Economicbulletin08 en 0828

ISSN 2287-7266

ECONOMIC BULLETIN (Republic of Korea)

Republic of Korea

Vol.36 No.8 August 2014

conomic u l l e t i n

Vol.36 No.8 August 2014

The Green Book: Current Economic Trends Policy Issues

2014 Tax Revision Bill Focuses on Stimulating the Economy Measures to Stimulate Investment: Fostering Promising Service Industries

Economic News Briefing

FX Transaction Regulations Eased to Improve Customer Convenience BOK Cuts Key Rate to 2.25% Online Payment System to be Simplified Korea Grows 0.6% in Q2

Statistical Appendices ECONOMIC BULLETIN (Republic of Korea)

For free subscriptions and enquiries, please contact: Foreign Press Spokesperson’s Office Ministry of Strategy and Finance Government Complex, 477 Galmae-ro

August 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

MOSF / KDI

Tel. +82 44 550 4645

Website. http://eiec.kdi.re.kr

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14. 8. 25. 오후 8:02

contents

02 The Green Book: Current Economic Trends 03

Overview

04

1. External economic situation

09

2. Private consumption

11

3. Facility investment

13

4. Construction investment

15

5. Exports and imports

17

6. Mining and manufacturing production

19

7. Service sector activity

21

8. Employment

25

9. Financial markets 9.1 Stock market 9.2 Exchange rate 9.3 Bond market 9.4 Money supply & money market

29

10. Balance of payments

31

11. Prices and international commodity prices 11.1 Prices 11.2 International oil and commodity prices

37

12. Real estate market 12.1 Housing market 12.2 Land market

42

13. Composite indices of business cycle indicators

44 Policy Issues 45

2014 Tax Revision Bill Focuses on Stimulating the Economy

52

Measures to Stimulate Investment: Fostering Promising Service Industries

58 Economic News Briefing 61 Statistical Appendices

Editor-in-Chief Editorial Board Coordinators Editor

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Kim Joo-Hoon (KDI), An Il-Whan (MOSF) hoi Jae-Hyuk (MOSF), Lee Seong-Pyo (KDI), Lee Jae-Yeal (KDI) C Kim Dae-Hyun (MOSF), Lee Ji-Youn (KDI) David Friedman (MOSF)

14. 8. 25. 오후 7:59

Th Gr e ee nB oo k Cu rre nt

2

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

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14. 8. 25. 오후 7:59

OVERVIEW T he economic recover y is stagnating as employment growth continues to slow down and industrial indicators have not yet rebounded from the slowdown in April and May. Consumer price inflation remains stable.

The economy added fewer jobs in June than it did in May, adding only 398,000 jobs year-on-year.

Inflation in July remained stable in the 1 percent range and increased 1.6 percent year-on-year, a 0.1 percent decrease from the previous month.

Mining and manufacturing production in June recovered from last month’s slump when the index fell 2.8 percent due to fewer days worked owing to holidays such as Children’s Day and Buddha’s Birthday, and rose 2.9 percent quarter-on-quarter.

Service output growth increased from 0.5 percent to 1.6 percent in June, led by an increase in publishing & communications services and financial & insurance services, while retail sales grew at a slower pace, rising just 0.3 percent compared with 1.2 percent in the previous month.

Facility investment declined for the second consecutive month in June, falling 1.4 percent, due to weak machinery investment. Construction completed, which fell 6.8 percent in the previous month, rose 2.7 percent thanks to an increase in SOC spending at the end of the first half, failing to fully rebound from last month’s decline.

The composite index of coincident indicators fell for the third consecutive month in June, falling 0.1

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points, and the composite index of leading indicators picked up from the previous month, rising 0.2 points.

Export growth increased from 2.5 percent to 5.7 percent year-on-year in July due to a rising shipment to the US and EU and an increase in mobile phone, steel and automobile exports, but average daily exports decreased from US $2.28 billion to US $1.94 billion month-on-month.

The KOSPI rose due to increased foreign capital inflows in July. The dollar-won and 100 yen-won ratios rose.

In July, housing prices remained unchanged, while Jeonse (lump-sum deposits with no monthly payments) prices slightly increased.

3 The Green Book

k

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

The economy has been struggling as consumption and investment have yet to fully recover and exports growth has yet to stabilize.

The Korean government will continue to closely monitor internal and external economic trends as external risks remain, including QE tapering in the US, sanctions against Russia and political unrest in the Middle East, and at the same time will work to protect domestic markets from external shocks.

The government will successfully implement the new economic team’s economic policies and the Three-year Plan for Economic Innovation to boost the economy as well as strengthen Korea’s economic fundamentals.

14. 8. 25. 오후 7:59

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

1. External economic situation The global economy continues to recover at a moderate pace, led by the US. However, downside risk factors remain, such as the possibility of an early interest rate hike in the US and geopolitical

risks arising from sanctions against Russia and Israel’s attack on the Gaza Strip. Other uncertainties include China’s property slump, Argentina’s debt default and the eurozone's deflation concerns.

US 4 E c o n o m i c B u l le t i n

The US economy rebounded in the second quarter of 2014, growing 4.0 percent from the previous quarter.

The economic recovery is expected to continue in the second half of the year, led by the private sector, such as consumption, investment and employment.

Industrial production in June rose 0.2 percent month-on-month. The ISM Manufacturing Index, which forecasts business sentiment, posted 57.1 in July, the highest since April 2011.

The housing market recovery has slowed, with existing home sales (up 2.7%, m-o-m) increasing at a slower pace and new home sales (down 8.1%, m-o-m) falling sharply in June. However, home prices rose 1.1 percent month-on-month in May. Case-Shiller Home Price Index (q-o-q, m-o-m, %) 6.0 (Q2 2013) > 5.3 (Q3) > 1.0 (Q4) -0.1 (Jan 2014) > 0.0 (Feb) > 0.9 (Mar) > 1.2 (Apr) > 1.1 (May)

ISM Manufacturing Index (base=50) 54.9 (Jul 2013) > 56.5 (Dec) > 51.3 (Jan 2014) > 53.2 (Feb) > 53.7 (Mar) > 54.9 (Apr) > 55.4 (May) > 55.3 (Jun) > 57.1 (Jul)

Consumption conditions have continued to improve.

Although retail sales increased at a slower rate in June, rising 0.2 percent, compared to 0.5 percent in the previous month, the Conference Board Consumer Confidence Index was 90.9 in July, the highest level since October 2007.

New home sales (m-o-m, %) 13.5 (Jan 2013) > -1.1 (Nov) > -0.7 (Dec) > 3.4 (Jan 2014) > -5.5 (Feb) > -6.7 (Mar) > 1.2 (Apr) > 8.3 (May) > -8.1 (Jun)

Nonfarm payrolls were up 209,000 in July, rising by more than 200,000 for the sixth consecutive month. The unemployment rate inched up to 6.2 percent in line with the increase in the labor force participation rate (62.8% > 62.9%).

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

Conference Board Consumer Confidence Index (1985=100) 81.0 (Jul 2013) > 77.5 (Dec) > 79.4 (Jan 2014) > 78.3 (Feb) > 83.9 (Mar) > 81.7 (Apr) > 82.2 (May) > 86.4 (Jun) > 90.9 (Jul) UniversityofMichiganConsumerSentimentIndex(1966=100) 85.1 (Jul 2013) > 82.5 (Dec) > 81.2 (Jan 2014) > 81.6 (Feb) > 80.0 (Mar) > 84.1 (Apr) > 81.9 (May) > 82.5 (Jun) > 81.8 (Jul)

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89 (Jul 2013) > 84 (Dec) > 144 (Jan 2014) > 222 (Feb) > 203 (Mar) > 304 (Apr) > 229 (May) > 298 (Jun) > 209 (Jul) Unemployment rate (m-o-m, %) 7.3 (Jul 2013) > 7.2 (Aug) > 7.2 (Sep) > 7.2 (Oct) > 7.0 (Nov) > 6.7 (Dec) > 6.6 (Jan 2014) > 6.7 (Feb) > 6.7 (Mar) > 6.3

(Apr) > 6.3 (May) > 6.1 (Jun) > 6.2 (Jul)

14. 8. 25. 오후 7:59

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

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

GDP (q-o-q, annualized rate)

2013.Q1

2014.Q1

Industrial production (q-o-q)

5

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

(thousands)

12

600 10 400 200

8

0 6 -200

The Green Book

800

4

-400 -600

2 -800 -1000

0

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 Real GDP² - Personal consumption expenditure - Nonresidential fixed investment - Residential fixed investment Industrial production Retail sales Existing home sales Unemployment rate³ Consumer prices (y-o-y)

2.3 1.8 7.2 13.5 3.8 5.1 8.9 8.1 2.1

2.2 2.4 3.0 11.9 2.9 4.2 8.9 7.4 1.5

Q1 2.7 3.6 1.5 7.8 1.0 1.5 0.7 7.7 1.7

2013 Q2

Q3

Q4

Q1

Q2

2014¹ Jun

1.8 1.8 1.6 19.0 0.5 0.3 3.5 7.5 1.4

4.5 2.0 5.5 11.2 0.6 1.0 4.4 7.2 1.5

3.5 3.7 10.4 -8.5 1.2 0.9 -7.1 7.0 1.2

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

4.0 2.5 5.5 7.5 1.3 2.3 1.5 6.2 2.1

0.2 0.2 5.4 6.1 2.1

Jul 2.7 6.2 2.1

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

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14. 8. 25. 오후 7:59

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

China The Chinese economy grew 7.5 percent in the second quarter of 2014, a slight improvement compared to the 7.4 percent growth seen in the first quarter of 2014.

Production, investment and exports all improved in June, and the manufacturing PMI rose for the fifth consecutive month in July.

Manufacturing PMI (base=50) 50.5 (Jan 2014) > 50.2 (Feb) > 50.3 (Mar) > 50.4 (Apr) > 50.8 (May) > 51.0 (Jun) > 51.7 (Jul)

6

(Percentage change from same period in previous year)

2011 2012¹ 2013¹ Annual Annual Q4 Annual Q1 Q2

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

Real GDP

9.3

7.7

7.9

Q3

Q4

Q1

2014¹ Q2 May

7.8

7.7

7.7

7.5

7.7

7.4

7.5

9.7

9.5

9.1 10.1 10.0

8.7

8.9

Jun

-

-

8.8

9.2

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 17.6 17.3

17.2 17.3

Retail sales

17.1

14.3 14.9

13.1 12.4 13.0 13.3 13.5 12.0 12.3

12.5 12.4

Exports

20.7

8.3

9.5

8.6 18.9

4.2

4.0

7.5 -4.7

5.0

7.0

7.2

Consumer prices²

5.4

2.6

2.1

2.6

2.4

2.8

2.9

2.2

2.5

2.3

Producer prices²

6.0

-1.7 -2.3

2.4

2.3

-1.9 -1.7 -2.7 -1.7 -1.4 -2.0 -1.5

-1.4 -1.1

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

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

(%)

(%)

16

60

14

50

12

40

10

30

8

20

6

10

4

0 2004.Q1 2005.Q1

GDP (y-o-y, left)

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70

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)

14. 8. 25. 오후 7:59

Japan The Japanese economy has not been able to recover from the aftermath of the sales tax hike. Economic data on production and consumption were poor in June.

The consumer price index (CPI) rose at a slower pace in June (up 3.6%, m-o-m) , and the core CPI increased 3.4 percent.

The Japanese government revised down the growth forecast for 2014 from 1.4 percent to 1.2 percent, reflecting the slowdown in the second quarter.

(Percentage change from previous period)

2011 2012¹ Annual Annual Q4

Annual

Q1

2013¹ Q2

Q3

Q4

Q1

2014¹ Q2 May

7

Jun

-0.5

1.4

0.0

1.5

1.1

1.0

0.2

0.2

1.6

-

-

-

Industrial production

-2.4

-0.5

-0.1

0.2

0.1

-0.1

1.3

0.6

2.8

-3.7

0.7

-3.3

Retail sales

-1.2

0.0

0.1

0.2

0.1

0.4

0.4

0.1

3.9

-7.0

4.6

0.4

Exports (y-o-y)

-2.7

-2.8

-5.5

9.7

1.2

7.1

12.8

17.4

7.0

0.1

-2.7

-2.0

Consumer prices (y-o-y)

-0.3

-0.0

-0.2

0.4

-0.6

-0.3

0.9

1.4

1.5

2.8

3.7

3.6

The Green Book

Real GDP

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

(%)

(%)

4

25 20 15 10

2

5 0

0 -5

-2

-10 -15

-4

-20 -25

-6

-30

-8 2004.Q1

2005.Q1

GDP (q-o-q, left)

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2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

Industrial production (q-o-q, right)

14. 8. 25. 오후 7:59

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

Eurozone Industrial production in the eurozone declined 1.1 percent month-on-month in May, and inflation remains low, with consumer prices rising 0.4 percent year-on-year in July.

European Central Bank (ECB) president Mario Draghi appeared before the European Parliament’s Committee on Economic and Monetary Affairs on July 14, where he pointed out the strong euro as a threat to recovery and mentioned that the central bank may utilize unconventional monetary policies if inflation continues to remain low.

8

(Percentage change from previous period)

2012 Annual Annual

Q1

2013 Q2

Q3

Q4

Q1

Apr

2014¹ May

Jun

Jul

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

Real GDP

-0.6

-0.4

-0.2

0.3

0.1

0.3

0.2

-

-

-

-

Industrial production

-2.5

-0.7

0.3

0.6

0.0

0.5

0.3

0.7

-1.1

-

-

Retail sales

-1.7

-0.9

0.0

0.1

0.5

-0.4

0.7

-0.2

0.0

-

-

Exports (y-o-y)

7.6

1.0

1.0

1.8

0.3

1.0

1.3

-2.9

0.2

-

-

Consumer prices (y-o-y)

2.5

1.4

1.9

1.4

1.3

0.8

0.7

0.7

0.5

0.5

0.4

1. Preliminary Sources: Eurostat, Bloomberg

Eurozone’s GDP growth and industrial production Source: Eurostat 3

(%) 10 8

(%)

2

6 4

1

2 0

0

-2 -1

-4 -6

-2

-8 -10

-3 2004.Q1

2005.Q1

GDP (q-o-q, left)

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2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

Industrial production (q-o-q, right)

14. 8. 25. 오후 7:59

2. Private consumption

Private consumption in the second quarter of 2014 (preliminary GDP) decreased 0.3 percent compared to the previous quarter but rose 1.5 percent compared to a year ago.

(Percentage change from previous period)

2012 Q2

Q3

Q4

Annual

Q1

Annual

Q1

Private consumption²

1.9

0.8

0.2

1.2

0.4

2.0

(y-o-y)

-

1.7

0.7

2.6

2.7

-

2013¹ Q2

Q3

Q4

2014¹ Q1 Q2

-0.1

0.7

1.0

0.6

0.2

-0.3

1.7

2.1

2.1

2.2

2.5

1.5

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

Private consumption Source: The Bank of Korea (national accounts) 12

9

(%)

10

The Green Book

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

2005.Q1

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

Private consumption (q-o-q)

2013.Q1

2014.Q1

Private consumption (y-o-y)

Retail sales in June rose 0.3 percent compared to the previous month due to strong durable goods sales (up 3.6%) backed by automobile sales, despite

decreases in semi-durable goods (down 1.9%) and nondurable goods (down 0.6%). Compared to a year ago, retail sales rose 1.2 percent.

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

(%)

10 5 0 -5 -10 2004.1

2005.1

Retail sales (m-o-m)

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2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Retail sales (y-o-y)

14. 8. 25. 오후 7:59

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

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

Retail sales (y-o-y) - Durable goods² · Automobiles - Semi-durable goods³ - Nondurable goods4

2012 Annual Q3 1.4 2.4 2.7 5.3 3.2 2.4 -4.4 -0.4 -0.1 2.0 1.3

Q4 -0.1 2.5 2.1 12.0 1.1 -1.8

Annual 0.8 0.3 2.1 2.0 0.6

Q1 -1.0 0.3 -4.1 -7.2 1.4 -0.6

2013 Q2 0.9 1.2 1.8 2.2 -0.4 1.3

Q3 0.8 0.7 -0.3 2.1 0.9 1.5

Q4 0.3 1.2 0.2 -2.1 -0.8 0.8

Q1 0.3 2.5 4.4 12.0 -1.5 -1.0

2014¹ Q2¹ May¹ -0.4 1.2 0.8 1.1 -0.9 3.4 5.4 -2.5 -1.4 -2.6 0.2 1.7

Jun¹ 0.3 1.2 3.6 6.0 -1.9 -0.6

1. Preliminary 2. Durable goods: Automobiles, electronic appliances, furniture, telecommunications devices, etc.

3. Semi-durable goods: Clothing, footwear, etc. 4. Nondurable goods: Food, medicine, cosmetics, fuel, tobacco, etc.

Source: Statistics Korea

In July, sales of semi-durable goods will rise, but nondurable goods sales are expected to decline.

Despite domestic sales of cars growing slower year-on-year in July, the number of cars sold increased compared with the previous month (101,000 > 107,000). Cellphone service transfer sales fell.

Cellphone service transfer sales (thousands, Korea Telecommunications Operators Association) 1,226 (Jan 2014) > 1,297 (Feb) > 592 (Mar) > 398 (Apr) > 890 (May) > 847 (Jun) > 644 (Jul)

Sales at department stores increased year-on-year due to below-average precipitation levels, but sales at large discount stores continued to fall. Domestic sales of gasoline and credit card use continued to increase. (y-o-y, %)

Credit card use Department store sales Large discount store sales Domestic sales of gasoline Domestic sales of cars

2013 Dec 3.6 -0.3 -5.7 2.6 -11.8

Jan 9.1 6.8 18.6 -2.9 4.1

Feb 2.5 -2.4 -23.1 2.2 9.6

Mar 7.0 -1.1 -3.7 -0.2 0.9

2014 Apr 5.2 -1.4 -4.1 -0.9 10.1

May 3.8 0.8 1.7 2.5 3.9

Jun 5.2 -4.6 -5.9 2.2 7.5

Jul 5.1 4.2 -4.5 2.7 0.7

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 July data)

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3. Facility investment

Facility investment (advanced GDP) rose 1.3 percent quarter-on-quarter and 7.9 percent year-on-year in the second quarter of 2014.

(Percentage change from previous quarter)

2012 Annual Q4

Annual¹

Q1

2013¹ Q2

2014¹

1.5

1.0

2.7

5.6

-1.9

1.3

-12.7

-3.9

1.5

10.9

7.3

7.9

Q3

Q4

Q1¹

Q2¹

Facility investment²

0.1

-3.3

-1.5

(y-o-y)

-

-6.4

-

0.3

-5.3

-3.5

-2.6

4.4

6.5

3.7

-4.9

-

-0.4

1.8

4.0

11.3

-6.4

-6.5

10.7

5.5

-

- Machinery - Transportation equipment 1. Preliminary 2. National accounts Source: The Bank of Korea

11 Facility investment 40

The Green Book

Source: The Bank of Korea (national accounts) (%)

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

2005.Q1

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

Facility investment (q-o-q)

2013.Q1

2014.Q1

Facility investment (y-o-y)

The facility investment index in June fell 1.4 percent month-on-month as declines in machinery investment offset gains in transportation equipment investment. The index rose 2.3 percent year-on-year.

(Percentage change from previous quarter)

2012 Annual Annual Facility investment index

Q1

2013 Q2

Q3

Q4

Q1

Q2¹

2014 May¹

Jun¹ -1.4

-2.8

-1.3

-3.1

1.1

5.0

5.9

-5.2

2.1

-0.8

-

-

-13.1

-4.0

2.7

10.4

5.9

6.1

5.5

2.3

- Machinery

-2.7

-2.6

-3.5

2.9

4.5

7.3

-8.6

1.4

0.5

-2.7

- Transportation equipment

-3.0

2.3

-2.0

-4.0

6.4

2.5

4.7

3.5

-4.2

2.2

(y-o-y)

1. Preliminary Source: Statistics Korea

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14. 8. 25. 오후 7:59

T h e G r e e n B o o k : Current Economic Trends Facility investment by type Source: The Bank of Korea (national accounts) 60

(y-o-y, %)

50 40 30 20 10 0 -10 -20 -30

12

-40 2004.Q1

2005.Q1

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

Transportation equipment

2014.Q1

Machinery

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

The facility investment outlook is mixed, as exports and the average manufacturing operation ratio have been rising but investment confidence has been falling.

Business survey index for manufacturing sector (Bank of Korea) 83 (Nov 2013) > 78 (Dec) > 79 (Jan 2014) > 81 (Feb) > 85 (Mar) > 86 (Apr) > 86 (May) > 81 (Jun) >78 (Jul) > 75 (Aug)

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

(trillion won)

(y-o-y, %)

9

60 50 40

8

30

7

20 10

6

0

5

-10 -20

4

-30

3

-40 -50

2 2004.Q1 2005.Q1

2006.Q1

Machinery orders (left)

EB 8월호 내지.indd 12

70

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

Machinery imports (right)

14. 8. 25. 오후 7:59

(Percentage change from same period in previous year)

2012 Annual Annual Domestic machinery orders

-13.9

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

6.7

-

-

-Public

-11.0

20.6

-Private

Q1 -11.4

2013 Q2 8.8

6.8

3.9

-47.0

94.2

Q3

2014¹ Q2¹ May¹

Q4

Q1

2.2

32.4

17.9

-6.9

27.7

-2.8

-10.4

-21.0

3.6

-9.7 129.7 184.6

-41.6

-54.5

58.4 12.1

3.5

Jun¹

-14.8

4.2

-14.2

5.2

-6.1

4.0

3.8

22.1

4.1

8.6

-9.5

Machinery imports

-3.0

6.5

-11.8

-2.1

6.8

13.2

2.3

11.2

13.5

6.9

Average manufacturing operation ratio

78.5

76.2

77.3

75.9

75.1

76.6

77.2

76.4

74.7

76.7

Facility investment adjustment pressure²

-0.7

-1.4

-2.6

-1.6

-1.7

0.1

-0.6

-0.8

-3.4

-0.5

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

13 Construction investment (advanced GDP) in the second quarter of 2014 rose 0.6 percent quarteron-quarter and 0.4 percent year-on-year.

(Percentage change from previous quarter)

2012¹ Annual Q4 Construction investment²

Annual

Q1

2013¹ Q2

2014¹ Q3

Q4

Q1¹

Q2¹

-3.9

-2.4

6.7

6.5

4.6

0.2

-5.2

5.1

0.6

-

-6.2

-

1.9

9.8

8.8

5.4

5.5

0.4

- Building construction

-1.6

-1.6

8.8

5.4

7.2

0.5

-4.0

5.1

-

- Civil engineering works

-7.1

-3.6

3.7

8.1

1.0

-0.1

-6.9

5.1

-

(y-o-y)

The Green Book

4. Construction investment

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

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

(%)

10

5

0

-5

-10 2004.Q1

2005.Q1

2006.Q1

Construction investment (q-o-q)

EB 8월호 내지.indd 13

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

Construction investment (y-o-y)

14. 8. 25. 오후 7:59

T h e G r e e n B o o k : Current Economic Trends The value of construction completed (constant) in June rose 2.7 percent month-on-month as both building construction and civil engineering works increased. The index fell 2.9 percent year-on-year.

(Percentage change from previous period)

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

2012 Annual Annual -5.0 10.1 -6.6 14.8 -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

Q1 1.5 6.5 6.0 -5.0

2014¹ Q2¹ May¹ -0.8 -6.8 -1.0 6.5 1.6 -5.1 -4.5 -9.5

Jun¹ 2.7 -2.9 0.9 5.7

1. Preliminary Source: Statistics Korea

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

14

40

(y-o-y, %)

30 20

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

10 0 -10 -20 -30 2004.Q1

2005.Q1

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

Residential buildings

Building construction

2013.Q1

2014.Q1

Civil engineering works

Construction investment is expected to be negatively affected by an increase in unsold houses and a decrease in new apartment supplies.

Unsold houses (thousands, Ministry of Land, Infrastructure and Transport) 66 (Sep 2013) > 64 (Oct) > 64 (Nov) > 61 (Dec) > 59 (Jan 2014) > 52 (Feb) > 48 (Mar) > 46 (Apr) > 49 (May) > 50 (Jun) New apartment supplies (thousands, Ministry of Land, Infrastructure and Transport) 24 (Sep 2013) > 50 (Oct) > 44 (Nov) > 12 (Dec) > 6 (Jan 2014) > 11 (Feb) > 24 (Mar) > 39 (Apr) > 39 (May) > 29 (Jun) > 15 (Jul) (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

2012 Annual -6.2 -4.7 -9.1 -0.5

Annual -15.3 -13.4 -19.2 -7.3

Q1 -40.8 -2.2 -34.0 -50.4 -12.4

2013 Q2 -29.5 0.3 -29.6 -29.4 -14.6

Q3 -10.6 16.8 -10.8 -10.0 -3.4

Q4 22.4 2.8 17.9 33.4 -0.2

Q1 15.5 -1.4 10.7 24.4 18.4

2014¹ Q2¹ May¹ 23.7 4.8 8.7 -20.1 43.5 58.8 -11.7 -54.9 21.6 7.4

Jun¹ 23.3 6.3 23.8 21.7 24.3

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

EB 8월호 내지.indd 14

14. 8. 25. 오후 7:59

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 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

Export growth by item (y-o-y, %) 24.6 (mobile phones), 22.4 (steel), 20.8 (automobiles), 12.4 (petroleum products), 1.0 (semiconductors), -13.7 (vessels)

Exports in July increased 5.7 percent (preliminary) year-on-year to US $48.42 billion.

The Green Book

5. Exports and Imports

15

Export growth by region (y-o-y, %) 19.4 (US), 11.6 (EU), 6.3 (ASEAN countries), 6.0 (Japan), -7.0 (China)

As the global economy recovered, exports continued to improve, led by shipments to the US and shipments of mobile phones and automobiles.

Average daily exports, an indicator adjusted to days worked, was up 5.7 percent year-on-year, posting US $1.94 billion in July.

By item, mobile phone, steel and semiconductor exports were up, while vessel exports declined. By region, exports to the advanced economies rose but exports to China continued to fall.

Average daily export growth (y-o-y, %) 8.8 (Jan 2014) > -3.3 (Feb) > 1.5 (Mar) > 8.9 (Apr) > 5.4 (May) > 4.9 (Jun) > 5.7 (Jul) (US $ billion)

2013 Exports (y-o-y, %) Average daily exports

2014

Annual

Q1

Q2

Q3

Q4

Jul

Q1

Q2

Jun

Jul¹

559.63

135.32

141.16

136.79

146.37

45.83

137.59

145.75

47.85

48.42

2.1

0.3

0.7

2.8

4.7

2.6

1.7

3.3

2.5

5.7

2.05

2.02

2.06

2.00

2.11

1.83

2.07

2.19

2.28

1.94

1. Preliminary Source: Korea Customs Service

EB 8월호 내지.indd 15

14. 8. 25. 오후 7:59

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

16

2008.1

2009.1

2010.1

Semiconductors

2011.1

2012.1

2013.1

2014.1

Automobiles

Steel

Imports in July rose 5.8 percent (preliminary) year-on-year to US $45.90 billion.

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

Imports grew faster in July, as imports of commodities, capital goods and consumer goods all rose.

Import growth by category (y-o-y, %) 4.5 (commodities), 4.0 (capital goods), 17.0 (consumer goods)

(US $ billion)

2013 Imports

2014

Annual

Q1

Q2

Q3

Q4

Jul

Q1

Q2

Jun

Jul¹

515.58

129.73

126.76

126.03

133.06

40.72

132.38

130.76

42.40

45.90

(y-o-y, %)

-0.8

-2.9

-2.8

0.3

2.5

-3.0

2.0

3.2

4.1

5.8

Average daily imports

1.89

1.94

1.85

1.84

1.91

1.89

1.99

1.97

2.02

1.84

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 -80 2004.1

2005.1

Import growth rate

EB 8월호 내지.indd 16

2006.1

2007.1

2008.1

2009.1

Commodities

2010.1

2011.1

2012.1

2013.1

2014.1

Capital goods

14. 8. 25. 오후 7:59

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

(US $ billion)

2013 Trade balance

2014

Annual

Q1

Q2

Q3

Q4

Jul

Q1

Q2

Jun

Jul¹

44.05

5.59

14.40

10.76

13.30

2.45

5.21

14.98

5.45

2.52

1. Preliminary Source: Korea Customs Service

The Green Book

The trade balance (preliminary) in July remained in the black for the 30th consecutive month, posting a surplus of US $2.52 billion.

17

6. Mining and manufacturing production Mining and manufacturing production increased 2.9 percent month-on-month in June, as declines in refined petroleum were offset by gains in semiconductors & parts and processed metals.

Compared to the same period in the previous year, the index was up 0.6 percent.

Compared to the previous month, production of semiconductors & parts (up 11.2 %), processed metals (up 5.9%) , primary metals (up 3.7%) and automobiles (up 1.4%) rose, while refined petroleum (down 4.5%), audio-visual communications equipment (down 2.8%) and

EB 8월호 내지.indd 17

mechanical equipment (down 2.6%) fell.

C o m p a re d to a ye a r a g o , p ro d u c t i o n o f semiconductors & parts (up 11.5%), primary metals (up 4.0%) and electrical equipment (up 2.2%) rose, while audio-visual communications equipment (down 10.4%) and refined petroleum (down 5.0%) declined.

The manufacturing inventory-shipment ratio fell 1.6 percentage points month-on-month to 119.7 percent as inventories rose 1.0 percent and shipments rose 2.3 percent.

14. 8. 25. 오후 7:59

T h e G r e e n B o o k : Current Economic Trends Industrial production Source: Statistics Korea (industrial activity trends) 50

(%)

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

18

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)

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

(Percentage change from previous period)

2013 Q2 Q3

Q4

Jun

Q1

2014¹ Q2¹ May¹ Jun¹

-0.9

1.9

0.2

0.3

-0.9

0.2

1.7

-1.6

0.7

0.3

-2.1

0.6

0.0

2.1

0.2

0.4

-1.1

-3.1

3.0

0.1

1.8

-1.6

0.6

0.3

-2.3

0.4

-0.1

1.7

1.2

-0.1

-0.5

-2.0

2.3

1.6

1.7

1.7

0.0

-0.4

-2.6

2.1

-2.0

1.6

0.8

-0.1

-0.5

-1.4

2.7

2.4

-1.1

-0.5

0.6

-2.1

1.0

Annual

Q1

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

-

-0.5

(y-o-y)

0.3

-0.8

0.0

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

-

-0.4

-1.0

0.3

-0.8

0.0

0.4

-0.3

-0.6

-1.4

-1.7

-1.1

2.3

1.6

-0.2

5.7

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

0.1

-2.8

2.9

Inventory³

5.0

-0.6

-2.1

Manufacturing Average operation ratio (%) activity Production capacity4

76.2

77.3

75.9 75.1 76.5 75.9 77.2 76.4 74.7 76.7

1.7

1.8

1. Preliminary

2. Including mining, manufacturing, electricity and gas industry

3. End-period

4. Percentage change from same period in previous year

1.6

1.8

1.7

1.7

1.2

1.1

1.1

0.9

Source: Statistics Korea

Inventories of mechanical equipment (up 3.7%) , audio-visual communications equipment (up 14.2%) and refined petroleum (up 5.1%) rose, while petroleum products (down 1.6%), clothing & fur (down 1.7%) and furniture (down 11.9%) declined.

Shipments of semiconductors & parts (up 10.7%), processed metals (up 6.6%) and primary metals

EB 8월호 내지.indd 18

(up 3.4%) rose, while mechanical equipment (down 7.7%) , refined petroleum (down 4.3%) and audio-visual communications equipment (down 4.9%) fell.

The average operation ratio of the manufacturing sector rose 2.0 percentage points month-on-month to 76.7 percent.

14. 8. 25. 오후 7:59

Average manufacturing operation ratio Source: Statistics Korea (industrial activity trends) 100 90 80 70 60 50 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

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

19

(m-o-m, %)

6

The Green Book

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

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

Shipment growth

2011.1

2012.1

2013.1

2014.1

Inventory growth

The July outlook for mining and manufacturing production is mixed. Exports of major items such as automobiles, petroleum products and steel rose, but negative factors also exist, such as a sluggish recovery in domestic consumption and a high base effect from June.

7. Service sector activity Service output in June rose 1.6 percent month-on-month, led by publishing & communications services, financial & insurance services and hotels & restaurants. Compared to the same period of the previous year, service output increased 2.2 percent.

Publishing & communications services were up 4.2 percent month-on-month due to World Cup-related demand. Hotels & restaurants grew 3.3 percent, gradually recovering from the aftermath of the Sewol ferry disaster.

EB 8월호 내지.indd 19

14. 8. 25. 오후 7:59

T h e G r e e n B o o k : Current Economic Trends Although most indicators improved, business services (down 0.3%, m-o-m) and membership organizations & personal services (down 3.4%, m-o-m) remained sluggish.

Service output is likely to rise in July, led by wholesale & retail and financial & insurance services, as sales at department stores and large discount stores recovered and stock transactions increased.

Average daily stock transactions (trillion won) 4.6 (Dec 2013) > 5.5 (Jan 2014) > 5.4 (Feb) > 5.6 (Mar) > 5.6 (Apr) > 5.5 (May) > 5.4 (Jun) > 6.0 (Jul)

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

(%)

15

20

10 5

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

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)

Weight

2012 2013 Annual Q4 Annual Q1 Q2

Q4

Q1

2014¹ Q2¹ May¹ Jun¹

Service activity index

100.0

1.6

0.1

1.4

0.2

0.2

0.9

0.5 -0.1

0.5

1.6

- Wholesale & retail

21.6

0.8

0.3 -0.2

-0.8

0.1 -0.1

0.6

0.1 -0.4

1.3

0.7

- Transportation services

8.5

1.2

-0.1

1.1

0.7

0.1 -1.0

0.6

1.1 -0.5 -1.0

0.8

- 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

14.7

- Financial & insurance services

0.4

Q3

2.7 -0.9 -1.6 -2.3

0.0

3.3

0.9

3.4 -2.0

0.0

1.4

4.2

2.8

1.0

0.5

-0.1 -1.1 -0.5

0.6

2.7

1.2

1.3

2.1

- Real estate & renting

5.3 -4.8

0.7

2.5

-2.2

7.4 -3.6

3.6 -3.2

7.9

1.6

0.4

- Professional, scientific & technical services

5.6

3.7

-0.2

3.3

0.2

4.9 -2.9

0.7

0.4

2.6

1.9

4.1

- Business services

3.3

3.5

0.2

2.2

1.6 -0.4

1.6

0.4

1.6 -0.8 -0.6 -0.3

- Education services

10.9

0.9

0.8

0.8

0.8 -1.0

1.2

0.7

1.1 -2.2 -1.5

0.4

- Healthcare & social welfare services

7.5

6.7

0.7

5.0

0.8

1.1

2.5

1.6

1.5

- Entertainment, cultural & sports services

2.9

2.8

-3.0 -0.5

1.7

0.6

- Membership organizations & personal services

3.6 -1.4

- Sewerage & waste management

0.6 -0.6

0.0

5.3

-4.3 -0.4

0.9

0.1

1.8

7.1

2.2

0.2 -0.2

1.4 -6.9

3.1 -0.7

3.5

0.2

0.1 -3.5 -2.4 -3.4

0.5

0.9

1.2

0.2 -1.4 -5.4

0.6

6.0

1. Preliminary Source: Statistics Korea

EB 8월호 내지.indd 20

14. 8. 25. 오후 7:59

June 2014 service output by business Source: Statistics Korea (industrial activity trends) 12

(y-o-y, %)

10

Professional, scientific & Financial & technical services insurance services

8 6 4

Education services

Transportation services

2

Entertainment, cultural & sports services

Sewerage & waste management

0 Total index Wholesale & retail

-2 -4 -6

Publishing &

Hotels & communications restaurants services

Real estate & renting

Business services

Health & social welfare services

Membership organizations & personal services

-8 -10 -12

21

The number of workers on payroll in June increased by 398,000 from a year earlier to 25,880,000 and the employment rate rose 0.4 percentage points to 60.9 percent.

By industry, employment grew slower in services but grew faster in manufacturing.

The Green Book

8. Employment

By employment status, the number of regular workers continued to increase, while nonwage workers, such as the self-employed, decreased.

Number of persons employed and employment growth Source: Statistics Korea (employment trends) 1,200

(thousands)

(millions)

27 26

1,000

26

800

25 600

25 24

400

24 200

23 23

0

22 -200

22

-400

21 2004.1

2005.1

2006.1

Employment growth (y-o-y, left)

EB 8월호 내지.indd 21

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Number of employed (seasonally adjusted, right)

14. 8. 25. 오후 7:59

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

2013.1

Original data

2014.1

Seasonally adjusted rate

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

2010 2011 2012 Annual Annual Annual Q4 Annual Q1 Number of employed (millions)

2013 Q2 Q3

Q4

Jun

Q1

2014 Q2 May Jun

23.83 24.24 24.68 24.80 25.07 24.18 25.33 25.41 25.35 25.48 24.91 25.79 25.81 25.88

Employment rate (%)

58.7 59.1 59.4 59.4 59.5 57.7 60.2 60.3 60.0 60.5 58.8 60.8 60.8 60.9

(Seasonally adjusted)

58.7 59.1 59.4 59.2 59.5 59.2 59.4 59.7 59.9 59.5 60.4 59.9 59.7 59.8

Employment growth (y-o-y, thousands)

323 415 437 342 386 257 324 421 541 360 729 464 413

398

(Excluding agriculture, forestry & fisheries)

405 440 451 344 394 266 351 402 556 379 717 518 471

474

- Manufacturing

191

63

14 140

165

33

-2

22 -40

- Construction - Services

79 119 122 -19 -64

-6

26

49

4

-9

96 123 136 148 3

27

12

14

23

200 386 416 236 318 199 212 354 507 263 570 387 327

304

- Agriculture, forestry & fisheries

-82

12 -54 -58

-76

- Wage workers

517 427 315 303 483 329 472 526 604 497 711 485 437

430

· Regular workers

697 575 436 469 615 554 638 632 637 593 606 478 441

462

· Temporary workers

-34

-25

-78

-14

-2

-2 -109

-8

-9 -27

19 -15 -19

-96 -152 -169 -65

2 -114

74 118 121

78

· Daily workers

-146

-70 -120 -57

-37 -73

- Nonwage workers

-194

-11 121

39

-97 -71 -148 -105 -63 -136

19 -22 -24

-32

· Self-employed workers

-118

1 124

33

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

-7 -14 -31

-7

- Male

181 238 234 172 186 123 179 179 262 194 373 228 200

195

- Female

142 177 203 170 200 135 145 242 279 166 357 236 212

203

- 15 to 29

-43

-35

-36 -80

-50 -117 -88 -41

- 30 to 39

-4

-47

-31 -10

-21 -15

- 40 to 49

29

57

- 50 to 59 - 60 or more

11

-3

22

12

3 -42 -35

17

46 -46

8 -34 -42 -23 -6

30

53

10

31 -111 -125 -110

97

23

42

-6 -42 -42

-25

99

53

34

22

13

294 291 270 220 254 196 254 279 285 269 323 227 227

181

47 149 222 215 181 181 156 187 200 151 218 192 182

187

Source: Statistics Korea

EB 8월호 내지.indd 22

14. 8. 25. 오후 7:59

Employment by industry Source: Statistics Korea (employment trends) 100 80 60

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 69.7 69.4 69.3

40 20

7.2 7.1 7.2 7.2 7.2 7.2 7.1 7.1 7.1 7.3 7.2 7.2 6.9 6.7 6.9 7.1 7.1 7.1 7.0 6.9 7.0 7.1 7.0 7.0 6.8 6.7 6.8 6.9 7.1 7.1 17.0 17.1 16.6 16.3 16.2 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 16.7 16.8 16.8

0 4.4 4.7 5.6 6.5 7.0 7.0 6.8 6.8 6.8 6.9 6.5 4.9 4.3 4.6 5.6 6.3 6.7 6.9 6.7 6.8 6.8 6.9 6.2 4.7 4.4 4.5 5.3 6.1 6.4 6.5 2012.1 2 3 4 5 6 7 8 9 10 11 12 2013.1 2 3 4 5 6 7 8 9 10 11 12 2014.1 2 3 4 5 6

Services

Construction

Manufacturing

Agriculture, forestry & fisheries

Employment by status of workers Source: Statistics Korea (employment trends) 100 4.5 4.5 4.8 5.1 5.4 5.4 5.3 5.3 5.4 5.3 5.2 4.5 4.2 4.2 4.7 5.0 5.0 5.2 5.1 5.2 5.2 5.3 5.1 4.3 4.2 4.3 4.6 4.8 5.0 5.0 80

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 22.2 22.1 22.1

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 19.2 19.4 19.6 19.7 19.7 19.5

40 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 47.3 47.1 47.2 20 45.4 0 2012.1 2

3

4

5

6

Unpaid family workers

7

8

9

10

11 12 2013.1 2

Self-employed workers

3

4

5

6

Daily workers

7

8

9

10

11 12 2014.1 2

Temporary workers

3

4

5

6

The Green Book

6.5 6.5 6.3 6.6 6.8 6.7 6.7 6.4 6.4 6.7 6.8 6.6 6.2 6.0 6.0 6.5 6.7 6.7 6.3 6.1 6.3 6.5 6.4 6.4 6.3 6.0 5.7 6.0 6.1 6.1 60

23

Regular workers

The number of unemployed persons in June increased by 136,000 year-on-year to 950,000, and the unemployment rate rose 0.4 percentage points to 3.5 percent. The unemployment rate rose among young adults, as well as those in their 30s and 50s, but declined in the over-60 group.

Unemployment rate Source: Statistics Korea (employment trends) 6

(%)

5

4

3

2 2004.1

2005.1

Original data

EB 8월호 내지.indd 23

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Seasonally adjusted rate

14. 8. 25. 오후 7:59

T h e G r e e n B o o k : Current Economic Trends 2010 2011 2012 2013 Annual Annual Annual Q4 Annual Q1 Q2 Q3 Q4 Jun Q1 Number of unemployed (thousands)

24

2014 Q2 May Jun

920

855

820

722

807 907 812 777 733 813 1,031 977 951 949

Unemployment growth (y-o-y, thousands)

31

-65

-35

-18

-13 -40 -29

- Male

-7

-48

-26

-13

- Female

38

-17

-9

-6

Unemployment rate (%)

3.7

3.4

3.2

2.8

3.1 3.6 3.1 3.0 2.8 3.1

4.0 3.7 3.6 3.5

(Seasonally adjusted)

3.7

3.4

3.2

3.0

3.1 3.2 3.1 3.1 3.0 3.1

3.5 3.7 3.7 3.6

-15 to 29

8.0

7.6

7.5

7.0

8.0 8.4 7.9 7.9 7.9 7.9

9.8 9.4 8.7 9.5

- 30 to 39

3.5

3.4

3.0

2.7

3.0 3.3 3.0 2.9 2.6 3.0

3.2 3.4 3.3 3.3

- 40 to 49

2.5

2.1

2.0

1.8

2.0 2.1 2.1 1.9 1.7 2.1

2.3 2.4 2.6 2.1

-6

-7 -20

-7 -33

-9

7

11

-9

125 165 154 136

11

-7

-7

40

50

42

-4

18

-2

84 103 105

95

62

- 50 to 59

2.5

2.1

2.1

1.8

1.9 2.3 1.8 1.8 1.5 1.7

2.2 2.3 2.4 2.3

- 60 or more

2.8

2.6

2.4

1.6

1.8 3.4 1.6 1.2 1.4 1.8

4.4 1.9 1.8 1.7

Source: Statistics Korea

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

The economically inactive population in June was down 141,000 from a year earlier to 15,670,000, while the labor force participation rate rose 0.6 percentage points to 63.1 percent.

The number of those economically inactive due to old age (up 113,000, y-o-y) and disabilities (up 18,000, y-o-y) increased, while those due to education (down 117,000, y-o-y), housework (down 64,000, y-o-y), and childcare (down 59,000, y-o-y) decreased.

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

(%)

64 63 62 61 60 59 58 2004.1

2005.1

Original data

EB 8월호 내지.indd 24

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Seasonally adjusted rate

14. 8. 25. 오후 7:59

2010 2011 2012 Annual Annual Annual Q4 Annual Q1

2013 Q2 Q3

Q4

Jun

Q1

2014 Q2 May Jun

Economically inactive population (millions) 15.84 15.95 16.08 16.26 16.22 16.83 15.91 15.98 16.17 15.81 16.40 15.69 15.69 15.67 Labor force participation rate (%)

61.0 61.1 61.3 61.1 61.5 59.9 62.2 62.1 61.7 625 61.3 63.1 63.0 63.1

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

61.0 61.1 61.3 61.1 61.5 61.2 61.3 61.6 61.7 614 62.6 62.2 62.0 62.1 143

112

- Childcare

-125

-5

- Housework

201

101

123 126

-3 143

- Education

12

-51

-12

77 118 147

88 -44 158 -76 -68 -32 -117

- Old age

80

-45

148 186

54 154

7

32

21

81 113 115

113

-56

182

-53 -125

-7 -106

44

12

21 -13 -197 -90 -94

-1

- Rest

128 244 -2

-3

39

141 336 242 1

0

10

78 -91 185 -433 -226 -162 -141 9 -14

31 -29 -57 -58

-59

36 -80 -112

1 -230 -127 -133

-64

-4

Source: Statistics Korea

25 The Green Book

9. Financial markets 9.1 Stock market The KOSPI in July rose 3.7 percent to 2,076 points from 2,002 points in the previous month. The KOSPI rose as positive economic data in major advanced economies boosted hopes for a global economic recovery, and also as foreign investment in Korea stocks surged due to high expectations for the new economic team’s economic policies.

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

EB 8월호 내지.indd 25

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

KOSDAQ

14. 8. 25. 오후 7:59

T h e G r e e n B o o k : Current Economic Trends (Closing rate)

Jun 2014

KOSPI Jul 2014

Change¹

Stock price index (points)

2,002.2

2,076.1

Market capitalization (trillion won)

1,197.2

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

Jun 2014

KOSDAQ Jul 2014

Change¹

73.9 (3.7%)

537.1

536.3

-0.8 (-0.1%)

1,242.4

45.2 (3.8%)

130.0

130.6

0.6 (0.5%)

3.9

4.0

0.1 (2.6%)

1.4

2.0

0.6 (42.9%)

35.3

35.9

0.6 (1.7%)

10.8

10.7

-0.1 (-0.9%)

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

9.2 Exchange rate 26

The dollar-won exchange rate in July rose 16.1 won to 1,027.9 won from 1,011.8 won at the end of June. The dollar-won exchange rate rose due to the strong dollar and expectations for the Bank of Korea’s rate cut and the government’s economic stimulus.

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

Despite the yen weakening as a result of diverging monetary policies between the US and Japan, the 100 yenwon exchange rate inched up from 999.0 won in June to 1,000.6 won in July, as the value of the won fell due to expectations for an interest rate cut.

(Closing rate)

2008 Dec

2009 Dec

2010 Dec

2011 Dec

2012 Dec

2013 Dec

Jun

2014 Jul

Change¹

Dollar-Won

1,259.5

1,164.5

1,134.8

1,151.8

1,070.6

1,055.4

1,011.8

1,027.9

2.7

100 Yen-Won

1,396.8

1,264.5

1,393.6

1,481.2

1,238.3

1,002.3

999.0

1,000.6

0.2

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

EB 8월호 내지.indd 26

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

100 Yen-Won

14. 8. 25. 오후 7:59

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

Interest rates Source: The Bank of Korea 10 9

(monthly average, yearly, %)

27 The Green Book

3-year Treasury bond yields fell from 2.68 percent in June to 2.52 percent in July. Treasury bond yields declined as the government’s announcement of expansionary macroeconomic policies was expected to boost the economy.

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

(Closing rate, %)

Call rate (1 day)

2009 Dec

2010 Dec

2011 Dec

2012 Dec

2013 Dec

Apr

2.01

2.51

3.29

2.77

2.52

2.50

May

2014 Jun

Jul

Change¹

2.49

2.49

2.49

-

CD (91 days)

2.88

2.80

3.55

2.89

2.66

2.65

2.65

2.65

2.65

-

Treasury bonds (3 yrs)

4.44

3.38

3.34

2.82

2.86

2.87

2.82

2.68

2.52

-16

Corporate bonds (3 yrs)

5.56

4.27

4.21

3.29

3.29

3.30

3.24

3.10

2.92

-18

Treasury bonds (5 yrs)

4.98

4.08

3.46

2.97

3.23

3.17

3.04

2.88

2.76

-12

1. Basis point, changes from the previous month

EB 8월호 내지.indd 27

14. 8. 25. 오후 7:59

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

9.4 Money supply & money market

M2 (monthly average) in May rose 6.0 percent from a year earlier. Money supply in the overseas sector rose due to a rising current account surplus, and private sector credit expanded, led by corporate loans.

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

28

2009 Annual

2010 Annual

2011 Annual

2012 Annual

2013 Annual

Mar

Apr

2014 May

M1²

16.3

11.8

6.6

3.8

9.5

10.1

9.1

10.0

523.1

M2

10.3

8.7

4.2

5.2

4.8

5.5

5.5

6.0

1,982.4

Lf ³

7.9

8.2

5.3

7.8

6.9

6.4

6.2

6.6

2,684.6

May¹

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

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

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

Total money supply Source: The Bank of Korea 40

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

30 20 10 0 -10 -20 -30 2004.1

2005.1

Reserve money

2006.1

2007.1

2008.1

2009.1

M1

2010.1

2011.1

2012.1

2013.1

2014.1

Lf

Bank deposits surged in June, led by instant access deposits (11.3 trillion won > 10.7 trillion won), due to large inflows of corporate settlement funds at the end of the first half.

Asset management company (AMC) deposits fell sharply, led by money market funds (MMF) (6.5 trillion won > -4.0 trillion won), as banks withdrew funds to raise their BIS ratios at the end of the first half.

EB 8월호 내지.indd 28

14. 8. 25. 오후 7:59

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

2009 Dec

2010 Dec

2011 Dec

2012 Dec

2013 Dec

Mar

Apr

2014 May

Jun

Jun¹

Bank deposits

54.8

36.9

58.9

37.0

41.0

-0.7

-3.3

13.9

9.3

1,207.5

AMC deposits

-27.6

-16.7

-16.6

18.8

17.7

-5.6

-3.1

6.0

-1.2

346.3

1. Balance at end June 2014, trillion won

Deposits in financial institutions Source: The Bank of Korea 30

20

29

10

-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

The Green Book

0

Korea’s current account (preliminary) in June posted a surplus of US $7.92 billion, staying in the black for 28 consecutive months.

The goods account surplus contracted from US $9.13 billion in May to US $6.65 billion in June, as exports declined while imports rose compared to the previous month.

Goods exports (US $ billion) 52.38 (May 2014) > 50.28 (Jun) Goods imports (US $ billion) 43.25 (May 2014) > 43.63 (Jun)

EB 8월호 내지.indd 29

14. 8. 25. 오후 7:59

ZZ

T h e G r e e n B o o k : Current Economic Trends Compared to the same period of the previous year, the goods account surplus expanded by US $1.35 billion despite a decrease in days worked, as exports rose 2.5 percent.

billion to US $0.58 billion mainly due to the travel and other businesses accounts.

Services account (US $ billion, May > June) -0.45 > -0.51 (manufacturing), 0.44 > 0.52 (transportation),

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

-0.44 > -0.48 (travel), 0.98 > 1.33 (construction), -0.55 >

13.3 (mobile phones), 11.0 (semiconductors), 9.8 (steel),

-0.59 (intellectual property rights), -0.39 > -0.78 (other

7.1 (vessels), -6.7 (automobiles)

businesses)

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

The primary income account surplus expanded from US $0.73 billion to US $2.23 billion due to an increase in dividend income, while the secondary income account deficit contracted from US $0.44 billion to US $0.38 billion.

15.0 (US), -0.5 (EU), -8.0 (ASEAN countries), -9.3 (Japan), -9.4 (China)

The services account deficit expanded from US $0.34

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

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

12

(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)

2013¹

2014¹ Apr May

Jun

15.07

7.12

7.92

Annual

Q1

Q2

Q3

Q4

Jun

Q1

Current account

79.88

10.46

20.80

23.78

24.84

6.50

9.30

- Goods balance

80.57

12.08

20.00

23.88

24.62

5.30

17.75

10.65

9.35

6.65

- Service balance

-7.93

-3.51

-0.41

-2.06

-1.94

-0.12

-3.62

-1.04

-0.34

-0.58

- Primary income balance

11.42

2.78

1.84

3.16

3.64

1.52

1.91

-1.62

0.73

2.23

- Secondary income balance

-4.18

-0.89

-0.62

-1.19

-1.48

-0.21

-0.96

-0.86

-0.44

-0.38

1. Preliminary Source: The Bank of Korea

EB 8월호 내지.indd 30

14. 8. 25. 오후 7:59

The capital and financial account (preliminary) in June posted a net outflow of US $9.84 billion.

Capital & financial account balance (US $ billion) -4.48 (Jan 2014) > -6.92 (Feb) > -5.78 (Mar) > -6.24 (Apr) > -8.13 (May) > -9.84 (Jun)

Net outflows of direct investment contracted from US $3.34 billion to US $2.06 billion, as foreign direct investment switched to a net inflow.

Net outflows of portfolio investment expanded from US $3.31 billion to US $4.22 billion as foreign

investors’ equity investment declined.

Net inflows of financial derivatives investment expanded from US $0.53 billion to US $0.69 billion, while net inflows of other investments contracted from US $3.95 billion to US $0.28 billion as financial institutions increased loans.

The current account in July is expected to maintain a surplus, helped by the surplus in the goods account, which resulted from a trade surplus (US $2.52 billion) .

31

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

The Green Book

15 (US $ billion) 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

EB 8월호 내지.indd 31

2009.1

2010.1

2011.1

Financial derivatives

2012.1

2013.1

2014.1

Capital & financial account

11.1 Prices Consumer prices rose 0.1 percent month-on-month in July, rebounding from a 0.5 percent fall in the previous month. Compared to the same month of the previous year, consumer prices rose 1.6 percent, down from 1.7 percent in June.

14. 8. 25. 오후 7:59

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

(%)

Jul

Aug

2013 Sep Oct

Nov

Dec

Jan

Feb

Mar

2014 Apr

May

Jun

Jul

Month-on-Month

0.2

0.4

0.2

-0.3

0.0

0.1

0.5

0.3

0.2

0.1

0.2

-0.1

0.1

Year-on-Year

1.6

1.5

1.0

0.9

1.2

1.1

1.1

1.0

1.3

1.5

1.7

1.7

1.6

Source: Statistics Korea

Consumer price inflation Source: Statistics Korea (consumer price trends) 7 6

(%)

5

32

4 3 2

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

1 0 -1 -2 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

Consumer price inflation (m-o-m)

2013.1

2014.1

Consumer price inflation (y-o-y)

Consumer prices rose month-on-month, led by personal services (up 0.4%).

percent, while petroleum product prices fell 0.2 percent.

Agricultural, livestock & fishery product prices rose 0.1 percent month-on-month (agricultural products up 0.0%, livestock products up 0.8%, fishery products down 1.0%). The prices of pork and Chinese cabbages rose due to seasonal demand, high temperatures and a drought, but the prices of other items stabilized.

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

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

ham (9.4), canned meat (6.1), car care products (-15.8), diesel (-0.5)

Personal service prices rose 0.4 percent month-onmonth, as travel service prices rose due to summer holidays. Dining out expenses rose 0.2 percent, and personal service prices excluding dining out costs were up 0.6 percent.

Chinese cabbages (44.1), spinaches (28.0), pork (2.1), onions (-10.5), watermelons (-5.3)

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

Manufactured product prices were unchanged from the previous month. Processed food prices rose 0.4

expenses (13.5), amusement park admission fees (7.5),

overseas group tour expenses (8.0), domestic group tour

EB 8월호 내지.indd 32

international air fares (5.4)

14. 8. 25. 오후 7:59

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

2014

Agricultural, livestock & fishery products

Manufactured products

Housing rents

Public services

Personal services

Public utilities

33 previous month, fresh food prices fell 0.2 percent.

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

-9.2 (May) > -7.7 (Jun) > -8.3 (Jul)

Fresh food price increases (y-o-y, %) -12.9 (Jan 2014) > -12.4 (Feb) > -11.3 (Mar) > -12.0 (Apr) >

0.6 (Jan 2014) > 0.4 (Feb) > 0.8 (Mar) > 1.0 (Apr) > 1.4 (May) > 1.4 (Jun) > 1.4 (Jul)

Fresh food prices declined 8.3 percent year-on-year, led by vegetables (down 15.2%) . Compared to the

Core consumer prices, which exclude oil and agricultural products and show long-term price trends, rose 2.2 percent year-on-year and 0.2 percent month-on-month.

The Green Book

Consumer prices for basic necessities rose 1.4 percent year-on-year and remained unchanged 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

EB 8월호 내지.indd 33

2007.1

2008.1

2009.1

Core inflation

2010.1

2011.1

2012.1

2013.1

2014.1

Producer price inflation

14. 8. 25. 오후 7:59

T h e G r e e n B o o k : Current Economic Trends Core inflation and prices for basic necessities

(y-o-y, %)

2013 2014 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Consumer prices excluding oil and agricultural products 1.7 1.5 1.7 1.8 2.0 1.9 1.7 1.7 2.1 2.3 2.2 2.1

2.2

Consumer prices excluding food and energy

1.5 1.3 1.5 1.6 1.7 1.6 1.5 1.4 1.7 1.9 1.8 1.7

1.9

Consumer prices for basic necessities

1.1 1.1 0.2 0.0 0.5 0.5 0.6 0.4 0.8 1.0 1.4 1.4

1.4

Source: Statistics Korea

The expected annual inflation fell 0.1 percentage points to 2.7 percent, while import prices fell 8.8 percent year-on-year.

Expected inflation (%, over the next 12 months)

34

2.9 (Nov 2013) > 2.9 (Dec) > 2.9 (Jan 2014) > 2.9 (Feb) > 2.8 (Mar) > 2.9 (Apr) > 2.8 (May) > 2.8 (Jun) > 2.7 (Jul) Import price increases (y-o-y, %, won base) -4.9 (Nov 2013) > -3.5 (Dec) > -3.0 (Jan 2014) > -4.8 (Feb) > -4.5 (Mar) > -7.0 (Apr) > -6.8 (May) > -8.8 (Jun)

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

11.2 International oil and commodity prices

International oil prices declined in July as the risk premium associated with tensions in Iraq fell.

Dubai crude prices surged in mid-June due to the Iraq crisis, but have stabilized since early July as tensions eased.

Dubai crude ($/barrel) 109.2 (Jul 1) > 108.0 (Jul 4) > 106.0 (Jul 11) > 105.7 (Jul 18) > 105.2 (Jul 25) > 105.2 (Jul 31)

(US $/barrel, period average)

2011 2012 Annual Annual Annual Aug

2013 Sep Oct

Nov

Dec

Jan

Feb

Mar

2014 Apr May

Jun

Jul

Dubai crude

105.9

109.0

105.3 107.1 107.9 105.6 105.5 107.5 104.0 105.0 104.4 104.6 105.6 107.9 106.1

Brent crude

111.0

111.7

108.7 110.8 111.6 109.3 108.0 110.7 107.7 108.9 107.7 107.8 109.4 111.8 107.4

95.1

93.8

WTI crude

98.0 106.7 106.2 100.5

94.0

97.9

94.9 100.7 100.5 102.0 101.8 105.2 102.6

Source: Korea PDS

EB 8월호 내지.indd 34

14. 8. 25. 오후 7:59

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

2014.1

Dubai crude

WTI

35

Gasoline prices (won/liter) 1,859.2 (1st week Jul) > 1,858.7 (2nd week) > 1,856.9 (3rd week) > 1,855.3 (4th week) > 1,853.4 (5th week) (Won/liter, period average)

2011 2012 Annual Annual Annual Aug

2013 Sep Oct

Nov

Dec

Jan

Feb

Mar

2014 Apr

May

Jun

Jul

The Green Book

Although international oil prices rose as a result of the Iraq crisis, domestic oil product prices continued to fall, as the strong won was reflected with a time lag.

Gasoline prices 1,929.3 1,985.8 1,924.5 1,947.7 1,934.6 1,907.3 1,880.0 1,881.1 1,886.4 1,880.7 1,880.8 1,875.9 1,869.5 1,861.7 1,856.7 Diesel prices 1,745.7 1,806.3 1,729.6 1,743.6 1,734.3 1,711.8 1,692.9 1,699.1 1,705.1 1,698.5 1,696.0 1,688.9 1,680.9 1,670.8 1,661.8 Source: Korea National Oil Corporation

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

($/B)

(thousand won/B)

160

140

140

120

120

100

100

80

80

60

60

40

40

20

20

2004.1

2005.1

2006.1

2007.1

Dubai crude (import prices, won, left)

EB 8월호 내지.indd 35

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Dubai international prices (dollar, right)

14. 8. 25. 오후 7:59

T h e G r e e n B o o k : Current Economic Trends International grain prices declined due to increased production in major production areas and optimistic estimates as to global production and inventories.

International grain price increases in July (m-o-m, %) corn (-15.0), soybeans (-14.8), wheat (-8.4)

Nonferrous metal prices rose despite a slowdown in production*, as demand was expected to rise following economic recovery in emerging markets.

Nonferrous metal price increases in July (m-o-m, %) zinc (8.7), aluminum (6.1), copper (4.4), lead (4.1), nickel (2.6), tin (-1.7) * Zinc: Major mines in Australia are due to close, and production growth in China slowed.

Aluminum: Major smelting factories in the US and Russia cut production.

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

Reuters index*

(Period average)

2011 2012 Annual Annual Annual 3,062

3,006

2,774

Aug

2013 Sep Oct

2,662

2,630 2,655 2,623 2,642 2,574 2,586 2,641 2,650 2,608 2,569

Nov

Dec

Jan

Feb

Mar

2014 Apr

May

Jun

Jul 2,548

* 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.

510 4000

470 430

3000

390 350

2000

310 270

1000

230 190 150

0 2004.1

CRB (left)

EB 8월호 내지.indd 36

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Reuters index (right)

14. 8. 25. 오후 7:59

12. Real estate market 12.1 Housing market

Seoul metropolitan area rose 0.1 percent. Apartment prices in the five metropolitan cities and the eight provinces were up 0.1 percent.

Nationwide apartment sales prices in July remained unchanged from the previous month.

Apartment sales price increase in five metropolitan cities (m-o-m, %)

Apartment sales prices were unchanged in the Seoul metropolitan area, and prices in areas excluding the

Busan (0.1), Daegu (0.2), Gwangju (0.1), Daejeon (0.0), Ulsan (0.4)

Nationwide apartment sales prices

(Percentage change from previous period)

2010 2011 2012 2013 Annual Annual Annual Annual Dec Annual

Feb

2014 Mar Apr

May

Jun

Jul

0.0

0.0

1.9

6.9

0.0

0.3

0.2

0.8

0.2

0.2

0.2

0.1

0.0

Seoul metropolitan area

-1.7

0.5

-3.0

-1.1

0.1

0.6

0.2

0.2

0.3

0.0

-0.1

0.0

0.0

Seoul

-1.2

0.3

-2.9

-1.4

0.0

0.5

0.2

0.2

0.2

0.0

-0.1

-0.1

0.0

Gangnam¹

-1.0

0.3

-3.5

-1.1

-0.1

0.4

0.2

0.2

0.2

-0.1

-0.1

-0.1

0.0

Gangbuk² Areas excluding the Seoul metropolitan area

-1.4

0.3

-2.3

-1.7

0.1

0.6

0.2

0.2

0.2

0.1

0.0

0.0

-0.1

6.4

15.1

3.1

1.7

0.3

1.0

0.3

0.2

0.2

0.1

0.1

0.1

0.1

7

2012.1

The Green Book

Nationwide

Jan

37

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

EB 8월호 내지.indd 37

7

2010.1

7

2011.1

Seoul metropolitan area

7

2013.1

7

2014.1

7

Areas excluding Seoul metropolitan area

14. 8. 25. 오후 7:59

T h e G r e e n B o o k : Current Economic Trends Nationwide apartment rental prices in July rose 0.1 percent month-on-month.

Rental prices rose 0.2 percent in the Seoul metropolitan area, and were up 0.1 percent in regions excluding the Seoul metropolitan area.

Apartment rental price increase in major districts in Seoul (m-o-m, %) Gangnam (0.2), Seocho (0.4), Songpa (0.2), Yangcheon (-0.1), Nowon (0.3)

Nationwide apartment rental prices

(Percentage change from previous period)

2010 2011 2012 2013 Annual Annual Annual Annual Dec Annual

38

Jan

Feb

2014 Mar Apr

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

May

Jun

Jul

Nationwide

7.1

12.3

3.5

4.7

0.4

2.0

0.6

0.5

0.5

0.1

0.1

0.1

0.1

Seoul metropolitan area

6.3

11.0

2.1

6.2

0.6

2.8

0.8

0.8

0.7

0.1

0.0

0.1

0.2

Seoul

6.4

10.8

2.1

6.6

0.5

2.2

0.8

0.6

0.5

0.1

0.0

0.0

0.1

Gangnam¹

7.6

11.1

2.4

6.7

0.5

1.9

0.9

0.7

0.4

-0.1

-0.1

0.0

0.1

Gangbuk²

5.1

10.6

1.8

6.4

0.5

2.4

0.7

0.6

0.6

0.2

0.1

0.1

0.1

Areas excluding the Seoul metropolitan area

9.2

14.5

4.6

3.3

0.3

1.2

0.4

0.2

0.2

0.2

0.1

0.1

0.1

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

7

Nationwide

EB 8월호 내지.indd 38

2010.1

7

2001.1

7

2012.1

Seoul metropolitan area

7

2013.1

7

2014.1

7

Areas excluding Seoul metropolitan area

14. 8. 25. 오후 7:59

Apartment sales transactions in June decreased 6.0 percent from 77,754 transactions in the previous month to 73,108 transactions, and were down 43.7 percent from a year earlier (129,907) , when transactions surged before the expiration of the property acquisition tax cut.

Apartment sales transactions

(Monthly average, thousands)

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

73

67

82

61

130

40

47

57

90

85

93

59

79

89

93

78

73

Source: Ministry of Land, Infrastructure and Transport

Monthly apartment transaction volume Source: Ministry of Land, Infrastructure and Transport 160 (thousands) 140

39

120 100

60 40 20 0 2009.1

7

2010.1

7

Nationwide

2011.1

7

2012.1

Seoul metropolitan area

7

2013.1

7

2014.1

The Green Book

80

Areas excluding Seoul metropolitan area

12.2 Land market Nationwide land prices in June rose 0.15 percent month-on-month.

Land price growth decelerated in the Seoul metropolitan area (up 0.13%), which includes Seoul (up 0.18%) and Incheon (up 0.09%).

Land price increases in Seoul metropolitan area (m-o-m, %) 0.16 (Nov 2013) > 0.15 (Dec) > 0.11 (Jan 2014) > 0.14 (Feb) > 0.22 (Mar) > 0.18 (Apr) > 0.15 (May) > 0.13 (Jun)

Land price growth accelerated in areas excluding the Seoul metropolitan area (up 0.18%), led by Busan (up 0.20%), Daegu (up 0.27%) and North Geongsang Province (up 0.22%).

Land price increases in areas excluding Seoul metropolitan area (m-o-m, %) 0.15 (Nov 2013) > 0.16 (Dec) > 0.10 (Jan 2014) > 0.14 (Feb) > 0.17 (Mar) > 0.18 (Apr) > 0.15 (May) > 0.18 (Jun)

EB 8월호 내지.indd 39

14. 8. 25. 오후 7:59

T h e G r e e n B o o k : Current Economic Trends Land prices by region

(Percentage change from previous period)

2008 2009 2010 2011 2012 Annual Annual Annual Annual Annual Annual Q1

2013 Q2

Q3

Q4 Annual

2014 Q2 Apr

Q1

May

Jun

Nationwide

-0.31 0.96 1.05 1.17 0.87 1.14 0.21 0.37 0.10 0.46 0.93 0.45 0.48 0.18 0.15 0.15

Seoul

-1.00 1.40 0.53 0.97 0.33 1.21 0.10 0.41 0.08 0.61 1.29 0.69 0.59 0.23 0.18 0.18

Gyeonggi

-0.26 1.22 1.49 1.47 0.97 0.91 0.17 0.33 0.07 0.34 0.63 0.26 0.37 0.14 0.13 0.09

Incheon

1.37 1.99 1.43 0.66 0.36 0.87 0.21 0.37 0.07 0.23 0.63 0.37 0.25 0.09 0.07 0.09

Source: Korea Appraisal Board

Land prices by region Source: Korea Appraisal Board 15

40

(%)

12 9 6

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

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

1995

1996

1997

1998

1999

National average

2000

2001

2002

2003

2004

2005

2006

Metropolitan city

2007

2008

2009

2010

2011 2012

City

2013

County

Land and consumer prices since 1970s Sources: Korea Appraisal Board (land prices), Statistics Korea (consumer prices) 60

(y-o-y, %)

50 40 30 20 10 0 -10 -20 1974

1977

Land price inflation

EB 8월호 내지.indd 40

1980

1983

1986

1989

1992

1995

1998

2001

2004

2007

2010

2013

Consumer price inflation

14. 8. 25. 오후 7:59

There were 199,000 land transactions in June, down 3.7 percent from the previous month and down 18.8 percent from 246,000 a year earlier.

Land transactions decreased nationwide, including Seoul (down 2.4%, m-o-m) , Gyeonggi Province (down 7.0%, m-o-m), Daejeon (down 14.5%, m-o-m) and Ulsan (down 7.3%, m-o-m).

Vacant land transactions, which accounted for 39.5 percent of the total land transactions, fell 8.6 percent month-on-month to 79,000 but rose 8.4 percent from 73,000 a year earlier.

Land transactions 2008

(Land lots, thousands)

2009

2010

2011

2012

2013

2014

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

203

187

208

170

187

26

22

16

18

13

17

169 153 144 208 201 236 183 205 227 233 207 199 13

13

14

20

19

22

17

20

24

22

18

18

Gyeonggi

45

46

41

43

33

37

33

29

30

44

41

50

37

42

47

49

42

39

Incheon

13

10

8

10

8

8

6

6

7

10

9

9

7

10

10

11

9

9

1. Monthly average Source: Korea Land & Housing Corporation

The Green Book

208

Seoul

41

Land transaction volume Source: Korea Appraisal Board 600,000

(thousand m²)

500,000

400,000

300,000

200,000

100,000

0

2004.1

2005.1

2006.1

Seoul metropolitan area

EB 8월호 내지.indd 41

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Areas excluding Seoul metropolitan area

14. 8. 25. 오후 7:59

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

13. Composite indices of business cycle indicators Industrial output in June rose 2.1 percent month-on-month and 1.3 percent year-on-year. Mining & manufacturing (up 2.9%, m-o-m) , construction (up 2.7%, m-o-m) , services (up 1.6%, m-o-m) and public administration (up 1.6%, m-o-m) all rose.

Index of all industry production Source: Statistics Korea (industrial activity trends)

42

20

(%)

15 10

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

5 0 -5 -10 -15 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

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

2012.1

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

2014.1

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

2013 Index of all industry production (m-o-m, %) (y-o-y, %)

2013.1

Nov

Dec

Jan

Feb

Mar

2014 Apr¹

May¹

Jun¹

-0.3 1.4

0.4 2.0

1.1 0.9

-1.5 1.4

0.7 2.7

-0.6 1.4

-1.2 -0.7

2.1 1.3

0.3

0.6

0.6

0.3

0.4

0.1

0.0

0.3

100.2 0.0

100.4 0.2

100.7 0.3

100.6 -0.1

100.7 0.1

100.5 -0.2

100.1 -0.4

100.0 -0.1

0.8

0.7

0.5

0.3

0.2

0.5

0.3

0.5

101.1 0.3

101.5 0.4

101.6 0.1

101.5 -0.1

101.3 -0.2

101.4 0.1

101.3 -0.1

101.5 0.2

1. Preliminary

EB 8월호 내지.indd 42

14. 8. 25. 오후 7:59

The cyclical indicator of the coincident composite index fell 0.1 points in June. Four components of the coincident composite index rose, while two fell.

Components of the coincident composite index in June (m-o-m) service output (0.4%), value of construction completed (0.7%), retail sales (0.1%), domestic shipments (0.2%), mining & manufacturing production (0.0%), imports (-0.8%), nonfarm payroll employment (-0.1%)

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

(points)

43

100

2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

The cyclical indicator of the leading composite index rose 0.2 points. Five components of the leading composite index declined, while four rose.

The Green Book

90

Components of the leading composite index in June (m-o-m) domestic shipments of machinery (0.9%), value of construction orders received (8.8%), international commodity prices (1.0%), KOSPI (0.7%), indicator of inventory cycle (-2.3%p), consumer expectations index (-0.6p), ratio of export to import prices (-0.1%), ratio of job openings to job seekers (-0.9%p), spreads between long & short term interest rates (-0.03%p)

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

(points)

100

90 2004.1

EB 8월호 내지.indd 43

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

14. 8. 25. 오후 7:59

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

PO LIC Y ISS UE S 2014 Tax Revision Bill Focuses on Stimulating the Economy Measures to Stimulate Investment: Fostering Promising Service Industries

EB 8월호 내지.indd 44

14. 8. 25. 오후 7:59

2014 Tax Revision Bill Focuses on Stimulating the Economy 2014 Tax Revision Bill The government announced the 2014 Tax Revision Proposal on August 6. The proposal has 4 main focuses: 1) Stimulating the economy: boost household income, increase investment and consumption, create jobs, support small- and medium-sized enterprises (SMEs) and startups, provide business inheritance support, and boost corporate competitiveness 2) Strengthening welfare programs: support low-income groups, support the elderly, housing support, and improve quality of life 3) Fair taxation: revise tax incentives, increase transparency, regulate overseas tax evasion, and broaden the tax base 4) A taxpayer-friendly system of taxation: strengthen taxpayer rights, and relieve administrative burden on taxpayers

1. Stimulating the Economy 1) Introduce 3 tax packages to boost household income

Policy Issues

Revisions

45

- Tax package to boost household income: businesses that increase employee wages will receive a 10% tax credit (5% for large corporations) on the portion that was increased* in order to increase employee wages and boost household income * Wage growth exceeding average growth for the past 3 years

- Tax package to boost dividend income: lower the withholding tax rate on dividend income earned on stocks* held in listed corporations (14% > 9%) and allow financial income, which had been taxed at the general rate, to be taxed separately (at a 25% rate) * Listed stocks whose dividend payouts are both more than 120% of the market average of the dividend payout ratio + dividend yield and more than a 10% increase in total dividend payout Listed stocks whose dividend payouts are both more than 50% of the market average of the dividend payout ratio + dividend yield and more than a 30% increase in total dividend payout

- Tax package to strengthen the link between corporate earnings and household income: businesses must spend a certain amount on investments, wage increases and dividend payments, or be subject to a tax (10%) • Applicable to businesses with an excess of 50 billion won in equity capital and large conglomerates where mutual shareholding between affiliates is banned • Businesses will be able to choose between either A or B methods for this tax and must adhere to these methods for 3 years · A: [income × base rate α(60-80%) – (investment + employee wage increase + dividends, and etc.*)] × 10% tax rate

· B: [income × base rate β(20-40%) – (employee wage increase + dividends, and etc.*)] × 10% tax rate

* Win-win Corporation Fund contributions

EB 8월호 내지.indd 45

14. 8. 25. 오후 7:59

Policy Issues 2) Increase investment and consumption and create jobs

- There are 2 deduction rates, the base deduction rate and the additional deduction rate. The base deduction rate is applied to investment and ranges from 1-4% depending on the size of the company and area where investment occurs. The additional deduction rate is applied to job-creating investment (3% of investment, with the limit rising 10-20 million won per job created) · Lower the base deduction rate by 1%p and increase the additional deduction rate by 1%p · Raise the additional deduction by 1%p, respectively, for businesses that invest in provinces outside of the Seoul metropolitan area and service industry businesses that make jobcreating investments

- Allow for SMEs and service sector businesses to use the accelerated depreciation accounting system for facilities investment and intellectual property rights - Extend income tax credits for credit card use by 2 years (until Dec 31, 2016) - Temporarily increase the tax deduction for check card use and cash receipts from 30% to 40% for any amount over 50% of the taxpayer’s total check card use and cash receipts for 2013 (for H2 2014 and H1 2015) - The earned income tax reduction for young adults who return to SMEs after finishing their mandatory military service will be extended from 3 years to 5 years - SMEs that reemploy women who temporarily left the workforce (due to motherhood, for example), will receive a 10% tax credit for payroll costs for 2 years - The customized education tax credit for universities will be expanded to meister high schools, specialized vocational schools, and Korean-style vocational schools - Extend the special tax rate for foreign worker tax (separately taxed at 17%) for 2 years in order to attract foreign-invested enterprises, and make this rate permanent for regional headquarters of global corporations and R&D centers based in Korea

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

3) SME and venture business support

EB 8월호 내지.indd 46

- Businesses will qualify as SMEs according to total sales. Sales by industry to qualify as an SME: 40 billion won for food services, 80 billion won for transportation, 100 billion won for wholesale and retail, 150 billion won for manufacturing - Businesses will lose SME designation if both total assets exceed 500 billion won and total sales exceed 100 billion won - The income tax deduction will be increased from 50 to 100% for the first 15 million won of investment in venture businesses (until Dec 31, 2017) - Newly issued stock options will be made tax deductible in order to help venture businesses attract high-level talent - Extend tax exemptions (nontaxable profits on stock sales, for example) for venture investment firms and venture investment cooperatives for 3 years (until Dec 31, 2017) - Extend tax reductions for SMEs. This extension includes a 3-year extension for both the SME special tax deduction and the exemption on the surcharge for the largest shareholders in SMEs, respectively - Increase reduction on tariffs for imported factory automation machinery (30% > 50%, applicable until Dec 31, 2015) - Temporarily raise the base ceiling on the tax deductible entertainment expenses

14. 8. 25. 오후 8:00

for SMEs (18 million won > 24 million won) for 2 years (until Dec 31, 2016) - Raise the tax deduction on investment in facilities that improve productivity for leading medium-sized enterprises (3% > 5%) - Raise the tax credit for outsourced distribution costs for SMEs in order to support shipping SMEs (3% > 5%) - Reduce the customs collateral fee to ease collateral burdens for SMEs (60% > 40% of goods price)

5) Stimulate local economies

- The starting point that businesses may be eligible for a reduction on their tax liabilities due to moving operations to provinces outside the Seoul metropolitan area (for 5 to 10 years) will be changed from the date the business moves to the date that the business earned its very first earnings

6) Boost corporate competitiveness

- Postpone capital gains tax on stock exchanges that result in one becoming a controlling shareholder until after the stocks are sold - Expand eligibility for postponing corporate tax on approved mergers and corporate breakups - Exempt private equity funds from the securities transaction tax for the stock rights they acquire when they directly invest in a business to improve its financial soundness - Increase number of businesses applicable for the new growth engine R&D tax credit in the cultural contents sector - Extend the cultural entertainment expense tax deduction by 3 years (until Dec 31, 2017) - Apply low value-added tax (VAT) rate to hospitals and other medical institutions

EB 8월호 내지.indd 47

47 Policy Issues

- Ease requirements and increase the number of businesses eligible for 4) Provide business inheritance support and the business inheritance tax credit for SMEs and leading medium-sized enterprises startup support - Increase the annual sales limit (less than 300 billion won > less than 500 billion won) for strong performing SMEs to qualify for the business inheritance tax credit - Reduce the number of years the business has to be in operation to qualify for the business inheritance tax credit (more than 10 years > more than 5 years) - Ease stockholding conditions for majority shareholders (including special parties, shares must be 50% or higher [30% for a listed company] > individual shareholding worth 25% or more) - Abolish requirement for working at the company for 2 or more years and the requirement for having only one sole inheritor for family businesses - Reduce the follow-up management requirement (10 years > 7 years), ease follow-up management responsibilities - Raise the limit on the special low tax rate for gifting shares (3 billion won > 10 billion won) - Allow gift tax to be paid in installments over 5 years in the event it must be paid on gifting businesses to family members or providing startup funding

14. 8. 25. 오후 8:00

Policy Issues for providing clinical trial services to overseas pharmaceutical companies that are paid in foreign currencies - Exempt internet newspapers from the subscription VAT - Extend period for being eligible for the tonnage duty by 5 years (until Dec 31, 2019) - Expand eligibility to be taxed at the tonnage duty rate to the international cruise industry - Extend the individual consumption tax reduction on electric automobile purchases by 3 years (Dec 31, 2017)

2. Strengthen welfare programs 1) Support low-and middle-income groups

48 E c o n o m i c B u l le t i n EB 8월호 내지.indd 48

- Introduce the Tax-Exempt Savings Account for the Elderly and Disabled, in which up to 50 million won can be deposited - Raise the limit on the income tax deduction for the New Home Purchase Savings Account from 1.2 million won to 2.4 million won for earners with annual income of up to 70 million won - Expand the tax incentive for the Asset Building Installment Savings Account by shortening its maturity requirement (7 years > 3 years) - Extend the tax incentive for the Asset Building Savings Account for Farmers and Fishermen by 3 years (until Dec 31, 2017) - Extend the VAT exemption for diapers and baby formula by 3 years (until Dec 31, 2017) to ease the childcare burden - Apply the low VAT rate for disability goods to waterproof mattresses - Extend VAT reduction for revenues earned from credit card purchases by 2 years (until Dec 31, 2016) - Economy-class express bus fares to be exempt from the VAT (until Mar 31, 2018) - Extend the gasoline tax return for small vehicles by 2 years (until Dec 31, 2016) - Extend the VAT reduction for agricultural and fishery equipment and the VAT exemption for agricultural and fishery equipment imports by 3 years (until Dec 31, 2017) - Extend the transfer tax exemption for livestock farms by 3 years (until Dec 31, 2017) if the seller has engaged in livestock farming there for more than 8 years - Extend the gift tax exemption for agricultural farms by 3 years (until Dec 31, 2017) if the property continues to be used for farming by the inheritor of the farm - Extend the special low capital gains tax rate for homes in rural areas by 3 years (until Dec 31, 2017) - Expand the capital gains tax reduction for agricultural farms given to farmers that live from within 20 kilometers to within 30 kilometers of the farm - Increase personal and dependency exemptions for inheritance and gift taxes in order for the sum of the exemptions to exceed the unified tax deduction (500 million won) - Tax exemption for inherited estates worth up to 500 million won to be given to the inherited who had lived with their deceased parents

14. 8. 25. 오후 8:00

Personal and dependency tax exemption Existing ceilings

Inheritance tax

Gift tax

Revised ceilings

Children

30 million won

50 million won

Elderly

30 million won (60 years or older)

50 million won (65 years or older)

Disabled & minors

5 million won/year × remaining years¹

10 million won/year × remaining years¹

Children & grandchildren

30 million won

50 million won

Family members other than children & grandchildren

5 million won

10 million won

Up to 20% and/or up to 200 million won

Up to 20% and/or up to 300 million won

Tax exemption for financial assets

1. Until 78 years old for disabled males, 84 years old for disabled females, 19 years old for minors

2) Support the elderly

49 Policy Issues

3) Housing support

- Increase the tax deduction ceiling on pension insurance payments to 3 million won per year - Taxes owed for receiving a monthly pension instead of lump sum severance pay will be reduced by 30% compared with taxes owed for receiving lump sum severance pay - Revise the post-retirement income tax deduction from the fixed rate of 40% to 15-100% according to the income level - Apply the retirement income tax rate to small business owner pension fund income - Donors will have the option of donating their tax rebates to charities should they so request - Raise the interest payment tax deduction ceiling for the over 15-year fixed interest rate mortgages with installment payments without grace periods from 15 million won to 18 million won - Introduce an interest payment tax deduction for over 10-year fixed interest rate mortgages with installment payments without grace periods of up to 3 million won - Extend independent taxation for rental housing development funds by 2 years and set a ceiling on tax rates: a 9% tax rate for up to 5 million won and 14% for 5 million won to up to 200 million won - Tax rebates will be given to private rental housing that is converted into semi-public housing for 50% of the time privately rented for up to 5 years

4) Improve quality of life - Extend tax deduction for safety-related facilities investment by 3 years, raise deduction rates from 3% to 5-7%, and include investment in chemicals treatment facilities and firefighting facilities in the tax deduction - Give the Large Enterprise-SME Cooperation Fund tax credits for investments in SME facilities that will improve safety - VAT deductions will be given to automated security service company car purchases that will be used for onsite emergency visits - Expand the tax deduction for environment preserving facilities investment to soil preserving facilities investment

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Policy Issues - Raise the tax deduction ceiling on provincial medical service enterprise savings reserved for future projects from 80% of earnings to 100% - Expand tax incentives for investments in facilities that improve employee welfare to include medical service facilities located onsite - Benefits for families of fallen veterans and worker compensation death benefits will be tax-exempt

3. Fair Taxation 1) Revise tax incentives

- Lift the corporate tax deduction for dividend income taxes paid by overseas secondary subsidiaries, and require domestic parent companies to hold more than 25% of shares in overseas primary subsidiaries to receive the tax deduction, an increase from 10% - Extend the special fixed rate corporate tax for cooperatives by 3 years, which imposes the same rate of 9% on each cooperative, with an exception of cooperatives earning more than 1 billion won a year to which a rate of 9-17% will be applied for the amount exceeding 1 billion won - The VAT deduction for used car sales will be phased out, and the new VAT will be taxed at the same rate as the VAT deduction for recycling (5/105) - Extend the VAT exemption for housing maintenance services for large houses (larger than 135m²) by 3 years, but with an exception to large houses located in the Seoul metropolitan area - Facilities investment tax credits will be offered for museums, dormitories, theaters and rental homes, and construction that takes advantage of the tax credit will not be allowed to be sold or used for any reason other than the original purposes for five years, an increase from 2-3 years - End independent taxation for SOC bonds, the tax deduction given to losses from overseas fund investment, and the sales tax exemption for stock transactions by special purpose companies for recapitalization - Put a cap on independent taxation for overseas resources development funds at 200 million won - Give a 50% income tax reduction to foreign engineers for 2 years

2) Increase transparency

- The issuance of electronic receipts and cash receipts will be made mandatory gradually over time - Tightly regulate the distribution of duty free kerosene: specification of the use of the duty free oil will be required to be submitted - Increase the number of withholding VATs for material costs and apply withholding VATs to art purchases - Raise rewards for reporting accounts opened with fraudulent names, punish those who lend their names to tax avoiders, extend the statute of limitations for prosecuting tax frauds, adopt tougher regulations concerning delinquent tax collection

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3) Regulate overseas tax evasion

- Strengthen overseas tax evasion regulations by requiring Koreans to pay income taxes after residing in the country for only 183 days (used to be over 1 year) - Lift the tax exemption on overseas asset gifts and introduce a tax deduction on taxes paid overseas - Promote the reporting of overseas accounts: impose fines on unreported accounts and reduce fines for late reporting and revised reporting - Increase the statute of limitations on tax evasion which involves international trade, and increase penalty tax for tax frauds - Reduce tax deductible interest payment costs for multinational corporations from debt amounting to 3 folds of capital to 2 folds

4) Broaden the tax base - Introduce an electronic service VAT on services (applications and mp3s, for example), which are purchased at overseas online market places, and impose a VAT on financial & insurance services (starting on Jul 1, 2015)

51

4. A taxpayer- friendly system of taxation - Pass legislation for a public tax representative system - Extend the time limit for requesting tax returns from 3 to 5 years, accept more reasons for extending deadlines, extend late application period for the earned income tax credit (EITC) to 6 months after the deadline - Reduce capital gains tax rates in the case land sales are required for the completion of government projects - Introduce a system that re-evaluates tariff item classification and taxation within 30 days

2) Relieve administrative burden on taxpayers

- Diversify payment options, including credit cards, and lift a 10 million won limit on credit cards for paying the national tax and tariffs - Simplify reporting and payment processes for business owners - Ease inconveniences that arise when tax incentives are given to foreign companies investing in Korea: offer equivalent corporate tax incentives (100% exemption) when investment is extended by a year (maximum 1 year) under the Foreign Investment Promotion Act (corporate taxes are exempt for 5 years and 50% following 2 years)

3) Other system improvements

- To reform the housing market, the capital gains tax on land used for non-business purposes (10% additional rate) will be postponed for 1 year until the end of 2015 - Increase duty free allowances (US $400-US $600)

Policy Issues

1) Strengthen taxpayer rights

· Lower the taxes for voluntarily reported purchases made overseas (reduce up to 30% of taxes owed or 150,000 won or less) but impose additional taxes on purchases not reported (30% > 40%)

- Apply different penalty rates according to the taxpayers’ level of compliance · Lower penalty taxes for corporations which submit their payroll statement within 3 months

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Policy Issues after the stated deadlines, reduce penalty tariffs on non-filed items from 2% to 1% and impose different penalty rates on incorrect or late tariff filing according to the date of refiling

- Extend the period that late e-filers may still receive the penalty rate reduction - Lower penalty rates from 10.95% to 2.9% per year when corporate tax filing fails to meet the stated deadline due to a delay in external audits

Expected revenue The government expects to earn a total of 568 billion won of tax revenue due to these revisions.

Tax revenue increase

52

Total Income tax Corporate tax VAT Others

Total 568 76 306 217 -31

2015 55 9 -5 72 -21

2016 51 -17 6 72 -10

2017 109 43 11 55 -

2018 58 40 18 -

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

Tax payer burden increase Working class/SMEs -489

(y-o-y, billion won) 2019 and beyond 295 1 294 -

(billion won) High income earners/large conglomerates +968

Others +89

Total +568

Measures to Stimulate Investment: Fostering Promising Service Industries At the 6th Trade Investment Promotion Meeting chaired by President Park Geun-hye, the government announced ‘Measures to Stimulate Investment: Fostering Promising Service Industries,’ a key initiative of the Three-year Plan for Economic Innovation.

The government formed the ‘One-Stop Promising Service Industry Task Force’ following President Park’s New Year address on January 16. The task force is led by the first Vice Minister of Strategy and Finance and vice ministers from each government ministry are in charge of one of the promising service sectors: healthcare, education, tourism, finance, software, contents, and distribution, respectively. The task force has developed 135 initiatives to foster these 7 promising service industries.

The government has selected key performance goals for each industry in order to strengthen government policies and yield tangible results. The government will commit to achieving these goals by 2017.

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Goal for each of the 7 promising service sector industries Industry Health / medical care Tourism and contents Education Finance Logistics Software

Goal Increase number of foreign patients Increase number of foreign tourists Attract world-class foreign universities Raise the value-added percentage of the financial sector Increase logistics sector sales Export software

2013

2014

210,000 patients

500,000 patients

12.18 million tourists

20 million tourists

-

Establish 3 first-class university campuses in Korea

6.7% (2012)

8.0%

92 trillion won US $4 billion

135 trillion won US $7 billion

The government has formulated 3 strategies in order to foster these 7 service industries and ensure that government policies collectively promote the service industry rather than simply favoring one industry over another.

53 Policy Issues

1) Create new markets: transform the zero-sum dynamic found in domestic markets into a positive-sum dynamic by expanding outside of Korea’s borders and promoting overseas market entry and attracting overseas customers 2) Provide customized support: develop customized measures for each industry, taking into account the intricacies of each industry. Open up and make more competitive industries where competition is closed and/or limited, and increase infrastructure by providing fiscal and financial support to industries with poor infrastructure.

3) Promote the proliferation of successful cases: promote positive outcomes and ease concerns by creating actual successful cases through one-stop support for each project The government will develop a two-track system of ‘project-based support’ in order to promote investment and job creation, and ‘regulation reform and infrastructure-based support.’

The core initiatives for each of the 7 promising service industries are as follows:

1. Healthcare / medical care 1) Establish for-profit hospital subsidiaries

The 4th Measures to Stimulate Investment, which were announced on December 13, 2013 included the decision to allow hospitals and other healthcare providers to establish for-profit subsidiaries, and hospitals are becoming interested.

- Provide customized support to resolve difficulties in order to help hospitals and other healthcare providers establish for-profit subsidiaries. This includes recognizing foreign patient performance of the parent company in order to meet the requirements to build medical hotels, and easing distance requirements between medical hotels and healthcare institutions - Create successful models of for-profit medical hotels and special-purpose overseas medical corporations

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Policy Issues 2) Establish openinvestment foreign hospitals in Jeju Island and free economic zones

It has been possible for foreign hospitals to establish open-investment foreign hospitals in free economic zones and Jeju Island since October 2010, but despite this fact, these hospitals remain few and far between.

- Provide support for open-investment foreign hospitals established in free economic zones and Jeju Island - Finalize approval for the establishment of a open-investment hospital by China Stem Cell Health Group (CSC) (50.5 billion won of investment) on Jeju Island by September - Ease regulations for establishing open-investment foreign hospitals in free economic zones to be more in-line with Jeju Island’s regulations in order to actively encourage excellent foreign hospitals to establish branches in free economic zones

Regulations for for-profit open-investment foreign hospitals Free economic zones

54

- Foreign doctors must account for over 10% of total doctors - Foreigners must account for over 50% of hospital directors/decision-makers for treatment

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

3) Attract foreign patients and promote medical institutions to enter overseas markets

Jeju Island - Hospitals are allowed to permit foreign doctors

Korea will take advantage of its world-class medical care technologies to maximize medical export potential. The number of foreign patients coming to Korea for medical treatment is increasing, but Korea continues to trail neighboring competitors, such as Singapore.

- Provide support in order for Korea to become the premier medical tourist destination in Asia, and enact the ‘Special Act for International Medical Care’ to provide the legal foundations for supporting the entry of medical care institutions into overseas markets - Provide the same level of support that SMEs receive to medical care providers to attract foreign patients and enter overseas markets

2. Tourism and contents 1) Build resort complexes

Singapore, Macao and other Asian hotspots are developing globally competitive resorts, but Korea, when compared to these hotspots, remains uncompetitive.

- Create globally competitive resorts by developing a one-stop service for resolving difficulties. The service will provide infrastructure support, help shorten licensing procedures, help projects receive approval, and help plans be implemented - The one-stop service will lead to 8.7 trillion won to be invested across 4 major resort projects (LOCZ Korea Casino at 2.2 trillion won, Paradise Casino at 1.9 trillion won, Dream Island at 2 trillion won and Jeju Myths and History Theme Park at 2.6 trillion won) that are in the process of being developed

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2) Attract global theme parks

KOWACO has been trying to attract global theme parks to be built in Songsan Green City but has of yet been unsuccessful as the depressed real estate market fails to bring in investment and the project has been unable to attract foreign investment.

- Induce the construction of global theme parks in Songsan Green City by developing incentives and improving regulations

3) Promote mountain tourism

Korea is made up of 64% mountainous land, but these areas are not being taken advantage of for their tourism potential due to regulations and poor tourism support.

- Overhaul regulations in order to make it possible for recuperation resorts to be developed in nature reserves. This includes introducing special nature tourism zones - Install environmentally-friendly cable cars in popular tourist destinations such as Seoraksan (40 billion won in investment projected) and Namsan in order to increase accessibility in an environmentally-safe manner Paris is known for the Seine River and London for the Thames, but despite Korea being home to the beautiful Han River, these resources are not being utilized.

- Government ministries along with the city of Seoul will work together to draft a master plan for providing tourism support for Han River projects in Seoul, and attractions, recreational facilities and restaurant facilities will be developed.

Policy Issues

4) Promote Han River tourism

55

3. Educational services 1) Encourage foreign universities to open campuses in Korea

The government has allowed foreign universities to open campuses in free economic zones, but has failed to attract world class educational institutions.

- Implement specific measures according to the needs of the institutions - Help foreign universities open campuses in Korea by allowing subsidiaries and allow foreign institutions to engage in joint ventures with Korean enterprises

2) Increase the number of foreign students studying in Korea

Despite increasing demand, the number of foreign students has failed to significantly increase due to complicated visa issuance procedures.

- Allow private educational institutions to issue student visas (D-4)

4. Financial services 1) Create a service industry support fund

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Existing policy-based funds have failed to effectively support service industries as they are not designed to address the service industry’s needs.

14. 8. 25. 오후 8:00

Policy Issues - Infuse the Promising Service Industry Support Fund with 3 trillion won over the next 3 years 2) Promote the listing of Enterprises have not been willing to list their companies because listing procedures enterprises with strong are too complicated and regulations on listed companies are too burdensome. growth potential - Add 60-70 listed companies a year by increasing incentives and revising regulations - Gradually increase the daily limit that stock prices may fluctuate from between ±15% to a certain level, for example ±30% 3) Improve the current The current retirement pension plan cannot guarantee secure retirement income retirement pension plan because of low total enrollment and a shortage of long-term enrollees.

- Increase returns by easing regulations regarding retirement pension fund management, and promote enrollment

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

4) Improve financial holding company efficiency

Since their introduction in 2001, financial holding companies have grown considerably in size, but cooperation between subsidiaries has been ineffective, and holding companies’ response to the changing financial landscape has been lackluster.

- Encourage cooperation between affiliates while establishing a more responsible decision-making system in order to promote quality financial services and help overseas market entrance

5. Foster the logistics industry 1) Increase the number Despite rising demand for logistics parks, construction has been strictly regulated according to caps on total supply by province, and there have been difficulties in of logistics parks finding the right locations for logistics parks.

- Designate areas for logistics parks in provinces where demand is growing - Build logistics facilities in areas near tourist centers on highways to improve transportation 2) Develop the Incheon International Airport Free Trade Zone as a global logistics hub

Low VAT rates have been applied only to goods that will be consumed in the Incheon International Airport Free Trade Zone, whereas countries such as Taiwan have applied low rates to all goods that enter their free trade zones. The quantity of goods transported via the Incheon International Airport Free Trade Zone has been decreasing since 2010 from 2.68 million tons to 2.46 million tons.

- Apply low VAT rates to all goods that enter the Incheon International Airport Free Trade Zone - Open Korea Train Express (KTX) lines for freight services in 2020, which will link the Incheon International Airport Free Trade Zone with other parts of the country

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3) Develop the home delivery service industry

Internet and TV purchases have been increasing, leading to rising demand for better home delivery services. Home deliveries have been increasing at an annual rate of 15.9% from 2003 to 2013, and the number of purchases per person using home deliveries grew from 2.4 to 35.7 over the same period.

- Add 12,000 home delivery vehicles and introduce an evaluation system to improve home delivery services

4) Allow freight vehicles to use Hi-pass, an electronic toll payment system

Freight vehicles with transportation capacities of 4.5 tons or more have not been allowed to use the Hi-pass system, which electronically collects tolls through the use of a transponder, allowing vehicles to pass through tolls more quickly. This is because these freight vehicles are required to have their freight weights checked at toll gates, which has caused delays and extra costs.

- Install a freight vehicle hi-pass toll gate, and weight can be checked while in transit

57

6. Develop software industries and ICT Korea has designated just 1 high technology community in Daegu, whereas highly industrialized countries, such as the US and Germany, have several high technology communities where software industries are flourishing with abundant talent and resources.

Policy Issues

1) Establish high-technology communities

- Establish high technology communities in Pangyo, Songdo and Busan in 2014, where corporations, universities and research centers can work together with region-specific industries and software technologies, and add more high technology communities in the future 2) Launch new TV home Even though 1 TV shopping channel exclusive for SME products is in operation among 6 TV home shopping channels, it cannot meet the growing demand from SMEs. shopping channels - Launch a new TV home shopping channel for SME, agricultural and marine products

Conclusion The measures will lead to 15 trillion won in investment, while creating 180,000 jobs and building a foundation for fostering promising service industries.

The government will prepare follow-up measures as quickly as possible in order for tangible results to be felt in the real economy, hold meetings to explain policies, make onsite visits and host talks with related industries.

The Ministerial Meeting on the Economy will review the measures on a monthly basis.

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Ec o Ne no ws mi c Br iefi ng 58 E c o n o m i c B u l le t i n

FX transaction regulations eased to improve customer convenience BOK cuts key rate to 2.25% Online payment system to be simplified Korean FDI falls 6.5% in first half of 2014 Korea grows 0.6% in Q2 (Advanced)

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The Ministry of Strategy and Finance announced on July 31 measures to make foreign exchange (FX) transactions more customer-friendly. The ceiling of FX transactions that are not required to be verified by banks will be raised from US $1,000 to US $2,000, and customers living in rural areas will be allowed to wire up to US $30,000 annually via branches of the National Agricultural Cooperative Federation.

To make corporate F X transactions more convenient, the deadline for sending funds in foreign currencies to Korea will be extended twofold (1.5 years > 3 years). For investments up to US $500,000, businesses will be allowed to report after the investments have been made. Importers may send up to US $2 million in advance payments without reporting the transaction if the items take time to be produced, such as vessels, airplanes, trains and industrial facilities.

Despite easing some FX transaction regulations to increase customer convenience, the government will continue to strongly regulate FX transactions in order to maintain external soundness and to prevent illegal transactions.

— BOK cuts key rate to 2.25% The Monetary Policy Committee of the Bank of Korea (BOK) decided on August 14 to lower its benchmark interest rate by 25 basis points to 2.25 percent. The central bank had kept borrowing costs unchanged for more than a year, after cutting the base rate by 25 basis points to 2.50 percent in May 2013.

The Committee stated that domestic demand, which had contracted due to the Sewol ferry

EB 8월호 내지.indd 59

disaster, has not been improving fast enough, and that consumption and investment remain sluggish.

The Committee added that it will manage monetary policy so as to keep consumer price inflation within the Committee’s target range in the medium term while supporting the economic recovery.

— Online payment system to be simplified Korea’s online payment services will be simplified to make online shopping more convenient for foreign customers. Although the financial authorities already lifted the requirement of public key certificates for online payments with credit cards, customers are still required to use public key certificates for purchases exceeding 300,000 won for security reasons. Foreigners have difficulty accessing local e-commerce sites due to the Active-X and public key certificate requirements.

To remove such inconveniencies, the government will provide an alternative authentication system that will not require public key certificates or Active-X tools by the end of the year. Also, customers will be allowed to use the alternative authentication system for purchases worth more than 300,000 won.

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

g

— FX transaction regulations eased to improve customer convenience

— Korean FDI falls 6.5% in first half of 2014 Korean foreign direct investment (FDI) fell 6.5 percent to US $15.42 billion in the first half of 2014 compared to the same period of the previous year.

FDI rose in manufacturing (up 11.0%) , but fell in finance & insurance (down 4.7%) , mining (down 30.5%) and real estate & renting (down 16.9%) . By destination, FDI rose in Asia (up 10.4%) and North America (up 84.5%) , but declined in Central and South America (down 54.9%) , Europe (down 43.2%) and Oceania (down 24.3%).

14. 8. 25. 오후 8:00

Economic News Briefing — Korea grows 0.6% in Q2 (Advanced) Korea’s real gross domestic product (GDP) expanded 0.6 percent quarter-on-quarter and 3.6 percent year-onyear in the second quarter of 2014, according to advanced data released by the Bank of Korea (BOK) on July 24.

On the production side, agriculture, forestry & fisheries were down 4.1 percent from the previous quarter, as the number of cattle and pigs declined. Manufacturing grew 1.1 percent, led by chemical products, automobiles and LCD products. Construction grew 0.4 percent, led by building construction, and services were up 0.7 percent, as growth in healthcare & social welfare services offset declines in hotels & restaurants and transportation & storage.

60

S A

On the expenditure side, private consumption fell 0.3 percent, as both goods and services saw a decline in consumption. Facility investment and construction investment rose 1.3 percent and 0.6 percent, respectively.

Investment in software and technology declined 4.2 percent, as overseas spending related to intellectual property rights decreased.

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

Exports rose 1.9 percent, led by LCD and chemical products, while imports were up 0.8 percent, led by automobiles and overseas spending by domestic consumers.

GDP by production and expenditure*

GDP Agriculture, forestry & fisheries Manufacturing

Q1 0.5 (2.6)²

2012 Q2 Q3 0.5 0.4 (2.4)² (2.1)²

-6.7

-0.2

-0.4

(Percentage change from previous period) 2013¹ Q2 Q3 1.0 1.1 (2.7)² (3.4)²

Q4 0.6 (2.1)²

Q1 0.6 (2.1)²

6.1

-4.1

1.9

4.6

Q4 0.9 (3.7)²

2014¹ Q1 Q2 0.9 0.6 (3.9)² (3.6)²

7.4

-4.4

-4.1

1.5

0.3

0.3

0.1

1.2

1.2

1.2

0.8

2.2

1.1

-2.9

-0.2

0.4

-1.2

2.7

1.7

1.9

-2.4

1.2

0.4

Services³

0.9

0.7

0.4

0.6

0.5

1.2

0.7

0.8

0.6

0.7

Private consumption

0.8

0.2

1.2

0.4

-0.1

0.7

1.0

0.6

0.2

-0.3

Government consumption

2.4

-0.4

1.0

0.2

0.5

1.6

0.4

0.9

0.0

0.4

Facility investment

11.5

-8.0

-3.2

-3.3

1.5

1.0

2.7

5.6

-1.9

1.3

Construction investment

-2.1

-3.0

1.2

-2.4

6.5

4.6

0.2

-5.2

5.1

0.6

Intellectual property investment

9.0

-3.2

3.3

-2.8

9.4

-2.2

1.2

1.8

6.5

-4.2

Exports

0.5

2.5

1.9

0.9

0.2

2.6

-1.1

1.4

1.5

1.9

Imports

3.0

-0.2

0.3

-1.3

0.6

1.8

-0.4

2.9

-0.8

0.8

Construction

*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, communications services, financial & insurance services, real estate & renting, business services, public administration, defense & social security, education services, healthcare & social welfare services, entertainment, cultural & sports services and other services are included.

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1. National accounts

61 Statistical Appendices

Sta tist App ic a en l dic es 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

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

Period

62

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

2.6 4.5 5.4 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

5.9 5.1 4.7 5.0

3.0 0.7 4.3 5.9

1.7 -4.1 -0.3 5.4

4.6 8.8 13.5 6.8

2007 Ⅰ Ⅱ Ⅲ Ⅳ

4.7 5.6 5.1 6.3

1.7 7.0 8.1 -0.6

6.5 8.6 7.4 10.9

5.2 5.6 5.5 5.0

6.6 6.3 2.1 5.2

3.8 2.0 0.0 0.9

10.3 14.2 2.1 12.2

2008 Ⅰ Ⅱ Ⅲ Ⅳ

5.5 4.1 3.9 -1.6

7.7 4.6 4.3 6.4

8.2 7.1 6.1 -5.3

4.7 3.1 2.4 -1.4

1.8 0.9 2.3 -7.0

-2.0 -0.7 0.2 -7.3

7.0 1.4 5.6 -13.0

2009 Ⅰ Ⅱ Ⅲ Ⅳ

-1.9 -1.1 0.9 4.8

2.5 0.0 5.0 5.0

-8.4 -5.7 1.6 10.4

-1.9 0.9 1.7 4.5

-5.4 -1.1 0.8 5.8

1.9 4.4 3.1 4.1

-19.4 -13.6 -5.9 9.5

2010 Ⅰ Ⅱ Ⅲ Ⅳ

7.2 7.4 5.4 6.0

0.0 -2.2 -7.8 -5.7

16.1 17.2 10.1 11.9

6.2 3.6 3.9 3.4

12.0 6.8 3.8 1.2

1.6 -4.8 -4.8 -5.2

27.6 28.8 20.6 12.9

2011 Ⅰ Ⅱ Ⅲ Ⅳ

4.9 3.6 3.3 3.1

-9.2 -2.4 -5.8 7.0

11.4 6.5 5.6 3.4

3.3 3.3 2.8 1.7

-0.7 2.5 1.7 -0.3

-8.3 -2.5 -2.1 -2.0

8.2 8.3 3.4 -0.9

2012 Ⅰ Ⅱ Ⅲ Ⅳ

2.6 2.4 2.1 2.1

-0.3 -2.2 -0.1 -0.7

2.7 2.8 2.0 2.0

2.2 1.3 2.7 2.7

6.2 -2.3 -1.0 -3.4

-0.2 -5.4 -2.7 -6.2

11.1 -1.8 -4.2 -4.0

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

1.6 2.4 2.3 2.4

-2.6 5.0 5.9 7.8

1.9 9.8 8.8 5.4

-12.7 -3.9 1.5 10.9

2014P Ⅰ Ⅱ

3.9 3.6

7.7 3.0

5.6 5.4

2.6 1.6

5.9 3.4

4.3 0.4

7.3 7.9

P: Preliminary Source: The Bank of Korea

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

Production index

Shipment index

y-o-y change(%)

Inventory index

y-o-y change(%)

Service production index

y-o-y change(%)

y-o-y change(%)

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 Ⅰ

106.4

0.7

105.9

0.2

130.1

5.7

104.9

1.9

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2014 1 2 3 4 5P 6P

106.1 100.7 112.3 111.8 107.9 108.0

-4.3 3.9 2.8 2.5 -2.1 0.6

104.5 100.8 112.5 110.8 108.1 107.5

-4.6 3.1 2.5 1.8 -1.5 -0.6

133.1 129.3 130.1 131.3 129.9 129.5

3.7 3.8 5.7 8.5 6.3 8.5

104.3 101.3 109.0 106.4 108.4 109.4

2.2 1.1 2.4 0.9 0.6 2.2

63 Statistical Appendices

2011 2012 2013

P: Preliminary Source: Statistics Korea

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

64

Production capacity index (2010=100)

Operation ratio index (2010=100)

y-o-y change (%)

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 Ⅰ

109.5

1.2

92.5

-0.9

77.2

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

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

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

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

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

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

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

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

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

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

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

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

2014 1 2 3 4 5P 6P

109.6 109.5 109.5 109.5 109.6 109.6

1.4 1.2 1.2 1.2 1.1 0.9

91.6 87.2 98.7 99.8 95.8 95.4

-7.0 3.2 2.0 2.5 -3.2 -0.5

78.2 75.8 77.5 77.8 74.7 76.7

P: Preliminary Source: Statistics Korea

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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 (%)

Nondurable 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 Ⅰ

106.3

2.5

117.5

6.0

100.0

-1.7

103.9

2.7

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2014 1 2 3 4 5P 6P

110.5 99.1 109.3 105.5 112.0 108.2

5.6 -0.4 2.1 0.2 1.1 1.2

116.8 117.1 118.6 114.1 121.7 128.7

4.1 10.6 3.4 -0.8 1.8 7.1

100.2 91.6 107.9 105.4 111.3 96.7

-2.6 -1.6 -1.2 -0.9 -2.2 -4.7

112.1 94.0 105.5 101.5 107.8 103.6

10.2 -5.3 2.9 1.2 2.2 0.5

65 Statistical Appendices

2011 2012 2013

P: Preliminary Source: Statistics Korea

EB 8월호 내지.indd 65

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

Period

66

y-o-y change (%)

Nondurable goods

y-o-y change (%)

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 Ⅰ

100.3

-2.4

103.1

-4.5

99.1

-1.4

-

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2014 1 2 3 4 5P 6P 7

102.2 96.3 102.6 101.2 99.5 98.9 -

-5.7 -0.4 -0.6 2.1 0.2 2.3 -

99.8 106.5 103.3 97.8 103.5 106.8 -

-9.6 0.4 -4.0 -0.1 2.2 4.1 -

103.3 91.9 102.3 102.7 97.8 95.5 -

-3.9 -0.8 1.0 3.1 -0.7 1.5 -

109 108 108 108 105 107 105

P: Preliminary Source: Statistics Korea

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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 (%)

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 Ⅰ

6,594

17.9

1,221

184.6

5,373

4.1

96.6

5.9

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2014 1 2 3 4 5P 6P

1,716 1,848 3,029 2,283 1,813 1,974

-7.1 10.9 45.7 23.7 -14.8 4.2

88 120 1,013 97 114 88

-36.9 -28.8 735.6 5.1 -54.5 -58.4

1,628 1,728 2,016 2,187 1,699 1,886

-4.7 15.4 3.0 24.7 -9.5 12.1

88.4 93.8 107.6 108.7 107.2 104.3

-1.6 12.3 7.2 10.7 5.5 2.3

67 Statistical Appendices

25,148 21,648 23,105

P: Preliminary Source: Statistics Korea

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

68

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 35,120 -3.3 33,807 10.4 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 7,322 -0.1 9,290 -2.7 7,684 4.4 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 7,005 14.7 9,345 10.9 8,083 10.6 10,099

-5.9 5.1 6.4 2.3

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

13.6 23.6 15.8 16.8

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

-40.8 -29.5 -10.6 22.2

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

-24.1 -4.0 -9.1 6.2

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

-46.2 -36.6 -10.8 41.7

2014 Ⅰ

21,626

7.4

7,144

2.0

13,630

10.1

15,501

15.5

5,968

39.1

9,102

3.6

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

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

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

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

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

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

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

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

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

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

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

5,269 81.4 6,121 144.1 4,918 -13.6 4,461 -3.6 6,133 29.4 8,505 2.7 4,329 39.9 4,032 -30.3 4,161 4.2 3,787 -24.1 4,798 -18.3 3,290 -64.8

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

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

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

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

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

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

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

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

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

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

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

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

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

2014 1 2 3 4 5P 6P

7,034 6,654 7,938 8,457 8,046 9,332

12.3 6.9 3.7 4.6 -1.2 -1.5

2,310 2,207 2,627 2,737 2,558 3,378

11.5 4,434 -5.9 4,226.0 1.5 4,971.0 -3.6 5,445 -8.8 5,202 -8.7 5,583

12.1 15.8 4.2 9.9 2.8 4.1

5,300 5,393 4,807 7,290 6,368 8,785

49.5 21.7 -11.8 47.4 4.8 23.3

2,102 2,242 1,625 1,892 2,000 2,690

62.9 74.2 -5.2 21.4 28.3 20.6

3,026 3,001 3,075 5,388 4,299 5,874

43.5 0.3 -16.4 81.9 -2.1 23.6

P: Preliminary Source: Statistics Korea

EB 8월호 내지.indd 68

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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 6 7 8

117.6 118.0 118.2 118.8 119.1 119.7 -

101.6 101.5 101.3 101.5 101.3 101.5 -

117.5 117.9 118.4 118.5 118.5 118.8 -

100.7 100.6 100.7 100.4 100.1 100.0 -

89.4 87.0 100.7 95.8 93.0 91.3 90.8 -

93.4 88.7 104.4 99.5 101.7 94.5 94.0 91.6

69 Statistical Appendices

Leading index (2010=100)

Period

Sources: Statistics Korea, The Bank of Korea

EB 8월호 내지.indd 69

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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

2014P Ⅰ

15,070.7

17,745.2

152,688.6

134,943.4

-3,618.6

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 4 5 6

3,285.3 4,499.1 7,286.3 7,124.7 9,080.8 7,919.7

4,367.0 5,403.4 7,974.8 10,648.0 9,133.5 6,646.6

50,599.8 47,993.3 54,095.5 56,721.4 52,383.0 50,281.0

46,232.8 42,589.9 46,120.7 46,073.4 43,249.5 43,634.4

-1,912.1 -1,058.7 -647.8 -1,042.8 -336.1 -575.0

1,211.4 371.8 322.6 -1,619.7 725.1 2,225.5

-381.0 -217.4 -363.3 -860.8 -441.8 -337.4

Period

70

Exports

Imports

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

P: Preliminary Source: The Bank of Korea

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10. Balance of payments (II) (US $ million) Capital transfers & acquisition of Reserve assets nonfinancial assets

Direct investment

Portfolio investment

Financial derivatives

Other investment

2011 2012 2013

-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

2014P Ⅰ

-17177.8

-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 5 6

-4,477.0 -6,920.5 -5,780.3 -6,238.8 -8,132.4 -9,836.9

529.9 -2,163.5 -2,024.1 -2,157.8 -3,338.8 -2,056.3

-4,193.1 -7,394.4 -2,009.2 1,662.3 -3,311.0 -4,218.5

155.5 223.1 514.0 858.1 534.5 690.9

1,937.4 4,739.0 -469.0 -5,935.6 3,950.6 283.1

-3.0 3.5 -2.6 2.6 -4.3 -2.6

-2,906.7 -2,324.7 -1,792.0 -665.8 -5,967.7 -4,536.1

71 Statistical Appendices

Capital & financial account

Period

P: Preliminary Source: The Bank of Korea

EB 8월호 내지.indd 71

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

All Items

Commodity

y-o-y change (%)

72

Producer prices

Services

y-o-y change (%)

Core

y-o-y change (%)

All Items

y-o-y change (%)

Commodity

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

104.0 106.3 107.7

4.0 2.2 1.3

105.7 108.9 110.1

5.7 3.0 1.0

102.7 104.2 105.8

2.7 1.4 1.5

103.2 104.9 106.6

3.2 1.6 1.6

106.7 107.5 105.7

6.7 0.7 -1.6

108.7 108.9 106.2

8.7 0.2 -2.5

2011 7 8 9 10 11 12

104.3 105.0 104.9 104.7 104.8 105.2

4.5 4.7 3.8 3.6 4.2 4.2

105.9 107.1 107.1 106.6 106.8 107.3

6.4 6.8 5.0 4.5 6.0 5.7

103.1 103.3 103.1 103.2 103.3 103.5

2.9 3.0 2.7 2.8 2.7 2.8

103.7 103.8 103.7 103.6 103.9 104.3

3.6 3.5 3.3 3.2 3.5 3.6

107.2 107.4 107.4 107.3 107.0 107.1

7.0 6.9 6.3 5.8 5.1 4.3

109.3 109.5 109.6 109.4 108.9 109.0

9.1 8.9 8.0 7.4 6.5 5.3

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

105.7 106.1 106.0 106.0 106.2 106.1 105.9 106.3 107.0 106.9 106.5 106.7

3.4 3.1 2.6 2.5 2.5 2.2 1.5 1.2 2.0 2.1 1.6 1.4

107.9 108.5 109.2 108.9 109.2 108.8 107.9 108.8 110.4 109.8 108.9 109.0

4.4 3.9 4.1 4.1 4.3 3.6 1.9 1.6 3.1 3.0 2.0 1.6

103.9 104.2 103.5 103.7 103.9 104.0 104.2 104.4 104.4 104.6 104.6 104.8

2.7 2.5 1.4 1.3 1.3 1.2 1.1 1.1 1.3 1.4 1.3 1.3

104.6 104.7 104.3 104.4 104.6 104.9 104.9 105.1 105.2 105.2 105.3 105.5

3.2 2.5 1.9 1.8 1.6 1.5 1.2 1.3 1.4 1.5 1.3 1.2

107.7 108.4 108.9 109.0 108.4 107.1 106.6 107.2 107.6 106.8 106.1 105.8

3.2 3.1 2.4 1.9 1.0 0.0 -0.6 -0.1 0.2 -0.5 -0.9 -1.2

109.5 110.5 111.2 111.1 110.3 108.4 107.6 108.6 109.2 107.8 106.8 106.4

3.6 3.6 2.7 1.9 0.7 -0.7 -1.5 -0.9 -0.4 -1.4 -1.9 -2.3

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

107.3 107.7 107.6 107.5 107.5 107.3 107.6 107.9 108.1 107.8 107.8 107.9

1.6 1.6 1.5 1.3 1.1 1.2 1.6 1.5 1.0 0.9 1.2 1.1

109.9 110.4 110.4 109.9 109.6 109.4 109.7 110.3 110.9 110.1 110.1 110.2

1.7 1.6 1.1 0.9 0.4 0.7 1.7 1.5 0.4 0.3 1.0 0.9

105.3 105.6 105.4 105.6 105.7 105.7 105.9 106.1 106.0 106.0 106.0 106.2

1.5 1.5 1.7 1.7 1.8 1.6 1.5 1.5 1.5 1.4 1.3 1.3

105.9 106.2 106.0 106.0 106.4 106.6 106.7 106.7 107.0 107.1 107.4 107.5

1.3 1.4 1.6 1.6 1.7 1.6 1.7 1.5 1.7 1.8 2.0 1.9

106.0 106.7 106.3 105.9 105.6 105.5 105.5 105.8 105.7 105.3 105.1 105.4

-1.6 -1.6 -2.4 -2.8 -2.6 -1.4 -1.0 -1.3 -1.8 -1.4 -0.9 -0.4

106.8 107.8 107.1 106.6 106.1 106.0 106.0 106.2 106.1 105.5 105.2 105.5

-2.5 -2.5 -3.7 -4.1 -3.8 -2.2 -1.6 -2.1 -2.8 -2.2 -1.5 -0.9

2014 1 2 3 4 5 6

108.5 108.8 109.0 109.1 109.2 109.1

1.1 1.0 1.3 1.5 1.7 1.7

110.9 111.4 111.6 111.3 111.5 111.2

0.9 0.9 1.1 1.3 1.7 1.7

106.6 106.7 107.0 107.3 107.5 107.4

1.3 1.1 1.5 1.6 1.6 1.6

107.7 108.0 108.3 108.5 108.8 108.9

1.7 1.7 2.1 2.3 2.2 2.1

105.6 105.8 105.7 105.6 105.5 105.6

-0.3 -0.9 -0.5 -0.3 0 0.1

105.7 105.9 105.7 105.4 105.3 105.4

-1.0 -1.7 -1.3 -1.1 -0.7 -0.6

Source: The Bank of Korea

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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 (%)

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 5 6 7

25,650 25,997 26,187 26,714 26,762 26,825 26,891

3.0 4.1 3.1 3.0 2.2 2.0 2.2

24,759 24,819 25,163 25,684 25,811 25,875 25,979

2.9 3.5 2.6 2.3 1.6 1.6 2.0

4,280 4,274 4,284 4,288 4,324 4,345 4,358

2.2 3.3 3.5 2.3 3.6 3.9 4.6

19,376 19,407 19,538 19,819 19,815 19,841 20,003

3.0 3.6 2.9 2.7 1.7 1.6 2.2

3.5 4.5 3.9 3.9 3.6 3.5 3.4

73 Statistical Appendices

2011 2012 2013

Source: Statistics Korea

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

74

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 5 6 7

2.5 2.5 2.5 2.5 2.5 2.5 2.5

2.7 2.7 2.7 2.7 2.7 2.7 2.7

3.3 3.3 3.3 3.3 3.3 3.2 3.0

2.9 2.9 2.9 2.9 2.8 2.7 2.6

3.3 3.2 3.2 3.2 3.1 3.0 2.8

1,941.15 1,979.99 1,985.61 1,961.79 1,994.96 2,002.21 2,076.12

Source: The Bank of Korea

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14. Monetary indicators (billion won) Period

Reserve money

M1

y-o-y change (%)

M2 y-o-y change (%)

Lf y-o-y change (%)

y-o-y change (%)

75,232.0 82,131.1 91,379.4

11.3 9.2 11.3

425,675.1 441,963.6 484,062.9

6.6 3.8 9.5

1,708,984.5 1,798,625.7 1,885,781.3

4.2 5.2 4.8

2,208,170.4 2,379,518.7 2,543,299.4

5.3 7.8 6.9

2011 7 8 9 10 11 12

74,069.7 75,642.3 77,942.2 76,944.6 76,617.3 77,842.5

10.6 12.4 10.9 10.1 10.3 8.9

418,973.1 422,649.3 425,196.4 421,480.1 423,111.9 432,602.2

3.8 5.4 5.1 4.1 2.0 1.6

1,705,451.5 1,719,437.8 1,729,531.1 1,742,645.4 1,753,296.4 1,756,597.4

3.2 4.0 4.2 4.4 4.4 4.4

2,208,624.3 2,230,191.9 2,243,675.6 2,263,627.7 2,279,234.1 2,288,816.9

4.6 5.5 5.7 6.1 6.2 6.2

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

81,635.4 81,655.3 79,068.0 80,641.8 80,547.7 81,804.0 81,555.7 82,369.1 82,958.7 85,078.6 82,956.5 85,302.7

11.0 8.3 8.3 10.2 9.1 9.5 10.1 8.9 6.4 10.6 8.3 9.6

439,352.9 437,193.9 440,075.4 437,445.3 438,795.3 441,611.0 441,760.6 439,573.2 440,034.3 444,477.8 445,463.9 457,778.9

2.3 1.1 2.1 2.8 3.5 4.7 5.4 4.0 3.5 5.5 5.3 5.8

1,757,058.7 1,762,988.4 1,773,172.9 1,777,114.7 1,784,220.5 1,796,981.5 1,807,289.2 1,817,134.9 1,819,290.1 1,822,420.9 1,830,280.3 1,835,556.7

4.8 5.3 5.7 5.5 5.5 5.9 6.0 5.7 5.2 4.6 4.4 4.5

2,292,213.5 2,302,065.8 2,341,626.9 2,349,723.2 2,357,701.0 2,377,071.3 2,393,737.7 2,405,239.9 2,415,263.5 2,424,000.4 2,440,062.8 2,455,962.9

6.5 7.2 8.8 8.6 8.4 8.5 8.4 7.8 7.6 7.1 7.1 7.3

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

85,839.3 88,855.7 89,523.5 87,729.0 89,654.8 91,207.6 90,643.7 93,729.6 95,130.6 93,640.4 93,609.9 96,988.5

5.1 8.8 13.2 8.8 11.3 11.5 11.1 13.8 14.7 10.1 12.8 13.7

464,914.5 472,239.6 472,430.1 475,330.0 475,526.7 486,587.5 488,982.7 481,416.9 490,518.7 491,947.9 499,242.7 509,617.9

5.8 8.0 7.4 8.7 8.4 10.2 10.7 9.5 11.5 10.7 12.1 11.3

1,841,128.1 1,857,135.0 1,862,405.5 1,867,726.3 1,870,289.7 1,884,193.2 1,890,728.6 1,888,658.4 1,903,187.1 1,908,557.6 1,923,339.2 1,932,026.4

4.8 5.3 5.0 5.1 4.8 4.9 4.6 3.9 4.6 4.7 5.1 5.3

2,469,789.3 2,488,539.0 2,499,718.1 2,512,459.7 2,518,239.1 2,533,750.8 2,549,443.5 2,557,336.3 2,577,546.7 2,587,071.4 2,605,873.9 2,619,029.5

7.7 8.1 6.8 6.9 6.8 6.6 6.5 6.3 6.7 6.7 6.8 6.6

2013 1 2 3 4 5 6

98,541.6 100,547.9 100,624.0 98,898.5 101,791.4 101,412.3

14.8 13.2 12.4 12.7 13.5 11.2

515,742.5 518,475.5 520,299.0 518,809.3 523,069.9 532,041.2

10.9 9.8 10.1 9.1 10.0 9.3

1,937,045.6 1,954,340.7 1,964,954.0 1,970,361.6 1,982,390.9 1,999,376.3

5.2 5.2 5.5 5.5 6.0 6.1

2,635,100.1 2,647,674.0 2,659,370.7 2,669,341.4 2,684,643.9 2,703,088.1

6.7 6.4 6.4 6.2 6.6 6.7

75 Statistical Appendices

2011 2012 2013

Source: The Bank of Korea

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

76

\/100￥

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

Won

y-o-y change (%)

Won

2011 2012 2013

1,153.3 1,071.1 1,055.3

1.3 -7.1 -1.5

1,485.2 1,247.5 1,004.7

2011 7 8 9 10 11 12

1,052.6 1,071.7 1,179.5 1,104.5 1,150.3 1,153.3

-11.3 -9.9 3.3 -2.0 -0.6 1.3

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

1,125.0 1,126.5 1,137.8 1,134.2 1,177.8 1,153.8 1,136.2 1,134.6 1,118.6 1,094.1 1,084.7 1,071.1

2013 1 2 3 4 5 6 7 8 9 10 11 12 2014 1 2 3 4 5 6 7

\/Euro

y-o-y change (%)

Won

y-o-y change (%)

6.3 -16.0 -19.5

1,494.1 1,416.3 1,456.3

-1.3 -5.2 2.8

1,353.2 1,396.8 1,536.6 1,458.0 1,475.7 1,485.2

-1.2 -0.7 12.7 4.8 7.4 6.3

1,507.9 1,547.3 1,601.4 1,562.7 1,532.9 1,494.1

-2.9 2.7 2.9 -0.4 1.0 -1.3

1.0 -0.1 2.8 5.8 9.0 7.0 7.9 5.9 -5.2 -0.9 -5.7 -7.1

1,473.1 1,399.2 1,380.7 1,412.0 1,489.1 1,453.8 1,453.6 1,444.0 1,441.1 1,374.5 1,320.6 1,247.5

8.6 1.3 3.7 7.5 11.5 8.8 7.4 3.4 -6.2 -5.7 -10.5 -16.0

1,478.2 1,516.3 1,513.4 1,501.7 1,456.6 1,435.0 1,393.1 1,419.6 1,444.3 1,418.3 1,407.3 1,416.3

-2.4 -2.1 -3.2 -5.6 -6.0 -8.0 -7.6 -8.3 -9.8 -9.2 -8.2 -5.2

1,082.7 1,085.4 1,112.1 1,108.1 1,128.3 1,149.7 1,113.6 1,110.9 1,075.6 1,061.4 1,062.1 1,055.3

-3.8 -3.6 -2.3 -2.3 -4.2 -0.4 -2.0 -2.1 -3.8 -3.0 -2.1 -1.5

1,188.5 1,176.2 1,180.1 1,132.0 1,116.6 1,167.2 1,135.4 1,129.2 1,098.7 1,077.5 1,038.2 1,004.7

-19.3 -15.9 -14.5 -19.8 -25.0 -19.7 -21.9 -21.8 -23.8 -21.6 -21.4 -19.5

1,469.3 1,425.8 1,425.2 1,451.3 1,471.4 1,498.2 1,476.7 1,470.6 1,451.3 1,456.6 1,444.8 1,456.3

-0.6 -6.0 -5.8 -3.4 1.0 4.4 6.0 3.6 0.5 2.7 2.7 2.8

1,079.2 1,067.7 1,068.8 1,031.7 1,021.6 1,014.4 1,024.3

-0.3 -1.6 -3.9 -6.9 -9.5 -11.8 -8.0

1,043.7 1,044.8 1,038.7 1,005.3 1,004.2 1,000.0 995.7

-12.2 -11.2 -12.0 -11.2 -10.1 -14.3 -12.3

1,473.6 1,463.6 1,469.4 1,425.0 1,389.6 1,384.2 1,371.8

0.3 2.7 3.1 -1.8 -5.6 -7.6 -7.1

Source: The Bank of Korea

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Gamcheon Cultural Village Gamcheon Cultural Village is a picturesque hillside village in Saha-gu, Busan. Formerly a settlement for Korean War refugees in the 50s, it has since been transformed into a tourist attraction and a cultural hub, with its colorful houses, maze-like streets and various artworks.

Useful economyrelated websites

EB 8월호 표지.indd 2

Ministry of Strategy and Finance http://english.mosf.go.kr

Fair Trade Commission http://eng.ftc.go.kr

Ministry of Trade, Industry and Energy http://www.motie.go.kr/language/eng

Ministry of Employment and Labor http://www.moel.go.kr/english

Financial Services Commission http://www.fsc.go.kr/eng

The Bank of Korea http://www.bok.or.kr/eng

Financial Supervisory Service http://english.fss.or.kr

Statistics Korea http://kostat.go.kr/portal/english

14. 8. 25. 오후 8:02