Wednesday August 02, 2006

Tough times ahead for South Korea

peakoil.com -> app.com :

Korea has long been a puzzle. With its high standard of living, work ethic and history of overcoming adversity, the nation of 48 million should be growing much faster - or at least getting more bang out of the growth it has. Instead, surging crude-oil prices and rising global interest rates are leaving Korea vulnerable.

Growth in some of Asia's biggest economies won't be enough to overcome three headwinds gaining in intensity. The first one is oil. The price of Dubai crude has jumped 27 percent this year, raising costs for consumers and businesses in nations like Korea that import almost all their oil. Rising interest rates are another headwind. In Washington, Frankfurt and even Tokyo, central banks are tapping on the brakes. The third headwind - the U.S. consumer - hasn't fully materialized, but its mere potential is weighing on Asian markets. For all the growth in China, India and, increasingly, Japan, U.S. demand still has a huge say in Asia's future.

peakoil.com -> koreaherald.co.kr :

South Korea's personal bankruptcy filings hit a record high in the first half of the year due to the ongoing economic slowdown and softened bankruptcy rules. The number of new personal bankruptcy cases approached 50,000 for the first six months, up some 260% from a year ago. Experts accused easier legal processes which prompt financially distressed debtors to seek voluntary bankruptcies at courts. Surging interest rates and a poor job market also fueled a rise in bankruptcy filings, industry watchers said.

(2006-08-02 07:54:45 SGT) [Biz] Permalink

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