The Monthly Survey of Mining and

Manufacturing

2011. 12

Survey Title Survey PeriodNumber of

Survey objects

Survey Method

Monthly Survey of Construction Orders Received and Value of Construction

Completed1~18th/1~22nd 1,766 Interview, Electronic

Monthly survey of Mining and Manufacturing 1~19th 8,000 Interview, Electronic

Monthly Survey of Machinery Orders Received 5~19th 145 Interview, Electronic

Current Cyber Shopping Survey 1~22nd 1,011 Interview, Electronic

Current Service Industry Survey 1~20th 9,200 Interview, Electronic

Consumer Price Survey 1~2nd 23,000 Interview, Other

Current E-Commerce Survey 15th~31st 1,682 Interview, 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 2005.    (2) the weight calculated based on the results of the 2005 annual survey   (3) the representative products reduced from 647 to 633

1. 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

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.

   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 =

100.0

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 establishmentcomplete survey in case the establishment

have more than 100 employeeshave more than 100 employees

- cut-off sample survey in case - cut-off sample survey in case

the establishment have less than 100the establishment have less than 100

Ⅱ. Sampling and Data collection 1. Sampling

RegionalProduct

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

MaintainingMaintainingestablishmentsestablishments

Survey &Survey &Data inputData input

Making the IIPMaking the IIPPrelimenarily Prelimenarily

Volume ReviewVolume Review

IIP confirmed &IIP confirmed &AnalysisAnalysis

AnnouncementAnnouncement

말일 -당월4 일

매월 5 일 -19

일

매월 20 일

매월 20 일 -23 일

매월 23 일 -26 일

매월 27 일 -30 일

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.

Thank you!