The South Korean government is sharply tightening penalties against farmland speculation as it launches its first-ever nationwide audit of agricultural land. Disposal orders, which had been left to local authorities' discretion, will be made mandatory, and enforcement fines for non-compliance will be raised.
The Ministry of Agriculture, Food and Rural Affairs reported the farmland audit plan at the 20th Cabinet meeting and seventh emergency economic review meeting held at the presidential office on Monday. Using 58.8 billion won ($43 million) earmarked in the supplementary budget, the ministry will begin investigating farmland ownership, actual cultivation, facility installation and conversion, and fallow status this month.
The centerpiece is stronger post-detection sanctions. The ministry plans to make disposal orders, currently left to local authorities' discretion, mandatory and expand the scope so that immediate disposal orders can be issued for violations within land transaction permit zones. Sale restrictions have also been broadened to prevent violators from evading sanctions by transferring farmland subject to disposal orders to spouses or direct family members.
The disposal order grace system will also be revised. Under the current system, even when a disposal obligation is imposed for improper use of farmland, disposal can be deferred if the owner cultivates the land faithfully for a certain period. The government plans to scale back such grace provisions and raise the enforcement fines imposed for non-compliance with disposal orders to encourage prompt sales.
Measures to enhance the effectiveness of sale orders are also under review. At the Cabinet meeting, President Lee Jae-myung said, "Even when a sale order is issued, if land worth 10 million won on the market is listed at 50 million won, no transaction occurs, and the system effectively does not work." He called for measures to compulsorily purchase such land after a certain period.
The oversight system will also be strengthened. The government plans to reinforce supervision of farmland under disposal order grace and, if necessary, allow the agriculture ministry to issue disposal orders directly. Measures to use special judicial police to conduct ongoing monitoring and supervision of farmland are also being pursued.
"The intent of the Constitution and the Farmland Act is that farmland should be held by those who actually farm," President Lee said. "The system must be fundamentally overhauled so that those who do not farm cannot own farmland."
