In 1946, the North implemented land reforms by confiscating private property, Japanese and pro-Japanese owned facilities and factories, and placed them under state ownership. Demand for land reform in the South grew strong, and it was eventually enacted in June 1949. Koreans with large landholdings were obliged to divest most of their land. Approximately 40 percent of total farm households became small landowners. However, because preemptive rights were given to people who had ties with landowners before liberation, many pro-Japanese groups obtained or retained properties.