EconomicBulletin201901_english

Republic of Korea

Economic Bulletin January 2019 Vol.41 No.1

The Green Book: Current Economic Trends

Policy Issue Government Unveils Its Hydrogen Economy Roadmap

Economic News Briefing Korea to Promote a Sharing Economy Government Frontloads 61% of Project Budget in H1 2019 Korea’s Exports Hit Record High in 2018 Inbound FDI Up 17.2% in 2018

Statistical Appendices eb.kdi.re.kr ISSN 2287-7266

Republic of Korea

Economic Bulletin eb.kdi.re.kr ISSN 2287-7266

02

The Green Book: Current Economic Trends

Editor-in-Chief Suh Joong-Hae (KDI) Yoon Tae-Sik (MOEF)

Overview

Editorial Board Suk Ran (MOEF) Lee Jae-Yeal (KDI) Yu Seong-Im (KDI)

03 Facility investment

Coordinators Kim Dae-Hyun (MOEF) Lee Hyun-Jin (KDI)

06 Mining and manufacturing production

Editors Shin Dong-Gyun (MOEF) Lee Ji-Youn (KDI)

09 Financial markets 9.1 Stock market 9.2 Exchange rate 9.3 Bond market 9.4 Money supply and money market

01 External economic situation 02 Private consumption 04 Construction investment 05 Exports and imports 07 Service sector activity 08 Employment

10 Balance of payments 11 Prices ‌ 11.1 Consumer prices 11.2 International oil and commodity prices 12 Real estate market ‌ 12.1 Housing market 12.2 Land market 13 ‌ Composite indices of business cycle indicators

Haeundae Haeundae is a famous beach resort in eastern Busan, the second largest city in Korea, and has been a venue for the regularly held Busan International Film Festival (BIFF) since 1996. Centum City, a large business and leisure complex with exhibition halls, shopping centers and other entertainment facilities, is one of the major features of Haeundae.

43

Policy Issue Government unveils its hydrogen economy roadmap

Vol.41

January 2019

46

Economic News Briefing Korea to promote a sharing economy Government frontloads 61% of project budget in H1 2019 BOK forecasts 2.6% growth for 2019 Korea’s exports hit record high in 2018 Inbound FDI up 17.2% in 2018

49

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

Overview 01 External economic situation 02 Private consumption 03 Facility investment 04 Construction investment 05 Exports and imports 06 Mining and manufacturing production 07 Service sector activity 08 Employment 09 Financial markets 10 Balance of payments 11 Prices 12 Real estate market 13 Composite indices of business cycle indicators

The Green Book:

Current Economic Trends

Overview

Retail sales improved for the second consecutive month in November, however industrial activities fell. Investment and employment remain weak, and concerns have been rising over a pessimistic outlook for semiconductor manufacturing. External uncertainties linger amid ongoing trade conflicts between the US and China.

The economy added 34,000 jobs year-on-year in December as job growth slowed in services and construction. Manufacturing jobs continued to fall.

Young adult unemployment declined in December (9.2% → 8.6%, down 0.6%p, y-o-y). Employment in 2018 increased by 97,000.

Consumer price inflation slowed in December (up 2.0% → up 1.3%, y-o-y) as oil product prices fell and fresh food prices became stable. Consumer prices rose 1.5 percent in 2018.

All industry production fell in November (up 0.8% → down 0.7%, m-o-m): Mining and manufacturing production decreased (up 1.3% → down 1.7%, m-o-m) due to weak manufacturing and gas & electricity production. Service output declined (up 0.6% → down 0.2%, m-o-m), as financial & insurance services, as well as real estate & renting, fell. Wholesale & retail improved.

Retail sales continued to increase in November (up 0.2% → up 0.5%, m-o-m) backed by strong durable goods sales. Sales of durable goods and nondurable goods increased 3.3 percent and 1.1 percent, respectively. Semi-durable goods sales dropped 3.8 percent.

Facility investment fell in November (up 2.2% → down 5.1%, m-o-m) as both machinery and transportation equipment declined. Construction completed continued to fall (down 1.8% → down 0.9%, m-o-m) due to weak building construction.

In November, the cyclical indicator of the coincident composite index fell 0.2 points to 98.2, and the cyclical indicator of the leading composite index fell 0.2 points to 98.6.

Exports fell in December (up 4.1% → down 1.2%, y-o-y), despite strong cars and vessels, as home electronics and smartphones decreased. Annual exports surpassed US $600 billion in 2018 for the first time.

In December KOSPI fell amid growing uncertainties about the Chinese economy. The dollar-won exchange rate fell on expectations that Fed might slow down its rate hikes. Government bond yields went down.

January 2019

03

The Green Book

Housing prices went down in December (up 0.13% → down 0.01%, m-o-m) due to falling prices in areas outside the Seoul metropolitan area. Jeonse (lump-sum deposits with no monthly payments) prices continued to fall (down 0.09% → down 0.19%, m-o-m) as the prices declined in both the Seoul metropolitan area and other areas.

The economy is expected to improve given expansionary fiscal policies and strong consumption, but job markets are weak and there are external uncertainties, such as those regarding US-China trade conflicts, Fed’s rate hikes and volatility in global financial markets.

The government will strengthen its risk management and work to boost the economy by implementing the measures to achieve industrial innovation, create jobs and support low-income households and small merchants. The government will work to fast implement the 2019 economic policies, which have drawn to help achieve an inclusive and dynamic economy.

1. External economic situation The global economy has been growing, but there are risks with regard to ongoing trade conflicts, Fed’s rate hikes and financial market volatility in emerging economies.

World GDP growth (%)

7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 1.0 ‘01

‘02

‘03

‘04

‘05

‘06

‘07

‘08

‘09

‘10

‘11

‘12

‘13

‘14

‘15

‘16

‘17

Source: International Monetary Fund

04

Economic Bulletin

US The US economy has continued to recover, industrial production improving, as well as retail sales and the labor market.

Industrial production rose 0.6 percent month-on-month in November due to the strong production of mining (up 1.7%, m-o-m) and public utilities (up 3.3%, m-o-m). The ISM Manufacturing Index rose in the month.

ISM Manufacturing Index (base=50)

58.1 (Jul 2018) → 61.3 (Aug) → 59.8 (Sep) → 57.7 (Oct) → 59.3 (Nov)

US GDP growth and industrial production (%)

6

4

2

0

-2

-4

GDP (q-o-q, annualized rate) Industrial production (q-o-q)

-6 2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

2018.Q1

Sources: US Department of Commerce, Federal Reserve Board

Retail sales rose 0.2 percent month-on-month in November as automobile sales continued to improve (up 0.2%, m-o-m), as well as nonstore retailer sales (up 2.3%, m-o-m). Consumer confidence dropped in December.

Conference Board Consumer Confidence Index (1985=100)

127.9 (Jul 2018) → 134.7 (Aug) → 135.3 (Sep) → 137.9 (Oct) → 136.4 (Nov) → 128.1 (Dec)

Existing home sales increased 1.9 percent month-on-month in November to an annual rate of 5,320,000 homes (down 7.0%, y-o-y). New home sales fell 8.9 percent month-on-month in October to an annual rate of 540,000 units (down 12.0%, y-o-y).

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

6.5 (May 2018) → 6.4 (Jun) → 5.9 (Jul) → 5.5 (Aug) → 5.2 (Sep) → 5.0 (Oct)

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

3.2 (May 2018) → -6.3 (Jun) → -1.0 (Jul) → -2.5 (Aug) → 1.0 (Sep) → -8.9 (Oct)

January 2019

05

The Green Book

Nonfarm payrolls rose by 312,000 in December, the employment rate being 60.6 percent. The unemployment rate rose somewhat to 3.9 percent.

Labor force participation rate (%)

62.9 (Jul 2018) → 62.7 (Aug) → 62.7 (Sep) → 62.9 (Oct) → 62.9 (Nov) → 63.1 (Dec)

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

165 (Jul 2018) → 286 (Aug) → 119 (Sep) → 237 (Oct) → 155 (Nov) → 312 (Dec)

Unemployment rate (%)

4.0 (Jun 2018) → 3.9 (Jul) → 3.9 (Aug) → 3.7 (Sep) → 3.7 (Oct) → 3.7 (Nov) → 3.9 (Dec)

US nonfarm payroll growth and unemployment rate (thousands)

(%)

600

12

400

10

200 8

0

6

-200 -400

4

-600

Unemployment rate (right) Unemployment rate (left)

2

-800

0

-1,000 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: US Department of Labor

(Percentage change from previous period)

2016

2017

Annual Annual Q1

Real GDP

2018

Q2

Q3

Q4

Q1

Q2

Q3

Oct Nov Dec

1.6

2.2

1.8

3.0

2.8

2.3

2.2

4.2 3.5

-

-

-

- Personal consumption expenditures 2.7

2.5

1.8

2.9

2.2

3.9

0.5

3.8 4.0

-

-

-

- Nonresidential fixed investment

0.5

5.3

9.6

7.3

3.4

4.8 11.5

8.5 0.8

-

-

-

- Residential fixed investment

6.5

3.3 11.1 -5.5 -0.5 11.1 -3.4 -1.6 -4.0

-

-

-

Industrial production

-1.9

1.6

0.2

1.2 -0.4

1.9

0.6

1.3

1.2 -0.2

0.6

-

Retail sales

2.9

4.7

1.5

0.6

2.3

0.4

1.8

1.1

1.1

0.2

-

Existing home sales

4.1

1.7

1.0 -1.0 -2.6

3.5 -1.5 -1.7 -2.6

1.4

1.9

-

Unemployment rate

4.9

4.4

4.7

4.3

4.3

4.1

4.1

3.9

3.8

3.7

3.7

3.9

Consumer prices (y-o-y)

1.3

2.1

2.6

1.9

2.0

2.1

2.3

2.6

2.6

2.5

2.2

-

1

2

1.0

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

06

Economic Bulletin

China The Chinese economy showed signs of a slowdown in November as exports, industrial production and retail sales grew at a slower rate. Fixed asset investment continued to improve.

China’s GDP growth and fixed asset investment

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

(%)

(%)

14

50

12

40

10

30

8

20

6

10

0

4 2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

2018.Q1

Source: China National Bureau of Statistics

(Percentage change from same period in previous year)

2016

2017

Annual Annual Q1

2018

Q2

Q3

Q4

Q1

Q2

Q3

Sep

Oct

Nov

Real GDP

6.7

6.9

6.9

6.9

6.8

6.8

6.8

6.7

6.5

-

-

-

Industrial production

6.0

6.6

6.8

6.9

6.3

6.2

6.1

6.6

6.0

5.8

5.9

5.7

Fixed asset investment (accumulated, nominal)

8.1

7.2

9.2

8.6

7.5

7.2

7.5

6.0

5.4

5.4

5.7

5.9

Retail sales (nominal)

10.4

10.2 10.2 10.8 10.3

9.9

9.7

9.0

9.0

9.2

8.6

8.1

Exports

-6.6

6.5

3.2

6.6

6.1

9.4 13.7 11.5 11.8 14.4 15.5

5.4

Consumer prices1

2.0

1.6

1.4

1.4

1.6

1.8

2.2

1.8

2.3

2.5

2.5

2.2

Producer prices1

-1.3

6.3

7.4

5.8

6.2

5.9

3.7

4.1

4.1

3.6

3.3

2.7

1. Quarterly data show an average of monthly data Source: China National Bureau of Statistics

January 2019

07

The Green Book

Japan Japan’s economy slowed in November: Industrial production and retail sales fell, and export growth weakened.

Unemployment rate (%)

2.4 (Jun 2018) → 2.5 (Jul) → 2.4 (Aug) → 2.3 (Sep) → 2.4 (Oct) → 2.5 (Nov)

Japan’s GDP growth and industrial production (%)

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

(%)

3

15

2

10

1

5

0

0

-1

-5

-2

-10

-3

-15

-4

-20 -25

-5 2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

2018.Q1

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

(Percentage change from previous period)

2016

2017

Annual Annual Q1

2018

Q2

Q3

Q4

Q1

Q2

Q3

Sep

Oct

Nov

-

-

-

Real GDP

1.0

1.7

0.7

0.5

0.6

0.2 -0.2

0.7 -0.6

Industrial production

-0.2

4.5

0.2

1.8

0.4

1.6 -1.3

1.3 -1.7 -0.4

2.9 -1.1

Retail sales (nominal)

-0.6

1.9 -0.2

0.6

0.1

1.3 -0.6

0.4

1.1

1.3 -1.0

Exports (y-o-y)

-7.4

11.8

Consumer prices (y-o-y)

-0.1

0.5

0.1

8.5 10.5 15.1 13.0

4.9

7.5

2.9 -1.3

8.2

0.1

0.3

1.3

0.7

1.1

1.4

0.8

0.4

0.6

0.6

1.2

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

08

Economic Bulletin

Eurozone Eurozone’s industrial production and retail sales picked up in October, and the unemployment rate stayed stable at 8.1, the lowest since December 2012.

Unemployment rate (%)

8.4 (Apr 2018) → 8.2 (May) → 8.2 (Jun) → 8.2 (Jul) → 8.1 (Aug) → 8.1 (Sep) → 8.1 (Oct)

Manufacturing PMI

54.1 (Jul 2018) → 54.6 (Aug) → 53.2 (Sep) → 52.0 (Oct) → 51.8 (Nov) → 51.4 (Dec)

Eurozone Economic Sentiment Indicator (base 2010=100)

112.1 (Jul 2018) → 111.6 (Aug) → 110.9 (Sep) → 109.7 (Oct) → 109.5 (Nov)

Eurozone’s GDP growth and industrial production (%)

(%)

2

6 4

1

2 0

0

-2 -1

-4 -6

-2

-8

GDP (q-o-q, left)

-3

Industrial production (q-o-q, right)

-4

-10 -12 2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

2018.Q1

Source: Eurostat

(Percentage change from previous period)

2016

2017

Annual Annual Q1

2018

Q2

Q3

Q4

Q1

Q2

Q3

Sep -

Real GDP

1.9

2.4

0.6

0.7

0.7

0.7

0.4

0.4

0.2

Industrial production

1.6

2.9

0.0

1.0

1.6

1.3 -0.6

0.1

Retail sales

1.6

2.3

0.3

0.8

0.4

0.4

0.8

Exports (y-o-y)

0.3

7.1 11.2

5.4

6.0

6.2

Consumer prices (y-o-y)

0.2

1.5

1.5

1.4

1.4

1.8

Oct Nov -

-

-0.1 -0.6

0.2

-

0.8

-0.1 -0.5

0.6

0.6

2.1

4.3

4.6

-0.8 11.4

1.3

1.7

2.1

2.1

2.2

1.9

Sources: Eurostat, Bloomberg

January 2019

09

The Green Book

2. Private consumption Private consumption (preliminary GDP) in the third quarter of 2018 rose 0.5 percent from the previous quarter and 2.5 percent compared with a year ago.

(Percentage change from previous period)

2016 Annual Q1

Private consumption2

2017

Q2

Q3

1

1

Q4 Annual Q1

2018 1

Q2

1

Q3

1

Q4

1

Q1

Q21 Q31

2.5

-0.2 0.8 0.5 0.3

2.6

0.5 1.0 0.8 1.0 0.7 0.3 0.5

-

2.4 3.6 2.8 1.4

-

2.1 2.4 2.6 3.4 3.5 2.8 2.5

(y-o-y)

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

Private consumption (%)

8 6 4 2 0 -2

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

-4 -6 2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

2018.Q1

Source: Bank of Korea (national accounts)

Retail sales in November rose 0.5 percent from the previous month: Sales of durable goods (up 3.3%) and nondurable goods (up 1.1%) rose, and sales of semi-durable goods (down 3.8%) declined. Year-on-year, the index rose 1.0 percent.

(Percentage change from previous period)

2016 Retail sales (y-o-y)

2017

2018

Annual

Q4

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Q31

Oct1 Nov1

3.9

1.4

1.9

0.4

1.0

0.2

0.9

3.0

0.7

-0.5

0.2

0.5

-

2.2

-

1.6

1.0

3.2

2.1

5.0

4.7

3.9

5.1

1.0

4.6

6.5

5.4

1.0

5.2

-3.0

1.4

5.4

2.2

-4.7

1.5

3.3

2.8 16.5

0.9

-0.5

3.5

-6.9

1.4 11.0

3.8

-8.6

7.1

3.7

- Semi-durable goods3

2.3

-0.1

-1.1

-1.3

-0.5

1.1

1.4

2.8

1.0

2.2

0.5

-3.8

- Nondurable goods4

4.2

-0.3

1.7

0.8

-0.5

1.4

0.5

2.1

-0.3

0.5

-0.6

1.1

- Durable goods

2

¡ Automobiles

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

3. Semi-durable goods: Clothing, footwear and etc.

4. Nondurable goods: Food, medicine, cosmetics, fuel, tobacco and etc.

Source: Statistics Korea

10

Economic Bulletin

Retail sales (%)

15

10

5

0

-5

Retail sales (y-o-y) Retail sales (m-o-m)

-10 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Statistics Korea (industrial activity trends)

Retail sales by type (%)

30 25 20 15 10 5 0

Durable goods Semi-durable goods

-5 -10 -15

Nondurable goods

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Statistics Korea (industrial activity trends)

In December sales at department stores and domestic sales of cars increased, as well as credit card use and consumer confidence. Sales at large discount stores fell.

2018 May

Jun

Jul

Aug

Sep

Oct

Nov

Dec1 7.1

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

5.2

7.7

9.7

8.8

1.9

13.2

6.7

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

2.0

5.0

3.2

2.9

4.3

3.9

-3.4

0.5

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

-3.0

0.9

-2.5

2.0

7.5

-12.2

-1.7

-3.6

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

-0.3

-5.9

3.3

6.8

-18.7

23.1

-0.4

3.3

107.9 105.5 101.0 Consumer sentiment index Number of Chinese tourists (y-o-y, %) 46.1 49.0 45.9

99.2

100.2

99.5

96.0

97.2

41.0

36.4

37.7

41.1

37.92

1. ‌ Preliminary 2. Advanced estimates based on all Chinese entries, which can be different from the statistic released by the Ministry of Culture, Sports and Tourism as it excludes diplomatic and military personnel Sources: Bank of Korea, Credit Finance Association of Korea, Korea National Oil Corporation, Korea Automobile Manufacturers Association, data provided by retail industries

January 2019

11

The Green Book

3. Facility investment Facility investment (preliminary GDP) in the third quarter of 2018 fell 4.4 percent quarter-on-quarter and 7.4 percent year-on-year.

(Percentage change from previous period)

2016

2017

Annual Annual1 Q11

Facility investment2

2018

Q21

Q31

Q41

Q11

Q21

Q31

-1.0

14.6

4.5

4.3

0.2

-0.7

3.4

-5.7

-4.4

-

-

16.1

17.9

16.3

8.6

7.3

-3.0

-7.4

- Machinery

-0.8

23.0

7.1

3.9

2.4

-1.2

4.0

-4.5

-9.5

- Transportation equipment

-1.5

-3.2

-1.7

5.3

-5.5

0.8

1.9

-9.3

10.6

(y-o-y)

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

Facility investment (%)

40 30 20 10 0 -10 -20

Facility investment (y-o-y) -30

Facility investment (q-o-q)

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

2018.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

2018.Q1

Source: Bank of Korea (national accounts)

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

40 30 20 10 0 -10 -20

Transportation equipment -30

Machinery

2009.Q1

2010.Q1

2011.Q1

2012.Q1

Source: Bank of Korea (national accounts)

12

Economic Bulletin

The facility investment index in November fell 5.1 percent month-on-month as both machinery investment and transportation equipment investment decreased. The index fell 10.0 percent year-on-year.

(Percentage change from previous period)

2016

2017 Q1

Q2

Q3

Q4

Q1

Q2

Q3

Oct¹

Nov¹

14.1

6.0

3.1

0.2

-1.7

8.4 -11.0

-6.2

2.2

-5.1

Annual Annual

Facility investment index (y-o-y)

-1.3

2018

-

-

18.2

17.8

20.6

2.0

9.4

-5.9 -13.6

9.4 -10.0

- Machinery

-2.2

22.4

6.6

7.9

-0.1

-2.0

5.3

-9.5 -10.1

-0.8

-6.1

- Transportation equipment

0.9

-4.4

5.1

-8.7

0.4

-0.8

10.0

-3.1

17.8 -15.5

4.8

1. Preliminary Source: Statistics Korea

Facility investment pressure increased, but other leading indicators, such as domestic machinery orders received, capacity utilization rates and machinery imports, fell.

BSI in the manufacturing sector (base=100, Bank of Korea)

80 (Jul 2018) → 73 (Aug) → 77 (Sep) → 78 (Oct) → 72 (Nov) → 71 (Dec) → 71 (Jan 2019) (Percentage change from same period in previous year)

2016

2017

Annual Annual

Q1

Q2

2018 Q3

Q3

Oct1 Nov1

Q4

Q1

Q2

4.2

4.4

-0.4

0.0

8.0 -21.0

0.3

-8.9

7.2

1.8

8.5 -14.2

Domestic machinery orders received

4.7

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

-

-

-Public

49.0

-21.8

-Private

1.1

24.1 22.5 26.3 34.1 15.0

Machinery imports

-2.5

18.8 24.2 20.5 22.7

Capacity utilization rate

72.9

72.6 73.5 72.0 73.0 71.8 71.0 73.2 74.2 73.8 72.7

Facility investment pressure2

-0.4

19.2 21.1 23.7 31.3

0.5

-8.6 11.4

1.4

8.4

-0.9 -54.0 -12.7 18.9

2.6

-5.8

0.2

3.9

6.1

9.1 21.0 -4.7

-2.5

-1.7

8.2 38.9 -32.1 -0.6

5.7 -20.5

-1.2 -13.2 13.0 -12.5 1.5

-0.8 13.1

1.9

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

Leading indicators of facility investment (trillion won)

(y-o-y, %)

60

10 9

40

8 7

20

6 0

5 4

-20

Machinery imports (right)

3 2

Machinery orders (left)

-40 2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

2018.Q1

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

January 2019

13

The Green Book

4. Construction investment Construction investment (preliminary GDP) in the third quarter of 2018 fell 6.7 percent quarter-on-quarter and 8.9 percent year-on-year.

(Percentage change from previous period)

2016

2017

2018

Annual

Annual1

Q11

Q21

Q31

Q41

Q11

Q21

Q31

10.3

7.6

4.2

0.9

1.1

-2.3

1.8

-2.1

-6.7

Construction investment2 (y-o-y)

-

-

11.3

8.5

8.0

3.8

1.8

-1.5

-8.9

- Building construction

16.2

12.1

4.5

2.4

1.9

-1.6

0.7

-1.1

-6.7

- Civil engineering works

-1.8

-3.5

3.5

-3.0

-1.2

-4.2

5.3

-4.7

-6.6

1. Preliminary

2. National accounts Source: Bank of Korea

Construction investment (%)

15

10

5

0

-5

Construction investment (y-o-y)

-10

Construction investment (q-o-q)

-15 2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

2018.Q1

Source: Bank of Korea (national accounts)

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

40 30 20 10 0 -10

Building construction

-20

Residential buildings -30

Civil engineering works

2009.Q1

2010.Q1

2011.Q1

2012.Q1

2013.Q1

2014.Q1

2015.Q1

2016.Q1

2017.Q1

2018.Q1

Source: Bank of Korea (national accounts)

14

Economic Bulletin

Construction completed (constant) in November decreased 0.9 percent month-on-month as building construction declined. The index decreased 10.6 percent year-on-year.

(Percentage change from previous period)

2016

2017

Annual Annual

Construction completed (constant)

15.4

(y-o-y)

Q1

Q2

2018 Q3

Q1

10.1

4.3 -0.2 -0.3 -0.1 17.7 13.6 12.7 -0.5

-

-

- Building construction

25.7

18.2

5.8

- Civil engineering works

-2.6

-8.4

0.6 -6.5 -6.2

1. Preliminary

Q4

2.2

1.8 -0.9 2.3

Q2

Q3

Oct1 Nov1

2.5 -4.9 -4.4 -1.8 -0.9 1.5 -3.4 -9.8 -3.1 -10.6 0.8 -2.3 -5.1 -0.4 -2.8 7.4 -12.3 -2.3 -6.1

5.3

Source: Statistics Korea

Leading indicators show mixed signals: Apartment presales increased, but construction orders received and building permits declined.

Apartment presales (thousands, monthly average of the quarter, Real Estate 114)

19 (Q1 2017) → 27 (Q2) → 30 (Q3) → 34 (Q4) → 17 (Q1 2018) → 37 (Q2) → 22 (Q3) → 24 (Q4) (Percentage change from same period in previous year)

2016

2017

Annual Annual

Construction orders received (current value)

8.1

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

-

- Building construction - Civil engineering works Building permits2 1. Preliminary

Q2

2018 Q3

Q4

Q1

Q2

Q3

Oct1 Nov1

1.2 17.9 -10.2 -15.0

3.6 -15.7

-5.7 15.4

-

-5.4

8.5 -10.6

8.0 -11.1

6.7 -24.8 15.3

14.4

-6.5

-7.7

8.4

-10.5

9.7 29.7 63.3 -17.3 -13.0 13.0 -19.1 67.0

-5.7

-3.1

Q1

-4.0

-5.0

-7.8

-1.1

-8.3 -15.5 -0.3

-2.4

-0.5 -14.7 -23.6 17.4 3.7

-3.3

-2.4

7.3

-6.4

-7.2 -10.2 -11.1

-5.3

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

Leading indicators of construction investment (y-o-y, %)

200

150

100

50

0

-50

Construction orders -100

Building permit area

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

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

January 2019

15

The Green Book

5. Exports and Imports Exports (preliminary) decreased 1.2 percent year-on-year to US $48.46 billion in December.

By item, automobiles, vessels, petroleum products rose, while home appliances, computers and wireless communications devices dropped. By region, shipments to the EU, the US, India and Vietnam increased, while exports to Latin America, China and the Middle East declined.

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

27.2 (automobiles), 26.4 (vessels), 8.4 (petroleum products), -11.7 (home appliances), -16.9 (computers), -33.7 (wireless communications devices)

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

22.6 (EU), 22.0 (US), 9.9 (India), 1.1 (Vietnam), -9.3 (Latin America), -13.9 (China), -27.0 (Middle East)

Average daily exports, an indicator calculated according to days worked, fell 1.2 percent year-on-year to US $2.15 billion.

Average daily export growth (y-o-y, %)

10.7 (Q1 2018) → 3.9 (Q2) → 7.0 (Q3) → -4.1 (Oct) → 4.1 (Nov) → -1.2 (Dec)

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

140 120 100 80 60 40 20

Export growth rate Automobiles Semiconductors

0 -20 -40 -60 -80

Steel

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

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

2016

2017

Annual Annual

Exports

Q3

2018 Q4

Dec Annual

Q1

Q2

Q3

Q4

Nov

Dec1

495.43 573.69 151.05 143.54 49.04 605.47 145.10 151.60 153.60 155.10 51.77 48.46

(y-o-y, %)

-5.9

15.8

24.0

8.4

8.8

5.5

9.8

3.1

1.7

8.1

4.1

-1.2

Average daily exports

1.81

2.13

2.13

2.23

2.18

2.24

2.17

2.30

2.28

2.23

2.16

2.15

1. Preliminary Source: Korea Customs Service

16

Economic Bulletin

Imports (preliminary) in December rose 0.9 percent year-on-year to US $43.91 billion.

Imports of commodities and consumer goods continued to grow, and capital goods imports fell at a faster rate.

Import growth by category (y-o-y, Nov → Dec)

25.2 → 5.7 (commodities), -3.8 → -8.7 (capital goods), 3.7 → 7.6 (consumer goods)

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

100 80 60 40 20 0 -20

Import growth rate Commodities Capital goods

-40 -60 -80 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

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

(US $ billion)

2016

2017

Annual Annual

Imports

Q3

2018 Q4

Dec Annual Q1

Q2

Q3

Q4

Nov

Dec1

406.19 478.48 120.85 123.40 43.53 534.99 132.37 133.08 130.31 139.23 46.84 43.91

(y-o-y, %)

-6.9

17.8

17.9

11.6

13.6

11.8

13.7

13.0

7.8

12.8

11.5

0.9

Average daily imports

1.49

1.78

1.70

1.91

1.93

1.98

1.98

2.02

1.93

2.00

1.95

1.95

1. Preliminary Source: Korea Customs Service

The trade balance (preliminary) posted a surplus of US $4.56 billion in December, staying in the black for the 83rd consecutive month. Surpluses decreased month-on-month.

(US $ billion)

2016 Annual Annual

Trade balance

2017 Q3

2018 Q4

89.23 95.22 30.20 20.14

Dec Annual

Q1

Q2

Q3

Q4

5.51 70.49 12.70 18.55 23.33 15.91

Nov

Dec1

4.93

4.56

1. Preliminary Source: Korea Customs Service

January 2019

17

The Green Book

6. ‌ Mining and manufacturing production Mining and manufacturing production fell 1.7 percent month-on-month in November as manufacturing, as well as gas & electricity, weakened. The index rose 0.1 percent year-on-year.

Compared to the previous month, production of mechanical equipment (up 1.0%), processed metals (up 0.8%) and electrical equipment (up 0.4%) rose, while electronic components (down 0.7%), other transportation equipment (down 1.0%) and nonmetallic minerals (down 0.5%) fell.

Compared to a year ago, production of mechanical equipment (up 2.1%), food (up 2.7%) and beverages (up 6.0%) rose, while other transportation equipment (down 15.8%), broadcasting & communications equipment (down 11.1%) and automobiles (down 3.7%) declined.

The manufacturing inventory-shipment ratio rose 4.6 percentage points month-on-month to 112.3 percent as inventories rose 1.7 percent and shipments fell 2.5 percent.

Inventories of refined petroleum (up 9.5%), semiconductors (up 4.4%) and electronic components (up 6.3%) rose, while chemical products (down 1.5%), rubber & plastics (down 1.0%) and automobiles (down 0.3%) declined.

Shipments of other transportation equipment (up 3.3%), clothing & fur (up 11.0%) and food (up 1.7%) rose, while semiconductors (down 16.3%), broadcasting & communications equipment (down 16.4%) and automobiles (down 2.9%) fell.

The capacity utilization rate of the manufacturing sector fell 1.1 percentage points month-on-month to 72.7 percent.

Industrial production (%)

50 40 30 20 10 0 -10

Industrial production (y-o-y)

-20 -30

Industrial production (m-o-m)

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Statistics Korea (industrial activity trends)

18

Economic Bulletin

Expansionary fiscal policies and strong consumption are expected to support mining and manufacturing, but there are concerns with regard to trade conflicts between the US and China, Fed’s rate hikes and global financial market volatility.

Capacity utilization rate (%)

90

85

80

75

70

65

60 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Statistics Korea (industrial activity trends)

(Percentage change from same period in previous year)

2017 Annual Q3

Q2

Q3

Sep

Oct1 Nov1

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

-

0.8

-1.2

2.7

0.6

-2.9

1.3

-1.7

(y-o-y)

1.9

4.6

-1.1

0.7

-1.8

-8.6 10.9

0.1

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

-

0.6

-1.5

3.0

0.3

-2.3

1.1

-1.9

(y-o-y)

1.6

4.6

-1.9

0.5

-2.3

-9.1 11.2

0.1

Shipment

0.7

4.3

-0.4

-0.8

-3.1

-9.0 11.2

-2.3

-Domestic consumption

1.4

6.1

-0.6

-1.3

-5.1 -12.6 12.9

-1.3

-Exports

-0.3

1.8

-0.1

-0.1

-0.3

-3.9

8.9

-3.8

Inventory3

8.8

2.5

4.9

8.2

5.3

5.3

2.8

5.9

Mining and manufacturing²

Production

Manufacturing

2018 Nov

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

72.6 73.0 71.7 73.2 74,2 73.7 73.8 72.7 1.1

0.7

0.0

-1.0

-1.5

-2.1

-1.9

-1.8

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

January 2019

19

The Green Book

7. ‌ Service sector activity Service output decreased 0.2 percent month-on-month in November.

Wholesale & retail, transportation & storage services and hotels & restaurants rose, while information & communications services, financial & insurance services and real estate & renting declined. Compared to a year ago, service output rose 1.0 percent.

Service sector activity (%)

10 8 6 4 2 0 -2

Service sector activity (y-o-y) -4

Service sector activity (m-o-m)

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Statistics Korea (industrial activity trends (Percentage change from previous period)

Weight

2016 2017 Annual Annual

2018 Q1

Q2

Q31

Oct1

Nov1

Service activity index

100.0

2.6

1.9

1.0

0.2

0.1

0.6

-0.2

- Wholesale & retail

21.1

2.6

0.7

1.0

-0.6

0.0

0.6

1.7

- Transportation & storage services

9.0

2.2

1.6

-0.6

3.7

-1.1

-0.6

1.3

- Hotels & restaurants

6.2

2.3

-1.9

-2.0

1.6

0.3

-1.9

1.5

- Information & communications services

8.0

2.5

1.5

1.5

-2.0

1.2

-1.0

-1.4

- Financial & insurance services

14.1

4.1

5.1

1.4

1.0

-1.5

2.4

-3.5

- Real estate & renting

3.2

0.6

1.2

5.1

-0.6

0.2

-2.2

-3.5

- Professional, scientific & technical services

7.1

-0.8

-1.6

3.2

0.0

-1.5

2.9

0.8

- Business services

4.8

1.5

4.3

0.2

-1.9

-1.2

2.4

-0.2

- Education services

10.6

0.7

0.0

0.1

0.4

-0.7

1.8

0.1

- Healthcare & welfare services

9.4

8.1

7.0

1.5

-0.2

6.4

-2.5

0.6

- Entertainment & leisure

2.2

2.3

0.2

2.0

-1.7

-0.6

-4.8

1.9

- Membership organizations & personal services

3.2

0.3

0.0

1.4

0.1

-2.0

5.1

-2.2

- Sewerage & waste management

1.1

3.1

-2.3

2.3

1.0

-0.8

11.5

-5.1

1. Preliminary Source: Statistics Korea

20

Economic Bulletin

November 2018 service output by business (y-o-y, %))

10

Healthcare & social welfare services

8 6 4 Total index

2 0

Professional, scientific & technical services

Transportation & storage services Financial & insurance services

Hotels & restaurants Wholesale & retail

-2 -4

Education services

Real estate & renting

Information & communications services

Entertainment & leisure

Sewerage & waste management

Membership organizations & personal services

Business services

Source: Statistics Korea (industrial activity trends)

Wholesale & retail (%)

10 8 6 4 2 0 -2

Wholesale & retail (y-o-y)

-4 -6

Wholesale & retail (m-o-m)

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Statistics Korea (industrial activity trends

In December department store sales and auto sales increased, as well as stock transactions, but large discount store sales declined.

2018 Sep

Oct

Nov1

Dec1

3.3

6.8 -18.7

23.1

-0.4

3.3

5.0

3.2

2.9

4.3

3.9

-3.4

0.5

-3.0

0.9

-2.5

2.0

7.5 -12.2

-1.7

-3.6

Average daily stock transactions (trillion won) 15.0

12.5

9.0

8.8

10.8

9.6

8.4

8.7

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

49.0

45.9

41.0

36.4

37.7

May

Jun

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

-0.3

-5.9

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

2.0

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

46.1

Jul

Aug

41.1 37.92

1. Preliminary 2. ‌ Advanced estimates based on all Chinese entries, which can be different from the statistic released by the Ministry of Culture, Sports and Tourism as it excludes diplomatic and military personnel Sources: Korea Automobile Manufacturers Association, Korea Exchange, data provided by retail industries

January 2019

21

The Green Book

8. ‌ Employment The number of workers on payroll in December increased by 34,000 from a year earlier to 26,638,000, and the employment rate (aged 15-64) fell 0.1 percentage points to 66.5 percent.

By industry, jobs in services and construction grew at a slower rate, while manufacturing jobs declined at a faster rate.

By employment status, permanent workers led job growth, while temporary and self-employed workers continued to decrease.

Number of persons employed and employment growth (thousands)

Number of employed (seasonally adjusted, right) Employment growth (y-o-y, left)

(millions)

1,000

28

800

27

600

26

400

25

200

24

0

23

-200

22

-400

21 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Statistics Korea (employment trends)

Employment by industry (%)

100

80

60

Services

40

Construction 20

Manufacturing Agriculture, forestry & fisheries

71.9 71.5 71.1 70.6 70.2 70.1 70.4 70.6 70.4 70.3 70.5 70.9 71.1 71.2 70.9 70.3 70.0 70.1 70.1 70.2 69.9 69.8 70.1

7.3

7.3

7.3

7.4

7.5

7.5

7.4

7.3

7.5

7.5

7.6

7.7

7.6

7.5

7.5

7.5

7.5

7.5

7.5

7.5

7.6

7.7

7.8

17.4 17.5 17.2 17.0 17.0 17.1 17.0 16.9 16.9 16.9 17.0 17.4 17.6 17.5 17.1 16.6 16.7 16.5 16.6 16.5 16.7 16.7 16.5

0

3.4

3.7

2017.1 2

4.4

5.0

5.3

5.4

5.2

5.3

5.3

5.3

5.0

4.0

3

4

5

6

7

8

9

10

11

12 2018.1 2

3.8

3.8

4.5

5.2

5.5

5.5

5.4

5.5

5.5

5.5

5.3

3

4

5

6

7

8

9

10

11

Source: Statistics Korea (employment trends)

22

Economic Bulletin

Employment by status of workers (%)

100

3.7

3.8

4.0

4.3

4.3

4.4

4.3

4.3

4.3

4.4

3.7

4.2

3.7 3.7

3.9

4.2

4.3

4.3

4.4

4.4

4.3

4.2

4.2

21.3 21.4 21.4 21.3 21.2 21.2 21.2 21.3 21.3 21.4 21.1 21.0 21.1 21.2 21.2 21.2 21.1 21.0 21.1 21.1 21.0 20.9 20.7

80 5.7

5.5

5.4

5.8

5.9

5.9

5.9

5.4

5.6

5.6

5.6

5.7

5.2

5.4

5.3

5.4

5.4

5.4

5.4

5.2

5.5

5.6

5.8

60 18.4 18.3 18.6 18.7 18.9 19.0 18.9 18.8 18.7 18.7 18.8 18.5 17.8 17.5 18.1 18.3 18.4 18.4 18.5 18.1 18.0 18.1 18.2

Unpaid family workers Self-employed workers Daily workers

40

20

50.8 51.0 50.6 49.9 49.7 49.6 49.8 50.2 50.0 50.0 50.2 51.1 52.0 52.4 51.5 50.9 50.8 50.8 50.7 51.3 51.2 51.2 51.1

Temporary workers 0

Regular workers

2017.1 2

3

4

5

6

7

8

9

10

11

12 2018.1 2

3

4

5

6

7

8

9

10

11

Source: Statistics Korea (employment trends)

2017 Annual

Number of employed (millions)

Q3

2018 Q4

Dec

26.73 27.00 26.88 26.60

Annual

Q1

Q2

Q3

Q4

Dec

26.82 26.28 27.02 27.02 26.97 26.64

Employment rate (%)

60.8

61.4

61.0

60.4

60.7

59.6

61.2

61.1

60.9

60.1

(Seasonally adjusted)

60.8

60.8

60.9

61.0

60.7

60.9

60.7

60.5

60.7

60.7

- 15 to 64

66.6

67.0

66.9

66.6

66.6

66.0

66.9

66.7

66.8

66.5

Employment growth (y-o-y, thousands)

316

279

265

257

97

183

101

17

88

34

- Manufacturing

-18

30

41

77

-56

45

-91

-91

-88

-127

- Construction

119

84

92

83

47

69

16

45

56

35

- Services

209

144

103

37

51

18

125

6

55

47

· Wholesale & retail

41

20

28

-7

-72

-74

-50

-87

-77

-63

· Hotels & restaurants

-3

-31

-40

-58

-45

-24

-24

-69

-65

-39

·H ‌ ealthcare & social welfare services

61

53

54

22

125

51

148

142

159

154

- Wage workers

265

291

265

255

150

228

113

65

192

128

· Permanent workers

366

417

382

406

345

409

335

293

342

333

· Temporary workers

-132

-145

-104

-102

-141

-124

-109

-162

-170

-256

31

19

-13

-50

-54

-57

-113

-67

19

51

51

-12

0

2

-52

-45

-13

-48

-104

-94

68

23

20

18

-44

-24

-3

-55

-93

-94

· Daily workers - Nonwage workers · Self-employed workers - Male

127

92

72

85

4

75

-14

-48

1

-14

- Female

189

187

193

172

94

109

115

65

87

48

- 15 to 29

-1

-7

-42

-52

-3

26

-69

-27

58

38

- 30 to 39

-29

-18

-17

-26

-61

-29

-33

-91

-92

-103

- 40 to 49

-50

-55

-54

-60

-117

-85

-101

-143

-139

-135

- 50 to 59

152

139

134

146

44

67

62

26

21

31

- 60 and above

242

221

243

250

234

203

241

252

239

203

Source: Statistics Korea

January 2019

23

The Green Book

The number of unemployed persons in December moved up by 31,000 from a year earlier to 944,000, and the unemployment rate rose 0.1 percentage points to 3.4 percent.

The unemployment rate fell year-on-year among young adults and those in their 30s but rose among those aged 40 and older.

Unemployment rate (%)

6

5

4

3

Seasonally adjusted rate Original data

2 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Statistics Korea (employment trends)

2017 Annual

Q3

2018 Q4

Dec

Annual

Q1

Q2

Number of unemployed (thousands)

1,023

963

892

913

Unemployment growth (y-o-y, thousands)

14

-20

14

49

50

19

31

- Male

12

-8

42

74

23

13

1

-12

-28

-25

27

Unemployment rate (%)

3.7

3.4

3.2

3.3

(Seasonally adjusted)

3.7

3.7

3.7

- 15 to 29

9.8

9.3

- 30 to 39

3.3

- 40 to 49

Q3

Dec

942

944

102

50

31

15

42

24

26

6

17

60

25

5

3.8

4.3

3.9

3.8

3.4

3.4

3.7

3.8

3.7

3.8

4.0

3.8

3.8

9.0

9.2

9.5

10.0

10.1

9.4

8.3

8.6

3.0

3.0

3.0

3.4

3.3

3.6

3.6

3.0

2.8

2.1

2.0

1.8

1.8

2.5

2.5

2.5

2.6

2.3

2.3

- 50 to 59

2.2

2.3

1.8

1.9

2.5

2.5

2.6

2.6

2.3

2.4

- 60 and above

2.9

2.2

2.2

2.6

3.1

5.4

2.5

2.3

2.4

2.5

- Female

1073 1,181 1,105 1,065

Q4

Source: Statistics Korea

24

Economic Bulletin

The economically inactive population in December increased 190,000 from a year earlier to 16,733,000, and the labor force participation rate fell 0.3 percentage points to 62.2 percent.

The number of persons economically inactive due to rest (up 127,000) and housework (up 55,000) increased, and those due to education (down 136,000) and childcare (down 38,000) decreased. Job seekers were up by 75,000.

Labor force participation rate (%)

65

64

63

62

61

60

Seasonally adjusted rate Original data

59 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Statistics Korea (employment trends)

2017 Annual

Economically inactive population (millions)

Q3

2018 Q4

Dec

16.18 16.01 16.26 16.54

Annual

Q1

Q2

Q3

Q4

Dec

16.29 16.62 16.02 16.13 16.38 16.73

Labor force participation rate (%)

63.2

63.6

63.1

62.5

63.1

62.3

63.7

63.5

63.0

62.2

(Seasonally adjusted)

63.2

63.1

63.2

63.3

63.1

63.3

63.1

63.1

63.2

63.1

-5

56

30

-1

104

68

110

126

112

190

-96

-105

-107

-97

-76

-80

-87

-86

-50

-38

8

8

-33

-30

76

52

85

94

75

55

- Education

-91

-88

-81

-86

-106

-58

-62

-128

-176

-136

- Old age

81

98

69

51

15

35

6

16

4

33

108

166

220

207

118

107

127

137

103

127

45

79

-10

-27

24

15

17

2

64

75

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

- Rest - Job seeking Source: Statistics Korea

January 2019

25

The Green Book

9. ‌ Financial markets 9.1 Stock market KOSPI fell 2.7 percent in December from 2,096.9 points to 2,041.0 points amid continuing trade conflicts between the US and China, rising uncertainties over the Chinese economy and growing concerns about a slowdown of the local economy. KOSDAQ dropped 4.8 percent from 695.8 points to 675.7 points.

(Closing rate)

KOSPI Nov 2018 Dec 2018

KOSDAQ Change

1

Nov 2018 Dec 2018

Change1

Stock price index (points)

2,096.9

2,041.0

-55.9 (-2.7%)

695.8

675.7

-20.1 (-4.8%)

Market capitalization (trillion won)

1,403.5

1,344.0

-59.5 (-4.2%)

233.0

228.2

-4.8 (-2.1%)

5.3

5.2

-0.1 (-1.9%)

3.1

3.2

0.1 (2.2%)

36.0

35.8

-0.2 (-0.6%)

11.0

11.1

0.1 (0.5%)

Daily trade (trillion won) Foreign stock ownership (%, %p)

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

Stock prices (monthly average, points)

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

KOSPI KOSDAQ

300 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.

Source: Korea Exchange

9.2 Exchange rate The dollar-won exchange rate declined 0.5 percent in December from 1,121.2 won to 1,115.7 won on expectations that Fed might slow down its rate hikes, and also due to concerns about a prolonged US government shutdown.

The 100 yen-won exchange rate rose 2.0 percent from 988.8 won to 1,008.9 won.

26

Economic Bulletin

(Closing rate1)

2012

2013

2014

2015

2016

2017

Dec

Dec

Dec

Dec

Dec

Dec

Nov

Dec

Change2

1,070.6

1,055.4

1,099.3

1,172.5

1,207.7

1,070.5

1,121.2

1,115.7

0.5

100 Yen-Won 1,238.3

1,002.3

913.0

974.1

1,035.4

949.3

988.8

1,008.9

-2.0

Dollar-Won

2018

1. The exchange rate is based on the closing price at 3:30 p.m., local time.

2. Appreciation from the end of the previous month as of end-December 2018 (%) Source: Bank of Korea

Foreign exchange rates (month-end, â‚Š)

1,600

1,400

1,200

1,000

Dollar-Won 100 Yen-Won

800 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Bank of Korea

9.3 Bond market Korea treasury yields declined in December on expectations that Fed may slow down its rate hikes. Growing uncertainties with regard to Brexit and US-China trade negotiations, as well as global slowdown concerns, also brought about falling yields.

Yield to maturity (m-o-m, basis points)

-8.0 (3 yrs), -8.8 (5 yrs), -15.8 (10 yrs), -9.3 (20 yrs), -4.7 (30 yrs) (Closing rate, %)

2012

2013

2014

2015

2016

2017

2018

Dec

Dec

Dec

Dec

Dec

Dec

Oct

Nov

Dec

Call rate (1 day)

2.77

2.52

2.03

1.52

1.27

1.58

1.57

1.76

1.89

13.0

CD (91 days)

2.89

2.66

2.13

1.67

1.52

1.66

1.70

1.90

1.93

3.0

Change1

Treasury bonds (3 yrs)

2.82

2.86

2.10

1.66

1.64

2.14

1.94

1.90

1.82

-8.0

Corporate bonds (3 yrs)

3.29

3.29

2.43

2.11

2.13

2.68

2.39

2.37

2.29

-8.0

Treasury bonds (5 yrs)

2.97

3.23

2.28

1.81

1.80

2.34

2.07

1.97

1.88

-8.8

1. Basis points, change from previous month as of end-December 2018 Source: Bank of Korea

January 2019

27

The Green Book

Interest rates (monthly average, yearly, %)

8 7 6 5 4 3 2

Overnight call rate (daily)

1

3-yr Treasury bond yield 0

3-yr corporate bond yield

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Bank of Korea

9.4 Money supply and money market M2 (monthly average) in October rose 6.8 percent from a year ago as private sector credit continued to increase, led by businesses.

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

2011

2012

2013

2014

2015

2016

2017

Annual

Annual

Annual

Annual

Annual

Annual

Annual

Sep

Oct

Oct1

M12

6.6

3.8

9.5

10.9

18.6

15.4

9.2

4.3

1.7

840.7

M2

4.2

5.2

4.8

6.6

8.6

7.3

5.5

6.4

6.8

2,674.5

5.3

7.8

6.9

7.0

9.7

8.1

6.7

7.2

7.4

3,759.6

Lf

3

2018

1. Balance at end-October 2018, trillion won 2. M1 excludes corporate MMFs and individual MMFs, and includes CMAs 3. Liquidity aggregates of financial institutions (mostly identical with M3) Source: Bank of Korea

Bank deposits grew only 0.2 trillion won in November, a huge drop from 11.5 trillion won in the previous month. Money flowed out from instant access deposits (down 3.8 trillion won) and time deposits (down 0.8 trillion won). Local governments withdrew funds from time deposits for their year-end spending.

Asset management company (AMC) deposits decreased 1.2 trillion won as money flowed out from money market funds (MMFs) (down 6.3 trillion won). The government withdrew its surplus funds from MMFs, and banks also withdrew their funds in MMFs. 28

Economic Bulletin

(Change from the end of previous period, trillion won)

2011

2012

2013

2014

2015

2016

2017

Annual Annual Annual Annual Annual Annual Annual

2018 Sep

Oct

Nov

Nov1

Bank deposits

58.9

37.0

41.0 115.4 100.3

80.8

79.5

15.4

11.5

0.2 1,628.3

AMC deposits

-16.6

18.8

17.7

47.6

27.9

-13.4

20.6

-1.2 561.0

42.4

44.4

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

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

35 30 25 20 15 10

Reserve money M1 Lf

5 0 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Bank of Korea

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

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

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Bank of Korea

January 2019

29

The Green Book

10. Balance ‌ of payments Korea’s current account (preliminary) in November posted a surplus of US $5.06 billion, staying in the black for 81 consecutive months.

Goods account surpluses grew at a slower pace month-on-month from US $11.00 billion to US $7.97 billion.

Growth in goods exports (y-o-y, %) 22.6 (Oct 2018) → 4.1 (Nov)

Growth in goods imports (y-o-y, %) 28.1 (Oct 2018) → 11.5 (Nov)

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

158.4 (vessels), 20.8 (petroleum products), -10.8 (computers), 11.6 (semiconductors), -16.8 (home appliances)

Import growth by category in November (y-o-y, %, customs clearance basis) 25.2 (commodities), -3.8 (capital goods), 3.7 (consumer goods)

Services account deficits increased month-on-month from US $2.22 billion to US $2.29 billion.

Services balance (US $ billion, Oct → Nov)

-0.39 → -0.14 (transportation), 0.73 → 0.66 (construction), -0.27 → 0.08 (intellectual property rights), -0.67 → -0.67 (manufacturing), -0.95 → -1.27 (travel), -0.95 → -1.19 (others)

Surpluses in the primary income account decreased from US $0.96 billion to US $0.03 billion, and deficits in the secondary income account increased from US $0.54 billion to US $0.65 billion.

Current account balance (US $ billion)

18 15 12 9 6 3

Current account Goods account Services account

0 -3 -6 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Bank of Korea (balance of payments trends)

30

Economic Bulletin

(US $ billion)

2016

2017 1

Annual Annual

Current account

99.24

Q1

1

Q2

1

2018 1

Q3

1

Q4

Nov

1

Q1

1

Q2

1

Q31 Nov1

78.46 19.20 16.45 25.57 17.24 7.43 11.83 17.83 28.03 5.06

- Goods balance

118.90 119.89 27.31 29.56 34.75 28.27 11.46 23.91 31.78 35.91 7.97

- Services balance

-17.74 -34.47 -8.66 -6.75 -8.50 -10.56 -3.27 -9.41 -6.53 -7.75 -2.29

- Primary income balance

3.85

- Secondary income balance -5.77

0.12 1.37 -4.88 1.95

1.68 -0.07 0.39 -5.17 1.94 0.03

-7.08 -0.82 -1.48 -2.63 -2.15 -0.70 -3.06 -2.26 -2.07 -0.65

1. Preliminary Source: Bank of Korea

The capital and financial account (preliminary) in November posted an outflow of US $4.26 billion.

Capital & financial account balance* (US $ billion)

4.63 (Jun 2018) → 10.46 (Jul) → 7.28 (Aug) → 9.73 (Sep) → 10.59 (Oct) → 4.26 (Nov) * Positive figures represent net outflows, and negative figures represent net inflows.

Net outflows decreased in foreign direct investment (FDI) (US $3.36 billion in October → US $0.22 billion in November) as Korean FDI (US $4.32 billion outflow → US $2.01 billion outflow) went down while inbound FDI went up (US $0.96 billion inflow → US $1.79 billion inflow).

Net outflows decreased in portfolio investment (US $6.75 billion in October → US $5.03 billion in November) as outflows decreased in foreign investment in Korean shares (US $4.08 billion outflow → US $0.19 billion outflow).

Korean investment in foreign shares continued to rise (US $2.67 billion outflow → US $4.84 billion outflow).

Net outflows decreased in financial derivatives investment (US $0.77 billion outflow → US $0.34 billion outflow) and net inflows declined in other investment (US $2.45 billion inflow → US $1.29 billion inflow).

Current account surpluses for December will remain stable given trade surpluses (US $4.90 billion in November → US $4.60 billion in December) have declined slightly.

January 2019

31

The Green Book

11. ‌ Prices 11.1 Consumer prices Consumer prices in December fell 0.3 percent from the previous month and rose 1.3 percent from the same period of the previous year.

(Percentage change)

2018 Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Consumer price inflation (m-o-m) -0.1

0.2

0.0

-0.2

-0.2

0.9

0.8

-0.2

-0.7

-0.3

(y-o-y)

1.5

1.5

1.5

1.1

1.4

2.1

2.0

2.0

1.3

1.2

Source: Statistics Korea

Consumer price inflation (%)

6 5 4 3 2 1 0

Consumer price inflation (y-o-y) Consumer price inflation (m-o-m)

-1 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Statistics Korea (consumer price trends)

Fresh food prices went up at a slower pace (up 7.6% → 5.2%, y-o-y) as vegetable and meat prices declined month-on-month and fish prices stabilized.

Fresh food prices in December (m-o-m/y-o-y, %) -5.6/5.5 (vegetables), -0.5/-2.4 (meat), 0.1/1.7 (fish)

Domestic oil prices declined (up 6.6% → down 2.8%, y-o-y) due to falling international oil prices and a strong won, as well as fuel tax cuts.

Personal service prices have been stable (up 2.8% → up 2.5%, y-o-y), the expanded coverage of national health insurance and national school lunch programs continuing to have an effect.

32

Economic Bulletin

Contribution to consumer price inflation (%p)

5

Personal services

3

Public services Housing rents 1

Public utilities Manufactured products Agricultural, livestock & fishery products

-1 2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Source: Statistics Korea (consumer price trends)

Consumer price inflation in major sectors Manufactured Oil Public Housing Public Personal products products utilities rents services services

Total

Fresh foods

Nov (y-o-y, %)

2.0

7.6

1.4

6.6

1.5

0.3

0.2

2.8

Dec (y-o-y, %)

1.3

5.2

0.1

-2.8

1.4

0.3

0.1

2.5

-

0.39

0.05

-0.13

0.05

0.03

0.01

0.8

- Contribution (%p) Source: Statistics Korea

Core inflation, which excludes oil and agricultural products, decelerated in December (up 1.4% → up 1.3%, y-o-y).

(Percentage change from same period in previous year)

2018 May Jun

Jul

Aug Sep

Oct

Nov Dec

Consumer prices excluding oil and agricultural products 1.3

1.2

0.8

0.9

1.3

1.2

1.4

1.3

Consumer prices excluding food and energy

1.3

1.0

1.0

1.1

1.0

1.2

1.1

1.4

Source: Statistics Korea

The fresh food price index rose at a slower rate (up 10.5% → up 6.6%, y-o-y) in December.

(Percentage change from same period in previous year)

2018 May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Consumer prices for basic necessities

1.5

1.5

1.1

1.5

2.5

2.6

2.3

1.3

Fresh food prices

1.9

-0.2

-1.3

4.8

11.0

11.2

10.5

6.6

Source: Statistics Korea

January 2019

33

The Green Book

Prices (y-o-y , %)

9

6

3

0

Consumer price inflation Core inflation

-3

-6

Producer price inflation

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

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

11.2 International oil and commodity prices International oil prices fell in December amid concerns about a supply glut and slowdown in global demand. Dubai crude prices posted US $49.5 per barrel on December 26, the lowest since August 31, 2017.

Dubai crude (US $/barrel)

60.16 (1st week Dec 2018) → 59.26 (2nd week) → 55.83 (3rd week) → 51.82 (4th week)

International oil prices (US $/B)

140 120 100 80 60 40 20

WTI Dubai crude

0 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Korea National Oil Corporation

34

Economic Bulletin

(US $/barrel, period average)

2017

2018

Annual

Q1

Q2

Q3

Q4

Oct

Nov

Dec

Dubai crude

53.2

64.0

72.1

74.2

68.3

79.4

65.6

57.3

WTI crude

50.9

62.9

67.9

69.4

59.3

70.8

56.7

49.0

Brent crude

54.7

67.2

75.0

75.8

68.6

80.6

65.9

57.7

Source: Korea National Oil Corporation

Domestic gasoline prices continued to fall in December in line with declining international oil prices.

Domestic gasoline prices (won/liter)

1,481.0 (1st week Dec 2018) → 1,451.7 (2nd week) → 1,426.5 (3rd week) → 1,397.4 (4th week)

International gasoline prices (US $/barrel)

65.5 (3rd week Nov 2018) → 59.5 (4th week) → 60.4 (1st week Dec) → 59.8 (2nd week)

Dollar-won exchange rate (won)

1,129 (3rd week Nov 2018) → 1,129 (4th week) → 1,114 (1st week Dec) → 1,125 (2nd week)

(Won/liter, period average)

2017

2018

Annual

Q1

Q2

Q3

Q4

Oct

Nov

Dec

Gasoline prices

1,491

1,558

1,580

1,622

1,565

1,681

1,581

1,433

Diesel prices

1,283

1,353

1,380

1,423

1,411

1,485

1,425

1,324

Source: Korea National Oil Corporation

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

(US $/B)

160

160

140

140

120

120

100

100

80

80

60

60

40

40

Dubai crude (import prices, left) Dubai international prices (right)

20

20 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Korea National Oil Corporation

January 2019

35

The Green Book

International corn and soybean prices rose in December as China resumed US soybean imports following a truce in the US-China trade war. Wheat prices also rose as inventories are expected to decline.

International grain prices in December (monthly average prices, m-o-m, %) 3.5 (corn), 2.5 (wheat), 2.3 (soybeans)

Copper prices fell on concerns over China’s economic slowdown. Aluminum and nickel prices declined due to sluggish auto sales in China.

Nonferrous metal prices in December (monthly average prices, m-o-m, %) -1.7 (copper), -0.4 (aluminum), -3.7 (nickel)

(Period average)

2017 Reuters Index1 (Sep 18, 1931=100)

2018

Annual

Q1

Q2

Q3

Q4

Oct

Nov

Dec

2,472

2,342

2,317

2,309

2,382

2,392

2,378

2,373

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

International commodity prices (points)

(points)

500

4,000

450 400

3,000

350 300

2,000

250 200

1,000

150

CRB (left) Reuters index (right)

100

0 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

Source: Korea PDS *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.

36

Economic Bulletin

12. Real ‌ estate market 12.1 Housing market Housing prices nationwide fell 0.01 percent month-on-month in December.

Housing prices rose 0.07 percent in the Seoul metropolitan area which includes Seoul (up 0.04%), Gyeonggi Province (up 0.03%) and Incheon (up 0.32%).

Housing prices rose 0.07 percent in the five metropolitan cities and declined 0.17 percent in the eight provinces.

Housing prices in five metropolitan cities (m-o-m, %)

Busan (-0.18), Daegu (0.44), Gwangju (0.42), Daejeon (0.50), Ulsan (-0.89)

Housing sales prices

(Percentage change from previous period)

2014 2015 2016

2017

Annual Annual Annual Annual

2018

Dec

Annual

Sep

Oct

Nov

Dec

Nationwide

1.7

3.5

0.7

1.5

0.11

1.1

0.31

0.19

0.13

-0.01

Seoul metropolitan area

1.5

4.4

1.3

2.4

0.25

3.3

0.70

0.42

0.25

0.07

- Seoul

1.1

4.6

2.1

3.6

0.59

6.2

1.25

0.51

0.20

0.04

· Gangnam

1.2

5.2

2.5

4.4

0.82

6.5

1.45

0.45

0.08

-0.07

· Gangbuk

1.1

3.9

1.8

2.9

0.36

5.9

1.04

0.57

0.34

0.16

1.9

2.7

0.2

0.7

-0.01

-0.9

-0.04

-0.02

0.02

-0.08

1

2

Areas excluding the Seoul metropolitan area

1. Southern Seoul 2. Northern Seoul Source: Korea Appraisal Board

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

3

2

1

0

Nationwide

-1

Seoul metropolitan area Areas excluding Seoul metropolitan area

-2 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Korea Appraisal Board

January 2019

37

The Green Book

Housing rental prices nationwide declined 0.19 percent month-on-month in December.

Housing rental prices fell 0.19 percent in the Seoul metropolitan area and declined 0.18 percent in areas excluding the Seoul metropolitan area.

Housing rental prices in major districts in the Seoul metropolitan area (m-o-m, %) Gangnam (-0.28), Seocho (-0.67), Songpa(-0.27), Gangdong (-0.45), Hanam(-1.34)

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

3

2

1

0

Nationwide

-1

Seoul metropolitan area Areas excluding Seoul metropolitan area

-2 2009.1

2010.1

2001.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Korea Appraisal Board

Housing rental prices

(Percentage change from previous period)

2014 2015 2016

2017

Annual Annual Annual Annual

2018

Dec

Annual

Sep

Oct

Nov

Dec

Nationwide

3.4

4.8

1.3

0.6

-0.03

-1.8

-0.08

-0.05

-0.09

-0.19

Seoul metropolitan area

4.7

7.1

2.0

1.4

-0.01

-1.5

0.04

0.06

-0.06

-0.19

- Seoul

3.6

7.2

2.0

2.0

0.17

0.3

0.26

0.17

0.00

-0.13

¡ Gangnam

3.3

7.9

1.8

2.6

0.21

-0.3

0.36

0.18

-0.05

-0.19

¡ Gangbuk

3.8

6.5

2.1

1.5

0.13

0.8

0.15

0.17

0.05

-0.06

2.2

2.8

0.7

-0.1

-0.05

-2.1

-0.19

-0.15

-0.12

-0.18

1

2

Areas excluding the Seoul metropolitan area

1. Southern Seoul 2. Northern Seoul Source: Korea Appraisal Board

There were 64,804 housing transactions in November, down 30.0 percent from a month earlier (92,566) and down 13.8 percent from a year ago (75,148).

Housing transactions 2016

2017

1

1

Annual Annual

Nationwide

88

(Thousands)

79

2018 Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

70

70

93

72

68

65

64

66

76

93

65

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

38

Economic Bulletin

Housing transactions (thousands)

150

125

100

75

50

Nationwide Seoul metropolitan area Areas excluding Seoul metropolitan area

25

0 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Ministry of Land, Infrastructure and Transport

12.2 Land market Land prices nationwide rose 0.42 percent month-on-month in November.

Land prices rose 0.50 percent in the Seoul metropolitan area which includes Seoul (up 0.61%), Gyeonggi Province (up 0.41%) and Incheon (up 0.39%).

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

0.40 (Jun 2018) → 0.46 (Jul) → 0.49 (Aug) → 0.52 (Sep) → 0.54 (Oct) → 0.50 (Nov)

Land price growth has been decelerating in areas excluding the Seoul metropolitan area.

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

0.31 (Jun 2018) → 0.31 (Jul) → 0.30 (Aug) → 0.28 (Sep) → 0.31 (Oct) → 0.27 (Nov)

Land prices

(Percentage change from previous period)

2014

2015

2016

2017

2018

Annual Annual Annual Annual Jan-Nov

Q1

Q2

Q3

Sep

Oct

Nov

Nationwide

1.96

2.40

2.70

3.88

4.23

0.99

1.05

1.25

0.43

0.45

0.42

Seoul

2.66

2.69

2.97

4.32

5.66

1.28

1.09

1.87

0.68

0.69

0.61

Gyeonggi

1.24

1.73

2.23

3.45

4.04

0.83

1.17

1.16

0.37

0.41

0.41

Incheon

1.35

1.95

1.74

3.10

3.25

0.65

0.82

0.94

0.36

0.42

0.39

Source: Korea Appraisal Board

There were 249,000 land transactions in December, down 12.0 percent from the previous month (282,000) and down 15.5 percent from a year ago (294,000).

Land transactions (m-o-m, %)

Seoul (-36.7), Gyeonggi (-15.8), Busan (-10.4)

January 2019

39

The Green Book

Vacant land transactions increased 2.9 percent from the previous month (89,000 → 91,000) accounting for 36.6 percent of the total land transactions.

The index fell 11.7 percent compared with a year ago (103,000).

Land transactions

(Land lots, thousands)

2016

2017

1

2018

1

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

Nationwide

250

276

294 296 298 252 320 265 271 255 272 248 232 282 249

Seoul

31

32

29

35

35

31

43

26

29

24

34

28

32

35

22

Gyeonggi

63

75

85

84

81

75

91

76

76

75

85

80

78

92

77

Incheon

13

16

17

16

16

15

15

16

18

15

12

12

12

15

14

1. Monthly average Source: Korea Land & Housing Corporation

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

60 50 40 30 20 10 0 -10

Land price inflation Consumer price inflation

-20 1977

1982

1987

1992

1997

2002

2007

2012

2017

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

Land transactions (thousand ㎥)

300,000

250,000

200,000

150,000

100,000

Areas excluding Seoul metropolitan area Seoul metropolitan area

50,000

0 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Korea Appraisal Board

40

Economic Bulletin

13. ‌ Composite indices of business cycle indicators Industrial output fell 0.7 percent month-on-month in November. Public administration (up 0.2%) rose while mining & manufacturing (down 1.7%), construction (down 0.9%) and services (down 0.2%) declined. Compared to a year ago, industrial output rose 0.2 percent.

Index of all industry production (%)

15

10

5

0

-5

Industrial output (y-o-y) -10

Industrial output (m-o-m)

2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

Source: Statistics Korea (industrial activity trends)

The cyclical indicator of the coincident composite index declined 0.2 points month-on-month to 98.2. Three components of the index rose, while the other four fell.

Components of the coincident composite index in November (m-o-m, %)

service output (0.1), imports (1.4), nonfarm payroll employment (0.3), mining & manufacturing production (-1.1), value of construction completed (-2.1), retail sales (-0.5), domestic shipments (-0.8)

The cyclical indicator of the leading composite index fell 0.2 points from the previous month to 98.6. Two components of the leading composite index rose, while the other six either declined or remained unchanged.

Components of the leading composite index in November (m-o-m)

domestic shipments of machinery (0.3%), value of construction orders received (1.3%), inventory circulation indicator (-1.5%p), consumer expectations index (-1.7p), ratio of export to import prices (-0.1%), ratio of job openings to job seekers (0.0%p), KOSPI (-3.0%), spreads between long & short term interest rates (-0.07%p)

January 2019

41

The Green Book

Cyclical indicator of coincident composite index (points)

110

105

100

95

90 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

2016.1

2017.1

2018.1

2016.1

2017.1

2018.1

Source: Statistics Korea (industrial activity trends)

Cyclical indicator of leading composite index (points)

110

105

100

95

90 2009.1

2010.1

2011.1

2012.1

2013.1

2014.1

2015.1

Source: Statistics Korea (industrial activity trends)

2018 Apr

Index of all industry production (m-o-m, %) (y-o-y, %) Coincident composite index (2015=100) (m-o-m, %) Cyclical indicator of coincident composite index (m-o-m, p) Leading composite index (2015=100) (m-o-m, %)

May

Jun

Jul

Aug

Sep1

Oct1

Nov1

1.4

0.3

-0.6

0.7

0.4

-1.4

0.8

-0.7

1.9

1.7

0.2

1.4

1.6

-4.9

6.9

0.2

108.9 109.1 109.2 109.2 109.2 109.1 109.2 109.3 0.1

0.2

0.1

0.0

0.0

-0.1

0.1

0.1

99.7

99.6

99.4

99.1

98.9

98.6

98.4

98.2

-0.1

-0.1

-0.2

-0.3

-0.2

-0.3

-0.2

-0.2

112.3 112.8 113.0 113.3 113.2 113.4 113.4 113.5 0.2

0.3

-0.1

0.2

0.0

0.1

Cyclical indicator of leading composite index 100.1 100.1 100.0

0.0

99.8

99.4

99.2

98.8

98.6

(m-o-m, p)

-0.2

-0.4

-0.2

-0.4

-0.2

-0.3

0.4 0.0

-0.1

1. Preliminary

42

Economic Bulletin

Government unveils its hydrogen economy roadmap

Policy Issue

Policy Isuue

Government Unveils Its Hydrogen Economy Roadmap

The government announced on January 17 its roadmap to achieve a hydrogen economy by 2040, which contains plans to promote hydrogen fuel cell cars and increase hydrogen fuel cell-based power generation.

Background The government, recognizing innovation as new growth engines, has focused on the importance of hydrogen fuel as it will lead the development of future growth engines as well as provide clean energy. New markets will be created for hydrogen fuel cell vehicles and the fuel cell-based energy generating system, and infrastructure construction for the storage and delivery of the new energy will stimulate other industries as well, boosting investment and creating jobs.

44

Economic Bulletin

Roadmap 1. Increase hydrogen fuel cell vehicles and hydrogen fueling stations - ‌ Increase hydrogen fuel cell cars by 4,000 in 2019, and work to increase production capacities to 100,000 vehicles a year by 2025 - ‌ Work to produce from 2022 hydrogen fuel cell cars whose major components are 100% locally made - ‌ Replace buses and trucks used in the public sector, such as police buses or garbage collection trucks, with hydrogen vehicles: Replacement will start from 2019 for buses and from 2021 for trucks - Work to increase hydrogen fuel cell taxies to 80,000 by 2040 - ‌ Work to set up as many as 1,200 hydrogen fueling stations by 2040: Encourage companies to build hydrogen fueling stations through specialpurpose entities, and promote transforming the existing LPG or CNG stations into ones providing hydrogen fueling services as well

2. Promote power generation from fuel cells - Work to achieve 15 gigawatts (GW) of fuel cell generation capacity by 2040 - Promote ‌ fuel cell-based power generation: Introduce a lower LNG rate for fuel cell generation, as well as offer renewable energy credits (RECs), and work to supply 1 GW fuel cells to the domestic market by 2022, which will help reduce installation costs, as well as generation costs - Work to supply 2.1 GW fuel cells for household or commercial use by 2040

3. Increase green hydrogen production - ‌ Start from by-product hydrogen and extract hydrogen from fossil fuels, and gradually replace them with green hydrogen; Work to achieve an annual production of 5.26 million tons of green hydrogen and the price of 3,000 won per kilogram by 2040

4. Set up a secure storage and delivery system - ‌ Improve the regulations on compressed gas storage, and develop techniques to store liquefied hydrogen - Build pipelines nationwide for hydrogen delivery

5. Ensure safety - Work on laws and standards to ensure safety

January 2019

45

01 Korea to promote a sharing economy 02 Government frontloads 61% of project budget in H1 2019 03 BOK forecasts 2.6% growth for 2019 04 Korea’s exports hit record high in 2018 05 Inbound FDI up 17.2% in 2018

Economic News Briefing

Korea to promote a sharing economy The government announced plans to promote a sharing economy at the 2 nd Ministerial Meeting on the Economy of this year, held on January 9. The plan contains ways to promote P2P lending, space and transportation sharing, and the development of a sharing economy for the future, such as by giving tax support for investment in R&Ds and human resources development. The government will lower taxes on interest earned from P2P lending and give income tax reduction for renting hydrogen fuel cell cars or electric cars.

Government frontloads 61% of project budget in H1 2019 A total of 176.7 trillion won, 61 percent of the budgets allocated to fiscal projects this year, will be spent in the first half, budgets for job creation and community facilities construction projects bound to be spent 65 percent. Local governments will also spend 58.5 percent of their project budgets in the first half, and will receive 61 percent of education subsidies in the first half.

BOK forecasts 2.6% growth for 2019 The Korean economy will grow 2.6 percent in 2019, according to the economic outlook report released by the Bank of Korea (BOK) on January 24. The central bank forecast 2.5 percent growth in the first half of the year and 2.8 percent in the second half.

The economy is expected to continue its steady pace of growth driven by consumption and exports, as well as expansionary fiscal policies. Around 140,000 jobs are expected to be added this year and the unemployment rate is forecast to be 3.8 percent. Consumer price inflation will stay stable at 1.4 percent.

January 2019

47

Economic News Briefing

Korea’s exports hit record high in 2018

Cargo sits on the tarmac before being loaded on a plane at a cargo terminal in Incheon International Airport on December 28, 2018. Korea’s exports surpassed US $600 billion for the first time last year.

Korea’s exports in 2018 grew 5.5 percent from the previous year to an all-time high of US $605.5 billion, led by semiconductors (US $126.7 billion), machinery (US $53.6 billion) and petrochemicals (US $50.1 billion). Korea remained a net exporter for the 10th consecutive year in 2018, imports rising 11.8 percent to US $535.0 billion and thereby trade surpluses amounting to US $70.5 billion.

Trade volume reached a record high of US $1.1 trillion, exceeding US $1 trillion for the second straight year.

Inbound FDI up 17.2% in 2018 Inbound foreign direct investment (FDI) increased 17.2 percent year-on-year to a record high of US $26.9 billion in 2018. By industry, FDI in manufacturing rose 38.9 percent to US $10.1 billion and FDI in services inched up 1.4 percent to US $15.6 billion. By region, investment from China (up 238.9%, US $2.7 billion) and the EU (up 26.9%, US $8.9 billion) reached all-time highs. US investment in Korea (up 24.8%, US $5.9 billion) also rose, while investment from Japan (down 29.4%, US $1.3 billion) decreased.

48

Economic Bulletin

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

Statistical Appendices

Statistical Appendices

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

Real GDP Period 2010 2011 2012 2013 2014 2015 2016 2017p 2010 Ⅰ Ⅱ Ⅲ Ⅳ 2011 Ⅰ Ⅱ Ⅲ Ⅳ 2012 Ⅰ Ⅱ Ⅲ Ⅳ 2013 Ⅰ Ⅱ Ⅲ Ⅳ 2014 Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ 2015 Ⅱ Ⅲ Ⅳ 2016 Ⅰ Ⅱ Ⅲ Ⅳ 2017 p Ⅰ Ⅱ Ⅲ Ⅳ 2018p Ⅰ Ⅱ Ⅲ

Agri., fores. & fisheries

6.5 3.7 2.3 2.9 3.3 2.8 2.9 3.1 7.3 7.4 5.4 6.0 4.9 3.6 3.3 3.0 4.9 3.6 3.3 3.0 2.1 2.7 3.2 3.5 3.9 3.5 3.3 2.7 2.6 2.4 3.0 3.2 3.0 3.5 2.7 2.6 2.9 2.8 3.8 2.8 2.8 2.8 2.0

-4.3 -2.0 -0.9 3.1 3.6 -0.4 -2.8 0.3 0.0 -2.2 -7.8 -5.7 -9.3 -2.5 -5.8 7.1 -9.3 -2.5 -5.8 7.1 -1.2 0.1 4.3 7.0 5.9 4.5 2.7 2.4 8.5 -3.0 0.3 -4.0 -2.4 1.1 -4.5 -4.6 -1.9 0.5 0.4 1.5 4.1 1.2 -2.4

Final consumption Private Manufacturing expenditure consumption 13.7 6.5 2.4 3.6 3.5 1.8 2.4 4.4 16.1 17.2 10.1 11.9 11.4 6.5 5.6 3.4 11.4 6.5 5.6 3.4 2.7 3.6 3.8 4.2 4.7 4.7 3.1 1.8 1.1 0.9 2.2 2.7 2.1 2.7 1.7 2.9 4.8 3.6 6.4 2.7 2.7 3.2 2.8

4.3 2.7 2.2 2.2 2.0 2.4 3.0 2.8 6.2 3.6 3.9 3.4 3.3 3.3 2.8 1.7 3.3 3.3 2.8 1.7 1.5 2.2 2.4 2.6 2.9 1.8 2.0 1.6 1.8 2.0 2.3 3.5 3.0 3.8 3.3 1.9 2.2 2.5 3.0 3.5 4.0 3.3 3.0

4.4 2.9 1.9 1.9 1.7 2.2 2.5 2.6 6.8 3.6 4.0 3.2 3.7 3.7 2.5 1.7 3.7 3.7 2.5 1.7 1.5 1.9 1.9 2.2 2.8 1.7 1.4 1.1 1.4 1.7 2.2 3.5 2.4 3.6 2.8 1.4 2.1 2.4 2.6 3.4 3.5 2.8 2.5

Gross fixed capital formation

5.5 0.8 -0.5 3.3 3.4 5.1 5.6 8.6 12.0 6.8 3.8 1.3 -0.7 2.5 1.7 -0.3 -0.7 2.5 1.7 -0.3 -3.2 4.2 4.9 6.5 6.2 3.7 3.6 0.7 3.8 3.8 6.0 6.5 3.2 5.2 5.8 7.8 11.0 10.0 9.2 5.0 3.7 -1.3 -6.6

Construction

Facilities

-3.7 -3.4 -3.9 5.5 1.1 6.6 10.3 7.6 1.6 -4.8 -4.8 -5.1 -8.2 -2.5 -2.2 -2.0 -8.2 -2.5 -2.2 -2.0 1.2 8.9 7.5 3.5 4.5 0.3 2.3 -1.7 4.0 4.6 7.6 9.6 8.4 9.4 11.0 11.9 11.3 8.5 8.0 3.8 1.8 -1.5 -8.9

22.0 4.7 0.1 -0.8 6.0 4.7 -1.0 14.6 27.6 28.8 20.6 12.9 8.3 8.3 3.4 -0.9 8.3 8.3 3.4 -0.9 -12.3 -3.2 2.3 11.7 7.5 8.1 4.3 4.1 5.1 4.1 6.1 3.5 -3.6 -1.6 -2.5 3.3 16.1 17.9 16.3 8.6 7.3 -3.0 -7.4

p: Preliminary Source: Bank of Korea

50

Economic Bulletin

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

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

Shipment index*

y-o-y change (%)

102.3 104.2 98.6 102.1 100.2 108.4 103.2 104.3 104.8 104.3 100.9 105.0 102.9 98.8 91.6 105.3 99.6 102.5 104.2 103.1 98.5 99.0 104.9 109.0 111.3 100.3 98.6 110.6 103.3 104.3 105.4 104.8 100.8 108.9 99.0 107.8 106.0 104.5 91.9 106.3 104.3 105.6 105.1 105.9 103.3 99.5 109.8 107.9

2.3 1.9 1.4 2.2 1.9 3.7 4.7 2.2 4.6 -3.8 -2.2 0.7 -1.8 -0.9 3.3 2.0 -1.7 5.5 3.0 2.8 4.0 -1.0 -0.7 6.2 5.6 1.5 7.6 5.0 3.7 1.8 1.2 1.6 2.3 10.0 -5.6 -1.1 -4.8 4.2 -6.8 -3.9 1.0 1.2 -0.3 1.0 2.5 -8.6 10.9 0.1

Inventory index*

y-o-y change (%)

101.2 102.1 98.4 101.6 98.0 106.7 101.1 102.7 102.6 102.2 97.9 102.1 99.6 97.2 91.2 106.8 100.0 101.7 103.1 100.3 96.2 97.6 102.5 106.7 110.8 97.2 97.0 109.2 101.8 101.9 104.3 101.6 98.6 107.5 96.3 106.9 103.3 100.5 89.2 103.9 100.5 103.3 102.4 101.1 99.7 98.1 106.9 104.5

1.2 0.9 0.4 1.3 0.1 2.7 2.7 1.1 4.7 -4.2 -3.2 -0.6 -2.9 -2.7 1.6 2.4 -1.5 3.8 1.8 0.7 1.6 -1.7 -2.5 5.1 5.4 0.0 6.4 2.2 1.8 0.2 1.2 1.3 2.5 10.1 -6.0 0.2 -6.8 3.4 -8.0 -4.9 -1.3 1.4 -1.8 -0.5 1.1 -8.7 11.0 -2.2

Service production index

y-o-y change (%)

97.8 106.4 107.1 103.5 101.0 97.8 101.2 103.6 103.5 106.4 111.8 112.1 109.0 105.4 106.2 107.1 105.7 105.6 103.5 105.2 102.6 101.0 100.8 101.3 97.8 101.6 101.7 101.2 103.7 107.1 103.6 106.9 107.0 103.5 107.3 106.3 106.4 110.9 110.7 111.8 113.5 112.9 112.1 111.6 111.8 109.0 110.3 112.6

-1.6 8.8 10.5 3.4 -1.2 -1.6 -5.5 0.1 2.5 8.8 10.5 8.2 5.3 9.4 9.1 10.5 6.7 6.9 3.4 1.8 -1.0 -1.2 -0.9 -0.2 -1.6 -3.6 -4.2 -5.5 -1.9 1.4 0.1 1.6 4.3 2.5 6.4 4.9 8.8 9.2 8.7 10.5 9.5 5.4 8.2 4.4 4.5 5.3 2.8 5.9

y-o-y change (%)

102.6 104.5 98.7 102.8 102.4 106.6 100.9 104.5 105.0 107.6 103.5 106.9 105.8 97.4 95.3 103.4 101.4 102.7 104.4 102.1 102.4 102.6 103.5 103.3 112.9 99.6 97.5 105.6 103.1 104.5 106.0 103.5 103.9 107.5 102.1 106.5 114.1 103.0 99.3 108.1 105.9 106.9 107.8 105.8 105.6 105.9 107.8 107.6

2.6 1.9 2.4 3.3 3.0 1.8 2.2 1.7 2.5 0.9 2.6 2.3 0.8 2.3 2.4 2.5 2.1 3.3 4.5 2.8 3.9 2.3 1.5 2.3 1.7 2.3 2.3 2.1 1.7 1.8 1.5 1.4 1.5 4.8 -1.4 3.1 1.1 3.4 1.8 2.4 2.7 2.3 1.7 2.2 1.6 -1.5 5.6 1.0

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

January 2019

51

Statistical Appendices

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

Production capacity index* (2010=100) Period 2016 2017 2016 Ⅰ Ⅱ Ⅲ Ⅳ 2017 Ⅰ Ⅱ Ⅲ Ⅳ 2018 Ⅰ Ⅱ Ⅲ 2016 1 2 3 4 5 6 7 8 9 10 11 12 2017 1 2 3 4 5 6 7 8 9 10 11 12 2018 1 2 3 4 5 6 7 8 9 P 10 11P

Operation ratio index* (2010=100)

y-o-y change (%)

102.8 103.9 101.2 102.0 103.4 104.4 103.4 103.7 104.1 104.3 103.1 102.7 102.5 101.0 101.0 101.7 101.7 101.9 102.3 103.0 103.3 103.9 104.3 104.4 104.6 103.4 103.2 103.5 103.6 103.8 103.7 103.9 104.0 104.5 104.5 104.4 104.1 103.2 103.3 102.9 102.6 102.8 102.7 102.7 102.4 102.3 102.5 102.5

2.8 1.1 1.9 2.4 3.3 3.4 2.2 1.7 0.7 -0.1 -0.3 -1.0 -1.5 1.9 1.7 2.2 2.2 2.3 2.5 3.0 3.3 3.6 3.6 3.3 3.5 2.4 2.2 1.8 1.9 1.9 1.4 0.9 0.7 0.6 0.2 0.0 -0.5 -0.2 0.1 -0.6 -1.0 -1.0 -1.0 -1.2 -1.5 -2.1 -1.9 -1.8

98.2 97.1 95.8 100.3 95.5 101.4 95.9 98.3 98.1 96.0 92.7 99.2 96.3 95.8 88.9 102.6 97.7 101.1 102.0 99.6 93.2 93.6 99.0 103.0 102.3 92.7 91.7 103.3 97.0 98.4 99.6 98.3 94.1 101.9 92.0 100.2 95.8 95.0 84.1 98.9 97.9 100.2 99.4 98.8 96.6 93.6 104.0 101.8

y-o-y change (%)

Capacity utilization rate* (%)

-1.8 -1.1 -1.0 -1.0 -2.9 -2.0 0.1 -2.0 2.7 -5.3 -3.3 0.9 -1.8 -3.3 0.9 -0.5 -4.5 2.5 -0.9 -1.5 -1.2 -6.3 -6.2 1.2 -1.0 -3.2 3.1 0.7 -0.7 -2.7 -2.4 -1.3 1.0 8.9 -7.1 -2.7 -6.4 2.5 -8.3 -4.3 0.9 1.8 -0.2 0.5 2.7 -8.1 13.0 1.6

72.9 72.6 73.4 72.8 72.1 73.5 73.5 72.0 73.0 71.8 71.0 73.2 74.2 72.4 74.9 72.8 72.1 74.6 73.6 73.7 72.5 72.3 70.3 73.7 72.4 74.9 72.3 73.4 71.7 72.6 71.8 72.7 73.5 72.7 73.3 71.7 70.3 70.6 72.1 70.3 72.5 74.0 73.1 73.2 75.7 73.7 73.8 72.7

* Manufacturing industry p: Preliminary Source: Statistics Korea

52

Economic Bulletin

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

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

Consumer goods sales index Durable goods Semi-durable goods

Total

Period

y-o-y change (%)

103.9 105.9 99.9 104.3 101.7 109.6 101.5 105.3 105.0 111.9 106.6 110.2 109.1 99.6 95.6 104.5 102.1 107.3 103.4 102.1 100.8 102.2 108.4 109.1 111.2 103.5 95.4 105.5 104.0 107.7 104.2 104.7 101.0 109.3 107.9 114.9 112.8 105.2 101.6 112.9 109.6 112.5 108.4 110.5 106.8 109.9 113.4 116.0

3.9 1.9 4.7 5.6 3.1 2.2 1.6 1.0 3.2 2.1 5.0 4.7 3.9 5.7 2.9 5.3 3.4 4.6 8.8 4.3 5.4 0.0 2.0 2.6 2.0 3.9 -0.2 1.0 1.9 0.4 0.8 2.5 0.2 6.9 -0.5 5.3 1.4 1.6 6.5 7.0 5.4 4.5 4.0 5.5 5.7 0.5 5.1 1.0

y-o-y change (%)

104.6 110.2 99.4 108.8 99.2 111.2 102.8 112.9 111.1 113.8 111.8 119.3 113.6 92.9 92.8 112.5 103.3 108.4 114.7 103.5 100.9 93.2 107.3 110.6 115.6 94.7 100.0 113.7 108.5 114.2 115.9 115.0 107.0 111.4 104.0 122.8 114.6 110.0 101.3 124.2 119.5 120.4 117.9 122.0 117.5 101.2 116.3 123.0

4.6 5.4 6.7 11.5 0.8 0.3 3.4 3.8 12.0 2.3 8.8 5.7 2.3 -1.4 7.7 13.3 8.2 12.3 13.9 0.2 5.5 -3.1 0.7 1.6 -1.3 1.9 7.8 1.1 5.0 5.4 1.0 11.1 6.0 19.5 -3.1 11.0 -0.9 16.2 1.3 9.2 10.1 5.4 1.7 6.1 9.8 -9.2 11.8 0.2

Nondurable goods

y-o-y change (%)

102.3 101.2 96.4 103.4 91.5 117.7 94.7 101.0 90.8 118.4 99.2 107.0 98.3 97.3 89.3 102.6 104.9 110.5 94.8 94.1 85.1 95.4 118.2 119.9 115.0 96.3 88.4 99.3 105.5 104.9 92.6 91.6 83.4 97.5 113.7 124.6 117.0 94.5 91.8 111.3 107.8 112.2 101.1 98.8 89.1 107.0 123.7 126.8

2.3 -1.1 2.0 4.2 3.3 0.1 -1.8 -2.3 -0.8 0.6 4.8 5.9 8.3 3.2 0.9 1.8 1.4 0.7 12.2 7.5 1.1 1.3 0.5 0.1 -0.3 -1.0 -1.0 -3.2 0.6 -5.1 -2.3 -2.7 -2.0 2.2 -3.8 3.9 1.7 -1.9 3.8 12.1 2.2 7.0 9.2 7.9 6.8 9.7 8.8 1.8

y-o-y change (%)

104.2 106.0 101.7 102.5 107.4 105.2 103.9 103.6 108.4 108.1 107.4 107.3 111.7 103.7 99.7 101.6 100.3 105.4 101.9 105.0 107.7 109.4 104.6 103.7 107.4 110.9 96.4 104.4 101.2 105.8 103.8 105.7 106.0 113.5 107.2 107.0 110.1 107.7 106.1 108.4 105.8 109.0 107.2 110.3 109.6 115.1 107.5 108.0

4.2 1.7 5.0 3.3 4.2 4.3 2.2 1.1 0.9 2.8 3.4 3.6 3.0 10.2 1.7 3.1 2.2 2.9 5.1 5.0 7.1 0.7 3.5 4.5 4.9 6.9 -3.3 2.8 0.9 0.4 1.9 0.7 -1.6 3.7 2.5 3.2 2.5 -2.9 10.1 3.8 4.5 3.0 3.3 4.4 3.4 1.4 0.3 0.9

p: Preliminary Source: Statistics Korea

January 2019

53

Statistical Appendices

5 Machinery orders received and facility investment index

Period

Domestic machinery orders received excluding ship (billion won, constant value) Total Public Private Facility investment index y-o-y y-o-y y-o-y y-o-y (2010=100) change (%)

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

26,643 31,753 6,398 6,942 5,765 7,538 7,749 8,584 7,568 7,852 8,094 8,549 7,564 1,662 2,282 2,454 2,006 2,210 2,727 2,030 1,672 2,063 1,825 2,339 3,374 2,144 2,464 3,142 2,777 2,588 3,219 2,799 2,357 2,412 2,351 2,936 2,564 2,621 2,271 3,201 2,951 2,787 2,810 2,647 2,520 2,397 2,541 2,318

4.7 19.2 -0.9 -1.3 4.8 16.7 21.1 23.7 31.3 4.2 4.4 -0.4 0.0 -28.8 22.9 8.2 -27.6 5.2 26.3 1.0 2.5 11.0 -8.7 18.8 35.4 29.0 8.0 28.0 38.5 17.1 18.1 37.9 41.0 16.9 28.9 25.5 -24.0 22.3 -7.8 1.9 6.3 7.7 -12.7 -5.4 6.9 -0.6 8.0 -21.0

change (%)

2,862 2,239 637 575 465 1,184 691 542 461 545 603 645 499 71 255 312 188 175 213 47 84 334 63 154 967 122 226 342 241 117 184 296 82 84 167 137 242 269 141 193 302 118 224 67 324 108 232 93

49.0 -21.8 57.4 16.8 16.6 89.9 8.4 -5.8 -0.9 -54.0 -12.7 18.9 8.2 -39.0 80.7 110.8 48.7 -11.3 25.6 -64.6 -47.3 214.8 -35.2 -32.6 224.7 72.5 -11.1 9.8 28.1 -33.1 -13.5 526.3 -3.2 -74.8 162.8 -11.0 -75.0 120.7 -37.9 -43.6 25.2 1.4 21.8 -77.4 297.8 28.4 38.9 -32.1

change (%)

23,781 29,514 5,761 6,367 5,300 6,353 7,058 8,042 7,107 7,307 7,491 7,904 7,065 1,591 2,027 2,142 1,817 2,035 2,514 1,983 1,588 1,729 1,761 2,186 2,406 2,021 2,237 2,800 2,536 2,471 3,035 2,504 2,276 2,327 2,185 2,799 2,323 2,352 2,131 3,008 2,650 2,669 2,586 2,581 2,196 2,289 2,309 2,225

1.1 24.1 -4.8 -2.6 3.9 8.8 22.5 26.3 34.1 15.0 6.1 -1.7 -0.6 -28.3 18.1 1.0 -31.3 6.9 26.3 5.7 7.9 -1.4 -7.4 25.5 9.6 27.0 10.4 30.7 39.5 21.4 20.7 26.3 43.3 34.6 24.0 28.1 -3.5 16.3 -4.8 7.4 4.5 8.0 -14.8 3.1 -3.5 -1.6 5.7 -20.5

change (%)

110.7 126.3 100.1 114.2 106.3 122.0 118.3 134.5 128.2 124.4 129.4 126.6 110.8 97.0 90.7 112.7 111.0 110.6 121.1 105.0 109.8 104.0 109.3 118.8 138.0 107.0 108.5 139.3 127.0 132.8 143.7 131.1 123.5 130.0 105.0 126.8 141.4 130.0 118.8 139.4 129.0 128.2 122.6 117.8 109.5 105.0 114.9 114.1

-1.3 14.1 -7.6 0.6 -4.7 5.9 18.2 17.8 20.6 2.0 9.4 -5.9 -13.6 -6.6 -8.4 -7.7 -2.5 2.5 2.1 -12.6 3.3 -4.0 -3.3 10.2 10.5 10.3 19.6 23.4 14.4 20.1 18.7 24.9 12.5 25.0 -3.9 6.7 2.5 21.5 9.5 0.1 1.6 -3.5 -14.7 -10.1 -11.3 -19.2 9.4 -10.0

p: Preliminary Source: Statistics Korea

54

Economic Bulletin

6 Value of construction completed and domestic construction orders received

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

Total

Value of construction Public

y-o-y change (%)

119,971 138,484 24,533 29,977 29,573 35,889 30,579 35,562 34,841 37,502 32,259 35,792 32,805 7,509 7,424 9,600 9,027 9,347 11,603 9,545 9,832 10,195 10,473 11,458 13,959 8,986 9,593 12,000 11,229 11,253 13,080 11,204 11,104 12,534 10,829 12,137 14,536 10,693 9,827 11,739 11,525 11,433 12,834 10,997 10,923 10,884 10,917 11,237

16.9 15.4 11.9 16.5 16.3 21.5 24.6 18.6 17.8 4.5 5.5 0.6 -5.8 6.4 8.1 20.0 14.0 16.9 18.1 17.8 21.0 10.9 20.2 28.9 17.0 19.7 29.2 25.0 24.4 20.4 12.7 17.4 12.9 22.9 3.4 5.9 4.1 19.0 2.4 -2.2 2.6 1.6 -1.9 -1.8 -1.6 -13.2 0.8 -7.4

Private

y-o-y change (%)

30,916 30,143 6,710 8,099 7,061 9,046 6,937 8,075 6,880 8,250 6,491 7,628 6,333 2,045 1,976 2,689 2,317 2,326 3,456 2,256 2,344 2,460 2,348 2,779 3,920 1,970 2,129 2,838 2,302 2,429 3,344 2,233 2,075 2,572 2,175 2,456 3,619 1,929 1,910 2,652 2,260 2,348 3,019 2,131 1,951 2,251 2,046 2,199

-0.4 -2.5 0.4 -2.3 -2.6 2.6 3.4 -0.3 -2.6 -8.8 -6.4 -5.5 -8.0 -1.1 -6.8 7.8 -7.1 -1.4 0.6 -2.4 5.4 -9.2 2.4 12.7 -3.5 -3.6 7.7 5.5 -0.7 4.4 -3.2 -1.0 -11.5 4.6 -7.3 -11.6 -7.7 -2.1 -10.3 -6.6 -1.8 -3.3 -9.7 -4.6 -6.0 -12.5 -5.9 -10.4

(current value, billion)

Total

y-o-y change (%)

83,680 104,666 16,512 20,494 21,226 25,778 22,598 26,575 27,103 28,390 24,945 27,404 25,578 5,144 5,086 6,282 6,299 6,611 7,585 6,914 7,109 7,203 7,692 8,224 9,532 6,682 7,186 8,730 8,639 8,542 9,394 8,709 8,780 9,614 8,409 9,393 10,587 8,517 7,715 8,713 9,029 8,845 9,529 8,509 8,677 8,393 8,565 8,776

24.2 25.1 14.0 24.6 23.7 32.2 36.9 29.7 27.7 11.6 10.4 3.1 -5.6 7.9 12.3 21.1 23.2 24.3 26.0 25.2 27.0 19.2 27.3 36.5 32.7 29.9 41.3 39.0 37.2 29.2 23.9 26.0 23.5 33.5 9.3 14.2 11.1 27.5 7.4 -0.2 4.5 3.6 1.4 -2.3 -1.2 -12.7 1.9 -6.6

Domestic construction orders Public Private

y-o-y change (%)

145,386 140,844 28,922 32,790 36,709 46,966 29,273 38,675 32,958 39,938 30,341 32,593 31,083 7,335 9,994 11,593 10,848 9,658 12,284 12,006 13,329 11,374 14,793 12,624 19,548 8,527 12,350 8,397 14,647 11,450 12,578 8,470 12,745 11,743 8,258 11,129 20,551 11,885 7,946 10,509 9,209 12,670 10,714 10,610 9,251 11,221 9,529 10,767

8.1 -3.1 13.6 -7.3 0.6 26.4 1.2 17.9 -10.2 -15.0 3.6 -15.7 -5.7 -2.5 84.0 -7.4 19.2 -23.6 -9.9 38.3 52.0 -40.3 42.4 -4.7 44.6 16.3 23.6 -27.6 35.0 18.6 2.4 -29.4 -4.4 3.2 -44.2 -11.8 5.1 39.4 -35.7 25.2 -37.1 10.7 -14.8 25.3 -27.4 -4.4 15.4 -3.3

y-o-y change (%)

33,832 33,468 7,753 5,565 7,914 12,600 7,290 7,542 6,986 11,650 4,821 6,296 6,212 2,687 2,354 2,712 1,185 2,127 2,254 2,626 3,362 1,925 3,209 2,792 6,600 2,246 3,091 1,953 2,122 1,486 3,934 1,811 3,031 2,144 905 2,306 8,438 1,325 2,271 1,225 1,449 2,739 2,108 1,621 2,213 2,377 1,632 2,670

18.5 -1.1 68.6 -37.9 61.5 24.9 -6.0 35.5 -11.7 -7.5 -33.9 -16.5 -11.1 102.9 106.4 27.1 -53.9 -10.2 -44.0 46.6 75.1 62.2 78.0 -14.5 31.5 -16.4 31.3 -28.0 79.1 -30.1 74.6 -31.0 -9.8 11.4 -71.8 -17.4 27.9 -41.0 -26.5 -37.3 -31.7 84.3 -46.4 -10.5 -27.0 10.9 80.3 15.8

y-o-y change (%)

107,748 102,327 20,458 26,702 26,985 33,603 17,914 30,375 25,830 28,209 21,182 25,520 23,517 4,371 7,559 8,528 9,295 7,412 9,995 8,513 9,464 9,008 11,509 9,729 12,365 6,277 5,912 5,725 11,915 9,906 8,554 6,638 9,701 9,491 7,330 8,805 12,075 6,339 5,660 9,183 7,491 9,772 8,257 8,921 5,877 8,719 7,822 7,974

4.4 -5.0 -0.6 3.1 -12.6 30.1 -12.4 13.8 -4.3 -16.1 18.2 -16.0 -9.0 -28.1 79.5 -17.2 43.6 -27.1 8.0 25.0 44.7 -48.6 34.1 3.3 58.0 43.6 -21.8 -32.9 28.2 33.6 -14.4 -22.0 2.5 5.4 -36.3 -9.5 -2.4 1.0 -4.3 60.4 -37.1 -1.4 -3.5 34.4 -39.4 -8.1 6.7 -9.4

p: Preliminary Source: Statistics Korea

January 2019

55

Statistical Appendices

7 Composite indexes of business cycle indicators, CSI and BSI Period 2015 1 2 3 4 5 6 7 8 9 10 11 12 2016 1 2 3 4 5 6 7 8 9 10 11 12 2017 1 2 3 4 5 6 7 8 9 10 11 12 2018 1 2 3 4 5 6 7 8 9p 10p 11p 12 2019 1

Leading index (2015=100)

Cyclical indicator of leading index (2015=100)

Coincident index (2015=100)

Cyclical indicator of coincident index (2015=100)

97.8 98.2 98.6 99.0 99.6 99.9 100.2 100.5 101.0 101.5 101.8 101.9 102.0 102.0 102.2 102.6 103.0 103.3 103.7 104.3 104.9 105.4 105.7 106.3 106.8 107.3 107.7 108.2 108.8 109.5 110.0 110.4 110.5 110.8 111.1 111.4 112.0 112.2 112.3 112.3 112.8 113.0 113.3 113.2 113.4 113.4 113.5 -

100.6 100.6 100.7 100.7 100.9 100.8 100.7 100.6 100.8 100.8 100.7 100.5 100.1 99.7 99.6 99.6 99.6 99.5 99.6 99.8 100.0 100.1 100.1 100.2 100.3 100.4 100.4 100.6 100.8 101.0 101.2 101.1 100.9 100.8 100.7 100.7 100.8 100.6 100.4 100.1 100.1 100.0 99.8 99.4 99.2 98.8 98.6 -

98.4 99.0 99.1 99.4 99.2 99.3 99.6 100.1 100.9 101.6 101.6 101.9 101.8 101.9 102.0 102.3 102.7 103.2 103.7 104.0 104.0 104.1 104.5 105.0 105.6 105.8 106.3 106.6 106.9 107.0 107.2 107.4 107.7 107.7 108.0 107.9 108.2 108.5 108.8 108.9 109.1 109.2 109.2 109.2 109.1 109.2 109.3 -

99.9 100.2 100.1 100.1 99.7 99.5 99.5 99.8 100.3 100.7 100.5 100.4 100.1 99.9 99.8 99.7 99.9 100.1 100.3 100.3 100.1 99.9 100.0 100.2 100.5 100.5 100.7 100.7 100.7 100.6 100.5 100.4 100.4 100.2 100.2 99.8 99.8 99.8 99.8 99.7 99.6 99.4 99.1 98.9 98.6 98.4 98.2 -

BOK BSI2 CSI1 Results

102.1 102.8 101.0 103.6 104.9 98.0 99.9 101.2 102.3 104.7 105.4 102.2 99.7 97.5 99.6 101.2 98.8 98.4 100.6 101.5 101.4 101.7 95.3 93.6 92.8 93.9 96.3 100.8 107.7 110.8 110.9 109.6 107.4 108.9 112.0 110.6 109.9 108.2 108.1 107.1 107.9 105.5 101.0 99.2 100.2 99.5 96.0 97.2 -

75 75 75 75 69 65 71 70 69 73 69 69 67 64 66 66 68 70 73 73 72 73 73 75 77 77 77 77 78 77 78 81 84 83 84 83 78 77 72 72 74 79 75 75 74 73 74 74 -

Prospects

79 75 79 77 77 74 68 72 71 70 72 72 70 68 64 68 69 72 72 73 74 75 74 75 73 79 79 80 80 81 81 80 82 79 87 85 83 80 79 76 77 76 81 74 76 78 74 74 72

1. Consumer sentiment index 2. Business survey index (manufacturing, seasonally adjusted) p: Preliminary Sources: Statistics Korea, Bank of Korea

56

Economic Bulletin

8 Prices Period 2015 2016 2017 2018 2015 1 2 3 4 5 6 7 8 9 10 11 12 2016 1 2 3 4 5 6 7 8 9 10 11 12 2017 1 2 3 4 5 6 7 8 9 10 11 12 2018 1 2 3 4 5 6 7 8 9 10 11 12

Consumer Prices(2015=100) Commodity Services

All Items y-o-y change (%)

100.0 101.0 102.9 104.5 99.8 99.7 99.7 99.8 100.0 100.1 100.2 100.4 100.1 100.1 99.9 100.2 100.4 100.8 100.6 100.8 100.8 100.8 100.6 100.9 101.5 101.6 101.5 101.6 102.6 102.9 102.9 102.7 102.8 102.6 102.8 103.4 103.5 103.4 102.6 103.0 103.4 104.2 104.1 104.3 104.3 104.1 103.9 104.9 105.7 105.5 104.7 104.4

0.7 1.0 1.9 1.5 1.0 0.6 0.5 0.4 0.6 0.7 0.7 0.7 0.5 0.8 0.8 1.1 0.6 1.1 0.8 1.0 0.8 0.7 0.4 0.5 1.3 1.5 1.5 1.3 2.2 2.1 2.3 2.0 2.0 1.8 2.2 2.5 2.0 1.8 1.2 1.4 0.8 1.3 1.2 1.5 1.5 1.5 1.1 1.4 2.1 2.0 2.0 1.3

y-o-y change (%)

100.0 99.4 101.3 102.7 100.6 100.4 100.1 99.8 100.3 100.4 100.0 100.1 99.8 99.6 99.3 99.7 99.2 99.9 99.1 99.3 99.1 99.1 98.2 98.5 100.0 100.3 100.1 100.1 101.4 101.8 101.6 100.9 101.1 100.9 100.6 101.7 102.2 101.7 100.6 101.1 101.5 102.7 102.3 102.4 102.5 102.3 102.4 103.4 105.1 104.6 103.2 102.2

-0.7 -0.6 1.9 1.3 0.1 -0.6 -1.0 -1.1 -0.8 -0.4 -0.8 -0.9 -1.3 -0.7 -0.7 -0.2 -1.4 -0.5 -1.0 -0.5 -1.2 -1.3 -1.8 -1.6 0.3 0.8 0.8 0.4 2.2 2.0 2.5 1.6 2.1 1.8 2.5 3.2 2.2 1.4 0.5 1.0 0.5 1.1 0.9 1.6 1.4 1.3 1.6 1.3 2.6 2.8 2.6 1.1

y-o-y change (%)

100.0 102.3 104.3 105.9 99.1 99.2 99.4 99.7 99.8 99.8 100.4 100.6 100.4 100.6 100.5 100.7 101.3 101.6 101.8 101.9 102.2 102.2 102.6 102.8 102.6 102.7 102.6 102.8 103.6 103.8 103.9 104.2 104.2 104.0 104.6 104.7 104.5 104.7 104.3 104.6 105.0 105.5 105.6 105.8 106.0 105.8 106.0 106.2 106.0 106.1 106.0 106.1

1.8 2.3 2.0 1.6 1.7 1.7 1.7 1.6 1.6 1.6 2.0 2.0 1.9 2.1 2.0 2.2 2.3 2.5 2.4 2.3 2.4 2.4 2.1 2.2 2.2 2.1 2.1 2.0 2.3 2.1 2.1 2.2 2.0 1.8 2.0 1.9 1.8 2.0 1.7 1.7 1.4 1.7 1.7 1.6 1.7 1.6 1.4 1.4 1.4 1.3 1.5 1.5

Producer prices(2010=100) All Items Commodity

Core y-o-y change (%)

100.0 101.6 103.1 104.3 99.4 99.5 99.6 99.6 99.9 99.9 100.2 100.3 100.2 100.4 100.4 100.6 101.0 101.2 101.3 101.5 101.7 101.8 101.5 101.6 101.7 102.1 102.0 101.9 102.6 102.8 102.8 102.9 103.1 103.1 103.4 103.4 103.3 103.5 103.1 103.3 103.5 103.9 104.1 104.4 104.5 104.4 104.2 104.3 104.7 104.7 104.6 104.6

2.2 1.6 1.5 1.2 2.6 2.4 2.2 2.1 2.1 2.0 2.1 2.1 2.0 2.2 2.2 2.3 1.6 1.7 1.7 1.9 1.8 1.8 1.3 1.3 1.5 1.8 1.6 1.2 1.6 1.6 1.5 1.4 1.4 1.3 1.8 1.8 1.6 1.3 1.1 1.4 0.9 1.1 1.3 1.4 1.3 1.2 0.8 0.9 1.3 1.2 1.4 1.3

y-o-y change (%)

101.0 99.1 102.5 99.0 101.9 101.9 101.8 101.8 101.8 101.8 101.4 100.8 100.3 99.7 99.3 99.0 98.5 98.5 98.4 98.7 98.8 99.0 98.9 99.0 99.2 99.5 100.0 100.9 102.3 102.7 102.7 102.4 102.2 101.8 101.9 102.3 103.0 103.1 103.0 103.1 103.6 104.0 104.0 104.2 104.4 104.5 104.9 105.5 105.8 105.4 104.6 104.1

-4.0 -1.8 3.5 2.0 -3.6 -3.6 -3.7 -3.6 -3.5 -3.6 -4.0 -4.5 -4.6 -4.6 -4.7 -4.0 -3.3 -3.4 -3.3 -3.0 -3.0 -2.7 -2.5 -1.8 -1.1 -0.1 0.7 1.8 3.9 4.3 4.3 3.8 3.4 2.8 3.0 3.3 3.8 3.6 3.1 2.2 1.2 1.3 1.3 1.7 2.2 2.6 3.0 3.1 2.7 2.2 1.5 1.0

y-o-y change (%)

98.0 94.6 99.0 101.1 99.7 99.7 99.5 99.3 99.3 99.3 98.6 97.7 97.0 96.0 95.3 95.0 94.0 93.9 93.8 94.1 94.3 94.6 94.4 94.4 94.7 95.0 95.7 97.0 99.0 99.5 99.3 99.0 98.5 97.8 97.9 98.5 99.5 99.6 99.4 99.5 99.9 100.5 100.5 100.6 100.9 101.1 101.6 102.3 102.8 102.2 101.1 100.3

-6.4 -3.4 4.6 2.2 -5.8 -5.8 -5.9 -5.8 -5.7 -5.8 -6.4 -7.1 -7.3 -7.4 -7.6 -6.6 -5.7 -5.9 -5.7 -5.2 -5.1 -4.7 -4.3 -3.4 -2.4 -1.0 0.4 2.2 5.3 6.0 5.9 5.1 4.4 3.4 3.7 4.4 5.1 4.8 3.9 2.5 0.9 1.0 1.1 1.6 2.5 3.2 3.8 3.8 3.3 2.6 1.6 0.8

Source: Bank of Korea

January 2019

57

Statistical Appendices

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

Economically Economically active persons inactive persons y-o-y change (thousands) y-o-y change (thousands) 27,418 27,748 27,895 26,896 27,578 27,702 27,497 27,262 27,993 27,961 27,775 27,464 28,125 28,080 27,912 26,631 26,925 27,133 27,398 27,617 27,720 27,737 27,690 27,679 27,666 27,613 27,211 26,886 27,321 27,579 27,911 27,987 28,081 28,037 27,903 27,943 27,920 27,889 27,516 27,232 27,348 27,811 28,029 28,184 28,161 28,123 28,039 28,079 28,063 28,092 27,582

265 329 148 266 197 308 289 366 414 259 278 202 132 120 137 251 254 293 195 164 233 202 396 325 307 315 246 255 396 446 513 370 360 299 214 263 254 276 305 346 27 232 117 198 80 86 136 137 143 203 66

16,187 16,183 16,287 16,576 15,991 15,950 16,233 16,556 15,906 16,006 16,263 16,624 16,017 16,131 16,375 16,808 16,546 16,373 16,138 15,955 15,880 15,889 15,962 15,998 16,038 16,117 16,544 16,904 16,497 16,267 15,960 15,916 15,844 15,909 16,064 16,044 16,095 16,151 16,543 16,840 16,744 16,289 16,093 15,956 16,000 16,064 16,172 16,158 16,199 16,192 16,733

102 -5 104 127 178 48 53 -20 -85 56 30 68 110 126 112 148 136 96 186 213 136 159 -40 25 40 29 91 96 -49 -107 -179 -39 -36 20 102 45 57 34 -1 -64 247 22 134 41 156 155 108 114 105 41 190

Labor force partication rate (%) 62.9 63.2 63.1 61.9 63.3 63.5 62.9 62.2 63.8 63.6 63.1 62.3 63.7 63.5 63.0 61.3 61.9 62.4 62.9 63.4 63.6 63.6 63.4 63.4 63.3 63.1 62.2 61.4 62.4 62.9 63.6 63.7 63.9 63.8 63.5 63.5 63.4 63.3 62.5 61.8 62.0 63.1 63.5 63.9 63.8 63.6 63.4 63.5 63.4 63.4 62.2

Employment Unemployment rate (%) rate (%) 60.6 60.8 60.7 59.2 60.9 61.2 60.9 59.6 61.3 61.4 61.0 59.6 61.2 61.1 60.9 59.0 58.9 59.7 60.5 61.1 61.3 61.3 61.2 61.1 61.2 61.2 60.2 59.1 59.3 60.3 61.0 61.5 61.5 61.6 61.2 61.4 61.4 61.4 60.4 59.5 59.2 60.2 60.9 61.3 61.4 61.3 60.9 61.2 61.2 61.4 60.1

3.7 3.7 3.8 4.3 3.7 3.5 3.2 4.3 3.8 3.4 3.2 4.3 3.9 3.8 3.4 3.7 4.9 4.2 3.9 3.6 3.6 3.5 3.6 3.5 3.3 3.1 3.2 3.7 4.9 4.1 4.2 3.6 3.8 3.4 3.6 3.3 3.2 3.1 3.3 3.7 4.6 4.5 4.1 4.0 3.7 3.7 4.0 3.6 3.5 3.2 3.4

Source: Statistics Korea

58

Economic Bulletin

10 Employment (II) Period

Employed persons (thousands) Manufacturing

All industry y-o-y change

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

26,409 26,725 26,822 25,747 26,552 26,719 26,618 26,100 26,919 26,998 26,883 26,283 27,019 27,015 26,971 25,646 25,615 25,980 26,325 26,613 26,718 26,765 26,696 26,697 26,746 26,762 26,347 25,878 25,979 26,443 26,744 26,992 27,020 27,078 26,904 27,011 27,026 27,019 26,604 26,213 26,083 26,555 26,868 27,064 27,126 27,083 26,907 27,055 27,090 27,184 26,638

231 316 97 204 211 255 256 353 367 279 265 183 101 17 88 254 145 214 172 182 278 227 327 209 227 293 249 232 364 463 420 379 302 314 208 314 281 257 257 334 104 112 123 72 106 5 3 45 64 165 34

SOC & services

y-o-y change

4,584 4,566 4,510 4,650 4,599 4,540 4,545 4,530 4,579 4,570 4,586 4,575 4,487 4,479 4,499 4,673 4,648 4,630 4,601 4,608 4,588 4,564 4,519 4,538 4,547 4,549 4,541 4,503 4,549 4,539 4,542 4,586 4,608 4,611 4,544 4,555 4,560 4,581 4,618 4,609 4,562 4,554 4,473 4,507 4,482 4,484 4,439 4,513 4,515 4,490 4,491

-21 -18 -56 113 15 -92 -119 -120 -21 30 41 45 -91 -91 -88 127 99 111 23 28 -6 -85 -97 -94 -125 -112 -120 -170 -99 -91 -60 -22 20 47 25 17 14 32 77 106 14 15 -68 -79 -126 -127 -105 -42 -45 -91 -127

y-o-y change

20,534 20,857 20,953 20,051 20,530 20,763 20,792 20,546 20,913 20,986 20,986 20,630 21,053 21,039 21,090 20,056 19,984 20,113 20,350 20,566 20,674 20,797 20,759 20,733 20,759 20,841 20,775 20,462 20,453 20,721 20,842 20,963 20,933 21,037 20,922 20,999 21,008 21,061 20,888 20,596 20,503 20,792 20,979 21,054 21,127 21,114 20,967 21,036 21,068 21,241 20,962

312 323 96 144 283 429 390 494 383 223 194 85 141 53 104 199 104 129 210 255 385 425 493 370 399 377 393 406 469 608 492 396 260 240 162 266 249 220 113 134 49 71 137 92 194 77 45 37 60 179 74

Source: Statistics Korea

January 2019

59

Statistical Appendices

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

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

Current account

Goods

99,243.0 78,460.2 26,961.1 27,040.2 22,563.8 22,677.9 19,203.3 16,451.5 25,570.0 17,235.4 11,825.3 17,825.8 28,029.0 7,619.3 7,983.6 11,358.2 4,262.0 10,516.0 12,262.2 8,829.3 5,666.0 8,068.5 7,694.9 8,028.0 6,955.0 5,299.8 8,181.8 5,721.7 3,670.0 5,841.7 6,939.8 7,249.7 6,032.8 12,287.5 5,715.5 7,427.6 4,092.3 2,680.4 3,964.5 5,180.4 1,768.2 8,680.6 7,377.0 8,757.8 8,439.8 10,831.4 9,190.3 5,063.4

118,895.4 119,888.7 30,209.1 33,174.8 28,184.0 27,327.5 27,307.0 29,561.1 34,750.3 28,270.3 23,912.4 31,799.4 35,908.8 8,432.7 8,256.2 13,520.2 10,108.6 10,466.1 12,600.1 10,650.0 7,058.6 10,475.4 9,164.6 9,690.2 8,472.7 7,731.1 10,220.2 9,355.7 11,542.1 8,595.9 9,423.1 10,587.4 9,184.3 14,978.6 8,597.4 11,461.0 8,211.9 8,108.8 5,927.9 9,875.7 10,357.5 11,386.0 10,035.9 11,427.9 11,236.6 13,244.3 10,997.0 7,973.6

Services Exports

Imports

511,947.3 577,381.4 118,983.8 127,574.7 128,614.1 136,774.7 139,316.9 143,112.7 148,862.8 146,089.0 149,738.8 157,542.6 158,408.5 37,290.7 36,511.5 45,181.6 40,463.3 42,129.5 44,981.9 42,583.8 41,815.7 44,214.6 43,086.8 46,258.7 47,429.2 44,531.6 44,626.2 50,159.1 48,134.6 46,956.0 48,022.1 47,101.1 47,687.2 54,074.5 44,429.8 51,480.4 50,178.8 52,069.7 44,893.5 52,775.6 51,507.9 53,778.7 52,256.0 54,062.6 53,268.3 51,077.6 57,237.4 51,715.5

393,051.9 457,492.7 88,774.7 94,399.9 100,430.1 109,447.2 112,009.9 113,551.6 114,112.5 117,818.7 125,826.4 125,763.2 122,499.7 28,858.0 28,255.3 31,661.4 30,354.7 31,663.4 32,381.8 31,933.8 34,757.1 33,739.2 33,922.2 36,568.5 38,956.5 36,800.5 34,406.0 40,803.4 36,592.5 38,360.1 38,599.0 36,513.7 38,502.9 39,095.9 35,832.4 40,019.4 41,966.9 43,960.9 38,956.6 42,899.9 41,150.4 42,392.7 42,220.1 42,634.7 42,031.7 37,833.3 46,240.4 43,741.9

-17,737.4 -34,472.2 -3,658.5 -4,204.5 -5,549.4 -4,325.0 -8,662.7 -6,748.6 -8,497.5 -10,563.4 -9,409.9 -6,525.7 -7,745.3 -1,619.8 -1,164.6 -874.1 -1,730.5 -1,161.3 -1,312.7 -1,461.2 -1,475.8 -2,612.4 -1,785.6 -1,813.9 -725.5 -3,340.7 -2,210.3 -3,111.7 -2,417.2 -1,638.7 -2,692.7 -3,285.3 -2,334.6 -2,877.6 -3,531.3 -3,266.1 -3,766.0 -4,494.1 -2,663.9 -2,251.9 -1,982.6 -2,093.9 -2,449.2 -3,116.1 -2,113.4 -2,515.8 -2,221.6 -2,290.6

Primary income 3,851.7 122.0 1,381.7 -717.5 2,324.6 862.9 1,374.8 -4,876.8 1,946.9 1,677.1 385.4 -5,168.6 1,935.7 1,264.2 871.4 -753.9 -3,593.3 1,358.1 1,517.7 266.1 1,034.0 1,024.5 707.1 366.3 -210.5 1,176.5 718.9 -520.6 -4,924.3 -595.7 643.2 676.0 22.6 1,248.3 1,168.1 -72.2 581.2 678.5 1,281.9 -1,575.0 -5,857.9 228.8 460.5 1,217.3 51.1 667.3 957.4 25.6

Secondary income -5,766.7 -7,078.3 -971.2 -1,212.6 -2,395.4 -1,187.5 -815.8 -1,484.2 -2,629.7 -2,148.6 -3,062.6 -2,259.3 -2,070.2 -457.8 20.6 -534.0 -522.8 -146.9 -542.9 -625.6 -950.8 -819.0 -391.2 -214.6 -581.7 -267.1 -547.0 -1.7 -530.6 -519.8 -433.8 -728.4 -839.5 -1,061.8 -518.7 -695.1 -934.8 -1,612.8 -581.4 -868.4 -748.8 -840.3 -670.2 -771.3 -734.5 -564.4 -542.5 -645.2

p: Preliminary Source: Bank of Korea

60

Economic Bulletin

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

Period

Financial account*

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

102,566.8 87,100.4 29,486.0 23,327.5 24,822.1 24,931.2 19,741.1 13,043.4 30,844.5 23,471.4 12,545.0 11,394.2 27,462.0 7,326.7 9,715.9 12,443.4 1,814.8 9,908.3 11,604.4 8,811.4 6,960.3 9,050.4 8,359.1 8,505.8 8,066.3 5,067.0 8,880.5 5,793.6 1,471.6 2,642.6 8,929.2 9,442.0 8,990.9 12,411.6 6,686.4 10,438.0 6,347.0 4,112.7 4,213.1 4,219.2 14.1 6,751.9 4,628.2 10,456.2 7,276.8 9,729.0 10,587.7 4,257.4

Direct investment

Portfolio investment

17,856.7 14,623.0 5,704.8 4,507.8 1,847.5 5,796.6 6,881.2 3,476.4 4,428.9 -163.5 1,984.8 8,149.9 8,805.6 208.1 2,187.2 3,309.5 814.0 1,450.2 2,243.6 719.7 -291.7 1,419.5 1,144.8 62.6 4,589.2 3,270.3 4,344.1 -733.2 1,500.3 685.3 1,290.8 460.0 1,622.4 2,346.5 72.6 -70.6 -165.5 138.6 325.3 1,520.9 1,883.5 6,056.9 209.5 2,258.4 4,376.4 2,170.8 3,363.3 218.7

66,970.2 57,847.4 16,794.1 13,981.8 15,865.5 20,328.8 8,011.4 11,516.2 23,972.0 14,347.8 12,858.3 4,219.5 7,410.9 5,412.9 5,749.6 5,631.6 3,277.6 4,546.1 6,158.1 145.0 7,111.8 8,608.7 9,921.6 7,011.4 3,395.8 4,917.9 809.9 2,283.6 2,810.3 5,660.3 3,045.6 2,693.6 11,330.5 9,947.9 -173.2 2,101.7 12,419.3 3,490.7 9,168.4 199.2 3,938.2 407.4 -126.1 -3,207.8 1,492.1 9,126.6 6,748.2 5,031.4

Financial derivatives

Other investment

-3,440.1 -8,253.3 2,724.0 -1,185.3 -3,799.5 -1,179.3 -2,951.0 -2,066.8 -350.9 -2,884.6 -3,607.1 -1,406.2 2,296.0 1,227.8 756.6 739.6 -1,043.5 -463.7 321.9 -471.9 -1,292.4 -2,035.2 -739.5 83.0 -522.8 -146.9 -1,593.2 -1,210.9 -912.4 -413.3 -741.1 -79.2 -161.3 -110.4 -555.6 -877.1 -1,451.9 -1,285.9 -857.4 -1,463.8 -748.1 -484.1 -174.0 1,091.4 761.9 442.7 767.2 343.1

13,564.8 18,523.3 5,596.8 5,103.8 3,949.4 -1,085.2 7,063.2 -96.6 2,945.8 8,610.9 -1,478.8 -9,371.5 6,803.2 117.7 2,613.5 2,865.6 -2,549.9 3,974.0 3,679.7 6,451.8 -1,656.4 -846.0 -2,188.1 1,865.9 -763.0 -3,232.5 5,471.3 4,824.4 -1,755.7 -3,368.2 5,027.3 6,238.7 -4,147.6 854.7 5,915.6 7,914.5 -5,219.2 329.0 -4,582.9 2,775.1 -8,178.5 -2,936.2 1,743.2 8,829.1 1,882.0 -3,907.9 -2,448.6 -1,293.8

Reserve assets

7,615.2 4,360.0 -1,333.7 919.4 6,959.2 1,070.3 736.3 214.2 -151.3 3,560.8 2,787.8 9,802.5 2,146.3 360.2 -1,591.0 -102.9 1,316.6 401.7 -798.9 1,966.8 3,089.0 1,903.4 220.3 -517.1 1,367.1 258.2 -151.6 629.7 -170.9 78.5 306.6 128.9 346.9 -627.1 1,427.0 1,369.5 764.3 1,440.3 159.7 1,187.8 3,119.0 3,707.9 2,975.6 1,485.1 -1,235.6 1,896.8 2,157.6 -42.0

Capital account -46.2 -31.3 -8.1 -7.0 13.9 -45.0 36.4 -60.3 -7.7 0.3 -21.3 -70.7 61.5 -2.6 -2.3 -3.2 -5.0 1.0 -3.0 5.8 17.2 -9.1 -6.3 -35.0 -3.7 40.1 -2.0 -1.7 -26.2 -2.0 -32.1 15.3 -21.8 -1.2 -7.4 38.8 -31.1 -6.5 -13.4 -1.4 -64.9 2.6 -8.4 -6.7 -5.1 73.3 82.8 -9.5

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

January 2019

61

Statistical Appendices

13 Financial indicators (period average)

Stock

Yields (%) Period Call rate (1 day)

CD (91 days)

Treasury bonds (3 years)

Treasury bonds (5 years)

Corporate bonds (3 years, AA-)

1.99 1.99 1.82 1.73 1.74 1.57 1.48 1.49 1.48 1.48 1.49 1.48 1.49 1.49 1.49 1.49 1.49 1.28 1.23 1.23 1.24 1.23 1.23 1.22 1.24 1.23 1.23 1.23 1.23 1.24 1.24 1.23 1.25 1.24 1.26 1.51 1.49 1.49 1.49 1.47 1.50 1.49 1.49 1.50 1.54 1.52 1.51 1.77

2.26 2.24 2.00 1.88 1.87 1.73 1.70 1.70 1.69 1.70 1.74 1.90 1.83 1.76 1.71 1.70 1.68 1.56 1.52 1.51 1.50 1.50 1.53 1.65 1.67 1.64 1.64 1.63 1.62 1.60 1.59 1.59 1.59 1.59 1.70 1.80 1.80 1.80 1.81 1.82 1.82 1.82 1.82 1.81 1.81 1.82 1.85 1.97

2.04 2.02 1.87 1.74 1.88 1.77 1.78 1.74 1.65 1.63 1.75 1.72 1.63 1.47 1.50 1.47 1.46 1.33 1.22 1.24 1.31 1.36 1.61 1.69 1.64 1.67 1.71 1.68 1.69 1.67 1.74 1.78 1.79 2.03 2.15 2.10 2.19 2.28 2.27 2.19 2.25 2.18 2.10 2.02 1.95 2.01 1.94 1.83

2.16 2.12 1.97 1.86 2.11 2.04 2.05 1.95 1.85 1.78 1.95 1.90 1.77 1.59 1.61 1.57 1.55 1.41 1.25 1.26 1.35 1.41 1.74 1.87 1.82 1.86 1.91 1.86 1.91 1.86 1.94 1.99 1.99 2.25 2.36 2.30 2.44 2.54 2.50 2.44 2.53 2.44 2.34 2.24 2.13 2.16 2.05 1.89

2.36 2.30 2.13 1.99 2.12 2.01 2.00 1.98 1.95 1.96 2.12 2.14 2.09 1.95 1.98 1.94 1.91 1.79 1.65 1.65 1.70 1.78 2.02 2.16 2.10 2.13 2.21 2.20 2.22 2.21 2.28 2.32 2.33 2.57 2.71 2.65 2.72 2.82 2.83 2.79 2.86 2.81 2.75 2.66 2.40 2.45 2.40 2.30

2015 1 2 3 4 5 6 7 8 9 10 11 12 2016 1 2 3 4 5 6 7 8 9 10 11 12 2017 1 2 3 4 5 6 7 8 9 10 11 12 2018 1 2 3 4 5 6 7 8 9 10 11 12

KOSPI (end-period)

1,949 1,986 2,041 2,127 2,115 2,074 2,030 1,941 1,963 2,029 1,992 1,961 1,912 1,917 1,996 1,994 1,983 1,970 2,016 2,035 2,044 2,008 1,983 2,026 2,068 2,092 2,160 2,205 2,347 2,392 2,403 2,363 2,394 2,523 2,476 2,467 2,566 2,427 2,446 2,515 2,423 2,326 2,295 2,323 2,343 2,030 2,097 2,041

Source: Bank of Korea

62

Economic Bulletin

14 Monetary indicators (period average, billion won)

Reserves Period 2015 2016 2017 2015 1 2 3 4 5 6 7 8 9 10 11 12 2016 1 2 3 4 5 6 7 8 9 10 11 12 2017 1 2 3 4 5 6 7 8 9 10 11 12 2018 1 2 3 4 5 6 7 8 9 10 11

M1

y-o-y change (%)

120,691.4 137,441.5 151,858.1 113,304.2 116,502.4 115,974.9 115,132.7 117,726.3 118,688.2 122,041.0 121,854.4 126,572.2 125,616.2 126,767.1 128,117.5 131,279.3 134,913.0 132,957.9 135,038.9 135,971.3 135,758.4 135,906.7 139,073.9 142,079.6 141,103.5 141,757.2 143,458.7 147,380.8 150,092.9 145,049.0 149,630.1 149,446.2 150,519.7 149,955.1 152,170.5 154,578.6 159,248.2 155,623.3 158,603.1 157,220.1 163,852.7 160,760.7 161,527.1 160,475.5 164,397.3 163,223.4 165,629.2 170,529.6 170,478.9 168,326.2

16.8 13.9 10.5 15.0 15.9 15.3 16.4 15.7 17.0 20.6 13.2 20.1 17.3 18.8 16.3 15.9 15.8 14.6 17.3 15.5 14.4 11.4 14.1 12.3 12.3 11.8 12.0 12.3 11.3 9.1 10.8 9.9 10.9 10.3 9.4 8.8 12.9 9.8 10.6 6.7 9.2 10.8 8.0 7.4 9.2 8.8 8.8 10.3 7.1 8.2

M2

y-o-y change (%)

636,639.0 734,411.8 802,016.5 579,964.2 592,737.4 600,719.9 610,803.3 621,985.5 630,546.3 645,975.4 653,105.9 665,691.1 669,737.7 677,629.2 690,772.4 699,767.3 708,014.0 713,861.2 720,818.5 722,544.4 730,637.8 735,172.2 738,120.9 751,408.5 753,367.3 762,639.7 776,589.6 780,995.5 776,362.5 789,187.8 791,859.3 791,074.8 798,890.2 804,853.4 805,103.3 810,905.0 826,892.1 817,624.5 830,003.7 830,732.8 839,555.2 840,991.0 841,002.2 839,880.5 846,240.2 843,752.8 837,607.5 845,523.7 840,678.4 840,084.9

18.6 15.4 9.2 12.5 14.3 15.5 17.7 18.9 18.5 21.0 21.3 21.4 21.5 20.6 19.6 20.7 19.4 18.8 18.0 16.2 15.9 13.8 13.0 12.9 12.5 12.5 12.4 11.6 9.7 10.6 9.9 9.5 9.3 9.5 9.1 7.9 9.8 7.2 6.9 6.3 8.1 6.6 6.2 6.2 5.9 4.8 4.0 4.3 1.7 2.7

Lf

y-o-y change (%)

2,182,911.9 2,342,621.3 2,471,225.6 2,092,223.5 2,109,892.3 2,127,887.8 2,148,114.7 2,166,741.1 2,179,561.1 2,200,510.9 2,218,660.3 2,230,000.7 2,232,432.0 2,242,848.2 2,246,070.1 2,261,356.4 2,285,313.5 2,294,544.7 2,299,081.3 2,312,801.2 2,334,256.2 2,352,245.1 2,377,323.1 2,383,040.5 2,391,059.2 2,406,393.5 2,414,040.9 2,417,635.8 2,420,285.6 2,436,994.7 2,450,220.9 2,454,386.7 2,470,861.1 2,472,110.4 2,485,629.9 2,492,388.4 2,504,594.2 2,521,786.3 2,527,641.3 2,551,196.0 2,570,764.6 2,578,361.8 2,590,840.7 2,600,274.3 2,622,268.3 2,637,421.8 2,651,503.4 2,652,829.5 2,674,506.5 2,692,974.8

8.6 7.3 5.5 8.0 8.0 8.3 9.0 9.3 9.0 9.3 9.2 9.4 8.8 7.7 7.5 8.1 8.3 7.8 7.0 6.7 7.1 6.9 7.2 6.9 7.1 7.3 7.5 6.9 5.9 6.2 6.6 6.1 5.9 5.1 4.6 4.6 4.7 4.8 4.7 5.5 6.2 5.8 5.7 5.9 6.1 6.7 6.7 6.4 6.8 6.8

y-o-y change (%)

2,986,699.4 3,229,766.4 3,445,645.8 2,857,610.1 2,876,467.8 2,907,976.4 2,936,746.7 2,960,998.1 2,986,316.5 3,013,503.9 3,028,981.1 3,049,823.2 3,059,051.9 3,076,029.2 3,086,887.8 3,110,535.8 3,133,492.2 3,158,687.8 3,170,277.9 3,189,899.3 3,223,154.5 3,242,338.3 3,270,365.6 3,288,026.0 3,305,950.4 3,328,489.7 3,337,069.4 3,359,110.8 3,365,200.1 3,387,986.2 3,404,957.2 3,416,320.2 3,440,571.4 3,454,563.6 3,472,041.5 3,483,119.8 3,501,084.6 3,521,139.1 3,541,553.2 3,573,130.0 3,596,261.3 3,614,934.9 3,628,930.4 3,643,255.3 3,671,929.8 3,698,202.0 3,718,480.4 3,734,526.2 3,759,646.9 3,786,039.7

9.7 8.1 6.7 8.4 8.6 9.3 10.0 10.3 10.5 10.6 10.4 10.5 10.2 9.2 8.9 8.9 8.9 8.6 8.0 7.7 7.9 7.6 8.0 7.8 8.1 8.2 8.1 8.0 7.4 7.3 7.4 7.1 6.7 6.5 6.2 5.9 5.9 5.8 6.1 6.4 6.8 6.7 6.6 6.6 6.7 7.1 7.1 7.2 7.4 7.5

Source: Bank of Korea

January 2019

63

Statistical Appendices

15 Exchange rates (end-period)

US $/\ Period 2015 2016 2017 2018 2015 1 2 3 4 5 6 7 8 9 10 11 12 2016 1 2 3 4 5 6 7 8 9 10 11 12 2017 1 2 3 4 5 6 7 8 9 10 11 12 2018 1 2 3 4 5 6 7 8 9 10 11 12

Won

1,172.0 1,208.5 1,071.4 1,181.1 1,190.8 1,099.2 1,105.0 1,068.1 1,108.0 1,124.1 1,166.3 1,176.3 1,194.5 1,142.3 1,150.4 1,172.0 1,208.4 1,235.4 1,153.5 1,143.9 1,190.6 1,164.7 1,125.7 1,118.5 1,096.3 1,145.2 1,168.5 1,208.5 1,157.8 1,132.1 1,116.1 1,130.1 1,123.9 1,139.6 1,119.1 1,122.8 1,146.7 1,125.0 1,082.4 1,071.4 1,071.5 1,071.0 1,066.5 1,076.2 1,081.3 1,121.7 1,116.7 1,108.8 1,112.7 1,140.6 1,121.8 1,118.1

Euro/\

100/\ y-o-y change (%)

6.6 3.1 -11.3 4.4 1.1 3.0 3.4 3.5 8.5 10.8 13.9 16.1 13.7 8.4 4.5 6.6 10.8 12.4 4.4 7.1 7.5 3.6 -3.5 -4.9 -8.2 0.3 1.6 3.1 -4.2 -8.4 -3.2 -1.2 -5.6 -2.2 -0.6 0.4 4.6 -1.8 -7.4 -11.3 -7.5 -5.4 -4.4 -4.8 -3.8 -1.6 -0.2 -1.2 -3.0 1.4 3.6 4.4

Won

972.0 1,036.8 949.1 1013.2 921.4 920.7 920.3 897.2 894.6 917.2 939.3 970.1 996.8 994.1 936.7 972.0 1,017.1 1,083.8 1,026.0 1,058.2 1,072.8 1,132.2 1,073.7 1,086.3 1,083.7 1,094.4 1,038.8 1,036.8 1,017.9 1,004.0 998.5 1,016.0 1,014.3 1,017.6 1,012.3 1,017.4 1,020.4 994.2 966.5 949.1 985.0 997.3 1,001.5 985.9 994.0 1,014.8 1,006.0 998.7 981.2 1,008.9 989.0 1,013.2

y-o-y change (%)

5.6 6.7 -8.5 6.8 -11.7 -11.9 -11.4 -10.8 -10.9 -8.3 -5.7 -0.8 3.8 -2.1 0.3 5.6 10.4 17.9 11.5 17.9 19.9 23.4 14.3 12.0 8.7 15.9 10.9 6.7 0.1 -7.5 -2.7 -4.0 -5.4 -10.1 -5.7 -6.3 -5.8 -9.2 -7.0 -8.5 -3.2 -0.7 0.3 -3.0 -2.0 -0.3 -0.6 -1.8 -3.8 1.5 2.3 6.8

Won

1,280.5 1,267.6 1,279.3 1,279.2 1,235.7 1,230.7 1,196.8 1,187.0 1,215.2 1,260.5 1,275.4 1,317.3 1,343.9 1,254.8 1,218.3 1,280.5 1,322.2 1,348.3 1,307.4 1,298.4 1,326.8 1,295.5 1,246.7 1,246.9 1,230.3 1,257.1 1,244.3 1,267.6 1,239.5 1,198.6 1,192.6 1,228.1 1,255.6 1,304.0 1,315.7 1,335.6 1,350.9 1,310.1 1,282.7 1,279.3 1,329.1 1,310.4 1,312.0 1,304.5 1,261.3 1,297.0 1,307.4 1,293.2 1,294.6 1,294.0 1,277.7 1,279.2

y-o-y change (%)

-4.2 -1.0 0.9 0.0 -16.1 -15.9 -18.6 -16.7 -12.6 -8.9 -7.0 -1.4 0.8 -5.6 -11.2 -4.2 7.0 9.6 9.2 9.4 9.2 2.8 -2.3 -5.3 -8.5 0.2 2.1 -1.0 -6.3 -11.1 -8.8 -5.4 -5.4 0.7 5.5 7.1 9.8 4.2 3.1 0.9 7.2 9.3 10.0 6.2 0.5 -0.5 -0.6 -3.2 -4.2 -1.2 -0.4 0.0

Source: Bank of Korea

64

Economic Bulletin

Useful websites

Ministry of Economy and Finance http://english.moef.go.kr Korea Development Institute http://www.kdi.re.kr/kdi_eng Ministry of Trade, Industry and Energy http://english.motie.go.kr Financial Services Commission http://www.fsc.go.kr/eng Financial Supervisory Service http://english.fss.or.kr Fair Trade Commission http://www.ftc.go.kr/eng Ministry of Employment and Labor http://www.moel.go.kr/english Bank of Korea http://www.bok.or.kr/eng Statistics Korea http://kostat.go.kr/portal/eng

Republic of Korea

Economic Bulletin January 2019

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