Land-Related Regulations Fail to Keep Up With Times

When Emart, one of Korea’s major retail chains, decided to set up a new store in a space of at least 3,000 pyeong, a basement was the only option to abide by the nation’s building-coverage rule. As a result, local shoppers now go to the trouble of going down to a basement to buy what they need. The Emart episode is a case in point showing that land-related restrictions are causing inconveniences to Korean customers and failing to keep up with the changes in Korean people’s lifestyles.

Although the demand for leisure and entertainment is increasing thanks to the rise in income and longer weekends, world theme park companies experience difficulties securing land for building theme parks in Korea hindered by outdated land regulations. In addition, the government still adheres to the old farming land system to maintain current farming space, not taking account the overall plunge in rice consumption.

“Old regulations are simply outdated at a time when Korea is about to break the $20,000 GNI per capita mark,” said director Hwang Dong-eon of a corporate support group in the Korean Chamber of Commerce and Industry. Land-related regulations such as those regarding national land planning, urban area development, and farm land were mostly adopted in the 1980s and 90s, and the legal framework remains more or less the same.

To reflect the changes, the Ministry of Finance and Economy will revise related regulations as part of a larger strategy to improve the business environment in Korea. Relevant policies will be announced at the end of June.

The changes will not come easily as land-related ministries such as the Ministry of Construction and Transportation and the Ministry of Agriculture and Forestry insist that maintaining current regulations is necessary for preventing urban areas from overcrowding and ensuring food security.

President Kim Jong-seok of the Korea Economic Research Institute pointed out, “Regulations that fail to respond to the changes in time restrict corporate activities, ultimately running counter to the benefit of the general public.” He added that urgent revisions are needed to accommodate the public’s needs.

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