The Conference Board(R) Korea Business Cycle Indicators(SM)

Korea Leading Economic Indicators and Related Composite Indexes for March 2008

NEW YORK, May 8 /PRNewswire/ -- The Conference Board announced today that the leading index for Korea declined 0.2 percent, while the coincident index increased 0.2 percent in March.

-- The leading index declined again in March following a sharp drop in
February. The weaknesses among the leading indicators continued to be
widespread this month, with five of the seven components in the leading
index making negative contributions. Among them, the private
construction orders component made the largest negative contribution.
With March's decrease, the six-month change in the leading index has
dropped down to a -0.3 percent rate (a -0.6 percent annual rate)
between September 2007 to March 2008, well below the rapid growth rate
of 5.1 percent (about a 10.5 percent annual rate) reached between April
to October 2007.

-- The coincident index increased slightly again in March, and the
strengths among the coincident indicators have been widespread in
recent months. Despite this gain, the six-month growth rate for this
index of current economic activities continued to slow, to 1.0 percent
(a 2.0 percent annual rate) from September 2007 to March 2008, down
from the most recent peak growth of 2.6 percent (about a 5.3 percent
annual rate) in July 2007.

-- The leading index has been on a downward trend since its most recent
peak in October 2007, as a result of widespread weakness among its
components. At the same time, real GDP grew at a 2.9 percent annual
rate in the first quarter of 2008, well below the 6.2 percent average
annual rate in the second half of 2007. The recent behavior of both
the leading and coincident indexes so far suggests that slow to more
moderate economic growth is likely to continue in the near term.

LEADING INDICATORS. Two of the seven components that make up the leading index increased in March. The positive contributors - from the larger positive contributor to the smaller -- were the (inverted) index of inventories to shipments and letter of credit arrivals. Negative contributors - from the largest negative contributor to the smallest -- were private construction orders, real exports FOB, the (inverted) yield of government public bonds, value of machinery orders, and stock prices.

With the 0.2 percent decrease in March, the leading index now stands at 176.2 (1990=100). Based on revised data, this index declined 1.3 percent in February and increased 0.5 percent in January. During the six-month span through March, the leading index decreased 0.3 percent, with three of the seven components advancing (diffusion index, six-month span equals 42.9 percent).

COINCIDENT INDICATORS. Three of the four components that make up the coincident index increased in March. The positive contributors to the leading index -- in order from the largest positive contributor to the smallest -- were the wholesale and retail sales component, industrial production, and monthly cash earnings. Total employment declined in March.

With the 0.2 percent increase in March, the coincident index now stands at 171.4 (1990=100). Based on revised data, this index increased 0.2 percent in February and increased 0.1 percent in January. During the six-month span through March, the coincident index increased 1.0 percent, with three of the four components advancing (diffusion index, six-month span equals 87.5 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, Spain and the U.K. To subscribe to any of these indexes, please contact Customer Service at 212-339-0345, or email indicators@conference-board.org.

Summary Table of Composite Indexes
2008 6-month
Jan Feb Mar Sep to Mar

Leading index 179.0 r 176.6 r 176.2
Percent Change 0.5 -1.3 -0.2 -0.3
Diffusion 42.9 28.6 28.6 42.9

Coincident Index 170.7 r 171.0 r 171.4 p
Percent Change 0.1 r 0.2 r 0.2 p 1.0 p
Diffusion 87.5 87.5 87.5 87.5

n.a. Not available p Preliminary r Revised
Indexes equal 100 in 1990
Source: The Conference Board All Rights Reserved

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www.conference-board.org/economics/bci/

The next release is scheduled for Tuesday, June 10, 2008 at 9:00 P.M (ET)
In Korea - Wednesday, June 11 2008 at 10:00 A.M. (KOR)

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Source: The Conference Board

CONTACT: Indicator Program, +1-212-339-0330, or Media, Frank Tortorici,
+1-212-339-0231, or Carol Courter, +1-212-339-0232, all of The Conference
Board

Web site: http://www.conference-board.org/
http://www.conference-board.org/economics/bci

2008-05-08 21:04:26 0357332 PRNEWSWIRE