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Higher inflation rates in South Korea present a favourable opportunity for financing due to the impact of inflation on purchasing power. Inflation diminishes the value
Higher inflation rates in South Korea present a favourable opportunity for financing due to the impact of inflation on purchasing power. Inflation diminishes the value of cash, prompting consumers to spend and invest in items that retain their value over time. Additionally, inflation reduces the real value of borrowed money, benefiting borrowers, while also leading to increased demand for credit and subsequently higher interest rates, which benefits lenders. This dynamic can result in increased net interest income for banks and potentially higher stock prices for investors in markets affected by inflation, such as energy companies
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