ABSTRACT
Since the 1960s, Korea has implemented an economic policy which aimed at giving prior investment opportunities to the export industry to enable high real-production within a short period of time. Although this policy enabled Korea to achieve high economic growth within a short period of time, investment in the housing sector was neglected and insufficient (Hah, 1991). The reason was because the investment for it took a relatively long time in capital return and did not induce the growth of productivity directly. As seen in Table 10.1, the housing investment ratio to GNP for the five year period was 5 per cent, less than 6 per cent indicated by the UN, and the figure was relatively low in comparison to the economic strength, housing supply ratio and of the household growth rate of Korea. The trends of housing investment (1983–87) https://www.niso.org/standards/z39-96/ns/oasis-exchange/table">
1983
1984
1985
1986
1987
Housing investment (in billion won * )
3,702
2,398
3,431
3,987
4,351
Ratio to GNP (%)
5.5
4.7
4.4
4.5
4.4
800 won is equivalent to about 1 US$.
Source: Lee, 1992, p. 2.