The Conference Board(R) Korea Business Cycle Indicators(SM)

Korea Leading Economic Indicators and Related Composite Indexes for

December 2005

NEW YORK, Feb. 9 /PRNewswire/ -- The Conference Board announced today
that the leading index for Korea increased 0.5 percent, while the
coincident index decreased 0.4 percent in December.

* The leading index increased again in December following a large gain in

November. The stock price index and machinery orders components

continued to be the main contributors to December's gain. The leading

index has been growing steadily at about a 3.0 percent annual rate in

recent months, but this is still below the 7.0-8.0 percent rate through

the first quarter of 2005. In addition, the strengths and weaknesses

among the leading indicators have been balanced in the period from June

to December.

* The coincident index fell in December following a large increase in

November. December's decrease is due to declines in industrial

production and total employment. At the same time, real GDP grew at an

average 7.6 percent annual rate in the second half of 2005 (including a

7.2 percent rate in the fourth quarter of 2005), up from the 3.3 percent

average annual rate in the first half of 2005. The recent behavior of

the leading index suggests that the economy should continue expanding in

the near term, but perhaps somewhat less rapidly than in the second half

of 2005.

LEADING INDICATORS. Four of the seven components that make up the
leading index increased in December. The positive contributors -- from
the largest positive contributor to the smallest -- were stock prices,
value of machinery orders, real exports FOB, and the (inverted) yield
of government public bonds. The (inverted) index of inventories to
shipment and letter of credit arrivals declined, while private
construction orders held steady in December.

With the 0.5 percent increase in December, the leading index now
stands at 149.0 (1990=100). Based on revised data, this index
increased 0.7 percent in November and was unchanged in October. During
the six-month span through December, the leading index increased 1.4
percent, with three of the seven components advancing (diffusion
index, six-month span equals 50.0 percent).

COINCIDENT INDICATORS. Only one of the four components that make up
the coincident index increased in December. The wholesale and retail
sales component increased, while industrial production and total
employment declined. Monthly cash earnings held steady in December.

With the 0.4 percent decrease in December, the coincident index now
stands at 161.4 (1990=100). Based on revised data, this index
increased 1.4 percent in November and remained unchanged in October.
During the six-month span through December, the coincident index
increased 1.2 percent, with three of the four components advancing
(diffusion index, six-month span equals 87.5 percent).

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indicators such as the Leading Economic Indicators and the Consumer
Confidence Index.

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Summary Table of Composite Indexes

2005 6-month

Oct. Nov. Dec. Jun. -Dec.

Leading Index 147.2 148.3 r 149.0

Percent Change 0.0 r +0.7 r +0.5 +1.4

Diffusion 20.0 66.7 41.7 50.0

Coincident Index 159.8 r 162.1 p 161.4 p

Percent Change 0.0 r + 1.4 p -0.4 p +1.2 p

Diffusion 75.0 100.0 37.5 87.5

n.a. Not available p Preliminary r Revised

Indexes equal 100 in 1990 Source: The Conference Board

For more information visit our Website:
http://www.conference-board.org/economics/bci/

The next release is scheduled for March 14, 2006 at 8:00 P.M. (ET)

In Korea - March 15, 2006 at 10:00 A.M. (KOR) SOURCE The Conference Board