South Korea looks like it may be the next US, with a credit crunch looming and a property bubble nearing record size. Sluggish home sales have been recorded for yet another quarter, and a general economic downturn has pushed property developers, builders and related professions to the brink of bankruptcy. All this means the debt repayment capabilities of mortgagees has lowered, in a nearly identical situation to the US.
The Monetary Policy Committee of South Koreas central bank acknowledged the slowdown in its decision to leave interest rates unchanged for a 10th consecutive month. It said The domestic economy exhibits signs of a slowdown in its pace of expansion. While exports continue to post robust growth, domestic demand has slackened. There still remains a high degree of uncertainty surrounding future economic developments, largely due to the run-up in international oil prices, the international financial market unrest and the US economic slowdown. Consumer price inflation has picked up its pace, mainly influenced by high oil prices. The upward trend of real estate prices has slowed down somewhat. Liquidity is still ample in the financial markets and financial institutions lending continues to show a steady increase. Meanwhile, long-term market interest rates have shown a sharp rise.
This does not bode well for South Koreas mortgage holders - the Hyundai Research Institute has said that the slump will only put more downward pressure on house prices, and debt default rates will rise. Construction firms will be negatively impacted, and lending institutions will also post sharp losses, it is expected. It is sounding frighteningly similar to the situation in the US, which is being echoed in China and spoken of in Hong Kong.
Many apartments and property is remaining unsold, as the South Korea property market stagnates. There has been a sharp rise in unsold apartments, and general economic growth looks uncertain for the region. These trends are being taken as a benchmark and general indication of what is happening elsewhere in the Far East. Construction firms, banks an mortgagees across the region will suffer as the slump gains momentum.
The bubble began when there was a wave of house sales across the country, buying reached a fevered peak and prices were pushed up considerably. Seouls financial district, Yoido, saw the bubble grow from a particularly close vantage point. However, around a year ago, buyers and sellers starting becoming rare, until recently, there has been almost a standstill in real estate transactions.
This economic downturn is amidst political turmoil in the country, with mass protests nationwide in June, commemorating the June Struggle of 1987, where the military dictatorship was ended and democracy was brought to the country. These protests aim to bring down the current right-wing president, and instill real-life reform into the nation. These struggles and protests only serve to heighten worry about South Koreas property market and mortgage market.
Things To See On Your Holidays In South Korea
By: Andrew Gibson
Yet another country in the East Asia, South Korea is the other half of North Korea. It has been divided with the Demilitarized zone and remains as popular as it did before. There are thousands of tourists who throng to visit this place, since they are curious to know more and wish to learn about the differences between the countries.
People who are obsessed with nature, and make sure to not affect their surroundings, South Koreans are very humble and down to earth. They make sure everyone is comfortable and then take care of their own needs, being self less at times.
When visiting South korea on a holiday, make sure to keep this list of five things ready on hand, so you don't miss out on the must see sights that this beautiful country has in store.
Gangwon is said to be the most popular destination by the Korean government and it is located in the central region in South Korea. Nearly 3/4th of the land is mountainous, and it has two regions each with its own identity. The Eastern runs along the coast, while the western faces Seoul and southern part is the inlands. This is where one begins their climb on the Diamond Mountains and to the Mt Baekdusan which lies in North Korea. This place is beautiful in winter, with snow covering the mountains and there is white snow everywhere.
Seongnamsa is a temple that should be visited and it is regarded a masterpiece. A walk along the 800 meter stone path leads to the park entrance and thereon to the temple. Once you reach there, take a minute to admire the pagoda at the top of the temple, and the various bamboo trees around it.
The Korean folk village is situated on the banks of the river and is a quiet place where the locals go about their daily routine. This is a place that gives the visitors the chance to be part of the locals and learn their way of life. Cooking, gardening, local traditions are all displayed by those who live here. There are parades, dance performaces apart from all this, which makes it more fun for families, especially with kids.
Dodong Mineral Spring park is another popular tourist destination. To catch the beautiful sunset and become one with nature, it is best to come to this mineral spring park. The geysers and the park are a visual treat for anyone coming here. There are stories surrounding this park that if one where to drink the water from this mineral spring, it could cure their ailments, since it has medicinal benefits as well.
The most beautiful place in all of Seoul, Gyeongbokgung is the grandest palace around. It has been around for nearly 300 years, and there are English tours conducted around this place for interested tourists.
