Socio-economic & IT Changes in Korea, and KOSTAT’s Responses

Bongho Choi(bonghochoi@korea.kr)Senior Government Officer at the Statistics Korea

Secretary for Association of National Census & Statistics Directors of America, Asia & the Pacific

Vice President of the Korean Data Analysis Society(www.kdas.or.kr) Professional Lecturer on Prevention against Sexual Violence

IAOS 2014 Conference on Official Statistics 8 ~ 10 October 2014, Da Nang, Vietnam

Socio-economic Changes

occurred in Korea1

Socio-economic Development in Korea

  Per capita GNI (US $,nominal)

Value of export(in millionUS $)

Exchange rate (per 1 US $)

CPI (%)

Population employed in agriculture(%)

Total fertility rate

1960 79. 32.8 65.0   63.0(’63) 6.01965 105 175.1 271.5 13.5 58.5 5.01970 255 835.2 316.7 16.0 50.4 4.51975 607 5,081.0 484.0 25.3 45.7 3.41980 1,660 17,504.8 659.9 28.7 34.0 2.81985 2,355 30,283.1 890.2 2.5 24.9 1.71990 6,303 65,015.7 712.1 8.6 17.9 1.61995 11,735 125,058.0 770.9 4.5 11.8 1.62000 11,865 172,267.5 1,264.5 2.3 10.6 1.52005 18,508 284,418.7 1,011.6 2.8 7.9 1.12010 22,170 466,383.8 1,134.8 3.0 6.6 1.22013 26,205 559,648.7 1,055.4 1.3 6.1 1.2

Change in Structure of GDP in Korea

1970 1980 1990 2000 2010

Total 100.0 100.0 100.0 100.0 100.0

Agri., Forestry & Fishery 29.3 16.2 8.9 4.6 2.6

Mining & Manufacturing 19.5 26.4 28.1 28.6 30.8

Construction 5.1 8.0 11.3 7.0 6.5

Electricity, Gas & Piped

water1.4 2.2 2.1 2.5 2.0

Services 44.7 47.2 49.5 57.3 58.2

Change in Employment by Industries from Household Survey in Korea (in thousand , %)

1970 1980 1990 2000 2010

Total 9,618 (100.0) 13,684 18,085 21,15623,829

(100.0)

Agri.,

Forestry &

Fishery

4,846 (50.4) 4,654 3,237 2,243 1,566 (6.6)

Mining &

Manufacturin

g

1,377 (14.3) 3,079 4,990 4,311 4,049 ( 17.0)

SOC ㆍ Other

Services3,395 (35.3) 5,951 9,858 14,602 18,214 (76.4)

KOSTAT’s Responses in the Past2

Early Stage of Statistical Organization in Korea

Period Major Contents

1945 ~ 1955

◦ With the establishment of modern republic in 1948, Statistics Bureau was set up under the Public Information Office.◦ 1st Population Census was taken in 1949.

1958 ~ 1963

◦ US Statistical Advisory Group (led by Dr. Stuart Rice) was in Korea and made several recommendations which were implemented.

1955 ~ 1961

◦ Korea War brought about political, economic and social chaos.◦ Data collection was difficult or almost impossible.◦ Statistics Bureau was transferred to Ministry of Home Affairs.

1961 ◦ Statistics Bureau was transferred to Economic Planning Board.

1962 ◦ Statistics Act was promulgated. ◦ Korean government launched 1st 5-year Economic Development Plan.

Change of NSO’s Organization

1945~1945~

1948.8.15~1955.2.16 Statistical Bureau under Public Information Office

1955~1955~

1955.2.17~1961.7.21 Statistical Bureau under Ministry of Home Affairs

1961~1961~

1961.7.22~1990.12.26 National Bureau of Statistics under Economic Planning Board 1975 : 8 Provincial offices were newly created.

1990~1990~1990.12.27~2005.7.30 KOSTAT (Assistant Minister level) under Ministry of Finance & Economy 1991 : Creation of Statistical Training Institute 1998 : 500 persons came from Ministry of Agriculture & Fishery

2005.8.1~ KOSTAT (Vice Minister level)

under Ministry of Strategy & Finance2006 : Creation of Statistical Development Institute

2007 : Creation of Survey Management Bureau

2008 : 700 persons came from Ministry of Agriculture

2009 : Merge 11 Provincial offices into 5 Regional offices

2005~2005~

Increasing Trend of Personnel at KOSTATNo. of Divisions At Headquarters

At Regional

OfficesHeadSenior

ManagersDivisions Total Regular

Contract workers

16 Dec. 1963 1 - 4 230 92 138 ?

14 Feb. 1968 1 1 6 217 100 117 ?

24 May 1971 1 1 8 261 219 42 261

14 Aug. 1975

1 3 10 264 208 56 289

1981 1 344 198 246 539

7 Apr. 1990 1 534 256 278 551

1 Aug. 2005 1 6 25 486 486 ? 1,234

2013 1 12 45 876 676

200 2,500 ☜

- On 1 Aug. 2005, the post of Deputy Commissioner was newly created.

☞ Including those interviewers (about 800) working as a contract-basis.

Change of Evaluation for Staff’s Performance at KOSTAT

Management systemManagement system

PastPast Since 2007 Since 2007

Management by Objectives and Seniority

Management by Objectives and Seniority

Balanced Score Card (BSC) system

Balanced Score Card (BSC) system

BSC – Vision, Mission, Core Values, Strategic Goals– 4 Perspectives (Customer, Financial, Internal processes, Employee Learning & Growth)– Every staff-members are evaluated according to the above 4 perspectives.

InputInput ProcessesProcesses OutputOutput OutcomeOutcomeLogic :

Use of IT Technologies in Producing Statistics

Year Events affected the statistical

system

Utilization of IT in Statistics

1990   ∙ OMR for 1990 Population Census was used at headquarters

1995   ∙ OMR for 1995 Population Census was used at local offices

1997 Yahoo launched its business inKorea

 

1999 Internet users reached 10 million

∙ CAPI was introduced for monthly LFS

2000   ∙ Key entry to PC for 1995 Population Census at local offices

2002   ∙ CASI was introduced for monthly Survey on Mining & Manufacturing.∙ PDA was introduced for CPS.

2003   ∙ PDA was introduced for monthly LFS2004 Internet users reached 30

million 

2005   ∙ Internet survey system was introduced for 2005 Population Census.

2006   ∙ Electronic diaries for monthly HIES was introduced.

2009 I-phone was introduced in Korea 

 

2010 Started to join Facebook. ∙ Internet survey rate for 2010 Population Census recorded 47.9%.∙ Net-book replaced PDA for CPS.

2011 Internet users reached 40 millions

∙ ICR was introduced for 1st Economic Census.

2012   ∙ Issue on Big Data has arisen

Statistics Developed over time at KOSTAT1960s 1970s 1980s

Total 15 12 6

Decennial • National Capital Stock Survey (ceased)

5-yearly • Population & Housing, Industry, Wholesale & Retail Trade, Agriculture & Fisheries

• Population Projection (1986)

Biennial • Statistical Manpower &  Budget (1972)

Annual • Vital Statistics (1962)• Mining & Manufacturing(1968)• Agricultural Production Cost (1962)• Basic Agricultural Statistics (1968)

• Fishery Catchment Survey (1970)• Construction (1974)• Internal Migration (1976)• Transportation (1977)• Social Statistics Survey (1977)• Food Grain Consumption (1977)

• Wholesale &  Retail Trade (1988)• Service Industry (1988)• GRDP (1989)

Quarterly Farm HH Parity Survey(1965) • Livestock Survey(1976)

Monthly • EAPS(1962)• HIES(1962)• Consumer Prices(1964)• Farm HH Economy(1962)• Fisheries HH Economy (1963)

• Manufacturing (1970)• Construction Orders Received (1976)• Machinery Orders  Received (1979)• Manufacturing Production Capacity & Operation Ratio

• Composite Indices (1981)• Wholesale & Retail Trade

Statistics Developed over time at KOSTAT1990s After 2000 ~

Total 12 16

5-yearly • Population Projection for  Provinces• Time Use Survey (1999)

• Household Projection (2002)• Economic Census (2011)

Biennial • Statistical Demands Survey (1994)• Response Burden Survey (1997)

• Multi-culture Family Survey (2009)

Annual • Basic Characteristics of Establishments (1995)• Life Table (1994)• Cause of Death (1999)• Agricultural Area Survey (1999)

• Agri. & Fishery Establishments (2000)• Fishery Cultivating Entities (2004)• International Migration (2004)• Enterprise Activities Survey (2006)• Survey on Private Education Expenditures (2007)• Survey on Professional, Scientific & Technical Service Industries (2008) • National Wealth Estimation (2009)• Household Finance & Welfare Survey (2011)• Household Green Activities Survey (2011)

Quarterly or Monthly

• Value of Construction Put-in-place (1998)• Estimation Index of Equipment Investment (1998)• Current Activity on  Service Industries (1999)• Consumer Sentiment (ceased)

• Cyber-shopping mall survey (2000)• E-commerce by enterprises (2001)• Local Area Labor Force Survey (2008)• Index on All Industry Production (2011)

Summary of Changes during 1970s

Korea’s economy kept growing and expanding.

Local statistical offices were firstly established in 8 places under the National Bureau of Statistics.

Social Statistics Survey was firstly conducted.

Monthly surveys on mining & manufacturing, construction orders received, machinery orders received were newly conducted.

Local agricultural statistical offices were firstly established in 80 places under the Ministry of Agriculture.

Survey on Statistical Manpower and Budget was newly conducted.

Foreign Trade Statistics by UN’s SITC(Standard International Trade Classification) was started.

Summary of Changes during 1980s

Besides Government’s efforts, the global economic boo, helped Korea to achieve really great success in 1980s.

Social development plan was added to existing economic development plan.

Annual surveys on wholesale and retail trade as well as on service industry was newly conducted.

Composite indices were newly compiled. GRDP was newly compiled.

Vital registration data were actively utilized to produce statistics on infant mortality, life-table, population projection.

Summary of Changes during 1990s

For the first half of 1990s, Korean economy continued a stable and strong growth. However, thing changed quickly in 1997 with the Asian Financial Crisis.

Head of NBOS was upgraded to the level of Assistant Minister, which made NBOS became an independent organization.

Statistics Day was firstly designated.

First introduction of CAPI for monthly survey on labor force.

Personnel in agricultural statistics were transferred to NSO.

IT technologies started to be used.

Summary of Changes during 2000s

Economic growth stabilized and policies needed to focus on more specific subjects (work & life balance, well-beings, economic equality).

Large-scale international statistical meetings were held(53rd ISI Session in 2001, 3rd OECD World Forum in 2009).

Statistical Reform Plan was made and implemented (Statistics Law was amended, system on statistical quality management and statistics-based policy management was introduced, Statistical Development Institute was set up)

Statistical personnel(700) from Ministry of Agriculture were transferred to NSO.

Use of IT technologies in the production of statistics(PDA, CASI, electronic diaries) for surveys on consumer prices, labor force and household income & expenditure )was strengthened.

Agenda dealt with Reform Plan in 2004/05

• Conduct of a survey on the demand of statistics. • Preparation of 5-Year Statistical Development Plan.• To solve the issue on how to use the administrative

data for the production of new statistics and the improvement of existing statistics.

• To find solutions on how to enhance the capacity of regional statistical offices and to improve the relationship between regional statistical offices and the local governments.

• Amendment of the Statistics Law.• Creation of a new National Statistical Committee.• Strengthening of statistical capacity of other

ministries and local governments as well as preparation of a redeployment plan of national statistical personnel.

Introduction of “Statistics-based Policy Management” Introduction of “Statistics-based Policy Management”

• Presidential Decree revised in 2007

• Crucial role in evaluating policies

Planning stage Execution Stage Evaluation Stage

Statistics-based Policy ManagementStatistics-based Policy Management

Government agencies shall submit relevant statistics or plans to develop them when they revise acts.

KOSTAT’s Responses in the Future3

Ten Issues Arose Recently at Statistics Korea

1. On Data Dissemination The Statistics Act stipulates that strict political neutrality must be observed to protect the credibility of data, with all findings announced without delay. However, the statistics on CPI, Industrial Production and Employment have been provided one day earlier than the official release time to the Blue House and the Ministry of Finance & Strategy. The other statistics on annual and ad-hoc surveys have been provided a week earlier. Statistics Korea is now considering to stop these practices through amending the Statistics Law.

2. Increase of use of micro-data Requests for micro-data with names and addresses of individuals are increasing, especially from the private sector.

3. On Governance for Statistical Organizations - Fixed-term for the commissioner's job is not yet set up in Korea. - Chairmanship of the National Statistical Committee (to the P.M.)- Change of the oversight ministry (to the P.M.)

4. Weak trust in some statistics compiled by Statistics KoreaEspecially, statistics on income distribution (Gini-coefficient), unemployment rate, consumer price indices.

5. Low Perception on StatisticsGeneral public does not understand difficulties in the process of data production. It is not easy to get full cooperation when we conduct statistical surveys. General public regards statistics are free goods.

6. Compilation of SNAThe authority to compile the System of National Accounts has been given to the Bank of Korea not Statistics Korea. Statistics Korea is currently in charge of the Gross Regional Domestic Production.

7. Statistical Activities of Local Governments and RSOsStatistical activities of local governments are weak. Each provincial governments has a very few statistical personnel. Statistical activities of Regional Statistical Offices under Statistics Korea are also found to be weak. Their main duties are to be the field-work especially in data capturing.

8. Existence of Different organizational culture at KOSTATCurrently, three labor unions exist. One is for staff-members working at the headquarters, another one is for staff-members working at the regional offices, and the other one is for interviewers with indefinite contract-basis. Transfers of personnel to Statistics Korea from the Ministry of Agriculture twice (in 1998 and in 2008) have also affected the work environment.

9. Regional Statistical Offices- Regional Statistical Offices request the abolition of the telephone- monitoring system for quality checks. - Regional Statistical Offices is now operated as the independent agency-type. Director-Generals of each regional offices are appointed on a contract basis of two to three years.

10. Performance appraisal system for staff-membersTwo performance evaluation system exist. One is the traditional system which is done simply and manually by supervisors. The other one is the Balanced-score Card(BSC) system which is done by the performance indicators’ (numerically).

Develop relevant statistics

Advance National StatisticsAdvance National Statistics

Enhance efficiency

Improve user’s trust

Ensure convenient access

KOSTAT’s Core Strategy

Produce more policy-based statisticsProduce more policy-based statistics

• Produce income inequality indicators at diverse dimensions

• Compile supplementary indicators of unemployment rate

• Produce statistics of newly emerging global agenda

(quality of life, green growth, climate change…)

To Develop Relevant Statistics for Supporting Policies

Switch to centralized statistical system in data managementSwitch to centralized statistical system in data management

• To Enhance Policy responsiveness of Statistics

◦ Conduct Surveys for other ministries by KOSTAT

- By using superior infrastructure of KOSTAT

(Interviewers, IT system, etc.)

◦ Maintain decentralized system for administrative data

◦ To set up “Integrated Data Management Institute”

◦ Conduct Surveys for other ministries by KOSTAT

- By using superior infrastructure of KOSTAT

(Interviewers, IT system, etc.)

◦ Maintain decentralized system for administrative data

◦ To set up “Integrated Data Management Institute”

• Improve accuracy and confidence of official statistics• Improve accuracy and confidence of official statistics

To Develop Relevant Statistics for Supporting Policies

Designation of Responsible Statistical Officers

International OrganizationsInternational Organizations

Local Governments (16 Provinces)

SeoulBusan

Local Governments (16 Provinces)

SeoulBusan

…

Cities/Counties/Districts

(230)

Cities/Counties/Districts

(230)

5 Regional Statistics

Offices

49 Sub – Regional Offices

5 Regional Statistics

Offices

49 Sub – Regional Offices

Central Governments

Ministry of Labor

Ministry of Health

Ministry of Education

Central Governments

Ministry of Labor

Ministry of Health

Ministry of Education

…

Public Entities

∙ Bank of Korea∙ Korea Labor Institute∙ KIHASA∙ Various Associations

Public Entities

∙ Bank of Korea∙ Korea Labor Institute∙ KIHASA∙ Various Associations

…

LocalOfficesLocal

Offices

More use of administrative data More use of administrative data

• Some statistics can be replaced by administrative data.

ex) Population & Housing Census, business surveys

• The revised Statistics Act provided the legal basis to use administrative data for producing statistics. ( 2007)

• Many issues remain to be resolved

- Conflicts between agencies, technical problems to protect privacy,

different classifications, etc.

To Enhance Efficiency

Active use of administrative dataActive use of administrative data

• Revise the tax law in order to use tax data

- “Statistics Korea may use tax data to compile statistics”

(in Tax law)

• Strengthen the electronic security for confidentiality of tax data

- separate intranet from internet

- management of log files

• Various tax data to be accessed

- To set up Business register

(name, address, telephone number, economic activity, etc.)

To Enhance Efficiency

Respondent-friendly survey techniquesRespondent-friendly survey techniques

CAPI

CADICASI CATI

Households preferringHouseholds preferring

interview surveysinterview surveys (Rotation, In-migrating and (Rotation, In-migrating and

non-respondent households)non-respondent households)

Households preferring Households preferring

Internet surveysInternet surveys

Households impossible Households impossible

to interview in the daytime to interview in the daytime

and households and households

preferring CATIpreferring CATI

(One-person and (One-person and

dual income households)dual income households)

hod

Conduct surveys on behalf of other statistical officesConduct surveys on behalf of other statistical offices

• Weak survey infrastructure at many statistical offices

• Survey on behalf of other statistics offices utilizing KOSTAT interviewers.

Ex) OECD International Assessment of Adult Competencies survey contracted out by the Education Ministry (2010)

To Improve User’s Trust

Strengthening one-stop statistics serviceStrengthening one-stop statistics service

• KOSIS : Korean Statistical Information Service

• Store 170 million data cells

• Planning to integrate all national statistics to KOSIS.

0

100000

200000

300000

400000

500000

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Number of KOSIS users (per month)

March, 2007 May July Sep. Nov. Jan. 2008 March

467550

(Apr. ,2008)Users

To have Convenient Accessibility

Who Are Users?

Domestic Abroad - Central governments - International organizations - Local governments - Foreign countries

Users (demands) for Statistics

Businesses Research General Public- Enterprises - Universities - News media- Associations - Research institutes - Students- Labor unions - Opinion polls - Political parties - Marketers - Citizens

In KOSIS, any people can find the requested data by himself and On-line publication service is also available. An Example found from KOSIS – Population Pyramid

An Example found from KOSIS’s e-national indicators system – GDP and Growth Rate

Collection and analysis of Internet dataProvision of visualized analysis function

Research on big data use in official statistics and pilot production

of statistics

Establish a task force responsible for big data use and train human

resources

Support rapid and accurate production of the Mining and Manufacturing Production Index

Media data is automatically collected and used for objective editing

(checking changes in establishments and items, finding outliers)

before finalizing the Index.

“Earlier dissemination of the Mining and Manufacturing Production

Index by using media data”

Easier understanding of time-series data (index and

volume) by providing visualized analysis function

KOSTAT’s Efforts to Use Big Data

37

Statistics → Knowledge → Policy

Better Policy for Better Life

Statistics → Knowledge → Policy → Better Life

Visualization and transformation of statistics into knowledge Visualization and transformation of statistics into knowledge

In OECD World Forums, the transformation of statistics into knowledge, a new paradigm in knowledge-based society, continuously discussed.

Changes from statistical production to statistical utilization Changes from statistical production to statistical utilization

There was a growing need for the creation of value added by the public using data in their daily lives, going beyond a mere dissemination of statistical data.

Dissemination → Communication

KOSTAT’s Efforts for Data Visualization

Japan(’82)

China(’93)

GER(’97)

Mongol

(’02)

Thai(’02)

Vietnam(’02)

Iran(’08)

UAE(’10)Abu

Dhabi(‘12)

KAZ(’10)

Neth.(’11)

Uzb(’11)

Indonesia (’11)

SStrengthening International Cooperation Activities (Bi-lateral)SStrengthening International Cooperation Activities (Bi-lateral)

Russia(‘95)

Egypt(’12)

+Eurostat(’10)

To have a good question is more important than a good answer !

Thank you !