"Sell Mountains and Receive 10 Years of Pension Payments" Korea Forest Service, Purchase of Private Forests with Split Payment Option

Provided by Korea Forest Service

[Asia Economy (Daejeon) Reporter Jeong Il-woong] The Korea Forest Service plans to increase the scale of private forest purchases through an installment payment system.

According to the Korea Forest Service on the 28th, the installment payment system for private forest purchases differs from the existing lump-sum payment system, which pays the purchase price (appraised value) all at once, by dividing the purchase price into monthly payments over 10 years (120 months), similar to a pension.

The Korea Forest Service introduced this system last year and plans to increase the purchase budget this year to expand the volume of private forest acquisitions. This year's related budget is 4 billion KRW (purchase price basis 14.3 billion KRW), doubling last year's 2 billion KRW.

The installment payment system for private forest purchases is stable in that it provides forest owners with a fixed income over 10 years by utilizing privately owned assets, similar to agricultural land pensions and housing pensions.

In particular, by dividing the purchase price payments over a long period, there is the advantage of additionally receiving interest and land value appreciation beyond the purchase price.

The Korea Forest Service expects this system to be used as a new income-generating opportunity for forest owners.

Forest owners wishing to sell private forests through the installment payment system can refer to the related announcement posted on the Korea Forest Service website or visit the local national forest management office that has jurisdiction over the forest to be sold for procedural guidance.

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