The Economic Information and Education Center (EIEC) of KDI published the monthly periodical “Republic of Korea Economic Bulletin, November 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 November publication provides the updated information related to the overall Korea’s economy including Korea’s GDP in Q3 2023, G20 FMCBG meeting, and Inbound FDI in Q3 2023. Main content is as follows: 

[Economic Bulletin, November 2023]

[Current Economic Trends] 

1. Economic activity

2. Financial markets

3. Public finance

[Economic News Briefing]

1. Korea’s economy grows 0.6% in Q3 2023

2. DPM Choo suggests ‘restoration’ approaches at G20 FMCBG meeting

3. Inbound FDI records US $24.0 billion in Q3 2023

Overview

In August, industrial and services production, facility investment and construction investment rose while retail sales fell. In September, job growth was even stronger while consumer prices rose at a faster pace.

In August, all industry production grew 2.2 percent month-on-month (up 1.5% y-o-y) as industrial production (up 5.5% m-o-m and down 0.5% y-o-y) and services production (up 0.3% m-o-m and up 1.7% y-o-y) climbed from a month earlier.

In August, facility investment (up 3.6% m-o-m and down 14.9% y-o-y) and construction investment (up 4.4% m-o-m and up 12.3% y-o-y) rose month-on-month, while retail sales (down 0.3% m-o-m and down 4.8% y-o-y) fell.

In September, exports declined at a slower pace (from down 8.4% to down 4.4% y-o-y) than the previous month thanks to the upturn in semiconductors and exports to China. Average daily exports fell by 2.1 percent from a year ago to US $2.60 billion.

In September, the consumer sentiment index (CSI) fell by 3.4 points month-on-month to 99.7. The business survey index (BSI) for all industries increased 2 points from a month ago to 73 and the BSI outlook for October remained unchanged at 73.

In August, the cyclical indicator of the coincident composite index decreased by 0.2 points month-on-month, and the cyclical indicator of the leading composite index remained steady.

In September, the economy added 309 thousand jobs year-on-year and the unemployment rate fell 0.1 percentage points to 2.3 percent. 

In September, consumer prices rose at a faster pace (from up 3.4% to up 3.7% y-o-y), the CPI excluding the food and energy sectors rose by 3.3 percent, and the index excluding the agricultural and petroleum products rose by 3.8 percent. The index of the cost of basic necessities rose by 4.4 percent.

In September, stock prices fell, the won weakened and Korean Treasury bond yields rose amid concerns about the Fed’s prolonged monetary tightening.

In September, housing prices rose faster (from up 0.16% to up 0.25% m-o-m) and Jeonse (lump-sum deposits with no monthly payments) prices continued to rise (from up 0.15% to up 0.32% m-o-m). 

Amid recent moderation in inflation, uncertainties still surround the Korean economy. Rebounds in production and exports are expected, particularly in manufacturing sectors such as semiconductors, while the ongoing improvement in services and employment has led to a gradual easing of the economic slowdown.

Internationally, alongside the anticipations for the global IT industry’s rebound and a surge in Chinese tourists, concerns remain over the prolonged monetary tightening. At the same time, uncertainties linger as the political unrest in the Middle East in addition to the Russia-Ukraine war exacerbates volatile commodity prices.

The government plans to meticulously manage risks at home and abroad, aiming to firmly establish the foundation for achieving stability of households’ livelihoods while ramping up the country’s domestic consumption, investment and exports as well as improving its economic structure.

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)