Korea, which is the only real estate trading system in the world called Jensae, is experiencing confusion these days.The situation is as good as the other This system refers to living on a lease for two or four years with about 70-80% of the trading price as a deposit. This unique system was designed by the government and banks to stabilize housing policies by making low-interest loans of 70-80% of the amount of house transactions, which led to the creation of real estate conglomerates.
Companies that own 100 houses or as many as 500 houses in multi-family houses in some areas have increased the size of their real estate through Ecuity with funds they have borrowed. However, the problem is that it is time to return the money in this process, so the owner cannot rotate the other tenant, so the owner has to go bankrupt or pay the money through another tenant. Overpriced interest rates and excessive housing prices eventually led to disruptions.The owner of the building who received the money should of course be responsible but could not.Excessive profit-seeking eventually led to unaccountable disruptions. Can the Korean government overcome this situation? Real estate shows a decline of more than 30-40% by region, and loan interest is on a high rise. This eventually leads to poor real estate and bad credit for tenants.
On top of that, some large-scale manipulation groups of stock prices have led transactions (buying and selling among themselves) against KOSPI and KOSDAQ-listed companies over the years. It would not be possible without the support of these sources of funds and investors. This means that mid-sized companies and some famous celebrities were entrusted with transaction funds and everything necessary for transactions and took the initiative to manipulate them.It is estimated to be worth $750 million, and suddenly, companies subject to important stocks suffered a plunge in stock prices.However, there are representatives of securities firms and companies that sold large stocks before the crisis. Who are the people and companies that led this chaotic situation, and the seriousness of the situation
I’m worried. Can this happen in a country near the G7, an IT powerhouse, a semiconductor powerhouse, an economic powerhouse with 50 million people, and the world’s fifth-largest exporter?
Currently, the national government is also suffering from budget difficulties for small and medium-sized enterprises.
Chang Young Choi
US ASIA JOURNAL
