S Koreans cash out stocks to cover jump in rental costs

[SEOUL] When Choi Jong Hyun found his 50 million won (S$58,400) annual salary wasn't enough to cover the 8 per cent jump in rent for his Seoul apartment, he decided to cut back on stock investments rather than take on debt.

"I would rather cash out the stocks I now hold and not pay additional interest," Mr Choi, 32, who works in the financial industry and has about 50 million won of investments, said last Tuesday.

Investors such as Mr Choi are exiting South Korea's stock market as rental costs climb to the highest level since at least 1986 and household debt rises to a record. Individuals sold a net 3.1 trillion won of shares last month, the most in nine months, while trading of Kospi index stocks fell to a six-year low, according to data compiled by Bloomberg.