Government to Reserve Land Worth 9 Trillion Won Through Land Bank Over Next 10 Years

Active Utilization of Land Banks in Urban Regeneration Projects and More

[Asia Economy Reporter Je Moon-won] The government plans to stockpile land worth 9 trillion won through a land bank over the next 10 years. It also plans to actively utilize the land bank in urban regeneration projects by improving the land bank system.

The Ministry of Land, Infrastructure and Transport announced on the 14th that it will hold a Public Land Stockpiling Deliberation Committee on the 15th to review and approve the "2nd Comprehensive Plan for Public Land Stockpiling," which contains the basic direction for land stockpiling over the next 10 years.

The public land stockpiling system is a system that purchases land in advance before land prices rise to supply land needed for public interest projects at an appropriate time and affordable price, and to promote stability in the land market.

The government established a land bank at Korea Land and Housing Corporation (LH) and stockpiled land worth about 2.3629 trillion won over 10 years from 2009 and supplied land worth 2.3494 trillion won.

The 2nd Comprehensive Plan for Public Land Stockpiling aims to establish a land stockpiling system that proactively responds to various social issues.

During this period, the demand for land stockpiling was estimated at a total of 402.8㎢ (an average of 40.3㎢ per year). This is a decrease of 36.7 to 49.7㎢ per year compared to the previous plan.

The land subject to stockpiling targeted undeveloped areas with development potential. The stockpiling goal was set at a realistically achievable level considering the stockpiling performance during the 1st plan period.

Over the next 10 years, the plan is to operate flexibly within a total range of 9 trillion won according to demand by stockpiling type. While the land bank secured funds through LH’s corporate bond issuance over the past 10 years, it plans to actively utilize private funds such as land bank reserves and REITs going forward.

Previously, public development land stockpiling was limited to land recognized as public interest projects under the Land Compensation Act, making it difficult to meet the proactive land stockpiling demand of public projects such as urban regeneration innovation districts.

Therefore, going forward, even projects not recognized as public interest projects, such as urban regeneration innovation district projects, can utilize the land bank if there is a need to support public projects and if smooth land acquisition and supply are possible.

In cases where companies need to sell land held for purposes such as corporate rehabilitation, the land bank will review whether it can supply the land to companies with demand and utilization potential, and related procedures will be prepared to enable 'land stockpiling for supply-demand adjustment.'

To this end, the government plans to promote amendments to the "Act on the Stockpiling of Public Land" in the 21st National Assembly.

Oh Seong-ik, Director of the Real Estate Development Policy Division at the Ministry of Land, Infrastructure and Transport, said, "During the plan period of the 2nd Comprehensive Plan for Public Land Stockpiling, we will promote diversification of the land bank’s roles and expansion of stockpiling targets," adding, "We will ensure that the land bank fulfills its original function of proactively stockpiling land and supplying it at the right place and time."

This content was produced with the assistance of AI translation services.