Thursday, July 12, 2007

Bank of Korea Governor Lee Says Small-Company Lending Is Rising Sharply

(Bloomberg) -- Bank of Korea Governor Lee Seong Tae
said lending to small enterprises is rising sharply, underlying
his concern that the funds are being used to fuel bubbles in the
stock and property markets.

Lee and his board colleagues increased the benchmark
interest rate by a quarter point to a six-year high of 4.75
percent yesterday, taking aim at record lending to small
companies that threatens to spur inflation. Bonds fell and the
Kospi stock index rose to a record.


Read more at Bloomberg Emerging Markets News

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