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Korea Household Debt Rises Most In Decade On Easier Loans

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South Korea is interesting as their main housing rental system, joensae, is not functioning properly now interest rates are dropping. In Joensae a tenant puts down 'key money' of say 80-150k then pays very small rent, say 300pcm. When you move out you get your key money back. The vast majority of people rent this way and it works for the property owners (massive corporations) because they invest the key money and build new housing projects etc with it. However with low interest rates it isn't paying so the owners aren't interested in the key money and want higher rents instead, therefore people have less spare cash each month to spend as rent is high.

I'm in South Korea now staying with sisyer in law's family and the housing market here is equally mental as the uk. Either you have big money in the family to put down say 100k plus or you don't much more than a shoebox, end of. Pretty much like the south of england then.

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They're also trashing the won in a desperate effort to stay competitive with the Keynesian mentalists in Japan, adding to the avalanche of industrial deflation sweeping round the world and setting the stage for the next pan-Asia currency war.

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