Korea Leading Economic Indicators and Related Composite Indexes for June

                                    2008



    NEW YORK, Aug. 6 /EMWNews/ -- The Conference Board announced today

that both the leading and coincident indexes for Korea declined 1.0 percent

in June.



    -- The leading index declined sharply again in June, and has been on a

downward trend since the last quarter of 2007. Stock prices, the government

bond yield (inverted), and real exports all made large negative

contributions to the index this month. With June's decline, the six-month

growth rate of the leading index continued to slow, to -2.8 percent (about

a -5.4 percent annual rate) from December to June, down sharply from the

most recent peak of a 10.5 percent annual rate in October 2007. Moreover,

the weaknesses among the leading indicators have continued to be widespread

in recent months.



    -- The coincident index also declined sharply in June, and the

weaknesses among its components have become more widespread this month.

Wholesale and retail sales again made the largest negative contribution to

the index. The growth rate of the coincident index over the past six months

slowed to 0.1 percent (about a 0.1 percent annual rate), down from a 2.6

percent annual rate during the second half of 2007.



    -- The leading index has been on a steep downward trend since the

fourth quarter of 2007, while the coincident index has fluctuated around a

flat trend during this period. At the same time, real GDP grew at a 3.3

percent average annual rate during the first half of 2008 (including a 3.4

percent annual rate in the second quarter), down from the 6.2 percent

average rate of growth in the second half of last year. The weaknesses in

both leading and coincident indexes in recent months suggest that economic

growth is likely to remain slow in the near term.



    LEADING INDICATORS. Two of the seven components that make up the

leading index increased in June. The positive contributors -- from the

larger positive contributor to the smaller -- were value of machinery

orders and the (inverted) index of inventories to shipments. Negative

contributors -- from the largest negative contributor to the smallest --

were stock prices, the (inverted) yield of government public bonds, real

exports FOB, letter of credit arrivals, and private construction orders.



    With the 1.0 percent decrease in June, the leading index now stands at

173.2 (1990=100). Based on revised data, this index declined 1.0 percent in

May and increased 0.1 percent in April. During the six-month span through

June, the leading index decreased 2.8 percent, with two of the seven

components advancing (diffusion index, six-month span equals 28.6 percent).



    COINCIDENT INDICATORS. Only one of the four components that make up the

coincident index increased in June. The positive contributor was total

employment. The wholesale and retail sales component and monthly cash

earnings declined, while industrial production remained unchanged in June.

With the 1.0 percent decrease in June, the coincident index now stands at

170.6 (1990=100). Based on revised data, this index increased 0.5 percent

in May and decreased 0.6 percent in April. During the six-month span

through June, the coincident index increased 0.1 percent, with three of the

four components advancing (diffusion index, six-month span equals 75.0

percent).



    ABOUT THE CONFERENCE BOARD. Founded in 1916, The Conference Board is

the premier business membership and research network. The Conference Board

has become a global leader in helping executives build strong professional

relationships, expand their business knowledge and find solutions to a wide

range of business challenges. The Board's Economics Program is a recognized

source of forecasts, economic analysis and objective indicators such as the

Leading Economic Indicators and the Consumer Confidence Index.



    This role is part of a long tradition of research and education that

stretches back to the compilation of the first continuous measure of the

cost of living in the United States in 1919. In 1995, The Conference Board

assumed responsibility for computing the composite indexes from the U.S.

Department of Commerce. The Conference Board now produces business cycle

indexes for the U.S., Australia, France, Germany, Korea, Japan, Mexico,

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Customer Service at 212-339-0345, or email [email protected].










                      Summary Table of Composite Indexes



                                          2008                    6-month

                             Apr           May         Jun        Dec to

                                                                    Jun



    Leading index          176.6         174.9        173.2    p

      Percent Change         0.1          -1.0    p    -1.0        -2.8    p

      Diffusion             57.1          14.3    p    28.6        28.6



    Coincident Index       171.6    p    172.4    r   170.6    p

      Percent Change        -0.6    r      0.5    r    -1.0    p    0.1    p

      Diffusion             75.0          37.5         25.0        75.0



    n.a.  Not available     p  Preliminary     r  Revised

    Indexes equal 100 in 1990

    Source:  The Conference Board               All Rights Reserved







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        The next release is scheduled for Thursday, September 11, 2008

                               at 9:00 P.M (ET)

          In Korea -- Friday, September 12, 2008 at 10:00 A.M. (KOR)