SOUTH KOREA: One year after telling business...

SOUTH KOREA: One year after telling business conglomerates to sell off idle land, the government issued an ultimatum last week saying those that do not comply will face a freeze on bank loans. The Economic Planning Board set a deadline of Wednesday to sell idle land or face a loan freeze or other punitive measures. On May 1, the government urged conglomerates to sell unnecessary real estate in a move aimed at stopping rampant land speculation. It asked them to invest funds instead in technical innovation and industrial development. Speculation has been subdued in the past year, but major business firms have refused to sell their land. Official figures were not given, but newspapers reported that more than 30 firms are defying the government’s demand.