Economicbulletin02 en 0313

ISSN 2287-7266

ECONOMIC BULLETIN (Republic of Korea)

Republic of Korea

Vol.37 No.2 February 2015

conomic u l l e t i n

Vol.37 No.2 February 2015

The Green Book: Current Economic Trends Economic News Briefing Korea Grows 0.4% in Q4 Government to Encourage Employee Stock Ownership Program Corporate Investment Boosting Program Starts February Financial Regulators to Support Fintech

Statistical Appendices

ECONOMIC BULLETIN

(Republic of Korea)

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February 2015

Sejong, 339-012 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 15 Giljae-gil (Bangok-dong) Sejong, 339-007 Republic of Korea Fax. +82 44 550 4941 E-mail. jiyounlee@kdi.re.kr Website. http://eiec.kdi.re.kr

MOSF / KDI

Tel. +82 44 550 4645

02 The Green Book: Current Economic Trends Overview

03

1. External economic situation

04

2. Private consumption

08

3. Facility investment

10

4. Construction investment

13

5. Exports and imports

15

6. Mining and manufacturing production

17

7. Service sector activity

19

8. Employment

21

9. Financial markets

25

9.1 Stock market

25

9.2 Exchange rate

26

9.3 Bond market

27

9.4 Money supply & money market

28

10. Balance of payments

29

11. Prices

32

11.1 Consumer prices

32

11.2 International oil and commodity prices

35

12. Real estate market

37

12.1 Housing market

37

12.2 Land market

39

13. Composite indices of business cycle indicators

contents Editor-in-Chief Kim Joo-Hoon (KDI) An Il-Whan (MOSF) Editorial Board Choi Jae-Hyuk (MOSF) Lee Yong-Soo (KDI) Lee Jae-Yeal (KDI) Coordinators Kim Dae-Hyun (MOSF) Lee Ji-Youn (KDI) Editors David Friedman (MOSF) Jeon A-Ram (MOSF)

41

Vol.37 No.2 / February 2015

44 Economic News Briefing Korea Grows 0.4% in Q4 Government to Encourage Employee Stock Ownership Program Corporate Investment Boosting Program Starts February Government Budget for Software Up 23% in 2015 Financial Regulators to Support Fintech Venture Firms Exceed 30,000 for First Time Korea, China Agree to Work on Eurasia Initiative G20 Agrees to Build Confidence and Reaffirms Effective Policy Coordination Korean FDI Down 1.5% in 2014

49 Statistical Appendices

02

The Green Book : Current Economic Trends

Overview

1. External economic situation

2. Private consumption 3. Facility investment 4. Construction investment 5. Exports and imports 6. Mining and manufacturing production 7. Service sector activity 8. Employment 9. Financial markets 10. Balance of payments 11. Prices 12. Real estate market 13. Composite indices of business cycle indicators

The Green Book: Current Economic Trends

03

ECONOMIC BULLETIN • Feb 2015

OVERVIEW Although inflation remains low, the Korean economy has seen major indicators, such as mining and manufacturing production, retail sales and facility investment, continue to improve and employment keep rising by more than 400,000 jobs.

The economy continued to add jobs in December, adding 422,000 jobs year-on-year, with permanent employment continuing to grow.

Consumer price inflation remained low in January 2015, rising 0.5 month-on-month and 0.8 percent year-on-year, partly due to a continuous fall in international oil prices.

Mining and manufacturing production grew at a faster rate in December from 1.0 percent in the previous month to 3.0 percent as production increased in most industries, particularly automobiles, semiconductors & parts and chemical products, despite weak audio-visual communications equipment.

Service output remained unchanged in December after it fell 0.3 percent the previous month. Retail sales continued to rise from 1.8 percent in the previous month to 2.2 percent backed by strong automobiles, communications devices and clothing sales.

Facility investment continued to increase in December by 1.7 percent after it soared 13.3 percent the previous month helped by strong transportation equipment investment.

Construction completed dropped at a slower rate from 1.3 percent to 0.8 percent backed by an increase in civil engineering works.

The composite index of coincident indicators increased 0.3 points in December, and the composite index of leading indicators rose 0.2 points.

Exports decreased somewhat year-on-year in January from a 3.6 percent rise to a 0.4 percent fall with low oil prices pushing down oil and petrochemical product prices. The trade balance remained in the black in December, posting a surplus of US $5.53 billion.

In January, market interest rates fell while the KOSPI rose. The dollar-won ratio fell and the 100 yen-won ratio rose compared to the previous month.

Both housing prices and Jeonse (lump-sum deposits with no monthly payments) prices continued to increase in January, rising 0.1 percent and 0.3 percent, respectively.

Recovery in domestic consumption has not yet fully taken root despite increasing signs of recovery with related indicators having fluctuated, and the external uncertainties, such as the US rate hike, yen depreciation and high economic anxiety in oil producing countries, warrant close attention.

The Korean government will continue to closely monitor internal and external economic trends, and at the same time will prepare the Korean economy for any potential risks and work to protect domestic markets from external shocks.

The government will continue to implement the Three-year Plan for Economic Innovation and 2015’s economic policies in order to restructure and revitalize the economy by boosting domestic consumption.

04

The Green Book : Current Economic Trends

1. External economic situation The global economic recovery continues to gain momentum, led by the recovery in the US, but downside risks remain as financial market anxieties are arising in oil producing countries and political instability in Greece is leading to increased uncertainties in the eurozone.

International financial market volatility is increasing as the ECB announced sweeping quantitative easing measures while a number of countries have lowered their base rates, including Australia, India and Singapore.

World GDP growth 7.0

(%)

6.0 5.0 4.0 3.0 2.0 1.0 0.0 2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

US The US economy grew 2.6 percent (advanced estimates, annualized q-o-q) in the fourth quarter, a slowdown from the 5.0 percent seen in the third quarter, but growth momentum continues to build backed by strong private consumption.

Business indicators were poor as industrial production fell 0.1 percent month-on-month and the ISM Manufacturing Index fell for the third consecutive month to 53.5 in January.

ISM Manufacturing Index (base=50) 55.6 (May 2014) → 55.7 (Jun) → 56.4 (Jul) → 58.1 (Aug) → 56.1 (Sep) → 57.9 (Oct) → 57.6 (Nov) → 55.1 (Dec) → 53.5 (Jan 2015)

Retail sales fell 0.9 percent month-on-month in December, but consumer sentiment continued to be strong as consumer confidence indicators all increased.

University of Michigan Consumer Sentiment Index (1966=100) 81.9 (May 2014) → 82.5 (Jun) → 81.8 (Jul) → 82.5 (Aug) → 84.6 (Sep) → 86.9 (Oct) → 88.8 (Nov) → 93.6 (Dec) → 98.1 (Jan 2015) Conference Board Consumer Confidence Index (1985=100) 82.2 (May 2014) → 86.4 (Jun) → 90.3 (Jul) → 93.4 (Aug) → 89.0 (Sep) → 94.1 (Oct) → 91.0 (Nov) → 93.1 (Dec) → 102.9 (Jan 2015)

05

ECONOMIC BULLETIN • Feb 2015

US GDP growth and industrial production 10

Sources: US Department of Commerce, Federal Reserve Board

(%)

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

2004.Q1

2005.Q1

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

GDP (q-o-q, annualized rate)

2014.Q1

Industrial production (q-o-q)

Despite housing prices falling for the third consecutive month, new and existing home sales both increased month-on-month owing to a fall in mortgage interest rates.

Case-Shiller Home Price Index (m-o-m, %) 0.9 (Mar 2014) → 1.2 (Apr) → 1.1 (May) → 1.0 (Jun) → 0.6 (Jul) → 0.2 (Aug) → -0.1 (Sep) → -0.1 (Oct) → -0.2 (Nov) New home sales (m-o-m, %) -6.7 (Mar 2014) → 2.5 (Apr) → 10.9 (May) → -10.7 (Jun) → -2.4 (Jul) → 12.3 (Aug) → 1.8 (Sep) → 1.3 (Oct) → -6.7 (Nov) → 11.6 (Dec)

The employment market slightly improved as the economy added more than 200,000 jobs for the 11th consecutive month with nonfarm payrolls increasing by 257,000 in January, and the unemployment rate rose 0.1 percentage points to 5.7 percent as the labor force participation rate rose to 62.9 percent.

Nonfarm payroll increase (m-o-m, thousands) 286 (Jun 2014) → 249 (Jul) → 213 (Aug) → 250 (Sep) → 221 (Oct) → 423 (Nov) → 329 (Dec) → 257 (Jan 2015)

US nonfarm payroll growth and unemployment rate Source: US Department of Labor 800

(%)

(thousands)

600

12 10

400

8

200

0

6

-200

4

-400 -600

2

-800 -1,000

0

2004.1

2005.1

2006.1

2007.1

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

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

Unemployment rate (right)

06

The Green Book : Current Economic Trends

(Percentage change from previous period)

2012 Annual Annual Real GDP² 2.3 2.2 - Personal consumption expenditure 1.8 2.4 - Nonresidential fixed investment 7.2 3.0 - Residential fixed investment 13.5 11.9 Industrial production 3.8 2.9 Retail sales 5.1 4.2 Existing home sales 8.9 8.9 Unemployment rate³ 8.1 7.4 Consumer prices (y-o-y) 2.1 1.5

Q1 2.7 3.6 1.5 7.8 1.0 1.5 0.7 7.7 1.7

2013 Q2 1.8 1.8 1.6 19.0 0.5 0.3 3.5 7.5 1.4

Q3 4.5 2.0 5.5 11.2 0.6 1.0 4.4 7.2 1.5

Q4 3.5 3.7 10.4 -8.5 1.2 0.9 -7.1 7.0 1.2

Q1 -2.1 1.2 1.6 -5.3 1.0 0.2 -6.9 6.7 1.4

Q2 4.6 2.5 9.7 8.8 1.4 2.3 5.7 6.2 2.1

2014¹ Q3 Q4 5.0 2.6 3.2 4.3 8.9 1.9 3.2 4.1 1.0 1.4 1.1 0.4 5.3 -1.0 6.1 5.7 1.8 1.5

2015 Jan 5.7 0.8

Dec -0.1 -0.9 2.4 5.6 1.3

1. Preliminary 2. Annualized rate (%) 3. Seasonally adjusted Sources: US Department of Commerce, Bloomberg

China The Chinese economy grew at a 7.3 percent rate (q-o-q) in the fourth quarter as industrial production and retail sales both slightly improved in December, but inflation continued to slow down and the manufacturing PMI continued to fall. The People’s Bank of China cut financial institutions’ reserve requirement ratio by 0.5 percentage points on February 5 for the first time in two years and eight months.

Manufacturing PMI (base=50) 51.7 (Jul 2014) → 51.1 (Aug) → 51.1 (Sep) → 50.8 (Oct) → 50.3 (Nov) → 50.1 (Dec) → 49.8 (Jan 2015) (Percentage change from same period in previous year)

2012¹ Annual Annual Real GDP 7.7 7.7 Industrial production 10.0 9.7 Fixed asset investment (accumulated) 20.6 19.6 Retail sales 14.3 13.1 Exports 8.3 8.6 Consumer prices² 2.6 2.6 Producer prices² -1.7 -1.9

Q1 7.7 9.5 20.9 12.4 18.9 2.4 -1.7

2013¹ Q2 Q3 7.5 7.8 9.1 10.1 20.1 20.2 13.0 13.3 4.2 4.0 2.4 2.8 -2.7 -1.7

Q4 7.7 10.0 19.6 13.5 7.5 2.9 -1.4

Q1 7.4 8.7 17.6 12.0 -3.5 2.3 -2.0

Q2 7.5 8.9 17.3 12.3 5.0 2.2 -1.5

2014¹ Q3 Q4 7.3 7.3 8.0 7.6 15.7 15.7 11.9 11.7 12.9 8.6 2.0 1.5 -1.3 -2.7

Nov 7.2 15.8 11.7 4.7 1.4 -2.7

Dec 7.9 15.7 11.9 9.7 1.5 -3.3

1. Preliminary 2. Quarterly change: average of monthly change Source: China National Bureau of Statistics

China’s GDP growth and fixed asset investment 18

Source: China National Bureau of Statistics

(%)

(%)

70

16

60

14

50

12

40

10

30

8

20

6

10

4

0

2004.Q1

2005.Q1

GDP (y-o-y, left)

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

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

07

ECONOMIC BULLETIN • Feb 2015

Japan The Japanese economy appears to be improving as exports greatly improved compared to the previous month and industrial production turned positive, despite continuing poor consumer consumption in December.

The Japanese government announced on December 27, 2014 an emergency stimulus package worth 3.5 trillion yen focusing on households, SMEs, and local economies in order to promote economic recovery.

(Percentage change from previous period)

2012¹ Annual Annual

Q1

2013¹ Q2

Q3

Q4

Q1

Q2

2014¹ Q3 Q4

Nov

Dec

Real GDP

1.8

1.6

1.5

0.7

0.4

-0.4

1.4

-1.7

-0.5

-

-

-

Industrial production

0.2

-0.6

0.5

1.6

1.7

1.8

3.0

-3.8

-1.9

1.7

-0.6

1.0

Retail sales

1.5

1.2

0.7

0.7

0.3

1.4

3.9

-7.0

3.5

0.8

-0.3

-0.3

Exports (y-o-y)

-2.6

9.7

1.5

7.1

12.8

17.4

6.6

0.1

3.2

9.2

4.9

12.8

Consumer prices (y-o-y)

-0.0

0.4

-0.6

-0.3

0.9

1.4

1.5

3.6

3.3

2.6

2.4

2.4

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

Japan’s GDP growth and industrial production 6

Source: Japan's Cabinet Office, Ministry of Economy, Trade and Industry

(%)

(%)

4

25 20 15 10

2

5 0

0

-5 -2

-10 -15

-4

-20 -6

-25

2004.Q1

2005.Q1

2006.Q1

GDP (q-o-q, left)

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

Industrial production (q-o-q, right)

Eurozone Eurozone growth momentum remains weak while political instability in Greece is fueling uncertainties and prices continue to fall (down 0.6% in January), leading to increasing worries of deflation. The ECB strongly responded to Greece’s debt swap plan by canceling its acceptance of Greek government bonds in return for funding.

Manufacturing PMI (base=50) 52.2 (May 2014) → 51.8 (Jun) → 51.8 (Jul) → 50.7 (Aug) → 50.3 (Sep) → 50.6 (Oct) → 50.1 (Nov) → 50.6 (Dec) → 51.0 (Jan 2015)

08

The Green Book : Current Economic Trends

(Percentage change from previous period)

2012 Annual

Annual

Real GDP

-0.7

-0.4

-0.4

Industrial production

-2.5

-0.7

0.3

Retail sales

-1.7

-0.8

Exports (y-o-y)

7.6

1.0

Consumer prices (y-o-y)

2.5

1.4

Q1

2013 Q2

2014¹ Q3

Q4

Dec

2015¹ Jan

0.2

-

-

-

-0.4

-

-

-

0.3

-

-

-

-0.2

-0.6

Q3

Q4

Q1

Q2

0.3

0.2

0.2

0.3

0.1

0.6

0.0

0.6

0.2

0.0

0.1

0.1

0.5

-0.3

0.6

0.4

0.1

0.8

1.0

1.7

0.2

1.0

1.2

0.7

2.9

-

1.9

1.4

1.3

0.8

0.7

0.6

0.4

0.2

1. Preliminary Sources: Eurostat, Bloomberg

Eurozone’s GDP growth and industrial production 3

Source: Eurostat

(%)

10

(%)

8

2

6 4

1

2 0

0

-2 -1

-4 -6

-2

-8 -10

-3 2004.Q1

2005.Q1

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

GDP (q-o-q, left)

2013.Q1

2014.Q1

Industrial production (q-o-q, right)

2. Private consumption Private consumption in the fourth quarter of 2014 rose 0.5 percent (advanced estimates of GDP) compared to the previous quarter and 1.4 percent compared to a year ago.

(Percentage change from previous period)

2012 Q3

Q4

Annual

Q1

2013¹ Q2

Q3

Q4 Annual Q1

2014¹ Q2

Q3

Q4

1.9

1.2

0.4

2.0

-0.1

0.7

1.0

0.6

1.7

0.2

-0.3

1.0

0.5

-

2.6

2.7

-

1.7

2.1

2.1

2.2

-

2.5

1.5

1.5

1.4

Annual Private consumption² (y-o-y)

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

Retail sales in December rose 2.2 percent compared to the previous month and 4.5 percent compared to a year ago as sales of semi-durable goods (up 5.9%), such as clothing, and durable goods (up 3.2%), such as mobile devices and computers, both increased.

09

ECONOMIC BULLETIN • Feb 2015

Private consumption 12

Source: The Bank of Korea (national accounts)

(%)

10 8 6 4 2 0 -2 -4 -6 2004.Q1

2005.Q1

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

Private consumption (q-o-q)

Retail sales 20

2013.Q1

2014.Q1

Private consumption (y-o-y)

Source: Statistics Korea (industrial activity trends)

(%)

15 10 5 0 -5 -10 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

Retail sales (m-o-m)

Retail sales (y-o-y)

Retail sales by type 50

2014.1

Source: Statistics Korea (industrial activity trends)

(y-o-y, %)

40 30 20 10 0 -10 -20 -30 2004.1

2005.1

Durable goods

2006.1

2007.1

2008.1

2009.1

2010.1

Semi-durable goods

2011.1

2012.1

2013.1

2014.1

Nondurable goods

10

The Green Book : Current Economic Trends

(Percentage change from previous period)

2012 2013 Annual Annual Q3

Q4

Annual

Q1

Q2

2014¹ Q3 Q41

Oct

Nov1

Dec¹

Retail sales

-

-

0.8

0.3

-

0.3

-0.5

1.4

0.5

0.0

1.8

2.2

(y-o-y)

2.4

0.8

0.7

1.2

1.6

2.5

0.7

1.4

1.9

-0.1

1.0

4.5

- Durable goods²

5.3

0.3

-0.3

0.2

5.1

4.4

-1.1

2.2

1.1

-6.4

7.8

3.2

· Automobiles

2.4

2.1

2.1

-2.1

16.6

12.0

4.6

0.5

3.0

-4.1

9.3

2.7

-0.4 2.0

2.0 0.6

0.9 1.5

-0.8 0.8

-0.8 0.8

-1.5 -1.0

-1.3 0.2

4.8 -0.5

-1.2 1.1

-2.0 4.6

-1.5 0.3

5.9 0.0

- Semi-durable goods³ - Nondurable goods4

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 growth is likely to slow down in January, despite increasing cellphone sales, as the Lunar New Year holiday, which falls on February this year, had a negative effect on department store and large discount store sales in January.

Cellphone service transfers continued to rise owing to the recovery in demand for new cellphones, but domestic car sales growth slowed down somewhat compared to the previous month.

Cellphone service transfer sales (thousands, Korea Telecommunications Operators Association) 847 (Jun 2014) → 644 (Jul) → 523 (Aug) → 626 (Sep) → 375 (Oct) → 550 (Nov) → 687 (Dec) → 757 (Jan 2015)

Department store and large discount store sales continued to worsen in January due to the relatively late Lunar New Year holiday (Jan 31, 2014 → Feb 19, 2015), and credit card use growth also slightly fell.

(y-o-y, %)

Jun

Jul

Aug

2014 Sep

Oct

Nov

Dec

2015 Jan

Credit card use

5.2

5.1

8.6

5.3

7.5

5.3

8.7

3.1

Department store sales

-4.6

2.0

10.5

-6.3

-2.2

-6.5

-0.9

-9.7

Large discount store sales

-5.9

-4.6

3.2

-10.1

-0.9

-4.7

-3.8

-20.7

Domestic sales of gasoline

2.2

0.6

-4.5

0.6

2.0

-2.2

2.5

8.4

Domestic sales of cars

7.5

0.7

-4.8

10.4

2.1

7.0

27.2

3.9

Sources: Credit Finance Association of Korea, Ministry of Trade, Industry and Energy, Korea National Oil Corporation, Korea Automobile Manufacturers Association, Ministry of Strategy and Finance (for January data)

3. Facility investment Facility investment (advanced estimates of GDP) rose 5.6 percent quarter-on-quarter and 4.2 percent year-onyear in the fourth quarter of 2014.

11

ECONOMIC BULLETIN • Feb 2015

Facility investment 40

Source: The Bank of Korea (national accounts)

(%)

30 20 10 0

-10 -20 -30 2004.Q1

2005.Q1

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

Facility investment (q-o-q)

2014.Q1

Facility investment (y-o-y)

(Percentage change from previous quarter)

2012 Annual

Annual¹

2013¹ Q3

Q4

Annual¹

Q1¹

2014¹ Q2¹

Q3¹

Q4¹

Facility investment²

0.1

-1.5

2.7

5.6

5.9

-1.9

1.1

-0.5

5.6

(y-o-y)

-

-

1.5

10.9

-

7.3

7.7

4.3

4.2

- Machinery

0.3

-3.5

6.5

3.7

-

-4.9

0.2

2.6

-

- Transportation equipment

-0.4

4.0

-6.5

10.7

-

5.5

3.1

-7.0

-

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

The facility investment index in December rose 1.7 percent month-on-month helped by strong transportation equipment investment, despite a decrease in machinery investment. The index was up 13.8 percent year-on-year.

Facility investment by type Source: The Bank of Korea (national accounts) 50

(y-o-y, %)

40 30 20 10 0 -10 -20 -30 2004.Q1

2005.Q1

Transportation equipment

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

Machinery

12

The Green Book : Current Economic Trends

(Percentage change from previous quarter)

2012 2013 Annual Annual Q3 Facility investment index

Q4

Annual¹

Q1

Q2

2014¹ Q3

Q4¹

Nov¹

Dec¹

-2.8

-1.3

5.0

5.9

4.6

-5.2

2.1

-0.9

9.2

13.3

1.7

-

-

2.7

10.4

-

5.9

6.2

1.5

5.1

10.6

13.8

- Machinery

-2.7

-2.6

4.5

7.3

2.8

-8.6

1.5

-0.5

13.2

12.4

-2.0

- Transportation equipment

-3.0

2.3

6.4

2.5

9.7

4.7

3.4

-2.1

-0.1

15.8

12.0

(y-o-y)

1. Preliminary Source: Statistics Korea

Facility investment may slow down following a surge in the fourth quarter and given weakening business sentiment.

Business survey index for manufacturing sector (Bank of Korea) 86 (May 2014) → 81 (Jun) →78 (Jul) → 75 (Aug) → 74 (Sep) → 78 (Oct) → 74 (Nov) → 75 (Dec) → 77 (Jan 2015) → 73 (Feb)

Leading indicators of facility investment Sources: Statistics Korea (machinery orders), Korea International Trade Association (machinery imports) 10 9

(trillion won)

70 60 50

(y-o-y, %)

40

8

30

7

20

6

10 0

5

-10 -20

4

-30 -40 -50

3 2 2004.Q1

2005.Q1

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

Machinery orders (left)

2014.Q1

Machinery imports (right)

(Percentage change from same period in previous year)

2012 Annual Annual Domestic machinery orders

2013 Q3

Q4

Annual¹

Q1

Q2

2014¹ Q3

Q4¹

Nov1

Dec1

-13.9

6.7

2.2

32.4

15.3

17.9

4.4

50.2

-4.7

11.7

6.3

-

-

-6.9

27.7

-

-2.8

-9.6

38.2

-21.1

30.3

-22.6

-Public

-11.0

20.5

-9.7

129.7

94.1

184.6

-45.0

418.5

-28.0

162.6

9.5

-Private

-14.2

5.2

3.8

22.1

5.4

4.1

9.6

8.6

-0.1

-0.9

6.1

Machinery imports

-3.0

1.1

6.8

13.2

5.8

2.4

11.7

1.6

7.0

18.8

18.4

Average manufacturing operation ratio

78.5

76.2

75.1

76.5

76.0

77.2

76.3

75.8

74.6

74.2

76.2

Facility investment adjustment pressure²

-0.7

-1.4

-1.7

0.1

-1.4

-0.6

-0.9

-0.3

-3.7

-5.1

-1.1

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

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

13

ECONOMIC BULLETIN • Feb 2015

4. Construction investment Construction investment (advanced estimates of GDP) in the fourth quarter of 2014 fell 9.2 percent quarteron-quarter and 1.8 percent year-on-year.

(Percentage change from previous quarter)

2012¹ Annual Annual Construction investment²

2013¹ Q3

Q4

Annual

Q1¹

2014¹ Q2¹

Q3¹

Q4¹

-3.9

6.7

0.2

-5.2

1.1

5.1

0.4

2.5

-9.2

-

-

8.8

5.4

-

4.3

0.2

2.6

-1.8

- Building construction

-1.6

8.8

0.5

-4.0

-

5.1

2.3

3.3

-

- Civil engineering works

-7.1

3.7

-0.1

-6.9

-

5.1

-2.5

1.3

-

(y-o-y)

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

Construction investment

Source: The Bank of Korea (national accounts)

(%) 10

5

0

-5

-10 2004.Q1

2005.Q1

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

Construction investment (q-o-q)

2014.Q1

Construction investment (y-o-y)

The value of construction completed (constant) in December, despite an increase in civil engineering works, fell 0.8 percent month-on-month as building construction declined. The index fell 3.2 percent year-on-year.

(Percentage change from previous period)

2012 2013 Annual Annual Q3 Construction completed (constant)

-5.0

Q4

Annual

Q1

Q2

2014¹ Q3

Q4

Nov¹

Dec¹

-0.8

1.5

0.2

-3.2

-4.5

-1.3

-0.8

10.1

-0.1

-0.7

(y-o-y)

-

-

10.5

9.7

-

6.5

0.1

-1.9

-5.9

-9.2

-3.2

- Building construction

-6.6

14.8

0.4

2.9

7.8

6.0

2.9

-5.5

-3.9

-0.1

-2.7

- Civil engineering works

-3.0

4.3

-0.9

-5.5

-12.4

-5.0

-4.1

0.7

-5.4

-3.1

2.5

1. Preliminary Source: Statistics Korea

14

The Green Book : Current Economic Trends

Construction investment by type Source: The Bank of Korea (national accounts) 40

(y-o-y, %)

30 20 10 0 -10 -20 -30 2004.Q1

2005.Q1

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

Residential buildings

Building construction

2014.Q1

Civil engineering works

Construction investment is expected to increase considering the SOC budget increase in 2015 (23.7 trillion won in 2014 to 24.8 trillion won in 2015), budget frontloading and a low base effect from the fourth quarter of 2014.

Unsold houses (thousands, Ministry of Land, Infrastructure and Transport) 46 (Apr 2014) → 49 (May) → 50 (Jun) → 51 (Jul) → 45 (Aug) → 39 (Sep) → 40 (Oct) → 40 (Nov) → 40 (Dec)

(Percentage change from same period in previous year)

2012 Construction orders (current value) (q-o-q, m-o-m) - Building construction - Civil engineering works Building permits²

Annual -6.2 -4.7 -9.1 -0.5

2013 Annual -15.3 -13.4 -19.2 -7.3

Q3 -10.6 16.8 -10.8 -10.0 -3.4

2014¹ Q4 22.4 2.9 17.9 33.4 -0.2

Annual¹ 16.8 26.7 -3.9 11.2

Q1 15.5 -1.4 10.7 24.4 18.4

Q2 26.1 10.5 47.0 -11.2 21.6

Q31 45.6 31.7 64.7 -4.2 14.7

Q41 -5.7 -34.1 -2.2 -13.3 -4.6

Nov1 -20.0 -26.1 -22.6 -13.6 -17.5

Dec1 -3.3 11.0 -1.0 -7.9 -7.3

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

Leading indicators of construction investment Sources: Statistics Korea (construction orders), Ministry of Land, Infrastructure and Transport (building permit area) 300

(y-o-y, %)

250 200 150 100 50 0 -50 -100 2004.1

2005.1

Construction orders

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Building permit area

15

ECONOMIC BULLETIN • Feb 2015

5. Exports and Imports Exports in January declined 0.4 percent (preliminary) year-on-year to US $45.37 billion.

Exports decreased slightly in line with falling oil prices, which have led to drops in petroleum product and petrochemical product prices.

By item, semiconductor and vessel exports surged, while others decreased due to price drops. By region, shipments to the US and China rose, while shipments to EU, Japan and the ASEAN countries fell.

Export growth by item (y-o-y, %) 62.5 (vessels), 13.7 (semiconductors), -1.9 (mobile phones), -2.4 (steel), -19.8 (petrochemicals), -38.5 (petroleum products) Export growth by region (y-o-y, %) 15.2 (US), -23.0 (EU), -8.3 (ASEAN countries), 5.3 (China), -19.2 (Japan)

Excluding petroleum products and petrochemicals whose prices dropped due to falling oil prices, exports increased 6.6 percent in January.

Average daily exports, an indicator adjusted to days worked, was down 6.8 percent year-on-year, posting US $1.93 billion in January.

Average daily export growth (y-o-y, %) 5.4 (May 2014) → 4.9 (Jun) → 5.2 (Jul) → 4.0 (Aug) → 1.2 (Sep) → 2.3 (Oct) → 1.9 (Nov) → -0.7 (Dec) → -6.8 (Jan 2015)

Exports by item 180

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

(y-o-y, %)

160 140 120 100 80 60 40 20 0 -20 -40 -60 -80 2004.1

2005.1

Export growth rate

2006.1

2007.1

2008.1

Semiconductors

2009.1

2010.1

2011.1

2012.1

Automobiles

2013.1

2014.1

2015.1

Steel

16

The Green Book : Current Economic Trends

(US $ billion)

2013

2014

Annual Annual Exports

Q2

Q3

Q4

Jan

Nov

Dec

Jan1

559.63

573.09

137.54

145.67

141.77

148.10

45.56

46.76

49.70

45.37

2.1

2.4

1.6

3.2

3.6

1.2

-0.2

-2.4

3.6

-0.4

2.05

2.11

2.07

2.19

2.07

2.13

2.07

2.08

2.07

1.93

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

2015

Q1

1. Preliminary Source: Korea Customs Service

Imports in January fell 11.0 percent (preliminary) year-on-year to US $39.84 billion.

Imports of capital goods and consumer goods increased, but commodity imports fell sharply due to low oil prices.

Import growth by category (y-o-y, %) -24.8 (commodities), 14.4 (capital goods), 11.1 (consumer goods) (US $ billion)

2013

2014

2015

Annual

Annual

Q1

Q2

Q3

Q4

Jan

Nov

Dec

Jan1

515.58

525.56

132.36

130.93

132.83

129.44

44.75

41.37

43.95

39.84

(y-o-y, %)

-0.8

1.9

2.0

3.3

5.4

-2.7

-1.2

-4.0

-0.9

-11.0

Average daily imports

1.89

1.94

1.99

1.97

1.94

1.86

2.03

1.84

1.83

1.70

Imports

1. Preliminary Source: Korea Customs Service

Imports by item 120

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

(y-o-y, %)

100 80 60 40 20 0 -20 -40 -60 -80 2004.1

2005.1

Import growth rate

2006.1

2007.1

2008.1

2009.1

2010.1

Commodities

2011.1

2012.1

2013.1

2014.1

2015.1

Capital goods

17

ECONOMIC BULLETIN • Feb 2015

Exports and imports 80

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

(US $ billion)

70 60 50 40 30 20 10 0 -10 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

Trade balance

2010.1

2011.1

2012.1

2013.1

2014.1

Exports

Imports

The trade balance (preliminary) in January remained in the black for the 36th consecutive month, posting a surplus of US $5.53 billion.

(US $ billion)

2013 Trade balance

2014

2015

Annual

Annual

Q1

Q2

Q3

Q4

Jan

Nov

Dec

Jan1

44.05

47.53

5.18

14.74

8.94

18.67

0.81

5.39

5.75

5.53

1. Preliminary Source: Korea Customs Service

6. Mining and manufacturing production Mining and manufacturing production rose 3.0 percent month-on-month in December, as a decline in audio-visual communications equipment was offset by gains in automobiles and semiconductors & parts. Compared to the same period of the previous year, the index increased 0.4 percent.

Compared to the previous month, production of automobiles (up 6.3%), semiconductors & parts (up 4.4%), chemical products (up 7.3%), electrical equipment (up 7.1%) and mechanical equipment (up 2.7%) rose, while production of audio-visual communications equipment (down 8.6%) and other transportation equipment (down 3.5%) declined.

Compared to a year ago, production of automobiles (up 4.4%), mechanical equipment (up 5.6%) and electrical equipment (up 10.3%) rose, while semiconductors & parts (down 4.0%) and other transportation equipment (down 9.9%) declined.

18

The Green Book : Current Economic Trends

Industrial production Source: Statistics Korea (industrial activity trends) 50

(%)

40 30 20 10 0 -10 -20 -30 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

Industrial production (m-o-m)

2010.1

2011.1

2012.1

2013.1

2014.1

Industrial production (y-o-y)

(Percentage change from previous period)

Mining (q-o-q, m-o-m) (y-o-y) Manufacturing (q-o-q, m-o-m) Mining and (y-o-y) manufacturing Shipment activity² - Domestic consumption - Exports Inventory³ Manufacturing Average operation ratio (%) indicators Production capacity (y-o-y)

Annual 0.3 0.3 0.4 -1.4 2.3 5.0 76.2 1.7

2013 2014¹ Q3 Q4 Dec Annual¹ Q1 Q2 Q3 Q4¹ Nov¹ Dec¹ 0.1 1.9 2.1 0.3 -0.9 -0.2 -1.2 1.0 3.0 0.2 1.7 2.4 0.0 0.7 0.3 1.1 -2.0 -3.6 0.4 0.0 2.1 2.2 0.4 -1.1 -0.1 -1.3 1.2 2.8 0.1 1.8 2.6 -0.1 0.6 0.3 1.2 -2.2 -3.7 0.2 -0.1 1.7 1.4 -0.2 -0.1 -0.6 -0.6 0.0 3.0 2.1 1.6 1.7 2.1 0.2 0.0 -0.3 -0.9 -1.4 1.8 1.6 -2.0 1.6 0.6 -0.6 -0.1 -0.8 -0.3 1.7 4.1 2.9 5.7 2.4 0.8 -2.8 -0.5 -0.2 1.9 -3.6 -1.4 -1.5 75.1 76.5 77.2 76.0 77.2 76.3 75.8 74.6 74.2 76.2 1.8 1.7 1.9 1.3 1.2 1.2 1.5 1.5 1.4 1.3

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

The manufacturing inventory-shipment ratio fell 4.3 percentage points month-on-month to 115.7 percent as inventories fell 1.5 percent and shipments rose 2.1 percent.

Inventories of chemical products (up 1.4%), groceries (up 2.8%) and rubber & plastics (up 1.8%) rose, while audio-visual communications equipment (down 23.5%), semiconductors & parts (down 3.8%) and primary metals (down 1.3%) declined.

Shipments of automobiles (up 8.2%), semiconductors & parts (up 4.9%) and chemical products (up 2.6%) rose, while audio-visual communications equipment (down 6.4%), other transportation equipment (down 4.3%) and nonmetallic minerals (down 3.4%) fell.

The average operation ratio of the manufacturing sector rose 2.0 percentage points month-on-month to 76.2 percent.

19

ECONOMIC BULLETIN • Feb 2015

Shipment and inventory 10

Source: Statistics Korea (industrial activity trends)

(m-o-m, %)

8 6 4 2 0 -2 -4 -6 -8 -10 -12

2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

Shipment growth

Inventory growth

Average manufacturing operation ratio 100

2014.1

Source: Statistics Korea (industrial activity trends)

(%)

90

80

70

60

50 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Mining and manufacturing production will likely decrease in January due to a high base effect from November and December 2014.

7. Service sector activity Service output in December remained unchanged from the previous month, as wholesale & retail and transportation services rose while hotels & restaurants and financial & insurance services declined. Compared to the same period of the previous year, service output increased 3.0 percent.

Hotels & restautants (down 4.1%, m-o-m) and publishing & communications services (down 1.2%, m-o-m) continued to decline, while financial & insurance services (down 1.6%, m-o-m) fell from the recent positive trend.

Wholesale & retail (up 1.7%, m-o-m) rose for the first time in four months, and transportation services (up 2.3%, m-o-m) continued to rise.

20

The Green Book : Current Economic Trends

Service sector activity 20

Source: Statistics Korea (industrial activity trends)

(%)

15 10 5 0 -5 -10 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

Service sector activity (m-o-m)

Wholesale & retail 20

2013.1

2014.1

Service sector activity (y-o-y)

Statistics Korea (industrial activity trends)

(%)

15 10 5 0 -5 -10 2004.1

2005.1

2006.1

2007.1

2008.1

Wholesale & retail (m-o-m)

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Wholesale & retail (y-o-y)

(Percentage change from previous period)

Weight Service activity index 100.0 - Wholesale & retail 21.6 - Transportation services 8.5 - Hotels & restaurants 7.2 - Publishing & communications services 8.4 - Financial & insurance services 14.7 - Real estate & renting 5.3 - Professional, scientific & technical services 5.6 - Business services 3.3 - Education services 10.9 - Healthcare & social welfare services 7.5 - Entertainment, cultural & sports services 2.9 - Membership organizations & personal services 3.6 - Sewerage & waste management 0.6 1. Preliminary Source: Statistics Korea

2012 2013 2014ยน Annual Annual Q4 Annual Q1 Q2 Q3 Q4 1.6 1.4 0.9 2.2 0.5 0.0 1.3 1.0 0.8 -0.2 0.6 -0.1 0.1 -0.4 -0.2 -0.1 1.2 1.1 0.6 2.0 1.1 -0.3 1.1 2.7 -1.2 0.4 -0.9 -0.1 -1.6 -2.1 6.0 -2.3 3.0 1.9 3.4 1.4 -2.0 0.8 0.6 -0.2 2.8 0.5 0.6 5.2 2.7 1.4 1.6 3.3 -4.8 2.5 3.6 5.5 -3.2 7.6 -1.4 4.6 3.7 3.3 0.7 2.3 0.4 3.0 -2.6 3.2 3.5 2.2 0.4 2.6 1.6 -0.5 0.7 0.5 0.9 0.8 0.7 1.2 1.1 -2.3 1.7 0.2 6.7 5.0 1.6 6.4 1.5 0.4 1.9 2.6 2.8 -0.5 -0.2 -0.8 1.4 -6.8 8.0 -3.4 -1.4 5.3 0.2 0.1 0.1 -3.5 3.5 -0.7 -0.6 -0.4 1.2 1.0 0.2 -1.4 1.9 0.8

Oct 0.9 -0.3 1.2 -1.6 -1.0 2.3 3.3 8.1 -0.7 2.1 0.1 -5.9 2.6 3.1

Nov1 -0.3 -0.6 1.2 -3.2 -0.9 2.7 -1.6 -2.9 0.1 -0.4 0.8 -0.6 -3.3 -3.0

Dec1 0.0 1.7 2.3 -4.1 -1.2 -1.6 -1.2 -1.7 2.3 -0.7 0.0 -1.0 4.7 4.5

21

ECONOMIC BULLETIN • Feb 2015

December 2014 service output by business 12 10

Source: Statistics Korea (industrial activity trends)

(y-o-y, %)

8

Transportation services

6 Total index

4 2 0

Publishing & communications services

Wholesale & retail

-2 -4

Hotels & restaurants

-6

Sewerage & waste management

Professional, scientific & technical services Entertainment, cultural & sports services

Education services

Real estate & renting Financial & insurance services

Business services

Health & social welfare services

Membership organizations & personal services

-8 -10 -12

Service output in January will be affected by positive factors, such as a rise in stock transactions, and also by negative factors, such as a decline in car sales as well as department store and large discount store sales.

Average daily stock transactions (trillion won) 5.6 (Apr 2014) → 5.5 (May) → 5.4 (Jun) → 6.0 (Jul) → 6.3 (Aug) → 6.6 (Sep) → 6.8 (Oct) → 6.7 (Nov) → 6.0 (Dec) → 7.2 (Jan 2015)

8. Employment The number of workers on payroll in December increased by 422,000 from a year earlier to 25,380,000 and the employment rate rose 0.3 percentage points to 59.4 percent.

By industry, services and manufacturing continued to lead employment growth.

By employment status, permanent workers continued to lead employment growth, while self-employed workers declined for the first time in five months.

Number of persons employed and employment growth 1,200

Source: Statistics Korea (employment trends)

(thousands)

(millions)

26

1,000 25

800 600

24

400 23

200 0

22 -200 21

-400 2004.1

2005.1

2006.1

Employment growth (y-o-y, left)

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Number of employed (seasonally adjusted, right)

22

The Green Book : Current Economic Trends

2010 2011 2012 2013 Annual Annual Annual Annual Q3 Q4 Number of employed (millions)

Dec Annual Q1

Q2

2014 Q3

Q4

Nov

Dec

23.83 24.24 24.68 25.07 25.41 25.35 24.96 25.60 24.91 25.79 25.93 25.77 25.97 25.38

Employment rate (%)

58.7 59.1 59.4 59.5 60.3 60.0 59.1 60.2 58.8 60.8 60.9 60.4 60.8 59.4

(Seasonally adjusted)

58.7 59.1 59.4 59.5 59.7 59.9 59.9 60.2 60.4 59.9 60.3 60.3 60.3 60.3

Employment growth (y-o-y, thousands)

323

415

437

386

421

541

560

533

729

464

517

422

438

422

(Excluding agriculture, forestry & fisheries)

405

440

451

394

402

556

587

601

717

518

638

531

523

516

- Manufacturing

191

63

14

79

26

49

82

146

123

136

194

129

102

142

33

-2

22

-19

4

-9

5

42

27

12

57

72

84

83

- Services

200

386

416

318

354

507

495

424

570

387

403

336

345

292

- Agriculture, forestry & fisheries

-82

-25

-14

-8

19

-15

-27

-68

12

-54 -121 -109

-85

-94

- Wage workers

517

427

315

483

526

604

651

548

711

485

519

476

509

464

路 Permanent workers

697

575

436

615

632

637

656

443

606

478

333

355

332

372

路 Temporary workers

-34

-78

-2

-96

-65

2

-4

140

74

118

226

141

146

129

-146

-70 -120

-37

-42

-35

-1

-35

31 -111

-40

-20

31

-38

-194

-11

121

-97 -105

-63

-91

-15

19

-22

-3

-54

-71

-42

-118

1

124

-67

-83

-54

-58

1

-7

-14

19

7

9

-6

- Male

181

238

234

186

179

262

309

266

373

228

268

196

201

184

- Female

142

177

203

200

242

279

251

267

357

236

249

226

238

238

- 15 to 29

-43

-35

-36

-50

-41

46

53

77

97

53

102

56

49

41

- 30 to 39

-4

-47

-31

-21

-34

-42

-13

-21

-6

-42

-7

-29

-34

-30

- 40 to 49

29

57

11

22

30

53

58

38

99

34

15

4

10

3

- 50 to 59

294

291

270

254

279

285

289

239

323

227

215

190

193

209

47

149

222

181

187

200

173

200

218

192

192

201

221

199

- Construction

路 Daily workers - Nonwage workers 路 Self-employed workers

- 60 or more Source: Statistics Korea

Employment rate Source: Statistics Korea (employment trends) 64

(%)

63 62 61 60 59 58 57 56 55 2004.1

2005.1

Original data

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Seasonally adjusted rate

23

ECONOMIC BULLETIN • Feb 2015

Employment by industry

Source: Statistics Korea (employment trends)

100

80

60

69.3 69.2 69.0 68.7 69.0 70.4 70.9 71.1 70.2 69.4 69.2 69.1 69.4 69.6 69.4 69.1 69.7 70.8 71.1 71.2 70.6 69.7 69.4 69.3 69.6 69.7 69.6 69.5 69.8 70.8

40 7.1

7.1

7.1

7.3

7.2 7.2

6.9

6.7 6.9

7.1

7.1

7.1 7.0

6.9

7.0

7.1 7.0 7.0

6.8 6.7

6.8

6.9

7.1

7.1

7.1

7.0

7.1

7.1

7.2 7.2

20 16.4 16.5 16.6 16.7 16.9 17.1 16.4 16.4 16.4 16.3 16.4 16.5 16.7 17.1 17.4 17.3 16.9 16.7 17.3 17.2 17.0 16.7 16.8 16.8 16.8 16.7 16.8 16.8 16.8 17.4 6.8

0

6.8

2012.7 8

6.8

6.9

6.5 4.9

9

10

11

4.3

4.6 5.6

12 2013.1 2

3

Services

6.3

6.7

6.9 6.7

6.8

6.8

6.9 6.2 4.7

4

5

6

8

9

10

7

Construction

11

4.4 4.5

12 2014.1 2

5.3

6.1

6.4

6.5

6.2

6.2

6.2

6.2

5.8 4.2

3

4

5

6

7

8

9

10

11

Manufacturing

12

Agriculture, forestry & fisheries

Employment by status of workers Source: Statistics Korea (employment trends) 100 5.3

80

5.4

5.3

5.2

4.5

4.2

4.2

4.7

5.0

5.0

5.2

5.1 5.2

5.2

5.3

5.1 4.3

4.2

4.3

4.6

4.8

5.0

5.0

5.0

5.0

4.9

4.9

4.7

4.1

21.5 23.4 23.3 23.2 23.1 22.9 22.7 22.7 22.8 23.0 22.8 22.6 22.5 22.6 22.7 22.5 22.4 22.2 21.9 22.1 22.0 22.3 22.2 22.1 22.1 22.1 22.4 22.2 22.1 21.9

6.7 60

5.3

6.4

6.4

6.7

6.8

6.6

6.2

6.0

6.0

6.5

6.7

6.7

6.3

6.1 6.3

6.5

6.4

6.4

6.3

6.0

5.7

6.0

6.1

6.1 6.0

5.8

6.1 6.2

6.4

6.2

19.9 19.7 19.5 19.5 19.5 19.5 19.6 19.2 19.4 19.4 19.5 19.5 19.2 19.4 19.6 19.7 19.7 19.5 20.1 19.7 19.8 19.7 19.7 19.7 20.2 19.9 19.8 19.8 19.9 20.0

40

20

48.5 44.4 45.1 45.2 45.1 45.2 46.2 46.9 47.3 47.0 46.3 46.2 46.1 46.4 46.8 46.7 46.5 46.9 47.8 48.3 48.2 47.8 47.3 47.1 47.2 46.8 47.0 47.1 47.2 47.3

0 2012.7 8

9

10

Unpaid family workers

11

12 2013.1 2

3

4

5

Self-employed workers

6

7

8

9

10

11

12 2014.1 2

Daily workers

3

4

5

6

7

Temporary workers

8

9

10

11

12

Regular workers

The number of unemployed persons in December increased by 113,000 year-on-year to 886,000, and the unemployment rate rose 0.4 percentage points to 3.4 percent. The unemployment rate rose year-on-year in all age groups excluding those in their 30s.

The economically inactive population in December was down 78,000 from a year earlier to 16,460,000, while the labor force participation rate rose 0.6 percentage points to 61.5 percent.

The number of those economically inactive due to old age (up 80,000, y-o-y) and rest (up 52,000, y-o-y) increased, while those due to housework (down 93,000, y-o-y), education (down 91,000, y-o-y) and childcare (down 15,000, y-o-y) decreased.

24

The Green Book : Current Economic Trends

Unemployment rate 6

Source: Statistics Korea (employment trends)

(%)

5

4

3

2 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Original data

Seasonally adjusted rate

Number of unemployed (thousands)

2010 2011 2012 2013 2014 AnnualAnnualAnnualAnnual Q3 Q4 Dec Annual Q1 Q2 Q3 Q4 Nov Dec 920 855 820 807 777 733 774 937 1,031 977 884 854 818 886

Unemployment growth (y-o-y, thousands) - Male

31

-65

-35

-13

7

37

137

-7

-48

-26

-6

11

-7 -15

49

40

62

37

59

58

56

- Female

38

-17

-9

-7

-4

18

52

80

84 103

70

63

60

58

Unemployment rate (%)

3.7

3.4

3.2

3.1 3.0 2.8 3.0

3.5

4.0

3.7 3.3 3.2 3.1 3.4

(Seasonally adjusted) -15 to 29

3.7

3.4

3.2

3.1 3.1 3.0 3.1

3.5

3.5

3.7 3.5 3.5 3.4 3.5

8.0

7.6

7.5

8.0 7.9 7.9 8.5

9.0

9.8

9.4 8.6 8.3 7.9 9.0

- 30 to 39

3.5

3.4

3.0

3.0 2.9 2.6 2.7

3.1

3.2

3.4 3.0 2.8 2.6 2.7

- 40 to 49

2.5

2.1

2.0

2.0 1.9 1.7 1.8

2.2

2.3

2.4 2.1 2.1 2.2 2.2

- 50 to 59 - 60 or more

2.5

2.1

2.1

1.9 1.8 1.5 1.5

2.2

2.2

2.3 2.1 2.2 2.2 2.3

2.8

2.6

2.4

1.8 1.2 1.4 1.7

2.3

4.4

1.9 1.5 1.6 1.2 1.8

11

125 165 107 121 118 113

Source: Statistics Korea

Labor force participation rate 65

Source: Statistics Korea (employment trends)

(%)

64 63 62 61 60 59 58 57 2004.1

2005.1

Original data

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Seasonally adjusted rate

25

ECONOMIC BULLETIN • Feb 2015

2010 2011 2012 2013 Annual Annual Annual Annual Q3 Q4 Economically inactive population (millions)

Dec Annual Q1

2014 Q3

Q2

Q4

Nov

Dec

15.84 15.95 16.08 16.22 15.98 16.17 16.54 15.98 16.40 15.69 15.76 16.07 15.90 16.46

Labor force participation rate (%) 61.0 61.1 61.3 61.5

62.1 61.7 60.9 62.4 61.3 63.1 63.0 62.4 62.7

61.5

(Seasonally adjusted)

61.0 61.1 61.3 61.5

61.6 61.7 61.8 62.4 62.6 62.2 62.5 62.4 62.4

62.5

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

143

112

128

141

78

- Childcare

-125

-5

-2

1

9

- Housework

201

101

123

- Education

12

-51

- Old age

80

- Rest

-56

-91 -172 -246 -433 -226 -222 -101 -113

-78

-14

-40

-39

-29

-57

-41

-31

-28

-15

-3

-80 -112 -126 -131 -230 -127

-99

-67

-70

-93

-12

77

88

-44

-51

-81

-76

-68 -109

-72

-59

-91

-45

148

54

32

21

43

93

81

113

91

89

99

80

182

-53

-7

12

21

-32

-92 -197

-90

-65

-15

-66

52

Source: Statistics Korea

9. Financial markets 9.1 Stock market The KOSPI rose 1.8 percent in January 2015 from 1,916 points to 1,949 points. The KOSPI fluctuated due to external uncertainties, such as falling international oil prices and political unrest in Greece, but ended the month higher due to the ECB’s quantitative easing program.

Stock prices 2,200

(monthly average)

2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 2004.1

KOSPI

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

KOSDAQ

26

The Green Book : Current Economic Trends

(Closing rate)

Dec 2014

KOSPI Jan 2015

Change1

Dec 2014

KOSDAQ Jan 2015

Change1

Stock price index (points)

1,915.6

1,949.3

33.7 (1.8%)

543.0

591.6

48.6 (9.0%)

Market capitalization (trillion won)

1,192.3

1,213.5

21.2 (1.8%)

143.1

156.6

13.5 (9.4%)

3.9

4.4

0.5 (12.8%)

2.1

2.8

0.7 (33.3%)

34.1

34.3

0.2 (0.6%)

11.2

11.0

-0.2 (-1.8%)

Average daily trade value (trillion won) Foreign stock ownership (%, %p) 1. Change from the end of the previous month Source: Korea Exchange

9.2 Exchange rate The dollar-won exchange rate in January 2015 fell 5.8 won to 1,093.5 won from 1,099.3 won at the end of December 2014. Despite an increased demand for safe-haven assets amid concerns over Greece and Russia, the dollar-won exchange rate fell due to a large current account surplus and trade surplus.

The 100 yen-won exchange rate rose from 913.0 won in December 2014 to 928.3 won in January 2015 as the value of the yen went up due to an increased demand for safe-haven assets.

(Closing rate)

2009 Dec

2010 Dec

2011 Dec

2012 Dec

2013 Dec

2014 Dec

2015 Jan

Changeยน

Dollar-Won

1,164.5

1,134.8

1,151.8

1,070.6

1,055.4

1,099.3

1,093.5

0.5

100 Yen-Won

1,264.5

1,393.6

1,481.2

1,238.3

1,002.3

913.0

928.3

-1.6

1. Appreciation from the end of the previous year (%); the exchange rate is based on the closing price at 3:00 p.m., local time.

Foreign exchange rates 1,800

(month-end, \)

1,600

1,400

1,200

1,000

800

600 2004.1

2005.1

Dollar-Won

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

100 Yen-Won

27

ECONOMIC BULLETIN • Feb 2015

Daily exchange rate trend 1,800 1,600 1,400 1,200 1,000 800 600 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

Dollar-Won

100 Yen-Won

9.3 Bond market 3-year Treasury bond yields fell from 2.10 percent in December 2014 to 1.97 percent in January 2015.

Treasury bond yields declined due to fallling US Treasury bond yields and a rising demand for safehaven assets.

Interest rates 10

Source: The Bank of Korea

(monthly average, yearly, %)

9 8 7 6 5 4 3 2 1 2004.1

2005.1

2006.1

2007.1

2008.1

Overnight call rate (daily)

2009.1

2010.1

2011.1

2012.1

2013.1

3-yr Treasury bond yield

2014.1

3-yr corporate bond yield

(Closing rate, %)

Call rate (1 day) CD (91 days) Treasury bonds (3 yrs) Corporate bonds (3 yrs) Treasury bonds (5 yrs)

2009 Dec 2.01 2.88 4.44 5.56 4.98

1. Basis point, changes from the previous month

2010 Dec 2.51 2.80 3.38 4.27 4.08

2011 Dec 3.29 3.55 3.34 4.21 3.46

2012 Dec 2.77 2.89 2.82 3.29 2.97

2013 Dec 2.52 2.66 2.86 3.29 3.23

2014 Nov 1.99 2.13 2.07 2.39 2.23

Dec 2.03 2.13 2.10 2.43 2.28

Jan 2.00 2.12 1.97 2.27 2.05

2015 Change1 -3 -1 -13 -16 -23

28

The Green Book : Current Economic Trends

9.4 Money supply & money market M2 (monthly average) in November rose 8.3 percent from a year earlier. Money supply in the private sector surged due to an increase in bank loans, and money supply in the overseas sector rose due to a large current account surplus and a rise in foreign investment in Korean shares.

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

2009 Annual

2010 Annual

2011 Annual

2012 Annual

2013 Annual

Sep

Oct

2014 Nov

Nov1

M1²

16.3

11.8

6.6

3.8

9.5

11.8

12.1

12.6

562.0

M2

10.3

8.7

4.2

5.2

4.8

7.1

7.5

8.3

2,083.3

Lf ³

7.9

8.2

5.3

7.8

6.9

7.1

7.3

8.1

2,817.7

1. Balance at end November 2014, trillion won 2. M1 excluding corporate MMFs and individual MMFs while including CMAs 3. Liquidity aggregates of financial institutions (mostly identical with M3)

Total money supply Source: The Bank of Korea 40

(y-o-y, monthly average balance, %)

30

20

10

0

-10

-20 2004.1

2005.1

Reserve money

2006.1

2007.1

2008.1

2009.1

M1

2010.1

2011.1

2012.1

2013.1

2014.1

Lf

Bank deposit growth (excluding bank debentures) slowed in December, as time deposits plummeted from a 3.7 trillion won rise in November to an 8.4 trillion won fall due to local governments’ withdrawal to fund year-end spending and corporate withdrawal at deposit maturity.

Asset management company (AMC) deposits fell sharply, led by money market funds (MMF) (-1.2 trillion won → -11.5 trillion won), as banks and corporations withdrew funds to meet their year-end financial requirements and make year-end payments.

29

ECONOMIC BULLETIN • Feb 2015

(Change from previous period, end-period, trillion won)

2009

2010

2011

2012

2013

Dec

Dec

Dec

Dec

Dec

Sep

Oct

2014 Nov

Dec

Dec1

Bank deposits2

54.8

36.9

58.9

37.0

41.0

3.7

7.3

21.0

52.0

1,290.7

AMC deposits

-27.6

-16.7

-16.6

18.8

17.7

2.7

21.8

2.9

-8.7

381.9

1. Balance at end December 2014 2. Including bank debentures

Deposits in financial institutions

Source: The Bank of Korea

(y-o-y, end of month balance, trillion won) 30

20

10

0

-10

-20 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

10. Balance of payments Korea’s current account (preliminary) in December posted a surplus of US $7.22 billion, staying in the black for 34 consecutive months.

The goods account surplus contracted from US $10.03 billion to US $8.52 billion, despite a rise in exports, with imports declining at a slower pace.

Goods export growth (y-o-y, %) -5.0 (Nov 2014) → 1.7 (Dec) Goods import growth (y-o-y, %) -10.4 (Nov 2014) → -1.7 (Dec)

Compared to the same period of the previous year, the goods account surplus expanded from US $6.80 billion to US $8.52 billion as imports declined while exports increased.

30

The Green Book : Current Economic Trends

Import growth by category (y-o-y, %) -0.9 (total), -11.3 (commodities), 17.4 (capital goods), 10.0 (consumer goods) Export growth by item (y-o-y, %) 3.6 (total), 22.9 (mobile phones), 11.8 (semiconductors), 9.3 (steel), -6.5 (petroleum products), 1.4 (automobiles)

Current account balance 14 12

Source: The Bank of Korea (balance of payments trends)

(US $ billion)

10 8 6 4 2 0 -2 -4 -6 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

Services account

Goods account

2014.1

Current account

The services account deficit expanded from US $0.16 billion to US $1.54 billion, despite a surplus in the construction account, as deficits in the transportation, travel, manufacturing and other businesses accounts increased.

Services account (US $ billion, November → December) -0.34 → -0.45 (manufacturing), 0.33 → -0.18 (transportation), 0.01 → -0.56 (travel), 0.79 → 1.61 (construction), -0.26 → -0.57 (intellectual property rights), -0.89 → -1.33 (other businesses)

The primary income account surplus contracted from US $1.67 billion to US $1.18 billion due to a rise in dividend payments, while the secondary income account deficit expanded from US $0.21 billion to US $0.94 billion.

Travel balance 4

Source: The Bank of Korea (balance of payments trends)

(US $ billion)

3 2 1 -1 -2 -3 2004.1

2005.1

Travel balance

2006.1

2007.1

2008.1

2009.1

2010.1

Travel revenue

2011.1

2012.1

2013.1

2014.1

Travel payment

31

ECONOMIC BULLETIN • Feb 2015

(US $ billion)

2013 Annual Dec

Q2

2014¹ Q3

Annual

Q1

Oct

Nov

Dec1

Current account

81.15

6.60

89.42

15.18

24.24

22.57

8.88

11.32

7.22

- Goods balance

82.78

6.80

92.89

17.74

26.43

21.67

8.49

10.03

8.52

- Services balance

-6.50

-0.72

-8.16

-3.50

-1.84

-0.90

-0.21

-0.16

-1.54

- Primary income balance

9.06

1.23

10.20

1.90

1.33

3.14

0.97

1.67

1.18

- Secondary income balance

-4.19

-0.71

-5.50

-0.96

-1.68

-1.35

-0.36

-0.21

-0.94

1. Preliminary Source: The Bank of Korea

The capital and financial account (preliminary) in December posted a net outflow of US $9.80 billion.

Capital & financial account balance (US $ billion) -6.24 (Apr 2014) → -8.13 (May) → -9.84 (Jun) → -5.92 (Jul) → -7.80 (Aug) → -8.76 (Sep) → -6.80 (Oct) → -9.92 (Nov) → -9.80 (Dec)

FDI net outflows decreased from US $2.10 billion to US $1.35 billion as FDI inflows increased.

Net outflows of portfolio investment expanded from US $2.84 billion to US $6.16 billion as foreign investment in Korean shares switched to a net outflow.

Net outflows of financial derivatives investment expanded from US $0.08 to US $0.15 billion, while net outflows of other investment contracted from US $7.80 billion to US $5.13 billion due to a decrease in financial institutions’ overseas deposits.

The current account is expected to continue posting a surplus in January, considering the trade surplus in January (US $5.53 billion).

Capital & financial account balance 15

Source: The Bank of Korea (balance of payments trends)

(US $ billion)

10

5 0 -5 -10 -15 2004.1

2005.1

Direct investment

2006.1

2007.1

2008.1

Portfolio investment

2009.1

2010.1

2011.1

Financial derivatives

2012.1

2013.1

2014.1

Capital & financial account

32

The Green Book : Current Economic Trends

11. Prices 11.1 Consumer prices Consumer prices in January rose 0.5 percent month-on-month. Compared to the same month of the previous year, consumer prices rose 0.8 percent.

Consumer price inflation

(%)

Jan

Feb

Mar

Apr

May

2014 Jun Jul

Aug

Sep

Oct

Nov

Dec

2015 Jan

Month-on-Month

0.5

0.3

0.2

0.1

0.2

-0.1

0.1

0.2

-0.1

-0.3

-0.2

0.0

0.5

Year-on-Year

1.1

1.0

1.3

1.5

1.7

1.7

1.6

1.4

1.1

1.2

1.0

0.8

0.8

Source: Statistics Korea

Consumer price inflation 7

Source: Statistics Korea (consumer price trends)

(%)

6 5 4 3 2 1 0 -1 2004.1

2005.1

2006.1

2007.1

Consumer price inflation (m-o-m)

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

Consumer price inflation (y-o-y)

By item, the prices of petroleum products (down 9.0%, m-o-m) and gas (down 5.5%, m-o-m) declined, while tobacco and agricultural product prices rose.

Agricultural, livestock & fishery product prices were up 1.7 percent month-on-month (agricultural products up 4.9%, livestock products down 2.2%, fishery products down 0.4%), as agricultural product supply declined in the winter and livestock product prices stabilized with the spread of the foot-andmouth disease having been controlled.

Price increases by item (m-o-m, %) strawberries (57.9), lettuces (35.1), spinach (33.8), cucumbers (9.0), pork (-6.3), carrots (-6.2), eggs (-1.9)

33

ECONOMIC BULLETIN • Feb 2015

Manufactured product prices rose 0.9 percent from the previous month. Petroleum product prices fell 9.0 percent in line with falling international oil prices, but other manufactured product prices rose 11.9 percent, led by tobacco prices.

Price increases by item (m-o-m, %) domestic tobaccoos (83.7), imported tobaccos (67.9), bags (21.6), fabric softeners (17.9), gasoline (-9.8), diesel (-9.7), car LPG (-4.3)

Personal service prices rose 0.3 percent month-on-month. Dining out expenses rose 0.2 percent and personal service prices excluding dining out expenses were up 0.4 percent.

Price increases by item (m-o-m, %) housekeeping charges (1.3), overseas group tour expenses (1.3), middle school student tutoring costs (0.8), high school student tutoring costs (1.0), domestic group tour expenses (-5.6), international flight fares (-0.8)

Contribution to consumer price inflation 7

Source: Statistics Korea (consumer price trends)

(%p)

5

3

1

‐1 2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Agricultural, livestock & fishery products

Manufactured products

Housing rents

Public services

Personal services

Public utilities

Consumer prices for basic necessities fell 0.3 percent year-on-year but rose 0.2 percent month-on-month.

Price increases for basic necessities (y-o-y, %) 1.4 (Jul 2014) → 0.8 (Aug) → 0.6 (Sep) → 0.7 (Oct) → 0.7 (Nov) → 0.3 (Dec) → -0.3 (Jan 2015)

Fresh food prices declined 2.1 percent year-on-year, led by fruits (down 10.8%). Compared to the previous month, fresh food prices rose 5.3 percent.

34

The Green Book : Current Economic Trends

Fresh food price increases (y-o-y, %) -8.3 (Jul 2014) → -11.8 (Aug) → -8.6 (Sep) → -6.6 (Oct) → -5.2 (Nov) → -2.8 (Dec) → -2.1 (Jan 2015)

Core consumer prices, which exclude oil and agricultural products, rose 2.4 percent year-on-year and 0.9 percent month-on-month.

Core inflation and prices for basic necessities

(y-o-y, %)

2014 2015 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Consumer prices excluding oil and agricultural products

1.7 1.7 2.1 2.3 2.2 2.1 2.2 2.4 1.9 1.8 1.6 1.6 2.4

Consumer prices excluding food and energy

1.5 1.4 1.7 1.9 1.8 1.7 1.9 2.1 1.7 1.6 1.3 1.4 2.3

Consumer prices for basic necessities

0.6 0.4 0.8 1.0 1.4 1.4 1.4 0.8 0.6 0.7 0.7 0.3 -0.3

Source: Statistics Korea

Prices 16

Source: Statistics Korea (consumer price trends)

(y‐o‐y, %)

13

10

7

4

1

-2 -5 2004.1

2005.1

2006.1

2007.1

2008.1

Consumer price inflation

2009.1

2010.1

2011.1

2012.1

2013.1

Core inflation

2014.1

2015.1

Producer price inflation

The expected annual inflation remained unchanged from the previous month at 2.6 percent, while import prices fell 13.0 percent year-on-year.

Expected inflation (%, over the next 12 months) 2.8 (Jun 2014) → 2.8 (Jul) → 2.8 (Aug) → 2.8 (Sep) → 2.7 (Oct) → 2.7 (Nov) → 2.6 (Dec) → 2.6 (Jan 2015) Import price increases (y-o-y, %, won base) -8.8 (Jun 2014) → -8.6 (Jul) → -9.9 (Aug) → -8.9 (Sep) → -7.6 (Oct) → -8.0 (Nov) → -13.0 (Dec)

35

ECONOMIC BULLETIN • Feb 2015

11.2 International oil and commodity prices International oil prices fell sharply month-on-month in January with both OPEC and non-OPEC supplies increasing.

Dubai crude prices fell 23.9 percent month-on-month as oversupply triggered speculative selling. Despite plunging international oil prices, the OPEC is planning to continue boosting production, led by Saudi Arabia, in order to gain market share.

Dubai crude ($/barrel) 53.3 (Jan 2) → 47.4 (Jan 9) → 43.9 (Jan 16) → 44.4 (Jan 23) → 45.6 (Jan 30)

(US $/barrel, period average)

2011 2012 2013 Annual Annual Annual Jan

Feb

Mar

Apr

May

2014 Jun Jul

Aug

Sep

Oct

Nov

Dec

2015 Jan

Dubai crude 105.9

109.0

105.3 104.0 105.0 104.4 104.6 105.6 107.9 106.1 101.9 96.6

86.8

77.1

60.2

45.8

Brent crude 111.0

111.7

108.7 107.7 108.9 107.7 107.8 109.4 111.8 107.4 102.6 98.0

87.8

79.3

62.8

49.7

84.4

76.4

59.3

47.3

WTI crude

95.1

93.8

98.0

94.9 100.7 100.5 102.0 101.8 105.2 102.6

96.3 93.2

Source: Korea PDS

International oil prices 160

Source: Korea National Oil Corporation

($/B)

140 120 100 80 60 40 20 0 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

Dubai crude

2013.1

2014.1

2015.1

WTI

Domestic gasoline prices fell for the 10th consecutive month in January, due to falling international oil prices.

Gasoline prices (won/liter) 1,568.7 (1st week Jan) → 1,531.1 (2nd week) → 1,477.5 (3rd week) → 1,435.1 (4th week)

36

The Green Book : Current Economic Trends

Dubai crude prices and import prices Source: Korea National Oil Corporation 160

160 ($/B)

(thousand won/B) 140

140

120

120

100

100

80

80

60

60

40

40

20

20

2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

Dubai crude (import prices, won, left)

2013.1

2014.1

2015.1

Dubai international prices (dollar, right)

(Won/liter, period average)

2011 2012 2013 Annual Annual Annual Jan

Feb

Mar

Apr

May

2014 Jun Jul

Aug

Sep

Oct

Nov

Dec

2015 Jan

Gasoline prices 1,929.3 1,985.8 1,924.5 1,886.4 1,880.7 1,880.8 1,875.9 1,869.5 1,861.7 1,856.7 1,842.0 1,817.1 1,781.1 1,730.2 1,652.2 1,564.8 Diesel prices

1,745.7 1,806.3 1,729.6 1,705.1 1,698.5 1,696.0 1,688.9 1,680.9 1,670.8 1,661.8 1,644.5 1,620.9 1,585.0 1,534.3 1,461.0 1,330.5

Source: Korea National Oil Corporation

International grain prices declined in January despite Russia’s decision to curb wheat exports, as the US Department of Agriculture raised production and inventory estimates with many areas benefitting from favorable weather. Russia, faced with rising domestic grain prices due to the weak ruble, introduced a duty on wheat exports in February.

International grain price increases in January (m-o-m, %) wheat (-11.6), corn (-1.9), soybeans (-3.0)

Nonferrous metal prices fell month-on-month as international oil prices fell, and also as inventories were expected to rise due to growing uncertainties regarding the Chinese and eurozone economies.

Nonferrous metal price increases in January (m-o-m, %) copper (-9.5), nickel (-7.2), lead (-5.5), aluminum (-5.5), zinc (-2.8), tin (-1.8)

Reuters index* 2011 2012 2013 Annual Annual Annual 3,062

3,006

2,774

(Period average)

Jan

Feb

Mar

Apr

May

2014 Jun Jul

Aug

Sep

Oct

Nov

Dec

2015 Jan

2,574 2,586 2,641 2,650 2,608 2,569 2,548 2,510 2,415 2,395 2,407 2,388 2,377

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

37

ECONOMIC BULLETIN • Feb 2015

International commodity prices

Sources: Bloomberg (CRB), The Bank of Korea (Reuters Index)

* 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.

470

4000

430 390

3000

350 310

2000

270 230

1000

190 150

0 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

CRB (left)

2014.1

2015.1

Reuters index (right)

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

Apartment sales prices rose 0.1 percent in the Seoul metropolitan area, which includes Seoul (up 0.1%) and Gyeonggi Province (up 0.2%).

Apartment sales prices in areas excluding the Seoul metropolitan area rose 0.2 percent. Apartment prices in the five metropolitan cities and the eight provinces were up 0.2 percent and 0.1 percent, respectively.

Apartment sales price increase in five metropolitan cities (m-o-m, %) Busan (0.1), Daegu (0.5), Gwangju (0.3), Daejeon (0.0), Ulsan (0.1)

Nationwide apartment sales prices

(Percentage change from previous period)

2010 2011 2012 2013 Annual Annual Annual Annual Annual Jun

Jul

2014 Aug Sep

Oct

Nov

Dec

2015 Jan

Nationwide

1.9

6.9

0.0

0.3

1.7

0.0

0.0

0.1

0.2

0.2

0.2

0.1

0.1

Seoul metropolitan area

-1.7

0.5

-3.0

-1.1

1.5

0.0

0.0

0.1

0.3

0.3

0.2

0.1

0.1

Seoul

-1.2

0.3

-2.9

-1.4

1.1

-0.1

0.0

0.0

0.2

0.2

0.1

0.0

0.1

Gangnam¹

-1.0

0.3

-3.5

-1.1

1.2

-0.1

0.0

0.0

0.3

0.3

0.1

0.0

0.1

Gangbuk²

-1.4

0.3

-2.3

-1.7

1.1

0.0

-0.1

0.1

0.1

0.2

0.1

0.0

0.0

Areas excluding the Seoul metropolitan area

6.4

15.1

3.1

1.7

1.9

0.1

0.1

0.1

0.2

0.2

0.2

0.2

0.2

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

38

The Green Book : Current Economic Trends

Apartment sales prices by region 3

Source: Korea Appraisal Board

(m‐o‐m, %)

2

1

0

-1 2009.1

7

2010.1

7

2011.1

Nationwide

7

2012.1

7

2013.1

7

Seoul metropolitan area

2014.1

7

2015.1

Areas excluding Seoul metropolitan area

Nationwide apartment rental prices in January rose 0.3 percent month-on-month.

Rental prices rose 0.4 percent in the Seoul metropolitan area and 0.2 percent in regions excluding the Seoul metropolitan area.

Apartment rental price increase in major districts in Seoul (m-o-m, %) Gangdong (1.2), Gangnam (0.4), Seocho (0.3), Songpa (0.4), Guro (0.5)

Nationwide apartment rental prices Nationwide Seoul metropolitan area Seoul Gangnam¹ Gangbuk²

2010 Annual 7.1 6.3 6.4 7.6 5.1

Areas excluding the Seoul metropolitan area

9.2

(Percentage change from previous period)

2011 2012 2013 Annual Annual Annual Annual Jun 12.3 3.5 4.7 3.4 0.1 11.0 2.1 6.2 4.7 0.1 10.8 2.1 6.6 3.6 0.0 11.1 2.4 6.7 3.3 0.0 10.6 1.8 6.4 3.8 0.1 14.5

4.6

3.3

2.2

0.1

Jul 0.1 0.2 0.1 0.1 0.1

2014 Aug Sep 0.2 0.3 0.2 0.5 0.1 0.3 0.2 0.3 0.1 0.3

Oct 0.3 0.4 0.4 0.4 0.4

Nov 0.3 0.4 0.3 0.3 0.3

Dec 0.3 0.3 0.3 0.3 0.2

2015 Jan 0.3 0.4 0.3 0.4 0.2

0.1

0.1

0.2

0.2

0.2

0.2

0.2

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

Apartment rental prices by region Source: Korea Appraisal Board 3

(m‐o‐m, %)

2

1

0

-1 -2 2009.1

Nationwide

7

2010.1

7

2001.1

7

2012.1

Seoul metropolitan area

7

2013.1

7

2014.1

7

2015.1

Areas excluding Seoul metropolitan area

39

ECONOMIC BULLETIN • Feb 2015

Apartment sales transactions in December increased 0.1 percent from 91,050 transactions in the previous month to 91,130 transactions, but were down 2.2 percent from a year earlier (93,188).

Monthly apartment transaction volume 160

Source: Ministry of Land, Infrastructure and Transport

(thousands)

140 120 100 80 60 40 20 0 2009.1

7

2010.1

7

2011.1

Nationwide

7

2012.1

7

2013.1

7

Seoul metropolitan area

2014.1

7

2015.1

Areas excluding Seoul metropolitan area

Apartment sales transactions

(Thousands)

2009 2010 2011 2012 2013 2014 Annual1 Annual1 Annual1 Annual1 Nov Dec Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Nationwide

73

67

82

61

85

93

79

90

93

78

74

77

76

87

109

91

91

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

12.2 Land market Land prices rose 0.17 percent month-on-month nationwide in December. Land prices rose 1.96 percent in 2014, posting the highest growth rate since the 2008 financial crisis.

Land prices rose 0.14 percent in the Seoul metropolitan area, which includes Seoul (up 0.18%) and Incheon (up 0.16%).

Land price increases in Seoul metropolitan area (m-o-m, %) 0.15 (May 2014) → 0.13 (Jun) → 0.15 (Jul) → 0.13 (Aug) → 0.19 (Sep) → 0.20 (Oct) → 0.14 (Nov) → 0.14 (Dec)

Land price growth accelerated in areas excluding the Seoul metropolitan area (up 0.20%), which include Busan (up 0.24%), Daejeon (up 0.17%), Sejong (up 0.26%) and North Gyeongsang Province (up 0.24%).

Land price increases in areas excluding Seoul metropolitan area (m-o-m, %) 0.15 (May 2014) → 0.18 (Jun) → 0.20 (Jul) → 0.15 (Aug) → 0.18 (Sep) → 0.20 (Oct) → 0.18 (Nov) → 0.20 (Dec)

40

The Green Book : Current Economic Trends

Land prices by region

(Percentage change from previous period)

2008 2009 2010 2011 2012 2013 Annual Annual Annual Annual Annual Annual Q2 Q3

Q4 Annual Q2

Q3

2014 Q4

Oct

Nov

Dec

Nationwide

-0.31

0.96

1.05

1.17

0.87

1.14 0.37 0.10 0.46

1.96 0.48 0.49 0.53 0.20 0.16 0.17

Seoul

-1.00

1.40

0.53

0.97

0.33

1.21 0.41 0.08 0.61

2.66 0.59 0.69 0.67 0.29 0.20 0.18

Gyeonggi

-0.26

1.22

1.49

1.47

0.97

0.91 0.33 0.07 0.34

1.24 0.37 0.27 0.33 0.12 0.10 0.11

Incheon

1.37

1.99

1.43

0.66

0.36

0.87 0.37 0.07 0.23

1.35 0.25 0.32 0.40 0.15 0.08 0.16

Source: Korea Appraisal Board

Land prices by region 18

Source: Korea Appraisal Board

(%)

15 12 9 6 3 0 -3 -6 -9 -12 -15 -18 1994

1995

1996

1997

1998

1999

2000

National average

2001

2002

2004

2005

2006

2007

Metropolitan city

Land and consumer prices since 1970s 70

2003

2008

2009

2010

2011

2012

City

2013

2014

County

Source: Korea Appraisal Board

(y�o�y, %)

60 50 40 30 20 10 0 -10 -20 1974

1977

Land price inflation

1980

1983

1986

1989

1992

1995

1998

2001

2004

2007

2010

2013

Consumer price inflation

41

ECONOMIC BULLETIN • Feb 2015

There were 257,000 land transactions in December, up 12.7 percent from the previous month and 9.1 percent from 236,000 a year earlier.

Land transactions rose nationwide, led by Busan (up 19.5%, m-o-m), Ulsan (up 26.7%, m-o-m), North Gyeongsang Province (up 42.9%, m-o-m) and South Gyeongsang Province (up 33.0%, m-o-m).

Vacant land transactions, which accounted for 38.7 percent of the total land transactions, rose 22.8 percent month-on-month to 100,000 and 13.2 percent from 88,000 a year earlier.

Land transactions

(Land lots, thousands)

2008 2009 2010 2011 2012 2013 2014 Annual¹ Annual¹ Annual¹ Annual¹ Annual¹ Annual¹ Nov Dec Annual¹ Apr May Jun Jul Aug Sep Oct Nov Dec Nationwide 208

203

187

208

170

187

Seoul

26

22

16

18

13

17

201 236 19

22

220 22

233 207 199 219 204 214 258 228 257 22

18

18

21

21

23

29

25

23

Gyeonggi

45

46

41

43

33

37

41

50

46

49

42

39

45

42

46

57

50

53

Incheon

13

10

8

10

8

8

9

9

10

11

9

9

8

9

10

13

11

9

1. Monthly average Source: Korea Land & Housing Corporation

Land transaction volume 500,000

Source: Korea Appraisal Board

(thousand m²)

400,000

300,000

200,000

100,000

0 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

Seoul metropolitan area

2011.1

2012.1

2013.1

2014.1

Areas excluding Seoul metropolitan area

13. Composite indices of business cycle indicators Industrial output in December rose 0.9 percent month-on-month and 1.8 percent year-on-year. Output fell in construction (down 0.8%, m-o-m), but rose in mining & manufacturing (up 3.0%, m-o-m) and public administration (up 0.1%, m-o-m). Output remained unchanged in services.

42

The Green Book : Current Economic Trends

Index of all industry production 20

Source: Statistics Korea (industrial activity trends)

(%)

15

10

5

0

-5

-10

-15 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

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

2013.1

2014.1

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

2014 May

Jun

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

-1.0

2.3

(y-o-y, %)

-0.6

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

Jul

Aug

Sep

Oct1

Nov1

Dec1

0.3

-0.6

-0.8

0.4

0.0

0.9

1.7

2.7

0.5

2.0

0.2

-0.4

1.8

0.0

0.3

0.4

0.8

0.2

0.0

0.2

0.7

100.1

100.1

100.2

100.5

100.3

100.0

99.8

100.1

(m-o-m, p)

-0.4

0.0

0.1

0.3

-0.2

-0.3

-0.2

0.3

Leading composite index (m-o-m, %)

0.3

0.6

0.4

1.2

1.1

0.6

0.3

0.6

101.3

101.6

101.6

102.4

103.1

103.3

103.3

103.5

-0.1

0.3

0.0

0.8

0.7

0.2

0.0

0.2

Cyclical indicator of leading composite index (m-o-m, p) 1. Preliminary

The cyclical indicator of the coincident composite index rose 0.3 points month-on-month in December. All components of the coincident composite index rose, except for the value of construction completed.

Components of the coincident composite index in December (m-o-m) mining & manufacturing production (0.8%), service output (0.3%), retail sales (1.3%), domestic shipments (0.6%), imports (2.2%), nonfarm payroll employment (0.1%), value of construction completed (-0.5%)

43

ECONOMIC BULLETIN • Feb 2015

Cyclical indicator of coincident composite index 110

Source: Statistics Korea (industrial activity trends)

(points)

100

90 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

The cyclical indicator of the leading composite index rose 0.2 points. Five components of the leading composite index, such as the consumer expectations index and domestic shipments of machinery, declined, while four others, such as the inventory circulation indicator, ratio of export to import prices and ratio of job openings to job seekers, rose.

Components of the leading composite index in December (m-o-m) inventory circulation indicator (2.1%p), ratio of export to import prices (2.2%), international commodity prices (2.8%), ratio of job openings to job seekers (2.7%p), consumer expectations index (-2.0p), domestic shipments of machinery (-2.0%), value of construction orders received (-13.0%), KOSPI (-1.7%), spreads between long & short term interest rates (-0.01%p)

Cyclical indicator of leading composite index 110

Source: Statistics Korea (industrial activity trends)

(points)

100

90 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

44

Economic News Briefing

Korea Grows 0.4% in Q4 (Advanced) Government to Encourage Employee Stock Ownership Program Corporate Investment Boosting Program Starts February Government Budget for Software up 23% in 2015 Financial Regulators to Support Fintech Venture Firms Exceed 30,000 for First Time Korea, China Agree to Work on Eurasia Initiative G20 Agrees to Build Confidence and Reaffirms Effective Policy Coordination Korean FDI Down 1.5% in 2014

Economic News Briefing

45

ECONOMIC BULLETIN • Feb 2015

building construction and civil engineering works decreased. Intellectual property investment rose 0.1 percent, led by investment in software.

Korea Grows 0.4% in Q4 (Advanced) Korea’s real gross domestic product (GDP) expanded 0.4 percent quarter-on-quarter and 2.7 percent year-onyear in the fourth quarter of 2014, according to advanced data released by the Bank of Korea (BOK) on January 23. For the whole year of 2014, the Korean economy grew 3.3 percent.

Exports declined 0.3 percent, led by LCD products and vessels, and imports were down 0.6 percent, led by metal products.

Manufacturing declined 0.3 percent, led by primary metals and chemical products, and construction fell 3.3 percent, led by civil engineering works. Services grew 0.7 percent, as gains in wholesale & retail, transportation & storage, financial & insurance services and healthcare & social welfare services offset declines in communications services.

Government to Encourage Employee Stock Ownership Program The government announced on February 2 measures to revitalize the employee stock ownership program. The employee stock ownership program, which allows workers to acquire stocks in their company, was introduced in 1968, but only 0.6 percent of all companies have adopted the program, and among the companies that did adopt the program only 37 percent actually have employees that own corporate stocks.

On the expenditure side, private consumption rose 0.5 percent, led by durable and nondurable goods. Facility investment grew 5.6 percent, as both transportation equipment and machinery investment increased, while construction investment declined 9.2 percent, as both

GDP by production and expenditure*

(Percentage change from previous period) 1

20141

2013

GDP

Annual

Q1

Q2

Q3

Q4

Annual

Q1

Q2

Q3

Q4

3.0

0.6 (2.1)2

1.0 (2.7)2

1.1 (3.4)2

0.9 (3.7)2

3.3

0.9 (3.9)2

0.5 (3.5)2

0.9 (3.2)2

0.4 (2.7) 2

Agriculture, forestry & fisheries

5.8

-4.1

1.9

4.6

7.4

3.0

-4.4

-3.7

2.5

7.6

Manufacturing

3.3

1.2

1.2

1.2

0.8

4.0

2.2

0.9

-0.8

-0.3 -3.3

Construction

3.6

2.7

1.7

1.9

-2.4

2.2

1.2

0.2

1.1

Services3

2.9

0.5

1.2

0.7

0.8

0.4

0.6

0.6

1.4

0.7

Private consumption

2.0

-0.1

0.7

1.0

0.6

1.7

0.2

-0.3

1.0

0.5

Government consumption

2.7

0.5

1.6

0.4

0.9

2.8

0.0

0.3

2.3

0.5

Facility investment

-1.5

1.5

1.0

2.7

5.6

5.9

-1.9

1.1

-0.5

5.6

Construction investment

6.7

6.5

4.6

0.2

-5.2

1.1

5.1

0.4

2.5

-9.2

Intellectual property investment

7.3

9.4

-2.2

1.2

1.8

5.3

6.5

-3.6

0.6

0.1

Exports Imports

4.3 1.6

0.2 0.6

2.6 1.8

-1.1 -0.4

1.4 2.9

2.8 2.0

1.5 -0.8

1.7 1.1

-2.2 -0.5

-0.3 -0.6

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

46

Economic News Briefing

The government will introduce financial products through which the workers can hedge against the loss from falling stock prices. Also, workers who hold corporate stocks for over six years will be exempt from the earned income tax. Businesses get tax incentives if they use corporate profits to fund the employee stock ownership fund, and high-performing workers can receive stocks as compensation. By encouraging employee stock ownership, the government aims to promote healthy labor-management relationships and increase employee income.

Corporate Investment Boosting Program Starts February The government launched a corporate investment boosting program in February. A total of 30 trillion won has been earmarked for the program in a bid to revive facility investment, which has been stagnating

in recent years due to a rise in investment risk. The government will utilize the funds in various ways, such as co-investing in projects with private companies, or acquiring redeemable preferred shares, convertible bonds and corporate bonds. The program focuses on investment projects in new growth engine industries, including promising service industries, core industries, such as semiconductors, automobiles, machinery and steel, and infrastructure, which are usually too big and risky for a single company.

Government Budget for Software up 23% in 2015 The government is stepping up efforts to promote software this year, with the Ministry of Science, ICT and Future Planning raising the software budget for 2015 by 23 percent from last year to 705.2 billion won. The government will provide support to

Elementary school students are playing with a virtual keyboard at a software camp held at Seoul Science Park on February 5. The Ministry of Science, ICT and Future Planning is stepping up efforts to promote software, which include reinforcing software education in schools.

47

ECONOMIC BULLETIN • Feb 2015

promising software sectors such as the Internet of Things (IoT) and cloud computing, and will help software companies to compete on the global-level, aiming to increase the number of global software companies from 17 in 2013 to 100 in 2020. Software education will be expanded in elementary, middle and high schools in order to make students softwarefriendly from an early age. The government is also running campaigns to educate the public on the importance of software.

Financial Regulators to Support Fintech The Financial Services Commission (FSC) has recently unveiled plans to support the convergence of IT and finance. Financial technology, or fintech, has emerged as a global trend, but until now Korea has not been active in fostering fintech due to regulatory barriers and security concerns. The FSC will change regulations that are focused on offline services, and support the growth of the fintech industry. First, the FSC will give financial and IT companies more freedom to develop innovative financial services by streamlining regulations. Second, the FSC will create a business model for online banking, and seek parliamentary approval for the revision of the Capital Markets Act, which lays the legal foundation for crowd funding. Third, the FSC will support the fintech industry by financing fintech startups and lowering barriers to entry. These measures are expected to benefit consumers by expanding the scope of financial products and services available, as well as making them more accessible.

Venture Firms Exceed 30,000 for First Time The number of venture businesses in Korea exceeded 30,000 for the first time as of January 13,

according to the Small & Medium Business Administration (SMBA) on January 23. Venture firms, which first appeared in the late 1980s, grew in quantity and quality over the years, and have contributed greatly to the economy in terms of creating added value and jobs.

In 2013, the total sales revenue of venture companies amounted to 198.7 trillion won, or 13.9 percent of Korea’s GDP. Venture firms employed 720,000 workers in 2013, or 4.8 percent of the workforce. At the current pace, the number of venture firms will rise to 35,000 and the total sales revenue of these companies will amount to 230 trillion won by 2017.

Korea, China Agree to Work on Eurasia Initiative The 13th Korea-China Finance Ministers’ Meeting was held in Beijing, China on January 29. At the meeting, Korea and China discussed cooperating with regards to macroeconomic policy, industrial investment, new technologies, urbanization, venture investment, air pollution prevention and responding to climate change. The two parties laid the foundation for future cooperation by agreeing to work together on President Park Geun-hye’s Eurasia Initiative, Chinese President Xi Jinping’s One Belt and One Road Project and the Saemangeum Korea-China Economic Cooperation Complex.

G20 Agrees to Build Confidence and Reaffirms Effective Policy Coordination Deputy Prime Minister and Minister of Strategy and Finance Choi Kyung-Hwan attended the G20 Finance Ministers and Central Bank Governors Meeting in Istanbul, Turkey on February 9-10, where the finance

48

Economic News Briefing

G20 finance ministers and central bank governors are posing for a group photo in Istanbul, Turkey on February 10.

ministers and central bank governors discussed policy coordination and structural reform to boost growth. The G20 recognized that its key role is to boost confidence in the global economy through effective implementation of macroeconomic and structural reform. Deputy Prime Minister Choi emphasized the role of the G20 as a confidence multiplier by carrying out structural reform as scheduled.

Regarding the G20’s decision to continue making preemptive assessment on major risk scenarios in the global economy, the Deputy Prime Minister underscored the expansion and development of risk scenario analysis. In the case of a crisis, he proposed three measures: a high-level G20 hotline, a G20 market messaging system and currency swap arrangements.

The G20 also agreed to develop concrete and ambitious investment strategies that will also support the growth initiative. Deputy Prime Minister Choi recognized the governmental efforts to bolster private sector investment in infrastructure, emphasizing a need for

an efficient public-private partnership (PPP) model at the G20 level.

Korean FDI Down 1.5% in 2014 Korean foreign direct investment (FDI) dropped 1.5 percent from US $35.5 billion in 2013 to US $35.07 billion in 2014. By industry, FDI in financial & insurance services (up 78.1%) and real estate & renting (up 2.8%) increased, while investment in manufacturing (down 12.9%) and mining (down 48.0%) decreased. By region, investment in North America (up 59.0%) and the Middle East (up 157.9%) increased, but investment in Asia (down 7.0%), Europe (down 16.8%) and Latin America (down 28.9%) went down. The top five destinations for Korean investment were the US (US $9.2 billion), China (US $3.75 billion), the Cayman Islands (US $2.83 billion), Vietnam (US $2.1 billion) and Canada (US $1.52 billion).

1. National accounts 2. Production, shipment and inventory 3. Production capacity and operation ratio 4. Consumer goods sales index 5. Consumer goods shipment index and consumer sentiment index 6. Machinery orders received and estimated facility investment index 7. Value of construction completed and domestic construction orders received 8. Composite indices of business cycle indicators and BSI 9. Balance of payments (I) 10. Balance of payments (II) 11. Prices 12. Employment 13. Financial indicators 14. Monetary indicators 15. Exchange rates

Statistical Appendices

50

Statistical Appendices

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

Real GDP

Final consumption Agri., fores. & Manufacturing expenditure fisheries

Period

Gross fixed capital formation Construction

Facilities

2006 2007 2008 2009 2010 2011 2012 2013P 2014P

5.2 5.5 2.8 0.7 6.5 3.7 2.3 3.0 3.3

1.6 4.1 5.6 3.2 -4.3 -2.0 -0.9 5.8 3.0

7.7 8.4 3.7 -0.5 13.7 6.5 2.4 3.3 4.0

5.2 5.3 2.2 1.3 4.3 2.7 2.2 2.2 2.0

3.6 5.0 -0.9 0.3 5.5 0.8 -0.5 4.2 3.3

0.7 1.5 -2.7 3.5 -3.7 -3.4 -3.9 6.7 1.1

8.4 9.7 -0.2 -7.7 22.0 4.7 0.1 -1.5 5.9

2006 Ⅰ Ⅱ Ⅲ Ⅳ

6.3 4.7 2.1 4.8

4.1 -0.2 -1.3 4.2

9.6 7.4 8.2 6.1

5.9 5.1 4.7 5.0

3.0 0.7 4.3 5.9

1.7 -4.1 -0.3 5.4

4.6 8.8 13.5 6.8

2007 Ⅰ Ⅱ Ⅲ Ⅳ

4.7 5.6 5.1 6.3

1.7 7.0 8.1 -0.6

6.5 8.6 7.4 10.9

5.2 5.6 5.5 5.0

6.6 6.3 2.1 5.2

3.8 2.0 0.0 0.9

10.3 14.2 2.1 12.2

2008 Ⅰ Ⅱ Ⅲ Ⅳ

5.5 4.1 3.9 -1.6

7.7 4.6 4.3 6.4

8.2 7.1 6.1 -5.3

4.7 3.1 2.4 -1.4

1.8 0.9 2.3 -7.0

-2.0 -0.7 0.2 -7.3

7.0 1.4 5.6 -13.0

2009 Ⅰ Ⅱ Ⅲ Ⅳ

-1.9 -1.1 0.9 4.8

2.5 0.0 5.0 5.0

-8.4 -5.7 1.6 10.4

-1.9 0.9 1.7 4.5

-5.4 -1.1 0.8 5.8

1.9 4.4 3.1 4.1

-19.4 -13.6 -5.9 9.5

2010 Ⅰ Ⅱ Ⅲ Ⅳ

7.2 7.4 5.4 6.0

0.0 -2.2 -7.8 -5.7

16.1 17.2 10.1 11.9

6.2 3.6 3.9 3.4

12.0 6.8 3.8 1.2

1.6 -4.8 -4.8 -5.2

27.6 28.8 20.6 12.9

2011 Ⅰ Ⅱ Ⅲ Ⅳ

4.9 3.6 3.3 3.1

-9.2 -2.4 -5.8 7.0

11.4 6.5 5.6 3.4

3.3 3.3 2.8 1.7

-0.7 2.5 1.7 -0.3

-8.3 -2.5 -2.1 -2.0

8.2 8.3 3.4 -0.9

2012 Ⅰ Ⅱ Ⅲ Ⅳ

2.6 2.4 2.1 2.1

-0.3 -2.2 -0.1 -0.7

2.7 2.8 2.0 2.0

2.2 1.3 2.7 2.7

6.2 -2.3 -1.0 -3.4

-0.2 -5.4 -2.7 -6.2

11.1 -1.8 -4.2 -4.0

2013PⅠ Ⅱ Ⅲ Ⅳ

2.1 2.7 3.4 3.7

0.4 2.9 7.4 9.9

1.8 2.8 3.8 4.5

1.6 2.4 2.3 2.4

-2.6 5.0 5.9 7.8

1.9 9.8 8.8 5.4

-12.7 -3.9 1.5 10.9

2014PⅠ Ⅱ Ⅲ Ⅳ

3.9 3.5 3.2 3.3

7.7 3.4 0.6 1.7

5.6 5.3 3.1 2.0

2.6 1.5 2.0 1.8

5.9 3.4 3.7 0.9

4.3 0.2 3.0 -1.8

7.3 7.7 3.9 4.2

P: Preliminary Source: The Bank of Korea

51

ECONOMIC BULLETIN • Feb 2015

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

Period

Production index

Shipment index

y-o-y change(%)

Inventory index

y-o-y change(%)

Service production index

y-o-y change(%)

y-o-y change(%)

2012 2013 2014P

107.4 107.7 107.7

1.3 0.3 0.0

107.2 107.6 107.4

1.5 0.4 -0.2

125.2 131.4 127.6

4.4 5.0 -2.9

104.8 106.3 108.6

1.6 1.4 2.2

2012 Ⅰ Ⅱ Ⅲ Ⅳ

106.6 108.9 103.7 110.6

3.9 1.3 -0.3 0.8

106.6 108.4 103.8 109.8

3.1 1.7 0.6 0.5

117.7 114.8 114.5 125.2

12.2 4.6 2.0 4.4

102.0 104.9 104.8 107.6

2.6 1.5 1.6 0.8

2013 Ⅰ Ⅱ Ⅲ Ⅳ

105.7 108.9 103.9 112.5

-0.8 0.0 0.2 1.9

105.7 108.9 104.0 111.8

-0.8 0.5 0.2 2.0

123.1 119.4 125.0 131.4

4.6 4.0 9.2 6.2

102.9 106.7 105.6 109.9

0.9 1.7 0.8 2.1

2014 Ⅰ Ⅱ Ⅲ ⅣP

106.4 109.2 105.0 110.2

0.7 0.3 1.1 -2.0

105.9 108.7 104.3 110.5

0.2 -0.2 0.3 -1.2

130.1 128.6 129.3 127.6

5.7 7.7 3.4 -2.9

104.9 108.2 108.3 112.9

1.9 1.4 2.6 2.7

2012 1 2 3 4 5 6 7 8 9 10 11 12

102.0 106.1 111.6 106.8 110.7 109.2 106.0 100.3 104.7 108.8 112.6 110.3

-3.1 15.3 0.9 0.0 3.3 0.7 0.0 -1.3 0.3 -0.8 3.0 0.1

102.8 106.1 111.0 106.2 109.9 109.2 105.2 99.9 106.2 108.2 111.0 110.1

-2.8 13.5 0.1 -0.6 3.7 2.0 1.0 -1.4 1.9 -0.9 2.6 -0.3

119.3 117.4 117.7 116.5 118.2 114.8 115.4 119.3 114.5 116.1 121.3 125.2

14.2 14.1 12.2 10.2 8.8 4.6 3.2 6.5 2.0 0.6 3.1 4.4

100.3 99.9 105.7 102.8 105.9 105.9 104.8 103.9 105.7 104.7 105.5 112.7

0.3 6.2 1.5 0.7 2.4 1.2 1.6 0.8 2.2 0.5 1.5 0.7

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

110.9 96.9 109.2 109.1 110.2 107.4 107.5 103.5 100.7 112.7 111.8 113.0

8.7 -8.7 -2.2 2.2 -0.5 -1.6 1.4 3.2 -3.8 3.6 -0.7 2.4

109.5 97.8 109.8 108.8 109.8 108.1 106.6 104.4 100.9 112.0 111.3 112.1

6.5 -7.8 -1.1 2.4 -0.1 -1.0 1.3 4.5 -5.0 3.5 0.3 1.8

128.3 124.6 123.1 121.0 122.2 119.4 124.2 123.8 125.0 126.9 129.2 131.4

7.5 6.1 4.6 3.9 3.4 4.0 7.6 3.8 9.2 9.3 6.5 5.0

102.1 100.2 106.4 105.4 107.7 107.0 105.6 105.6 105.5 107.7 107.4 114.7

1.8 0.3 0.7 2.5 1.7 1.0 0.8 1.6 -0.2 2.9 1.8 1.8

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

106.1 100.7 112.3 111.8 107.9 107.9 111.8 100.6 102.6 109.2 107.8 113.5

-4.3 3.9 2.8 2.5 -2.1 0.5 4.0 -2.8 1.9 -3.1 -3.6 0.4

104.5 100.8 112.5 110.8 108.1 107.3 108.9 101.0 102.8 108.5 108.7 114.3

-4.6 3.1 2.5 1.8 -1.5 -0.7 2.2 -3.3 1.9 -3.1 -2.3 2.0

133.1 129.3 130.1 131.3 129.8 128.6 133.0 130.3 129.3 130.2 129.5 127.6

3.7 3.8 5.7 8.5 6.2 7.7 7.1 5.3 3.4 2.6 0.2 -2.9

104.3 101.3 109.0 106.4 108.5 109.7 108.4 107.7 108.8 110.7 109.9 118.1

2.2 1.1 2.4 0.9 0.7 2.5 2.7 2.0 3.1 2.8 2.3 3.0

P: Preliminary Source: Statistics Korea

52

Statistical Appendices

3. Production capacity and operation ratio (year-on-year change, %, chained 2010 year prices)

Period

Production capacity index (2010=100)

Operation ratio index (2010=100)

y-o-y change (%)

y-o-y change (%)

Average operation ratio (%)

2012 2013 2014P

106.9 108.7 110.1

2.1 1.7 1.3

97.5 94.8 94.0

-2.7 -2.8 -0.8

78.5 76.2 76.0

2012 Ⅰ Ⅱ Ⅲ Ⅳ

106.3 106.7 107.0 107.5

2.7 2.1 1.9 1.8

97.5 101.0 93.2 98.3

-0.3 -2.4 -4.6 -3.5

79.9 79.5 76.6 78.0

2013 Ⅰ Ⅱ Ⅲ Ⅳ

108.2 108.4 108.9 109.3

1.8 1.6 1.8 1.7

93.3 97.4 90.5 97.9

-4.3 -3.6 -2.9 -0.4

77.3 75.9 75.1 76.5

2014 Ⅰ Ⅱ Ⅲ ⅣP

109.5 109.7 110.5 110.9

1.2 1.2 1.5 1.5

92.5 96.8 91.2 95.5

-0.9 -0.6 0.8 -2.5

77.2 76.3 75.8 74.6

2012 1 2 3 4 5 6 7 8 9 10 11 12

106.2 106.2 106.4 106.6 106.7 106.8 106.7 107.2 107.0 107.3 107.5 107.6

2.9 2.7 2.4 2.1 2.2 2.1 1.8 2.1 1.7 1.4 1.9 1.9

92.5 97.2 102.9 98.9 102.6 101.4 97.2 88.3 94.1 98.1 100.7 96.1

-8.0 11.3 -2.6 -3.6 -0.6 -3.1 -3.5 -6.9 -3.6 -4.6 -1.7 -4.5

80.0 80.4 79.2 79.6 79.9 78.9 78.4 74.3 77.2 77.4 78.3 78.2

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

108.1 108.2 108.2 108.2 108.4 108.6 108.7 109.0 109.0 109.1 109.3 109.6

1.8 1.9 1.7 1.5 1.6 1.7 1.9 1.7 1.9 1.7 1.7 1.9

98.5 84.5 96.8 97.4 99.0 95.9 94.3 90.4 86.7 99.2 97.9 96.7

6.5 -13.1 -5.9 -1.5 -3.5 -5.4 -3.0 2.4 -7.9 1.1 -2.8 0.6

78.8 77.1 75.9 75.9 75.9 75.9 74.8 76.3 74.3 76.2 76.2 77.2

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

109.6 109.5 109.5 109.5 109.7 109.8 110.3 110.5 110.7 110.8 110.8 111.0

1.4 1.2 1.2 1.2 1.2 1.1 1.5 1.4 1.6 1.6 1.4 1.3

91.6 87.2 98.7 99.8 95.6 95.1 98.4 86.4 88.7 95.6 93.8 97.0

-7.0 3.2 2.0 2.5 -3.4 -0.8 4.3 -4.4 2.3 -3.6 -4.2 0.4

78.2 75.8 77.5 77.8 74.6 76.4 78.2 74.0 75.1 73.5 74.2 76.2

P: Preliminary Source: The Bank of Korea

53

ECONOMIC BULLETIN • Feb 2015

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

Period

y-o-y change (%)

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

Nondurable goods y-o-y change (%)

2012 2013 2014P

107.0 107.9 109.6

2.4 0.8 1.6

116.2 116.6 122.6

5.3 0.3 5.1

103.8 105.9 105.1

-0.4 2.0 -0.8

104.1 104.7 105.5

2.0 0.6 0.8

2012 Ⅰ Ⅱ Ⅲ Ⅳ

103.4 106.4 106.5 111.6

2.8 1.4 2.7 2.5

109.4 114.9 118.4 122.0

4.0 2.6 6.4 8.3

99.0 105.5 92.3 118.4

0.6 -0.5 -2.3 0.5

102.6 102.8 107.2 103.8

3.1 1.7 2.8 0.5

2013 Ⅰ Ⅱ Ⅲ Ⅳ

103.7 107.7 107.2 112.9

0.3 1.2 0.7 1.2

110.9 118.2 116.8 120.2

1.4 2.9 -1.4 -1.5

101.7 107.2 95.0 119.6

2.7 1.6 2.9 1.0

101.2 103.0 108.0 106.7

-1.4 0.2 0.7 2.8

2014 Ⅰ Ⅱ Ⅲ ⅣP

106.3 108.5 108.7 115.0

2.5 0.7 1.4 1.9

117.5 121.2 123.3 128.4

6.0 2.5 5.6 6.8

99.9 104.6 95.8 120.2

-1.8 -2.4 0.8 0.5

103.9 104.3 107.4 106.5

2.7 1.3 -0.6 -0.2

2012 1 2 3 4 5 6 7 8 9 10 11 12

107.5 97.8 105.0 103.0 110.1 106.1 108.2 102.3 109.1 109.0 111.6 114.3

2.1 5.5 1.1 0.4 2.6 1.2 3.8 1.3 2.9 1.5 4.1 2.1

107.2 107.2 113.7 107.3 117.3 120.0 125.6 114.0 115.7 117.1 123.1 125.9

3.3 9.8 -0.4 1.0 4.4 2.2 7.4 4.0 7.6 8.0 6.5 10.6

104.7 91.9 100.4 104.8 111.4 100.3 97.3 82.1 97.6 114.8 118.8 121.5

-0.2 2.0 0.1 -1.3 0.8 -0.9 0.9 -5.1 -3.0 -2.0 5.1 -1.4

108.8 96.0 102.9 100.1 106.1 102.1 104.9 105.7 111.1 102.7 103.0 105.8

2.4 4.8 2.2 0.8 2.4 1.6 3.0 2.2 3.2 0.0 2.2 -0.5

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

104.6 99.5 107.0 105.3 110.8 106.9 109.2 104.6 107.7 111.2 113.1 114.5

-2.7 1.7 1.9 2.2 0.6 0.8 0.9 2.2 -1.3 2.0 1.3 0.2

112.2 105.9 114.7 115.0 119.5 120.2 127.4 116.3 106.8 120.4 120.2 120.0

4.7 -1.2 0.9 7.2 1.9 0.2 1.4 2.0 -7.7 2.8 -2.4 -4.7

102.9 93.1 109.2 106.4 113.8 101.5 98.1 87.1 99.9 113.6 123.5 121.8

-1.7 1.3 8.8 1.5 2.2 1.2 0.8 6.1 2.4 -1.0 4.0 0.2

101.7 99.3 102.5 100.3 105.5 103.1 105.5 106.9 111.6 105.9 105.3 108.8

-6.5 3.4 -0.4 0.2 -0.6 1.0 0.6 1.1 0.5 3.1 2.2 2.8

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

110.5 99.1 109.3 105.5 112.0 108.0 109.8 107.0 109.2 111.1 114.2 119.7

5.6 -0.4 2.1 0.2 1.1 1.0 0.5 2.3 1.4 -0.1 1.0 4.5

116.8 117.1 118.6 114.1 121.7 127.6 131.2 118.4 120.4 118.7 128.6 137.9

4.1 10.6 3.4 -0.8 1.8 6.2 3.0 1.8 12.7 -1.4 7.0 14.9

100.2 91.6 107.9 105.4 111.3 97.2 95.2 91.1 101.1 115.8 120.2 124.6

-2.6 -1.6 -1.2 -0.9 -2.2 -4.2 -3.0 4.6 1.2 1.9 -2.7 2.3

112.1 94.0 105.5 101.5 107.8 103.6 106.1 108.6 107.5 105.5 104.8 109.1

10.2 -5.3 2.9 1.2 2.2 0.5 0.6 1.6 -3.7 -0.4 -0.5 0.3

P: Preliminary Source: Statistics Korea

54

Statistical Appendices

5. Consumer goods shipment index and consumer sentiment index Domestic consumer goods shipment index (2010=100) Durable goods Nondurable goods y-o-y y-o-y y-o-y change (%) change (%) change (%)

Period

Consumer sentiment index

2012 2013 2014P

102.5 101.9 101.3

1.6 -0.6 -0.6

102.8 103.1 102.1

2.5 0.3 -1.0

102.4 101.4 101.0

1.2 -1.0 -0.4

-

2012 Ⅰ Ⅱ Ⅲ Ⅳ

100.8 99.9 103.5 106.0

-0.2 2.0 2.0 2.6

97.8 99.1 102.5 112.0

-1.7 -1.6 1.6 11.9

102.0 100.2 103.9 103.4

0.4 3.5 2.2 -1.1

-

2013 Ⅰ Ⅱ Ⅲ Ⅳ

102.8 98.4 102.1 104.5

2.0 -1.5 -1.4 -1.4

108.0 100.6 102.3 101.5

10.4 1.5 -0.2 -9.4

100.5 97.4 101.9 105.8

-1.5 -2.8 -1.9 2.3

-

2014 Ⅰ Ⅱ Ⅲ ⅣP

100.4 99.9 101.8 103.3

-2.3 1.5 -0.3 -1.1

103.2 102.6 100.1 102.6

-4.4 2.0 -2.2 1.1

99.2 98.7 102.5 103.5

-1.3 1.3 0.6 -2.2

-

2012 1 2 3 4 5 6 7 8 9 10 11 12

100.6 98.6 103.1 99.2 101.6 98.9 102.8 101.5 106.1 106.6 105.7 105.7

-7.0 10.9 -2.6 0.9 5.9 -0.6 2.4 -0.8 4.3 1.7 4.7 1.5

92.5 98.3 102.5 94.1 100.4 102.8 105.3 98.4 103.9 108.5 110.9 116.5

-8.3 6.0 -2.4 -3.6 1.2 -2.4 0.7 0.1 4.1 8.0 12.0 15.5

104.0 98.7 103.3 101.3 102.1 97.3 101.8 102.9 107.0 105.7 103.5 101.1

-6.6 13.1 -2.6 2.6 8.0 0.2 3.4 -1.1 4.4 -0.8 1.6 -4.1

98 102 102 106 106 101 100 101 99 100 100 99

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

108.4 96.7 103.2 99.1 99.3 96.7 103.2 103.7 99.3 108.7 102.8 102.0

7.8 -1.9 0.1 -0.1 -2.3 -2.2 0.4 2.2 -6.4 2.0 -2.7 -3.5

110.4 106.1 107.6 97.9 101.3 102.6 108.8 103.6 94.6 104.3 102.9 97.4

19.4 7.9 5.0 4.0 0.9 -0.2 3.3 5.3 -9.0 -3.9 -7.2 -16.4

107.5 92.6 101.3 99.6 98.5 94.1 100.8 103.7 101.3 110.6 102.7 104.0

3.4 -6.2 -1.9 -1.7 -3.5 -3.3 -1.0 0.8 -5.3 4.6 -0.8 2.8

102 102 104 102 104 105 105 105 102 106 107 107

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

102.2 96.3 102.6 101.2 99.6 98.9 104.2 99.7 101.6 104.5 100.1 105.2

-5.7 -0.4 -0.6 2.1 0.3 2.3 1.0 -3.9 2.3 -3.9 -2.6 3.1

99.8 106.5 103.3 97.8 103.4 106.7 106.8 94.2 99.4 99.0 102.2 106.6

-9.6 0.4 -4.0 -0.1 2.1 4.0 -1.8 -9.1 5.1 -5.1 -0.7 9.4

103.3 91.9 102.3 102.7 97.9 95.5 103.1 102.0 102.5 106.8 99.2 104.6

-3.9 -0.8 1.0 3.1 -0.6 1.5 2.3 -1.6 1.2 -3.4 -3.4 0.6

109 108 108 108 105 107 105 107 107 105 103 101

2015 1

-

-

-

102

P: Preliminary Source: Statistics Korea

-

-

-

55

ECONOMIC BULLETIN • Feb 2015

6. Machinery orders received and estimated facility investment index Domestic machinery orders received excluding ship (billion won, constant value) Total Public Private Estimated facility investment index y-o-y y-o-y y-o-y y-o-y change (%) (2010=100) change (%) change (%) change (%)

Period 2012 2013 2014P

21,648 23,105 26,646

-13.9 6.7 15.3

2,142 2,580 5,008

-11.0 20.5 94.1

19,506 20,524 21,638

-14.2 5.2 5.4

100.6 99.3 103.9

-2.8 -1.3 4.6

2012 Ⅰ Ⅱ Ⅲ Ⅳ

6,310 5,391 5,036 4,910

-1.1 -19.8 -11.1 -23.0

810 285 579 468

126.1 -59.7 86.7 -54.6

5,500 5,106 4,458 4,442

-8.7 -15.1 -16.8 -16.9

105.0 104.8 96.2 96.4

8.2 -4.2 -7.9 -6.4

2013 Ⅰ Ⅱ Ⅲ Ⅳ

5,592 5,867 5,148 6,498

-11.4 8.8 2.2 32.4

429 554 522 1,075

-47.0 94.2 -9.7 129.7

5,163 5,313 4,625 5,423

-6.1 4.0 3.8 22.1

91.2 100.6 98.8 106.4

-13.1 -4.0 2.7 10.4

2014 Ⅰ Ⅱ Ⅲ ⅣP

6,594 6,126 7,732 6,194

17.9 4.4 50.2 -4.7

1,221 305 2,708 774

184.6 -45.0 418.5 -28.0

5,373 5,821 5,024 5,419

4.1 9.6 8.6 -0.1

96.6 106.8 100.3 111.8

5.9 6.2 1.5 5.1

2012 1 2 3 4 5 6 7 8 9 10 11 12

1,933 2,541 1,836 1,845 1,830 1,716 1,835 1,509 1,693 1,511 1,656 1,743

-0.8 25.1 -23.6 -4.4 -14.4 -35.4 -9.4 -14.2 -10 -22.5 -27.8 -18.3

52 695 63 56 39 190 310 169 100 86 127 255

-22.2 829.0 -70.9 -10.3 -72.8 -62.2 135.5 105.9 3.5 -72.3 -75.8 31.2

1,881 1,846 1,773 1,789 1,791 1,526 1,525 1,339 1,593 1,425 1,529 1,488

0.0 -5.7 -18.9 -4.3 -10.2 -29.1 -19.5 -20.1 -10.7 -13.1 -13.5 -23.3

97.7 109.1 108.2 106.2 105.8 102.3 105.4 90.1 93.1 94.5 92.4 102.2

5.6 26.4 -3.5 3.0 -4.9 -10.2 -1.6 -16.5 -5.5 1.1 -10 -9.3

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

1,847 1,666 2,079 1,846 2,127 1,894 1,935 1,623 1,589 2,606 2,109 1,784

-4.4 -34.4 13.2 0 16.2 10.4 5.5 7.6 -6.1 72.4 27.4 2.4

139 168 121 92 250 212 359 92 71 788 163 124

169.8 -75.8 92.2 63.8 542.9 11.5 15.8 -45.4 -28.5 815.4 28.2 -51.4

1,708 1,498 1,957 1,754 1,877 1,682 1,576 1,531 1,518 1,818 1,946 1,660

-9.2 -18.8 10.4 -2.0 4.8 10.2 3.4 14.3 -4.7 27.5 27.3 11.6

89.8 83.5 100.4 98.2 101.6 102.0 108.0 100.1 88.2 108.9 101.4 108.9

-8.1 -23.5 -7.2 -7.5 -4 -0.3 2.5 11.1 -5.3 15.2 9.7 6.6

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

1,716 1,848 3,029 2,283 1,842 2,001 1,802 4,097 1,833 1,942 2,355 1,897

-7.1 10.9 45.7 23.7 -13.4 5.7 -6.9 152.3 15.3 -25.5 11.7 6.3

88 120 1,013 97 116 92 89 2,541 79 211 428 136

-36.9 -28.8 735.6 5.1 -53.4 -56.7 -75.3 2,653.2 10.6 -73.2 162.6 9.5

1,628 1,728 2,016 2,187 1,726 1,910 1,713 1,556 1,754 1,731 1,928 1,761

-4.7 15.4 3.0 24.7 -8.1 13.6 8.7 1.6 15.6 -4.8 -0.9 6.1

88.4 93.8 107.6 108.7 107.2 104.4 111.1 90.2 99.7 99.4 112.1 123.9

-1.6 12.3 7.2 10.7 5.5 2.4 2.9 -9.9 13.0 -8.7 10.6 13.8

P: Preliminary Source: Statistics Korea

56

Statistical Appendices

7. Value of construction completed and domestic construction orders received Period

Type of order Type of order Domestic Value of construction construction Public Private Public Private orders y-o-y completed y-o-y received change (%) y-o-y y-o-y y-o-y y-o-y (Total) change (%) change (%) change (%) change (%) change (%) (Total)

2012 2013 2014p

88,713 97,938 98,255

-3.3 10.4 0.3

33,807 34,532 31,963

-3.7 2.1 -7.4

50,622 59,492 62,261

-2.0 17.5 4.7

89,395 75,644 88,423

-6.2 -15.4 16.8

26,071 24,574 26,568

-8.9 -5.7 7.9

59,811 48,888 59,951

-3.3 -18.3 22.6

2012 Ⅰ Ⅱ Ⅲ Ⅳ

19,275 22,410 21,351 25,676

0.0 -6.8 -0.3 -4.8

7,442 8,892 7,598 9,876

1.6 -4.3 -1.1 -8.8

10,893 12,440 12,676 14,613

-1.2 -6.7 0.6 -0.6

22,671 25,732 18,395 22,596

38.8 1.6 -10.0 -32.0

5,655 5,570 5,401 9,443

37.3 -11.7 -19.5 -17.8

16,309 19,100 12,522 11,877

46.8 8.2 -2.7 -41.2

2013 Ⅰ Ⅱ Ⅲ Ⅳ

20,145 25,707 23,679 28,407

4.5 14.7 10.9 10.6

7,005 9,345 8,083 10,099

-5.9 5.1 6.4 2.3

12,375 15,377 14,674 17,066

13.6 23.6 15.8 16.8

13,425 18,143 16,454 27,621

-40.8 -29.5 -10.6 22.2

4,289 5,348 4,910 10,025

-24.1 -4.0 -9.1 6.2

8,781 12,108 11,165 16,832

-46.2 -36.6 -10.8 41.7

2014 Ⅰ Ⅱ Ⅲ ⅣP

21,626 26,116 23,551 26,962

7.4 1.6 -0.5 -5.1

7,144 8,697 7,236 8,886

2.0 -6.9 -10.5 -12.0

13,630 16,470 15,321 16,840

10.1 7.1 4.4 -1.3

15,501 22,881 23,961 26,081

15.5 26.1 45.6 -5.7

5,968 6,578 5,219 8,802

39.1 23.0 6.3 -12.5

9,102 16,002 18,144 16,703

3.6 32.2 62.5 -0.8

2012 1 2 3 4 5 6 7 8 9 10 11 12

5,796 6,035 7,444 6,844 7,307 8,259 7,037 6,582 7,732 7,343 8,098 10,235

-6.3 13.2 -4.1 -4.5 -1.8 -12.6 4.2 -4.6 -0.5 -7.8 3.0 -8.1

2,123 2,373 2,945 2,644 2,873 3,374 2,372 2,322 2,904 2,591 3,003 4,282

-12.9 17.0 3.1 -3.6 3.0 -10.2 -0.3 -5.6 2.1 -10.7 -5.3 -9.9

3,373 3,405 4,115 3,903 4,106 4,431 4,281 3,943 4,452 4,452 4,773 5,387

-3.3 11.3 -8.2 -4.0 -3.4 -11.8 5.4 -3.8 0.3 -4.7 11.2 -6.0

7,468 8,488 6,714 6,428 7,310 11,993 6,823 5,390 6,181 5,800 7,239 9,556

52.0 108.1 -8.6 -4.2 2.3 4.6 32.3 -28.8 -19.9 -22.6 -19.9 -42.8

2,034 2,218 1,402 1,453 1,061 3,056 2,304 1,316 1,780 1,970 2,105 5,366

54.6 57.5 0.6 1.7 -43.9 2.2 24.2 -12.5 -46.9 -14.9 -29.5 -13.1

5,269 6,121 4,918 4,461 6,133 8,505 4,329 4,032 4,161 3,787 4,798 3,290

81.4 144.1 -13.6 -3.6 29.4 2.7 39.9 -30.3 4.2 -24.1 -18.3 -64.8

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

6,266 6,222 7,657 8,089 8,142 9,476 7,839 7,657 8,183 8,628 9,083 10,696

8.1 3.1 2.9 18.2 11.4 14.7 11.4 16.3 5.8 17.5 12.2 4.5

2,072 2,345 2,589 2,839 2,805 3,700 2,643 2,561 2,878 2,958 3,124 4,017

-2.4 -1.2 -12.1 7.4 -2.4 9.7 11.5 10.3 -0.9 14.2 4.0 -6.2

3,956 3,650 4,769 4,954 5,062 5,361 4,885 4,810 4,979 5,329 5,625 6,112

17.3 7.2 15.9 26.9 23.3 21.0 14.1 22.0 11.8 19.7 17.8 13.5

3,546 4,431 5,447 4,946 6,073 7,124 5,675 4,708 6,070 7,346 7,895 12,379

-52.5 -47.8 -18.9 -23.1 -16.9 -40.6 -16.8 -12.6 -1.8 26.7 9.1 29.5

1,289 1,287 1,713 1,558 1,559 2,231 1,412 1,493 2,004 1,500 2,648 5,877

-36.6 -42.0 22.1 7.2 47.0 -27.0 -38.7 13.5 12.6 -23.9 25.8 9.5

2,108 2,992 3,680 2,962 4,393 4,753 4,153 3,171 3,840 5,756 5,004 6,070

-60.0 -51.1 -25.2 -33.6 -28.4 -44.1 -4.1 -21.4 -7.7 52.0 4.3 84.5

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

7,034 6,654 7,938 8,457 8,173 9,486 7,896 7,705 7,950 8,239 8,339 10,384

12.3 6.9 3.7 4.6 0.4 0.1 0.7 0.6 -2.9 -4.5 -8.2 -2.9

2,310 2,207 2,627 2,737 2,580 3,380 2,427 2,320 2,489 2,532 2,673 3,681

11.5 -5.9 1.5 -3.6 -8.0 -8.7 -8.2 -9.4 -13.5 -14.4 -14.4 -8.4

4,434 4,226 4,971 5,445 5,302 5,723 5,134 5,101 5,085 5,369 5,293 6,178

12.1 15.8 4.2 9.9 4.8 6.7 5.1 6.1 2.1 0.7 -5.9 1.1

5,300 5,393 4,807 7,290 6,427 9,163 6,902 8,679 8,379 7,755 6,315 12,012

49.5 21.7 -11.8 47.4 5.8 28.6 21.6 84.3 38.0 5.6 -20.0 -3.3

2,102 2,242 1,625 1,892 2,000 2,686 1,555 1,633 2,031 1,416 1,895 5,491

62.9 74.2 -5.2 21.4 28.3 20.4 10.1 9.4 1.3 -5.6 -28.5 -7.2

3,026 3,001 3,075 5,388 4,359 6,256 5,281 6,835 6,029 6,157 4,303 6,244

43.5 0.3 -16.4 81.9 -0.8 31.6 27.1 115.5 57.0 7.0 -14.0 2.8

P: Preliminary Source: Statistics Korea

57

ECONOMIC BULLETIN • Feb 2015

8. Composite indexes of business cycle indicators and BSI Period

Leading index (2010=100)

Cyclical indicator of leading index (2010=100)

Cyclical Coincident index indicator of (2010=100) coincident index (2010=100)

BSI (results)

BSI (prospects)

2011 1 2 3 4 5 6 7 8 9 10 11 12

101.2 101.5 101.6 101.3 101.6 102.1 102.5 102.8 103.0 103.1 103.1 103.4

100.8 100.7 100.4 99.6 99.4 99.4 99.5 99.3 99.0 98.7 98.3 98.1

103.3 103.4 104.0 104.0 104.8 105.4 106.0 106.5 106.5 106.9 106.8 107.2

101.1 100.9 101.0 100.6 101.0 101.2 101.3 101.4 101.0 101.0 100.5 100.5

99.1 92.2 107.8 98.4 98.9 99.6 96.2 86.8 96.4 95.0 93.0 90.1

101.8 98.0 113.5 99.3 104.3 104.3 101.3 98.9 96.3 101.4 96.4 94.8

2012 1 2 3 4 5 6 7 8 9 10 11 12

104.2 105.3 105.8 106.3 106.5 107.5 107.9 108.0 107.8 108.1 108.8 109.5

98.5 99.2 99.2 99.4 99.1 99.7 99.8 99.5 98.9 98.8 99.1 99.4

107.3 108.1 108.4 108.6 108.8 109.2 109.9 109.8 110.3 110.2 110.8 111.4

100.2 100.6 100.5 100.4 100.2 100.2 100.5 100.0 100.1 99.6 99.8 100.0

88.6 92.2 101.4 97.5 95.7 90.4 82.1 84.4 89.3 88.9 82.2 87.0

88.3 91.0 106.1 98.4 104.7 98.3 89.7 82.7 99.5 97.0 92.5 82.0

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

109.8 110.1 110.7 111.3 112.0 113.1 113.8 114.4 114.6 115.3 116.2 117.0

99.2 99.2 99.3 99.5 99.7 100.3 100.5 100.7 100.4 100.8 101.1 101.5

111.7 112.2 112.3 112.9 113.2 113.9 114.3 114.9 115.1 115.7 116.1 116.7

100.0 100.0 99.7 99.9 99.8 100.1 100.1 100.3 100.1 100.2 100.2 100.4

85.0 83.0 101.3 94.1 97.6 95.0 91.1 89.8 93.0 94.7 91.9 90.5

85.7 86.7 104.4 101.5 99.8 97.2 90.7 92.7 94.4 101.1 94.7 92.6

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

117.6 118.0 118.2 118.8 119.1 119.8 120.3 121.7 123.0 123.7 124.1 124.8

101.6 101.5 101.3 101.5 101.3 101.6 101.6 102.4 103.1 103.3 103.3 103.5

117.5 117.9 118.4 118.5 118.5 118.9 119.5 120.2 120.5 120.5 120.7 121.6

100.7 100.6 100.7 100.4 100.1 100.1 100.2 100.5 100.3 100.0 99.8 100.1

89.4 87.0 100.7 95.8 93.0 91.3 90.8 89.0 92.3 93.1 90.0 95.4

93.4 88.7 104.4 99.5 101.7 94.5 94.0 91.6 93.1 100.7 93.6 94.0

2015 1 2

-

-

-

-

94.0 -

90.3 92.1

Sources: Statistics Korea, The Bank of Korea

58

Statistical Appendices

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

Period

Current account

Goods

2012 2013 2014p

50,835.0 79,883.6 89,418.8

2012 Ⅰ Ⅱ Ⅲ Ⅳ

Services

Primary income

Secondary income

554,103.2 536,559.0 528,656.6

-5,213.6 -7,927.4 -8,163.4

12,116.7 11,424.8 10,197.7

-5,474.1 -4,182.3 -5,501.8

144,260.1 150,834.0 149,619.5 158,795.6

142,598.6 142,299.0 133,724.9 135,480.7

-2,970.8 172.0 -679.8 -1,735.0

2,045.3 3,942.3 2,972.2 3,156.9

-1,482.0 -1,044.2 -1,300.2 -1,647.7

14,298.0 20,585.3 23,305.7 24,592.0

147,823.3 154,065.9 153,715.8 162,551.9

133,525.3 133,480.6 130,410.1 137,959.9

-2,667.9 647.9 -2,078.5 -2,400.7

1,812.4 1,660.5 2,346.6 3,236.2

-828.2 -546.3 -1,323.4 -1,491.4

15,185.9 24,240.4 22,565.7 27,426.8

17,745.2 26,428.1 21,676.0 27,037.0

152,688.6 159,385.4 153,482.3 155,986.6

134,943.4 132,957.3 131,806.3 128,949.6

-3,503.4 -1,838.7 -904.0 -1,917.3

1,905.8 1,330.9 3,143.5 3,817.5

-961.7 -1,679.9 -1,349.8 -1,510.4

2012 1 2 3 4 5 6 7 8 9 10 11 12

-2,151.2 -2,409.5 3,814.7 87.8 5,265.5 6,251.8 8,413.0 1,808.7 6,665.1 7,494.2 8,293.6 7,301.3

-1,727.4 -863.1 4,252.0 -222.9 3,387.9 5,370.0 7,529.7 2,118.1 6,246.8 7,472.8 8,580.9 7,261.2

44,738.1 48,304.2 51,217.8 49,330.2 50,854.0 50,649.8 51,530.7 47,379.6 50,709.2 53,409.2 54,492.4 50,894.0

46,465.5 49,167.3 46,965.8 49,553.1 47,466.1 45,279.8 44,001.0 45,261.5 44,462.4 45,936.4 45,911.5 43,632.8

-1,017.2 -2,018.3 64.7 288.4 545.9 -662.3 110.0 -844.3 54.5 -415.4 -833.9 -485.7

1,243.3 873.2 -71.2 364.5 1,660.1 1,917.7 1,260.7 965.2 746.3 867.8 988.6 1,300.5

-649.9 -401.3 -430.8 -342.2 -328.4 -373.6 -487.4 -430.3 -382.5 -431.0 -442.0 -774.7

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

3,075.6 2,473.1 7,065.6 5,334.6 9,886.4 7,126.4 7,323.2 6,745.6 8,181.6 11,108.9 6,229.9 6,597.3

3,953.0 3,256.4 7,088.6 5,510.6 9,363.1 5,711.6 7,462.2 7,271.4 8,572.1 9,767.8 8,024.8 6,799.4

51,765.7 44,916.0 51,141.6 51,704.7 53,477.3 48,883.9 53,326.3 49,899.2 50,490.3 56,820.8 52,702.3 53,028.8

47,812.7 41,659.6 44,053.0 46,194.1 44,114.2 43,172.3 45,864.1 42,627.8 41,918.2 47,053.0 44,677.5 46,229.4

-1,556.6 -1,144.9 33.6 496.2 -28.7 180.4 -879.0 -869.3 -330.2 405.8 -2,088.9 -717.6

1,169.5 623.3 19.6 -482.0 721.6 1,420.9 1,032.7 665.9 648.0 1,335.7 674.8 1,225.7

-490.3 -261.7 -76.2 -190.2 -169.6 -186.5 -292.7 -322.4 -708.3 -400.4 -380.8 -710.2

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

3,323.7 4,537.5 7,324.7 7,163.1 9,119.2 7,958.1 7,881.7 7,235.1 7,448.9 8,883.2 11,322.1 7,221.5

4,367.0 5,403.4 7,974.8 10,648.0 9,133.5 6,646.6 6,794.4 7,367.3 7,514.3 8,487.1 10,031.4 8,518.5

50,599.8 47,993.3 54,095.5 56,721.4 52,383.0 50,281.0 53,811.7 48,920.1 50,750.5 51,970.8 50,063.0 53,952.8

46,232.8 42,589.9 46,120.7 46,073.4 43,249.5 43,634.4 47,017.3 41,552.8 43,236.2 43,483.7 40,031.6 45,434.3

-1,873.7 -1,020.3 -609.4 -1,004.4 -297.7 -536.6 31.0 -694.3 -240.7 -212.6 -164.6 -1,540.1

1,211.4 371.8 322.6 -1,619.7 725.1 2,225.5 1,488.8 1,048.0 606.7 967.6 1,667.5 1,182.4

-381.0 -217.4 -363.3 -860.8 -441.7 -377.4 -432.5 -485.9 -431.4 -358.9 -212.2 -939.3

Exports

Imports

49,406.0 80,568.6 92,886.3

603,509.2 617,127.6 621,542.9

-746.0 11,605.1 16,886.8 23,089.1

1,661.5 8,535.0 15,894.6 23,314.9

2013 Ⅰ Ⅱ Ⅲ Ⅳ

12,614.3 22,347.4 22,250.4 23,936.1

2014P Ⅰ Ⅱ Ⅲ Ⅳ

P: Preliminary Source: The Bank of Korea

59

ECONOMIC BULLETIN • Feb 2015

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

Period

Capital & financial account

Direct investment

Portfolio investment

Financial derivatives

Other investment

Capital transfers & acquisition of nonfinancial assets

Reserve assets

2012 2013 2014p

-51,582.4 -80,104.6 -90,383.3

-21,136.2 -15,593.2 -20,659.5

6,747.8 -9,344.5 -33,605.3

2,627.8 4,410.3 3,704.9

-26,637.3 -43,281.1 -21,937.9

-41.7 -27.0 -9.0

-13,184.5 -16,296.1 -17,885.5

2012 Ⅰ Ⅱ Ⅲ Ⅳ

-4,564.4 -4,278.7 -18,096.1 -24,643.2

-7,579.6 -4,057.3 -5,705.4 -3,793.9

14,759.6 -6,803.0 4,177.7 -5,386.5

1,198.5 -270.6 595.3 1,104.6

-6,495.1 6,181.1 -13,247.2 -13,076.1

-19.2 -6.7 -9.0 -6.8

-6,447.8 671.1 -3,916.5 -3,491.3

2013 Ⅰ Ⅱ Ⅲ Ⅳ

-11,448.7 -19,645.6 -22,675.5 -26,334.8

-3,878.4 -3,397.8 -3,426.8 -4,890.2

-7,285.9 -9,776.5 9,375.4 -1,657.5

1,395.8 -513.6 1,656.3 1,871.8

2,880.2 -10,063.8 -23,611.4 -12,486.1

-2.7 -27.5 12.8 -9.6

-4,560.4 4,106.1 -6,669.0 -9,172.8

2014P Ⅰ Ⅱ Ⅲ Ⅳ

-17177.8 -24,208.1 -22,481.5 -26,515.9

-3,657.7 -7,552.9 -3,908.6 -5,540.3

-13,596.7 -5,867.2 -4,762.4 -9,379.0

892.6 2,083.5 1,531.9 -803.1

6,207.4 -1,701.9 -9,510.4 -16,933.0

-2.1 -4.3 3.6 -6.2

-7,023.4 -11,169.6 -5,832.0 6,139.5

2012 1 2 3 4 5 6 7 8 9 10 11 12

-1,295.1 435.0 -3,704.3 1,566.7 -2,645.3 -3,200.1 -9,113.6 -3,219.3 -5,763.2 -7,172.4 -9,211.9 -8,258.9

-2,022.6 -3,631.3 -1,925.7 -1,225.9 -1,687.4 -1,144.0 -1,695.4 -1,719.8 -2,290.2 -1,001.3 -1,599.7 -1,192.9

7,904.1 6,238.0 617.5 -3,114.3 -1,893.6 -1,795.1 1,730.8 646.6 1,800.3 -4,742.4 -3,886.7 3,242.6

452.6 245.8 500.1 215.0 -480.7 -4.9 358.8 -35.5 272.0 -137.8 631.8 610.6

-5,167.1 -190.9 -1,137.1 5,832.0 147.6 201.5 -8,171.9 -1,016.0 -4,059.3 185.2 -1,759.5 -11,501.8

-9.6 -5.8 -3.8 0.3 -1.0 -6.0 -5.5 -1.9 -1.6 -4.9 0.7 -2.6

-2,462.1 -2,226.6 -1,759.1 -140.1 1,268.8 -457.6 -1,335.9 -1,094.6 -1,486.0 -1,476.1 -2,597.8 582.6

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

-2,694.7 -1,707.1 -7,046.9 -2,435.7 -12,288.9 -4,921.0 -9,446.1 -6,236.3 -6,993.1 -10,139.4 -7,433.1 -8,762.3

-802.5 -909.3 -2,166.6 401.3 -2,175.6 -1,623.5 -796.8 -1,157.2 -1,472.8 -340.7 -2,243.9 -2,305.6

-5,964.7 2,149.9 -3,471.1 -2,060.8 -1,642.1 -6,073.6 1,785.8 1,584.1 6,005.5 4,942.8 -1,557.9 -5,042.4

579.6 651.0 165.2 -301.1 719.1 -931.6 431.4 210.0 1,014.9 805.3 466.9 599.6

4,123.7 -1,158.3 -85.2 -1,382.5 -8,189.7 -491.6 -8,821.6 -5,172.4 -9,617.4 -10,754.2 -1,248.6 -483.3

-8.0 -2.9 8.2 -1.6 -11.0 -14.9 1.1 18.2 -6.5 -2.0 0.0 -7.6

-630.8 -2,440.4 -1,489.2 907.4 -1,000.6 4,199.3 -2,044.9 -1,700.8 -2,923.3 -4,792.6 -2,849.6 -1,530.6

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

-4,477.0 -6,920.5 -5,780.3 -6,238.8 -8,132.4 -9,836.9 -5,916.9 -7,802.4 -8,762.2 -6,801.5 -9,915.5 -9,798.9

529.9 -2,163.5 -2,024.1 -2,157.8 -3,338.8 -2,056.3 -1,011.5 -749.5 -2,147.6 -2,088.9 -2,098.2 -1,353.2

-4,193.1 -7,394.4 -2,009.2 1,662.3 -3,311.0 -4,218.5 -1,743.7 504.4 -3,523.1 -382.4 -2,835.6 -6,161.0

155.5 223.1 514.0 858.1 534.5 690.9 504.1 557.7 470.1 -570.7 -81.8 -150.6

1,937.4 4,739.0 -469.0 -5,935.6 3,950.6 283.1 -338.1 -7,288.1 -1,884.2 -4,007.0 -7,797.4 -5,128.6

-3.0 3.5 -2.6 2.6 -4.3 -2.6 -6.3 11.2 -1.3 -1.1 -0.9 -4.2

-2,906.7 -2,324.7 -1,792.0 -665.8 -5,967.7 -4,536.1 -3,327.7 -826.9 -1,677.4 247.5 2,897.5 2,994.5

P: Preliminary Source: Statistics Korea

60

Statistical Appendices

11. Prices (2010=100)

Consumer Prices Commodities Services

All Items

Period

y-o-y change (%)

y-o-y change (%)

Producer prices All Items Commodities

Core

y-o-y change (%)

y-o-y change (%)

y-o-y change (%)

y-o-y change (%)

2012

106.3

2.2

108.9

3.0

104.2

1.4

104.9

1.6

107.5

0.7

108.9

0.2

2013

107.7

1.3

110.1

1.0

105.8

1.5

106.6

1.6

105.7

-1.6

106.2

-2.5

2014

109.0

1.3

111.1

0.9

107.4

1.6

108.8

2.0

105.2

-0.5

104.8

-1.4

2012 1

105.7

3.4

107.9

4.4

103.9

2.7

104.6

3.2

107.7

3.2

109.5

3.6

2

106.1

3.1

108.5

3.9

104.2

2.5

104.7

2.5

108.4

3.1

110.5

3.6

3

106.0

2.6

109.2

4.1

103.5

1.4

104.3

1.9

108.9

2.4

111.2

2.7

4

106.0

2.5

108.9

4.1

103.7

1.3

104.4

1.8

109.0

1.9

111.1

1.9

5

106.2

2.5

109.2

4.3

103.9

1.3

104.6

1.6

108.4

1.0

110.3

0.7

6

106.1

2.2

108.8

3.6

104.0

1.2

104.9

1.5

107.1

0.0

108.4

-0.7

7

105.9

1.5

107.9

1.9

104.2

1.1

104.9

1.2

106.6

-0.6

107.6

-1.5

8

106.3

1.2

108.8

1.6

104.4

1.1

105.1

1.3

107.2

-0.1

108.6

-0.9

9

107.0

2.0

110.4

3.1

104.4

1.3

105.2

1.4

107.6

0.2

109.2

-0.4

10

106.9

2.1

109.8

3.0

104.6

1.4

105.2

1.5

106.8

-0.5

107.8

-1.4

11

106.5

1.6

108.9

2.0

104.6

1.3

105.3

1.3

106.1

-0.9

106.8

-1.9

12

106.7

1.4

109.0

1.6

104.8

1.3

105.5

1.2

105.8

-1.2

106.4

-2.3

2013 1

107.3

1.6

109.9

1.7

105.3

1.5

105.9

1.3

106.0

-1.6

106.8

-2.5

2

107.7

1.6

110.4

1.6

105.6

1.5

106.2

1.4

106.7

-1.6

107.8

-2.5

3

107.6

1.5

110.4

1.1

105.4

1.7

106.0

1.6

106.3

-2.4

107.1

-3.7

4

107.5

1.3

109.9

0.9

105.6

1.7

106.0

1.6

105.9

-2.8

106.6

-4.1

5

107.5

1.1

109.6

0.4

105.7

1.8

106.4

1.7

105.6

-2.6

106.1

-3.8

6

107.3

1.2

109.4

0.7

105.7

1.6

106.6

1.6

105.5

-1.4

106.0

-2.2

7

107.6

1.6

109.7

1.7

105.9

1.5

106.7

1.7

105.5

-1.0

106.0

-1.6

8

107.9

1.5

110.3

1.5

106.1

1.5

106.7

1.5

105.8

-1.3

106.2

-2.1

9

108.1

1.0

110.9

0.4

106.0

1.5

107.0

1.7

105.7

-1.8

106.1

-2.8

10

107.8

0.9

110.1

0.3

106.0

1.4

107.1

1.8

105.3

-1.4

105.5

-2.2

11

107.8

1.2

110.1

1.0

106.0

1.3

107.4

2.0

105.1

-0.9

105.2

-1.5

12

107.9

1.1

110.2

0.9

106.2

1.3

107.5

1.9

105.4

-0.4

105.5

-0.9

2014 1

108.5

1.1

110.9

0.9

106.6

1.3

107.7

1.7

105.6

-0.3

105.7

-1.0

2

108.8

1.0

111.4

0.9

106.7

1.1

108.0

1.7

105.8

-0.9

105.9

-1.7

3

109.0

1.3

111.6

1.1

107.0

1.5

108.3

2.1

105.7

-0.5

105.7

-1.3

4

109.1

1.5

111.3

1.3

107.3

1.6

108.5

2.3

105.6

-0.3

105.4

-1.1

5

109.2

1.7

111.5

1.7

107.5

1.6

108.8

2.2

105.5

0.0

105.3

-0.7

6

109.1

1.7

111.2

1.7

107.4

1.6

108.9

2.1

105.6

0.1

105.4

-0.6

7

109.3

1.6

111.2

1.4

107.7

1.7

109.1

2.2

105.7

0.2

105.5

-0.4

8

109.5

1.4

111.4

1.0

107.9

1.7

109.2

2.4

105.6

-0.2

105.1

-1.1

9

109.4

1.1

111.5

0.5

107.8

1.7

109.1

1.9

105.2

-0.5

104.7

-1.3

10

109.1

1.2

110.6

0.5

107.8

1.7

109.1

1.8

104.5

-0.8

103.6

-1.8

11

108.8

1.0

110.2

0.2

107.7

1.6

109.1

1.6

104.1

-0.9

103.1

-2.0

12

108.8

0.8

110.1

0.0

107.8

1.6

109.3

1.6

103.2

-2.0

101.9

-3.4

Source: The Bank of Korea

61

ECONOMIC BULLETIN • Feb 2015

12. Employment Economically active persons (thousand)

Period

All industry

y-o-y change (%)

Employed persons (thousand) Manufacturing SOC & services

y-o-y change (%)

y-o-y change (%)

y-o-y change (%)

Unemployment rate (%)

2012

25,501

1.6

24,681

1.8

4,105

0.3

19,033

2.4

3.2

2013

25,873

1.5

25,066

1.6

4,184

1.9

19,347

1.6

3.1

2014

26,536

2.6

25,599

2.1

4,330

3.5

19,805

2.4

3.5

2012 1

24,585

2.0

23,732

2.3

4,034

-2.8

18,631

3.5

3.5

2

24,825

1.6

23,783

1.9

4,060

-2.1

18,599

3.2

4.2

3

25,210

1.2

24,265

1.8

4,018

-2.5

18,870

3.4

3.7

4

25,653

1.6

24,758

1.9

4,027

-2.0

19,103

3.1

3.5

5

25,939

1.8

25,133

1.9

4,071

-1.6

19,292

3.0

3.1

6

25,939

1.4

25,117

1.5

4,084

-1.2

19,248

2.3

3.2

7

25,901

1.7

25,106

1.9

4,114

0.8

19,265

2.2

3.1

8

25,623

1.4

24,859

1.5

4,111

2.0

19,040

1.6

3.0

9

25,755

2.7

25,003

2.8

4,153

3.5

19,125

2.8

2.9

10

25,787

1.5

25,069

1.6

4,188

3.6

19,128

1.4

2.8

11

25,652

1.3

24,941

1.4

4,218

4.0

19,088

0.9

2.8

12

25,139

1.0

24,402

1.1

4,183

2.8

19,010

0.9

2.9

2013 1

24,901

1.3

24,054

1.4

4,189

3.9

18,810

1.0

3.4

2

24,973

0.6

23,984

0.8

4,139

1.9

18,736

0.7

4.0

3

25,397

0.7

24,514

1.0

4,141

3.1

18,989

0.6

3.5

4

25,928

1.1

25,103

1.4

4,192

4.1

19,303

1.0

3.2

5

26,195

1.0

25,398

1.1

4,175

2.6

19,492

1.0

3.0

6

26,291

1.4

25,478

1.4

4,180

2.3

19,531

1.5

3.1

7

26,301

1.5

25,473

1.5

4,167

1.3

19,577

1.6

3.1

8

26,074

1.7

25,291

1.7

4,116

0.1

19,438

2.1

3.0

9

26,186

1.7

25,466

1.9

4,174

0.5

19,540

2.2

2.7

10

26,268

1.9

25,545

1.9

4,218

0.7

19,558

2.2

2.8

11

26,230

2.3

25,530

2.4

4,253

0.8

19,670

3.0

2.7

12

25,736

2.4

24,962

2.3

4,264

2.0

19,514

2.7

3.0

2014 1

25,650

3.0

24,759

2.9

4,280

2.2

19,376

3.0

3.5

2

25,997

4.1

24,819

3.5

4,274

3.3

19,407

3.6

4.5

3

26,187

3.1

25,163

2.6

4,284

3.5

19,538

2.9

3.9

4

26,714

3.0

25,684

2.3

4,288

2.3

19,819

2.7

3.9

5

26,762

2.2

25,811

1.6

4,324

3.6

19,815

1.7

3.6

6

26,825

2.0

25,875

1.6

4,345

3.9

19,841

1.6

3.5

7

26,891

2.2

25,979

2.0

4,358

4.6

20,003

2.2

3.4

8

26,775

2.7

25,885

2.3

4,335

5.3

19,940

2.6

3.3

9

26,766

2.2

25,917

1.8

4,347

4.1

19,949

2.1

3.2

10

26,809

2.1

25,951

1.6

4,361

3.4

19,973

2.1

3.2

11

26,786

2.1

25,968

1.7

4,355

2.4

20,098

2.2

3.1

12

26,270

2.1

25,384

1.7

4,406

3.3

19,896

2.0

3.4

2015 1

26,094

1.7

25,106

1.4

4,421

3.3

19,693

1.6

3.8

Source: Statistics Korea

62

Statistical Appendices

13. Financial indicators (period average)

Period

Yields(%) Corporate bonds Treasury bonds (3 years, AA-) (3 years)

Treasury bonds (5 years)

Stock KOSPI(endperiod)

Call rate (1 day)

CDs (91 days)

2011 1 2 3 4 5 6 7 8 9 10 11 12

2.7 2.8 2.9 3.0 3.0 3.2 3.3 3.3 3.3 3.2 3.3 3.3

2.9 3.1 3.4 3.4 3.5 3.5 3.6 3.6 3.6 3.6 3.6 3.6

4.5 4.7 4.5 4.5 4.4 4.4 4.5 4.2 4.2 4.3 4.2 4.2

3.7 3.9 3.7 3.7 3.7 3.7 3.8 3.6 3.5 3.5 3.4 3.4

4.3 4.4 4.1 4.1 4.0 3.9 4.0 3.7 3.6 3.6 3.5 3.5

2,069.73 1,939.30 2,106.70 2,192.36 2,142.47 2,100.69 2,133.21 1,880.11 1,769.65 1,909.03 1,847.51 1,825.74

2012 1 2 3 4 5 6 7 8 9 10 11 12

3.3 3.3 3.3 3.3 3.3 3.3 3.1 3.0 3.0 2.8 2.8 2.8

3.6 3.5 3.5 3.5 3.5 3.5 3.3 3.2 3.1 2.9 2.9 2.9

4.2 4.3 4.4 4.3 4.0 3.9 3.6 3.4 3.3 3.3 3.3 3.3

3.4 3.4 3.6 3.5 3.4 3.3 3.0 2.8 2.8 2.8 2.8 2.9

3.5 3.6 3.7 3.6 3.5 3.4 3.1 2.9 2.9 2.9 2.9 3.0

1,955.79 2,030.25 2,014.04 1,981.99 1,843.47 1,854.01 1,881.99 1,905.12 1,996.21 1,912.06 1,932.90 1,997.05

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

2.8 2.8 2.7 2.8 2.6 2.5 2.5 2.5 2.5 2.5 2.5 2.5

2.9 2.8 2.8 2.8 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7

3.2 3.1 3.0 2.9 3.0 3.2 3.4 3.3 3.3 3.3 3.4 3.4

2.8 2.7 2.6 2.6 2.6 2.9 2.9 2.9 2.9 2.8 2.9 2.9

2.9 2.8 2.7 2.6 2.7 3.1 3.2 3.2 3.2 3.1 3.2 3.3

1,961.94 2,026.49 2,004.89 1,963.95 2,001.05 1,863.32 1,914.03 1,926.36 1,996.96 2,030.09 2,044.87 2,011.34

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

2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.3 2.2 2.1 2.0 2.0

2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.5 2.4 2.2 2.1 2.1

3.3 3.3 3.3 3.3 3.3 3.2 3.0 3.0 2.8 2.6 2.5 2.5

2.9 2.9 2.9 2.9 2.8 2.7 2.6 2.5 2.4 2.2 2.1 2.1

3.3 3.2 3.2 3.2 3.1 3.0 2.8 2.8 2.6 2.4 2.3 2.3

1,941.15 1,979.99 1,985.61 1,961.79 1,994.96 2,002.21 2,076.12 2,068.54 2,020.09 1,964.43 1,980.78 1,915.59

2015 1

2.0

2.1

2.4

2.0

2.2

1,949.26

Source: The Bank of Korea

63

ECONOMIC BULLETIN • Feb 2015

14. Monetary indicators (billion won)

Period

Reserve money y-o-y change (%)

M1

M2

2012

82,131.1

9.2

441,963.6

3.8

1,798,625.7

5.2

2,379,518.7

7.8

2013

91,379.4

11.3

484,062.9

9.5

1,885,781.3

4.8

2,543,299.4

6.9

2012 1

81,635.4

11.0

439,352.9

2.3

1,757,058.7

4.8

2,292,213.5

6.5

2

81,655.3

8.3

437,193.9

1.1

1,762,988.4

5.3

2,302,065.8

7.2

3

79,068.0

8.3

440,075.4

2.1

1,773,172.9

5.7

2,341,626.9

8.8

4

80,641.8

10.2

437,445.3

2.8

1,777,114.7

5.5

2,349,723.2

8.6

5

80,547.7

9.1

438,795.3

3.5

1,784,220.5

5.5

2,357,701.0

8.4

6

81,804.0

9.5

441,611.0

4.7

1,796,981.5

5.9

2,377,071.3

8.5

7

81,555.7

10.1

441,760.6

5.4

1,807,289.2

6.0

2,393,737.7

8.4

8

82,369.1

8.9

439,573.2

4.0

1,817,134.9

5.7

2,405,239.9

7.8

9

82,958.7

6.4

440,034.3

3.5

1,819,290.1

5.2

2,415,263.5

7.6

10

85,078.6

10.6

444,477.8

5.5

1,822,420.9

4.6

2,424,000.4

7.1

11

82,956.5

8.3

445,463.9

5.3

1,830,280.3

4.4

2,440,062.8

7.1

12

85,302.7

9.6

457,778.9

5.8

1,835,556.7

4.5

2,455,962.9

7.3

2013 1

85,839.3

5.1

464,914.5

5.8

1,841,128.1

4.8

2,469,789.3

7.7

2

88,855.7

8.8

472,239.6

8.0

1,857,135.0

5.3

2,488,539.0

8.1

3

89,523.5

13.2

472,430.1

7.4

1,862,405.5

5.0

2,499,718.1

6.8

4

87,729.0

8.8

475,330.0

8.7

1,867,726.3

5.1

2,512,459.7

6.9

5

89,654.8

11.3

475,526.7

8.4

1,870,289.7

4.8

2,518,239.1

6.8

6

91,207.6

11.5

486,587.5

10.2

1,884,193.2

4.9

2,533,750.8

6.6

7

90,643.7

11.1

488,982.7

10.7

1,890,728.6

4.6

2,549,443.5

6.5

8

93,729.6

13.8

481,416.9

9.5

1,888,658.4

3.9

2,557,336.3

6.3

9

95,130.6

14.7

490,518.7

11.5

1,903,187.1

4.6

2,577,546.7

6.7

10

93,640.4

10.1

491,947.9

10.7

1,908,557.6

4.7

2,587,071.4

6.7

11

93,609.9

12.8

499,242.7

12.1

1,923,339.2

5.1

2,605,873.9

6.8

12

96,988.5

13.7

509,617.9

11.3

1,932,026.4

5.3

2,619,029.5

6.6

2014 1

98,541.6

14.8

515,742.5

10.9

1,937,045.6

5.2

2,635,100.1

6.7

2

100,547.9

13.2

518,475.5

9.8

1,954,340.7

5.2

2,647,674.0

6.4

3

100,624.0

12.4

520,299.0

10.1

1,964,954.0

5.5

2,659,370.7

6.4

4

98,898.5

12.7

518,809.3

9.1

1,970,361.6

5.5

2,669,341.4

6.2

5

101,791.4

13.5

523,069.9

10.0

1,982,390.9

6.0

2,684,643.9

6.6

6

101,412.3

11.2

532,041.2

9.3

1,999,376.3

6.1

2,703,088.1

6.7

7

101,164.2

11.6

534,028.8

9.2

2,013,935.1

6.5

2,725,737.6

6.9

8

107,682.4

14.9

538,640.3

11.9

2,031,777.2

7.6

2,743,972.5

7.3

y-o-y change (%)

Lf

y-o-y change (%)

y-o-y change (%)

9

105,354.1

10.7

548,550.8

11.8

2,037,600.8

7.1

2,759,390.8

7.1

10

107,117.5

14.4

551,416.0

12.1

2,051,149.8

7.5

2,776,971.6

7.3

11

106,667.9

13.9

562,006.2

12.6

2,083,253.5

8.3

2,817,698.0

8.1

12

110,175.6

13.6

577,721.1

13.4

2,088,729.8

8.1

2,837,910.9

8.4

Source: The Bank of Korea

64

Statistical Appendices

15. Exchange rates (end-period)

100/ \

US $/ \

Period

Euro/ \

Won

y-o-y change (%)

Won

y-o-y change (%)

Won

y-o-y change (%)

2012

1,071.1

-7.1

1,247.5

-16.0

1,416.3

-5.2

2013

1,055.3

-1.5

1,004.7

-19.5

1,456.3

2.8

2014

1,099.2

4.2

920.1

-8.4

1,336.5

-8.2

2012 1

1,125.0

1.0

1,473.1

8.6

1,478.2

-2.4

2

1,126.5

-0.1

1,399.2

1.3

1,516.3

-2.1

3

1,137.8

2.8

1,380.7

3.7

1,513.4

-3.2

4

1,134.2

5.8

1,412.0

7.5

1,501.7

-5.6

5

1,177.8

9.0

1,489.1

11.5

1,456.6

-6.0

6

1,153.8

7.0

1,453.8

8.8

1,435.0

-8.0

7

1,136.2

7.9

1,453.6

7.4

1,393.1

-7.6

8

1,134.6

5.9

1,444.0

3.4

1,419.6

-8.3

9

1,118.6

-5.2

1,441.1

-6.2

1,444.3

-9.8

10

1,094.1

-0.9

1,374.5

-5.7

1,418.3

-9.2

11

1,084.7

-5.7

1,320.6

-10.5

1,407.3

-8.2

12

1,071.1

-7.1

1,247.5

-16.0

1,416.3

-5.2

2013 1

1,082.7

-3.8

1,188.5

-19.3

1,469.3

-0.6

2

1,085.4

-3.6

1,176.2

-15.9

1,425.8

-6.0

3

1,112.1

-2.3

1,180.1

-14.5

1,425.2

-5.8

4

1,108.1

-2.3

1,132.0

-19.8

1,451.3

-3.4

5

1,128.3

-4.2

1,116.6

-25.0

1,471.4

1.0

6

1,149.7

-0.4

1,167.2

-19.7

1,498.2

4.4

7

1,113.6

-2.0

1,135.4

-21.9

1,476.7

6.0

8

1,110.9

-2.1

1,129.2

-21.8

1,470.6

3.6

9

1,075.6

-3.8

1,098.7

-23.8

1,451.3

0.5

10

1,061.4

-3.0

1,077.5

-21.6

1,456.6

2.7

11

1,062.1

-2.1

1,038.2

-21.4

1,444.8

2.7

12

1,055.3

-1.5

1,004.7

-19.5

1,456.3

2.8

2014 1

1,079.2

-0.3

1,043.7

-12.2

1,473.6

0.3

2

1,067.7

-1.6

1,044.8

-11.2

1,463.6

2.7

3

1,068.8

-3.9

1,038.7

-12.0

1,469.4

3.1

4

1,031.7

-6.9

1,005.3

-11.2

1,425.0

-1.8

5

1,021.6

-9.5

1,004.2

-10.1

1,389.6

-5.6

6

1,014.4

-11.8

1,000.0

-14.3

1,384.2

-7.6

7

1,024.3

-8.0

995.7

-12.3

1,371.8

-7.1

8

1,013.6

-8.8

977.6

-13.4

1,336.2

-9.1

9

1,050.6

-2.3

960.2

-12.6

1,333.3

-8.1

10

1,054.0

-0.7

964.1

-10.5

1,328.8

-8.8

11

1,101.1

3.7

933.9

-10.0

1,372.2

-5.0

12

1,099.2

4.2

920.1

-8.4

1,336.5

-8.2

2015 1

1,090.8

1.1

921.3

-11.7

1,235.7

-16.1

Source: The Bank of Korea

Seoul Plaza Seoul Plaza is located in front of the Seoul Metropolitan Library and Seoul City Hall. Originally a traffic square, the site was transformed into a plaza in 2004 for the purpose of providing the public with an open space. Seoul Plaza hosts various exhibitions, music performances and festivals, and is converted into an outdoor ice rink during the winter.

Useful websites Ministry of Strategy and Finance http://english.mosf.go.kr Ministry of Trade, Industry and Energy http://www.motie.go.kr/language/eng Financial Services Commission http://www.fsc.go.kr/eng Financial Supervisory Service http://english.fss.or.kr Fair Trade Commission http://eng.ftc.go.kr Ministry of Employment and Labor http://www.moel.go.kr/english The Bank of Korea http://www.bok.or.kr/eng Statistics Korea http://kostat.go.kr/portal/english

ISSN 2287-7266

ECONOMIC BULLETIN (Republic of Korea)

Republic of Korea

Vol.37 No.2 February 2015

conomic u l l e t i n

Vol.37 No.2 February 2015

The Green Book: Current Economic Trends Economic News Briefing Korea Grows 0.4% in Q4 Government to Encourage Employee Stock Ownership Program Corporate Investment Boosting Program Starts February Financial Regulators to Support Fintech

Statistical Appendices

ECONOMIC BULLETIN

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February 2015

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