articles : http://www.entrepreneur.com/tradejournals/article/132511164.html

http://www.freerepublic.com/focus/f-news/1828706/posts

According to the article, at the end of 2001, the price of real estate, especially that of apartment, has been skyrocketed in some metropolitan area of Seoul, South Korea. That area is called Gangnam district where many private institutes gathered. At that time, many people and some media said that students in Gangnam district were accepted to top colleges in Korea by far more than those living in other districts or cities. Although the information is not officially approved, many people thought that if they moved to Gangnam district, their children would be highly likely to go top colleges in Korea.

Since then, many people tried to move to Gangnam district. Because the supply was limited, the price of apartment in Gangnam had been raised much more than that of other districts. Therefore, the price of apartment was exactly tripled in about two years. This led people to fall in another information cascades that if they bought apartments in Gangnam district, not only would their children go to top colleges, but also they would make a lot more fortune due to increasing price of apartment. People didn’t actually confirm what they heard was true, and even people who didn’t have much fortune borrowed money from bank to buy apartment in Gangnam.

This trend had continued two more years, but in August of 2005, as mentioned in the article, president Roh announced a new policy to stop the price increase of apartments in Gangnam. Since then, the price has not been raised at all. Actually, the price dropped a little. This leads people, who bought apartment between the end of 2003 and 2005, got into a huge debt. And even worse, if the real estate bubble in Gangnam district would end, their debt would become even more. This kind of problem happens everyday in the world, because of huge amount of uncertain information people get. To prevent this, people should make their decisions not based on what they heard or on uncertain information, but on the certain information they get by themselves or that from trusted resources.