"Simultaneous Farmland Purchase and Mortgage Setting Possible"… Gyeonggi-do Changes Guidelines

Gyeonggi Province announced on the 16th that it has revised the Agricultural and Rural Development Fund implementation guidelines to allow agricultural land purchased by young startup farmers and other farmers to be used as collateral immediately upon purchase, thereby reducing the burden of purchasing farmland.

Gyeonggi Province provides loan support for operating funds and facility funds through the Gyeonggi Agricultural and Rural Development Fund to improve the income and competitiveness of farmers and fishermen.

Facility funds can be used for various purposes, including farmland purchase, facility modernization and automation, and livestock stocking, with low-interest loans at 1% per annum up to 300 million KRW for individual farmers and fishermen, and up to 500 million KRW for agricultural corporations.

However, only youth aged 18 to under 40 are eligible for a 5-year grace period followed by 10 years of equal repayment.

Gyeonggi Province is accepting applications through city and county offices until the 28th, plans to finalize the recipients in May, and will begin providing loan support thereafter.

Among these, Gyeonggi Province has amended the implementation guidelines for the agricultural and fishery facility fund support project to allow collateral to be set on the farmland simultaneously with its purchase.

Gyeonggi Provincial Government

Previously, when purchasing farmland using the fund, collateral setting was limited to real estate and credit loans guaranteed by the Agricultural, Forestry and Fisheries Credit Guarantee Fund (NongShinBo), making it difficult for young farmers with small asset sizes to purchase farmland and start their businesses due to collateral capacity limitations.

Gyeonggi Province expects that this guideline revision will simplify the loan process and enable farmers to proceed with farmland purchases more quickly.

It is anticipated that this will provide more practical management support to farmers while reducing the financial burden on young people who wish to purchase farmland and start businesses.

Park Jong-min, Director of the Gyeonggi Province Department of Agriculture, Fisheries and Life Sciences, stated, "The biggest barriers for young farmers to purchase farmland and enter agriculture were securing funds and setting collateral. Through this revision of the implementation guidelines, we plan to continuously support improving the startup environment for farmers and revitalizing agricultural management."

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