Korea raises reserve ratios

Korea's central bank will raise reserve requirements on short-term deposits by 40% next month, the governor, Lee Seong-tae, announced on Thursday.

The Bank of Korea said that as of 23 December the proportion of short-term deposits that financial institutions will be required to put aside will be raised from 5% to 7%. The move is the first change in this policy in 16 years.

The move comes amid fears the effect of surging property prices could have on the economy, though the governor stressed th