Vol. 32 | No.

10

Republic of Korea

Economic Bulletin
The Green Book : Current Economic Trends
Overview

3

1. Global economy

4

2. Private consumption

8

3. Facility investment

12

4. Construction investment

14

5. Exports and imports

16

6. Mining and manufacturing production

18

7. Service sector activity

20

8. Employment

22

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

26

10. Balance of payments

30

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

32

12. Real estate market
12.1 Housing market
12.2 Land market

36

13. Composite indices of business cycle indicators

40

Policy Issues
2011 Budget plan

42

Economic News Briefing

48

Statistical Appendices

53

The Green Book
Current Economic Trends
Overview
The Korean economy posted a steady recovery although temporary factors such as the
summer vacation and bad weather negatively affected real economic indicators.
Mining and manufacturing production in August fell 1.0 percent month-on-month due to the
summer vacation and production facilities under repair, while rising 17.1 percent year-onyear. Service output lost 0.2 percent month-on-month affected by declining professional,
scientific & technical services, while gaining 4.2 percent year-on-year.
Consumer goods sales, despite a year-on-year increase of 9.3 percent, dropped 0.7 percent
month-on-month in August, as bad weather conditions adversely influenced non-durable
and semi-durable goods sales.
In August facilities investment, thanks to increasing machinery investment, jumped 6.2
percent month-on-month and 39.8 percent year-on-year. Construction completed, while
improving 3.0 percent year-on-year, shed 5.5 percent month-on-month, with sluggish
housing markets and reduced fiscal expenditures bringing pressure to the index.
Exports in September, led by semiconductors and petroleum products, rose 17.2 percent
year-on-year. Imports went up 16.7 percent from a year earlier, as those of raw materials and
capital goods increased.
The total number of workers hired in August gained 386,000 year-on-year, led by
manufacturing and construction industries. The employment rate (seasonally adjusted)
posted 59.0 percent, adding 0.2 percentage points year-on-year, while the unemployment
rate (seasonally adjusted) registered 3.4 percent, shedding 0.3 percentage points.
The consumer price in September posted a year-on-year increase of 3.6 percent, as the
prices of agricultural, livestock & fishery products soared affected by unusual weather
conditions and heavy rainfall. However, core consumer prices, which exclude petroleum and
agricultural products, continued to show a modest increase of 1.9 percent.
In September, stock prices rose and foreign exchange rates fell, as worries over a possibile
global economic slowdown eased and expectations of the Fed’s quantitative easing
measures led to dollar depreciation.
Housing prices in September continued to fall in the metropolitan area, while rental prices
increased due to the autumn moving season and a wait-and-see attitude held by potential
home buyers.
To sum up, although the global economy continues a steady recovery, external uncertainties
still exist as major economies may slow down, foreign exchange rates become increasingly
volatile, and European fiscal problems linger.
The Korean government will continue macroeconomic policies which facilitate sustainable
growth and employment, while keeping away inflation expectations amid the price rise
caused by recent bad weather conditions. On the other hand, the government will renew its
efforts to examine risk factors of each industry and reform the economy so that external
changes may influence the economy to a minimum, while keeping trying to create more jobs
for vulnerable groups, encourage cooperation between large conglomerates and small- and
medium-sized enterprises, both of which are expected to improve the real economy.
Economic Bulletin

3

1-1

US GDP (q-o-q, annualized rate)
Source: US Department of Commerce

1-2

US non-farm payroll employment (m-o-m change)
Source: US Department of Labor

1-3

US federal funds rate and consumer prices
Source: US Federal Reserve Board & Department of Labor

Economic Bulletin

5

1-4

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

1-5

Japan’s GDP growth
Source: Cabinet Office & Ministry of Economy, Trade and Industry, Japan

1-6

Eurozone GDP growth and industrial production
Source: Eurostat

Economic Bulletin

7

2. Private consumption
Private consumption (preliminary GDP) increased 0.8 percent quarter-on-quarter and 3.7
percent year-on-year in the second quarter of 2010.
(Percentage change from same period in previous year)
2008

Private consumption2
(Seasonally adjusted)3
1. Preliminary
2. National accounts
Source: The Bank of Korea

2009

2010 1

Annual

Q4

Annual

Q1

Q2

Q3

Q4

Q1

Q2

1.3

-3.6

0.2

-4.4

-1.0

0.7

5.8

6.3

3.7

-

-4.5

-

0.3

3.3

1.7

0.4

0.7

0.8

3. Percentage change from previous period

Consumer goods sales in August, despite a rise in durable goods sales, dropped 0.7 percent
month-on-month, as the sales of semi-durable and non-durable goods decreased.
On a month-on-month basis, durable goods sales rose 3.1 percent led by automobile sales
which registered a 11.5 percent increase, while semi-durable and non-durable goods sales
fell 2.2 percent and 2.3 percent, respectively.
On a year-on-year basis, the index increased 9.3 percent, as the sales of durable goods such
as automobiles and home electronics, semi-durable goods such as clothing, and nondurable goods such as food & beverages all improved.
(Percentage change from same period in previous year)
2008

2009

2010 1

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Jul

Aug

Consumer goods sales

1.1

2.6

-4.7

1.5

2.8

10.8

9.9

4.9

8.7

9.3

(Seasonally adjusted)

-

-

1.0

5.1

0.3

4.1

0.5

0.0

1.3

-0.7

- Durable goods

2

3

¡⁄Automobiles
- Semi-durable goods
- Non-durable goods

5

4

1.6

8.1

-11.9

5.7

7.9

33.9

29.5

5.4

18.4

25.8

-3.5

21.8

-20.6

20.1

24.1

76.9

48.6

-2.1

13.9

37.7

-3.0

0.3

-1.5

-0.6

-0.7

3.4

2.7

6.9

9.4

4.3

1.4

1.2

-1.4

0.5

1.9

4.1

3.3

3.5

3.4

3.1

1. Preliminary
2. Percentage change from previous period
3. Durable goods: Automobiles, electronic appliances, furniture, telecommunications devices, etc.
4. Semi-durable goods: Clothing, footwear, etc.
5. Non-durable goods: Food, medicine, cosmetics, fuel, tobaccos, etc.
Source: Statistics Korea

Sales at specialized retailers increased at a faster pace year-on-year, while those at
department stores and large discounters decelerated the rise.
(Percentage change from same period in previous year)

- Department stores
- Large discounters
- Specialized retailers

2

Annual

Annual

Q1

Q2

Q3

Q4

Q1

Q2

Jul

Aug

1.2

3.3

-0.8

0.4

4.2

9.1

9.0

10.4

10.9

8.5

2.5

-2.0

-4.4

-2.9

-3.4

3.2

5.9

3.7

8.2

3.5

-1.8

2.9

-6.6

2.6

3.5

12.6

9.7

1.7

7.1

10.7

1. Preliminary
2. Specialized retailers are defined as stores carrying a few (1 to 3) specialized items.
Source: Statistics Korea

8

October 2010

2010 1

2009

2008

2-1

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

2-2

Consumer goods sales
Source: Statistics Korea (industrial activity trend)

2-3

Consumer goods sales by type
Source: Statistics Korea (industrial activity trend)

Economic Bulletin

9

2-4

Department store and discount store sales (current value)
Source: Ministry of Knowledge Economy (monthly retail sales)

2-5

Domestic automobile sales
Source: Korea Automobile Manufacturers Association (monthly automobile industry trend)

2-6

Consumer sentiment index
Source: The Bank of Korea

Economic Bulletin

11

3. Facility investment
Facility investment (preliminary GDP) in the second quarter of 2010 posted a quarter-onquarter increase of 9.1 percent and a year-on-year gain of 30.2 percent.
(Percentage change from same period in previous year)
2008

Facility investment

2

(Seasonally adjusted)

- Transportation equipment

20101

Annual

Q2

Q3

Q4

Annual

Q1

Q2

Q3

Q4

Q1

Q2

-1.0

2.0

5.3

-13.3

-9.1

-23.1

-17.3

-7.0

13.3

29.9

30.2

-

1.2

-1.0

-13.9

-

-10.5

9.0

10.8

5.3

2.4

9.1

-1.8

0.9

8.0

-14.4

-13.0

-23.2

-21.5

-14.8

10.0

32.5

38.7

1.8

5.9

-3.8

-9.8

4.7

-22.6

-2.9

22.9

24.2

19.4

4.8

3

- Machinery

2009

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

3. Percentage change from previous period

Facility investment in August rose 6.2 percent month-on-month or 39.8 percent year-on-year
on the back of strong machinery investments, in particular those for semiconductor
manufacturing.
(Percentage change from same period in previous year)
2008

Facility investment
(Seasonally adjusted)

2

- Machinery
- Transportation equipment
Domestic machinery orders
- Public
- Private

2009

2010 1

Annual

Annual

Q2

Q3

Q4

Q1

Q2

Jun

Jul

Aug

-3.0

-8.0

-12.9

-10.0

10.2

25.5

24.5

23.9

33.7

39.8

-

-

5.6

2.4

13.9

1.4

6.0

8.1

-3.0

6.2

-4.2

-12.9

-18.9

-17.0

8.8

29.3

32.2

31.5

41.9

51.6

2.1

12.0

11.8

20.0

15.5

11.9

0.0

0.4

9.4

-1.1

-13.8

-11.8

-17.7

3.4

20.0

10.5

24.2

1.8

-19.1

33.6

5.0

61.7

29.9

280.2

-27.2

-43.7

-41.2

-68.6

-90.2

42.5

-15.5

-19.9

-22.3

-16.0

35.2

22.9

34.9

24.1

34.6

33.1

- Machinery imports

6.4

-16.6

-27.4

-15.9

7.2

46.3

51.4

66.4

38.2

59.9

Facility investment
adjustment pressure3

-1.7

-4.0

-8.9

1.2

12.8

21.7

14.4

12.0

9.5

10.5

1. Preliminary
2. Percentage change from previous period
3. Production growth rate minus production capacity growth rate in the manufacturing sector (%p)
Sources: Statistics Korea & The Korea International Trade Association (machinery imports data)

Facility investment in September is projected to be affected by a high base effect from the
previous month’s large increase despite brisk machinery imports and solid investor
confidence.

2010

Business survey indices (base=100) for
manufacturing facility investment projections
Source: The Bank of Korea

12

October 2010

Apr

May

Jun

Jul

Aug

Sep

104

104

107

106

106

106

3-1

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

3-2

Machinery orders and estimated facility investment (3-month average)
Source: Statistics Korea (industrial activity trend)

3-3

Machinery imports
Source: Korea International Trade Association (KITA)

Economic Bulletin

13

4. Construction investment
Construction investment (preliminary GDP) in the second quarter of 2010 declined 3.6
percent quarter-on-quarter and 2.9 percent year-on-year.
(Percentage change from same period in previous year)
2008

2009

Annual

Q2

Q3

Q4

Annual

Q1

Q2

-2.8

-0.5

0.4

-7.7

4.4

2.8

5.1

-

-0.4

0.7

-3.3

-

5.9

1.8

- Building construction

-4.6

-0.8

0.2

-14.8

-1.8

-9.6

-2.4

- Civil engineering works

-0.2

-0.2

0.8

1.6

13.3

26.1

15.7

Construction investment

2

(Seasonally adjusted)3

20101
Q3

Q4

Q1

Q2

4.4

5.0

2.3

-2.9

-0.7

-0.1

1.3

-3.6

1.2

2.5

1.7

-6.3

9.7

7.5

3.1

1.1

1. Preliminary
2. National accounts
3. Percentage change from previous period
Source: The Bank of Korea

Construction completed (constant value) in August, while rising 3.0 percent year-on-year,
fell 5.5 percent month-on-month, as building construction and civil engineering works
declined due to the sluggish housing market and reduced fiscal spending.
(Percentage change from same period in previous year)
2008

Construction completed(constant value)
(Seasonally adjusted)

- Civil engineering works
Construction orders (current value)
- Building construction
- Civil engineering works
Building permit area

Annual

Annual

-8.1

1.7

Q2

Q3

Q4

4.5

1.8

5.0

Q1

Q2

Jun

Jul

Aug

2.0

-3.9

-5.9

2.2

3.0

-

-

3.5

-5.3

-1.3

5.4

-2.2

7.7

-4.4

-5.5

-10.3

-6.5

-6.5

-5.1

0.7

-0.1

-8.5

-12.1

-6.6

-7.2

2.2

-5.7

25.9

15.4

11.4

4.8

2.8

2.5

17.4

19.6

-7.6

3.0

-1.1

7.6

11.6

-6.9

-6.6

-15.8

22.2

-13.9

-15.4

-16.0

-47.2

5.6

17.0

-0.4

60.1

34.3

3.3

-24.9

13.5

41.9

140.9

10.6

3.7

-14.2

-51.5

-49.3

52.7

23.2

-20.1

-12.9

-32.7

-4.6

13.1

12.1

47.4

14.0

1.7

-4.7

2

- Building construction

2010 1

2009

1. Preliminary
2. Percentage change from previous period
Source: Statistics Korea & The Ministry of Land, Transport and Maritime Affairs

Construction investment in September, given falling construction-related advanced
indicators, is likely to be low, despite improved investor confidence following the
government’s measures to boost housing market transactions announced on August 29.

2010

Business survey indices (base=100) for
Construction projections
Source: The Construction and Economy Research Institute of Korea

14

October 2010

Apr

May

Jun

Jul

Aug

Sep

85.5

74.1

69.6

58.4

55.9

71.5

4-1

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

4-2

Construction completed and housing construction
Source: Statistics Korea (construction completed)
Kookmin Bank (housing construction)

4-3

Leading indicators of construction investment
Source: Statistics Korea (construction orders)
Ministry of Land, Transport and Maritime Affairs (building construction permit area)

Economic Bulletin

15

5-1

Exports (customs clearance basis)
Source: Korea Customs Service & Ministry of Knowledge Economy (export and import trend)

5-2

Imports (customs clearance basis)
Source: Korea Customs Service & Ministry of Knowledge Economy (export and import trend)

5-3

Trade balance
Source: Korea Customs Service & Ministry of Knowledge Economy (export and import trend)

Economic Bulletin

17

6-1

Industrial production
Source: Statistics Korea (industrial activity trend)

6-2

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

6-3

Inventory
Source: Statistics Korea (industrial activity trend)

Economic Bulletin

19

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Service industry

Source: Statistics Korea (service industry activity trend)

Wholesale and retail sales

Source: Statistics Korea (service industry activity trend)

August 2010 service industry by business

Source: Statistics Korea (service industry activity trend)

Economic Bulletin

21

8. Employment
The number of workers on payroll in August increased by 386,000 from a year earlier, while
the employment rate (seasonally adjusted) rose by 0.2 percentage points year-on-year to
59.0 percent.
By industry, employment in manufacturing (up 297,000), construction (up 109,000) and
services (up 36,000) climbed while that of agriculture, forestry & fishery (down 35,000)
declined. Hiring in manufacturing expanded at the highest pace since August 2000 as output
in mining and manufacturing increased amid robust exports. The service sector decelerated
growth due to sluggish public administration (down 214,000) and whole sales and retail
sales (down 33,000).
By status of workers, despite an accelerated decrease in daily workers (down 115,000), wage
workers (up 569,000) continued to expand growth as the number of regular workers (up
679,000) and temporary workers (up 5,000) increased. Non-wage workers (down 183,000)
including self-employed workers (down 133,000) continued to decline.

2008

2009

Annual Annual Aug
Number of employed (million)

Q1

2010
Q2

Q3

Q4

Q1

Q2

Jun

Jul

Aug

23.58 23.51 23.62 22.90 23.74 23.75 23.63 23.04 24.17 24.28 24.30 24.01

Employment rate (%)

59.5

58.6

58.8

57.4

59.3

59.1

58.7

57.0

59.6

59.8

59.8

59.1

(seasonally adjusted)

59.5

58.6

58.8

58.8

58.6

58.7

58.5

58.3

58.9

58.9

59.1

59.0

Employment growth (y-o-y, thousand)

145

-72

3

-146

-134

-1

-6

132

433

314

473

386

(Excluding agriculture, forestry & fishery)

182

-34

37

-160

-109

24

110

296

51.8

353

513

421

- Manufacturing

-52

-126

-138

-163

-151

-143

-49

61

172

181

238

297

- Construction

-37

-91

-105

-43

-113

-103

-107

-61

44

67

118

109

- Services

260

179

275

38

154

261

261

313

325

126

182

36

- Agriculture, forestry & fishery

-37

-38

-34

14

-25

-25

-116

-164

-85

-39

-40

-35

- Wage workers

236

247

375

73

175

356

385

371

623

457

639

569

·Regular workers

386

383

365

318

313

386

515

651

766

750

725

679

·Temporary workers

-93

22

147

-136

-5

125

105

-37

42

-116

-40

5

·Daily workers

-57

-158

-137

-108

-133

-155

-235

-243

-185

-177

-46

-115

-92

-319

-373

-220

-309

-357

-391

-239

-189

-143

-166

-183

-79

-259

-276

-197

-286

-276

-279

-106

-91

-85

-128

-133

- Male

96

31

7

-23

24

34

89

117

188

109

24

218

- Female

48

-103

-4

-124

-158

-34

-94

15

245

205

23

167

- 15 to 29

-119

-127

-126

-212

-99

-123

-77

-12

-58

-85

-18

-55

- 30 to 39

-26

-173

-166

-159

-213

-169

-149

-42

-13

-27

32

37

- 40 to 49

64

-24

-33

8

-27

-30

-46

-21

48

24

49

44

- 50 to 59

207

198

201

193

156

211

230

251

342

332

314

309

18

54

127

23

49

109

37

-44

114

70

96

50

- Non-wage workers
·Self-employed workers

- 60 or more
Source: Statistics Korea

22

October 2010

8-1

Number of employed and employment growth
Source: Statistics Korea (employment trend)

8-2

Share of employed by industry
Source: Statistics Korea (employment trend)

8-3

Share of employed by status of workers
Source: Statistics Korea (employment trend)

Economic Bulletin

23

The number of unemployed persons in August decreased by 74,000 year-on-year to record
831,000 and the unemployment rate (seasonally adjusted) stood at 3.4 percent, down 0.3
percentage points year-on-year.
By gender, male unemployment (down 83,000) accelerated the decrease while female
unemployment (up 9,000) increased.
By age, the unemployment rate decreased in all age brackets except seniors aged 60 or
more (up 10,000). The unemployment for youths aged 15 to 29 dropped 1.2 percentage
points, recording 7.0 percent.

2008
Annual Q3

2009

2010

Q4 Annual Aug

Q1

Q2

Q3

Q4

Q2

Jun

Jul

Aug

Number of unemployed (thousand)

769

752

757

889

905

908

943

886

817 1,130 868

878

931

831

Unemployment growth (y-o-y, thousand)

-14

-5

24

119

141

107

176

134

60

222 -75

-83

4

-74

- Male

-12

1

25

80

97

83

116

95

25

83 -47

-51

-22

-83

-1

-6

-1

40

44

24

60

39

36

139 -29

-32

25

9

Unemployment rate (%)

3.2

3.1

3.1

3.6

3.7

3.8

3.8

3.6

3.3

4.7 3.5

3.5

3.7

3.3

(Seasonally adjusted)

3.2

3.2

3.2

3.6

3.7

3.5

3.9

3.7

3.5

4.3 3.4

3.5

3.7

3.4

- 15 to 29

7.2

6.9

7.0

8.1

8.2

8.6

8.0

8.1

7.6

9.5 7.7

8.3

8.5

7.0

- 30 to 39

3.1

3.1

3.3

3.6

3.7

3.7

3.9

3.5

3.3

3.9 3.6

3.4

3.4

3.6

- 40 to 49

2.1

2.1

2.0

2.4

2.5

2.5

2.6

2.4

2.3

2.9 2.3

2.2

2.4

2.3

- 50 to 59

2.0

2.1

2.1

2.5

2.5

2.4

2.7

2.5

2.2

3.2 2.1

2.0

2.4

2.1

- 60 or more

1.2

1.0

1.1

1.6

1.5

1.6

1.9

1.6

1.5

5.8 2.1

2.0

2.2

1.8

- Female

Q1

Source: Statistics Korea

The economically inactive population in August was up 172,000 from a year earlier to post
15,820,000. Meanwhile, the labor force participation rate (seasonally adjusted) was up 0.1
percentage point year-on-year to 61.1 percent.
The number of workers quitting jobs due to rest, time-off, and leisure (up 18,000),
housework (up 204,000) and education (up 83,000) increased, while those who quit jobs
due to childcare (down 148,000) decreased.

2008
Annual Q3

2009
Q4 Annual Aug

Q1

2010

Q2

Q3

Q4

Q1

Q2

Jun

Jul

Aug

Economically inactive population (million) 15.25 15.15 15.37 15.70 15.64 16.09 15.35 15.53 15.83 16.25 15.49 15.42 15.38 15.82
Labor force participation rate (%)

61.5 61.8 61.3 60.6 61.1 59.7 61.7 61.3 60.7 59.8 61.8 62.0 62.1 61.1

(seasonally adjusted)

61.5 61.4 61.2 60.6 61.0 60.9 60.9 61.0 60.6 61.0 61.0 61.0 61.3 61.1

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

297

289

372

447

366

514

445

374

- Childcare

63

82

53

40

2

78

48

19

- Housework

61

52

59

148

71

131

125

100

235

237

175

246

175

204

- Education

113

125

109

31

33

90

58

11

-36

-74

23

29

0

83

- Old age

76

104

59

88

110

52

102

105

92

193

59

53

62

39

- Rest

31

-27

99

123

108

162

112

94

123 -187

-27

45

-41

18

Source: Statistics Korea

24

October 2010

456

166

146

264

14

172

15 -118 -126 -112 -141 -148

8-4

Employment rate
Source: Statistics Korea (employment trend)

8-5

Unemployment rate and youth unemployment rate
Source: Statistics Korea (employment trend)

8-6

Economically active population
Source: Statistics Korea (employment trend)

Economic Bulletin

25

9. Financial market
9.1 Stock market
The Korean stock market in September surged amid easing concerns over global economic
slowdown. KOSPI showed a strong upward momentum as economic indicators in major
economies such as the US and China improved and the National Bureau of Economic
Research (NBER) declared the end of the recession, which renewed expectations of
economic recovery.
KOSPI broke the 1,870-point as investor sentiment improved with strong earnings
expectations for Korean companies and successful issuances of government bonds by
Europe’s debt-ridden nations including Portugal.
Foreign investors shifted to a huge net-buying position, purchasing to 4.3 trillion won, as
international money market’s appetite for risk grew and investors noticed that KOSPI
remains undervalued.
(End-period, point, trillion won)
KOSPI

KOSDAQ

Aug 2010

Sep 2010

Change1

Aug 2010

Sep 2010

Change1

1,742.8

1,872.8

+130.1(+7.5%)

464.7

492.8

+28.0 (+6.0%)

964.0

1,037.7

+73.7 (+7.6%)

84.9

91.5

+6.6 (+7.8%)

Stock price index
Market capitalization
Average daily trade value

5.0

6.0

+1.0 (+20.0%)

1.5

1.5

0.0 (0.0%)

Foreign stock ownership

31.5

31.5

0.0 (0.0%)

8.6

9.0

+0.4 (+4.7%)

1. Change from the end of the previous month

9.2 Exchange rate
The won/dollar exchange rate in September decreased 57.9 won from 1,198.1 won at the end
of August to wrap up the month at 1,140.2 won. The won/dollar exchange rate fell mainly as
the dollar is losing steam in the global market with expectations that the Federal Reserve
would launch the second round of quantitative easing. The won’s appreciation was also due
to improved US economic indicators and KOSPI, which continued to set new highs.
The won/yen exchange rate was down 55.7 won month-on-month as the won appreciated
relatively significantly backed by Korea’s solid economic fundamentals amid the weak dollar.
(End-period)
2006

2007

2008

2009

Dec

Dec

Dec

Dec

2010
Aug

Sep

Change1

Won/Dollar

929.8

936.1

1,259.5

1,164.5

1,198.1

1,140.2

2.1

Won/100Yen

783.4

828.6

1,396.8

1,264.5

1,423.8

1,368.1

-7.6

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

26

October 2010

9-1

Stock prices

9-2

Foreign exchange rate (month-end)

9-3

Recent foreign exchange rate

Economic Bulletin

27

9.3 Bond market
Treasury bond yields plummeted in September as the Bank of Korea (BOK) was expected to
keep its policy rate unchanged until the end of this year. Despite improved domestic and
overseas stock market conditions, Treasury bond yields continued to decrease due to the
BOK’s unexpected rate freeze, mounting expectations over the Federal Reserve’s additional
liquidity measures and the strong won.
(End-period)
2006

2007

2008

2009

Dec

Dec

Dec

Dec

Jul

Aug

2010
Sep

Call rate (1 day)

4.60

5.02

3.02

2.01

2.28

2.28

2.27

-1

CD (91 days)

4.86

5.82

3.93

2.88

2.63

2.66

2.66

0

Change1

Treasury bonds (3 yrs)

4.92

5.74

3.41

4.44

3.80

3.55

3.32

-23

Corporate bonds (3 yrs)

5.29

6.77

7.72

5.56

4.75

4.53

4.26

-27

Treasury bonds (5 yrs)

5.00

5.78

3.77

4.98

4.38

4.00

3.71

-29

1. Basis point changes in May 2010 from the previous month

9.4 Money supply & money market
The M2 (monthly average) in July expanded 8.7 percent from a year earlier excluding cash
management accounts (CMAs), which were included in M2 since July 2009. Despite inflows
of foreign investment fund, the year-on-year M2 growth decelerated in July from the previous
month of 9.0 percent, due to reduced volume of security held by financial institutions and
VAT payments.
(Percentage change from same period in previous year, average)
2008
M1

Annual

Q1

2009

Q2

Q3

2010

Q4

Annual

Q1

Q2

Q3

Q4

Q2

Jul

Jul1

-1.8

-12.4

-0.1

2.1

5.0

16.3

10.8

17.6

18.9

17.8

10.7

11.1

404

M2

14.3

13.3

15.3

14.7

13.8

10.1

11.5

10.1

9.5

9.3

8.8

8.7

1,646

Lf 3

11.9

11.6

12.8

12.1

11.2 Upper 7

8.8

7.3

7.5

7.4

8.6

8.44

2,106

2

1. Balance at end July 2010, trillion won
2. M1 excluding corporate MMFs and individual MMFs while including CMAs
3. Liquidity aggregates of financial institutions (mostly identical with M3)
4. Preliminary

In August, bank deposits shifted to a decrease as a net redemption of market deposits
expanded although time deposits grew steadily. Asset management company (AMC)
deposits turned to an increase due to the inflow of corporate funds into money market funds
(MMFs) and a decreased redemption in equity funds.
(Monthly change, end-period, trillion won)
2008

2009

2010

Annual

Aug

Annual

Aug

Jun

Jul

Aug

Aug1

Bank deposits

104.3

18.7

54.8

13.5

5.4

3.5

-3.2

1,045

AMC deposits

63.0

4.0

-27.6

-7.8

-9.5

-6.5

0.6

328

1. Balance at end August, trillion won

28

October 2010

9-4

Interest rates
Source: The Bank of Korea

9-5

Total money supply
Source: The Bank of Korea

9-6

Share of deposits by financial sector (M3 as of year-end)
Source: The Bank of Korea
* Retail finance: Mutual savings banks & National Credit Union Federation of Korea, Others: Investment banks, post office savings, etc.

Economic Bulletin

29

10-1 Current account balance
Source: The Bank of Korea (balance of payments trend)

10-2 Travel balance
Source: The Bank of Korea (balance of payments trend)

10-3 Capital & financial account balance
Source: The Bank of Korea (balance of payments trend)

Economic Bulletin

31

11-1 Prices
Source: Statistics Korea (consumer prices, core inflation) & The Bank of Korea (producer prices)

11-2 Consumer price inflation
Source: Statistics Korea (consumer price trend)

11-3 Contribution to consumer price inflation
Source: Statistics Korea (consumer price trend)

Economic Bulletin

33

11.2 International oil and commodity prices
In September, international oil prices inched up month-on-month while domestic oil product
prices edged down from the previous month.
International oil prices (Dubai crude) showed a mixed trend until mid September before
edging up toward the end of the month. Governments’ aggressive policy response such as
maintaining the low interest rate policy eased concerns that major economies such as the
US would fall into another economic recession, pushing up international oil prices.
(US$/barrel, period average)
2007

2008

2009

2010

Annual

Annual

Annual

Mar

Apr

May

Jun

Jul

Aug

Sep

Dubai crude

68.4

94.3

61.9

77.3

83.6

76.8

74.1

72.6

74.2

75.2

Brent crude

72.8

97.5

61.7

79.0

84.8

75.2

74.9

75.7

77.2

77.9

WTI crude

72.3

99.9

61.9

81.3

84.5

73.7

75.3

76.3

76.6

75.3

Source: KOREAPDS

Record high oil prices (spot prices, US$/barrel)
Dubai crude: 141 (Jul 4, 2008), Brent crude: 145 (Jul 3, 2008), WTI crude: 146 (Jul 14, 2008)

Although international oil prices increased slightly, domestic prices of oil products continued
to decrease month-on-month as the won’s value against the dollar stabilized.
(Won/liter, period average)
2007
Annual

2008
Annual

2009
Annual

Mar

Apr

Gasoline prices

1,526

1,692

1,601

1,691

Diesel prices

1,273

1,614

1,397

1,469

May

2010
Jun

Jul

Aug

Sep

1,725

1,732

1,715

1,722

1,716

1,700

1,507

1,522

1,509

1,518

1,513

1,499

Source: Korea National Oil Corporation

Prices of non-ferrous metals and grain in September increased due to robust demand in
emerging markets such as China and expected decreases in major grain production hit by
aggravating weather conditions.
Prices of major non-ferrous metals such as copper and nickel climbed as robust demand
continued with China, the world’s largest importer of raw materials, expanding imports of
non-ferrous metals.
International prices of grain including corn hiked due to bad weather conditions in major
grain producing countries as well as forecasts of lower US production.
Prices of non-ferrous metals and grain in Sep (m-o-m, %)
Corn (15.5), wheat (1.9), soybean (4.3), raw sugar (20.3), copper (5.7), aluminum (3.4), nickel (5.4), zinc (5.0),
lead (5.2), tin (9.4)

Reuters index*

(Period average)

2008

2009

Annual

Annual

Mar

Apr

May

Jun

Jul

Aug

Sep

2,400

2,536

2,079

2,269

2,329

2,273

2,285

2,477

2,687

2,765

* A weighted average index of 17 major commodities
Source: KOREAPDS

34

2010

2007
Annual

October 2010

11-4 International oil prices
Source: Korea National Oil Corporation

11-5 International oil prices (Dubai crude) and import prices
Source: Korea National Oil Corporation & Korea Customs Service

11-6 International commodity prices
Source: Bloomberg (CRB) & The Bank of Korea (Reuters index)
* CRB demonstrates futures price index of 21 commodities listed on the US Commodity Transaction Market, including beans and other crops, crude oil and jewelry.

Economic Bulletin

35

12. Real estate market
12.1 Housing market
In September, nationwide apartment sales prices were up 0.2 percent month-on-month.
Apartment sales prices in the Seoul metropolitan area fell for the sixth consecutive month in
September with a 0.3 percent decrease. The pace of decrease was however, slowing steadily.
Meanwhile, apartment sales prices in areas excluding the Seoul metropolitan area
continued to increase significantly led by Busan (up 1.1%), South Gyeongsang province (up
1.1%) and North Jeolla province (up 0.8%). Apartment prices in 5 metropolitan cities and
other cities advanced 0.6 percent and 0.5 percent month-on-month, respectively.

Nationwide apartment sales prices

(Percentage change from previous period)

2006 2007

2008

Annual Annual

Annual Annual

2009
Q4

2010
May

Jun

Jul

Aug

Sep

Aug 301

Sep 61 Sep 131 Sep 271

Nationwide

13.8

2.1

2.3

1.6

0.9

0.1

0.0

-0.1

-0.0

0.2

0.05

0.04

Seoul

24.1

3.6

3.2

2.6

0.3

-0.4

-0.6

-0.5

-0.5

-0.3

-0.04

-0.04 -0.04 -0.05

Gangnam2

27.6

0.5

-1.9

3.9

0.2

-0.4

-0.5

-0.5

-0.5

-0.2

-0.04

-0.04 -0.04 -0.05

Gangbuk3

19.0

8.3

9.4

0.9

0.4

-0.3

-0.6

-0.5

-0.4

-0.3

-0.03

-0.04 -0.05 -0.05

24.6

4.0

2.9

0.7

0.2

-0.4

-0.7

-0.7

-0.5

-0.3

-0.04

-0.06 -0.05 -0.05

2.1

-0.6

1.0

2.8

1.9

0.6

0.5

0.4

0.4

0.6

0.18

Seoul metropolitan area
5 metropolitan cities
1. Weekly trends

2. Upscale area of Southern Seoul

0.16

0.04

0.15

0.09

0.26

3. Northern Seoul Source: Kookmin Bank

Apartment rental prices in September were up 0.7 percent from the previous month on
strong seasonal demand in autumn from newlyweds and others. In the Seoul metropolitan
area, apartment rental prices considerably accelerated the month-on-month increase (up
0.8%), reversing a stabilizing trend of recent months.

Nationwide apartment rental prices
2006 2007

(Percentage change from previous period)
2008

2009

Annual Annual Annual Annual Q4

Nationwide
Seoul
Gangnam

2

Gangbuk3
Seoul metropolitan area
5 metropolitan cities
1. Weekly trends

2010
Apr

May

Jun

Jul

Aug

Sep Aug 301 Sep 61 Sep 131 Sep 271

7.6

1.9

0.8

4.5

2.0

0.7

0.5

0.4

0.4

0.4

0.7

0.15

0.19 0.23

0.36

11.5

2.2

-1.8

8.1

2.3

0.5

0.3

0.2

0.1

0.2

0.7

0.12

0.16 0.27

0.51

11.3

0.5

-3.6

10.4

2.7

0.5

0.3

0.3

0.2

0.3

0.7

0.14

0.19 0.29

0.58

11.8

4.6

0.5

5.4

1.9

0.5

0.2

0.0

-0.1

0.1

0.6

0.09

0.13 0.24

0.43

11.7

2.1

-0.4

5.6

1.8

0.6

0.3

0.1

0.1

0.2

0.8

0.14

0.20 0.30

0.48

3.0

1.1

1.6

3.9

2.6

1.0

0.8

0.7

0.6

0.7

0.6

0.15

0.19 0.19

0.25

2. Upscale area of Southern Seoul 3. Northern Seoul Source: Kookmin Bank

Apartment sales transactions in August declined 7.1 percent from 61,878 a month earlier to
post 57,492. The transactions were down 29.0 percent from a year earlier and 17.4 percent
compared with the monthly average of 70,000 recorded in the same month for the past 3
years.

Apartment sales transactions
2007

(Monthly average, thousand)

2008

2009

Annual Annual Annual Jul
Nationwide

84

74

77

Source: Korea Land & Housing Corporation

36

October 2010

91

2010

Aug

Sep

Oct

81

90

87

Nov Dec Jan
82

82

62

Feb Mar Apr
67

80

73

May

Jun

Jul

Aug

62

65

62

57

12-1 Real estate prices
Source: Kookmin Bank (national housing price trend)

12-2 Weekly apartment sales prices and monthly transaction volume
Source: Kookmin Bank (weekly APT price trend) & Korea Land Corporation (monthly land trade trend)

12-3 Apartment prices by region
Source: Kookmin Bank (national housing price trend)

Economic Bulletin

37

12-4 Land and consumer prices since 1970s
Source: Korea Land Corporation (land prices) & Statistics Korea (consumer prices)

12-5 Land prices by region
Source: Korea Land Corporation (land price trend)

12-6 Land trade volume
Source: Korea Land Corporation (land trade trend)

Economic Bulletin

39

13. Composite indices of business cycle indicators
The cyclical indicator of coincident composite index decreased 0.1 point month-on-month to
post 102.1 in August.
Among the components of coincident composite index, four components such as the service
activity index and the value of construction completed went down while the other four
components such as the domestic shipment index and the wholesale & retail sales index
were up.
Components of coincident composite index in August (m-o-m)
Value of construction completed (-0.9%), service activity index (-0.5%), manufacturing operation ratio index
(-0.4%), number of non-farm payroll employment (-0.1%), wholesale & retail sales index (1.5%), volume of
imports (1.3%), domestic shipment index (1.2%), mining & manufacturing production index (0.5%).

The year-on-year leading composite index in August increased 0.2 percentage points from
the previous month showing a fourth consecutive month upward trend of the economy but
decreased by 0.8 percentage points year-on-year due to last year’s high base effect.
Among the components of the leading composite index, five components such as the value
of construction orders and the indicator of inventory cycle declined, while the other five
components such as the ratio of job openings to job seekers and the composite stock price
index climbed.
Components of the leading composite index in August (m-o-m)
Value of construction orders received (-13.1%), value of machinery orders received (-5.5%), indicator of
inventory cycle (-2.8%p), consumer expectations index (-0.5p), spreads between long & short term interest
rates (-0.1%p), ratio of job openings to job seekers (3.1%p), composite stock price index (3.1%), value of
capital goods imports (2.4%), net terms of trade index (1.4%), liquidity in the financial institutions (0.3%).

2010
Feb

Mar

Apr

May

Jun1

Jul1

Aug1

1.2

0.9

0.9

0.7

0.8

0.9

0.3

100.0

100.6

101.1

101.4

101.7

102.2

102.1

0.7

0.6

0.5

0.3

0.3

0.5

-0.1

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

-0.2

0.2

-0.2

0.6

0.3

0.9

0.2

12 month smoothed change
in leading composite index (%)

10.3

9.7

8.6

7.9

7.1

6.7

5.9

(m-o-m, %p)

-1.0

-0.6

-1.1

-0.6

-0.9

-0.4

-0.8

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

1. Preliminary

40

October 2010

13-1 Cyclical indicator of coincident composite index
Source: Statistics Korea

13-2 Leading composite index
Source: Statistics Korea

13-3 Coincident and leading composite indices
Source: Statistics Korea

Economic Bulletin

41

Policy Issues
2011 Budget Plan

Background
During the past two years, the Korean government has put the first priority on riding out the
economic crisis. The administration actively responded to the crisis, as it laid out 40.6 trillion
won in fiscal spending through supplementary budgets and put 26.1 trillion won in tax
reduction, the total of which amounted to 66.7 trillion won or 6.5 percent of GDP, between
2008 and 2010. Helped by the government’s swift response, Korea has seen its economy
recover faster than any other OECD member countries. Against this backdrop, the Korean
government unveiled the 2011 budget plan focusing on 1) expediting the trickle-down of the
economic recovery to the real economy, and 2) improving fiscal consolidation impaired while
the country was trying to overcome the crisis.

Key principles of the 2011 budget plan
The 2011 budget will prioritize 1) supporting working class people through welfare services
designed to the need of individuals in education, daycare, housing and medical services, 2)
nurturing future growth engines such as green technologies, convergence industries and
other breakthrough technologies by providing more systematic support in developing core
technologies, growing professionals, creating new markets, and funding startups, and 3)
improving the fiscal balance so that it will reach a balance between 2013 and 2014 and the
national debt will be reduced to the lower 30 percent range to GDP by 2014.

42

October 2010

The budget plan
The total revenue in 2011 including budgets and funds will be 314.6 billion won, an 8.2
percent increase from 2010, with the tax burden remaining at the same level as 2010 of 19.3
percent of GDP.

<Revenue Budget>

(trillion won, %)
2010 Budget (A)

2011 Budget plan (B)

290.8

314.6

Total revenue

Change (B/A, %)
8.2

Budget

194.8

212.3

9.0

- National tax

170.5

187.8

10.2

- Non-tax revenue

24.3

24.5

0.6

Fund

96.0

102.3

6.5

Tax burden (% to GDP)

19.3

19.3

-

The total expenditure in 2011 will be 309.6 trillion won, a 5.7 percent increase from 2010.
The expenditure increase is 2.5 percentage points lower than the revenue increase, which is
expected to contribute to improving fiscal health.

<Expenditure Budget>

(trillion won, %)
2010 Budget (A)

2011 Budget plan (B)

Total expenditure

292.8

309.6

5.7

- Budget

205.3

215.9

5.2

87.5

93.7

7.0

- Fund

Change (B/A, %)

The fiscal balance is expected to improve 0.7 percentage points from -2.7 percent to GDP in
2010 to -2.0 percent in 2011. The fiscal deficit will start to be reduced from 2011, and a fiscal
balance is expected to be reached by 2013 or 2014. The national debt will be decreased by 0.9
percentage points to 35.2 percent to GDP in 2011 from 2010’s 36.1 percent. Less amount of
national bonds to supplement the general account will be issued in 2011, as 22.0 trillion won
of the bonds are planned to be on the market in 2011 compared with 2010’s 29.3 trillion won.

<Fiscal Balance>

(trillion won)
2010 Budget

2011 Budget plan

-30.1

-25.3

- Percentage to GDP (%)

-2.7

-2.0

Consolidated fiscal balance

-2.0

5.0

Consolidated fiscal balance excluding social security funds

- Percentage to GDP (%)

-0.2

0.4

407.2

436.8

- Percentage to GDP (%)

36.1

35.2

National bonds to supplement the general account

29.3

22.0

National debt

Economic Bulletin

43

<Major budget allocation>
Sector
R&D

(trillion won, %)
2010 Budget (A)

2011 Budget plan (B)

Difference (B-A)

13.7

14.9

1.2

Change (B/A, %)
8.6

Industries, SMEs, energy

15.1

15.2

0.06

0.4

- Excluding a budget for reserving oil

14.4

15.2

0.8

5.2

SOC

25.1

24.3

-0.8

-3.2

3.2

3.3

0.1

1.9

- Four river restoration project
Agriculture, fishery, food

17.3

17.7

0.4

2.3

Health, welfare, employment

81.2

86.3

5.1

6.2

Education

38.3

41.3

3.0

8.0

- Grants for local education

32.3

35.3

3.0

9.3

Culture, sports, tourism

3.9

4.1

0.2

5.0

Environment

5.4

5.7

0.3

5.0

29.6

31.3

1.7

5.8

3.3

3.7

0.4

9.0

Public order, public safety

12.9

13.6

0.7

5.3

General public administration

48.7

53.2

4.5

9.3

- Tax grants to local governments

27.4

30.2

2.8

10.3

292.8

309.6

16.8

5.7

Defense (general account)
Foreign affairs, reunification

Total expenditure

Details of the budget
1. Budgets for supporting vulnerable groups
Single income households with monthly income of 4.5 million won or less and double
income households with monthly income of 6.0 million won or less, in case both of which are
more than four member families, will be able to send their children to daycare centers free of
charge. Up to 0.2 million won of childcare grants will be available to household with children
under 36 months old who do not go to daycare centers. Would-be mothers will be paid 1.0
million won during their maternity leave and reemployment centers for mothers will be
revitalized.
The number of retired police officials and senior volunteer groups engaged in junior safety
patrol in schools and school vicinities will be expanded from 1,740 persons to 2,270 persons
and from 30 groups to 100 groups, respectively. Counseling services for victimized children
will be expanded greatly with increased government support from 58.7 billion won to 91.7
billion won.
Tuitions and admission fees for vocational high schools will be entirely provided by the
government, for which 315.9 trillion won will be set aside. College scholarship for students
from low-income families will also be expanded 100 billion won in 2011 from 2010’s 181.7
billion won to 331.3 billion won.

44

October 2010

The 2011 budget will spend 400 billion won on securing housing for low-income families, a
100 billion won increase from 2010’s 300 billion won. 11,000 old houses owned by those
eligible for government’s basic livelihood support will be improved, an increase of 3,000
houses, along with home improvement to public rental housing. Homeless people who
contracted tuberculosis will be under special care, and the emergency medical service
system will be reformed so that the time taken to get the service can be reduced.
Those with government’s long-term care for the severely disabled will be provided with
expanded services such as visiting nurses and carers in addition to aid for housework and
transportation. More than 10,000 customized jobs for disabled people will be provided in
2011, and companies employing disabled people will have increased support from 5.4 billion
won to 6.5 billion a year in case of the ordinary disabled and from 7.2 million to 8.6 million
for the severely disabled. Visiting childcare service sent to families with disabled children
will be increased about four times from 688 families to 2,500 families. The number of those
eligible for disabled medical support will be raised along with the amount of the support.
Seniors will be provided with 200,000 customized jobs, while having expanded basic
livelihood pensions, Senior Long-term Care Insurance, and visiting carer services.
Temporary educational and medical supports will be offered for two years to those who are
not eligible any more for educational and medical supports due to an income increase, from
which 8,100 persons will benefit. All multicultural families, regardless of their income, will be
provided with childcare support, which will amount to 58 billion won, along with language
learning support of 5.6 billion won. To help settle marriage immigrants in Korea, the
government will set aside 25.7 billion won for early settlement counseling, and 1.4 billion
won for employment counseling.

<Budgets for supporting vulnerable groups>

Childcare

(billion won, %)

2010

2011

Difference

Change (%)

2,730.6

3,268.0

537.5

19.7

Child safety

120.5

219.7

99.1

82.2

Education, culture

736.6

1,364.9

628.4

85.3

14,728.7

15,569.4

840.7

5.7

Housing, medical services
Disabled

367.8

617.2

249.4

67.8

Seniors

3366.9

3,581.3

214.4

6.4

Low-income families

7057.8

7,422.1

364.3

5.2

Multicultural families

59.4

85.9

26.6

44.7

29,168.2

32,128.6

2,960.3

10.1

Total

Economic Bulletin

45

2. Budgets for developing future growth engines
New technologies with great potential markets such as those in robots, biomedicine and
green cars, and industries with large job-creating potential and high added value such as
content and health care industries will have stronger support in 2011. Technologies having
spreading effects on other industries such as those in automobiles, shipbuilding,
convergence, IT, software and energy will have solid support along with the development of
World Premier Materials including secondary battery, LED, steel plates used in automobiles
and vessels, and display panels. One trillion won will be set aside for basic scientific
researches, while space and aeronautics have expanded support. Next generation exports,
in particular plant exports, will also have unwavering support.
Budgets for the four river restoration project will be 3.3 trillion won, an increase of 60 billion
won compared with 2010.
At the advent of the Green House Gas and Energy Target Management System, the
government will invest 13.4 billion won in building up a national statistics system to help
smoothly adopt the target management system. Expanded loans of 600 billion won will be
available to Energy Service Companies (ESCOs), which provide energy-saving solutions. New
renewable energy industries such as solar and nuclear energy, and wind power industries
will be nurtured as new growth engines. More budgets set aside for railroad construction
and maintenance in 2011 than 2010, as trains are cleaner means of transportation than cars.
2.2 trillion won will be put to secure water and upgrade water quality.
Official Development Assistance (ODA) will be increased from 1.3 trillion won in 2010 to 1.6
trillion won in 2011. Seven countries will be eligible for customized consultation on Korea’s
economic development experience.
R&D investment into agricultural and fishery industries will be largely increased, especially
in the fields to relate high technologies such as information technolgy (IT) and biotechnology
(BT) to the industries.
Innovative small- and medium-sized enterprises (SMEs), especially startup innovative
companies, will have expanded loans and education opportunities. The number of persons
benefiting from government’s customized employment programs, which cover from training
to employment, will be increased from 31,000 in 2010 to 50,000 in 2011. Government’s job
training programs will be run on the basis of demand, focusing on green technologies, IT,
and knowledge services.

46

October 2010

<Budgets for developing future growth engines>

(billion won, %)

2010

2011

2,855.9

3,355.4

499.5

17.5

733.8

771.1

37.3

5.1

Four river restoration

3,220.0

3,280.0

60.0

1.9

Response to the climate change

4,348.7

5,777.2

1,428.5

32.8

New growth engines
Next generation exports

Difference

Change (%)

Foreign affairs

1,971.4

2,400.9

429.5

21.8

Agricultural and fishery industries

2,372.5

2,545.3

172.8

7.3

SMEs

3,781.3

3,998.9

217.6

5.8

Employment

1,507.8

1,589.3

81.5

5.4

20,791.4

23,718.1

2,926.7

14.1

Total

3. Budgets for local governments, defense and public safety
Transfer of financial resources from the central government to local governments such as tax
grants and education grants will be increased by 5.9 trillion won, making the total of 95.5
trillion won in 2011. Investments into local industries and corporate investment into
provinces will have larger incentives.
Major defense budgets will reflect the North’s provocation near the Northern Limit Line (NLL)
and its unparallel threat, allocating more resources to reconnaissance and early warning.
Each police station-based crime reporting centers will be integrated under the local office,
for the police to move out faster in case of emergency, while a relief fund for crime victims is
to be set up. Budgets for flood prevention such as river improvement and rainwater
management will be increased, along with larger budget allocation in weather forecasting
equipment.
4. Budgets for fiscal consolidation
The fiscal deficit is expected to decrease 0.7 percentage points in 2011 from 2010’s 2.7
percent to 2.0 percent. The national debt to GDP in 2011 will be improved 0.9 percentage
points to 35.2 percent.
Mid- and long term fiscal management plan will be set up in preparation for possible future
exhaustion of 11 funds including National Pension Fund and Public Employees’ Pension
Fund. Budget cuts for projects with government subsidies will go on in 2011, with thorough
inspections taken place every three years. Similar or overlapping employment programs will
be integrated: 2010’s 202 programs by 23 ministries combined into 151 programs by 22
ministries in 2011. Welfare grant recipients will continue to be checked in terms of eligibility
on the basis of the integrated welfare grant management system which monitors changes in
recipients’ income and property as well as their welfare grant status.

Economic Bulletin

47

Economic
News Briefing

Korea and EU sign free trade pact
Korea and the European Union (EU) officially signed a free trade agreement (FTA) on October
6. The two sides held the official signing ceremony at the European Council headquarters in
Brussels. Korean President Lee Myung-bak, EU President Herman Van Rompuy, and
European Commission President Jose′Manuel Barroso attended the ceremony.
The Korea-EU FTA marks the first free trade pact the EU has settled with an East Asian
country. The agreement will come into provisional effect in July next year. The pact
eliminates or phases out all duties on Korean exports to the EU, and 97.0 percent of the
duties on EU exports to Korea over the next five years. Tariffs on 81.7 percent of Korean
goods and 94.0 percent of EU products will be immediately abolished after the deal takes
effect. With respect to the service sector, Korea is to open 115 industries while Europe will
allow 139 industries.
Once the FTA enters into force, Korea’s real GDP is expected to grow 5.6 percent, and its
exports in manufacturing sectors, including automobiles, electronics, and textiles, are

48

October 2010

predicted to increase considerably. At a joint press conference following the fifth Korea-EU
summit, President Lee said the Korea-EU FTA will bring huge economic benefits to both
Korea and the EU. Lee added that the trade pact will boost economic cooperation and
promote tourism as well as exchanges in education, culture, human resources, sports and
other fields.

IMF’s world economic outlook update
On October 6, the International Monetary Fund (IMF) assessed that the world economic
recovery is proceeding but remains fragile since it is an unbalanced recovery with sluggish
advanced economies and much stronger emerging and developing countries. The
Washington-based agency projected that the world economy will grow by 4.8 percent and
4.2 percent in 2010 and 2011, respectively. In advanced economies, growth is projected at
2.7 percent in 2010 and 2.2 percent in 2011 while that in emerging economies as a whole is
forecast to reach 7.1 percent in 2010 and 6.4 percent in 2011. IMF’s growth forecast for the
Korean economy remained unchanged at 6.1 percent in 2010 and 4.5 percent in 2011.

Korea and Africa to enhance cooperation
The 2010 Korea-Africa Economic Cooperation Forum (KOAFEC) was held in Seoul on
September 16. Several African ministers, a delegation from the African Development Bank
(AfDB), business leaders and specialists attended the forum to discuss bilateral economic
partnership with Korea.
The forum aims at strengthening cooperation ties among KOAFEC partners in the pursuit of
mutual interests. Participants of the forum engaged in stimulating discussions to share
Korea’s development experience with Africa in areas such as construction and infrastructure,
IT and resource and energy cooperation.
Meanwhile, Korea’s Strategy and Finance Ministry and the AfDB signed in Seoul on
September 15, a memorandum of understanding (MOU) extending their US$250 million cofinancing agreement to 2011-2013. In addition, Korea and the AfDB signed two other MOUs
for joint consulting and promotion of trade and investment.

Economic Bulletin

49

Korea reveals mutual growth plan for large enterprises and SMEs
Korea announced on September 29 a plan to promote cooperation between conglomerates
and small and medium enterprises (SMEs). Recognizing the need to stay competitive in the
face of global competition, and also to achieve sustainable growth and job creation, the
government and various industry groups devised measures that would help large
enterprises to grow in harmony with their smaller counterparts.
The plan consists of four parts: Ensuring a fair transaction, protecting the business
boundaries of SMEs, supporting self-sustainable growth, and establishing a system to
implement the above. The first part includes measures to give SMEs more leverage in
negotiating contract terms with large enterprises, prevent big businesses from taking SMEs’
technology, and keep an eye on large retailers’ unfair trade practices.
Other strategies involve restricting entry of conglomerates in certain sectors in order for
SMEs to take more chances, as well as expanding the scope of cooperation between large
enterprises and SMEs. Plans to boost competitiveness of small businesses and improve
working conditions in industrial complexes have also been suggested.
To ensure the sustainability of the plan, “Mutual Growth Committee” will be launched in
December. In addition, “Win-Win Index” will be adopted to assess the performance of each
company. Those rated high in the index will receive favor when participating in government
projects, while the low-ranking firms will be subject to penalties.

Korea to attract FDI to service industry
On September 14, the Ministry of Knowledge Economy announced a plan to attract up to
US$60 billion in foreign direct investment (FDI) to the country’s service industry and create
up to 150,000 new jobs by 2015. To further develop the service industry, the government is
focusing on attracting FDI in areas such as knowledge services, tourism, logistics,
distribution, financial services, education and medical services. The increase in FDI is
expected to improve the service account by about US$2.5 billion over the next five years. In
addition, the government plans to increase Korea’s service productivity to 70 percent of the
OECD average from 63 percent last year. To help attract more foreign investors, the
government revised special laws on free economic zones and the revision is currently
pending in the National Assembly.

50

October 2010

KNOC seals Dana takeover
Korea National Oil Corporation (KNOC) announced on September 24 that it secured 64.26
percent of Dana Petroleum’s stock with its 1,800 pence per share offer. Dana Petroleum, a
British oil company, controls oil reserves in the North Sea and Africa. The deal is KNOC’s first
hostile takeover and the second largest purchase after its takeover of Canada’s Harvest
Energy last year. KNOC will apply for Dana’s delisting from the London Stock Exchange if it
secures more than 75 percent of the shares. It is anticipated that cancellation of listing and
admission to trading of Dana will take effect from October 28. The acquisition would help
KNOC to achieve its target of doubling the current oil production to 300,000 barrels a day
and reserves to 2 billion barrels by 2012.

Economic Bulletin

51

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

Economic Bulletin

53

1. National accounts
(year-on-year change, %, chained 2005 year prices)
Real GDP
Period

2003
2004
2005
2006
2007
2008
2009P

Gross fixed capital formation

Final
consumption
expenditure

Agri., fores.
& fisheries

Manufacturing

2.8
4.6
4.0
5.2
5.1
2.3
0.2

-5.4
9.1
1.3
1.5
4.0
5.6
1.6

5.4
10.0
6.2
8.1
7.2
2.9
-1.6

0.5
1.0
4.6
5.1
5.1
2.0
1.3

Construction

Facilities

4.4
2.1
1.9
3.4
4.2
-1.9
-0.2

8.5
1.3
-0.4
0.5
1.4
-2.8
4.4

-1.5
3.8
5.3
8.2
9.3
-1.0
-9.1

2003

I
II
III
IV

3.5
1.8
2.0
3.9

0.7
-1.6
-9.6
-8.0

5.4
3.1
4.3
8.5

2.0
0.3
0.0
-0.4

5.1
4.7
2.8
5.0

8.2
8.4
8.3
9.0

2.9
-0.7
-5.8
-2.2

2004

I
II
III
IV

5.2
5.9
4.8
2.7

8.2
7.6
8.3
11.6

10.9
12.9
10.4
6.2

-0.1
1.3
1.0
1.8

2.3
4.9
3.1
-1.4

5.3
4.2
1.2
-3.5

-0.6
6.4
7.7
1.8

2005

I
II
III
IV

2.7
3.4
4.5
5.1

0.4
4.8
3.8
-3.1

4.8
3.9
6.7
9.3

2.7
4.7
5.9
4.9

-0.3
1.8
1.5
3.9

-3.1
0.9
-0.3
0.3

3.4
2.8
4.1
10.8

2006

I
II
III
IV

6.1
5.1
5.0
4.6

3.9
-0.3
-1.4
4.2

9.4
9.1
8.7
5.4

5.8
4.9
4.6
5.1

3.8
0.1
4.0
5.7

1.9
-4.2
-0.5
5.1

7.2
8.0
12.0
5.7

2007

I
II
III
IV

4.5
5.3
4.9
5.7

1.6
7.0
8.2
-0.7

4.5
7.2
6.3
10.2

5.1
5.4
5.3
4.7

7.3
5.7
1.5
3.1

4.4
2.0
-0.2
0.4

12.6
13.0
4.0
8.0

2008

I
II
III
IV

5.5
4.4
3.3
-3.3

7.8
4.6
4.3
6.5

8.9
8.3
5.3
-9.4

4.3
3.0
2.4
-1.7

-0.6
0.6
2.1
-8.7

-2.5
-0.5
0.4
-7.7

2.8
2.0
5.3
-13.3

2009P

I
II
III
IV

-4.3
-2.2
1.0
6.0

1.5
-1.3
3.3
2.8

-13.6
-7.2
1.7
13.0

-2.0
0.7
1.7
4.7

-7.4
-2.3
0.4
7.1

2.8
5.1
4.4
5.0

-23.1
-17.3
-7.0
13.3

2010P

I
II

8.1
7.2

-1.9
-2.2

20.7
18.0

5.7
3.6

11.4
6.4

2.3
-2.9

29.9
30.2

P: Preliminary
Source: The Bank of Korea

54

October 2010

Growth rate by economic activity

Growth rate by expenditure on GDP

Economic Bulletin

55

2. Production, shipment and inventory See graphs 6-1, 6-3, 7-1, 7-2 & 7-3
(constant prices, 2005 = 100)

Period

Production
index

2008
2009

Y-o-Y
change (%)

Shipment
index

Y-o-Y
change (%)

Inventory
index

Y-o-Y
change (%)

Service
production
index

Y-o-Y
change (%)

119.8
118.9

3.4
-0.8

118.3
116.3

2.6
-1.7

125.5
115.5

7.1
-8.0

116.1
118.4

3.6
2.0

2008

I
II
III
IV

121.9
125.5
119.6
112.4

11.2
9.2
5.9
-11.0

119.8
123.0
118.0
112.4

9.3
6.8
5.5
-9.9

123.6
133.2
132.0
125.5

8.4
16.3
17.1
7.1

114.0
116.0
116.4
118.1

6.8
4.3
3.4
0.0

2009

I
II
III
IV

102.8
117.8
124.7
130.5

-15.7
-6.1
4.3
16.2

101.9
115.9
120.5
126.8

-14.9
-5.8
2.1
12.8

115.9
110.6
113.3
115.5

-6.2
-16.9
-14.2
-8.0

113.7
118.8
118.6
122.5

-0.3
2.4
1.9
3.7

2010

I
II

129.3
140.8

25.8
19.5

124.1
135.8

21.8
17.2

123.6
127.9

6.6
15.6

120.2
123.6

5.7
4.0

2008

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

126.3
111.1
128.3
126.5
126.5
123.5
123.4
116.2
119.1
126.7
110.3
100.0

12.0
10.9
10.9
11.2
9.2
7.3
8.9
2.2
6.7
-1.5
-13.6
-18.4

121.9
109.9
127.6
124.8
123.7
120.5
121.6
114.7
117.6
124.2
109.8
103.2

10.5
8.1
9.2
8.9
6.6
4.9
8.0
2.0
6.3
-1.7
-12.9
-15.1

123.9
124.3
123.6
124.6
128.7
133.1
132.4
132.1
132.0
134.7
133.2
125.5

4.5
7.5
8.4
11.4
12.7
16.2
14.5
14.3
17.1
17.1
15.9
7.1

114.3
109.6
118.1
116.1
116.7
115.1
117.4
114.2
117.5
118.9
113.3
122.2

8.0
6.6
6.0
6.1
4.1
2.7
4.7
1.2
4.2
3.1
-2.0
-1.0

2009

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

93.8
99.8
114.7
116.1
115.0
122.2
124.3
117.4
132.3
127.0
130.3
134.2

-25.7
-10.2
-10.6
-8.2
-9.1
-1.1
0.7
1.0
11.1
0.2
18.1
34.2

93.1
99.4
113.3
114.7
112.8
120.1
120.0
113.5
127.9
123.4
126.8
130.2

-23.6
-9.6
-11.2
-8.1
-8.8
-0.3
-1.3
-1.0
8.8
-0.6
15.5
26.2

123.7
117.6
115.9
112.4
111.4
110.6
112.3
112.8
113.3
112.6
113.7
115.5

-0.2
-5.4
-6.2
-9.8
-13.4
-16.9
-15.2
-14.6
-14.2
-16.4
-14.6
-8.0

112.4
109.5
119.2
119.9
118.5
118.0
118.1
115.5
122.3
118.3
118.1
131.0

-1.7
-0.1
0.9
3.3
1.5
2.5
0.6
1.1
4.1
-0.5
4.2
7.2

128.5
118.7
140.7
139.4
139.9
143.1
143.6
137.5

37.0
18.9
22.7
20.1
21.7
17.1
15.5
17.1

123.0
113.7
135.6
134.9
134.2
138.2
137.0
132.3

32.1
14.4
19.7
17.6
19.0
15.1
14.2
16.6

119.2
122.5
123.6
124.6
127.9
127.9
132.6
134.5

-3.6
4.2
6.6
10.9
14.8
15.6
18.1
19.2

117.3
117.5
125.8
124.4
122.9
123.5
121.9
120.3

4.4
7.3
5.5
3.8
3.7
4.7
3.2
4.2

2010

1
2
3
4
5
6
7P
8P

P: Preliminary
Source: Statistics Korea

56

October 2010

3. Production capacity and operation ratio See graph 6-2

Period

Y-o-Y
change (%)

Operation
ratio index
(2005=100)

Y-o-Y
change (%)

Average
operation
ratio (%)

115.3
118.9

5.1
3.1

97.2
93.5

-3.2
-3.8

77.5
74.6

Production
capacity index
(2005=100)

2008
2009
2008

I
II
III
IV

113.8
115.1
116.0
116.4

5.9
6.3
5.3
3.4

99.3
103.1
95.5
91.1

2.2
0.5
-0.7
-13.6

81.5
80.8
78.3
69.6

2009

I
II
III
IV

116.8
117.8
119.7
121.1

2.6
2.3
3.2
4.0

81.4
94.6
97.8
100.3

-18.0
-8.2
2.4
10.1

66.9
74.2
78.8
78.4

2010

I
II

122.7
124.6

5.1
5.8

97.7
106.5

20.0
12.6

80.5
83.0

2008 1
2
3
4
5
6
7
8
9
10
11
12

113.8
113.8
113.9
114.3
115.4
115.7
115.7
116.0
116.2
116.3
116.3
116.7

6.2
5.9
5.8
5.9
6.7
6.2
5.5
5.3
4.9
3.6
3.4
3.3

103.2
89.5
105.1
104.7
103.3
101.2
99.8
92.2
94.5
104.1
89.4
79.7

3.4
1.5
1.4
3.2
-0.6
-1.3
1.5
-4.6
0.7
-4.8
-16.8
-20.1

82.1
80.6
81.7
82.1
80.1
80.1
79.3
78.3
77.3
76.9
69.1
62.8

2009 1
2
3
4
5
6
7
8
9
10
11
12

116.8
116.7
117.0
117.6
117.6
118.3
119.1
119.5
120.4
120.6
120.8
121.9

2.6
2.5
2.7
2.9
1.9
2.2
2.9
3.0
3.6
3.7
3.9
4.5

73.5
79.5
91.1
93.4
92.6
97.9
98.6
91.1
103.6
99.1
100.6
101.1

-28.8
-11.2
-13.3
-10.8
-10.4
-3.3
-1.2
-1.2
9.6
-4.8
12.5
26.9

62.8
67.7
70.3
72.4
73.6
76.6
78.7
77.7
79.9
77.3
78.2
79.6

2010 1
2
3
4
5
6
7P
8P

122.1
122.4
123.6
123.8
124.8
125.1
126.7
127.7

4.5
4.9
5.6
5.3
6.1
5.7
6.4
6.9

97.4
88.4
107.2
106.6
104.8
108.2
106.8
98.2

32.5
11.2
17.7
14.1
13.2
10.5
8.3
7.8

78.9
80.3
82.4
82.2
82.8
84.0
84.8
81.8

P: Preliminary
Source: Statistics Korea

Economic Bulletin

57

4. Consumer goods sales index See graphs 2-2, 2-3, 2-4 & 2-5
(constant prices, 2005 = 100)

Period

Consumer
goods
sales
index

2008
2009

Y-o-Y
change (%)

Durable
goods

Y-o-Y
change (%)

Semi-durable
goods

Y-o-Y
change (%)

Non-durable
goods

Y-o-Y
change (%)

110.6
113.5

1.1
2.6

126.4
136.7

1.6
8.1

104.9
105.2

-3.0
0.3

110.0
111.3

1.4
1.2

2008

I
Il
III
IV

111.5
111.7
108.8
110.4

4.5
2.9
1.4
-4.2

129.9
134.1
125.8
115.7

8.7
8.0
-0.1
-9.6

103.6
107.2
94.0
115.0

4.0
-2.7
0.3
-10.7

109.2
108.8
112.3
109.5

2.3
1.3
1.5
0.2

2009

I
II
III
IV

106.3
113.4
111.9
122.3

-4.7
1.5
2.8
10.8

114.4
141.8
135.7
154.9

-11.9
5.7
7.9
33.9

102.0
106.6
93.3
118.9

-1.5
-0.6
-0.7
3.4

107.7
109.3
114.4
114.0

-1.4
0.5
1.9
4.1

2010

I
II

116.8
118.9

9.9
4.9

148.1
149.4

29.5
5.4

104.8
114.0

2.7
6.9

111.3
113.1

3.3
3.5

2008 1
2
3
4
5
6
7
8
9
10
11
12

111.7
107.3
115.4
113.4
115.1
106.5
109.6
106.2
110.7
109.7
108.9
112.7

5.4
3.5
4.6
6.3
3.3
-0.7
4.2
2.2
-1.8
-3.3
-4.6
-4.8

128.3
117.8
143.6
139.1
136.0
127.1
140.7
121.5
115.2
123.9
108.9
114.4

8.1
6.1
11.4
15.6
7.9
0.6
7.9
-4.7
-3.8
-0.5
-15.3
-12.5

104.4
97.8
108.5
108.5
112.1
100.9
97.6
86.2
98.1
111.6
120.3
113.1

6.7
7.2
-1.3
-2.8
-3.7
-1.8
3.5
8.8
-8.9
-10.1
-7.7
-14.3

108.8
108.4
110.5
109.5
112.3
104.5
106.1
112.0
118.8
106.6
107.7
114.3

4.3
0.6
2.2
4.5
2.0
-2.7
1.0
2.0
1.6
-2.2
1.2
1.5

2009 1
2
3
4
5
6
7
8
9
10
11
12

108.5
100.9
109.4
108.6
117.0
114.6
110.9
106.7
118.1
120.4
119.5
127.0

-2.9
-6.0
-5.2
-4.2
1.7
7.6
1.2
0.5
6.7
9.8
9.7
12.7

103.9
115.8
123.6
123.7
144.0
157.8
138.3
122.7
146.0
144.7
153.2
166.8

-19.0
-1.7
-13.9
-11.1
5.9
24.2
-1.7
1.0
26.7
16.8
40.7
45.8

102.6
96.1
107.4
108.3
112.1
99.4
94.3
85.6
100.1
114.9
120.7
121.2

-1.7
-1.7
-1.0
-0.2
0.0
-1.5
-3.4
-0.7
2.0
3.0
0.3
7.2

114.8
99.0
109.2
107.1
113.0
107.8
111.1
112.9
119.1
116.8
109.3
116.0

5.5
-8.7
-1.2
-2.2
0.6
3.2
4.7
0.8
0.3
9.6
1.5
1.5

2010

116.0
114.1
120.2
116.5
121.3
118.9
120.5
116.6

6.9
13.1
9.9
7.3
3.7
3.8
8.7
9.3

145.6
140.1
158.6
144.1
146.7
157.5
163.8
154.3

40.1
21.0
28.3
16.5
1.9
-0.2
18.4
25.8

107.3
98.6
108.5
112.7
120.5
108.9
103.1
90.1

4.6
2.6
1.0
4.1
7.5
9.6
9.3
5.3

108.8
112.2
112.8
110.6
116.2
112.4
114.9
116.4

-5.2
13.3
3.3
3.3
2.8
4.3
3.4
3.1

1
2
3
4
5
6
7P
8P

P: Preliminary
Source: Statistics Korea

58

October 2010

5. Consumer goods shipment index and consumer sentiment index
See graph 2-6

Period

2008
2009

Domestic consumer
goods shipment index
(2005=100)
Y-o-Y
change (%)

Durable
goods

Y-o-Y
change (%)

Non-durable
goods

Y-o-Y
change (%)

Consumer
sentiment index

114.8
115.5

1.6
0.6

126.8
133.9

1.8
5.6

109.9
108.1

1.4
-1.6

-

2008

I
II
III
IV

117.5
115.7
113.8
111.9

5.8
4.2
2.2
-5.7

133.3
136.5
123.0
114.4

11.3
11.4
0.1
-13.9

111.1
107.4
110.1
111.0

3.3
0.9
3.2
-1.8

-

2009

I
II
III
IV

106.7
114.1
118.8
122.5

-9.2
-1.4
4.4
9.5

112.7
138.0
138.0
147.0

-15.5
1.1
12.2
28.5

104.3
104.5
111.1
112.6

-6.1
-2.7
0.9
1.4

-

2010

I
II

117.6
119.2

10.2
4.5

136.1
139.7

20.8
1.2

110.2
111.0

5.7
6.2

-

2008 1
2
3
4
5
6
7
8
9
10
11
12

125.4
106.5
120.6
119.8
115.7
111.7
117.8
111.7
112.0
119.7
107.0
109.1

9.1
2.1
5.7
7.3
2.4
2.9
7.4
-1.1
0.6
-1.6
-9.3
-6.3

132.6
123.1
144.2
144.2
136.9
128.5
134.3
118.6
116.1
127.7
111.0
104.4

12.4
8.3
12.8
20.3
9.3
5.0
8.0
-5.1
-2.8
-6.4
-15.8
-19.8

122.5
99.8
111.1
110.1
107.2
105.0
111.1
108.9
110.3
116.6
105.4
111.0

7.8
-0.7
2.3
1.7
-0.7
2.0
6.9
0.7
2.1
0.8
-6.2
0.1

84
96
96
88
84
81

2009 1
2
3
4
5
6
7
8
9
10
11
12

106.4
102.7
110.9
111.3
112.7
118.2
118.1
110.0
128.2
120.2
118.8
128.4

-15.2
-3.6
-8.0
-7.1
-2.6
5.8
0.3
-1.5
14.5
0.4
11.0
17.7

98.6
115.1
124.4
119.1
138.9
156.1
144.3
124.6
145.0
138.8
146.0
156.1

-25.6
-6.5
-13.7
-17.4
1.5
21.5
7.4
5.1
24.9
8.7
31.5
49.5

109.5
97.7
105.6
108.2
102.2
103.0
107.7
104.2
121.5
112.7
107.9
117.3

-10.6
-2.1
-5.0
-1.7
-4.7
-1.9
-3.1
-4.3
10.2
-3.3
2.4
5.7

84
85
84
98
105
106
109
114
114
117
113
113

2010 1
2
3
4
5
6
7
8
9

122.3
109.5
121.0
119.5
116.3
121.9
120.9P
117.9P
-

14.9
6.6
9.1
7.4
3.2
3.1
2.4P
7.2P
-

135.5
129.1
143.8
135.2
135.5
148.5
145.9P
133.7P
-

37.4
12.2
15.6
13.5
-2.4
-4.9
1.1P
7.3P
-

117.0
101.7
111.9
113.2
108.7
111.2
110.8P
111.6P
-

6.8
4.1
6.0
4.6
6.4
8.0
2.9P
7.1P
-

113
111
110
110
111
112
112
110
109

P: Preliminary
Source: Statistics Korea & The Bank of Korea

Economic Bulletin

59

6. Machinery orders received, domestic machinery shipment
and estimated facility investment index See graph 3-2
Domestic machinery orders received
excluding ship (billion won, constant prices)
Period

2009

Estimated
facility investment
index
(2005=100)

Domestic
machinery
shipment
excluding ship
(2005=100)

Total

Public

Private

20,718

3,735

16,983

9,111

109.3

110.4

Manufacturing

2009

I
ll
III
IV

5,033
4,942
5,591
5,152

932
696
1,345
763

4,101
4,246
4,246
4,389

1,992
2,212
2,321
2,586

97.0
110.4
107.7
122.2

98.7
112.7
107.5
122.6

2010

I
ll

5,563
6,136

525
409

5,038
5,727

2,956
3,509

121.7
137.5

119.6
148.1

2009 1
2
3
4
5
6
7
8
9
10
11
12

1,575
1,682
1,775
1,457
1,377
2,108
2,494
1,340
1,757
1,541
1,942
1,669

232
518
181
91
96
508
1,073
71
200
84
433
246

1,344
1,164
1,594
1,366
1,280
1,600
1,421
1,268
1,557
1,458
1,509
1,422

714
531
746
678
658
883
754
653
914
836
941
810

89.0
95.8
106.1
105.0
107.0
119.1
101.9
100.7
120.4
112.4
121.4
132.9

85.2
97.8
113.1
110.9
104.2
123.0
107.5
98.2
116.8
109.1
116.3
142.3

2010

1,752
1,630
2,181
1,823
2,168
2,145
2,017
1,790

169
107
249
127
122
160
105
102

1,583
1,523
1,932
1,696
2,046
1,986
1,912
1,688

1,010
880
1,065
1,053
1,331
1,125
1,070
911

107.6
114.5
142.9
131.9
133.0
147.6
136.2
140.8

111.6
105.7
141.5
143.1
145.7
155.4
144.0
137.1

-11.8

61.7

-27.2

-8.2

-5.2

1
2
3
4
5
6
7P
8P

2009

Y-o-Y change (%)
-19.9

2009

I
ll
III
IV

-35.5
-17.7
3.4
20.0

150.8
29.9
280.2
-27.2

-44.8
-22.3
-16.0
35.2

-59.1
-27.6
-19.4
51.5

-18.3
-12.9
-9.9
10.0

-12.7
-8.0
-6.4
6.4

2010

I
ll

10.5
24.2

-43.7
-41.2

22.9
34.9

48.4
58.6

25.5
24.5

21.2
31.4

2009 1
2
3
4
5
6
7
8
9
10
11
12

-49.1
-27.5
-25.5
-27.4
-25.4
-2.0
6.1
-19.6
26.5
-7.9
56.2
21.2

56.5
661.0
16.8
-4.1
8.9
44.5
498.5
-17.4
127.5
-79.0
110.1
-44.5

-54.4
-48.3
-28.4
-28.5
-27.1
-11.1
-34.6
-19.7
19.7
14.3
45.5
52.4

-64.6
-65.8
-42.6
-39.1
-26.6
-16.6
-38.1
-30.7
27.3
16.5
74.6
79.5

-21.8
-12.4
-20.2
-18.5
-16.1
-3.7
-18.3
-15.6
5.3
-0.5
10.1
20.8

-20.7
-6.1
-11.4
-9.2
-15.8
1.1
-10.9
-9.9
1.6
-5.3
4.0
20.1

2010

11.2
-3.1
22.9
25.1
57.5
1.8
-19.1
33.6

-27.1
-79.4
37.2
39.0
26.8
-68.6
-90.2
42.5

17.8
30.9
21.3
24.2
59.8
24.1
34.6
33.1

41.4
65.7
42.7
57.0
102.3
27.3
42.0
39.6

20.9
19.5
34.7
25.6
24.3
23.9
33.7
39.8

31.0
8.1
25.1
29.0
39.8
26.3
34.0
39.6

1
2
3
4
5
6
7P
8P

P: Preliminary
Source: Statistics Korea

60

October 2010

7. Value of construction completed and domestic construction
orders received See graphs 4-2 & 4-3

(current prices, billion won)

Period

Type of order

Private

Public

Private

32,393

52,562

107,011

50,771

51,914

Public

89,863

2009

Type of order

Domestic
construction
orders received
(total)

Value of
construction
completed
(total)

2009

I
ll
llI
lV

19,130
23,628
22,106
25,000

6,570
8,665
7,875
9,284

11,544
13,577
13,029
14,412

18,104
26,392
19,719
42,795

9,219
17,747
8,826
14,980

8,263
7,760
9,971
25,920

2010

I
ll

20,066
24,196

7,317
9,171

11,870
14,011

16,848
24,649

7,646
6,746

8,335
16,453

2009

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

6,063
6,102
6,964
7,433
7,227
8,971
6,988
6,719
8,398
7,301
8,060
9,639

2,150
2,039
2,381
2,636
2,597
3,431
2,362
2,427
3,085
2,585
2,780
3,919

3,623
3,751
4,170
4,416
4,208
4,953
4,252
3,929
4,848
4,354
4,854
5,204

5,674
4,949
7,481
7,513
7,151
11,728
6,009
4,660
9,050
10,570
14,538
17,688

2,679
2,758
3,782
5,752
4,434
7,561
3,314
1,756
3,756
4,700
5,101
5,179

2,728
2,065
3,471
1,488
2,596
3,677
2,398
2,807
4,766
5,616
8,853
11,451

6,414
6,051
7,602
7,355
7,784
9,057
7,635
7,376

2,222
2,236
2,859
2,623
2,858
3,690
2,798
2,639

3,924
3,589
4,357
4,473
4,564
4,973
4,495
4,410

6,643
4,615
5,590
6,418
8,354
9,877
7,346
4,010

2,286
2,109
3,252
1,735
1,613
3,398
3,830
1,251

4,074
2,163
2,099
4,356
6,521
5,576
3,315
2,640

3.3

21.2

3.0

60.9

-21.9

2010

1
2
3
4
5
6
7P
8P

2009

Y-o-Y change (%)
-5.7

2009

I
ll
llI
lV

4.3
6.4
-1.2
3.7

24.5
31.9
21.3
10.7

-5.3
-5.9
-11.8
0.4

-12.0
-1.1
7.6
11.6

33.1
182.9
78.9
11.6

-37.3
-60.2
-14.3
17.3

2010

I
ll

4.9
2.4

11.4
5.8

2.8
3.2

-6.9
-6.6

-17.1
-62.0

0.9
112.0

2009

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

-0.5
11.2
3.1
5.5
-1.6
14.6
-2.8
-8.2
6.8
-5.9
3.2
12.9

25.2
34.2
16.7
34.0
16.8
44.4
16.6
14.1
31.9
3.5
8.1
18.3

-11.4
1.0
-5.0
-5.2
-11.4
-1.3
-11.6
-18.9
-5.4
-10.1
1.7
9.8

0.3
-19.0
-14.9
-10.7
-17.9
22.7
-1.8
-27.0
55.3
28.8
78.8
-19.6

64.4
39.7
13.8
234.8
70.5
286.7
135.8
6.7
99.6
90.8
63.3
-33.9

-31.2
-47.3
-34.5
-77.1
-55.5
-48.9
-42.7
-36.6
57.4
16.2
92.5
-9.6

5.8
-0.8
9.2
-1.1
7.8
1.0
9.3
9.8

3.4
9.6
20.1
-0.5
10.0
7.5
18.4
8.7

8.3
-4.3
4.5
1.3
8.5
0.4
5.7
12.2

17.1
-6.7
-25.3
-14.6
16.8
-15.8
22.2
-13.9

-14.7
-23.5
-14.0
-69.8
-63.6
-55.1
15.6
-28.8

49.4
4.7
-39.5
192.8
151.2
51.7
38.2
-5.9

2010

1
2
3
4
5
6
7P
8P

P: Preliminary
Source: Statistics Korea

Economic Bulletin

61

8. Composite indices of business cycle indicators and BSI
See graphs 13-1, 13-2 & 13-3

Y-o-Y
change (%)

Coincident
index
(2005=100)

Cycle of
coincident
index
(2005=100)

BSI (results)

BSI (prospects)

109.1
110.0
110.4
111.1
111.4
112.3
113.3
114.0
114.7
115.4
116.2
116.6

5.3
5.8
5.8
6.0
5.8
6.2
6.7
7.0
7.1
7.2
7.4
7.2

110.7
111.1
111.7
112.3
112.9
113.8
114.7
115.5
115.7
116.2
116.9
118.0

101.3
101.3
101.4
101.5
101.6
101.9
102.4
102.6
102.3
102.4
102.6
103.1

85.6
87.5
109.4
105.8
104.1
100.2
95.8
94.4
101.5
108.3
106.0
98.9

96.5
93.4
112.3
107.7
110.9
105.6
99.3
102.5
111.8
116.3
112.4
103.4

2008 1
2
3
4
5
6
7
8
9
10
11
12

116.3
115.6
115.2
115.1
115.1
114.6
114.0
113.8
113.6
112.7
111.1
110.4

6.3
5.0
3.9
3.2
2.6
1.5
0.5
-0.1
-0.7
-1.8
-3.4
-4.2

119.1
119.3
119.7
119.7
119.9
119.7
119.9
120.2
120.5
120.3
118.7
116.0

103.6
103.4
103.3
102.8
102.6
102.0
101.8
101.6
101.4
100.8
99.1
96.4

95.2
95.6
101.1
101.7
98.1
79.1
80.8
83.1
76.8
64.6
53.7
52.4

103.0
94.8
102.1
98.1
104.7
95.3
83.2
80.8
98.3
84.9
63.7
55.0

2009 1
2
3
4
5
6
7
8
9
10
11
12

110.8
112.2
113.5
115.4
117.6
120.3
122.1
123.2
123.9
124.7
126.1
127.0

-3.9
-2.6
-1.4
0.4
2.7
5.5
7.6
8.8
9.6
10.3
11.3
11.6

113.7
113.9
115.3
117.3
118.4
120.5
121.8
122.8
123.6
124.1
124.7
125.2

94.1
93.9
94.6
95.9
96.3
97.7
98.3
98.7
98.9
98.9
99.0
98.9

58.1
62.4
89.0
93.7
100.9
96.6
98.5
96.0
110.5
107.5
103.8
104.8

52.0
66.0
76.1
86.7
103.8
100.2
98.7
99.8
117.0
116.5
109.0
105.9

2010 1
2
3
4
5
6
7
8
9
10

127.4
127.1
127.3
127.1
127.7
128.2
129.3
129.6
-

11.3
10.3
9.7
8.6
7.9
7.1
6.7
5.9
-

126.2
127.7
128.9
130.1
131.0
132.0
133.2
133.6
-

99.3
100.0
100.6
101.1
101.4
101.7
102.2
102.1
-

99.2
98.7
113.1
108.9
111.9
109.4
105.0
98.6
104.1
-

103.1
102.3
116.2
111.2
113.4
108.9
107.3
100.7
111.1
113.1

Period

Leading
index
(2005=100)

2007 1
2
3
4
5
6
7
8
9
10
11
12

P: Preliminary
Source: Statistics Korea & The Federation of Korean Industries

62

October 2010

9. Balance of payments (I) See graphs 5-1, 5-2, 5-3, 10-1 & 10-2
(million US$)

Period

2008
2009 P

Current
balance

Goods
trade
balance

Exports

-5,776.3
42,667.6

5,669.1
56,127.6

Imports

Services
trade
balance

Income
trade
balance

Current
transfers

422,007.3
363,533.6

435,274.7
323,084.5

-16,671.5
-17,202.7

5,900.0
4,553.6

-673.9
-810.9

2008

I
II
III
IV

-4,866.4
-411.5
-8,329.7
7,831.3

-1,375.4
5,526.4
-3,230.5
4,748.6

99,444.5
114,492.0
115,000.1
93,070.6

106,052.9
114,792.8
122,901.0
91,528.0

-4,936.9
-4,460.5
-5,837.8
-1,436.3

1,979.7
-521.1
1,503.3
2,938.1

-533.8
-956.3
-764.7
1,580.9

2009P

I
II
III
IV

8,618.2
13,097.4
10,395.5
10,556.5

8,308.8
17,576.0
14,702.5
15,540.3

74,421.4
90,360.4
94,780.5
103,971.3

71,417.5
73,970.2
84,845.1
92,851.8

-1,926.2
-4,167.7
-5,334.5
-5,774.3

922.3
292.7
1,690.7
1,647.9

1,313.3
-603.6
-663.2
-857.4

2010P

I
II

1,335.2
10,337.9

7,434.7
15,710.4

101,092.6
120,274.0

98,131.4
105,855.1

-6,041.0
-4,165.9

756.0
-753.5

-814.5
-453.1

2008

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

-2,343.6
-2,372.0
-150.8
-1,578.8
-566.7
1,734.0
-2,433.9
-4,676.2
-1,219.6
4,644.8
2,408.2
778.3

-935.1
-524.2
83.9
1,733.1
367.0
3,426.3
487.2
-2,926.8
-790.9
2,102.2
1,230.4
1,416.0

32,274.6
31,178.2
35,991.8
37,850.2
39,383.2
37,258.6
40,961.2
36,610.6
37,428.3
37,111.1
28,841.6
27,117.9

36,318.0
32,624.3
37,110.6
38,260.4
38,704.5
37,827.9
42,952.5
40,420.4
39,528.1
36,098.8
28,853.6
26,575.6

-1,957.3
-2,205.7
-773.9
-1,072.9
-1,215.3
-2,172.3
-2,719.6
-1,962.9
-1,155.3
180.5
-70.0
-1,546.8

840.3
792.3
347.1
-1,914.2
563.5
829.6
350.0
427.4
725.9
1,590.6
757.4
590.1

-291.5
-434.4
192.1
-324.8
-281.9
-349.6
-551.5
-213.9
0.7
771.5
490.4
319.0

2009P 1
2
3
4
5
6
7
8
9
10
11
12

-1,612.3
3,585.8
6,644.7
4,274.1
3,442.6
5,380.7
4,419.5
1,922.1
4,053.9
4,757.3
4,277.7
1,521.5

-1,762.2
3,100.1
6,970.9
6,105.2
4,872.3
6,598.5
6,114.5
3,319.5
5,268.5
5,675.1
5,842.3
4,022.9

21,133.4
25,397.1
27,890.8
30,326.5
27,823.8
32,210.0
31,908.5
28,949.6
33,922.4
33,970.0
33,991.6
36,009.6

24,898.8
22,598.1
23,920.6
24,873.8
23,407.0
25,689.3
27,679.8
27,408.2
29,757.1
30,396.5
29,534.7
32,920.5

-710.5
-540.4
-675.3
-1,117.3
-1,524.4
-1,526.0
-1,898.0
-1,803.4
-1,633.1
-1,312.6
-1,662.7
-2,799.0

596.4
510.5
-184.6
-803.1
389.6
706.2
511.1
617.7
561.9
559.4
390.0
698.5

264.0
515.6
533.7
89.3
-294.9
-398.0
-308.1
-211.7
-143.4
-164.6
-291.9
-400.9

2010 P 1
2
3
4
5
6
7
8

-630.8
167.6
1,798.4
1,421.6
3,818.4
5,097.9
5,817.3
2,073.8

1,376.4
1,557.9
4,500.4
5,124.4
4,171.4
6,414.6
7,160.4
3,694.6

30,739.4
33,041.6
37,311.6
39,308.6
38,895.3
42,070.1
40,681.9
36,965.4

31,517.1
31,055.6
35,558.6
35,509.1
34,913.6
35,432.5
35,438.7
35,246.9

-2,164.4
-1,777.9
-2,098.7
-1,850.8
-642.7
-1,672.4
-1,497.0
-1,783.7

465.4
547.9
-257.3
-1.378.3
298.3
326.5
437.3
608.8

-308.2
-160.3
-346.0
-473.7
-8.6
29.2
-283.4
-445.9

P: Preliminary
Source: The Bank of Korea & Korea Customs Service

Economic Bulletin

63

10. Balance of payments (II) See graph 10-3
(million US$)
Changes in
reserve
assets

Capital &
financial
account

Direct
investment

Portfolio
investment

Financial
derivative

-50,083.6
26,447.9

-15,632.6
-9,065.8

-2,405.6
50,681.6

-14,769.9
-5,538.1

-17,384.8
-10,817.1

109.3
1,187.3

56,446.0
-69,061.1

-586.1
-54.4

I
ll
III
IV

1,990.3
-3,160.7
-6,286.4
-42,626.8

-5,781.5
-4,140.0
-3,661.1
-2,050.0

-4,401.5
8,356.7
-9,421.3
3,060.5

-1,249.5
-1,240.7
-3,550.4
-8,729.3

13,533.2
-5,909.9
10,564.1
-35,572.2

-110.4
-226.8
-217.7
664.2

3,850.0
5,717.7
12,883.1
33,995.2

-973.9
-2,145.5
1,733.0
800.3

2009P I
II
III
IV

-1,399.2
8,682.0
14,399.1
4,766.0

-2,045.4
-172.1
-2,137.6
-4,710.7

3,532.3
16,740.2
19,914.7
10,494.4

-4,893.6
-614.9
-1,296.5
1,266.9

1,282.5
-7,566.0
-2,258.0
-2,275.6

725.0
294.8
176.5
-9.0

-9,017.4
-19,541.8
-23,886.9
-16,615.0

1,798.4
-2,237.6
-907.7
1,292.5

2010P I
II
III

5,713.7
-4,714.0

-2,645.7
-2,235.2

10,547.5
6,789.0

407.9
-1,144.7

-2,420.4
-8,150.2

-175.6
27.1

-6,863.3
-5,600.2

-185.6
-23.7

2008 1
2
3
4
5
6
7
8
9
10
11
12

1,171.9
202.3
616.1
-835.4
-113.8
-2,211.5
-6,014.3
5,113.2
-5,385.3
-23,462.3
-13,488.5
-5,676.0

-3,002.7
-90.9
-2,687.9
-2,561.0
-683.4
-895.6
-1,465.4
-1,428.7
-767.0
-978.9
-615.2
-455.9

-949.8
-3,144.5
-307.2
4,093.1
9,168.1
-4,904.5
-7,025.3
-343.4
-2,052.6
5,004.0
-2,524.0
580.5

-130.4
-298.1
-821.0
-560.3
-627.6
-52.8
-551.2
-69.3
-2,929.9
-3,888.3
-1,347.1
-3,493.9

5,313.5
3,750.7
4,469.0
-1,720.5
-7,921.8
3,732.4
3,204.5
7,062.4
297.2
-23,952.6
-9,215.7
-2,403.9

-58.7
-14.9
-36.8
-86.7
-49.1
-91.0
-176.9
-107.8
67.0
353.5
213.5
97.2

1,436.1
1,703.1
710.8
2,411.3
2,264.6
1,041.8
9,171.4
-1,215.2
4,926.9
19,988.1
10,904.2
3,102.9

-264.4
466.6
-1,176.1
2.9
-1,584.1
-564.3
-723.2
778.2
1,678.0
-1,170.6
176.1
1,794.8

2009P 1
2
3
4
5
6
7
8
9
10
11
12

4,655.2
-3,216.5
-2,837.9
2,193.3
6,707.8
-219.1
2,200.5
5,296.9
6,901.7
1,582.9
1,544.2
1,638.9

-538.7
-785.8
-720.9
112.4
-574.5
290.0
-1,323.9
-276.1
-537.6
-509.0
-2,835.0
-1,366.7

5,678.8
161.4
-2,307.9
7,133.0
4,263.5
5,343.7
7,940.1
4,063.5
7,911.1
6,130.5
3,389.4
974.5

-248.5
-2,312.2
-2,323.9
-679.8
1,341.1
-1,276.2
-272.7
-721.0
-302.8
-572.9
848.7
991.1

-379.9
-609.6
2,272.0
-4,532.5
1,586.6
-4,620.1
-4,379.0
2,177.0
-56.0
-3,477.9
193.9
1,008.4

143.5
338.7
242.8
160.2
91.1
43.5
236.0
53.5
-113.0
12.2
-52.8
31.6

-4,488.6
-1,260.0
-3,268.8
-5,444.1
-10,248.6
-3,849.1
-5,573.6
-7,095.2
-11,218.1
-7,966.2
-5,637.4
-3,011.4

1,445.7
890.7
-538.0
-1,023.3
98.2
-1,312.5
-1,046.4
-123.8
262.5
1,626.0
-184.5
-149.0

2010 P 1
2
3
4
5
6
7
8

4,631.0
-433.0
1,515.7
8,557.3
-12,037.5
-1,233.8
201.2
-203.3

-1,679.9
-763.5
-202.3
-1.216.1
-548.7
-470.4
-1,899.6
-1,249.5

316.0
2,442.1
7,789.4
5,496.5
-592.6
1,885.1
8,676.4
1,413.6

49.8
254.5
103.6
-250.2
-445.5
-449.0
-80.0
92.6

6,015.1
-2,322.9
-6,112.6
4,647.6
-10,522.0
-2,245.8
-6,495.4
-517.9

-70.0
-43.2
-62.4
-120.5
101.3
46.3
-0.2
57.9

-5,250.9
714.7
-2,327.1
-9,290.2
7,083.3
-3,393.3
-6,020.9
-1,511.0

1,250.7
-449.3
-987.0
-688.7
1,135.8
-470.8
2.4
-359.5

Period

2008
2009P
2010P
2008

P: Preliminary
Source: The Bank of Korea

64

October 2010

Capital transfers
Other
& acquisition of
investment non-financial
assets

Errors and
omissions

11. Prices See graphs 11-1, 11-2 & 11-3
(2005 = 100)
Producer prices
(2005=100)

Consumer prices

Export & import prices

Period
All Items

Commodity

Service

Core

All items

Commodity

Export

Import

2008
2009

109.7
112.8

109.9
113.6

109.6
112.2

108.6
112.5

111.1
110.9

112.5
111.9

109.5
109.2

143.7
137.7

2008 7
8
9
10
11
12

111.2
111.0
111.1
111.0
110.7
110.7

112.9
112.2
112.1
111.7
110.3
110.2

110.1
110.3
110.4
110.6
110.9
111.0

109.2
109.4
109.9
110.1
110.4
110.9

115.5
115.2
114.8
114.4
111.8
109.9

118.1
117.6
117.0
116.7
113.3
110.9

112.1
110.5
115.6
124.5
120.4
115.0

156.8
149.9
153.4
159.7
149.1
140.6

2009 1
2
3
4
5
6
7
8
9
10
11
12

110.8
111.6
112.4
112.7
112.7
112.6
113.0
113.4
113.5
113.2
113.4
113.8

110.4
112.1
113.3
113.8
113.6
113.3
113.9
114.5
114.6
113.9
114.2
115.0

111.1
111.2
111.8
112.0
112.0
112.1
112.5
112.7
112.7
112.8
112.9
113.0

111.1
111.5
112.0
112.2
112.4
112.5
112.7
112.8
112.9
113.0
113.2
113.3

109.6
110.3
110.8
111.0
110.1
109.8
111.1
111.7
111.8
110.9
111.3
111.9

110.4
111.5
112.1
112.1
111.0
110.5
112.1
112.9
113.0
111.8
112.5
113.1

111.1
116.5
118.4
112.2
106.3
108.3
109.0
109.3
107.3
104.0
104.3
105.1

138.1
143.5
145.4
134.1
130.0
136.7
136.6
139.5
136.8
135.3
137.9
138.6

2010 1
2
3
4
5
6
7
8
9

114.2
114.6
115.0
115.6
115.7
115.5
115.9
116.3
117.6

115.6
116.1
116.9
118.1
118.1
117.6
118.3
119.0
121.8

113.3
113.6
113.8
114.0
114.1
114.2
114.4
114.6
114.9

113.4
113.6
113.7
113.9
114.2
114.4
114.6
114.8
115.1

112.7
113.0
113.7
114.6
115.2
114.8
114.9
115.2
116.3

113.9
114.5
115.3
116.4
117.1
116.6
116.7
117.1
118.6

103.5
104.7
104.0
103.8
106.7
109.9
109.4
107.4
-

136.9
137.6
139.2
140.9
144.7
147.6
147.0
147.4
-

2008
2009

4.7
2.8

6.2
3.4

3.7
2.4

8.6
-0.2

10.8
-0.5

21.8
-0.2

36.2
-4.1

2008 7
8
9
10
11
12

5.9
5.6
5.1
4.8
4.5
4.1

9.3
8.4
7.1
6.3
5.1
4.4

3.9
4.0
3.9
3.9
4.1
4.0

4.6
4.7
5.1
5.2
5.3
5.6

12.5
12.3
11.3
10.7
7.8
5.6

16.1
15.6
14.4
14.0
9.9
6.9

25.1
21.9
27.4
38.6
31.5
25.0

50.6
42.6
42.6
47.1
32.0
22.4

2009 1
2
3
4
5
6
7
8
9
10
11
12

3.7
4.1
3.9
3.6
2.7
2.0
1.6
2.2
2.2
2.0
2.4
2.8

3.9
5.2
5.8
5.2
3.3
1.6
0.9
2.0
2.2
2.0
3.5
4.4

3.7
3.4
2.7
2.6
2.3
2.2
2.2
2.2
2.1
2.0
1.8
1.8

5.2
5.2
4.5
4.2
3.9
3.5
3.2
3.1
2.7
2.6
2.5
2.2

4.7
4.4
3.5
1.5
-1.3
-3.1
3.8
-3.0
-2.6
-3.1
-0.4
1.8

5.7
5.5
4.3
1.6
-1.9
-4.3
-5.1
-4.0
-3.4
-4.2
-0.7
2.0

18.6
22.9
17.4
7.7
-4.1
-3.3
-2.7
-1.1
-7.2
-16.5
-13.4
-8.6

16.7
18.0
10.6
-1.8
-13.9
-11.9
-12.9
-7.0
-10.8
-15.3
-7.5
-1.4

2010 1
2
3
4
5
6
7
8
9

3.1
2.7
2.3
2.6
2.7
2.6
2.6
2.6
3.6

4.7
3.6
3.2
3.8
4.0
3.8
3.9
3.9
6.3

2.0
2.2
1.8
1.8
1.9
1.9
1.7
1.7
2.0

2.1
1.9
1.5
1.5
1.6
1.7
1.7
1.8
1.9

2.8
2.4
2.6
3.2
4.6
4.6
3.4
3.1
4.0

3.2
2.7
2.9
3.8
5.5
5.5
4.1
3.7
5.0

-6.9
-10.2
-12.2
-6.7
0.4
1.5
0.3
-1.7
-

-0.9
-4.1
-4.3
5.1
11.3
8.0
7.5
5.7
-

Y-o-Y change (%)
4.2
3.6

Source: The Bank of Korea

Economic Bulletin

65

12. Employment See graphs 8-1, 8-2 & 8-3
Wage workers (thous.)

Economically active persons (thous.)
Period

Employed persons (thous.)

Unemployment (%)
Regular

Temporary

Daily

All industry Manufacturing S.O.C&service
2008
2009

24,347
24,394

23,577
23,506

3,963
3,836

17,906
17,998

3.2
3.6

16,206
16,454

9,007
9,390

5,079
5,101

2,121
1,963

2008 7
8
9
10
11
12

24,673
24,380
24,456
24,582
24,566
24,032

23,903
23,617
23,734
23,847
23,816
23,245

3,975
3,899
3,928
3,945
3,897
3,888

18,088
17,872
17,951
18,005
18,086
17,935

3.1
3.1
3.0
3.0
3.1
3.3

16,363
16,104
16,221
16,314
16,377
16,189

9,054
9,107
9,142
9,138
9,111
9,068

5,163
4,970
5,015
5,034
5,071
5,082

2,146
2,027
2,064
2,142
2,195
2,040

2009 1
2
3
4
5
6
7
8
9
10
11
12

23,709
23,667
24,062
24,456
24,658
24,927
24,756
24,525
24,630
24,655
24,625
24,063

22,861
22,742
23,110
23,524
23,720
23,967
23,828
23,620
23,805
23,856
23,806
23,229

3,895
3,842
3,813
3,846
3,846
3,836
3,802
3,761
3,810
3,858
3,855
3,872

17,663
17,539
17,701
17,899
18,016
18,251
18,210
18,048
18,155
18,130
18,267
18,104

3.6
3.9
4.0
3.8
3.8
3.9
3.7
3.7
3.4
3.2
3.3
3.5

16,053
15,953
16,076
16,353
16,484
16,736
16,589
16,479
16,687
16,690
16,790
16,555

9,102
9,194
9,174
9,227
9,316
9,340
9,383
9,472
9,606
9,628
9,603
9,632

4,982
4,862
4,941
5,051
5,076
5,281
5,255
5,117
5,151
5,170
5,256
5,074

1,969
1,897
1,961
2,076
2,092
2,115
1,952
1,890
1,931
1,892
1,931
4,860

2010 1
2
3
4
5
6
7
8

24,082
24,035
24,382
24,858
25,099
25,158
25,232
24,863

22,865
22,867
23,377
23,924
24,306
24,280
24,301
24,005

3,924
3,886
3,924
3,991
4,036
4,017
4,040
4,058

17,796
5.0
17,762
4.9
18,047
4.1
18,285
3.8
18,499
3.2
18,422
3.5
18,489
3.7
18,175
3.3
Y-o-Y change (%)

16,297
16,282
16,617
16,994
17,255
17,193
17,228
17,048

9,712
9,786
9,926
10,011
10,078
10,089
10,107
10,151

4,860
4,838
4,976
5,147
5,223
5,165
5,215
5,122

1,725
1,657
1,714
1,836
1,953
1,938
1,905
1,775

2008
2009

0.5
0.2

0.6
-0.3

-1.3
-3.2

1.3
0.5

-

1.5
1.5

4.5
4.3

-1.8
0.4

-2.6
-7.4

2008 7
8
9
10
11
12

0.5
0.7
0.5
0.4
0.4
0.2

0.6
0.7
0.5
0.4
0.3
-0.1

-1.2
-1.2
-1.6
-2.3
-2.2
-3.3

1.3
1.3
1.1
1.2
0.7
0.6

-

1.5
1.4
1.0
1.0
1.0
0.5

4.4
3.9
3.6
3.5
3.6
3.6

-1.7
-1.5
-1.7
-1.7
-2.0
-1.8

-2.4
-2.3
-3.2
-2.8
-2.5
-6.3

2009 1
2
3
4
5
6
7
8
9
10
11
12

-0.1
-0.2
-0.2
-0.2
-0.1
0.8
0.3
0.6
0.7
0.3
0.2
0.1

-0.4
-0.6
-0.8
-0.8
-0.9
0.0
-0.3
0.0
0.3
0.0
0.0
-0.1

-3.2
-4.4
-4.7
-3.9
-3.5
-3.9
-4.3
-3.5
-3.0
-2.2
-1.1
-0.4

0.1
0.2
-0.2
-0.2
-0.2
1.0
0.7
1.0
1.1
0.7
1.0
0.9

-

0.1
0.7
0.5
0.6
0.5
2.1
1.4
2.3
2.9
2.3
2.5
2.3

3.3
4.4
3.1
3.7
3.4
3.3
3.6
4.0
5.1
5.4
5.4
6.2

-2.6
-3.8
-1.6
-1.5
-1.7
2.9
1.8
3.0
2.7
2.7
3.7
-0.2

-6.3
-4.1
-5.4
-7.2
-6.2
-4.5
-9.1
-6.7
-6.5
-11.7
-12.0
-9.3

2010 1
2
3
4
5
6
7
8

1.6
1.6
1.3
1.6
1.8
0.9
1.9
1.3

0.0
0.5
1.2
1.7
2.5
1.3
2.0
1.6

0.8
1.2
2.9
3.8
4.9
4.7
6.2
7.9

0.8
1.3
2.0
2.2
2.7
0.9
1.5
0.7

-

1.5
2.1
3.4
3.9
4.7
2.7
3.9
3.5

6.7
6.4
8.2
8.5
8.2
8.0
7.7
7.2

-2.4
-0.5
0.7
1.9
2.9
-2.2
-0.8
0.1

-12.4
-12.6
-12.6
-11.5
-6.6
-8.4
-2.4
-6.1

Source: Statistics Korea

66

October 2010

13. Financial indicators See graphs 9-1 & 9-4
(period average)
Yields (%)

Stock

Period
Call rate
(1 day)

CD
(91 days)

Corporate bonds
(3 years, AA-)

Treasury bonds
(3 years)

Treasury bonds
(5 years)

KOSPI
(end-period)

2006 1
2
3
4
5
6
7
8
9
10
11
12

3.7
3.9
4.0
4.0
4.0
4.2
4.2
4.4
4.5
4.5
4.5
4.5

4.2
4.3
4.3
4.3
4.4
4.5
4.6
4.7
4.6
4.6
4.6
4.8

5.5
5.3
5.3
5.2
5.1
5.2
5.2
5.1
5.0
4.9
5.1
5.2

5.0
4.9
4.9
5.0
4.8
4.9
4.9
4.8
4.7
4.6
4.7
4.8

5.3
5.0
5.1
5.2
4.9
5.0
5.0
4.8
4.8
4.7
4.8
4.9

1,399.80
1,371.60
1,359.60
1,419.70
1,371.70
1,295.70
1,297.80
1,352.70
1,371.40
1,364.60
1,432.20
1,434.50

2007 1
2
3
4
5
6
7
8
9
10
11
12

4.6
4.6
4.6
4.7
4.6
4.5
4.7
4.9
5.0
5.0
5.0
5.0

4.9
5.0
4.9
5.0
5.0
5.0
5.1
5.2
5.3
5.3
5.4
5.7

5.3
5.3
5.2
5.3
5.5
5.6
5.8
5.7
5.9
6.0
6.2
6.7

5.0
4.9
4.8
4.9
5.1
5.2
5.4
5.3
5.4
5.4
5.5
5.9

5.0
4.9
4.8
5.0
5.1
5.4
5.4
5.3
5.4
5.5
5.6
5.9

1,360.20
1,417.30
1,452.60
1,542.24
1,700.91
1,743.60
1,933.27
1,873.24
1,946.48
2,064.95
1,906.00
1,897.10

2008 1
2
3
4
5
6
7
8
9
10
11
12

5.0
5.0
5.0
5.0
5.0
5.0
5.0
5.2
5.2
4.9
4.0
3.3

5.8
5.3
5.3
5.4
5.4
5.4
5.5
5.8
5.8
6.0
5.6
4.7

6.6
6.3
6.1
5.9
6.2
6.7
7.0
7.1
7.5
8.0
8.6
8.4

5.4
5.1
5.2
5.0
5.3
5.7
6.0
5.8
5.8
5.1
5.0
4.0

5.5
5.1
5.2
5.0
5.4
5.8
6.0
5.8
5.8
5.2
5.2
4.3

1,624.68
1,711.62
1,703.99
1,825.47
1,852.02
1,674.92
1,594.67
1,474.24
1,448.06
1,113.06
1,076.07
1,124.47

2009 1
2
3
4
5
6
7
8
9
10
11
12

2.4
2.1
1.8
1.8
1.9
1.9
1.9
2.0
2.0
2.0
2.0
2.0

3.2
2.7
2.5
2.4
2.4
2.4
2.4
2.5
2.6
2.8
2.8
2.8

7.3
7.1
6.1
5.7
5.2
5.2
5.5
5.7
5.6
5.6
5.4
5.4

3.4
3.8
3.7
3.8
3.8
4.1
4.1
4.4
4.4
4.5
4.3
4.2

4.0
4.6
4.5
4.4
4.5
4.7
4.6
4.9
4.9
4.9
4.8
4.8

1,162.11
1,063.03
1,206.26
1,369.40
1,395.89
1,390.07
1,577.29
1,591.85
1,673.14
1,580.69
1,555.60
1,682.77

2010 1
2
3
4
5
6
7
8
9

2.0
2.0
2.0
2.0
2.0
2.0
2.2
2.3
2.3

2.9
2.9
2.8
2.5
2.5
2.5
2.6
2.6
2.7

5.4
5.3
5.0
4.7
4.5
4.7
4.8
4.7
4.4

4.3
4.2
3.9
3.8
3.7
3.8
3.9
3.7
3.5

4.8
4.8
4.5
4.4
4.4
4.4
4.5
4.3
3.9

1,602.43
1,594.58
1,692.85
1,741.56
1,641.25
1,698.29
1,759.33
1,742.75
1,872.81

Source: The Bank of Korea

Economic Bulletin

67

14. Monetary indicators See graph 9-5
(period average)

Period

(billion won)

Reserve money

M1

M2

Lf

2008
2009

52,272.8
61,739.6

307,273.6
357,344.1

1,367,713.4
1,508,550.4

1,794,841.2
1,937,336.0

2009 1
2
3
4
5
6
7
8
9
10
11
12

64,040.6
63,061.7
65,669.5
61,379.9
60,082.5
59,530.3
59,420.2
60,570.3
59,650.3
63,681.7
61,154.5
62,633.2

331,358.0
334,521.7
342,777.0
350,446.0
355,922.0
362,111.3
363,421.4
361,012.4
367,070.3
371,531.7
370,979.7
376,977.3

1,440,275.8
1,457,931.3
1,470,443.1
1,482,009.7
1,491,542.7
1,501,898.3
1,512,822.5
1,524,879.7
1,535,279.8
1,551,319.5
1,564,175.8
1,570,027.1

1,868,843.3
1,879,102.7
1,889,071.5
1,897,923.7
1,913,084.5
1,925,418.1
1,940,223.0
1,956,130.6
1,972,408.5
1,990,372.5
2,000,503.6
2,014,950.4

2010 1
2
3
4
5
6
7
8

65,054.7
66,563.8
65,643.6
64,274.7
67,835.1
66,250.8
66,958.2
67,318.7

381,218.2
387,858.6
386,015.4
388,174.7
394,880.2
400,132.8
403,785.1
400,882.5

1,574,215.8
1,595,403.8
1,607,896.1
1,621,176.9
1,630,904.7
1,647,981.2
1,653,057.5
1,653,907.2

2,019,563.5
2,041,164.1
2,056,233.7
2,069,616.1
2,084,007.4
2,104,724.0
2,111,649.2
2,113.039.3

Y-o-Y change (%)
2008
2009

7.7
18.1

-1.8
16.3

14.3
10.3

11.9
7.9

2009 1
2
3
4
5
6
7
8
9
10
11
12

27.4
20.0
32.5
21.1
19.0
16.1
17.4
16.5
11.9
20.2
12.7
5.6

8.3
9.8
14.3
17.4
17.0
18.5
18.5
18.5
19.5
19.6
17.3
16.4

12.0
11.4
11.1
10.6
9.9
9.6
9.7
10.0
10.0
10.5
9.7
9.3

9.2
8.8
8.4
7.7
7.3
7.0
7.7
8.0
7.7
7.8
7.6
8.1

2010 1
2
3
4
5
6
7
8

1.6
5.6
0.0
4.7
12.9
11.3
12.7
11.1

15.0
15.9
12.6
10.8
10.9
10.5
11.1
11.0

9.3
9.4
9.3
9.4
9.3
9.7
9.3
8.5

8.1
8.6
8.8
9.0
8.9
9.3
8.8
8.0

P: Preliminary
Source: The Bank of Korea

68

October 2010

Editor-in-Chief
Yoon, Yeo-Kwon (MOSF)
Editorial Board
Kim, Young-Min (MOSF)
Shim, Jae-Hak (KDI)
Lee, In-Sook (KDI)
Coordinators
Kim, Dae-Hyun (MOSF)
Cho, Hyun-Joo (KDI)
Editors
Lim, Keun-Hyuk (MOSF)
Kang, Ji-Eun (KDI)

Useful Internet Websites
Economy-related Websites Recommended

Ministry of Strategy and Finance
http://english.mosf.go.kr
Ministry of Knowledge Economy
http://www.mke.go.kr/language/eng
Financial Services Commission
http://www.fsc.go.kr/eng
Financial Supervisory Service
http://english.fss.or.kr
Fair Trade Commission
http://eng.ftc.go.kr
Ministry of Labor
http://english.molab.go.kr/english
The Bank of Korea
http://www.bok.or.kr
Statistics Korea
http://kostat.go.kr

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