Min Woo KIM National Income Statistics & Coordination Team National Accounts Office Economic Statistics Department The Bank of Korea OECD Working Party on National Accounts 1 ~ 3 December 2010, Paris, France

PhaseMilestonesImplementation Pre SNA Basic data on production, prices, consumption, trade, etc. Phase 1 GDP by industry and expenditure at current and constant prices Phase 2 Phase 1 plus External transactions and aggregates: GNI, GDI, savings, and etc. Phase 3 Phase 2 plus Production account for all institutional sectors and Government integrated account 1995 Phase 4 Phase 3 plus integrated accounts for all institutional sectors until capital accounts Phase 5 Phase 4 plus financial accounts for all institutional sectors2000 Phase 6 Phase 5 plus Other changes in assets accounts and Balance sheet for all institutional sectors 2009 (Test Compilation Completed)

Items1993 SNA recommendation Status of implementation ImplementedPartly implementedNot yet implemented ProductionInclusion of illegal activities (but not specified) Production of goods within households for own Consumption Output and value added to be valued at basic, producers and purchasers prices Premium supplements to be included in the output of insurance ExpenditureDistribution of FISIM to industry and final users Classification of expenditures into COFOG, COICOP, COPP and COPNI

Items1993 SNA recommendation Status of implementation ImplementedPartly implementedNot yet implemented Institutional sector classification and sequence of accounts Sequence of Accounts have to be compiled for five broad institutional sectors. Commodity flow and balances - Supply and use table, I/O Table Production account – Uses and resources of GDP by institutions/activity Income and appropriation account – Distribution of nati onal income by institution and its appropriation Accumulation account – Capital account, financial account, other changes in volume of assets account, revaluation account (Test Compilation Completed) Balance sheets – To be compiled as part of integrated set of accounts (Test Compilation Completed)

Items1993 SNA recommendation Status of implementation ImplementedPartly implementedNot yet implemented Economic assets Entire expenditure on mineral exploration to be treated as capital formation Expenditure on software Government defence expenditure on fixed assets other than weapons and their means of delivery Valuables Entertainment, literary or artistic originals (lack of data sources) Charging CFC on government fixed assets including roads and bridges Prices and volume measures Estimates at constant prices for full system of national accounts Chain volume measures

Items1993 SNA recommendation Status of implementation ImplementedPartly implementedNot yet implemented Time of recording Cultivated natural growth of crops to be included in output as work in progress or gross fixed capital formation over the entire period of the growth process. Livestock raised for food are to be treated as work-in-progress until slaughtered. Furthermore, entries are to be recorded for own account production as the animal grows. The speculative construction to be shown as part of inventories until the ownership has been transferred to the eventual user of the asset. Hence it should not be treated as gross fixed capital formation until that time. Output remains part of the work in progress of the institutional unit producing the asset until sold. All transactions to be recorded on an accrual basis in order to reflect the time when the transactions occurred rather than when it may be paid for. Satellite accountsNatural resources accounting (not needed in Korea) Tourism accounts (several studies completed) Social accounting matrix (several studies completed) Others The return to labour and capital for unincorporated enterprises owned by households to be termed as mixed income. No statistical discrepancy; emphasis on classification, simplification and harmonisation

Element Assessment Comments ObservedLargely Observed 0. Prerequisites of quality 0.1 Legal and institutional environment 0.2 Resources 0.3 Relevance 0.4 Other quality management 1. Assurances of integrity 1.1 Professionalism 1.2 Transparency 1.3 Ethical standards 2. Methodological soundness 2.1 Concepts and definitions 2.2 Scope 2.3 Classification/sectorization 2.4 Basis for recording 3. Accuracy and reliability 3.1 Source data No specific estimates for the non-observed economy. Not large in Korea. Use the Denton method for benchmarking. Periodically undertake revisions analyses of the type conducted in Recommendations fully accepted. 3.2 Assessment of source data 3.3 Statistical techniques 3.4 Assessment and validation of intermediate data and statistical outputs 3.5 Revision studies 4. Serviceability 4.1 Periodicity and timeliness 4.2 Consistency 4.3 Revision policy and practice 5. Accessibility 5.1 Data accessibility BOK's online database requires the installation of software that may create computer security concerns for the users outside Korea. 5.2 Metadata accessibility 5.3 Assistance to users

Translation of 2008 SNA Manual (Done) Rearrangement of internal organization Priority setup: Main changes for Korean economy Seminars and workshops Research, test compilation, and comparison Backcasting

National Account Office National Income Statistics and Coordination Team National Expenditure Statistics Team Input-Output StatisticsTeam National Balance Sheet Team Price Statistics Team Balance of Payment Statistics Team International Investment Position Team Foreign Exchange Analysis Team Monetary & Financial Statistics Team Flow of Funds Team Corporate Statistics Team Statistics Planning Team Statistics Development Team Economic Survey Team * To-be organization set up in 2011

TranslationofManual Setting up Organization, Organization,Budget, and Priority InternationalSeminaron 2008 SNA Research & Test Compilation Backcasting Compilation based on 2008 SNA andPublication

Research and developments Military expenditures Entertainment, literary or artistic originals Consumption of fixed capital Financial intermediary services indirectly measured(FISIM) Goods for processing and merchanting Financial services and other issues

Research R&D Military Originals FISIM Int. trade Test compilation ResearchTest compilation ResearchTest compilation ResearchTest compilation ResearchTest compilation implementing Backcasting

Research papers on the changes from 1993 SNA to 2008 SNA prior to application Publication of Korean System of National Accounts 2014 and Comparison Table Open lectures and seminars with policymakers, academia, journals, and the general public Simultaneous compilation of National Accounts based on 1993 and 2008 SNA, if needed Implementation assessment with the international organizations