Thursday, May 30, 2013

Struggling Korean builders tell employees to show loyalty: buy apartments

Five years after the global financial crisis, South Korean construction workers are feeling the pinch more than ever as they shoulder a mountain of debt from a real estate bust that has cast a long shadow on the country's growth prospects.

Facing the specter of bankruptcy, some construction firms persuaded their staff to take up loans to mop up unsold apartments.

"There was pressure. There's nowhere else in the world where there's a parallel to these practices," said a construction worker, who declined to be identified due to the sensitivity of the matter.