Monday, March 03, 2003
TROUBLE ON THE HORIZON FOR THE SOUTH KOREAN ECONOMY? Roh Moo-hyun's new economic team speak of the threats posed by high oil prices and skyrocketing consumer debt.
The high levels of consumer debt is what South Koreans get for copying the behavior of many Americans. Will Korea be able to nip this problem in the bud before it becomes unmanageable?
With 11.2 percent of credit card bills reported overdue at the end of January, Mr. Kim said he and other economic officials were "worried about the side effects" of any measures that might artificially aid the economy.
The rate of overdue bills on credit cards, which have caught on as a national fad over the past two or three years, was up from 8.8 percent at the end of December. The risks are such that financial regulators have repeatedly urged banks to tighten the rules on individual loans, including mortgages.
Against the background of looming war in Iraq, the government offered a measure over the weekend to trim tariffs and other taxes on oil imports after the central bank forecast 5.5 percent growth this year, down from earlier estimates.
The high levels of consumer debt is what South Koreans get for copying the behavior of many Americans. Will Korea be able to nip this problem in the bud before it becomes unmanageable?
