

1.9

-2.6

0.5

0.0

-1.4

-Domestic consumption

1.4

-1.4

2.1

-1.1

0.8

2.6

-3.7

-Exports

-0.3

-0.8

-0.5

1.5

-4.5

0.1

-3.7

2.0

8.8

1.7

2.9

0.0

3.6

1.2

Mining and manufacturingÂ˛ Production

Manufacturing

Inventory

Capacity utilization rate Production capacity (y-o-y)

72.6 73.5 71.8 73.4 71.0 70.6 72.1 70.3 1.1

-1.0

0.2

0.3

-1.2

-0.9

0.1

-0.9

1. Preliminary 2. Including mining, manufacturing, electricity and gas industry 3. At the end of the period

Mining and manufacturing is expected to increase given improving global economies. However, there are uncertainties about the countryâ&#x20AC;&#x2122;s trade issues and major economiesâ&#x20AC;&#x2122; monetary policy normalization.

7. Service sector activity Service output increased 0.4 percent month-on-month in March. Wholesale & retail and hotels & restaurants rose, while financial & insurance services declined, along with professional, scientific & technical services. Compared to a year ago, service output rose 2.3 percent.

Service sector activity (%)

10 8 6 4 2 0 -2

Service sector activity (y-o-y)

-4 2009.1

2010.1

2011.1

2012.1

Service sector activity (m-o-m)

Source: Statistics Korea (industrial activity trends)

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Economic Bulletin

The Green Book

March 2018 service output by business (y-o-y, %) 6 5

3 2

-1

Business services

Total index Transportation & storage services

1 0

Membership Healthcare & social organizations & welfare services personal services

Publishing & communications services

Real estate & renting

Hotels & restaurants Wholesale & retail

Education services Entertainment & leisure

Financial & insurance services

-2

Sewerage & waste management

Professional, scientific & technical services

-3

Source: Statistics Korea (industrial activity trends)

(Percentage change from previous period)

Weight

2016

2018

2017

Annual Annual Q1

Feb1 Mar1

Service activity index

100.0

2.6

1.9

0.7

0.5

0.9

0.2

1.0 -0.2

0.4

- Wholesale & retail

21.1

2.6

0.7 -0.1

0.1

0.8

0.6

1.0

1.1

1.3

- Transportation & storage services

9.0

2.2

1.6

2.0

0.5

1.4 -0.2 -0.5 -1.0

0.4

- Hotels & restaurants

6.2

2.3 -1.9

0.2

0.0 -0.8 -0.9 -1.9 -0.1

4.8

- Publishing & communications services

8.0

2.5

1.5

1.2

0.7

1.3

0.9

1.4

14.1

4.1

5.1

1.5

1.0

1.1

3.9

1.4 -2.0 -1.8

- Real estate & renting

3.2

0.6

1.2 -2.3

3.0

3.2 -8.4

- Professional, scientific & technical services

7.1 -0.8 -1.6

0.1 -0.2 -0.8 -0.6

3.2 -0.7 -2.1

- Business services

4.8

1.5

4.3

1.5

1.1

0.2

0.9 -0.8

- Education services

10.6

0.7

0.0

0.1 -0.4

0.5 -0.6

0.2

0.0 -1.4

- Healthcare & social welfare services

9.4

8.1

7.0

1.3

1.2

2.1 -1.1

1.1

0.9

0.8

- Entertainment & leisure

2.2

2.3

0.2

0.6

1.0 -1.8

2.1

0.5

1.5

- Membership organizations & personal services

3.2

0.3

0.0 -0.5

0.9 -1.4

1.2 -3.6

4.8

- Sewerage & waste management

1.1

3.1 -2.3

2.2

1.8 -4.1

2.7

- Financial & insurance services

1. Preliminary Source: Statistics Korea

1.1

0.2

0.2 -4.8

1.5

0.2

1.5

1.6 -0.8

5.2 -1.8

4.8

May 2018

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

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

-6

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Statistics Korea (industrial activity trends)

Service output for April will likely be affected by both positive and negative factors: Stock transactions and domestic sales of cars increased, but large discount store sales declined. The number of Chinese tourists jumped in April due to a low base effect from a year ago, when Chinese tourists declined 36.9 percent month-on-month.

2017 Sep

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

Oct

15.8 -13.5

2018

Nov

Dec

Jan

Feb

Mar

Apr

-4.0 -19.4

8.6 -11.2

-3.5

1.3

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

5.0

-0.2

6.3

5.9

-7.9

8.5

5.5

0.5

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

-1.1

1.7

5.9

1.0

-8.7

24.7

14.9

-2.0

Average daily stock transactions (trillion won)

8.8

10.1

12.7

12.1

15.8

13.0

12.4

14.3

-56.1 -49.3 -42.1 -37.9 -46.0 -41.5

11.8

58.81

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

1. â&#x20AC;&#x152; 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: Korea Automobile Manufacturers Association, Korea Exchange, data provided by retail industries

Economic Bulletin

The Green Book

8. Employment The number of workers on payroll in March increased by 112,000 from a year earlier to 26,555,000, and the employment rate (aged 15-64) remained unchanged at 66.1 percent. By industry, construction and services continued to lead employment growth. By employment status, permanent workers increased, while temporary and daily workers continued to decline, as well as self-employed workers.

Employment by industry (%)

100

71.2 71.2 70.7 70.5 70.4 70.4 70.7 70.7 70.6 70.6 70.6 71.5 71.9 71.5 71.1 70.6 70.2 70.1 70.4 70.6 70.4 70.3 70.5 70.9 71.1 71.2 70.9

Services Construction

7.0 6.8 6.8 6.9 7.0 7.0 7.1 7.2 7.1 7.1 7.4 7.4 7.3 7.3 7.3 7.4 7.5 7.5 7.4 7.3 7.5 7.5 7.6 7.7 7.6 7.5 7.5

20 18.2 18.1 17.8 17.5 17.3 17.2 17.1 16.9 17.0 17.0 17.0 17.2 17.4 17.5 17.2 17.0 17.0 17.1 17.0 16.9 16.9 16.9 17.0 17.4 17.6 17.5 17.1

Manufacturing 0

Agriculture, forestry & fisheries

3.5 3.8 4.7 5.1 5.3 5.4 5.2 5.2 5.3 5.3 5.0 3.8 3.4 3.7 4.4 5.0 5.3 5.4 5.2 5.3 5.3 5.3 5.0 4.0 3.8 3.8 4.5

2016.1 2

10 11 12 2017.1 2

10 11 12 2018.1 2

Source: Statistics Korea (employment trends)

Employment by status of workers (%)

100

3.8 3.8 4.2 4.3 4.4 4.4 4.4 4.5 4.5 4.5 4.3 3.8 3.7 3.8 4.0 4.3 4.3 4.4 4.3 4.3 4.3 4.4 4.2 3.7 3.7 3.7 3.9 20.9 20.9 21.3 21.3 21.3 21.3 21.3 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 21.4 21.1 21.0 21.1 21.2 21.2

80 5.7 5.6 5.3 5.5 5.5 5.7 5.8 5.5 5.5 5.6 5.8 5.8 5.7 5.5 5.4 5.8 5.9 5.9 5.9 5.4 5.6 5.6 5.7 5.6 5.4 5.2 5.3

60 19.3 19.2 19.3 19.5 19.7 19.6 19.7 19.5 19.3 19.3 19.3 19.1 18.4 18.3 18.6 18.7 18.9 19.0 18.9 18.8 18.7 18.7 18.8 18.5 17.8 17.5 18.1

Unpaid family workers

Self-employed workers Daily workers Temporary workers Regular workers

50.3 50.5 49.9 49.4 49.1 49.0 48.8 48.9 49.2 49.1 49.2 50.1 50.8 51.0 50.6 49.9 49.7 49.6 49.8 50.2 50.0 50.0 50.2 51.1 52.0 52.4 51.5

2016.1 2

10 11 12 2017.1 2

Source: Statistics Korea (employment trends)

10 11 12 2018.1 2

May 2018

Number of persons employed and employment growth (thousands)

Employment growth (y-o-y, left)

(millions)

1,000

800

600

400

200

-200

22 21

-400 2009.1

Number of employed (seasonally adjusted, right)

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Statistics Korea (employment trends)

2016

2017

Annual Annual

Number of employed (millions)

2018 Q3

Mar

Feb

Mar

26.41

26.73

Employment rate (%)

60.6

60.8

59.6

61.3

61.4

61.0

60.3

59.6

59.2

60.2

(Seasonally adjusted)

60.6

60.8

60.9

60.8

60.9

61.0

60.9

60.7

60.9

- 15 to 64

66.1

66.6

65.8

66.9

67.0

66.9

66.1

66.0

65.8

66.1

Employment growth (y-o-y, thousands)

231

316

353

367

279

265

463

183

104

112

- Manufacturing

-21

-18

-120

-21

-91

- Construction

119

136

163

167

299

209

360

224

144

103

447

-13

-63

116

-74

-92

-96

- Services · Wholesale & retail

26.10 26.92 27.00 26.88 26.44 26.28 26.08 26.56

· Hotels & restaurants

-3

-31

-40

-24

-22

-20

· Healthcare & social welfare services

101

- Wage workers

267

265

191

312

291

265

355

228

167

196

346

366

317

347

417

382

406

409

433

308

·Temporary workers

-132

-152

-126

-145

-104

-111

-124

-182

-96

·Daily workers

-88

-13

-57

-85

-16

-36

161

-12

108

-45

-63

-84

·Permanent workers

- Nonwage workers ·Self-employed workers

-9

168

126

-24

-42

-41

127

171

174

225

-9

- Female

146

189

182

192

187

193

237

109

121

- 15 to 29

-1

-7

-42

- Male

- 30 to 39

-57

-29

-53

-27

-18

-17

-31

-29

-34

-38

- 40 to 49

-59

-50

-41

-48

-55

-54

-44

-85

-107

-97

152

177

159

139

134

216

223

242

254

251

221

243

267

203

165

221

- 50 to 59 - 60 and above Source: Statistics Korea

Economic Bulletin

The Green Book

The number of unemployed persons in March was up by 120,000 from a year earlier to 1,257,000, and the unemployment rate rose 0.4 percentage points to 4.5 percent. Unemployment among young adults and those over 40 rose, while unemployment among those in their 30s declined.

Unemployment rate (%)

Original data

2 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Seasonally adjusted rate

Source: Statistics Korea (employment trends)

2016

2017

Annual Annual

2018 Q3

Mar

Feb

Mar

Number of unemployed (thousands)

1,009

1,023

1,162

1,074

963

892

1,137

1,181

1,265

1,257

Unemployment growth (y-o-y, thousands)

-20

-16

-76

- Male

-15

-8

-52

-57

- Female

-12

-28

-19

Unemployment rate (%)

3.7

4.3

3.8

3.4

3.2

4.1

4.3

4.6

4.5

(Seasonally adjusted)

3.7

3.6

3.7

3.6

4.0

- 15 to 29

9.8

10.7

10.3

9.3

9.0

11.3

10.0

9.8

11.6

- 30 to 39

3.1

3.3

3.6

3.4

3.0

3.8

3.3

3.2

3.7

- 40 to 49

2.1

2.4

2.0

1.8

2.5

2.6

2.8

- 50 to 59

2.3

2.2

2.4

2.3

1.8

2.1

2.5

2.8

- 60 and above

2.7

2.9

4.8

2.3

2.2

2.7

5.4

8.0

3.8

Source: Statistics Korea

May 2018

The economically inactive population in March increased 22,000 from a year earlier to 16,290,000, and the labor force participation rate rose 0.2 percentage points year-on-year to 63.1 percent. The number of persons economically inactive due to rest (up 77,000) and housework (up 71,000) increased, and those due to education (down 72,000) and childcare (down 72,000) decreased. Job seekers were up by 12,000.

Labor force participation rate (%)

Original data Seasonally adjusted rate

59 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Statistics Korea (employment trends)

2016

2017

Annual Annual

Economically inactive population (millions)

16.19

2018 Q3

Mar

Feb

Mar

16.18 16.56 15.91 16.01 16.26 16.27 16.62 16.74 16.29

Labor force participation rate (%)

62.9

63.2

62.2

63.8

63.6

63.1

62.9

62.3

62.0

63.1

(Seasonally adjusted)

62.9

63.2

63.1

63.2

63.3

63.0

63.4

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

102

-5

-20

-85

-107

247

- Childcare

-79

-96

-86

-88

-105

-107

-91

-80

-66

-72

- Housework

-33

-5

- Education

-51

-91

-63

-131

-88

-81

-150

-58

-72

- Old age

109

-3

- Rest

108

166

220

107

123

- Job seeking

-10

Source: Statistics Korea

Economic Bulletin

The Green Book

9. Financial markets 9.1 Stock market KOSPI rose 2.8 percent in April from 2,445.85 points to 2,515.38 points. The index gained after the inter-Korean summit as geopoltical risks are expected to ease, and also due to Korean companies’ strong first quarter earnings. KOSDAQ rose 0.6 percent from 871.09 points to 875.95 points. KOSPI (points)

2,446 (end-Mar 2018) → 2,408 (Apr 4) → 2,492 (Apr 27) → 2,515 (end-Apr)

Stock prices (monthly average, points)

2,700 2,400 2,100 1,800 1,500 1,200 900 600 KOSPI KOSDAQ

300 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Korea Exchange

(Closing rate)

KOSPI Mar 2018 Apr 2018

Stock price index (points) 2,445.85 2,515.38 Market capitalization (trillion won) Daily trade (trillion won) Foreign stock ownership (%, %p)

KOSDAQ 1

Change

Mar 2018 Apr 2018

Change1

69.53 (2.8%)

871.09

875.95

4.86 (0.6%)

1,627.6

1,680.1

52.5 (3.2%)

280.9

284.6

3.7 (1.3%)

6.88

7.81

0.9 (13.5%)

5.51

6.48

1.0 (17.6%)

36.38

36.45

0.1 (0.2%)

11.51

10.91

-0.6 (-5.2%)

1. Change from the end of the previous month as of end-April 2018 Source: Korea Exchange

May 2018

9.2 Exchange rate The dollar-won exchange rate rose 0.4 percent in April from 1,063.5 won to 1,068.0 won due to rising US Treasury yields as well as the ECB and BOJ’s decision to maintain their expansionary policies. The 100 yen-won exchange rate fell 2.4 percent from 1,001.7 won to 978.4 won as the yen weakened on the BOJ’s expansionary stance.

Foreign exchange rates (month-end, ₩)

1,600

1,400

1,200

1,000

Dollar-Won

800 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

100 Yen-Won

Source: Bank of Korea

(Closing rate)

2012

2013

2014

2015

2016

2017

Dec

Mar

Apr

Change1

1,070.6

1,055.4

1,099.3

1,172.5

1,207.7

1,070.5

1,063.5

1,068.0

-0.4

100 Yen-Won 1,238.3

1,002.3

913.0

974.1

1,035.4

949.3

1,001.7

978.4

2.4

Dollar-Won

2018

1. ‌ Appreciation from the end of the previous month as of end-April 2018 (%); the exchange rate is based on the closing price at 3:30 p.m., local time. Source: Bank of Korea

9.3 Bond market Korea treasury yields rose in April, led by mid- to long-term bonds, as concerns over a US-China trade war eased, geopolitical risks decreased following the inter-Korean summit, and US Treasury yields rose. Yield to maturity (m-o-m, basis points)

+0.0 (3yrs), +5.9 (5 yrs), +8.9 (10 yrs), +8.3 (20 yrs), +8.8 (30 yrs)

Economic Bulletin

The Green Book

(Closing rate, %)

2012

2013

2014

2015

2016

2017

2018

Dec

Feb

Mar

Call rate (1 day)

2.77

2.52

2.03

1.52

1.27

1.58

1.51

CD (91 days)

2.89

2.66

2.13

1.67

1.52

1.66

1.65

Treasury bonds (3 yrs)

2.82

2.86

2.10

1.66

1.64

2.14

Corporate bonds (3 yrs)

3.29

2.43

2.11

2.13

Treasury bonds (5 yrs)

2.97

3.23

2.28

1.81

1.80

Apr

Change1

1.54

1.51

-0.03

1.65

2.27

2.22

2.68

2.82

2.80

2.82

0.02

2.34

2.52

2.43

2.49

0.06

1. Basis points, %p, change from the previous month as of end-April 2018 Source: Bank of Korea

Interest rates (monthly average, yearly, %)

8 7 6 5 4 3 2

3-yr corporate bond yield

3-yr Treasury bond yield

0 2009.1

Overnight call rate (daily)

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Bank of Korea

9.4 Money supply and money market M2 (monthly average) in February rose 6.2 percent from a year ago due to Lunar New Year bonus payments and increased corporate investment. (Percentage change from same period in previous year, average)

2010

2011

2012

2013

2014

2015

2016

2017

Annual Annual Annual Annual Annual Annual Annual Annual

2018 Jan

Feb

Feb1

M12

11.8

6.6

3.8

9.5

10.9

18.6

15.4

9.2

6.3

8.1

839.6

8.7

4.2

5.2

4.8

6.6

8.6

7.3

5.5

6.2

2,570.8

Lf 3

8.2

5.3

7.8

6.9

7.0

9.7

8.1

6.7

6.4

6.8

3,595.6

1. Balance at end-February 2018, 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

May 2018

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

35 30 25 20 15 10

Reserve money

0 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Bank of Korea

Bank deposits increased 7.8 trillion won in March. Time deposits rose, but at a slower pace compared to the previous month (up 6.7 trillion won â&#x2020;&#x2019; up 1.5 trillion won) due to outflows of local government funds. Asset management company (AMC) deposits decreased 4.6 trillion won: Money market funds (MMFs) fell 5.1 trillion won as banks withdrew money to improve their BIS ratios. (Change from the end of the previous period, trillion won)

2010 2011 2012 2013 2014 2015 2016 2017

2018

Annual Annual Annual Annual Annual Annual Annual Annual Jan

Bank deposits

36.9

58.9

37.0

41.0 115.4 100.3

80.8

79.5

AMC deposits

-16.7 -16.6

18.8

17.7

47.6

27.9 28.8

42.4

44.4

Feb

Mar

-7.8 14.4 0.7

Mar1

7.8 1,565.8 -4.6

522.1

1. Balance at end-March 2018 Source: Bank of Korea

Deposits in financial institutions (m-o-m, end of month balance, trillion won)

60 50 40 30 20 10 0 -10 -20 2009.1

2010.1

Source: Bank of Korea

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Economic Bulletin

The Green Book

10. Balance of payments Korea’s current account (preliminary) in March posted a surplus of US $5.18 billion, staying in the black for 73 consecutive months. Goods account surpluses increased month-on-month from US $5.93 billion to US $9.88 billion due to more days worked. Number of days worked

19.5 (Feb 2018) → 23.5 (Mar)

Growth in goods exports (y-o-y, %) 0.6 (Feb 2018) → 5.2 (Mar)

Growth in goods imports (y-o-y, %) 13.3 (Feb 2018) → 5.1 (Mar)

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

62.5 (computers), 44.2 (semiconductors), 6.1 (machinery), 0.8 (petroleum products), 0.7 (petrochemicals), -31.0 (vessels)

Import growth by category in March (y-o-y, %, customs clearance basis) 5.3 (commodities), 4.2 (capital goods), 7.4 (consumer goods)

Services account deficits decreased month-on-month from US $2.66 billion to US $2.25 billion as deficits fell in travel, transportation, business services and manufacturing. Services balance (US $ billion, Feb → Mar)

-0.17 → -0.34 (intellectual property rights), -1.41 → -1.31 (travel), -0.60 → -0.39 (transportation), -0.85 → -0.67 (business services), 0.60 → 0.67 (construction), -0.64 → -0.55 (manufacturing)

Travel balance (US $ billion)

4 3 2 1 0 -1 -2

Travel balance Travel payment

-3 -4

2009.1

2010.1

2011.1

2012.1

2013.1

Travel revenue

Source: Bank of Korea (balance of payments trends)

2014.1

2015.1

2016.1

2017.1

2018.1

May 2018

The primary income account shifted from surpluses of US $1.28 billion to deficits of US $1.58 billion, and secondary income account deficits increased from US $0.58 billion to US $0.87 billion.

(US $ billion)

2016

2017

Annual Annual1

Q11

Q21

2018

Q31

Q41

Mar1

Q11

Feb1

Mar1

Current account

99.24 78.46 19.20 16.45 25.57 17.24

5.72 11.83

3.96

5.18

- Goods balance

118.90 119.89 27.31 29.56 34.75 28.27

9.36 23.91

5.93

9.88

- Services balance

-17.74 -34.47

-8.66

-6.75

-8.50 -10.56

-3.11

-9.41

-2.66

-2.25

- Primary income balance

3.85

0.12

1.37

-4.88

1.95

1.68

-0.52

0.39

1.28

-1.58

- Secondary income balance

-5.77

-7.08

-0.82

-1.48

-2.63

-2.15

-0.00

-3.06

-0.58

-0.87

1. Preliminary Source: Bank of Korea

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

Goods account Services account

-3 -6 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Current account

Source: Bank of Korea (balance of payments trends)

The capital and financial account (preliminary) in March posted an outflow of US $4.22 billion. Capital & financial account balance* (US $ billion)

9.44 (Jul 2017) → 8.99 (Aug) → 12.41 (Sep) → 6.69 (Oct) → 10.44 (Nov) → 6.35 (Dec) → 4.11 (Jan 2018) → 4.21 (Feb) → 4.22 (Mar) * Positive figures represent net outflows, and negative figures represent net inflows.

Net outflows increased in foreign direct investment (FDI) (US $0.33 billion in February → US $1.52 billion in March) as Korean FDI (up US $1.20 billion → up US $2.80 billion) rose faster than inbound FDI (up US $0.87 billion → up US $1.28 billion).

Economic Bulletin

The Green Book

Net outflows decreased in portfolio investment (US $9.17 billion → US $0.20 billion): Korean investment in foreign shares (up US $6.54 billion → up US $5.82 billion) rose slower than foreign investment in Korean shares rose (down US $2.63 billion → up US $5.62 billion). Net inflows increased in financial derivatives investment (US $0.86 billion → US $1.46 billion), and other investment posted a net outflow (US $4.58 billion net inflow → US $2.78 billion net outflow).

Capital & financial account balance (US $ billion)

15 12 9 6 3 0 -3

Capital & financial account Direct investment Portfolio investment Financial derivatives

-6 -9 -12

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Bank of Korea (balance of payments trends)

Current account surpluses are likely to decrease in April due to dividend payments and a decrease in trade surpluses (US $6.8 billion → up US $6.6 billion). Dividend payments (US $ billion, annual/April) 13.6/4.4 (2015) → 14.5/5.4 (2016) → 16.8/6.2 (2017)

May 2018

11. Prices 11.1 Consumer prices Consumer prices in April rose 0.1 percent from the previous month and 1.6 percent from the same period of the previous year.

Consumer price inflation (%)

6 5 4 3 2 1 0

Consumer price inflation (y-o-y)

-1 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Consumer price inflation (m-o-m)

Source: Statistics Korea (consumer price trends)

(Percentage change)

2017

2018

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

Consumer price inflation (m-o-m) 0.2

0.6

0.1

-0.2

-0.7

0.3

0.4

0.8

-0.1

0.1

(y-o-y)

2.6

2.1

1.8

1.3

1.5

1.0

1.4

1.3

1.6

2.2

Source: Statistics Korea

Fresh food prices rose at a faster rate (up 2.1% → up 4.1%, y-o-y), despite lower livestock product prices, as vegetable prices rose due to the delayed supply of spring vegetables. Domestic oil prices, despite a strong won, rose faster compared with a year ago (up 3.2% → up 3.8%, y-o-y) due to a low base effect. The prices of processed food (up 0.7% → up 1.4%, y-o-y) and nondurable manufactured goods (down 0.2% → up 1.5%, y-o-y) increased. Personal service prices rose steadily (up 2.5% → up 2.5%, y-o-y) despite high eating out costs (up 2.5% → up 2.7%, y-o-y) as medical checkup costs fell.

Economic Bulletin

The Green Book

Consumer price inflation in major sectors Total

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

Mar (y-o-y, %)

1.3

2.1

0.9

3.2

-2.5

0.9

0.5

2.5

Apr (y-o-y, %)

1.6

4.1

1.4

3.8

-2.5

0.8

0.3

2.5

0.33

0.46

0.17

-0.10

0.08

0.04

0.80

- Contribution (%p) Source: Statistics Korea

Contribution to consumer price inflation (%p)

Personal services

Public services 1

Housing rents Public utilities Manufactured products Agricultural, livestock & fishery products

-1

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Source: Statistics Korea (consumer price trends)

Core inflation, which excludes oil and agricultural products, rose 1.4 percent year-on-year. (Percentage change from same period in previous year)

2017

2018

Sep

Oct

Nov Dec

Jan

Feb Mar

Apr

Consumer prices excluding oil and agricultural products 1.6

1.3

1.2

1.5

1.1

1.2

1.3

1.4

Consumer prices excluding food and energy

1.6

1.4

1.5

1.2

1.3

1.4

Source: Statistics Korea

The basic necessities price index and the fresh food price index rose at a faster pace as vegetable prices increased. (Percentage change from same period in previous year)

2017

2018

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

Consumer prices for basic necessities

2.9

2.0

1.3

1.6

0.8

1.4

1.1

1.4

Fresh food prices

6.0

1.8

-2.5

-3.9

-2.6

4.3

1.0

4.7

Source: Statistics Korea

May 2018

Prices (y-o-y, %) 9

-3

Consumer price inflation Core inflation

-6 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Producer price inflation

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

11.2 International oil and commodity prices International oil prices rose in April following the US-led strike on Syria and as concerns escalated over US sanctions against Iran and OPEC’s production cut extension. Dubai crude (US $/barrel)

65.5 (1st week Apr 2018) → 67.3 (2nd week) → 69.3 (3rd week) → 70.7 (4th week)

International oil prices (US $/B)

140 120 100 80 60 40 20

WTI Dubai crude

0 2009.1

2010.1

2011.1

Source: Korea National Oil Corporation

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Economic Bulletin

The Green Book

(US $/barrel, period average)

2016

2018

2017

Annual Annual

Jan

Feb

Mar

Apr

Dubai crude

41.4

53.2

53.0

49.7

50.4

59.3

64.0

66.2

62.7

68.3

WTI crude

43.5

50.9

51.8

48.1

48.2

55.3

62.9

63.7

62.2

62.8

66.3

Brent crude

45.1

54.7

54.6

50.8

52.2

61.5

67.2

69.1

65.7

66.7

71.8

Source: Korea National Oil Corporation

Domestic gasoline prices went down in April, despite a rise in international oil prices, due to a strong won. Domestic gasoline prices (won/liter)

1,551.2 (1st week Apr 2018) → 1,550.1 (2nd week) → 1,550.0 (3rd week) → 1,552.3 (4th week)

International gasoline prices (US $/barrel)

75.3 (3rd week Mar 2018) → 77.6 (4th week) → 76.4 (1st week Apr) → 77.5 (2nd week)

Dollar-won exchange rate (won)

1,069.8 (3rd week Mar 2018) → 1,075.4 (4th week) → 1,058.9 (1st week Apr) → 1,066.6 (2nd week)

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

Dubai crude (import prices, left)

(US $/B)

160

140

120

100

20 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Dubai international prices (right)

Source: Korea National Oil Corporation

(Won/liter, period average)

2016 Annual Annual

2018

2017 Q1

Jan

Feb

Mar

Apr

Gasoline prices

1,403 1,491 1,510 1,477 1,456 1,522 1,558 1,552 1,565 1,558 1,551

Diesel prices

1,183 1,283 1,301 1,267 1,248 1,314 1,353 1,345 1,360 1,355 1,349

Source: Korea National Oil Corporation

May 2018

International corn and wheat prices rose in April as the droughts and unusually cold weather raised supply concerns. International grain prices in April (monthly average prices, m-o-m, %) 1.5 (corn), 0.6 (wheat), 0.0 (soybeans)

International copper prices rose in April as concerns over a US-China trade war eased, and aluminum prices rose after the US announced sanctions against Russian energy and metal firms over support for the Syrian government. Nonferrous metal prices in April (monthly average prices, m-o-m, %) 0.6 (copper), 8.2 (aluminum), 3.4 (nickel)

(Period average)

2016 1

Reuters Index

(Sep 18, 1931=100)

2018

2017

Annual Annual 2,330

2,472

Jan

Feb

Mar

Apr

2,644

2,426

2,404

2,409

2,342

2,366

2,339

2,320

2,284

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

International commodity prices (points)

(points)

500

4,000

450 400

3,000

350 300

2,000

250 200

1,000

150

CRB (left)

100 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Reuters index (right)

Source: KOREA PDS * â&#x20AC;&#x152; CRB demonstrates a futures price index of 21 commodities listed on the US Commodity Transaction Market, including beans and other crops, crude oil and jewelry.

Economic Bulletin

The Green Book

12. Real estate market 12.1 Housing market Housing prices nationwide rose 0.06 percent month-on-month in April. Housing prices rose 0.19 percent in the Seoul metropolitan area which includes Seoul (up 0.31%), Gyeonggi Province (up 0.13%) and Incheon (up 0.02%). Housing prices rose 0.02 percent in the five metropolitan cities and fell 0.12 percent in the eight provinces. Housing prices in five metropolitan cities (m-o-m, %)

Busan (-0.12), Daegu (0.33), Gwangju (0.21), Daejeon (0.06), Ulsan (-0.41)

Housing sales prices

(Percentage change from previous period)

2013 2014 2015 2016

2017

Annual Annual Annual Annual Annual

Nationwide

2018

Apr

Annual Jan

Feb

Mar

Apr

0.3

1.7

3.5

0.7

1.5

0.10

0.5

0.14

0.20

0.12

0.06

Seoul metropolitan area -1.1

1.5

4.4

1.3

2.4

0.15

1.3

0.36

0.46

0.30

0.19

- Seoul

-1.4

1.1

4.6

2.1

3.6

0.23

2.7

0.86

0.94

0.55

0.31

Âˇ Gangnam

-1.1

1.2

5.2

2.5

4.4

0.27

3.3

1.25

1.20

0.55

0.32

Âˇ Gangbuk

-1.7

1.1

3.9

1.8

2.9

0.19

2.0

0.45

0.67

0.55

0.31

Areas excluding the Seoul metropolitan area

1.7

1.9

2.7

0.2

0.7

0.05

-0.2 -0.05 -0.04 -0.04 -0.06

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

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

-1

Nationwide Seoul metropolitan area

-2 2009.1

2010.1

2011.1

Areas excluding Seoul metropolitan area

Source: Korea Appraisal Board

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

May 2018

Housing rental prices nationwide declined 0.19 percent month-on-month in April. Housing rental prices fell 0.22 percent in the Seoul metropolitan area and 0.17 percent in areas excluding the Seoul metropolitan area. Housing rental prices in major districts in Seoul metropolitan area (m-o-m, %) Seocho (-0.67), Songpa (-0.65), Gangdong (-0.66), Yangcheon (-0.69), Seongdong (-0.39)

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

Nationwide Seoul metropolitan area Areas excluding Seoul metropolitan area

-1

-2 2009.1

2010.1

2001.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Korea Appraisal Board

Housing rental prices

(Percentage change from previous period)

2013 2014 2015 2016

2017

Annual Annual Annual Annual Annual

Nationwide

2018

Apr Annual Jan

Feb

Mar

Apr

4.7

3.4

4.8

1.3

0.6

0.07

-0.5 -0.05 -0.09 -0.13 -0.19

Seoul metropolitan area 6.2

4.7

7.1

2.0

1.4

0.14

-0.5 -0.04 -0.09 -0.15 -0.22

- Seoul

6.6

3.6

7.2

2.0

0.18

0.1

0.20

0.17 -0.08 -0.20

Âˇ Gangnam1

6.7

3.3

7.9

1.8

2.6

0.20

-0.2

0.25

0.17 -0.26 -0.40

Âˇ Gangbuk

6.4

3.8

6.5

2.1

1.5

0.15

0.4

0.14

0.17

Areas excluding the Seoul metropolitan area 3.3

2.2

2.8

0.7

-0.1

0.00

-0.4 -0.06 -0.09 -0.12 -0.17

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

0.10

0.00

Economic Bulletin

The Green Book

There were 92,795 housing transactions in March, up 33.2 percent from a month earlier (69,679) and up 20.0 percent from a year ago (77,310).

Housing transactions 2015

(Thousands)

2016 1

2017

2018

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

Nationwide

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

Housing transactions (thousands)

150

125

100

Nationwide Seoul metropolitan area Areas excluding Seoul metropolitan area

0 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Ministry of Land, Infrastructure and Transport

12.2 Land market Land prices nationwide rose 0.35 percent month-on-month in March. Land prices rose 0.36 percent in the Seoul metropolitan area, led by Seoul (up 0.44%). Land prices in Seoul metropolitan area (m-o-m, %)

0.34 (Aug 2017) → 0.30 (Sep) → 0.27 (Oct) → 0.31 (Nov) → 0.31 (Dec) → 0.33 (Jan 2018) → 0.33 (Feb) → 0.36 (Mar)

Land prices rose 0.33 percent in areas excluding the Seoul metropolitan area, led by Busan (up 0.52%), Daegu (up 0.39%), Sejong (up 0.55%) and North Gyeongsang Province (up 0.24%). Land prices in areas excluding Seoul metropolitan area (m-o-m, %)

0.37 (Aug 2017) → 0.36 (Sep) → 0.31 (Oct) → 0.34 (Nov) → 0.33 (Dec) → 0.32 (Jan 2018) → 0.28 (Feb) → 0.33 (Mar)

May 2018

Land prices

(Percentage change from previous period)

2013

2014

2015

2016

2017

Annual Annual Annual Annual Annual

2018

Annual

Jan

Feb

Mar

Nationwide

1.14

1.96

2.40

2.70

3.88

1.06

0.93

0.99

0.33

0.31

0.35

Seoul

1.21

2.66

2.69

2.97

4.32

1.20

0.96

1.28

0.42

0.44

Gyeonggi

0.91

1.24

1.73

2.23

3.45

0.87

0.85

0.83

0.26

0.30

Incheon

0.87

1.35

1.95

1.74

3.10

0.90

0.72

0.65

0.21

0.19

0.25

Source: Korea Appraisal Board

Land prices (y-o-y, %) 6 5 4 3 2 1

National average 0

Metropolitan city -1

City

-2 2007

County

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Source: Korea Appraisal Board

Land and consumer prices (y-o-y, %)

60 50 40 30 20 10 0 -10

Land price inflation

-20 1976

1981

1986

1991

1996

2001

Consumer price inflation

Source: Korea Appraisal Board (land prices), Statistics Korea (consumer prices)

2006

2011

2016

Economic Bulletin

The Green Book

There were 320,000 land transactions in March, up 26.9 percent from the previous month and up 17.3 percent from a year ago (273,000). Land transactions (m-o-m, %)

Seoul (40.4), Busan (54.4), Daegu (31.5), South Jeolla Province (60.0)

Vacant land transactions increased 33.8 percent from the previous month to 104,000, accounting for 32.4 percent of the total land transactions. The index fell 4.7 percent compared with a year ago (109,000).

Land transactions

(Land lots, thousands)

2015 2016 1

2017

2018

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

Nationwide

257

250

276

258 280 301 312 327 293 238 294 296 298 252 320

Seoul

Gyeonggi

Incheon

1. Monthly average Source: Korea Land & Housing Corporation

Land transactions (thousand mÂ˛)

300,000

250,000

200,000

150,000

100,000

50,000

Seoul metropolitan area Area excluding Seoul metropolitan are

0 2009.1

2010.1

Source: Korea Appraisal Board

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

May 2018

13. Composite indices of business cycle indicators Industrial output fell 1.2 percent month-on-month in March. Services (up 0.4%) rose, while mining & manufacturing (down 2.5%), construction (down 4.5%) and public administration (down 4.6%) fell. Compared to a year ago, industrial output declined 1.0 percent.

Index of all industry production (%)

-5

Industrial output (y-o-y) Industrial output (m-o-m)

-10 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Statistics Korea (industrial activity trends)

2017 Aug

Sep

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

0.0

0.6

(y-o-y, %)

2.1

7.4

Coincident composite index (2015=100) (m-o-m, %)

Oct

2018 Nov

Dec

-0.6

0.3

-0.6

-3.0

1.4

-0.8

Feb1

Mar1

1.0

-0.2

-1.2

4.2

-1.2

-1.0

Jan

107.4 107.7 107.7 108.0 107.9 108.2 108.5 108.7 0.3

-0.1

0.3

0.2

Cyclical indicator of coincident composite index 100.4 100.4 100.2 100.2

99.8

(m-o-m, p)

-0.4

0.0

Leading composite index (2015=100) (m-o-m, %)

0.2

-0.1

0.3

0.0

-0.2

0.0

110.4 110.5 110.8 111.1 111.4 112.0 112.2 112.3 0.4

0.1

0.3

0.5

0.2

0.1

Cyclical indicator of leading composite index 101.1 100.9 100.8 100.7 100.7 100.8 100.6 100.4 (m-o-m, p)

-0.1

-0.2

-0.1

0.0

0.1

-0.2

1. Preliminary

The cyclical indicator of the coincident composite index remained unchanged from the previous month at 99.8. Four components of the index rose, while the other three declined.

Economic Bulletin

The Green Book

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

service output (0.2%), retail sales (1.8%), imports (0.2%), nonfarm payroll employment (0.1%), mining & manufacturing production (-0.3%), value of construction completed (-0.8%), domestic shipments (-0.4%)

Cyclical indicator of coincident composite index (points)

110

105

100

90 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Statistics Korea (industrial activity trends)

The cyclical indicator of the leading composite index fell 0.2 points from the previous month to 100.4. Among the eight components of the leading composite index, the ratio of job openings to job seekers and spreads between long & short term interest rates rose, while the other six fell. Components of the leading composite index in March (m-o-m)

ratio of job openings to job seekers (0.3%p), spreads between long & short term interest rates (0.07%p), inventory circulation indicator (-0.8%p), consumer expectations index (-1.1p), domestic shipments of machinery (-1.0%), value of construction orders received (-8.2%), ratio of export to import prices (-0.8%), KOSPI (-0.2%)

Cyclical indicator of leading composite index (points)

110

105

100

90 2009.1

2010.1

2011.1

2012.1

Source: Statistics Korea (industrial activity trends)

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Economic News Briefing

New administrationâ&#x20AC;&#x2122;s first year evaluation: The economy grows more than 3% but jobs and regulations need improving Korea hosts 2018 AfDB Annual Meetings Government to lower barriers to entry in financial services Korea grows 2.8% in Q1 2018 (advanced)

Economic Bulletin

Economic News Briefing

New administration’s first year evaluation: The economy grows more than 3% but jobs and regulations need improving Deputy Prime Minister Kim Dong Yeon and his economic team discussed the first year economic evaluation at the 6th Ministerial Meeting on the Economy held on May 10. Following is a summary of the discussion. - ‌ The economy has achieved more than 3 percent growth for the first time in three years as it grew 3.1 percent last year and 1.1 percent in the first quarter of this year. - ‌ Real household income turned to an increase in the fourth quarter of 2017 for the first time in nine quarters - ‌ The number of startups hit a record high of 27,000 this year, venture capital jumping 57 percent compared with last year - ‌ Corporate governance has been improving as large conglomerates are reducing circular holdings, and cooperation between large conglomerates and suppliers are increasing - ‌ Risks have been properly managed: Currency swap deals with China, Canada and Switzerland have been signed and trade issues with China have been worked on toward a resolution, and internally household debt problems have eased and housing market bubbles has subsided However, job markets have yet to recover and inefficient regulations needs to be gotten rid of as fast as possible. The government will: - ‌ Continue to pursue ‘growth through innovation’ to help create quality jobs and raise the economy’s growth potential - ‌ Continue to pursue regulatory reform to stimulate ‘growth through innovation’, which includes labor market reform to achieve both flexibility and security, as well as education reform to grow qualified workforce - ‌ Draw up a mid- to long-term plan to respond to future risks, including low birth and ageing population

Korea hosts 2018 AfDB Annual Meetings Korea’s Ministry of Strategy of Finance hosted the 2018 Annual Meetings of the African Development Bank Group (AfDB), which was held in Busan, Korea under the theme of ‘Accelerating Africa’s Industrialization’ on May 21-26. The Busan meeting is the fifth of its kind held outside Africa and the biggest-ever African event held in Korea.

Representatives from 80 member countries, as well as WB president and USAID officials, attended the meeting, and discussed Africa as a new growth engine for the global economy and global partnership in developing the region. The Ministry of Strategy and Finance expected the event to strengthen the Korea-Africa Economic Cooperation (KOAFEC), through which Korea and African countries have been working on infrastructure development in the region, including power supply and road construction.

Deputy Prime Minister Kim Dong Yeon (far right) delivers the opening statement at the 2018 Annual Meetings of the African Development Bank (AfDB) on March 23 in Busan.

Government to lower barriers to entry in financial services The Financial Services Commission (FSC) announced on May 3 its plans to overhaul the regulatory framework, which focus on breaking barriers to entry in financial services to promote competition and innovation in the financial sector. The FSC will ease requirements for entry in a way to promote innovation: It will consider authorizing more internet-only banks to operate in addition to those launched in 2017, and will promote smaller and specialized insurers, as well as brokerage and trust businesses. The FSC will also work for the current business approval procedures to be managed more transparently, and will introduce a fast track.

May 2018

Economic Bulletin

Economic News Briefing

Korea grows 2.8% in Q1 2018 (advanced) Koreaâ&#x20AC;&#x2122;s real gross domestic product (GDP) expanded 2.8 percent in the first quarter of 2018 compared to a year ago, according to the advanced data released by the Bank of Korea (BOK) on April 26. On the production side, agriculture, forestry & fisheries grew 6.5 percent as livestock and fishery products increased. Manufacturing grew 1.9 percent, led by machinery and equipment. Construction rose 3.3 percent as both residential and nonresidential construction increased. Services grew 0.9 percent backed by strong real estate & renting and cultural services. On the expenditure side, private consumption and government consumption increased 0.6 percent and 2.5 percent, respectively. Facility investment rose 5.2 percent as investment increased in machinery and transportation equipment, and construction investment rose 2.8 percent due to a rise in building construction. Intellectual property investment was up 0.2 percent. Exports increased 4.4 percent, led by chemical products and machinery, and imports increased 5.5 percent, led by natural gas and machinery. GDP by production and expenditure*

(Percentage change from previous period)

2016

20171

20181

GDP

0.6 (3.0)2

0.8 (3.5)2

0.4 (2.7)2

0.7 (2.6)2

1.0 (2.9)2

0.6 (2.8)2

1.4 (3.8)2

-0.2 (2.8)2

1.1 (2.8)2

Agriculture, forestry & fisheries

1.5

-3.2

-1.4

-1.1

3.9

-0.3

-1.8

0.2

6.5

Manufacturing

0.0

1.3

-0.1

1.8

1.7

0.1

2.7

-1.7

1.9

Electricity, gas & water supply

0.1

-0.6

2.9

-2.7

0.3

3.4

1.7

0.4

-5.5

Construction

3.7

2.0

2.3

2.2

4.8

-1.6

1.0

-1.6

3.3

Services3

0.6

0.4

0.7

1.0

0.3

0.9

Private consumption

-0.2

0.8

0.5

0.3

0.5

1.0

0.8

1.0

0.6

Government consumption

1.7

0.6

0.7

0.5

0.6

1.2

1.9

0.5

2.5

Construction investment

5.6

3.2

2.2

1.0

4.2

0.9

1.1

-2.3

2.8

Facility investment

-7.1

2.7

1.6

6.5

4.5

4.3

0.2

-0.7

5.2

Intellectual property investment

0.9

1.5

0.7

0.3

0.5

1.5

1.1

0.2

Exports

-0.2

0.8

1.4

-0.6

2.1

-2.7

5.6

-5.3

4.4

Imports

-1.3

2.3

2.4

0.1

4.9

-1.0

3.2

-2.9

5.5

*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. â&#x20AC;&#x152; Wholesale & retail, hotels & restaurants, transportation & storage, communications services, financial & insurance services, real estate & renting, business services, public administration, defense, education services, healthcare & social welfare services, entertainment, cultural & sports services and other services are included.

Statistical Appendices

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

Economic Bulletin

Statistical Appendices

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

Real GDP

Period

Agri., fores. & fisheries

Final consumption Manufacturing expenditure

Gross fixed capital formation Private consumption

Construction

Facilities

2010

6.5

-4.3

13.7

4.3

4.4

5.5

-3.7

22.0

2011

3.7

-2.0

6.5

2.7

2.9

0.8

-3.4

4.7

2012

2.3

-0.9

2.4

2.2

1.9

-0.5

-3.9

0.1

2013

2.9

3.1

3.6

2.2

1.9

3.3

5.5

-0.8

2014

3.3

3.6

3.5

2.0

1.7

3.4

1.1

6.0

2015

2.8

-0.4

1.8

2.4

2.2

5.1

6.6

4.7

2016

2.9

-2.8

2.4

3.0

2.5

5.6

10.3

-1.0

2017p

3.1

0.3

4.4

2.8

2.6

8.6

7.6

14.6

2010 Ⅰ Ⅱ

7.3

0.0

16.1

6.2

6.8

12.0

1.6

27.6

7.4

-2.2

17.2

3.6

6.8

-4.8

28.8

Ⅲ

5.4

-7.8

10.1

3.9

4.0

3.8

-4.8

20.6

Ⅳ

6.0

-5.7

11.9

3.4

3.2

1.3

-5.1

12.9

2011 Ⅰ Ⅱ

4.9

-9.3

11.4

3.3

3.7

-0.7

-8.2

8.3

3.6

-2.5

6.5

3.3

3.7

2.5

-2.5

8.3

Ⅲ

3.3

-5.8

5.6

2.8

2.5

1.7

-2.2

3.4

Ⅳ

3.0

7.1

3.4

1.7

-0.3

-2.0

-0.9

2012 Ⅰ Ⅱ

2.5

0.1

2.7

2.2

1.6

6.2

-0.2

11.0

2.4

-1.8

2.8

1.3

0.7

-2.3

-5.3

-1.9

Ⅲ

2.1

0.0

2.0

2.7

2.6

-0.9

-2.6

-4.2

Ⅳ

2.2

-1.3

2.0

2.7

-3.6

-6.4

-3.8

2013 Ⅰ Ⅱ

2.1

-1.2

2.7

1.5

-3.2

1.2

-12.3

2.7

0.1

3.6

2.2

1.9

4.2

8.9

-3.2

Ⅲ

3.2

4.3

3.8

2.4

1.9

4.9

7.5

2.3

Ⅳ

3.5

7.0

4.2

2.6

2.2

6.5

3.5

11.7

2014 Ⅰ Ⅱ

3.9

5.9

4.7

2.9

2.8

6.2

4.5

7.5

3.5

4.5

4.7

1.8

1.7

3.7

0.3

8.1

Ⅲ

3.3

2.7

3.1

2.0

1.4

3.6

2.3

4.3

Ⅳ

2.7

2.4

1.8

1.6

1.1

0.7

-1.7

4.1

2015 Ⅰ Ⅱ

2.6

8.5

1.1

1.8

1.4

3.8

4.0

5.1

2.4

-3.0

0.9

2.0

1.7

3.8

4.6

4.1

Ⅲ

3.0

0.3

2.2

2.3

2.2

6.0

7.6

6.1

Ⅳ

3.2

-4.0

2.7

3.5

6.5

9.6

3.5

2016 Ⅰ Ⅱ

3.0

-2.4

2.1

3.0

2.4

3.2

8.4

-3.6

3.5

1.1

2.7

3.8

3.6

5.2

9.4

-1.6

Ⅲ

2.7

-4.5

1.7

3.3

2.8

5.8

11.0

-2.5

Ⅳ

2.6

-4.6

2.9

1.9

1.4

7.8

11.9

3.3

2017p Ⅰ Ⅱ

2.9

-1.9

4.8

2.2

2.1

11.0

11.3

16.1

2.8

0.5

3.6

2.5

2.4

10.0

8.5

17.9

Ⅲ

3.8

0.4

6.4

3.0

2.6

9.2

8.0

16.3

2.8

1.5

2.7

3.5

3.4

5.0

3.8

8.6

2018p Ⅰ

2.8

4.6

3.0

4.0

3.4

4.7

2.7

9.2

p: Preliminary Source: Bank of Korea

May 2018

2. Production, shipment and inventory (constant prices, 2015=100)

Period 2015 2016 2017p 2015 Ⅰ Ⅱ Ⅲ Ⅳ 2016 Ⅰ Ⅱ Ⅲ Ⅳ

Production index*

Shipment index*

y-o-y change (%)

Inventory index*

y-o-y change (%)

Service production index

y-o-y change (%)

2018 Ip

100.0 102.3 104.2 97.2 99.9 98.3 104.5 98.6 102.1 100.2 108.4 103.2 104.3 104.8 104.3 100.7

-0.3 2.3 1.9 -1.7 -1.6 0.6 1.5 1.4 2.2 1.9 3.7 4.7 2.2 4.6 -3.8 -2.4

100.0 101.2 102.1 98.0 100.3 97.9 103.9 98.4 101.6 98.0 106.7 101.1 102.7 102.6 102.2 97.7

0.1 1.2 0.9 -0.6 -0.7 1.0 1.0 0.4 1.3 0.1 2.7 2.7 1.1 4.7 -4.2 -3.4

99.4 97.8 106.4 96.9 100.1 102.2 99.4 107.1 103.5 101.0 97.8 101.2 103.6 103.5 106.4 111.7

5.2 -1.6 8.8 0.8 5.3 6.8 5.2 10.5 3.4 -1.2 -1.6 -5.5 0.1 2.5 8.8 10.4

100.0 102.6 104.5 96.4 99.5 99.4 104.7 98.7 102.8 102.4 106.6 100.9 104.5 105.0 107.6 103.5

2.9 2.6 1.9 2.3 2.7 2.6 3.7 2.4 3.3 3.0 1.8 2.2 1.7 2.5 0.9 2.6

2016 1 2 3 4 5 6 7 8 9 10 11 12 2017 1 2 3 4 5 6 7 8 9 10 11 12 2018 1 2p 3p

98.8 91.6 105.3 99.6 102.5 104.2 103.1 98.5 99.0 104.9 109.0 111.3 100.3 98.6 110.6 103.3 104.3 105.4 104.8 100.8 108.9 99.0 107.8 106.0 104.5 91.9 105.8

-0.9 3.3 2.0 -1.7 5.5 3.0 2.8 4.0 -1.0 -0.7 6.2 5.6 1.5 7.6 5.0 3.7 1.8 1.2 1.6 2.3 10.0 -5.6 -1.1 -4.8 4.2 -6.8 -4.3

97.2 91.2 106.8 100.0 101.7 103.1 100.3 96.2 97.6 102.5 106.7 110.8 97.2 97.0 109.2 101.8 101.9 104.3 101.6 98.6 107.5 96.3 106.9 103.3 100.5 89.2 103.5

-2.7 1.6 2.4 -1.5 3.8 1.8 0.7 1.6 -1.7 -2.5 5.1 5.4 0.0 6.4 2.2 1.8 0.2 1.2 1.3 2.5 10.1 -6.0 0.2 -6.8 3.4 -8.0 -5.2

105.4 106.2 107.1 105.7 105.6 103.5 105.2 102.6 101.0 100.8 101.3 97.8 101.6 101.7 101.2 103.7 107.1 103.6 106.9 107.0 103.5 107.3 106.3 106.4 110.9 111.0 111.7

9.4 9.1 10.5 6.7 6.9 3.4 1.8 -1.0 -1.2 -0.9 -0.2 -1.6 -3.6 -4.2 -5.5 -1.9 1.4 0.1 1.6 4.3 2.5 6.4 4.9 8.8 9.2 9.1 10.4

97.4 95.3 103.4 101.4 102.7 104.4 102.1 102.4 102.6 103.5 103.3 112.9 99.6 97.5 105.6 103.1 104.5 106.0 103.5 103.9 107.5 102.1 106.5 114.1 103.0 99.4 108.0

2.3 2.4 2.5 2.1 3.3 4.5 2.8 3.9 2.3 1.5 2.3 1.7 2.3 2.3 2.1 1.7 1.8 1.5 1.4 1.5 4.8 -1.4 3.1 1.1 3.4 1.9 2.3

2017 I Ⅱ Ⅲ Ⅳ

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

Economic Bulletin

Statistical Appendices

3. Production capacity and operation ratio (constant prices, 2015=100)

Period

Production capacity index* (2010=100)

Operation ratio index* (2010=100)

y-o-y change (%)

Capacity utilization rate* (%)

2015 2016 2017 2015 Ⅰ Ⅱ Ⅲ Ⅳ 2016 Ⅰ Ⅱ Ⅲ Ⅳ 2017 Ⅰ Ⅱ Ⅲ Ⅳ 2018 Ⅰp

100.0 102.8 103.9 99.3 99.6 100.1 101.0 101.2 102.0 103.4 104.4 103.4 103.7 104.1 104.3 103.0

0.9 2.8 1.1 0.8 1.0 0.7 1.2 1.9 2.4 3.3 3.4 2.2 1.7 0.7 -0.1 -0.4

100.0 98.2 97.1 96.8 101.3 98.4 103.5 95.8 100.3 95.5 101.4 95.9 98.3 98.1 96.0 92.7

-2.0 -1.8 -1.1 -3.7 -3.3 -0.6 -0.2 -1.0 -1.0 -2.9 -2.0 0.1 -2.0 2.7 -5.3 -3.3

74.4 72.9 72.6 74.1 73.6 75.5 74.5 73.4 72.8 72.1 73.5 73.5 72.0 73.0 71.8 71.0

2016 1 2 3 4 5 6 7 8 9 10p 11p 12 2017 1 2 3 4 5 6 7 8 9 10 11 12 2018 1 2p 3p

101.0 101.0 101.7 101.7 101.9 102.3 103.0 103.3 103.9 104.3 104.4 104.6 103.4 103.2 103.5 103.6 103.8 103.7 103.9 104.0 104.5 104.5 104.4 104.1 103.2 103.3 102.4

1.9 1.7 2.2 2.2 2.3 2.5 3.0 3.3 3.6 3.6 3.3 3.5 2.4 2.2 1.8 1.9 1.9 1.4 0.9 0.7 0.6 0.2 0.0 -0.5 -0.2 0.1 -1.1

95.8 88.9 102.6 97.7 101.1 102.0 99.6 93.2 93.6 99.0 103.0 102.3 92.7 91.7 103.3 97.0 98.4 99.6 98.3 94.1 101.9 92.0 100.2 95.8 95.0 84.1 98.9

-3.3 0.9 -0.5 -4.5 2.5 -0.9 -1.5 -1.2 -6.3 -6.2 1.2 -1.0 -3.2 3.1 0.7 -0.7 -2.7 -2.4 -1.3 1.0 8.9 -7.1 -2.7 -6.4 2.5 -8.3 -4.3

72.4 74.9 72.8 72.1 74.6 73.6 73.7 72.5 72.3 70.3 73.7 72.4 74.9 72.3 73.4 71.7 72.6 71.8 72.7 73.5 72.7 73.3 71.7 70.3 70.6 72.1 70.3

* Manufacturing industry p: Preliminary Source: Statistics Korea

May 2018

4. Consumer goods sales index (constant prices, 2015=100)

Total

Period 2015 2016 2017 2015 2016 2017

Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ 2018 Ⅰp 2016 1 2 3 4 5 6 7 8 9 10 11 12 2017 1 2 3 4 5 6 7 8 9 10 11 12 2018 1 2p 3p p: Preliminary Source: Statistics Korea

y-o-y change (%)

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

y-o-y change (%)

Nondurable goods

y-o-y change (%)

100.0 103.9 105.9 95.4 98.8 98.6 107.2 99.9 104.3 101.7 109.6 101.5 105.3 105.0 111.9 106.6

4.1 3.9 1.9 2.7 4.0 3.4 6.2 4.7 5.6 3.1 2.2 1.6 1.0 3.2 2.1 5.0

100.0 104.6 110.2 93.2 97.6 98.4 110.9 99.4 108.8 99.2 111.2 102.8 112.9 111.1 113.8 111.9

10.1 4.6 5.4 7.2 8.8 7.7 16.4 6.7 11.5 0.8 0.3 3.4 3.8 12.0 2.3 8.9

100.0 102.3 101.2 94.5 99.2 88.6 117.6 96.4 103.4 91.5 117.7 94.7 101.0 90.8 118.4 99.2

-1.2 2.3 -1.1 -1.7 -1.3 -4.0 1.6 2.0 4.2 3.3 0.1 -1.8 -2.3 -0.8 0.6 4.8

100.0 104.2 106.0 96.9 99.2 103.1 100.9 101.7 102.5 107.4 105.2 103.9 103.6 108.4 108.1 107.4

3.2 4.2 1.7 2.0 3.4 4.2 3.1 5.0 3.3 4.2 4.3 2.2 1.1 0.9 2.8 3.4

99.6 95.6 104.5 102.1 107.3 103.4 102.1 100.8 102.2 108.4 109.1 111.2 103.5 95.4 105.5 104.0 107.7 104.2 104.7 101.0 109.3 107.9 114.9 112.8 105.2 101.7 112.9

5.7 2.9 5.3 3.4 4.6 8.8 4.3 5.4 0.0 2.0 2.6 2.0 3.9 -0.2 1.0 1.9 0.4 0.8 2.5 0.2 6.9 -0.5 5.3 1.4 1.6 6.6 7.0

92.9 92.8 112.5 103.3 108.4 114.7 103.5 100.9 93.2 107.3 110.6 115.6 94.7 100.0 113.7 108.5 114.2 115.9 115.0 107.0 111.4 104.0 122.8 114.6 110.0 101.3 124.4

-1.4 7.7 13.3 8.2 12.3 13.9 0.2 5.5 -3.1 0.7 1.6 -1.3 1.9 7.8 1.1 5.0 5.4 1.0 11.1 6.0 19.5 -3.1 11.0 -0.9 16.2 1.3 9.4

97.3 89.3 102.6 104.9 110.5 94.8 94.1 85.1 95.4 118.2 119.9 115.0 96.3 88.4 99.3 105.5 104.9 92.6 91.6 83.4 97.5 113.7 124.6 117.0 94.5 91.8 111.2

3.2 0.9 1.8 1.4 0.7 12.2 7.5 1.1 1.3 0.5 0.1 -0.3 -1.0 -1.0 -3.2 0.6 -5.1 -2.3 -2.7 -2.0 2.2 -3.8 3.9 1.7 -1.9 3.8 12.0

103.7 99.7 101.6 100.3 105.4 101.9 105.0 107.7 109.4 104.6 103.7 107.4 110.9 96.4 104.4 101.2 105.8 103.8 105.7 106.0 113.5 107.2 107.0 110.1 107.7 106.3 108.3

10.2 1.7 3.1 2.2 2.9 5.1 5.0 7.1 0.7 3.5 4.5 4.9 6.9 -3.3 2.8 0.9 0.4 1.9 0.7 -1.6 3.7 2.5 3.2 2.5 -2.9 10.3 3.7

Economic Bulletin

Statistical Appendices

5. Machinery orders received and facility investment index Period

2015 2016 2017 2015 Ⅰ Ⅱ Ⅲ Ⅳ 2016 Ⅰ Ⅱ Ⅲ Ⅳ 2017 Ⅰ Ⅱ Ⅲ Ⅳ 2018 Ⅰp 2016 1 2 3 4 5 6 7 8 9 10 11 12 2017 1 2 3 4 5 6 7 8 9 10 11 12 2018 1 2p 3p

p: Preliminary Source: Statistics Korea

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

25,453 26,643 31,753 6,459 7,032 5,501 6,461 6,398 6,942 5,765 7,538 7,749 8,584 7,568 7,852 7,810 1,662 2,282 2,454 2,006 2,210 2,727 2,030 1,672 2,063 1,825 2,339 3,374 2,144 2,464 3,142 2,777 2,588 3,219 2,799 2,357 2,412 2,351 2,936 2,564 2,621 2,231 2,958

-3.9 4.7 19.2 -2.5 15.2 -28.3 6.3 -0.9 -1.3 4.8 16.7 21.1 23.7 31.3 4.2 0.8 -28.8 22.9 8.2 -27.6 5.2 26.3 1.0 2.5 11.0 -8.7 18.8 35.4 29.0 8.0 28.0 38.5 17.1 18.1 37.9 41.0 16.9 28.9 25.5 -24.0 22.3 -9.4 -5.9

y-o-y change (%)

1,921 2,862 2,239 405 493 399 624 637 575 465 1,184 691 542 461 545 600 71 255 312 188 175 213 47 84 334 63 154 967 122 226 342 241 117 184 296 82 84 167 137 242 269 140 190

-61.7 49.0 -21.8 -66.9 61.6 -85.3 -19.8 57.4 16.8 16.6 89.9 8.4 -5.8 -0.9 -54.0 -13.1 -39.0 80.7 110.8 48.7 -11.3 25.6 -64.6 -47.3 214.8 -35.2 -32.6 224.7 72.5 -11.1 9.8 28.1 -33.1 -13.5 526.3 -3.2 -74.8 162.8 -11.0 -75.0 120.7 -38.1 -44.4

y-o-y change (%)

23,533 23,781 29,514 6,054 6,539 5,101 5,838 5,761 6,367 5,300 6,353 7,058 8,042 7,107 7,307 7,210 1,591 2,027 2,142 1,817 2,035 2,514 1,983 1,588 1,729 1,761 2,186 2,406 2,021 2,237 2,800 2,536 2,471 3,035 2,504 2,276 2,327 2,185 2,799 2,323 2,352 2,091 2,768

9.6 1.1 24.1 12.0 12.7 2.8 10.1 -4.8 -2.6 3.9 8.8 22.5 26.3 34.1 15.0 2.2 -28.3 18.1 1.0 -31.3 6.9 26.3 5.7 7.9 -1.4 -7.4 25.5 9.6 27.0 10.4 30.7 39.5 21.4 20.7 26.3 43.3 34.6 24.0 28.1 -3.5 16.3 -6.5 -1.2

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

change (%)

112.2 110.7 126.3 108.3 113.5 111.6 115.2 100.1 114.2 106.3 122.0 118.3 134.5 128.2 124.4 129.2 97.0 90.7 112.7 111.0 110.6 121.1 105.0 109.8 104.0 109.3 118.8 138.0 107.0 108.5 139.3 127.0 132.8 143.7 131.1 123.5 130.0 105.0 126.8 141.4 130.0 118.7 139.0

6.9 -1.3 14.1 9.2 5.2 10.8 2.0 -7.6 0.6 -4.7 5.9 18.2 17.8 20.6 2.0 9.2 -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 19.6 23.4 14.4 20.1 18.7 24.9 12.5 25.0 -3.9 6.7 2.5 21.5 9.4 -0.2

May 2018

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

Period

Total

Value of construction completed Public Private

y-o-y change (%)

Total

y-o-y change (%)

Domestic construction orders received Public Private

y-o-y change (%)

2015 2016 2017 2015 Ⅰ Ⅱ Ⅲ Ⅳ 2016 Ⅰ Ⅱ Ⅲ Ⅳ 2017 Ⅰ Ⅱ Ⅲ Ⅳ 2018 Ⅰp

102,614 119,971 138,484 21,925 25,735 25,420 29,534 24,533 29,977 29,573 35,889 30,579 35,562 34,841 37,502 32,222

4.2 16.9 15.4 1.1 -1.7 7.7 9.3 11.9 16.5 16.3 21.5 24.6 18.6 17.8 4.5 5.4

31,034 30,916 30,143 6,681 8,286 7,247 8,820 6,710 8,099 7,061 9,046 6,937 8,075 6,880 8,250 6,456

-3.1 -0.4 -2.5 -6.5 -4.9 0.0 -1.0 0.4 -2.3 -2.6 2.6 3.4 -0.3 -2.6 -8.8 -6.9

67,349 83,680 104,666 14,482 16,451 17,164 19,252 16,512 20,494 21,226 25,778 22,598 26,575 27,103 28,390 24,949

7.9 24.2 25.1 5.9 -0.4 11.7 14.2 14.0 24.6 23.7 32.2 36.9 29.7 27.7 11.6 10.4

134,493 145,386 140,844 25,470 35,382 36,494 37,148 28,922 32,790 36,709 46,966 29,273 38,675 32,958 39,938 29,527

48.4 8.1 -3.1 57.8 49.8 50.6 39.6 13.6 -7.3 0.6 26.4 1.2 17.9 -10.2 -15.0 0.9

28,546 33,832 33,468 4,599 8,962 4,899 10,087 7,753 5,565 7,914 12,600 7,290 7,542 6,986 11,650 4,844

8.0 18.5 -1.1 -22.4 36.5 -5.5 15.2 68.6 -37.9 61.5 24.9 -6.0 35.5 -11.7 -7.5 -33.6

103,185 107,748 102,327 20,586 25,902 30,869 25,829 20,458 26,702 26,985 33,603 17,914 30,375 25,830 28,209 20,347

66.1 4.4 -5.0 110.9 55.0 67.9 49.7 -0.6 3.1 -12.6 30.1 -12.4 13.8 -4.3 -16.1 13.6

2016 1 2 3 4 5 6 7 8 9 10 11 12 2017 1 2 3 4 5 6 7 8 9 10 11 12 2018 1 2p 3p

7,509 7,424 9,600 9,027 9,347 11,603 9,545 9,832 10,195 10,473 11,458 13,959 8,986 9,593 12,000 11,229 11,253 13,080 11,204 11,104 12,534 10,829 12,137 14,536 10,693

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 29.2 25.0 24.4 20.4 12.7 17.4 12.9 22.9 3.4 5.9 4.1 19.0

2,045 1,976 2,689 2,317 2,326 3,456 2,256 2,344 2,460 2,348 2,779 3,920 1,970 2,129 2,838 2,302 2,429 3,344 2,233 2,075 2,572 2,175 2,456 3,619 1,929

-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 7.7 5.5 -0.7 4.4 -3.2 -1.0 -11.5 4.6 -7.3 -11.6 -7.7 -2.1

5,144 5,086 6,282 6,299 6,611 7,585 6,914 7,109 7,203 7,692 8,224 9,532 6,682 7,186 8,730 8,639 8,542 9,394 8,709 8,780 9,614 8,409 9,393 10,587 8,517

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 41.3 39.0 37.2 29.2 23.9 26.0 23.5 33.5 9.3 14.2 11.1 27.5

7,335 9,994 11,593 10,848 9,658 12,284 12,006 13,329 11,374 14,793 12,624 19,548 8,527 12,350 8,397 14,647 11,450 12,578 8,470 12,745 11,743 8,258 11,129 20,551 11,885

-2.5 84.0 -7.4 19.2 -23.6 -9.9 38.3 52.0 -40.3 42.4 -4.7 44.6 16.3 23.6 -27.6 35.0 18.6 2.4 -29.4 -4.4 3.2 -44.2 -11.8 5.1 39.4

2,687 2,354 2,712 1,185 2,127 2,254 2,626 3,362 1,925 3,209 2,792 6,600 2,246 3,091 1,953 2,122 1,486 3,934 1,811 3,031 2,144 905 2,306 8,438 1,325

102.9 106.4 27.1 -53.9 -10.2 -44.0 46.6 75.1 62.2 78.0 -14.5 31.5 -16.4 31.3 -28.0 79.1 -30.1 74.6 -31.0 -9.8 11.4 -71.8 -17.4 27.9 -41.0

4,371 7,559 8,528 9,295 7,412 9,995 8,513 9,464 9,008 11,509 9,729 12,365 6,277 5,912 5,725 11,915 9,906 8,554 6,638 9,701 9,491 7,330 8,805 12,075 6,339

-28.1 79.5 -17.2 43.6 -27.1 8.0 25.0 44.7 -48.6 34.1 3.3 58.0 43.6 -21.8 -32.9 28.2 33.6 -14.4 -22.0 2.5 5.4 -36.3 -9.5 -2.4 1.0

9,857 11,673

2.7 -2.7

1,905 2,621

-10.5 -7.6

7,751 8,681

7.9 -0.6

7,945 9,697

-35.7 15.5

2,271 1,248

-26.5 -36.1

5,658 8,349

-4.3 45.8

p: Preliminary Source: Statistics Korea

Economic Bulletin

Statistical Appendices

7. Composite indices of business cycle indicators, CSI and BSI Cyclical indicator of coincident index (2015=100)

CSI1

98.4

99.9

99.0

100.2

100.7

99.1

99.0

100.7

99.6

Period

Leading index (2015=100)

Cyclical indicator of leading index (2015=100)

Coincident index (2015=100)

2015 1

97.8

100.6

98.2

100.6

98.6

BOK BSI2 Results

Prospects

102.1

102.8

100.1

101.0

99.4

100.1

103.6

100.9

99.2

99.7

104.9

99.9

100.8

99.3

99.5

98.0

100.2

100.7

99.6

99.5

99.9

100.5

100.6

100.1

99.8

101.2

101.0

100.8

100.9

100.3

102.3

101.5

100.8

101.6

100.7

104.7

101.8

100.7

101.6

100.5

105.4

101.9

100.5

101.9

100.4

102.2

2016 1

102.0

100.1

101.8

100.1

99.7

102.0

99.7

101.9

99.9

97.5

102.2

99.6

102.0

99.8

99.6

102.6

99.6

102.3

99.7

101.2

103.0

99.6

102.7

99.9

98.8

103.3

99.5

103.2

100.1

98.4

103.7

99.6

103.7

100.3

100.6

104.3

99.8

104.0

100.3

101.5

104.9

100.0

104.0

100.1

101.4

105.4

100.1

104.1

99.9

101.7

105.7

100.1

104.5

100.0

95.3

106.3

100.2

105.0

100.2

93.6

2017 1

106.8

100.3

105.6

100.5

92.8

107.3

100.4

105.8

100.5

93.9

107.7

100.4

106.3

100.7

96.3

108.2

100.6

106.6

100.7

100.8

108.8

100.8

106.9

100.7

107.7

109.5

101.0

107.0

100.6

110.8

110.0

101.2

107.2

100.5

110.9

110.4

101.1

107.4

100.4

109.6

110.5

100.9

107.7

100.4

107.4

110.8

100.8

107.7

100.2

108.9

111.1

100.7

108.0

100.2

112.0

111.4

100.7

107.9

99.8

110.6

2018 1p

112.0

100.8

108.2

99.8

109.9

112.2 112.3

100.6 100.4

108.5 108.7

99.8 99.8

108.2 108.1

77 72

80 79

107.1

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

May 2018

8. Prices

Period 2015 2016 2017 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 11 12 2018 1 2 3 4

All items

y-o-y change (%)

100.0 101.0 102.9 99.8 99.7 99.7 99.8 100.0 100.1 100.2 100.4 100.1 100.1 99.9 100.2 100.4 100.8 100.6 100.8 100.8 100.8 100.6 100.9 101.5 101.6 101.5 101.6 102.4 102.8 102.8 102.7 102.8 102.7 102.9 103.5 103.6 103.4 102.7 103.0 103.5 104.3 104.2 104.3

Source: Bank of Korea

0.7 1.0 1.9 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 1.3 1.5 1.0 1.4 1.3 1.6

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

100.0 99.4 101.3 100.6 100.4 100.1 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 98.5 100.0 100.3 100.1 100.1 101.1 101.6 101.5 100.8 101.0 100.9 100.8 102.0 102.5 101.8 100.6 101.1 101.5 102.7 102.3 102.4

-0.7 -0.6 1.9 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 0.5 1.0 0.5 1.1 0.9 1.6

Core

y-o-y change (%)

100.0 102.3 104.3 99.1 99.2 99.4 99.7 99.8 99.8 100.4 100.6 100.4 100.6 100.5 100.7 101.3 101.6 101.8 101.9 102.2 102.2 102.6 102.8 102.6 102.7 102.6 102.8 103.5 103.7 103.9 104.1 104.2 104.1 104.5 104.7 104.5 104.7 104.4 104.6 105.0 105.5 105.6 105.8

1.8 2.3 2.0 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 1.8 1.8 1.4 1.7 1.7 1.6

y-o-y change (%)

100.0 101.6 103.1 99.4 99.5 99.6 99.6 99.9 99.9 100.2 100.3 100.2 100.4 100.4 100.6 101.0 101.2 101.3 101.5 101.7 101.8 101.5 101.6 101.7 102.1 102.0 101.9 102.5 102.7 102.8 102.8 103.1 103.2 103.3 103.4 103.3 103.5 103.2 103.4 103.6 104.0 104.1 104.3

2.2 1.6 1.5 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 1.2 1.5 1.1 1.2 1.3 1.4

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

101.0 99.1 102.5 101.9 101.9 101.8 101.8 101.8 101.8 101.4 100.8 100.3 99.7 99.3 99.0 98.5 98.5 98.4 98.7 98.8 99.0 98.9 99.0 99.2 99.5 100.0 100.9 102.3 102.7 102.7 102.4 102.2 101.8 101.9 102.3 103.0 103.1 103.0 103.1 103.6 104.0 104.0 104.1

-4.0 -1.8 3.5 -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 3.6 3.1 2.2 1.2 1.3 1.3 1.6

y-o-y change (%)

98.0 94.6 99.0 99.7 99.7 99.5 99.3 99.3 99.3 98.6 97.7 97.0 96.0 95.3 95.0 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 99.6 99.4 99.5 99.9 100.5 100.5 100.5

-6.4 -3.4 4.6 -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 4.8 3.9 2.5 0.9 1.0 1.1 1.6

Economic Bulletin

Statistical Appendices

9. Employment (I) Period 2015 2016 2017 2015 Ⅰ Ⅱ Ⅲ Ⅳ 2016 Ⅰ Ⅱ Ⅲ Ⅳ 2017 Ⅰ Ⅱ Ⅲ Ⅳ 2018 Ⅰ 2016 1 2 3 4 5 6 7 8 9 10 11 12 2017 1 2 3 4 5 6 7 8 9 10 11 12 2018 1 2 3 4

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

Economically active persons (thousands)

y-o-y change

Economically inactive persons (thousands)

y-o-y change

27,153 27,418 27,748 26,630 27,382 27,395 27,207 26,896 27,578 27,702 27,497 27,262 27,993 27,961 27,775 27,464

318 265 329 390 310 283 288 266 197 308 289 366 414 259 278 202

16,086 16,187 16,183 16,449 15,813 15,902 16,180 16,576 15,991 15,950 16,233 16,556 15,906 16,006 16,263 16,624

127 102 -5 76 144 154 132 127 178 48 53 -20 -85 56 30 68

62.8 62.9 63.2 61.8 63.4 63.3 62.7 61.9 63.3 63.5 62.9 62.2 63.8 63.6 63.1 62.3

60.5 60.6 60.8 59.3 61.0 61.1 60.8 59.2 60.9 61.2 60.9 59.6 61.3 61.4 61.0 59.6

3.6 3.7 3.7 4.1 3.8 3.4 3.1 4.3 3.7 3.5 3.2 4.3 3.8 3.4 3.2 4.3

26,631 26,925 27,133 27,398 27,617 27,720 27,737 27,690 27,679 27,666 27,613 27,211 26,886 27,321 27,579 27,911 27,987 28,081 28,037 27,903 27,943 27,920 27,889 27,516 27,232 27,348 27,811 28,029

251 254 293 195 164 233 202 396 325 307 315 246 255 396 446 513 370 360 299 214 263 254 276 305 346 27 232 117

16,808 16,546 16,373 16,138 15,955 15,880 15,889 15,962 15,998 16,038 16,117 16,544 16,904 16,497 16,267 15,960 15,916 15,844 15,909 16,064 16,044 16,095 16,151 16,543 16,840 16,744 16,289 16,093

148 136 96 186 213 136 159 -40 25 40 29 91 96 -49 -107 -179 -39 -36 20 102 45 57 34 -1 -64 247 22 134

61.3 61.9 62.4 62.9 63.4 63.6 63.6 63.4 63.4 63.3 63.1 62.2 61.4 62.4 62.9 63.6 63.7 63.9 63.8 63.5 63.5 63.4 63.3 62.5 61.8 62.0 63.1 63.5

59.0 58.9 59.7 60.5 61.1 61.3 61.3 61.2 61.1 61.2 61.2 60.2 59.1 59.3 60.3 61.0 61.5 61.5 61.6 61.2 61.4 61.4 61.4 60.4 59.5 59.2 60.2 60.9

3.7 4.9 4.2 3.9 3.6 3.6 3.5 3.6 3.5 3.3 3.1 3.2 3.7 4.9 4.1 4.2 3.6 3.8 3.4 3.6 3.3 3.2 3.1 3.3 3.7 4.6 4.5 4.1

Source: Statistics Korea

Unemployment rate (%)

May 2018

10. Employment (II) Period

Employed persons (thousands) All industry

y-o-y change

Manufacturing

y-o-y change

SOC & services

y-o-y change

26,178 26,409 26,725 25,543 26,341 26,465 26,362 25,747 26,552 26,719 26,618 26,100 26,919 26,998 26,883 26,283 25,646 25,615 25,980 26,325 26,613 26,718 26,765 26,696 26,697 26,746 26,762 26,347 25,878 25,979 26,443 26,744 26,992 27,020 27,078 26,904 27,011 27,026 27,019 26,604 26,213 26,083 26,555 26,868

281 231 316 333 250 239 300 204 211 255 256 353 367 279 265 183 254 145 214 172 182 278 227 327 209 227 293 249 232 364 463 420 379 302 314 208 314 281 257 257 334 104 112 123

4,604 4,584 4,566 4,538 4,584 4,632 4,664 4,650 4,599 4,540 4,545 4,530 4,579 4,570 4,586 4,575 4,673 4,648 4,630 4,601 4,608 4,588 4,564 4,519 4,538 4,547 4,549 4,541 4,503 4,549 4,539 4,542 4,586 4,608 4,611 4,544 4,555 4,560 4,581 4,618 4,609 4,562 4,554 4,473

146 -21 -18 130 128 162 164 113 15 -92 -119 -120 -21 30 41 45 127 99 111 23 28 -6 -85 -97 -94 -125 -112 -120 -170 -99 -91 -60 -22 20 47 25 17 14 32 77 106 14 15 -68

20,222 20,534 20,857 19,907 20,247 20,334 20,402 20,051 20,530 20,763 20,792 20,546 20,913 20,986 20,986 20,630 20,056 19,984 20,113 20,350 20,566 20,674 20,797 20,759 20,733 20,759 20,841 20,775 20,462 20,453 20,721 20,842 20,963 20,933 21,037 20,922 20,999 21,008 21,061 20,888 20,596 20,503 20,792 20,979

243 312 323 293 250 188 240 144 283 429 390 494 383 223 194 85 199 104 129 210 255 385 425 493 370 399 377 393 406 469 608 492 396 260 240 162 266 249 220 113 134 49 71 137

2015 2016 2017 2015 Ⅰ Ⅱ Ⅲ Ⅳ 2016 Ⅰ Ⅱ Ⅲ Ⅳ 2017 Ⅰ Ⅱ Ⅲ Ⅳ 2018 Ⅰ 2016 1 2 3 4 5 6 7 8 9 10 11 12 2017 1 2 3 4 5 6 7 8 9 10 11 12 2018 1 2 3 4 Source: Statistics Korea

Economic Bulletin

Statistical Appendices

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

Current account

Goods

2015 2016 2017p 2015 Ⅰ Ⅱ Ⅲ Ⅳ 2016 Ⅰ Ⅱ Ⅲ Ⅳ

105,939.6 99,243.0 78,460.2 23,222.0 26,951.4 28,246.3 27,519.9 26,961.1 27,040.2 22,563.8 22,677.9

2017p Ⅰ Ⅱ Ⅲ Ⅳ

19,203.3 16,451.5 25,570.0 17,235.4 11,825.3 7,619.3 7,983.6 11,358.2 4,262.0 10,516.0 12,262.2 8,829.3 5,666.0 8,068.5 7,694.9 8,028.0 6,955.0 5,299.8 8,181.8 5,721.7 3,670.0 5,841.7 6,939.8 7,249.7 6,032.8 12,287.5 5,715.5 7,427.6 4,092.3 2,680.4 3,964.5 5,180.4

Period

2018p Ⅰ 2016 1 2 3 4 5 6 7 8 9 10 11 12 2017p 1 2 3 4 5 6 7 8 9 10 11 12 2018p 1 2 3 p: Preliminary Source: Bank of Korea

Services

Primary income

Secondary income

420,612.0 393,051.9 457,492.7 106,911.2 108,418.6 102,230.9 103,051.3 88,774.7 94,399.9 100,430.1 109,447.2

-14,916.8 -17,737.4 -34,472.2 -4,111.1 -3,037.3 -3,736.1 -4,032.3 -3,658.5 -4,204.5 -5,549.4 -4,325.0

3,572.4 3,851.7 122.0 4,067.5 -2,479.2 1,515.2 468.9 1,381.7 -717.5 2,324.6 862.9

-4,985.2 -5,766.7 -7,078.3 -1,250.5 -1,199.8 -852.0 -1,682.9 -971.2 -1,212.6 -2,395.4 -1,187.5

112,009.9 113,551.6 114,112.5 117,818.7 125,826.4 28,858.0 28,255.3 31,661.4 30,354.7 31,663.4 32,381.8 31,933.8 34,757.1 33,739.2 33,922.2 36,568.5 38,956.5 36,800.5 34,406.0 40,803.4 36,592.5 38,360.1 38,599.0 36,513.7 38,502.9 39,095.9 35,832.4 40,019.4 41,966.9 43,960.9 38,956.6 42,899.9

-8,662.7 -6,748.6 -8,497.5 -10,563.4 -9,409.9 -1,619.8 -1,164.6 -874.1 -1,730.5 -1,161.3 -1,312.7 -1,461.2 -1,475.8 -2,612.4 -1,785.6 -1,813.9 -725.5 -3,340.7 -2,210.3 -3,111.7 -2,417.2 -1,638.7 -2,692.7 -3,285.3 -2,334.6 -2,877.6 -3,531.3 -3,266.1 -3,766.0 -4,494.1 -2,663.9 -2,251.9

1,374.8 -4,876.8 1,946.9 1,677.1 385.4 1,264.2 871.4 -753.9 -3,593.3 1,358.1 1,517.7 266.1 1,034.0 1,024.5 707.1 366.3 -210.5 1,176.5 718.9 -520.6 -4,924.3 -595.7 643.2 676.0 22.6 1,248.3 1,168.1 -72.2 581.2 678.5 1,281.9 -1,575.0

-815.8 -1,484.2 -2,629.7 -2,148.6 -3,062.6 -457.8 20.6 -534.0 -522.8 -146.9 -542.9 -625.6 -950.8 -819.0 -391.2 -214.6 -581.7 -267.1 -547.0 -1.7 -530.6 -519.8 -433.8 -728.4 -839.5 -1,061.8 -518.7 -695.1 -934.8 -1,612.8 -581.4 -868.4

Exports

Imports

122,269.2 118,895.4 119,888.7 24,516.1 33,667.7 31,319.2 32,766.2 30,209.1 33,174.8 28,184.0 27,327.5

542,811.2 511,947.3 577,381.4 131,427.3 142,086.3 133,550.1 135,817.5 118,983.8 127,574.7 128,614.1 136,774.7

27,307.0 29,561.1 34,750.3 28,270.3 23,912.4 8,432.7 8,256.2 13,520.2 10,108.6 10,466.1 12,600.1 10,650.0 7,058.6 10,475.4 9,164.6 9,690.2 8,472.7 7,731.1 10,220.2 9,355.7 11,542.1 8,595.9 9,423.1 10,587.4 9,184.3 14,978.6 8,597.4 11,461.0 8,211.9 8,108.8 5,927.9 9,875.7

139,316.9 143,112.7 148,862.8 146,089.0 149,738.8 37,290.7 36,511.5 45,181.6 40,463.3 42,129.5 44,981.9 42,583.8 41,815.7 44,214.6 43,086.8 46,258.7 47,429.2 44,531.6 44,626.2 50,159.1 48,134.6 46,956.0 48,022.1 47,101.1 47,687.2 54,074.5 44,429.8 51,480.4 50,178.8 52,069.7 44,893.5 52,775.6

May 2018

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

Capital account

Financial account*

Direct investment

Portfolio investment

Financial derivatives

Other investment

Reserve assets

2017p Ⅰ Ⅱ Ⅲ Ⅳ 2018p Ⅰ

106,299.2 102,566.8 87,100.4 22,974.3 25,857.1 29,806.1 27,661.7 29,486.0 23,327.5 24,822.1 24,931.2 19,741.1 13,043.4 30,844.5 23,471.4 12,545.0

19,656.3 17,856.7 14,623.0 4,328.8 6,256.2 3,695.1 5,376.2 5,704.8 4,507.8 1,847.5 5,796.6 6,881.2 3,476.4 4,428.9 -163.5 1,984.8

49,529.8 66,970.2 57,847.4 7,743.0 7,111.1 15,559.7 19,116.0 16,794.1 13,981.8 15,865.5 20,328.8 8,011.4 11,516.2 23,972.0 14,347.8 12,858.3

1,791.3 -3,440.1 -8,253.3 -726.3 -759.5 4,731.1 -1,454.0 2,724.0 -1,185.3 -3,799.5 -1,179.3 -2,951.0 -2,066.8 -350.9 -2,884.6 -3,607.1

23,269.2 13,564.8 18,523.3 4,518.7 5,947.4 10,106.9 2,696.2 5,596.8 5,103.8 3,949.4 -1,085.2 7,063.2 -96.6 2,945.8 8,610.9 -1,478.8

12,052.6 7,615.2 4,360.0 7,110.1 7,301.9 -4,286.7 1,927.3 -1,333.7 919.4 6,959.2 1,070.3 736.3 214.2 -151.3 3,560.8 2,787.8

-60.2 -46.2 -31.3 -22.0 -25.6 -26.2 13.6 -8.1 -7.0 13.9 -45.0 36.4 -60.3 -7.7 0.3 -21.3

2016 1 2 3 4 5 6 7 8 9 10 11 12 2017p 1 2 3 4 5 6 7 8 9 10 11 12 2018p 1 2 3

7,326.7 9,715.9 12,443.4 1,814.8 9,908.3 11,604.4 8,811.4 6,960.3 9,050.4 8,359.1 8,505.8 8,066.3 5,067.0 8,880.5 5,793.6 1,471.6 2,642.6 8,929.2 9,442.0 8,990.9 12,411.6 8,436.4 10,438.0 6,347.0 4,112.7 4,213.1 4,219.2

208.1 2,187.2 3,309.5 814.0 1,450.2 2,243.6 719.7 -291.7 1,419.5 1,144.8 62.6 4,589.2 3,270.3 4,344.1 -733.2 1,500.3 685.3 1,290.8 460.0 1,622.4 2,346.5 72.6 -70.6 -165.5 138.6 325.3 1,520.9

5,412.9 5,749.6 5,631.6 3,277.6 4,546.1 6,158.1 145.0 7,111.8 8,608.7 9,921.6 7,011.4 3,395.8 4,917.9 809.9 2,283.6 2,810.3 5,660.3 3,045.6 2,693.6 11,330.5 9,947.9 -173.2 2,101.7 12,419.3 3,490.7 9,168.4 199.2

1,227.8 756.6 739.6 -1,043.5 -463.7 321.9 -471.9 -1,292.4 -2,035.2 -739.5 83.0 -522.8 -146.9 -1,593.2 -1,210.9 -912.4 -413.3 -741.1 -79.2 -161.3 -110.4 -555.6 -877.1 -1,451.9 -1,285.9 -857.4 -1,463.8

117.7 2,613.5 2,865.6 -2,549.9 3,974.0 3,679.7 6,451.8 -1,656.4 -846.0 -2,188.1 1,865.9 -763.0 -3,232.5 5,471.3 4,824.4 -1,755.7 -3,368.2 5,027.3 6,238.7 -4,147.6 854.7 7,665.6 7,914.5 -5,219.2 329.0 -4,582.9 2,775.1

360.2 -1,591.0 -102.9 1,316.6 401.7 -798.9 1,966.8 3,089.0 1,903.4 220.3 -517.1 1,367.1 258.2 -151.6 629.7 -170.9 78.5 306.6 128.9 346.9 -627.1 1,427.0 1,369.5 764.3 1,440.3 159.7 1,187.8

-2.6 -2.3 -3.2 -5.0 1.0 -3.0 5.8 17.2 -9.1 -6.3 -35.0 -3.7 40.1 -2.0 -1.7 -26.2 -2.0 -32.1 15.3 -21.8 -1.2 -7.4 38.8 -31.1 -6.5 -13.4 -1.4

Period 2015 2016 2017p 2015 Ⅰ Ⅱ Ⅲ Ⅳ 2016 Ⅰ Ⅱ Ⅲ Ⅳ

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

Economic Bulletin

Statistical Appendices

13. Financial indicators (period average)

Yields (%) Period 2014 7 8 9 10 11 12 2015 1 2 3 4 5 6 7 8 9 10 11 12 2016 1 2 3 4 5 6 7 8 9 10 11 12 2017 1 2 3 4 5 6 7 8 9 10 11 12 2018 1 2 3 4 Source: Bank of Korea

Call rate (1 day)

CDs (91 days)

Treasury bonds (3 years)

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 1.3 1.5 1.5 1.5 1.5 1.5

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 1.5 1.7 1.7 1.7 1.7 1.7

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 2.2 2.1 2.2 2.3 2.3 2.2

Stock Treasury bonds (5 years)

Corporate bonds (3 years, AA-)

KOSPI (end-period)

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 2.4 2.3 2.4 2.5 2.5 2.4

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 2.7 2.6 2.7 2.8 2.8 2.8

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 2,476.37 2,467.49 2,566.46 2,427.36 2,445.85 2,515.38

May 2018

14. Monetary indicators (period average, billion won)

Reserve money Period 2014 2015 2016 2017 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 11 12 2018 1 2 3

y-o-y change (%)

103,331.5 120,691.4 137,441.5 151,858.1 113,304.2 116,502.4 115,974.9 115,132.7 117,726.3 118,688.2 122,041.0 121,854.4 126,572.2 125,616.2 126,767.1 128,117.5 131,279.3 134,913.0 132,957.9 135,038.9 135,971.3 135,758.4 135,906.7 139,073.9 142,079.6 141,103.5 141,757.2 143,458.7 147,380.8 150,092.9 145,049.0 149,630.1 149,446.2 150,519.7 149,955.1 152,170.5 154,578.6 159,248.2 155,623.3 158,603.1 157,220.1 163,852.7 160,760.7

Source: Bank of Korea

13.1 16.8 13.9 10.5 15.0 15.9 15.3 16.4 15.7 17.0 20.6 13.2 20.1 17.3 18.8 16.3 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 12.9 9.8 10.6 6.7 9.2 10.8

M2 y-o-y change (%)

536,733.4 636,639.0 734,411.8 802,016.5 579,964.2 592,737.4 600,719.9 610,803.3 621,985.5 630,546.3 645,975.4 653,105.9 665,691.1 669,737.7 677,629.2 690,772.4 699,767.3 708,014.0 713,861.2 720,818.5 722,544.4 730,637.8 735,172.2 738,120.9 751,408.5 753,367.3 762,639.7 776,589.6 780,995.5 776,362.5 789,187.8 791,859.3 791,074.8 798,890.2 804,853.4 805,103.3 810,905.0 826,892.1 817,624.5 830,003.7 830,732.8 839,555.2 840,991.0

10.9 18.6 15.4 9.2 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 9.8 7.2 6.9 6.3 8.1 6.6

Lf y-o-y change (%)

2,009,576.3 2,182,911.9 2,342,621.3 2,471,225.6 2,092,223.5 2,109,892.3 2,127,887.8 2,148,114.7 2,166,741.1 2,179,561.1 2,200,510.9 2,218,660.3 2,230,000.7 2,232,432.0 2,242,848.2 2,246,070.1 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 2,504,594.2 2,521,786.3 2,527,641.3 2,551,196.0 2,570,764.6 2,578,361.8

6.6 8.6 7.3 5.5 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 4.7 4.8 4.7 5.5 6.2 5.8

y-o-y change (%)

2,721,502.2 2,986,699.4 3,229,766.4 3,445,645.8 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 3,365,200.1 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 3,501,084.6 3,521,139.1 3,541,553.2 3,573,130.0 3,596,261.3 3,614,934.9

7.0 9.7 8.1 6.7 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 5.9 5.8 6.1 6.4 6.8 6.7

Economic Bulletin

Statistical Appendices

15. Exchange rates (end-period)

US $/\ Period 2014 2015 2016 2017 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 11 12 2018 1 2 3 4 Source: Bank of Korea

100ďżĽ/\

Won

y-o-y change (%)

1,099.2 1,172.0 1,208.5 1,071.4 1,190.8 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 1,082.4 1,071.4 1,071.5 1,071.0 1,066.5 1,076.2

4.2 6.6 3.1 -11.3 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 -7.4 -11.3 -7.5 -5.4 -4.4 -4.8

Euro/\

Won

y-o-y change (%)

Won

y-o-y change (%)

920.1 972.0 1,036.8 949.1 921.4 920.7 920.3 897.2 894.6 917.2 939.3 970.1 996.8 994.1 936.7 972.0 1,017.1 1,083.8 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 1,020.4 994.2 966.5 949.1 985.0 997.3 1,001.5 985.9

-8.4 5.6 6.7 -8.5 -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 -7.0 -8.5 -3.2 -0.7 0.3 -3.0

1,336.5 1,280.5 1,267.6 1,279.3 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 1,282.7 1,279.3 1,329.1 1,310.4 1,312.0 1,304.5

-8.2 -4.2 -1.0 0.9 -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 3.1 0.9 7.2 9.3 10.0 6.2

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

May 2018

ECONOMIC BULLETIN (Republic of Korea)

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