Korea's Next Credit Boom—and Bust?

Economists express serious concerns over Korea’s aggregate total household debt, which has reached US$618 billion or 5.4% higher from the same period in 2008. Much of the debt is property related but credit card defaults are as worrisome as well. By next year, the government is likely to increase interest rates since the economy is fairly better now compared to how it was earlier this year. Economists are worried on the ill-effects higher interest rates will have on consumers, who will pay more for the loans they have acquired during the time the central bank imposed tighter monetary policy.