Reuters May ‘production decrease’ Korean media ‘production index increase’ Choo Kyung-ho May low point ‘failure’
Regarding the announcement of industrial activity statistics in May, Reuters reported a “decline” in factory production in May, while Korean media reported all three indicators of production and consumption as “increases,” using the “production index.”
The stock market-led economic stimulus by “passing the bottom in May,” coordinated by Deputy Prime Minister Choo Kyung-ho and securities firms, is showing failure.
Foreigners net sold a total of 287.1 billion won in the stock market until the 26th of this month, and the KOSDAQ market led the rise in the exchange rate by net selling stocks worth 209.4 billion won. Foreign investors net bought 2,557.6 billion won on the KOSPI in April, soared to 4,639.2 billion won in net buying in May, and sold more than 1 trillion won from net selling for 5 consecutive trading days from the 19th to the 23rd in June.
Regarding the May statistics, Kim Bo-kyung, director of economic trends and statistics at the National Statistical Office, said, "As semiconductor shipments increased a lot, the inventory ratio itself fell." It seems that the effect of the production cut will come out after a little more observation," he said on the 30th, denying the 'low point in May'.
"Factory production fell 7.3 percent on an annual basis," Reuters said of South Korea's May release. While production increased by 8.7% and semiconductors by 4.4%, communications equipment fell by 16.9%,” it reported on the 30th.
The Bank of Korea announced on the 28th that the 'terms of trade index for May' was 83.29 in May, a 2.8% decrease from a year ago, which was worse, and it is the 26th consecutive month of decline.
The media reported this on the 28th, saying, “It was analyzed that the terms of trade are likely to stop deteriorating and improve in May.”
Korea's May indicator changed its interpretation to the government's intended 'index', and Reuters said, "All industrial production indices, including both manufacturing and service industries, rose 3.1% in May compared to the previous month, making up for losses." made this after data showing the economy was on a recovery path after some adjustments last month, adding that while downward pressures had eased, risks remained.”
Deputy Prime Minister Choo Kyung-ho previously reported to the National Assembly a “rebound in September-October” on the “low in May,” and reports from securities firms followed up on the “low in May.”
Regarding the May statistics, Yonhap News said, “It is the first time in three months since February that all three indicators of industrial activity have increased. However, the rate of increase is weak to see that the economy has revived in earnest,” he said. It was the largest increase in 14 months since March of last year,” it reported on the 30th.
The National Statistical Office's index showed a 0.1% decrease in service industry production in May compared to the previous month.
On the other hand, the retail sales index (seasonally adjusted) was 105.2 in May, up 0.4% from April, so it seems that the Korean media negotiated with government officials to report the “indices all rise.”