Min Woo KIMNational Income Statistics & Coordination Team

National Accounts OfficeEconomic Statistics Department

The Bank of Korea

OECD Working Party on National Accounts1 ~ 3 December 2010, Paris, France

Phase Milestones Implementation

Pre SNA Basic data on production, prices, consumption, trade, etc.

Phase 1 GDP by industry and expenditure at current and constant prices

Phase 2 Phase 1 plus External transactions and aggregates: GNI, GDI, savings, and etc.

Phase 3 Phase 2 plus Production account for all institutional sectors and Government integrated account

1995

Phase 4 Phase 3 plus integrated accounts for all institutional sectors until capital accounts

Phase 5 Phase 4 plus financial accounts for all institutional sectors

2000

Phase 6 Phase 5 plus Other changes in assets accounts and Balance sheet for all institutional sectors

2009(Test Compilation Completed)

Items 1993 SNA recommendationStatus of implementation

Implemented Partly implementedNot yet

implemented

Production Inclusion of illegal activities ○(but not specified)

　 　

Production of goods within households for ownConsumption

○

Output and value added to be valued at basic, producers’ and purchasers’ prices

○

　Premium supplements to be included in the output of insurance

○ 　 　

Expenditure Distribution of FISIM to industry and final users ○ 　 　

　Classification of expenditures into COFOG, COICOP, COPP and COPNI

○ 　 　

Items 1993 SNA recommendationStatus of implementation

ImplementedPartly

implementedNot yet

implemented

Institutional sectorclassificationand sequenceof accounts

Sequence of Accounts have to be compiled for five broad institutional sectors.

○ 　 　

Commodity flow and balances - Supply and usetable, I/O Table

○

Production account – Uses and resources of GDP by institutions/activity

○

Income and appropriation account – Distribution of national income by institution and its appropriation

○

Accumulation account – Capital account, financial account, other changes in volume of assets account,revaluation account

○(Test Compilation

Completed)

Balance sheets – To be compiled as part of integrated set of accounts

○(Test Compilation

Completed)

　 　

Items 1993 SNA recommendationStatus of implementation

Implemented Partly implementedNot yet

implemented

Economic assets

Entire expenditure on mineral exploration to be treated as capital formation

○ 　 　

Expenditure on software ○

Government defence expenditure on fixed assets other than weapons and their means of delivery

○

Valuables ○

Entertainment, literary or artistic originals ○(lack of data sources)

　 Charging CFC on government fixed assets including roads and bridges

○ 　 　

Prices and volumemeasures

Estimates at constant prices for full system of national accounts

○ 　 　

Chain volume measures ○ 　 　

Items 1993 SNA recommendationStatus of implementation

Implemented Partly implementedNot yet

implemented

Time of recording

Cultivated natural growth of crops to be included in outputas work in progress or gross fixed capital formation over theentire period of the growth process.

○

Livestock raised for food are to be treated as work-in-progressuntil slaughtered. Furthermore, entries are to be recorded forown account production as the animal grows.

○

The speculative construction to be shown as part of inventoriesuntil the ownership has been transferred to the eventual userof the asset. Hence it should not be treated as gross fixed capitalformation until that time. Output remains part of the work inprogress of the institutional unit producing the asset until sold.

○

All transactions to be recorded on an accrual basis in order toreflect the time when the transactions occurred rather than when it may be paid for.

○

Satellite accounts Natural resources accounting 　 　 ○(not needed in Korea)

Tourism accounts○

(several studies completed)

　 Social accounting matrix 　○

(several studies completed)

　

OthersThe return to labour and capital for unincorporated enterprisesowned by households to be termed as ‘mixed income’.

○

　 No statistical discrepancy; emphasis on classification, simplification and harmonisation

　 　 ○

ElementAssessment

CommentsObserved

Largely Observed

0. Prerequisites of quality 　 　 　

0.1 Legal and institutional environment ○0.2 Resources ○0.3 Relevance ○0.4 Other quality management ○

1. Assurances of integrity 　 　 　

1.1 Professionalism ○1.2 Transparency ○1.3 Ethical standards ○

2. Methodological soundness 　 　 　

2.1 Concepts and definitions ○2.2 Scope ○2.3 Classification/sectorization ○2.4 Basis for recording ○

3. Accuracy and reliability 　 　 　3.1 Source data ○ ㅇ No specific estimates for the non-observed

economy.→ Not large in Korea.ㅇ Use the Denton method for benchmarking.ㅇ Periodically undertake revisions analyses of the type conducted in 2006.→ Recommendations fully accepted.

3.2 Assessment of source data ○3.3 Statistical techniques ○3.4 Assessment and validation of intermediate data and statistical outputs

○

3.5 Revision studies ○

4. Serviceability 　 　 　4.1 Periodicity and timeliness ○4.2 Consistency ○4.3 Revision policy and practice ○

5. Accessibility 　 　 　5.1 Data accessibility ○ ㅇ BOK's online database requires the

installation of software that may create computer security concerns for the users outside Korea.

5.2 Metadata accessibility ○

5.3 Assistance to users ○ 　

• Translation of 2008 SNA Manual(Done)

• Rearrangement of internal organization

• Priority setup: Main changes for Korean economy

• Seminars and workshops

• Research, test compilation, and comparison

• Backcasting

National Account Office

National Income Statistics and

Coordination Team

National Expenditure Statistics Team

Input-Output StatisticsTeam

National Balance Sheet Team

Price Statistics Team

Balance of Payment Statistics Team

International Investment Position

Team

Foreign Exchange Analysis Team

Monetary & Financial Statistics Team

Flow of Funds Team

Corporate Statistics Team

Statistics Planning Team

Statistics Development Team

Economic Survey Team

* To-be organization set up in 2011

TranslatiTranslationonofof

ManualManual

Setting upSetting up

OrganizatiOrganization,on,

Budget,Budget,and and

PriorityPriority

InternatiInternationalonal

SeminarSeminaronon

2008 SNA2008 SNA

Research Research & Test& Test

CompilatiCompilationon

BackcastiBackcastingng

CompilatiCompilationon

based onbased on2008 SNA2008 SNA

andandPublicatiPublicati

onon

• Research and developments

• Military expenditures

• Entertainment, literary or artistic originals

• Consumption of fixed capital

• Financial intermediary services indirectly measured(FISIM)

• Goods for processing and merchanting

• Financial services and other issues

2010 2011 2012 2013 2014

Research

R&D

Military

Originals

FISIM

Int. trade

Test compilation

Research Test compilation

Research Test compilation

Research Test compilation

Research Test compilation

implementiimplementingngBackcasti

ng

Backcasting

Backcasting

Backcasting

Backcasting

• Research papers on the changes from 1993 SNA to 2008 SNA prior to application

• Publication of 『 Korean System of National Accounts 2014 』 and 『 Comparison Table 』

• Open lectures and seminars with policymakers, academia, journals, and the general public

• Simultaneous compilation of National Accounts based on 1993 and 2008 SNA, if needed

• Implementation assessment with the international organizations