Land prices drop for first time in two years

Nationwide land prices fell for the first time in two years, apparently affected by the economic slowdown.

According to a Ministry of Construction and Transportation-produced report, the nationwide average land price in the fourth quarter of last year dropped by 0.46% from the previous quarter. However, the change was an improvement from 1998, when the average land price fell by 13.6%. Reflecting the slumping economy, the land price decline was conspicuous in such big cities as Seoul, Pusan, Taegu, Inchon, Kwangju and other residential or commercial regions.

The average land price in Tong-gu, Pusan showed the biggest decrease rate of 2.56% while the price in Muan-gu, South Cholla Province marked the highest increase rate of 2.35%. The latter change was attributed to plans to build a Muan International Airport and to move the Office of South Cholla Province to the region.

Koo Ja-Ryong bonhong@donga.com