## _cr10229 ## Source details **Canonical URL:** [_cr10229](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2010/_cr10229.pdf) ## Other formats - [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2010/_cr10229.pdf.md) - [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2010/_cr10229.pdf.json) --- ### Overall assessment - Korea’s statistics are generally of a high quality and reflect significant improvement since the 2001 ROSC Data Module. - Legal reforms: revisions to the Bank of Korea Act in February 2008, and the Statistics Act in April 2009. - Compiling agencies and principal responsibilities: - Bank of Korea (BOK): national accounts, producer price indices (PPI), monetary, and balance of payments (BOP) statistics. - Statistics Korea (KOSTAT): consumer price index (CPI). - Government finance statistics (GFS): decentralized — central government to the Fiscal Policy Bureau of the Ministry of Strategy and Finance (MOSF); local governments to the Ministry of Public Administration and Security (MOPAS) and the Ministry of Education, Science and Technology (MEST). - SDDS status: - Subscribed to the Special Data Dissemination Standard (SDDS) in September 1996; posting metadata on DSBB since March 1998. - Korea is in observance of the SDDS, using flexibility options on timeliness for general government operations data and the depository corporations survey (DCS). - Migration plans and timelines: - BPM6 as from 2010 - GFSM 2001 in 2012 - 2008 SNA in 2014 - Key cross-cutting risk: migration to new methodologies could cause inconsistencies unless compiling agencies collaborate closely. ### Key summary findings by dataset - National accounts - Methodological base: 1993 SNA; chain volume measures introduced in March 2009 with reference year 2005. - Strengths: quarterly and annual series consistent from 1970; periodicity and timeliness follow SDDS requirements; source data timely and extensive (establishment and enterprise surveys). - Issues and recommended improvements: - Use Denton method to adjust quarterly original estimates to agree with annual benchmark estimates. - No specific estimates for the non-observed economy (NOE); investigate feasibility using Labor Force Survey and other sources. - Replace depreciation with consumption of fixed capital (PIM) for sectors other than general government. - Revision studies: analyses of revisions made only when updating reference year every five years; recommendation to undertake periodic analysis of revisions for 1999 forward. - Consumer Price Index (CPI) - Concepts: follow 1993 SNA and CPIM 2004. - Coverage: all urban households except farming and fishing households; owner-occupied housing excluded from headline CPI (supplementary index exists). - Sources and scope: HIES samples about 9,000 households; 489 items (880 specifications) from 22,000 outlets in 38 cities. - Techniques: temporarily missing prices generally imputed using price movements of similar products; out-of-season prices are carried forward; Dutot formula at elementary level; Laspeyres for aggregation; weights updated every five years (plans to consider three-yearly update). - Serviceability: published monthly and released on the first business day of the following month; CPI final when first released. - Issues and recommendations: - Review treatment of owner-occupied dwellings and define headline measure in 2010 rebase. - Replace carry-forward imputation for seasonal products with unbiased methods. - Consider seasonal adjustment for CPI; users have indicated demand. - Assess feasibility of including farming and fishing households. - Producer Price Index (PPI) - Concepts: consistent with PPIM 2004; scope covers domestic transactions for selected goods and services. - Source data: prices collected from 6,100 establishments for 801 goods and 83 services. - Techniques and concerns: - Temporarily and seasonal missing prices imputed by carrying forward last reported price. - Elementary aggregates use Carli formula (simple arithmetic mean of price relatives) — introduces upward bias. - Korean commodity classification does not conform to international standard; KCPC under development for 2010 rebase. - Serviceability: published monthly, generally around the tenth day after the reference month. - Recommendations: - Implement KCPC for 2010 PPI rebase in 2013. - Introduce more sophisticated imputation techniques per PPIM 2004. - Continue study and introduce geometric mean / Jevons formula; implement annual chain Laspeyres to address substitution bias. - Explicitly identify departures from international standards in metadata. - Government Finance Statistics (GFS) - Current methodology: generally follows GFSM 1986; GFSM 2001 implementation well advanced and scheduled for publication in 2012. - Source systems: new Digital Budget and Accounting System (dBrain); many local governments have adopted accrual and double-entry bookkeeping. - Periodicity and timeliness: - Central government data disseminated monthly; general government operations disseminated annually (currently about 13 months after reference period). - SDDS flexibility used for general government operations timeliness. - Issues and recommendations: - Strive to publish general government operations within SDDS timeliness and withdraw flexibility option. - Publish detailed sources and methods in Korean and English; make national (electronic) publication for general government data and metadata. - Footnote that central government debt includes bonds issued by the FESF; involve BOK and KOSTAT in GFSM 2001 migration; consider classifying FESF into central government accounts at migration. - Monetary statistics - Framework: broadly follow MFSM; MAA consolidates BOK and FESF accounts; MAA does not identify the monetary base explicitly. - Coverage: DCS complete — BOK (and FESF), all commercial and specialized banks, and all nonbank depository corporations. - Valuation and revaluation practice: - BOK values financial assets and liabilities at book value and revalues foreign currency instruments twice yearly (end of June and December). - Recommendation to value all marketable instruments at market prices and revalue foreign-currency assets and liabilities monthly. - Timeliness: monetary statistics compiled monthly and disseminated within six weeks after the end of the month (SDDS requirement is one month); Korea uses flexibility option for DCS timeliness. - Compilation issues and recommendations: - Identify monetary base in central bank survey. - Do not include net claims on the BOK in consolidation adjustment for ODCS; present claims on and liabilities to the BOK on respective sides. - Introduce regular cross-checking procedures of positions between BOK and ODCs and among ODCs. - Withdraw SDDS flexibility option by achieving one‑month dissemination for DCS. - Balance of Payments (BOP) and IIP - Current framework: broadly in accordance with BPM5; BOK released first annual IIP in March 2003; quarterly IIP reporting since 2007. - Coverage and source data: - Main sources: customs data, FEIS, administrative data, surveys, direct reporting; timely FEIS coverage of financial institutions. - Partial scope limitations: reinvested earnings and foreign-currency transactions of enterprises through accounts held abroad only partially covered. - Income transactions recorded on a payment basis (departure from BPM5 recommendation); BOK makes accrual adjustments for significant transactions using surveys. - Migration plan: implement BPM6 starting in 2010; disseminate BPM6 data in 2012. - Recommendations: - Expand coverage to include all reinvested earnings and foreign-currency accounts held abroad. - Reclassify trade credits and short-term loans of affiliates under direct investment where appropriate. - Align recording of income transactions to accrual basis per international standards. ### Serviceability, accessibility, and user interaction - Timeliness highlights: - CPI and some labor market indicators disseminated on the first business day in the month after the reference period. - BOP and IIP statistics exceed SDDS requirements. - Advance quarterly GDP estimates within four weeks; preliminary quarterly GDP within 10 weeks; preliminary annual GDP within three months; final annual one year later. - Accessibility issues affecting many datasets: - ECOS (BOK) and KOSIS (KOSTAT) require Internet Explorer “Active X” component and locally-provided software; this creates firewall/security obstacles, restricting international users and printing. Resolution timelines: - BOK estimate for resolution: 2012 (state-of-the-art browser-free access). - KOSTAT expectation: financing available by the end of 2010; may take until 2013 to resolve. - MOSF’s GFS webpage had required download of a program until recently; methodological descriptions remain dispersed. - User feedback (Appendix IV — Users’ survey, December 2009): - Total Number of Responses: 39 - Regular use counts (selected): National accounts (NA) 28; Prices 22; GFS 13; Monetary 29; BOP 26. - Access sources: Official press releases/publications 32; Official website 28. - Perceived quality (overall rating, 1–5): NA 4.2; Prices 4.2; GFS 4.0; Monetary 4.2; BOP 4.1. - Noted user concerns: GFS timeliness and accessibility; demand for seasonally adjusted CPI. ### SDDS compliance — selected entries from Appendix Table I - Real Sector - National accounts: Coverage Yes; Periodicity Q; Timeliness Q; Comments: 2 months for Q1-Q3, and one quarter for Q4 data - Consumer price index: Coverage Yes; Periodicity M; Timeliness M; Comments: 1-2 D; Timeliness exceeds SDDS requirements - Producer price index: Coverage Yes; Periodicity M; Timeliness M; Comments: 10 D; Timeliness exceeds SDDS requirements - Fiscal Sector - General government operations: Coverage Yes; Periodicity A; Timeliness A; Comments: 2Q 5Q Flexibility option for timeliness - Financial Sector - Depository Corporations survey: Coverage Yes; Periodicity M; Timeliness M; Comments: 6W Flexibility option for timeliness - External Sector - Balance of payments: Coverage Yes; Periodicity Q; Timeliness M; Comments: Periodicity and timeliness exceed SDDS requirements - International investment position: Coverage Yes; Periodicity A (Q recommended); Timeliness Q; Comments: 3Q (1Q encouraged) - Notes: Periodicity/timeliness codes preserved as in source: (D), (W), (M), (Q), (A); italics indicate encouraged categories. ### Cross-cutting and agency-level recommendations (selected, verbatim where numeric) - Expedite plans to remove the “Active X” problem affecting the BOK and KOSTAT to allow browser-free direct access. - Maintain coordination across agencies to ensure data consistency during migration to BPM6, GFSM 2001, and SNA 2008. - Consider graduating from current SDDS flexibility options for general government operations timeliness and the DCS by meeting SDDS-prescribed timeliness. - National accounts: - Use the Denton Method to adjust quarterly original estimates to agree with annual benchmark estimates. - Replace depreciation estimates with consumption of fixed capital for all sectors other than general government, using the Perpetual Inventory Method (PIM). - Periodically undertake revision analysis for quarterly GDP movements between preliminary and final estimates from 1999 forward. - Aim to remove the statistical discrepancy between production and expenditure measures by compiling balanced annual supply-and-use tables. - CPI: - In 2010 CPI rebase, consult widely to define headline measure and treatment of owner-occupied dwellings; consider broader price measures. - Review imputation methodology for missing seasonal product prices to remove bias from carry-forward. - As part of rebase consultations, assess changing from five-yearly to three-yearly rebase cycle by analyzing substitution bias from Laspeyres formula. - Assess feasibility of including farming and fishing households. - PPI: - Implement KCPC for 2010 PPI rebase in 2013. - Use improved imputation techniques for missing prices per PPIM 2004. - Study and implement geometric mean / chain indices to address Carli and substitution biases. - Explicitly identify departures from international standards in metadata. - GFS: - Publish detailed sources and methods in Korean and English; develop an integrated publication for general government and subsectors. - Study publishing general government operations within SDDS timeliness and withdraw flexibility option. - Footnote in debt publications that central government debt includes FESF bonds; involve BOK and KOSTAT in GFSM 2001 migration and consider classifying FESF into central government at that time. - Monetary statistics: - Value marketable instruments at market prices in BOK balance sheet and revalue foreign-currency positions monthly. - Present claims on and liabilities to BOK on respective sides rather than net consolidation; do not include net claims on the BOK in consolidation adjustment. - Disseminate DCS within one month after reference month to withdraw SDDS flexibility. - Introduce regular cross-checking of positions between BOK and ODCs and among ODCs. - BOP: - Expand coverage to include all reinvested earnings and foreign-currency transactions through accounts held abroad; plan dissemination in 2012 with BPM6 migration. - Improve classification of direct investment transactions (trade credits and short-term loans with affiliates). - Align recording of income transactions with international accrual recommendations. ### Authorities’ responses and planned actions (selected timelines and commitments) - BOK - Concur with most IMF recommendations; Active-X issue: plan to resolve by 2012 with browser-free access. - Will coordinate among agencies to maintain data consistency during migration to BPM6 and SNA 2008. - KOSTAT - Preparing 2010 CPI rebase and establishing action plans; KOSIS browser-free access by end of 2010 (access free of charge without additional software thereafter), but full resolution may take until 2013. - Will consult NSC on methodologies and major changes for 2010 CPI rebase. - MOSF - Will continue efforts to improve GFS and implement GFSM 2001 migration for publication in 2012. - Notes practical constraints for meeting some timing recommendations due to domestic procedures (example: local government budget account settlement submitted at end of June in the following year); realistic target to disseminate general government statistics by November of the following year. - Plans for future statistical development — key commitments: - National Accounts: pilot SUT compilation; derive PIM-based consumption of fixed capital once capital stock data available; periodic revision studies. - CPI: KOSIS browser-free access planned by end of 2010; retain carry-forward for seasonal products subject to review; change weights revision schedule (weights only every five years ending in 3 or 8 from 2013; items revised every five years ending in 0 or 5 remains). - PPI: KCPC development by KOSTAT; experimental chain Laspeyres and supplementary geometric mean PPI compiled; study imputation methods. - Monetary: include FESF flows and stocks in central government accounts after 2012 migration; revaluation practices maintained until migration; combine ODCS components and introduce cross-checks; name change “reserve money” to “monetary base”; align instruments with MFSM. - BOP: compile and disseminate comprehensive reinvested earnings and accounts-held-abroad data in 2012 with BPM6 migration; estimate trade credits of affiliates for 2012 dissemination. *Source: 1. DQAF July 2003—Summary Results; Section II (agency and dataset assessments); 2. Methodological soundness; Cross-cutting recommendations; Appendix Table I; Response by the Authorities; Plans for Future Statistical Development (ROSC—Data Module), July 8, 2010.* ### 1. DQAF July 2003—Summary Results ....................................................................................9 ### 1. DQAF July 2003—Summary Results ### Overall assessment - Korea’s statistics are generally of a high quality, and reflect a significant improvement since the last Report on the Observance of Standards and Codes (ROSC) Data Module for Korea in 2001. - Legal reform reinforced momentum: revisions to the Bank of Korea Act in February 2008, and the Statistics Act in April 2009. - Responsibility for macroeconomic statistics: - Bank of Korea (BOK): national accounts, producer price indices (PPI), monetary, and balance of payments (BOP) statistics. - Statistics Korea (KOSTAT): consumer price index (CPI). - Government finance statistics (GFS): decentralized — central government to the Fiscal Policy Bureau of the Ministry of Strategy and Finance (MOSF); local governments to the Ministry of Public Administration and Security (MOPAS) and the Ministry of Education, Science and Technology (MEST). - Korea subscribed to the Special Data Dissemination Standard (SDDS) in September 1996 and started posting metadata on the Dissemination Standards Bulletin Board (DSBB) in March 1998. - Korea is in observance of the SDDS, using flexibility options on timeliness for general government operations data and the depository corporations survey (DCS), while exceeding SDDS requirements for timeliness and periodicity in some areas. - Migration plans (timelines stated by compiling agencies): - BPM6 as from 2010 - GFSM 2001 in 2012 - 2008 SNA in 2014 - The compilation and dissemination of statistics are at a key juncture with ambitious migration programs; close collaboration among compiling agencies and users is recommended to avoid inconsistencies during transition. - Section IV of the report provides summary recommendations; some recommendations are quick to implement, others require staff and financial resources. ### Pre-requisites of quality and assurances of integrity - Legal authorities and institutional arrangements: - BOK: Article 86 of the Bank of Korea Act authorizes collection and compilation of a wide range of statistics; BOK is an independent agency. Article 42 of the Banking Act and the Foreign Exchange Transactions Act and bylaws provide additional authority. - KOSTAT: established by the Statistics Act as the overarching statistical agency; mandated to compile the CPI and to designate statistical exercises. KOSTAT is an independent agency protected by the Statistics Act. - GFS compilation: Fiscal Policy Bureau of MOSF; local government data compiled by MOPAS and MEST. Agencies designated by KOSTAT are bound by the Statistics Act. - Integrity and professional standards: - BOK: dedicated Economic Statistics Department (ESD); public explanation of compilation/dissemination terms; no prior internal government access; advance notice of major changes; staff bound by confidentiality provisions (Bank of Korea Act section 42, Articles of Incorporation, Rules of Employment, Code of Conduct, Code of Ethics and Morals, Guidelines of Compilation and Dissemination of Statistics, and Foreign Exchange Transactions Act). All staff must take a written oath. - KOSTAT: high emphasis on professionalism; staff mandated to take 90 hours of training each year; newcomers attend ethics course and existing staff retake it twice a year; no pre-release to government. - MOSF and other ministries: periodic coordination meetings; resources sufficient; high levels of professionalism and confidentiality. ### Methodological foundations - National accounts: closely based on the System of National Accounts, 1993 (1993 SNA); some minor scope improvements possible. - CPI: appropriately based; farming and fishing households are excluded; the “all items” index does not include estimates from housing owner-occupiers (these are shown separately). - PPI: appropriate overall structure in concepts and definitions; commodity classification could be better aligned with international standards. - GFS: compilation still follows GFSM 1986, but implementation of GFSM 2001 is well advanced and scheduled to result in publication of fiscal source data in GFSM 2001 format in 2012; new digital budget and accounting system introduced; most government units already apply accrual accounting and double bookkeeping (cash based data will continue to be available). - Monetary statistics: broadly follow the Monetary and Financial Statistics Manual, 2000 (MFSM); however, the central bank survey does not identify the monetary base, and the BOK values financial assets and liabilities at book value and revalues foreign currency assets and liabilities only twice a year. - BOP: currently follows BPM5 with a number of deviations (partial scope for enterprises’ transactions through accounts held abroad and of reinvested earnings; trade credits and short-term loans with affiliated entities recorded under other investment; income transactions recorded on a payment basis). BOK intends migration to BPM6 starting in 2010; data with improved scope of reinvested earnings to be disseminated in early 2010. ### Accuracy and reliability - General: accuracy and reliability have improved markedly in recent years. - National accounts: - Fulfill most requirements for accuracy and reliability. - Areas for improvement: better method to adjust original quarterly data to agree with annual estimates; no specific estimates for the non-observed economy; depreciation should be replaced with consumption of fixed capital for sectors other than general government. - CPI: appears accurate and reliable, with scope for improvement in specific statistical techniques (e.g., integration of owner-occupied housing measures; adopt unbiased approach in imputation of out-of-season prices). - PPI: - Fulfills most requirements for accuracy and reliability. - Current practices that could cause bias: temporarily missing prices are imputed by repeating the most recent reported observation; elementary aggregate indices are calculated using the “Carli formula” (simple arithmetic mean of price relatives), which has been shown to have potential bias. - GFS, BOP, and monetary statistics: described as accurate and reliable overall. ### Serviceability (timeliness, periodicity, and usability) - Timeliness: - Many datasets exceed SDDS requirements; BOP and CPI are particularly strong (CPI and some labor market indicators disseminated on the first business day in the month after the reference period). - Korea maintains two SDDS flexibility options: - Timeliness of general government operations: usually disseminated one year after the reference period rather than the mandated two quarters. - Timeliness of the DCS: disseminated after six weeks rather than the mandated one month. - Coverage gaps and user needs: - Users have indicated demand for seasonal adjustment for the CPI. - Transition risk: - Migration to new methodologies could lead to data inconsistencies during transition if not fully coordinated. ### Accessibility of data and dissemination systems - Data systems: - BOK: Economic Statistics System (ECOS). - KOSTAT: Korean Statistical Information System (KOSIS). - MOSF’s GFS webpage: until recently required download of a program to access data; methodological descriptions remain dispersed. - Accessibility issues: - ECOS and KOSIS rely on Internet Explorer “Active X” component and a locally-provided software program; this creates firewall/security obstacles for users and restricts international users without assistance to print publications or commercial vendors. - BOK estimate for resolution: 2012, with state-of-the-art browser-free access. - KOSTAT expectation: financing available by the end of 2010; may take until 2013 to resolve. - MOSF/GFS accessibility had lagged behind other datasets, contributing to user concerns. - Agencies are aware and working on addressing accessibility issues. ### Key recommended focus areas (summary) - Ensure coordinated collaboration among compiling agencies and with users to manage migration to BPM6, GFSM 2001, and 2008 SNA to avoid inconsistencies. - Consider graduating from current SDDS flexibility options for general government operations timeliness and the DCS. - Improve specific statistical techniques across datasets: - National accounts: revise methods for quarterly/annual reconciliation; estimate non-observed economy; replace depreciation with consumption of fixed capital for certain sectors. - CPI: more fully integrate owner-occupied housing measures; adopt unbiased imputation for out-of-season prices; consider seasonal adjustment. - PPI: impute missing prices using price movements of similar products rather than repeating most recent observation; address bias from Carli formula in elementary aggregates. - Monetary statistics: revalue foreign currency assets and liabilities more frequently than twice a year (monthly revaluation is common internationally); identify monetary base in central bank survey. - BOP: improve scope, classification, and basis of recording practices, including reinvested earnings and treatment of intra-affiliate loans and trade credits. - Enhance data accessibility by removing dependency on browser-specific Active X components and providing browser-free access to ECOS and KOSIS. *Source: 1. DQAF July 2003—Summary Results* ### 12. Section II provides a summary assessment by agency and dataset based on a four-part ### _cr10229 - 12. Section II provides a summary assessment by agency and dataset based on a four-part scale ### Assessment approach and scope - An assessment of the quality of six macroeconomic datasets—national accounts, consumer price index, producer price index, government finance, monetary, and balance of payments statistics—was conducted using the DQAF, July 2003. - Results are presented at the level of the DQAF elements using a four-point rating scale (Table 1): O, LO, LNO, NO, NA (Key to symbols retained as in source). - Assessments of the prerequisites of data quality and the assurances of integrity (Dimensions “0” and “1” of the DQAF) are presented in Tables 2a–c. - For the datasets, the assessment of methodological soundness, accuracy and reliability, serviceability, and accessibility (Dimensions “2” to “5” of the DQAF) is shown in Tables 3a–f. - The analysis was carried out on the basis of a self-assessment by the compiling agencies, discussions during the mission, and an informal users’ survey. ### Summary results across datasets (Table 1) - Key to symbols: O = Practice Observed; LO = Practice Largely Observed; LNO = Practice Largely Not Observed; NO = Practice Not Observed; NA = Not Applicable - Dimension 0. Prerequisites of quality - 0.1 Legal and institutional environment: National Accounts O; CPI O; PPI O; Government Finance O; Monetary Statistics O; Balance of Payments O - 0.2 Resources: National Accounts O; CPI O; PPI O; Government Finance O; Monetary Statistics O; Balance of Payments O - 0.3 Relevance: (entries not shown in provided excerpt) - 0.4 Other quality management: National Accounts O; CPI O; PPI O; Government Finance O; Monetary Statistics O; Balance of Payments O - Dimension 1. Assurances of integrity - 1.1 Professionalism: All six datasets O - 1.2 Transparency: All six datasets O - 1.3 Ethical standards: All six datasets O - Dimension 2. Methodological soundness - 2.1 Concepts and definitions: All six datasets O - 2.2 Scope: National Accounts O; CPI O; PPI O; Government Finance O; Monetary Statistics O; Balance of Payments LO - 2.3 Classification/sectorization: National Accounts O; CPI O; PPI LO; Government Finance O; Monetary Statistics O; Balance of Payments LO - 2.4 Basis for recording: National Accounts O; CPI O; PPI O; Government Finance O; Monetary Statistics LO; Balance of Payments LO - Dimension 3. Accuracy and reliability - 3.1 Source data: All six datasets O - 3.2 Assessment of source data: All six datasets O - 3.3 Statistical techniques: National Accounts LO; CPI LO; PPI LNO; Government Finance N/A; Monetary Statistics O; Balance of Payments O - 3.4 Assessment and validation of intermediate data and statistical outputs: All six datasets O - 3.5 Revision studies: National Accounts LO; CPI O; PPI O; Government Finance N/A; Monetary Statistics O; Balance of Payments O - Dimension 4. Serviceability - 4.1 Periodicity and timeliness: National Accounts O; CPI O; PPI O; Government Finance LO; Monetary Statistics LO; Balance of Payments O - 4.2 Consistency: National Accounts O; CPI O; PPI O; Government Finance LO; Monetary Statistics LO; Balance of Payments O - 4.3 Revision policy and practice: All six datasets O - Dimension 5. Accessibility - 5.1 Data accessibility: National Accounts LO; CPI LO; PPI LO; Government Finance LO; Monetary Statistics LO; Balance of Payments LO - 5.2 Metadata accessibility: National Accounts O; CPI O; PPI O; Government Finance LO; Monetary Statistics O; Balance of Payments O - 5.3 Assistance to users: All six datasets O - Definitions of symbol meanings (verbatim): - Practice observed: Current practices generally meet or achieve the objectives of DQAF internationally accepted statistical practices without any significant deficiencies. - Practice largely observed: Some departures, but these are not seen as sufficient to raise doubts about the authorities’ ability to observe the DQAF practices. - Practice largely not observed: Significant departures and the authorities will need to take significant action to achieve observance. - Practice not observed: Most DQAF practices are not met. - Not applicable: Used only exceptionally when statistical practices do not apply to a country’s circumstances. ### Agency-level assessments — Bank of Korea (Table 2a) - Prerequisites of quality - Legal and institutional environment: Provisions for collecting and compiling BOP, monetary, PPI, and national accounts statistics are included in the Bank of Korea Act (last amended in February 2008) and the Statistics Act (last amended in April 2009). Article 86 and Article 87 of the Bank of Korea Act specify data-request powers (no power to levy penalties). BOP reporting is ensured by the Foreign Exchange Transactions Act (last amended in October 2009) and bylaws. Data sharing and coordination among agencies is adequate. Confidentiality rules exist. - Resources: Human, computing, and financing resources are adequate to collect, compile, and disseminate high-quality statistics. Measures to ensure efficient use of resources seem adequate. - Relevance: Formal mechanisms to consult users exist (e.g., users’ advisory committee for national accounts). The ECOS website allows user communication. BOK participates in international/regional statistical meetings. - Other quality management: Independent quality evaluation every five years, annual self-evaluation, three committees on quality evaluation/source data improvement/seasonal adjustment, Audit Department reviews, Plan for Developing and Improving Economic Statistics (July 2009), participation in KOSTAT Mid-long Term Development Plan. - Assurances of integrity - Professionalism: Terms and conditions follow professional independence and strict technical criteria; staff participate in training; BOK comments/clarifies misinterpretations. - Transparency: Methodology and relevant laws disseminated on website; no internal government access prior to release; methodological changes announced to press and described in national publications. - Ethical standards: Rules of Employment, Code of Conduct, Code of Ethics and Morals; Guidelines on Compilation and Dissemination of Statistics. ### Agency-level assessments — Statistics Korea (KOSTAT) (Table 2b) - Prerequisites of quality - Legal and institutional environment: Statistics Act (last revised April 2009) establishes KOSTAT as overarching agency. National Statistics Committee under Minister of Strategy and Finance. KOSTAT tasked with compiling CPI. Directives designate CPS and HIES for CPI compilation. Articles specify respondent duties and confidentiality. Data sharing generally adequate. - Resources: Human, computing, and financing resources are adequate; measures in place for efficient use. - Relevance: User views collected in CPI revisions via meetings, surveys, official documents; regular contacts between five-year revisions; staff participate in ILO, OECD-PPP, and Ottawa Group meetings. - Other quality management: Articles 9–11 of Statistics Law mandate examinations of quality; regular internal and external examinations; reports publicly available on KOSTAT website. - Assurances of integrity - Professionalism: CPI production follows professional independence and technical criteria; staff not influenced in methods; mandatory 90 hours training per year; Statistical Training Institute; outside experts give lectures; Price Statistics Division monitors media and publicly comments on misuse. - Transparency: CPI details posted on website, in news releases, monthly/annual reports; weights and surveyed items revised every five years; no pre-release access by other government agencies; methodological changes communicated via bulletins, briefings, news releases, and website; some information in English, more in Korean. - Ethical standards: Ethics training before job start and twice a year thereafter; KOSTAT Code of Ethics distributed and posted. ### Agency-level assessments — Ministry of Strategy and Finance (MOSF) (Table 2c) - Prerequisites of quality - Legal and institutional environment: Government Organization Act and Presidential Decrees assign GFS responsibility to MOSF Fiscal Policies Bureau. GFS based on budget realization data compiled by MOSF (central government), MOPAS (local government), MEST (local education). Three ministries meet regularly. GFS approved by KOSTAT under Statistics Act. Confidentiality provisions apply. - Resources: Staff, computing, financing resources deemed sufficient; staff well trained; annual policy performance assessments by Prime Minister’s office support efficient resource use. - Relevance: MOSF, MOPAS, MEST consult other ministries, experts, researchers to review usefulness of statistics and identify future needs, especially for GFSM 2001 implementation and data needs revealed by global financial crisis. - Other quality management: High quality awareness due to major multi-year reform projects; KOSTAT quality assessments of consolidated fiscal balance (2007) and government bond statistics (2008); efforts to explain consolidated budget balance. - Assurances of integrity - Professionalism: No formal legal professional independence, but culture ensures independence; statistics compiled from administrative records and methodological rules; no outside interference; MOSF issues press releases to address misinterpretation; Public Relations Division monitors media daily. - Transparency: Acts and Decrees published in Korean Official Gazette; Government Accounting Settlement Guidelines published and accessible; no internal pre-release access; press releases show data-producing agency name/logo and contact info; sources of GFS in other forms clearly identified. - Ethical standards: MOSF staff bound by Code of Ethics for Civil Servants and specific MOSF Code of Conduct; codes communicated to new/transferred staff and reinforced periodically via workshops. ### Detailed assessment — National Accounts (Table 3a) - 2. Methodological soundness - Concepts and definitions: National accounts compiled according to the 1993 SNA. - Scope: Annual and quarterly GDP compiled by production and expenditure approaches at current and chained average 2005 prices; annual input-output tables; sequence of accounts up to financial account for total economy and by institutional sector. Economic territory, production, and asset boundaries generally in accordance with 1993 SNA. Illegal activities are not explicitly included in GDP, but these are not significant in Korea. - Classification/sectorization: KSIC consistent with ISIC Rev 4. COICOP and COFOG used for household consumption and functions of government classification. - Basis for recording: Market output at basic prices; output for own final use at equivalent market prices; intermediate consumption and final uses at purchasers’ prices; exports/imports at f.o.b.; transactions recorded on accrual basis; intra-enterprise establishment transactions recorded gross. - 3. Accuracy and reliability - Source data: KOSTAT conducts quarterly and annual establishment and enterprise surveys covering large proportions of the enterprise population. BOK uses HIES data collected monthly by KOSTAT. Government sector and BOP data obtained from other BOK areas. Various monthly economic activity surveys conducted by KOSTAT. Source data available timely. - Assessment of source data: Appropriate measures taken to validate source data. - Statistical techniques: Production and expenditure estimates compiled at sufficient detail. Chained Laspeyres measures used for volume GDP estimates. Denton method used for seasonally adjusted estimates (but not for original estimates). Depreciation estimates used instead of consumption of fixed capital for all sectors except general government. - Assessment and validation of intermediate data and statistical outputs: Discrepancies between intermediate results and independent source data are measured and assessed; adjustments made as necessary. - Revision studies: Analyses of time series revisions are made only when updating the reference year for volume estimates every five years. - 4. Serviceability - Periodicity and timeliness: Follow SDDS requirements. - Consistency: Consistent quarterly and annual time series maintained from 1970. In March 2009 chain volume measures introduced and new reference year 2005 adopted. Initial release covered from 2000 forward; full time series from 1970 released by end of 2009. Consistency maintained between quarterly and annual series. National accounts reconcilable with BOP and GFS. - Revision policy and practice: Revision cycle aligned with availability of source data and timing of revisions to related datasets; explained in publications and press releases. Annual seasonal reanalysis revisions discussed in quarterly national accounts publication. Detailed analyses of revisions for major aggregates published every five years at rebasing. - 5. Accessibility - Data accessibility: Initially disseminated via press release and BOK website. Quarterly value-added and expenditure components provided in original and seasonally adjusted form. More detailed statistics and unpublished time series provided through BOK’s ECOS. Access to ECOS requires installation of software that may cause computer security concerns, particularly for non-Korean users. Advance release calendar for quarterly GDP shown on website. National accounts released simultaneously to all users. Non-confidential information provided upon request. - Metadata accessibility: Metadata available on BOK website and IMF DSBB website. Detailed sources and methods publications available for both quarterly and annual national accounts, although annual version only in Korean. - Assistance to users: Contact information provided in publications and on BOK website. BOK operates an automated response service; user requests are monitored daily and answered promptly. *Source: _cr10229 - 12. Section II provides a summary assessment by agency and dataset based on a four-part scale (excerpt).* ### 2. Methodological soundness ### 2. Methodological soundness ### Consumer Price Index (CPI) — Concepts, scope, sources, and methods - Concepts and definitions follow the 1993 SNA and the Consumer Price Index Manual, 2004 (CPIM 2004). - Scope: - Covers all urban households except farming and fishing households. - Weights derived from the HIES and relate to purchases of market goods and services for consumption in residential households. - Owner-occupied housing is not included in the headline CPI; it is included in a supplementary index based on imputed rentals. - Classification/sectorization: Broad conformity with COICOP. - Basis for recording: Purchasers’ prices of marketed goods and services; detailed product specifications; weights based on consumption expenditure in purchasers’ prices including trade and transport margins and taxes on products. - Source data: - HIES samples about 9,000 households. - Outlet samples selected from the census and survey of wholesale and retail trade. - 489 items (880 specifications) collected from 22,000 outlets in 38 cities. - Assessment of source data: Statistics Quality Management Team of KOSTAT evaluates surveys in accordance with the Statistics Act; all prices are checked for accuracy. - Statistical techniques: - Temporarily missing prices generally imputed using price movements of similar products in the same region; out-of-season prices are carried forward. - Replacement items selected when a specific variety is unavailable. - Quality adjustments made using a variety of techniques consistent with international standards. - Dutot formula used for elementary aggregates by city; aggregated to national indices on basis of city expenditure shares. - Laspeyres formula used for higher level aggregations with weight updates every five years; plans to move to a three-yearly update cycle. - Assessment and validation: CPI compared with PPI, export price index, and import price index. - Revision studies: CPI is final when first released; following five-yearly rebase, substitution bias effect evaluated and revision studies undertaken. - Periodicity and timeliness: - Published monthly and released on the first business day of the following month. - Consistency: - Upper-level indices aggregated from lower-level indices; consistent monthly series available from 1965. - Revision policy and practice: - Final when first released. - Items and weights updated every five years (with the year ending in 0 or 5); the next rebase will relate to 2010 data. - Data accessibility: - Disseminated in a monthly news release with short analysis, time series, charts; more tables in monthly and annual reports. - KOSTAT’s website presents more detailed and longer time series. - CPI released simultaneously to all users. - Data provided through the KOSIS of KOSTAT; access to KOSIS requires installation of software that may cause security concerns, particularly for non-Korean users. - Metadata accessibility: Metadata provided in the news release, publications and on KOSTAT’s website (subject to access problem above). - Assistance to users: News release and publication contain contact names and telephone and fax numbers; website contains “Frequently Asked Questions”; catalogs of publications and a Statistical Shopping Mall on the website. ### Producer Price Index (PPI) — Concepts, scope, sources, and methods - Concepts and definitions consistent with the Producer Price Index Manual, 2004 (PPIM 2004). - Scope: Domestic transactions at market prices for output of agriculture, mining, manufacturing, energy and selected service industries including transport, telecommunications, finance, real estate, advertising, and technical services. - Classification/sectorization: - Uses 1993 SNA concepts of institutional units and transactions. - Korean commodity classification does not conform to any international standard; an internationally based classification under development for the 2010 rebase. - Basis for recording: Weights and prices conform to PPIM 2004 valuation rules; pricing based on basic prices excluding trade and transport margins and product taxes; product specifications sufficient to measure “pure price change.” - Source data: - 2005 mining, manufacturing, and agriculture censuses, and 2005 input-output tables (for selected service industries) are major sources for weights and sampling frame. - Prices collected from 6,100 establishments for 801 goods and 83 services. - Assessment of source data: Response rates nearly 100 percent; large price changes investigated; price collectors visit establishments several times a year to verify specifications and accuracy. - Statistical techniques: - Temporarily and seasonal missing prices imputed by carrying forward last reported price. - Permanently missing prices replaced with alternative specifications; quality adjustments made by reference to production values or linking with overlapping prices. - Elementary aggregates calculated as simple arithmetic mean of price relatives (Carli formula) — noted as against international recommendations and introducing an upward bias. - Laspeyres (long-term price relatives) formula used for progressive aggregation to higher levels. - Assessment and validation: PPI series regularly compared with corresponding CPI, import price index, export price component series, and private sector measures. - Revision studies: PPI is final when first released; after five-yearly rebase, a study is conducted to identify effects of weight shifts, new and deleted items, and substitution bias. - Periodicity and timeliness: - Published monthly and generally released around the tenth day after the reference month, meeting SDDS requirements. - Consistency: - Internally consistent and invariant to the two classification typologies used. - Consistent aggregate series available back to the last revision in 2005; prior to that, consistent historical series for goods industries prior to introduction of services in 1995. - Revision policy and practice: No monthly revisions; index items and weights updated on a five-yearly basis and a detailed analysis of revision results is published. - Data accessibility: - Summary PPI released through a press release; five-digit level and aggregated KSIC levels on the BOK’s website. - Release date announced a week in advance; data made available simultaneously to all users. - Access to BOK’s online database (ECOS) requires installation of software that may create computer security concerns particularly for non-Korean users. - Metadata accessibility: BOK publishes Guide to Economic Statistics covering PPI methodology; detailed description in Report on the 2005 Revision on BOK’s website (subject to access problem above). - Assistance to users: BOK has a call desk handled by an economist to assist users; website contains contact details and a list of publications. ### Government Finance Statistics (GFS) — Concepts, scope, sources, and methods - Concepts and definitions: Korean GFS generally follows GFSM 1986; reform process to move to GFSM 2001 well advanced and will lead to publication of a new set of accounts in 2012. Most local government agencies have introduced accrual accounting and double bookkeeping, but cash data remain available. - Scope: Sectoral scope defined on a functional basis in accordance with GFSM 1986; accounts of central, local, and general government prepared; local education included since 2005. - Classification/sectorization: Follows GFSM 1986. - Basis for recording: Transactions recorded in accordance with GFSM 1986 when cash is received or paid; debt valued at face value. As of 2009, GFS are exclusively compiled on a cash basis. Transactions shown on a gross basis. Tax refunds recorded as negative tax revenue. Intra-government stocks and flows consolidated. - Source data: Source data have sufficient detail for compilation; automated systems convert accounting data of individual agencies to GFS categories. - Assessment of source data: Detailed source data fully reconcilable with GFS definitions and classifications; timely and allow consolidation; compilation systems perform automated cross-checks. - Statistical techniques: Data based on complete information; classification and aggregation algorithms part of automated compilation systems; application of statistical techniques not necessary. - Assessment and validation: Intermediate data compared monthly with other sources such as BOK/regional banks, tax receipts, progress of major projects; comparisons with previous year data. - Revision studies: Minor revisions may occur; administrative nature of data means they are not subject to particular studies. - Periodicity and timeliness: - Detailed central government data disseminated monthly; general government data on an annual basis. - Central government debt data disseminated quarterly. - Timeliness generally in accordance with SDDS, except general government operations (disseminated after about 13 months versus mandatory two quarters). - Consistency: - Consistent time series available; changes reconstructed as far back as possible. - Some differences in scope between flow tables and government debt table. - GFS in principle reconcilable with other macroeconomic statistics as they share budget administrative records as main source. - Revision policy and practice: - Preliminary data clearly identified and revised according to a fixed schedule; no schedule for major revisions exists. - Revisions and unusual trends explained in publications. - Data accessibility: - MOSF publishes general government accounts on its website; MOSF publishes central government data; MOPAS disseminates local government statistics on an accrual basis. - MEST does not disseminate GFS for local education. - Accompanying analysis and charts in press releases facilitate interpretation; a bridge between GFS and central government budget documents made available. - Release dates not preannounced but follow traditional schedule; no prerelease access; more detailed data available on request. - Metadata accessibility: - Central government metadata provided in Government Finance Statistics of Korea and Government Debt Management Plan. - Key concepts in Budget Overview; DSBB provides metadata for general government; some metadata provided in Government Finance Statistics of Korea. - Assistance to users: Contact points publicized and timeliness of response monitored; MOSF website includes a short catalog of publications. ### Monetary Statistics — Concepts, scope, sources, and methods - Concepts and definitions: Monetary statistics broadly follow the MFSM. The monetary authorities account (MAA) consolidates BOK and Foreign Exchange Stabilization Fund (FESF) accounts. MAA does not identify the monetary base, although reserve money presented in a separate table. - Scope: Coverage of the depository corporations survey (DCS) is complete, covering the BOK (and FESF), all commercial and specialized banks, and all nonbank depository corporations. - Classification/sectorization: Largely follow MFSM methodology, except grouping of instruments for monetary aggregates. - Basis for recording: Monetary statistics produced on an accrual basis. BOK values financial assets and liabilities at book value (not market value) and revalues foreign currency instruments twice yearly (rather than monthly). - Source data: BOK and FESF data based on balance sheets; all other depository corporations (ODCs) report balance-sheet data to BOK monthly; report forms require highly detailed data. - Assessment of source data: Computerized procedures in DACOS operated through BOK’s website facilitate monitoring accuracy of data reported by ODCs. - Statistical techniques: Potential processing errors minimized by electronic reporting and processing; monetary and liquidity aggregates seasonally adjusted using customized software. - Assessment and validation: - Reported data by ODCs cross-checked with balance sheets reported to the Financial Supervisory Service. - Securities holdings/classifications cross-checked with Korea Securities Depository database and survey data from securities finance companies. - Revision studies: Where relevant, revisions are studied. - Periodicity and timeliness: - Monetary statistics compiled monthly and disseminated within six weeks after the end of the month, rather than within SDDS timeliness requirement of one month. - Korea availing itself of a flexibility option on timeliness of the DCS. - Consistency: - Consistent time series available for over eight years. - Consistency of BOK’s and ODCs records not cross-checked regularly. - Disseminated data do not allow cross-checking of positions between BOK and ODCs and among ODCs, as positions not separately identified. - Monetary data consistent with BOP and IIP; bonds issued by FESF recorded as foreign liability in MAA and included in central government external debt. - Revision policy and practice: - DCS data final when first released; revised only when errors detected or methodological changes applied; revised data clearly identified. - Data accessibility: - Disseminated through press releases, BOK’s ECOS on website, and statistical publications. - BOK publishes and complies with an advance release calendar for monetary data. - Data first disseminated via press release then posted on BOK’s website; simultaneous access ensured. - Access to ECOS database requires installation of software that may cause computer security concerns, particularly for non-Korean users. - Metadata accessibility: - Korea has posted monetary metadata on IMF’s DSBB since March 1998. - Explanation of Monetary and Financial Statistics (2008) contains detailed metadata. - See above regarding access problems. - Assistance to users: Contact points for monetary statistics available on DSBB, through ECOS, and in publications; users’ requests and comments channeled through BOK’s website. ### Balance of Payments (BOP) and International Investment Position (IIP) — Concepts, scope, sources, and methods - Concepts and definitions: Broadly in accordance with BPM5 since 1998. BOK released first annual IIP in March 2003 and switched from annual to quarterly IIP reporting in 2007. Authorities plan to implement BPM6 framework in 2010 and disseminate data using this framework in 2012. - Scope: Broadly consistent with international guidelines; only partial data compiled on foreign currency transactions of enterprises through accounts held abroad and on reinvested earnings. - Classification/sectorization: Mostly in line with BPM5 guidelines; departures arise mainly in sectoral classification and classification of trade credits and short-term loans with affiliated entities (recorded under other investment instead of direct investment). - Basis for recording and valuation: Generally in line with BPM5; income transactions recorded on a payment basis. - Source data: - Main sources: (i) customs data, (ii) BOK’s foreign exchange information system (FEIS), (iii) administrative data from other government entities, (iv) surveys, and (v) direct reporting by financial and nonfinancial institutions. - Supplemented with information from foreign agencies and international financial institutions. - No systemic mechanism to collect noncash operations, although these are insignificant in Korea. - Source data are timely. - Assessment of source data: Source data routinely assessed. - Statistical techniques and procedures: BOK uses techniques to adjust foreign trade transactions, overcome partial coverage of some services and portfolio investment transactions, and improve classification of some items. - Assessment and validation: Statistical discrepancies assessed; data validated with administrative data and other datasets. - Revision studies: Studies and analysis of data revisions performed; measures taken to incorporate findings. - Periodicity and timeliness: BOP and IIP statistics exceed SDDS requirements. - Consistency: BOP data broadly consistent internally, over time, and with other datasets. - Revision policy and practice: - Preliminary data revised and finalized during the second half of the following year. - Preliminary and revised data clearly identified. - Generally, revised data published in the following publication. - Revisions do not follow a schedule, but there is a well-established practice of revisions known by users; explanations of differences presented in the press release. - Data accessibility: - Data broadly disseminated in accordance with BPM5 standard components. - Data made available to all users at the same time on BOK’s website and released on a preannounced schedule. - Access to data posted in BOK’s online database (ECOS) requires installation of software that may create computer security concerns particularly for non-Korean users. - Unpublished (but non-confidential) subaggregates made available upon request. - Metadata accessibility: Concepts, methodology, and data sources for BOP compilation available on BOK’s website, IMF’s DSBB, and other BOK publications. - Assistance to users: Adequate; publications on BOK’s website provide contact points; contact points for BOP data also provided on IMF’s DSBB; catalogs of publications and services available in ECOS. *Source: _cr10229 - 2. Methodological soundness* ### 14. Based on the review of Korea’s statistical practices, discussions with the ### _cr10229 - 14. Based on the review of Korea’s statistical practices, discussions with the ### Cross-cutting recommendations - Expedite plans to remove the “Active X” problem affecting the BOK and KOSTAT by which international and other users with firewall protection have difficulty, or are unable, to download software necessary for accessing the data and metadata. - Maintain coordination across agencies to ensure data consistency during the migration process towards the new methodologies. ### National accounts - Use the Denton method to adjust quarterly original estimates to agree with annual benchmark estimates. - Replace the existing estimates of depreciation with estimates for consumption of fixed capital for all sectors other than general government. The estimates for consumption of fixed capital should be derived using the Perpetual Inventory Method (PIM) methodology. - Periodically undertake an analysis of revisions to movements in quarterly GDP (and its components) in current price and volume terms between preliminary and final estimates from 1999 forward (the first year that seasonally adjusted estimates were published). - Investigate the feasibility of developing estimates for the non-observed economy using employment estimates from the Labor Force Survey (conducted by KOSTAT) and employment estimates from other data sources used to compile the national accounts. - Aim to remove the statistical discrepancy between the production and expenditure measures of GDP, on an annual basis, by compiling balanced annual supply-and-use tables. ### Consumer price index - In the context of the 2010 CPI rebase, consult widely with users (especially the BOK) to determine the current principal use of the CPI (e.g., in the measurement of consumption or inflation), define the most appropriate headline measure (e.g., including or excluding owner-occupied dwellings), decide on the preferred treatment of owner-occupied dwellings (imputed rentals or net acquisitions) and define core or underlying inflation. Consider whether to give greater prominence to a broader measure of price changes than the present “all items” index that excludes owner-occupied dwellings. - Review the methodology for estimating missing seasonal product prices, with the aim of removing the bias associated with using the simple carry-forward method. - As part of the consultations planned for the prospective rebasing program consult on the proposal to change from a five-yearly to a three-yearly rebase cycle by reference to a detailed analysis of the extent of substitution bias associated with the use of the Laspeyres formula. Assess the relative improvement obtained by adopting a three-year cycle compared with that from an annual cycle. - Assess the feasibility of including farming and fishing households within the scope of the CPI either by extending the scope of the HIES or incorporating data on expenditure patterns from the Farming and Fishing Household Economic Surveys during the weight calculation exercise. ### Producer price index - Implement a Korean Central Product Classification, based on the Central Product Classification, for the 2010 PPI rebase in 2013. - Introduce the use of more sophisticated techniques for imputing temporarily missing prices for both regular and seasonal products, as described in the PPIM 2004. - Continue the compilation and study of the Korean supplementary PPI using the geometric mean formula for the computation of elementary aggregate indices. Implement with the 2010 rebase. To the extent that the component products within an elementary aggregate are heterogeneous, with a resultant disparity of price levels, cluster the prices within such elementary aggregates within narrow price bands, and ensure the units of measurement are comparable. - Continue the compilation and study of annual chain Laspeyres PPIs, and implement with the next index rebase to counter the impact of substitution bias. - In metadata documentation, explicitly identify areas where there are departures from international standards in the Korean PPI. ### Government finance statistics - Continue the development of a national (electronic) publication dedicated to the dissemination of data and metadata for general government and its subsectors in Korean and English. - Strive to make a detailed sources and methods publication of the Korean GFS compilation available to users in Korean and English. - Study the possibilities to publish the general government operations data within the timeliness prescribed by the SDDS, and thus withdraw the SDDS flexibility option. - Footnote in all publications of government debt that, in contrast to the functional definition of government in the operations accounts, the central government debt data also include bonds issued by the FESF. Furthermore, involve the BOK and KOSTAT in the discussions on how to make the GFSM 2001 definition of government operational in Korea. Consider classifying the FESF into the accounts of the central government at the time of the GFSM 2001 migration, in line with the precepts of that manual. ### Monetary statistics - In the future, along with the implementation of the GFSM 2001 methodology, consider recording all FESF flows and stocks in the central government accounts. Ensure consistent treatment of the FESF accounts in the monetary statistics, BOP, IIP, and GFS at all stages. - For monetary statistics purposes value all marketable financial instruments in the BOK balance sheet, including monetary gold, on the basis of market prices, and revalue assets and liabilities denominated in foreign currencies at the end of every month. - In compiling the ODCs, do not include net claims on the BOK in the consolidation adjustment, but present claims on, and liabilities to, the BOK on the assets and liabilities side, respectively. - Take necessary actions to be able to disseminate the DCS within one month after the end of the reference month, in order to withdraw the SDDS flexibility option. - Introduce regular cross-checking procedures of positions between the BOK and the ODCs, as well as positions among ODCs. ### Balance of payments statistics - Expand the transactions coverage by including all transactions on reinvested earnings and foreign-currency transactions of enterprises through accounts held abroad. - Improve the classification of direct investment transactions by reclassifying data on trade credits and short-term loans of affiliated enterprises. - Align the basis of recording of income transactions to that recommended by the international standards. *Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2010/_cr10229.pdf* ### Appendix Table I. Practices Compared to the SDDS Coverage, Periodicity, and ### _cr10229 - Appendix Table I. Practices Compared to the SDDS Coverage, Periodicity, and Timeliness of Data ### SDDS compliance: Coverage, periodicity, timeliness (selected entries from Appendix Table I) - Real Sector - National accounts: Coverage Yes; Periodicity Q; Timeliness Q; Comments: 2 months for Q1-Q3, and one quarter for Q4 data - Production index/indices: Coverage Yes; Periodicity M; Timeliness M; Comments: 6W (1M encouraged) - Forward-looking Indicators (encouraged data category): Periodicity M or Q; Timeliness M or Q - Employment: Coverage Yes; Periodicity Q; Timeliness M; Comments: Periodicity and timeliness exceed SDDS requirements - Unemployment: Coverage Yes; Periodicity Q; Timeliness M; Comments: As above - Wages/earnings: Coverage Yes; Periodicity Q; Timeliness M; Comments: As above - Consumer price index: Coverage Yes; Periodicity M; Timeliness M; Comments: 1-2 D; Timeliness exceeds SDDS requirements - Producer price index: Coverage Yes; Periodicity M; Timeliness M; Comments: 10 D; Timeliness exceeds SDDS requirements - Fiscal Sector - General government operations: Coverage Yes; Periodicity A; Timeliness A; Comments: 2Q 5Q Flexibility option for timeliness - Central government operations: Coverage Yes; Periodicity M; Timeliness M - Central government debt: Coverage Yes; Periodicity Q; Timeliness Q - Financial Sector - Depository Corporations survey: Coverage Yes; Periodicity M; Timeliness M; Comments: 6W Flexibility option for timeliness - Central bank survey: Coverage Yes; Periodicity M (1W recommended); Timeliness M; Comments: 2W (1W encouraged), 2W - Interest rates: Periodicity D; Timeliness D - Stock market: share price index: Coverage Yes; Periodicity D; Timeliness D - External Sector - Balance of payments: Coverage Yes; Periodicity Q; Timeliness M; Comments: Periodicity and timeliness exceed SDDS requirements - Reserves template / Official reserve assets: Periodicity Yes M (W recommended); Timeliness M; also entries with M, W in table - Merchandise trade: Coverage Yes; Periodicity M; Timeliness M; Comments: 8W (4–6W encouraged); 3 D; Timeliness exceeds SDDS requirements - International investment position: Coverage Yes; Periodicity A (Q recommended); Timeliness Q; Comments: 3Q (1Q encouraged) - External debt: Coverage Yes; Periodicity Q; Timeliness Q - Exchange rates: Coverage Yes; Periodicity D; Timeliness D - Addendum - Population: Coverage Yes; Periodicity A; Timeliness A - Notes (as in table) - Periodicity and timeliness codes preserved exactly: (D) daily or days; (W) weekly or with a lag of no more than one week from the reference data or the closing of the reference week; (M) monthly or with a lag of no more than one month; (Q) quarterly or with a lag of no more than one quarter; (A) annually; and (...) not applicable. - Italics indicate encouraged categories. ### Authorities' overall response (Response by the Authorities, July 8, 2010) - Bank of Korea (BOK) - Concur with most IMF concluding recommendations; some already implemented, others to be followed up. - Active-X issue: plan to resolve by 2012 when state-of-the-art browser-free access will be introduced. - Will use cooperation among related agencies to maintain data consistency during migration to new methodology such as BPM6 or SNA 2008. - Approve posting the entire ROSC-Data Module document to the IMF’s website. - Statistics Korea (KOSTAT) - Found IMF review useful for CPI compliance with international standards. - Preparing 2010 rebase of the CPI and establishing action plans. - Will implement recommendations via the National Statistics Committee (NSC). - Ministry of Strategy and Finance (MOSF) - Will continue efforts to improve government finance statistics and supplement IMF recommendations as soon as possible. - Notes practical difficulties in meeting certain IMF timing recommendations due to domestic processes (example: local government budget account settlement submitted at end of June in the following year). - Accepts public disclosure of the ROSC-Data Module provided their Volume II opinion is attached. ### Plans for future statistical development — key commitments and timelines - A. National Accounts (BOK) - Consider using the Denton Method to adjust quarterly estimates to agree with annual benchmark estimates for seasonally adjusted data. - National balance sheet development ongoing; once capital stock data available, consumption of fixed capital to be derived using the Perpetual Inventory Method (PIM). - NOE (non-observed economy): not considered a major issue; no specific NOE estimation planned for now, but will attempt to capture scale via expanded surveys and new source data. - Pilot test to compile supply-use tables (SUT) directly to remove statistical discrepancy between production and expenditure GDP. - Revision studies: current practice analyzes short-term differences quarterly and annually; longer time-series revision studies will be undertaken periodically (previously done once in 2006). - B. Consumer Price Index (KOSTAT) - KOSTAT to establish a new data-base system (KOSIS) for international users to open by the end of 2010; access free of charge without additional software thereafter. - Use of carry-forward for seasonal products retained, based on Korea’s four distinct seasons and review of consumption patterns; various methodologies will be studied for 2010 rebase. - Consult NSC on statistical methodologies and major changes for 2010 CPI rebase. - Assess feasibility of including farming households in the CPI (fishing households account for less than 1 percent of total Korean households). - Change: weights revision schedule—will change only weights every five years ending in 3 or 8 from 2013 (items revised every five years ending in 0 or 5 remains). - C. Producer Price Index (BOK) - Compiling Korean Central Product Classification (KCPC) handled by Statistics Korea; application to PPI depends on conducting Report on Mining and Manufacturing Survey by KCPC. - Implementing KCPC for the 2010 PPI rebase in 2013 remains problematic due to lack of RCMM Survey compiled by KCPC. - Use of carry-forward for imputing missing prices continues; BOK studying appropriate imputation methods. - To remove upward bias from arithmetic averaging, BOK compiles a supplementary index using a geometric mean; experimental chain Laspeyres index compiled in 2009 and to continue experimentally. - Metadata to explicitly note product classification by KSIC. - D. Government Finance Statistics (MOSF) - Periodicity and timeliness: given local government budget settlement timing, disseminating general government statistics by November of the following year is considered realistically acceptable (rather than IMF recommendation of end-June). - Consistency: reconciling government debt and fiscal balance range to be completed by end of the year; identical range to be applied from 2012 when compiling statistics according to GFSM 2001. - Data accessibility: central government statistics disseminated by end of next month and general government statistics by end-November of following year; release calendars to be provided in future for user convenience. - Metadata accessibility: general government metadata are posted on the website and will be published in ‘2010 Korea’s Integrated Fiscal Balance’ booklet during the third quarter of 2010. - E. Monetary Statistics (BOK) - FESF (Foreign Exchange Stabilization Fund) flows and stocks have been recorded in central bank accounts; after 2012, with implementation of BPM6, GFSM 2001 and SNA 2008, all FESF flows and stocks will be included in central government accounts across monetary statistics, BOP, IIP, GFS and National accounts. - BOK balance sheet practices: marketable financial instruments recorded at book value; foreign currency assets and liabilities revalued twice a year at end of June and December; accounting policy consistency maintained. - Working on combining commercial & specialized banks and nonbank depository corporations into the Other Depository Corporations Survey (ODCS); will present claims on the BOK and liabilities to the BOK on respective sides and introduce regular cross-checking procedures. - Name change: “reserve money” already changed to “monetary base”. - Broad money instruments to align with MFSM-defined instruments: Currency in circulation, Transferable deposits, Other deposits, and Securities other than shares. - BOK will draw up measures to withdraw the SDDS flexibility option. - F. Balance of Payments Statistics (BOK) - Reinvested earnings: to date compiled only for foreign branches of domestic banks; annual experimental data on all reinvested earnings transactions compiled and planned for dissemination in 2012 when migrating to BPM6. - Foreign currency transactions of enterprises through accounts held abroad: data compiled only for certain enterprises; plan to carry out sample surveys on enterprises with large sums held abroad and disseminate in 2012 with BPM6 migration. - Trade credits of affiliated enterprises: plan to estimate using proportion obtained from the direct investment survey and publish in 2012 with BPM6 migration. - Short-term loans of affiliated enterprises: already reclassified as other capital in direct investment. - Income transactions recording: partial adoption of accrual basis; further steps planned to improve method. - Will use cooperation among related agencies to maintain data consistency during migration to BPM6 and SNA 2008. - FESF recording: as in monetary statistics, all FESF flows and stocks to be included in central government accounts after 2012 under BPM6/GFSM 2001/SNA 2008. *Source: _cr10229 - Appendix Table I. Practices Compared to the SDDS Coverage, Periodicity, and Timeliness of Data; Response by the Authorities; Plans for Future Statistical Development (ROSC—Data Module), July 8, 2010.* ### 6. Data Quality Assessment Framework (July 2003): Summary of Results for ### 6. Data Quality Assessment Framework (July 2003): Summary of Results for Balance of Payments Statistics ### Prerequisites of quality - Legal and institutional environment - National accounts compiled under Article 86 of the Bank of Korea Act (2004). - Article 42 of the General Banking Act requires commercial and specialized banks to submit balance-sheet accounts to the BOK. - Statistics Act (2009) specifies statistical production; Article 15 designates compiling agencies and designates the BOK as the official compiling agency for the national accounts. - Guidelines on Compilation and Dissemination of Statistics (September 1999) provide specific internal compilation and dissemination rules. - Data sharing and coordination - BOK maintains close relationships with data suppliers and regularly consults with Statistics Korea (KOSTAT). - Formal and informal meetings, lectures, and education programs with MOSF, KTS, and industrial associations. - Confidentiality and use of individual reporters’ data - Confidentiality guaranteed by the Statistics Act (Articles 33 and 34). - BOK staff bound by Bank of Korea Act Article 42, Article 20 of the Articles of Incorporation, and staff code of conduct; written oath required. - Breaches of confidentiality subject to penalties under Statistics Act, Article 39. - Survey respondents informed of purpose, confidentiality, and legal basis. - Legal mandate and measures to encourage response - Bank of Korea Act, Article 87, and the Statistics Act provide legal basis for data collection. - BOK has no direct power to impose penalties; under Statistics Act Article 41 KOSTAT can impose fines for nonresponse on BOK’s request (has not been used). ### Resources - Staff and organizational structure - National Income Statistics Team: 29 regular staff and nine temporary contract employees. - I-O tables team: 19 officers. - National balance sheets development team: six officers. - Annual and quarterly flow of funds statistics produced by another ESD area. - Capacity and training - Adequate resources for compilation and prospective migration to the 2008 SNA in 2014 at the next rebasing from reference year 2005 to 2010. - Budget for international training and internal training; job manuals maintained and regularly updated. - Salaries competitive; available computer resources adequate. - Resource management - Annual budgeting: National Income Statistics Team prepares budget each October; BOK Planning Department evaluates. - Program and resource use monitored quarterly; annual program review. - Staff performance reviews twice a year with differentiated bonuses; occasional use of outside consultants. ### Relevance - User engagement and feedback - National Accounts Advisory Committee meets twice a year; includes BOK, government agencies, universities, and research institutes. - Consultation meetings, seminars, and participation in UN, IMF, OECD activities. - BOK staff encouraged to present research via Korea Statistical Society. - ECOS website (http://ecos.bok.or.kr) used to communicate with users; users can submit questions, comments, and participate in regular surveys. ### Other quality management - Quality assurance processes - Statistics Act Articles 9 and 10 mandate regular and one-off evaluations. - BOK conducts an Independent Quality Evaluation every five years and a Quality Self-Evaluation every year. - Participation in international evaluations, including IMF Data ROSC. - Internal committees: Quality Evaluation Advice Committee, Source Data Improvement Committee, Seasonal Adjustment Committee. - Monitoring and planning - Audit Department reviews consistency, accuracy, budget, and expenses. - Economic Statistics Department prepares annual and long-term statistical plans; Budget and Management Department checks quarterly. - Plan for developing and improving economic statistics established July, 2009; participation in KOSTAT mid- to long-term development plan. ### Assurances of integrity - Professionalism - BOK independence affirmed by Bank of Korea Act, Article 3; no external pressure on statistics content or release. - Staff encouraged to produce and publish research; seminars and conferences held. - Source and technique choices made solely on statistical considerations. - BOK monitors media coverage daily and issues press briefings or corrections when necessary. - Transparency - Bank of Korea Act and Statistics Act available on BOK (http://www.bok.or.kr) and KOSTAT (http://www.kostat.go.kr) websites. - Methodologies documented in Korean System of National Accounts, Understanding and Use of Economic Statistics, and Quarterly National Accounts in Korea. - ESD Information Center provides additional information. - No pre-release access: national accounts disseminated to all users simultaneously. - Advance notice provided for major methodological changes (examples: introduction of seasonal adjustment, annual chain linking, implementation of 1993 SNA). - Ethical standards - Guidelines on Compilation and Dissemination of Statistics issued September 1999; provided to all staff including contract workers. - Personnel Department periodically reminds staff of professional behavior; high ethical standards expected. ### Methodological soundness - Concepts and definitions - Korean national accounts transferred from the 1968 SNA to the 1993 SNA in 2004. - Chain volume estimates introduced in March 2009 with rebasing from 2000 to 2005. - Accounts currently compiled in accordance with the 1993 SNA. - Intended implementation of the 2008 SNA in 2014 when rebasing from 2005 to 2010. *Source: 6. Data Quality Assessment Framework (July 2003): Summary of Results for Balance of Payments Statistics, _cr10229* ### 2.2 Scope ### 2.2 Scope ### 2.2.1 The scope is broadly consistent with internationally accepted standards, guidelines, or good practices - The 1993 SNA tables and accounts that the Inter-secretariat Working Group on National Accounts (ISWGNA) determined as the minimum requirement for its implementation, as listed below, are compiled on a regular basis: - Annual value added and gross domestic product (GDP) at current and constant prices by activity. - Annual expenditures of GDP at current and constant prices. - Annual value added components at current prices by activity. - Sequence of accounts for the total economy (up to financial accounts) with an annual frequency. - Annual rest-of-the-world accounts (up to net lending). - The 1993 SNA tables and accounts that the ISWGNA determined as recommended for its implementation, as listed below, are compiled on a regular basis, except that annual supply-and-use (SUT) tables are not currently compiled: - Quarterly value added and GDP at current and constant prices by activity. - Quarterly expenditures of GDP at current and constant prices. - Annual SUT tables. - Benchmark I-O accounts on a product-by-product basis are produced every five years, based on direct investigation and surveys of transactions between industries to give detailed input structures. - SUT tables are derived from the benchmark using various available source data and mathematical techniques. - Since 2005, annual I-O tables are derived from the benchmark using a much reduced survey of input structures and indirect methods. - This is a widely used technique that allows for the introduction of new information to update I-O and SUT matrices. - Targeted surveys are carried out for those sectors where input structures are expected to have changed significantly. - The BOK also consults industry experts as part of this process. - Currently, the BOK is conducting a pilot survey to compile SUT tables directly. The reference year for this has not yet been decided. - In addition, production, income, and capital accounts are published annually by institutional sector. - Delimitation of the constituent units of the economy is in accordance with the 1993 SNA: - Territorial enclaves in the rest of the world, free trade zones, and workers who work part of the year in another country are included. - The production boundary is in accordance with the 1993 SNA. In particular, own-account production of goods for own final consumption, research and development on own account, output of goods for own-account fixed capital formation, mineral exploration, computer software and entertainment literary or artistic originals are included. - There are insufficient data to allow the inclusion of illegal activities within the production boundary. - The asset boundary is generally in agreement with the 1993 SNA: - No capital formation estimates are included for historical monuments, or for entertainment, literary or artistic originals. - Works of art are not included in estimates for valuables. ### 2.3 Classification/sectorization - 2.3.1 Classification/sectorization systems used are broadly consistent with internationally accepted standards, guidelines, or good practices - The classification of institutional units, transactions and other flows are in accordance with the 1993 SNA. - The private nonprofit institutions serving households (NPISH) sector is identified as a separate sector in the production accounts, but it is combined with households in the income and capital accounts. - The classification of economic activities is based on the Korean Standard Industrial Classification (KSIC) (1 February 2008) which is consistent with the International Standard Industrial Classification (ISIC), Rev.4. - The product classification used when compiling the I-O tables is compatible with the Central Product Classification. - The Classification of Individual Consumption by Purpose (COICOP) and the Classification of the Functions of Government (COFOG) are used to classify household consumption and the functions of government, respectively. ### 2.4 Basis for recording - 2.4.1 Market prices are used to value flows and stocks - Market output and output for own uses are valued at basic prices and at equivalent market prices, respectively. - Intermediate consumption and final uses are valued at purchasers’ prices including levied sales/excise taxes and value added taxes with the deductible part excluded. - Korean tax law prescribes that transactions between establishments within the same enterprise are to be valued at market prices, so no adjustments are required for transfer pricing. - Total imports and exports are valued on an f.o.b. basis, and information on insurance and freight for merchandise imports is available. - Imports and exports of goods in US dollars are converted to Korean won using average daily market exchange rates multiplied by daily trading values, while average monthly market exchange rates multiplied by monthly trading values are used for imports and exports of services. - 2.4.2 Recording is done on an accrual basis - Transactions and flows are recorded on an accrual basis and work-in-progress is recorded in the period that it is produced. - General government taxes and subsidies on products, and expenditure and revenue data, which are recorded on a cash basis, are adjusted to an accrual basis. - 2.4.3 Grossing/netting procedures are broadly consistent with internationally accepted standards, guidelines, or good practices - Transactions between establishments within the same enterprise are recorded on a gross basis, consistent with international standards. *Source: _cr10229 - 2.2 Scope* ### 3.1 Source data ### 3.1 Source data ### Data collection programs and coverage - A centralized business register for statistical surveys is maintained via an annual units census of establishments; establishments are identified visually using a team of local government interviewers (about 9000 interviewers were used in 2008). The register contains detailed information for establishments. - KOSTAT industrial censuses: every five years (years ending in 3 and 8) covering mining, manufacturing, electricity, gas, and water supply. - KOSTAT service industry censuses: every five years (years ending in 0 and 5) covering all service industries except construction, transport, public administration and defense, and compulsory social security. - All establishments with one or more workers are surveyed, except publicly-owned establishments which are covered in central government data supplied by the MOSF. - Population and housing census: every five years (years ending in 0 and 5), provides household-sector data including rentals. ### Annual, quarterly, and monthly surveys (industry specifics) - KOSTAT annual establishment surveys: cover all industries except construction and transport; for construction and transport annual surveys are on an enterprise basis. All establishment sizes included except mining and quarrying, and manufacturing where establishments with less than ten employees are excluded; proper sampling techniques used. - BOK Financial Statement Survey: conducted annually and quarterly, covers almost all industries except agriculture, forestry and finance; value added ratios for key industries (manufacturing, wholesale trade, retail trade, hotels and restaurants) derived from this survey. Small companies surveyed chosen by stratified random sampling among companies with sales of more than 2.0 billion won. - Agriculture: monthly Farm Household Economy Survey (results not reported to KOSTAT until after the end of the year); sub-sample Production Cost Survey of Agriculture Products follows same reporting arrangements. - Forestry and Fishing: monthly Fishery Production Survey (quantity and value) and monthly Fishery Household Economy Survey (sales, purchases, assets). - Mining, quarrying, manufacturing: monthly sample survey of value and volume of production, sales and inventories used to construct the Industrial Production Index (IPI). BOK undertakes special quarterly surveys from manufacturing companies and eight mining federations. - Electricity, gas, water: quarterly electricity data from Korea Electric Power Corporation; gas and water quarterly sales values and quantities obtained directly from providers. BOK conducts a full census each quarter of major enterprises in electricity, gas, and water supply. - Construction: various monthly and quarterly sources (KOSTAT Monthly Construction Trends; Ministry of Land, Transport and Maritime Affairs; MOSF for central government civil engineering; MOPAS for local government). BOK conducts a quarterly sample survey of large private civil engineering companies. - Wholesale and retail trade: KOSTAT monthly sales survey used for Service Industry Activity index. - Restaurants and hotels: KOSTAT monthly Service Industry Activity Index (value of sales) and BOK quarterly survey of large hotels. - Finance and insurance: enterprises supply BOK with quarterly financial statements (in connection with regulatory functions); these enterprises are not covered in BOK’s general Financial Statement Survey. - Transport and communications: quarterly sales values collected from enterprises, BOK surveys, or trade organizations. BOK conducts quarterly surveys covering maritime transport (full census), other transport and storage (sample survey of large companies), and information and communication (sample survey of large companies). - Other services: quarterly sales data from various sources including BOK quarterly surveys (using KOSTAT register), KOSTAT Service Industry Activity Index (monthly), trade organizations, and MOSF for government operations. - Household Income and Expenditure Survey (HIES): conducted monthly by KOSTAT; classification in accordance with COICOP; results released quarterly. Survey population excludes farming/fishing households and foreigners’ households. Monthly HIES covers 89 percent of all households in the country since it began including single-person households in 2006. Population frame is the Population and Housing Census conducted in 2005. HIES sample size is 9,000 households. An annual collection from farm households is added at year-end, bringing HIES coverage to 96 percent of all households. - BOK special surveys: about 12 special quarterly surveys across a wide range of industries, mainly covering large companies; often initiated as ad-hoc and later become regular. ### Government, price, and capital data used in national accounts - Detailed government data (including extra-budgetary funds, defense-related expenditures, and local government operations) are available to measure output, intermediate consumption, fixed capital formation, and final consumption expenditure of government services. - Capital stock and consumption of fixed capital estimated using the perpetual inventory method (PIM). - Price statistics available for deflation: Consumer Price Index (CPI), Producer Price Index (PPI), Export Price Index (XPI), Import Price Index (MPI). Where specific indices are unavailable for an aggregate, mixed or compound indices are derived from relevant components. ### Use of source data in compiling national accounts - For quarterly GDP by kind of economic activity, BOK mainly uses KOSTAT monthly survey data: IPI (mining and manufacturing), Service Industry Activity Index, Construction Industry Trend survey. - For quarterly GDP by expenditure, BOK mainly uses KOSTAT survey data (monthly sales index of consumption goods, quarterly HIES, monthly Index of Equipment Investment), BOK’s monthly balance of payments (BOP) statistics, and monthly merchandise trade statistics from the Korean Customs Service (KCS). - BOK maintains up-to-date compilation practices by visiting enterprises each quarter, monitoring press and research papers, participating in international conferences, and consulting with data suppliers. ### Assessment of main data sources (annual and quarterly summaries) - Text Table 1 (annual) and Text Table 2 (quarterly) summarize main sources and adequacy for annual and quarterly estimates by Korean Standard Industrial Classification and by expenditure category. Overall adequacy assessments recorded in the source include descriptors such as "Good", "Reasonably good", and "Adequate" for specific industry and expenditure items (examples preserved verbatim in the source). - Coverage of total economic activities (in terms of value added) by all data sources is higher for final than for preliminary versions of the accounts, at 90 percent of economic activities. Coverage is also good within the most important industrial groups (e.g., ISIC one-digit level). ### Data consistency, adjustments, and limitations - Most KOSTAT source data meet national accounts requirements. KOSTAT consults with BOK to align surveys with national accounts and notifies BOK in advance of questionnaire modifications. - Some KOSTAT surveys do not provide complete information required. Example: monthly establishment survey data for mining and manufacturing (used to construct the IPI) are used by BOK to estimate quarterly quantities by product. - KOSTAT’s annual manufacturing survey is used for gross output estimation; annual and quarterly value added are estimated by applying the value added ratio derived from the annual or quarterly Financial Statement Survey to gross output. This is necessary because KOSTAT’s annual survey calculates value added by subtracting production costs available at the establishment level (rather than the enterprise level) from gross output. - Some administrative data from government agencies (e.g., KCS, KTS, MOSF) use different definitions or time of recording and need adjustment to meet national accounts requirements. ### Timeliness - All source data required to produce the GDP estimates are supplied on a timely basis. *Source: IMF staff report section 3.1 "Source data" (text and tables).* ### 3.2 Assessment of source data ### 3.2 Assessment of source data ### 3.2.1 Assessment of source data: coverage, sampling, and errors - Financial statements from the finance and insurance industry are provided to the BOK in conjunction with its regulatory functions. - BOK surveys for other sectors are generally census-like for major companies and industry associations and “generally do not have sample errors.” - BOK assesses survey adequacy by: - confirming outliers with respondents; - undertaking time series analysis; and - undertaking cross-sectional analysis. - KOSTAT provides information on sampling errors, non-sampling errors, and coverage for its censuses and surveys; unusual results from KOSTAT are queried with KOSTAT. - The BOK checks accuracy of source data used for compiling the national accounts, including government finance statistics, BOP statistics, merchandise trade statistics, price and volume statistics, and other source data. ### 3.3 Statistical techniques ### 3.3.1 Data compilation techniques and error minimization - BOK runs relatively small-scale special collections for national accounts compilation. - Processing errors are minimized by: - error checking functions in tabulation software; and - staff mutual checking procedures. - Adjustments for outliers and non-response are made after confirmation with the data supplier and comparison with other sources. - KOSTAT survey practices include: - testing of modified questionnaires before use; - pilot tests for major collections; - three-stage editing: enumerator review, input edits to identify outliers/invalid data, head office review. - Response performance: - Very high response rates—around 99 percent. - In sample surveys non-respondents are replaced by comparable units; very small number of replacements. - Unusual responses are checked by phone; for large companies comparisons are made with data from a website of regularly submitted financial statements. ### 3.3.2 Treatment of non-observed activities and production approach procedures - Non-observed activities (informal, hidden, illegal) are not fully included due to insufficient source data; some elements are captured via estimation methods (for example, small retail traders captured in taxation statistics from the KTS). - BOK efforts to capture non-observed activities include expanding special collections from service industries and developing new source data. BOK assessment: non-observed economy is “not a major issue.” - Industry breakdowns used in national accounts: - highest breakdown: 16 industry sectors; - middle breakdown: 27 industry sectors; - lower breakdown: 81 industry sectors; - basic breakdown: 399 industry sectors. - Output estimates compiled at the basic breakdown level (four-digit ISIC Rev.4). - Intermediate consumption estimates compiled in detail at the lower breakdown level (broadly two-digit ISIC Rev.4). - Input-output (I-O) tables: - five-yearly benchmark I-O tables (latest for 2005); - annual I-O tables produced every year from 2006. - Final national accounts estimates for value added by industry for 2006 and 2007 reconciled with annual I-O tables. - Fixed ratios more than five years old are not used in estimating nominal value added. - Owner-occupied dwellings: output valued at estimated rentals tenants would pay; for benchmark year 2005 rents/imputed rents used Census of Population and Housing cross-classified by 16 major cities and provinces, by type of dwelling and by number of rooms. - Work-in-progress estimated for growing crops, standing timber, livestock reared for food, large construction projects and ships; no estimates for fish stocks due to lack of suitable data. - Consumption of fixed capital: - PIM used as basis for estimating consumption of fixed capital in current price terms for general government. - Reported depreciation data used for consumption of fixed capital in other sectors. - Development underway to produce capital stock estimates and consumption of fixed capital by the National Balance Sheet Team in the BOK. - Government data initially on cash basis are adjusted to an accrual basis within the BOK. - Estimates of output of buildings and ships are based on value of construction undertaken in the period. - Deflation practices: - Output deflated at basic breakdown level (399 industries, four-digit ISIC). - Intermediate consumption deflated at 81 industry level (two-digit ISIC). - For final annual GDP, double indicator method used to obtain real value added in most industries except public administration and defense and general government components of other industries. - PPI elements generally used as deflators for output and intermediate consumption; synthesized indices derived for construction, finance, and insurance. - Real output of government service industries measured by cost of production approach (sum of real intermediate consumption and real value added). - Intermediate input deflator for government services is a weighted average of CPI and PPI component indices. - Real value added for government services derived by adding volume estimates for compensation of employees (based on number of public officials), consumption of fixed capital (deflated using an index calculated using the producer price index and other asset deflators), and other taxes on production (deflated using intermediate consumption deflator). - Quarterly GDP deflation: - Double deflation not used in mining and quarrying, manufacturing, wholesale and retail trade, restaurants and hotels, and private sector service industries due to insufficient intermediate input data; in these industries real output is calculated by extrapolating volume data or deflating nominal data. - Volume measures of taxes/subsidies on products estimated by applying annual chain-linking indices computed using the tax ratio of the previous year. - Output volume of trade margins estimated as difference between real sales and real cost of sales deflated by relevant price indices such as PPI, CPI, and IPI. - GDP volume change measured using annual chain Laspeyres indices. - For quarterly GDP, annual overlap method used, which uses average price data from the previous year as the weight with linking factors derived from annual data. ### Expenditure approach procedures ### Compilation and deflation of expenditure components - Household final consumption expenditure, gross fixed capital formation, and changes in inventories are derived independently; no major aggregate/component is a balancing item. - Investment in machinery and equipment is based on a modified commodity flow method using value of shipments rather than production values. - Classification detail: - Household final consumption expenditure compiled using 160 basic headings from COICOP. - Government final consumption expenditure compiled at one-digit level of COFOG. - Gross-fixed capital formation and changes in inventories compiled by industry and by type of asset. - Fixed ratios more than five years old are not used; expenditure components are estimated independently using appropriate source data. - Specific treatment rules (one exception noted: works of art not included in valuables because of inadequate data): - Government final expenditure excludes incidental sales. - Expenses of residents abroad included in household final consumption expenditure and in imports. - Expenses of nonresidents in the economy excluded from household final consumption expenditure and included in exports. - Expenditures on stores of wealth (jewelry, works of art) included in valuables. - Deflation of expenditure components: final consumption expenditure, gross fixed capital formation, changes in inventories, imports, and exports are deflated with relevant price indices such as PPI, CPI, XPI, and MPI at the most detailed level available. - Household consumption implicit deflator generally consistent with the CPI due to detailed deflation mainly using CPI component indices. - Real government final consumption expenditure derived as sum of real intermediate consumption and real value added (compensation of employees, consumption of fixed capital, other taxes on production); real intermediate consumption deflated by weighted index from PPI and CPI components; compensation of employees at constant prices derived using number of employees. - Appropriate methods used to derive volume measures for changes in inventories. ### Seasonal adjustment and quarterly conversion - Denton technique used by BOK to ensure seasonally adjusted estimates for four quarters add to annual estimate. - Denton method is not applied to ensure original quarterly series add to annual benchmark; instead differences prorated across four quarters. - Observation: quarterly consumption of fixed capital for general government currently derived by dividing annual estimates by four; recommendation to use a trending formula per Section VII (Mechanical Projections) of the IMF Quarterly National Accounts Manual. - Quarterly GDP estimation process: - Estimates initially derived from unadjusted source data then seasonally adjusted. - Both original series and seasonally adjusted series are published. - Seasonally adjusted quarterly GDP produced using BOK-X12-ARIMA (Korean version of U.S. Census Bureau’s X-12-ARIMA) which reflects Korean characteristics (e.g., lunar calendar holidays). - Seasonal reanalysis conducted annually with forward factors calculated for the year ahead. ### 3.4 Assessment and validation of intermediate data and statistical outputs ### 3.4.1 Validation against independent sources - Intermediate results are checked against independent data sources such as financial statements of registered enterprises, employment statistics, and tax data from the KTS. ### 3.4.2 Assessment and investigation of statistical discrepancies - Discrepancies between intermediate results and independent data are assessed whenever national accounts are compiled; appropriate adjustments made when necessary. - Example: if productivity increases and enterprises’ cost-cutting are not reflected in main source data, BOK undertakes additional data collections from relevant enterprises to estimate adjustments. ### 3.4.3 Investigation of discrepancies and indicators of problems - Differences between GDP by production and expenditure approaches are analyzed and adjusted where appropriate. - Published GDP estimates are obtained using the production approach because source data for value added by industry are more abundant and considered more reliable than those for expenditure components. - A statistical discrepancy between GDP by production activities and GDP by expenditure components is shown explicitly on the expenditure side (a SUT framework is not used). - Statistical discrepancy has not exceeded 1 percent of GDP on either an annual or a quarterly basis over the last 10 years. - No unofficial GDP estimates exist for validation in Korea; research institution forecasts are not considered reliable. - Observation: fixed base year method may have biased GDP growth rates due to rapid growth of information and communication technology since the 1990s; to remove bias, annual chain-linking method introduced in March 2009 at rebasing from 2000 to 2005. ### 3.5 Revision studies ### 3.5.1 Routine analysis of revisions - BOK analyzes differences between initial and revised estimates when preliminary quarterly GDP and final annual GDP are compiled. - Major causes of revisions: - replacing forecasts by actual data; - discrepancies between quarterly source data and annual source data. - Long-term revision pattern studies conducted every five years at rebasing. - Revisions from rebasing explained by changing reference year for price and volume indices, changing source data, changing estimation methods, and appearance of new commodities. - A study was undertaken in 2006 covering revisions between preliminary and final quarterly estimates for 3Q 1999 to 4Q 2004: “Case Study on Revisions between Preliminary and Final Quarterly GDP” (available on the BOK’s website). Recommendation: repeat this type of study periodically to characterize size and bias of revisions to GDP and major components. ### 4 Serviceability ### 4.1 Periodicity and timeliness - Korea meets the Special Data Dissemination Standard (SDDS) for periodicity of GDP estimates. - GDP estimates are published quarterly at both current and constant prices. - Korea exceeds SDDS timeliness requirements: - Advance quarterly GDP estimates disseminated within four weeks after the end of the quarter. - Preliminary quarterly GDP estimates released within 10 weeks after the end of the quarter. - Preliminary annual GDP estimates disseminated within three months after the end of the year. - Final annual figures released one year later. ### 4.2 Consistency - Internal consistency: - Official GDP estimates derived using the production approach; a statistical discrepancy reconciles expenditure approach estimates. - GDP estimates at current prices, constant prices, and implicit deflators consistent within the “value = volume × price” framework. - Quarterly and annual GDP concepts, definitions, and classifications are identical; sources and methods are sometimes the same, other times quarterly indicators differ leading to revisions when annual data become available. Differences are prorated over quarters; recommendation to use the Denton technique to avoid distortion between Q4 and Q1 movements. - Time consistency and historical series: - Consistent annual and quarterly time series maintained from 1970 in accordance with the 1993 SNA. - Data for 1953 to 1969 are based on the 1953 SNA with constant price estimates using 1975 as base year; these reflect insufficient source data at time of transition to 1968 SNA. - Time series are revised back only to 1970 when methodology or reference year changes; discontinuities between 1969 and 1970 are explained in publications, metadata, and press releases. - In March 2009, chain volume measures introduced and new reference year 2005 adopted. Initial release provided estimates from 2000 forward, with full time series from 1970 released in December. - Reconciliation with other frameworks: - BOP data used directly after conversion to Korean won, with adjustment to measure exports of ships on work-done basis rather than full delivery value; occasional national accounts may not reflect revisions to earlier quarters’ BOP until next annual revision. - Government finance statistics used directly after adjustments for consumption of fixed capital and FISIM and conversion from cash to accrual basis. - IPI data from KOSTAT used in compiling accounts; adjustments made when necessary based on other detailed sources and special analyses. *Source: 3.2 Assessment of source data (excerpt) from the provided IMF/BOK national accounts document.* ### 4.3 Revision policy and practice ### 4.3 Revision policy and practice ### Revision schedule and triggers - The revision cycle of the national accounts follows a regular and transparent schedule determined on the basis of the availability of source data and the timing of revisions to related datasets. - The revisions cycle is explained in the national accounts publications and press releases; explanations for revisions are given in the text accompanying the statistical tables. - Special revisions, due to the discovery of new source data or the correction of significant errors, have never been necessary. - There can be revisions between the advance quarterly and the preliminary quarterly publications. - No revisions are made to the preliminary quarterly estimates for the first three quarters of the year. - At the end of March each year: - preliminary annual estimates are released for the latest year and final annual estimates for the previous year; - revisions are made to the quarterly estimates for the original data for the last two years; and - seasonally adjusted estimates are revised following the annual seasonal reanalysis. - Every five years a major revision is undertaken using data from the benchmark I-O tables, moving the reference period for the volume estimates forward five years to coincide with the latest I-O benchmark year. ### Identification of preliminary and revised data - Advance and preliminary estimates are distinguished from final estimates by putting the letter ‘p’ next to the date. - In general, quarterly estimates of the previous year and the current year are preliminary. - The letter ‘r’ is used to indicate revised estimates. ### Revision analysis and disclosure - Differences between the preliminary and advance data, and differences between the final and preliminary data, are explained to users at the time of dissemination. - An analysis of the revisions arising from the annual seasonal reanalysis is included in the quarterly publication. - Detailed analyses of revisions for major aggregates are published every five years at the time of rebasing. *Source: 4.3 Revision policy and practice (National Accounts), from the provided IMF document.* ### 0.4 Other quality management ### 0.4 Other quality management ### Processes to focus on quality - KOSTAT staff are trained in quality aspects and participate in a formal quality awareness program that reviews program activities, including periodic audits of the CPI. - KOSTAT works with an independent Statistics Committee (business, labor, academics, consumer advocates) that regularly advises on statistical issues; a Price Subcommittee provides input on CPI methodology, user needs, and potential areas for data development. - Every year, all staff of the PSD participate in two courses provided by the Statistical Training Institute. - The PSD runs a CPI study group and sometimes invites outside experts; regional branch staff take seminars and workshops on CPI issues every year. - An ad hoc user group of around 300 people provides insights via a twice-yearly email survey on user needs, including future improvements. ### Processes to monitor quality of the statistical program - Articles 9, 10 and 11 of the Statistics Act require the Commissioner of the Statistics Korea to conduct an examination of the quality of statistics. - The Statistics Quality Management Team of outside experts regularly evaluates CPI data quality; resulting reports are open to the public and available on KOSTAT’s website. - Although there is no official monthly report, all staff check data quality at every step of processing. ### Processes to deal with quality considerations in planning - KOSTAT has identified six dimensions of quality: accuracy, timeliness (punctuality), relevance, coherence, accessibility, and comparability. - PSD staff prioritize data quality and pursue these six dimensions in their work. - PSD staff at headquarters and in the field monitor developments to assess future needs; consultations with users are undertaken as part of the five-yearly index rebase process. ### Professionalism and editorial independence - KOSTAT is independent of the MOSF; the Commissioner is appointed directly by the President; independence derives from the Statistics Law and is recognized by government and most users. - KOSTAT produces its own press releases with no interference from the MOSF and MOSF does not have prior access to the data. - PSD staff select data sources, statistical techniques, and make dissemination decisions; they are conscious of respondent burden and keep reporting requirements to a minimum. - The PSD monitors news media for CPI coverage and has authority to comment on erroneous interpretation or misuse. ### Transparency and user information - Details of all aspects of the CPI are posted on KOSTAT’s website, and in news releases and monthly and annual reports; an advance release calendar is posted one year in advance. - Weights and surveyed items of the CPI are revised every five years; the public is informed via bulletins, briefings, news releases, and the website when major changes are introduced. - There is no internal governmental access to statistics prior to their release. - News releases and publications carry KOSTAT’s logo and the name and telephone number of the responsible division and person. ### Ethical standards - All staff receive a special ethics training program before beginning their jobs; this training is repeated twice a year. - All staff must follow KOSTAT’s Code of Ethics covering misrepresentation, misuse of data, and political interference; the Code is distributed to staff and posted on the premises. ### Concepts, scope, and classification - CPI concepts and definitions follow internationally accepted standards: the 2003 SNA and the ILO International Consumer Price Index Manual, 2004 (CPIM 2004). - Indices are compiled for the 3-digit groups of COICOP. - CPI weights derive from the HIES, which excludes households whose primary activity is farming or fishing (these are covered by separate Household Economic Surveys); consideration is being given to including such households in CPI weights. - The “All items” headline CPI does not include owner-occupied dwellings; a supplementary index includes imputed rentals of owner-occupied dwellings and a measure of core inflation (All items excluding agriculture products and oils). - Classification/sectorization conform broadly with the 1993 SNA, COICOP, and ILO’s CPIM 2004 guidelines. ### Basis for recording and valuation - Consumption expenditure for CPI weights is valued at purchasers’ prices including trade and transport margins and any taxes less subsidies on products. - Prices collected are purchasers’ prices prevailing at time of field collection; product specifications cover all price-determining characteristics including terms of the transaction. - Prices are recorded in the period in which they are purchased; volatile products (fresh fruit and vegetables and fish) are collected three times a month, other products once a month. - Net expenditure on used goods is not obtained from the HIES and therefore not included in the CPI. ### Source data coverage and surveys - Population distribution data come from the Population and Housing Census and Population Registers; areas and cities for price collection are revised after each Census. - From 2005 data, 150 representative areas in 38 cities were selected to reflect population distribution. - Outlet samples come from the Census of Wholesale and Retail Trade and the Annual Survey of Wholesale and Retail Trade; outlets include department stores, supermarkets, discount stores, specialized stores, and service establishments. - Rental values come from the House Rents Survey based on the Labor Force Survey sample; the survey collects rents from approximately 9,000 households each month. - The primary source for CPI item weights is the HIES. The HIES sample is about 9,000 households excluding farm and fishery households and institutional households; the HIES is conducted monthly and requires households to maintain a diary of daily expenditure. - The response rate of the HIES is about 82 percent of the original sample. - The CPS is the source of monthly prices for index compilation. - Items for pricing are selected if they account for more than 1/10,000 of average expenditures of the HIES and are representative; occasionally multiple specifications are included. - Regional staff collect prices for 489 items (represented by about 880 product specifications) from about 22,000 outlets and service establishments in 38 cities. - Prices for livestock products and agricultural and fisheries products are collected three times a month; other commodities and services once a month. - Prices collected are normal transaction prices excluding: (i) temporary irregular prices caused by disaster or similar conditions, (ii) prices of goods sold on credit and installment basis, (iii) discounted prices due to volume purchases, and (iv) prices of smuggled goods. - When products’ prices do not vary between regions, prices are collected centrally (examples: tobacco, magazines, electricity charges, postage and administration service charges). - PSD conducts ad hoc surveys (e.g., restaurants for the 2005 rebase) to obtain detailed weights and introduce new item specifications. ### Assessment and evaluation of source data - Under Articles 9, 10, and 11 of the Statistics Act, KOSTAT is required to evaluate its surveys; the Statistics Quality Management Team uses a quality evaluation system to routinely assess the Population Census, the HIES, and the House Rent Survey. - When regional branches conduct the CPS and send data to head office, PSD staff check the accuracy of price changes for every item. - No administrative data or other secondary sources are used in CPI compilation. ### Statistical techniques and compilation methods - Prices are collected in 150 areas of 38 cities; area selection in each city is proportionate to city population expenditures (example: Seoul has 11 of 150 areas). - For the first level of aggregation, the price relative for an item in a city is derived as its average (arithmetic mean) price in the current month divided by its average price (arithmetic mean) in the base year 2005 (Dutot index). - The Laspeyres formula is used for higher levels of aggregation; weights are updated every five years. The Korean CPI is a pure Laspeyres index because the weight period and price reference period are the same. - Missing temporary price observations are imputed by price movements of similar products for the same item in the same geographic area; carry-forward method is used depending on circumstances. - For seasonal items unavailable in the off-season, the last available prices are used until new prices are available. - Permanent outlet product replacements select a product from the same outlet that closely meets previous specifications and has gained market share. - Quality adjustment methods used include: - The direct comparison method. - Expert judgment by a PSD expert group for complex items. - Quantity adjustment (scaling by ratio of quantities). - Production cost/option cost adjustments when feasible. - Linking or splicing to show no price change when differences are attributed fully to quality change. - Hedonic regression techniques (applied to desk computers and notebook computers since 2005). ### Weights and reference periods - CPI weights are derived from the HIES, which conforms to the 1993 SNA. - New items are introduced at the time weights are updated every five years. - Owner-occupied housing is excluded from the CPI headline index but included in a supplementary index. - The PSD uses the current weight reference period which is the same as the price reference period; the current weight reference period is 2005. *Source: _cr10229 - 0.4 Other quality management* ### 3.4 Assessment and validation of intermediate data and statistical outputs ### _cr10229 - 3.4 Assessment and validation of intermediate data and statistical outputs ### Assessment and validation of intermediate data and statistical outputs (3.4.x) - The CPI is compared with relatable estimates from other major price indices produced by the BOK, including the PPI, export price index, and import price index. (3.4.1) - From price collection to data processing, staff check and query data at a detailed level. PSD staff are commodity specialists focused on particular products through monitoring magazines, websites, and regular communication with contacts in manufacturing enterprises. Unusual movements arising from large changes in particular sectors may be anticipated and investigated as necessary. (3.4.2) - Discrepancies resulting from inconsistent imputation techniques for missing data, or aggregation inconsistencies, are investigated and rectified. (3.4.3) ### Revision studies (3.5.x) - Following each five-yearly update of weights and items, the effects of substitution bias on the CPI are studied. (3.5.1) - For the period that the CPI is recompiled from the base year through to the current period (about two years), a revision study is undertaken to analyze: - weight shifts, - new items included, - old items removed, - changes in coverage and methodology. - The revised CPI index is systematically lower than the original index after the weight revision because of the use of the Laspeyres formula. - During the study, a chain Laspeyres index, a Paasche index and a Fisher index are compiled and reviewed to assist evaluation of revision effects. - A chain Laspeyres index is published yearly as a supplementary measure. ### Serviceability — Periodicity and timeliness (4.1) - The CPI is published monthly, meeting SDDS requirements. (4.1.1) - Usually the CPI is released on the first business day of the month after the reference month, which meets SDDS requirements. (4.1.2) - The CPI is released at 1:30 p.m. on the first business day each month; release dates are announced in advance in the January news release and on the KOSTAT website. (5.1.3 / 4.3.1) ### Serviceability — Consistency (4.2) - Upper-level indices are calculated by aggregating lower-level indices; indices are consistent in aggregation. (4.2.1) - Annual indices with price reference period of 2005 = 100 are published for the overall CPI from 1965, providing consistent time series for about a 40-year period. When revised series are introduced every five years, the CPI is recalculated on the basis of the new price reference period. (4.2.2) - For relatable products, PPI and CPI price trends are compared. (4.2.3) - Since 1965, the CPI rebase has been conducted every five years with for years ending 0 or 5; the rebase schedule is posted on the KOSTAT website. The PSD is preparing for the revision based on 2010 = 100. (4.3.1) ### Serviceability — Revision policy and practice (4.3) - The monthly released CPI is final, not preliminary. The CPI is revised when the base-year is changed; the new release includes revision information. (4.3.2) - CPI revisions are measured and assessed; results are explained in the news release, the annual and monthly CPI report, and on the KOSTAT website. (4.3.3) ### Accessibility — Data, metadata, and user assistance (5.x) - The CPI is publicly released in various formats and media, including very detailed data. Monthly news release includes a short analysis for the nation and 16 separate areas; main features summarized with time-series tables, commentary, and charts. Monthly and annual CPI reports contain more tables. (5.1.1) - Detailed breakdowns and long time-series are provided via the Korean Statistical Information System (KOSIS) database; users can access many tables free of charge. (5.1.2) - Significant accessibility problems to KOSIS: users are asked to download locally produced software not recognized by many users (particularly non-Korean users); institutional firewalls prevent the required downloading or accompany it with strong computer security warnings. In practical terms users cannot access these data or accompanying metadata electronically; they remain accessible through print publications or commercial vendors. KOSTAT expects financing to be available by the end of 2010, but it will take until 2013 to resolve the problem. (5.1.2) - The public is informed of forthcoming CPI releases and how to access data via internet and news media; CPI is made available to all interested users simultaneously. (5.1.4) - A range of publications and databases provide summary and detailed tables; no requests for further breakdowns have been received. (5.1.5) - CPI metadata (purpose, concepts, reference periods, classifications, compilation methods, etc.) are presented in publications, news releases, and on the KOSTAT website; however, access via KOSIS is impaired by the non-standard software requirement. The SDDS/GDDS metadata and SDDS summary methodologies are regularly reviewed and updated. (5.2.1) - CPI information in the news release is designed for ordinary users; annual report and metadata are intended for experts. (5.2.2) - Contact names and telephone and fax numbers are included in news releases and publications; KOSTAT website includes a “Frequently Asked Questions (FAQs)” segment. KOSTAT has rules regarding promptness of response. (5.3.1) - All KOSTAT publications contain information on surveys, release dates, purpose, contents and price; the KOSTAT website has a Statistical Shopping Mall for publications and purchases. (5.3.2) ### Key quality-assessment findings (Table 2 summary) - Practices observed (O) include: 0.3 Relevance; 1.1 Professionalism; 1.2 Transparency; 1.3 Ethical standards; 2.1 Concepts and definitions; 2.2 Scope; 2.3 Classification/sectorization; 2.4 Basis for recording; 3.1 Source data; 3.2 Assessment of source data; 3.4 Assessment and validation of intermediate data and statistical outputs; 3.5 Revision studies; 4.1 Periodicity and timeliness; 4.2 Consistency; 4.3 Revision policy and practice; 5.2 Metadata accessibility; 5.3 Assistance to users. - Practices largely observed (LO) include: 0.1 Legal and institutional environment; 0.2 Resources; 0.4 Other quality management; 2.2.1 (noted in recommendations); 5.1 Data accessibility is marked LO with a comment about significant access problems to KOSIS. - Statistical techniques (3.3) were marked with concerns: “Out of season prices should be imputed using an unbiased methodology rather than simply carrying forward the last observation.” ### Recommendations (selected, verbatim) - In the context of the 2010 CPI rebase, consult widely with users (especially the BOK) to determine the current principal use of the CPI (e.g., whether it is the measurement of consumption or inflation), define the most appropriate headline measure (e.g., including or excluding owner-occupied dwellings), decide on the preferred treatment of owner-occupied dwellings (imputed rentals or net acquisitions) and define core or underlying inflation. Change the presentation of CPI statistics as appropriate. Consider whether to give greater prominence to a broader measure of price change than the present “all items” index that excludes owner-occupied dwellings. (2.2.1) - Assess the feasibility of including farming and fishing households within the scope of the CPI either by extending the scope of the HIES, or incorporating data on expenditure patterns from the Farming and Fishing Household Economic Surveys during the weight calculation exercise. (2.2.1) - Review the methodology used for imputing missing seasonal product prices with the aim of removing the bias associated with using the simple carry-forward method, which should only be used in particular circumstances and with caution. (3.3.1) - As part of the consultations planned for the forthcoming rebasing program, consult on the proposal to change from a five-yearly to a three-yearly rebase cycle by reference to a detailed analysis of the extent of substitution bias associated with the use of the Laspeyres formula. Assess the relative improvement obtained by adopting a three-year cycle compared with adopting an annual cycle. (3.3.1) ### Producer Price Index (PPI) — Selected prerequisites and resource facts - The PPI is compiled in accordance with Article 86 of the Bank of Korea Act (2004-2008) and the Statistics Act (2007-2009). (0.1.1) - The BOK and KOSTAT cooperate in exchange of information for compiling the PPI; detailed data from mining and manufacturing census and the agriculture census are provided to the BOK under a formal arrangement with KOSTAT; shipment data from KOSTAT are used to derive weights. (0.1.2) - Confidentiality of individual reporters’ data is guaranteed by the Statistics Act (Articles 33 and 34); BOK staff are bound by Bank of Korea Act, section 42, and staff take a written oath to follow the code of conduct. Breaches may result in imprisonment under Article 39. (0.1.3) - The BOK has 21 staff (11 professional and 10 contractual) assigned to the PPI. The staff are knowledgeable about PPI concepts, methods, and practices. Additional staff may be required for implementation of annual chaining of the index. (0.2.1) - The BOK conducts an Independent Quality Evaluation every five years and a Quality Self-Evaluation every year; three internal committees assist in research and promote quality: the Quality Evaluation Advice Committee, the Source Data Improvement Committee, and the Seasonal Adjustment Committee. (0.4.1) - The Audit Department regularly reviews consistency and accuracy of published statistics; ESD prepares annual and long-term plans; Budget and Management Department checks conduct quarterly. (0.4.2) *Source: _cr10229 - 3.4 Assessment and validation of intermediate data and statistical outputs* ### 1. Assurances of integrity ### 1. Assurances of integrity ### 1.1 Professionalism - The PPI is compiled on an impartial basis. Under the Bank of Korea Act, Article 3, the BOK is independent from the government in its operations; this independence is emphasized by the highest levels of the BOK. - There is no external pressure on the BOK with respect to the content or release of the statistics. - Staff are encouraged to prepare research papers on statistical issues published under their names; seminars and conferences with internal and external experts are arranged. - Choices of sources, statistical techniques, and dissemination of the PPI are made freely by the BOK and informed solely by statistical considerations. - PPI staff select data sources and statistical methods; they are conscious of reporting burden and maintain methodological awareness, including providing the Producer Price Index Manual, 2004 (PPIM 2004) translated into Korean on their website. - The BOK monitors media coverage daily and seeks corrections or issues press releases to correct erroneous interpretation or misuse of statistics. ### 1.2 Transparency - The Bank of Korea Act and the Statistics Act are available on the BOK and KOSTAT websites; detailed methodological descriptions are presented on these websites and in various publications. The Economic Statistics Department (ESD) maintains an Information Center for additional user information. - There is no pre-release of statistics to government ministries. - BOK publications and press releases clearly identify the BOK as the publisher by name, logo, and insignia. - Advance notice is provided to the press or through the BOK’s website when preparing major changes in methodology, source data, or statistical technique (example: planning to introduce advance release calendars). - There have been no changes in methodology for the PPI since the last rebase (to 2005) in 2008. For the next rebase (to 2010) in 2013, changes in methodology and data sources will be announced. ### 1.3 Ethical standards - Guidelines on Compilation and Dissemination of Statistics were issued to all staff in September 1999; the document is given to all new staff including contract workers and displayed in work areas. - The Personnel Department periodically reminds staff of aspects of professional behavior. High ethical standards are expected of, and observed by, BOK staff. ### 2. Methodological soundness ### 2.1 Concepts and definitions - The 2005 based PPI uses 1993 SNA concepts and definitions for recording and valuation of product prices and weights. - The PPI refers to output prices; weighting is based on market output of finished goods and services, with indices published for detailed industry groups and commodities and by stage of processing. - Selection and specification of goods and services for repeat pricing follow the recommendations of PPIM 2004. Product specifications include all price determining characteristics including product and transaction characteristics. ### 2.2 Scope - The index covers all goods and services produced by domestic enterprises in the selected sectors which were sold to domestic markets in 2005; it excludes exports and imports (covered by Export Price Index and Import Price Index). - Goods industries covered: agriculture, forestry and marine, mining, manufacturing and electricity, gas and water. - Service industries covered: transportation, telecommunications, financial services, real estate, leasing and renting, advertising and professional, scientific and technical services. - Exclusions: works of art, ships, aircraft, weapons, and jewelry (difficulty obtaining comparable prices); services such as defense, education, and social security (difficulty defining prices). - Transactions in free trade zones and bonded warehouses are excluded (no effect on PPI but affect import/export indices). ### 2.3 Classification/sectorization - The PPI uses 1993 SNA concepts of institutional units and transactions. - The KSIC, revised December 2007, is used for classification; KSIC has five-digit industry codes with three-digit commodity codes. The commodity classification does not conform to any international standard. - A Korean Central Product Classification (KCPC), derived from the Central Product Classification (CPC), is under development at KOSTAT and will be used by the BOK for the next PPI rebase. - Goods are classified into four major industrial groupings; services into eight groupings; further divided into 47 groups and 107 subgroups. - A supplementary specialized classification exists by generic commodity groupings: foods and non-foods; fresh foods and other items; energy and other items; information technology and other items; and the PPI excluding fresh foods and energy. ### 2.4 Basis for recording - PPI weights and prices conform to 1993 SNA valuation rules. - Weights are derived from market output valued at basic prices, excluding trade and transport margins and product taxes. - Product specifications are designed to measure “pure price change” and include all price determining characteristics and transaction terms (timing of payment, packaging/containers, delivery arrangements). - Recording follows 1993 SNA timing rules: product output data used to derive weights are recorded in the period produced; producer prices are recorded at time produced. - Stage of processing indices are calculated by splitting commodity weights in proportion to end use (final demand, intermediate consumption, raw materials) and aggregating commodity indices according to each stage, consistent with 1993 SNA concepts. ### 3. Accuracy and reliability ### 3.1 Source data - Major sources for PPI weights: two annual industry censuses (mining/manufacturing and agriculture); services weights estimated from input-output data. - Censuses are based on a centralized business register maintained through an annual units survey. Rigorous testing of collection forms is undertaken. - Enumerators visit all establishments; response rates are around 99 percent. - Major price source: monthly survey of prices of selected representative product specifications from a sample of establishments. - Sampling frames: 2005 industry census for mining and manufacturing; 2005 agricultural census for agriculture. For services, 22 industries where pricing was feasible were selected. - Data for mining, manufacturing, and agriculture available at five-digit industry level and eight-digit commodity level. Censuses include unincorporated enterprises; data generally measure market output only (exclude own use). - Establishments selected for price survey represent 88 percent of the PPI universe. - Weight coverage of selected samples: over 90 percent of output in most major groups for mining, manufacturing, and agriculture; 70 percent to 80 percent for selected service industries. - Cutoff sampling for commodity selection: - Mining, manufacturing and agriculture: all commodities with a relative importance of .0001 are selected. - Services: cutoff of .0005 for the selected industries. - Establishment selection generally uses cutoff sampling with the three or four largest establishments selected in each industry; for services, the three or four largest establishments in each region are selected. - Data coverage and periodic collection: - Data are collected for 801 goods and 83 services from 6,100 establishments. - Each month, 4,100 prices for goods are collected and 2,000 prices for services. - Transaction specifications selected at establishment level using criteria: - The transaction amount. - The representativeness of price changes over time. - The possibility of price series continuity. - Prices are collected once per month for most items on a day of the week that includes the 15th of the month; fresh foods prices collected three times per month at 10-day intervals. - Ad hoc surveys are conducted for new and emerging products (example: flash drives); new products are usually added at rebasing, though sometimes added earlier when market share is significant. ### 3.1.2 Conformance of source data - All source data used for weights and price indicators conform to the PPI’s definition, scope, classification, valuation, and timing requirements; all data relate to domestic market transactions during the collection period and are at basic prices. ### 3.1.3 Timeliness of source data - Source data for weights are received at the time of release by respective agencies. - Price information is collected directly by the BOK and is available for index compilation before the end of the reference month. ### 3.2 Assessment of source data - Response rates to the price survey are nearly 100 percent; non-response is not a problem. - Large price changes are investigated and verified with respondents. - BOK price collectors visit establishments several times per year to collect information and verify specifications and reported prices. - Industry publications and company websites are used to compare price levels and trends. - Annual manufacturing/mining and agriculture collections are full censuses with complete enumeration; response rates are very high. ### 3.3 Statistical techniques - Rigorous price editing and querying processes are in place. - Temporarily missing prices (regular and seasonal) are estimated by carrying forward the last reported price. - For permanently unavailable products, representative replacement products similar in quality are selected in consultation with producers; where quality differences exist, quality adjustments use techniques including changes in production costs and linking with overlapping prices. - Hedonic methods are being tested for high tech goods. - New products generally introduced at rebasing; in some instances added earlier if market share warrants. - Elementary aggregate: for each transaction price, the long-term price relative is calculated and the elementary aggregate formed as the simple arithmetic mean of the relevant price relatives (the Carli formula is used). - The BOK recognizes Carli’s potential upward bias and that it is not recommended under international standards; experimental work on geometric means is underway. - The BOK is considering adopting the Jevons formula (addresses bias and aligns with international best practice). A supplementary index using the geometric mean formula has been compiled from the year 2000 for internal analysis. - No commitment to adopting the Jevons formula or concrete user consultation plans have been made; a study is planned on implementation issues. - Aggregation: Laspeyres formula is used to aggregate elementary indices upward. - In recognition of potential substitution bias, the BOK has compiled experimental annual chain indices for internal study. - Consideration will be given to implementing chain indices in the mainstream PPI at the next index review; no commitment yet. The BOK notes possible resource implications but experimental work suggests resource issues may have been addressed. - Weight reference period and price reference period are aligned, both relating to 2005. - When the 2005 based index was introduced, the previous 2000 based series was linked by annual link factors based on the ratio of the 2005 annual average indices calculated using new weights divided by indices compiled using old weights (previous series scaled to levels of new index in 2005). ### 3.4 Assessment and validation of intermediate data and outputs - PPI staff regularly compare PPI and Stage of Processing (SOP) indices with private sector measures (e.g., raw material price indices) for consistency. - Regular analyses of trends between relatable PPI, CPI, import price index and export price index components and aggregates are undertaken. - Unusual movements arising from large movements in particular sectors are investigated and explained in descriptive documentation in the monthly press release. - Overall, the PPI and SOP indices are consistent; consistent imputations and procedures are undertaken in both indices. ### 3.5 Revision studies - The PPI is final when first released; there are no preliminary monthly estimates. - Every five years, when weights are revised (rebase), a study is undertaken to identify causes of changes in weights, new and deleted commodities, changes in coverage, and changes in methodology. - The rebased index is systematically lower than the previous index because of substitution effects in a fixed weights index. - Because of substitution bias concerns, the BOK has commenced compiling an experimental annual chain Laspeyres index to assess the extent to which substitution bias is reduced. ### 4. Serviceability ### 4.1 Periodicity and timeliness - The PPI is published monthly and conforms to the SDDS requirements. - The PPI is released around the tenth day after the end of the reference month; the SOP index is released in the middle of the month. The timeliness of both indices conforms to SDDS requirements. *Source: _cr10229 - 1. Assurances of integrity* ### 4.2 Consistency ### 4.2 Consistency ### 4.2.1 Statistics are consistent within the dataset - Two classification typologies for the PPI: a basic classification by industry and a specialized classification by generic commodity groupings (see 2.3.1 above). - The aggregate index is invariant to the separate typologies of aggregation. ### 4.2.2 Statistics are consistent or reconcilable over a reasonable period of time - Consistent time series: - Aggregate PPI: back to the last revision in 2005. - Historical consistent series: back to 1995 (when service industries were introduced). - Consistent series for goods producing industries: prior to 1995. - Erratic movements caused by unusual shocks (e.g., oil prices, exchange rates, natural disaster) are explained in the monthly press release. - Rebase practice: - When rebased series are introduced every five years, the PPI is recalculated from the new base period forward and then linked to comparable components of the old series to provide a consistent time series. - It is not possible to revise series for methodological changes and source data improvements prior to the last revision. ### 4.2.3 Statistics are consistent or reconcilable with those obtained through other data sources and/or statistical frameworks - Components of the PPI for consumer goods are consistent and relatable with comparable CPI components. - PPIs for raw materials and intermediate goods are consistent with comparable components of the import price index. --- ### 4.3 Revision policy and practice ### 4.3.1 Revisions follow a regular and transparent schedule - The PPI is rebased every five years and new weights and a revised regimen introduced. This cycle is well known to users. - Dates of the release of rebased series are announced to the public more than three months in advance. - Rebases are scheduled around the availability of weight source data from the censuses and the latest input-output table. ### 4.3.2 Preliminary and/or revised data are clearly identified - Not applicable: there are no monthly revisions. ### 4.3.3 Studies and analyses of revisions are made public (see also 3.5.1) - No revisions are made to the monthly data. - A detailed analysis of the results of the five-year revision is made available at the time of release of the rebased series. --- ### 5 Accessibility ### 5.1 Data accessibility #### 5.1.1 Presentation and comparability - Time series presented: - Aggregate indices. - Two- and three-digit industry level of the KSIC in the monthly press release. - Five-digit industry level on the BOK’s website. - Table layouts: clear, concise, and easily readable; graphs informative. #### 5.1.2 Dissemination media and format - Release timing: - PPI released around the tenth day of the following month through a press release. - Detailed time series simultaneously presented on the BOK’s website. - Website presentation: clearly presented with user-friendly menus facilitating top-down data selection. - Access issue with ECOS: - ECOS requires users to download locally produced software. - Software not recognized by users, especially non-Korean users; institutional firewalls prevent required downloading or produce strong security warnings. - In practical terms users cannot access these data or their accompanying metadata electronically (they remain accessible through print publications or commercial vendors). - BOK awareness and planned remediation: - Budget provided and work will commence to bypass the need for this software through providing browser-free direct access. - It is expected that this work will be completed in 2012. #### 5.1.3 Statistics are released on a preannounced schedule - Release date is announced a week in advance on the website; the date is adhered to. #### 5.1.4 Statistics are made available to all users at the same time - PPI (aggregate and detailed formats) is made available to all users simultaneously. There is no advance release. #### 5.1.5 Statistics not routinely disseminated are made available upon request - Additional non-confidential data are made available on request; users are advised of this service on the BOK’s website. ### 5.2 Metadata accessibility #### 5.2.1 Documentation coverage and departures from standards - BOK publications: - Guide to Economic Statistics (English and Korean) covering PPI methodology. - Report on the 2005 Revision (in Korean) with more detailed descriptions of concepts, scope, classifications, and statistical techniques on the BOK’s website. - Documentation explicitly identifying differences from international standards is not currently produced. - Metadata access problem reiterated: ECOS access limited by non-internationally recognized software. - SDDS metadata and summary methodologies are updated regularly. #### 5.2.2 Levels of detail adapted to audience - Summary metadata presented in the monthly press release and on the website. - More detailed and specialized information on the PPI is also presented on the website. ### 5.3 Assistance to users #### 5.3.1 Contact points - BOK call desk staffed by an economist to assist users or refer to subject specialists. - PPI contact number available on the BOK website. #### 5.3.2 Catalogs and information on charges - BOK website has a list of publications. - Economic Information Office can advise users about available publications and services, including charges. --- ### Data Quality Assessment: Key Points from Table 3 (Summary) - Classification/sectorization: The Korean commodity classification currently used for the PPI does not conform to any international standard. - Statistical techniques concerns: - Temporarily missing prices for both regular and out-of-season products are imputed by simply carrying forward the last reported price. - The calculation of elementary aggregate indices uses a formula that introduces upwards bias, and is not internationally recommended. - Accessibility: Significant problem with access to the data through ECOS because of the use of software that is not internationally recognized. --- ### Recommendations - Implement the Korean Central Product Classification, based on the Central Product Classification, for the 2010 PPI rebase in 2013. - Introduce the use of more sophisticated techniques for imputing temporarily missing prices for both regular and seasonal products, as described in the PPIM 2004. - Continue the compilation and study of the Korean supplementary PPI using the geometric mean formula for the computation of elementary aggregate indices. Implement with the 2010 rebase. To the extent that the component products within an elementary aggregate are heterogeneous, with a resultant disparity of price levels, cluster the prices within narrow price bands and form separate elementary aggregates. - Continue the compilation and study of annual chain Laspeyres PPIs, consult with users during the 2010 rebase and implement with the rebase, to counter the effect of substitution bias. - In metadata documentation, explicitly identify areas where there are departures from international standards in the Korean PPI. *Source: _cr10229 - 4.2 Consistency* ### 1. Assurances of integrity ### 1. Assurances of integrity ### Professionalism - No formal arrangement supports professional independence, but strong informal safeguards protect the compiling unit and the compilation process. - Staff make their own decisions on data compilation based on objective facts and the recommendations of international manuals and accept no interference; MOSF management strongly supports this. - Staff recruitment is based on a relevant specialty (statistics, economics, or accounting). - Staff training and exchanges: participation in workshops and training courses organized by regional and international organizations (e.g., the OECD and the IMF); commissioner of KOSTAT supports education programs, exchanges, and cooperation with international organizations, foreign governments, and foreign institutions. - Staff contribute to an annual description of the GFS system in the annual publication Government Finance Statistics of Korea. - Decisions on sources, statistical methods, and dissemination channels are made exclusively on professional considerations; submissions to the National Assembly do not consider factors other than accuracy, objectivity, and credibility. - MOSF actively comments on misinterpretation or misuse of GFS by the National Assembly, the media, academia, research institutes, or NGOs—generally via press releases posted on the MOSF website (http://english.mosf.go.kr, News and Events). In cases involving the National Assembly, comments may be delivered as a review report or explained during plenary sessions. - The Public Relations Division in the MOSF reviews the media every day to prevent misinterpretation or misuse of statistics. ### Transparency - Laws and regulations: All Acts and Presidential and Ministerial Decrees are published in the Kwanbo (the Government Gazette) and posted on relevant Ministries' websites; laws and regulations are available in public libraries with computerized search facilities and universities. - Government Accounting Settlement Guidelines are published and easily accessible. - There is no internal governmental access to statistics prior to release; officials are not aware of attempts by other government bodies to obtain early access. - Publication approvals: monthly GFS data publication is approved by the Director General of the Fiscal Policy Bureau in MOSF; annual data publication is approved by the Minister of MOSF. The approval process is made public through a Delegation Decree. - Products are clearly identified by source: press releases include the name of the data-producing agency, logo, emblem, and contact information of the staff member in charge; other formats equally identify their source. - Advance notice of major changes: to date there have not been major changes in source data, methodology, or techniques; when major changes are introduced (e.g., implementation of GFSM 2001), MOSF intends to provide adequate advance notice and background to the public. ### Ethical standards - All public officials are bound by the Code of Ethics for Civil Servants (obligations: loyalty to the State, honesty and service to the people, professional and personal integrity). - MOSF staff are bound by a specific code of conduct that: - Specifies obligation to fair performance of official duties. - Provides guidance when higher officials order duties in contravention of fairness or when unreasonable demands are made by politicians or political parties. - Addresses avoidance of duties with personal interest, abstaining from giving special favors, and not using information obtained in the course of official duties. - Imposes penalties for noncompliant staff. - Code awareness and education: detailed information and Q&A documents; periodic reminders via workshops for all MOSF employees; new staff and transferred officials receive education on the code when they join. The cultural environment promotes strict observance of the code by all MOSF officials. ### 2. Methodological soundness ### Concepts and definitions - Overall structure follows GFSM 1986 concepts and definitions. - Authorities are restructuring the budget process to disseminate GFS according to GFSM 2001 within a few years. - Restructuring progress includes adoption of a comprehensive new dBrain and new government accounting standards. - Accrual accounting and double-entry bookkeeping were introduced for all local government units (with the exception of most education entities) in January 2007; the remaining education entities followed in January 2009 (cash-based data will continue to be available). - In December 2008 a task force was instituted to review the scope of government, aiming to base scope on institutional units per GFSM 2001 recommendations. The revision process involved external experts and research institutes, including the Korean Institute of Public Finance. - GFSM 2001 compliant statistics are expected to be published in 2012 after a trial period and should encompass the full range of operations and balance-sheet tables recommended by the Manual. - GFS compiling Ministries also publish Budget Settlement Statements; once structuring is completed, budget statements will have approximately the same format as GFSM 2001 statistical tables. ### Scope - Government sector coverage: all entities performing a government function, consistent with GFSM 1986 (which differs from the 1993 SNA recommendations). - Data are detailed by central and local government levels; data on nonfinancial public enterprises (NFPEs) are published in GFS format. ### Classification/sectorization - Distinction between central and local government follows GFSM 1986 recommendations. - Administrative composition: - Central and local government each comprise general budget accounts, special accounts, and public funds. - Central government also includes extra-budgetary accounts and off-budget items; local government includes special accounts for local education. - Definitions of accounts: - General account: general expenditures financed by general tax revenue. - Special accounts: funds raised from specific sources for selected purposes; subdivided into (i) accounts to finance specific programs (financed by NFPE operating income and transfers from general account), (ii) special accounts for managing special funds (e.g., the Fiscal Financing Special Account, financed from income from government property and surpluses from other public funds), and (iii) special accounts for expenditures financed with earmarked revenues. - GFS exclude special accounts mainly involved in commercial activities (the NFPEs) or with monetary/financial functions; Foreign Exchange Stabilization Fund is considered part of monetary authorities accounts per GFSM 1986 (see section 4.2.1). - Extra-budgetary funds: owned by the government, operations important to government policy objectives, included in budget documents but not technically part of the budget proper. - Off-budget items: small or temporary accounts that usually have no positive or negative balance (example: Foreign Sub-loans account). - Box 1: Composition of central and local government sectors (summary) - Central government includes: - Budgetary central government (general account covering Presidency, Prime Minister’s office, National Assembly, Judiciary, ministries, national election commission). - Extra-budgetary central government: special accounts other than those of entities engaged in large-scale commercial activities and social security funds; public funds excluding funds with monetary and financial functions; off-budget items such as the account for foreign sub-loans. - Social security funds: National Pension Fund, Employment Insurance Fund, Industrial Accident Compensation Insurance and Prevention Fund. - Data for five central government special accounts that refer to NFPEs are compiled and published in GFS format. - Local government includes: - The general accounts, special accounts, public funds for: the city of Seoul, six other autonomous cities, nine provinces (Do); 74 cities (Si), 89 counties (Gun), 69 autonomous districts (Jachi-Gun); local education institutions. - Data on small entities such as nonautonomous districts (Gu), Dongs, and Meyons are included in data reported by larger local government entities. - Economic and functional classifications are consistent with GFSM 1986. - Lending minus repayments include changes in equity and are presented on a gross and net basis. - Privatization receipts are classified under lending minus repayments (net lending and net acquisition of equities). ### Basis for recording - Valuation: - All flows are recorded at the value of the cash received or paid. - Transactions in foreign currency are converted to local currency using the mid-point exchange rate prevailing in the market at the moment they take place. - Debt outstanding is valued at face value. - Debt denominated in foreign currencies is valued at appropriate foreign exchange rates as at the end of each period. - The difference between value on maturity of discounted bonds and their issue or acquisition price is recorded as interest. - These practices are consistent with GFSM 1986. - Recording basis: - Despite parts of government adopting accrual accounting, GFS are compiled on a cash basis in accordance with GFSM 1986 (transactions recorded when cash is received or paid). - Payments recorded during the first 15 days of the fiscal year are allocated to the previous year. - Grossing/netting: - All transactions are shown on a gross basis. - Tax refunds are shown as negative tax revenue. - Borrowing and amortization are shown on both a gross and a net basis. - (Net) cash operating surpluses or deficits of NFPEs are recorded as revenue or expenditure respectively. - Intergovernmental transfers are identifiable and eliminated when accounts are consolidated. - Practices are in accordance with GFSM 1986 recommendations. ### 3. Accuracy and reliability ### Source data - Primary sources: administrative records from budget execution data; budget codes used by central government, local government, and local education agencies include identifiers for economic, functional, and transaction partner classifications. - Extra-budgetary accounts use the same coding system as budgetary accounts. - Central government debt tables sources: submissions that all central government agencies must make to the MOSF. - Computerization and systems: - Digital Budget and Accounting System (dBrain) in central government in use since 2007: integrated fiscal information system covering budget formulation, execution, settlement, management of state assets and debt on an online and real time basis. - Agencies not using dBrain (Ministry of Unification, Korea Post, some public funds) either connect in real time or periodically upload to dBrain. - MOPAS uses e-Hojo; MEST uses Edufine. - Systems and a bridge table can automatically produce statistical tables, making sampling or supplementary collection largely unnecessary. - Source data coverage and detail: - Detailed source data for central and local government are fully reconcilable with GFS definitions and classifications. - Source data collected by the MEST from schools provide few details. - Timeliness: - Source data are available on a timely basis. - In dBrain, entries are recorded when transactions are made via Electronic Bill Presentation and Payment and Electronic Funds Transfer. - Agencies not permanently linked upload information regularly (at least every month). ### Assessment of source data - Data uploaded to Digital Budget and Accounting Systems are assessed daily at responsible ministries; systems perform automated input tests. ### Statistical techniques - Because sources are complete and timely, limited statistical estimation is required; compilation mainly involves several validation rounds and simple addition by automated systems. - Essential procedure: development of sound bridge tables between source data classified by budget categories and GFSM 1986 classifications. - Other statistical adjustments and transformations are minimal. ### Assessment and validation of intermediate data and outputs - Intermediate results validation: - Statistical discrepancies are rare due to detailed monthly reconciliation and automatic cross-checks in the compilation system. - Monthly comparisons are made with data recorded by the BOK (central government) or the designated regional bank (local governments). - Comparisons also made with revenue data from the tax service and other administrative sources (e.g., progress of major projects). - Intermediate results are evaluated against data for the same period in the previous year. - Discrepancy handling: - Statistical discrepancies are investigated and solved. - Discrepancies are rare and mostly do not allow drawing general conclusions about types of errors to monitor more closely. ### Revision studies - Revisions are incidental and limited in scope; they do not give rise to routine studies into systematic errors or omissions. *Source: _cr10229 - 1. Assurances of integrity* ### 4. Serviceability ### 4. Serviceability ### 4.1 Periodicity and timeliness - GFS detailed data for the central government are disseminated on a monthly basis, and data for the general government are disseminated on an annual basis. - Quarterly debt data for the central government are posted on the KOSTAT website. - The periodicity of these data is consistent with SDDS requirements. - Monthly GFS data for the central government are generally disseminated within one month after the reference period. - Data for the first months of the fiscal year may take slightly longer due to work pressures associated with the closing of the preceding fiscal year; this is described as a small infringement on SDDS requirements. - GFS on the general government are disseminated usually about one year after the end of the reporting year. - Good practice as laid down in the SDDS requirements indicates that these data should be published within two quarters after the reporting year; Korea is availing itself of a flexibility option regarding the timeliness of general government operations data. - Quarterly statistics for central government debt are disseminated within one quarter, which corresponds with SDDS requirements. ### 4.2 Consistency - Statistics are mostly internally consistent: components of revenue, expenditure, net lending, and financing add to aggregates. - Detailed revenue, expenditure and net lending, and financing data agree with the aggregates in the summary table. - Substantial internal cross-checks aimed at ensuring the internal consistency of the fiscal accounts are embedded in the digital fiscal accounting systems used by the three GFS compiling ministries. - Inconsistencies identified: - The definition of government in the debt tables is not equal to the one in the operations tables. - Contract authorizations are not included in the operation tables, but they are recorded as part of government debt. (Contract authorizations refer to unpaid government debt that has been converted into fixed-term contractual obligations. They are a minor element of debt). - In line with the recommendations of the GFSM 1986, the Foreign Exchange Stabilization Fund is excluded from the operations tables; however, bonds issued by this Fund are included in the outstanding debt of central government in response to the National Finance Act. - These inconsistencies will be removed when the data are published according to the GFSM 2001. - No significant breaks in series over a reasonable period of time. - The MOSF adheres to the principle that when changes in statistics or methodology are introduced, historical series should be reconstructed as far back as reasonably as possible (example: reconstruction when GDP data were changed by adopting a new base year). - Unusual changes in trends are explained in MOSF press releases. - Reconciliation with other macro frameworks: - Historically, GFS and BOK government aggregates did not coincide till 2001 owing to differences in institutional and transactions coverage, but source data were reconcilable. - In principle, the GFS are now reconcilable with the balance of payments and the national accounts (GFS is based on cash data; BOP and national accounts compilers use accrual base information emerging from the same source). - Financial statistics classify three unfunded government employee pension schemes in the subsector Other financial institutions, whereas the GFS classify them in central government; reconciliation is possible. ### 4.3 Revision policy and practice - Once the National Assembly has reviewed the budget account settlement, the GFS data including the fiscal balance and government debt are considered final. - Minor revisions to monthly data are incorporated in the monthly cumulative data disseminated for the following month(s). - There is no schedule to conduct major revisions, given that data are sourced from actual administrative files. - Preliminary data are clearly indicated as such in the publications, either as a note in the statistical tables or as a general warning in the accompanying text. - Press releases and several other publications contain an explanation of revisions. ### 5. Accessibility (as presented in this content unit) - Three annual press releases related to GFS (annual general government data, Government Finance Statistics of Korea publication, and summary data on operations of local government) meet criteria for clear textual and analytical presentation, understandable tables providing time series if appropriate, and charts conducive to correct interpretation. - MOSF has developed a website to draw together comprehensive information on the Korean GFS; the website should present the detailed operation accounts for general government and its subsectors, as well as the debt data of central government (the latter are already available on the Korean language website). - With the exception of statistics published on the National Summary Data Page, no preannounced schedules exist; many users know approximately when the data will be released (examples: monthly central government data about one month after the reference period; preliminary annual budget execution data published in March; final data disseminated immediately after National Assembly approval). - Users can sign up to be alerted when data are posted. - Statistics are made available to interested users at the same time; past practice of providing press releases to the media under embargo has been discontinued. - At user request, more detailed data than those appearing in publications can be obtained. - Metadata and documentation: - The Government Finance Statistics of Korea, Report on Government Debt Management and Government Debt Management Plan, and the Financial Yearbook of Local Government provide information on concepts and methods, but metadata refer to specific levels of government and are in part difficult to access. - DSBB metadata posted on the IMF’s website provide a general overview of Korean GFS concepts and methods. - The MOSF monthly publication of central government operations provides concise metadata on GFS concepts, scope, classifications, etc. - A simple introduction is available in the MOSF publication Budget Overview, distributed when the budget is submitted to the National Assembly, explaining differences between budget concepts and GFS concepts of “revenue” and “expenditure.” - Assistance to users: - Names of relevant staff are indicated in GFS publications and press releases. - The Guideline for Civil Affairs Management requires that requests for data must be followed up within seven days; timely response to inquiries is an indicator for evaluating MOSF performance. - A short catalog of GFS publications is available. ### Recommendations (as provided) High priority - Review range of publications of data and metadata for general government and its subsectors with a view to increasing focus on, and accessibility of, data on the government sector as a whole. - Strive to make a detailed description of sources and methods of the compilation of Korean GFS available to users (in Korean and English). - Study the possibilities to publish the general government operations data within the timeliness prescribed by the SDDS (and thus relinquish the current flexibility option). - Footnote in all publications of government debt that, in contrast to the functional definition of government in the operations accounts, the central government debt data also include bonds issued by the FESF. Furthermore, involve the BOK and KOSTAT in the discussions how to make the GFSM 2001 definition of government operational in Korea. Consider classifying the FESF into the accounts of the central government at the time of the GFSM 2001 migration, in line with the precepts of that manual. Other recommendations - Strictly adhere to SDDS timeliness for GFS data on the NSDP. - Introduce an advance release calendar for all Korean GFS publications. - Publish monthly central government operations data as distinct months instead of the cumulative figures for the current year. This facilitates the analysis of trends by allocating any revision on the original data to the correct months. - Periodically compare the GFS with the government data in the balance of payments, the national accounts, and monetary statistics. *Source: _cr10229 - 4. Serviceability* ### 0.2 Resources ### 0.2 Resources ### 0.2.1 Staff, facilities, computing resources, and financing - The MFST comprises 13 professional staff. - Experience of staff ranges from 10 months to over seven years. - Team composition: a head, five economists, and seven assistant economists. - Educational qualifications: - two staff members have doctor’s degrees in economics and in statistics, - one has a master’s degree in economics, - all other professional staff have bachelor’s degrees in economics and in business administration. - Training and knowledge transfer: - Two staff members have participated in the IMF’s Monetary and Financial Statistics training courses. - Job manuals explain concepts, classification, compilation process, and computer programming; manuals are regularly updated by each current compiler and handed over to new compilers with explanation and coaching. - New staff receive on-the-job training for about one month. - Compensation and retention: - Salaries are competitive in the BOK; BOK does not have a serious issue in retaining staff or obtaining funding for statistical development. - IT and systems: - Each staff member has a computer; computers are linked by a local network within the ESD and with other departments of the BOK. - An exclusive network line is available for accessing the database of the KSD and the BOK wire system. - MFST staff have internet access to the database of the FSS for relevant balance sheet data. - MFST compiles statistics using the BOK’s Economic Statistics System (ECOS; http://ecos.bok.or.kr). - All ODCs report data electronically via the BOK’s DACOS (an integral component of ECOS). - Adequate safeguards exist for emergency back-up and retrieval of statistical series and updates. ### 0.2.2 Measures to ensure efficient use of resources - Budget and monitoring: - In August of each year, the ESD prepares its budget for the following year; the BOK’s Budget and Management Department (BMD) evaluates it. - Program and use of resources are monitored on a quarterly basis. - The program is reviewed annually. - Performance assessment and process review: - Staff performance assessment is conducted twice a year; outcomes determine one of the two salary bonuses. - Reviews of work processes are carried out periodically. - Outside consultants are used on occasion (for example, to develop statistical compilation systems). ### 0.3 Relevance ### 0.3.1 Monitoring relevance and practical utility - User engagement and feedback: - KOSTAT regularly monitors users’ statistical needs and conveys them to the BOK. - The BOK does not maintain a formal users’ liaison group for monetary statistics. - The ECOS website is used to communicate with users; users can submit questions and comments and participate in regular surveys about users’ needs via the site. - Contact points (e-mail and phone) are provided on press releases; contact points are provided in all publications and data releases of the BOK. - Dissemination and responsiveness: - Monthly monetary data are provided and explained to the press by the BOK. - MFST informs users by press releases when relevant changes occur (methodological changes, adjustments to reporting procedures, availability of new data, revisions). - The BOK published Easy Guide to Understanding Economic Indicators to provide basic metadata and information about some procedures for statistics compilation. - The BOK participates regularly in statistical meetings and seminars organized by international and regional organizations and undertakes studies to identify new and emerging data requirements. ### 0.4 Other quality management ### 0.4.1 Processes to focus on quality - Institutional commitment and incentives: - BOK has made major efforts to improve data-collection systems, align compilation procedures with international statistical standards, and expand and improve dissemination means. - Quality improvements are a major concern and duty of BOK staff; improvements are reported to managers and factor into staff performance evaluation. - Audit, hiring, and knowledge sharing: - The Audit Department regularly reviews consistency and accuracy of disseminated statistics. - Staff are hired following a competitive process; internal promotions are based on relevant skills, expertise, and performance. - BOK encourages participation in seminars and training programs and encourages staff to prepare research papers on statistical issues (published under their names) and to participate in seminars and conferences. - The ESD encourages circulation of research papers within the ESD as a means of knowledge sharing. ### 0.4.2 Statistical choices informed by statistical considerations - The choices of sources, statistical techniques, and dissemination are made freely by the BOK and informed solely by statistical considerations. - Report forms used to collect data are included in the BOK’s Manual on Monetary and Financial Statistics Reports (June 2009). - The BOK’s Explanation of Monetary and Financial Statistics (2008) documents sources, methods, and classification of accounts used in compiling monetary statistics. ### 0.4.3 Right to comment on erroneous interpretation and misuse - The BOK monitors media coverage daily and seeks corrections from the media where there is erroneous interpretation; it also issues press releases to correct misinterpretation or misuse. ### 1. Assurances of integrity ### 1.1 Professionalism - Independence and impartiality: - Monetary statistics are compiled on an impartial basis. - By the Bank of Korea Act, Article 3, the BOK is independent from the government in its operations. - The BOK’s governor is appointed for a term of four years and may be reappointed for a single consecutive term (Article 33). - No external pressure on the BOK with respect to content or release of statistics. - Recruitment and professional development: - Recruitment is based solely on relevant aptitude and expertise; hiring is competitive. - Internal promotions are based on relevant skills, expertise, and performance. - Staff are encouraged to participate in domestic, regional, and international seminars and training programs and to prepare and publish research papers. - Reiteration of methodological independence: - Choices of sources, techniques, and dissemination are made freely by the BOK and informed solely by statistical considerations. - Reports and explanatory documentation are provided in the BOK’s Manual on Monetary and Financial Statistics Reports (June 2009) and Explanation of Monetary and Financial Statistics (2008). - Right to correct misinterpretation: - BOK monitors media coverage daily and seeks corrections or issues press releases to correct misuse. ### 1.2 Transparency - Legal and methodological availability: - The Bank of Korea Act, the Statistics Act, and the Banking Act are available on the BOK, KOSTAT, and FSS websites, respectively. - Detailed descriptions of methodologies and techniques are presented on the BOK’s website and in various statistical publications. - The ESD maintains an Information Center for additional information on statistics. - Pre-release governmental access: - There is no internal government access to monetary and financial statistics prior to their release to the public. - Clear identification of products: - BOK publications and press releases clearly identify the BOK as the publisher by name, logo, and insignia. - Advance notice of major changes: - Advance notice is provided to the press, or through the BOK’s and ECOS websites, when the BOK is preparing major changes in methodology, source data, or statistical technique (for example, introducing revised monetary aggregates based on the MFSM or planning to introduce advance release calendars). ### 1.3 Ethical standards - Ethical guidance and training: - Guidelines on Compilation and Dissemination of Statistics (issued September 1999) are provided to all staff, including contract employees, and displayed in work areas; Personnel Department periodically reminds staff of professional behavior aspects. - The BOK’s Rules of Employment, the Code of Conduct, and the Code of Ethics and Morals provide employment rules and guidance on conflict of interest, improper requests, and information disclosure. - Article 32 of the Code of Ethics and Morals requires that training be provided at least once a year to facilitate compliance; such training is provided to all new employees and familiarity with the document is required of new staff, including temporary staff. ### 2. Methodological soundness ### 2.1 Concepts and definitions - Framework and MFSM alignment: - The MFST’s methodological framework is broadly based on the MFSM; a few minor departures still exist. - Progress since the 2001 Data ROSC: compilation shifted from earlier IMF Draft Guide to Money and Banking Statistics (December 1984) to MFSM-based practices. - Depository corporations surveys and MAA: - MFST compiles a depository corporations survey (DCS) based on the monetary authorities account (MAA), accounts of commercial and specialized banks, and accounts of nonbank depository corporations. - The MAA consolidates balance sheets of the BOK and the Foreign Exchange Stabilization Fund (FESF). - The FESF is owned by the central government, has a foreign currency account at the BOK that pays agreed fixed interest, and does not hold foreign assets itself. - MFST compiles a separate table on reserve money and its components; the MAA does not explicitly identify the monetary base as recommended in the MFSM and focuses on broad money components issued by the BOK. - Some asset and liability components of the MAA differ from MFSM recommendations (for example, no separate item for Claims on other depository corporations; net claims on ODCs presented as “Consolidation adjustment, net”). - Surveys and publications: - MFST compiles the ODCs survey (ODCS) covering commercial and specialized banks and nonbank depository corporations; this survey is disseminated only through ECOS and is not included in the BOK’s monthly statistical publications. - Monthly publications present two separate surveys: one for commercial and specialized banks, and one for nonbank depository corporations. - Monetary aggregates (main aggregates compiled): - Reserve money: currency in circulation (same as currency outside depository corporations) and BOK liabilities to ODCs in the form of required and excess reserves. - M1 (narrow money): currency in circulation plus demand deposits and transferable savings deposits of resident nonfinancial corporations, other financial corporations, and households. - M2 (broad money): M1 plus money market funds, time and savings deposits, deposits in foreign currency, marketable instruments (certificates of deposit (cd), repurchase agreements, cover bills), yield-based dividend instruments (money in trusts, beneficiary certificates), financial debentures, and cash management accounts (CMAs), all held by resident nonfinancial corporations, other financial corporations, and households. Financial instruments with original maturities of more than two years are excluded. - In 2006 the MFST began releasing a liquidity aggregate (L) and changed the name of the former M3 aggregate into Lf comprising the liquidity aggregate of financial institutions: - Lf (liquidity of financial institutions): M2 plus financial instruments with original maturities of more than two years (those types included in M2), policy reserves at life insurance companies, and deposits of the Korea Securities Finance Corporation. - L (liquidity aggregate): Lf plus liquidity instruments issued by central and local governments, certain other financial corporations, and nonfinancial corporations. ### 2.2 Scope - National definition and coverage: - A single definition of broad money is not prescribed in the MFSM; national definition of broad money is used to determine institutional units covered by the DCS. - DCS composition (as of end-September 2009): - The depository corporations sector comprised: the BOK (including the FESF), 50 commercial banks, five specialized banks, seven merchant banking corporations, 14 investment trust accounts of asset management companies, 38 trust companies (commercial banks’ trust accounts), 106 mutual savings banks, 1404 mutual credits, 982 credit unions, 1525 community credit cooperatives, 20 securities companies (issuing CMAs), and the Postal Savings. - Coverage of the DCS is complete, based on data from all these institutional units. - Postal Savings is classified as an ODC; only accounts related to financial intermediation services are included in the aggregate. - The mission was informed that there are no ODCs in liquidation in Korea at this time. - Securities companies issuing CMAs: - Data for securities companies issuing CMAs providing settlement services are included in DCS starting from July 2009; only the CMA accounts and corresponding assets of these institutions are included. - This treatment is not in line with the MFSM concept (entire balance sheet should be covered if any instruments are included in broad money). - These securities companies also issue repurchase agreements that could be considered substitutes for deposits, although the amounts are small (about 1.8 percent of broad money). - Reporting frequency and residency: - All ODCs report balance-sheet data monthly. - Reported data cover accounts of domestic headquarters and branches; overseas branches of domestic ODCs are nonresident and excluded, whereas branches of foreign banks in Korea are regarded as residents and included. ### 2.3 Classification/sectorization - Residency and sectorization: - Foreign positions are distinguished from domestic positions on the basis of residency; the definition of residency is broadly consistent with the MFSM and BPM5 and is provided in the BOK’s Manual on Monetary and Financial Statistics Reports (June 2009). - Sectorization of domestic positions in the DCS: central government, local government, social security organizations, other financial corporations, nonfinancial corporations, and households. Nonprofit institutions serving households are included in “households.” - Classification of financial instruments: - Classification largely follows MFSM recommendations and is more detailed than MFSM in source data. - Types of instruments included in M2 (except currency and demand deposits) are also classified by original maturity (up to two years and more than two years). - Source data lack sufficient detail for some instrument mapping (for example, no distinction whether money-market funds, trust accounts, and CMAs are transferable or nontransferable). - ECOS-disseminated monetary data provide the full range of instrument detail recommended by the MFSM, including positions in financial derivatives and advances on insurance premiums (insurance technical reserves); the BOK monthly statistical publications do not separately identify positions in financial derivatives and advances on insurance premiums. - For some major aggregates in monthly publications (net foreign assets, net claims on central government, claims on other financial corporations), certain financial instrument components are omitted; supplementary tables provide additional detail but reconciliation is complicated by heterogeneous groupings. - Treatment of repurchase agreements and derivatives: - Repurchase agreements are classified as collateralized loans; repurchase and reverse repurchase agreements are recorded as separate items in reported balance sheets. - Repurchase and reverse repurchase agreements with resident institutions are classified as deposits (original maturities up to two years) and loans, respectively, at the level of the DCS, in line with the MFSM. - Repurchase and reverse repurchase agreements with nonresidents are classified as foreign liabilities and foreign assets, respectively. *Source: _cr10229 - 0.2 Resources* ### 2.4 Basis for recording ### 2.4 Basis for recording ### 2.4.1 Market prices are used to value flows and stocks - All ODCs value financial assets and liabilities on their reported balance sheets in accordance with the Financial Accounting Standards (FAS) and Statements of Korean Accounting Standards (SKAS) issued by the Korea Accounting Standards Board (KASB). - These standards are broadly consistent with the International Financial Reporting Standards (IFRS). The KASB has developed the Korean International Accounting Standards that more closely follow the IFRS. Implementation by the ODCs of these new accounting standards is planned for 2011. - In general, ODCs use market prices to value flows and stocks. - Article 68 of the FAS requires that assets and liabilities denominated in foreign currencies be done using market exchange rates in effect at the balance-sheet date. The market exchange rate used is the previous business day’s trading volume weighted average rate. - SKAS No. 8 (Investments in Securities) requires: - Traded securities and available-for-sale securities: initially recognized at acquisition cost and then valued using market prices (consistent with MFSM methodology). - Held-to-maturity securities: recorded initially at acquisition cost, then valued at amortized cost using the effective interest rate method. - The BOK continues to value its financial assets and liabilities at book value, with assets and liabilities denominated in foreign currency, including positions with the IMF, revalued every six months (in June and December). - Gold is valued at its historical US dollar price, and the US dollar amount is revalued every six months like all the other foreign currency denominated assets. - In line with MFSM recommendations, loans are not adjusted for expected loan losses. Provisions for expected loan losses are recorded as separate entries and are included in Other liabilities. ### 2.4.2 Recording is done on an accrual basis - The FAS and the SKAS require interest to be accrued on a monthly basis, but do not require accrued interest to be incorporated into the underlying financial instrument. - Monetary statistics are produced on an accrual basis consistent with the MFSM. - Both the BOK and ODCs record their accounts on an accrual basis, and the accrued interest is presented together with its underlying instrument. - In accordance with the FAS and the SKAS, transactions in financial instruments are recorded on the transaction dates. ### 2.4.3 Grossing/netting procedures are broadly consistent with internationally accepted standards, guidelines, or good practices - Source data for monetary statistics are collected and compiled on a gross basis with no netting of claims of a particular transactor against the liabilities to that transactor or group of transactors. - Accounts in overdraft are recorded and reported as loans to the corresponding sector. - Loans are recorded on a gross basis at nominal values plus accrued interest, with provisions for loan losses reported as a separate item under Other liabilities. - In disseminated survey data: - Claims on the central government and net foreign assets are presented on a net basis as specified in the MFSM, to be useful for analysis. - The underlying data on a gross basis are also disseminated. - When producing the ODCS, the MFST applies consolidation procedures that differ from the MFSM approach: - The MFST consolidates the intrasectoral accounts of ODCs and consolidates the accounts of ODCs with the BOK. - The net consolidation adjustment is presented separately and includes the net claims of ODCs on the BOK. - As a result, ODCs reciprocal asset and liability positions are not identified in the ODCS. - Some ODCs in Korea operate “offshore” accounts: - These accounts are separate from institutions’ general banking activities and are used for raising funds and making loans exclusively with nonresidents. - “Offshore” accounts are managed and booked by the institutions’ head office located in Korea and are included on the balance sheet reported to the BOK, in line with the FAS. - The mission was informed that “offshore” accounts of ODCs are now included in the monetary statistics on a gross basis, following the recommendation of the 2001 Data ROSC mission. *Source: _cr10229 - 2.4 Basis for recording* ### 5.2 Metadata accessibility ### _cr10229 - 5.2 Metadata accessibility ### 5.2 Metadata accessibility — documentation and posting - A comprehensive methodological document: Explanation of Monetary and Financial Statistics (2008) is available in Korean on the BOK’s website and is updated regularly. - ECOS includes well-structured methodological descriptions in Korean and English. - Two summary documents on methodology are available (see 5.2.2). - Brief methodological notes provided in footnotes accompany all the tables, including explanations related to revisions. - Korea has posted its monetary metadata on the IMF’s DSBB since March 1998 (http://dsbb.imf.org/Applications/web/sddsctycatbaselist/?strcode=KOR&strcat=AAB00). - These metadata were last updated in July 2008 and certified in September 2008. - The SDDS monetary metadata should be reviewed and updated to reflect the most current compilation practices. ### 5.2.2 Levels of detail for intended audiences - The BOK provides different levels of metadata detail to meet various users’ needs: - Detailed methodological publication (Explanation of Monetary and Financial Statistics (2008)). - Guide to Economic Statistics Compiled by the BOK (available in Korean and English). - Easy Guide to Understanding Economic Indicators (in Korean). - These summary explanations cover all datasets compiled by the BOK, including monetary statistics. ### 5.3 Assistance to users — contact points and publication access - 5.3.1 Contact points for each subject field are publicized: - Contact information (e-mail addresses, and telephone and fax numbers) is widely available in ECOS and is included in the BOK’s Guide to Economic Statistics Compiled by the BOK. - Detailed contact-point information is also available in press releases. - Other user services (access to more detailed data, submission of data requests, queries and comments) are available to all users through ECOS. - 5.3.2 Catalogs of publications, documents, and other services: - A detailed list of all BOK statistical publications, including contact points and other relevant information, is available in ECOS and included in the Guide to Economic Statistics Compiled by the BOK. - Electronic versions of all these publications can be obtained free of charge from the BOK’s website, some available only in Korean. ### Data Quality Assessment Framework (July 2003): Summary of Results for Monetary Statistics (Compiling Agency: Bank of Korea) - Key to symbols: NA = Not Applicable; O = Practice Observed; LO = Practice Largely Observed; LNO = Practice Largely Not Observed; NO = Practice Not Observed; SDDS = Complies with SDDS Criteria - Selected element assessments and comments (as presented): - 0. Prerequisites of quality - 0.1 Legal and institutional environment — NA - 0.2 Resources — Assessment: O - 0.3 Relevance — Assessment: O - 0.4 Other quality management — Assessment: O - 1. Assurances of integrity - 1.1 Professionalism — Assessment: O - 1.2 Transparency — Assessment: O - 1.3 Ethical standards — Assessment: O - 2. Methodological soundness - 2.1 Concepts and definitions — Assessment: O - 2.2 Scope — Assessment: O - 2.3 Classification/sectorization — Assessment: O - 2.4 Basis for recording — Assessment: LO - Comment: The BOK values its financial assets and liabilities at book value and revalues foreign currency-denominated assets and liabilities twice yearly. Consolidation procedures applied for the ODCS deviate from MFSM. - 3. Accuracy and reliability - 3.1 Source data — Assessment: O - 3.2 Assessment of source data — Assessment: O - 3.3 Statistical techniques — Assessment: O - 3.4 Assessment and validation of intermediate data and statistical outputs — Assessment: O - 3.5 Revision studies — Assessment: O - 4. Serviceability - 4.1 Periodicity and timeliness — Assessment: LNO - Comment: Timeliness does not meet the SDDS requirement. - 4.2 Consistency — Assessment: LNO - Comment: No consistency cross-checking of interbank positions and the ODCs’ records against the BOK’s records. Bonds issued by the FESF are included in both monetary statistics and GFS. - 4.3 Revision policy and practice — Assessment: O - 5. Accessibility - 5.1 Data accessibility — Assessment: LNO - Comment: Access to the data posted on the BOK’s online database (ECOS) requires the installation of software that may create computer security concerns particularly for non-Korean users. - 5.2 Metadata accessibility — Assessment: O - 5.3 Assistance to users — Assessment: O ### Recommendations - High priority - In the future, along with the implementation of the GFSM 2001 methodology, consider recording all FESF flows and stocks in the central government accounts. Ensure consistent treatment of the FESF accounts in the monetary statistics, BOP, IIP, and GFS at all stages. - For monetary statistics purposes value all marketable financial instruments in the BOK balance sheet, including monetary gold, based on market prices, and revalue assets and liabilities denominated in foreign currencies at the end of every month. - Take necessary actions to be able to disseminate the DCS within one month after the end of the reference month, in order to withdraw the SDDS flexibility option. - In compiling the ODCS, do not include net claims on the BOK in the consolidation adjustment, but present claims on and liabilities to the BOK on the assets and liabilities side, respectively. - Introduce regular cross-checking procedures of positions between the BOK and the ODCs, as well as positions among the ODCs. - Other - Change the name of the “reserve money” to ”monetary base” and align the dissemination components of the central bank survey with those recommended in the MFSM, to explicitly identify the monetary base on the liabilities side and the corresponding components on the assets side. - Compile and disseminate the ODCs in the BOK’s statistical publications combining the accounts of the commercial and specialized banks and the nonbank depository corporations. - Include the entire balance sheet of those securities companies that issue liabilities included in the national definition of broad money in the DCS. - Group financial instruments included in monetary aggregates and in broad money into the following MFSM-defined instruments: Currency in circulation, Transferable deposits, Other deposits, and Securities other than shares. The more detailed instrument breakdown could continue to be presented under these instruments as sub-items. Classify all negotiable instruments included in monetary aggregates as Securities other than shares. - Carefully review and update the SDDS monetary metadata to reflect the most current compilation practice. ### Balance of Payments Statistics — institutional and operational arrangements (selected findings) - 0.1 Legal and institutional environment - The Bank of Korea (BOK) has responsibility for collecting and compiling balance of payments (BOP), international investment position (IIP), and external debt data. - The Bank of Korea Act (May 1950; last amendment in February 2008), in Article 86, assigns responsibility and provides authority to the BOK for collecting and compiling macroeconomic statistics, among those BOP statistics, and for conducting economic research. - Guidelines on Compilation and Dissemination of Statistics (September 1999) prepared by the BOK’s Economic Statistics Department (EDS) provides specific guidelines for compilation and dissemination. - The Foreign Exchange Transactions Act (December 1961; last amendment in January 2009) and bylaws provide authority to the BOK for collecting information on international transactions; Article 10-2 states the BOK should report the BOP to the Ministry of Strategy and Finance (MOSF) on a monthly basis. - Article 42 of the Banking Act (May 1950; last amendment in October 2009) requires commercial and specialized banks to submit balance-sheet accounts to the BOK. - The Statistics Act (January 1962; last amendment in April 2009) specifies all aspects of production of statistics in Korea; Article 15 describes conditions for designation of statistics-collecting agencies; Article 27 requires dissemination of macroeconomic statistics and corresponding metadata. - The compilation of BOP statistics is performed by the BOP Team of the ESD. - 0.1.2 Data sharing and coordination - Arrangements and procedures exist to facilitate data sharing and coordination between the BOK and data-producing agencies, guaranteeing timely provision of monthly data. - Data sources mentioned: Korea Customs Service (KCS), Korea Trade-Investment Promotion Agency (KOTRA), Export-Import Bank of Korea, Financial Supervisory Service (FSS), Korea International Cooperation Agency (KOICA). - Regular meetings are held with the KCS; occasional contacts with other producing agencies. - The Statistics Act, in Article 30, guarantees coordination and data sharing among statistics compiling agencies. - 0.1.3 Confidentiality - The Bank of Korea Act, Articles of Incorporation, Rules of Employment, Code of Conduct, and Code of Ethics and Morals include provisions prohibiting disclosure of confidential information and prescribe sanctions. - Guidelines for Compilation and Dissemination of Statistics of the ESD (September 1999) Article 2 requires protection of basic data and confidential information of data providers. - The Foreign Exchange Transactions Act includes penalties (imprisonment up to two years and/or a fine up to two hundred million Korean won) for unlawful disclosure by officials (Articles 22 and 28). - The Statistics Act (Article 33) guarantees legal protection of confidentiality and limits use to statistical purposes; Article 39 prescribes penalties (imprisonment up to three years or a fine of not more than 10 million Korean won) for misuse or disclosure. - Confidentiality is operationally enforced by restricting data access to BOK staff, restricting access to physical premises, and employing computing security systems such as passwords. - 0.1.4 Statistical reporting mandates and response encouragement - The BOK has legal authority to collect data required to compile BOP and IIP statistics (Bank of Korea Act, Article 87). - The BOK explains the importance of data for policy formulation to encourage response; the Act does not prescribe penalties on non-respondents. - The Foreign Exchange Transactions Act mandates provision of information on methods of payment (Article 16) and financial transactions between residents and nonresidents (Article 18); penalties for failure to submit or for false information include suspension of permission to perform foreign exchange activities and fines (Article 32: fine of not more than five million Korean won). - Under the Statistics Act, Articles 24–26 make reporting mandatory for various entities; Article 41 allows KOSTAT to impose fines for non-response; the BOK can ask KOSTAT to levy such penalties but has not needed to do so. - 0.2 Resources - Staffing and capacity - 12 staff members engaged in compilation of BOP and IIP data; most have many years of experience (some over 10 years). - Seven temporary workers assist in collecting data. - Seven staff maintain and improve the Foreign Exchange Information System (FEIS). - 15 staff check correctness of information and compile and analyze foreign exchange statistics. - Computing and facilities - The BOP Team is equipped with computers connected to main data sources and internet and has access to relevant software. - Physical facilities and financial resources appear adequate for current BOP and IIP collection, compilation, and dissemination. - Prospective migration - The BOK indicates it will have sufficient human, computing, physical, and financial resources to carry out the prospective migration to the Balance of Payments and International Investment Position Manual, Sixth edition (BPM6). - 0.2.2 Measures for efficient use of resources - The BOK assesses each team’s tasks annually and provides for an adequate number of personnel. - Staff performance assessment is conducted twice a year; outcomes determine one of the two salary bonuses. - Annual budgeting cycle: in October teams prepare budgets for the following year; monitored quarterly; program reviewed annually. - Reviews of work processes are carried out periodically; outside consultants are used on occasion (e.g., to develop statistical compilation systems). - 0.3 Relevance - KOSTAT regularly monitors users’ statistical needs, including BOP statistics, and conveys information to the BOK. - Monthly BOP figures are provided and explained to the press by the BOK. - When relevant changes occur in BOP statistics (methodological changes, reporting procedures, new data, revisions), the BOP Team informs users through ECOS and by press releases. - An e-mail address and phone number are provided on press releases to receive questions and monitor users’ needs. - An e-mail address and phone number are provided in all publications and in ECOS. - The BOK is receptive to suggestions and requests from users; this has resulted in publication of Easy Understanding of Economic Indicators (basic metadata and procedures). - The BOK regularly participates in statistical meetings and seminars organized by international and regional organizations and undertakes studies to identify new and emerging data requirements. *Source: _cr10229 - 5.2 Metadata accessibility (extracted content).* ### 0.4 Other quality management ### 0.4 Other quality management ### 0.4.1 Processes are in place to focus on quality - The BOK emphasizes quality as the cornerstone of statistical processes, with major efforts in: - improving collection systems; - coordination with compiling agencies; - aligning data compilation to international recommendations; - expanding and improving dissemination means. - The BOP Team recognizes trade-offs such as between timeliness and accuracy. - Legal and institutional mandates: - The Statistics Act, Article 11, mandates self-evaluations of the quality of the statistics every year. - Article 9 of the Act, and Article 7 of the Enforcement Decree of the Statistical Act (March 1962; last amendment in June 2008) require KOSTAT to perform a statistics quality evaluation every five years, including on BOP and IIP data. ### 0.4.2 Processes are in place to monitor the quality of the statistical program - Mechanisms used to ensure quality include: - user feedback to the BOP Team (example: Korea Tourism Organization on the travel account); - review and revision of preliminary data; - periodic visits to data providers; - periodic reviews to identify steps necessary to maintain quality; - assessments of data collection and compilation processes; - cross-checking data sources; - seeking expert guidance on quality and improvement strategies. - Dissemination and compilation practices are actively reviewed and improved. ### 0.4.3 Processes are in place to deal with quality considerations in planning the statistical program - Medium- and long-term plans to improve data quality include: - actions to improve institutional coverage; - additional training; - ongoing familiarization with the BPM6 analytical framework for compiling BOP and IIP data. - Plans incorporate: - feedback from users on quality standards and new/emerging data requirements; - considerations about resource availability, timeliness, accuracy, and reliability. ### 1. Assurances of integrity ### 1.1 Professionalism - Statistics are produced on an impartial basis: - BOP statistics are compiled impartially; no external pressure on the BOK regarding content or release. - Bank of Korea Act, Article 3, states the BOK is independent from the government in its operations. - Governance and staff practices: - The BOK’s governor is appointed for a term of four years and may be reappointed for a single consecutive term (Bank of Korea Act, Article 33). - Recruitment is based on aptitude and expertise via a competitive process; internal promotions based on skills, expertise, and performance. - A separate budget is available to the ESD for seminars and training. - Article 32 of the Code of Ethics and Morals requires the governor to provide training to employees at least once a year. - Staff encouraged to prepare and publish research papers and participate in seminars and conferences; ESD circulates internal research papers. - Choices of sources, techniques, and dissemination: - Decisions are taken solely on statistical considerations. - Data sources are selected based on usefulness and availability for compiling sound BOP and IIP. - Monthly release dates for the BOP are determined in advance each year and publicized on the BOK’s website; BOP figures are disseminated by press release. - Commenting on misuse: - BOP data dissemination includes regular press briefings and explanatory materials. - The BOP Team monitors press reports post-dissemination and releases additional explanatory materials as needed. ### 1.2 Transparency - Terms and conditions availability: - Terms and conditions for collection, compilation, and dissemination are posted on the BOK’s website. - The Bank of Korea Act, the Statistics Act, and the Foreign Exchange Transactions Act are available on the respective websites of the BOK, MOSF, and KOSTAT. - Detailed methodologies and techniques are presented on the BOK’s website and in statistical publications. - The ESD maintains an Information Center for user inquiries. - The ECOS posted on the BOK’s website covers 49 aspects of the BOP statistics, including content, history, raw data, compiling method, quality information, dissemination periodicity, dissemination schedule, dissemination method, confidentiality policy, update date, and contact persons. - Internal governmental access prior to release: - At the scheduled date and time, BOP data are disseminated to the press without embargo. - Identification of statistical products: - BOK publications and press releases clearly identify the BOK by name, logo, and insignia. - Advance notice is given to the public about major methodological or coverage changes that materially affect the BOP. - Advance notice of major changes: - New statistical initiatives were announced by press release on September 24, 2008. - Changes in compilation methodology are included in press releases, explained at press briefings, and noted by footnotes in BOK publications. - When BPM6 is implemented, the BOK will make a public announcement in advance as was done for BPM5. ### 1.3 Ethical standards - Behavioral guidelines: - The Rules of Employment, the Code of Conduct, and the Code of Ethics and Morals prescribe appropriate staff behavior. - The Code of Ethics and Morals is circulated monthly to BOK staff. ### 2. Methodological soundness ### 2.1 Concepts and definitions - Overall alignment: - Korean BOP concepts and definitions are broadly consistent with BPM5 recommendations. - Specific practices consistent with BPM5: - Current, capital, and financial accounts defined per BPM5; current account balance equals (with sign reversed) net capital and financial account balance. - Double-entry system applied; net residual embedded in errors and omissions. - Clear distinction between income and goods and services components. - Financial account records transactions in assets and liabilities separately. - Directional principle applied for recording foreign direct investment. - Data headings: - Current account: goods and services, income and current transfers. - Capital and financial accounts: capital transfers and other (includes acquisition/disposal of nonproduced nonfinancial assets) in the capital account; direct investment, portfolio investment, financial derivatives, and other investment in the financial account. - Change in reserve assets. - Net errors and omissions. - Historical and dissemination milestones: - BOK compiles BOP statistics in accordance with BPM5 since January 1998, and has revised previous data for 1980–97. - In March 2003, the BOK released its first annual IIP statistics, for 2001. - Since June 2007, the BOK has released quarterly BOP for time series starting in 2002. - Migration to BPM6: - Authorities prepared a plan to migrate to BPM6. - Migration process will start in 2010, and data compiled using this framework are scheduled to be disseminated in 2012. - Residency and institutional definitions: - Resident institutional units are defined in conformity with BPM5 concepts of economic territory and center of economic interest. - Definitions of resident and nonresident are established by the Foreign Exchange Transactions Act, bylaws, and the BOP and IIP Guide. - Resident definition includes: - any private person who has a domicile or residence in the Republic of Korea; - organizations, agencies, or equivalent entities located in the Republic of Korea, including branch offices or other offices of nonresidents; - any foreigner who has stayed in the Republic of Korea more than six months. - Nonresident definition includes: - any private person and any juristic person other than residents; - organizations, agencies, or equivalent entities located in foreign countries, including foreign branch offices or other offices of residents; - nationals of the Republic of Korea who work in business offices or other offices abroad; - nationals of the Republic of Korea who have stayed abroad for more than two years. - For BOP compilation, students who stayed in or out of Korea for more than two years will not change residency condition if they intend to return to their country of origin. - The center of economic interest of individuals of a household unit remains in the country in which the household is resident. - Direct investment recording: - Following international guidelines, the BOK adopted the 10-percent criterion for recording direct investment transactions since April 1999. ### 2.2 Scope - Coverage: - Korea’s BOP statistics cover all resident-nonresident transactions in principle and the whole economic territory of Korea. - Current partial coverage issues: - reinvested earnings (partial coverage, e.g., foreign branches of domestic banks); - foreign currency transactions of enterprises through accounts held abroad. - Plans and data systems: - Authorities plan to disseminate time series of reinvested earnings transactions from 2006 onwards with full coverage at the beginning of 2010. - FEIS already records information about accounts held abroad. - Deviations: - Some deviations from the BPM5 framework are identified in public sources. ### 2.3 Classification/sectorization - Consistency: - BOP statistics are mostly in line with BPM5 classification recommendations. - Institutional breakdown and special classifications: - Korean BOP aggregates for selected financial accounts use full coverage of institutions and institutional breakdown following international recommendations. - The Foreign Exchange Stabilization Fund is classified as part of monetary authorities. - Government guaranteed external debt transactions are attributed to the institutional sector of the borrower. - Public enterprises claims and liabilities are attributed to the private borrowing sector. - Borrowing and lending between direct investors and direct investment enterprises are classified under FDI, except for transactions between affiliated monetary financial institutions. - Long-term construction projects are classified under foreign direct investment. - Government entities’ transactions in goods and services abroad are classified under “government services not-included-elsewhere.” - Attribution of transactions in other investment component is made according to the original maturity of the financial instrument. - Departures from recommendations: - Reporting on foreign direct investment is based on the Foreign Transactions Act and bylaws, believed to cover mostly long-term direct investment in the form of equity and long-term loans. - FDI data do not include trade credits and short-term loans with affiliated entities; these are recorded as part of other investment. ### 2.4 Basis for recording - Valuation: - Transactions are valued at market prices. - Specific conversion practices: - Transactions reported in the FEIS are converted to US dollars at rates prevailing at the time of the transaction. - Transactions in goods are converted by the KCS using the average exchange rate of the previous week. - Monthly data on inward portfolio investment in the domestic stock and bond market (Korean won transactions) are converted to US dollars at daily exchange rates. - Financial flows of the banking sector and reserve transactions in foreign exchange are derived from stock data and adjusted to remove effects of exchange rate fluctuations. - Recording basis: - Merchandise trade statistics are recorded largely according to time of clearance by customs, except shipbuilding exports which are surveyed and recorded at time of change of ownership. - From 2010, a time series back to 1994 of shipbuilding exports on the basis of stage payments will be disseminated, to align with National Accounts treatment. - National Accounts started compiling these data on the basis of stage payments since May 2009. - Portfolio investment and other investment are recorded at the time of change of ownership. - The BOK’s BOP and IIP Guide notes all income, including interest and dividend income, is recorded on a payment basis, which is not in conformity with BPM5; for significant transactions in this category the BOP Team makes adjustments to an accrual basis using surveys. - Grossing/netting: - Gross/netting procedures are broadly consistent with BPM5: - Current and capital account transactions recorded on a gross basis. - Financial account transactions recorded on a net basis, separately for individual asset and liability components. - The FEIS permits some netting of transactions; the BOP Team makes adjustments for selected transactions to record them on a gross basis. *Source: _cr10229 - 0.4 Other quality management* ### 3.1 Source data ### 3.1 Source data ### Primary and secondary sources - Primary sources for monthly balance of payments (BOP) statistics: - Trade statistics compiled by the KCS. - FEIS data collected by the BOK’s International Department. - Secondary sources supplementing primary data: - Administrative data on foreign direct investment compiled by the Ministry of Knowledge Economy (MKE). - Data on nonresident sales and purchases of domestic securities compiled by the FSS. - BOK survey on portfolio investment abroad. - Information on international aid from the Korea International Cooperation Agency (KOICA). - Surveys in transportation, communication, construction services, and credit card companies. - Coverage notes: - There is complete coverage of financial institutions in the FEIS. - Coverage of secondary data sources is close to comprehensive. - There is comprehensive coverage of administered surveys. ### FEIS characteristics and data sharing - FEIS overview: - Electronic reporting system recording and classifying all international transactions associated with flows of foreign exchange that result in changes to foreign exchange banks’ foreign currency balance sheets. - Developed by the BOK for domestic financial institutions to transmit information on international transactions and positions. - Reporting thresholds under the Foreign Exchange Transactions Act: - Transactions below US$ 10,000 for payments and US$ 20,000 for receipts do not require detailed reporting. - FEIS content: - Comprises both flows and some stocks statistics for financial institutions: the BOK, deposit money banks, merchant banks, and development institutions. - Collects some data on external debt of deposit money banks. - Data sharing and validation: - Information collected through the FEIS is shared with MOSF, KCS, National Tax Service, and Korean Financial Intelligence Unit. - Entities such as securities and insurance companies also report to the FEIS. - The BOK regularly performs auditing procedures on FEIS data; users cross-check and validate FEIS records. - Netting and grossing: - The reporting system permits netting; BOP staff adjust data to a gross basis where they can. ### Goods, services, and related adjustments - Goods: - KCS goods data are primary for exports and imports; KCS also provides data for smuggled goods. - Customs data exclude bunker fuel sales to carriers. - Goods procured in ports: exports from Korean National Oil Corporation special survey; imports from FEIS for domestic carriers. - Migrants’ effects recorded in customs documents for both exports and imports. - Services: - FEIS is primary for services data. - Transportation: surveys of resident airline and shipping companies are primary; some items derived from FEIS. - Travel credits and debits: obtained from FEIS and supplemented with domestic airlines data and credit card companies; credit-card electronic commerce transactions from KCS are excluded from travel and included in goods. - Communication services: obtained from FEIS and supplemented by direct survey of telecommunication companies. - Construction: recorded in FEIS; BOP Team methodology reallocates some construction abroad to direct investment. - Fees/commissions on nonresident securities: estimated using FSS data on value of securities trading by nonresidents. - Merchanting: obtained using surveys. - Adjustments to goods and services for coverage, classification, and timing: - Timing adjustments for petroleum imports delivered outside customs boundary and for shipbuilding exports. - Conversion of imports recorded on a c.i.f basis to a c.i.f basis through a factor determined using KOSTAT, Ministry of Land, Transport and Maritime Affairs, airline companies, and Korea Airports Corporation. - Freight and insurance charges computed using monthly survey earnings of domestic shipping lines and insurers and import volumes. - Returned goods and smuggled exports/imports coverage adjustments included. - Communication and travel data adjusted to record on a gross basis using BOP Team surveys. - Shipping companies and national airlines surveyed for freight receipts and operational expenses abroad to record transportation on a gross basis. - Fees and commissions computed by applying commission rates to FSS-compiled trading values. ### Income, transfers, capital, and financial instruments - Income: - Main source: FEIS. - Investment income receipts and payments recorded net of withholding taxes deducted at source. - Financial lease payments: information from monthly survey of some airlines and eight shipping companies. - Adjustments made to cover interest and dividend receipts in residents’ accounts abroad. - Reinvested earnings from surveys of financial and nonfinancial enterprises. - Current transfers: - Mainly FEIS; Korea’s foreign aid provision in kind obtained from KOICA. - Capital account: - Sources: FEIS and KOICA. - Migrants’ transfers, including migrants’ effects, recorded in capital account. - Acquisition/disposal of nonproduced, nonfinancial assets: FEIS. - Migrants’ assets in kind: KCS. - Direct investment: - Outward direct investment: FEIS. - Inward direct investment: administrative information from MKE. - MKE reports include equity, loan transactions, and imported goods forming part of direct investor’s investment. - BOP Team’s survey complements these sources. - Foreign direct investment in kind: KOTRA. - Reinvested earnings of residents’ direct investment overseas: Export-Import Bank of Korea. - Portfolio investment: - Portfolio investment abroad: BOP Team’s survey. - Foreign portfolio investment in Korea: partly from FSS and partly from FEIS. - Securities transactions data exclude fees and commissions. - Nonresidents’ transactions in domestic stock-and-bond markets: FSS. - Other investment: - FEIS mainly for short-term trade credit and liability side. - Surveys of large shipbuilding enterprises for long-term trade credit. - Loan assets sources: - Monetary authorities: balance-sheet information. - Central government: reported by Export-Import Bank of Korea (government’s agent). - Liability side: Fund credit and loans data from International Department. - External loans of general government, banks, and other sectors from FEIS. - Flows on foreign currency deposits and assets abroad computed from changes in balance-sheet positions. - Bank transactions mostly derived from position data submitted by resident banks to the BOK; BOP Team’s survey also used. - Financial derivatives: - Sources: FEIS and BOP Team’s survey. - BOK developing a system to collect flows and positions of financial derivatives for 2010. - Reserve assets: - Data obtained from the BOK’s International Department. - Positions obtained and transactions derived from compiling differences in monthly positions in original currencies. ### FEIS limitations and non-cash transactions - No systematic reporting mechanism for non-cash transactions in BOP statistics, such as share exchanges, stock dividends, debt to equity conversions, and arrears. Some information is captured for debt to equity conversions. ### Timeliness of source data - Monthly merchandise trade statistics available within three weeks after the reference month. - FEIS information available within three weeks after the reference month. - Response to monthly surveys requested within three weeks after the reference month; BOP Team conducts follow-ups to ensure timely receipt. - Summary report of transactions and positions submitted to ESD every 10 days; a detailed one every month. --- ### 3.2 Assessment of source data ### Routine assessment and monitoring - BOP Team regularly assesses source data and makes supplementary surveys when necessary. - Sample surveys are conducted; in the survey of outward portfolio investment transactions, respondents must reconcile flows contributing to net change in positions between two reporting periods. - High-value or unusual transactions identified in primary or secondary sources are queried with individuals or responsible agencies. - Source data analyzed for underreporting/misreporting, temporal consistency, consistency with related data sources, and in the context of revisions. - All material changes from up-to-date data are incorporated into the BOP statement according to a revision cycle. - Accuracy of public sector external debt data, international trade, and other supplementary sources is routinely assessed. - No formal FEIS requirement for reporting institutions to reconcile changes in foreign exchange positions with reported data. - BOP Team accesses FEIS data by direct access and aggregated formats; International Department provides detailed information if needed. ### 3.3 Statistical techniques ### Compilation and estimation methods - FEIS compiling procedures minimize processing errors via computer programs; adjustments to individual reports are made only when confirmed with reporters. - Sound estimation techniques employed to adjust data for missing observations. - For certain financial items (e.g., deposits), stock data are used to derive flow estimates. - Flow data used to update benchmark data in compiling monthly external debt statistics. ### Specific adjustment procedures - Goods adjustments: - Timing adjustments for petroleum imports and shipbuilding exports. - Conversion factors applied for import valuation using KOSTAT, Ministry of Land, Transport and Maritime Affairs, airline companies, Korea Airports Corporation. - Freight and insurance deductions computed using monthly survey data and import volumes. - Returned goods and smuggling coverage adjustments applied. - Services adjustments: - BOP Team survey adjustments to record transportation, insurance, telecommunications, travel, and construction on a gross basis. - Electronic commerce credit card transactions from KCS moved from travel to goods. - Fees and commissions on nonresident securities computed by applying commission rates to FSS trading value. - Direct investment adjustments: - Methodology developed to record construction activity abroad under direct investment when contracts extend beyond one year; large construction companies surveyed. - Other investment adjustments: - For items using end-period data, changes between periods are taken and adjusted for exchange rate changes. - Currency composition estimated by the currency composition ratio at end of previous quarter. - Nonresidents’ Korean won deposits data obtained from Monetary and Financial Statistics Team and added to “currency and deposits”. - Nonresidents’ stock exchange transactions obtained from FSS in Korean won; BOP Team applies daily exchange rates to translate to US dollars. - For financial leases, payments allocated between interest and principal. - Loan assets in FEIS recorded net of loan loss provisions; BOP Team collects loan loss provisions via monthly survey and adds them back for measuring loan transactions not influenced by loss provisions. ### 3.4 Assessment and validation of intermediate data and outputs ### Validation against other information - Survey data checked against FEIS. - Travel estimates validated using Korean Immigration Service records and Korea Tourism Organization traveler counts, and checked against travel receipts and payments. - Transportation receipts checked with international freight indexes and resident shipping companies’ volumes. - Inward direct investment FEIS data checked against MKE; outward direct investment checked against Export-Import Bank of Korea. - Direct investment validated using cross-checks of flows and stocks. - Loan transaction data cross-checked against balance-sheet information for banks and development institutions. - BOP statistics checked against foreign exchange receipts and payments statistics compiled in BOK’s International Department. ### Investigation of discrepancies - Merchandise trade and associated FEIS information reviewed. - Direct investment and investment income assessed against international investment position stock data. - Portfolio investment data from FSS assessed against FEIS. - Financial derivatives data assessed against FEIS. - BOP Team monitors statistical discrepancies frequently; when large, the BOP Team investigates and prepares a report with actions to reduce or eliminate discrepancies. ### 3.5 Revision studies - Analysis of revisions is undertaken to assess direction and magnitude of revisions between preliminary and final data. - When introducing a new compilation method, a pilot compilation is performed and applied to preceding and subsequent periods before final acceptance. ### 4.1 Periodicity and timeliness ### Periodicity - BOK disseminates monthly BOP statistics, exceeding the quarterly periodicity prescribed by the SDDS. ### Timeliness - BOK disseminates preliminary monthly BOP statistics no later than one month after the end of the reference month, exceeding the timeliness of one quarter prescribed by the SDDS. *Source: _cr10229 - 3.1 Source data* ### 4.2 Consistency ### 4.2 Consistency ### 4.2.1 Statistics are consistent within the dataset - Korea’s quarterly and annual BOP data are derived by aggregating monthly data; concepts, definitions, and classifications are identical across periodicities. - The net errors and omissions item has shown stability and has been relatively small over time, with the signs having changed. - Financial transactions are reconcilable against changes in the IIP; a reconciliation table is disseminated regularly. - The BOK prepares a table in the data press release that links BOP and IIP data. ### 4.2.2 Statistics are consistent or reconcilable over a reasonable period of time - Consistent time series are available for BOP statistics. - When the BOK changes methodology or techniques, historical time series are reconstructed as far back as reasonably possible. - When BOP statistics were aligned to the BPM5 framework at the beginning of 1998, the monthly data were revised back to 1980 and made available in a special publication and on the BOK’s website. - Consistent historical data (since 2003) are published in the Monthly Balance of Payments of the BOK; additional BOP time series are on the BOK’s website. - The BOK annotates and publishes explanations when events affect time series. ### 4.2.3 Statistics are consistent or reconcilable with other data sources and frameworks - Korea’s BOP data are broadly consistent with national accounts, external debt, IIP, international merchandise trade, and monetary and financial statistics; these datasets are produced by the BOK and benefit from internal consultations and reviews. - Specific reconciliations/consistencies: - The BOP data on trade are reconciled with the international merchandise trade data produced by the Foreign Exchange Analysis Team. - The BOP data are fully reconciled with national accounts statistics. - The BOP transactions are consistent with the IIP data to the extent that several data flows and position data series are obtained by the BOP Team from the same data sources. - BOP components comprising external debt data are consistent, in general terms, with correspondent external debt position data (a subset of IIP liabilities data). - The BOP data have no formal reconciliation with government finance statistics (GFS), although they use the same data source; key variables that could be reconciled include external current and capital transfers, and some general government transactions of portfolio investment and other investment accounts (external financing) against corresponding categories in GFS. --- ### 4.3 Revision policy and practice ### 4.3.1 Revisions follow a regular and transparent schedule - When a change of over US$30 million a month is made in KCS (customs clearance basis) statistics, and when monthly foreign exchange receipts and payments are revised and finalized, the preliminary statistics for that month are revised and released together with the preliminary statistics for the following month. - After the first revision, no further revisions are made until the final revision in November or December of the next year. - Monthly and annual BOP statistics of the previous year are finally revised and released in November or December, based on finally revised import-export statistics of KCS, foreign exchange receipts and payments, and the annual final raw data of corporations. - When preliminary data are finalized, they are made public by press release; reasons for revisions (updated source data, revisions in related datasets) are described. ### 4.3.2 Preliminary and/or revised data are clearly identified - Preliminary and final data are clearly noted in publications and disseminated with the same detail and through the same media. ### 4.3.3 Studies and analyses of revisions are made public - When final BOP figures are released, factors contributing to differences from preliminary statistics are analyzed and causes of revisions are explained in the press release. --- ### 5 Accessibility ### 5.1 Data accessibility — presentation and dissemination - BOP statistics are disseminated according to BPM5 standard components, with time series to permit identification and comparison of major flow aggregates. - The Monthly BOP (e-book), provided on the BOK website about two weeks after the press release, presents statistics to facilitate interpretation and comparisons of longer time series. - The e-book contains six years of annual data and monthly data for 23 months. - Longer time series, back to 1980, are available on the BOK’s website. - The BOK provides bilateral BOP statistics (current account and capital and financial account) and seasonally adjusted current account statistics. - Each year, the March and September issues of the Monthly Bulletin provide data analysis. - The press release contains a short analysis of current-period developments. ### 5.1.2 Dissemination media and format — ECOS and accessibility issues - BOP data are first published in a press release and made available on the BOK’s Economic Statistics System website (ECOS); an abbreviated English version of the press release is made available simultaneously. - Data are later published in the Monthly BOP (e-book) and the Monthly Bulletin; data back to 1980 are available on ECOS for most series. - ECOS requires an “Active X” component (locally-provided software) intended to increase access speed; this component may not cross firewalls or may trigger security warnings, restricting access for international users without direct BOK access. - The BOK is aware of the issue and is working to address it; the BOK estimates the problem will be resolved by 2012 with state-of-the-art browser-free access. - In the interim, international users without direct access are restricted to print publications or commercial vendors. ### 5.1.3 Statistics are released on a preannounced schedule - BOP statistics are released according to an advance release calendar giving approximate release dates one year in advance (no-later-than basis) and the precise release date one week ahead. - A notice in the Monthly Bulletin informs users that the advance release calendar can be found on the BOK’s website and the IMF’s website. ### 5.1.4 Simultaneous release - Data are released simultaneously to all users at 8:00 a.m. on the day of release via the BOK’s website and press release. ### 5.1.5 Non-routinely disseminated statistics - Non-published, non-confidential, disaggregated and free-of-charge data are made available upon request; availability and procedures are made known. ### 5.2 Metadata accessibility - Extensive documentation (about 50 items) on BOP methodology, data sources, and statistical techniques is available on the BOK’s website. - Additional information is disseminated in the BOP and IIP Guide and Easily Understanding Economic Indicators. - Detailed metadata are posted on the IMF’s DSBB. - Metadata include concepts, data sources, definitions, classifications, compilation methods, and bridge tables showing links between source data and the BOP. - Problems of access to metadata due to the “Active X” issue are noted. ### 5.2.2 Levels of detail - The BOP metadata provide enough detail for the intended audience. ### 5.3 Assistance to users - BOK staff are available to answer queries by telephone, fax, internet (ECOS), and e-mail; contact points (name, position, phone, fax, address, e-mail) are listed on the BOK’s website and on press releases. - A list of statistical products is presented on the BOK’s website. - The BOK does not charge for using statistical services on its website, but the Monthly Bulletin is available for a fee; catalogs of publications (including the Monetary Bulletin) are provided on the BOK’s website for purchase. --- ### Data Quality Assessment Framework (July 2003): Summary findings and recommendations ### DQAF summary observations (selected) - Element assessments indicate practices observed or largely observed across many elements; specific noted issues include: - 2.2 Scope: Only partial data are compiled on foreign currency transactions of enterprises through accounts held abroad and on reinvested earnings. - 2.3 Classification/sectorization: Departures arise mainly in classification of trade credits and short-term loans with affiliated entities (recorded under other investment instead of direct investment). - 2.4 Basis for recording: Income transactions are recorded on a payment basis; they should be recorded on an accrual basis. - 5.1 Data accessibility: Access to ECOS requires installation of software that may cause computer security concerns, particularly for non-Korean users. ### Recommendations (as listed) - Expand transactions coverage by including all transactions on reinvested earnings and foreign currency transactions of enterprises through accounts held abroad. - Improve classification of direct investment transactions by reclassifying data on trade credits and short-term loans of affiliated enterprises. - Align the basis of recording of income transactions to that recommended by the international standards. - Maintain coordination across agencies to ensure data consistency during the migration process towards the BPM6 framework. - In the future, along with the GFSM 2001 methodology, consider recording all FESF flows and stocks in the central government accounts; ensure consistent treatment of the FESF accounts in monetary statistics, BOP, IIP, and GFS at all stages. --- ### Appendix I — Users’ views (summary) - An informal user survey was conducted with BOK assistance; forty responses were received and four users met individually. - Overall: - Users were satisfied with coverage, periodicity, timeliness, and level of detail; many found methodology clear and detailed. - Three quarters of respondents accessed official statistics through official websites. - One respondent thought there was bias in disseminated data; another suggested Korean statistics quality is likely higher elsewhere because survey response rates are well in excess of 90 percent. - Government Finance Statistics (GFS) received less favorable views: - Less than half of respondents considered GFS statistics disseminated with appropriate timeliness. - Only a third were aware of the advance release calendar and about half felt government data were released on announced dates. - Around half considered they could easily access official statistics; a third considered the quality of GFS statistics “better” than those of other countries, lower than for other data categories (69 percent to 100 percent). - User proposals included requests for greater explanations, more complete English-language websites, and a seasonally adjusted CPI. - KOSTAT responses noted: - A study found seasonally adjusted CPI did not provide useful information; paragraph 13.14 of the Consumer Price Index Manual: Theory and Practice (200) states “Consumer price indices are, however, not usually seasonally adjusted, although they sometimes are.” - CPI is released with detailed information: following COICOP, there are 19 item indices for housing and 23 item indices for education, including specific items for housing maintenance and private schools. *Source: _cr10229 - 4.2 Consistency* ### 0.2 Resources—Resources are ### 0.2 Resources—Resources are ### 0.2 Resources: staffing, facilities, computing, financing - 0.2.1 Staff, facilities, computing resources, and financing are commensurate with statistical programs. - 0.2.2 Measures to ensure efficient use of resources are implemented. ### 0.3 Relevance - 0.3 Relevance—Statistics cover relevant information on the subject field. - 0.3.1 The relevance and practical utility of existing statistics in meeting users’ needs are monitored. ### 0.4 Other quality management - 0.4 Other quality management—Quality is a cornerstone of statistical work. - 0.4.1 Processes are in place to focus on quality. - 0.4.2 Processes are in place to monitor the quality of the statistical program. - 0.4.3 Processes are in place to deal with quality considerations in planning the statistical program. ### 1. Assurances of integrity - Principle: The principle of objectivity in the collection, processing, and dissemination of statistics is firmly adhered to. - 1.1 Professionalism—Statistical policies and practices are guided by professional principles. - 1.1.1 Statistics are produced on an impartial basis. - 1.1.2 Choices of sources and statistical techniques, as well as decisions about dissemination, are informed solely by statistical considerations. - 1.1.3 The appropriate statistical entity is entitled to comment on erroneous interpretation and misuse of statistics. - 1.2 Transparency—Statistical policies and practices are transparent. - 1.2.1 The terms and conditions under which statistics are collected, processed, and disseminated are available to the public. - 1.2.2 Internal governmental access to statistics prior to their release is publicly identified. - 1.2.3 Products of statistical agencies/units are clearly identified as such. - 1.2.4 Advance notice is given of major changes in methodology, source data, and statistical techniques. - 1.3 Ethical standards—Policies and practices are guided by ethical standards. - 1.3.1 Guidelines for staff behavior are in place and are well known to the staff. ### 2. Methodological soundness - 2. Methodological soundness—The methodological basis for the statistics follows internationally accepted standards, guidelines, or good practices. - 2.1 Concepts and definitions - 2.1.1 The overall structure in terms of concepts and definitions follows internationally accepted standards, guidelines, or good practices. - 2.2 Scope - 2.2.1 The scope is broadly consistent with internationally accepted standards, guidelines, or good practices. - 2.3 Classification/sectorization - 2.3.1 Classification/sectorization systems used are broadly consistent with internationally accepted standards, guidelines, or good practices. - 2.4 Basis for recording - 2.4.1 Market prices are used to value flows and stocks. - 2.4.2 Recording is done on an accrual basis. - 2.4.3 Grossing/netting procedures are broadly consistent with internationally accepted standards, guidelines, or good practices. ### 3. Accuracy and reliability - 3. Accuracy and reliability—Source data and statistical techniques are sound and statistical outputs sufficiently portray reality. - 3.1 Source data - 3.1.1 Source data are obtained from comprehensive data collection programs that take into account country-specific conditions. - 3.1.2 Source data reasonably approximate the definitions, scope, classifications, valuation, and time of recording required. - 3.1.3 Source data are timely. - 3.2 Assessment of source data - 3.2.1 Source data—including censuses, sample surveys, and administrative records—are routinely assessed, e.g., for coverage, sample error, response error, and nonsampling error; the results of the assessments are monitored and made available to guide statistical processes. - 3.3 Statistical techniques - 3.3.1 Data compilation employs sound statistical techniques to deal with data sources. - 3.3.2 Other statistical procedures (e.g., data adjustments and transformations, and statistical analysis) employ sound statistical techniques. - 3.4 Assessment and validation of intermediate data and statistical outputs - 3.4.1 Intermediate results are validated against other information, where applicable. - 3.4.2 Statistical discrepancies in intermediate data are assessed and investigated. - 3.4.3 Statistical discrepancies and other potential indicators or problems in statistical outputs are investigated. - 3.5 Revision studies - 3.5.1 Studies and analyses of revisions are carried out routinely and used internally to inform statistical processes (see also 4.3.3). ### 4. Serviceability - 4. Serviceability—Statistics, with adequate periodicity and timeliness, are consistent and follow a predictable revisions policy. - 4.1 Periodicity and timeliness - 4.1.1 Periodicity follows dissemination standards. - 4.1.2 Timeliness follows dissemination standards. - 4.2 Consistency - 4.2.1 Statistics are consistent within the dataset. - 4.2.2 Statistics are consistent or reconcilable over a reasonable period of time. - 4.2.3 Statistics are consistent or reconcilable with those obtained through other data sources and/or statistical frameworks. - 4.3 Revision policy and practice - 4.3.1 Revisions follow a regular and transparent schedule. - 4.3.2 Preliminary and/or revised data are clearly identified. - 4.3.3 Studies and analyses of revisions are made public (see also 3.5.1). ### 5. Accessibility - 5. Accessibility—Data and metadata are easily available and assistance to users is adequate. - 5.1 Data accessibility - 5.1.1 Statistics are presented in a way that facilitates proper interpretation and meaningful comparisons (layout and clarity of text, tables, and charts). - 5.1.2 Dissemination media and format are adequate. - 5.1.3 Statistics are released on a preannounced schedule. - 5.1.4 Statistics are made available to all users at the same time. - 5.1.5 Statistics not routinely disseminated are made available upon request. - 5.2 Metadata accessibility - 5.2.1 Documentation on concepts, scope, classifications, basis of recording, data sources, and statistical techniques is available, and differences from internationally accepted standards, guidelines, or good practices are annotated. - 5.2.2 Levels of detail are adapted to the needs of the intended audience. - 5.3 Assistance to users - 5.3.1 Contact points for each subject field are publicized. - 5.3.2 Catalogs of publications, documents, and other services, including information on any charges, are widely available. ### Appendix IV — Results of Korea’s User Survey [December 2009] - Total Number of Responses: 39 - Question 19: Which official statistics do you use regularly? - a. National accounts (NA): 28 - b. Prices: 22 - c. Government finance statistics (GFS): 13 - d. Monetary statistics: 29 - e. Balance of payments (BOP): 26 - f. Other: - Production indices: 20 - Labor market: 14 - Merchandise trade: 11 - International reserves and foreign currency liquidity: 27 - External debt: 25 - International investment position: 17 - Other: 2 - Question 20: Where do you obtain the official statistics? - a. Official press releases and publications on macroeconomic statistics: 32 - b. Private sector summaries and analyses: 6 - c. Official policy papers: 14 - d. Publications from international organizations about the country: 17 - e. Other sources: 3 - Question 21: Do you refer to official descriptions of the sources and methods that were used to compile the official statistics? - Yes: 34 - No: 3 - Question 22: For what purposes do you use the official statistics? - a. Analysis of current developments for short-term decision making: 19 - b. Analysis of trends for longer-term policy formulation: 23 - c. Econometric model building and forecasting: 15 - d. Economic research: 26 - e. Comparison with economic developments in other countries: 15 - f. General economic background: 19 - g. Other: 2 - Question 23–27: Coverage, periodicity, timeliness, dissemination, accessibility, and overall assessment (selected responses by domain) - 5.1 In general, are you satisfied with the coverage of official statistics? - NA: Yes 33, No 2 - Prices: Yes 32, No 2 - GFS: Yes 18, No 4 - Monetary: Yes 34, No 2 - BOP: Yes 39, No 0 - Other: Yes 6, No 0 - 5.2 In general, are you satisfied with the official statistics in terms of their level of detail? - NA: Yes 30, No 5 - Prices: Yes 29, No 4 - GFS: Yes 19, No 5 - Monetary: Yes 33, No 3 - BOP: Yes 34, No 3 - Other: Yes 4, No 0 - 6.1 Are you satisfied with the frequency of compilation of the official statistics? - NA: Yes 32, No 2 - Prices: Yes 31, No 2 - GFS: Yes 22, No 3 - Monetary: Yes 34, No 2 - BOP: Yes 38, No 1 - Other: Yes 6, No 0 - 6.2 Do you consider that the official statistics are disseminated with the appropriate timeliness? - NA: Yes 28, No 6 - Prices: Yes 28, No 2 - GFS: Yes 17, No 6 - Monetary: Yes 28, No 6 - BOP: Yes 34, No 3 - Other: Yes 7, No 0 - 7.1 Do you know if there is a publicly disseminated calendar that announces release dates? - NA: Yes 22, No 11 - Prices: Yes 24, No 11 - GFS: Yes 12, No 12 - Monetary: Yes 22, No 14 - BOP: Yes 24, No 12 - Other: Yes 5, No 0 - 7.2 If there is a calendar, are the statistics released on the dates announced? - NA: Yes 28, No 1 - Prices: Yes 27, No 0 - GFS: Yes 17, No 0 - Monetary: Yes 28, No 0 - BOP: Yes 32, No 2 - Other: Yes 6, No 0 - 7.3 Is there enough information about revisions to official statistics? - NA: Yes 26, No 7 - Prices: Yes 26, No 5 - GFS: Yes 15, No 5 - Monetary: Yes 30, No 4 - BOP: Yes 31, No 7 - Other: Yes 3, No 1 - 8.1 Can you easily access the official statistics? - NA: Yes 35, No 0 - Prices: Yes 34, No 0 - GFS: Yes 19, No 3 - Monetary: Yes 36, No 0 - BOP: Yes 38, No 1 - Other: Yes 3, No 0 - 8.2 Can you easily access information pertaining to official statistics (explanatory notes, methodology, concepts)? - NA: Yes 29, No 6 - Prices: Yes 31, No 4 - GFS: Yes 17, No 5 - Monetary: Yes 28, No 8 - BOP: Yes 30, No 9 - Other: Yes 3, No 0 - 8.3 Is the above information on methodology sufficiently clear and at an adequate level of detail to be useful to you? - Yes 28, No 5 - 8.4 How do you get access to official statistics? - Official releases: 17 - Hard copy publications: 11 - Data specifically requested: 5 - Official website: 28 - Other: 5 - E-mail requests: 5 - 9.1 Is the underlying methodology of official statistics sound and appropriate? - NA: Yes 33, No 0 - Prices: Yes 32, No 2 - GFS: Yes 18, No 3 - Monetary: Yes 35, No 0 - BOP: Yes 38, No 0 - Other: Yes 3, No 0 - 9.2 Are the official statistics unbiased and accurate? - NA: Yes 33, No 1 - Prices: Yes 34, No 1 - GFS: Yes 20, No 3 - Monetary: Yes 34, No 1 - BOP: Yes 36, No 1 - Other: Yes 4, No 0 - 9.3 How do you compare the quality of the country’s official statistics with others in the region? - NA: Better 25, Same 6 - Prices: Better 24, Same 8 - GFS: Better 10, Same 11 - Monetary: Better 25, Same 8 - BOP: Better 26, Same 8 - Other: Better 4, Same 0 - 9.4 How do you assess the overall quality of the official statistics? (1 rated as poor and 5 as excellent) - NA: 4.2 - Prices: 4.2 - GFS: 4.0 - Monetary: 4.2 - BOP: 4.1 - Other: 4.8 *Source: _cr10229 - 0.2 Resources—Resources are* --- _Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2010/_cr10229.pdf_