Economicbulletin12 en 1230

ISSN 2287-7266

ECONOMIC BULLETIN (Republic of Korea)

Republic of Korea

Vol.36 No.12 December 2014

conomic u l l e t i n

Vol.36 No.12 December 2014

The Green Book: Current Economic Trends Featured Issue

ASEAN-Republic of Korea Commemorative Summit

Policy Issues

2015 Economic Policy Directions

Economic News Briefing

2015 Budget Passed OECD Forecasts 3.8% Growth for Korea Next Year Measures to Boost the Stock Market Korea Grows 0.9% in Q3

ECONOMIC BULLETIN (Republic of Korea)

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Statistical Appendices

International Media Relations Division Ministry of Strategy and Finance Government Complex, 477 Galmae-ro

December 2014

Sejong, 339-012 Republic of Korea Tel. +82 2 731 1530 Fax. +82 2 731 1540 E-mail. fppr@mosf.go.kr Website. http://english.mosf.go.kr Economic Information and Education Center Korea Development Institute 15 Giljae-gil (Bangok-dong) Sejong, 339-007 Republic of Korea Fax. +82 44 550 4941 E-mail. jiyounlee@kdi.re.kr Website. http://eiec.kdi.re.kr

MOSF / KDI

Tel. +82 44 550 4645

contents

02 The Green Book: Current Economic Trends 03

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

36

12. Real estate market 12.1 Housing market 12.2 Land market

41

13. Composite indices of business cycle indicators

43 Featured Issue 44

ASEAN-Republic of Korea Commemorative Summit

46 Policy Issues 47

2015 Economic Policy Directions

53 Economic News Briefing 57 Statistical Appendices Editor-in-Chief Editorial Board Coordinators Editors

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), Kim Seul-Ki (MOSF)

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

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

OVERVIEW

Although inflation remains low, the Korean economy has been moderately picking up from a slowdown in August and September as the index of all industry production increased for the first time in three months and employment continued to rise by more than 400,000 jobs.

The economy continued to add jobs in October, adding 406,000 jobs year-on-year, with young adult employment growth accelerating, but growth slowed down due to a high base effect from a year ago.

Mining and manufacturing production fell 1.6 percent in October as strong automobiles and chemical products were offset by decreasing semiconductors & parts and audio-visual communications equipment.

Service output continued to grow for the third consecutive month in October, rising 0.8 percent from the previous month. Retail sales continued to decline month-on-month due to weak communications devices and other durable goods sales, but at a slower rate, falling 0.4 percent, compared to a 3.2 percent fall a month ago.

Facility investment dropped in October by 4.6 percent due to a high base effect from the previous month when the index soared 13.3 percent. Construction completed improved from a 5.8 percent fall to a 0.2 percent rise as building construction increased.

Exports declined year-on-year in November from a 2.3 percent rise to a 1.9 percent fall due to fewer days worked and as unit prices declined in line with low international oil prices. The trade balance remained in the black in November, posting a surplus of US $5.61billion.

Market interest rates fell in November while the KOSPI increased as foreign investors purchased more Korean shares than selling. The dollar-won ratio rose and the 100 yen-won ratio fell compared to the previous month.

Both housing prices and Jeonse (lump-sum deposits with no monthly payments) prices continued to increase in November, rising 0.2 percent and 0.3 percent, respectively.

External volatility, such as the ending of the US QE program, yen depreciation and falling international oil prices, can lead to uncertainties for the Korean economy.

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

The government will also closely review the implementation of reform plans, particularly the Three-year Plan for Economic Innovation, while continuing to focus on expediting economic recovery.

3 The Green Book

Consumer price inflation remained low in November, falling from a 1.2 percent rise to a 1.0 percent rise compared to a year ago, in line with falling international oil prices and stable supply of agricultural products.

The composite index of coincident indicators declined 0.3 points in October, and the composite index of leading indicators rose 0.3 points.

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

1. External economic situation

Economic recovery in the US is gaining momentum, while the eurozone, Chinese and Japanese economies remain sluggish.

Countries are responding to the slowdown, with Japan delaying the consumption tax hike, China cutting interest rates, and the eurozone signaling additional monetary stimulus measures.

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

US economic growth in the third quarter of 2014 was revised up to 3.9 percent (annualized q-o-q) from the advanced estimate of 3.5 percent. The US economy continues to recover at a steady pace, led by positive consumption and employment indicators.

Consumption conditions have continued to improve.

Retail sales rose 0.3 percent month-on-month in October, and the University of Michigan Consumer Sentiment Index posted 88.8 in November, the highest since 2007.

Although industrial production fell 0.1 percent in October, business sentiment remains positive, with the ISM Manufacturing Index standing at 58.7 in November.

80.0 (Mar 2014) > 84.1 (Apr) > 81.9 (May) > 82.5 (Jun) >

ISM Manufacturing Index (base=50)

Conference Board Consumer Confidence Index (1985=100)

53.7 (Mar 2014) > 54.9 (Apr) > 55.4 (May) > 55.3 (Jun) >

83.9 (Mar 2014) > 81.7 (Apr) > 82.2 (May) > 86.4 (Jun) >

57.1 (Jul) > 59.0 (Aug) > 56.6 (Sep) > 59.0 (Oct) > 58.7 (Nov)

90.3 (Jul) > 93.4 (Aug) > 89.0 (Sep) > 94.1 (Oct) > 88.7 (Nov)

University of Michigan Consumer Sentiment Index (1966=100) 81.8 (Jul) > 82.5 (Aug) > 84.6 (Sep) > 86.9 (Oct) > 88.8 (Nov)

US GDP growth and industrial production Sources: US Department of Commerce, Federal Reserve Board 10 8

(%)

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

2005.Q1

2006.Q1

GDP (q-o-q, annualized rate)

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

Industrial production (q-o-q)

Home price growth is decelerating, while both new home sales and existing home sales continue to rise at a modest pace.

The unemployment rate in November was unchanged at 5.8 percent, while nonfarm payrolls were up 312,000.

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

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

-0.1 (Jan 2014) >

0.0 (Feb) >

0.9 (Mar) >

1.2 (Apr) >

1.1

203 (Mar 2014) > 304 (Apr) > 229 (May) > 267 (Jun) > 243

(May) > 1.0 (Jun) > 0.6 (Jul) > 0.2 (Aug) > 0.0 (Sep)

(Jul) > 203 (Aug) > 271 (Sep) > 243 (Oct) > 321 (Nov)

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

Unemployment rate (m-o-m, %)

3.4 (Jan 2014) > -5.5 (Feb) > -6.7 (Mar) > 2.5 (Apr) > 10.9

6.6 (Jan 2014) > 6.7 (Feb) > 6.7 (Mar) > 6.3 (Apr) > 6.3

(May) > -10.7 (Jun) > -2.4 (Jul) > 13.5 (Aug) > 0.4 (Sep) >

(May) > 6.1 (Jun) > 6.2 (Jul) > 6.1 (Aug) > 5.9 (Sep) > 5.8

0.7 (Oct)

(Oct) > 5.8 (Nov)

5

US nonfarm payroll growth and unemployment rate Source: US Department of Labor 12

(%)

(thousands)

600 10 400 200

8

0 6 -200 -400

4

-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

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

Q1

2013 Q2

Q3

Q4

Q1

Q2

2014¹ Q3 Sep

Oct

Nov

2.7 3.6 1.5 7.8 1.0 1.5 0.7 7.7 1.7

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

4.6 2.5 9.7 8.8 1.4 2.3 5.7 6.2 2.1

3.9 2.2 7.1 2.7 0.8 1.0 5.3 6.1 1.8

-0.1 0.3 1.5 5.8 1.7

5.8 -

0.8 -0.3 2.6 5.9 1.7

The Green Book

800

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

China The Chinese economy continues to show sluggish growth. Consumption and investment remain poor, while exports also slowed.

The People’s Bank of China cut interest rates on November 21, lowering the deposit rate (1-year) from 3.00 percent to 2.75 percent and the lending rate (1-year) from 6.00 percent to 5.60 percent.

Manufacturing PMI (base=50) 50.2 (Feb 2014) > 50.3 (Mar) > 50.4 (Apr) > 50.8 (May) > 51.0 (Jun) > 51.7 (Jul) > 51.1 (Aug) > 51.1 (Sep) > 50.8 (Oct)

(Percentage change from same period in previous year)

2012¹ Annual Annual

6 Real GDP

Q1

2013¹ Q2

Q3

Q4

Q1

Q2

2014¹ Q3

Sep

Oct

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

7.7

7.7

7.7

7.5

7.8

7.7

7.4

7.5

7.3

-

-

Industrial production

10.0

9.7

9.5

9.1

10.1

10.0

8.7

8.9

8.0

8.0

8.4

Fixed asset investment (accumulated)

20.6

19.6

20.9

20.1

20.2

19.6

17.6

17.3

15.7

15.7

15.5

Retail sales

14.3

13.1

12.4

13.0

13.3

13.5

12.0

12.3

11.9

11.6

11.5

Exports

8.3

8.6

18.9

4.2

4.0

7.5

-4.7

5.0

1.2

15.3

11.6

Consumer prices²

2.6

2.6

2.4

2.4

2.8

2.9

2.3

2.2

2.0

1.6

4.6

Producer prices²

-1.7

-1.9

-1.7

-2.7

-1.7

-1.4

-2.0

-1.5

-1.3

-1.8

-2.2

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

(%)

(%)

70

16

60

14

50

12

40

10

30

8

20

6

10

4

0

2004.Q1

2005.Q1

GDP (y-o-y, left)

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

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

Japan The Japanese economy contracted 0.5 percent quarteron-quarter in the third quarter of 2014, falling short of market expectations of a 0.5 percent growth. Production and consumption slowed in October.

On November 18, Japanese Prime Minister Shinzo Abe put off the second consumption tax hike (8% > 10%) that was scheduled on October 2015.

(Percentage change from previous period)

2012¹ Annual Annual

Q3

Q4

Q1

1.5

0.7

0.4

-0.4

1.4

Q2

2014¹ Q3

Sep

Oct

-1.7

-0.5

-

-

1.8

1.6

Industrial production

0.2

-0.6

0.5

1.6

1.7

1.8

3.0

-3.8

-1.9

2.9

0.2

Retail sales

1.5

1.2

0.7

0.7

0.3

1.4

3.9

-7.0

3.5

2.8

-1.4

Exports (y-o-y)

-2.6

9.7

1.5

7.1

12.8

17.4

6.6

0.1

3.2

6.9

9.6

Consumer prices (y-o-y)

-0.0

0.4

-0.6

-0.3

0.9

1.4

1.5

3.6

3.3

3.2

2.9

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 2004.Q1

2005.Q1

GDP (q-o-q, left)

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

Industrial production (q-o-q, right)

7 The Green Book

Real GDP

Q1

2013¹ Q2

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

Eurozone The eurozone economy grew 0.2 percent quarter-on-quarter in the third quarter of 2014, improving slightly from the previous period, but the growth momentum remains weak, concerns over deflation linger, and unemployment rates remain high.

Manufacturing PMI (base=50) 53.0 (Mar 2014) > 53.4 (Apr) > 52.2 (May) > 51.8 (Jun) > 51.8 (Jul) > 50.7 (Aug) > 50.3 (Sep) > 50.6 (Oct) > 50.1 (Nov)

The European Central Bank (ECB) left its benchmark interest rate unchanged in December, and lowered the eurozone’s growth forcast for 2015 from 1.6 percent to 1.0 percent.

8

(Percentage change from previous period)

2012 Annual Annual

Q1

2013 Q2

Q3

Q4

Q1

Q2

2014¹ Q3 Sep

Oct

Nov

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

Real GDP

-0.7

-0.4

-0.4

0.3

0.2

0.2

0.3

0.1

0.2

-

-

-

Industrial production

-2.4

-0.7

0.2

0.6

0.0

0.6

0.2

0.0

-0.5

0.6

-

-

Retail sales

-1.7

-0.8

0.0

0.1

0.4

-0.1

0.6

0.4

0.1

-1.2

0.4

-

Exports (y-o-y)

7.6

1.0

1.0

1.7

0.2

1.0

1.2

0.7

2.9

8.5

-

-

Consumer prices (y-o-y)

2.5

1.4

1.9

1.4

1.3

0.8

0.7

0.6

0.4

0.3

0.4

0.3

1. Preliminary Sources: Eurostat, Bloomberg

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

(%)

(%)

2

10 8 6 4

1

2 0

0

-2 -1

-4 -6

-2

-8

-3 2004.Q1

-10 2005.Q1

GDP (q-o-q, left)

2006.Q1

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

Industrial production (q-o-q, right)

2. Private consumption

Private consumption in the third quarter of 2014 (preliminary GDP) rose 1.0 percent compared to the previous quarter and 1.5 percent compared to a year ago.

(Percentage change from previous period)

2012 Q1 Q2

Q3

Q4

Annual

Q1

2013¹ Q2

Q3

Q4

Q1

2014¹ Q2

Q3

1.9

0.8

0.2

1.2

0.4

2.0

-0.1

0.7

1.0

0.6

0.2

-0.3

1.0

-

1.7

0.7

2.6

2.7

-

1.7

2.1

2.1

2.2

2.5

1.5

1.5

Annual Private consumption² (y-o-y) 1. Preliminary 2. National accounts Source: The Bank of Korea

Private consumption

9

Source: The Bank of Korea (national accounts) 12

(%)

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 October declined 0.4 percent compared to the previous month as declines in durable goods (down 6.2%) and semi-durable goods (down 2.8%) offset gains in nondurable goods (up 4.2%). Compared to a year ago, retail sales fell 0.3 percent.

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

(%)

10 5 0 -5 -10 2004.1

2005.1

2006.1

Retail sales (m-o-m)

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Retail sales (y-o-y)

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

10

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

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

(Percentage change from previous period)

Annual

2012 Q3

Q4

Annual

Q1

2013 Q2

Q3

Q4

Q1

Q2

2014¹ Q3 Sep¹

Oct¹

Retail sales

-

1.4

-0.1

-

-1.0

0.9

0.8

0.3

0.3

-0.5

1.4

-3.2

-0.4

(y-o-y)

2.4

2.7

2.5

0.8

0.3

1.2

0.7

1.2

2.5

0.7

1.4

1.6

-0.3

- Durable goods²

5.3

3.2

2.1

0.3

-4.1

1.8

-0.3

0.2

4.4

-1.1

2.2

1.7

-6.2

· Automobiles

2.4

-4.4

12.0

2.1

-7.2

2.2

2.1

-2.1

12.0

4.6

0.5

2.1

-4.1

-0.4

-0.1

1.1

2.0

1.4

-0.4

0.9

-0.8

-1.5

-1.3

4.8

-4.1

-2.8

2.0

1.3

-1.8

0.6

-0.6

1.3

1.5

0.8

-1.0

0.2

-0.4

-5.6

4.2

- Semi-durable goods³ - Nondurable goods

4

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

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

Source: Statistics Korea

Retail sales will recover in November, led by durable goods sales, due to a rise in cellphone service transfer sales and automobile sales.

Cellphone service transfers surged month-on-month as new cellphone sales rose.

Cellphone service transfer sales (thousands, Korea Telecommunications Operators Association) 398 (Apr 2014) > 890 (May) > 847 (Jun) > 644 (Jul) > 523 (Aug) > 626 (Sep) > 375 (Oct) > 550 (Nov)

Domestic sales of cars grew faster due to the release of new models. Sales at department stores and large discount stores continued to fall, while credit card use and gasoline sales continued to rise.

(y-o-y, %)

2014 Apr

May

Jun

Jul

Aug

Sep

Oct

5.2

3.8

5.2

5.1

8.6

5.3

7.5

5.3

Department store sales

-1.4

0.8

-4.6

2.0

10.5

-6.3

-2.2

-5.6

Large discount store sales

-4.1

1.2

-5.9

-4.6

3.2

-10.1

-0.9

-3.9

Domestic sales of gasoline

-0.9

2.5

2.2

0.6

-4.5

0.6

2.0

0.4

Domestic sales of cars

10.1

3.9

7.5

0.7

-4.8

10.4

2.1

7.0

Credit card use

Nov

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 November data)

3. Facility investment

Facility investment (preliminary GDP) fell 0.5 percent quarter-on-quarter but rose 4.3 percent year-onyear in the third quarter of 2014.

11

(Percentage change from previous quarter)

Facility investment²

0.1

-1.5

Q1

2013¹ Q2

Q3

Q4

Q1¹

2014¹ Q2¹

Q3¹

1.5

1.0

2.7

5.6

-1.9

1.1

-0.5 4.3

(y-o-y)

-

-

-12.7

-3.9

1.5

10.9

7.3

7.7

- Machinery

0.3

-3.5

-2.6

4.4

6.5

3.7

-4.9

0.2

2.6

-0.4

4.0

11.3

-6.4

-6.5

10.7

5.5

3.1

-7.0

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

Facility investment Source: The Bank of Korea (national accounts) 40

(%)

30 20 10 0 -10 -20 -30 2004.Q1 2005.Q1

2006.Q1

Facility investment (q-o-q)

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

Facility investment (y-o-y)

The facility investment index in October fell 4.6 percent month-on-month as both machinery investment and transportation equipment investment declined. The index was down 8.8 percent year-on-year.

The Green Book

2012 Annual Annual¹

T h e G r e e n B o o k : Current Economic Trends (Percentage change from previous quarter)

2012 Annual Annual Facility investment index

Q1

2013 Q2

Q3

Q4

Q1

Q2

2014ยน Q3ยน

Sepยน

Octยน

-2.8

-1.3

-3.1

1.1

5.0

5.9

-5.2

2.1

-0.9

13.3

-4.6

-

-

-13.1

-4.0

2.7

10.4

5.9

6.2

1.5

12.8

-8.8

- Machinery

-2.7

-2.6

-3.5

2.9

4.5

7.3

-8.6

1.5

-0.6

12.6

-0.7

- Transportation equipment

-3.0

2.3

-2.0

-4.0

6.4

2.5

4.7

3.4

-2.1

14.8

-13.9

(y-o-y)

1. Preliminary Source: Statistics Korea

Facility investment by type Source: The Bank of Korea (national accounts) 50 40

(y-o-y, %)

30

12

20 10 0

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

-10 -20 -30 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

Facility investment is likely to improve, considering strong capital goods imports and improving business sentiment.

Business survey index for manufacturing sector (Bank of Korea) 85 (Mar 2014) > 86 (Apr) > 86 (May) > 81 (Jun) >78 (Jul) > 75 (Aug) > 74 (Sep) > 78 (Oct) > 74 (Nov) > 75 (Dec) Capital goods import growth (y-o-y, %, Ministry of Trade, Industry & Energy) -0.2 (May 2014) > 5.9 (Jun) > 4.7 (Jul) > -8.0 (Aug) > 8.4 (Sep) > -9.2 (Oct) > 8.2 (Nov 1-20)

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

(trillion won)

(y-o-y, %)

9

70 60 50

8

40 30

7

20

6

10 0

5

-10

4

-20 -30

3

-40

2 2004.Q1

2005.Q1

2006.Q1

Machinery orders (left)

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

Machinery imports (right)

-50

(Percentage change from same period in previous year)

2012 Annual Annual Domestic machinery orders

-13.9

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

6.7

2013 Q2

Q1 -11.4

Q3

Q4

Q1

Q2

2014¹ Q3¹ Sep¹

Oct¹

4.4

50.2

-24.1

8.8

2.2

32.4

17.9

-6.9

27.7

-2.8 -9.6

-

-

6.8

3.9

-Public

-11.0

20.6

-47.0

94.2

-Private

-14.2

5.2

-6.1

4.0

38.2 -55.9

-9.7 129.7 184.6 -45.0 418.5 3.8

22.1

4.1

15.3

9.6

2.3

10.6

-73.2

8.6

15.6

-2.8

Machinery imports

-3.0

6.5

-11.8

-2.1

6.8

13.2

2.4 11.8

1.6

12.6

-13.7

Average manufacturing operation ratio

78.5

76.2

77.3

75.9

75.1

76.6

77.2 76.3

75.8

75.1

73.5

Facility investment adjustment pressure²

-0.7

-1.4

-2.6

-1.6

-1.7

0.1

-0.6 -0.9

-0.3

0.5

-4.9

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 (preliminary GDP) in the third quarter of 2014 rose 2.5 percent quarter-onquarter and 2.6 percent year-on-year.

(Percentage change from previous quarter)

Construction investment² (y-o-y)

2012¹ Annual

Annual

Q1

2013¹ Q2

Q3

Q4

Q1¹

2014¹ Q2¹

-3.9

6.7

6.5

4.6

0.2

-5.2

5.1

0.4

2.5

-

-

1.9

9.8

8.8

5.4

4.3

0.2

2.6

Q3¹

- Building construction

-1.6

8.8

5.4

7.2

0.5

-4.0

5.1

2.3

3.3

- Civil engineering works

-7.1

3.7

8.1

1.0

-0.1

-6.9

5.1

-2.5

1.3

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)

2007.Q1

2008.Q1

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

14.1Q

Construction investment (y-o-y)

The Green Book

4. Construction investment

T h e G r e e n B o o k : Current Economic Trends The value of construction completed (constant) in October rose 0.2 percent month-on-month as declines in civil engineering works were offset by gains in building construction. The index fell 5.7 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 Q3¹ -3.2 -1.9 -5.4 0.7

Q2 0.2 0.1 2.9 -4.1

Sep¹ -5.8 -3.9 -6.5 -4.7

Oct¹ 0.2 -5.7 1.9 -2.6

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

2013.Q1

Residential buildings

Building construction

2014.Q1

Civil engineering works

Construction investment is expected to decline, led by an increase in unsold houses and a decrease in new apartment supplies.

Unsold houses (thousands, Ministry of Land, Infrastructure and Transport) 52 (Feb 2014) > 48 (Mar) > 46 (Apr) > 49 (May) > 50 (Jun) > 51 (Jul) > 45 (Aug) > 39 (Sep) > 40 (Oct) New apartment supplies (thousands, Ministry of Land, Infrastructure and Transport) 11 (Feb 2014) > 24 (Mar) > 39 (Apr) > 39 (May) > 29 (Jun) > 18 (Jul) > 23 (Aug) > 33 (Sep) > 64 (Oct) > 37 (Nov) (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

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

2013 Q2 Q3 -29.5 -10.6 0.3 16.8 -29.6 -10.8 -29.4 -10.0 -14.6 -3.4

Q4 22.4 2.9 17.9 33.4 -0.2

Q1 Q2 15.5 26.1 -1.4 10.5 10.7 47.0 24.4 -11.2 18.4 21.6

2014¹ Q3¹ Sep¹ Oct¹ 45.6 37.9 2.2 31.7 -25.7 -20.8 64.7 56.3 13.8 -4.2 0.9 -21.8 14.7 7.9 15.2

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, %) 13.3 (steel), -3.8 (vessels), 16.7 (semiconductors), -5.5 (automobiles), -21.6 (petroleum products), -4.3 (mobile phones)

Exports in November decreased 1.9 percent (preliminary) year-on-year to US $46.99 billion.

Exports decreased, led by petroleum products and mobile phones, due to fewer days worked (-1 day), low oil prices and intensifying competition.

By item, semiconductor and steel exports surged, while mobile phone, automobile and petroleum product exports declined. By region, shipments to the US continued to rise, while shipments to the EU and Japan continued to fall.

Export growth by region (y-o-y, %) 20.8 (US), -6.7 (EU), -24.4 (Japan), -6.6 (ASEAN countries), -3.2 (China)

Average daily exports, an indicator adjusted to days worked, was up 2.4 percent year-on-year, posting US $2.09 billion in November.

Average daily export growth (y-o-y, %) -3.3 (Feb 2014) > 1.5 (Mar) > 8.9 (Apr) > 5.4 (May) > 4.9 (Jun) > 5.2 (Jul) > 4.1 (Aug) > 1.3 (Sep) > 2.5 (Oct) > 2.4 (Nov)

(US $ billion)

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

Q1

Q2

Q3

Q4

559.63 135.32 141.16 136.79 146.37

Nov

Q1

Q2

2014 Q3

47.90 137.55 145.68 141.87

Oct

Novยน

51.64

46.99

2.1

0.3

0.7

2.8

4.7

0.2

1.7

3.2

3.7

2.3

-1.9

2.05

2.02

2.06

2.00

2.11

2.04

2.07

2.19

2.07

2.25

2.09

The Green Book

5. Exports and Imports

15

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 November fell 4.0 percent (preliminary) year-on-year to US $41.38 billion.

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

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

Import growth by category (y-o-y, %) -10.8 (commodities), 7.9 (capital goods), 2.9 (consumer goods) (US $ billion)

2013 Annual Imports

Q1

Q2

Q3

Q4

515.58 129.73 126.76 126.03 133.06

Nov

Q1

Q2

2014 Q3

43.11 132.34 130.82 133.05

Oct

Novยน

44.25

41.38

(y-o-y, %)

-0.8

-2.9

-2.8

0.3

2.5

-0.6

2.0

3.2

5.6

-3.0

-4.0

Average daily imports

1.89

1.94

1.85

1.84

1.91

2.04

1.99

1.97

1.94

1.92

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) 100 80

(y-o-y, %)

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

2005.1

Import growth rate

2006.1

2007.1

2008.1

2009.1

2010.1

Commodities

2011.1

2012.1

2013.1

2014.1

Capital goods

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)

Annual

Q1

Q2

2013 Q3

Q4

Nov

Q1

Q2

2014 Q3

Oct

Novยน

44.05

5.59

14.40

10.76

13.30

4.78

5.21

14.88

8.84

7.38

5.61

Trade balance 1. Preliminary Source: Korea Customs Service

6. Mining and manufacturing production Mining and manufacturing production declined 1.6 percent month-on-month in October, as gains in automobiles and chemical products were offset by declines in semiconductors & par t s and audio -v isual communications equipment. Compared to the same period in the previous year, the index was down 3.2 percent.

Compared to the previous month, production of automobiles (up 5.3%) and chemical products (up 0.4%) rose, while production of audio-visual

communications equipment (down 7.6%) , electrical equipment (down 6.4%) , primary metals (down 3.1%) and semiconductors & parts (down 2.4%) declined.

Compared to a year ago, production of mechanical equipment (up 4.4%) , refined petroleum (up 5.8%) and primar y metals (up 2.8%) rose, while automobiles (dow n 10.5%) , audio-v isual communications equipment (down 17.0%) and semiconductors & parts (down 4.1%) declined.

The Green Book

The trade balance (preliminary) in November remained in the black for the 34th consecutive month, posting a surplus of US $5.61 billion.

17

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

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

Industrial production (m-o-m)

2014.1

Industrial production (y-o-y)

18

(Percentage change from previous period)

Annual¹ Q1

2013 Q2 Q3

Q4

Oct

Q1

Q2

2014¹ Q3¹ Sep¹ Oct¹

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

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

-

-0.5 -0.9

0.1

1.9

2.1

0.3 -0.9 -0.2

0.0 -1.6

(y-o-y)

0.3

-0.8

0.0

0.2

1.7

3.6

0.7

1.9 -3.2

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

-

-0.4 -1.0

0.0

2.1

2.2

0.4 -1.1 -0.2 -0.2 -1.8

0.3

-0.8

0.1

1.8

3.6

0.6

0.4

-0.3 -0.6 -0.1

1.7

1.9 -0.1 -0.6 -0.6 -0.2 -1.7

-1.7 -1.1

1.6

1.7

3.0

1.6 -0.2 -2.0

1.6

0.5 -0.1 -0.8 -0.3 -0.7 -1.3

2.4

0.5 -0.5 -0.2

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

-1.4 2.3

Inventory³

5.0

Manufacturing Average operation ratio (%) activity Production capacity 4

76.2

0.0

-0.6 -2.1

5.7

0.3 0.3

1.1 1.2

0.0 -0.3 -0.9 1.7

2.0 -3.4 0.3 -1.9 0.8

0.0

77.3 75.9 75.1 76.5 76.2 77.2 76.3 75.8 75.1 73.5

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

1.2

1.5

1.5

1.5

Source: Statistics Korea

The manufacturing inventory-shipment ratio rose 2.2 percentage points month-on-month to 126.1 percent as inventories remained unchanged and shipments fell 1.7 percent.

Inventories of primary metals (up 3.5%) , chemical products (up 4.6%) and processed metals (up 4.3%) rose, while mechanical equipment (down 5.3%), automobiles (down 4.5%) and semiconductors & parts (down 1.6%) declined.

Shipments of automobiles (up 0.7%), chemical products (up 0.6%) and beverages (up 3.5%) rose, while primary metals (down 3.1%), audio-visual communications equipment (down 7.3%) and semiconductors & parts (down 1.6%) fell.

The average operation ratio of the manufacturing sector fell 1.6 percentage points month-on-month to 73.5 percent.

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

(m-o-m, %)

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

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

Shipment growth

2014.1

Inventory growth

19

Average manufacturing operation ratio Source: Statistics Korea (industrial activity trends) 100

The Green Book

(%)

90 80 70 60 50

2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Mining and manufacturing production will recover in November as auto workers ended strikes, but the high inventory-shipment ratio may hamper the recovery momentum.

7. Service sector activity Service output in October rose 0.8 percent month-on-month, as declines in publishing & communications services were offset by gains in financial & insurance services and real estate & renting. Compared to the same period of the previous year, service output increased 2.6 percent.

Service output rose, led by transportation services (up 0.9%, m-o-m) , financial & insurance services (up 2.0%, m-o-m), real estate & renting (up 3.4%, m-o-m), and professional, scientific & technical services (up 7.8%, m-o-m).

Wholesale & retail (down 0.5%, m-o-m) fell due to sluggish department store sales, while publishing & communications services (down 1.9%, m-o-m) and hotels & restaurants (down 1.5%, m-o-m) declined after rising the previous month.

T h e G r e e n B o o k : Current Economic Trends Service sector activity Source: Statistics Korea (industrial activity trends) 15

(%)

10

5

0

-5 -10 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

Service sector activity (m-o-m)

2013.1

2014.1

Service sector activity (y-o-y)

20 Wholesale & retail E c o n o m i c B u l le t i n

Statistics Korea (industrial activity trends) 15

(%)

10

5

0

-5

-10 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

Wholesale & retail (m-o-m)

2013.1

2014.1

Wholesale & retail (y-o-y)

October 2014 service output by business Source: Statistics Korea (industrial activity trends) 12 10

(y-o-y, %)

Financial & insurance services

Professional, scientific & technical services

8 6 4

Transportation services Total index

2

Sewerage & waste management Education services

Publishing & communications services

Entertainment, cultural & sports services

0 -2 -4 -6 -8

Wholesale & retail

Hotels & restaurants

Real estate & renting

Business services

Health & social welfare services

Membership organizations & personal services

(Percentage change from previous period)

2012 2013 Weight Annual Annual Q1 Q2

Q3

Q4

Q1

Q2

Service activity index

100.0

1.6

0.2

0.9

0.5

0.0

- Wholesale & retail

21.6

0.8

0.1 -0.1

0.6

0.1 -0.4 -0.2 -0.6 -0.5

- Transportation services

8.5

1.2

1.1

0.7

0.1 -1.0

0.6

1.1 -0.3

1.1

0.4

- Hotels & restaurants

7.2 -1.2

0.4

0.1

0.6

2.7 -0.9 -1.6 -2.1

5.9

4.3 -1.5

- Publishing & communications services

8.4

3.0

1.9

0.6 -1.0

0.9

2.0 -1.9

14.7

2.8

- Financial & insurance services

1.4

0.2

-0.2 -0.8

0.4

2014ยน Q3 Sepยน Octยน 1.2

0.2

3.4 -2.0

0.8

0.5

0.5 -0.1 -1.1 -0.5

0.6

1.4

1.6 -1.0

2.7

0.8

0.9

2.0

- Real estate & renting

5.3 -4.8

2.5 -2.2

7.4 -3.6

3.6 -3.2

7.6 -1.6

3.4

3.4

- Professional, scientific & technical services

5.6

3.7

3.3

0.2

4.9 -2.9

0.7

0.4

3.0 -2.6 -0.9

7.8

- Business services

3.3

3.5

2.2

1.6 -0.4

1.6

0.4

1.6 -0.5

0.7

- Education services

10.9

0.9

0.8

0.8 -1.0

1.2

0.7

1.1 -2.3

1.7 -3.5

- Healthcare & social welfare services

7.5

6.7

5.0

0.8

1.1

2.5

1.6

1.5

0.4

1.9

2.0 -0.1

- Entertainment, cultural & sports services

2.9

2.8

-0.5

1.7

0.6

0.2 -0.2

1.4 -6.8

8.0

7.8 -5.3

- Membership organizations & personal services

3.6 -1.4

5.3

3.1 -0.7

3.5

0.2

0.1 -3.5

3.5 -2.2

3.4

- Sewerage & waste management

0.6 -0.6

-0.4

0.5

0.9

1.2

0.2 -1.4

1.9 -1.6

3.1

2.0

1. Preliminary Source: Statistics Korea

Service output in November will be affected by positive factors, such as the improving stock market and a rise in mobile phone and automobile sales, and also by negative factors, such as a decline in sales at large discount stores.

Average daily stock transactions (trillion won) 5.5 (Jan 2014) > 5.4 (Feb) > 5.6 (Mar) > 5.6 (Apr) > 5.5 (May) > 5.4 (Jun) > 6.0 (Jul) > 6.3 (Aug) > 6.6 (Sep) > 6.8 (Oct) > 6.7 (Nov)

8. Employment The number of workers on payroll in October increased by 406,000 from a year earlier to 25,950,000 and the employment rate rose 0.4 percentage points to 60.9 percent.

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

By employment status, regular workers continued to lead employment growth, while temporary and daily workers increased at a slower pace compared to the previous month. Self-employed workers increased for the third consecutive month.

21 The Green Book

0.6

0.3 -0.4

T h e G r e e n B o o k : Current Economic Trends Number of persons employed and employment growth Source: Statistics Korea (employment trends) 1,200

(thousands)

(millions)

1,000

27 26 26

800

25

600

25 24

400

24 200

23 23

0

22

-200

22

-400 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

Employment growth (y-o-y, left)

2012.1

2013.1

21

2014.1

Number of employed (seasonally adjusted, right)

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

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

2013 Q2 Q3

Q4

Oct

Q1

Q2

2014 Q3 Sep Oct

23.83 24.24 24.68 25.07 24.18 25.33 25.41 25.35 25.55 24.91 25.79 25.93 25.92 25.95

Employment rate (%)

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

(Seasonally adjusted)

58.7 59.1 59.4 59.5 59.2 59.4 59.7 59.9 59.8 60.4 59.9 60.3 60.3 60.2

Employment growth (y-o-y, thousands)

323 415 437 386 257 324 421 541 476 729 464 517 451

406

(Excluding agriculture, forestry & fisheries)

405 440 451 394 266 351 402 556 461 717 518 638 579

552

- Manufacturing

191

63

14

142

33

-2

22

- Construction - Services

79 119 122

200 386 416 318 199 212 354 507 433 570 387 403 367

372

19 -15

12

57

-82

517 427 315 483 329 472 526 604 531 711 485 519 489

456

路 Regular workers

697 575 436 615 554 638 632 637 573 606 478 333 324

361

路 Temporary workers

-34

-96 -152 -169 -65

2

15

27

- Wage workers

-2

-9 -27

-9 -14

- Agriculture, forestry & fisheries

-78

-8

4

31 123 136 194 173

47

-14

-6

49

51

-25

-19 -64

26

12 -54 -121 -128 -146

-3

74 118 226 201

147

3 -42 -35 -39

路 Daily workers

-146

-70 -120

-37 -73

31 -111 -40 -37

-51

- Nonwage workers

-194

-11 121

-97 -71 -148 -105 -63 -55

19 -22

-3 -38

-50

路 Self-employed workers

-118

1 124

-67 -28 -104 -83 -54 -66

-7 -14

19

18

17

- Male

181 238 234 186 123 179 179 262 187 373 228 268 222

202

- Female

142 177 203 200 135 145 242 279 289 357 236 249 229

203

- 15 to 29

-43

-35

-36

-50 -117 -88 -41

- 30 to 39

-4

-47

-31

-21 -15

- 40 to 49

29

57

11

- 50 to 59 - 60 or more

22

12

46

32

8 -34 -42 -78 -6

30

53

42

97

53 102

52

77

-6 -42

-7 -32

-23

99

15

34

27

0

294 291 270 254 196 254 279 285 288 323 227 215 206

169

47 149 222 181 181 156 187 200 191 218 192 192 198

183

Source: Statistics Korea

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

23 Employment by industry 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 69.6 69.7 69.6 69.5

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 7.1 7.0 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 16.8 16.7 16.8 16.8

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 6.2 6.2 6.2 6.2 0 4.4 4.7 5.6 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 7 8 9 10

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 5.0 5.0 4.9 4.9 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 22.1 22.4 22.2 22.1 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 6.0 5.8 6.1 6.2

60

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 20.1 19.7 19.8 19.7

40 20

45.4 45.4 44.9 44.3 44.0 44.4 44.4 45.1 45.2 45.1 45.2 46.2 46.9 47.3 47.0 46.3 46.2 46.1 46.4 46.8 46.7 46.5 46.9 47.8 48.3 48.2 47.8 47.3 47.1 47.2 46.8 47.0 47.1 47.2

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

7

8

Daily workers

9 10 11 12 2014.1 2

3

Temporary workers

4

5

6

7

8

9 10

Regular workers

The Green Book

Source: Statistics Korea (employment trends)

T h e G r e e n B o o k : Current Economic Trends The number of unemployed persons in October increased by 135,000 year-on-year to 858,000, and the unemployment rate rose 0.4 percentage points to 3.2 percent. The unemployment rate rose in all age groups.

Unemployment rate Source: Statistics Korea (employment trends) 6

(%)

5

4

24

3

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

2 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

Original data

Seasonally adjusted rate

2010 2011 2012 Annual Annual Annual Annual Q1 Number of unemployed (thousands) Unemployment growth (y-o-y, thousands)

2014.1

2013 Q2 Q3 Q4 Oct

Q1

2014 Q2 Q3 Sep Oct

920

855

820

807

907 812 777 733 724 1,031 977 884 849 858

31

-65

-35

-13

-40 -29

7

-7 -20

- Male

-7

-48

-26

-6

- Female

38

-17

-9

-7

-33

-9

11

6

125 165 107 129 135

11

-7

14

40

62

37

72

63

-4

18

-8

84 103

70

57

71

Unemployment rate (%)

3.7

3.4

3.2

3.1

3.6 3.1 3.0 2.8 2.8

4.0 3.7 3.3 3.2 3.2

(Seasonally adjusted)

3.7

3.4

3.2

3.1

3.2 3.1 3.1 3.0 3.0

3.5 3.7 3.5 3.5 3.5

-15 to 29

8.0

7.6

7.5

8.0

8.4 7.9 7.9 7.9 7.8

9.8 9.4 8.6 8.5 8.0

- 30 to 39

3.5

3.4

3.0

3.0

3.3 3.0 2.9 2.6 2.6

3.2 3.4 3.0 2.8 3.0

- 40 to 49

2.5

2.1

2.0

2.0

2.1 2.1 1.9 1.7 1.7

2.3 2.4 2.1 2.0 2.0

- 50 to 59

2.5

2.1

2.1

1.9

2.3 1.8 1.8 1.5 1.5

2.2 2.3 2.1 2.1 2.3

- 60 or more

2.8

2.6

2.4

1.8

3.4 1.6 1.2 1.4 1.3

4.4 1.9 1.5 1.5 1.8

Source: Statistics Korea

The economically inactive population in October was down 113,000 from a year earlier to 15,840,000, while the labor force participation rate rose 0.7 percentage points to 62.9 percent.

The number of those economically inactive due to old age (up 87,000, y-o-y) and disabilities (up 31,000, y-o-y) increased, while those due to education (down 66,000, y-o-y), childcare (down 50,000, y-o-y), housework (down 37,000, y-o-y) and rest (down 32,000, y-o-y) decreased.

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

(%)

64 63 62 61 60 59 58 57 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

2013 Q2 Q3

Q4

Oct

Q1

Q2

2014 Q3 Sep Oct

Economically inactive population (millions) 15.84 15.95 16.08 16.22 16.83 15.91 15.98 16.17 15.95 16.40 15.69 15.76 15.85 15.84 Labor force participation rate (%)

61.0 61.1 61.3 61.5 59.9 62.2 62.1 61.7 62.2 61.3 63.1 63.0 62.8 62.9

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

61.0 61.1 61.3 61.5 61.2 61.3 61.6 61.7 61.7 62.6 62.2 62.5 62.4 62.3 143

112

128

141

- Childcare

-125

-5

-2

1

0

- Housework

201

101

123

-3

143

- Education

12

-51

-12

77

118 147

88 -44 -22 -76 -68 -109 -74

- Old age

80

-45

148

54

154

7

32

21

21

98

87

-56

182

-53

-7 -106

44

12

21

61 -197 -90 -65 -64

-32

- Rest

336 242 10

78 -91 9 -14

6 -433 -226 -222 -163 -113 9 -29 -57 -41 -29

-50

36 -80 -112 -110 -230 -127 -99 -110

-37

81 113

91

-66

Source: Statistics Korea

9. Financial markets 9.1 Stock market The KOSPI in November rose 16.4 points to 1,981 points from 1,964 points in the previous month. The KOSPI, which had declined as additional quantitative easing from the Bank of Japan (BOJ) led to concerns over a weak yen, rebounded later in the month as expectations for the eurozone’s additional stimulus measures as well as the Chinese central bank’s interest rate cuts led to inflows of overseas funds.

The Green Book

2010 2011 2012 Annual Annual Annual Annual Q1

25

T h e G r e e n B o o k : Current Economic Trends Stock prices 2,400 2,200

(monthly average)

2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

KOSPI

KOSDAQ

26

(Closing rate)

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

Oct 2014

KOSPI Nov 2014

Changeยน

Oct 2014

KOSDAQ Nov 2014

Changeยน

Stock price index (points)

1,964.4

1,980.8

16.4 (0.8%)

558.7

545.1

-13.6 (-2.4%)

Market capitalization (trillion won)

1,176.1

1,216.3

40.2 (3.4%)

143.5

141.3

-2.2 (-1.5%) -0.2 (-8.7)

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

4.5

4.7

0.2 (4.4%)

2.3

2.1

35.2

34.7

-0.5 (-1.4%)

11.0

11.0

-

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

9.2 Exchange rate The dollar-won exchange rate in November rose 39.4 won to 1,107.9 won from 1,068.5 won at the end of October. The dollar-won exchange rate rose due to the strong dollar. The dollar gained as the Japanese government delayed the second sales tax hike, which made the yen further weaken.

The 100 yen-won exchange rate declined from 963.1 won in October to 937.2 won in November as the value of the yen continued to fall.

(Closing rate)

2008 Dec

2009 Dec

2010 Dec

2011 Dec

2012 Dec

2013 Dec

Oct

2014 Nov

Changeยน

Dollar-Won

1,259.5

1,164.5

1,134.8

1,151.8

1,070.6

1,055.4

1,068.5

1,107.9

-4.7

100 Yen-Won

1,396.8

1,264.5

1,393.6

1,481.2

1,238.3

1,002.3

963.1

937.2

6.9

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

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

Dollar-Won

2014.1

100 Yen-Won

27

9.3 Bond market Interest rates Source: The Bank of Korea 10 9

(monthly average, yearly, %)

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

Aug

2.01

2.51

3.29

2.77

2.52

2.24

Sep

2014 Oct

Nov

Changeš

2.24

1.97

1.99

2

CD (91 days)

2.88

2.80

3.55

2.89

2.66

2.40

2.35

2.14

2.13

-1

Treasury bonds (3 yrs)

4.44

3.38

3.34

2.82

2.86

2.51

2.30

2.14

2.07

-7

Corporate bonds (3 yrs)

5.56

4.27

4.21

3.29

3.29

2.88

2.68

2.49

2.39

-10

Treasury bonds (5 yrs)

4.98

4.08

3.46

2.97

3.23

2.74

2.50

2.29

2.23

-6

1. Basis point, changes from the previous month

The Green Book

3-year Treasury bond yields fell from 2.14 percent in October to 2.07 percent in November. Treasury bond yields fell due to deflation concerns and the Chinese central bank’s interest rate cuts.

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 September rose 7.1 percent from a year earlier. M2 grew slower compared to the previous month due to the deposit of Treasury bond repayment funds and a decrease in foreign capital inflows.

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

2009 Annual

2010 Annual

2011 Annual

2012 Annual

2013 Annual

Jul

Aug

2014 Sep

M1²

16.3

11.8

6.6

3.8

9.5

9.2

11.9

11.8

548.6

M2

10.3

8.7

4.2

5.2

4.8

6.5

7.6

7.1

2,037.6

Lf ³

7.9

8.2

5.3

7.8

6.9

6.9

7.3

7.1

2,759.4

2010.1

2011.1

Sep¹

1. Balance at end September 2014, trillion won

28

2. M1 excluding corporate MMFs and individual MMFs while including CMAs 3. Liquidity aggregates of financial institutions (mostly identical with M3)

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

Total money supply Source: The Bank of Korea 40

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

30

20

10

0

-10 -20 2004.1

2005.1

Reserve money

2006.1

2007.1

2008.1

2009.1

M1

Bank deposits grew in October, led by instant access deposits (3.9 trillion won > 3.2 trillion won) and time deposits (-0.7 trillion won > 1.7 trillion won) , as banks attracted corporate funds to raise their debt ratios.

2012.1

2013.1

2014.1

Lf

Asset management company (AMC) deposits surged, led by money market funds (MMF) (-0.5 trillion won > 10.0 trillion won) , as AMCs benefited from falling short-term market rates and also as financial institutions invested their short-term surplus funds.

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

2009 Dec

2010 Dec

2011 Dec

2012 Dec

2013 Dec

Jul

Aug

2014 Sep

Oct

Octš

Bank deposits

54.8

36.9

58.9

37.0

41.0

-8.8

7.8

3.7

7.3

1,217.7

AMC deposits

-27.6

-16.7

-16.6

18.8

17.7

11.5

5.4

2.7

21.8

387.7

1. Balance at end October 2014, trillion won

Deposits in financial institutions Source: The Bank of Korea 30

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

20

10

29

0

-20 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

10. Balance of payments Korea’s current account (preliminary) in October posted a surplus of US $9.01 billion, staying in the black for 32 consecutive months.

The goods account surplus expanded from US $7.51 billion to US $8.66 billion as export growth exceeded import growth.

Compared to the same period of the previous year, the current account surplus contracted by US $1.11 billion despite an expansion in the trade surplus, as the surplus in processing trade and intermediary trade contracted.

Import growth by category (y-o-y, %) -3.0 (total), -2.8 (commodities), -8.2 (capital goods), 9.0

Goods exports (US $ billion)

(consumer goods)

50.75 (Sep 2014) > 52.16 (Oct) Export growth by item (y-o-y, %) Goods imports (US $ billion)

2.3 (total), 34.4 (vessels), 11.5 (semiconductors), 6.8 (steel), 2.7

43.24 (Sep 2014) > 43.51 (Oct)

(petroleum products), -15.0 (automobiles), -15.4 (mobile phones)

The Green Book

-10

T h e G r e e n B o o k : Current Economic Trends The services account deficit contracted slightly from US $0.28 billion to US $0.25 billion. The travel account deficit shrunk, while the transportation and construction account surplus contracted.

Services account (US $ billion, September > October) -0.38 > -0.36 (manufacturing), 0.22 > 0.13 (transportation), -0.21 > -0.17 (travel), 1.11 > 0.92 (construction), -0.27 > 0.14 (intellectual property rights), -1.04 > -0.98 (other businesses)

The primary income account surplus expanded from US $0.61 billion to US $0.97 billion due to a decline in dividend payments, while the secondary income account deficit contracted from US $0.43 billion to US $0.36 billion.

Current account balance Source: The Bank of Korea (balance of payments trends) 12 10

30

(US$ billion)

8 6 4

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

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 Q2 Q3

Annual

Q1

Current account

81.15

12.61

22.35

- Goods balance

82.78

14.30

20.59

- Service balance

-6.50

-2.67

9.06

1.81

-4.19

-0.83

- Primary income balance - Secondary income balance

Q4

Oct

Q1

Q2

22.25

23.94 11.11

15.07

24.13

23.31

24.59

9.77

17.75

26.42

0.65

-2.08

-2.40

0.41

-3.62

1.66

2.35

3.24

1.34

1.91

-0.55

-1.32

-1.49

-0.40

-0.96

2014¹ Q3

Sep

Oct

22.45

7.41

9.01

21.68

7.51

8.66

-1.95

-1.02

-0.28

-0.25

1.33

3.14

0.61

0.97

-1.68

-1.35

-0.43

-0.36

1. Preliminary Source: The Bank of Korea

The capital and financial account (preliminary) in October posted a net outflow of US $6.80 billion.

Net outflows of direct investment contracted from US $2.15 billion to US $2.09 billion as foreign direct investment increased.

Capital & financial account balance (US $ billion) -6.92 (Feb 2014) > -5.78 (Mar) > -6.24 (Apr) > -8.13 (May) > -9.84 (Jun) > -5.93 (Jul) > -7.79 (Aug) > -8.76 (Sep) >

-6.80 (Oct)

Net outflows of portfolio investment contracted from US $3.52 billion to US $0.38 billion due to foreign investors’ net buying Korean shares.

Financial derivatives investment switched to a net outflow of US $0.57 billion from a net inflow of US $0.47 billion, while net outflows of other investment expanded from US $1.88 billion to US $4.01 billion as financial institutions increased loans and overseas deposits.

The current account is expected to continue posting a surplus in November, considering the trade surplus in November (US $5.61 billion) .

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

(US$ billion)

10 5

31

0 -5

-15 2004.1

2005.1

2006.1

Direct investment

2007.1

2008.1

2009.1

Portfolio investment

2010.1

2011.1

2012.1

2013.1

Financial derivatives

11. Prices and international commodity prices

2014.1

Capital & financial account

11.1 Prices Consumer prices fell 0.2 percent month-on-month in November, declining for the third consecutive month. Compared to the same month of the previous year, consumer prices rose 1.0 percent, down from 1.2 percent in October.

Consumer price inflation

(%)

Nov

2013 Dec

Jan

Feb

Mar

Apr

May

Month-on-Month

0.0

0.1

0.5

0.3

0.2

0.1

Year-on-Year

1.2

1.1

1.1

1.0

1.3

1.5

Source: Statistics Korea

2014 Jun Jul

Aug

Sep

Oct

Nov

0.2

-0.1

0.1

0.2

-0.1

-0.3

-0.2

1.7

1.7

1.6

1.4

1.1

1.2

1.0

The Green Book

-10

T h e G r e e n B o o k : Current Economic Trends Consumer price inflation Source: Statistics Korea (consumer price trends) 7

(%)

6 5 4 3 2 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)

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

Agricultural, livestock & fishery product prices were down 0.9 percent month-on-month (agricultural products down 2.6%, livestock products up 0.7%, fishery products up 1.0%), thanks to stable supply.

Price increases by item (m-o-m, %) zucchinis (46.7), green chilies (26.4), cucumbers (23.0), eggs (2.9), white radishes (-12.7), carrots (-30.9), Chinese cabbages (-31.9)

Manufactured product prices fell 0.2 percent from the previous month. Processed food prices rose 0.3 percent, but petroleum product prices fell 2.7 percent due to low international oil prices.

Price increases by item (m-o-m, %) ham (19.5), tableware (17.9), men’s suits (4.5), baby food (3.4), gasoline (-2.9), diesel (-3.2), blenders (-23.5)

Personal service prices fell 0.2 percent month-onmonth. Dining out expenses inched up 0.1 percent, while personal service prices excluding dining out costs declined 0.5 percent.

Price increases by item (m-o-m, %) crematory costs (2.0), job-training costs (1.0), domestic flight fares (-2.7), international flight fares (-4.0) domestic group tour expenses (-17.4), overseas group tour expenses (-6.0)

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

2011

2012

2013

Agricultural, livestock & fishery products

Manufactured products

Housing rents

Public services

Personal services

Public utilities

Consumer prices for basic necessities rose 0.7 percent year-on-year but fell 0.2 percent month-on-month.

Price increases for basic necessities (y-o-y, %) 1.0 (Apr 2014) > 1.4 (May) > 1.4 (Jun) > 1.4 (Jul) > 0.8 (Aug) > 0.6 (Sep) > 0.7 (Oct) > 0.7 (Nov)

Fresh food prices declined 5.2 percent year-on-year, led by vegetables (down 5.7%). Compared to the previous month, fresh food prices fell 2.6 percent.

Fresh food price increases (y-o-y, %) -12.0 (Apr 2014) > -9.2 (May) > -7.7 (Jun) > -8.3 (Jul) > -11.8 (Aug) > -8.6 (Sep) > -6.6 (Oct) > -5.2 (Nov)

Core consumer prices, which exclude oil and agricultural products, rose 1.6 percent year-on-year but were unchanged month-on-month.

Prices

33

Source: Statistics Korea (consumer price trends) 16

(y-o-y, %)

The Green Book

13 10 7 4 1 -2 -5 2004.1

2005.1

2006.1

2007.1

2008.1

Consumer price inflation

2009.1

2010.1

2011.1

2012.1

Core inflation

Core inflation and prices for basic necessities

2013.1

2014.1

Producer price inflation

(y-o-y, %)

2013 2014 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Consumer prices excluding oil and agricultural products 2.0 1.9 1.7 1.7 2.1 2.3 2.2 2.1 2.2 2.4 1.9 1.8

1.6

Consumer prices excluding food and energy

1.7 1.6 1.5 1.4 1.7 1.9 1.8 1.7 1.9 2.1 1.7 1.6

1.3

Consumer prices for basic necessities

0.5 0.5 0.6 0.4 0.8 1.0 1.4 1.4 1.4 0.8 0.6 0.7

0.7

Source: Statistics Korea

The expected annual inflation remained unchanged from the previous month at 2.7 percent, while import prices fell 7.4 percent year-on-year.

Expected inflation (%, over the next 12 months) 2.9 (Apr 2014) > 2.8 (May) > 2.8 (Jun) > 2.8 (Jul) > 2.8 (Aug) > 2.8 (Sep) > 2.7 (Oct) > 2.7 (Nov) Import price increases (y-o-y, %, won base) -7.0 (Apr) > -6.8 (May) > -8.8 (Jun) > -8.6 (Jul) > -9.9 (Aug) > -8.9 (Sep) > -7.4 (Oct)

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

11.2 International oil and commodity prices International oil prices declined in November due to slowdown concerns in major economies including the EU and Japan, and also due to oversupply fears resulting from the OPEC’s failure to agree on production cuts.

Dubai crude prices fell sharply following the OPEC’s November 27 meeting, where the group decided to leave the output ceiling unchanged at 30 million barrels per day. Dubai crude prices were also affected by the strong dollar, as well as concerns that the slowdown in major economies may weaken demand.

Dubai crude (US $/barrel) 84.0 (Nov 3) > 79.2 (Nov 11) > 75.1 (Nov 18) > 77.1 (Nov 25) > 69.1 (Nov 28)

34 (US $/barrel, period average)

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

2011 2012 2013 Annual Annual Annual Dec

Jan

Feb

Mar

Apr

2014 May Jun

Jul

Aug

Sep

Oct

Nov

Dubai crude

105.9

109.0

105.3

107.5 104.0 105.0 104.4 104.6 105.6 107.9 106.1 101.9 96.6

86.8

77.1

Brent crude

111.0

111.7

108.7

110.7 107.7 108.9 107.7 107.8 109.4 111.8 107.4 102.6 98.0

87.8

79.3

95.1

93.8

98.0

84.4

76.4

WTI crude

97.9

94.9 100.7 100.5 102.0 101.8 105.2 102.6

96.3 93.2

Source: Korea PDS

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

Dubai crude

2012.1

2013.1

2014.1

WTI

Domestic gasoline prices fell for the eighth consecutive month in November, as falling international oil prices were reflected with a time lag.

Gasoline prices (won/liter) 1,746.6 (1st week Nov) > 1,735.6 (2nd week) > 1,727.6 (3rd week) > 1,717.3 (4th week)

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

(thousand won/B)

($/B)

160

140

140

120

120

100

100

80

80

60

60

40

40

20

20

2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

Dubai crude (import prices, won, left)

2012.1

2013.1

2014.1

Dubai international prices (dollar, right)

35 (Won/liter, period average)

Jan

Feb

Mar

Apr

May

2014 Jun

Jul

Aug

Sep

Oct

Nov

Gasoline prices 1,929.3 1,985.8 1,924.5 1,881.1 1,886.4 1,880.7 1,880.8 1,875.9 1,869.5 1,861.7 1,856.7 1,842.0 1,817.1 1,781.1 1,730.2 Diesel prices 1,745.7 1,806.3 1,729.6 1,699.1 1,705.1 1,698.5 1,696.0 1,688.9 1,680.9 1,670.8 1,661.8 1,644.5 1,620.9 1,585.0 1,534.3 Source: Korea National Oil Corporation

International grain prices rose month-on-month in November due to the cold spell in major production areas, and also due to bargain hunting.

International grain price increases in November (m-o-m, %) soybeans (7.3), corn (6.8), wheat (6.0)

Nonferrous metal prices fell month-on-month as demand was expected to slow due to poor economic data in China and the eurozone. However, aluminum prices rose as brazil cut production due to high power costs and supply is expected to tighten next year.

Nonferrous metal price increases in November (m-o-m, %) aluminum (6.0), tin (0.3), zinc (-0.1), nickel (-0.4), copper (-0.6), lead (-0.7)

Reuters index*

(Period average)

2011 2012 2013 Annual Annual Annual Dec 3,062

3,006

2,774

2,642

Jan

Mar

Apr

May

2014 Jun

Jul

Aug

Sep

Oct

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

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

Feb

Nov 2,407

The Green Book

2011 2012 2013 Annual Annual Annual Dec

T h e G r e e n B o o k : Current Economic Trends International commodity prices Sources: Bloomberg (CRB), The Bank of Korea (Reuters Index) * CRB demonstrates a futures price index of 21 commodities listed on the US Commodity Transaction Market, including beans and other crops, crude oil and jewelry.

4000

470 430 390

3000

350 310

2000

270 1000

230 190

0

150

36

2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

CRB (left)

2014.1

Reuters index (right)

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

12. Real estate market 12.1 Housing market Nationwide apartment sales prices in November rose 0.2 percent month-on-month.

in areas excluding the Seoul metropolitan area rose 0.2 percent. Apartment prices in the five metropolitan cities and the eight provinces also rose 0.2 percent.

Apartment sales price increase in five metropolitan cities

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

(m-o-m, %) Busan (0.2), Daegu (0.6), Gwangju (0.1), Daejeon (0.1), Ulsan (0.2)

Nationwide apartment sales prices

Nationwide Seoul metropolitan area Seoul Gangnamš Gangbuk² Areas excluding the Seoul metropolitan area

6.4

15.1

3.1

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

(Percentage change from previous period)

2010 2011 2012 2013 Annual Annual Annual Annual Annual Apr 1.9 6.9 0.0 0.3 1.6 0.1 -1.7 0.5 -3.0 -1.1 1.4 0.0 -1.2 0.3 -2.9 -1.4 1.1 0.0 -1.0 0.3 -3.5 -1.1 1.2 -0.1 -1.4 0.3 -2.3 -1.7 1.1 0.1 1.7

1.7

0.1

May 0.0 -0.1 -0.1 -0.1 0.0

Jun 0.0 0.0 -0.1 -0.1 0.0

2014 Jul 0.0 0.0 0.0 0.0 -0.1

Aug 0.1 0.1 0.0 0.0 0.1

Sep 0.2 0.3 0.2 0.3 0.1

Oct 0.2 0.3 0.2 0.3 0.2

Nov 0.2 0.2 0.1 0.1 0.1

0.1

0.1

0.1

0.1

0.2

0.2

0.2

Apartment sales prices by region Source: Korea Appraisal Board 3.0

(m-o-m, %)

2.0

1.0

0.0

-1.0 2009.1

7

2010.1

7

2011.1

Nationwide

7

2012.1

7

2013.1

Seoul metropolitan area

7

2014.1

37

7

Areas excluding Seoul metropolitan area

Rental prices rose 0.4 percent in the Seoul metropolitan area, and were up 0.2 percent in regions excluding the Seoul metropolitan area. Rental prices rose 0.3 percent in Seoul, down from 0.4 percent in the previous month.

Apartment rental price increase in major districts in Seoul (m-o-m, %) Gangnam (0.2), Seocho (0.2), Songpa (0.1), Yangcheon (0.5), Nowon (0.6)

Nationwide apartment rental prices

(Percentage change from previous period)

2010 2011 2012 2013 Annual Annual Annual Annual Annual

Apr

May

Jun

2014 Jul

Aug

Sep

Oct

Nov

Nationwide

7.1

12.3

3.5

4.7

3.1

0.1

0.1

0.1

0.1

0.2

0.3

0.3

0.3

Seoul metropolitan area

6.3

11.0

2.1

6.2

4.4

0.1

0.0

0.1

0.2

0.2

0.5

0.4

0.4

Seoul

6.4

10.8

2.1

6.6

3.3

0.1

0.0

0.0

0.1

0.1

0.3

0.4

0.3

Gangnamš

7.6

11.1

2.4

6.7

3.0

-0.1 -0.1

0.0

0.1

0.2

0.3

0.4

0.3

Gangbuk²

5.1

10.6

1.8

6.4

3.5

0.2

0.1

0.1

0.1

0.1

0.3

0.4

0.3

Areas excluding the Seoul metropolitan area

9.2

14.5

4.6

3.3

2.0

0.2

0.1

0.1

0.1

0.1

0.2

0.2

0.2

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

The Green Book

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

T h e G r e e n B o o k : Current Economic Trends Apartment rental prices by region Source: Korea Appraisal Board 3.0

(m-o-m, %)

2.0

1.0

0.0

-1.0

-2.0

38

2009.1

7

2010.1

7

2001.1

Nationwide

7

2012.1

7

2013.1

Seoul metropolitan area

7

2014.1

7

Areas excluding Seoul metropolitan area

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

Apartment sales transactions in October increased 26.1 percent from 86,186 transactions in the previous month to 108,721 transactions, and were up 20.4 percent from a year earlier (90,281).

Apartment sales transactions

(Monthly average, thousands)

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

73

67

82

61

90

85

93

59

79

89

93

78

73

Jul

Aug Sep

Oct

77

76

109

86

Source: Ministry of Land, Infrastructure and Transport

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

(thousands)

140 120 100 80 60 40 20 0

2009.1

7

Nationwide

2010.1

7

2011.1

7

2012.1

Seoul metropolitan area

7

2013.1

7

2014.1

7

Areas excluding Seoul metropolitan area

12.2 Land market Nationwide land prices in October rose 0.20 percent month-on-month.

Land price growth accelerated in the Seoul metropolitan area (up 0.20%), which includes Seoul (up 0.29%) and Incheon (up 0.15%).

Land price increases in Seoul metropolitan area (m-o-m, %) 0.22 (Mar 2014) > 0.18 (Apr) > 0.15 (May) > 0.13 (Jun) > 0.15 (Jul) > 0.13 (Aug) > 0.19 (Sep) > 0.20 (Oct)

Land price growth also accelerated in areas excluding the Seoul metropolitan area (up 0.20%), which includes Busan (up 0.24%), Daegu (up 0.32%) and Daejeon (up 0.21%).

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

39

0.17 (Mar 2014) > 0.18 (Apr) > 0.15 (May) > 0.18 (Jun) > 0.20 (Jul) > 0.15 (Aug) > 0.18 (Sep) > 0.20 (Oct)

(Percentage change from previous period)

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

2013 Q2

Q3

Q4 Annual

2014 Q2 Aug

Q1

Sep

Oct

Nationwide

-0.31 0.96 1.05 1.17 0.87 1.14 0.21 0.37 0.10 0.46 1.63 0.45 0.48 0.14 0.19 0.20

Seoul

-1.00 1.40 0.53 0.97 0.33 1.21 0.10 0.41 0.08 0.61 2.28 0.69 0.59 0.19 0.29 0.29

Gyeonggi

-0.26 1.22 1.49 1.47 0.97 0.91 0.17 0.33 0.07 0.34 1.03 0.26 0.37 0.08 0.09 0.12

Incheon

1.37 1.99 1.43 0.66 0.36 0.87 0.21 0.37 0.07 0.23 1.11 0.37 0.25 0.12 0.13 0.15

Source: Korea Appraisal Board

Land prices by region Source: Korea Appraisal Board 15 12

(%)

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

1995

1996

National average

1997

1998

1999

2000

2001

2002

Metropolitan city

2003

2004

2005

2006

2007

City

2008

2009

2010

2011 2012

2013

County

The Green Book

Land prices by region

T h e G r e e n B o o k : Current Economic Trends There were 258,000 land transactions in October, up 20.8 percent from the previous month and 24.2 percent from 208,000 a year earlier.

Land transactions rose in Seoul (up 25.2%, m-o-m) , Incheon (up 27.3%, m-o-m) , Daegu (up 25.1%, m-o-m) , Sejong (up 66.6%, m-o-m) , South Gyeongsang Province (up 24.8%, m-o-m) and Jeju Province (up 24.6%, m-o-m).

Vacant land transactions, which accounted for 33.8 percent of the total land transactions, rose 17.2 percent month-on-month to 87,000 and were up 17.2 percent from 75,000 a year earlier.

Land transactions 2008

40

(Land lots, thousands)

2009

2010

2011

2012

2013

2014

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

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

208

203

187

208

170

187

201 236 183 205 227 233 207 199 219 204 214 258

Seoul

26

22

16

18

13

17

19

22

17

20

24

22

18

18

21

21

23

29

Gyeonggi

45

46

41

43

33

37

41

50

37

42

47

49

42

39

45

42

46

57

Incheon

13

10

8

10

8

8

9

9

7

10

10

11

9

9

8

9

10

13

1. Monthly average Source: Korea Land & Housing Corporation

Land transaction volume Source: Korea Appraisal Board 500,000

(thousand m²)

400,000

300,000

200,000

100,000

0 2004.1

2005.1

2006.1

Seoul metropolitan area

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

Areas excluding Seoul metropolitan area

13. Composite indices of business cycle indicators Industrial output in October rose 0.3 percent month-on-month and 0.1 percent year-on-year. Output fell in mining & manufacturing (down 1.6%, m-o-m) , but rose in services (up 0.8%, m-o-m) , construction (up 0.2%, m-o-m) and public administration (up 6.1%, m-o-m).

Index of all industry production Source: Statistics Korea (industrial activity trends) 20

(%)

41

15

10

The Green Book

5

0

-5

-10 -15 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

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

2013.1

2014.1

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

2014 Mar

Apr

May

Jun

Jul

Augยน

Sepยน

Octยน

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

0.7 2.7

-0.6 1.4

-1.0 -0.6

2.3 1.7

0.3 2.7

-0.6 0.5

-0.8 2.0

0.3 0.1

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

0.4

0.1

0.0

0.3

0.4

0.8

0.2

0.0

100.7 0.1

100.5 -0.2

100.1 -0.4

100.1 0.0

100.2 0.1

100.5 0.3

100.3 -0.2

100.0 -0.3

0.2

0.5

0.3

0.6

0.4

1.2

1.0

0.7

101.3 -0.2

101.4 0.1

101.3 -0.1

101.6 0.3

101.6 0.0

102.4 0.8

103.0 0.6

103.3 0.3

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

T h e G r e e n B o o k : Current Economic Trends The cyclical indicator of the coincident composite index fell 0.3 points month-on-month in October.

Among the components of the coincident composite index, service output, imports and nonfarm payroll employment rose, while mining & manufacturing production, the value of construction completed, retail sales and domestic shipments declined.

Components of the coincident composite index in October (m-o-m) service output (0.5%), imports (1.5%), nonfarm payroll employment (0.1%), mining & manufacturing production (-1.9%), value of construction completed (-1.7%), retail sales (-0.2%), domestic shipments (-1.7%)

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

42

(points)

100

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

90 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

The cyclical indicator of the leading composite index rose 0.3 points. Five components of the leading composite index, including the consumer expectations index and domestic shipments of machinery, declined, while four others, such as the ratio of export to import prices, international commodity prices and ratio of job opening to job seekers, rose.

2010.1

2011.1

2012.1

2013.1

2014.1

Components of the leading composite index in October (m-o-m) ratio of export to import prices (1.2%), international commodity prices (1.6%), ratio of job openings to job seekers (1.6%p), spreads between long & short term interest rates (0.04%p), indicator of inventory cycle (-0.6%p), consumer expectations index (-0.2p), domestic shipments of machinery (-1.3%), value of construction orders received (-0.9%), KOSPI (-1.3%)

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

(points)

100

90 2004.1

2005.1

2006.1

2007.1

2008.1

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

SU E

ASEAN-Republic of Korea Commemorative Summit

43 Featured Issue

Fe atu re d IS

Featured Issue

ASEAN-Republic of Korea Commemorative Summit The ASEAN-Republic of Korea Commemorative Summit was held in Busan on December 11-12 under the theme “Bringing Trust, Bringing Happiness”, in celebration of 25 years of dialogue between Korea and the ASEAN nations.

The ASEAN nations, as a group, are Korea’s second largest trade partner, with the trade volume totaling US $135 billion last year. The summit was an opportunity for Korea to reaffirm ties with the region and boost the KoreaASEAN strategic partnership.

44

Joint statement

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

At the end of the two-day summit, the leaders adopted a joint statement on the future vision of the Korea-ASEAN partnership. In the joint statement, the leaders assessed that Korea-ASEAN relations have deepened and broadened over the past 25 years since the establishment of dialogue relations in 1989, and noted the increase in trade volume and mutual investment over the years.

In order to strengthen cooperation, Korea and the ASEAN reaffirmed their commitment to promote dialogue between the two parties with the aim of having a friendly, mutually beneficial, meaningful and strategic partnership.

President Park Geun-hye (center) and the leaders of the 10 ASEAN member states are posing for a group photo in Busan on December 12.

Korea and the ASEAN will strengthen efforts to boost economic cooperation, in order to improve the trade balance between both sides where possible by providing greater market access for goods and services. They agreed to maximize the utilization of the KoreaASEAN Free Trade Agreement (FTA), aiming to expand trade volume up to US $200 billion by 2020. They will also seek to conclude the Regional Comprehensive Economic Partnership (RCEP) negotiations by the end of 2015.

Korea and the ASEAN agreed to further promote people-to-people contacts to deepen mutual understanding and friendship, and the ASEAN welcomed Korea’s efforts to simplify the visa process for Southeast Asian nationals. Korea and the ASEAN also agreed to further cooperate in the areas such as education, human capital development, culture, science, and environment and disaster management.

President Park Geun-hye is presenting the opening statement at the first session of the ASEAN-ROK Commemorative Summit on December 12.

Bilateral summits On the sidelines of the summit, President Park Geun-hye met with the leaders of the 10 ASEAN nations. On December 9, President Park held talks with Sultan Hassanal Bolkiah of Brunei, celebrating 30 years of diplomacy between Korea and Brunei. The two leaders signed a double tax avoidance agreement, as well as memorandums of understanding (MOUs) to enhance cooperation in agriculture and education. The following day, President Park met Malaysia’s Prime Minister Najib Razak. They recalled how the Look East Policy (Malaysia’s economic policy introduced in 1981 that sought to learn from Japan and Korea’s growth experience) helped Malaysia and Korea establish a special relationship, and agreed to boost cooperation through the second wave of the Look East Policy.

Meanwhile, Korea and Vietnam concluded negotiations for a free trade deal at a signing ceremony witnessed by Vietnamese Prime Minister Nguyen Tan Dung and President Park on December 10. Vietnam is Korea’s second largest trading partner among the ASEAN member states and the single largest investment destination. The Korea-Vietnam FTA is expected to be mutually beneficial. Once tariffs on materials and parts are abolished, Korean firms will be able to export more intermediary goods, and Vietnam will be able to attract more foreign investment.

On December 11, President Park held a series of bilateral talks with the leaders of Myanmar, Indonesia, Laos, Thailand, Singapore and the Philippines. The President wrapped up the ASEAN-Korea Commemorative Summit schedule with a meeting with Cambodian Prime Minister Hun Sen on December 13. The main topics discussed at the respective meetings were economic cooperation, developmental cooperation, and peace on the Korean Peninsula.

P eo al itcuyr eI sd s Iusessu e F

Both parties shared the view that it is important to promote peace and stability on the Korean Peninsula and in Northeast Asia, and agreed to continue efforts to denuclearize the Korean Peninsula in a peaceful manner. They also agreed to strengthen cooperation to address global challenges such as climate change, environmental degradation, food security, energy security and communicable diseases.

45

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

PO LIC Y ISS UE S 2015 Economic Policy Directions

2015 Economic Policy Directions The government unveiled the 2015 economic policies which focus on addressing the structural problems the Korean economy is currently faced with: low growth, weakening growth momentum and imbalances between industries and labor markets. The 2015 policies are expected to boost implementing the Three-year Plan for Economic Innovation the Park administration launched to solve structural problems.

Basic direction of economic policy in 2015 1) Improve economic fundamentals through structural reform and promote economic recovery

2) Revitalize the economy in a manner that supports structural reform - Boost domestic demand by implementing expansionary macroeconomic policies and improving consumption conditions - Support new growth engines and promote innovation in major industries by promoting R&D innovation, implementing the corporate investment promotion program and implementing regulatory reform -Stabilize the housing market by fostering the private rental home industry as a ‘promising industry’

Deputy Prime Minister and Minister of Strategy and Finance Choi Kyung-Hwan (center) is announcing the 2015 economic policies at the Seoul Government Complex on December 22.

47 Policy Issues

-Boost public sector spending efficiency - Boost financial dynamism by promoting competition and venture capital, and create a virtuous cycle for funding that will lead to change in the real economy -Ease labor market restrictions - Respond to the falling economically active population by attracting foreign professionals and increasing the number of working women - Fix discrepancies in supply of and demand for workers by fostering customized job training and improving education

Policy Issues

3) Preemptively respond to risk factors -Encourage households to convert their debt into long-term fixed-rate loans -Promote preemptive and market-friendly corporate restructuring and reshuffling -Develop safety measures to respond to capital flow volatility and improve regulations

4) Lay the groundwork for reunification by improving inter-Korean trust -Increase inter-Korean economic cooperation by promoting multilateral regional cooperation -Take steps towards reunification -Improve North Korean living conditions

48

2015 economic policies

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

1. Improve economic fundamentals through structural reform 1) Increase public sector spending efficiency - Soundness: reevaluate fiscal spending and improve scoring criteria for education grants, reform public pensions, strengthen competition - Efficiency: increase private sector investment in public projects and introduce a system for sharing risks and profits - Public institutions: redefine institution functions and transform organizational structures, merge institutions with similar or overlapping functions

2) Boost financial dynamism - Promote competition: promote IT and financial convergence, increase business for insurance and securities companies by easing regulations separating the two industries - Foreign exchange regulations: completely revise the Foreign Exchange Transactions Act to increase convenience - Venture capital: improve private equity fund regulations, expand venture capital opportunities and make it easier to realize returns

3) Increase labor market flexibility while improving job security, and increase the economically active population - Reform labor market - Increase economically active population: attract foreign professionals by improving visa regulations and introducing long-term immigration policies, increase the number of working women

4) Foster talent demanded by the market - Industry-education cooperation: promote model cases of the ‘Leaders in Industry-Education Cooperation’-type universities that provide the skills demanded by major industries, increase income-contingent loans for middleaged attendees of community colleges and contract-based majors - School education: review school system reform, such as introducing a fall semester system

Increase public sector spending efficiency

-Restructure project support and introduce a support ceiling - Restructure the pension fund management system and the National Health Care Insurance system -Promote private investment in public projects by streamlining procedures -Share risks for creative idea investment through the Young Adult Startup Fund -Introduce a risk sharing investment system for privately funded public projects -Reform schools and improve scoring criteria for education grants - Reform public institutions by merging companies with similar functions and examining performance and competitiveness

Boost financial dynamism

- Promote the introduction of internet banks by supporting IT-financial industry convergence - Ease regulations on investment banks by raising the corporate loan ceiling and allowing loans for commodities and derivatives investment - Allow large securities companies to provide foreign currency loans and ease regulations for securities companies to borrow from overseas financial institutions - Greatly ease regulations on private equity funds and promote crowd funding by building a legal framework and increasing fund management efficiency - Phase out joint guaranty requirement for startups and promote technology-secured loans -Open a minimum requirement market for unlisted stocks, in addition to K-OTC

Fix labor market imbalances

- Promote early employment by encouraging universities to provide students with skills demanded by industries and providing educational support to employees - Provide support for the Leaders in Industry-Education Cooperation Universities according to performance reviews done by industries - Middle-aged students pursuing a contract-based major at community colleges will be made eligible for income-contingent loans - Encourage universities to provide contract-based majors by giving incentives regarding the number of students and locations - Promote vocational colleges, specialized vocational high schools and the work-study system - Review the vitality of having the school year start in the fall to make Korean universities more attractive to overseas students -Encourage universities and colleges to pursue specialization

2. Revitalize the economy in a manner that supports structural reform 1) Implement expansionary macroeconomic policies until the working class fully recovers - Frontload the budget, flexibly implement policies according to economic conditions

Policy Issues

Increase labor market flexibility while improving job security

- Boost human capital management flexibility regarding wages, working hours, and employee contracts -Streamline regulations regarding employee dispatches and short-term contracts - Promote regular employment, improve working conditions and ease discrimination between different types of employment - Strengthen the social safety net, which includes social insurance and employment insurance, the minimum wage, and job training support - Enact laws regarding wages and reduced working hours - Revise visa regulations to attract high quality foreign professionals, such as by giving them the permanent resident status (F5) after one year of stay -Establish long-term immigration policies -Establish the 3rd round plan to tackle the low birth rate and ageing population -Reform the childcare support system to give more benefits to working mothers - Allow women to divide their two years of reduced work hours for childcare into three separate periods, up from two separate periods for one year -Promote part time employment and flexible work hours for women

49

Policy Issues

2) Increase consumption by increasing income and creating jobs - Income: Boost income by gradually raising the minimum wage and increasing dividend payouts, and guarantee a stable lifestyle for the elderly through pension plans - Jobs: Boost the young adult employment rate by encouraging young adults to gain experience overseas and by strengthening job training systems - Cost of living: lower housing, education, public utility and other living expenses

3) Implement the Corporate Investment Promotion program to create new growth engines and support innovation in major industries

50

- New growth engines: promote R&D support system innovation, speed up commercialization process for convergence products through rapid certification -Major industries: boost competitiveness and resolve difficulties, modernize outdated industrial complexes - Investment program: develop a shared risk corporate investment promotion program (15 trillion won) in order to induce 30 trillion won in investment for new growth engines and innovation in major industries - Implement regulatory reform, remove unfair market practices, boost foreign investment, promote overseas market entry, strengthen competitiveness of middle-sized businesses, service businesses and agricultural businesses

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

4) Stabilize the housing market by fostering the private rental home industry as a ‘promising industry’ - Reform housing market regulations: increase housing lot and construction incentives for developers by utilizing land owned by public institutions and raising the floor-area ratio - Financial and tax support: provide financial support through the housing fund, increase the scope to be exempt from the REIT tax for rental homes, institute a special tax credit for home owners who choose to sell their home after a long period of time - Increase demand: increase investor participation, diversify supply, such as by providing small-size public housing and urban-style residences

Expansionary macroeconomic policies

- Frontload budget spending (58% in the first half, more than 60% for SOC, 15 trillion won transferred from 2014 as early as possible) -Respond to Japanese and US monetary policy

Increase consumption

-Boost working class income such as by gradually raising the minimum wage - Encourage corporations to increase their dividend payouts through shareholding pension funds - Guarantee a stable lifestyle for the elderly through pension plans, such as the National Pension Plan, reverse mortgages and specialized health care plans - Promote overseas employment and improve job training programs to successfully implement the Roadmap to 70 percent Employment - Lower housing, education, public utilities and other living expenses by providing housing support, publicizing private education expenses and local government utilities prices -Improve distribution systems and remove unfair practices

Boost investment

- Ease regulations regarding the use of land, including the land owned by the public sector, and remove development restrictions - Establish infrastructure to develop large-scale housing rental businesses by improving the deposit guarantee system and developing contract standards - Financially support pending construction by utilizing the Housing Fund and easing REIT listing requirements - Increase tax incentives for REITs and give a tax break to long-term owners of newly constructed rental homes when they sell homes -Revise laws to promote stability in the rental industry

3. Avoid risks by implementing the Three Risk Management Measures 1) Improve the structure of household debt and guide households to a soft-landing - Debt structure: encourage households to convert their debt into long-term fixed-rate loans - Soft-landing: manage total household debt and debt owned by self employed businesses

2) Increase corporate competitiveness by promoting preemptive and market-friendly restructuring - Marginal enterprises: promote market-friendly restructuring in response to economic slowdown, such as by using private equity funds (PEF) to stabilize corporate financing - Healthy enterprises: revise the M&A tax system to promote voluntary restructuring, enact special laws to streamline the restructuring process

3) Swiftly respond to international financial market volatility - Prepare for sudden capital outflows and flexibly run the capital inflow control system according to the changes in global capital flows

51 Policy Issues

Foster the rental home industry

- Restructure R&D support to help institutions with risky and challenging projects, and provide graded support determined by industry evaluation - SMEs to be able to still receive the R&D investment tax deduction 10 years after the investment they made as a startup - Introduce the Internet of Things for healthcare and smart cities, provide commercialization support - Promote innovation in major industries, such as by launching a 150 billion won semiconductor investment fund, temporarily extending visas for employees in the shipbuilding industry, providing customized financial support for machinery industries and imposing oil import quotas for the steel and chemical industries -Modernize 20 outdated industrial complexes - Introduce a shared risk corporate investment promotion program (15 trillion won government support) in order to induce 30 trillion won corporate investment in new growth engines, innovation in major industries and infrastructure construction - Build infrastructure to develop a 6th industry, an industrial convergence between the agriculture industry and other industries, such as food processing, tourism and restaurant, by building 6th industry complexes and forming regional consortiums - Increase the competitiveness of business services, such as design, advertising, real estate, intellectual property and consulting services

Policy Issues

52

Improve household debt structure and guide households to a soft-landing

-Encourage households to convert their debt into long-term fixed-rate loans -Adopt the income-contingent loan repayment system for student loans -Strengthen monitoring of household debt and carefully analyze debt repayment capability - Promote debt restructuring for potentially insolvent self-employed businesses and further develop statistics on self-employed business debt - Strictly regulate financial cooperatives with regard to non-mortgage loans, and put an end to the special tax incentives given to cooperative deposits

Preemptive and market-friendly restructuring to increase corporate competitiveness

- Make the Corporate Restructuring Promotion Act (scheduled to expire at the end of 2015) permanent - Enact the Special Business Restructuring Support Act in order to help corporations start new businesses

Swiftly respond to international financial market volatility

- Strengthen monitoring of international financial markets and establish the New FX Electronic Network to provide FX monitoring and analysis - Expand the Macroprudential Stability Levy to nonbank lenders and improve the levy system in a way to reducing short-term debt

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

4. Lay the groundwork for reunification by improving inter-Korean trust 1) Increase inter-Korean economic cooperation by promoting multilateral regional cooperation - Successfully hold the Seoul Great Tumen Initiative (GTI) General Meeting, promote the GTI as an international organization, develop infrastructure - Implement the Eurasia Initiative to build transportation, logistics and electric power infrastructure in the region, draw up a plan to build a world peace park in the DMZ - Improve business conditions in the Kaesong Industrial Complex (KIC) by improving entry-exit procedures, communications and customs clearance, operating a commercial arbitration system and promoting the sale of KIC products in China

2) Take steps towards reunification - The Presidential Committee for Reunification Preparation will work to achieve a national consensus and build up overseas support - Work together with other countries, international organizations and NGOs to produce statistics regarding North Korea

3) Improve North Korean living conditions - Launch a 1,000 day maternity care pilot project in the KIC, designed to provide health care and proper nutrition for mothers and infants - Lay the groundwork for inter-Korean cooperation to develop agricultural, livestock and forestry industries, such as by establishing a framework to build an agricultural complex - Strengthen support programs for North Korean defectors, including financial and educational support, training programs and other customized services

N

Ec o Ne no ws mi c Br iefi ng

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

2015 budget passed OECD forecasts 3.8% growth for Korea next year Korea-Australia FTA takes effect Government plans to foster quantum ICT industry Measures to boost the stock market Financial consumer protection to be strengthened Korea grows 0.9% in Q3 (Preliminary)

Economic News Briefing — 2015 budget passed

54

The National Assembly passed the 2015 budget at a plenary session on December 2. The 375.4 trillion won budget fell short of the government's 376 trillion won proposal, leading the fiscal deficit and sovereign debt to slightly improve. The budget increases targeted support for groups such as women and the elderly and lowers cost-of-living expenses, such as childcare and healthcare expenses, and is expected to stimulate the economy by creating jobs and increasing SOC investment. The budget will also provide funds for the expansion of firefighting and safety-related facilities, which will be funded, in part, by raising the taxes on cigarettes.

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

— OECD forecasts 3.8% growth for Korea next year The Organization for Economic Cooperation and Development (OECD) predicted that the Korean economy is likely to grow 3.8 percent in 2015 and 4.1 percent the following year. According to the OECD’s latest economic outlook report published on November 25, Korea’s economic growth has picked

up following a slowdown thanks to monetary and fiscal stimulus measures. The OECD mentioned that while fiscal stimulus to support growth is appropriate, the top priority should be wide-ranging reforms, particularly those in the Three-Year Plan for Economic Innovation, to sustain the country’s growth potential. The OECD also recommended that policies to revitalize the housing market should be implemented carefully to avoid aggravating the household debt problem.

— Korea-Australia FTA takes effect Korea and Australia’s Free Trade Agreement (FTA) took effect on December 12, becoming Korea’s 10th free trade deal to enter into effect. Australia is Korea’s sixth largest trade partner, with Korea’s major export items to Australia consisting of petroleum products and automobiles, and imports mainly consisting of commodities such as iron ore and coal. Considering the fact that 77 percent of aluminum ore, 72 percent of iron ore and 44 percent of coal shipments to Korea are from Australia, the Korea-Australia FTA is expected to provide Korea

Members of the National Assembly are voting on the 2015 budget at a plenary session on December 2.

with a stable supply of natural resources and boost bilateral cooperation in energy-related issues.

— Government plans to foster quantum ICT industry

— Measures to boost the stock market The Financial Services Commission (FSC) has recently announced a set of measures to boost the stock market. The measures address the market’s structural problems such as lack of supply and inefficient infrastructure. First, the FSC aims to expand investment products by allowing the listing of more blue-chip stocks and new derivatives products.

Secondly, to encourage institutional investors to take a more active role in the stock market, a common investment pool will be set up for smaller private pension funds, and the stock investment ceiling for banks will be raised. Thirdly, the FSC will improve the market infrastructure and trading system by creating a new stock index (KTOP 30), introducing electronic securities, raising the daily limit on stock

The government has unveiled plans to boost the stock market, which has been in a slump in recent years. The KOSPI has been hovering around 2,000 points since late 2007, when it hit the 2,000 point mark for the first time.

price movement, and strengthening stabilizing mechanisms against sudden fluctuations in stock prices. Lastly, the FSC will ease investor concerns by improving disclosure rules.

— Financial consumer protection to be strengthened The FSC has announced measures to improve protection for consumers of financial services, focusing on three areas: the government, the financial industry and the consumer. On the government side, an office that is exclusively responsible for addressing financial consumer issues will be created, and a new comprehensive plan for financial consumers will be introduced every three years. On the industry side, financial authorities will encourage companies to make financial products more consumer-friendly, and will also impose stricter sanctions on unfair practices. Meanwhile, financial authorities will set up a system that will allow consumer more access to financial information, and will also move to improve financial literacy.

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

The government has unveiled plans to foster quantum information and communications technology (ICT), a promising next-generation technology that applies quantum technological principles to overcome current ICT limitations.

According to the Ministry of Science, ICT and Future Planning, the US, Japan, EU and other advanced nations have been developing strategies for quantum ICT and investing heavily in the technology over the past 10 years, and although Korea has also conducted studies in the field since 2005, there have been no comprehensive national-level strategies.

Aiming to become a leading nation in quantum ICT by 2020, the government’s plans include creating at least five global top technologies by 2020, and increasing the number of quantum ICT professionals from 100 in 2014 to 3,000 by 2020.

S

Economic News Briefing — Korea grows 0.9% in Q3 (Preliminary) Korea’s real gross domestic product (GDP) expanded 0.9 percent quarter-on-quarter and 3.2 percent year-onyear in the third quarter of 2014, according to preliminary data released by the Bank of Korea (BOK) on December 4. The figures were unchanged from the advanced estimates released on October 24.

On the production side, manufacturing declined 0.9 percent, as production of electronics slumped. Construction grew 1.1 percent, led by civil engineering works, and services were up 1.4 percent, led by financial & insurance services, healthcare & social welfare services, wholesale & retail, hotels & restaurants, and transportation & storage.

56

On the expenditure side, private consumption rose 1.0 percent, as both goods and services increased. Facility investment declined 0.5 percent, led by a decline in transportation equipment investment, while construction investment rose 2.9 percent as both civil engineering works and construction increased. Intellectual property investment rose 0.6 percent, led by software investment.

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

Exports declined 2.2 percent, led by LCD and chemical products, and imports were down 0.5 percent, led by transportation services.

GDP by production and expenditure*

(Percentage change from previous period)

2012 Q1 0.5 (2.6)²

Q2 0.5 (2.4)²

Q3 0.4 (2.1)²

Q4 0.6 (2.1)²

Q1 0.6 (2.1)²

2013¹ Q2 Q3 1.0 1.1 (2.7)² (3.4)²

Q4 0.9 (3.7)²

Q1 0.9 (3.9)²

2014¹ Q2 0.5 (3.5)²

-6.7

-0.2

-0.4

6.1

-4.1

1.9

4.6

7.4

-4.4

-3.7

2.5

1.5

0.3

0.3

0.1

1.2

1.2

1.2

0.8

2.2

0.9

-0.8

-2.9

-0.2

0.4

-1.2

2.7

1.7

1.9

-2.4

1.2

0.2

1.1

Construction

0.9

0.7

0.4

0.6

0.5

1.2

0.7

0.8

0.6

0.6

1.4

Services³

0.8

0.2

1.2

0.4

-0.1

0.7

1.0

0.6

0.2

-0.3

1.0

Private consumption

2.4

-0.4

1.0

0.2

0.5

1.6

0.4

0.9

0.0

0.3

2.3

Government consumption

11.5

-8.0

-3.2

-3.3

1.5

1.0

2.7

5.6

-1.9

1.1

-0.5

Facility investment

-2.1

-3.0

1.2

-2.4

6.5

4.6

0.2

-5.2

5.1

0.4

2.5

Construction investment

9.0

-3.2

3.3

-2.8

9.4

-2.2

1.2

1.8

6.5

-3.6

0.6

Intellectual property investment

0.5

2.5

1.9

0.9

0.2

2.6

-1.1

1.4

1.5

1.7

-2.2

Exports

3.0

-0.2

0.3

-1.3

0.6

1.8

-0.4

2.9

-0.8

1.1

-0.5

Imports

3.0

-0.2

0.3

-1.3

0.6

1.8

-0.4

2.9

-0.8

1.1

-0.7

GDP Agriculture, forestry & fisheries Manufacturing Electricity, gas & water supply

Q3 0.9 (3.2)²

*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.

1. National accounts

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

57 Statistical Appendices

Sta tist App ic a en l dic es

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

Period

58

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 Ⅲ

3.9 3.5 3.2

7.7 3.4 1.2

5.6 5.3 3.2

2.6 1.5 2.0

5.9 3.4 3.6

4.3 0.2 2.6

7.3 7.7 4.3

P: Preliminary Source: The Bank of Korea

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

Production index

Shipment index

y-o-y change(%)

Inventory index

y-o-y change(%)

Service production index

y-o-y change(%)

y-o-y change(%)

2011 2012 2013

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

59

2014 Ⅰ Ⅱ ⅢP

106.4 109.2 105.0

0.7 0.3 1.1

105.9 108.7 104.2

0.2 -0.2 0.2

130.1 128.6 129.2

5.7 7.7 3.4

104.9 108.2 108.3

1.9 1.4 2.6

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

Statistical Appendices

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

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

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

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

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

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

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

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

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

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

106.1 100.7 112.3 111.8 107.9 107.9 111.8 100.6 102.6 109.1

-4.3 3.9 2.8 2.5 -2.1 0.5 4.0 -2.8 1.9 -3.2

104.5 100.8 112.5 110.8 108.1 107.3 108.9 101.1 102.7 108.4

-4.6 3.1 2.5 1.8 -1.5 -0.7 2.2 -3.2 1.8 -3.2

133.1 129.3 130.1 131.3 129.8 128.6 133.0 130.3 129.2 130.9

3.7 3.8 5.7 8.5 6.2 7.7 7.1 5.3 3.4 3.2

104.3 101.3 109.0 106.4 108.5 109.7 108.4 107.8 108.7 110.5

2.2 1.1 2.4 0.9 0.7 2.5 2.7 2.1 3.0 2.6

P: Preliminary Source: Statistics Korea

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

Production capacity index (2010=100)

Operation ratio index (2010=100)

y-o-y change (%)

y-o-y change (%)

Average operation ratio (%)

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

60

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

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

2014 Ⅰ Ⅱ ⅢP

109.5 109.7 110.5

1.2 1.2 1.5

92.5 96.8 91.2

-0.9 -0.6 0.8

77.2 76.3 75.8

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

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

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

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

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

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

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

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

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

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

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

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

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

109.6 109.5 109.5 109.5 109.7 109.8 110.3 110.5 110.6 110.7

1.4 1.2 1.2 1.2 1.2 1.1 1.5 1.4 1.5 1.5

91.6 87.2 98.7 99.8 95.6 95.1 98.4 86.4 88.8 95.5

-7.0 3.2 2.0 2.5 -3.4 -0.8 4.3 -4.4 2.4 -3.7

78.2 75.8 77.5 77.8 74.6 76.4 78.2 74.0 75.1 73.5

P: Preliminary Source: Statistics Korea

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

y-o-y change (%)

Durable goods y-o-y change (%)

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

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 Ⅱ ⅢP

106.3 108.5 108.7

2.5 0.7 1.4

117.5 121.2 123.3

6.0 2.5 5.6

99.9 104.6 95.8

-1.8 -2.4 0.8

103.9 104.3 107.5

2.7 1.3 -0.5

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

110.5 99.1 109.3 105.5 112.0 108.0 109.8 107.0 109.4 110.9

5.6 -0.4 2.1 0.2 1.1 1.0 0.5 2.3 1.6 -0.3

116.8 117.1 118.6 114.1 121.7 127.6 131.2 118.4 120.4 118.9

4.1 10.6 3.4 -0.8 1.8 6.2 3.0 1.8 12.7 -1.2

100.2 91.6 107.9 105.4 111.3 97.2 95.2 91.1 101.1 114.9

-2.6 -1.6 -1.2 -0.9 -2.2 -4.2 -3.0 4.6 1.2 1.1

112.1 94.0 105.5 101.5 107.8 103.6 106.1 108.6 107.8 105.4

10.2 -5.3 2.9 1.2 2.2 0.5 0.6 1.6 -3.4 -0.5

P: Preliminary Source: Statistics Korea

61 Statistical Appendices

2011 2012 2013

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

Period

62

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 Ⅱ ⅢP

100.4 99.9 101.8

-2.3 1.5 -0.3

103.2 102.6 100.1

-4.4 2.0 -2.2

99.2 98.7 102.5

-1.3 1.3 0.6

-

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

102.2 96.3 102.6 101.2 99.6 98.9 104.2 99.7 101.6 104.1 -

-5.7 -0.4 -0.6 2.1 0.3 2.3 1.0 -3.9 2.3 -4.2 -

99.8 106.5 103.3 97.8 103.4 106.7 106.8 94.2 99.4 99.1 -

-9.6 0.4 -4.0 -0.1 2.1 4.0 -1.8 -9.1 5.1 -5.0 -

103.3 91.9 102.3 102.7 97.9 95.5 103.1 102.0 102.5 106.3 -

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

109 108 108 108 105 107 105 107 107 105 103

P: Preliminary Source: Statistics Korea

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

Period

2011 2012 2013

Public

y-o-y change (%)

Private

y-o-y change (%)

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 Ⅱ ⅢP

6,594 6,126 7,732

17.9 4.4 50.2

1,221 305 2,708

184.6 -45.0 418.5

5,373 5,821 5,024

4.1 9.6 8.6

96.6 106.8 100.3

5.9 6.2 1.5

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1,716 1,848 3,029 2,283 1,842 2,001 1,802 4,097 1,833 1,978

-7.1 10.9 45.7 23.7 -13.4 5.7 -6.9 152.3 15.3 -24.1

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

-36.9 -28.8 735.6 5.1 -53.4 -56.7 -75.3 2653.2 10.6 -73.2

1,628 1,728 2,016 2,187 1,726 1,910 1,713 1,556 1,754 1,766

-4.7 15.4 3.0 24.7 -8.1 13.6 8.7 1.6 15.6 -2.8

88.4 93.8 107.6 108.7 107.2 104.4 111.1 90.2 99.5 99.3

-1.6 12.3 7.2 10.7 5.5 2.4 2.9 -9.9 12.8 -8.8

P: Preliminary Source: Statistics Korea

63 Statistical Appendices

25,148 21,648 23,105

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

64

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 Ⅱ ⅢP

21,626 26,116 23,555

7.4 1.6 -0.5

7,144 8,697 7,234

2.0 -6.9 -10.5

13,630 16,470 15,326

10.1 7.1 4.4

15,501 22,881 23,955

15.5 26.1 45.6

5,968 6,578 5,219

39.1 23.0 6.3

9,102 16,002 18,138

3.6 32.2 62.4

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

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

7,034 6,654 7,938 8,457 8,173 9,486 7,896 7,705 7,954 8,224

12.3 6.9 3.7 4.6 0.4 0.1 0.7 0.6 -2.8 -4.7

2,310 2,207 2,627 2,737 2,580 3,380 2,427 2,320 2,488 2,529

11.5 4,434 -5.9 4,226.0 1.5 4,971.0 -3.6 5,445 -8.0 5,302 -8.7 5,723 -8.2 5,134 -9.4 5,101 -13.6 5,090 -14.5 5,365

12.1 15.8 4.2 9.9 4.8 6.7 5.1 6.1 2.2 0.7

5,300 5,393 4,807 7,290 6,427 9,163 6,902 8,679 8,374 7,508

49.5 21.7 -11.8 47.4 5.8 28.6 21.6 84.3 37.9 2.2

2,102 2,242 1,625 1,892 2,000 2,686 1,555 1,633 2,031 1,422

62.9 74.2 -5.2 21.4 28.3 20.4 10.1 9.4 1.3 -5.2

P: Preliminary Source: Statistics Korea

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

3,026 43.5 3,001 0.3 3,075 -16.4 5,388 81.9 4,359 -0.8 6,256 31.6 5,281 27.1 6,835 115.5 6,023 56.8 5,905 2.6

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

Coincident index (2010=100)

Cyclical indicator 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 9 10 11 12

117.6 118.0 118.2 118.8 119.1 119.8 120.3 121.7 122.9 123.7 -

101.6 101.5 101.3 101.5 101.3 101.6 101.6 102.4 103.0 103.3 -

117.5 117.9 118.4 118.5 118.5 118.9 119.5 120.2 120.5 120.5 -

100.7 100.6 100.7 100.4 100.1 100.1 100.2 100.5 100.3 100.0 -

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

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

Sources: Statistics Korea, The Bank of Korea

65 Statistical Appendices

Leading index (2010=100)

Period

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

Goods

2011 2012 2013

18,655.8 50,835.0 79,883.6

29,089.9 49,406.0 80,568.6

587,099.7 603,509.2 617,127.6

2011 Ⅰ Ⅱ Ⅲ Ⅳ

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

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

2012 Ⅰ Ⅱ Ⅲ Ⅳ

-746.0 11,605.1 16,886.8 23,089.1

2013 Ⅰ Ⅱ Ⅲ Ⅳ

Services

Primary income

Secondary income

558,009.8 554,103.2 536,559.0

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

6,560.6 12,116.7 11,424.8

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

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

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

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

-195.2 372.1 3,723.5 2,660.2

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

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

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

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

-2,970.8 172.0 -679.8 -1,735.0

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

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

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

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

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

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

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

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

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

2014P Ⅰ Ⅱ Ⅲ

15,070.7 24,125.2 22,450.5

17,745.2 26,428.1 21,676.0

152,688.6 159,385.4 153,482.3

134,943.4 132,957.3 131,806.3

-3,618.6 -1,953.9 -1,019.2

1,905.8 1,330.9 3,143.5

-961.7 -1,679.9 -1,349.8

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 7 8 9 10

3,285.3 4,499.1 7,286.3 7,124.7 9,080.8 7,919.7 7,843.3 7,196.7 7,410.5 9,013.2

4,367.0 5,403.4 7,974.8 10,648.0 9,133.5 6,646.6 6,794.4 7,367.3 7,514.3 8,655.5

50,599.8 47,993.3 54,095.5 56,721.4 52,383.0 50,281.0 53,811.7 48,920.1 50,750.5 52,161.2

46,232.8 42,589.9 46,120.7 46,073.4 43,249.5 43,634.4 47,017.3 41,552.8 43,236.2 43,505.7

-1,912.1 -1,058.7 -647.8 -1,042.8 -336.1 -575.0 -7.4 -732.7 -279.1 -251.0

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

-381.0 -217.4 -363.3 -860.8 -441.8 -337.4 -432.5 -485.9 -431.4 -358.9

Period

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

P: Preliminary Source: The Bank of Korea

Exports

Imports

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

-17177.8 -24,208.1 -22,481.5

-3,657.7 -7,552.9 -3,908.6

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

892.6 2,083.5 1,531.9

6,207.4 -1,701.9 -9,510.4

-2.1 -4.3 3.6

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

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 7 8 9 10

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

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

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

155.5 223.1 514.0 858.1 534.5 690.9 504.1 557.7 470.1 -570.7

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

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

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

P: Preliminary Source: The Bank of Korea

67 Statistical Appendices

Capital & financial account

Period

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

All Items

Commodity

y-o-y change (%)

68

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 7 8 9 10

108.5 108.8 109.0 109.1 109.2 109.1 109.3 109.5 109.4 109.1

1.1 1.0 1.3 1.5 1.7 1.7 1.6 1.4 1.1 1.2

110.9 111.4 111.6 111.3 111.5 111.2 111.2 111.4 111.5 110.6

0.9 0.9 1.1 1.3 1.7 1.7 1.4 1.0 0.5 0.5

106.6 106.7 107.0 107.3 107.5 107.4 107.7 107.9 107.8 107.8

1.3 1.1 1.5 1.6 1.6 1.6 1.7 1.7 1.7 1.7

107.7 108.0 108.3 108.5 108.8 108.9 109.1 109.2 109.1 109.1

1.7 1.7 2.1 2.3 2.2 2.1 2.2 2.4 1.9 1.8

105.6 105.8 105.7 105.6 105.5 105.6 105.7 105.6 105.2 104.6

-0.3 -0.9 -0.5 -0.3 0 0.1 0.2 -0.2 -0.5 -0.7

105.7 105.9 105.7 105.4 105.3 105.4 105.5 105.1 104.7 103.8

-1.0 -1.7 -1.3 -1.1 -0.7 -0.6 -0.4 -1.1 -1.3 -1.7

Source: The Bank of Korea

12. Employment

Period

Economically active persons (thousand)

Employed persons (thousand) All industry

y-o-y change (%)

Manufacturing

y-o-y change (%)

SOC & services

y-o-y change (%)

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 8 9 10 11

25,650 25,997 26,187 26,714 26,762 26,825 26,891 26,775 26,766 26,809 26,786

3.0 4.1 3.1 3.0 2.2 2.0 2.2 2.7 2.2 2.1 2.1

24,759 24,819 25,163 25,684 25,811 25,875 25,979 25,885 25,917 25,951 25,968

2.9 3.5 2.6 2.3 1.6 1.6 2.0 2.3 1.8 1.6 1.7

4,280 4,274 4,284 4,288 4,324 4,345 4,358 4,335 4,347 4,361 4,355

2.2 3.3 3.5 2.3 3.6 3.9 4.6 5.3 4.1 3.4 2.4

19,376 19,407 19,538 19,819 19,815 19,841 20,003 19,940 19,949 19,973 20,098

3.0 3.6 2.9 2.7 1.7 1.6 2.2 2.6 2.1 2.1 2.2

3.5 4.5 3.9 3.9 3.6 3.5 3.4 3.3 3.2 3.2 3.1

Source: Statistics Korea

69 Statistical Appendices

2011 2012 2013

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

70

Yields(%)

Stock

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

Call rate (1 day)

CDs (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 8 9 10 11

2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.3 2.2 2.1 2.0

2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.5 2.4 2.2 2.1

3.3 3.3 3.3 3.3 3.3 3.2 3.0 3.0 2.8 2.6 2.5

2.9 2.9 2.9 2.9 2.8 2.7 2.6 2.5 2.4 2.2 2.1

3.3 3.2 3.2 3.2 3.1 3.0 2.8 2.8 2.6 2.4 2.3

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

Source: The Bank of Korea

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 7 8 9 10

98,541.6 100,547.9 100,624.0 98,898.5 101,791.4 101,412.3 101,164.2 107,682.4 105,354.1 107,117.5

14.8 13.2 12.4 12.7 13.5 11.2 11.6 14.9 10.7 14.4

515,742.5 518,475.5 520,299.0 518,809.3 523,069.9 532,041.2 534,028.8 538,640.3 548,550.8 551,416.0

10.9 9.8 10.1 9.1 10.0 9.3 9.2 11.9 11.8 12.1

1,937,045.6 1,954,340.7 1,964,954.0 1,970,361.6 1,982,390.9 1,999,376.3 2,013,935.1 2,031,777.2 2,037,600.8 2,051,149.8

5.2 5.2 5.5 5.5 6.0 6.1 6.5 7.6 7.1 7.5

2,635,100.1 2,647,674.0 2,659,370.7 2,669,341.4 2,684,643.9 2,703,088.1 2,725,737.6 2,743,972.5 2,759,390.8 2,776,971.6

6.7 6.4 6.4 6.2 6.6 6.7 6.9 7.3 7.1 7.3

Source: The Bank of Korea

71 Statistical Appendices

2011 2012 2013

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

72

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 8 9 10 11

Euro/ \ 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 1,013.6 1,050.6 1,054.0 1,101.1

-0.3 -1.6 -3.9 -6.9 -9.5 -11.8 -8.0 -8.8 -2.3 -0.7 3.7

1,043.7 1,044.8 1,038.7 1,005.3 1,004.2 1,000.0 995.7 977.6 960.2 964.1 933.9

-12.2 -11.2 -12.0 -11.2 -10.1 -14.3 -12.3 -13.4 -12.6 -10.5 -10.0

1,473.6 1,463.6 1,469.4 1,425.0 1,389.6 1,384.2 1,371.8 1,336.2 1,333.3 1,328.8 1,372.2

0.3 2.7 3.1 -1.8 -5.6 -7.6 -7.1 -9.1 -8.1 -8.8 -5.0

Source: The Bank of Korea

y-o-y change (%)

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

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Statistical Appendices

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December 2014

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