SEOUL, Sept. 3 (Yonhap) — South Korea’s finance minister said Sunday that the country should not experience any direct repercussions from the current woes of the Chinese real estate market. Choo Kyung-ho stated on a television program that domestic financial institutions had taken a precautionary approach to investing in Chinese property developers and had invested very little money in them.
The South Korean government is keeping an eye on various economic indicators as China is anticipated to announce measures to address the real estate crisis. Real estate makes up roughly 30 percent of China’s gross domestic product, making it the second-largest contributor to the world’s second-largest economy after the United States.
The Chinese property sector is deteriorating, with new home sales dropping, Evergrande Group filing for bankruptcy in the U.S., and Country Garden possibly defaulting on its debts.
This undated file photo provided by the Ministry of Strategy and Finance shows Finance Minister Choo Kyung-ho. (PHOTO NOT FOR SALE) (Yonhap)
kyongae.choi@yna.co.kr
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