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Moon Jae-in must deal with South Korea's housing bubble now

Household debt has ballooned and prices from Seoul to Busan have rocketed

| South Korea
Why has Moon been reluctant to act forcefully?   © Reuters

While the U.S.-China trade war is hitting South Korea's economic growth, President Moon Jae-in's biggest problem is at home: the country's soaring housing market and all the risks that a bubble in the sector brings.

On January 14, Moon said his government will act "endlessly" to calm the housing market. That includes new taxes, limits on mortgage lending and safeguards against speculators hoarding multiple properties. But execution has not been Moon's strong suit these last three years and he will need to overturn decades of Korean policy-making to do so.

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