Edited by the Understanding Korea Project

Vol. 4 I 2013-2014

INFOKOREA_1(4교).indd 1 2014-08-29 오전 9:33:06 A night view of Seoul Floating Island. Located in the Han River, it is the world’s largest cultural space and convention complex on the water.

INFOKOREA AN ESSENTIAL GUIDE FOR EDUCATORS

Published in July 2014 Published by the Academy of Korean Studies Press Edited by the Understanding Korea Project Copy Editor | Colleen W. Mackey, Elizabeth S. Cooper

Address | The Academy of Korean Studies Press, 323 Haogae-ro, Bundang-gu, Seongnam-si, Gyeonggi-do, 463-791, Korea

On the cover: A collage made with Kim Hongdo’s Mudong, Dancing Children with Musicians in the background. Source of the photograph: National Museum of Korea.

All statistics and descriptions in the statistics part refer to Korea Statistical Yearbook 2012 by STATISTICS KOREA (kostat.go.kr).

INFOKOREA_1(4교).indd 2 2014-08-29 오전 9:33:09 Table of Contents

STATISTICS

1 Land and Climate / 2

2 Population and Household & Housing / 4

3 Employment, Labor and Wages / 7

4 Agriculture, Forestry and Fisheries / 10

5 Establishment, Mining and Manufacturing / 12

6 Construction / 14

7 Energy / 16 8 Wholesale·Retail Trade & Service Industry and

Business Enterprise / 18 9 Transportation and Information &

Telecommunications / 20 10 Foreign Trade, Balance of Payments and

©Yonhap News Foreign Exchange / 23

11 Public Finance / 26 12 Money & Financial Institution and

Insurance & Securities / 28

13 Prices and Household Economy / 30 14 National Accounts and Gross

Regional Domestic Product / 33

15 Health and Social Security / 36 ©Yonhap News

16 Environment / 38

17 Education, Culture and Science / 40

FOCUS An Understanding of Korean ©Yonhap News

Middle and High Schools / 42

FEATURE

1 An Invitation to Gugak, Traditional Korean Music / 50 2 A Brief Glance at the Aesthetic World of ©Yonhap News Traditional Korean Music / 59

INFOKOREA_1(4교).indd 1 2014-08-29 오전 9:33:16 STATISTICS

1 Land and Climate

Utilization of Land Sixty-four percent of Korea’s land mass is covered by forests. A Table 1.1 Land Utilization by Land Category (km2, %) national land utilization plan helps the country allocate the land Dry paddy Orchard Road & Total Building Factory properly, and the country is constantly pursuing a balanced devel- field & Forest & pas- railroad area site site opment of national territory. paddy ture site field Figure 1.1 shows the land utilization by category in 2011. 1990 98,730 21,484 65,139 817 1,937 246 1,922 There are seven categories: forest, dry paddy field and paddy (composition) 100.0 21.8 66.0 0.8 2.0 0.2 1.9 field, orchard and pasture, road and railroad site, factory site and 1995 99,286 21,057 65,506 931 2,124 386 2,127 (composition) 100.0 21.2 66.0 0.9 2.1 0.4 2.1 others. The forest, at 64.2 percent, was the highest, followed by 2000 99,461 20,507 65,139 1,088 2,349 514 2,397 dry paddy field and paddy field at 19.5 percent, and road and rail- (composition) 100.0 20.6 65.5 1.1 2.4 0.5 2.4 road sites at 3.0 percent. 2005 99,646 20,108 64,805 1,108 2,553 622 2,685 (composition) 100.0 20.2 65.0 1.1 2.5 0.6 2.7 If examining Korea’s land area by cities and provinces at the 2009 99,897 19,716 64,472 1,129 2,706 720 2,930 end of 2011, Gyeongsangbuk-do had the most land area, at 19.0 (composition) 100.0 19.7 64.5 1.1 2.7 0.7 2.9 percent, Gangwon-do was second at 16.8 percent, and then Jeol- 2010 100,033 19,617 64,504 1,128 2,744 749 2,981 lanam-do at 12.2 percent. In terms of population, Gyeonggi-do (composition) 100.0 19.6 64.5 1.1 2.7 0.7 3.0 2011 100,148 19,565 64,337 1,181 2,785 781 3,039 had the highest share, at 23.7 percent. Seoul was second at 20.1 (composition) 100.0 19.5 64.2 1.2 2.8 0.8 3.0 percent, followed by Busan at 7.0 percent and Gyeongsangnam- Source: Ministry of Land, Transport, and Maritime Affairs do at 6.5 percent. 『Cadastral Statistical Annual Report』, 『Statistical Yearbook of MLTM』

Figure 1.1 Land Utilization by Land Category (2011) Korea’s population density at the end of 2011 was 497 people/km2. Seoul’s population density was 16,567. This is about 186 Building site 2.8% Factory site 0.8% times higher than that of Gangwon-do, which recorded 89. Seoul Orchard & pasture 1.2% Road & railroad site had the highest number of business establishments, at 21.7 per- 3.0% cent. Gyeonggi-do was second with 20.8 percent, and then Busan at 7.6 percent. Others In 2011, Seoul, Incheon, and Gyeonggi-do, all of which be- 8.5% long to the capital area, accounted for 11.8 percent of Korea’s land area. However, they had 49.3 percent of the population and 47.3 percent of the number of business establishments. Dry paddy field & paddy field Forest 19.5% 64.2% City Planning As of 2011, 17.5 percent of the total land area in Korea had been 40000 designated as a city planning district under the “National Land Planning and Utilization Act.” As for how the district area is des- 30000ignated, 72.4 percent is green area, 14.4 percent is residential, 6.1 percent is industrial, and 1.8 percent is commercial. The remaining 5.3 percent is undesignated. 20000 Source: Ministry of Land, Transport, and Maritime Affairs 「Cadastral Statistical Annual Report」, 「Statistical Yearbook of MLTM」 10000

2 INFOKOREA 0

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Autumn in Korea

Table 1.2 Urban Planning (km2, %) 1,622.6 mm, 24 percent higher than the average yearly level. This Propor- is the fi fth highest level since 1973. The number of days with Urban Com- Undes- tion to Residen- Industri- Green planning mercial ignated land tial area al area area more than 30 mm of maximum precipitation per hour was 3.2, area area area area one and a half days more than the average yearly level. The num- 1990 13,901.52 14.1 1,540.65 194.34 492.80 10,868.13 805.60 ber of days with more than 80 mm of precipitation a day was 3.5, 1995 14,790.74 14.9 1,764.46 224.41 654.31 11,265.08 882.48 1.2 days more than the average yearly level. This is the second 2000 15,806.43 15.9 1,897.74 244.80 715.28 11,751.24 1,197.37 highest record since 1973. 2005 17,039.77 17.1 2,121.85 264.04 793.11 12,607.49 1,253.29 2009 17,420.23 17.4 2,402.37 299.47 963.94 12,621.06 1,133.38 2010 17,492.20 17.5 2,494.27 310.55 1,048.62 12,666.46 972.30 2011 17,558.81 17.5 2,536.30 316.99 1,074.44 12,704.23 926.87

1) Compo- Table 1.3 Meteorological Element Values by Years (℃, mm, Days) 100.0 - 14.4 1.8 6.1 72.4 5.3 sition More More Mean Mean than than Source: Ministry of Land, Transport, and Maritime Affairs 『Status of Urban Planning』 Mean maxi- mini- Number Precipi- 30mm of 80mm temper- mum mum of rainy tation precipi- of daily ature temper- temper- days tation precipi- Overall Climate ature ature per hour tation The annual mean temperature in 2011 was 12.4 degrees Celsius, 1973-1980 12.1 17.6 7.3 1,209.6 104.6 1.2 1.7 and the mean maximum temperature was 17.7 degrees Celsius. 1981-1990 12.2 17.8 7.4 1,284.1 104.2 1.6 2.1 These temperatures were lower by 0.1 degrees and 0.4 degrees, 1991-2000 12.5 18.2 7.6 1,280.5 99.3 1.6 2.4 respectively, compared with the average yearly level. The mean 2001-2010 12.8 18.3 8.1 1,358.5 106.9 2.0 2.5 minimum temperature was 7.8 degrees Celsius, which was 0.1 2011 12.4 17.7 7.8 1,622.6 113.0 3.2 3.5 degrees higher than the average. Note: 1) The nationwide value is the average of values observed at 60 observing points. In 2011, the mean annual precipitation for the country was Source: Korea Meteorological Administration

STATISTICS 3

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2 Population and Household & Housing

Scale and Structure of Population projections is a high scenario and the combination of lowest-level Since population drives both production and consumption, a projections is a low scenario. change in the scale and structure of a country’s population can According to the medium scenario the total population of also affect a wide range of different fields in the country. A de- Korea was 50,004,000 in 2012. This is a 0.45 percent growth in cline in the population because of a low birthrate may undermine population. Koreans under the age of 15 accounted for 15.1 per- growth potential. It weakens the labor market in the long term. In cent of the population. Economically active people between the addition, an aging population may cause a decline in labor pro- ages of 15 and 64 made up 73.1 percent of the population, and ductivity because of a reduced economically active population. 11.8 percent of the population was over the age of 65. It can also cause an economic burden from and support for the A society that has a population with 7 percent over the age of elderly. 65 is considered an aging society. If 14 percent of the population To project future population trends, changes in population is over 65, it is an aged society, and at 20 percent, it is a super- factors (birth, death and international movement), have been di- aged society. Korea became an aged society in 2000 when the vided into medium, high, and low levels. percentage of the elderly population over 65 reached 7.2 percent. According to the projection, Korea’s total population, at a The aging index compares the over-65 population to the un- medium level, will peak at 52,160,000 in 2030, and then decrease der-15 population. In 2012, this index increased by 5.1 percent- gradually to 43,960,000 in 2060 (This is the same as the 199240000 age points to 77.9 percent. The dependency ratio, the degree to level). which the 15 to 64 age group supports the elderly population, rose For projection of future population growth (scale), the com- 0.5 percentage points to 16.1 percent. bination of the medium-level population projections is referred30000

to as a medium scenario. The combination of the highest-level Table 2.1 Scale and Structure of Population1)

20000 Popula- Population structure by Aging Depen- Population tion age group (%) index2) dency Year scale (1,000 Figure 2.1 Change in Population Structure1) growth (per 100 ratio3) (per people) Age Age Age (%) 0~14 15~64 over 65 people) 100 people) 2012 10000 1980 38,124 1.57 34.0 62.2 3.8 11.2 6.1 Male Over 80 Female 1990 42,869 0.99 25.6 69.3 5.1 20.0 7.4 75~79 70~74 0 2000 47,008 0.84 21.1 71.7 7.2 34.3 10.1 65~69 2005 48,138 0.21 19.2 71.7 9.1 47.3 12.6 60~64 2010 49,410 0.46 16.1 72.8 11.0 68.4 15.2 55~59 2011 49,779 0.75 15.6 73.0 11.4 72.8 15.6 50~54 2012 50,004 0.45 15.1 73.1 11.8 77.9 16.1 45~49 2013 50,220 0.43 14.7 73.1 12.2 83.3 16.7 40~44 35~39 2014 50,424 0.41 14.3 73.1 12.7 88.7 17.3 30~34 2015 50,617 0.38 13.9 73.0 13.1 94.1 17.9 25~29 2020 51,435 0.28 13.2 71.1 15.7 119.1 22.1 20~24 2030 52,160 0.01 12.6 63.1 24.3 193.0 38.6 15~19 2040 51,091 -0.39 11.2 56.5 32.3 288.6 57.2 10~14 2050 48,121 -0.76 9.9 52.7 37.4 376.1 71.0 5~9 0~4 2060 43,959 -1.00 10.2 49.7 40.1 394.0 80.6 2500 2000 1500 1000 500 0 0 500 1000 1500 2000 2500 Note: 1) Medium-growth scenario (1,000 people) 2) Proportion of population over 65 to those between the ages of 0 and 14 3) Proportion of population over 65 who have to be supported by the population between the Note: 1) Medium level projection ages of 15 and 64 Source: Statistics Korea 『Population Projections』 Source: Statistics Korea 『Population Projections』

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1) 30000 Population Growth Trend and Fertility Table 2.2 Population Growth Trend (People, Per 1,000 people) Another problem is a decline in popula- 1985 1990 1995 2000 2005 2007 2008 2009 2010 2011 tion growth, which is caused by a reduced Live birth 655,489 649,738 715,020 634,501 435,031 493,189 465,892 444,849 470,171 471,26520000 number of births. Crude birth rate 16.1 15.2 15.7 13.3 8.9 10.0 9.4 9.0 9.4 9.4 The total number of births in 2011 Natural growth rate 10.2 9.5 10.3 8.2 3.9 5.1 4.4 4.0 4.3 4.3p) Total fertility rate 1.66 1.57 1.63 1.47 1.08 1.25 1.19 1.15 1.23 1.2410000 was 471,265, an increase of 1,094, com- Note: 1) Including infant deaths pared with the 2010 level. Accordingly, Source: Statistics Korea 『Annual Report on Live Births and Deaths Statistics (Based on Vital Registration)』 the natural population growth rate (crude 0 birth rate/crude death rate) recorded 4.3 Figure 2.2 Fertility Rate people. This was the same as the previ- (%) 20-24 25-29 30-34 35-39 160160 ous year. The rate of fertility, which is 150150 140140 the average number of children a woman 130130 114.4 120120 112.4 has in her lifetime, also increased by 0.01 110110 104.5 101.3 101.5 100.8 people, to 1.24 people in 2011. In 2010, it 100100 91.7 89.4 9090 95.5 8080 was 1.23 people. 83.2 85.6 7070 81.5 80.4 79.7 78.4 Between 2007 and 2011, the age group 6060 5050 35.4 whose fertility rate was the highest was 40 32.6 40 25.6 26.5 27.3 3030 20.6 21.2 18.7 16.5 16.4 women in their early 30s. The fertility rate 2020 18.2 16.5 18.2 17.8 17.6 19.5 1010 for women in that age group recorded 114.4 2004 2005 2006 2007 2008 2009 2010 2011 people in 2011, which was an increase by Source: 『Annual Report on Live Births and Deaths Statistics (Based on Vital Registration)』 2.0 people year on year. The fertility rate of women between 25 and 29 was 78.4 peo- 350000Table 2.3 Status of Fertility (1,000 people, Years of age) ple. This was a decrease of 1.3 people from 300000 2004 2005 2006 2007 2008 2009 2010 2011 250000 Number of fertile women the previous year, to 78.4. Women under 30 13,729 13,670 13,615 13,579 13,532 13,461 13,347 13,215 (15~49) 160 200000 recorded lower fertility rates, while the fer- Women in the most fertile 150 1408,201 8,094 7,991 7,875 7,727 7,570 7,417 7,279 age group (20~39) tility rate of older women increased. 150000 130 Mean age at first marriage120 100000 27.5 27.7 27.8 28.1 28.3 28.7 28.9 29.1 Since 2007, the fertility rate of wom- (female) 110 en 30 to 34 exceeded that of women aged 100 20-2490 20.6 17.8 17.6 19.5 18.2 16.5 16.5 16.4 25 to 29. This indicates that late marriag- 25-2980 104.5 91.7 89.4 95.5 85.6 80.4 79.7 78.4 Fertility rate 70 es and increased economic activity rates 4.5 (%) 30-3460 83.2 81.5 89.4 101.3 101.5 100.8 112.4 114.4 50 caused women to have their first child at 35-3940 18.2 18.7 21.2 25.6 26.5 27.3 32.6 35.4 30 Source: Statistics Korea 『Annual Report on Live Births and Deaths Statistics (Based on Vital Registration)』 a later age. 4.0 20 10 Marriage and Divorce 3.5 Figure 2.3 Marriage and Divorce During 2011, there were 329,087 marriages, an increase of 0.9 (Number) percent from the 2010 level. Among the marriages,3.0 84.3 percent 350,000350000 343,559 329,087 300,000300000 330,634 327,715 326,104 of the men were married for the first time, and 82.8 percent of the 308,598 314,304 309,759 2.5 women were also marrying for the first time. 250,000250000 Marriage Divorce First marriages for both males and females were at 78.6 per- 200,000200000 85 138,932 150,000150000 128,035 cent. Remarriages accounted for 11.5 percent. 124,524 124,072 116,535 123,999 116,858 114,284

The number of divorces in 2011 was 114,284,80 a 2.2 percent 100,000100000 2004 2005 2006 2007 2008 2009 2010 2011 decrease compared with the 2010 level. 75 Source: Statistics Korea 『Annual Report on Marriage and Divorce Statistics』

Table 2.4 Marriage and Divorce 70 4.5 (%) Basic category 2004 2005 2006 2007 2008 2009 2010 2011 65 Number of marriages 308,598 314,304 330,6344.0 343,559 327,715 309,759 326,104 329,087

Year-on-year increase 60 2.0 1.8 5.2 3.9 -4.6 -5.5 5.3 0.9 Composition of first marriage (m) + first marriage (f) 74.9 73.83.5 77.2 77.3 76.1 76.4 78.1 78.6 Composition of remarriage (m) + first marriage (f) 3.9 4.2 4.2 4.3 4.6 4.5 4.3 4.2 Composition of first marriage (m) + remarriage (f) 6.2 6.43.0 5.5 5.7 6.3 6.1 5.6 5.7 Composition of remarriage (m) + remarriage (f) 14.4 14.7 12.5 12.2 12.8 12.8 12.0 11.5 2.5 Number of divorces 138,932 128,035 124,524 124,072 116,535 123,999 116,858 114,284 Year-on-year increase -16.6 -7.8 -2.7 -0.4 -6.1 6.4 -5.8 -2.2 85 Source: Statistics Korea 『Annual Report on Marriage and Divorce Statistics』

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Household Table 2.6 Life Expectancy (Years)

According350000 to the Population and Housing Census of 2010, the Year- 1980 1990 2000 2005 2007 2008 2009 2010 2011 on-year number300000 of households in Korea was 17,339,000. This was a 9.1 increase percent increase from the 2005 Population and Housing Census, 250000 Total 65.7 71.3 76.0 78.6 79.6 80.1 80.6 80.8 81.2 0.4 which recorded 15,887,000 households. However, the average 200000 Male 61.8 67.3 72.3 75.1 76.1 76.5 77.0 77.2 77.7 0.5 number of household members declined by 0.19 people, from 150000 Female 70.0 75.5 79.6 81.9 82.7 83.3 83.8 84.1 84.5 0.4 2.88 in 2005 to 2.69 in 2011. (Female - 100000 8.2 8.2 7.3 6.8 6.6 6.8 6.8 6.9 6.8 -0.1 Male)

Figure 2.4 Average Number of Household Members Source: Statistics Korea 『Life Table』 (People) 4.54.5 4.16 Major Causes of Death and Average Number of Deaths a Day 4.04.0 3.77 The annual number of deaths in 2011 was 257,396, and an aver-

3.40 age of 705 people died each day. 1603.53.5 150 3.12 In 2011, 148,608 people died from five major causes of death 140 1303.03.0 2.88 in Korea: cancer, cerebrovascular diseases, heart disease, deliber- 120 2.69 110 ate self-injury (suicide), and diabetes. Those deaths accounted for 100 2.5 902.5 57.7 percent of the deaths during the year. The crude death rate in 1985 1990 1995 2000 2005 2010 80 2011 was 513.6, an increase by 1.6 people, from 512.0 in 2010. 70 Source: Statistic Korea 『Report on Population and Housing Census』 6085 50 40 Table3080 2.5 General Households (1,000 households, People, %) Table 2.7 Number of Deaths by Five Major Causes of Death (2011) 20 10 Rate of change Crude 75 1985 1990 1995 2000 2005 2010 Number of deaths Average number (2010/2005) Rank- death Cause of death (people) of deaths a day ing 1) rates2) Number Composition (people) 70 (people) of general 9,571 11,355 12,958 14,312 15,887 17,339 9.1 (%) households350000 Total 257,396 100.0 513.6 705 65 Average 300000 Five major causes 148,608 57.7 152.0 407 number of of death 60 4.16 3.77 3.40 3.12 2.88 2.69 -6.6 household250000 members Malignant neo- 1 71,579 27.8 142.8 196 200000 plasm (cancer) Source: Statistic Korea 『Report on Population and Housing Census』 Cerebrovascular 150000 2 25,404 9.9 50.7 70 diseases

100000 3 Heart diseases3) 24,944 9.7 49.8 68 Life Expectancy Deliberate self- 4 15,906 6.2 31.7 44 The life expectancy of children born in 2011 was 81.2 years, injury4) (suicide) which4.5 was 0.4 years longer than the previous year’s level. The 5 Diabetes 10,775 4.2 21.5 30 life expectancy of men was 77.7 years and the life expectancy of Note: 1) The compositions of deaths whose cause can be categorized to total deaths. 2) Number of deaths per 100,000 people women4.0 was 84.5 years. This indicates that women live 6.8 years 3) Heart diseases include ischemic heart disease and other types of cardiac disorders. 4) Deliberate injuries (suicide) per 100,000 people over the age of 5 longer than men. Compared with 2010, the life expectancy of Source: Statistics Korea 『Annual Report on Cause of Death Statistics』 men3.5 and women was extended by 0.5 and 0.4 years, respectively, and, compared with 1980, the life expectancy for men and women 3.0was extended by 15.9 and 14.5 years, respectively, in 2011.

2.5 Figure 2.5 Life Expectancy (years) 84.1 84.5 8585 83.3 83.8 81.9 82.7 79.6 8080 77.7 77.0 77.2 76.1 76.5 75.5 75.1 75 75 72.3 70.0 7070 67.3 Female Male 6565 61.8

6060 1980 1990 2000 2005 2007 2008 2009 2010 2011

Source: Statistics Korea 『Life Table』

6 INFOKOREA

INFOKOREA_1(4교).indd 6 2014-08-29 오전 9:33:19 3 Employment, Labor and Wages

Economic Activity Employed People by Industry Production activity is important to maintain and develop a society. In 2012, the number of employed people by industry was Also important is labor. In addition, an increase in employment 24,681,000, an increase of 1.8 percent year on year. In detail, the would greatly contribute to the improvement of an individual’s number of employed people in the mining and manufacturing in- economic power and stabilize the society dustry increased by 0.3 percent. Social overhead capital and other The number of people over the age of 15 in 2012 was services increased by 2.4 percent. However, the number of people 41,582,000, a 1.3 percent increase from the previous year. The in agriculture, forestry, and fisheries decreased by 0.9 percent. number of the population that was economically active was 25,501,000, an increase of 1.6 percent. The economically inactive Figure 3.1 Employed People by Industry population was at 16,081,000, a 0.8 percent increase. 2008 2012 The participation rate, which refers to the ratio of the eco- Agriculture, nomically active population over 15, was 61.3 percent, a 0.2 per- 7.9% forestry and 6.2% cent increase year on year. The participation rates for men and fisheries 18.1% 16.7% women both increased by 0.2 percent from the previous year. Mining and The number of unemployed people in 2012 decreased by 4.1 manufac- 73.9% turing 77.1% percent year-on year to 820,000, and the unemployment rate also decreased to 3.2 percent, which was down by 0.2 percent from the Social overhead capital and other previous year’s level. service industries

Source: Statistics Korea 『Annual Report on Economically Active Population Survey』 40000 Table 3.1 Economic Activity (1,000 people, %) Table 3.2 Employed People by Industry 1) (1,000 people)

Popu- Unem- Year-on- Eco- Partici- Unem- 2005 2006 2007 2008 2009 2010 2011 2012 lation Economi- ploy- 30000 year Year nomically pation ployed over cally active Male Female ment increase(%) 1) inactive rate people 15 population rate population Total 22,856 23,151 23,433 23,577 23,506 23,829 24,244 24,681 1.8 2005 38,300 23,743 14,577 62.0 74.6 50.1 887 3.7 20000Agriculture, forestry 1,813 1,781 1,723 1,686 1,648 1,566 1,542 1,528 -0.9 and fisheries 2006 38,762 23,978 14,784 61.9 74.1 50.3 827 3.5 Mining and manu- 2007 39,170 24,216 14,954 61.8 74.0 50.2 783 3.2 4,146 4,073 4,031 3,985 3,859 4,049 4,108 4,120 0.3 10000facturing 2008 39,598 24,347 15,251 61.5 73.5 50.0 769 3.2 Manufacturing 4,130 4,057 4,014 3,963 3,836 4,028 4,091 4,105 0.3 2009 40,092 24,394 15,698 60.8 73.1 49.2 889 3.6 Social overhead 2010 40,590 24,748 15,841 61.0 73.0 49.4 920 3.7 capital0 and other 16,897 17,298 17,679 17,906 17,998 18,214 18,595 19,033 2.4 services 2011 41,052 25,099 15,953 61.1 73.1 49.7 855 3.4 Construction 1,813 1,833 1,849 1,812 1,720 1,753 1,751 1,773 1.3 2012 41,582 25,501 16,081 61.3 73.3 49.9 820 3.2 Wholesale and retail Year- trade/hotels 5,804 5,760 5,722 5,675 5,536 5,469 5,492 5,595 1.9 on-year 1.3 1.6 0.8 0.2%p 0.2%p 0.2%p -4.1 -0.2%p and restaurants increase (rate) Electricity, transport, 2,619 2,705 2,773 2,786 2,761 2,834 2,956 2,997 1.4 telecom and finance Note: 1) Excluding soldiers, riot police, public service workers, and prisoners whose jail terms are confirmed Business, personal Source: Statistics Korea 『Annual Report on Economically Active Population Survey』 & public service and 6,661 7,000 7,336 7,633 7,981 8,158 8,396 8,668 3.2 others

Note: 1) Ninth Revision of Standard Industrial Classification Source: Statistics Korea 『Annual Report on Economically Active Population Survey』

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Workers on a production line at an automobile factory

Employed People by Worker Status Employed People by Age Group In 2012, the number of regular employees and independent busi- The number of employed people between the ages of 15 and 19 nessmen increased by 4.1 percent and 2.2 percent, respectively. increased by 1.6 percent; between 40 and 49, 0.2 percent; be- The number of temporary employees recorded no change, and the tween 50 and 59, 5.3 percent; and over the age of 60, 7.7 percent, number of daily workers and unpaid family workers decreased compared with 2011 levels. The number of employed 20 to 29 by 6.8 percent and 0.2 percent, respectively, all compared with year olds decreased by 1.1 percent, and the number of employed 2011 fi ndings. 30 to 39 year olds decreased by 0.5 percent.

Table 3.3 Employed People by Worker Status (1,000 people) Table 3.4 Employed People by Age Group (1,000 people)

Inde- Tem- Unpaid Regular Daily pendent Time Total porary family workers workers business- Year- workers workers 2005 2006 2007 2008 2009 2010 2011 2012 men on-year increase 2004 22,557 7,625 5,082 2,188 6,110 1,553 (%) 2005 22,856 7,917 5,056 2,212 6,172 1,499 Total 22,856 23,151 23,433 23,577 23,506 23,829 24,244 24,681 1.8 2006 23,151 8,204 5,143 2,204 6,135 1,466 15-19 243 209 211 190 178 204 227 231 1.6 2007 23,433 8,620 5,172 2,178 6,049 1,413 20-29 4,207 4,061 3,992 3,894 3,779 3,710 3,652 3,612 -1.1 2008 23,577 9,007 5,079 2,121 5,970 1,401 30-39 6,122 6,136 6,035 6,010 5,837 5,833 5,786 5,756 -0.5 2009 23,506 9,390 5,101 1,963 5,711 1,341 40-49 6,305 6,407 6,484 6,548 6,524 6,553 6,611 6,622 0.2 2010 23,829 10,086 5,068 1,817 5,592 1,266 50-59 3,599 3,835 4,093 4,300 4,498 4,792 5,083 5,353 5.3 2011 24,244 10,661 4,990 1,746 5,594 1,254 Over 60 2,381 2,503 2,618 2,636 2,690 2,737 2,886 3,108 7.7

2012 24,681 11,097 4,988 1,627 5,718 1,251 Source: Statistics Korea 『Annual Report on Economically Active Population Survey』 Year-on-year 1.8 4.1 0.0 -6.8 2.2 -0.2 increase (%)

Source: Statistics Korea 『Annual Report on Economically Active Population Survey』

8 INFOKOREA

INFOKOREA_1(4교).indd 8 2014-08-29 오전 9:33:22 Wage and Hours Worked Table 3.5 Wage and Hours Worked1) 2) (Days, 1,000 won) The average number of days an employee 2004 2005 2006 2007 2008 2009 2010 2011 Year-on-year worked in a month at businesses with fi ve increase or more employees in whole industries, Average monthly days worked 23.7 23.2 22.7 22.3 21.5 21.5 21.5 21.5 0.0 except for agriculture, forestry and fi sh- Total amount of wage 2,255 2,404 2,542 2,716 2,802 2,863 3,047 3,019 -0.9

eries, was 21.5 days in 2011. This is the Note: 1) Regular employees of businesses with fi ve or more employees in entire industries except for agriculture, forestry, and fi sheries same as the 2010 level. The total average 2) The Ninth Revision of Standard Industrial Classifi cation since 2008 Source: Ministry of Employment and Labor monthly wage per regular worker was 3,019,000 won, a 0.9 percent decrease Table 3.6 Coverage by Employment Insurance (Place, People) from 2010. Number of establish- Number of work- Number of unem- ments covered by Year-on-year ers covered by Year-on-year ployment allow- Year-on-year employment insurance increase (%) insurance increase (%) ance received increase (%) Employment Insurance and Unem- 2002 825,531 2.3 7,171,277 3.8 416,041 -2.8 ployment Allowances 2003 845,910 2.5 7,203,347 0.4 502,211 20.7 As of October 2010, the number of busi- 2004 1,002,638 18.5 7,481,618 3.9 707,432 40.9 ness establishments covered by em- 2005 1,148,474 14.5 7,965,597 6.5 812,768 14.9 ployment insurance was 1,408,061, an 2006 1,176,462 2.4 8,436,408 5.9 943,542 16.1 increase of 1.6 percent from 2009. The 2007 1,288,138 9.5 8,941,639 6.0 1,009,180 7.0 number of insured employees saw a 4.9 2008 1,424,330 10.6 9,271,701 3.7 1,162,534 15.2 percent increase from 2009, reaching a 2009 1,385,298 -2.7 9,653,678 4.1 1,528,407 31.5 total of 10,131,058. The number of unem- 2010 1,408,061 1.6 10,131,058 4.9 1,336,439 -12.6 ployment allowance benefi ciaries in 2010 Source: Korea Employment Information Service 『Yearly Statistics of Employment Insurance』

was 1,336,439, which is a 12.6 percent Table 3.7 Industrial Accidents1) decrease from 2009. Number of Number of Worker Injured people accidents Death Physical disability, injury, (1,000 people) (people) workplaces (people) and disease (people) Industrial Accidents (case) 2001 909,461 10,581 80,433 81,434 2,748 78,686 In 2011, 14,362,000 workers who worked 2002 1,002,263 10,571 80,755 81,911 2,605 79,306 at 1,738,196 businesses were covered by 2003 1,006,549 10,599 92,697 94,924 2,923 92,001 industrial accident compensation insur- 2004 1,039,208 10,473 87,039 88,874 2,825 86,049 ance. Among them, there were a total of 2005 1,175,606 12,070 84,161 85,411 2,493 82,918 92,657 accidents that required four or 2006 1,292,696 11,689 88,821 89,910 2,453 87,457 more days of recuperation, a decrease 2007 1,429,885 12,529 89,106 90,147 2,406 87,741 of 5.4 percent from the previous year. 2008 1,594,793 13,490 94,745 95,806 2,422 93,384 The number of injured people decreased 2009 1,560,949 13,885 96,984 97,821 2,181 95,640 by 5.4 percent to 93,292 (2,114 deaths, 2010 1,608,361 14,199 97,923 98,645 2,200 96,445 91,178 physical disabilities, injuries, and 2011 1,738,196 14,362 92,657 93,292 2,114 91,178 diseases). Year-on-year 8.1 1.1 -5.4 -5.4 -3.9 -5.5 increase (%)

Note: 1) Death or accident that required four or more days of recuperation, which is recognized to have resulted from a work-related accident or disease under the Industrial Accident Compensation Insurance Act Source: Ministry of Employment and Labor 『Yearbook of Employment & Labor Statistics』 ©Yonhap News

People crowd a job fair for high school graduates.

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4 Agriculture, Forestry and Fisheries

Farm Population and Cultivated Land Table 4.2 Structure of Farm Household Income (1,000 won, %) Farming households and population have been decreasing every year because of urbanization and industrialization. In 2011, the Year- 1990 2000 2005 2007 2008 2009 2010 2011 on-year number of farm households and population decreased by 1.2 per- increase (%) cent and 3.3 percent year on year, respectively. Farm On the other hand, because of the declining number of farm household 11,026 23,072 30,503 31,967 30,523 30,814 32,121 30,148 -6.1 households, cultivated land area per farm household increased, income Agricultural 6,264 10,897 11,815 10,406 9,654 9,698 10,098 8,753 -13.3 to reach 146.0 a in 2011, which is a 0.2 percent year-on-year in- income crease. Non-farm 2,841 7,432 9,884 11,097 11,353 12,128 12,946 12,949 0.0 income Transfer (Households, People, a (100 m2)) 1,921 4,743 4,078 4,959 5,289 5,481 5,610 5,453 -2.8 Table 4.1 Farm Households income Farm house- Farm popula- Area per Irregular Household size - - 4,725 5,506 4,227 3,508 3,467 2,993 -13.7 holds tion household income 2002 1,280,462 3,590,523 2.80 145.5 Depen- dence on 56.8 47.2 38.7 32.6 31.6 31.5 31.4 29.0 - 2003 1,264,431 3,530,102 2.79 146.0 agriculture 2004 1,240,406 3,414,551 2.75 148.0 Source: Statistics Korea 『Farm Household Economy Survey Report』 2005 1,272,908 3,433,573 2.70 143.3 2006 1,245,083 3,304,173 2.65 144.6 Trend of Agricultural Production 2007 1,231,009 3,274,091 2.66 144.7 In 2011, 4,775,000 tons of food crops were produced, a 1.3 per- 2008 1,212,050 3,186,753 2.63 145.1 cent decrease from the previous year. By crop, rice decreased by 2009 1,194,715 3,117,322 2.61 145.4 1.7 percent, fruit decreased by 1.2 percent, and oilseed crops de- 2010 1,177,318 3,062,956 2.60 145.7 creased by 16.4 percent. Produced vegetables increased by 15.5 2011 1,163,209 2,962,113 2.55 146.0 percent. Year-on-year -1.2 -3.3 -1.9 0.2 increase (%)

Source: Statistics Korea 『Agriculture, Forestry, and Fisheries Census』, 『Agriculture, Forestry, Table 4.3 Trend of Agricultural Production (1,000 tons) Fisheries Research Report』, 『Agricultural Area Statistics』

3) Oilseed Food crops Vegetables Fruits 2) Rice1) crops Structure of Farm Household Income 2004 5,669 5,000 10,062 2,429 47 In 2011, the income for a farm household was 30,148,000 won 2005 5,520 4,768 9,097 2,611 48 per household, a decrease of 6.1 percent, or 32,121,000 won, in 2006 5,300 4,680 9,445 2,499 46 the previous year. Compared with 2010 levels, agricultural in- 2007 5,034 4,408 8,828 2,752 53 come declined 13.3 percent; transfer income decreased by 2.8 2008 5,498 4,843 9,343 2,740 51 percent; and irregular income declined by 13.7 percent. Nonfarm 2009 5,553 4,916 9,353 2,881 51 income maintained a similar level. 2010 4,836 4,295 7,894 2,489 61 Dependence on agriculture, which is a proportion of the ag- 2011 4,775 4,224 9,120 2,458 51 Year-on-year ricultural income of a farm household’s total income, was 29.0 -1.3 -1.7 15.5 -1.2 -16.4 increase (%) percent, or 2.4 percent lower than the 2010 level. Note: 1) Polished crops 2) Sesame, perilla seeds, peanuts 3) Fruit vegetables, leaf vegetables, root vegetables, condiment vegetables Source: Statistics Korea 『Crop Production Statistics』

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Harvesting with a combine Fishing boats

In 2011, the cultivation area for food crops was 58.7 percent tion decreased by 7.0 percent from the previous year, to 159,000. of the total cultivation area. Vegetables took up 12.6 percent; fruit In 2011, the income of fi shery households increased by 8.2 per- was 8.6 percent; greenhouse crops were 5.2 percent and oilseed/ cent from the previous year to reach 38,623,000 won. medicinal crops was 4.4 percent. While the cultivation area for vegetables and greenhouse Table 4.5 Forest Land Area and Growing Stock1) (1,000 ha, 1,000 m3, %) crops increased by 10.2 percent and 2.1 percent respectively, the Forest land area Growing stock area for food crops declined by 3.5 percent; fruit by 1.2 percent, Non- Growing National Composi- Composi- Total and oilseed/medicinal crops decreased by 7.6 percent. Total national stock per forest tion tion (1,000 m3) forest hectare (m3) Forest Land Area and Growing Stock 2002 6,412 1,448 22.6 4,964 77.4 448,456 69.9 In 2010, Korea’s forest land area was 6,369,000 hectares, and by 2003 6,406 1,457 22.7 4,949 77.3 468,168 73.1 composition, non-national and national forest took up 75.8 percent 2004 6,400 1,470 23.0 4,930 77.0 489,061 76.4 2005 and 24.2 percent, respectively. Growing stock per hectare was on a 6,394 1,484 23.2 4,910 76.8 506,377 79.2 2006 6,389 1,497 23.4 4,892 76.6 525,832 82.3 consistent increase year after year and recorded 125.6 cubic meters 2007 6,382 1,509 23.6 4,873 76.4 624,398 97.8 in 2010, an increase of 14.8 percent from the 2009 level. 2008 6,375 1,518 23.8 4,857 76.2 659,120 103.4 Number of Fishery Households and 2009 6,370 1,530 24.0 4,840 76.0 696,828 109.4 Fishery Household Income 2010 6,369 1,543 24.2 4,825 75.8 800,025 125.6 Note: 1) 2015 Forest Basic Statistics will be released, according to the fi ve-year cycle of national The number of fi shery households in 2011 was 63,000, decreas- forest inventory survey. ing by 4.5 percent year on year, and the fi shery household popula- Source: Korea Forest Service 『Statistical Yearbook of Forestry』

Table 4.6 Major Indicators of Fishery Household

Table 4.4 Cultivation Area by Crop (1,000 ha, %) Fishery Fishery Fishery Fishery Fishery Fishery Depen- household workers house- workers household income dency on Veg- Green- Oilseed/ popula- per house- Food 2) holds (1,000 income (1,000 fi shery Total eta- Fruit house medicinal Others tion (1,000 hold (1,000 crops Rice 1) (1,000) people) (1,000 won) won) (%) bles crops crops people) people) 2005 1,921.0 1,231.8 979.7 239.6 149.8 100.9 76.8 122.2 2003 73 212 125 1.7 23,916 10,741 44.9 2006 1,860.0 1,178.5 955.2 233.9 146.8 98.9 75.7 126.3 2004 73 210 122 1.7 26,159 11,959 45.7 2007 1,855.9 1,161.1 950.3 222.7 148.4 94.5 79.9 149.4 2005 80 221 131 1.6 28,028 11,950 42.6 2008 1,834.2 1,143.5 935.8 222.9 149.4 95.5 75.7 147.3 2006 77 212 128 1.7 30,006 11,603 38.7 2009 1,873.5 1,125.0 924.5 216.2 150.9 97.3 85.9 198.2 2007 74 202 123 1.7 30,668 11,975 39.1 2010 1,819.8 1,092.8 892.1 206.1 156.2 91.5 85.9 187.2 2008 71 192 119 1.7 31,176 13,801 44.3 2011 1,796.6 1,054.3 853.8 227.1 154.4 93.4 79.4 188.1 2009 69 184 116 1.7 33,945 16,220 47.8 Compo- 100.0 58.7 47.5 12.6 8.6 5.2 4.4 10.5 2010 66 171 107 1.6 35,696 16,607 46.5 sition 2011 63 159 104 1.6 38,623 20,432 52.9 Year- on-year -1.3 -3.5 -4.3 10.2 -1.2 2.1 -7.6 0.5 Year- increase on-year -4.5 -7.0 -2.8 0.0 8.2 23.0 - increase Note: 1) Food crops, potatoes, vegetables, fruit, fl owers, etc., that are cultivated in greenhouses are (%) included in the category of cultivation area for greenhouse crops. 2) Mulberry plantation, other catchment areas, other crops Source: Statistics Korea 『Census of Agriculture, Forestry and Fisheries』, 『Agriculture, For- Source: Statistics Korea 『Agricultural Area Statistics』 estry and Fisheries Research Report』, 『Statistics of Fishery Household Economy』

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5 Establishment, Mining and Manufacturing

40000 Mining and Manufacturing Figure 5.1 Number of Establishments by Employee (2011) In 2011, the number of mining and manufacturing establishments (Each) 32,311 with 10 or more employees was 63,406, a 1 percent increase from 3000085 2010. The number of employees at those establishments, as of the 80 21,210 end of December 2011, was 2,705,918, an increase of 2.2 percent 20000 from the 2010 level. 75

Annual wages and salaries paid to those employees recorded 70 10000 94,373 billion won, increasing 7.6 percent from 2010. The value 5,939 65 of shipments increased by 12.4 percent, from 2010 to 1,494,210 2,622 686 325 313 billion won. 060 10~19 20~49 50~99 100~199 200~299 300~499 over 500 (people) Source: Statistics Korea 『Report on Mining and Manufacturing Survey』 Table 5.1 Mining and Manufacturing1)

Number of Wages & Value of Number of Industry Year workers salaries2) shipments Table 5.2 Number of Establishments by Employee1) (%) establishments (people) (billion won) (billion won) 2008 2009 2010 2011 2008 58,823 2,466,716 75,396 1,115,798 By em- Number Number Number Number Com- Com- Com- Com- 2009 58,377 2,465,265 76,503 1,125,813 ployee of es- of es- of es- of es- Mining posi- posi- posi- posi- size tablish- tablish- tablish- tablish- and 2010 62,751 2,647,948 87,677 1,328,896 tion tion tion tion Manufac- ments ments ments ments 2011 63,406 2,705,918 94,373 1,494,210 turing Total 58,823 100.0 58,377 100.0 62,751 100.0 63,406 100.0 Year-on-year 1.0 2.2 7.6 12.4 10~19 31,302 53.2 30,453 52.2 32,118 51.2 32,311 51.0 increase (%) 20~49 2008 58,459 2,454,263 75,004 1,113,309 18,731 31.8 19,049 32.6 20,975 33.4 21,210 33.5 50~99 2009 57,996 2,452,880 76,093 1,122,987 5,242 8.9 5,270 9.0 5,834 9.3 5,939 9.4 100~199 Manufac- 2010 62,376 2,636,177 87,267 1,326,114 2,303 3.9 2,378 4.1 2,569 4.1 2,622 4.1 turing 200~299 2011 63,047 2,694,782 93,966 1,491,351 619 1.1 623 1.1 631 1.0 686 1.1 300~499 Year-on-year 334 0.6 313 0.5 318 0.5 325 0.5 1.1 2.2 7.7 12.5 increase (%) 500+ 292 0.5 291 0.5 306 0.5 313 0.5

Note:160 1) Ninth Revision of Korea Standard Industrial Classification Note: 1) Ninth Revision of Korea Standard Industrial Classification, 10 or more workers 150 2) Excluding retirement allowance. Remuneration for 2010 excludes remuneration for Source: Statistics Korea 『Report on Mining and Manufacturing Survey』 140seconded workers. Source:130 Statistics Korea 『Report on Mining and Manufacturing Survey』 120 110 Number100 of Establishments by Employee Size Manufacturing by Structure of Industry 90 Looking80 into the number of establishments with 10 or more em- When looking at the structure of industry in manufacturing in 70 ployees60 in the mining and manufacturing sector in 2011 by the 2011, the number of heavy and chemical industry establishments 50 size 40of the workforce, there were 32,311 establishments with 10 was 42,289, an increase of 11.1 percent from the 2009 level, and 30 to 1920 employees; 21,210 establishments with 20 to 49 employees; the proportion of heavy and chemical industry establishments 5,93910 establishments with 50 to 99 employees; 2,622 establish- was 67.1 percent, an increase of 1.5 percent from 65.6 percent ments with 100 to 199 employees; 686 establishments with 200 to in 2009. 299 employees; 325 establishments with 300 to 499 employees; Meanwhile, the number of light industry establishments was and 313350000 establishments with 500 or more employees. 2,758, a 4.1 percent increase from 2009, and the proportion of

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10000light industry establishments was 32.9 percent, a decrease of 1.5 Shipbuilding Performance percent160 from 34.4 percent in 2009. Ship orders in 2011 were 21,047,000 G/T, an 11.3 percent in- 150 140 crease from 18,904,000 G/T, in 2010. 1300 Figure120 5.2 Manufacturing by Structure of Industry (2011) The year 2011 recorded 29,864,000 G/T, ship completions, 110 100Number of Value of an increase of 13.1 percent from 26,397,000 G/T, in 2010, while establishments90 shipments Added value 80 the ship order book, as of the end of 2011, recorded 71,760,000 70 G/T, an 11.1 percent decrease from 80,675,000 G/T, in 2010. 60 13.3% 14.9% 50 40 32.9% 67.1%30 67.1% 67.1% 20 10 Figure 5.3 Shipbuilding Performance

(10,000 G/T) 4,999.0 5,000 Ship orders Heavy and chemical industry Light industry 4,500 350000 Ship completions 4,000 Source: Statistics Korea 『Report on Mining and Manufacturing Survey』 3,365.6 3,377.5 300000 3,500 2,986.4 3,000 250000 2,573.5 2,639.7 2,500 1,927.9 2,104.7 200000 1)2) Table 5.3 Manufacturing by Structure of Industry (Billion won, %) 2,000 2,311.9 2,480.3 1,890.4 150000 1,500 1,895.5 Number 1,735.5 1,778.3 Value of 1,514.3 of es- Added 1,000 100000Structure ship- 372.5 tablish- Compo- Compo- value Compo- ments 0 ments sition sition sition 2004 2005 2006 2007 2008 2009 2010 2011 160 150 Manufacturing 58,459 100.0 1,113,309 100.0 367,630 100.0 Source: 『Annual Report on Live Births and Deaths Statistics (Based on Vital Registration)』 140 130 4.5Light industry 20,084 34.4 156,538 14.1 60,462 16.4 120 2008 110 Heavy and chemical 38,375 65.6 956,771 85.9 307,168 83.6 100 Table 5.4 Shipbuilding Performance (10,000 G/T) 90 4.0industry 80 Manufacturing 57,996 100.0 1,122,987 100.0 374,501 100.0 70 60 3.5 Year- Light industry 19,947 34.4 164,720 14.7 62,265 16.6 2004 2005 2006 2007 2008 2009 2010 2011 50 2009 on-year 40 Heavy and increase 30 3.0chemical 38,049 65.6 958,267 85.3 312,236 83.4 (%) 20 industry Ship 10 2,573.5 1,927.9 3,365.6 4,999.0 3,377.5 372.5 1,890.4 2,104.7 11.3 Manufacturing 63,047 100.0 1,491,351 100.0 480,203 100.0 orders 2.5 Light industry 20,758 32.9 197,874 13.3 71,364 14.9 Ship 2011 comple- 1,514.3 1,735.5 1,778.3 1,895.5 2,311.9 2,480.3 2,639.7 2,986.4 13.1 Heavy and tions 350000 85chemical 42,289 67.1 1,293,477 86.7 408,839 85.1 industry Ship 300000 80 order 5,508.2 5,686.0 7,303.1 10,334.9 11,766.9 9,626.7 8,067.5 7,176.0 -11.1 Note: 1) Ninth Revision of Korea Standard Industrial Classifi cation, with 10 or more employees book 250000 2) 2010 data was not counted for the Economy Census conducted during the year. Source: Statistics75 Korea 『Report on Mining and Manufacturing Survey』 Source: The Korea Shipbuilders’ Association 『Shipbuilding Yearbook』 200000

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75 A plant that produces smartphone displays A shipbuilding yard: South Korea ranks second in the world in

70 terms of the shipbuilding volume.

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6 Construction

Construction Permit Area Table 6.2 Housing Construction and Investment (Dwelling, %) Number of Ratio of The total land area of construction permit, which is a leading in- House (including Apart- Multi- constructed housing multi-household) ment unit2) dicator of the construction business, was 137,870,000 m2 in 2011, houses1) investment an increase of 9.9 percent year on year. The area for commercial 1995 619,057 55,710 497,273 66,074 8.2 use was 34,000,000 m2, an increase of 27.7 percent from the pre- 2000 433,488 34,777 331,579 67,132 4.6 vious year. The area for residential use was 56,560,000 m2, a 9.9 2005 463,641 27,799 415,511 20,331 5.3 percent increase year on year. Industrial use was 1,650,000 m2, a 2006 469,503 37,711 412,891 18,901 4.9 6.5 percent increase year-on-year. 2007 555,792 51,450 476,462 27,880 4.6 2008 371,285 53,667 263,153 54,465 4.1

Table 6.1 Land Area of Construction Permit (1,000 m2) 2009 381,787 54,665 297,183 29,939 4.0 2010 386,542 62,173 276,989 47,380 3.3 Cultural, Total Residen- Commer- Industrial educational, Others area tial cial 2011 549,594 73,097 356,762 119,735 2.7 and social Year-on-year 42.2 17.6 28.8 152.7 -0.6%p 1985 38,215 20,606 9,497 4,140 2,918 1,054 increase (%)

1990 116,419 70,927 26,408 10,569 5,106 3,408 Note: 1) Based on construction permits and approval of construction plans 2) Includes semi-detached 1995 117,327 62,614 28,549 13,726 6,281 6,157 Source: Ministry of Land, Transport and Maritime Affairs, Bank of Korea 2000 81,055 41,283 17,885 11,645 5,126 4,121 2002 138,734 57,319 49,862 15,365 7,489 8,697 2004 117,461 50,099 30,966 14,740 8,860 12,796 2005 111,506 50,281 23,368 13,576 9,862 14,419 2006 133,270 53,862 32,568 16,812 11,340 18,687 2007 150,953 65,212 35,740 16,352 12,268 21,387 2008 120,658 38,462 33,265 18,504 13,588 16,839 2009 105,137 41,917 24,399 11,542 11,262 16,017 2010 125,447 51,464 26,618 15,486 12,062 19,820 2011 137,868 56,557 34,002 16,499 10,452 20,358 Year-on-year 9.9 9.9 27.7 6.5 -13.3 2.7 increase (%)

Source: Ministry of Land, Transport and Maritime Affairs

Housing Construction and Investment In 2011, 549,594 houses were constructed; this was a 42.2 percent increase from 2010. By type of house, construction of multi- unit houses increased by 152.7 percent; apartments increased by 28.8 percent; and houses increased by 17.6 percent. The ratio of house investments, which refers to the proportion of housing investment to real GDP, was 2.7 percent in 2011, decreasing by 0.6 ©Yonhap News percentage points from the 2010 level.

An apartment complex construction site

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The Petronas300000 Twin Towers in Kuala Lumpur, Malaysia, was built by South Korean and Japanese businesses.

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30,000 Table 6.33.0 Value of Overseas Construction Orders Received by Site of Construction (Billion won, %) 18,720 2,116 2.5 25,000 1,422 2000 2005 2006 2007 20081) 2009 2010 2011 Com- posi- 85 tion 20,000 10,916

Total 4,730 9,322 11,503 28,249 48,902 51,660 50,027 59,062 100 37,650 80 32,492 32,680 Middle 529 5,927 4,303 13,234 21,126 37,650 32,492 32,680 55.3 15,000 East 75 Asia 2,468 1,853 3,807 10,916 18,720 7,933 13,323 17,772 30.1 21,126 10,000 Europe 70 11 190 322 1,422 739 361 138 184 0.3 2,022 322 13,234 Africa 209 843 2,022 2,116 4,067 1,747 976 1,077 1.8 65 3,807 Oceania 622 1 0 0 1 2,968 58 38 0.1 5,000

America 60 42 277 884 332 3,811 968 3,016 7,304 12.4 4,303

Others 848 232 165 229 438 33 25 8 0.0 0 2006 2007 2008 2009 2010 2011 Note: 1) From 2008, the ninth revision of Korea Standard Industrial Classifi cation was applied. Source: Statistics Korea 『Report on Construction Survey』 Source: Statistics Korea 『Report on Construction Survey』

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7 Energy

Energy Consumption and Dependence on Imported Energy Since 2011, the Korean government has consistently pursued energy-saving policies, such as expanding the proportion of low- energy industries and deploying energy-effi cient equipment. As a result, while energy consumption has recorded a stable increase, primary energy consumption in 2011 recorded 276 million toe (tonnage of oil equivalent), increasing by 12 million toe from the previous year. The fi nal energy consumption increased by 10 million toe from 2010, to reach 206 million toe in 2011. Per-capita energy consumption in 2011 was 5.54 toe, an increase of 0.2 toe from 2010. Dependence on imported energy in 2011 was 96.4 percent, a 0.1 percent decline from 2010.

Table 7.1 Energy Consumption and Dependence on Imported Energy

Energy consumption (million toe) Dependence on Per-capita energy Primary imported energy Final energy consumption (toe) energy (%) 1990 93 75 2.17 87.9 1995 150 122 3.34 96.8 2000 193 150 4.10 97.2 2003 215 164 4.49 96.9 2004 220 166 4.58 96.7 2005 229 171 4.75 96.6 2006 233 174 4.82 96.5 20071) 236 181 4.87 96.5 2008 241 183 4.92 96.4 2009 243 182 4.95 96.4 2010 264 196 5.34 96.5 2011 276 206 5.54 96.4 Year-on-year 12 10 0.2 -0.1%p increase

Note: 1) From 2007, based on revised Calorifi c Value Source: Korea Energy Institute 『Yearbook of Energy Statistics』

Oil Imports and Unit Cost of Imports ©Yonhap News In 2011, Korea imported 927 million barrels of oil, which was a 6.3 percent increase from the previous year. The value of oil imports in 2011 was $98,572 million, which was a 46.5 percent The hydroelectric power plant at Soyanggang Dam year-on-year increase.

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INFOKOREA_1(4교).indd 16 2014-08-29 오전 9:33:32 The annual average unit cost of oil Table 7.2 Oil Imports and Unit Price of Imports

import increased by 37.9 percent, from 1990 2000 2005 2006 2007 2008 2009 2010 2011 $77.12 per barrel in 2010, to $106.33 in Oil import 308.4 893.9 843.2 888.8 872.5 864.9 835.1 872.4 927.0 2011. (million barrels) Year-on-year increase (%) 4.0 2.3 2.1 5.4 -1.8 -0.9 -3.4 4.5 6.3 Value of oil import 6,164 24,174 41,266 54,289 59,207 82,870 49,517 67,283 98,572 Consumption Structure by Energy (FOB, million dollars) Source Year-on-year increase (%) 33.4 71.5 44.9 31.6 9.1 40.0 -40.2 35.9 46.5 When looking at the component of en- Unit price of imported oil 19.99 27.04 48.94 61.08 67.86 95.82 59.30 77.12 106.33 ergy consumption structure by source in (dollars/barrel) 2011, petroleum took up the largest share Year-on-year increase (%) 26.5 67.6 41.9 24.8 11.1 41.2 -38.1 30.1 37.9 at 38.1 percent. Coal was at 30.3 percent, Source: Korea Energy Institute 『Yearbook of Energy Statistics』 liquefi ed natural gas (LNG) was 16.8 percent, and nuclear energy was 11.7 percent. Table 7.3 Energy Consumption Structure by Source (%) Compared to 2010, the proportion of coal Coal Petroleum LNG Hydro Nuclear New and renewable increased by 1.1 percent; LNG by 0.5 per- 1995 18.7 62.5 6.1 0.9 11.1 0.7 cent; hydro-electric energy by 0.1 percent, 2000 22.2 52.0 9.8 0.7 14.1 1.1 and new and renewable energy increased 2005 24.0 44.4 13.3 0.6 16.1 1.7 by 0.1 percent. The proportion of petro- 2006 24.3 43.6 13.7 0.6 15.9 1.9 leum and nuclear energy decreased by 1.4 20071) 25.2 44.6 14.7 0.5 13.0 2.0 percentage points and 0.4 percent, respec- 2008 27.4 41.6 14.8 0.5 13.5 2.2 tively. 2009 28.2 42.1 13.9 0.5 13.1 2.3 2010 29.2 39.5 16.3 0.5 12.1 2.3 Power Sales by Use 2011 30.3 38.1 16.8 0.6 11.7 2.4 The amount of power sold in 2011 was Year-on-year increase (%p) 1.1 -1.4 0.5 0.1 -0.4 0.1 455,070 gigawatts per hour (Gwh), which Note: 1) From 2007, based on revised Calorifi c Value Source: Korea Energy Institute 『Yearbook of Energy Statistics』 was a 4.8 percent increase from the previous year. By use, the amount of power sold for Figure 7.1 Power Sales mining was 1,928 Gwh, a 14.6 percent (Gwh) increase from 2010. The amount sold for 500,000 the manufacturing industry was 229,701

Gwh, an increase of 8.6 percent. For the 450,000 455,070 forestry and fi sheries industry, the amount 434,160 of power sold was 10,575 Gwh, an in- 400,000 394,475 385,070 crease of 5.3 percent. For the public sec- 368,605

tor, the amount sold was 20,539 Gwh, a 350,000 348,719 3.4 percent increase. 332,413

300,000 2005 2006 2007 2008 2009 2010 2011

Source: Korea Electric Power Co. 『Statistics of Electric Power in Korea』 40000 Table 7.4 Power Sales by Use (Gigawatts per hour)

Agriculture, forestry Total Residential Public Service Mining Manufacturing 30000 and fi shery 2005 332,413 50,873 13,741 100,987 7,007 1,317 158,489 20000 2006 348,719 52,522 14,589 106,948 7,296 1,393 165,972 2007 368,605 54,174 15,579 112,601 7,795 1,484 176,973 2008 385,070 56,228 16,577 117,635 8,389 1,446 184,795 10000 2009 394,475 57,595 17,932 121,203 9,145 1,350 187,249

©Yonhap News 2010 434,160 61,194 19,872 129,923 10,042 1,683 211,447 0 2011 455,070 61,564 20,539 130,762 10,575 1,928 229,701 Year-on-year 4.8 0.6 3.4 0.6 5.3 14.6 8.6 increase (%) An oil tanker: South Korea is one of the Source: Korea Electric Power Co. 『Statistics of Electric Power in Korea』 main importers of oil.

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8 Wholesale·Retail Trade & Service Industry and Business Enterprise

Wholesale · Retail Trade, and Hotels Table 8.1 Wholesale · Retail Trade, and Hotels and Restaurants and Restaurants Wholesale and Retail Hotels and Restaurants The number of wholesale retail busi- Number of Number of Sales Number of Number of Sales establishments (1,000) workers (1,000) (billion won) establishments (1,000) workers (1,000) (billion won) nesses in 2011 was 904,000, a 4.9 percent 2003 894 2,539 431,604 648 1,739 50,582 increase from 2009. The number of em- 2004 878 2,481 447,376 644 1,701 54,953 ployees in those industries was 2,680,000, 20051) 828 2,366 497,781 575 1,586 53,353 a 2.1 percent increase from 2009. The an- 20062) 865 2,482 546,815 622 1,672 61,888 nual sales were 906,210 billion won, an 20073) 868 2,516 586,418 623 1,717 67,791 increase of 36.0 percent from 2009. 2008 860 2,545 653,349 624 1,728 73,371 The number of hotels and restau- 2009 862 2,626 666,412 628 1,758 79,308 rants in 2011 was 655,000, an increase 2011 904 2,680 906,210 655 1,840 84,069 of 4.3 percent from 2009. The number of Year-on-year 4.9 2.1 36.0 4.3 4.7 6.0 employees was 1,840,000, a 4.7 percent increase (%) increase from 2009, and the annual sales Note: 1) The 2005 data is from the service industry census (total inspection). 2) The eighth industrial classifi cation in 2006 was linked to the ninth industrial classifi cation. were 8,469 billion won, a 6.0 percent in- 3) From 2007, the Ninth Revision of Korea Standard Industrial Classifi cation (Dec. 28, 2007) was applied. Source: Statistics Korea 『Report on the Wholesale and Retail Trade Survey』 crease from 2009. Table 8.2 E-Commerce (Billion won, %) E-Commerce 2005 2006 2007 2008 2009 2010 2011 Year-on-year increase The total volume of trade in e-commerce Total scale 358,450 413,584 516,514 630,087 672,478 824,392 999,582 21.3 in 2011 was 999,582 billion won, an in- B2B 319,202 366,191 464,456 560,255 592,965 747,090 912,883 22.2 crease of 21.3 percent from the previous B2G 29,036 34,435 36,801 52,266 59,455 52,772 58,378 10.6 year. B2C 7,921 9,132 10,226 11,359 12,045 16,005 18,533 15.8 If examining the value of trade Others 2,292 3,826 5,032 6,207 8,012 8,524 9,788 14.8

by agent of trade in 2011, the value of Source: Statistics Korea business-to-business (B2B) trade was 912,883 billion won, an increase of 22.2 percent from the previous year. The value of business-to-government (B2G) trade was 58,378 billion won, a 10.6 percent increase year on year. The value of business-to-consumer (B2C) trade was 18,533 billion won, an increase of 15.8 percent from the previous year. ©Yonhap News

A man purchases a drink by using his smartphone at a subway station.

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INFOKOREA_1(4교).indd 18 2014-08-29 오전 9:33:35 Volume of Trade through Online Shopping Malls Table 8.4 Financial Statement Analysis1) 2)

The total value of trade through online shopping malls in 2011 Total borrow- Operat- Income be- Stockhold- Rate of Debt ings and bonds ing fore income ers’ equity to sales was 29,720 billion won, a 15.4 percent increase from the previous ratio payable to income taxes to total assets growth year. By product line, clothes/fashion and related goods recorded total assets to sales sales 4,869 billion won; travel and reservation services recorded 4,660 2005 110.9 47.4 24.1 5.9 6.3 4.3 billion won; and home electric appliance/electronic equipment/ 2006 105.3 48.7 23.1 5.2 5.6 6.0 telecommunication equipment recorded 3,238 billion won. These 2007 114.9 46.5 26.3 5.4 5.6 9.5 were three product lines with the biggest trade volume in the or- 2008 129.8 43.5 28.3 5.0 2.9 18.6 2009 158.7 38.7 32.8 4.6 3.9 - der named, while food and beverages recorded a high year-on- 2010 150.1 40.0 32.2 5.3 4.9 15.3 year increase at 30.5 percent. 2011 152.7 39.6 32.2 4.5 3.7 12.2 Year-on-year Table 8.3 Volume of Trade through Online Shopping Malls by Product Line1) 2.6 -0.4 0.0 -0.8 -1.2 -3.1 increase (%p) (Billion won, %) Note: 1) As of Dec. 31, 2011 2) From 2009, data are from total inspection. Source: Bank of Korea 『Financial Statement Analysis』 2006 2007 2008 2009 2010 2011 Com- Year- posi- on-year tion increase Newly Established Corporations Total 13,460 15,766 18,146 20,643 25,203 29,072 100 15.4 Home electric The number of corporations newly established in 2011 was appliance/ 65,110, an increase of 8.0 percent (4,798) from the previous year. eletronic 2,011 2,326 2,466 2683 3,117 3,238 11.1 3.9 equipment/ This set the highest record since 2000 when the compilation of telecommunication equipment newly established corporation data began. Travel arrange- By industry, year on year, the number of newly established ment and res- 2,019 2,416 2,857 2670 3,445 4,066 14 18 ervation services corporations in the agriculture, forestry, fishing and mining in- Clothes/fashion dustry increased by 64.2 percent. In the electricity, gas, steam and and related 2,372 2,714 2,996 3524 4,248 4,869 16.7 14.6 water supply industry, there was a 27.8 percent increase. Manu- goods Household facturing saw a 5.0 percent increase, and the number of service goods·motor 1,300 1,485 1,710 1959 2,572 3044 10.5 18.3 corporations increased by 9.4 percent. The number of construc- vehicle parts and accessories tion industry corporations decreased by 2.9 percent. Computer and computer-relat- 1,261 1,542 1,636 2,035 2,388 2,808 10 18 Figure 8.1 Number of Newly Established Corporations ed appliance (Each) 40000Cosmetics 699 793 917 1,104 1,414 1,605 6 14 80,000 Food and 625 731 1,009 1,352 1,642 2,142 7 30.5 beverages 70,000 Books 628 744 875 1,030 1,169 1,274 4.4 9 60,000 65,110 30000 60,312 56,830 Others 665 712 951 915 1,179 1,663 5.7 41.1 50,000 52,587 53,483 50,512 50,855 Goods/toys 40,000 20000for infants and 652 868 1,027 1,247 1,512 1,539 5.3 1.8 children 30,000

Note: 1) Products lines with a small share in trade are not included in the list. 0 10000Source: Statistics Korea 2005 2006 2007 2008 2009 2010 2011 Source: Small and Medium Business Administration Financial Statement Analysis During0 2011, the growth, profitability and stability of domestic Table 8.5 Number of Newly Established Corporations by Industry1) Agriculture, corporations downgraded somewhat compared to the previous Manu- Electricity, Con- forestry, Ser- Oth- Total factur- gas, steam and struc- fishing and vices ers year. First, the growth rate of sales declined from 15.3 percent in ing water supply tion mining 2010 to 12.2 percent in 2011, as recovery of the global economy 2003 52,739 365 12,445 548 7,979 31,283 119 slowed down. In terms of profitability, because of rising com- 2004 48,585 528 11,078 582 6541 29,730 126 modity prices, operating income to sales in 2011 went down to 2005 52,587 356 9,435 1,029 7,718 34,025 24 4.5 percent, a decrease of 0.8 percent from 2010 (5.3 percent). 2006 50,512 465 8,548 916 6,664 33,910 9 Because of degradation of an invisible balance, income before 2007 53,483 435 10,396 869 7,330 34,424 29 income taxes to sales recorded 3.7 percent, a 1.2 percent decrease 2008 50,855 749 10,128 738 6,001 33,232 7 from the previous year. 2009 56,830 1,087 14,047 373 6,978 34,345 – In financial structure, the debt ratio increased by a narrow 2010 60,312 1,077 14,818 234 6,790 37,393 – margin (2.6 percent) from 150.1 percent in 2010 to 152.7 percent 2011 65,110 1,768 15,557 299 6,593 40,893 – Year-on-year in 2011. Total borrowings and bonds payable to total assets re- 8.0 64.2 5.0 27.8 -2.9 9.4 – increase (%) mained at 32.2 percent. This was the same level seen at the end Note: 1) From March 2008, the ninth revision of the Korea Standard Industrial Classification was applied. of 2010. Source: Small and Medium Business Administration

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9 Transportation and Information & Telecommunications

Number of Registered Cars Table 9.1 Number of Registered Cars (1,000 cars) As of the end of 2011, the number of cars 2000 2005 2006 2007 2008 2009 2010 2011 registered in Korea was 18,437,000, an Total 12,059 15,397 15,895 16,428 16,794 17,325 17,941 18,437 increase of 2.8 percent from the previous Car 8,084 11,122 11,607 12,100 12,484 13,024 13,632 14,136 year. The number of passenger cars was Private 7,798 10,759 11,219 11,674 12,026 12,552 13,125 13,602 Bus 1,427 1,125 1,106 1,105 1,097 1,081 1,050 1,015 14,136,000, which accounted for 76.7 Freight 2,511 3,102 3,133 3,171 3,160 3,167 3,204 3,226 percent in total cars in Korea, and among Special 37 48 49 52 53 54 56 59 them, the number of private cars was Number of private passenger cars 5.4 6.7 6.9 7.1 7.2 7.4 7.6 7.7 13,602,000, showing that, on average, 10 per 10 households1) households had 7.7 cars. Note: 1) Calculated based on “Future Household Projections” Source: Statistics Korea, Ministry of Land, Transport and Maritime Affairs 『Statistical Yearbook of MLTM』 Domestic Traffi c by Table 9.2 Domestic Traffi c by Type of Transportation and Share Rate Type of Transportation Share rate (%) Share rate (%) In 2011, passenger traffi c carried 13,420 Passen- Freight ger (million Rail- Sub- Ship- Avia- (1,000 Rail- Ship- Avia- Road Road million people, a 3.1 percent increase people) road way ping tion tons) way ping tion year on year, while freight traffi c recorded 1995 13,803 5.7 12.2 81.8 0.1 0.2 595,272 9.7 68.6 21.7 0.1 784,360,000 tons, a 0.8 percent increase 2000 13,515 6.2 16.5 77.0 0.1 0.2 676,315 6.7 73.4 19.9 0.1 from the previous year. 2005 11,801 8.1 17.1 74.6 0.1 0.1 6874,51 6.1 76.5 17.4 0.1 In the share rate among different 2006 12,187 8.0 17.1 74.7 0.1 0.1 690,779 6.3 76.6 17.1 0.1 types of transportation, passenger traffi c 2007 12,628 7.8 16.6 75.4 0.1 0.1 715,221 6.2 76.9 16.8 0.1 increased 73.8 percent on the road; 17.6 2008 12,990 7.8 16.5 75.5 0.1 0.1 729,824 6.4 79.2 17.4 0.0 2009 12,824 8.0 17.0 74.8 0.1 0.1 766,677 5.1 79.2 15.7 0.0 percent on the subway; 8.3 percent on 2010 13,015 8.2 17.5 74.1 0.1 0.2 778,031 5.0 79.6 15.3 0.0 the railways; 0.2 on airplanes and 0.1 on 2011 13,420 8.3 17.6 73.8 0.1 0.2 784,355 5.2 80.5 14.3 0.0 ships. The roads had 80.5 percent of the Year-on-year 3.1% 0.1%p 0.1%p -0.3%p 0.0%p 0.0%p 0.8% 0.2%p 0.9%p -1.0%p 0.0%p freight traffi c, followed by ships, at 14.3 increase (%) percent, and railways at 5.2 percent. Source: Ministry of Land, Transport and Maritime Affairs 『Statistical Yearbook of MLTM』 ©Yonhap News

KTX (Korea Train Express), the high-speed railroad of South Korea

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International Shipping Traffic Figure 9.1 Civil Aviation Traffic(Passenger) In terms of international shipping traffic in 2011, the number of (1,000 people)

transported passengers decreased by 2.4 percent and the number 45,000 International lines of tons of shipped freight increased 10.7 percent from 2010. 41,413 Domestic lines 40,000 38,877

35,450 34,311 Table 9.3 International Shipping Traffic 35,000 32,891 Freight (1,000 R/T) Passenger 30,360 160 (people) Total Import Export 30,000 150 27,505 140 1995 394,947 404,423 316,010 88,413 130 120 2000 999,163 569,599 418,821 150,778 25,000 110 2002 1,252,867 635,546 459,747 175,799 20,358 100 19,586 90 2004 1,822,200 733,377 501,706 231,671 20,000 17,584 80 16,691 16,641 70 2005 2,104,939 754,936 512,445 242,491 16,202 16,134 60 15,000 50 2006 2,384,782 809,829 545,927 263,902 40 2007 2,549,884 862,523 576,501 286,022 30 20 2008 2,536,333 894,694 601,617 293,077 10,000 10 2009 2,088,967 848,299 566,082 282,217 2010 2,769,808 966,193 647,040 319,153 5,000 40000 2011 2,702,432 1,069,565 703,753 365,812 350000 Year-on-year 0 300000 -2.4 10.7 8.8 14.6 increase (%) 2005 2006 2007 2008 2009 2010 2011 30000 250000 Source: Ministry of Land, Transport and Maritime Affairs Source: Ministry of Land, Transport and Maritime Affairs 『Statistical Yearbook of MLTM』

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150000 20000 Civil Aviation Traffic 100000 For civil aviation traffic in 2011, the number of passengers car- Figure 9.2 Civil Aviation Traffic1) (Freight) ried10000 by domestic lines was 20,360,000, an increase of 3.9 percent. (1,000 tons)

The number of tons of freight increased 7.0 percent, to 275,000 3,500 4.5 International lines tons. Domestic lines 0 3,000 The number of passengers carried by international lines in 3,001 3,138 4.0 2,845 2,913 2,500 2011 was 41,410,000, a 6.5 percent increase. The number of tons 2,618 2,729 2,412 3.5 of freight was 2,910,000 tons, down by 7.2 percent from the pre- 2,000 vious year. 1,500 3.0 1,000

2.5 367 350 310 275 Table 9.4 Civil Aviation Traffic 500 248 264 257 International lines Domestic lines 85 0 Passenger Freight1) Passenger Freight1) 2005 2006 2007 2008 2009 2010 2011 (1,000 persons) (1,000 tons) (1,000 persons) (1,000 tons) 80 Note: 1) Includes postal service 1990 9,383 761 10,833 180 Source: Ministry of Land, Transport and Maritime Affairs 『Statistical Yearbook of MLTM』

75 1995 13,948 1,198 20,413 319 2000 18,905 1886 22,289 431 70 2002 21,876 1,998 20,754 428

65 2004 24,775 2,376 18,594 406 Production of Broadcasting and 2005 27,505 2,412 16,691 367 Communication Industries 60 160 2006 30,360 2,618 16,641 350 150 In 2011, the entire production of broadcasting and communica- 140 2007 35,450 3,001 16,202 310 tion industries recorded 156,161,100 billion won, an increase of 130 120 2008 34,311 2,845 16,134 248 2.9 percent from 2010. 110 100 2009 32,891 2,729 17,584 264 By industry, the production of broadcasting and communica- 90 2010 38,877 3,138 19,586 257 80 tion convergence service recorded the highest increase rate, rising 70 2011 41,413 2,913 20,358 275 60 by 14.3 percent year on year. The production of broadcasting ser- 50 Year-on-year 6.5 -7.2 3.9 7.0 vice increased by 8.2 percent; broadcasting and communication 40 increase (%) 30 equipment increased by 2.0 percent; and communication service 20 Note: 1) Includes the postal service 10 Source: Ministry of Land, Transport and Maritime Affairs 『Statistical Yearbook of MLTM』 increased by 1.0 percent.

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160 150 140 130 120 110 100 ©Yonhap News 90 80 70 60 50 40 Incheon International Airport is a hub of airline trafﬁ c of Northeast Asia. 30 20 10

Figure 9.3 Production of Broadcasting and Communication Industries 350000 (100 million won) 300000

250000 1,500,000 Broadcasting and communication equipment 200000 Broadcasting and communication 150000 convergence service 909,289 905,386 Broadcasting service 100000 1,000,000 887,310 827,392 Communication service 692,864 652,526 615,055

4.5 86,690 99,077 49,027 60,417 73,858 500,000 42,049 95,194 107,382 116,224 35,171 89,967 97,461 92,878 4.0 82,235 426,617 435,981 436,355 440,924 373,430 386,639 405,101 3.5 0 2005 2006 2007 2008 2009 2010 2011 3.0 Source: Korea Association for ICT Promotion 『Yearbook of Broadcasting and Communications Industry Statistics』, 『Monthly Survey of Broadcasting and Communications industry Statistics』

2.5 Table 9.5 Production of Broadcasting and Communication Industries (100 million won, %)

85 2005 2006 2007 2008 2009 2010 2011 Year-on-year increase 80 Total 1,105,891 1,171,181 1,244,453 1,407,304 1,514,322 1,517,737 1,561,611 2.9

75 Communication service 373,430 386,639 405,101 426,617 435,981 436,355 440,924 1.0 Broadcasting service 82,235 89,967 97,461 92,878 95,194 107,382 116,224 8.2 70 Broadcasting and communication 35,171 42,049 49,027 60,417 73,858 86,690 99,077 14.3 convergence service 65 Broadcasting and communication equipment1) 615,055 652,526 692,864 827,392 909,289 887,310 905,386 2.0

60 Communication equipment 472,854 499,325 556,404 698,457 768,389 732,179 745,908 1.9 Broadcasting equipment 142,201 153,201 136,460 128,936 140,900 155,130 159,478 2.8

Note: 1) On businesses with 10 or more workers Source: Korea Association for ICT Promotion 『Yearbook of Broadcasting and Communications Industry Statistics』, 『Monthly Survey of Broadcasting and Communications industry Statistics』

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profit by exchanging goods and services internationally. Since 6,000 5,552.1 2.5 Exports 5,500 Korea is a country that lacks natural resources, it receives raw Imports materials through trade and exports goods after processing the 5,000 4,663.8 5,244.1 85 4,352.7 imported raw material. So, for Korea, foreign trade is very sig- 4,500 80 nificant. 4,000 3,714.9 3,635.3 4,252.1 The total trade volume in 2011 recorded $1,079,630 million, 3,500 3,254.6 75 2,844.2 3,568.5 3,000 3,230.8 an increase of 21.1 percent year on year. The value of exports 2,538.4 3,093.8 70 2,500 recorded $555,210 million, a 19.0 percent increase from the pre- 2,612.4 1.722.7 2,000 2,244.6 65 vious year, and the value of imports recorded $524,410 million, a 1,500 23.3 percent increase from the previous year. The surplus in trade 1,604.8 60 0 account in 2011 was $30,800 million, a decrease of $10,370 mil- 2000 2004 2005 2006 2007 2008 2009 2010 2011 lion from the previous year. Source: The Korea International Trade Association

Trend of Exports and Imports by Items Table 10.1 Trade Volume (100 million dollars)

When examining the trend of exports and trends by item in 2011, Exports Total Exports Imports heavy and chemical products took the largest share, at 91.0 per- – Imports cent in total exports, following the previous year, and light indus- 2000 3,327.5 1,722.7 1,604.8 117.9 try products took up 6.2 percent. Primary products were at 2.8 2004 4,783.1 2,538.4 2,244.6 293.8 percent. In total imports, crude material and fuel took the largest 2005 5,456.6 2,844.2 2,612.4 231.8 share at 62.5 percent; then capital goods at 27.4 percent; and con- 2006 6,348.5 3,254.6 3,093.8 160.8 sumer goods at 10.0 percent. 2007 7,283.3 3,714.9 3,568.5 146.4 2008 8,572.8 4,220.1 4,352.7 –132.6 2009 6,866.2 3,635.3 3,230.8 404.5 2010 8,916.0 4,663.8 4,252.1 411.7 2011 10,796.3 5,552.1 5,244.1 308.0 Year-on-year 21.1 19.0 23.3 – increase (%)

Source: The Korea International Trade Association

Table 10.2 Trend of Exports and Imports by Item (100 million dollars, %)

Export Import 2008 2009 2010 2011 Composition 2008 2009 2010 2011 Composition Total exports 4,220.1 3,635.3 4,663.8 5,552.1 100.0 Total imports 4,352.7 3,230.8 4,252.1 5,244.1 100.0 Primary products 77.9 93.4 115.0 157.3 2.8 Crude material 2,716.1 1,860.5 2,494.6 3,278.3 62.5 Light industry products 270.4 238.1 294.0 342.0 6.2 Capital goods 1,230.0 1,040.1 1,333.9 1,437.7 27.4 Heavy and chemical 3,871.7 3,303.9 4,254.9 5,052.9 91.0 Consumer goods 401.4 327.5 418.6 524.0 10.0 products (IT Products) 1,046.8 1,003.1 1,263.9 1,245.7 22.4 Others 5.3 2.8 5.1 4.1 0.1

Source: The Korea International Trade Association

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160 150 Exports and Imports by Country Table 10.4 Balance of Payments (100 million dollars) 140 130 When looking at exports and imports by country in 2011, exports 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 120 110 to China took up the largest share, at $134,200 million, and im- Current account 75.4 155.8 323.1 186.1 140.8 217.7 32.0 327.9 293.9 260.7 100 ports from China also accounted for the largest share, at $86,400 90 balance 80 million. Goods 70 152.0 240.3 396.6 328.6 314.3 371.3 51.7 378.7 400.8 316.6 balance 60 When ranking the trade by country, China was Korea’s top 50 Service -64.4 -57.9 -59.6 -99.5 -133.3 -119.7 -57.3 -66.4 -86.3 -58.5 40 export destination, followed by the United States., Japan, Hong balance 30 20 Kong, and Singapore. The largest share of imports were from Primary 4.0 2.5 10.4 -18.2 0.7 1.4 44.4 22.8 10.2 28.9 10 China, followed by Japan, the United States, Saudi Arabia, and income Secondary Australia -16.2 -29 -24.3 -24.8 -40.9 -35.3 -6.7 -7.1 -30.8 -26.3 income Capital∙ 350000 financial -70.1 -163.5 -354.7 -195.3 -141.5 -238.8 -7.5 -346.5 -274.8 -267.8 1) Table 10.3 Exports and Imports by Country (2011) (100 million dollars) account 300000 Ranking Country Exports Ranking Country Imports Capital 250000 -10.9 -14.0 -17.5 -23.4 -31.3 -23.9 1.1 2.9 -2.2 -0.2 balance 160 Total 5,552 Total 5,244 200000 Financial 150 1 China 1,342 1 China 864 -59.2 -149.5 -337.1 -171.9 -110.3 -214.9 -8.6 -349.4 -272.6 -267.5 140 account 150000 130 2 United States 562 2 Japan 683 120 Source: The Bank of Korea 『Monthly Balance of Payments』 100000 110 3 Japan 397 3 United States 446 100 90 4 Hong Kong 310 4 Saudi Arabia 370 80 Overseas Investments and Foreign Direct Investments 70 5 Singapore 208 5 Australia 263 At the end of 2011, the balance of overseas investments of Korea 60 4.5 6 Taiwan 182 6 Qatar 207 50 was $753,670 million, an 8.6 percent increase from the previous 40 7 Indonesia 136 7 Indonesia 172 30 4.0 year, and the balance of foreign direct investments was $838,200 20 8 Vietnam 135 8 Germany 170 10 9 India 127 9 Kuwait 170 million, an increase of 0.8 percent year on year. 3.5 10 Brazil 118 10 U.A.E. 148 (FDI) Note: 1) Excludes countries ranked lower than 10th place. Figure 10.3 Overseas Investments and Foreign Direct Investments 350000 3.0 Source: The Korea International Trade Association (100 million dollars)

300000 9,000 8,382.0 2.5 Overseas Investments 8,316.9 250000 Balance of Payments FDI 8,000 200000 The surplus in the balance of payments in 2011 showed a slight 7,766.1 7,307.8 85 7,536.7 150000 year-on-year decrease, and recorded $26,070 million. However, it 7,000 6,074.8 6,174.0 80 was the fifth largest amount, following $42,640 million in 1998, 6,940.7 100000 6,000 $32,790 million in 2009, $32,310 million in 2004, and $29,390 5,129.8 6,258.6 75 5,933.1 million in 2010. 5,000 5,351.2

4.5 70 The goods balance in the year recorded $31,660 million of 4,000 4,655.6 surplus, owing to favorable export conditions, while the scale of 65 3,000 3,684.3 4.0 deficit in the service balance was reduced year on year to $5,850

60 million (from $8,630 million in 2010). 0 2005 2006 2007 2008 2009 2010 2011 3.5 Source: The Bank of Korea 『Monthly Statistical Bulletin』 Figure 10.2 Current Account Balance 3.0 (100 million dollars) Table 10.5 Overseas Investments and Foreign Direct Investments (100 million dollars) 350 323.1 2.5 327.9 300 Year- 293.9 85 2005 2006 2007 2008 2009 2010 2011 on-year 250 260.7 increase 217.7 (%) 80 200 Overseas 186.1 investments 3,684.3 4655.6 5933.1 5351.2 6258.6 6940.7 7536.7 8.6 75 150 155.8 (A) 140.8 70 Foreign 100 direct 5,129.8 6174.0 7766.1 6074.8 7307.8 8316.9 8382.0 0.8 investments 65 75.4 (B) 50 32.0 Net 60 0 international 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 investment -1,445.4 -1518.4 -1833 -723.6 -1049.2 -1376.2 -845.3 - Source: The Korea International Trade Association position (A-B)

Source: The Bank of Korea 『Monthly Statistical Bulletin』

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160 150 140 Busan harbor packed with inbound and outbound cargo containers 130 120 110 100 90 80 70 60 50 40 30 International Reserves 20 10 At the end of 2011, the international reserves recorded $306,402 Table 10.6 International Reserves (Million dollars) million, an increase of $14,831 million from $291,571 million at

the end of the previous year. Foreign Total Special IMF reserve Gold currency 350000 drawing rights position1) reserves 300000 2000 96,198 68 4 272 95,855

250000 Figure 10.4 International Reserves 2001 102,821 68 3 262 102,488

200000 (100 million dollars) 2002 121,413 69 12 520 120,811

150000 350,000 2003 155,352 71 21 752 154,509 306,402 100000 2004 199,066 72 33 786 198,175 300,000 2005 210,391 74 44 306 209,968 262,224 291,571 2006 238,956 74 54 440 238,388 4.5 250,000 238,956 269,995 2007 262,224 74 69 310 261,771 210,391 2008 201,223 76 86 583 200,479 199,066 4.0 200,000 201,223 2009 269,995 79 3,732 982 265,202 155,352 2010 291,571 80 3,540 1,025 286,926 3.5 150,000 2011 306,402 2,167 3,447 2,556 298,233 Year-on-year 121,413 5.1 2,620.3 -2.6 149.5 3.9 3.0 100,000 increase (%) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Note: 1) Asset that can be drawn from the IMF on demand Source: The Bank of Korea 『Monthly Statistical Bulletin』 Source: The Bank of Korea 『Monthly Statistical Bulletin』 2.5

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Consolidated Budget Balance In 2011, because of a surplus in the Social Security fund, the Consolidated public finance is a method of tracking all revenues consolidated public finance balance recorded 18,629 billion won, and expenditures of the central government in total in order to which was 1.5 percent to the GDP (gross domestic product). understand the national economy at a glance.The consolidated budget balance is calculated by subtracting the consolidated pub- Tax Burden Ratio

160 lic expenditure of a year from the consolidated public revenue of The tax burden ratio measures the degree of tax burden for a cer- 150 140 the same year. tain country’s people, which means it’s the proportion of gross 130 120 110 Figure 11.1 Trend of Consolidated Central Government Balance Figure 11.2 Tax Burden Ratio (to current GDP) 100 90 (Billion won) (%) 80 70 40,000 37,049 25 60 35,000 24 50 30,000 40 25,000 22,666 32 30 20,000 16,692 22 20 21.0 15,000 15,831 20.7 10 7,642 18,629 21 10,000 5,626 19.7 19.7 19.8 160 5,000 5,989 20 19.3 19.3 18.8 18.9 150 0 19 18.4 140 -5,000 4,889 18 130 -10,000 350000 120 -15,000 17 110 -17,620 300000 -20,000 100 -25,000 0 90 250000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 80 70 Source: Ministry of Strategy and Finance 『Government Finance Statistics in Korea』 Source: Ministry of Strategy and Finance 200000 60 50 150000 40 30 100000 Table 11.1 Consolidated Budget Balance (Billion won) 20 10 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Consolidated budget balance 22,666 7,642 5,626 4,889 5,989 37,049 15,831 -17,620 16,692 18,629 4.5 Total revenue 158,712 171,946 178,760 191,447 209,573 243,633 250,713 255,811 270,923 292,323 350000 Total expenditure and net 136,047 164,303 173,135 186,557 203,584 206,584 234,882 268,431 254,231 273,694 4.0 300000 lending

250000 Source: Ministry of Strategy and Finance 『Government Statistics in Korea』

3.5 200000 Table 11.2 Tax Receipt and Tax Burden Ratio (Trillion won, %) 150000 3.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 100000 Total 135.5 147.8 152.0 163.4 179.3 205.0 212.8 209.7 226.9 244.7 2.5 National 104.0 114.7 117.8 127.5 138.0 161.5 167.3 164.5 177.7 192.4 Gross tax taxes 4.5 85 Local taxes 31.5 33.1 34.2 36.0 41.3 43.5 45.5 45.2 49.2 52.3 Total 18.8 19.3 18.4 18.9 19.7 21.0 20.7 19.7 19.3 19.8p) 80 4.0 Tax burden ratio National 14.4 14.9 14.2 14.7 15.2 16.6 16.3 15.4 15.2 15.6 (to GDP) taxes 75 3.5 Local taxes 4.4 4.3 4.1 4.2 4.5 4.5 4.4 4.2 4.2 4.2

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The Bank of Korea (BOK) is the central bank of South Korea and issuer of South Korean currency.

tax (national tax plus local tax) to the current GDP. In 2011, the the ratio of ODA to GNI, which indicates the level of a country’s tax burden ratio to current GDP (excluding Social Security share) ODA compared to its economic scale, recorded 0.12 percent, the was 19.8 percent, an increase of 0.5 percent from 2010. same as the previous year’s level. Bilateral assistance, in which assistance funds and goods Offi cial Development Assistance are directly delivered to developing countries, increased by 7.7 In 2011, the scale of Korea’s offi cial development assistance percent year on year to $970 million, and multilateral assistance (ODA) increased by 12.5 percent to record $1,320 million, and increased by 28.6 percent year on year to $350 million.

Table 11.3 Offi cial Development Assistance(Based on Net Expenditure) (Million dollars)

Total ODA ODA/GNI1)(%) Bilateral ODA Multilateral ODA 1995 116 71 45 0.02 2000 212 131 81 0.04 2005 752 463 289 0.10 2006 455 376 79 0.05 2007 696 491 206 0.07 2008 802 539 263 0.09 2009 816 581 235 0.10 2010 1,174 901 273 0.12 2011p) 1,321 970 351 0.12 Year-on-year 12.5 7.7 28.6 – increase (%)

Note: 1) Based on nominal fi gures Source: 『The Export and Import Bank of Korea』

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12 Money & Financial Institution and Insurance & Securities

Money Supply Credit to Households 40000 Financial policy is an indirect method of controlling a country’s Total credit to households in 2011 recorded 911,892,100 million economy through the adjustment of money supply or interest rate, won, an increase of 8.1 percent (68,702,500 million won) from 30000 which affects the country’s national income. The primary method the end of 2010. The increase rate decreased by 0.6 percent from of financial policy is the adjustment of money supply through an the end of 2010 (8.7 percent). open market operation, rediscount policy, and so on. In such a As of the end of 2011, outstanding loans to households re- 20000 case, an indicator for management of money supply is necessary corded 857,117,800 million won, an increase of 8.0 percent from and base money can be used for this. the end of 2010, and outstanding merchandise credits, sold by 10000 Base money refers to cash held in the private sector, vault credit card companies, sales finance companies, etc., increased by cash held by private banks, and private banks’ deposits at a 10.9 percent compared to the end of 2010, to reach 54,774,300 central bank. Narrow money (M1), which refers to the general million won. 0 money supply, is a combination of cash currency, demand deposits, and cash-management time and savings deposits. When Figure 12.1 Credit to Households financial instruments with less than two years of maturity, such (Billion won)

as installment deposits and savings, are included in the previous- 1,000,000 ly mentioned combination, they are called broad money (M2). 911,892.1 Broad money, when added to other types of deposits received by 750,000 843,189.6 775,985.3 723,521.5 commercial and specialized banks and non-bank financial institu- 665,394.2 500,000 607,133.2 tions, constitutes a financial institutions’ liquidity (Lf). 542,871.4 In terms of the scale of money supply in 2011, the value of base money increased by 7.4 percent to reach 8,055,900 million 250,000 won, and M1 increased by 3.3 percent year on year. M2 increased 0 by 5.5 percent, and Lf increased by 6.6 percent. 2005 2006 2007 2008 2009 2010 2011

Source: The Bank of Korea 『Economic Statistics Yearbook』

Table 12.1 Money Supply (Billion won)

160 Bank notes and coins in Base money Narrow money (M1) Broad money (M2) Financial institutions’ liquidity (Lf) 150 circulation 140 130 2003 24,490.9 40,749.0 298,952.9 898,069.4 1,209,750.8 120 110 2004 24,882.3 38,791.8 321,727.7 954,722.5 1,295,821.8 100 2005 26,135.8 43,249.0 332,344.9 1,021,448.7 1,391,559.6 90 80 2006 27,843.1 51,869.5 371,087.6 1,149,262.1 1,538,299.7 70 60 2007 29,321.9 56,399.0 316,382.7 1,273,611.9 1,691,565.2 50 40 2008 30,758.3 64,846.3 330,623.7 1,425,887.5 1,845,199.1 30 20 2009 37,346.2 67,779.1 389,394.5 1,566,850.0 2,018,785.0 10 2010 43,307.2 74,545.7 427,791.6 1,660,530.0 2,137,197.9 2011 48,657.6 80,055.9 442,077.5 1,751,458.4 2,277,679.0 Year-on-year 12.4 7.4 3.3 5.5 6.6 350000 increase (%)

300000 Source: The Bank of Korea 『Economic Statistics Yearbook』

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2005 2006 2007 2008 2009 2010 2011 Year-on-year increase (%) Credit to households 542,871.4 607,133.2 665,394.2 723,521.5 775,985.3 843,189.6 911,892.1 8.1 Loans to households1) 514,844.2 575,601.0 630,112.8 683,602.4 734,291.9 793,778.9 857,117.8 8.0 Merchandise credit 28,027.3 31,532.2 35,281.4 39,919.1 41,693.5 49,410.8 54,774.3 10.9

Note: 1) Family loans (excluding private nonprofit organizations for service to households), cash advance, and credit card loans Source: The Bank of Korea 『Monthly Statistical Bulletin』

Table 12.3 Dishonored Checks and Bills Ratio1) (%)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Nationwide dishonored checks and bills ratio 0.38 0.11 0.17 0.18 0.14 0.11 0.11 0.15 0.14 0.15 0.11

Note: 1) Based on dishonored value Source: The Bank of Korea 『Economic Statistics Yearbook』

Dishonored Checks and Bills Ratio One of the indicators to understanding the current market-fund Table 12.4 Transactions in Securities condition is to examine the ratio of dishonored checks and bills. Stocks Bond market KOSPI1) Trading The dishonored checks and bills ratio refers to the ratio of checks Trading Trading Trading volume volume value value Closing (par value) and bills that have not been paid, and, consequently, dishonored, (million shares) (billion won) (billion won) among all checks and bills that are due. The ratio is calculated by (billion won) 1995 7,656.0 142,914.1 1,352.9 1,429.9 882.9 dividing the dishonored bills and checks by the total amount of 2000 73,785.3 627,132.9 26,878.2 27,169.7 504.6 checks and bills that are due. 2001 116,417.3 491,365.4 13,815.3 14,226.2 693.7 In other words, a high ratio indicates bad conditions for the 2002 209,167.8 742,150.0 5,296.7 3,982.5 627.6 funds that are being circulated in the market. The nationwide 2003 133,876.4 547,509.1 48,820.6 48,414.7 810.7 dishonored checks and billsratio in 2011 was 0.11 percent, a de- 2004 92,850.8 555,795.1 377,442.7 384,068.9 895.9 crease of 0.04 percent from 2010. 40000 2005 116,439.7 786,257.9 366,595.4 363,803.2 1,379.4 2006 68,936.8 848,489.6 294,140.3 293,607.7 1,434.5 Figure 12.2 Dishonored Checks and Bills Ratio 2007 89,506.1 1,362,877.1 355,828.1 351,394.9 1,897.1 30000 (%) 2008 88,149.1 1,287,164.8 376,350.9 373,984.6 1,124.5 0.6 2009 122,871.3 1,466,274.8 504,382.4 510,204.5 1,682.8

20000 0.5 2010 95,595.7 1,410,561.8 584,267.1 585,205.4 2,051.0 2011 87,732.4 1,702,060.3 815,138.1 824,817.0 1,825.7 0.38 0.4 Year-on-year -8.2 20.7 39.5 40.9 -11.0 10000 increase (%) 0.3 Note: 1) Jan. 4, 1980 = 100 Source: Korea Exchange 0.2 0.17 0.18 0 0.14 0.15 0.14 0.15 Table 12.5 Investing Population1) (1,000 people) 0.11 0.11 0.11 0.11 0.1 Population 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Investing Total popula- of economic population(A) tion (C)2) Source: The Bank of Korea 『Economic Statistics Yearbook』 activity (B) A/B(%) A/C(%) 2000 3,304 22,134 14.9 47,008 7.0 2001 3,888 22,471 17.3 47,357 8.2 Transactions in Securities 2002 3,974 22,921 17.4 47,622 8.3 As of the end of 2011, the Korea Composite Stock Price Index 2003 3,937 22,957 17.2 47,859 8.2 (KOSPI) recorded 1,825.7 points, a decrease of 11.0 percent from 2004 3,763 23,417 16.1 48,039 7.8 2,051.0 points at the end of 2010. 2005 3,537 23,743 14.9 48,138 7.3 2006 3,613 23,978 15.1 48,372 7.5 Investing Population 2007 4,441 24,216 18.3 48,598 9.1 In 2011, the population of stock investors reached arecord high 2008 4,627 24,347 19.0 48,949 9.5 at 5,280,000, increasing by 10.4 percent (497,000) year on year. 2009 4,665 24,394 19.1 49,182 9.5 By market, the investing population in the securities market in- 2010 4,787 24,748 19.3 49,410 9.7 creased by 13.2 percent (508,000) and the number in the KOS- 2011 5,284 25,099 21.1 49,779 10.6 DAQ market increased by 13.7 percent (286,000). Year-on-year 10.4 1.4 1.7%p 0.7 0.9%p 160 Stock investors accounted for 10.6 percent of the total popu- increase (%) 150 Note: 1) From 1999, includes the population investing in companies listed on KOSDAQ 140 lation and 21.1 percent of the economically active population, 2) Population projections, according to medium-growth assumption 130 Source: Korea Exchange, Statistics Korea 120 increasing by 0.9 percent and 1.7 percent. 110 100 90 80 STATISTICS 29 70 60 50 40 30 20 10 INFOKOREA_1(4교).indd 29 2014-08-29 오전 9:33:44

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13 Prices and Household Economy

Prices increasing by 2.2 percent year on year. In 12 sectors, the index of Prices, in general, mean how much a group of necessities costs other goods and services decreased by 3.2 percent. Communica- collectively. They also show a comprehensive trend of price tions decreased by 2.5 percent. However, the indexes of the other changes. In addition, they also indicate the average level of prices sectors increased, including a 4.8 percent increase in the clothing for different products. and footwear sector and a 4.6 percent increase in the housing, In detail, prices are measured by the price index, and the in- water, electricity and other fuels sector. dex is a number that is calculated by taking the average of the different products in some special methods. To more easily un- Consumer Price Index for Living Necessities derstand a change in the prices, the price at a certain time is set as Prices that consumers experience daily are subjective and depend 100 and the prices at another time to be compared is marked as a on an individual’s lifestyle. Consumers tend to think that if there number that indicates the change from 100, as an index. is a price change for the goods they buy there will also be one for The price index is calculated objectively and systematically, all products. but these figures may differ somewhat from the actual prices that To explain the subjective prices, Statistics Korea produced people experience daily. the consumer price index for necessities by examining the 142 items that, if there were a price change, the consumers would be Consumer Price Index highly affected by it. These products also take a high proportion The consumer price index is a number that is calculated to mea- of consumers’ spending. sure the price changes of 481 items. It is also used to understand The consumer price index for necessities in 2012 was 106.1 the trend of change in the prices of goods and services purchased (2010=100), a 1.6 percent increase year on year. The consumer by households. price index increased by 2.2 percent to record a 106.3 (2010=100). The consumer price index in 2012 recorded 106.3 (2010=100),

Table 13.1 Consumer Price Indexes (2010=100)

Weight 2006 2007 2008 2009 2010 2011 2012 Year-on-year increase (%) All items 1,000.0 88.070 90.302 94.523 97.129 100.0 104.0 106.3 2.2 Food and nonalcoholic beverages 135.9 81.202 83.236 87.356 93.974 100.0 108.1 112.4 4.0 Alcoholic beverages and tobacco 12.4 97.564 97.963 98.485 99.601 100.0 100.8 102.3 1.5 Clothing and footwear 62.3 87.812 90.157 92.466 97.149 100.0 103.3 108.3 4.8 Housing, water, electricity and 169.7 90.570 92.596 96.617 97.696 100.0 104.5 109.3 4.6 other fuels Furnishing, household equipment and 37.9 89.081 91.407 95.429 99.659 100.0 103.7 106.7 2.9 routine household maintenance Health 73.1 92.754 94.369 96.188 98.280 100.0 101.8 102.7 0.9 Transportation 109.2 87.700 90.822 98.813 95.313 100.0 107.0 110.5 3.3 Communications 57.8 104.730 102.625 101.140 100.973 100.0 98.4 95.9 -2.5 Recreation and culture 53.0 97.147 95.472 96.882 99.129 100.0 101.6 101.8 0.2 Education 114.1 85.362 90.466 95.406 97.794 100.0 101.7 103.2 1.5 Restaurants and hotels 120.4 88.185 89.821 94.125 97.736 100.0 104.3 105.5 1.2 Other goods and services 54.2 79.038 82.939 90.421 96.613 100.0 103.2 99.9 -3.2

Source: Statistics Korea 『Consumer Price Index Yearbook』

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20000 Consumer price index for necessities Table 13.4 Trend of Urban Salary- and Wage-Earner Households’ (Two or more 115 people) Average Income and Expenditure (1,000 won, %)

2004 2005 2006 2007 2008 2009 2010 2011 10000 110 106.3 Income 3,112.5 3,252.1 3,444.1 3,656.2 3,900.6 3,853.2 4,007.7 4,248.6 Consump- 104.4 105 tion expen- 1,897.1 1,991.1 2,070.9 2,163.6 2,308.5 2,310.3 2,435.1 2,531.4 0 106.1 diture 104.0 Disposable 2,562.3 2,682.6 2,832.6 2,993.2 3,183.6 3,126.8 3,233.3 3,415.3 100 income1) 97.129 100.0 Value of 665.2 691.5 761.7 829.6 875.1 816.5 798.2 883.9 94.787 surplus2) 95 96.741 Rate of 26.0 25.8 26.9 27.7 27.5 26.1 24.7 25.9 90.302 94.523 surplus3) 90 Average 90.012 propensity to 74.0 74.2 73.1 72.3 72.5 73.9 75.3 74.1 85 consump- 4) 2007 2008 2009 2010 2011 2012 tion

Source: Statistics Korea 『Consumer Price Index Yearbook』 Note: 1) Disposable income: income-nonconsumption expenditures 2) Value of surplus: disposable income-consumption expenditures 3) Rate of surplus: (value of surplus/disposable income) × 100 4) Average propensityto consumption: (consumption expenditures/disposable income) × 100 Source: Statistics Korea 『Household Economy Survey』 Producer Price Index The average producer price index in 2012 recorded 107.5 (2010=100), an increase of 0.7 percent year on year. For electric power, water supply, and gas, it increased by 7.5 percent year on year. The index for agricultural, forestry and marine products 160 150 increased by 0.8 percent, and there was a 3.5 percent increase for 140 130 mining products. 120 110 100 Table 13.3 Producer Price Index (2010=100) 90 80 70 Weight 2006 2007 2008 2009 2010 2011 2012 Year-on-year 60 increase (%) 50 40 All items 1000.0 87.7 88.9 96.5 96.3 100.0 106.7 107.5 0.7 30 Agricultural, 20 forestry and 33.8 81.3 83.5 84.4 91.8 100.0 107.4 108.3 0.8 10 marine products Mining products 2.4 70.6 75.5 82.3 90.2 100.0 102.1 105.7 3.5 Manufacturing 611.4 86.4 87.1 97.6 95.9 100.0 109.0 108.6 -0.4 350000 products ©Yonhap News 300000 Electric power, water supply 54.3 83.5 86.4 90.1 96.1 100.0 105.8 113.7 7.5

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Average Monthly Consumption Table 13.5 Average Monthly Consumption Expenditure of Urban Salary- and Wage-Earner Households Expenditure of Urban (Two or more people) (1,000 won, %) Salary- and Wage-Earner Year- 2009 Composi- 2010 Composi- 2011 Composi- Households on-year tion tion tion In terms of the monthly average consump- increase tion expenditure of urban salary- and Consumption expenditure 2,310.3 100.0 2,435.1 100.0 2,531.4 100.0 4.0 wage-earner households in 2011, the ex- Food and soft drinks 303.6 13.1 318.8 13.1 339.6 13.4 6.5 Alcoholic beverages and penditure for food and soft drinks took the 27.5 1.2 28.4 1.2 28.1 1.1 -1.0 cigarettes largest share, at 13.4 percent, followed by Clothing and footwear 146.1 6.3 158.0 6.5 171.7 6.8 8.7 shares of expenditure for restaurants and Housing, water, electricity and 216.7 9.4 231.1 9.5 243.2 9.6 5.3 hotels (13.3 percent), education (13.0 per- other fuels Household equipment and cent), and transportation (12.0 percent). 83.8 3.6 94.0 3.9 95.6 3.8 1.8 housekeeping services The total number of consumption ex- Health 142.3 6.2 151.1 6.2 160.0 6.3 5.9 penditure in 2011 was 2,531,000 won, an Transportation 291.0 12.6 293.8 12.1 303.6 12.0 3.3 increase of 4.0 percent from the previous Communication 136.1 5.9 142.5 5.9 146.9 5.8 3.1 year. Expenditure increased in all items, Entertainment and culture 123.3 5.3 139.9 5.8 144.4 5.7 3.2 except for education and alcoholic bever- Education 325.0 14.1 332.1 13.6 327.7 13.0 -1.3 ages and cigarettes. Restaurants and hotels 313.5 13.6 325.7 13.4 335.5 13.3 3.0 Other miscellaneous goods 201.3 8.7 219.7 9.0 235.1 9.3 7.0 Average Monthly Income and and services

Expenditure by Asset Quintile of Source: Statistics Korea 『Household Economy Survey』 Urban Salary- and Wage-earner Households Figure 13.2 Monthly Average Income and Expenditure by Income Quintile (Two or more people, 2011)

In 2011, the annual income and consump- (1,000 won)

tion expenditure of urban salary- and 8,000 7,779.9 wage-earner households (two or more Average monthly income 7,000 people) increased year on year in all quin- Average monthly expenditure 6,000 tiles. 5,000.2 The increase rate of the 2nd to 5th 5,000 income quintiles (5.9 to 6.3 percent) was 4,000 3,850.9 3,738.1 higher than that of the 1st income quin- 2,905.2 2,955.0 3,000 2,432.0 2,109.0 tile (4.8 percent), and the increase rate of 1,700.4 2,000 consumption expenditure of the 1st to 4th 1,420.1 1,000 40000 income quintiles (4.1 to 8.3 percent) was 1st quintile 2nd quintile 3rd quintile 4th quintile 5th quintile

higher than that of the 5th income quintile Source: The Bank of Korea 『Economic Statistics Yearbook』 (0.8 percent). 30000 For the lowest income quintile, the Table 13.6 Average Monthly Income and Expenditure of Urban Salary- and Wage-Earner Households share of expenditure on food and soft (Two or more people) by Income Quintile (1,000 won, %) 20000 drinks, housing and water∙heating, restau- 2010 2011 rants and hotels, and transportation was 1st 2nd 3rd 4th 5th 1st 2nd 3rd 4th 5th high, in the named order. For the top in- quintile quintile quintile quintile quintile quintile quintile quintile quintile quintile 10000 come quintile, expenditure on education, Income 1,623.0 2,737.8 3,631.7 4,723.4 7,315.7 1,700.4 2,905.2 3,850.9 5,000.2 7,779.9 Change restaurants and hotels, transportation, and 7.8 7.3 4.4 3.5 2.1 4.8 6.1 6.0 5.9 6.3 rate 0 food and soft drinks recorded high shares, Ratio in the named order. to 1 1.00 1.69 2.24 2.91 4.51 1.00 1.71 2.26 2.94 4.58 quintile Con- sumption 1,352.0 1,947.3 2,325.4 2,838.4 3,709.9 1,420.1 2,109.0 2,432.0 2,955.0 3,738.1 expenditure Change 7.9 9.0 4.4 4.7 3.8 5.0 8.3 4.6 4.1 0.8 rate Ratio to 1 1.00 1.44 1.72 2.10 2.74 1.00 1.49 1.71 2.08 2.63 quintile

Source: Statistics Korea 『Household Economy Survey』

32 INFOKOREA

160 INFOKOREA_1(4교).indd 32 2014-08-29 오전 9:33:47 150 140 130 120 110 100 90 80 70 60 50 40 30 20 10

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60 14 National Accounts and Gross Regional Domestic Product

GDP & GNI Table 14.1 GDP & GNI1) The GDP (Gross Domestic Product) is GDP GNI Per-capita GNI one of the indicators used to understand Billion won Billion dollars Billion won Billion dollars 10,000 won Dollars a country’s economic scale, and the per- 1970 2,775 8.1 2,812 8.2 9 255 capita GNI (Gross National Income) is an 1980 39,110 64 38,479 63 101 1,660 indicator used to measure the country’s 1990 191,383 270 191,284 270 446 6,303 living standard. The GDP is calculated 2000 603,236 534 600,159 531 1,277 11,292 by dividing the gross national income by 2001 651,415 505 649,899 504 1,372 10,631 population. In 2011, the GDP (nominal 2002 720,539 576 720,996 576 1,514 12,100 GDP) recorded 123,710 billion won, an 2003 767,114 644 767,771 644 1,604 13,460 increase of 5.4 percent from the previous 2004 826,893 722 829,327 725 1,726 15,082 year, and based on the U.S. dollar, the fig- 2005 865,241 845 864,427 844 1,796 17,531 ure was 1,116,400 million dollars, a 10.0 2006 908,744 951 910,134 953 1,882 19,691 percent year-on-year increase. This was 2007 975,013 1,049 976,814 1,051 2,010 21,632 influenced by the drop in the exchange 2008 1,026,452 931 1,034,115 938 2,113 19,161 rate. The per-capita GNI increased by 2009 1,065,037 834 1,069,783 838 2,175 17,041 $1,927 from the previous year ($20,562), 2010 1,173,275 1,015 1,174,753 1,016 2,378 20,562 to reach $22,489. 2011p) 1,237,128 1,116 1,240,504 1,120 2,492 22,489 Note: 1) Based on the current price of the year Source: The Bank of Korea 『National Accounts』 Economic Growth Rate and GDP Deflator Figure 14.1 Economic Growth Rate In 2011, even though construction invest- (%) 12 10 8.8 ment was poor and private consumption 8 7.2 6.3 4.6 5.2 5.1 and capital investment decreased, the real 6 4.0 GDP grew by 3.6 percent year on year 4 2 4.0 0.3 3.6 (6.3 percent in the previous year), because 2.8 2.3 0 of a high increase rate of export. In terms 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 of production, manufacturing maintained Source: The Bank of Korea 『National Accounts』 a robust growth thanks to an expansion of Table 14.2 Growth Rate by Sector of Economic Activity1) and GDP Deflator(2005 = 100) (%) exports, but the production of the agricul- 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 ture, fishery, and construction industries Economic growth rate 8.8 4.0 7.2 2.8 4.6 4.0 5.2 5.1 2.3 0.3 6.3 3.6 decreased. The growth rate of the service Agriculture, forestry and fishery 1.1 1.6 -2.2 -5.4 9.1 1.3 1.5 4.0 5.6 3.2 -4.4 -2.0 industry slowed down. Mining and manufacturing 17.2 2.4 8.7 5.4 9.9 6.1 8.0 7.1 2.8 -1.5 14.5 7.1 The increase rate of the GDP defla- Electricity, gas and water 13.1 7.2 7.8 3.9 6.9 7.4 4.1 3.8 6.2 4.1 4.3 2.9 tor recorded 1.7 percent, which was lower Construction -4.4 5.4 3.5 8.8 2.0 -0.3 2.2 2.6 -2.5 1.8 -2.7 -4.6 than the previous year’s figure (3.6 -per Service 6.7 4.7 8.0 1.7 2.0 4.0 4.4 5.1 2.8 1.2 3.9 2.6 cent), because the price-rise rate of ex- GDP Deflator2) 86.8 90.2 93.1 96.4 99.4 100.0 99.9 101.9 104.9 108.5 112.4 114.4 ported and domestically consumed goods Increase rate 1.0 3.9 3.2 3.6 3.0 0.7 -0.1 2.1 2.9 3.4 3.6 1.7 was lower than the price-rise rate of im- Note: 1) Based on chain price in 2005 ported goods. 2) GDP Deflator = (Nominal GDP/real GDP) ×100 Source: The Bank of Korea 『National Accounts』

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1) Table 14.3 National Wealth (Trillion won, %, Nominal net asset) National Wealth

2001 2011p) Ratio In 2011, the total value of national wealth As of the end of year 2007 2008 2009 2010 (A) Compo- (B) Compo- (B/A) sition sition (nominal) was 8,319 trillion won, which Total assets 3,576.4 100.0 6,676.7 6,994.5 7,439.3 7,879.7 8,318.7 100.0 2.3 is 2.3 times the value compared to that at Tangible the end of 2001 (3,574 trillion won). 1,684.1 47.1 2,721.7 3,017.5 3,217.0 3,462.9 3,645.7 43.8 2.2 fi xed assets In terms of assets, land and tangible- Produced Intangible assets 21.7 0.6 40.1 42.7 42.4 43.4 47.0 0.6 2.2 fi xed assets fi xed assets accounted for the majority, Inventories 236.7 6.6 354.7 422.1 454.2 507.2 566.9 6.8 2.4 with a share of 88.8 percent. The value of Land 1,466.2 41.0 3,324.7 3,264.6 3,458.1 3,568.4 3,744.0 45.0 2.6 land took up the biggest share, at 3,744 Non- produced Standing timber 12.4 0.3 21.4 23.1 26.7 34.8 37.2 0.4 3.0 trillion won (45.0 percent), followed by assets Subsoil assets 20.8 0.6 42.3 42.6 47.8 57.8 60.8 0.7 2.9 tangible fi xed assets, 3,646 trillion won Consumer durables 134.7 3.8 171.8 182.0 192.8 205.3 217.2 2.6 1.6 (43.8 percent); inventories, 567 trillion

Note: 1) Prices as of the end of the year Source: Statistics Korea 『National Wealth Statistics』 won (6.8 percent); consumer durables, 217 trillion won (2.6 percent); subsoil assets, 61 trillion won (0.7 percent); in- Table 14.4 Gross Savings Rate and Investment Rate1) (%) tangible fi xed assets, 47 trillion won (0.6 percent); and standing timber, 37 trillion 2004 2005 2006 2007 2008 2009 2010 2011p) Year-on-year increase (%p) won (0.4 percent). Gross savings rate 34.0 32.1 30.8 30.8 30.5 30.2 32.1 31.7 -0.4 Private 24.3 22.2 20.8 20.2 21.2 23.4 24.7 24.1 -0.6 Gross Savings Rate and Government 9.8 9.8 10.0 10.6 9.3 6.8 7.4 7.6 0.2 Investment Rate Total domestic The gross savings rate in 2011 recorded 29.9 29.8 29.7 29.5 31.0 26.2 29.6 29.4 -0.2 investment rate 31.7 percent, a decrease of 0.4 percent Independence of 113.7 107.6 103.8 104.6 98.4 115.4 108.5 107.7 -0.8 investment resources from the previous year (32.1 percent). The gross savings rate in the private sec- Note: 1) Based on current prices Source: The Bank of Korea 『National Accounts』 tor decreased by 0.6 percent from the previous year (24.7 percent) to 24.1 percent. Table 14.5 Gross National Disposable Income and Final Consumption Expenditures1) (Billion won) The gross savings rate in the government sector recorded 7.6 percent, 0.2 percent 2005 2006 2007 2008 2009 2010 2011p) Year-on-year higher than the previous year’s level (7.4 increase (%) Gross national percent). The gross domestic investment disposable 861,886.5 906,278.7 973,520.3 1,033,947.3 1,069,156.8 1,171,213.1 1,237,715.1 5.7 rate recorded 29.4 percent, a 0.2 percent income decrease year on year (29.6 percent in Final consumption 585,440.6 626,818.3 673,526.3 718,571.6 746,294.9 795,378.7 845,343.3 6.3 expenditures 2010), because of certain factors, includ- Private 465,430.5 494,917.6 530,264.1 561,627.5 575,970.2 616,982.6 654,857.7 6.1 ing a reduced investment in construction. Government 120,010.1 131,900.7 143,262.2 156,944.1 170,324.7 178,396.1 190,485.6 6.8 In 2011, the gross national disposable Note: 1) Based on current prices Source: The Bank of Korea 『National Accounts』 income (nominal) recorded 1,237.7 trillion won, an increase of 5.7 percent year on year, and fi nal consumption expenditures increased by 6.3 percent from the previous year. ©Yonhap News

The 2010 ASEM Summit in Brussels, Belgium

34 INFOKOREA

The 2014 G20 Finance Ministers and Central Bank Governors Meeting in Sydney, Australia

Gross Regional Domestic Product Table 14.6 Gross Regional Domestic Product1) (Billion won) The gross regional domestic product 2006 2007 2008 2009 2010 2011p) (nominal) of 16 cities and provinces in Year-on-year Composi- increase (%) tion(%) Korea in 2011 was 1,243 trillion won, Entire country 912,925.6 983,030.3 1,028,500.5 1,065,664.6 1,172,742.2 1,242,903.8 6.0 100.0 an increase of 70 trillion won (6.0 per- Seoul 220,134.6 236,516.7 248,383.2 257,598.0 271,649.4 283,651.3 4.4 22.8 cent) from the previous year. By city and Busan 49,433.6 52,679.5 56,182.3 55,525.7 59,531.0 62,691.5 5.3 5.0 province, Seoul took the largest share at Daegu 30,243.7 32,260.9 32,714.3 32,797.1 35,631.9 37,550.2 5.4 3.0 284 trillion won, followed by Gyeonggi- Incheon 43,311.0 47,779.9 47,827.3 50,255.6 56,856.9 59,294.6 4.3 4.8 do, at 243 trillion won. Jeju recorded the Gwangju 20,299.0 21,281.3 21,745.3 22,066.1 25,140.1 26,580.0 5.7 2.1 smallest share, at 11 trillion won. The Daejeon 20,802.4 22,185.8 23,218.1 24,211.4 26,412.7 27,991.9 6.0 2.3 proportion of the gross regional domes- Ulsan 43,214.3 48,059.4 52,408.2 51,270.8 59,159.6 69,113.5 16.8 5.6 tic product in the capital area (Seoul, Gyeonggi-do 180,852.0 193,657.7 198,948.4 208,296.1 232,428.7 243,031.7 4.6 19.6 Gyeonggi-do, and Incheon) was 47.1 per- Gangwon-do 24,133.0 25,989.4 26,310.6 27,348.5 28,828.9 30,284.9 5.1 2.4 cent, decreasing by 0.7 percent, from 47.8 Chungcheong- 27,997.4 30,000.7 30,104.8 32,175.4 36,233.2 38,520.7 6.3 3.1 percent in the previous year. buk-do Chungcheong- 51,361.3 55,148.4 57,974.0 65,133.8 76,353.8 84,928.0 11.2 6.8 If examining the change rate by nam-do city and province, Ulsan (16.8 percent), Jeollabuk-do 26,488.0 28,586.5 29,471.3 31,855.0 34,643.1 38,086.8 9.9 3.1 Chungcheongnam-do (11.2 percent), and Jeollanam-do 42,181.5 47,021.5 52,387.3 51,047.7 58,750.2 62,589.1 6.5 5.0 Jellabuk-do (9.9 percent) showed increase Gyeongsang- 62,642.8 63,969.3 67,712.0 69,222.7 78,313.5 81,005.9 3.4 6.5 rates higher than the nationwide average buk-do Gyeongsang- (6.0 percent). However, Gyeongsangbuk- 61,735.1 69,157.2 74,280.3 77,213.1 82,340.6 86,454.8 5.0 7.0 nam-do do (3.4 percent), Incheon (4.3 percent), Jeju special and Seoul (4.4 percent) recorded increase self-governing 8,096.0 8,735.9 8,833.0 9,647.8 10,468.7 11,129.0 6.3 0.9 province rates lower than the average. Note: 1) Based on current prices Source: Statistics Korea 『Regional Income Statistics』

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15 Health and Social Security

Recipients of National Basic Livelihood Security Welfare Institutions for the Aged and Their Residents Benefi t and Total Expenditure As medical technology develops and people become more con- The number of recipients for the national basic livelihood security scious of their health, the average lifespan of the Korean people benefi t in 2011 was 1,469,000, a decrease of 81,000 (-5.2 percent) has increased, resulting in a constant increase in the population year on year. The number of general recipients was 1,380,000. over the age of 65. There were 89,000 institutionalized recipients. The number of welfare facilities for the elderly at the end The coverage rate of the national basic livelihood security of 2011 was 4,469, increasing by 7.7 percent year on year. The benefi t, which refers to the proportion of Korean people who re- number of residential welfare institutions for the elderly was 390, ceive national basic livelihood benefi ts, was 2.9 percent in 2011. increasing by 4.0 percent from the previous year. The number The total amount paid to recipients of the national basic live- of medical welfare institutions for the elderly was 4,079, an 8.1 lihood security benefi t in 2011 was 4,170 billion won, a 0.5 per- percent increase year on year. cent increase over the previous year, which was 1.3 times higher

than the number in 2006. Among total benefi ts, 96.0 percent was Figure 15.1 Number of Residential Welfare Institutions for the Elderly

given to general recipients and the remaining 4.0 percent was (Establishments) paid to institutionalized recipients. 5,000 Total number of institutions 4,150 4,469 In 2011, the minimum cost of living for four-person house- Residential welfare institutions for the elderly 4,000 Medical welfare institutions for the elderly holds was 1,439,000 won, an increase of 5.6 percent from 2010, 3,775 4,079 which was 1.2 times higher than 1,170,000 won in 2006. 2,992 3,000 2,081 2,651 2,000 1,498 1,166 1,754 Table 15.1 Total Recipients of National Basic Livelihood Security Benefi t and Total Expenditure (1,000 people, Billion won, %) 1,000 1,114 815 315 384 327 341 375 390 2004 2005 2006 2007 2008 2009 2010 2011 0 Number of total 1,424 1,513 1,535 1,550 1,530 1,569 1,550 1,469 2006 2007 2008 2009 2010 2011 recipients Source: Ministry of Health and Welfare 『Ministry of Health and Welfare Book』 (Change rate) (3.6) (6.3) (1.4) (1.0) (-1.3) (2.5) (-1.2) (-5.2) Rate of recipients 3.0 3.1 3.2 3.2 3.1 3.2 3.2 2.9 General recipients 1,338 1,426 1,450 1,463 1,444 1,483 1,458 1,380 Institutionalized 86 88 85 87 86 86 92 89 recipients Total benefi ts 2,366 2,818 3,176 3,438 3,676 3,923 3,998 4,017 (Change rate) (12.2) (19.1) (12.7) (8.3) (6.9) (6.7) (1.9) (0.5) General benefi ts 2,270 2,711 3,059 3,313 3,536 3,791 3,854 3,856 Benefi ts to 96 108 117 125 140 132 144 161 institutions Minimum cost of living 1,055 1,136 1,170 1,206 1,266 1,327 1,363 1,439 (1,000 won) (Change rate) 3.5 7.7 3.0 3.0 5.0 4.8 2.75 5.6 A ceremony for the ©Yonhap News Note: Coverage rate= Number of national basic livelihood security benefi t recipients/Projected launch of a support population×100, Minimum cost of living = for 4-person households Total benefi ts are from government expenses and local expenses, and they include benefi ts corps that works with a for livelihood, housing, education, childbirth, and funeral. Senior Welfare Service Source: 『Ministry of Health and Welfare Year Book』 Center

36 INFOKOREA

A Healthy Neighbor Center offering medical support to multicultural families

Table 15.2 Welfare Institutions for the Aged and Their Residents (People, Establishment)

Total number of Facilities of residential welfare institution for the elderly Medical welfare facilities for the elderly Population over 651) establishments Number of facilities Residents Number of facilities Residents 2006 4,592,367 1,166 351 8,829 815 32,314 2007 4,827,514 1,498 384 9,402 1,114 40,630 2008 5,052,155 2,081 327 8,345 1,754 59,331 2009 5,255,835 2,992 341 8,069 2,651 71,369 2010 5,452,490 4,150 375 9,019 3,775 94,110 2011 5,655,990 4,469 390 9,478 4,079 103,973

Year-on-year increase (%) 3.7 7.7 4.0 5.1 8.1 10..5

Note: 1) Based on population projections (medium-level scenario) Source: Statistics Korea 『Population Projections』, Ministry of Health and Welfare 『Ministry of Health and Welfare Year Book』

Children Welfare Institutions and Their Residents Table 15.3 Children Welfare Institutions Up- Care Self- Children welfare institutions include bringing-up institutions, Vocational Temporary Total1) bring- treat- independence training protection vocational training institutions, care-treatment institutions, self- ing ment assistance Number of independence assistance institutions, temporary protection insti- 282 243 3 8 13 13 facilities tutions, and comprehensive-welfare institutions. As of the end of 2007 Number of resi- 18,426 17,161 72 404 269 365 2011, 16,523 children were under protection at 280 institutions. dents (people) Number of 285 242 2 10 12 14 facilities 2008 Number of resi- 17,992 16,706 69 477 257 341 Figure 15.2 Number of Children Welfare Institutions (2011) dents (people) Number of 280 239 2 11 12 13 facilities Care treatment 3.6% 2009 Number of resi- 17,586 16,239 65 514 262 368 Temporary protection 4.3% dents (people) Number of 280 238 2 11 12 14 Self-independence as- facilities sistance 4.3% 2010 Number of resi- Upbringing 17,119 15,787 69 495 235 402 86.4% Vocational training· dents (people) comprehensive care Number of 280 242 1 10 12 12 1.4% facilities 2011 Number of resi- 16,523 15,313 32 455 249 361 dents (people)

Note: 1) Child welfare facilities include upbringing institutions, vocational training institutions, care treatment institutions, self-independence assistance facilities, temporary protection facilities, and comprehensive-welfare facilities. Source: Ministry of Health and Welfare 『Ministry of Health & Welfare』 Source: Ministry of Health & Welfare 『Ministry of Health and Welfare Yearbook』

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16 Environment

Air Quality in Major Cities Figure 16.1 PM-10 Level in Major Cities (㎍/m3) Under Korea’s Clean Air Conservation Act, a total of 61 sub- 80 stances, including gas-phase contaminants, such as SO2, CO, 2010 2011 NO2, which includes offensive odor substances, and particle- 70 phase contaminants, such as dust, are designated as air pollution substances. Among them, 35 types of pollutants, including cad- 60 mium, are designated as specific air pollutants to be controlled. 55 55 51 49 49 The city atmosphere measuring network was established to mea- 50 49 47 47 47 48 sure the average air quality concentration in metropolitan areas 45 43 44 44 to judge whether the air quality meets environmental standards. 40 Currently, the environmental standard substances are measured at

239 locations in 72 cities and counties across the nation. 30 Seoul Busan Daegu Incheon Gwangju Daejeon Ulsan Sulfur dioxide (SO2) concentration, generally, has been on a constant decrease in seven major cities for the past 20 years. It Source: Ministry of Health and Welfare 『Ministry of Health and Welfare Book』 reached the range of 0.003-0.008 parts per million (ppm) in 2011. Table 16.1 Air Quality in Major Cities This decrease is thought to be attributed to the government’s con- SO (ppm) O (ppm) NO (ppm) PM-10( /m3) sistent fuel control policies, including the expansion of a supply 2 3 2 ㎍ of clean fuel-like low-sulfur oil and LNG, as well as enhancing 2010 2011 2010 2011 2010 2011 2010 2011 Air quality 0.02 0.061) 0.03 50 emission regulations. standard Nitrogen dioxide (NO2) concentration has increased slight- Seoul 0.005 0.005 0.019 0.019 0.034 0.033 49 47 ly since 1990 in Busan, Daegu, and Gwangju. In terms of annu- Busan 0.006 0.006 0.026 0.027 0.021 0.020 49 47 al change, however, a rise or decline in the concentration value Daegu 0.005 0.005 0.022 0.025 0.025 0.024 51 47 has not demonstrated a clear trend. So the NO2 value is showing Incheon 0.007 0.007 0.021 0.022 0.030 0.030 55 55 a tendency to stabilize. In Seoul and Incheon, NO2 concentration Gwangju 0.004 0.003 0.024 0.026 0.020 0.019 45 43 showed a slight increase. In 2011, also, the annual average NO2 Daejeon 0.004 0.004 0.021 0.022 0.023 0.021 44 44 concentration posted its highest level of 0.033 ppm in Seoul, where Ulsan 0.008 0.008 0.023 0.025 0.023 0.023 48 49

the number of registered cars and traffic volume is the highest. NO2 Note: 1) Average for eight hours Source: Ministry of Environment, National Institute of Environmental Research concentration in Gwangju recorded the lowest level, at 0.019 ppm. 『Annual Report of Air Quality in Korea』 The annual average concentration of Ozone (O3) has shown a constant increase from 1991 to 2011. O3 concentration is af- Water Quality of Major Water Supply Sources fected not only by pollutant emission, but also by weather factors, In relation to the water quality standard, according to the biologi- such as temperature, precipitation, diffusion of pollutants, and at- cal oxygen demand (BOD) of rivers and lakes, 1 milligram (mg) mospheric stability. For a more precise analysis, studies on the or lower BOD per 1 liter is classified as the first grade, and 3 mil- relationship between those factors and O3 should be conducted. ligrams or lower BOD is considered the second grade water sup- The annual average particulate matter (PM-10) concentra- ply source. Second-grade water is not potable without treatment, tion has been measured since 1995, and it has generally been on a but it is clean and odorless. slight decline. The annual average PM-10 concentration in 2011 Relating to the water contamination level of major water was the highest in Incheon at 55 microgram per cubic meter (㎍/ supply sources as of 2011, Paldang Dam recorded 1.1 milligrams m3), followed by 49 ㎍/m3 in Ulsan; 47 ㎍/m3 in Seoul Busan, and per 1 liter; Mulgeum, 1.5 milligrams; Daecheong Dam, 1.0 mil- Daegu, and 43 ㎍/m3 in Gwangju. ligrams; and Damyang, 1.8 milligrams per 1 liter.

38 INFOKOREA

INFOKOREA_1(4교).indd 38 2014-08-29 오전 9:33:57 Figure 16.2 Water Quality of Major Water Supply Sources (BOD) 49,159 tons per day, a 3.4 percent decrease from the previous (mg/L) year. The amount had been on the increase until 2008. In 2009, it 5 Paldang Dam Daecheong Dam began decreasing. Mulgeum Damyang In 2010, the amount of industrial waste recorded 137,875 4 tons per day, increasing by 11.5 percent year on year. The reason

3.0 for the rise could be the increase in the amount of slag. 3 2.7 2.8 2.6 2.6 2.6 2.6 2.4 2.4 The amount of construction waste generated in 2010 was 2.1 178,120 tons per day, decreasing by 2.9 percent from the previ- 1.8 2 1.7 1.6 1.5 1.5 1.5 ous year. 1.3 1.4 1.4 1.3 1.3 1.3 1.5 1.3 1.2 1.0 1.0 1.1 1.2 1.2 1.2 1.1 1 1.0 1.0 1.11.1 1.01.01.01.01.0 Disposal of General Waste 0.80.8 The rate of domestic waste recycling had posted a consistent in- 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 crease every year, but, in 2010, began to decline slightly. The

Source: Ministry of Environment recycling rate was 60.5 percent, decreasing by 0.6 percent year on year. The thermal treatment rate increased by 1.3 percent, from Table 16.2 Water Quality of Major Water Supply Sources (Biological Oxygen Demand: BOD) (mg/L) 20.3 percent, to 21.6 percent. The landfill rate decreased by 0.7 percent to 17.9 percent, and has shown a consistent decline every 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 year. Paldang 1.3 1.4 1.3 1.3 1.1 1.2 1.2 1.3 1.3 1.2 1.1 Dam For industrial facilities’ waste, the rate of treatment by re- Mulgeum 3.0 2.6 2.1 2.6 2.6 2.7 2.6 2.4 2.8 2.4 1.5 cycling increased slightly. The rate of landfill treatment in 2010 Daecheong 1.0 1.0 1.1 1.0 1.1 1.1 1.0 1.0 1.0 1.0 1.0 recorded a 16.9 percent, decreasing by 5.4 percent, from 22.3 Dam percent, in the previous year, while the rate of recycling recorded Damyang 0.8 0.8 1.0 1.2 1.5 1.4 1.5 1.5 1.7 1.6 1.8 72.3 percent. Thermal treatment recorded 5.8 percent, increasing Source: Ministry of Environment by 0.2 percent from 5.6 percent in the previous year. The recycling rate of construction waste has shown a con- Generation of Waste sistent increase every year, while the landfill rate had a tendency The total amount of waste (excluding specified waste) generated to decline. The thermal treatment rate decreased slightly in 2010, in 2010 was 365,154 tons per day, increasing by 2.0 percent year after maintaining a similar level since 2005. The recycling rate on year. In terms of waste composition, domestic waste was 13.5 in 2010 was 98.3 percent, showing a 0.5 percent increase year- percent; industrial facilities’ waste was 37.8 percent; and con- on-year. The rate of thermal treatment had a 0.2 percent decrease struction waste was 48.8 percent. year on year, to 0.5 percent. The landfill rate declined to 1.2 per- The amount of domestic waste generated in 2010 recorded cent from 1.5 percent, giving it a tendency to decline every year.

Table 16.3 Amount of Generated Waste (Tons per day) Table 16.4 Disposal of General Waste (%)

Domestic Industrial facilities Construction Specified Total Industrial Construc- Dis- Domestic1) waste Dis- facilities2) tion Ther- Ther- Ther- charge charge Land- mal Recy- Land- mal Recy- Land- mal Recy- of of 2001 252,927 48,499 95,908 108,520 8,105 fill treat- cling fill treat- cling fill treat- cling waste waste ment ment ment at 2002 269,548 49,902 99,505 120,141 7,985 at sea sea1) 2003 295,047 50,736 98,891 145,420 7,981 2001 43.3 13.6 43.1 19.3 8.2 64.4 8.1 11.9 2.3 85.8 - 2004 303,514 50,007 105,018 148,489 8,152 2002 41.5 14.5 44.0 15.5 7.1 67.8 9.6 14.5 2.0 83.4 0.007 2005 295,723 48,398 112,419 134,906 8,635 2003 40.3 14.5 45.2 14.4 7.8 67.5 10.3 9.4 1.5 89.0 0.007 2006 318,928 48,844 101,099 168,985 10,026 2004 36.4 14.4 49.2 13.0 6.7 69.7 10.6 7.4 2.0 90.6 0.005 2007 337,158 50,346 114,807 172,005 9,511 2005 27.7 16.0 56.3 14.8 6.5 68.4 10.3 2.6 0.6 96.7 0.069 2008 359,296 52,072 130,777 176,447 9,594 2006 25.8 17.0 57.2 8.8 7.6 74.0 9.6 2.3 0.7 97.0 - 2009 357,861 50,906 123,604 183,351 9,060 2007 23.6 18.6 57.8 19.6 6.5 66.9 7.0 1.8 0.7 97.5 - 2010 365,154 49,159 137,875 178,120 9,488 2008 20.3 19.9 59.8 18.6 5.3 70.8 5.3 1.7 0.8 97.5 - Year-on-year 2.0 -3.4 11.5 -2.9 4.7 2009 18.6 20.3 61.1 22.3 5.6 66.5 5.6 1.5 0.7 97.8 - increase (%) 2010 17.9 21.6 60.5 16.9 5.8 72.3 5.0 1.2 0.5 98.3 - Note: 1) Domestic waste includes waste from homes, daily life-related waste from industries and daily life-related waste from construction sites Note: 1) The rate of discharge of construction waste at sea (%) is low, so it is excluded from the 2) Industrial facilities’ waste excludes specified waste table. Source: Ministry of Environment, National Institute of Environmental Research Source: Ministry of Environment, National Institute of Environmental Research 『Generation & 『Generation & Treatment of Waste』, 『Generation & Treatment of Specified Waste』 Treatment of Waste』

STATISTICS 39

INFOKOREA_1(4교).indd 39 2014-08-29 오전 9:33:57 STATISTICS

17 Education, Culture and Science

Number of Students per Class and Number of had increased every year, but started to decrease in 2010. Students per Teacher The employment rate of junior college graduates and univer- The number of students per class and the number of students sity graduates in 2012 increased slightly to 60.8 percent and 56.2 per teacher are important indicators to understand the standard percent, respectively. of education conditions in the country. The number of students

per class in 2012 was 24.3 in elementary schools; 32.4 in middle Table 17.2 College Entrance Rate1) and College Graduate Employment Rate2) schools; and 32.5 in high schools, recording a consistent decrease (%, People) every year. The number of students per teacher in elementary College entrance rate (high school → institutions of Junior college University schools was 16.3; middle schools, 16.7; and high schools, 14.4. higher education) Employ- Employ- These numbers show a decline as well. The number of students General Vocational Graduates Graduates ment rate ment rate per teacher at universities also decreased to 33.9. 2005 88.3 67.6 228,336 83.7 268,833 65.0 The proportion of the budget for the Ministry of Education, 2006 87.5 71.9 222,973 84.2 270,546 67.3 Science, and Technology in the entire government’s budget in 2012 2007 87.1 71.5 215,040 85.2 277,858 68.0 was 17.6 percent, increasing by 0.5 percent from the previous year. 2008 87.9 72.9 207,741 85.6 282,670 68.9 2009 84.9 73.5 199,421 86.5 279,059 68.2 Table 17.1 Number of Students per Class and Number of Students per Teacher (%, People) 2010 81.5 71.1 190,033 55.6 279,603 51.9 2011 75.2 63.7 188,216 60.7 293,967 54.5 Proportion of Elementary Univer- Middle school High school education min- school sity 2012 76.2 54.9 188,468 60.8 298,727 56.2 istry’s budget1) in government Per Per Per Per Per Per Per Note: 1) College entrance rate = (number of students who advanced to higher education among budget2) class teacher class teacher class teacher teacher graduates of a year/graduates of the year) × 100 2) Employment rate = (employees/people to get employed) × 100 2005 20.8 31.8 25.1 35.3 19.4 32.7 15.1 37.8 ※Employees: Until 2009: regular workers + nonregular workers + self-employed persons From 2010: Workers covered by national health insurance for corporations (from 2010) + 2006 20.1 30.9 24.0 35.3 19.4 32.5 15.1 36.4 overseas workers (from 2011) + agricultural workers (from 2012) ※People to get employed: Until 2009: graduates - (People advancing to higher education + men 2007 19.8 30.2 22.9 35.0 19.1 33.1 15.3 36.4 enlisted in the army + people who cannot get employed + foreign students studying in Korea) 2008 19.6 29.2 21.3 34.7 18.8 33.7 15.5 35.8 From 2010: graduates-(people advancing to higher education + men enlisted in the army + people who cannot get employed + foreign students studying in Korea + people 2009 18.0 27.8 19.8 34.4 18.4 34.2 15.7 36.4 recognized as an exception case) Source: Ministry of Education, Science, and Technology, Korean Educational Development 2010 19.6 26.6 18.7 33.8 18.2 33.7 15.5 36.2 Institute 『Statistical Yearbook of Education』, 『Brief Statistics on Korean Education』 2011 17.1 25.5 17.3 33.0 17.3 33.1 14.8 35.5 2012 17.6 24.3 16.3 32.4 16.7 32.5 14.4 33.9 Research and Development Investment Note: 1) Education Ministry’s budget = general accounts + special accounts The total research and development (R&D) expenditure of Korea 2) (~2004) Government budget = general accounts + special accounts for local grant management + special accounts for local education grant in 2011 was 49,890,400 billion won, an increase of 6,356,000 (2005~) Government budget= general accounts + special accounts Source: Ministry of Education, Science, and Technology, Korea Education Development billion won from the previous year (13.8 percent). The propor- Institute 『Statistical Yearbook of Education』 tion of R&D investment in the GDP was 4.03 percent, increasing by 0.29 percent from the previous year (3.74 percent). Globally, College Entrance Rate and Employment Rate Korea is ranked sixth in R&D investment, with $45,016 million, The college entrance rate for high school graduates in 2012 was but second in the ratio of R&D expenditure to the GDP. 76.2 percent for general high schools, and 54.9 percent for voca- In 2011, the amount of R&D expenditures from the gov- tional high schools. This shows that the number of high school ernment and public financial resources was 13,003,300 million graduates who advanced to a higher level of education is larger won. The ratio of R&D expenditures financed from the gov- than the number of high school graduates who get employed after ernment-public sector to R&D expenditures financed from the graduation. The college entrance rate for vocational high schools private∙foreign sector was 26:74. By the R&D stage, the expendi-

40 INFOKOREA

INFOKOREA_1(4교).indd 40 2014-08-29 오전 9:33:57 ture for basic R&D was 9,013,200 million won, and took up 18.1 In terms of composition of registered intellectual property percent of the total R&D expenditure. rights, patent registrations took up 44.3 percent; followed by utility model registrations, 2.7 percent; design registrations, 19.7

Table 17.3 R&D Investment (Billion won, %) percent; and trademark registrations, 33.3 percent.

By source By stage R&D R&D Govern- expen- Table 17.5 Intellectual Property Right Registration (Case) expen- Devel- ment/ Private Foreign Basic Applied diture diture opment Public to GDP Total Patents Utility models Designs Trademarks 1995 9,441 24.2 75.7 0.01 12.5 25.0 62.5 2.30 1990 54,325 7,762 8,846 13,927 23,790 2000 13,849 27.6 72.4 0.06 12.6 24.3 63.1 2.30 1995 67,458 12,512 8,149 16,986 29,811 2005 24,155 24.3 75.0 0.71 15.3 20.8 63.8 2.79 2000 126,395 34,956 41,745 18,845 30,849 2006 27,346 24.3 75.4 0.30 15.2 19.9 65.0 3.01 2005 198,094 73,512 32,716 33,993 57,873 2007 31,301 26.1 73.7 0.22 15.7 19.8 64.4 3.21 2006 250,557 120,790 29,736 34,206 65,825 2008 34,498 26.8 72.9 0.31 16.1 19.6 64.3 3.36 2007 227,606 123,705 2,795 40,745 60,361 2009 37,929 28.7 71.1 0.21 18.1 20.0 62.0 3.56 2008 193,939 83,523 4,975 39,858 65,583 2010 43,855 28.0 71.8 0.22 18.2 19.9 61.8 3.74 2009 145,927 56,732 3,949 32,091 53,155 2011 49,890 26.1 73.7 0.22 18.1 20.3 61.7 4.03 2010 159,977 68,843 4,301 33,697 53,136 Year- 2011 214,013 94,720 5,853 42,185 71,255 on-year 13.8 -1.9%p 1.9%p 0.00%p -0.1%p 0.4%p -0.1%p 0.29%p Composition (%) 100.0 44.3 2.7 19.7 33.3 increase (rate) Source: Korea Intellectual Property Office『 Intellectual Property Statistics』

Source: Ministry of Education, Science, and Technology, Korea Institute of Science and Tech- nology Evaluation and Planning 『Survey of Research and Development in Korea』 Tourism Balance In 2011, the number of visitor arrivals posted a 11.3 percent in- Research and Development Manpower crease year-on-year to reach 9,800,000. The number has consis- In total R&D manpower in 2011, the number of personnel engaged tently increased for the past 10 years, except in 2003 when the in R&D was 531,131, increasing by 6.2 percent year on year. SARS epidemic spread across the country. Since 2009, the num- Among that number, there were 375,176 researchers, an increase of ber has posted a double-digit growth rate. Visitors have been en- 8.5 percent from the previous year. By sector of performance, the ticed by sightseeing and shopping because, since 2008, the won number of researchers working for business enterprises increased had been rather weak. Also, the world had started to learn more by the biggest margin, 10.8 percent. This was followed by public about Korean culture. The number of Korean departures in the research institutes (9.8 percent) and universities and colleges (2.4 year increased only slightly, 1.6 percent, to 12,690,000, because percent). Meanwhile, the proportion of doctors in total research of a consistently weakened won, an unstable global economy, and was 22.6 percent, a decrease of 0.9 percent from the previous year. an avoidance of travel to Japan because of radioactive risks. In 2011, the tourism balance recorded a $3,100 million defi- Table 17.4 R&D Manpower (People) cit. In detail, tourism receipts increased by 20.1 percent year on year, while tourism expenditures rose by 8.8 percent from the pre- Total person- Number by sector of performance nel engaged Research- Universi- Business vious year to reach $15,500 million. Doctors Research in R&D ers ties and enter- (%) Institutes activities colleges prises 1995 201,661 128,315 27.4 15,007 44,683 68,625 Table 17.6 Tourism Balance (million dollars, People) 2005 Margin Tourism 335,428 234,702 24.7 15,501 64,895 154,306 Korean1) Visitor (Korean depar- balance2) Tourism depar- Tourism 2006 365,794 256,598 23.4 16,771 65,923 173,904 arrivals tures-visitor (receipts-ex- expen- tures receipts 2007 421,549 289,098 25.4 20,342 83,123 185,633 arrivals) penditures) ditures 2003 2008 436,228 300,050 24.5 20,950 82,077 197,023 4,753 7,086 2,333 -2,905 5,343 8,248 2004 5,818 8,826 3,008 -3,803 6,053 9,856 2009 466,824 323,175 23.7 24,318 88,554 210,303 2005 6,023 10,080 4,057 -6,232 5,793 12,025 2010 500,124 345,912 23.5 26,235 93,509 226,168 2006 6,155 11,610 5,455 -8,576 5,760 14,336 2011 531,131 375,176 22.6 28,800 95,750 250,626 2007 6,448 13,325 6,877 -10,857 6,094 16,950 Year- on-year 6.2 8.5 -0.9%p 9.8 2.4 10.8 2008 6,891 11,996 5,105 -4,862 9,719 14,581 increase (%) 2009 7,818 9,494 1,676 -1,258 9,782 11,040

Source: Ministry of Education, Science and Technology, Korea Institute of S&T Evaluation and 2010 8,798 12,488 3,690 -3,970 10,321 14,292 Planning 『Survey of Research and Development in Korea』 2011 9,795 12,694 2,899 -3,147 12,397 15,544 Year-on-year 11.3 1.6 - - 20.1 8.8 increase (%) Registration of Intellectual Property Rights Note: 1) Includes crew members In 2011, a total of 214,013 intellectual property rights were regis- 2) Excluding expense of students studying overseas Source: Ministry of Culture, Sports & Tourism, Korea Tourism Organization tered, an increase of 33.8 percent from the previous year. 『Korea Statistical Report on Tourism Interim』

STATISTICS 41

South Korean students An Understanding

Written by PARK Jong Hyo of Korean (Konkuk University) Middle and High Schools

42 INFOKOREA

INFOKOREA_2(4교).indd 42 2014-08-29 오전 9:33:34 Korea’s middle and high school education is famous all around fundamental statistical fi gures regarding the schools and their the world. Korea is one of the countries that consistently rank students, as well as introducing fi gures regarding educational cir- among the top in PISA (Program for International Student As- cumstances and performance from Korea and abroad. sessment tests) administered to students at age 15. Furthermore, Major statistics and indicators featured in this paper are de- most Korean students intend to pursue university education, and, rived from educational statistics available from the Ministry of to that end, devote much of their time after school, on the week- Education, KEDI (Korean Educational Development Institute) ends, and during vacations from middle school onwards. and the OECD. All statistics and fi gures are from the latest data. ©Yonhap News The purpose of this report is to facilitate understanding re- The educational statistics studies are from 2013 and the OECD garding Korean middle and high schools and students. It provides educational indicators were published in 2013.

1. Middle Schools “Middle school” refers to an institute that educates students from National schools are operated by the Ministry of Education age 12 to 14 for three years after graduating from elementary (central government) and public schools are operated by the met- school and before entering high school. Since elementary and ropolitan or provincial offi ces of education. Private schools are middle school education is mandatory in Korea, all students grad- run by licensed private corporations and are supervised by the uating from elementary school enter middle school. Students are metropolitan or provincial offi ces of education. assigned to middle schools according to geographical proximity, In 1970, the total number of middle school students was although there are a few special-purpose middle schools. 1,318,808, and that number peaked in 1980 at 2,471,997 students. Special-purpose middle schools include international middle Since then, it has steadily decreased to 1,804,189 as of 2013. The schools and arts-related middle schools. The most signifi cant dif- major cause for this decline is low birthrate. ference between middle and elementary school is the specializa- ©Yonhap News tion of teachers by academic subject, as well as the fact that class time with the homeroom teacher is greatly reduced. The number of middle schools has steadily increased since 1980, and in 2013, the total count reached 3,173 schools, with the opening of 11 new schools since last year. There are a total of 1,804,189 students, showing a decrease of 44,905 students since last year. In 2013, there were 3,173 middle schools, and among them 9 were national, 2,520 were public, and 644 private. The total number of students was 1,804,189, and, among them, 5,764 went to national schools, 1,479,595 to public schools and 318,830 to pri- ©Yonhap News vate schools. The total number of teachers at middle schools was 112,690, with 406 of them working for national schools, 92,991 for public schools, and 19,293 for private schools. A scene from a middle school class

Figure 1 Trends in Number of Middle Schools in Korea Figure 2 Trends in Number of Middle School Students in Korea

3,500 3,000,000 3,077 3,130 3,162 2,999 2,471,997 3,000 2,731 3,173 3,032 3,106 3,153 2,500,000 2,275,751 2,935 2,474 2,063,159 2,010,704 2,006,972 2,500 2,683 1,910,572 2,100 2,000,000 1,804,189 2,075,311 2,038,611 2,371 1,974.798 2,000 1,860,529 1,849,094 1,500,000 1,500 1,608 1,318,808 1,000,000 1,000

500 500,000

0 0 1970 1980 1985 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 1970 1980 1990 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013

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Figure 3 Trends in Number of High Schools 2. High Schools Demand for high schools increased incrementally, following in- 2,500 2,322 2,225 2,253 2,282 2,303 2,159 2,190 stitution of the test-free entrance policy in 1968. Starting in the 2,095 2,144 1,957 1970s, the number of high school students increased rapidly. In 2,000 1,683 1965, there was little difference in the number of public and na- 1,534 1,561 1,437 1,457 1,493 1,353 1,382 tional schools and private schools, but from then on the num- 1,193 Total 1,500 ber of students enrolled in private schools started growing much 1,096 General 889 faster than the number of students enrolled in public schools. Stu- Vocational 748 dents in private schools continued to outnumber those in public 500 481 764 713 707 702 697 691 692 schools until the 2000s, when the number of students in public 605 587 408 schools became higher. 0 As of 2013, there are a total of 2,322 high schools, with the 1970 1980 1990 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 addition of 19 new high schools. There are a total of 1,893,303 high school students, showing a decrease of 26,784 students since Figure 4 Trends in Number of High Schools by Category last year.

1,800 Among the total of 2,322 high schools, 19 are national, 1,355 1,554 2011 1,600 1,525 public and 948 private. Of the 1,893,303 students, 14,337 attend 2012 1,529 national schools, 1,053,424 attend public schools, and 825,542 1,400 2013 attend private schools. There are 133,414 teachers, with 1,223 1,200 working for national schools, 77,660 for public schools and 1,000 54,531 for private schools. 800 Although there were only 889 high schools in 1970, the num- 600 499 494 ber increased steadily every year to reach 2,322 as of 2013. High 400 499 schools serve the purpose of carrying out secondary education and 200 165 120 138 109 basic vocational education as a continuation of the middle school 128 147 0 curriculum. From liberation onwards, Korea’s high schools were General Special-purpose Specialized Autonomous generally categorized as either general or vocational. Starting from 2011, the number of categories has grown to Figure 5 Trends in Number of High School Students include the following four: general high schools, vocational high 2,500,000 schools (now called specialized schools), special-purpose high 2,283,806 2,071,468 schools, and autonomous high schools. Special-purpose high 1,965,792 1,943,798 2,000,000 1,841,374 1,893,303 schools are schools designed to meet special educational goals 1,762,896 1,962,356 1,696,792 1,906,978 1,920,087 and include science high schools, foreign language high schools, 1,473,155 1,775,857 1,484,966 1,500,000 1,347,363 1,259,792 and arts high schools. These schools serve the purpose of nurtur- 1,419,486 1,496,227 Total 1,324,482 1,281,508 General ing students gifted in science, foreign languages, or arts. Special- 1,000,000 932,605 810,651 746,986 Vocational ized schools are what was previously referred to as ‘vocational 590,382 764,187 494,349 487,492 high schools’ and dedicate much of the educational curriculum to 500,000 466,129 315,367 503,104 494,011 480,826 vocational training. Autonomous high schools are schools among 275,015 general public or private high schools that are granted autono- 0 1970 1980 1990 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 my over the implementation of their educational curriculum and serve the purpose of extending the range of choices in schools for students and parents. Figure 6 Trends in Number of Students by High School Category (2011-2013) As of 2012, there are 1,529 general high schools – 11 are 1,600,000 national, 875 public, and 643 public. The total number of students 1,425,882 2011 1,400,000 1,356,070 2012 is 1,381,130, with 9,596 attending national schools, 763,668 at- 1,381,130 1,200,000 2013 tending public schools and 607,866 attending private schools. There are 89,538 educational faculty and staff, with 636 working 1,000,000 for national schools, 51,125 for public schools, and 37,777 for 800,000 private schools. 600,000 There are 128 special purpose high schools – 8 are national,

400,000 340,277 320,374 82 are public, and 38 are private. Special purpose high schools ac- 330,797 count for 64,468 students, with 4,874 attending national schools, 200,000 113,962 149,760 63,727 67,099 143,692 28,452 attending public schools, and 31,142 attending private 0 64,468 General Special-purpose Specialized Autonomous schools.

44 INFOKOREA

High school students

There are 499 specialized high schools (vocational schools), and among them 283 are public, and 216 private. There are a total of 330,797 students attending these schools, 175,597 attending public schools, and 155,200 attending private schools. The num- ©Yonhap News ber of faculty is 27,283, with 15,410 working for public schools and 11,873 for private schools. There are 147 autonomous high schools, 97 of them public Students participate in a job fair. schools and 50 private schools. The total student count is 143,692, with 90,799 attending public schools, and 52,893 attending private schools. There are 9,843 people working as educational staff and faculty at these schools, with 6,412 working in public schools 3. Entrance, Advancement, and Employment Rates and 3,431 working in private schools. As of 2013, the entrance rate for middle schools is at 96.2%. En- The number of high school students has continuously in- trance rate is the ratio of the population aged 12-14 that is en- creased since 1965, and as of 2012, there are a total of 2,303 rolled in middle school. The ratio of advancement refers to the schools. In the 1960s and early 1970s, there were more public and ratio of students who matriculated among all the students that national schools, but in the middle to late 1970s, private schools graduated that year. The advancement rate from elementary started to outnumber their public counterparts. In the late 1990s, school to middle school is at 99.98%. The number of dropouts at public schools overtook private schools in number, with the the middle-school level is 16,426, and the dropout rate is 0.9%, founding of public and national high schools in new town areas. the term “dropout” referring to those who have deferred or who In 1970, the number of high school students was 590,382. have been exempted from education. The graduation rate at mid- The fi gure peaked at 2,283,806 before decreasing to the current dle school level is 98.7%. level of 1,893,303 in 2013. As with the number of middle school The entrance rate for high schools was at 20.3% in 1970, students, the principal factor behind this decrease is the low birth- steadily increasing to the current fi gure of 93.6% as of 2013. The rate. Trends in the number of high school students show vastly continuation rate from middle school to high school is 99.7%. different trajectories for each category. Even while the overall The dropout rate at the high-school level is 1.8%, with causes number of students has decreased, the number of students in gen- including illness, death in the family, maladjustment, moving eral high schools has been on the increase until very recently, and abroad, or expulsion due to disciplinary issues. The graduation the number of students in vocational high schools has steadily rate at high school level is at 95.1%. decreased since the beginning of the 2000s. The advancement rate of high school graduates has de- Similar trends can be identifi ed in the number of high school creased, while employment rates have increased, reinforcing the students by category since 2011. Specialized schools focusing on recent trend of employment-fi rst, matriculation-later. As of 2013, vocational training have seen decreases in their student count. the advancement rate to university is at 70.7%. This is a 0.6%p General high schools have also seen a slight decrease in student decrease since the previous year, carrying on a pattern of decrease number, with more of them transitioning into autonomous high for four years in a row. In comparison, the employment rate is at schools. 30.2%. This is a 0.9%p increase since last year, carrying on a pat-

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INFOKOREA_2(4교).indd 45 2014-08-29 오전 9:33:43 FOCUS

Figure 7 Advancement and Employment Rate of High School Graduates tern of increase for two years in a row.

(%) 90 Until 2010, the advancement rate was counted using univer-

80 sity acceptances, but starting in 2011, it is counted using registra- 77.8 tions. The advancement rates up until 2010 have been recounted 70 73.4 74.4 76.5 77.0 75.4 72.5 71.3 70.7 to be registration-based in this report for an accurate comparison. 60

50 52.3 4. Teachers’ Demographics 40 46.6 As of 2013, there are 112,690 middle school teachers, and among 36.5 30 35.9 them, 14.3% (16,142) are temporary teachers. By gender, 32.5% 29.3 30.2 20 27.6 25.9 Advancement 23.3 of middle school teachers are male, and 67.5% are female, 10 Employment with females outnumbering their counterparts by a factor of 2. 0 Although there are twice as many female teachers as there are 2005 2006 2007 2008 2009 2010 2011 2012 2013 male teachers, only 23.2% of administrative posts were held by females. However, the ratio of female administrators has been Figure 8 Ratio of Female Teachers in Middle and High Schools (2011) growing rapidly since 2005. The ratio of teachers with graduate- (%) 80 level education has also been steadily increasing, with 36.3% Korea OECD 68.8 67.5 with master’s degrees, and 1.0% with Ph.Ds. As of 2013, the current number of high school teachers is at 60 56.5 133,414, with 13.0% (17,401) of them being temporary teach- 46.7 ers. Males comprise 51.9% of teachers at high school level, and 40 females 48.1%, with males slightly outnumbering females in contrast to the elementary or middle school level. The female ratio

20 in administrative posts remains low at 9.2%. The ratio of faculty with graduate-level education has also increased steadily, with 38.3% holding master’s degrees and 1.9% holding Ph.Ds. 0 As of 2011, in Korea, females comprised 68.8% of middle Middle High school teachers, which is slightly higher than the OECD average of 67.5%. On the other hand, the females Figure 9 Number of Female Teachers in Administrative Positions (2013) comprised only 46.7% of high school 1,400 teachers, which is significantly lower than Middle the OECD average of 56.5%. 1,200 1,269 1,301 High 1,122 1,180 The total number of female admin- 1,000 1,099 istrative educational staff (i.e. assistant 988 800 907 principals and principals) is 5,676 (25.2% 817 729 of the total number of administrative 600 educational staff), with 1,301 work- 400 420 ing for middle schools (23.2%) and 420 381 313 352 working for high schools (9.2%). There 200 253 261 232 239 242 are twice as many as female teachers as 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 there are male teachers but only about a fourth of administrative posts were held by females. However, the ratio of female Figure 10 Age Distributions of Teachers (2011) administrators has been growing rapidly (%) 40 since 2005. 36.1 Middle (Korea) 35 32.6 Middle (OECD) The age distribution of middle and 31.5 30.7 29.0 High (Korea) high school teachers shows that teachers 27.6 28.6 25 27.2 27.4 High (OECD) 24.9 in Korea tend to be younger than those of 22.4 20 other OECD countries. More teachers in 17.8 Korea fell in the age group 40-49 than any 15 13.9 13.1 other age group, while the OECD average 11.3 10 9.1 8.4 shows that more middle school teachers 6.5 5 were in the 40-49 age group, and more 0.7 1.1 high school teachers were in the 50-59 0 under 30 years 30-39 years 40-49 years 50-59 years over 60 years age group than any other age group.

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INFOKOREA_2(4교).indd 46 2014-08-29 오전 9:33:44 5. Teachers’ Teaching and Figure 11 Teachers’ Net Teaching and Working Time in Hours (2011) Working hours, and Salaries (Hours) 1,800 The figures for hours of teaching and 1,680 1,680 Korea OECD hours of work for middle school teachers 1,600 are as follows: the number of weeks of 1,400 1,219 teaching is 40 weeks, the number of days 1,200 1,154 of teaching is 220 days, and the total num- 1,000 800 ber of statutory working hours is 1,680 709 664 621 609 hours, all of which exceed the OECD av- 600 erage (38 weeks, 185 days, 1,667 hours). 400 The net teaching time in hours for 200 0 middle school teachers was 621 hours Net Teaching Time Working Time Net Teaching Time Working Time which is lower than the OECD average of Middle High 709. Similarly, the net teaching time for high school teachers was 609 hours, lower Figure 12 Teachers’ Statutory Salaries (2011) than the OECD average of 664 hours. Be- (USD using PPPs) 60,000 cause of fewer class hours per day, Korean Korea OECD teachers’ net teaching time was lower than 50,000 48,146 48,146 the OECD average. However, for Korean 39,934 41,665 40,000 teachers, working time other than teach- 30,216 31,348 ing was much longer than for their OECD 30,000 27,476 27,476 counterparts. 20,000 The statutory salary for teachers at the beginning of their careers in Korea 10,000

is $27,476 for middle schools and high 0 schools, which is lower than the OECD Starting 15 years Starting 15 years average of $30,216 for middle schools, Middle High and $31,348 for high schools. However, Figure 13 Trends in Class Size and Student-to-Teacher Ratio in Middle Schools teachers’ salaries after 15 years of experi- 70 Class size ence average $48,146 for middle schools 62.1 62.1 Student-to-teacher ratio and high schools, which is higher than 60 the OECD average of $39,934 for middle 50.2 50 45.1 schools and $41,665 for high schools. 38.0 40 35.3 35.3 35.0 34.7 34.4 42.3 33.8 33.0 32.4 31.7 6. Class Size and 30 Teacher-Student Ratio 20 25.4 In 1970, there were 62.1 students to a 20.1 19.4 19.4 19.1 18.8 18.4 18.2 17.3 class, and 42.3 students to a teacher. The 10 16.7 16.0

student-to-class and student-to-teacher ra- 0 tio has been steadily decreasing, and as of 1970 1980 1990 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2013, there are 31.7 students to a class, and 16 students to a teacher. The student- Figure 14 Trends in Class Size and Student-to-Teacher Ratio in High Schools

to-class ratio decreased by 0.7 to reach 70 Class size 59.7 31.7 students at the middle school level; 58.2 Student-to-teacher ratio 60 the student-to-teacher ratio decreased by 52.8 50 0.7 to reach 16.0. 42.7 In 1970, the class size was at 58.2 and 40 33.7 34.2 33.3 32.7 32.5 33.0 33.7 33.1 32.5 31.9 the student-to-teacher ratio was at 29.7. 29.7 Since 2000, these figures have steadily 30

decreased to current levels, with 31.9 20 24.6 students to a class and 14.2 students to a 19.9 10 15.1 15.1 15.3 15.5 15.7 15.5 14.8 14.4 14.2 teacher as of 2013. 0 1970 1980 1990 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013

FOCUS 47

A teacher and students in a class

7. Educational Expenditure per Student 46% are enrolled in vocational (pre-vocational included) educa- Annual public educational expenditure per lower-secondary tion. In Korea, on the other hand, 79% percent of students are (middle school) student was 6,652 USD using PPPs, lower than enrolled in general education, and only 21% are enrolled in voca- the average of OECD countries (8,893 USD). Annual public edu- tional education. Key factors behind the high proportion of gen- cational expenditure per upper-secondary (high school) student eral high schools and students include the strong overall desire was 9,477 USD, higher than OECD average, 9,322 USD. for university education.

Figure 15 Educational Expenditure per Student (2010) Figure 16 Compulsory and Intended Instruction Time in Public Middle Schools (2011) (USD using PPPs) Korea OECD (Hours) 940 10,000 9,477 9,332 8,893 9,014 Korea OECD 924 9,000 8,060 920 907 8,000 900 7,000 6,652

6,000 880 5,000 860 850 4,000 850 3,000 840

2,000 820 1,000 800 0 Lower secondary Upper secondary All secondary Compulsory Intended

Figure17 Percentage of Total Compulsory Curriculum by 8. Instruction and Educational Program (Orientation) Type in Middle Schools (2011) (%) 100 The compulsory instruction time in Korea’s middle schools is 93 Korea OECD 90 86 850 hours, and annual intended instruction time is also 850 hours. 80 This is a lower fi gure than the OECD average of 907 hours and 70 924 hours respectively. 60 Figures on percentages of compulsory curriculum instruction 50 time in public middle schools show that 86% of the time is spent 40 on the compulsory core educational curriculum and 14% on the 30 compulsory fl exible curriculum, while OECD average fi gures are 20 14 93% and 7% respectively. 10 7

In OECD upper-secondary (high school) education, on aver- 0 age, 54% of the students are enrolled in general education and Core Flexible

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INFOKOREA_2(4교).indd 48 2014-08-29 오전 9:33:47 Figure 18 Enrolment Rate of Upper Secondary (High School) Students by 10. Academic Performance Program Choice (2011) According to OECD PISA 2009 (Program for International Stu- (%) 90 Korea OECD dent Assessment) results, Korea ranks among the top, ranking 1-2 79 80 in reading, 1-2 in math, and 2-4 in science among OECD member 70 countries. OECD average scores by subject are as below in 60 54 Table 1. 50 46

40 Table 1 2009 PISA Results in Korea

30 Reading Math Sciences 21 20 Scores Rank Scores Rank Scores Rank

10 Korea 539 1-2 546 1-2 538 4-7

0 OECD 493 - 496 - 501 - General Vocational (Pre-vocational) Note: OECD PISA results show rank in terms of range rather than a single number in consideration of error ranges.

9. Educational Attainment PISA is a test administered to over 470,000 students at age According to 2013 OECD Indicators, educational attainment of 15 in 65 countries across the world. Reading scores steadily im- high school in adults aged 15-64 was 81%, which is greatly above proved in Korea, from 6th in 2000 and 2nd in 2003 to 1st in 2006. the OECD average of 75%. In particular, the educational attain- Compared to PISA 2003, math scores also improved, and science ment of high school in adults aged 25-34 was 98%, ranking top scores greatly improved from 7-13 in PISA 2006 to 4-7 in PISA among OECD countries. 2009. This shows academic excellence in Korean students. Many educational policies have been introduced by the cur-

Figure 19 Educational Attainment of High School (2011) rent government. For example, recently the Ministry of Educa- (%) 100 98 96 tion launched the test-free semester trial run plan which allows Korea OECD 90 middle school students to take one test-free semester dedicated to 81 82 80 78 career exploration and an education system based on discussion 75 75 73 70 64 and experience. Test-free semesters aim to reduce the immense 60 stress students experience from tests that are heavily dependent

50 45 on memorization. This form of career education will provide stu- 40 dents more time to refl ect on their futures and partake of a wide 30 variety of activities and experiences. 20 Similarly, the Ministry of Education has operated industry- 10 customized curriculums and increased the number of partner 0 companies and employment agreements. In cooperation with 25~64 years 25~34 years 35~44 years 45~54 years 55~64 years business, economic organizations, and relevant agencies, the Ministry of Education has expanded Meister high schools, which are specifi cally created to prepare youths to work in high-skilled manufacturing jobs and other fi elds. In Korea, instruction had been provided under a unifi ed curriculum because middle and high schools were understood only as a preparation period for university entrance. However, new educational reforms now highlight a variety of educational goals for middle and high school students to pursue, i.e. career and aptitude development, and vocation and job preparation. ©Yonhap News

Winners of the I-SWEEEP Olympiad (International Sustainable World Energy Engineering Environment Project Olympiad)

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INFOKOREA_2(4교).indd 49 2014-08-29 오전 9:33:48 FEATURE 1 An Invitation

to Gugak, Written by SHEEN Dae-Cheol (Academy of Korean Studies) Traditional Korean Music

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INFOKOREA_2(4교).indd 50 2014-08-29 오전 9:33:52 The Republic of Korea’s music scene today is very energetic, Korea as a conjunction of cultures between China and Japan, Ko- diverse, and full of life. Many kinds of concerts are held across rean culture has evolved in ways that make it characteristically the country throughout the year. Visitors, including musicians and and distinctly different from both these countries. Similarly, too, musicologists, are generally surprised at the different kinds of gugak has evolved differently from the music of Japan and China. concerts that one can see in Korea, including traditional Korean, Seemingly, there are many things the music of these countries Western, pop, Asian and fusion. It has been hard, however, to not has in common. But, some essential elements in gugak make it only preserve traditional Korean music, but also arouse people’s distinguishable from Japanese and Chinese music. interest in it. One reason is the majority of Koreans does not know Gugak is different from traditional Chinese and Japanese that much about it and find Western music more attractive. music, both musically and aesthetically. For example, traditional Traditional Korean music is called gugak, which literally Chinese and Japanese music have double and quadruple beats. It, means “Korean national music.” Gugak is as old as Korea and however, is not easy to find this type of piece in traditional Kore- has been continued until now with difficulty. It has its own unique an music, except for pieces written by contemporary composers. beauty, and its position in the ranks of Asian music, especially in So, what is gugak? What are the basic ideas of gugak and East Asian music, is quite special. how can we understand them? I hope this article will be helpful In spite of the geopolitical position and historical status of for readers to understand.

1. Classification ofGugak cius. Confucius was known to have enjoyed playing the geum, a plucked instrument with silk strings similar to a zither. They, just Gugak can be classified several ways. In this article, it is broken like Confucius, liked to play the geomungo, a traditional Korean down into four categories: court music, literati music, folk music, plucked instrument with six silk strings. and religious music. Those learned Koreans, although they were amateur musicians, also left numerous musical literatures for their music. Most 1) Court Music of the musical literatures were written for the geomungo. Those Korea was a dynastic country until 1910 when it came under the works are very important when studying literati music of the Jo- control of Japan by forced annexation. In the court of Joseon Dy- seon Dynasty. nasty (1392-1910), there were many kinds of music and dance There are two kinds of literati music, instrumental and vocal. performances. Dance was a seminal part of gugak until the dy- One of the most well-known and beloved instrumental music is nasty fell. Yeongsan-hoesang. Of all the literati vocal music, the most fa- Most of the music performances at this time corresponded mous and artistic form is gagok, a kind of lyrical singing consist- with yeak-sasang, which is part of the philosophy of Confucian- ing of 27 pieces. Gagok is sung by both males and females to the ism. Yeak-sasang is literally translated as the thought of rites accompaniment of a small chamber ensemble. and music. It aims for right order and harmony between kings, subjects, families and all people. Its goal is to embody an ideal 3) Folk Music society or earthy paradise through the harmony of rules of proper While I shudder to think I might be considered an ethnocentric behavior (ye) and music (ak) and, eventually, to create a universal Korean musicologist, I do believe that Korean folk music is not right order and harmony or peace, including one that stretches only unique, but distinct as well. The Korean peninsula is not across the entire world. very big, and if you put the North and South together, the country The music was mostly played at court rituals, parties or other is also not that big. Korean dialects, however, are very diverse. events. Court musicians wore red uniforms. There were three Every province has its own dialect, and each has its own customs kinds of court music. The first was native Korean music; the other and manners. Even kimchi, a traditional Korean pickled cabbage, two came from Chinese court music. Some court music pieces was made differently in each province. Similarly, Korean folk are still performed today, including Sujecheon (lit. long life as music is very diverse from region to region, and the folk music everlasting as the sky), Yeomillak (lit. enjoyment with the peo- of each province boasts its own style and beauty: musical scale, ple), Boheoja (lit. person walking the sky) and Nagyangchun (lit. vocalization, way of making ornamentation, and aesthetics. spring of Luoyang). Only two ritual pieces — one for the Royal Of the many kinds of Korean folk music, the most beloved Ancestral Shrine Rite and the other for the Confucian Shrine Rite and important ones are pansori, sanjo, minyo, and nongak. — survive and are still performed. Pansori is a long narrative- and song-style music with a drum accompaniment. It is performed by one singer and one drummer. 2) Literati Music Sanjo features an instrumental solo accompanied by drumming, Literati music was also influenced by yeak-sasang. The Joseon mostly on the janggo, which is an hourglass-shaped drum. These Dynasty’s Confucian scholars, who belonged to the middle or up- two genres originated in folk music, but now they are regarded as per class, enjoyed music and playing musical instruments. They art music because of their artistic characteristics. Minyo and non- very passionately followed the teachings and behavior of Confu- gak are widely loved by the common people. Minyo, Korean folk

FEATURE 51

INFOKOREA_2(4교).indd 51 2014-08-29 오전 9:33:52 FEATURE 1

©Yonhap News 1) Pentatonic Music The Chinese music in Korea is composed on a heptatonic scale like Western music, a slightly different one (do, re, mi, fa, sol, la, si structure). On the other hand, gugak was created on a pentatonic, or fi ve-note, scale According to Akhak-gwebeom (a nine- volume guide to music), published by the king’s command in 1493, there were two musical modes: pyeongjo and gyemyeonjo. Both can still be found in music today. The mood of pyeongjo is similar to a Western piece in a major key, and the mood of gyemyeonjo is similar to a Western piece written in a minor key. The most frequently used scales of pyeongjo and gyemyeonjo can be notated as the fi gure.

Jongmyo-jeryeak (Royal ancestral shrine music)

song, is divided into entertainment music that is played by professional singers and work songs that are played by the common people, such as farmers and fi shermen. Nongak, Korean farmers’ band music, is played by professional musicians and common Pyeongjo and gyemyeonjo scales in the Western staff notation people. Samul-nori is a newly created genre of gugak based on the farmers’ band music. The fi ve tones in the pyeongjo scale have remained un- 4) Religious music changed until recently. The notes on the gyemyeonjo scale were The Joseon Dynasty dreamed of creating an idealistic nation based diminished, or reduced to four tones (the second tone was omit- on Confucianism. So, numerous Confucian rites and ritual music ted) or three tones (the second and fi fth tones were omitted). were held in the court of Joseon Dynasty (1392-1910). Today, There are some musical pieces that deviate from this structure, only two kinds of ritual music, the Royal Ancestral Shrine ritual however. Remember these proverbs: “There is no rule but has music and the Confucian Shrine ritual music, are performed. exceptions” and “The exception proves the rule.” While Confucianism dominated the Joseon Dynasty, Bud- Gugak is not the only music written in a pentatonic scale. dhism also had a strong infl uence as well, especially among the There are many cultures that use this scale. Many ethnic groups in common people. Members of the royal families, such as King Asia enjoy pentatonic music and some of Scottish folk songs were Sejo (reigned 1455-1468), supported Buddhism. In fact, Korea written in the pentatonic scale, i.e. “Auld Lang Syne.” Leonard has had a strong Buddhist tradition since it was fi rst introduced Bernstein (1918-1990), one of the most well-known composers in 372 AD. Beompae, Korean Buddhist ritual music, has been and conductors of the 20th century, said pentatonic music is a descended up to this day. universal phenomenon. Before the introduction of Confucianism and Buddhism, there was shamanism in Korea. It encompassed a variety of in- 2) Monophonic Music and Horizontal Harmony digenous religious beliefs and rites and music. Shaman practices Gugak is not homophonic but monophonic, which means it has a required rituals. Korean shaman ritual music is diverse from re- single melodic line without any chords. There is no vertical har- gion to region. monic structure like there is in the Western music, and it does not have several melodies sung or played simultaneously as in the polyphonic music of the Western contrapuntal style. There is 2. Basic Theories of Gugak only one melody, and all singers or instrumentalists perform the same melody in unison. Both functional harmonic style and con- Until the end of the 19th century, most Western music had been trapuntal style require vertical sonic harmony. Consequently, the written based on a heptatonic, or seven-note, scale, or the func- melodies or tones of both styles are vertically piled upon when tional harmony with seven tones (do, re, mi, fa, sol, la, si in the performed, but, in gugak, there is a different kind of sonic har- solfege). There are three essential elements in Western music: mony: horizontal sonic harmony. melody, rhythm and harmony. However, gugak was created dif- What is sonic horizontal harmony? Musical instruments for ferently, so its musical elements are, of course, different. There is gugak are made of eight different materials called pareum (lit. no vertical harmony in gugak. eight sounds), and each material makes a different sound: metal, stone, string, bamboo, gourd, earth, leather and wood. According

52 INFOKOREA

INFOKOREA_2(4교).indd 52 2014-08-29 오전 9:33:53 to yeak-sasang, these materials are indispensable for performing many beats per minute was a slow music piece back then? It is ideal music. They should be played simultaneously, or in unison, hard to imagine. in order to achieve the ideal sound. A horizontal harmony is then created by the different tone colors. This rule was strictly ob- 5) Jangdan served for court music of the Joseon Dynasty, especially for ritual In Western music, there is a steady succession of rhythmic pulses music, and it is also applied to literati music. It is only loosely organized within two vertical bar lines or one bar. The rhythmic applied to folk music. pulses within these two lines are indicated by time signatures, Traditional Korean music is not only monophonic, but also such as 2/4, 3/4, 4/4 (C), 6/8, etc. These notations indicate mea- heterophonic, which is playing the same melodic line simultane- sure or meter for some works of Western music. The signatures ously, with slight variations by two or more of the performers. 2/4 and 6/8 mean that there are two quarter notes and six eighth The basic melodic tones for a particular piece of gugak are the notes within one bar of a musical piece, respectively. Gugak does same among the instruments and voices, but there are very nu- not use bar lines, and the conception of measure or meter is quite anced melodic differences between the sounds of each instrument different from Western music. and the voice in performance. Consequently, heterophonic ele- The gugak equivalent is jangdan. The literal meaning of ments are formed. jangdan is “long and short,” and it refers to long and short set rhythms within a fixed or limited musical space. Usually, itis 3) Form represented when a piece is led or accompanied by a drummer Form refers to the overall structure or plan of a piece of music. on the janggo or the soribuk (a small drum for pansori) with a Most gugak genres do not have established forms. This is in con- bamboo or a wood stick in the right hand and a bare left hand. It trast with some types of Western music that place great impor- is the role of the drummer in gugak to keep jangdan during the tance on form. For example, a sonata has three sections. How- performance. He or she is both the accompanist and conductor for ever, certain gugak genres have a fixed structural form. Gagok, the performers and audience. or classical lyrical art song, has five sections plus two, includ- There are many kinds of jangdan. Although some jangdan ing a prelude and an interlude or a postlude played by a small are commonly used in diverse genres of music, usually jangdan chamber ensemble. Sijo, a short reflective lyrical song, is com- used in practice for court music, literati music and folk music posed of three parts, and may include an accompaniment. Sanjo, (and also the shaman music) are differentiated from each other. an instrumental solo piece developed from the shaman music of There is an established basic rhythmic pattern for every jangdan. southwestern Korea, contains three to six sections with a tempo Usually drummers of court and literati music perform a fixed ba- that begins slowly and gradually increases. There are many folk sic pattern of jangdan for a piece with only a few exceptions. On songs that have slow and fast tempos. The most representative the other hand, drummers of folk and shaman music use a variety form (style) of work songs and strophic folk songs is “call and of jangdan freely in a piece as their skill and capability will allow. response,” which is similar to that of Gregorian chants. The length or cycle of jangdan is also very diverse. Simply put, the longest length can be notated as 24/4 and the shortest as 4) Tempo 9/8 or 3/4 of Western music. The unique 5/4 or 5/8 pattern can The tempo of a piece is one of the most essential elements in also be found in gugak. Remembering and understanding each music. The basic tempos of both gugak and Western music are jangdan pattern is not an easy task, and it requires constant atten- based on the natural physiological movement of a human, but tion and effort. It is important to remember that the first pulse of each focuses on a different movement. Western music bases its almost all jangdan starts at the down beat by hitting the janggo or tempo on the palpitation of the heart, namely heartbeats or pulses, the soribuk with both hands. and gugak, is based on the movement of the lungs or respiration. The normal pulse rate of a healthy grownup is 60 to 80 beats per minute. The normal breath rate of an adult is 12 to 18 breaths 3. Musical Notation: Jeongganbo per minute. So, the average time of one pulse beat is about one second, and one inhalation and exhalation is about three seconds. Before Western music was adopted by the Koreans, gugak had The duration of one pulse is the basic temporal unit of Western nine musical notations. Among them, jeongganbo (square nota- music, and one breath is the basic temporal unit of gugak. One tion) and hapjabo (a form of tablature) are the most well-known. beat of Western music is one second and, in gugak, it is three sec- Hapjabo had been used until the early 20th century, and it is im- onds. The tempo of Western music is faster than gugak. portant to understand when studying old Korean music. Jeong- The slowest tempo you will find in Western music is 40 beats ganbo, on the other hand, has been continuously used since it per minute, indicated as ♩= 40 on the metronome. The slowest first appeared in the first half of the 15th century. It is the most tempo in gugak performed today is 20 beats per minute or ♩= representative musical notation of gugak. 20. This goes far beyond the temporal range of Western music. Jeongganbo was invented by King Sejong the Great (1397- What is interesting is that the slowest gugak piece of today would 1450, reigned 1418-1450). Sejong, renowned as the inventor of have been considered fast in the time of the Joseon Dynasty. How the Korean alphabet, Hangeul, also has other achievements in sci-

FEATURE 53

Jeongganbo created by King Sejong the Great Jeongganbo improved by King Sejo ©National Gugak Center ©National Gugak Center

Jeongganbo of the 19th century

ence, culture, arts and music. He had a deep knowledge of music. He created many musical instruments, rearranged aak (a genre Jeongganbo of of Korean court music) so it followed Confucianism, this allow- the present day ing it to be performed at court rituals, composed many pieces of music and invented jeongganbo, a musical notation for writing down works he composed. Actually, all his works can be found in the Annals of the Joseon Dynasty. The invention of jeongganbo was one of the most important events in Korean music history. were similar to the vertical bar lines of the staff notation of West- In fact, jeongganbo is known as the oldest mensural notation in ern music. In addition, King Sejo used six letters (gung, sang 1, East Asia. sang 2, sang 3, sang 4, sang 5) to designate pitch instead of the Sejong’s Jeongganbo is composed of 32 jeonggan (squares) previous 12. These letters made writing the music easier because for each perpendicular column. Each square has one of 12 Chi- it is based on a pentatonic scale. The first letter (gung) indicates nese letters in it to indicate pitch. The square indicates the tone’s the first tone of the scale, the second letter the second tone, and length, so each square represents one pulse or beat. However, the the last letter is one octave higher than the first tone. exact length of one square is not known. It is one of big questions Jeongganbo was used in court and literati music in the Jo- to be solved in the Korean musicological circle. seon Dynasty. Jeongganbo for court music has not changed Jeongganbo was improved in the second half of the 15th much since King Sejo’s improvement except for a new form of century by King Sejo (1417-1468, reigned 1455-1468), one of jeongganbo that is composed of 20 squares in one column, which King Sejong’s son. King Sejo was talented in music and, as a appeared in the 19th century. However, jeongganbo for literati young prince, helped his father with musical issues. He reduced music had changed a lot. Literati musicians used various types the number of squares in a column, from 32 to 16, and divided of jeongganbo. Today, the number of squares in one column is them into six subunits with bold-faced horizontal lines, which depends on the piece: four, five, six, 10, 12, 20 and so on.

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Pungnyu gayageum (bottom) and sanjo gayageum (top) Geomungo

4. Musical Instruments sanjo gayageum. The former is used in court and literati music, and the latter is used in sanjo and folk music. The pungnyu Today, there are 64 kinds of gugak instruments kept in the Na- gayageum is the original instrument and its shape has not nearly tional Gugak Center (formerly the National Center for Korean changed in 1,500 years. The sanjo gayageum is a smaller, more Traditional Performing Arts) in Seoul. Some are no longer used modern version with more closely spaced strings to account for because people have forgotten how to play them. In addition, rapid playing. They are different in size, shape, execution and there are many other musical instruments that are used in today’s sound range. folk and shaman music. The gayageum was called sillageum in ancient Japan after it Many of the instruments were imported from China and some was imported from Silla. It is unclear, however, who introduced came from countries to the west of China; others are native Ko- it to the Japanese. Gayageum music was once loved by the Japa- rean instruments. However, the imported instruments were either nese upper class during the ancient times. The ancient sillageum fully improved or Koreanized to work with the gugak system. So, remains in Japan. It looks almost the same as the ancient Korean they can be considered Korean instruments as well. gayageum and the pungnyu gayageum of today. Unfortunately, The instruments can be classified two ways: based on eight sillageum music died out in Japan. materials, such as metal, stone, string, bamboo, gourd, earth, leath- Koreans have loved the gayageum and its music for about er, and wood; or based on origin, such as hyangbu (native Korean 1,500 years. According to Joseon Dynasty literature, including instruments), dangbu (instruments of the Chinese Tang Dynasty, the Annals of the Joseon Dynasty, the gayageum could be found and used for Chinese court party music), and abu (instruments in almost all instrumentations for court music. The sanjo gaya- for court rituals). Today, they are also classified as wind, string, geum and its music have become tremendously popular since it or percussion instruments like in Western music. Another way to first appeared in the late Joseon Dynasty. Todaygayageum music classify them is an ethnomusicological classification system that is popular among the public. was developed to classify non-Western instruments in the early 20th century: chordophones, aerophones, idiophones, and mem- 2) Geomungo branophones. There are five major instruments that can be found The geomungo is a native Korean string instrument. It is unclear in almost all ensembles and solo pieces: gayageum, geonmungo, when it was created. There is a record in Samguk-sagi that the haegeum, daegum and piri. Also, the janggo and the soribuk are geomungo was invented by Wang San-ak (?-?) of Goguryeo (37 frequently used and necessary in performance. BC-668 AD), who was the second prime minister of Goguryeo during the reign of King Yangwon (?-559, reigned 545-559), but 1) Gayageum it is considered to have existed before the 5th century. We can The gayageum is a native Korean musical instrument. A assume what it looked like from examining similar string instru- 12-stringed plucked zither, it was created by King Gasil (?-?) of ments shown in murals in several ancient tombs in the Goguryeo Gaya (1st century BC-6th century AD) in the early 6th century. area. Its music had been widely spread throughout the Unified According to Samguk-sagi, the History of Three Kingdoms of Ko- Silla since the mid-8th century because of several musicians like rea, Ureuk (?-?), a gayageum maestro of Gaya, asked for asylum Ok Bo-go (?-?). in Silla when Gaya fell, and was warmly welcomed by King Jin- The modern day geomungo is not quite different from the heung (534-576, reigned 540-576) of Silla (57 BC-935 AD). The original one, except for the number of strings. It has six strings, king sent three young gentlemen to Ureuk and he taught them but we do not know the actual number on the original geomungo. how to play the gayageum, as well as songs and dances. The mu- One tomb mural shows a geomungo with four strings. sic eventually spread across Silla. Koreans have a soft spot in their hearts for the geomungo and There are two kinds of gayageum: pungnyu gayageum and its music. It was included in almost of all instrumentations for

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INFOKOREA_2(4교).indd 55 2014-08-29 오전 9:33:57 FEATURE 1 ©National Gugak Center ©National Gugak Center court music. It was especially loved by the literati, and they wrote a lot of music for it. They believed the geomungo is the most valuable of all instruments.

3) Haegeum The haegeum is an instrument that was imported from China in the 12th century. It is a fiddle with two silk strings and a bow made of horsehair. The haegeum, as a string instrument, gener- ates a constant sound like a wind instrument, so it has been included in the instrumentation for wind ensemble. This type of bowed instrument is found in many parts of the world, especially in many Asian countries, such as China, Japan, From the Vietnam, Thailand, and India. Several different sizes are used for left, traditional Chinese music. Even though it is not a native instru- sogeum, junggeum, ment, the haegeum has been regarded as native since the King- Haegeum and daegeum dom of Goryeo (918-1392). The way it is played is completely “Korean,” and that occurred in the late 15th century. Its nasal timbre made it very appealing and loved among street musicians and the musical public.

4) Daegeum is that it originated in the countries that bordered western China The daegeum, also called jeotdae, is a native bamboo flute. It and was imported to Goguryeo through China. While it is uncer- first appeared in the late 7th century in Unified Silla. According tain whether this theory is correct, the piri was incorporated into to a famous legend, King Sinmun (?-692, reigned 681-692), the Goguryeo music in the 6th century. 31st king of Silla, made it from a wonder-working bamboo that a The piri is very important in a gugak ensemble because it dragon from the East Sea had presented to him. The legend says carries the main melody. Its timbre is rather coarse, but the mu- that when some uneasiness happened in the country, if the flute sician can easily express feeling and dynamics. There are three was played, it would solve the problem and restore peace to the kinds: hyangpiri (native one), sepiri (native and slim one), and land. Because of this, it was regarded as one of three treasures in dangpiri (piri imported from China but Koreanized in the early Unified Silla. Joseon Dynasty around the late 15th century). The first is used The daegeum has been loved by the Korean people in and in ensembles or solo music, such as dance music. The second outside of the court since it first appeared. According to a report produces a soft sound, so it is used by small chamber ensembles on Goryeo written by a Chinese envoy to Goryeo in the early 12th and accompanies traditional lyrical art songs. The last produces a century, the daegeum was used to tune instruments. This tradition loud sound and is used in dangak (imported Chinese court party is similar to the role of the oboe in Western orchestras and it still music to Korea), as well as music related to dangak. continues today. The daegeum has a blowing hole, reed membrane hole, and 6) Janggo and Soribuk six finger holes. Its timbre in the lower range makes it sound a The janggo (hourglass-shaped drum) is also called janggu or little gloomy; in the middle, it is exhilarating; and in the high, it is seyogo. It came to Goryeo during the Song Dynasty (960-1279) very clear and beautiful. The sound of the reed membrane in the and has been used ever since. It was used for court, literati, folk high range has a very pleasant sound. (including farmers’ band music) and religious music (including Daegeums are categorized by length: The shortest one is shaman music). The janggo is used for almost all genres of gugak. sogeum; the medium-length one is junggeum; and the largest is A drummer holds a bamboo stick in his or her right hand and daegeum. The junggeum is not used very often today. Around the hits the right side of the janggo with it. The left side is hit with his beginning of the 20th century, the sanjo daegeum started to be or her bare left hand. For farmers’ band music, a small wooden played by unknown musicians in sanjo and folk music, and it mallet is used instead of a bamboo stick. It is a very important and captivated music lovers. The size of the sanjo daegeum is a little indispensable percussion instrument for gugak because it keeps shorter than the junggeum. jangdan, and accompanies and leads music. The soribuk (barrel drum) is a native Korean musical instru- 5) Piri ment. It literally means a drum (buk) for pansori or songs (sori). The piri is a double-reeded wind instrument, similar to the oboe, It is used to accompany pansori, and its role is the same as the and is made of bamboo. It has seven finger holes on the front janggo. Sometimes it is also used to accompany several pieces and one on the back. There are several theories about the ori- of sanjo. gin of the piri, which can be seen in Chinese history books. One

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From the left, dangpiri, hyangpiri, and sepiri Janggo Soribuk

5. Calm and Dynamic: Two Differing Musical Character- in folk music, it is vibrated from the beginning. Its amplitude is istics Found in Gugak of Today much wider and more impassioned than that of court and literati music. Sliding up and down the tones (glissando and portamento) The conception of pitch in gugak is a little different from that of can also be understood in the similar way as vibrato. The genre Western music. The pitches of gugak show us the energetic nature can easily be distinguished by these effects. The two contrasting that contrasts strikingly with those of Western music. When the musical characteristics, calm in court and literati music and dy- tones move from low to high, or vice versa, there is a vertical namic in folk music, are also created by them. slide of tones produced. Even one fixed tone is vibrated softly or To better understand gugak, remember these two coordinate strongly. It means that there are an infinite number of microtones musical characteristics. Don’t forget the aforementioned tips and between two tones or even in one tone. A foreign musicologist make time to distinguish calm from dynamic while listening to said gugak is based and created on the microtonal system. These traditional Korean music. This will help you appreciate it. Here sliding and vibrating tones create beautifully curved melodic are some renowned pieces. lines that cannot be reproduced in Western music. These musical effects can be, for convenience’s sake, consid- 1) Sujecheon ered glissandos (a deliberate gliding from one pitch to another), It is said that Sujecheon is one of the most representative and portamentos (a gradual and short sliding from one note to an- beautiful court pieces. Literally, it means “long life as everlasting other), and vibrato of Western music, although the two are not ex- as the sky.” It is a piece for a wind ensemble; but it originally was actly the same. These musical effects are collectively and broadly a vocal piece with orchestral accompaniment. Exactly when the called nonghyeon or nongeum (lit. vibrating strings or vibrating lyrics were dropped is not known. Its lyrics originated in Baekje voices) in gugak. (18 BC-660 AD), and it has been around for about 1,500 years. It Nonghyeon attached to pitches are not just an ornament for was played at court dances and parties for the royal family during expression. They are also an essential part of gugak and create the Joseon Dynasty. It has sometimes been considered the best curved lines that are inimitable and beautiful. Western instru- piece of court music. ments of equal temperament, such as the piano and violin, as well A performing style called yeoneum (joining tones) should be as Western vocal music, can hardly produce the musical feeling mentioned. Yeoneum occurs when all the instruments, except the or impression that is created by gugak. piri and drums, are played. It is similar to a concerto grosso in The position and way of nonghyeon determine not only the Western music from the Baroque era (1600-1750), and it creates mode of a performed piece, but also its genre. Sometimes the a typically majestic atmosphere. musicality and character of performers can be distinguished from nonghyeon. So, a proper understanding of the musical gradations 2) Sinawi of nonghyeon is a shortest way to enjoy the essential beauty of Sinawi is to folk music in gugak what Sujecheon is to court mu- gugak. sic. It is probably the most representative ensemble piece of all The most prominent vibrato is found in the tonic. Usually, folk music. It originated from shaman music. We are not sure the latter part of a note is vibrated in court and literati music, but when it appeared, but the best guess was the late 19th to the early

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20th centuries. consist of 11 pieces. Each lyric praises glorious civil and military It is a kind of impromptu performance. All the instruments accomplishments of the fi rst and third kings and the ancestors of play melodies that are freely weaved to the janggo jangdan. It the dynasty, respectively. When it is performed at the ritual for sometimes contains complicated heterophonies and rhythms, un- the Royal Ancestral Shrine, line dances, munmu (civil dance) and intended contrapuntal melodies, energetic sounds of percussions, mumu (military dance), each of which have 64 dancers, are per- and diverse, yet, dynamic gradations formed. In a word, Jongmyo-jeryeak is a spectacular piece of art in which all the spiritual ceremonies, instrumental music, song, 3) Jongmyo-jeryeak (Royal Ancestral Shrine Music) and dance are well harmonized. This piece was composed by King Sejong the Great in the fi rst Every fi rst Sunday in May, the ritual with music is held 9 half of the 15th century for the regular meeting of the king and a.m. at Jongmyo (Royal Ancestral Shrine) in Seoul, but a concert his subjects at the main hall of the palace. King Sejo, one of his with or without ritual ceremonies is given more often. The music sons, had it played as part of the ritual for the Royal Ancestral is melodic and creates a mysterious atmosphere. The acoustics of Shrine in the second half of the 15th century. It has been per- the fi rst, sixth and fi nal pieces of Jeongdaeeop are especially im- formed there ever since. In 1964, it was proclaimed as “Important portant to note because they are very strong and splendid pieces. Intangible Cultural Property” No. 1 by the Korean Government. What is curious about them is the Apollonian and Dionysian char- Also UNESCO designated the music and ritual as an “Intangible acteristic of calm and dynamic are interwoven in them. Cultural Heritage” in 2001. It consists of Botaepyeong (lit. maintaining the great peace), Jeongdaeeop (lit. founding a great dynasty), and Jinchan (lit. of- *The author would like to thank the National Gugak Center (NGC) for fering food), of which the fi rst two are the main ideas. They each allowing the use of the photos in this article. ©Yonhap News

A performance of Jongmyo-jeryeak (Royal Ancestral Shrine Music)

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The image of Juakbicheonsang (Two Flying Fairies Playing Music), which is inscribed on the bronze bell of Sangwonsa Temple

A Brief Glance at

All music has unique charming characteristics and boasts its own powers to fascinate people. aesthetics. Although there is something similar among all the music Each culture has its own music, and the music is rooted in the of the world, whether Western or non-Western, traditional or non- foundations of the culture. So, what kind of musical elements can traditional, each one has its own nature that makes one type different one fi nd in traditional Korean music? How did Korean culture infl u- from another. Those different aspects possess strong, even magical, ence it?

1. Yeak-sasang: Confucian Musical Thought court ritual music, was incorporated into court rituals and music for them during the Joseon Dynasty. There were many kinds of Traditional Korean music primarily refers to the music composed court rituals in the Joseon Dynasty, and the music had to be per- and performed during the Joseon Dynasty (1392-1910). Although formed with the utmost sincerity. there are several pieces of traditional music that were written be- If you look at the word in the metaphysical sense, yeak-sa- fore the Joseon Dynasty, they were all adapted into the Joseon sang means “right order and right harmony between kings, sub- style during the dynasty. As is generally known, the main political jects, families and all people.” Ye symbolizes right order and ak and religious thought of the Joseon Dynasty was Confucianism, means right harmony. The goal of yeak-sasang is to incorporate and that had a strong infl uence on almost every aspect of life, an ideal society or earthly paradise through the harmony between from politics and economic activities, to social ethos, education, rules of proper behavior (ye) and music (ak). According to Chi- and culture. Consequently, culture was highly infl uenced by Con- nese philosophy, ye-ak corresponds to the yin-yang of the uni- fucianism. verse: ye to yin and ak to yang. The fi nal aim of yeak-sasang is The Confucian thought concerned with music is called yeak- to create a universal right order and harmony or peace, including ©Yonhap News sasang (ye = decorum or ritual, ak = music, sasang = thought), one between all the people of the world and the universe. a principal ideology that governed the Joseon Dynasty since its Right order (ye) should be required for a better human soci- foundation. It was the main inspiration for the dynasty’s music. ety. However, human society will become too strict if right order Yeak-sasang, which was originally a thought on Chinese is excessively emphasized for human relationships because ye is

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as stiff as a ramrod. In con- 2. Harmonized Exquisite Beauties Created by Curved ©National Gugak Center trast, ak, which symbol- Lines of Melodies and Musical Dots by Percussion izes right harmony in hu- Instruments man relationships, is soft and gentle. The right order Basically, traditional Korean music is monophonic—melody of human society will not without accompanying harmony. It was based on a pentatonic, stand fi rm if ak is empha- or fi ve-tone, scale. Until very early in the 20th century, Western sized too much in human music followed a seven-tone scales or heptachord. In the 1920s, relationships. For there to Austrian composer Arnold Schoenberg (1874-1951) invented the be human wellbeing, ye dodecaphonic, or 12-tone, scale. There are many kinds of penta- and ak should complement tonic music, and each has its own aesthetic. The pentatonic scale each other and be embod- is considered to be the universal outline for music across the ied in society. world, as Leonard Bernstein, American conductor and composer The Joseon court usu- (1919-1990), argued in his lecture The Unanswered Question. ally had two orchestras: the Many people and ethnic groups in Asia enjoy pentatonic mu- Akhak-gwebeom deungga, which symbol- sic, and there is a pentatonic melody in Scottish traditional folk ized yang, or orchestra on songs, including the well-known “Auld Lang Syne.” the terrace, and the heonga, which symbolized yin, or orchestra Almost all traditional Korean music has remained in the on the ground. They were organized according to yeak-sasang: pentatonic scale, although there are some pieces that have devi- The harmony between yin and yang were embodied in their in- ated from this system. Some folk tunes have three or four tones strumentations. The deungga’s instruments embodied yin, while because one or two were left out. There are even some tunes that the heonga’s instruments incarnated yang. have only one tone. As the instruments embodied yeak-sasang, so did the mu- How can you create beautiful traditional Korean music, then? sic. According to yeak-sasang, interjecting any feeling during How the melody fl ows in traditional Korean music is unique. musical performances was not allowed. The music had to be When a melody progresses from low to high, the low tone does performed simply in a slow tempo without any emotion, musi- not lead directly to the high tone. It is pushed or slid up by a cal technique or embellishment. This kind of music would not be curved melody line. Similarly, as a melody progresses from high considered beautiful and charming from the modern perspective, to low, it is also slid or pushed down by a curved melody line. but yeak-sasang praised it as the best or greatest kind of music. When a tone is sustained for a while, vibrato is used, to create Why would emotions or musical expression be suppressed? part of the melody. The curved lines of melody produced in tra- There is a saying in the Book of Rites, one of the most princi- ditional Korean music create a melody of suppleness and gentle pal books for Confucianism and yeak-sasang, that says “A piece beauty. This beauty is one of the most noteworthy aspects found of great music is very simple.” Therefore, all music should be in traditional Korean music, and it thoroughly makes up for the simple in the frame of yeak-sasang. Free expression of feelings weak points in the monophonic melody and the small number of in music hardly leads to simple music. As a result, feelings should tones used in the music. be strictly controlled. The beautifully curved melody in traditional Korean music The Analects of Confucius says this about musical expres- is quite different from the modifi ed melody or sounds made by sion: “Music should be pleasant, but not to be racketing, and musical embellishments in Western music. These embellishments should be sad, but not to hurt one’s heart.” The History of the Three Kingdoms of Korea (Samguk-sagi) changed that only

slightly: “Music should be pleasant, but not to be incontinent, and ©The Academy of Korean Studies should be sad, but not to be sorrowful.” These examples not only show a very diffi cult and complicated conception ofyeak-sasang , but also the quintessence of its control on emotions. They teach us how important it is to moderate feeling and not give into feeling. It can be said that a kind of most Apollonian aesthetic idea for the European classical music is also found in yeak-sasang. Yeak-sasang had an effect on the court music of the Joseon Dynasty and it continuously infl uenced music outside the court as well. The literati music, to some extent, had been infl uenced by the tenet of less feeling. While folk music was not affected by yeak-sasang, it did infl uence some of its lyrics. Buddhist music and shaman music were completely free from yeak-sasang. A performance of gayageum sanjo

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INFOKOREA_2(4교).indd 60 2014-08-29 오전 9:34:08 are usually notated in the staff line. In contrast, the curved melody 3. Harmony between Musicians on the Stage and Audi- of traditional Korean music is alive and natural. It moves lively, ences: Situational Beauty “kicking one tone to another,” giving life to the music and creating special musical melodies. It is very diffi cult for foreign musi- The drummer plays a very important role during concerts or recit- cians and musicologists to learn, but it is enjoyable to hear. als. The drummer usually plays either the janggo or the soribuk While traditional Korean music is primarily monophonic, it (barrel drum for pansori) based on jangdan (recurrent rhythmic is also somewhat heterophonic, or producing the effect of slight pattern). However, he or she is not just an accompanist, but a variations when playing or singing the same melodic line in uni- conductor and leader as well. Sometimes the drummer has to lead son. This is seen in ensembles when the instruments produce the music, performers and audiences at the same time. During different timbres, or the quality of a musical note or sound that pansori, sanjo, folk ensembles, folk songs and many other genres distinguishes different types of sound production. These hetero- of folk music, it is the percussionist who makes the effort to ani- phonic sounds, along with the curved line of melodies, present mate the audience during the concert or recital. amazingly beautiful musical effects for the audience. Finding and Usually, the janggo is used to keep jangdan in almost all savoring the fl ow of heterophonies in the ensembles is one of the genres of traditional Korean music, but pansori requires only the most valuable musical pleasures to music lovers. soribuk, which is used to accompany sanjo. There is a saying on It is not just in traditional music that curved lines can be the importance of the drummer’s role in the world of pansori: found. It seems Koreans love curved lines a lot, and these lines “The fi rst is the drummer and the second is the singer.” There is are often found in a variety of other traditional cultures. They no doubt that the singer is more important in a pansori recital or are prominent on buildings at the royal palaces, such as Geun- a concert. However, this saying lays great emphasis on how the jeongjeon Hall at Gyeongbokgung Palace and Seonjeongjeon drummer can make them successful. Hall at Changdeokgung Palace, Buddhist temples and other tile- While accompanying the other musicians, if the drummer roofed houses. You can also see them on hanbok, the traditional feels the performer is playing or singing well, or the music is Korean dress. The Korean thatched house is round and has some good, he or she will give some exclamation called “chuimsae” simple and unsophisticated curved lines. There are also curved to encourage the musicians. Chuimsae is not an option, but a re- lines in traditional Korean paintings and dances. quirement at folk music concerts or recitals. It gives life to the The beauty formed by the musical dots made by percussion concert or recital. Even the audience is encouraged to give a chui- instruments in traditional Korean music is also highly recom- msae. If you allow me to elaborate a little more, I would like to mended. Lots of percussion instruments are used in traditional give an example of a concert hall that was fi lled with chuimsae Korean music. Their function is to produce musical dots by their when a maestro showed his or her musical talent to the audience. sounds. All court music starts and fi nishes with the sound of the The silence of the Western music concerts or recitals cannot be bak, a wooden clapper. The janggo, an hourglass-shaped drum, expected in these situations. Culturally, it is considered one of the leads solo or ensemble music with its musical dots as the player most meaningful musical elements for folk music performances hits it with a bamboo stick in the right hand and his or her bare in Korea. Aesthetically, chuimsae creates a very unique musical left hand. Various kinds of drums are used in court ritual music atmosphere. to produce musical dots. The sounds of samul-nori are produced I have an interesting story about a chuimsae that happened by only four percussion instruments. Pansori (Korean musical storytelling performed by a singer and a drummer) and sanjo (an

improvised instrumental solo accompanied by drumming) are ©Seoul National University Museum played to a drum or a janggo accompaniment. The most important instruments in the Korean farmers’ band music (nongak) are several kinds of percussion instruments. Buddhist chants are accompanied by percussion instruments. They also play an important role in shaman music. If percussion instruments were omitted from traditional Korean music, it would be quite tasteless and dull. The exquisite harmonization created by curved melodic lines and musical dots is more valuable than any other element of traditional Korean music. To summarize, the harmony of curved lines and musical dots enhances the beauty of traditional Korean music. I will dare say that those who can appreciate the harmony know how to enjoy real beauty of traditional Korean music.

Pyongyangdo; Musicians and a pansori singer perform in a part of the painting.

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during a pansori recital when I was a graduate student in the early ©The Academy of Korean Studies 1980s. I heard this story from one of my professors: One day, he invited a well-known Western composer to a pansori recital in Seoul. The singer at the recital was a very famous pansori master and a holder of the Important Intangible Cultural Property for pansori. The recital was a great success. His performance was excellent. The recital was impressive and touching. The professor was also strongly moved. However, the response of the invited American composer was completely different. He raised his eyebrow as the drummer started a chuimsae, which was soon followed by the audience. It seemed the chuimsae was making him uncomfortable. However, he endured it. After the recital, he vented his dissatisfaction to the professor. “Why was the recital so noisy? I could not stand it!” The professor kindly explained to A samul-nori performance him what chuimsae is. After that, he understood the situation and managed to enjoy pansori in the future. For someone who is not used to traditional Korean music, sogak. The slowest tempo for one existing jeongak is about 20 chuimsae seems a little bizarre. The atmosphere generated by it beats per minute, and would be indicated as ♩= 20 on the metro- could be unsettling if a person didn’t know about it beforehand. nome marking of Western music. Theoretically, the slowest tem- It is important to remember, however, that chuimsae is a required po in Western music is about 40 beats per minute, and indicated musical element that cannot be excluded from a folk music con- as ♩= 40 on the metronome. So, the slowest tempo of the exist- cert or recital. ing jeongak goes beyond the temporal range of Western music. So, what is the eventual aesthetic aim of chuimsae? The However, it was considered fast among the musical pieces during drummer, as accompanist and conductor, has to lead the musi- the Joseon Dynasty. The slowness of traditional Korean music is cians and audience simultaneously. He or she should say a chui- hard to comprehend from a modern perspective. msae to encourage the musicians and lead the audience, joining Why does jeongak have such musical characteristics, and those on the stage with those on fl oor. A timely chuimsae ani- why is the tempo of jeongak so slow? The answers for these ques- mates the music, enlivens the concerts or recitals and seeks a con- tions are found in yeak-sasang. As previously stated, all feelings vivial atmosphere for all in attendance. It is highly recommended or expressions should be thoroughly suppressed in this style of for music lovers or foreigners who are interested in traditional music. The aforementioned musical characteristics, including the Korean music and culture that they experience Korean folk music tempo, are concerned with expressing feelings, and feelings in and a chuimsae. jeongak are expressed under yeak-sasang. As a result, indescrib- able scenes of musical calmness are created. The musical fl ow of minsogak is completely different from 4. Calm and Dynamic Beauty: Two Differing Musical Flows jeongak. Its musical atmosphere is very diverse. Like jeongak, minsogak has gentle, elegant, graceful and pliable melodies. Traditional Korean music can be broadly classifi ed as either However, many of its melodies are also energetic and powerful. jeongak or minsogak except for religious music. Jeongak means One can fi nd various musical ornamentations, strong musical ac- “right music” or classical music and includes court and literati cents, loud sounds, and sudden changes of emotion. Many kinds music, while minsogak covers folk music. These two genres pos- of tone-painting techniques and gesticulations are used to express sess many characteristics in common, but their musical aesthet- emotions. The curved melodic lines are also very diverse, but are ics are quite different. As mentioned previously, the fi rst genre vibrated strongly, sometimes vehemently. refrains from free musical expression of emotions because of The tempo also varies. The slowest piece is about ♩= 35, yeak-sasang. The second, however, permits musical expression and the fastest is about ♩= 230. The tempo and rhythm for sev- of emotions. eral parts of samul-nori, farmers’ band music and aniri (similar to Jeongak and minsogak show contrasting aesthetic styles: the spoken dialogue in the recitative in Western opera) of pansori “calm beauty” in the fi rst and “dynamic beauty” in the second. are fast and complicated. Sometimes the tempo and rhythm of The musical fl ow of jeongak is very peaceful and serene with aniri bring up the image of a fast and complicated rap song. The only a few exceptions. The atmosphere of its melodies is very tempo is ever-changing to express diverse emotions. gentle, elegant, graceful and pliable. One can rarely fi nd any mu- The feelings of joy and anger together as well as sorrow and sical ornamentation or accents or loud sounds in jeongak. There pleasure can be expressed without reserve and remarkably free are also no gesticulations to express emotion. The curved melodic because the expression is freed from yeak-sasang. Consequently, lines are vibrated very thinly and gently. the beauty of its dynamic musical power must exist in this style The average tempo of jeongak is slower than that of min- of music.

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INFOKOREA_2(4교).indd 62 2014-08-29 오전 9:34:10 Korea has been called “The Land of the Morning Calm.” es of humor. For example, let’s examine the Buddha (National Recently, however, it is being publicized as “Dynamic Korea.” Treasure No. 24) in Seokguram Grotto of Gyeongju; gilt-bronze These nicknames will help differentiate the characteristics of Maitreya in Meditation (National Treasure No. 78 and No. 83); jeongak and minsogak. Each image can be easily found in each and rock-carved Triad Buddha in Seosan (National Treasure No. genre: “calm beauty” in jeongak and “dynamic beauty” in min- 84). They are all smiling, beautiful, mysterious and inimitable sogak. In other words, if you look at these genres from a Western smiles named “Buddha’s fl ower and Mahākāśyapa’s smile.” And, perspective, jeongak has Apollonian characteristics, and min- what about the smile on Silla’s old roof-end tile, called “Silla sogak has Dionysian characteristics. If you can recognize these Smile?” Have you ever seen the humorous smile of the Andong aesthetics, you will better understand, appreciate and enjoy tradi- Hahoetal Mask (National Treasure No. 12)? What about the hu- tional Korean music. mor and smiles in the paintings of Kim Hong-do (1745-1806?) and Shin Yun-bok (1758-?). These beautiful smiles can be found in traditional Korean fi ne arts, as well as in traditional Korean 5. Han and Humor music. Graceful and animated melodies, the imperfect 5/4 or 5/8 beat in Western music and the omission of half the jangdan are a It is often said that traditional Korean music is sad because the few examples. The smiles and humor in traditional Korean music melodies are full of bitterness and grief. It is also said that it is dif- and fi ne art could only be created by positive and cheerful spirits. fi cult to fi nd brightness and cheer in the music. These statements Sometimes we can fi nd the smiles and humor in the audi- are only partially true. While it is true that much of traditional ence’s response. Audience members will sometimes burst into Korean music can be doleful, there are many kinds of joyful, wit- laughter and applause while watching an exciting part of pansori. ty, merry and humorous aesthetic elements in it as well. These el- Laughing and applause might also come during a tragic scene. If ements are not well-known to the general public and music lovers. anyone ever has the chance to see a full version, he or she will This preconception seems to have taken root widely and fi nd himself or herself laughing and applauding instead of crying. deeply among the Korean population and music lovers, especially Han does not solely represent the aesthetic world of tradi- lovers of Western music. I once had a great experience of enjoy- tional Korean music. It’s only one element that can be found in ing a traditional Korean music concert in a provincial city. The it. Han and humor blend together well. This aesthetic fl avor of repertoire was great, and the musicians played beautifully. The han and humor, however, cannot be found in court music because music was mirthful, delightful and rapturous. After the concert, it was infl uenced by yeak-sasang. It is mainly found in the folk however, I was surprised to hear a comment from a well-known music and some literati music. amateur critic. He was a medical doctor who had considerable insight on music, especially traditional Korean music. He said

the concert was very good, but the music was too sad. That was ©National Museum of Korea its only fl aw. He added, “That cannot be helped because all traditional Korean music is sad, and Koreans have suffered a lot of sadness.” His comment was completely different from what I felt and thought. I thought that he must have had a prejudice about the music. Unfortunately, I have often met these sorts of intellectuals. The sadness in traditional Korean music and art is called han. Simply put, han expresses all the condensed distressing elements experienced by the Korean people. The aesthetic conception of it is very complicated, in contrast. Historically, Korea has seen a lot of tragedy, such as wars, poverty and Japanese imperialism. All this sorrow and negative sentimentalism has been completely melted, condensed and then expressed in traditional Korean art and music, and this phenomenon is called han. Even though Koreans have suffered sadness, they have not submitted to it, choosing instead to overcome it. They have known how to sublimate these tragedies into music and art. Most transmitted traditional art and music of today can be considered as the results of the sublimation. This kind of sublimation cannot be generated by negative human nature or attitude but by positive and jovial human nature or attitude. Most Koreans have positive attitudes and cheerful personali- ties. They have dealt with sadness, but have never lost their sens- Mudong, Dancing Child with Musicians

FEATURE 63

INFOKOREA_2(4교).indd 63 2014-08-29 오전 9:34:12 Welcome to INFOKOREA

President’s Letter

The Academy of Korean Studies (AKS) was established in 1978 with the goal to fi nd the proper direction for the future of Korea and to promote Korean culture based on extensive research and education. Since its founding, the AKS has produced a lot of competent scholars and achieved remarkable research outcomes in Korean studies, and has grown into the hub of Korean studies. It has integrated and managed related materials, developed them into valuable pieces of information, and propagated Ko- rean studies and Korean culture to people at home and abroad. As part of the plan to promote international awareness of Korea, the Understand- ing Korea Project of the Center for International Affairs at the AKS has developed materials to introduce foreign educators to Korea and its culture. Infokorea, a maga- zine published for the project, provides precise and up-to-date information on Korea to readers both at home and abroad. In this year’s issue, Infokorea includes the latest statistics and articles on traditional Korean music. Infokorea will continue to play its role in propagating precise information on Korea and introducing its culture to the world. I hope that Infokorea will be a great help to anyone who is interested in learning about Korea. I would like to express my sincere gratitude to Kim Hyeon, director of the Center for International Affairs, and the staff members of the Under- standing Korea Project who have made a constant effort to publish Infokorea.

LEE Bae Yong President, Academy of Korean Studies

INFOKOREA_2(4교).indd 64 2014-08-29 오전 9:34:16 The Academy of Korean Studies

10th Anniversary of 2013 Lecture Series of the Understanding Korea Project World Distinguished Scholars

The Academy of Korean The Lecture Series of World Studies held an international Distinguished Scholars laun- academic conference and an ched by the Academy of Ko- exhibition titled the 10th An- rean Studies aims to promote niversary of the Understand- international academic ex- ing Korea Project: Achieve- changes and globalize Ko- ments and Vision, from July rean Studies through in-depth 31 to August 5, 2013. The exhibition, held at Ganainsa Art Center, lectures and discussions led by world’s distinguished scholars on offered the public an opportunity to increase the interest in the the subjects of concern to the academy. The second lecture event Understanding Korea Project by showing how Korea appears for the year 2013, held at the Academy of Korean Studies (No- in foreign school textbooks as well as documenting the proj- vember 27) and Seoul EL Tower (November 28), was delivered ect’s performance in the past ten years and vision for the days by Professor Christopher Beckwith, Department of Central Eur- to come. The exhibition was visited by about 6,000 people, in- asian Studies at Indiana University Bloomington. He offered four cluding students, and provided them with information about how lectures titled “The God of Heaven Will Know Your Thoughts,” their country was described in foreign school textbooks and the “Attested Early Buddhism,” “Sources of the Axial Age,” and achievements made through the project. Meanwhile, an interna- “Some Key Points in Empires of the Silk Road,” all of which led tional academic conference was held at Somerset Palace Hotel to intense debate among the participants. with the aims of reviewing the achievements of the Understand- ing Korea Project and fi nding more effective measures for further Training Fellowships for Textbook Experts development. In 2013, the Academy of 2013 Understanding Korea Essay Contest Korean Studies held seven educational events on Kore- The Academy of Korean an culture to which it invited Studies launched the Under- authors, publishers and edi- standing Korea Essay Con- tors of school textbooks as test with the aim of promot- well as related government ing the Understanding Korea offi cials, professors and teachers in the USA, the Netherlands, Project to a wider public and Uzbekistan, Mongolia, Austria, Kuwait and Ecuador. Each encouraging their participa- event contained seminars in which the program participants, tion. Held in September of including researchers in the Center for International Affairs this year for the second time, (CEFIA), exchanged information about the environment and the event consisted of two contents of education and school textbooks in their countries categories, “Image of Korea and ideas to improve mutual understanding and the present situ- Seen from Abroad” and “Re- ation. The participants were then invited to a series of lectures sources for Understanding and discussions on a variety of Korea-related topics, including Korea” and was participated its history, economy and culture. They were given opportuni- in by many people in Korea ties to expand their knowledge of Korea via tours to some of the and overseas. The two winners of the contest were Sin Seung- most popular historical and cultural attractions including Leeum, bok, a Korean citizen living in Vietnam, who wrote an essay, “A Gyeongju National Museum, Cheongju Early Printing Museum, View of the Image of Korea in Vietnamese School Textbooks,” Gyeongbokgung Palace, King Sejong’s Royal Tomb, Yangdong and Park Seong-gu, a Korean-American, who had sent “A Post- Village, OksanSeowon, Haeinsa Temple, Bulguksa Temple and script of the Use of the Resources for Understanding Korea with Seokguram Grotto. They were also given an opportunity to ex- a Suggestion on the Development of Resources.” The two writers perience still-expanding Korean industry via tours to Samsung received the Foreign Minister’s Prize and the Education Minis- Electronics and Hyundai Heavy Industry. Participants expressed ter’s Prize respectively. The academy sent its message of sincere their satisfaction about the cultural and academic experience they gratitude to all the several hundred participants in the contest and had while they stayed in Korea and expressed that the experi- hope for their continuous attention and support for the Under- ence played a crucial role in expanding their understanding of standing Korea Project as well as the writing contest. Korea.

INFOKOREA_2(4교).indd 65 2014-08-29 오전 9:34:20 www.ikorea.ac.kr www.ikorea.ac.kr/english www.aks.ac.kr

Participants in a fellowship training course show the paintings and calligraphic works they produced.

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