The Economic Information and Education Center (EIEC) of KDI published the monthly periodical “Republic of Korea Economic Bulletin, August 2023” in English to provide information on Korea’s current economic trends, policy issues, various economic news and key economic indicators to foreign countries. 

The August publication provides the updated information related to the overall Korea’s economy including economic policies in H2 2023, Korea’s GDP in Q2 2023, investor roundtable in Japan, and inbound FDI in H1 2023. Main content is as follows: 

[Economic Bulletin, August 2023]

[Current Economic Trends] 

1. Economic activity

2. Financial markets

3. Public finance

[Policy Issue]

Economic policies for the second half of 2023

[Economic News Briefing]

1. Korea’s economy grows 0.6% in Q2 2023

2. DPM Choo hosts investor roundtable in Japan

3. Inbound FDI posts US $17.1 billion in the first half of 2023

Overview

In May, industrial production, retail sales, facility investment and construction investment increased, while services production decreased. In June, employment continued to increase, and CPI inflation slowed down.

In May, all industry production rose 1.3 percent month-on-month (down 0.9% y-o-y) as industrial production (up 3.2% m-o-m but down 7.3% y-o-y) increased while services production (down 0.1% m-o-m but up 2.0% y-o-y) decreased from the previous month.

In May, retail sales (up 0.4% m-o-m but down 0.6% y-o-y), facility investment (up 3.5% m-o-m but down 4.3% y-o-y) and construction investment (up 0.5% m-o-m and up 5.4% y-o-y) all increased from the previous month.

Exports fell 6.0 percent year-on-year in June as exports of automobiles and vessels improved while IT

exports were stagnant. Average daily exports declined 10.1 percent year-on-year to US $2.36 billion in June 2023.

The consumer sentiment index (CSI) rose 2.7 points month-on-month in June to 100.7. The business survey index (BSI) for all industries remained unchanged at 76, and the BSI outlook for July fell 1 point

to 75.

In May, the cyclical indicator of the coincident composite index rose 0.1 points month-on-month, and the cyclical indicator of the leading composite index stayed flat.

In June, the economy added 333 thousand jobs year-on-year, and the unemployment rate fell 0.3 percentage points to 2.7 percent.

In June, consumer prices rose at a slower pace by 2.7 percent year-on-year, the CPI excluding the food and energy sectors rose by 3.5 percent, and the index excluding the agricultural and petroleum products rose by 4.1 percent.

In June, stock prices were relatively steady, and the won strengthened. Korean Treasury yields rose amid a continued monetary tightening.

In June, housing price falls slowed down (from down 0.22% to down 0.05% m-o-m), and the falls in Jeonse (lump-sum deposits with no monthly payments) prices were also slower than the previous month (from down 0.31% to down 0.16% m-o-m).

Korea’s inflation has been easing. The economy continued to slow down mainly in manufacturing, but downside risks eased as indicated by a partial alleviation of sluggish exports, moderate recovery of domestic demand and economic sentiment, and solid employment growth.

Internationally, with continued expectations for a potential upturn in the IT industry, the anticipations of China’s reopening and worries about its restrictions were mixed while uncertainties persisted because of the monetary tightening and impacts of the prolonged Russia-Ukraine war.

The government plans to push for policy tasks for the second half of the year to boost economic vitality, focusing on the promotion of exports, investment and domestic demand, and stabilize prices and households’ livelihoods as well as improve its economic structure under strict risk management. 

Please click on the Economic Bulletin banner below to see and download the latest full PDF including previous editions.  

Printed publications are available at the Information Desk in KDIS Library (3F) and the Display Table in KDI Central Library (5F).

If you have any inquiries, please feel free to contact us.

(KDI Economic Bulletin, +82-44-550-4621, hs.hwang@kdi.re.kr)