In 2023, the share of manufactured goods in Korea's total production fell while the share of services expanded. The trend reflects a combination of shrinking semiconductor exports and a "pent-up effect" as consumption revived after the endemic (endemic: the localization of an infectious disease).
According to the "input-output table (extended table)" released by the Bank of Korea on the 24th, total supply (total demand) of goods and services in the economy in 2023 was tallied at 6,802.7 trillion won, down 550 billion won (-0.1%) from the previous year (6,808.2 trillion won). With weak semiconductor exports and lower oil prices, the share of exports and imports in total transactions shrank from 31.5% to 29.6%.
As a result, the share of manufactured goods in total output (41.2%) fell by 1.6 percentage points (p). Services filled the gap left by manufactured goods, pushing the services share (48.1%) up by 1.3 p. In value added, the share of manufactured goods (25.0%) decreased by 1.2 p, while the services share (65.4%) increased by 0.3 p.
Looking at the input structure, the intermediate input ratio—intermediate inputs divided by total inputs—fell from 59.9% to 58.8% due to lower oil prices. Import dependence—imported intermediate inputs divided by total inputs—declined from 14.9% to 13.6%. Among intermediate goods, the share of manufactured goods such as basic materials decreased, while the share of services expanded.
In final demand, the share of consumption expanded from 45.8% to 48.0%, led by the private sector. Within private consumption, the services share—such as transportation and food and lodging—increased notably (73.1%→74.0%). However, the shares of investment (22.9%→22.6%) and exports (31.3%→29.4%) declined.
In external transactions, the export ratio (exports/total output) shrank from 18.5% to 17.3%, led by chemicals, computers, electronics and optical equipment, and wholesale and transportation. The import ratio (imports/total supply) decreased from 16.0% to 14.9%, led by mining products, chemicals, and metal products.
The value-added inducement coefficient rose from 0.729 in 2022 to 0.752 in 2023. It indicates the value added directly and indirectly induced when one unit of final demand occurs. Over the same period, the production inducement coefficient increased from 1.817 to 1.827, while the import inducement coefficient fell from 0.271 to 0.248. The two figures represent the magnitudes of production and imports induced when one unit of final demand occurs.
The employment inducement coefficient edged up from 8.1 persons to 8.2 persons. The employment inducement coefficient refers to the number of employed persons directly and indirectly induced across all industries when 1 billion won of final demand occurs in consumption, investment, and exports of goods. The employment inducement coefficient plunged from 9.7 persons in 2020 to 8.7 persons in 2021, and then fell to a record low since the statistics began, at 8.1 persons in 2022.
The job inducement coefficient, which extracts wage workers from the employment inducement coefficient, was tallied at 6.2 persons. It was lower than in 2020 (7.2 persons) and 2021 (6.5 persons), but slightly higher than in 2022 (6.1 persons). Services were the highest at 7.6 persons, followed by construction at 7.2 persons and mining products at 5.3 persons.
The input-output table is an index that comprehensively analyzes the transactions related to the production and disposal of Korea's goods and services over a year. The extended table was compiled using an indirect estimation method by setting the 2020 observed table as the base year to enhance the continuity and timeliness of the statistics.