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SOUTH KOREA: Rise in Mortgages Troubling for BOK.

SOUTH KOREA
  • The BOK minutes released saw the policy board members expressing their ongoing concern for home prices in Seoul and the accumulated household debt correlated.
  • Today’s Bank Lending to Households showed mortgage loans have increased by a record in August.
  • Likely representative of the strength in manufacturing, loans to companies increased by KRW7.2tn month on month to CNY1,311.9tn in August.
  • Today’s data will continue to feed the concern from those voting members of the BOK who reiterate their concerns as to the rapid rise in Seoul property prices and the run up in debt associated with that. 

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