SEOUL, July 2 (Reuters) - South Korea's central bank believes the downward trend in housing prices is nearing its end, although it expects any rebound afterwards to be modest, minutes from its June 13 policy meeting showed on Tuesday.
An unspecified department of the Bank of Korea said in response to a question during the meeting that the 'housing price correction is seen as having entered into a concluding stage', on the basis of various indicators.
Housing prices across South Korea have slowed since jumping 11.6 percent in 2006 alone, curbed first by government regulations and then by shocks from the 2008-2009 global financial crisis, data from the top local mortgage lender shows.
In the country's most popular district of Gangnam in Seoul, apartment prices fell in four out of the past five years, losing a combined 5.6 percent, the data from Kookmin Bank shows.
Households are struggling under heavy mortgage loans, weighing on private consumption, which generates more than half of South Korea's annual gross domestic product (GDP).
South Korea's growth momentum remained subdued in June, key government and private-sector data showed on Monday, casting fresh doubts about whether the trade-dependent economy can stage a firm recovery in the coming months.
(Reporting by Choonsik Yoo; Editing by Kim Coghill) Keywords: KOREA ECONOMY/HOUSING
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