Restrictions on Farmland Acquisition and Forced Disposal for Speculative Purposes... Strengthened Regulations

Ministry of Agriculture, Food and Rural Affairs Announces 'Three Anti-Speculation Laws' Including Farmland Act

[Sejong=Asia Economy Reporter Moon Chaeseok] The 'Three Acts to Prevent Farmland Speculation,' which restricts the acquisition of farmland for weekend farming purposes and increases the amount of enforcement fines, were promulgated on the 17th.

The Ministry of Agriculture, Food and Rural Affairs announced that three amended laws?the Farmland Act, the Act on the Promotion and Support of Agricultural and Fishery Management Entities (Agricultural and Fishery Management Entities Act), and the Korea Rural Community Corporation and Farmland Management Fund Act (Rural Community Corporation Act)?will be promulgated on the 17th.

Accordingly, acquiring farmland within agricultural promotion areas for weekend or experiential farming purposes will be restricted. A rapid compulsory disposition procedure will be established for farmland acquired for speculative purposes. Agricultural corporations that obtain farmland acquisition qualification certificates through false or fraudulent means or engage in real estate businesses not permitted by law will be immediately ordered to dispose of the farmland without a one-year mandatory disposition period. If the disposal order is not followed, the basis for calculating the annual enforcement fine will be changed from the current official land price to the higher value between the official land price and the appraisal value. The fine rate has also been raised from 20% to 25%.

Regulations on illegal brokerage have also been strengthened. Acts of recommending or brokering farmland illegal acquisition or lease violations despite knowing the facts, as well as advertising by brokerage offices, are prohibited. Violators will face imprisonment for up to three years or fines of up to 30 million KRW. If a farmland acquisition qualification certificate is obtained by false or other fraudulent means for the purpose of violating the Farmland Act, the fine will be increased from the current maximum of 50 million KRW to an amount corresponding to the land value based on the individual official land price of the relevant land. Fines for illegal entrusted management or leasing will be raised from the current maximum of 10 million KRW to 20 million KRW. These amended laws will take effect immediately from the date of promulgation.

Systems to strengthen farmland acquisition procedures and management of agricultural corporations will be implemented nine months or one year after promulgation, following preparations such as the establishment of subordinate statutes. From May 18 next year, the mandatory items in agricultural management plans must be expanded and submission of supporting documents will be required when acquiring farmland. Even for weekend or experiential farming, a plan must be submitted.

Local governments' on-site regulations will also be strengthened. From August 18 next year, local governments will establish farmland committees. When acquiring farmland in areas with speculation concerns, review by the farmland committee will be mandatory. The farmland lease reporting system, prior reporting system for agricultural corporations, and imposition of fines on agricultural corporations engaged in real estate businesses will be implemented one year later. The Rural Community Corporation will establish farmland bank managers to investigate, analyze, and manage farmland usage situations to support local governments' farmland management tasks.

A Ministry of Agriculture, Food and Rural Affairs official said, "We have strengthened the institutional framework to suppress farmland speculation from acquisition to post-management and sanctions," adding, "We will do our best to ensure that necessary measures such as subordinate law amendments are carried out smoothly so that farmland can regain its original function as an agricultural production factor."

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