Appendix Q3.1: Borrowing costs, exchange rates and expected appreciation of currencies Table 5: Borrowing costs Initial investment (KRW) 160,000 Interest rate in UK (5-year loan) 8% per annum Interest rate in South Korea (5-year loan) 16% per annum Interest rate in France (5-year loan) 10% per annum Spot exchange rate: KRW per GBP 1,600.00 Expected appreciation of GBP in relation to KRW 5% per annum Spot exchange rate: EUR per GBP 1.20 Expected appreciation of GBP in relation to EUR 3% per annum