The article begins with a short exemplar of shortage of labor to fulfill the drastically increased amount of demand of interior design. This provides a thorough outlook of the growth of Korean economy over the past three years, as home decoration is a type of luxury, which one would most probably not order when he/ she is having economic problems.
However this does not interpret the entire economical situation over Korea, because although Busan is one of the most populated cities, the circumstances are totally dissimilar in Seoul, the capital city.
Usually a single apartment room that is approximately around 100 square meters in Busan will cost 0.2 Billion Won or a little higher than it to purchase. However houses of the same size in Seoul or regions nearby the capital would cost more than 0.25 Billion Won to rent in deposit basis. A house that is smaller than 100 square meters would cost approximately 0.6 billion won to purchase. Thus the citizens living in Busan are relatively less pressurized to buy a house and decorate it.
Moreover, to state the obvious, gross domestic product increase does not reflect every aspect of economic positivity. Some businesses that treat industrial products such as phones, cars, etc., that are usually exported to the international market, which Korea owns above 35% of the share in the Ship market and are keeping up sales in miscellaneous other machinery products still maintain or are having increased profit every year, since demands for such items are consistent as of now. However not all businesses are facing benefits, but crises that might shut them down. Gigantic firms are dominating the markets, eventually making medium/ small sized companies to exit the market or either become absorbed to them. Moreover the consumer confidence is low on most products as well, since most people are actually indebted in a huge amount of money, burdening them greatly. Thus, in conclusion, the economy in Korea is a growth but not everyone is benefitting from this improvement. If the article focused more on the other areas, not only on grandiose companies such as Hyundai, the details would have been more reflective of the actual situation.
Original Article:
http://www.ft.com/cms/s/0/4a7c74aa-83cf-11e3-aa65-00144feab7de.html#axzz2tWCXk6xq
However this does not interpret the entire economical situation over Korea, because although Busan is one of the most populated cities, the circumstances are totally dissimilar in Seoul, the capital city.
Usually a single apartment room that is approximately around 100 square meters in Busan will cost 0.2 Billion Won or a little higher than it to purchase. However houses of the same size in Seoul or regions nearby the capital would cost more than 0.25 Billion Won to rent in deposit basis. A house that is smaller than 100 square meters would cost approximately 0.6 billion won to purchase. Thus the citizens living in Busan are relatively less pressurized to buy a house and decorate it.
Moreover, to state the obvious, gross domestic product increase does not reflect every aspect of economic positivity. Some businesses that treat industrial products such as phones, cars, etc., that are usually exported to the international market, which Korea owns above 35% of the share in the Ship market and are keeping up sales in miscellaneous other machinery products still maintain or are having increased profit every year, since demands for such items are consistent as of now. However not all businesses are facing benefits, but crises that might shut them down. Gigantic firms are dominating the markets, eventually making medium/ small sized companies to exit the market or either become absorbed to them. Moreover the consumer confidence is low on most products as well, since most people are actually indebted in a huge amount of money, burdening them greatly. Thus, in conclusion, the economy in Korea is a growth but not everyone is benefitting from this improvement. If the article focused more on the other areas, not only on grandiose companies such as Hyundai, the details would have been more reflective of the actual situation.
Original Article:
http://www.ft.com/cms/s/0/4a7c74aa-83cf-11e3-aa65-00144feab7de.html#axzz2tWCXk6xq
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