Press Coverage on the Korean Real-estate market – October 13th-14th

Mixed opinions on Korean Bubble’s threat

 

‘The Coming Korean Bubble’

house in handsOn October 13th,  Jasper Kim, an associate professor of law and finance at the Graduate School of  International Studies of Ewha Women’s University in Seoul, asserted the risk in Korean real-estate market.  She said the current situation can be compared with U.S. subprime giving 3 points: 1)continuing consumer confidence that real-estate prices will go up, 2) benefit from cheap credit and 3)traditional preferences on real-estate investment.  She worried the potential risk which still remains in Korean housing market despite the increase in  LTV ratio and DTI restriction level.

‘South Korea Doesn’t Have a Housing Bubble’

Following day, Dominique Dwor-Frecaut, a Senior Economist of the Royal Bank of Scotland, claimed against Professor.Kim’s opinion. He clarified real-estate valuation is not as bad as Professor.Kim said, according to Kookmin Bank real-estate price index, BIS report and IMF Study. He said what’s more serious is the increase in household debts, which have increased to 139% of disposable income at mid-2009.                         See more from WSJ.com

Advertisements

About FSC Korea
The Financial Services Commission has been established for the purpose of protecting the integration of Korea’s financial markets by promoting sound credit system and fair business practices. To this end, the FSC serves as a consolidated policy making body for all matters pertaining to supervision of the financial industry as a whole. To raise the efficiency, the posts of the FSC Chairman and the FSS Governor were separated on March 2008 for clear distinction between policy-making and execution of financial market supervision

4 Responses to Press Coverage on the Korean Real-estate market – October 13th-14th

  1. Pingback: fix my credit

  2. Bobby Walker says:

    Fantastic site, I really like your writing style. Very distinctive and easy to follow. On a lot of blogs people just drone on and on, but not you – very nice. Keep up the excellent work! I don’t have time to read all the articles right now, I found this site when looking for something else on Bing, but I’ve bookmarked your homepage and will check back soon to see what’s new. I have been researching home mortgage options myself for a few months. Any ideas for the best approach? Please take a look at my site at http://www.MortgageNewsman.com when you have a few minutes. Thanks again for a great web site.

    • dorsay says:

      Thank you , Bobby. I’m really happy to hear you found this valuable and interesting. Regarding home mortgage information of South Korea, Financial Services Commission (it’s the government body, in charge of financial policy making and so on) has recently strengthened DTI(Debt To Income Ratio) and LTV (Loan To Value) on the purpose of alleviating upsurge in the asset market. You can find related press release at http://www.fsc.go.kr/eng/index.jsp Thank you again Plus, I went to your website, and the topic was very interesting, I need to check your book at the store and read it. Also I bookmarked yours on my Google. 🙂

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: