Builder Woes, Inflation Warning Signs Emerge Amid Korea Policy Tightening
• Recent issues with a financially troubled builder are a warning sign of risks from prolonged tightening.
• Managing inflation remains top priority but need right policy mix as Korea nears end of bringing down consumer prices.
• Cited doubts about commercial real estate loans integrity in major countries.
• Mid-sized local developer forced to restructure heavy debt another warning sign.
• Inflation eased in Dec to 3.2%, supporting BOK view that pressures will gradually ease towards 2% target by end 2024.