The Economic Information and Education Center (EIEC) of KDI published the monthly periodical “Republic of Korea Economic Bulletin, March 2022” in English to provide information on Korea’s current economic trends, policy issue, various economic news and key economic indicators to foreign countries.

The March publication provides the updated information related to the overall Korea’s economy including 2020-2030 labor market outlook, 2022 supplementary budget passed, 4th population policy TF, Korea-UK FTA committee and 2021 external debt. Main content is as follows:

[Current Economic Trends]

1. Economic activity
2. Financial markets
3. Public finance

[Policy Issue]

2020-2030 labor market outlook

[Economic News Briefing]

1. 2022 supplementary budget worth 16.9 trillion won passed
2. Government launches ‘4th Population Policy Taskforce’ to respond to demographic transition
3. Government to boost bilateral economic ties with the UK
4. 2021 external debt amounts to US $628.5 billion

[Overview]

Mining & manufacturing, retail sales and construction investment rose in December 2021, while services and facility investment fell. Employment continued to improve in January 2022, consumer price growth easing.
Industrial production rose 1.8 percent month-on-month in December as mining & manufacturing (up 4.3%, m-o-m and up 6.2%, y-o-y) went up. Services slowed (down 0.4%, m-o-m and up 5.8%, y-o-y).
Compared with a year ago, industrial production increased 6.5 percent. Facility investment (down 0.4%, m-o-m and up 5.0%, y-o-y) went down in December, and retail sales (up 2.0%, m-o-m and up 6.5%, y-o-y) rose, as well as construction investment (up 7.4%, m-o-m and up 1.5%, y-o-y).
Exports rose 15.2 percent year-on-year in January 2022 due to strong semiconductors, petrochemicals and other major exports. Average daily exports, an indicator calculated according to the days worked, rose 17.9 percent year-on-year (US $2.13 billion, January 2021 → US $2.51 billion, January 2022).
The consumer sentiment index (CSI) rose 0.6 points in January 2022 to 104.4. The business survey index (BSI) for the manufacturing sector dropped 5 points to 90, and the BSI outlook for February 2022 declined by 2 points to 90.
The cyclical indicator of the coincident composite index for December went up by 0.7 points, and the cyclical indicator of the leading composite index fell 0.2 points.
The economy added 1,135,000 jobs year-on-year in January 2022 and the unemployment rate fell 1.6 percentage points year-on-year to 4.1 percent.
Consumer prices went up 3.6 percent year-on-year in January 2022 as the prices of personal services rose at a faster pace. Core prices rose 3.0 percent.
Stock prices went down in January 2022 due to major economies’ monetary policy changes and growing geopolitical risks. The won weakened and Korea Treasury yields rose.
Housing price growth eased in January 2022 (up 0.29% → up 0.10%, m-o-m), as well as growth in Jeonse (lump-sum deposits with no monthly payments) prices (up 0.25% → up 0.07%, m-o-m).
Despite strong exports and rapidly improving employment data, concerns linger over the possibility that the spread of the omicron variant might affect the domestic demand.
Global economic uncertainties are rising as the disrupted supply chain and expanding inflation have been increasing the likelihood for major economies to change their monetary policies, and the volatility in commodities and financial markets is growing due to the spread of the omicron variant and rising geopolitical tensions.
The government will work hard to proactively deal with inflation risks and improve people’s livelihoods, as well as to keep its eye on internal and external risks, while successfully responding to the pandemic and giving full support for economic recovery.

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)