The Monthly Survey of Mining and Manufacturing

Survey TitleSurvey Period Number of Survey objects Survey Method Monthly Survey of Construction Orders Received and Value of Construction Completed 1~18 th /1~22 nd 1,766Interview, Electronic Monthly survey of Mining and Manufacturing 1~19 th 8,000Interview, Electronic Monthly Survey of Machinery Orders Received 5~19 th 145Interview, Electronic Current Cyber Shopping Survey1~22 nd 1,011Interview, Electronic Current Service Industry Survey1~20 th 9,200Interview, Electronic Consumer Price Survey1~2 nd 23,000Interview, Other Current E-Commerce Survey15 th ~31 st 1,682Interview, Electronic Ⅰ. Monthly Economic Statistics

To reflect the structural changes quickly in the Korean economy, the Index of Industrial Production was revised in 2008 based on the results of the Mining and Manufacturing Survey in 2005 as the population data. Some major changes in compiling the IIP as a base year of 2005 : (1) the base year transferred from 2000 to (2) the weight calculated based on the results of the 2005 annual survey (3) the representative products reduced from 647 to Characteristics of the Current Index Ⅱ. Overviews of IIP

The industrial sectors included in the IIP are mining, manufacturing, and electricity and gas industries, in accordance with the Korean Standard Industrial Classification(KSIC). 2. Scope of the index 3. Base Year The base year is 2005 for all comparisons and the weights

4. Representative Series The representative prodcuts were selected by taking into account the availability of monthly data, the stability of production volume and the importance in each industrial group. The selection has also been made with a view to ensuring a higher degree of representation for each product group. (A) The Criteria for Selection of Representative Series : The series were selected by the principle of proportionately heightening the degree of representation within each group. The number of items and the degree of representation by group are given in the following table.

(B) Types of Products The type of Products for the compilation of the index is in principle, physical outputs in quantity. However, there are items which are not readily measured in quantity or cannot be simply added together due to differences in units. Therefore, 104 items such as cosmetics, clothing, vehicle parts among the representative items were measured with values. Indexes of those items were compiled, after the current values were deflated with the indexes of producers' prices.

Degree of representation by product group

5. Weight The weight of the IIP means the importance of an individual industry or an item in relation to the total industries. Thus, the changes observed in the output of the industrial series or their groups reflects the changes of their importance in the total industrial production according to the weight of the series. The criterion for fixing weight is the value-added or the net output which determines the degree of contribution to the Net National Product in the base year.

(A) Value-added Needed for each series in the index is a weight that counts only the value-added by the production which is being measured. Thus, the weight applied to the assembling of automobiles should reflect only the value-added in this particular process and should exclude the value of steel, tires and other components incorporated in the cars. Most of the weights for individual industrial production series are based on data from the 2005 Mining and Manufacturing Survey, which adopt the concept of the value of products less purchased inputs. Using Net Value Added, the value-added of individual production series is calculated

(B) Enlargement of Weight The weight of items not selected are proportionally allocated to each selected item within each of the 5 digits classification of the Korean Standard Industrial Classifications.

6. Formula of Index Computation

7. Index Linking The linking of index series of 1975~2004 based on 2000 to those of 2005 was achieved by the following process: First, if some items were transferred to other industries as a result of the revised Korean Standard Industrial classification, each former industrial index was adjusted in accordance with the new industrial classification. Second, all of the previous indexes were converted to 2000 based indexes simply by multiplying the linking coefficient to those indexes. The linking of index series of 1975~2004 based on 2000 to those of 2005 was achieved by the following process: First, if some items were transferred to other industries as a result of the revised Korean Standard Industrial classification, each former industrial index was adjusted in accordance with the new industrial classification. Second, all of the previous indexes were converted to 2000 based indexes simply by multiplying the linking coefficient to those indexes. linking coefficient based on 2005 = average index of 2005 Based on 2000

Population Economy Census (Annual Survey) Sampling Establishments surveyed More then 2p employees (More than 10 employees in some region) more than Sales on average by product Maintaining the establishments Sub- Population By Product By Region Product Maintaining the establishments complete enumerates - less than 20 establishments per product - less than 20 establishments per product sample survey complete survey in case the establishment - complete survey in case the establishment have more than 100 employees have more than 100 employees - cut-off sample survey in case - cut-off sample survey in case the establishment have less than 100 the establishment have less than 100 Ⅱ. Sampling and Data collection 1. Sampling Regional Product

Ⅳ. Outline of the Monthly survey Mining and Manufacturing To provide basic data for analyzing monthly economic trends, estimating GDP and GRDP, and measuring labor productivity by indexing changes in the production, shipment and inventory of Mining, Manufacturing, Electricity &Gas Supply and Publishing industries. To provide basic data on the current status and forecast of supply &demand of selected items by measuring the production, shipment and inventory of surveyed items To produce the Production Capacity Index which represents the production capacity of major items in the Manufacturing industry and the Operation Ratio Index which represents how much equipment is being used. 1. Purpose

Aug. 1957: Produced the Industrial Production Index of 1955 for the first time (the Bank of Korea) Index revision as of 1958 and 1960 Drew up special classification indices from 1965 Drew up the shipment Index from 1966(Korea Development Bank) Jan. 1969: Transferred the Survey to the Korea Development Bank Jul. 1970: Transferred the Survey to the National Bureau of Statistics, Economic Planning Board (the predecessor of the Statistics Korea) ～ Feb. 2008: Index revision as of 2005 Jul. 2008: Integrated the Survey of Manufacturing Production Capacity &Operation Ratio Oct. 2008: Changed the survey title into "Monthly Survey of Mining and Manufacturing" 2. History

 About 8000 establishments including CASI  Data review  Calculating IIP prelimenary  Analysis the data  Double checking  Volume checking by products  Confirming IIP and regional IIP  Analysis by product and Industry  Release announcements  Managing the changes of the establishments 21 Maintainingestablishments Survey & Data input Making the IIP Prelimenarily Volume Review IIP confirmed & Analysis Announcement 말일-당월 4일 매월 5일-19일 매월 20일 매월 20일-23일 매월 23일-26일 매월 27일-30일 3. Work Flow

5. Compiling IIP ◦ Using our own Program, We compile the IIP through our own program. ◦ Using our own Program, We compile the IIP through our own program.

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