Comprehensive Real Estate Tax Exemption for Leased Farmland for Solar Income Villages... Government Finalizes 50 Regulatory Reform Initiatives

Ministry of Agriculture Announces Agri-Food Regulatory Rationalization Strategy Meeting
Snack Bars and Cafes to Be Permitted in Agricultural Promotion Areas

The government has decided to push forward with lowering the property tax rate through separate taxation and exempting the comprehensive real estate tax on reservoirs and farmland leased for the establishment of “Solar Income Villages.” In addition, to boost rural vitality and increase income, the government will also seek to allow the installation of snack bars and restaurants within agricultural promotion areas.

On the 18th, the Ministry of Agriculture, Food and Rural Affairs, under the leadership of Minister Song Miryung, held the 3rd Agricultural and Food Regulatory Rationalization Strategy Meeting and announced that 50 regulatory rationalization initiatives have been finalized.

On the 18th, Song Miryung, Minister of Agriculture, Food and Rural Affairs (first from the right), is speaking while presiding over the 3rd Agriculture and Food Regulation Rationalization Strategy Meeting. Ministry of Agriculture, Food and Rural Affairs

The finalized initiatives are categorized into five sectors, totaling 50 tasks: ▲ Leading energy transition and balanced growth in rural areas, ▲ Agriculture as a national strategic industry that safeguards the nation’s food supply, ▲ A major transformation of agricultural policy with strengthened national responsibility, ▲ A society where people and animals coexist happily, and ▲ Rationalization of regulations for public livelihood.

◆ ‘Rural Development’ – Leading Energy Transition and Balanced Growth = First, the Ministry of Agriculture, Food and Rural Affairs will improve related policies for the orderly introduction of solar power generation and to revitalize rural areas. The criteria for the installation area of floating solar power systems on reservoirs and lakes will be relaxed. In collaboration with the Ministry of the Interior and Safety, the government will lower property tax rates and promote comprehensive real estate tax exemption for reservoirs and farmland leased for the creation of Solar Income Villages through separate taxation. Furthermore, if a Solar Income Village pursues an agrovoltaic power generation project within an agricultural promotion area, after prior consultation with the minister, the designation procedure for renewable energy zones can be processed as an agenda item, thereby speeding up project implementation.

Additionally, to foster rural startups by young people returning to or relocating to rural areas, the installation of snack bars and cafes selling beverages and baked goods will be permitted in agricultural promotion areas. For essential facilities such as slaughterhouses, animal hospitals, and campgrounds that are tailored to the characteristics of rural specialized districts, the farmland conversion permit procedure will be simplified to a notification process, supporting the activation of rural specialized industries. In cooperation with the Ministry of Land, Infrastructure and Transport, the government will also allow online applications for the vacant house demolition support program to reduce inconvenience for the public.

Floating Solar Power on Daeho Lake, Seosan City, Chungnam Province. Korea Rural Community Corporation

◆ Fostering Agriculture as a National Strategic Industry = Regulatory rationalization will also be pursued to improve the distribution structure of agricultural products and foster future industries. To expand the participation of small-scale farmers in online wholesale transactions, seller registration in online wholesale markets will be allowed regardless of sales volume. The support program for invigorating high-quality rice distribution, previously limited to integrated Rice Processing Complexes (RPCs), will be expanded to include all RPCs. In cases where residual pesticides are detected due to unintentional contamination, products must be discarded, but eco-friendly certification can be maintained. The system will also be improved to allow spouses and children who participate in the production process to be designated as co-producers under eco-friendly certification regulations.

To nurture future food industries such as food tech, support such as consulting and market development will be provided not only to small and medium-sized food companies but also to food tech companies operating in non-food sectors, including robotics. The licensing requirements will be improved so that contract manufacturing organizations specializing in veterinary medicines can more easily obtain manufacturing licenses.

◆ Promoting Stable Management and Income for Farmers = The government will also work to improve systems for the management and income stability of farmers. The income threshold for non-farming income that excludes farmers from receiving direct payments based on cultivated area will be raised from 37 million won to an amount of at least 43 million won, as announced by the Minister of Agriculture, Food and Rural Affairs. The interim settlement amount for public rice purchases will be raised from 40,000 won to 60,000 won per 40kg bag of rice, thereby improving cash flow for farming households during the harvest season.

To protect farmers from unexpected damages such as disasters, the upper limit for compensation for livestock culling due to infectious diseases will be raised from 80% to 90% of the appraised value, and the criteria for rent reduction for reclaimed leased land in the event of disasters will be changed from a corporation-based damage ratio to a parcel-based damage ratio.

Improvements will also be made to foster the companion animal industry and to enhance the convenience of pet owners. Businesses registered for animal grooming will be allowed to offer on-site services, and the installation of animal funeral service facilities using vehicles, such as mobile crematoriums and natural burial facilities, will be permitted.

Furthermore, the disclosure of veterinary service fees for major treatment items, which is currently limited to the highest, lowest, and average values by region, will be improved to require public disclosure by individual hospital. Standards for special-purpose nutritional feed for common diseases in companion animals, such as heart disease and diabetes, will be established to reduce the burden on pet owners and expand their choices.

Additionally, to alleviate public inconvenience, the scope of agricultural discount voucher use, currently centered on traditional markets, will be expanded to include small and medium-sized agricultural and livestock distribution businesses in local commercial districts. Standards for indicating the production year on products containing mixed ginseng from different years will also be established.

Minister Song stated, “Rationalizing agri-food regulations means implementing smart regulatory reforms that fundamentally change unreasonable and absurd regulations that cannot keep up with reality. It is not simply a matter of reducing the number of regulations, but boldly improving unreasonable and absurd regulations so that small achievements accumulate into significant outcomes that the people can truly feel.”

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