Korea Must Avoid a Real-Estate Market Collapse

Chosun Ilbo | Jul 15, 2022 at 3:14 PM
  • Bank of Korea Governor Rhee Chang-yong on Wednesday warned that inflated real estate and stock prices “will not be able to escape adjustments” after the bank hiked the key interest rate by an unprecedented half percentage point.
  • A steep interest rate hike poses a serious threat to people who borrowed money after household debt in Korea soared to W1.8 quadrillion, around 80 percent of which was borrowed on fluctuating interest rates (US$1=W1,312).
  • A steep increase in interest rates is a formidable threat to the real estate market, where prices have skyrocketed in recent years.