Monday, September 7, 2009

Korean economy bouncing back?

Good news and bad news. The Washington Post has an article on how the South Korean economy seems back on track:
Purchasing power surged between April and June at the highest rate in 21 years, rising 5.6 percent from the previous quarter, the Bank of Korea said last week. It said the gross domestic product jumped for the quarter at the fastest rate in five years, as South Korea benefited from lower oil prices, the depressed cost of raw materials and a weakened currency that made its cars and mobile phones cheaper on the world market.
The bad news? Worries of a real estate bubble:

Fear of the poorhouse has been chased away by alarm over housing prices, which have risen sharply in response to record-low interest rates. The government plans on Monday to crack down on what has become a real-estate bubble in Seoul, the country's dominant city. It will limit the amount of money home-buyers can borrow to no more than 50 or 60 percent of their annual income.

Well, that fear is an old one.

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