Economicbulletin05 en 0531 by KOCIS

ISSN 2287-7266

ECONOMIC BULLETIN (Republic of Korea)

Republic of Korea

Vol.36 No.5 May 2014

conomic u l l e t i n

Vol. 36 No.5 May 2014

The Green Book: Current Economic Trends Featured Issue

The Three Year Plan for Economic Innovation: Helping Korea Move Forward in a Changing Global Environment

Economic News Briefing

Corporate Loans to be Made Using Forex Stabilization Fund OECD Raises Korea’s 2014 Growth Outlook to 4.0% Q1 Trade Sets New Records Korea Grows 0.9% in Q1

ECONOMIC BULLETIN (Republic of Korea)

Statistical Appendices

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May 2014

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

contents

02 The Green Book: Current Economic Trends 03 04 10 12 14 16 18 20 22 26

30 32

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 9.1 Stock market 9.2 Exchange rate 9.3 Bond market 9.4 Money supply & money market 10. Balance of payments 11. Prices and international commodity prices 11.1 Prices 11.2 International oil and commodity prices 12. Real estate market 12.1 Housing market 12.2 Land market 13. Composite indices of business cycle indicators

45 Featured Issue 46

The Three Year Plan for Economic Innovation: Helping Korea Move Forward in a Changing Global Environment

49 Economic News Briefing 53 Statistical Appendices

Editor-in-Chief Editorial Board Coordinators Editor

Cho Byung-Koo (KDI), Kim Yong-Jin (MOSF) Choi Jae-Hyuk (MOSF), Lee Seong-Pyo (KDI), Lee Jae-Yeal (KDI) Kim Dae-Hyun (MOSF), Lee Ji-Youn (KDI) David Friedman (MOSF)

Th e Gr ee nB oo k Cu rre nt

E c o n o m i c B u l le t i n

Ec on om ic T ren ds

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 and international commodity prices 12. Real estate market 13. Composite indices of business cycle indicators

T h e G r e e n B o o k : Current Economic Trends

OVERVIEW The Korean economy continued to improve as employment and inflation remained stable in April, and industrial indicators, which were poor in February, somewhat recovered in March. In the first quarter, industrial indicators, with the exception of facilities investment, all improved across the board.

Inflation in April remained stable in the 1 percent range and increased 1.5 percent month-on-month, a slight increase compared to the 1.3 percent increase seen in February. Mining and manufacturing production increased by 0.9 percent month-on-month in March, but improved only 0.3 percent quarter-on-quarter owing to poor exports in January and February. Service output increased 0.1 percent month-onmonth, and 0.4 percent quarter-on-quarter due to the negative impact of the New Yearâ&#x20AC;&#x2122;s holiday. Retail sales in March improved by 1.6 percent owing to an increase in nondurable goods sales, such as groceries, and increased 0.4 percent quarter-on-quarter. Facilities investment in March increased 1.5 percent month-on-month owing to an increase in investment in transportation equipment, however that increase was not enough to prevent facilities

The composite index of coincident indicators remained unchanged in March, but the composite index of leading indicators fell 0.3 points. Exports continued to be positive, improving 9.0 percent month-on-month, and posted a trade surplus of US $4.46 billion. The stock market had been rising in the beginning of April as concerns regarding a premature increase in interest rates by the US Fed were eased, but ended the month down as the Ukraine situation continued to persist. The value of the won rose. In April, housing prices across the country continued to rise, increasing 0.1 percent compared to 0.2 percent the previous month, but prices in the Seoul metropolitan area, which had increased 0.3 percent the previous month, fell 0.02 percent. Jeonse (lump-sum deposits with no monthly payments) prices continued to increase, but the increase slowed down from 0.5 percent the previous month to 0.1 percent owing to the ending of the spring moving season. The economy continues to recover, but the recovery in the private sector has yet to fully take hold, and consumption and service industry indicators appear to be slowing down in the wake of the April Sewol ferry disaster.

3 The Green Book

The economy added less jobs in March than it did in February, adding only 649,000 jobs compared to 835,000 jobs.

investment from falling 5.1 percent quarter-onquarter as machinery investment fell. Construction completed fell 3.8 percent month-on-month due to delays in local government spending.

T h e G r e e n B o o k : Current Economic Trends The Korean government will continue to closely monitor internal and external economic trends as external risks remain, including US quantitative easing tapering, uncertainties in emerging economies, and the weakening of the yen, and at the same time will work to strengthen international cooperation and protect domestic markets from external shocks.

The government will implement policies to ensure that the economic recovery takes hold and will continue to successfully implement the Three-year Plan for Economic Innovation to strengthen Koreaâ&#x20AC;&#x2122;s economic fundamentals.

E c o n o m i c B u l le t i n

1. External economic situation The global economy continues to recover, led by the US. However, downside risk factors remain, such as the US Fedâ&#x20AC;&#x2122;s winding down of its monetary stimulus, a slowdown in emerging economies, and a sales tax hike in Japan. Other risk factors include the Ukrainian crisis, tensions between Russia and Western nations, deflation concerns in the eurozone, and political uncertainties caused by elections in major emerging countries such as South Africa and Indonesia.

World GDP growth 6

(%)

5 4 3 2 1 0 -1 2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

US ISM Manufacturing Index (base=50) 53.1 (Jan 2013) > 55.4 (Jul) > 56.4 (Oct) > 57.3 (Nov) > 56.5 (Dec) > 51.3 (Jan 2014) > 53.2 (Feb) > 53.7 (Mar) > 54.9 (Apr)

Private consumption continues to recover, with the University of Michigan Consumer Sentiment Index surging from 80.0 in March to 84.1 in April, and retail sales increasing 1.2 percent month-on-month in March.

Industrial production in March rose 0.7 percent. The ISM Manufacturing Index, which forecasts business sentiment, posted 54.9 in April, accelerating for the third straight month.

University of Michigan Consumer Sentiment Index 73.8 (Jan 2013) > 85.1 (Jul) > 73.2 (Oct) > 75.1 (Nov) >82.5 (Dec) > 81.2 (Jan 2014) > 81.6 (Feb) > 80.0 (Mar) > 84.1 (Apr)

US GDP growth and industrial production Sources: US Department of Commerce, Federal Reserve Board 10 (%) 8 6 4 2 0 -2 -4 -6 -8 -10 2004.Q1

2005.Q1

2006.Q1

GDP (q-o-q, annualized rate)

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

Industrial production (q-o-q)

The Green Book

The US growth rate in the first quarter of 2014 was 0.1 percent (annualized q-o-q, advanced estimates) , falling short of expectations, but private sector indicators, such as employment and consumption, are gradually improving.

T h e G r e e n B o o k : Current Economic Trends The housing market contined to slow down in March, as existing home sales fell 0.2 percent month-on-month and new home sales also decreased 14.5 percent. Home prices remained unchanged in February.

Nonfarm payrolls rose by 288,000 in April, a 25-month high, and the unemployment rate fell to 6.3 percent. Nonfarm payroll increase (m-o-m, thousand) 148 (Jan 2013) > 89 (Jul) > 237 (Oct) > 274 (Nov) > 84 (Dec) > 144 (Jan 2014) > 222 (Feb) > 203 (Mar) > 288 (Apr)

New home sales (m-o-m, %) 15.7 (Jan 2013) > -17.1 (Jul) > 3.9 (Sep) > 12.2 (Oct) > -0.9

Nonfarm payroll increase in April by industry (Out of

(Nov) > -2.5 (Dec) > 7.6 (Jan 2014) > -4.5 (Feb) > -14.5 (Mar)

288,000 jobs added, thousand) 273 (private sector): 9 (mining), 12 (manufacturing),

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

0.7 (Q1 2013) > 6.0 (Q2) > 5.3 (Q3)

32 (construction), 220 (service)

0.2(Oct2013)> -0.1(Nov)> -0.1(Dec)> -0.1(Jan2014)> 0.0(Feb)

15 (public sector)

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

E c o n o m i c B u l le t i n

800 600

(thousand)

(%)

12 10

400 200

-200

-400 -600

-800 -1000 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

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

2013.1

2014.1

Unemployment rate (right)

(Percentage change from previous period)

2012 Annual Annual

2013 Q2

Jan

2014¹ Feb

Mar

Apr

Real GDP²

2.8

1.9

1.1

2.5

4.1

2.6

0.1

- Personal consumption expenditure

2.2

2.0

2.3

1.8

2.0

3.3

3.0

- Corporate fixed investment - Housing construction investment

7.3

2.7

-4.6

4.7

4.8

5.7

-2.1

12.9

12.2

12.5

14.2

10.3

7.9

-5.7

Industrial production

3.8

2.9

1.0

0.5

0.6

1.2

1.1

-0.2

1.2

0.7

Retail sales

5.3

4.4

1.3

0.5

1.2

0.7

0.1

-0.9

0.8

1.2

Existing home sales

9.9

8.9

1.0

2.3

5.9

-7.8

-6.9

-5.1

-0.4

-0.2

Unemployment rate³

8.1

7.4

7.7

7.5

7.3

7.0

6.7

6.6

6.7

6.3

Consumer prices (y-o-y)

2.1

1.5

1.7

1.4

1.6

1.2

1.4

1.6

1.1

1.5

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

China The Chinese economy grew 7.4 percent in the first quarter of 2014, a slight slowdown compared to the 7.7 percent growth seen in the fourth quarter of 2013, and major indicators such as industrial production, retail sales and investment continued to slow down. The manufacturing PMI continued to rise at a weak pace.

The Chinese government announced on April 2 economic stimulus measures, such as easing the tax burden for small- and medium-sized enterprises (SMEs), boosting investment in railroads, and improving housing conditions for low-income families. On April 25, the government reduced the reserve requirement ratio for rural banks.

Manufacturing PMI (base=50) 51.0(Dec2013)> 50.5(Jan2014)> 50.2(Feb)> 50.3(Mar)> 50.4(Apr)

(Percentage change from same period in previous year)

Real GDP

9.3

7.7

2013¹ Q2 Q3

Dec

7.7

7.4

9.7

8.7

8.6

7.9

7.7

7.5

7.8

9.7

9.5

9.1 10.1 10.0

2014¹ Feb Mar 8.8

Industrial production

13.9

10.0 10.0

Fixed asset investment (accumulated)

23.8

20.6 20.6

19.6 20.9 20.1 20.2 19.6 19.6 17.6

17.93 17.6

Retail sales

17.1

14.3 14.9

13.1 12.4 13.0 13.3 13.5 13.6 12.0

11.83 12.2

Exports

20.7

8.3

9.5

8.6 18.9

4.2

4.0

7.5

4.3 -4.7 -18.1 -6.6

Consumer prices²

5.4

2.6

2.1

2.6

2.4

2.8

2.9

2.5

Producer prices²

6.0

-1.7 -2.3

2.4

2.3

-1.9 -1.7 -2.7 -1.7 -1.4 -1.4 -2.0

2.0

2.4

-2.0 -2.3

1. Preliminary 2. Quarterly change: average of monthly change 3. January-February aggregate Source: China National Bureau of Statistics

China’s GDP growth and fixed asset investment Source: China National Bureau of Statistics 18

(%) 70

(%)

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)

The Green Book

2011 2012¹ Annual Annual Q4 Annual Q1

T h e G r e e n B o o k : Current Economic Trends

Japan In Japan, retail sales surged in March ahead of a sales tax hike (5% > 8%) beginning in April 1, and related indicators improved in the first quarter of 2014 as well. The consumer price index (CPI) rose 1.6 percent month-on-month in March, while the core CPI increased 1.3 percent.

(Percentage change from previous period)

2011 2012¹ Annual Annual Q4

Annual

2013¹ Q2 Q3

Dec

2014¹ Feb

Mar

E c o n o m i c B u l le t i n

Real GDP

-0.5

1.4

0.0

1.5

1.1

1.0

0.2

Industrial production

-2.4

-0.5

-0.1

0.2

0.1

-0.1

1.3

0.6

1.1

2.8

-2.3

0.3

Retail sales

-1.2

0.0

0.1

0.2

0.1

0.4

0.1

-1.1

3.9

0.3

6.3

Exports (y-o-y)

-2.7

-2.8

-5.5

9.7

1.2

7.1

12.8

17.4

15.3

7.0

9.8

1.8

Consumer prices (y-o-y)

-0.3

-0.0

-0.2

0.4

-0.6

-0.3

0.9

1.4

1.6

1.5

1.6

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 Source: Japan's Cabinet Office, Ministry of Economy, Trade and Industry 6

(%)

25 20 15 10

5 0

-5 -2

-10 -15

-4

-20 -25

-6

-30

-8 2004.Q1

2005.Q1

GDP (q-o-q, left)

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

Industrial production (q-o-q, right)

Eurozone The eurozone continues on a gradual recovery path, but unemployment rates remain high and deflation concerns are rising as consumer prices continued to fall. Manufacturing PMI (base=50) 47.9 (Jan 2013) > 50.3 (Jul) > 51.1 (Sep) > 51.3 (Oct) > 51.6 (Nov) > 52.7 (Dec) > 54.0 (Jan 2014) > 53.2 (Feb) > 53.0 (Mar) > 53.3 (Apr) Unemployment rate (%) 11.9 (Jan 2013) > 12.0 (Mar) > 12.0 (May) > 12.0 (Jul) > 12.0 (Aug) > 12.0 (Sep) > 11.9 (Oct) > 11.9 (Nov) > 11.8 (Dec) > 11.8 (Jan 2014) > 11.8 (Feb) > 11.8 (Mar)

(Percentage change from previous period)

2012 Annual Annual

2013 Q2

Jan

Mar

Apr

Real GDP

-0.6

-0.4

-0.2

0.3

0.1

0.2

Industrial production

-2.5

-0.7

0.3

0.7

0.0

0.5

0.0

0.2

Retail sales

-1.7

-0.9

0.1

0.2

0.5

-0.5

0.7

1.0

0.1

0.3

Exports (y-o-y)

7.6

1.0

1.8

0.3

1.0

0.9

2.9

Consumer prices (y-o-y)

2.4

1.4

1.6

1.1

0.8

0.7

0.8

0.7

0.5

0.7

1. Preliminary Sources: Eurostat, Bloomberg

Eurozoneâ&#x20AC;&#x2122;s GDP growth and industrial production Source: Eurostat 3

10 (%)

(%)

8 6 4

2 0

-2 -1

-4 -6

-2

-8 -10

-3

-12

-4 2004.Q1

2005.Q1

GDP (q-o-q, left)

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

Industrial production (q-o-q, right)

9 The Green Book

2014Âš Feb

T h e G r e e n B o o k : Current Economic Trends

2. Private consumption

Private consumption in the first quarter of 2014 (advanced estimates of GDP) increased 0.3 percent compared to the previous quarter and 2.6 percent compared to a year ago.

(Percentage change from previous period)

2011 Annual Annual

2012 Q2

Annual

2013¹ Q2

2014¹ Q1

Private consumption²

2.9

1.9

0.8

0.2

1.2

0.4

2.0

-0.1

0.7

1.0

0.6

0.3

(y-o-y)

1.7

0.7

2.6

2.7

1.7

2.1

2.2

2.6

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

Private consumption

Source: The Bank of Korea (national accounts) 8

(%)

E c o n o m i c B u l le t i n

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)

2013.Q1

2014.Q1

Private consumption (y-o-y)

Retail sales in March rose 1.6 percent compared to the previous month as growth in semi-durable goods (up 3.7%) and nondurable goods (up 5.4%)

offset sharp declines in durable goods (down 6.2%). Compared to a year ago, retail sales rose 2.1 percent.

Retail sales Source: Statistics Korea (industrial activity trends) 15

(%)

10 5 0 -5 -10 2004.1

2005.1

Retail sales (m-o-m)

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Retail sales (y-o-y)

Retail sales by type Source: Statistics Korea (industrial activity trends) 50

(y-o-y, %)

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

2005.1

2006.1

2007.1

2008.1

2009.1

Durable goods

2010.1

2011.1

2012.1

2013.1

2014.1

Nondurable goods

Semi-durable goods

(Percentage change from previous period)

Annual

2013¹ Q2 Q3

Dec

Q1¹

2014¹ Feb¹ Mar¹

Retail sales

1.4

-0.1

-1.0

0.9

0.8

0.3

-1.2

0.4

-3.0

1.6

(y-o-y)

4.5

2.4

2.7

2.5

0.8

0.3

1.2

0.7

1.2

0.2

2.5

-0.4

2.1

- Durable goods²

10.3

5.3

3.2

2.1

0.3

-4.1

1.8

-0.3

0.2

-2.1

4.4

0.7

-6.2

· Automobiles

7.0

2.4

-4.4

12.0

2.1

-7.2

2.2

2.1

-2.1

-4.4

12.0

-2.6

-0.8

- Semi-durable goods³

4.2

-0.4

-0.1

1.1

2.0

1.4

-0.4

0.9

-0.8

-0.7

-1.3

3.2

3.7

- Nondurable goods4

2.1

2.0

1.3

-1.8

0.6

-0.6

1.3

1.5

0.8

-0.7

-1.1

-7.5

5.4

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 are likely to slow down in April due to the Sewol ferry disaster that occured on April 16. Credit card use grew at a slower pace, while domestic sales of cars rose at a faster pace due to the introduction of new models. Sales at department

stores and large discount stores contracted, which is a disappointment considering last year’s low base, when department store sales declined 1.9 percent and large discount store sales fell 9.8 percent. (y-o-y, %)

2013 Credit card use Department store sales

2014

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

1.0

5.1

4.2

3.6

9.1

2.5

7.0

5.2

2.8

-2.2

5.3

-0.3

6.8

-2.4

-1.1

-0.1

Large discount store sales

-5.3

-6.4

1.0

-5.7

18.6

-23.1

-3.7

Domestic sales of gasoline

1.3

-2.0

0.4

2.6

-2.9

2.2

-0.2

0.3

-14.5

-3.0

-8.5

-11.8

4.1

9.6

0.9

10.1

Domestic sales of cars

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 March data)

The Green Book

2011 2012 Annual Annual Q3

T h e G r e e n B o o k : Current Economic Trends

3. Facility investment

Facility investment (advanced estimates of GDP) declined 1.3 percent quarter-on-quarter but rose 8.0 percent year-on-year in the first quarter of 2014.

(Percentage change from previous quarter)

2011 Annual Annual

2012 Q3

Annual¹

2013¹ Q2

2014¹ Q1

Facility investment²

4.7

0.1

-3.2

-3.3

-1.5

1.5

1.0

2.7

5.6

-1.3

(y-o-y)

-4.2

-4.0

-12.7

-3.9

1.5

10.9

8.0

- Machinery

4.4

0.3

-4.4

-5.3

-3.5

-2.6

4.4

6.5

3.7

- Transportation equipment

5.4

-0.4

0.1

1.8

4.0

11.3

-6.4

-6.5

3.7

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

12 Facility investment E c o n o m i c B u l le t i n

Source: The Bank of Korea (national accounts) 40

(%)

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

Facility investment (q-o-q)

2013.Q1

2014.Q1

Facility investment (y-o-y)

The facility investment index in March rose 1.5 percent month-on-month as increases in transportation equipment investment offset decreases in machinery investment. The index rose 7.4 percent year-on-year. (Percentage change from previous quarter)

2011 2012 Annual Annual Annual Facility investment index

3.5

-2.8

20131 Q2

-1.3

-3.1

1.1

5.0

5.9

Q11

2014¹ Jan Feb1

-5.1

-4.4

-0.5

Mar1 1.5

(y-o-y)

-13.1

-4.0

2.7

10.4

6.0

-1.6

12.5

7.4

- Machinery

4.9

-2.7

-2.6

-3.5

2.9

4.5

7.3

-8.7

3.0

-1.3

-0.4

-3.0

2.3

-2.0

-4.0

6.4

2.5

5.2

8.0

-9.3

9.4

- Transportation equipment 1. Preliminary Source: Statistics Korea

Facility investment by type Source: The Bank of Korea (national accounts) 60

(y-o-y, %)

50 40 30 20 10 0 -10 -20 -30 -40 2004.Q1

2005.Q1

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

Transportation equipment

2013.Q1

Machinery

Business survey index for manufacturing sector (Bank of Korea) 73 (Aug 2013) > 77 (Sep) > 82 (Oct) > 83 (Nov) > 78 (Dec) > 79 (Jan 2014) > 81 (Feb) > 85 (Mar) > 86 (Apr) > 86 (May)

Leading indicators of facility investment Sources: Statistics Korea (machinery orders), Korea International Trade Association (machinery imports) 11

(y-o-y, %)

(trillion won)

80 70

40 30

10 0

-10

-20 -30

-40

-50

2004.Q1

2005.Q1

2006.Q1

Machinery orders (left)

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

Machinery imports (right)

The Green Book

Facility investment is expected to be positively influenced by exports and an improvement in corporate investment sentiment.

T h e G r e e n B o o k : Current Economic Trends (Percentage change from same period in previous year)

2011 2012 Annual Annual Annual Domestic machinery orders

7.6

-13.9

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

-Public

-2.6

-11.0

-Private

8.8

-14.2

Machinery imports

7.1

-3.0

80.5

78.5

76.2

1.3

-0.7

-1.4

Average manufacturing operation ratio Facility investment adjustment pressure²

2013 Q2

Q1¹

2014¹ Jan Feb¹

Mar¹

6.7 -11.4

8.8

2.2

32.4

18.6

-7.1

10.9

47.7

6.8

3.9

-6.9

27.7

-2.3

3.9

7.0

33.1

20.6 -47.0

94.2

5.2

-9.7 129.7 185.1 -37.2 -27.2 737.3

-6.1

4.0

3.8

22.1

4.8

-4.9

18.7

5.0

6.5 -11.8

-2.1

6.8

13.2

2.3

-9.9

11.9

5.6

77.3

75.9

75.1

76.6

77.1

78.2

75.9

77.2

-2.6

-1.6

-1.7

0.3

-0.6

-5.9

3.2

1.5

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

14 E c o n o m i c B u l le t i n

4. Construction investment

Construction investment (advanced estimates of GDP) in the first quarter of 2014 rose 4.8 percent quarter-on-quarter and 4.1 percent year-on-year. (Percentage change from previous quarter)

2011¹ 2012¹ Annual Annual Q3 Construction investment² (y-o-y)

-3.4 -

-3.9 -

Annual

1.2

-2.4 -6.2

6.7 -

6.5

-2.7

1.9

2013¹ Q2

2014¹ Q1

4.6

0.2

-5.2

4.8

9.8

8.8

5.4

- Building construction

-1.7

-1.6

1.7

-1.6

8.8

5.4

7.2

0.5

-4.0

4.1 -

- Civil engineering works

-5.7

-7.1

0.4

-3.6

3.7

8.1

1.0

-0.1

-6.9

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

Construction investment Source: The Bank of Korea (national accounts) 15 (%) 10

-5 -10 2004.Q1

2005.Q1

2006.Q1

Construction investment (q-o-q)

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

Construction investment (y-o-y)

The value of construction completed (constant) in March fell 3.8 percent month-on-month as both building construction and civil engineering works declined. The index increased 2.3 percent year-on-year. (Percentage change from previous period)

Construction completed (constant) (y-o-y) - Building construction - Civil engineering works

2011 2012 Annual Annual Annual -6.4 -5.0 10.1 -6.9 -6.6 14.8 -5.6 -3.0 4.3

Q1 3.5 4.4 5.6 1.0

2013 Q2 6.3 15.0 7.7 4.6

Q3 -0.1 10.5 0.4 -0.9

Q4 -0.7 9.7 2.9 -5.5

Q1¹ 1.4 6.4 6.1 -5.3

2014¹ Jan Feb¹ 8.4 -3.4 11.4 6.6 10.9 -2.0 4.6 -5.6

Mar¹ -3.8 2.3 -3.8 -3.8

1. Preliminary Source: Statistics Korea

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

(y-o-y, %)

30 20

The Green Book

10 0 -10 -20 -30 2004.Q1

2005.Q1

2006.Q1

Building construction

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

Residential buildings

2012.Q1

2013.Q1

Civil engineering works

Construction investment is expected to improve as unsold new houses are declining and new apartment sales are increasing. Unsold houses (thousand, Ministry of Land, Infrastructure and Transport) 65 (Jun 2013) > 68 (Jul) > 68 (Aug) > 66 (Sep) > 64 (Oct) > 64 (Nov) > 61 (Dec) > 59 (Jan 2014) > 52 (Feb) > 48 (Mar) New apartment sales (thousand, Ministry of Land, Infrastructure and Transport) 40 (Jun 2013) > 14 (Jul) > 28 (Aug) > 24 (Sep) > 50 (Oct) > 44 (Nov) > 12 (Dec) > 6 (Jan 2014) > 11 (Feb) > 24 (Mar) > 31 (Apr) (Percentage change from same period in previous year)

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

2011 2012 2013 Annual Annual Annual Q1 Q2 Q3 6.1 -6.2 -15.3 -40.8 -29.5 -10.6 -2.2 0.3 16.8 14.0 -4.7 -13.4 -34.0 -29.6 -10.8 -6.0 -9.1 -19.2 -50.4 -29.4 -10.0 9.9 -0.5 -7.3 -12.4 -14.6 -3.4

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

Q4 22.4 2.8 17.9 33.4 -0.2

2014¹ Q1¹ Jan Feb¹ 13.4 49.5 17.1 -3.2 4.2 9.5 7.9 70.5 -4.3 24.0 26.9 66.1 18.4 -16.4 66.1

Mar¹ -13.0 -32.1 -12.1 -15.0 13.0

T h e G r e e n B o o k : Current Economic Trends Leading indicators of construction investment Sources: Statistics Korea (construction orders), Ministry of Land, Infrastructure and Transport (building permit area) 340

(y-o-y, %)

290 240 190 140 90 40 -10 -60 -110 -160 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

Construction orders

2014.1

Building permit area

E c o n o m i c B u l le t i n

5. Exports and Imports

Export growth by item (y-o-y, %) 22.7 (vessels), 18.9 (automobiles), 17.2 (petroleum products), 16.8 (steel), 14.4 (mobile phones), 12.3

Exports in April increased 9.0 percent (preliminary) year-on-year to US$50.31 billion.

(semiconductors)

Exports continued to grow with most trading partners, led by the US and the ASEAN countries. Exports exceeded US$50 billion for the second time in history, after having reached US$50.50 billion in October 2013.

19.3 (US), 17.0 (ASEAN countries), 12.2 (Japan), 2.4 (China),

Export growth by region (y-o-y, %) -3.2 (EU)

Average daily exports, an indicator adjusted to days worked, was up 9.0 percent year-on-year, posting US$2.10 billion in April. Average daily export growth (y-o-y, %)

Shipments of mobile phones and semiconductors continued to grow, while shipments of petroleum products, which had been weak so far, turned positive.

2.3 (Nov 2013) > -0.1 (Dec) > 8.9 (Jan 2014) > -3.3 (Feb) > 2.8 (Mar) > 9.0 (Apr) (US$ billion)

2013 Exports (y-o-y, %) Average daily exports 1. Preliminary Source: Korea Customs Service

2014

Annual

Apr

Feb

Mar

Aprยน

559.63

135.32

141.16

136.79

146.37

46.16

138.25

42.94

49.72

50.31

2.1

0.3

0.7

2.8

4.7

0.1

2.2

1.4

5.1

9.0

2.05

2.02

2.06

2.00

2.11

1.92

2.08

2.00

2.16

2.10

Exports by item Sources: Korea Customs Service, Ministry of Trade, Industry and Energy (export and import trends) 140 120

(y-o-y, %)

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

2005.1

2006.1

2007.1

Export growth rate

2008.1

2009.1

2010.1

Semiconductors

2011.1

2012.1

2013.1

2014.1

Automobiles

Steel

Imports in April rose 5.0 percent (preliminary) year-on-year to US$45.85 billion.

Import growth by category (y-o-y, %) 2.6 (commodities), 7.0 (capital goods), 13.2 (consumer goods) (US$ billion)

Imports

Annual

2013 Q2 Q3

2014 Q4

Apr

Feb

Mar

Aprยน

515.58

129.73

126.76

126.03

133.06

43.65

132.40

42.04

45.55

45.85

(y-o-y, %)

-0.8

-2.9

-2.8

0.3

2.5

-0.7

2.1

3.9

3.6

5.0

Average daily imports

1.89

1.94

1.85

1.84

1.91

1.82

1.99

1.96

1.98

1.91

1. Preliminary Source: Korea Customs Service

Imports by item Sources: Korea Customs Service, Ministry of Trade, Industry and Energy (export and import trends) 80

(y-o-y, %)

60 40 20 0 -20 -40 -60 2004.1

2005.1

Import growth rate

2006.1

2007.1

2008.1

2009.1

Commodities

2010.1

2011.1

2012.1

2013.1

2014.1

Capital goods

The Green Book

Despite a slight slowdown in consumer goods import growth, imports grew faster as capital goods and commodities import growth improved.

T h e G r e e n B o o k : Current Economic Trends Exports and imports Sources: Korea Customs Service, Ministry of Trade, Industry and Energy (export and import trends) 70

(US$ billion)

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

E c o n o m i c B u l le t i n

The trade balance (preliminary) in April remained in the black for the 27th consecutive month, posting a surplus of US$4.46 billion. (US$ billion)

Trade balance

Annual

44.05

5.59

2013 Q2 14.40

2014 Q3

Apr

Feb

Mar

Aprยน

10.76

13.30

2.51

5.85

0.90

4.16

4.46

1. Preliminary Source: Korea Customs Service

6. Mining and manufacturing production Mining and manufacturing production rose 0.9 percent month-on-month in March, as gains in mining and manufacturing offset declines in utilities. Compared to the same period in the previous year, the index was up 2.7 percent. Compared to the previous month, production of mechanical equipment (down 4.7%), primary metals (down 3.0%) and other transportation equipment

(down 10.3%) fell, while semiconductors & parts (up 5.1%), automobiles (up 5.0%) and refined petroleum (up 9.6%) rose. Compared to a year ago, production of other transportation equipment (down 20.4%) and nonmetallic minerals (down 5.6%) declined, while automobiles (up 15.5%), processed metals (up 9.6%) and semiconductors & parts (up 3.7%) rose.

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

2010.1

2011.1

2012.1

Industrial production (m-o-m)

2013.1

2014.1

Industrial production (y-o-y)

Inventories of semiconductors & parts (up 5.9%) , automobiles (up 6.7%) and primary metals (up 2.9%) rose month-on-month, while refined petroleum (down 4.1%) , electrical equipment (down 4.0%) and audio-visual communications equipment (down 5.7%) declined.

Shipments of other refined petroleum (up 9.7%) , processed metals (up 9.6%) and automobiles (up 2.8%) climbed, while other transportation equipment (down 18.8%), nonmetallic minerals (down 6.1%) and mechanical equipment (down 0.6%) declined from the previous month. The average operation ratio of the manufacturing sector rose 1.3 percentage points month-on-month to 77.2 percent.

Shipment and inventory Source: Statistics Korea (industrial activity trends) 10 8

(m-o-m, %)

6 4 2 0 -2 -4 -6 -8 -10 -12 2004.1

2005.1

Shipment growth

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Inventory growth

The Green Book

The manufacturing inventory-shipment ratio rose 0.9 percentage points month-on-month as inventories rose 2.0 percent and shipments rose 1.3 percent.

T h e G r e e n B o o k : Current Economic Trends Average manufacturing operation ratio Source: Statistics Korea (industrial activity trends) 100

(%)

50 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

In April, mining and manufacturing production is expected to be affected by positive factors, such as increasing exports, and negative factors, such as a temporary sales ban on wireless carriers.

E c o n o m i c B u l le t i n

(Percentage change from previous period)

2012 2013¹ Q2 Annual Annual¹ Q1

Q4¹

Q1¹

2014¹ Jan¹ Feb¹ Mar¹

Mining production (q-o-q, m-o-m)

-0.5

-0.9

0.1

1.9

0.3

-0.2

-1.9

(y-o-y)

1.3

0.3

-0.8

0.0

0.2

1.7

0.7

-4.3

4.1

2.7

Manufacturing production (q-o-q, m-o-m)

-0.4

-1.0

0.0

2.1

0.4

0.0

-2.1

0.9

1.4

0.3

-0.8

0.0

0.1

1.8

0.7

-4.8

3.3

2.2

1.4

0.4

-0.3

-0.6

-0.1

1.7

-0.2

-0.9

-1.1

1.3

-0.7

-1.4

-1.7

-1.1

1.6

1.7

0.1

-0.5

-1.1

0.6

- Exports

4.2

2.3

1.6

-0.2

-2.0

1.6

-0.3

-1.5

-1.1

2.2

Inventory³

4.3

5.0

-0.6

-2.1

5.7

2.4

1.4

-0.8

0.2

2.0

Manufacturing Average operation ratio (%) activity Production capacity4

78.5

Mining and (y-o-y) manufacturing Shipment activity² - Domestic demand

2.1

0.9

76.2 77.3 75.9 75.1 76.6 77.1 78.2 75.9 77.2 1.7

1. Preliminary

2. Including mining, manufacturing, electricity and gas industry

3. End-period

4. Percentage change from same period in previous year

1.8

1.6

1.8

1.7

1.3

1.4

1.2

1.3

Source: Statistics Korea

7. Service sector activity Service output in March rose 0.1 percent month-on-month, as growth in hotels & restaurants (up 2.4%) and real estate & renting (up 3.1%) offset declines in membership organizations & personal services (down 7.1%). Compared to the same period of the previous year, service output increased 2.1 percent. Service output growth in the first quarter of 2014 (up 0.4%, q-o-q) was slower compared to the fourth quarter of the previous year (up 0.9%, q-o-q).

Wholesale & retail grew 0.7 percent in March, led by increasing sales at department stores and large discount stores. Hotels & restaurants were up 2.4 percent, while real estate & renting rose 3.1 percent. Transportation services continued to decline, falling 0.4 percent month-on-month. In April, hotels & restaurants are likely to decline, as the nation went into mourning following the ferry disaster that occurred in April 16. Financial & insurance services are also expected to slow down. Average daily stock transactions (trillion won) 4.6 (Dec 2013) > 5.5 (Jan 2014) > 5.4 (Feb) > 5.6 (Mar) > 5.6 (Apr)

Service sector activity Source: Statistics Korea (industrial activity trends) 20

(%)

15 10

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)

2013.1

2014.1

Service sector activity (y-o-y)

(Percentage change from previous period)

2012 Weight Annual Q4 Annual Q1

2013 Q2 Q3

Service activity index

100.0

1.6

0.1

0.4

- Wholesale & retail

21.6

0.8

0.3

1.4

0.2

-0.2 -0.8

0.2

0.9 -0.1

0.4 -0.6

0.1

0.1 -0.1

0.6 -1.5

0.0 -1.3

0.7

0.6

1.6 -2.4 -0.4

- Transportation services

8.5

1.2 -0.1

1.1

0.7

0.1 -1.0

- Hotels & restaurants

7.2

-1.2 -2.4

0.4

0.1

0.6

- Publishing & communications services

8.4

3.0 -0.3

1.9

0.6 -1.0

- Financial & insurance services

2014ยน Dec Q1ยน Febยน Marยน

2.4

2.7 -0.9 -3.1 -1.5 -5.0 0.9

3.4 -0.9 -1.9

14.7

2.8

1.0

0.5 -0.1 -1.1 -0.5

0.6

1.0

- Real estate & renting

5.3

-4.8

0.7

2.5 -2.2

7.4 -3.6

3.6

0.1 -4.6

- Professional, scientific & technical services

5.6

3.7 -0.2

3.3

0.2

4.9 -2.9

0.7 -2.1

0.0

- Business services

3.3

3.5

0.2

2.2

1.6 -0.4

1.6

0.4

1.2 -0.7

- Education services

0.2

2.4

0.8 -2.0

2.3 -0.2 3.1

0.2 3.1

1.1 -1.1 2.3

10.9

0.9

0.8

0.8 -1.0

1.2

0.7 -0.6

1.0

0.7 -0.4

- Healthcare & social welfare services

7.5

6.7

0.7

5.0

0.8

1.1

2.5

1.6

0.3

1.5

1.6

0.0

- Entertainment, cultural & sports services

2.9

2.8 -3.0

-0.5

1.7

0.6

0.2 -0.2

3.2

1.2 -8.0

3.1

- Membership organizations & personal services - Sewerage & waste management

3.6

-1.4

0.0

5.3

3.1 -0.7

3.5

0.2

3.5

1.3

0.6

-0.6 -4.3

-0.4

0.5

0.9

1.2

5.1

0.2 -1.9

1. Preliminary Source: Statistics Korea

0.6

1.7 -7.1 6.1

The Green Book

T h e G r e e n B o o k : Current Economic Trends March 2014 service output by business Source: Statistics Korea (industrial activity trends) 12 10

(y-o-y, %) Sewerage & waste management

8 6 Transportation services

Total index Wholesale & retail

-4

Education services

Real estate & renting

-2

Professional, scientific & technical services

Publishing & communications services

Hotels & restaurants

Financial & insurance services

Business services

Entertainment, cultural & sports services

Health & social welfare services

Membership organizations & personal services

-6 -8

22 E c o n o m i c B u l le t i n

8. Employment The number of workers on payroll in March increased by 649,000 from a year earlier to 25,160,000 and the employment rate rose 1.0 percentage points to 59.4 percent. By industry, employment improved in manufacturing, compared to the previous month, and services added over 500,000 jobs. By employment status, the number of regular workers continued to increase, but nonwage workers decreased.

Number of persons employed and employment growth Source: Statistics Korea (employment trends) 1,000

(thousand)

(million)

800 25 600 24

400 200

0 22 -200 -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)

Employment rate Source: Statistics Korea (employment trends) (%)

62 61 60 59 58 57 56

2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

Original data

2013.1

2014.1

Seasonally adjusted rate

Employment by industry Source: Statistics Korea (employment trends)

100

80 71.0 70.8 70.3 69.7 69.2 69.1 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

40 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 7.2 7.1 7.2 7.2 7.2 7.2 7.1 7.1 7.1 20

16.3 16.4 16.5 16.6 16.7 16.9 17.1 17.4 17.3 16.9 16.7 16.4 16.4 16.4 16.3 16.4 16.5 16.7 17.1 17.3 17.2 17.0 17.0 17.1 16.6 16.3 16.2 4.4

4.7 5.6 6.5

2012.1 2

7.0 5

7.0 6.8

6.8

6.8 6.9

6.5

4.9 4.3 4.6

5.6

12 2013.1 2

Services

Construction

6.3 6.7

6.9 6.7

6.8

6.8 6.9 6.2

4.7

12 2014.1 2

Manufacturing

4.4 4.5 5.3 3

Agriculture, forestry & fisheries

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

4.5

4.8

5.1

5.4

5.3

5.4

5.3

5.2

4.5

4.2

4.7

5.0

5.2

5.1

5.2

5.3

5.1

4.3

4.2

4.3

4.6

23.1 23.1 23.4 23.4 23.3 23.2 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 6.5

4.5

6.5

6.3

6.6

6.8

6.7

6.4

6.7

6.8

6.6

6.2

6.0

6.5

6.7

6.3

6.1

6.3

6.5

6.4

6.3

6.0

5.7

19.2 19.4 19.6 20.5 20.5 20.6 20.6 20.5 20.3 20.2 19.9 19.8 19.8 19.9 20.0 19.9 19.7 19.5 19.5 19.5 19.5 19.6 19.2 19.4 19.4 19.5 19.5

45.4 45.4 44.9 44.3 44.0 44.4 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

0 2012.1 2

Unpaid family workers

Self-employed workers

12 2013.1 2

Daily workers

Temporary workers

12 2014.1 2

Regular workers

The Green Book

T h e G r e e n B o o k : Current Economic Trends 2010 2011 2012 Annual Annual Annual Q3 Q4 Annual Q1 Number of employed (million)

Q4 Mar Q1

2014 Feb Mar

23.83 24.24 24.68 24.99 24.80 25.07 24.18 25.33 25.41 25.35 24.51 24.91 24.82 25.16

Employment rate (%)

58.7 59.1 59.4 60.0 59.4 59.5 57.7 60.2 60.3 60.0 58.4 58.8 58.6 59.4

(Seasonally adjusted)

58.7 59.1 59.4 59.5 59.3 59.5 59.2 59.4 59.7 59.9 59.2 60.4 60.6 60.2

Employment growth (y-o-y, thousand)

323 415 437 506 342 386 257 324 421 541 249 729 835

649

(Excluding agriculture, forestry & fisheries)

405 440 451 504 344 394 266 351 402 556 244 717 806

690

- Manufacturing

191

85 140

143

-2

17 -40

- Construction - Services

2013 Q2 Q3

79 119 122 -19 -64

-6

26 4

49 123 123 135 -9 -51

200 386 416 397 236 318 199 212 354 507 156 570 612

551

- Agriculture, forestry & fisheries

-82

-41

- Wage workers

517 427 315 317 303 483 329 472 526 604 322 711 803

654

路 Regular workers

697 575 436 485 469 615 554 638 632 637 611 606 635

524

路 Temporary workers

-34

-25

-78

-14

-2

-2 -79 -109

-8

-9 -27

19 -15

-96 -152 -169 -65

2 -228

157 -27

E c o n o m i c B u l le t i n

路 Daily workers

-146

-70 -120 -89 -57

-37 -73

3 -42 -35 -61

- Nonwage workers

-194

-11 121 189

-97 -71 -148 -105 -63 -73

-5

路 Self-employed workers

-118

1 124 143

-67 -28 -104 -83 -54 -48

-7 -12

-18

- Male

181 238 234 284 172 186 123 179 179 262 148 373 453

285

- Female

142 177 203 223 170 200 135 145 242 279 101 357 382

364

- 15 to 29

-43

-35

-36 -57 -80

-50 -117 -88 -41

- 30 to 39

-4

-47

-31

-21 -15

- 40 to 49

- 50 to 59 - 60 or more

33 -10

46 -128

-24

99 109

294 291 270 273 220 254 196 254 279 285 213 323 357

292

47 149 222 245 215 181 181 156 187 200 191 218 228

215

-3

-6

-1

53 -26

-6

8 -34 -42

97 148

Source: Statistics Korea

The number of unemployed persons in March increased by 141,000 year-on-year to 1,024,000, and the unemployment rate rose 0.4 percentage points year-on-year to 3.9 percent. The unemployment rate rose in all age groups.

Unemployment rate Source: Statistics Korea (employment trends) 6

(%)

2 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

2010 2011 2012 2013 2014 Annual Annual Annual Q3 Q4 Annual Q1 Q2 Q3 Q4 Mar Q1 Feb Mar Number of unemployed (thousand)

920

855

820 770 722

807 907 812 777 733 883 1,031 1,178 1,024

Unemployment growth (y-o-y, thousand)

-65

-35 -16 -18

-13 -40 -29

- Male

-7

-48

-26 -16 -13

- Female

-17

Unemployment rate (%)

3.7

3.4

3.2 3.0 2.8

(Seasonally adjusted)

3.7

3.4

3.2 3.1 3.0

-9

-6

11 -62 125 189 141

-7 -42

-4

18 -20

84 145

3.1 3.6 3.1 3.0 2.8 3.5

4.0

4.5

3.9

3.1 3.3 3.1 3.1 3.0 3.1

3.5

3.9

3.5

-6

-7 -20

-7 -33

-9

-15 to 29

8.0

7.6

7.5 6.8 7.0

8.0 8.4 7.9 7.9 7.9 8.6

9.8 10.9

9.9

- 30 to 39

3.5

3.4

3.0 2.8 2.7

3.0 3.3 3.0 2.9 2.6 3.2

3.2

3.6

3.4

- 40 to 49

2.5

2.1

2.0 2.0 1.8

2.0 2.1 2.1 1.9 1.7 2.3

2.3

2.4

- 50 to 59

2.5

2.1

2.1 2.2 1.8

1.9 2.3 1.8 1.8 1.5 2.2

2.2

2.3

2.4

- 60 or more

2.8

2.6

2.4 1.9 1.6

1.8 3.4 1.6 1.2 1.4 2.3

4.4

6.2

3.0

Source: Statistics Korea

The number of those economically inactive due to old age (up 96,000, y-o-y) and disabilities (up 11,000, y-o-y) increased, while those due to housework (down 202,000, y-o-y) , rest (down 174,000, y-o-y) , education (down 61,000, y-o-y) and childcare (down 55,000, y-o-y) decreased.

Labor force participation rate Source: Statistics Korea (employment trends) 65

(%)

59 58 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

The Green Book

The economically inactive population in March was down 372,000 from a year earlier to 16,190,000, while the labor force participation rate rose 1.3 percentage points to 61.8 percent.

T h e G r e e n B o o k : Current Economic Trends

2010 2011 2012 Annual Annual Annual Q3 Q4 Annual Q1

2013 Q2 Q3

Q4 Mar Q1

2014 Feb Mar

Economically inactive population (million) 15.84 15.95 16.08 15.90 16.26 16.22 16.83 15.91 15.98 16.17 16.56 16.40 16.35 16.19 Labor force participation rate (%)

61.0 61.1 61.3 61.8 61.1 61.5 59.9 62.2 62.1 61.7 60.5 61.3 61.4 61.8

(seasonally adjusted) Growth in economically inactive population (y-o-y, thousand)

61.0 61.1 61.3 61.4 61.1 61.5 61.2 61.3 61.6 61.7 61.2 62.6 63.0 62.4

- Childcare

143

128 -2

57 244 -7

-5

201

101

123 101 126

-3 143

- Education

-51

-12

77 118 147

88 -44 136 -76 -94

- Old age

-45

148 156 186

54 154

21 129

-56

182

-53 -142 -125

-7 -106

21 -68 -197 -263 -174

78 -91 359 -433 -606 -372

-125

-3

141 336 242

- Housework

- Rest

112

9 -14

17 -29 -15

-55

36 -80 -112 117 -230 -282 -202

-61 96

Source: Statistics Korea

E c o n o m i c B u l le t i n

9. Financial markets 9.1 Stock market The Korean stock price index in April fell 1.2 percent to 1,962 points from 1,986 points in the previous month. The KOSPI was up earlier in the month as concerns over an early interest rate hike by the US Fed eased and also as foreign investors continued to buy shares, but later declined due to the Ukrainian unrest.

Stock prices 2,200 2,000

(monthly average)

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

KOSDAQ

(End-period)

Mar 2014

KOSPI Apr 2014

Stock price index (points)

1,985.6

1,961.8

-23.8 (-1.2%)

541.6

559.3

17.7 (3.3%)

Market capitalization (trillion won)

1,182.5

1,168.0

-14.5 (-1.2%)

131.7

134.6

2.9 (2.2%)

3.7

3.6

-0.1 (-2.7%)

1.9

2.1

0.2 (10.5%)

34.8

35.1

0.3 (0.9%)

10.4

10.6

0.2 (1.9%)

Average daily trade value (trillion won) Foreign stock ownership (%)

Change¹

Mar 2014

KOSDAQ Apr 2014

Change¹

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

9.2 Exchange rate

The 100 yen-won exchange rate fell from 1,035.0 won in March to 1,009.2 won in April, as the yen lost appeal as a safe-haven asset and the current account surplus continued in Korea. (End-period)

2008 Dec

2009 Dec

2010 Dec

2011 Dec

2012 Dec

2013 Dec

Apr

2014 Change¹

Dollar-Won

1,259.5

1,164.5

1,134.8

1,151.8

1,070.6

1,055.4

1,033.2

2.1

100 Yen-Won

1,396.8

1,264.5

1,393.6

1,481.2

1,238.3

1,002.3

1,009.2

-0.7

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

100 Yen-Won

27 The Green Book

The dollar-won exchange rate in April fell 31.5 won to 1,033.2 won from 1,064.7 won at the end of March. The dollar-won exchange rate declined due to the weakening of the dollar, continuing current account surplus, and foreign investors’ buying of Korean shares.

T h e G r e e n B o o k : Current Economic Trends Daily foreign exchange rate trend 1,800

(\)

1,600

1,400

1,200

1,000 800 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Dollar-Won

100 Yen-Won

9.3 Bond market E c o n o m i c B u l le t i n

3-year Treasury bond yields remained unchanged in April at 2.87 percent. Bond markets were stable, as concerns over early rate hikes in the US eased.

Interest rates Source: The Bank of Korea 10

(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

3-yr Treasury bond yield

2013.1

2014.1

3-yr corporate bond yield

(End-period, %)

2009 Dec

2010 Dec

2011 Dec

2012 Dec

2013 Dec

Jan

Feb

2014 Mar

Apr

Changeยน

Call rate (1 day)

2.01

2.51

3.29

2.77

2.52

2.51

2.49

2.50

CD (91 days)

2.88

2.80

3.55

2.89

2.66

2.65

Treasury bonds (3 yrs)

4.44

3.38

3.34

2.82

2.86

2.88

2.85

2.87

Corporate bonds (3 yrs)

5.56

4.27

4.21

3.29

3.30

3.28

3.30

Treasury bonds (5 yrs)

4.98

4.08

3.46

2.97

3.23

3.22

3.13

3.16

3.17

1. Basis point, changes from the previous month

9.4 Money supply & money market

M2 (monthly average) in February rose 5.2 percent from a year earlier. Private sector credit expanded, led by corporate lending, but outflows of international stock funds increased.

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

2009 2010 2011 2012 Annual Annual Annual Annual Annual 11.8

6.6

3.8

9.5

2013 Q2

Jan

2014 Feb

Feb¹

7.1

9.1

10.6

11.4

10.9

9.8

518.5

M1²

16.3

10.3

8.7

4.2

5.2

4.8

5.1

4.9

4.4

5.0

5.2

1,954.3

Lf ³

7.9

8.2

5.3

7.8

6.9

7.5

6.8

6.5

6.7

6.4

2,647.7

1. Balance at end February 2014, trillion won 2. M1 excluding corporate MMFs and individual MMFs while including CMAs

3. Liquidity aggregates of financial institutions (mostly identical with M3)

The Green Book

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

2010.1

2011.1

2012.1

2013.1

2014.1

Bank deposits fell, led by a sharp decrease in instant access deposits (6.3 trillion won >-3.2 trillion won), which is attributed to corporate tax payments and local government expenditures. Asset management company (AMC) deposits also fell, led by money market funds (MMF) (4.9 trillion won > -3.3 trillion won) , as financial institutions withdrew funds to meet their quarter-end financial ratio requirements and also as firms paid corporate taxes.

T h e G r e e n B o o k : Current Economic Trends (Monthly change, end-period, trillion won)

2009 2010 2011 2012 Annual Annual Annual Annual Mar

2013 Annual Mar

Feb

2014 Mar

MarÂš

Bank deposits

54.8

36.9

58.9

37.0

15.2

41.0

1.4

11.7

-0.7

1,189.0

AMC deposits

-27.6

-16.7

-16.6

18.8

4.0

17.7

2.1

6.7

-5.6

344.6

1. Balance at end March 2014, trillion won

Deposits in financial institutions Source: The Bank of Korea 30 (y-o-y, end of month balance, trillion won)

E c o n o m i c B u l le t i n

-10

-20 2004.1

2005.1

2006.1

2007.1

10. Balance of payments

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Koreaâ&#x20AC;&#x2122;s current account (preliminary) in March posted a surplus of US$7.35 billion, staying in the black for 25 consecutive months. The goods account surplus expanded from US$5.40 billion in February to US$8.04 billion in March, as a rise in exports exceeded a rise in imports. Goods exports (US$ billion) 48.00 (Feb 2014) > 54.20 (Mar) Goods imports (US$ billion) 42.60 (Feb 2014) > 46.10 (Mar)

Compared to the same period of the previous year, the goods account surplus expanded by US$1.55 billion as exports rose 5.1 percent.

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

The services account deficit contracted from US$1.06 billion to US$0.65 billion as the transportation and travel accounts improved.

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

The primary income account surplus inched down from US$0.37 billion to US$0.32 billion, while the secondary income account deficit expanded from US$0.22 billion to US$0.36 billion.

Services account (US$ billion, February > March)

30.1 (mobile phones), 16.2 (vessels), 14.2 (automobiles), 13.6 (semiconductors), 5.2 (steel)

16.9 (US), 15.1 (EU), 13.6 (ASEAN countries), 4.4 (China), 1.0 (Japan)

-0.44 > -0.46 (manufacturing), 0.34 > 0.59 (transportation), -0.48 > -0.26 (travel), 1.16 > 1.21 (construction), -1.09 > -1.01 (intellectual property rights), -0.46 > -0.70 (other business)

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

The Green Book

(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

(US$ billion)

2013

2014

Annual

Mar

Jan

Feb

Mar

Current account

79.88

10.46

20.80

23.78

24.84

6.34

15.13

3.28

4.50

7.35

- Goods balance

80.57

12.08

20.00

23.88

24.62

6.49

17.81

4.37

5.40

8.04

- Service balance

-7.93

-3.51

-0.41

-2.06

-1.94

-0.33

-3.62

-1.91

-1.06

-0.65

- Primary income balance

11.42

2.78

1.84

3.16

3.64

0.31

1.91

1.22

0.37

0.32

- Secondary income balance

-4.18

-0.89

-0.62

-1.19

-1.48

-0.12

-0.96

-0.38

-0.22

-0.36

1. Preliminary Source: The Bank of Korea

T h e G r e e n B o o k : Current Economic Trends The capital and financial account (preliminary) in March posted a net outflow of US$5.78 billion.

billion to US$2.01 billion as foreign investorsâ&#x20AC;&#x2122; fixedincome investment switched to a net inflow. Net inflows of financial derivatives investment expanded from US$0.22 billion to US$0.51 billion, while other investment turned from a net inflow of US$4.74 billion to a net outflow of US$0.47 billion due to a decline in borrowing by financial firms.

Capital & financial account balance (US$ billion) -9.88 (Oct 2013) > -8.40 (Nov) > -7.75 (Dec) > -4.48 (Jan 2014) > -6.92 (Feb) > -5.78 (Mar)

Net outflows of direct investment contracted from US$2.16 billion to US$2.02 billion as foreign direct investment switched to a net inflow. Net outflows of portfolio investment contracted from US$7.39

The current account in April is expected to maintain a surplus, helped by the surplus in the goods account, which resulted from a trade surplus(US$4.46 billion).

Capital & financial account balance Source: The Bank of Korea (balance of payments trends) 15

(US$ billion)

E c o n o m i c B u l le t i n

10 5 0 -5 -10 -15 2004.1

2005.1

Direct investment

2006.1

2007.1

2008.1

Portfolio investment

11. Prices and international commodity prices

2009.1

2010.1

2011.1

Financial derivatives

2012.1

2013.1

2014.1

Capital & financial account

11.1 Prices Consumer prices in April rose 0.1 percent monthon-month and 1.5 percent year-on-year. The pace of month-on-month rise has been slowing down since the beginning of the year, whereas the year-on-year growth has been accelerating.

Consumer price inflation

Month-on-Month

(%)

Mar

Apr

May

Jun

2013 Jul Aug

-0.1

0.0

-0.1

0.2

0.4

0.2

-0.3

0.0

0.1

0.5

0.3

0.2

0.1

1.5

1.3

1.1

1.2

1.6

1.5

1.0

0.9

1.2

1.1

1.0

1.3

1.5

Year-on-Year

Sep

Oct

Nov

Dec

Jan

2014 Feb Mar

Apr

Source: Statistics Korea

Consumer price inflation Source: Statistics Korea (consumer price trends) 7

(%)

6 5

4 3

1 0 -1 -2 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

Consumer price inflation (m-o-m)

Gains in personal service prices offset declines in agricultural and manufactured product prices. Agricultural, livestock & fishery product prices fell 0.2 percent month-on-month. The prices of livestock products rose 1.9 percent, but agricultural product prices declined 1.7 percent.

2011.1

2012.1

2013.1

2014.1

Consumer price inflation (y-o-y)

from the previous month, as the prices of durable goods (down 0.4%) and cosmetics (1.2% ) fell as a result of discounts. Personal service prices rose 0.5 percent month-onmonth, as travel costs increased due to seasonal demand. Dining out expenses rose 0.1 percent, while prices excluding dining out costs rose 0.7 percent.

Price increases by item (m-o-m, %) pork (2.7), green chilis (-26.7), zucchini (-24.0), cucumbers (-22.1)

Price increases by item (m-o-m, %)

Manufactured product prices were down 0.3 percent

expenses (16.9)

overseas group tour expenses (7.3), domestic group tour

The Green Book

T h e G r e e n B o o k : Current Economic Trends Contribution to consumer price inflation Source: Statistics Korea (consumer price trends) 5

(%p)

4 3 2 1 0 2003

2004

2005

2006

2007

2008

2009

2010

2012

2013

Agricultural, livestock & fishery products

Manufactured products

Housing rents

Public services

Personal services

Public utilities

34 E c o n o m i c B u l le t i n

Consumer prices for basic necessities rose 1.0 percent year-on-year and remained unchanged from the previous month.

the previous month, fresh food prices fell 1.2 percent. Fresh food price increases (y-o-y, %)

Price increases for basic necessities (y-o-y, %)

-11.7 (Oct 2013) > -11.1 (Dec) > -12.9 (Jan 2014) > -12.4

0.0 (Oct 2013) > 0.5 (Dec) > 0.6 (Jan 2014) > 0.4 (Feb) > 0.8

(Feb) > -11.3 (Mar) > -12.0 (Apr)

(Mar) > 1.0 (Apr)

Fresh food prices declined 12.0 percent year-onyear, led by vegetables (down 25.3%). Compared to

Core consumer prices, which exclude oil and agricultural products and show long-term price trends, rose 2.3 percent year-on-year and 0.2 percent month-on-month.

Prices Source: Statistics Korea (consumer price trends) 16

(y-o-y, %)

13 10 7 4 1 -2 -5 2004.1

2005.1

2006.1

Consumer price inflation

2007.1

2008.1

2009.1

Core inflation

2010.1

2011.1

2012.1

2013.1

2014.1

Producer price inflation

Core inflation and prices for basic necessities

(y-o-y, %)

2013 2014 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Consumer prices excluding oil and agricultural products 1.6 1.7 1.6 1.7 1.5 1.7 1.8 2.0 1.9 1.7 1.7 2.1

2.3

Consumer prices excluding food and energy

1.5 1.6 1.5 1.5 1.3 1.5 1.6 1.7 1.6 1.5 1.4 1.7

1.9

Consumer prices for basic necessities

0.9 0.5 0.5 1.1 1.1 0.2 0.0 0.5 0.5 0.6 0.4 0.8

1.0

The average expected annual inflation rose 0.1 percentage points month-on-month to 2.9 percent, while import prices fell 4.5 percent year-on-year. Expected inflation (%, over the next 12 months) 3.0 (Aug 2013) > 2.9 (Sep) > 2.9 (Oct) > 2.9 (Nov) > 2.9 (Dec) > 2.9 (Jan 2014) > 2.9 (Feb) > 2.8 (Mar) > 2.9 (Apr)

Import price increases (y-o-y, %, won base)

11.2 International oil and commodity prices

indicators, and downward pressures, such as concerns over the Chinese economic slowdown. WTI crude prices rose in early April due to improving economic data in the US, but declined later in the month due to an increase in US crude inventories.

International oil prices in April were slightly up from the previous month. Prices were affected by both upward pressures, such as the worsening Ukrainian crisis and improving US economic

WTI crude ($/barrel) 101.1 (Apr 4) > 103.7 (Apr 11) > 104.3 (Apr 17) > 100.7 (Apr 25) > 101.5 (Apr 28) > 99.8 (Apr 30)

(US$/barrel, period average)

2011 2012 Annual Annual Annual

Jul

Aug

2013 Sep

Oct

Nov

Dec

Jan

2014 Feb Mar

Apr

Dubai crude

105.9

109.0

105.3 103.5 107.1 107.9 105.6 105.5 107.5 104.0 105.0 104.4 104.6

Brent crude

111.0

111.7

108.7 107.7 110.8 111.6 109.3 108.0 110.7 107.7 108.9 107.7 107.8

95.1

93.8

WTI crude Source: Korea PDS

98.0 104.7 106.7 106.2 100.5

94.0

97.9

94.9 100.7 100.5 102.0

The Green Book

-5.3 (Aug 2013) > -8.1 (Sep) > -7.3 (Oct) > -4.9 (Nov) > -3.5 (Dec) > -3.0 (Jan 2014) > -4.8 (Feb) > -4.5 (Apr)

T h e G r e e n B o o k : Current Economic Trends International oil prices Source: Korea National Oil Corporation 160

($/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

2013.1

Dubai crude

2014.1

WTI

36 E c o n o m i c B u l le t i n

Domestic oil product prices fell in April, as a decrease in international oil prices in March was reflected with a time lag. Gasoline prices (won/liter) 1,878.6 (1st week Apr) > 1,877.6 (2nd week) > 1,876.0 (3rd week) > 1,874.6 (4th week) > 1,873.0 (5th week)

(Won/liter, period average)

2011 2012 Annual Annual Annual

Jul

Aug

2013 Sep

Oct

Nov

Dec

Jan

2014 Feb Mar

Apr

Gasoline prices 1,929.3 1,985.8 1,925.5 1,933.1 1,947.7 1,934.6 1,907.3 1,880.0 1,881.1 1,886.4 1,880.7 1,880.8 1,876.0 Diesel prices

1,745.7 1,806.3 1,729.6 1,729.7 1,743.6 1,734.3 1,711.8 1,692.9 1,699.1 1,705.1 1,698.5 1,696.0 1,689.1

Source: Korea National Oil Corporation

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

($/B)

(thousand won/B)

160

140

120

100

2004.1

2005.1

2006.1

2007.1

Dubai crude (import prices, won, left)

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Dubai international prices (dollar, right)

International grain prices and nonferrous metal prices both rose in April. International grain prices increased due to continued geopolitical unrest in Ukraine and unfavorable weather in grain production areas in the US. International grain prices in April (m-o-m, %) wheat (0.7), corn (3.5), soybean (4.7)

Nonferrous metal prices rose, led by nickel and aluminum, as Indonesia’s mineral export ban (effective from January 12) continued and energy issues in Brazil* led to concerns over production disruptions. * Due to the Brazilian government’s decision to ration power supply, some of the nation’s aluminum smelters and other facilities shut down production. Nonferrous metal prices in April (m-o-m, %)

nickel (11.0), aluminum (6.2), tin (1.4), lead (1.4), zinc (0.8), copper (0.0)

(Period average)

2010 2011 2012 Annual Annual Annual Annual 2,553

3,062

3,006

2,774

Jun

Jul

2013 Aug Sep

Oct

Nov

Dec

Jan

2014 Feb Mar

Apr

2,756 2,701 2,662 2,630 2,655 2,623 2,642 2,574 2,586 2,641 2,650

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

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. 4000

470 430

3000

390 350

2000

310 270

1000

230 190 150

0 2004.1

2005.1

CRB (left)

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Reuters index (right)

The Green Book

Reuters index*

T h e G r e e n B o o k : Current Economic Trends

12. Real estate market 12.1 Housing market Nationwide apartment sales prices rose 0.1 percent month-on-month in April. Apartment sales prices remained almost unchanged in the Seoul metropolitan area (up 0.0%) , which includes Seoul (up 0.0%) and Gyeonggi Province (down 0.1%).

Apartment sales price growth contracted in areas excluding the Seoul metropolitan area (up 0.1%) . Apartment prices in the five metropolitan cities rose 0.2 percent and prices in the eight provinces were up 0.1 percent. Apartment sales price increase in five metropolitan cities (m-o-m, %) Busan (0.0), Daegu (0.5), Daejeon (0.0), Ulsan (0.2), Gwangju (0.1)

38 Nationwide apartment sales prices

(Percentage change from previous period)

E c o n o m i c B u l le t i n

2010 2011 2012 Annual Annual Annual Annual Sep

2013 Oct

Nov

Dec Annual

Jan

2014 Feb

Mar

Apr

1.9

6.9

0.0

0.3

0.0

0.3

0.2

0.7

0.2

0.1

Seoul metropolitan area

-1.7

0.5

-3.0

-1.1

0.0

0.3

0.1

0.7

0.2

0.3

0.0

Seoul

-1.2

0.3

-2.9

-1.4

0.0

0.3

0.1

0.0

0.7

0.2

0.0

GangnamÂš

-1.0

0.3

-3.5

-1.1

0.2

0.4

0.1

-0.1

0.6

0.2

-0.1

GangbukÂ˛ Areas excluding the Seoul metropolitan area

-1.4

0.3

-2.3

-1.7

-0.2

0.3

0.1

0.7

0.2

0.1

6.4

15.1

3.1

1.7

0.1

0.2

0.3

0.8

0.3

0.2

0.1

Nationwide

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

Apartment sales prices by region Source: Korea Appraisal Board 3.0

(m-o-m, %)

2.0

1.0

0.0

-1.0 2009.1

Nationwide

2010.1

2011.1

Seoul metropolitan area

2012.1

2013.1

2014.1

Areas excluding Seoul metropolitan area

Nationwide apartment rental prices in April rose 0.1 percent month-on-month. Rental price growth decelerated significantly in the Seoul metropolitan area (up 0.1%), but stayed steady in regions excluding the Seoul metropolitan area (up 0.2%). Apartment rental price increase in major districts in Seoul (m-o-m, %) Gangnam (-0.7), Seocho (0.1), Songpa (-0.1), Yangcheon (-0.1), Nowon (0.4)

Nationwide apartment rental prices

(Percentage change from previous period)

2010 2011 2012 Annual Annual Annual Annual Sep

2013 Oct

Nov

Dec Annual Jan

2013 Feb

Mar

Apr

7.1

12.3

3.5

4.7

0.5

0.7

0.5

0.4

1.7

0.6

0.5

0.1

Seoul metropolitan area

6.3

11.0

2.1

6.2

0.8

1.0

0.7

0.6

2.5

0.8

0.7

0.1

Seoul

6.4

10.8

2.1

6.6

0.9

1.0

0.7

0.5

2.0

0.8

0.6

0.5

0.1

GangnamÂš

7.6

11.1

2.4

6.7

1.0

1.2

0.6

0.5

2.0

0.9

0.7

0.4

-0.1

GangbukÂ˛

5.1

10.6

1.8

6.4

0.8

0.9

0.8

0.5

2.1

0.7

0.6

0.2

Areas excluding the Seoul metropolitan area

9.2

14.5

4.6

3.3

0.2

0.4

0.3

1.0

0.4

0.2

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

Apartment rental prices by region Source: Korea Appraisal Board 3.0

(m-o-m, %)

2.0

1.0

0.0

-1.0

-2.0 2009.1

Nationwide

2010.1

2001.1

2012.1

Seoul metropolitan area

Apartment sales transactions in March increased 13.4 percent from 78,798 transactions in the

2013.1

2014.1

Areas excluding Seoul metropolitan area

previous month to 89,394 transactions, and were up 34.2 percent from a year earlier (66,618).

39 The Green Book

Nationwide

T h e G r e e n B o o k : Current Economic Trends Apartment sales transactions

(Monthly average, thousands)

2009 2010 2011 2012 Annual Annual Annual Annual Mar Apr May Jun Nationwide

90 130

2013 2014 Jul Aug Sep Oct Nov Dec Jan Feb Mar 40

Source: Ministry of Land, Infrastructure and Transport

Monthly apartment transaction volume Source: Ministry of Land, Infrastructure and Transport 160

(thousand)

140 120

100 80

E c o n o m i c B u l le t i n

60 40 20 0 2009.1

2010.1

Nationwide

2011.1

2012.1

Seoul metropolitan area

2013.1

2014.1

Areas excluding Seoul metropolitan area

12.2 Land market Nationwide land prices in March rose 0.20 percent month-on-month. Land price growth accelerated in the Seoul metropolitan area (up 0.22%) , which includes Seoul (up 0.29%) and Gyeonggi Province (up 0.14%).

Land prices also continued to grow in areas excluding the Seoul metropolitan area (up 0.17%), led by Daegu (up 0.25%), Sejong (up 0.51%) and Jeju (up 0.32%). Land price increases in areas excluding Seoul

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

metropolitan area (m-o-m, %)

-0.02 (Aug 2013) > 0.09 (Sep) > 0.15 (Oct) > 0.16 (Nov) >

0.04 (Aug 2013) > 0.06 (Sep) > 0.15 (Oct) > 0.15 (Nov)

0.15 (Dec) > 0.11 (Jan 2014) > 0.14 (Feb) > 0.22 (Mar)

> 0.16 (Dec) > 0.10 (Jan 2014) > 0.14 (Feb) > 0.17 (Mar)

Land prices by region

(Percentage change from previous period)

2008 2009 2010 2011 2012 Annual Annual Annual Annual Annual Q3

Q4 Annual Q1

2013 Q2

2014 Q4 Annual Jan Feb

Mar

Nationwide

-0.31 0.96 1.05 1.17 0.87 0.12 0.21 1.14 0.21 0.37 0.10 0.46 0.45 0.11 0.14 0.20

Seoul

-1.00 1.40 0.53 0.97 0.33 -0.14 0.09 1.21 0.10 0.41 0.08 0.61 0.69 0.19 0.21 0.29

Gyeonggi

-0.26 1.22 1.49 1.47 0.97 0.17 1.32 0.91 0.17 0.33 0.07 0.34 0.26 0.04 0.08 0.14

Incheon

1.37 1.99 1.43 0.66 0.36 -0.03 0.13 0.87 0.21 0.37 0.07 0.23 0.37 0.05 0.10 0.22

Source: Korea Appraisal Board

Land prices by region

Source: Korea Appraisal Board 15

(%)

The Green Book

9 6 3 0 -3 -6 -9 -12 -15 -18 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

National average

Metropolitan city

There were 227,000 land transactions in March, up 10.8 percent from the previous month and up 25.6 percent from 181,000 a year earlier. Land transactions increased in Seoul (up 21.7%, m-o-m) , Daejeon (up 21.9%, m-o-m) , Ulsan (up 18.8%, m-o-m) , North Chungcheong Province (up

City

2011 2012 2013

County

17.4%, m-o-m) and South Jeolla Province (up 14.6%, m-o-m). Vacant land transactions, which accounted for 38.8 percent of the total land transactions, rose 14.4 percent month-on-month to 88,000 and 7.6 percent year-on-year from 82,000.

T h e G r e e n B o o k : Current Economic Trends Land transactions 2008

2009

(Land lots, thousands)

2010

2011

2012

2013

2014

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

208

203

187

208

170

187 206 216 246 169 153 144 208 201 236 183 205 227 17

Gyeonggi

Incheon

1. Monthly average Source: Korea Land & Housing Corporation

Land transaction volume Source: Korea Appraisal Board

600,000

(thousand m²)

500,000

E c o n o m i c B u l le t i n

400,000

300,000

200,000

100,000

0 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

Seoul metropolitan area

2010.1

2011.1

2012.1

2013.1

2014.1

Areas excluding Seoul metropolitan area

13. Composite indices of business cycle indicators Industrial output in March rose 0.4 percent month-on-month and 2.5 percent year-on-year. Mining & manufacturing (up 0.9%, m-o-m), services (up 0.1%, m-o-m) and public administration (up 2.9%, m-o-m) rose, while construction (down 3.8%, m-o-m) declined.

Industrial output Source: Statistics Korea (industrial activity trends) 20

(%)

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

Industrial output (m-o-m)

2013.1

2014.1

Industrial output (y-o-y)

Components of the coincident composite index in March (m-o-m) value of construction completed (0.2%), retail sales (0.4%), nonfarm payroll employment (0.3%), imports (1.7%), mining & manufacturing production (-0.5%), service output (0.0%), domestic shipments (-0.4%)

Cyclical indicator of coincident composite index Source: Statistics Korea (industrial activity trends) 110

(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 Green Book

The cyclical indicator of the coincident composite index remained unchanged in March. Four components of the coincident composite index, including the value of construction completed, retail sales and imports, rose, while mining & manufacturing production, service output and domestic shipments fell from the previous month.

T h e G r e e n B o o k : Current Economic Trends The cyclical indicator of the leading composite index fell 0.3 points. The consumer expectations index and the ratio of export to import prices rose month-on-month, while seven other components of the leading composite index, including international commodity prices, the KOSPI and the ratio of job openings to job seekers, declined. Components of the leading composite index in March (m-o-m) ratio of export to import prices (0.1%), consumer expectations index (1.1p), indicator of inventory cycle (-0.5%p), domestic shipments of machinery (-0.8%), value of construction orders received (-7.2%), international commodity prices (-3.2%), ratio of job openings to job seekers (-2.1%p), KOSPI (-0.6%), spreads between long & short term interest rates (0.0%p)

Cyclical indicator of leading composite index Source: Statistics Korea (industrial activity trends)

110

(points)

E c o n o m i c B u l le t i n

100

90 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Aug

Sep

2013 Oct

Nov

Dec

Janยน

2014 Febยน

Marยน

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

0.8 3.0

-0.8 -1.0

1.4 4.2

-0.3 1.4

0.4 2.0

1.1 0.9

-1.3 1.6

0.4 2.5

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

0.5

0.2

0.5

0.3

0.6

0.3

0.4

100.3 0.2

100.1 -0.2

100.2 0.1

100.2 0.0

100.4 0.2

100.7 0.3

100.7 0.0

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

0.5

0.2

0.6

0.8

0.7

0.5

0.3

0.1

100.7 0.2

100.4 -0.3

100.8 0.4

101.1 0.3

101.5 0.4

101.6 0.1

101.5 -0.1

101.2 -0.3

SU E

The Three Year Plan for Economic Innovation: Helping Korea Move Forward in a Changing Global Environment

45 Featured Issue

Fe atu re d IS

Featured Issue

The Three Year Plan for Economic Innovation: Helping Korea Move Forward in a Changing Global Environment

46 E c o n o m i c B u l le t i n

Kim Jung-Kwan

Director, Economic Policy Division Ministry of Strategy and Finance

Background of the plan

expected. Investment, which has been one of the main drivers of the nation’s economy, continues to falter, raising concerns that the economy has become structurally weaker since the financial crisis.

It has been five years since the global financial crisis, and the global economy is faced with three big changes.

Whether the Korean economy will leap forward or fall into an era of slow growth depends on the government’s policies over the next three to four years.

Second, as advanced economies are pulling back from ultra-loose monetary policies, global funds are flowing from emerging economies to advanced economies, and from bonds to stocks. In the process, uncertainties in the global financial market are rising, led by some vulnerable emerging markets. Third, the main creators of added-value, which had shifted from labor and capital to knowledge and information, have now shifted to innovative technology and creative ideas. The nations that take preemptive measures for the future will successfully enter a new phase, while those that fail to do so will fall behind. The Korean economy is also at a turning point. Comprehensive policies by the Park administration have put the economy back on the path to recovery, but the economy is not recovering as fast or as strongly as

Three obstacles to growth The Korean economy has three hurdles to overcome in order to take the next big leap forward. First, slowing population growth, conservative investment practices and the limitations of catch-up strategies are hurting growth potential. Korea’s population is aging at the fastest rate among the OECD member nations, and the economically active population is expected to decline beginning in 2017. Large corporate investment used to lead growth in the past, but today investment lags behind growth. Inefficiency in the public sector and unfair practices in the private sector are also threatening the economy’s competitive edge. According to the 2013 World Economic Forum (WEF) Global Competitiveness Report, Korea placed 25th in the overall rankings, but ranked only 74th in ‘institutions’ and 78th in ‘labor market efficiency’. In addition, imbalances between sectors are leading to structural vulnerability. The share of services in Korea’s national output is 60 percent, which is over 10 percentage points lower than other major economies such as the US (78.3%) , Germany (70.1%) and Japan (70.5%) . Household income inequality has been rising since the 1997 financial crisis, while the gap between large conglomerates and small businesses in terms of profits, productivity and wages are widening.

Featured Issue

First, nations are stepping up their efforts to expand growth potential and improve their economic structures.

Featured Issue

Three Year Plan for Economic Innovation Against this backdrop, the government recently unveiled the Three Year Plan for Economic Innovation, in order to address these obstacles to growth. The plan is based on three strategies: a fair and efficient economy, growth through innovation, and balance between exports and domestic consumption. The ‘fair and efficient economy’ strategy sets the foundation for fair competition, such as reforming the public sector and expanding the social safety net. The ‘growth through innovation’ strategy is about finding new growth engines for the Korean economy. The ‘balance between exports and domestic consumption’ strategy addresses plans to achieve sustainable growth, by removing obstacles to domestic competition and providing more employment opportunities to women and young adults.

48 E c o n o m i c B u l le t i n

Meanwhile, another important task that could change our future is reunification. A Presidential committee will be set up to prepare for reunification, which would combine the economic capacities of the two Koreas.

Focus on implementation The most important characteristic of the Three Year Plan for Economic Innovation is that it is an ‘action plan’. Recognizing that government polities over the next three to four years will be crucial for the future of the Korean economy, the government will push forward with tasks that until now had been stalled due to lack of momentum or opposition from various interest groups. However, the government alone cannot successfully carry out the plan. The three year plan requires a joint effort by the public and private sectors, and the government needs to actively communicate and cooperate with the public. Also, a committee consisting of private sector experts and related interest groups will be convened to ensure that the average Korean reaps the benefits of the three year plan.

President Park Geun-hye is announcing the Three Year Plan for Economic Innovation on February 25 at the Cheong Wa Dae Press Center.

Successful implementation of the plan will lead to an employment rate of 70 percent, an annual growth rate of 4 percent, and a per capita income of over US$30,000.

Ec o Ne no ws mi c Br iefi ng

49 E co n o m i c New s B r i e f i n g

Government to promote consumer confidence in wake of Sewol ferry disaster Corporate loans to be made using Forex Stabilization Fund OECD raises Koreaâ&#x20AC;&#x2122;s 2014 growth outlook to 4.0% Korean FDI falls 0.2% in Q1 Q1 trade sets new records Korea grows 0.9% in Q1

Economic News Briefing

The joint public-private Emergency Meeting on the Real Economy is being held on May 9 at Cheong Wa Dae.

Government to promote consumer confidence in wake of Sewol ferry disaster

E c o n o m i c B u l le t i n

for up to 50 million won per business at the cost of 0.5 percent. A total of 100 billion won worth of guarantees will be offered by local credit guarantee funds.

President Park Geun-hye presided over the joint publicprivate Emergency Meeting on the Real Economy on May 9 to discuss ways to speed up the private sector recovery and support industries which have been affected by the Sewol ferry disaster.

Corporate loans to be made using Forex Stabilization Fund

The Tourism Promotion and Development Funds will provide loans to travel, transportation and accommodation-related businesses by utilizing around 50 billion won from the fund, at a low interest rate of 2.0 percent, and with a two-year grace period and a twoyear installment plan.

Starting in May, the government will use US$10 billion from the Foreign Exchange Stabilization Fund to help corporations receive loans in foreign currencies when they import production equipment or invest in overseas construction and overseas plant construction projects.

The Industrial Bank of Korea will loan up to 300 million won per business, and a total of 30 billion won will be made available. The Korea Credit Guarantee Fund and the Korea Technology Credit Guarantee Fund will also offer a special guarantee program that will insure up to 300 million and at the cost of 1.0 percent, a decrease from 1.3 percent. The special guarantee program will provide guarantees of up to 100 billion won.

The Export-Import Bank of Korea and the Korea Finance Cooperation will provide funds to 16 domestic banks and 12 branches of foreign banks operating in Korea, and then the loans will be extended by those banks. Loans from the Foreign Exchange Stabilization Fund will be exempt from the macro-prudential stability levy, which is imposed on banksâ&#x20AC;&#x2122; nondeposit foreign borrowing, and these loans are expected to lower corporationsâ&#x20AC;&#x2122; foreign currency borrowing costs.

The government will provide special loans worth 100 billion won to small businesses by utilizing the Small Business Fund, a policy-based fund, while local credit guarantee funds will provide special low-cost guarantees

The loan facilities are expected to stimulate domestic demand by increasing corporate facility investment

and help corporations win overseas construction projects, as well as improve external soundness.

expected the Korean economy to grow by around 4 percent in both 2014 and 2015, as free trade agreements (FTAs) with the EU, the US, Canada and Australia boost trade.

OECD raises Koreaâ&#x20AC;&#x2122;s 2014 growth outlook to 4.0% The Korean economy will expand 4.0 percent this year, the Organization for Economic Cooperation and Development (OECD) said in its semi-annual economic outlook report released on May 6. The latest forecast is up from 3.8 percent, which was forecast in November 2013. The OECD pointed out that economic activity accelerated in mid-2013, led by corporate investment and construction investment. The organization

Korean FDI falls 0.2% in Q1

Uncertainties remain, including increased volatility in global financial markets and the possibility of slowdown in growth for some emerging economies. However, the global economy is expected to continue to grow, led by advanced economies, which should lead total FDI to slightly increase in 2014.

Q1 trade sets new records Koreaâ&#x20AC;&#x2122;s exports in the first quarter of 2014 rose 2.2 percent year-on-year to US$138.2 billion, which was a record high for a first quarter figure. Average daily exports and trade volume also rose to a new first-quarter high, posting US$2.08 billion and US$270.8 billion, respectively.

Korean exporters are in talks with foreign buyers at the Global Business Plaza 2014 that was held in KINTEX on April 29.

Shipments to the EU showed double-digit growth for three consecutive months, due to the EU economy and the Korea-EU FTA, surging 16.3 percent yearon-year to US$13.53 billion. Shipments to Brazil, India, Indonesia, South Africa and Turkey rose 5.0 percent to US$10.92 billion.

51 E co n o m i c New s B r i e f i n g

Korean foreign direct investment (FDI) fell 0.2 percent, from US$7.04 billion to US$7.02 billion, in the first quarter of 2014 compared to the same period a year ago. FDI fell in manufacturing (down 10.9%) , and finance & insurance (down 33%) , but increased in mining (up 268.5%) and real estate & renting (up 28.3%) . FDI increased across the board in major destinations, including Asia (up 4.7%) and North America (up 49.4%) , but fell in Europe (down 58.2%) and the Middle East (down 24.9%).

Economic News Briefing Korea grows 0.9% in Q1 (Advanced) Korea’s real gross domestic product (GDP) expanded 0.9 percent in the first quarter of 2014 compared to the previous quarter. The growth rate was up 3.9 percent from a year earlier. On the production side, agriculture, forestry & fisheries contracted 4.3 percent quarter-on-quarter, as the number of cattle and pigs declined. Manufacturing grew 2.1 percent, led by electronic equipment, metal products and petroleum products, and construction grew 1.4 percent, led by residential housing construction. Services grew 0.6 percent, as gains in healthcare & social welfare services and transportation offset declines in hotels & restaurants. On the expenditure side, private consumption rose 0.3 percent, due to increasing durable goods consumption. Facility investment fell 1.3 percent, as declines in machinery offset gains in transportation equipment. Construction investment increased 4.8 percent, led by residential housing construction, while investment in software and technology rose 7.5 percent, led by R&D investment.

Exports rose 1.7 percent, led by electronic products and petroleum products, while imports fell 0.5 percent, led by machinery and chemical products.

E c o n o m i c B u l le t i n

GDP by production and expenditure*

(Percentage change from previous period)

2012 Q1

2014¹ Q1

GDP

0.5 (2.6)²

0.5 (2.4)²

0.4 (2.1)²

0.6 (2.1)²

1.0 (2.7)²

1.1 (3.4)²

0.9 (3.7)²

0.9 (3.9)²

Agriculture, forestry & fisheries

-6.7

-0.2

-0.4

6.1

-4.1

1.9

4.6

7.4

-4.3

1.5

0.3

0.1

1.2

0.8

2.1

-2.9

-0.2

0.4

-1.2

2.7

1.7

1.9

-2.4

1.4

Services

0.9

0.7

0.4

0.6

0.5

1.2

0.7

0.8

0.6

Private consumption

0.8

0.2

1.2

0.4

-0.1

0.7

1.0

0.6

0.3

Manufacturing Construction 3

Government consumption

2013¹

2.4

-0.4

1.0

0.2

0.5

1.6

0.4

0.9

-0.2

Facility investment

11.5

-8.0

-3.2

-3.3

1.5

1.0

2.7

5.6

-1.3

Construction investment

-2.1

-3.0

1.2

-2.4

6.5

4.6

0.2

-5.2

4.8

9.0

-3.2

3.3

-2.8

9.4

-2.2

1.2

1.8

7.5

Intellectual property investment Exports

0.5

2.5

1.9

0.9

0.2

2.6

-1.1

1.4

1.7

Imports

3.0

-0.2

0.3

-1.3

0.6

1.8

-0.4

2.9

-0.5

*At 2010 chained prices in seasonally adjusted terms 1. Preliminary 2. Percentage change from the same period of the previous year 3. Wholesale & retail, hotels & restaurants, transportation & storage, communication 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.

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 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

53 Statistical Appendices

Sta tist App ic a en l dic es

Statistical A ppendic es 1. National accounts (year-on-year change, %, chained 2010 year prices) Real GDP

Period

Agri., fores. & fisheries

Manufacturing

Final consumption expenditure

Gross fixed capital formation Construction

Facilities

E c o n o m i c B u l le t i n

2005 2006 2007 2008 2009 2010 2011 2012 2013P

3.9 5.2 5.5 2.8 0.7 6.5 3.7 2.3 3.0

1.4 1.6 4.1 5.6 3.2 -4.3 -2.0 -0.9 5.8

5.8 7.7 8.4 3.7 -0.5 13.7 6.5 2.4 3.3

4.4 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

-0.1 0.7 1.5 -2.7 3.5 -3.7 -3.4 -3.9 6.7

4.8 8.4 9.7 -0.2 -7.7 22.0 4.7 0.1 -1.5

2005 Ⅰ Ⅱ Ⅲ Ⅳ

2.5 3.6 4.5 4.9

0.5 4.8 3.8 -3.1

3.6 4.5 7.0 8.1

2.2 4.5 5.5 5.3

0.6 1.7 2.1 3.3

-2.5 1.1 0.0 0.3

3.7 2.1 4.3 9.1

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

5.6 4.3 4.2 4.2

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

4.7 5.1 5.5 4.6

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

4.6 2.5 1.6 -3.4

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

-4.7 -1.0 0.5 5.2

-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

6.9 3.5 4.0 3.2

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

3.5 3.6 2.4 1.5

-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

1.2 0.1 1.8 1.9

6.2 -2.3 -1.0 -3.4

-0.2 -5.4 -2.7 -6.2

11.1 -1.8 -4.2 -4.0

2013P Ⅰ 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

1.0 1.6 1.5 1.6

-2.6 5.0 5.9 7.8

1.9 9.8 8.8 5.4

-12.7 -3.9 1.5 10.9

P: Preliminary Source: The Bank of Korea

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(%)

106.0 107.4 107.7

6.0 1.3 0.3

105.6 107.2 107.6

5.6 1.5 0.4

119.9 125.2 131.4

15.0 4.4 5.0

103.2 104.8 106.3

3.2 1.6 1.4

2011 Ⅰ Ⅱ Ⅲ Ⅳ

102.6 107.5 104.0 109.7

9.1 6.2 5.4 3.4

103.4 106.6 103.2 109.3

10.0 5.4 4.7 2.8

104.9 109.8 112.3 119.9

7.8 11.8 11.4 15.0

99.4 103.4 103.2 106.7

2.8 2.7 4.2 3.0

2012 Ⅰ Ⅱ Ⅲ Ⅲ

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 ⅠP

106.4

0.7

105.8

0.1

132.3

9.2

104.8

1.8

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 2P 3P

106.1 100.9 112.2

-4.3 4.1 2.7

104.5 100.8 112.2

-4.6 3.1 2.2

133.1 131.1 132.3

3.7 5.2 7.5

104.3 101.4 108.6

2.2 1.2 2.1

P: Preliminary Source: Statistics Korea

55 Statistical Appendices

2011 2012 2013

Statistical A ppendic es 3. Production capacity and operation ratio Period

Production capacity index (2010=100)

Operation ratio index (2010=100)

y-o-y change (%)

Average operation ratio (%)

E c o n o m i c B u l le t i n

2011 2012 2013

104.7 106.9 108.7

4.7 2.1 1.7

100.2 97.5 94.8

0.2 -2.7 -2.8

80.5 78.5 76.2

2011 Ⅰ Ⅱ Ⅲ Ⅳ

103.5 104.5 105.0 105.6

5.7 5.1 4.3 3.5

97.8 103.5 97.7 101.9

2.2 0.8 0.1 -2.0

81.4 80.6 80.9 79.1

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 ⅠP

109.6

1.3

92.5

-0.9

77.1

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 2P 3P

109.6 109.5 109.6

1.4 1.2 1.3

91.6 87.5 98.5

-7.0 3.4 1.8

78.2 75.9 77.2

P: Preliminary Source: Statistics Korea

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

y-o-y change (%)

Durable goods y-o-y change (%)

Semi-durable goods y-o-y change (%)

Non-durable goods y-o-y change (%)

104.5 107.0 107.9

4.5 2.4 0.8

110.6 116.2 116.6

10.6 5.3 0.3

103.7 103.8 105.9

3.7 -0.4 2.0

102.1 104.1 104.7

2.1 2.0 0.6

2011 Ⅰ Ⅱ Ⅲ Ⅳ

100.7 104.8 103.7 108.9

5.3 6.2 4.0 2.6

105.4 112.2 111.4 113.3

11.5 16.9 10.3 4.4

98.3 105.5 94.2 116.7

5.1 5.2 3.6 1.2

99.6 101.2 104.4 103.3

2.7 2.0 1.5 2.4

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 ⅠP

106.3

2.5

117.5

6.0

100.1

-1.6

103.8

2.6

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 2P 3P

110.5 99.1 109.3

5.6 -0.4 2.1

116.8 117.2 118.5

4.1 10.7 3.3

100.2 91.6 108.4

-2.6 -1.6 -0.7

112.1 94.0 105.4

10.2 -5.3 2.8

P: Preliminary Source: Statistics Korea

57 Statistical Appendices

2011 2012 2013

Statistical A ppendic es 5. Consumer goods shipment index and consumer sentiment index Domestic consumer goods shipment index (2010=100) Durable goods

Period

y-o-y change (%)

Non-durable goods

y-o-y change (%)

Consumer sentiment index

E c o n o m i c B u l le t i n

2011 2012 2013

100.9 102.5 101.9

0.9 1.6 -0.6

100.3 102.8 103.1

0.3 2.5 0.3

101.2 102.4 101.4

1.2 1.2 -1.0

2011 Ⅰ Ⅱ Ⅲ Ⅳ

101.0 97.9 101.5 103.3

4.6 0.9 0.8 -2.2

99.5 100.7 100.9 100.1

3.8 3.1 -0.1 -5.0

101.6 96.8 101.7 104.6

4.7 0.2 1.1 -1.1

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 ⅠP

100.3

-2.4

103.0

-4.6

99.2

-1.3

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 2P 3P 4

102.2 96.4 102.4 -

-5.7 -0.3 -0.8 -

99.8 106.5 102.8 -

-9.6 0.4 -4.5 -

103.3 92.1 102.2 -

-3.9 -0.5 0.9 -

109 108 108 108

P: Preliminary Source: Statistics Korea

6. Machinery orders received and estimated facility investment index Domestic machinery orders received excluding ship (billion won, constant value) Total

Period

2011 2012 2013

Public

y-o-y change (%)

Private

y-o-y change (%)

Estimated facility investment index y-o-y (2010=100)

change (%)

7.6 -13.9 6.7

2,407 2,142 2,580

-2.6 -11.0 20.5

22,741 19,506 20,524

8.8 -14.2 5.2

103.5 100.6 99.3

3.5 -2.8 -1.3

2011 Ⅰ Ⅱ Ⅲ Ⅳ

6,383 6,723 5,666 6,376

15.3 9.6 -0.7 6.4

358 708 310 1,031

-36.7 83.1 -18.6 -9.5

6,025 6,015 5,356 5,345

21.2 4.6 0.6 10.1

97.0 109.4 104.5 103.0

5.2 7.4 3.2 -1.4

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 ⅠP

6,634

18.6

1,223

185.1

5,411

4.8

96.7

6.0

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 2P 3P

1,716 1,848 3,070

-7.1 10.9 47.7

88 120 1,015

-36.9 -28.8 737.3

1,628 1,728 2,055

-4.7 15.4 5.0

88.4 93.9 107.8

-1.6 12.5 7.4

P: Preliminary Source: Statistics Korea

59 Statistical Appendices

25,148 21,648 23,105

Statistical A ppendic es 7. Value of construction completed and domestic construction orders received (current value, billion won) Period

Value of construction y-o-y completed change (Total) (%)

Type of order Public

Private y-o-y change (%)

Domestic construction y-o-y orders change received y-o-y (%) (Total) change (%)

Type of order Public

Private y-o-y change (%)

y-o-y change (%)

E c o n o m i c B u l le t i n

2011 2012 2013

91,717 88,713 97,938

-0.6 -3.3 10.4

35,120 33,807 34,532

-0.1 -3.7 2.1

51,663 50,622 59,492

-2.2 -2.0 17.5

95,332 89,395 75,644

6.1 -6.2 -15.4

28,624 26,071 24,574

-2.0 -8.9 -5.7

61,839 59,811 48,888

12.3 -3.3 -18.3

2011 Ⅰ Ⅱ Ⅲ Ⅳ

19,277 24,057 21,423 26,960

-5.2 -0.1 -2.7 4.4

7,322 9,290 7,684 10,825

-2.1 1.8 -1.5 0.7

11,031 13,339 12,597 14,696

-7.9 -4.3 -4.3 6.9

16,335 25,319 20,444 33,233

-11.5 -0.9 5.6 25.5

4,119 6,311 6,711 11,483

-49.0 -8.4 -1.4 54.5

11,107 17,653 12,871 20,209

20.3 4.7 12.1 15.4

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 ⅠP

21,602

7.2

7,106

1.4

13,634

10.2

15,231

13.4

5,967

39.1

8,843

0.7

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 -12.9 2,373 17.0 2,945 3.1 2,644 -3.6 2,873 3.0 3,374 -10.2 2,372 -0.3 2,322 -5.6 2,904 2.1 2,591 -10.7 3,003 -5.3 4,282 -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 -2.4 2,345 -1.2 2,589 -12.1 2,839 7.4 2,805 -2.4 3,700 9.7 2,643 11.5 2,561 10.3 2,878 -0.9 2,958 14.2 3,124 4.0 4,017 -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 2P 3P

7,034 6,653 7,914

12.3 6.9 3.4

2,310 2,208 2,588

4,434 4,223 4,978

12.1 15.7 4.4

5,300 5,190 4,741

49.5 17.1 -13.0

2,102 2,238 1,628

62.9 73.9 -5.0

3,026 2,802 3,015

43.5 -6.4 -18.1

P: Preliminary Source: Statistics Korea

11.5 -5.8 0.0

8. Composite indices of business cycle indicators and BSI Cyclical component of leading index (2010=100)

Coincident index (2010=100)

Cyclical component of 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

117.6 117.9 118.0 -

101.6 101.5 101.2 -

117.6 117.9 118.4 -

100.7 100.6 100.7 -

89.4 87.0 100.7 95.8 -

93.4 88.7 104.4 99.5 101.7

Sources: Statistics Korea, The Bank of Korea

61 Statistical Appendices

Leading index (2010=100)

Period

Statistical A ppendic es 9. Balance of payments (I) (US$ million) Current account

Goods

2011 2012 2013

18,655.8 50,835.0 79,883.6

29,089.9 49,406.0 80,568.6

587,099.7 603,509.2 617,127.6

2011 Ⅰ Ⅱ Ⅲ Ⅳ

-3,769.1 -1,921.2 11,994.5 12,351.6

2,453.6 2,520.5 11,435.4 12,680.4

2012 Ⅰ Ⅱ Ⅲ Ⅳ

-746.0 11,605.1 16,886.8 23,089.1

2013 Ⅰ Ⅱ Ⅲ Ⅳ

Services

Primary income

Secondary income

558,009.8 554,103.2 536,559.0

-12,279.1 -5,213.6 -7,927.4

6,560.6 12,116.7 11,424.8

-4,715.6 -5,474.1 -4,182.3

133,839.7 150,171.3 150,723.9 152,364.8

131,386.1 147,650.8 139,288.5 139,684.4

-4,746.0 -3,468.8 -2,163.6 -1,900.7

-195.2 372.1 3,723.5 2,660.2

-1,281.5 -1,345.0 -1,000.8 -1,088.3

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

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

10,458.1 20,804.7 23,782.0 24,838.8

12,075.8 19,998.5 23,876.5 24,617.8

146,933.9 153,981.4 153,754.8 162,457.5

134,858.1 133,982.9 129,878.3 137,839.7

-3,512.2 -409.8 -2,062.7 -1,942.7

2,782.6 1,835.0 3,162.8 3,644.4

-888.1 -619.0 -1,194.6 -1,480.6

2014 ⅠP

15,131.0

17,805.4

152,757.7

134,952.3

-3,618.5

1,905.8

-961.7

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

1,969.3 2,146.5 6,342.3 4,552.9 9,752.2 6,499.6 7,985.1 7,198.0 8,598.9 11,107.9 6,854.8 6,876.1

2,855.2 2,733.1 6,487.5 5,103.3 9,591.6 5,303.6 7,911.7 7,378.1 8,586.7 9,816.8 8,175.6 6,625.4

51,027.4 44,778.4 51,128.1 51,587.2 53,548.1 48,846.1 53,353.6 49,839.2 50,562.0 56,702.8 52,756.9 52,997.8

48,172.2 42,045.3 44,640.6 46,483.9 43,956.5 43,542.5 45,441.9 42,461.1 41,975.3 46,886.0 44,581.3 46,372.4

-1,783.5 -1,394.1 -334.6 5.7 -298.2 -117.3 -1,058.1 -805.9 -198.7 393.5 -1,923.2 -413.0

1,434.6 1,035.1 312.9 -354.1 670.3 1,518.8 1,396.1 912.4 854.3 1,260.6 1,010.9 1,372.9

-537.0 -227.6 -123.5 -202.0 -211.5 -205.5 -264.6 -286.6 -643.4 -363.0 -408.5 -709.1

2014P 1 2 3

3,285.3 4,499.1 7,346.6

4,367.0 5,403.4 8,035.0

50,599.8 47,993.3 54,164.6

46,232.8 42,589.9 46,129.6

-1,912.1 -1,058.7 -647.7

1,211.4 371.8 322.6

-381.0 -217.4 -363.3

Period

62 E c o n o m i c B u l le t i n

P: Preliminary Source: The Bank of Korea

Exports

Imports

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

Direct investment

Portfolio investment

Financial derivatives

Other investment

Capital transfers & acquisition of Reserve assets nonfinancial assets

-24,315.8 -51,582.4 -76,881.1

-19,931.7 -21,136.2 -16,951.5

13,142.7 6,747.8 -8,287.1

-1,031.3 2,627.8 3,839.7

-2,542.7 -26,637.3 -41,003.7

-112.0 -41.7 -27.8

-13,952.8 -13,184.5 -14,478.5

2011 Ⅰ Ⅱ Ⅲ Ⅳ

3,231.1 -8.5 -11,957.3 -15,581.1

-4,872.2 -5,028.1 -4,652.9 -5,378.5

-472.1 4,043.3 8,344.5 1,227.0

922.4 -160.6 -1,535.5 -257.6

11,172.4 3,754.9 -20,439.5 2,969.5

-30.0 -9.7 -5.4 -66.9

-3,519.4 -2,618.0 6,326.1 -14,141.5

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

-11,560.0 -16,194.8 -23,107.8 -26,018.5

-5,148.2 -3,297.9 -3,988.6 -4,516.8

-6,461.9 -8,919.2 8,996.0 -1,902.0

1,418.9 -604.6 1,694.0 1,331.4

2,562.0 -7,439.0 -23,231.0 -12,895.7

-3.5 -27.5 12.8 -9.6

-3,930.8 4,065.9 -6,578.2 -8,035.4

2014 ⅠP

-17,177.9

-3,657.7

-13,596.7

892.6

6,207.4

-2.1

-7,023.4

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

-3,288.5 -3,297.9 -4,973.6 -1,908.3 -9,945.6 -4,340.9 -9,155.6 -7,937.6 -6,014.6 -9,880.0 -8,399.9 -7,738.6

-1,631.9 -1,145.9 -2,370.4 -21.0 -1,659.7 -1,617.2 -1,301.4 -1,275.8 -1,411.4 -296.1 -2,303.1 -1,917.6

-5,226.0 2,023.2 -3,259.1 -1,873.5 -1,091.4 -5,954.3 1,825.5 1,435.1 5,735.4 4,467.7 -1,522.8 -4,846.9

586.9 686.9 145.1 -313.2 649.2 -940.6 443.3 218.1 1,032.6 713.1 14.0 604.3

3,380.1 -2,870.9 2,052.8 -643.1 -6,804.3 8.4 -8,131.5 -6,631.3 -8,468.2 -10,064.8 -1,742.0 -1,088.9

-8.0 -3.3 7.8 -1.4 -11.2 -14.9 1.1 18.2 -6.5 -2.0 0.0 -7.6

-397.6 -1,991.2 -1,542.0 942.5 -1,039.4 4,162.8 -1,991.5 -1,683.7 -2,903.0 -4,699.9 -2,846.0 -489.5

2014P 1 2 3

-4,477.0 -6,920.5 -5,780.4

529.9 -2,163.5 -2,024.1

-4,193.1 -7,394.4 -2,009.2

155.5 223.1 514.0

1,937.4 4,739.0 -469.0

-3.0 3.5 -2.6

-2,906.7 -2,324.7 -1,792.0

P: Preliminary Source: The Bank of Korea

63 Statistical Appendices

2011 2012 2013

Statistical A ppendic es 11. Prices (2010=100) Consumer Prices Period

All Items

Commodity

y-o-y change (%)

Producer prices

Services

y-o-y change (%)

Core

y-o-y change (%)

All Items

y-o-y change (%)

Commodity

y-o-y change (%)

2011

104.0

4.0

105.7

5.7

102.7

2.7

103.2

3.2

106.7

6.7

108.7

2012

106.3

2.2

108.9

3.0

104.2

1.4

104.9

1.6

107.5

0.7

108.9

8.7 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

2011 7

104.3

4.5

105.9

6.4

103.1

2.9

103.7

3.6

107.2

7.0

109.3

9.1

105.0

4.7

107.1

6.8

103.3

3.0

103.8

3.5

107.4

6.9

109.5

8.9

104.9

3.8

107.1

5.0

103.1

2.7

103.7

3.3

107.4

6.3

109.6

8.0

104.7

3.6

106.6

4.5

103.2

2.8

103.6

3.2

107.3

5.8

109.4

7.4

104.8

4.2

106.8

6.0

103.3

2.7

103.9

3.5

107.0

5.1

108.9

6.5

105.2

4.2

107.3

5.7

103.5

2.8

104.3

3.6

107.1

4.3

109.0

5.3

E c o n o m i c B u l le t i n

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

106.1

3.1

108.5

3.9

104.2

2.5

104.7

2.5

108.4

3.1

110.5

3.6

106.0

2.6

109.2

4.1

103.5

1.4

104.3

1.9

108.9

2.4

111.2

2.7

106.0

2.5

108.9

4.1

103.7

1.3

104.4

1.8

109.0

1.9

111.1

1.9

106.2

2.5

109.2

4.3

103.9

1.3

104.6

1.6

108.4

1.0

110.3

0.7

106.1

2.2

108.8

3.6

104.0

1.2

104.9

1.5

107.1

0.0

108.4

-0.7

105.9

1.5

107.9

1.9

104.2

1.1

104.9

1.2

106.6

-0.6

107.6

-1.5

106.3

1.2

108.8

1.6

104.4

1.1

105.1

1.3

107.2

-0.1

108.6

-0.9

107.0

2.0

110.4

3.1

104.4

1.3

105.2

1.4

107.6

0.2

109.2

-0.4

106.9

2.1

109.8

3.0

104.6

1.4

105.2

1.5

106.8

-0.5

107.8

-1.4

106.5

1.6

108.9

2.0

104.6

1.3

105.3

1.3

106.1

-0.9

106.8

-1.9

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

107.7

1.6

110.4

1.6

105.6

1.5

106.2

1.4

106.7

-1.6

107.8

-2.5

107.6

1.5

110.4

1.1

105.4

1.7

106.0

1.6

106.3

-2.4

107.1

-3.7

107.5

1.3

109.9

0.9

105.6

1.7

106.0

1.6

105.9

-2.8

106.6

-4.1

107.5

1.1

109.6

0.4

105.7

1.8

106.4

1.7

105.6

-2.6

106.1

-3.8

107.3

1.2

109.4

0.7

105.7

1.6

106.6

1.6

105.5

-1.4

106.0

-2.2

107.6

1.6

109.7

1.7

105.9

1.5

106.7

1.7

105.5

-1.0

106.0

-1.6

107.9

1.5

110.3

1.5

106.1

1.5

106.7

1.5

105.8

-1.3

106.2

-2.1

108.1

1.0

110.9

0.4

106.0

1.5

107.0

1.7

105.7

-1.8

106.1

-2.8

107.8

0.9

110.1

0.3

106.0

1.4

107.1

1.8

105.3

-1.4

105.5

-2.2

107.8

1.2

110.1

1.0

106.0

1.3

107.4

2.0

105.1

-0.9

105.2

-1.5

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 3

108.8 109.0

1.0 1.3

111.4 111.6

0.9 1.1

106.7 107.0

1.1 1.5

108.0 108.3

1.7 2.1

105.8 105.7

-0.9 -0.5

105.9 105.7

-1.7 -1.3

Source: The Bank of Korea

12. Employment

Period

Economically active persons (thousand)

Employed persons (thousand) All industry

y-o-y change (%)

Manufacturing

y-o-y change (%)

SOC & services

y-o-y change (%)

Unemployment (%)

25,099 25,501 25,873

1.4 1.6 1.5

24,244 24,681 25,066

1.7 1.8 1.6

4,091 4,105 4,184

1.6 0.3 1.9

18,595 19,033 19,347

2.1 2.4 1.6

3.4 3.2 3.1

2011 7 8 9 10 11 12

25,473 25,257 25,076 25,409 25,318 24,880

1.0 1.7 0.7 1.6 1.9 1.4

24,636 24,495 24,318 24,673 24,589 24,125

1.4 2.0 1.1 2.1 2.0 1.9

4,079 4,031 4,014 4,044 4,054 4,071

1.0 -0.7 -1.2 -1.3 -2.1 -2.1

18,844 18,739 18,595 18,856 18,921 18,833

1.9 3.1 2.1 3.2 3.2 3.1

3.3 3.0 3.0 2.9 2.9 3.0

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

24,585 24,825 25,210 25,653 25,939 25,939 25,901 25,623 25,755 25,787 25,652 25,139

2.0 1.6 1.2 1.6 1.8 1.4 1.7 1.4 2.7 1.5 1.3 1.0

23,732 23,783 24,265 24,758 25,133 25,117 25,106 24,859 25,003 25,069 24,941 24,402

2.3 1.9 1.8 1.9 1.9 1.5 1.9 1.5 2.8 1.6 1.4 1.1

4,034 4,060 4,018 4,027 4,071 4,084 4,114 4,111 4,153 4,188 4,218 4,183

-2.8 -2.1 -2.5 -2.0 -1.6 -1.2 0.8 2.0 3.5 3.6 4.0 2.8

18,631 18,599 18,870 19,103 19,292 19,248 19,265 19,040 19,125 19,128 19,088 19,010

3.5 3.2 3.4 3.1 3.0 2.3 2.2 1.6 2.8 1.4 0.9 0.9

3.5 4.2 3.7 3.5 3.1 3.2 3.1 3.0 2.9 2.8 2.8 2.9

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

24,901 24,973 25,397 25,928 26,195 26,291 26,301 26,074 26,186 26,268 26,230 25,736

1.3 0.6 0.7 1.1 1.0 1.4 1.5 1.7 1.7 1.9 2.3 2.4

24,054 23,984 24,514 25,103 25,398 25,478 25,473 25,291 25,466 25,545 25,530 24,962

1.4 0.8 1.0 1.4 1.1 1.4 1.5 1.7 1.9 1.9 2.4 2.3

4,189 4,139 4,141 4,192 4,175 4,180 4,167 4,116 4,174 4,218 4,253 4,264

3.9 1.9 3.1 4.1 2.6 2.3 1.3 0.1 0.5 0.7 0.8 2.0

18,810 18,736 18,989 19,303 19,492 19,531 19,577 19,438 19,540 19,558 19,670 19,514

1.0 0.7 0.6 1.0 1.0 1.5 1.6 2.1 2.2 2.2 3.0 2.7

3.4 4.0 3.5 3.2 3.0 3.1 3.1 3.0 2.7 2.8 2.7 3.0

2014 1 2 3 4

25,650 25,997 26,187 26,714

3.0 4.1 3.1 3.0

24,759 24,819 25,163 25,684

2.9 3.5 2.6 2.3

4,280 4,274 4,284 4,288

2.2 3.3 3.5 2.3

19,376 19,407 19,538 19,819

3.0 3.6 2.9 2.7

3.5 4.5 3.9 3.9

Source: Statistics Korea

65 Statistical Appendices

2011 2012 2013

Statistical A ppendic es 13. Financial indicators (period average) Period

Yields(%)

Stock

E c o n o m i c B u l le t i n

Call rate (1 day)

CD (91 days)

Corporate bonds (3 years, AA-)

Treasury bonds (3 years)

Treasury bonds (5 years)

KOSPI(end-period)

2010 7 8 9 10 11 12

2.2 2.3 2.3 2.3 2.4 2.5

2.6 2.6 2.7 2.7 2.7 2.8

4.8 4.7 4.4 4.1 4.2 4.2

3.9 3.7 3.5 3.2 3.4 3.3

4.5 4.3 3.9 3.7 4.0 4.0

1,759.33 1,742.75 1,872.81 1,882.95 1,904.63 2,051.00

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

2.5 2.5 2.5 2.5

2.7 2.7 2.7 2.7

3.3 3.3 3.3 3.3

2.9 2.9 2.9 2.9

3.3 3.2 3.2 3.2

1,941.15 1,979.99 1,985.61 1,961.79

Source: The Bank of Korea

14. Monetary indicators (billion won) Period

Reserve money

y-o-y change (%)

M2 y-o-y change (%)

Lf y-o-y change (%)

y-o-y change (%)

2011

75,232.0

11.3

425,675.1

6.6

1,708,984.5

4.2

2,208,170.4

5.3

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

2011 7

74,069.7

10.6

418,973.1

3.8

1,705,451.5

3.2

2,208,624.3

4.6

75,642.3

12.4

422,649.3

5.4

1,719,437.8

4.0

2,230,191.9

5.5

77,942.2

10.9

425,196.4

5.1

1,729,531.1

4.2

2,243,675.6

5.7

76,944.6

10.1

421,480.1

4.1

1,742,645.4

4.4

2,263,627.7

6.1

76,617.3

10.3

423,111.9

2.0

1,753,296.4

4.4

2,279,234.1

6.2

77,842.5

8.9

432,602.2

1.6

1,756,597.4

4.4

2,288,816.9

6.2

2012 1

81,635.4

11.0

439,352.9

2.3

1,757,058.7

4.8

2,292,213.5

6.5

81,655.3

8.3

437,193.9

1.1

1,762,988.4

5.3

2,302,065.8

7.2

79,068.0

8.3

440,075.4

2.1

1,773,172.9

5.7

2,341,626.9

8.8

80,641.8

10.2

437,445.3

2.8

1,777,114.7

5.5

2,349,723.2

8.6

80,547.7

9.1

438,795.3

3.5

1,784,220.5

5.5

2,357,701.0

8.4

81,804.0

9.5

441,611.0

4.7

1,796,981.5

5.9

2,377,071.3

8.5

81,555.7

10.1

441,760.6

5.4

1,807,289.2

6.0

2,393,737.7

8.4

82,369.1

8.9

439,573.2

4.0

1,817,134.9

5.7

2,405,239.9

7.8

82,958.7

6.4

440,034.3

3.5

1,819,290.1

5.2

2,415,263.5

7.6

85,078.6

10.6

444,477.8

5.5

1,822,420.9

4.6

2,424,000.4

7.1

82,956.5

8.3

445,463.9

5.3

1,830,280.3

4.4

2,440,062.8

7.1

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

88,855.7

8.8

472,239.6

8.0

1,857,135.0

5.3

2,488,539.0

8.1

89,523.5

13.2

472,430.1

7.4

1,862,405.5

5.0

2,499,718.1

6.8

87,729.0

8.8

475,330.0

8.7

1,867,726.3

5.1

2,512,459.7

6.9

89,654.8

11.3

475,526.7

8.4

1,870,289.7

4.8

2,518,239.1

6.8

91,207.6

11.5

486,587.5

10.2

1,884,193.2

4.9

2,533,750.8

6.6

90,643.7

11.1

488,982.7

10.7

1,890,728.6

4.6

2,549,443.5

6.5

93,729.6

13.8

481,416.9

9.5

1,888,658.4

3.9

2,557,336.3

6.3

95,130.6

14.7

490,518.7

11.5

1,903,187.1

4.6

2,577,546.7

6.7

93,640.4

10.1

491,947.9

10.7

1,908,557.6

4.7

2,587,071.4

6.7

93,609.9

12.8

499,242.7

12.1

1,923,339.2

5.1

2,605,873.9

6.8

96,988.5

13.7

509,617.9

11.3

1,932,026.4

5.3

2,619,029.5

6.6

2013 1

98,541.6

14.8

515,742.5

10.9

1,937,045.6

5.2

2,635,100.1

6.7

100,547.9

13.2

518,475.5

9.8

1,954,340.7

5.2

2,647,674.0

6.4

100,624.0

12.4

520,299.0

10.1

1,964,954.0

5.5

2,659,370.7

6.4

Source: The Bank of Korea

67 Statistical Appendices

9 10

Statistical A ppendic es 15. Exchange rates (end-period) \/US$ Period

Won

\/100ďżĽ y-o-y change (%)

Won

\/Euro

y-o-y change (%)

Won

y-o-y change (%)

E c o n o m i c B u l le t i n

2011

1,153.3

1.3

1,485.2

6.3

1,494.1

-1.3

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

2011 7

1,052.6

-11.3

1,353.2

-1.2

1,507.9

-2.9

1,071.7

-9.9

1,396.8

-0.7

1,547.3

2.7

1,179.5

3.3

1,536.6

12.7

1,601.4

2.9

1,104.5

-2.0

1,458.0

4.8

1,562.7

-0.4

1,150.3

-0.6

1,475.7

7.4

1,532.9

1.0

1,153.3

1.3

1,485.2

6.3

1,494.1

-1.3

2012 1

1,125.0

1.0

1,473.1

8.6

1,478.2

-2.4

1,126.5

-0.1

1,399.2

1.3

1,516.3

-2.1

1,137.8

2.8

1,380.7

3.7

1,513.4

-3.2

1,134.2

5.8

1,412.0

7.5

1,501.7

-5.6

1,177.8

9.0

1,489.1

11.5

1,456.6

-6.0

1,153.8

7.0

1,453.8

8.8

1,435.0

-8.0

1,136.2

7.9

1,453.6

7.4

1,393.1

-7.6

1,134.6

5.9

1,444.0

3.4

1,419.6

-8.3

1,118.6

-5.2

1,441.1

-6.2

1,444.3

-9.8

1,094.1

-0.9

1,374.5

-5.7

1,418.3

-9.2

1,084.7

-5.7

1,320.6

-10.5

1,407.3

-8.2

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

1,085.4

-3.6

1,176.2

-15.9

1,425.8

-6.0

1,112.1

-2.3

1,180.1

-14.5

1,425.2

-5.8

1,108.1

-2.3

1,132.0

-19.8

1,451.3

-3.4

1,128.3

-4.2

1,116.6

-25.0

1,471.4

1.0

1,149.7

-0.4

1,167.2

-19.7

1,498.2

4.4

1,113.6

-2.0

1,135.4

-21.9

1,476.7

6.0

1,110.9

-2.1

1,129.2

-21.8

1,470.6

3.6

1,075.6

-3.8

1,098.7

-23.8

1,451.3

0.5

1,061.4

-3.0

1,077.5

-21.6

1,456.6

2.7

1,062.1

-2.1

1,038.2

-21.4

1,444.8

2.7

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

1,067.7

-1.6

1,044.8

-11.2

1,463.6

2.7

1,068.8

-3.9

1,038.7

-12.0

1,469.4

3.1

1,031.7

-6.9

1,005.3

-11.2

1,425.0

-1.8

Source: The Bank of Korea

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Vol.36 No.5 May 2014

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