Many Companies Eager to Sell Real Estate Holdings
Many Korean companies, regardless of their size, are very eager to sell their real estate holdings to the government-owned Korea Land Cooperation (KOLAND).These companies are making inquiries of KOLAND officials and sending their employees to gather as much information on their competitors' moves.
They are rushing to sell their property and land because KOLAND's program to buy companies' real estate will end March 24 after starting on March 11. The program was initiated to allow companies to sell properties in a depressed real estate market to the government corporation for badly needed capital
A surge of sales is expected by companies who need capital injections to remain competitive, and because KOLAND is paying cash for properties in a lump sum payment. Koland's total budget for the program, however, is only about 400 million dollars.
Companies have set up departments to handle the assessment of real estate holdings, in terms of suitability and value, to be sold.
A source at KOLAND said, 'The number of real estate holdings that companies desire to sell is more than 300,000. This reveals that domestic companies still suffer from a shortage of operation money as well as management difficulties.'
with the Korea JoongAng Daily
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