Prevention of Illegal Activities Such as Tax Evasion on Transfer Income of Self-Cultivated Farmland by Non-Agricultural Persons and Illegal Receipt of Public Interest Direct Payments

Yoon Jae-gap, Member of the National Assembly (Democratic Party of Korea, Haenam·Wando·Jindo)

Yoon Jae-gap, Member of the National Assembly (Democratic Party of Korea, Haenam·Wando·Jindo)

View original image


[Asia Economy Honam Reporting Headquarters Reporter Kim Hyun] Yoon Jae-gap, a member of the National Assembly's Agriculture, Forestry, Livestock, Food, and Maritime Affairs Committee (Democratic Party, Haenam·Wando·Jindo), announced on the 18th that he has taken the lead in proposing the first amendment to the Farmland Act, which mandates that all farmland owned by non-farmers be entrusted to the Korea Rural Community Corporation as part of the constitutional principle of Gyeongja-yujeon (the principle that only those who cultivate the land should own it).


Article 121 of our Constitution states that "The State shall endeavor to ensure that the principle of Gyeongja-yujeon is achieved with respect to farmland, and the tenancy system of farmland shall be prohibited," but the subordinate law, the Farmland Act, broadly allows exceptions.


Due to these exceptions, the ownership of farmland by non-farmers has continuously expanded, exceeding 50% of the total farmland, which has been criticized for undermining the meaning of Gyeongja-yujeon.


Given this situation, non-farmers have been causing innocent tenant farmers to suffer by not issuing 'lease contracts' to tenant farmers who actually engage in cultivation, in order to exploit capital gains tax reductions on self-cultivated farmland and fraudulently receive public interest direct payments.


In response, Assemblyman Yoon Jae-gap changed the current regulation, which only requires entrusting farmland exceeding 10,000㎡ owned by non-farmers to the Korea Rural Community Corporation, to mandate that all such farmland be entrusted, and that the farmland be leased to farmers, thereby fundamentally blocking illegal acts by non-farmers such as exploiting capital gains tax reductions.


Additionally, he mandated the annual disclosure of farmland ownership status by public officials of grade 4 or higher belonging to the Ministry of Agriculture, Food and Rural Affairs and the Rural Development Administration.


Assemblyman Yoon said, "Ownership of farmland by non-farmers leads to rising farmland prices, making it difficult for young farmers and returnees to acquire farmland," and added, "We are preparing a second amendment to completely block farmland ownership by non-farmers in the future."



He also added, "If the amendment passes, farmland will no longer be subject to speculation or wealth accumulation, and only farmers engaged in cultivation will be able to own farmland, thereby establishing the principle of Gyeongja-yujeon."


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

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.

Today’s Briefing