Ministry of Trade, Industry and Energy

Retail Sales Figures for December 2010

The Ministry of Knowledge Economy has released its year-on-year retail sales data for the month of December. The nation’s three major department stores posted an 11.6 percent increase in sales, while the three major discount chains posted a 2.9 percent increase. An intense cold spell chilled the country in December, leading to brisk sales of apparel and heating devices at all three major department stores. Additionally, the gift-giving season at the end of the year contributed to higher sales of general goods and luxury goods. Sales were up in all categories: children’s goods and sporting items (17.5 percent), general goods (9.9 percent), women’s suits (9.5 percent), women’s casual wear (12.7 percent), men’s clothing (8.1 percent), household goods (15.3 percent), luxury goods (20.8 percent) and food (9.2 percent). With the start of the winter sports season, spending on sports items increased 7.1 percent. Spending on apparel (6.0 percent), household goods (1.9 percent), food (5.7 percent) and general goods (6.3 percent) also increased. Notably, sales of household appliances and cultural goods dropped 12.3 percent. Sales at the three major department stores increased 9.5 percent for all of 2010 compared with 2009. For the three major discount chains, the corresponding figure was 4.9 percent.     * Released by the Distribution and Logistics Division     date2011-01-25

Government Leading Efforts to Save Energy

A prolonged cold spell has Korea in its grip, and demand for electricity reached an all-time high last week. As the nation’s energy needs are expected to remain high throughout the winter season, the government has rolled up its sleeves and called for nationwide efforts to conserve energy. Public agencies are at the forefront of these efforts. The government looks at oil prices and reserve electricity to measure the disparity between supply and demand. On a scale from 1 to 4, level 4 indicates a severe energy shortage. Korea is currently at level 1. Government guidelines for level 1 prohibit the use of central heating for two hour-long periods per day during peak hours, and mandate that indoor temperatures be set no higher than 18 degrees Celsius. These guidelines apply to all the nation’s public agencies: government agencies, local governments, government-affiliated organizations and public enterprises. Officials working at these organizations are not allowed to use individual heaters during working hours, but instead are advised to wear long johns. If demand escalates, more stringent measures will be put in place. Level 2: Decorative lighting will be turned off. Level 3: Elevators will not stop at floors 1 though 5. Employees will be allowed to drive to work only every other day. Indoor lighting will be limited. Level 4: Employees will not be allowed to drive to work. Public facilities will close earlier than usual. The government will conduct unannounced inspections to monitor compliance and will publicize its findings. date2011-01-19

Parts and Materials Industry Trade Figures for 2010

  The Ministry of Knowledge Economy has released its parts and material industry trade figures for 2010. Following a decline in trade volume in 2009 amid a weakened global economy, 2010 was a good year for exports and the trade balance, both of which hit an all-time high. The trade balance in the parts and materials industry stood at $77.9 billion—lmost double the corresponding figure for all industries, which recorded $41.7 billion. Parts and materials exports climbed 34.1 percent from a year earlier to record $229.3 billion. In particular, outbound shipments of semiconductors, automobile parts and display panels showed a strong increase. Although import growth slowed in the second half of the year, increased domestic demand and robust exports in key industries led inbound shipments for this sector to gain 26.4 percent. In particular, imports of transportation machine parts and basic metals surged.     * Released by the Components and Materials Policy Division   date2011-01-12

IT Trade Figures for 2010

The Ministry of Knowledge Economy has released its IT trade figures for 2010. The national trade balance in the information technology sector rose 32.7 percent to $78.2 billion—asily surpassing the previous record of $60.4 billion, which was set in 2007. IT exports climbed 27.3 percent to an all-time high of $154 billion. Semiconductors became the first single export item to exceed $50 billion. Thanks to increased demand and international sporting events such the World Cup and the Asian Games, display panel exports rose for a ninth consecutive year. Television manufacturers benefited from growing export markets for LED and 3D models. Most notably, outbound shipments of smartphones rose sharply—he figure more than doubled compared with 2009, finishing at $6.54 billion. This impressive performance counteracted a decline in conventional mobile phone exports, resulting in year-on-year increases of 2.1 percent for October and 8.7 percent for November for mobile phones in general.     Exports to primary trading partners China, the United States, the European Union and Japan posted double-digit growth rates. Exports of semiconductors to China surged 82.8 percent, while outbound shipments of televisions to the United States gained 65.6 percent. Exports of semiconductors to the European Union shot up 81.6 percent.     IT imports climbed 22.2 percent to $75.76 billion. Inbound shipments of mobile phones and computers and related devices increased 37.2 percent and 29.5 percent, respectively. For the month of December, IT exports rose 15.6 percent to $13.05 billion. The movement of key export items also increased: mobile phones (up 21.7 percent), semiconductors (up 23.5 percent) and display panels (up 1.1 percent). Exports to most of Korea’s primary trading partners increased, but the European Union proved to be an exception.     * Released by the Electronics and IT Policy Division date2011-01-07

Foreign Investment Figures for 2010

Foreign direct investment (FDI) pledges rose 13.8 percent year on year to record $13.07 billion, the highest level seen in a decade. Throughout the previous six years, the figure had hovered near the $10 billion to $11 billion range.     Although global FDI flows remained stagnant in 2010, the inflow of foreign capital increased, possibly due to greater trust in the country’s sound economic fundamentals. Notably, investments from the United States and Japan shot up drastically in the second half of the year—2.2 percent and 93.4 percent, respectively—fter a marked downturn in the first half. FDI in the manufacturing sector rose dramatically to $6.54 billion, representing a 75.6 percent year-on-year increase, while service-related investments dropped 18 percent to $6.23 billion. New growth engine sectors accounted for 23.6 percent of all investments; in contrast, the corresponding figure for 2009 was 18.8 percent. FDI through mergers and acquisitions fell 40.4 percent to $2.01 billion.   Percentage of All Investment Amid rising FDI from emerging countries, investments from China jumped 159.2 percent to record $414 million. Ninety percent of this amount came in after the launch of a “China Desk” in May, which assists Chinese investors. Investments from the United States and Japan increased 28.3 percent and 7.7 percent, respectively.   * Released by the Foreign Investment Policy Division   date2011-01-05

Trade Figures for 2010

The Ministry of Knowledge Economy has released its trade figures for 2010. Thanks to robust exports and lower-than-expected international oil prices, Korea’s trade balance hit an all-time high, posting a $41.7 billion surplus. Exports gained 28.6 percent year on year to reach $467.4 billion, the highest level on record. With the exception of September, exports consistently showed more than 20 percent growth throughout the year. Exports to most key trading partners increased during the period between January 1 and December 20; Oceania was a notable exception.     Among 70 major exporters in the World Trade Organization, Korea ranked seventh for the first 10 months of 2010—head of Italy, Belgium and the United Kingdom. (China topped the list, followed by the United States and Germany.) Korea is expected to retain seventh place for all of 2010.     Meanwhile, imports increased 31.8 percent to record $425.7 billion. Inbound shipments of equipment and parts related to key export items increased, consumer confidence improved, and raw material prices rose. All these factors contributed to high import growth rates. Inbound shipments of raw materials went up 34.5 percent, while imports of capital goods and consumer goods rose 28.8 percent and 29.4 percent, respectively. For the month of December, the trade surplus totaled $3.74 billion. Exports climbed 23.1 percent to $44.34 billion, while imports went up 23.3 percent to $40.6 billion. Exports of most of Korea’s 13 major export items showed an upward trend. Notably, outbound shipments of petroleum products and automobile parts grew 34.2 percent and 35.3 percent, respectively, year on year.   * Released by the Export and Import Division date2011-01-04