Democratic Party to Push Special Act Legalizing Farmland Leases and Illegal Land-Use Conversions
The Democratic Party of Korea is moving to legislate a "Special Act on the Settlement of Certain Farmland Cases" that would legalize long-standing informal farmland leases and illegal conversions of agricultural land.
Why Overhaul Farmland Law Now
The impetus for the legislation is that a significant portion of South Korea's farmland is being used for actual farming despite failing to meet legal requirements. According to Yonhap News, the Democratic Party decided on the 30th to draft a special measures bill to resolve, in one sweep, the long-persisting issues of informal farmland leases and illegal conversions. The current Farmland Act imposes strict regulations, permitting ownership only by those obligated to cultivate the land themselves. In practice, however, inheritance, leasing, and facility installation have long taken place in ways that deviate from the law, becoming entrenched customary practices. This structure has long injected legal uncertainty into farmland transactions and farm management, and has repeatedly been flagged as an issue requiring resolution.
There is also a reason the special act format was chosen. Amending individual provisions of the Farmland Act would make it difficult to retroactively resolve the legality of judicial acts accumulated over decades. The core of the bill, as known, is to open a window for registration and review over a set period, and to grant legal status only to cases that meet the requirements.
Key Provisions and Scope of Application
The bill is built on two main pillars. The first would recognize, under certain conditions, the customary practice of leasing farmland for actual cultivation. Statistics from the Korea Rural Community Corporation and similar bodies show that as farming households age and direct cultivation becomes harder, demand for leasing has grown — but the law has failed to keep pace. Granting legal effect to registered leases would boost farmland liquidity and make it easier for aspiring farmers and rural newcomers to gain access.
The other pillar is the legalization of illegally converted farmland. For farmland used without permits as warehouses, vinyl greenhouses, or residential facilities, the bill would flexibly ease restoration-to-original-state obligations and consider retroactively approving conversion procedures for cases meeting certain criteria. However, the legalization is not expected to be unlimited: safeguards are likely to exclude conversions aimed at malicious speculation or cases that damaged agricultural production infrastructure. The scope of application will likely be limited to a cutoff at the time of registration, making it a key design challenge to ensure violators after the law takes effect receive no benefit.
Divided Views Among Farm Groups and Politicians
Supporters argue that acknowledging reality is the way to make the farmland system genuinely effective. With narrow legal pathways, farmland transactions become opaque and disputes remain frequent, they note. The view is that legalization can ease past burdens and create a virtuous cycle in which strict regulatory enforcement becomes possible going forward.
Opposition concerns are also substantial. Critics say deregulation could effectively serve as an amnesty for farmland destruction. In particular, they argue that if large-scale illegal conversions tied to development profits are blanket-pardoned, the foundation of farmland preservation policy could be shaken. The People Power Party is expected to focus on whether the legislation includes verification standards for speculation windfalls, while the implementation capacity of the Ministry of Agriculture, Food and Rural Affairs and local governments will also come under scrutiny. If the bill is reviewed by the National Assembly's Agriculture, Food, Rural Affairs, Fisheries and Oceans Committee, substantive negotiations are expected over the supplementary provisions — namely, the cutoff date for eligible cases and grace periods.
Impact on Markets and Industry
The farmland transaction market is likely to read the bill as a positive signal. Once legal rights are clarified, farmland collateral values could rise, and loan reviews for farmland-related lending by NongHyup and other financial institutions could be simplified. If large-scale lease-based farming takes root on a stable footing, it could also drive increased demand in related industries such as agricultural machinery and smart farming.
On the other hand, the potential for localized farmland price increases is a variable to watch. If illegally converted farmland gains recognized value for residential or warehouse use, nearby farmland prices could be affected as well. How tightly the government and the National Assembly design exclusion criteria in the detailed enforcement decree will be the key to preventing market distortion.
Legislative Timeline Outlook
The Democratic Party is expected to introduce the bill promptly and aim to pass it within the regular parliamentary session. However, given the nature of a special act, passage will not be easy without bipartisan agreement on the scope of amnesty and legalization. After soliciting input from farm groups and local governments and holding public hearings, the bill is highly likely to be substantially reworked from its original form. Once substantive discussions begin in the committee's bill subcommittee, the legalization registration period and exclusion criteria are expected to emerge as the key points of revision.
