SEOUL, Oct. 22 (Xinhua) -- The South Korean government has announced its 5 trillion won (3.76 billion dollars) bailout plan to be spent to purchase idle land and unsold homes from liquidity-squeezed builders, the Korea Herald reported on Wednesday.

    "The risk in the housing and construction market is intensifying due to contraction of the housing demand and liquidity crunch in the construction sector," the government said in a statement.

    To relieve the serious conditions local builders face, the government said it will use 3 trillion won (2.56 billion U.S. dollars) to buy idle land at below-market prices and other 2 trillion won (1.54 billion U.S. dollars) to purchase unsold houses from financially-strapped firms.

    The measures also include eased rules on home-backed loans, provision of liquidity to cash-strapped builders and lifting some speculation-prone zones where real estate trading is being restricted to cool the overheating market.

    The rescue measures were devised jointly by the Ministry of Strategy and Finance, the Ministry of Land, Transport and Maritime Affairs, and the Financial Services Commission and are the first of its kind undertaken by the government in over a decade.

    In 1998, when the country was still suffering from the aftermath of Asian financial crisis, the government spent 2.6 trillion won (1.96 billion U.S. dollars) in a similar move.