Ministry of Trade Industry and Resources

Automobile Industry Records Record-High Trade Surplus of USD 63.5 Billion for 2013

More notably, domestic sales turned around within five months since last August, prompted by an improvement of consumer sentiment and the effects of new product launches, despite a reduction in the number of operating days, which signals the recovery of the domestic market for the year. * Domestic sales trend (%): (August 2013) 29.4 → (September) -11.0 → (October) -0.1 → (November) -6.0 → (December) -6.7 → (January 2014) 4.0 In addition, the favorable trend is expected to continue as key models* will be launched and demands for RVs will grow. * New vehicles to be launched in the 1st half: Hyundai Sonata (LF), Kia Carnival (YP), Renault- Samsung QM3 Despite the growth of imported car sales in the domestic market, the industry recorded the largest exports in its history as the shares of large-sized vehicles (model-based) and RVs with high added value in exports increased*, the quality competitiveness of domestic cars improved**, the presence of domestic cars improved*** and the supply of parts to overseas plants and global businesses was increased. * Shares of large-sized and RVs in exports (%): (1996) 4.5 → (2000) 20.2 → (2010) 32.9 → (2013) 41.3 ** Korean cars won the high recognition from major evaluation organizations including IIHS and major market survey organizations, including JD Power and Consumer Report, while winning multiple awards including the vehicle of the year awards of many regions (nations). *** Hyundai Motor Company took 43rd place (7th in the automobile sector) and Kia Motors took 83th place (11th in the automobile sector) among the global top 100 brands (Interbrand, September 2013). The automobile industry significantly contributed to Korea’s trade surplus by recording a trade surplus for 30 consecutive years since 1984, and the amount of the surplus has continuously increased. *A trade deficit was recorded from 1977 to 1983, and the trade surplus has been expanded by an average of 34.3% per year since 1984. ○ 1977 - All Industries : -7.6 - Automobile Industry : -1.3 ○ 1984 - All Industries : -13.9 - Automobile Industry : 0.1 ○ 1990 - All Industries : -48.3 - Automobile Industry : 12.6 ○ 1995 - All Industries : -100.6 - Automobile Industry : 69.5 ○ 2000 - All Industries : 117.9 - Automobile Industry : 135.1 ○ 2005 - All Industries : 231.8 - Automobile Industry : 332.3 ○ 2010 - All Industries : 411.7 - Automobile Industry : 458.9 ○ 2013 - date2014-02-13

Local Automakers and Importers Subject to Penalty if Fuel Efficiency Standards Not Met

As of February 6th, the “Energy Use Rationalization Act” is being enforced, following its amendment. In a bid to toughen the government’s energy demand management, the act stipulates that local automakers and importers of foreign vehicles that fail to meet the target fuel efficiency standards for automobiles and violate the Energy Consumption Efficiency Grade Indication System will be subject to the imposition of a penalty surcharge. In addition, to foster the utilization of date2014-02-06

Sales Trend of Major Distributors for December 2013

Non-Food Sectors ○ Electronics & Culture - Year-on-Year : -3.3 - Month-on-Month : 10.7 ○ Apparel - Year-on-Year : -10.3 - Month-on-Month : -4.7 ○ Living - Year-on-Year : -5.2 - Month-on-Month : 2.8 ○ Sports - Year-on-Year : -3.7 - Month-on-Month : 2.5 ○ General Merchandise - Year-on-Year : -11.3 - Month-on-Month : 14.4 ○ Sub Total - Year-on-Year : -6.2 - Month-on-Month : 4.2       ○ Foods - Year-on-Year : -4.8 - Month-on-Month : 10.0   ○ Total - Year-on-Year : -5.7 - Month-on-Month : 8.3       Non-Food Sectors ○ General Merchandise - Year-on-Year : -3.2 - Month-on-Month : 11.5 ○ Ladies’ Formal Wear - Year-on-Year : -5.8 - Month-on-Month : -8.5 ○ Women’s Casual Wear - Year-on-Year : -2.9 - Month-on-Month : -8.7 ○ Men’s Wear - Year-on-Year : -5.7 - Month-on-Month : -8.7 ○ Children & Sports - Year-on-Year : 3.9 - Month-on-Month : -14.1 ○ Living - Year-on-Year : 2.2 - Month-on-Month : -13.8 ○ Global Brands - Year-on-Year : 8.7 - Month-on-Month : 9.5 ○ Sub Total - Year-on-Year : -0.6 - Month-on-Month : -4.1     ○ Foods - Year-on-Year : 1.1 - Month-on-Month : 12.0 ○ Total - Year-on-Year : -0.3 - Month-on-Month : -0.1         Non-Food Sectors ○ Living - Year-on-Year : 4.8 - Month-on-Month : -8.4 ○ General Merchandise - Year-on-Year : 2.1 - Month-on-Month : 10.0 ○ Tobacco, etc. - Year-on-Year : 7.3 - Month-on-Month : 0.9 ○ Sub Total - Year-on-Year : 6.6 - Month-on-Month : 0.9     Foods ○ Beverages and Processed Goods - Year-on-Year : 12.2 - Month-on-Month : -4.3 ○ Instant foods (including some perishable goods) - Year-on-Year : 12.0 - Month-on-Month : -3.2 ○ Sub Total - Year-on-Year : 12.2 - Month-on-Month : -4.1     ○ Total - Year-on-Year : 9.6 - Month-on-Month : -1.9         The revenues of all items of the so-called Super Supermarkets, or SSM, operated by large retailers, including foods, declined date2014-01-23

2013 Car Industry Trends

○ 2011 - Production : 4,657,094 - Export : 3,151,708 - Amount (USD 0.1 billion) : 453.1 - Domestic Sales : 1,579,674 - Cars Made in Korea : 1,474,637 - Imported Cars : 105,037   ○ 2011 Rate of Change - Production : 9.0 - Export : 13.7 - Amount (USD 0.1 billion) : 28.0 - Domestic Sales : 1.5 - Cars Made in Korea : 0.6 - Imported Cars : 16.0   ○ 2012 - Production : 4,561,766 - Export : 3,170,634 - Amount (USD 0.1 billion) : 472.0 - Domestic Sales : 1,541,715 - Cars Made in Korea : 1,410,857 - Imported Cars : 130,858   ○ 2012 Rate of Change - Production : -2.0 - Export : 0.6 - Amount (USD 0.1 billion) : 4.2 - Domestic Sales : -2.4 - Cars Made in Korea : -4.3 - Imported Cars : 24.6 ○ 2013 (Preliminary) - Production : 4,521,638 - Export : 3,086,394 - Amount (USD 0.1 billion) : 486.5 - Domestic Sales : 1,537,590 - Cars Made in Korea : 1,381,091 - Imported Cars : 156,497 ○ 2013 (Preliminary) Rate of Change - Production : -0.9 - Export : -2.7 - Amount (USD 0.1 billion) : 3.1 - Domestic Sales : -0.3 - Cars Made in Korea : -2.1 - Imported Cars : 19.6   * Source: Korea Automobiles Manufacturers Association and Korea Automobile Importers and Distributers Association       The export volume for 2013 was 3,086,394 units, a year-on-year decrease of 2.7%, and recorded a decline for the first time in four years since 2009 due to the high won and low yen trend, expanded global uncertainties and supply problems of major manufacturers. Nevertheless, the export amount of finished cars (based on MTI 741) reached a record-high level of USD 48.7 billion with a year-on-year increase of 3.1%, thanks to growth in the market share of large passenger vehicles and RVs. By region, exports of Korean cars were robust in the US market, which has shown a stable economic recovery, and grew in the EU and in Asia, reflecting the economic growth. However, exports declined in Latin America and Eastern Europe due to expanding local production. In China, which accounts for half of all exports to Asia, exports grew by 13.2%, prompted by growing demand caused by the urbanization of inland regions. ○ 2010 - Total : 2,772 - North America : 678 - US : 511 - EU : 298 - Eastern Europe : 241 - Middle East : 587 - Latin America : 447 - Africa : 172 - Pacific : 180 - Asia : 169 - China : 88 ○ 2010 Change - Total : 29.0 - North America : 11.4 - US : 13.7 - EU : -1.3 - Eastern Europe : 144.9 - Middle East : 39.8 - Latin America : 57.3 - Africa : -1.2 - Pacific : 22.2 - Asia : 48.2 - China : 74.2   ○ 2011 - Total : 3,152 - North America : 771 - US : 588 - EU : 426 - Eastern Europe : 268 - Middle East : 626 - Latin America : 495 - Africa : 180 - Pacific : 161 - Asia : 225 - China : 129 ○ 2011 Change - Total : 13.7 - North America : 13.7 - US : 15.1 - EU : 42.8 - Eastern Europe : 11.0 - Middle East : 6.7 - Latin America : 10.9 - Africa : 5.0 - Pacific : -11.0 - Asia : 32.6 - China : 45.7   ○ 2012 - Total : 3,171 - North America : 905 - US : 694 - EU : 398 - Eastern Europe : 284 - Middle East : 614 - Latin America : 433 - Africa : 1 date2014-01-15

Car Sales Figures for August

Car Sales Figures for August Car Sales Figures for August The Ministry of Trade, Industry and Energy has released its car sales figures for August. The nation’s car production rose 44.3 percent year on year to 342,624 vehicles due to a low base effect. As consumer confidence improved, the number of vehicles sold on the domestic market climbed 29.4 percent to 125,044 vehicles. Led by strong marketing efforts and the introduction of new models, sales of domestic cars surged 29.0 percent. Th date2013-09-12

Retail Sales Figures for July

○ Percentage of Total Sales - Household appliances and cultural goods : 12.7% - Apparel : 7.4% - Household goods : 18.9% - Sporting goods : 4.7% - General goods : 4.4% - Food : 52.0% ○ Growth Rate - Household appliances and cultural goods : -1.2% - Apparel : -8.8% - Household goods : -4.3% - Sporting goods : -6.8% - General goods : -7.0% - Food : -4.6%         ○ Percentage of Total Sales - General goods : 21.3% - Women’s suits : 8.7% - Women’s casual wear : 12.6% - Men’s clothing : 6.8% - Children’s goods and sporting goods : 13.0% - Household goods : 10.4% - Luxury goods : 11.9% - Food : 15.3%   ○ Growth Rate - General goods : -3.8% - Women’s suits : -4.8% - Women’s casual wear : -2.4% - Men’s clothing : -7.8% - Children’s goods and sporting goods : -0.7% - Household goods : 4.2% - Luxury goods : 1.4% - Food : 5.9%       ○ Percentage of Total Sales - Household goods : 3.8% - General goods : 3.4% - Others : 37.2% - Food : 55.6%   ○ Growth Rate - Household goods : 13.0% - General goods : -0.1% - Others : 7.7% - Food : 8.9%   - Others include tobacco products.       Sales Performance of Major Super Supermarket (SSM) Chains ○ Percentage of Total Sales - Daily necessities : 9.7% - General goods : 4.7% - Food : 85.6%   ○ Growth Rate - Daily necessities : -2.7% - General goods : -9.7% - Food : -3.6%     - Daily necessities include detergent, toothpaste, cosmetics and feminine products. date2013-08-22

Car Sales Figures for July

Car Sales Figures for July The Ministry of Trade, Industry and Energy has released its car sales figures for July. The nation’s car production declined 6.1 percent year on year to 334,139 vehicles due to partial strikes of auto workers. However the number of vehicles sold on the domestic market rose 5.8 percent to 140,642 vehicles thanks to the introduction of new models by domestic auto makers and brisk sales of imported cars. Even amid unfavorable economic conditions, new models and str date2013-08-12

Retail Sales Figures for June

○ Percentage of Total Sales - Household appliances and cultural goods : 12.2% - Apparel : 8.2% - Household goods : 19.1% - Sporting goods : 4.5% - General goods : 4.6% - Food : 51.4%   ○ Growth Rate - Household appliances and cultural goods : 20.6% - Apparel : 4.4% - Household goods : 4.2% - Sporting goods : 5.2% - General goods : 7.2% - Food : -0.2%         ○ Percentage of Total Sales - General goods : 20.2% - Women’s suits : 9.3% - Women’s casual wear : 12.9% - Men’s clothing : 8.9% - Children’s goods and sporting goods : 14.1% - Household goods : 9.6% - Luxury goods : 12.6% - Food : 12.4% ○ Growth Rate - General goods : 1.1% - Women’s suits : -3.1% - Women’s casual wear : 3.2% - Men’s clothing : 0.0% - Children’s goods and sporting goods : 4.1% - Household goods : 15.7% - Luxury goods : 5.4% - Food : 4.6%       ○ Percentage of Total Sales - Household goods : 3.4% - General goods : 3.3% - Others : 36.6% - Food : 56.8%   ○ Growth Rate - Household goods : 11.5% - General goods : -0.1% - Others : 7.6% - Food : 10.8%   Sales Performance of Major Super Supermarket (SSM) Chains ○ Percentage of Total Sales - Daily necessities : 9.3% - General goods : 4.9% - Food : 85.8%   ○ Growth Rate - Daily necessities : -2.3% - General goods : -4.9% - Food : -2.5%   - Daily necessities include detergent, toothpaste, cosmetics and feminine products.     date2013-07-25

MOTIE Kickstarts Nano Korea 2013

date2013-07-19

Car Sales Figures for First Half of 2013

The Ministry of Trade, Industry and Energy has released its car sales figures for the first half of 2013. The nation’s car production fell 4.3 percent to 2,279,790 vehicles mainly due to reduced working hours. Exports for the first six months declined 6.7 percent to 1,587,273 vehicles, with rising overseas production and a weaker Japanese yen as contributing factors. While exports to the United States continued to show modest growth on the back of market recovery, Korea sent fewer cars t date2013-07-11