South Korean Home Prices Plunge from 1.1 Billion to 600 Million Won

In some parts of South Korea, housing prices have seen dramatic declines, with properties that were once valued at 1.1 billion won now selling for as low as 600 million won. This represents a shocking drop of nearly 50% in value. Many of these homes were purchased at the market peak with heavy debt, often using maximum leverage. For homeowners who stretched their finances to the limit—sometimes described as borrowing 'down to the soul'—the crash has been financially devastating.

Analysts point to rising interest rates, tighter lending regulations, and a cooling real estate market as key reasons behind the sharp correction. This downturn is raising concerns about household debt, negative equity, and long-term impacts on the Korean economy.