Land Assets Deflated by 250 Trillion won

The value of land assets deflated after the IMF bailout is assumed to be 250 trillion won, 59% of the GDP in Korea in 1997. Samsung Economy Institute (SET) analyzed, in a report about the decrease in assets value, that out of the 30% of GDP reduction 10.8% is influenced by assets deflation.
This report said, 'The price decrease rates in stock, house, and land are a 54.6%, a 11.8%, and 20.0% respectively. This decrease was influenced by 34% and by 14% reductions in consumption and unemployment respectively.' The report continued, 'The macro-economical situation will worsen in the short term but will become better in the long term. So, the possibility that decreases in assets value will bring about a deep depression is low.' The report added, 'If the restructuring moves are delayed, the breakdown of the industrial base and the additional decrease in assets may happen. It is necessary to improve liquidity of the assets market and deregulate the industry.'