Upscale Housing and Large-scale Factories Allowed on Agricultural Land

Starting next year at the earliest, the restriction will be lifted on the size of the site while constructing houses or factories on farming land, which enables upscale houses and large-scale factories construction.

Also, agricultural product processing factories, including kimchi factories, can be constructed on land designated for agricultural use.

Agricultural Minister Huh Sang-man announced the Agricultural Land System Improvement Policy with the details above in a press conference on January 14.

The Agricultural Ministry will further promote this policy with a government decision by late May through public hearings and will implement it starting next year with an amendment in the agricultural land law later this year.

According to the new policy, the size restriction of development sites for factories, houses, and others will be abolished which previously intended to prevent indiscriminate development of agricultural land, with the exception of the land designated for agricultural uses.

Currently, the housing site restriction of 1,000 square meters (300 pyong) and factory site restriction of 30,000 square meters (9,000 pyong) applies when developing agricultural land, which prevents large-scale facilities from being built on the land.

Additionally, agricultural product vendors and agricultural product processing factories with low contamination level are allowed on the land designated for agricultural use, enabling kimchi factories and agricultural product shops to settle in the designated area.

Also, the ministry is stimulating development by decreasing the Alternative Agricultural Land Development Fee, which was imposed upon the developers with permits of development in the agricultural land.

For this purpose, the levy standard of agricultural land development will be changed from the current practice of applying originally formed prices, which include land readjustment and irrigation cost, into applying the declared value which reflects the market price.

Currently, the originally formed price of agricultural land is 72,000 won per pyong in comparison to the declared value of 30,000 won, varying slightly according to the regions.

Minister Huh said, “Relieving restrictions of the agricultural land can give rise to speculations and indiscriminate development, therefore we will minimize the side effects with cooperation from the Ministry of Construction and Transportation’s project on subdivision of administered lands related to the Land Planning Law.”

Jin-Hup Song jinhup@donga.com