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> One reason landlords like the system is because they can daisy-chain the purchase of multiple properties. They take the first cheonsae deposit and use it to p
by koolba 5y ago
> One reason landlords like the system is because they can daisy-chain the purchase of multiple properties. They take the first cheonsae deposit and use it to purchase another property, then use the cheonsae deposit from the 2nd property to purchase a 3rd property, and so on...
That sounds like it’d be a disaster during a liquidity crunch.
- acchow 5y agoIt becomes a too-big-to-fail system, with the government stepping in as needed (implicit subsidy).
- sam0x17 5y agoHow even would the government step in with it being landlord to landlord like that though? It's not centralized in any way.
- mywittyname 5y agoBuying the assets for enough to cover the landlord's debts. then liquidate the assets for market value. The government could even just hold the assets themselves.
- anm89 5y agoKorea is an economic experiment of monstrous proportions in many ways. There are a lot of risks that are specific to their system buy it feel like even if the whole thing massively blew up at this point that the average Korean would be better off than if they had never taken the risks.
- azth 5y agoThis is the natural outcome of building an economy based on usury/interest, which is exactly what this transaction is.