Housing finance in the Korean economy

INFORMATION WAS DERIVED FROM A STUDY CONDUCTED IN 1976 BY PRATT ASSOCIATES UNDER THE AUSPICES OF THE OFFICE OF HOUSING OF A.I.D. IT PROVIDES PRELIMINARY RECOMMENDATIONS FOR ACTION FOR THE AREAS IMPORTANT FOR HOUSING FINANCE. FEW COUNTRIES CAN MATCH THE HIGH RATE OF GROWTH OF THE STRONG HOUSING FINANCE SYSTEM WHICH HAS OCCURRED IN KOREA DURING THE LAST 15 YEARS. THE FACTORS IN THE ECONOMY OF KOREA WHICH HAVE CONTRIBUTED TO THIS GROWTH ARE POPULATION GROWTH AND GNP, INFLATION, PRIVATE SAVINGS, AND CAPITAL INVESTMENT. THE STUDY ASSESSES THE ROLE OF INTEREST RATES IN THE ECONOMY AND IN THE HOUSING FINANCE MARKET, AND IT EXPLORES PROBLEMS IN SETTING AND ADMINISTERING INTEREST RATES. IT DISCUSSES THE FINANCIAL SYSTEM, THE KOREAN HOUSING BANK (KHB), AND THE KOREAN NATIONAL HOUSING CORPORATION (KNHC). IT ALSO ASSESSES THE ROLES OF THE BANK OF KOREA, SPECIAL BANKS, COMMERCIAL BANKS, AND MORTGAGE LENDING, AND IT PRESENTS SUCH FACETS OF THE KHB AS DEPOSITS, NATIONAL HOUSING FUNDS, AND THE HOUSING LOTTERY. THE SOURCES AND USES OF THE FUNDS OF THE KNHC ARE EXAMINED. IN THE ECONOMY OF KOREA THERE IS A WELL-DEVELOPED GOVERNMENTAL SYSTEM FOR PLANNING AND MONITORING ECONOMIC GROWTH. THE ECONOMIC PLANNING BUREAU HAS DEVELOPED A FOURTH FIVE-YEAR PLAN FOR THE PERIOD EXTENDING FROM 1976 THROUGH 1981. THIS REPORT REVIEWS THE ROLE OF HOUSING FINANCE IN THIS PLAN. TABLES PRESENT INFORMATION ON MAJOR POINTS OF THE STUDY, AND APPENDICES SUMMARIZE SUCH AREAS IN THE HOUSING FINANCE PROGRAM AS THE RAISING OF HOUSING FUNDS AND THE HOUSING FINANCE SYSTEM.