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South Korea to spare non-speculative farmland from disposal after nationwide survey

🇰🇷 South Korea, Sejong 04:22 Policy & regulation Business12 Official updated 2 d ago first reported by 한국경제

Version 2: A further outlet reported that the briefing was held in the morning, that facilities banned in agricultural promotion zones or under other laws are excluded from the legalisation period, and that the Farmland Bank's purchase and entrustment scope will be widened.

In short

South Korea's Ministry of Agriculture, Food and Rural Affairs said on 8 October that Farmland Act violations found in its nationwide farmland survey will not lead to disposal orders or enforcement fines unless they involve speculation. Five types of land, including inherited farmland and plots held by elderly farmers, are to be exempted through a special act that the ministry and the Democratic Party plan to submit this month and pass by December, with a special period to legalise customary leases and unpermitted facilities.

Read the full story 2 min read

South Korea's Ministry of Agriculture, Food and Rural Affairs said on 8 October that it will not order the disposal of farmland or impose enforcement fines over non-speculative Farmland Act violations found in its nationwide farmland survey. Minister Song Mi-ryung (송미령) told a morning briefing at the ministry's press room in the Government Complex Sejong that the government will pursue a special act so that, unless speculation is involved, the survey results do not lead to disposal obligations or enforcement fines. She said that even where the survey finds conditions that do not match the Farmland Act, a special law taking precedence over that act would stop them from leading to disposal. [ 3 , 4 , 5 , 7 , 9 ]

Five categories are exempted: inherited farmland; land of elderly farmers and customary leases; land with complex ownership, such as clan, temple or unregistered inherited land; landlocked or hard-to-farm plots; and unpermitted facilities such as farm warehouses. Hankook Ilbo reported that inherited land will not be disposed of even if it is fallow or exceeds the ownership cap, and that unpermitted farm warehouses and farmers' houses will not have to be restored. Korea Economic Daily reported that the plots are not being removed from the survey itself. [ 4 , 5 , 7 , 9 ]

Clearly speculative cases are excluded from the relief. Hankook Ilbo and CBS NoCut News listed them as land bought in land-transaction permit zones with a farming plan (inheritance excepted) and then left idle or leased, shares in farmland bought at auction with false farming plans for resale, and farmland bought through agricultural corporations and split for sale or lease. Song said such land will be decided on under the current Farmland Act after owners are given sufficient opportunity to explain. [ 4 , 5 , 9 ]

Entrusting land to the Farmland Bank (농지은행) will not be mandatory. Song said such general cases will not go through disposal procedures regardless of entrustment, and that farmers may choose to lease or sell through the bank if they wish. Chosun Ilbo said this steps back from the earlier policy, under which disposal of minor violations was to be deferred if management was entrusted to the bank, and followed continued fears among farmers over the word 'deferral' after the 21 September party-government consultation. Chosun Ilbo reported controversy over claims that the government wanted to take farmers' land, while Hankook Ilbo said public opinion on the survey had worsened sharply. [ 3 , 4 , 5 , 6 , 7 , 9 ]

A special period will let customary leases, unpermitted facilities and land whose registered category differs from its actual use be brought into compliance; CBS NoCut News reported that facilities banned in agricultural promotion zones or not allowed under other laws are excluded. Hankook Ilbo reported that customary leases will be recognised if written contracts are signed, and the Farmland Bank's purchase scope will be widened. The ministry and the Democratic Party plan to submit the special act this month and complete parliamentary procedures by December, though Korea Economic Daily noted that the scope and requirements may change. [ 4 , 5 , 7 , 9 ]

Why it matters

The step changes the earlier approach, under which disposal was to be deferred, into a decision not to dispose of non-speculative plots, and makes entrusting land to the Farmland Bank optional. Outlets linked it to a backlash among farmers who feared the survey would be used to take their land. Clearly speculative holdings remain subject to the existing Farmland Act.

Key facts

  • Minister Song Mi-ryung (송미령) said at a briefing in Sejong on 8 October that non-speculative cases found in the farmland survey will not lead to disposal orders or enforcement fines. [ 4 , 7 , 9 ]
  • Five categories are exempted: inherited farmland; farmland of elderly farmers and customary leases; land with complex ownership such as clan, temple or unregistered inherited land; landlocked or hard-to-farm plots; and unpermitted facilities such as farm warehouses. [ 4 , 5 , 7 ]
  • The exemption is to be made through a special act that takes precedence over the Farmland Act. [ 4 , 5 , 7 , 9 ]
  • Entrusting land to the Farmland Bank (농지은행) will not be mandatory; farmers may lease or sell through it if they wish. [ 4 , 5 , 6 , 7 , 9 ]
  • Clearly speculative cases, such as land bought with false farming plans and left idle or leased, will still be handled under the current Farmland Act after owners are given a chance to explain. [ 4 , 5 , 9 ]
  • A special period will let customary leases, unpermitted facilities and land whose registered category differs from its actual use be brought into compliance. [ 5 , 9 ]
  • The ministry and the Democratic Party plan to submit the special act this month and complete parliamentary procedures by December. [ 4 , 7 ]

Confirmed by several sources

  • Non-speculative Farmland Act violations found in the survey will not lead to disposal orders or enforcement fines. [ 3 , 4 , 5 , 6 , 7 , 9 ]
  • Inherited farmland, elderly farmers' land and customary leases are among the exempted categories. [ 4 , 5 , 6 , 7 , 9 ]
  • Entrusting land to the Farmland Bank is optional, and not doing so will not trigger disposal. [ 4 , 5 , 6 , 7 , 9 ]
  • A special act is to be submitted this month, with parliamentary procedures to be completed by December. [ 4 , 5 , 7 ]
  • Clearly speculative holdings will still be dealt with under the current Farmland Act. [ 4 , 5 , 9 ]
  • Customary leases, unpermitted facilities and land whose registered category differs from its actual use can be legalised during a special period. [ 5 , 9 ]
  • The Farmland Bank's purchase scope will be widened. [ 5 , 9 ]

Still unclear

  • Which plots and conditions will finally qualify for the exemption. Korea Economic Daily reported that the specific scope and requirements may change during the legislative process.
  • Whether the special act will pass by December as planned. The bill has not yet been submitted; the timetable is a government and ruling-party target.
  • A budget increase next year to clear the Farmland Bank's backlog of land awaiting purchase. Reported only by Hankook Ilbo; the increase is still to be discussed with the National Assembly.
  • A revision of the Farmland Act in the first half of next year. Reported only by Hankook Ilbo.

What local media are saying

Business mediaBusiness outlets ran the decision as breaking news, listing the exempted categories and quoting Minister Song; Chosun Ilbo framed it as a retreat from the earlier deferral policy after farmers' fears, Hankook Ilbo tied it to worsening public opinion on the survey, and Hankook Ilbo and CBS NoCut News detailed the speculation exceptions and legalisation measures. [ 3 , 4 , 5 , 6 , 7 , 9 ]

Timeline, local time

  1. Chosun Ilbo reports the ministry will not sanction minor, non-speculative Farmland Act violations. [ 3 ]
  2. Korea Economic Daily reports the five categories excluded from survey-based disposal and quotes Minister Song. [ 4 ]
  3. Hankook Ilbo reports the follow-up measures, including speculation exceptions and plans to legalise customary leases. [ 5 ]
  4. Seoul Economic Daily reports Song's briefing at the Government Complex Sejong. [ 7 ]
  5. CBS NoCut News reports the special act and details of the legalisation period and Farmland Bank changes. [ 9 ]