S3 Bank of Korea Other Business Servicesunstats.un.org/unsd/trade/events/2014/india...Management...
Transcript of S3 Bank of Korea Other Business Servicesunstats.un.org/unsd/trade/events/2014/india...Management...
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Compilation ofOther Business Servicesin Korea
Balance of Payments TeamEconomic Statistics Department
Mijin [email protected]
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Contents
I. Introduction
II. Legal ground
III. Data sources
IV. Compilation methods
V. Challenges
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Contents
I. Introduction
II. Legal ground
III. Data sources
IV. Compilation methods
V. Challenges
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I. Introduction
Balance of Payments Statistics in Korea
(a) Manual: Balance of Payments Manual, BPM (IMF)- The BOK completed implementation of BPM6
(Mar. 2014)* BPM6: Balance of Payments Manual Sixth Edition (2010)
(b) Periodicity: Monthly (since 1978)
(c) Timelines: Within the end of the following month
(d) Dissemination:- Released in two stages: preliminary and final- Release schedules for the next year are announced in December
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I. Introduction
BPM6 and MSITS2010
- BPM6 and EBOPS (Extended Balance of PaymentsServices Classification) in MSITS2010 have the sameconceptual framework on trade in services:definition, valuation, and classification
- MSITS provides a further breakdown of theclassification of services transactions by type ofservices through the EBOPS
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Other business services in MSITS
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Contents
I. Introduction
II. Legal ground
III. Data sources
IV. Compilation methods
V. Challenges
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II. Legal ground
1. Law and administrative arrangements
(a) The Bank of Korea Act- Assigns responsibility and provides authority tothe BOK for collecting and compiling macroeconomicstatistics, among those BOP statistics
(b) The Foreign Exchange Transaction Act- Provides authority to the BOK for collectinginformation from individuals, corporations or foreign exchange banks on international transactionsfor the purpose of compiling BOP statistics
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II. Legal ground
(c) The Statistics Law- Designates the BOK as the compiling agency forthe BOP statistics
- Requires to disseminate BOP statistics compiled,and the corresponding metadata
1. Law and administrative arrangements
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II. Legal ground
2. Law and Agreement about confidentiality
(a) The Bank of Korea Act- BOK staff should not divulge confidential mattersto unauthorized individuals
(b) The Foreign Exchange Transaction Act- Strictly prohibits officials involved in foreign exchangetransaction work from divulging information and usinginformation for other purposes
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II. Legal ground
(c) The Statistics Law- Statistical agencies must carry a legal guarantee ofprotection of the confidentiality of individuals’ andjuristic persons or bodies’ information
- The information collected will be used only forstatistical purposes
2. Law and Agreement about confidentiality
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Contents
I. Introduction
II. Legal ground
III. Data sources
IV. Compilation methods
V. Challenges
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III. Data sources
Foreign Exchange Information System(FEIS): ITRS
- Financial institutions have the obligation ofreporting all foreign exchange businesses goingthrough them to the FEIS▪ The FEIS was set up in April 1999 in order to swiftly
collect and analyze foreign exchange transactionsand market information
▪ The FEIS includes the explanatory codes and values,counterpart countries, HS code, delivery terms,remittees(usually exporters), and remitters(usuallyimporters)
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III. Data sources
Foreign Exchange Information System(FEIS): ITRS
Institutions to deal with foreign exchange affairs
-Domestic banks-Foreign bank branches-Securities companies, Futures companies-Insurance companies-Asset management companies-Mutual credits, etc.
Reporting InstitutionsFX Information
Concentration AgencyInformation Users
- The Bank of Korea- Ministry of Strategy and Finance- National Tax Service- Korea Customs Service- Financial Supervisory Service- Korea Financial
Intelligence Unit- Korea Deposit Insurance
Corporation- Korea Center for
International Finance- Financial Services
Commission
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III. Data sources
Foreign Exchange Information System(FEIS): ITRS
- Explanatory Code: SENDRSN_S_CD▪ 687: Remittance caused by R&D services
=> Research and development services account in BOP
- Output of Report #0012(Outward Remittance)
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Contents
I. Introduction
II. Legal ground
III. Data sources
IV. Compilation methods
V. Challenges
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IV. Compilation methods
Matching Explanatory codes to the Components
- Example of explanatory codes table
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IV. Compilation methods
Matching Explanatory codes to the Components
- Example of matching matrix
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IV. Compilation methods
Matching Explanatory codes to the Components
- Case
Residents Non-Residents
A BManagement consulting service
$1,700
Code #685Inward Remittance
Bank’s reportingto the BOK
BOP recording : 10.2.1.3 Business and management consulting and
public relations services
C D$2,600
Public relations service
Code #686Outward Remittance
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IV. Compilation methods
Other business services in Korea
-4.5
-4.0
-3.5
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
-4.5
-4.0
-3.5
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
2006 2007 2008 2009 2010 2011 2012 2013 2014
Technical, trade-related and
other business servicesProfessional and management
consulting servicesR&D services
(billion dollars) (billion dollars)
ServicesOther business
services2013 79.9 80.6 -7.9 -11.5 11.4 -4.2
2014Q1 15.1 17.7 -3.6 -2.3 1.9 -1.0Q2 24.1 26.4 -2.0 -2.3 1.3 -1.7Q3 22.7 21.9 -1.0 -2.8 3.1 -1.3
Current account Goods Primary income Secondary income(Billion dollars)
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Contents
I. Introduction
II. Legal ground
III. Data sources
IV. Compilation methods
V. Challenges
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V. Challenges
1. Difficulties in data collection
- Reduction of reporting obligation by deregulation▪ Private companies and individuals are arguingderegulation for their convenience
▪ Government is promoting a reduction in foreigncurrency and investments abroad regulations thatcould make FX transactions more customer-friendly
▪ Announced that regulations for FX transactionwill be relaxed (July 31. 2014)
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V. Challenges
1. Difficulties in data collection
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V. Challenges
1. Difficulties in data collection
- Trade-off between the quality of stats andderegulation for enhancing market efficiency
▪ Should find a balanced position
=> It’s not a matter of technique,but a matter of art.
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V. Challenges
2. Other of other business services
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V. Challenges
2. Other of other business services
0
1
2
3
4
5
6
0
1
2
3
4
5
6
'06 '07 '08 '09 '10 '11 '12 '13 '14
10. Other business services
10.3.5. Other business services
(billion dollars) (billion dollars)(billion dollars) (billion dollars)
0
1
2
3
4
5
6
7
8
9
0
1
2
3
4
5
6
7
8
9
'06 '07 '08 '09 '10 '11 '12 '13 '14
10. Other business services
10.3.5. Other business services
(billion dollars) (billion dollars)(billion dollars) (billion dollars)
Credit Debit
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V. Challenges
2. Other of other business services
- The banks have difficulties to figure out exactexplanatory code for the following reasons▪ Companies usually don’t want to give enoughinformation about their transactions because some ofthem should be treated as confidential
▪ Some transactions are too complex to fit into thecurrent explanatory codes frame
- In this case, the banks tend to report thosetransactions with “other” codes (code #609 or #618)
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V. Challenges
2. Other of other business services
- What does the BOK do?▪ The BOK has reorganized the explanatory code
system to reconcile it with real transactions(Jan 2014)▪ Monitoring FX transactions reporting to follow newtrends of trade in goods and services
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Thank you!
Q&A