According to Business Week A Rising Tide in South Korea May Bring Rising Prices

"...South Korea seems to be one of the first economies to shake off the global downturn. But the nation might also be one of the first industrialized economies to confront price pressures..."

South Korea has been hailed in this column and others for several months as being the leader of a leading Asian pack in the forefront of global economic recovery. Yet now may well be the time to learn from history. South Korea has always led the pack on business costs as well, and Seoul remains one of the most expensive capital cities in Asian in which to do business along with Tokyo and Hong Kong, and Singapore and Beijing a little further back. It is a concern for economic stability, and for international competitiveness, while still remembering that it was only five years ago that South Korea was seen as a "basket case".

More from Business Week - "...Better growth prospects have raised worries about an overheating economy and price pressures. In February, yearly consumer inflation was just 2.6%, but Chon Chol Hwan, the central bank governor, is concerned that the rise in domestic demand, coupled with World Cup spending, could push up consumer prices. In addition, the won has fallen just over 5% against the U.S. dollar since November. If the weakness persists, import prices could rise later on..."