SEOUL, SOUTH KOREA -- (Marketwired) -- 07/09/13 -- Jiju Club, a real estate consulting company, is offering an opportunity to purchase land in one of the priciest districts in the world in Gangnam in southern Seoul for no more than a month's salary.
Gangnam, made famous by the rapper Psy in his global hit song "Gangnam Style," is one of the most popular educational and commercial districts and sits at the center of the hearts of Koreans. Needless to say, land prices there are some of the highest in the country.
Yet, some 1,000 small-time investors are flocking in to get their share of the pie in Gangnam. Shared-investment is nothing new in these modern times but to purchase a sizable plot of land is not common.
The land on auction measures 68,433 square meters and the bidding at 5 billion won has not been successful on five occasions, pulling the price down to the 2-billion-won range. While the amount is more than any salaried worker can save in his or her lifetime, Jiju has come up with the idea of recruiting 1,000 investors.
Organizations which benefit from investing in real estate are generally confined to the government and large conglomerates. Large companies earn from purchasing this real estate and after developing the property, pay heavy taxes in favor of the government.
In the development of apartments, residential ratios soared by 70 percent in most major cities.
Jiju CEO Chung Han young said, "It is no easy task to recruit 1,000 investors. The cost of processing the documents can be enormous. However, with the advancement of the Internet, there is a new avenue for communication. This is why I believe our current project has possibilities."
For a start, Jiju is looking for investments of 2 million won each from each of the 1,000 persons. If the target is achieved, the consortium can immediately enter the bidding. This could prove to be a challenge to big hands in the real estate business who have had enormous privilege in the world of capitalism.
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