Thursday, Jul 23, 2009
Would never happen here
Bloomberg: South Korea may act to cool property market
South Korea may act within “two to three weeks” to cool property-market speculation after gains in house prices, government minister Chung Jong Hwan said. The government “sees speculative demand in some areas and we won’t allow it,” Chung said.
The central bank is monitoring a “big” increase in mortgage lending and a pickup in real-estate prices, Bank of Korea Governor Lee Seong Tae said. Record-low interest rates that are stoking the nation’s economic recovery may also inflate property-price bubbles.
“The government is afraid excessive idle money is flowing into the property market, driven by record-low rates,”
Posted by little professor @ 08:55 AM (427 views) Add Comment
4 Comments
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1. inbreda said...
wow! Makes our politicians look like they were asleep (/dead) at the wheel. Fancy recognising a problem early on and reacting to it within 2 to 3 weeks. It took the government months of "nobody could have seen this coming" before they had a clue what to do with northern rock. What an incompetent bunch of fools we have in power.
Mind you - didn't the SK politicians have a punch up recently?
2. peter_2008 said...
Nooooo, don't stop HPI. In Britain we had a 7% quarterly jump in middle of the biggest recession in 60 years. And our communist government think that's NOT good enough, so they are pumping more money! Koreans should do it, too. Let's blow outselves up financially together.
3. timmy t said...
We put together a task force 5 years after the horse has bolted to consider policy options. Korea act within 3 weeks. Typical.
4. mark wadsworth said...
All they have to do is copy what Taiwan, Singapore, Hong Kong and (in happier times) Japan do and introduce Land Value Tax in one form or other. It would act like a high interest rate on property prices WITHOUT increasing the interest rate paid by productive investment.