The Economic Information and Education Center (EIEC) of KDI published the monthly periodical “Republic of Korea Economic Bulletin, December 2024” to promote a greater understanding of the Korean economy by providing readers with information on the latest economic trends and policy issues as well as relevant news and current events. 

The December publication provides updated information related to the overall Korea’s economy including issuance of Australian dollar-dominated bonds, meetings with the IMF mission team, and Korea’s external debt in Q3 2024.

Main content is as follows: 

[Economic Bulletin, December 2024]

[Current Economic Trends] 

1. Economic activity

2. Financial markets

3. Public finance

[Economic News Briefing]

- Preparations to Issue the First-Ever Australian Dollar-Denominated Foreign Exchange Bond

- 2024 Article IV Consultation: Meetings with the IMF Mission Team to Korea

- Korea’s External debt Amounted to US$702.7 billion in Q3 2024

Overview

In September, facilities investment increased while construction investment decreased. Industrial production adjusted after a sharp rebound in the previous month. In October, job growth increased and the growth of consumer prices continued to moderate.

In September, total production fell (down 0.3% m-o-m and down 1.1 y-o-y), as industrial production (down 0.2% m-o-m and down 1.3% y-o-y), services production (down 0.7% m-o-m and down 0.2%  y-o-y), and construction production (down 0.1% and down 12.1% y-o-y) declined, while public administration increased (up 2.6% m-o-m and up 1.3% y-o-y).

In September, facilities investment (up 8.4% m-o-m and up 6.1% y-o-y) surged, while retail sales (down 0.4% m-o-m and down 2.2% y-o-y) and construction investment (down 0.1% m-o-m and down 12.1% y-o-y) decreased.

In October, exports increased by 4.6 percent from a year ago, driven by growth in semiconductor and automobile exports.

In October, the Consumer Sentiment Index (CSI) increased by 1.7 points to 101.7 month-on-month. The Composite Business Sentiment Index (CBSI) moved up by 0.9 points in October, while the CBSI outlook for November fell by 2.8 points to 89.8.

In September, the cyclical indicator of the coincident composite index fell by 0.1 points month-on month, while the cyclical indicator of the leading composite index remained unchanged.

In October, the economy added 83,000 jobs compared to the previous year and the unemployment rate rose by 0.2 percentage points from a year ago to 2.3 percent.

In October, the year-on-year growth of Consumer Price Index (CPI) slowed down to 1.3 percent. The index excluding food and energy prices increased by 1.8 percent, and the index excluding agricultural and petroleum products increased by 1.7 percent. The CPI for basic necessities rose by 1.2 percent.

In October, Korean equity prices fell, the Korean Treasury Bond yields rose, and the Korean Won weakened against the dollar.

In October, housing prices and Jeonse (lump-sum deposits with no monthly payments) prices rose at a slower rate than the previous month (up 0.07% m-o-m and up 0.16% m-o-m, respectively).

As prices have continued to stabilize recently, the Korean economy has been able to show a sustained recovery. However, economic uncertainties still persist, both domestically and globally.

While the global economic is broadly on a recovery path, uncertainties are increasing owing to persistent geopolitical risks in the Middle East and potential changes in the trade environment. 

Against this background, the Korean government plans to mobilized a comprehensive policy response system in finance, trade, and industry. The government also plans to strengthen support for vulnerable sectors such as construction investment and small business owners with a range of tailored policies alongside measures outlined in the ‘Dynamic Economy Roadmap’ to enhance the sustainability of the Korean economy.

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

(KDI Economic Bulletin, +82-44-550-4170, sjung@kdi.re.kr)