Ministry of Trade Industry and Resources

Sales Trends of Major Retailers for May 2014

Sales of supermarkets grew by 1.2% year-on-year and 18.8% month-on-month. Supermarkets recorded growth in sales for the first time in four months due to the fact that there were more holidays compared to the same period in the previous year, and an uptick in demand for food and home appliances due to the World Cup. Non-food sales grew significantly due to promotion events in May, the Month of Family, contributing to the significant sales growth month-on-month. The sales growth rates of supermarkets by category are as follows: Non-Food ○ Home Appliances & Culture - Year-on-Year : 13.4 - Month-on-Month : 32.8 ○ Apparel - Year-on-Year : -8.6 - Month-on-Month : 24.2 ○ Home Supplies - Year-on-Year : -1.1 - Month-on-Month : 18.5 ○ Sports - Year-on-Year : -1.3 - Month-on-Month : 27.6 ○ General Merchandise - Year-on-Year : -6.6 - Month-on-Month : 27.5 ○ Subtotal - Year-on-Year : 0.5 - Month-on-Month : 24.8   ○ Foods - Year-on-Year : 2.3 - Month-on-Month : 12.6 ○ Total - Year-on-Year : 1.2 - Month-on-Month : 18.8       Sales of department stores grew by 0.8% year-on-year and by 8.0% month-on-month. Sales grew slightly compared to May 2013, which was attributable to the earlier off-season events than the previous year and the sales growth in cooling systems for the summer and in TVs for the World Cup. Sales in all categories grew month-on-month, thanks to the added demand related to the Month of Family, more holidays, more operating days during holidays and better consumer sentiment. The sales growth rates of department stores by category are as follows: Non-Food ○ General Merchandise - Year-on-Year : -1.9 - Month-on-Month : 17.0 ○ Women’s Formal Dress - Year-on-Year : 0.8 - Month-on-Month : 1.9 ○ Women’s Casual - Year-on-Year : -2.5 - Month-on-Month : 8.1 ○ Women’s Apparel - Year-on-Year : -3.8 - Month-on-Month : 8.2 ○ Kids & Sports - Year-on-Year : -2.3 - Month-on-Month : 3.8 ○ Home Supplies - Year-on-Year : 9.6 - Month-on-Month : 1.4 ○ Foreign Premium Brands - Year-on-Year : 7.5 - Month-on-Month : 5.0 ○ Subtotal - Year-on-Year : -0.3 - Month-on-Month : 7.5   ○ Foods - Year-on-Year : 4.6 - Month-on-Month : 10.0 ○ Total - Year-on-Year : 0.8 - Month-on-Month : 8.0         Sales of convenience stores grew by 6.9% year-on-year, and by 9.5% month-on-month. Sales grew year-on-year due to the higher number of stores operated and the growth in customers going on picnics due to there being more holidays. The month-on-month sales growth was attributed to the sales growth in foods, including beverages and beer. The sales growth rates of convenience stores by category are as follows: Non-Food ○ Daily Commodities - Year-on-Year : 4.5 - Month-on-Month : 6.2 ○ General Merchandise* - Year-on-Year : -4.9 - Month-on-Month : 18.9 ○ Tobacco & Other goods - Year-on-Year : 3.9 - Month-on-Month : 5.8 ○ Subtotal - Year-on-Year : 3.2 - Month-on-Month : 6.8   Foods ○ Beverages & Processed Goods - Year-on-Year : 10.9 - Month-on-Month : 13.2 ○ Instant Foods (Specific Perishable Goods) - Year-on-Year : 2.8 - Month-on-Month : 0.7 ○ Subtotal - Year-on-Year : 9.9 - Month-on-Month : 11.6   ○ Total - Year-on-Year : 6.9 - Month-on-Month : 9.5 * Books, magazines, lottery tickets and gift certificates       The sales of SSMs declined by 0.2% year-on-year, but grew by 7.2% month-on-month. The year-on-year sales decline due to obligatory off-days on weekends and the growing number of stores with date2014-06-26

May Car Industry Trend

* Comparison of business days: (May 2013) 21 days → (May 2014) 19 days (two days less) Some plants voluntarily closed on May 2 (Fri): Kia’s Hwaseong Plant, GM’s Gunsan Plant and Renault’s Busan Plant * Exports by GM Korea to EU (From Jan to Apr 2013 → From Jan to Apr 2014): 19,017 units→11,658 units (down 38.3%) Exports by GM Korea to Eastern Europe (From Jan to Apr 2013 → From Jan to Apr 2014): 23,405 units →22,203 units (down 5.1%) ○ 2014 May - Production : 373,470 - Domestic Sales : 137,396 - Domestic Cars : 122,082 - Imported Cars : 15,314 - Export : 255,187 - (Amount) : 41.4 ○ Month-on-Month - Production : -13.9 - Domestic Sales : -7.0 - Domestic Cars : -6.8 - Imported Cars : -8.4 - Export : -14.9 - (Amount) : -12.6 ○ Year-on-Year - Production : -3.0 - Domestic Sales : 3.0 - Domestic Cars : 1.7 - Imported Cars : 14.2 - Export : -5.1 - (Amount) : -0.5     ○ 2014 Jan to May - Production : 1,962,122 - Domestic Sales : 667,199 - Domestic Cars : 590,739 - Imported Cars : 76,460 - Export : 1,342,638 - (Amount) : 214.7 ○ Year- on -Year - Production : 4.1 - Domestic Sales : 6.8 - Domestic Cars : 4.9 - Imported Cars : 23.9 - Export : 2.4 - (Amount) : 6.5       Despite the weak consumer demand and less business days, the domestic sales recorded growth for five consecutive months with year-on-year growth of 3.0% thanks to the effect of the launch of new cars and growing demand for RVs. Meanwhile, the export volume of the automotive sector for May was recorded at 255,187 units, a year-on-year decline of 5.1%, due to the decline in exports by GM Korea to EU and Eastern Europe. date2014-06-13

Sales Trends of Major Retailers for April 2014

Non-Foods ○ Electronics & Cultural Goods - Year-on-Year : 3.1 - Month-on-Month : -20.9 - Year-on-Year (From January to April) : 3.5 ○ Apparel Goods - Year-on-Year : -3.9 - Month-on-Month : -7.6 - Year-on-Year (From January to April) : -6.7 ○ Home Supplies - Year-on-Year : -5.7 - Month-on-Month : -16.4 - Year-on-Year (From January to April) : -4.6 ○ Sports Goods - Year-on-Year : -0.8 - Month-on-Month : -8.4 - Year-on-Year (From January to April) : -1.6 ○ General Merchandise - Year-on-Year : -5.9 - Month-on-Month : -14.8 - Year-on-Year (From January to April) : -5.1 ○ Sub Total - Year-on-Year : -2.9 - Month-on-Month : -15.7 - Year-on-Year (From January to April) : -2.8     ○ Foods - Year-on-Year : -5.3 - Month-on-Month : -11.8 - Year-on-Year (From January to April) : -3.5 ○ Total - Year-on-Year : -4.1 - Month-on-Month : -14.3 - Year-on-Year (From January to April) : -3.5         Revenues of department stores also declined by 1.4% year-on-year, and by 7.2% month-on-month. Revenues of clothing, general merchandise and foods declined year-on-year due to less PR activities and weaker consumer confidence, while the sales growth of foreign brands, which had been thriving, was slowed down, leading to a slight decline in overall sales. Sales of all categories, especially sales of foreign brands, declined month-on-month, with the exception of the menswear and kids sports categories which showed sales growth. The revenues growth rate of department stores by product is as follows: Non-Foods ○ General Merchandise - Year-on-Year : -3.9 - Month-on-Month : -5.8 - Year-on-Year (From January to April) : -2.0 ○ Women’s Suit - Year-on-Year : -4.1 - Month-on-Month : -12.1 - Year-on-Year (From January to April) : -4.0 ○ Women’s Casual - Year-on-Year : -5.2 - Month-on-Month : -14.3 - Year-on-Year (From January to April) : -2.0 ○ Menswear - Year-on-Year : -0.4 - Month-on-Month : 3.0 - Year-on-Year (From January to April) : -2.8 ○ Kids Sports - Year-on-Year : 5.1 - Month-on-Month : 0.8 - Year-on-Year (From January to April) : 2.5 ○ Home Supplies - Year-on-Year : -0.8 - Month-on-Month : -5.3 - Year-on-Year (From January to April) : 3.5 ○ Foreign Brands - Year-on-Year : 0.9 - Month-on-Month : -15.4 - Year-on-Year (From January to April) : 8.0 ○ Sub Total - Year-on-Year : -1.3 - Month-on-Month : -7.5 - Year-on-Year (From January to April) : 0.3     ○ Foods - Year-on-Year : -0.8 - Month-on-Month : -4.4 - Year-on-Year (From January to April) : 2.3 ○ Total - Year-on-Year : -1.4 - Month-on-Month : -7.2 - Year-on-Year (From January to April) : 0.5             The reve date2014-05-22

April Car Industry Trend

Also, despite the decline in the Won/USD exchange rate, exports increased by 14% - 299, 268 cars – thanks to the recovery of major markets, such as the US and China. * Won/USD Exchange Rate Trend (Won): 1,064.5(End of March) → 1,041.5(4/9) → 1,035.0(4/28) →1,030.6 (4/29) ○ 2014 April - Production : 433,799 - Domestic sales : 147,765 - Domestic : 131,053 - Import : 16,712 - Export : 299,268 - (Amount) ○ Month-on-month - Production : 1.9 - Domestic sales : 6.9 - Domestic : 7.0 - Import : 6.2 - Export : 4.9 - (Amount) : 4.7 ○ Year-on-year (month) - Production : 12.3 - Domestic sales : 11.2 - Domestic : 10.2 - Import : 25.5 - Export : 14.0 - (Amount) : 18.9       ○ 2014 Jan-April - Production : 1,588,652 - Domestic sales : 529,803 - Domestic : 468,657 - Import : 61,146 - Export : 1,086,772 - (Amount) : 174.3 ○ Year-on-year (quarter) - Production : 5.9 - Domestic sales : 8.0 - Domestic : 5.9 - Import : 26.6 - Export : 4.2 - (Amount) : 8.9         Prompted by the new car effect and the increase of the average export price, the export amount for completed cars (as of MTI741, preliminary) reached 4.83 billion USD, the largest figure in the history of Korea’s automobile industry. Car parts (as of MTI742, preliminary) recorded 2.34 billion USD in exports thanks to the expansion of overseas production by the domestic automakers and an increase of the supply by overseas automakers. This figure is the second-largest figure for the monthly parts export amount. The number of complete cars produced by Korean automakers abroad was recorded as 1,018,332 cars for the first quarter of 2013 and as 1,088,902 cars for the first quarter of this year. date2014-05-16

Sales Trends of Major Retailers for March 2014

The overall sales of major retailers grew in March 2014. The sales of supermarkets declined by 3.7% year-on-year, but grew by 23.5% month-on-month. - Compared to March 2013: Sales of the apparel and sports sectors declined due to the hot days following the last cold snap. - Sales showed a year-on-year decline of 3.3% in the 1st quarter, marking the eighth consecutive quarter of decline since the sales regulations were adopted in the 2nd quarter of 2012. - Compared to March 2013: Sales grew sharply, fueled by the base effect created by the low sales of the previous month. Sales of department stores declined by 1.1% year-on-year and grew by 16.6% month-on-month. - Compared to April 2013: Sales of the fashion sector dropped due to the lower temperature and less holidays compared to the previous year. Sales showed year-on-year growth of 1.1% in the 1st quarter. Sales in the fashion sector declined, while sales of foreign brands, home supplies, kids & sports and foods sectors grew by 10.5%, 5%, 1.6% and 3.2%, respectively. - Compared to February 2014: Sales of all items grew, due to the low sales of the previous month and the increase in the number of operating days, including holidays (plus three days). Sales of convenience stores showed year-on-year growth of 6.5% and month-on-month growth of 18.8%. - Compared to April 2013: Sales of processed foods, including dairy products and ice cream products of PBs grew year-on-year. _ Compared to February 2014: Sales of beverages, processed foods and tobacco products grew sharply thanks to the increase in operating days. In keeping with this trend, sales of SSMs also showed a year-on-year decline of 2.1% and month-on-month growth of 21.0%. - Compared to March 2013: With the exception of meat products, which showed a slight sales growth, all sectors recorded a decline in sales, as a result of the drop in vegetable prices and the continued sales decline of fisheries goods. - Compared to February 2014: The sales of all items grew, which could partly be attributed to more operating days, including holidays. ※ This analysis is based on the ordinary sales of major retailers (three department stores, three supermarkets, four convenience stores and 4 SSMs) and aims to identify the consumption trends. This analysis may have discrepancies in the growth rates or the trends with data of Statistics Korea obtained through the complete enumeration of large retail businesses due to differences in scope and standards. ※ Major supermarkets (EMart, Lotte and Home plus), department stores (Hyundai, Lotte and Shinsegae), convenience stores (CU, GS25, 7-Eleven and BuyTheWay), and SSM (Lotte, GS Super, Home plus express and Everyday Retail) date2014-04-25

Automobile export sales for March is the second largest in history

- Overall Manufacturing •Domestic consumption• Exports in H1 stay strong - The Ministry of Trade, Industry and Energy (Minister: Yoon Sang-jik) announced that they calculated the figures in the Automobile industry for March, and manufacturing (425,510 vehicles) increased by 16.4%, domestic consumption (138,230) 5.4%, and exports (286,754) 9.9%, compared to the same month of the previous year. The number of vehicles manufactured was recorded at 425,510, up by 16.4% compared to the sam date2014-04-09

Sales Trend of Major Distributors for February 2014

Non-Food Sectors ○ Electronics & Culture - Year-on-Year : -6.9 - Month-on-Month : -9.4 ○ Apparel - Year-on-Year : -21.9 - Month-on-Month : -22.5 ○ Living - Year-on-Year : -18.6 - Month-on-Month : -23.4 ○ Sports - Year-on-Year : -3.8 - Month-on-Month : -9.8 ○ General Merchandise - Year-on-Year : -18.3 - Month-on-Month : -17.5 ○ Sub Total - Year-on-Year : -15.3 - Month-on-Month : -18.3     Foods ○ Sub Total - Year-on-Year : -29.3 - Month-on-Month : -37.8 ○ Total - Year-on-Year : -23.1 - Month-on-Month : -30.0           Non-Food Sectors ○ General Merchandise - Year-on-Year : -2.5 - Month-on-Month : -6.7 ○ Ladies’ Formal Wear - Year-on-Year : 2.7 - Month-on-Month : -17.2 ○ Women’s Casual Wear - Year-on-Year : 2.5 - Month-on-Month : -10.6 ○ Men’s Wear - Year-on-Year : -4.6 - Month-on-Month : -31.5 ○ Children & Sports - Year-on-Year : 3.3 - Month-on-Month : -8.7 ○ Living - Year-on-Year : 12.7 - Month-on-Month : -4.7 ○ Global Brands - Year-on-Year : 18.1 - Month-on-Month : 2.6 ○ Sub Total - Year-on-Year : 3.9 - Month-on-Month : -10.1       ○ Foods - Year-on-Year : -29.2 - Month-on-Month : -43.9 ○ Total - Year-on-Year : -2.4 - Month-on-Month : -16.8           Revenues of convenience stores grew by 4.1% year-on-year due to increased sales of processed food such as beverages, fueled by the warmer climate than the previous year. However, revenues declined by 7.8% month-on-month due to a revenue decrease in all products, including tobacco, as the holiday season was over last month. Non-Food Sectors ○ Living - Year-on-Year : 2.0 - Month-on-Month : -8.9 - Percentage of sales(‘14.2) : 3.5 ○ General Merchandise* - Year-on-Year : -15.7 - Month-on-Month : -8.9 - Percentage of sales(‘14.2) : 4.7 ○ Tobacco, etc. - Year-on-Year : 3.0 - Month-on-Month : -7.6 - Percentage of sales(‘14.2) : 37.7 ○ Sub Total - Year-on-Year : 0.7 - Month-on-Month : -7.8 - Percentage of sales(‘14.2) : 45.9     Foods ○ Beverages and Processed Goods - Year-on-Year : 7.5 - Month-on-Month : -6.9 - Percentage of sales(‘14.2) : 47.4 ○ Instant foods (including some perishable goods) - Year-on-Year : 5.7 - Month-on-Month : -13.2 - Percentage of sales(‘14.2) : 6.7 ○ Sub Total - Year-on-Year : 7.3 - Month-on-Month : -7.7 - Percentage of sales(‘14.2) : 54.1       ○ Total - Year-on-Year : 4.1 - Month-on-Month : -7.7 - Per date2014-03-27

Sales Trend of Major Distributors for January 2014

Non-Food Sectors ○ Electronics & Culture - Year-on-Year : 19.6 - Month-on-Month : -12.5 ○ Apparel - Year-on-Year : 6.0 - Month-on-Month : -32.6 ○ Living - Year-on-Year : 11.8 - Month-on-Month : 13.1 ○ Sports - Year-on-Year : 1.8 - Month-on-Month : -25.3 ○ General Merchandise - Year-on-Year : 10.3 - Month-on-Month : 19.3 ○ Sub Total - Year-on-Year : 11.8 - Month-on-Month : -4.7       ○ Foods - Year-on-Year : 25.3 - Month-on-Month : 41.8 ○ Total - Year-on-Year : 18.6 - Month-on-Month : 16.2         Non-Food Sectors ○ General Merchandise - Year-on-Year : 2.8 - Month-on-Month : -19.1 ○ Ladies’ Formal Wear - Year-on-Year : -9.9 - Month-on-Month : -13.4 ○ Women’s Casual Wear - Year-on-Year : -0.6 - Month-on-Month : -28.0 ○ Men’s Wear - Year-on-Year : -3.3 - Month-on-Month : -9.0 ○ Children & Sports - Year-on-Year : 3.7 - Month-on-Month : -29.0 ○ Living - Year-on-Year : 4.6 - Month-on-Month : 0.6 ○ Global Brands - Year-on-Year : 11.3 - Month-on-Month : -23.3 ○ Sub Total - Year-on-Year : 1.1 - Month-on-Month : -19.6 ○ Foods - Year-on-Year : 37.7 - Month-on-Month : 45.3 ○ Total - Year-on-Year : 6.8 - Month-on-Month : -13.4           Meanwhile, the revenues of convenience stores grew by 9.7% year-on-year, fueled by robust sales of liquor and gift sets during the holiday seasons. However, the revenues declined by 2.3% month-on-month due to a revenue decrease in tobacco, as the number of smokers tends to decrease at the start of the year. Non-Food Sectors ○ Living - Year-on-Year : 17.9 - Month-on-Month : 0.4 - Percentage in sales(‘14.1) : 3.6 ○ General Merchandise* - Year-on-Year : 16.1 - Month-on-Month : 15.9 - Percentage in sales(‘14.1) : 4.7 ○ Tobacco, etc. - Year-on-Year : 3.5 - Month-on-Month : -4.1 - Percentage in sales(‘14.1) : 37.6 ○ Sub Total - Year-on-Year : 5.7 - Month-on-Month : -2.0 - Percentage in sales(‘14.1) : 45.9     Foods ○ Beverages and Processed Goods - Year-on-Year : 13.8 - Month-on-Month : -2.2 - Percentage in sales(‘14.1) : 47.0 ○ Instant foods (including some perishable goods) - Year-on-Year : 10.3 - Month-on-Month : -4.5 - Percentage in sales(‘14.1) : 7.1 ○ Sub Total - Year-on-Year : 13.3 - Month-on-Month : -2.5 - Percentage in sales(‘14.1) : 54.1 ○ Total - Year-on-Year : 9.7 - Month-on-Month : -2.3 - Percentage in sales(‘14.1) : 100     * Books, magazines, lottery, and gift certificates         The revenue of SSM (Super Supermarkets) also increased by 3.7% year-on-year and by 17.7% month-on-month thanks to robust sales in agricultural and fisheries and general merchandise, prompted by the growing demand during the holiday season. [Revenue Growt date2014-02-27

Bigger Market for Companies, and Better Jobs for People

Objective : Bigger Market for Companies, and Better Jobs for People   Strategies : ㅁ Establish virtuous cycle of export/investment and domestic demand ① Expand exports of SMEs/Enterprise with high potential ② Reform regulations & facilitate investment ③ Nurture new industry to create jobs ㅁ Nurture creativity/innovation-oriented new growth engines ④ First Mover innovation ⑤ Establish a creative industrial ecosystem ⑥ Anchor creative economy of the region   ㅁ Promote overseas market entry by companies and individuals ⑦ Continuously promote open trade policy ⑧ Maximize achievement of summit diplomacy ⑨ Help trade cooperation in the resources/energy sector to bear fruit ㅁ Normalization of the resources/energy sector (⑩)           Export risk of SMEs/High potential enterprises is increasing, as the US tapering has increased the volatility of the exchange rate and concerns on the crisis of newly emerging countries. Domestic demand-oriented companies and export startups are suffering from a lack of information on overseas markets and export financing. Under these circumstances, the Ministry will step up its efforts to increase the resilience of SMEs/High potential enterprises. The Ministry is expected to expand the support available for trade financing by providing a special contribution in the private sector and integrating the overseas market information of 34 export supporting organizations in order to make it available online so that SMEs can have easy access to information on exporting. In addition, as part of its efforts to increase the number of SMEs exporters to 100,000 by 2017 (87,000 in 2013), the Ministry will extend customized integrated programs such as precise analysis of export capabilities, 1:1 consulting, provision of channels, and support for trade finance, and will operate a dedicated trading company starting this July. The competitiveness of the global market is continuously growing due to the promotion of a renaissance in the manufacturing industry in advanced nations; the accelerating recovery in the US manufacturing sector spurred by the Shale gas boom; Japan’s aggressive market expansion thanks to the weak Yen; and Germany’s promotion of its Industry 4.0 campaign. However, Korea is lagging behind in terms of creating n date2014-02-25

Analysis of Trend in R&D investments by the Top 1,000 Korean Companies in terms of R&D Investment Amount in 2012

The Ministry of Trade, Industry, and Energy (Minister Yoon Sang-jick) and the Korea Institute for the Advancement of Technology (President Jeong Jae-hoon) conducted a study on the R&D investment trend of the 1,000 Korean companies that made the highest R&D investments. The total R&D investment by these top 1,000 companies was recorded as KRW 35.6 trillion, up 12.7% from 2011. * The top 1,000 companies in the area of R&D investment were selected based upon the 2012 audit report date2014-02-21