New GDP formula to be used by Bank of Korea

SOUTH KOREA - The Bank of Korea will announce a gross domestic product (GDP), or a gross added value of the economy, under a new formula, starting from the third quarter of 2004.

The central bank said yesterday the GDP under the new formula would be up 3-4 percent from the figure under the old formula.

Application specific software and military roads, runways and hospitals which can be diverted for civilian use will be included in the new GDP calculation.

In addition, depreciation reserves wil