Land trade restriction imposed on Winter Olympic site area

Areas around the venue of the 2018 Winter Olympics, Pyeongchang County in Gangwon Province, will be designated zones that require permission for land transactions from the end of this month.

Buyers and sellers of land of a certain size in the area also need approval from provincial and regional authorities and show a plan on mobilizing funds for purchase.

The Land, Transport and Maritime Affairs Ministry Friday said Gangwon Province decided to designate 65.1 square kilometers in the township of Daegwalryeong in Pyeongchang and the township of Bukpyeong in Jeongseon County, the site of the 2018 Winter Olympics, as zones requiring permission for land transactions.

The area is 0.4 percent of the territory in Gangwon, and areas in Daegwalryeong account for more than 90 percent of land subject to the restriction. Areas in Bukpyeong will only be selectively designated to include sites in and around Olympic facilities.

The Gangwon provincial government will hold an urban planning committee at the end of the month and finalize the plan on the designation of areas subject to the land trade restriction.

Gangwon decided to put in place the restriction preemptively amid rising fears over property speculation and land inflation stemming from higher demand for land due to the Olympics there.

Last year, land prices in Pyeongchang grew 1.26 percent, higher than the national average of 1.05 percent. Land prices in Pyeongchang grew just 0.03 percent last month but after its selection as 2018 Winter Olympics host last month, inquiries on land investment from people outside the region have surged and sent suggested land prices soaring.

Once an area is designated a zone that requires permission for land transaction, people who trade or transfer ownership of land measuring a certain size in the area must win their regional government’s permission over the next five years.

Farming land measuring 500 square meters, forests measuring 1,000 square meters, and other types of land measuring 250 square meters or larger excluding farm land and forests are all subject to the regulation that requires permission for land trade. When applying for permission, a buyer must submit plans on land use and getting the funds for the land purchase.

The Land Ministry and Gangwon Province will constantly check real estate market trends in and around Pyeongchang, and when required, expand the size of the areas subject to restriction to flexibly cope with changing situations.

imsoo@donga.com