The Assembly passed a bill that will see the Korea National Housing Corp. and the Korea Land Corp merge to form a new public mega-corporation.
After a decade of debate, a new public mega-corporation will debut in October from the merger of the Korea National Housing Corp. with the Korea Land Corp.
The new corporation's assets will total 105 trillion won; higher than the 72.5 trillion won of the country's foremost outfit, Samsung Electronics.
According to the Ministry of Land, Transport and Maritime Affairs, the consolidation is expected to reduce the price of their newly built apartments by up to 3 percent.
Thus far, the two corporations have been accused of competing against each other in regional development projects causing higher prices for new state-built apartments.
However, the consolidated corporation will shoulder as much as 86 trillion won in liabilities and its debt ratio will soar to 440 percent.
Also, the matter in hand is where the new corporation will be headquartered.
The Korea Land Corp. pledged to move its head office to Jeonju, North Jeolla Province by 2011 while the Korea National Housing Corp. is set to move to Jinju, South Gyeongsang Province by then.
Since mammoth public corporation will debut, each region has been trying to attract companies that mega-corporation will be headquartered.