The impact has been seen in the debt binge by South Korean households, which boosted borrowing from banks by a net 9.32 trillion won ($8.83 billion) during the August-September period mainly to buy homes, central bank data showed. The debt build-up is the most since the November-December period of 2006.
Home purchases and retail sales have grown sharply since August, with the pickup aided by two interest rate cuts, widely seen to have been made under pressure from the government.
"The broad view (in June when Choi was nominated) was the global economy would be doing fine although domestic demand was lagging behind, but the situation has changed sharply by now as we just saw from the GDP data," said Oh Suk-tae, economist at SG Securities in Seoul.
More @ Reuters
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