Attention is focused on whether the revised Farmland Act, which imposes disposal orders and enforcement fines on farmland not used for farming, will also affect the housing market.
Farmland owners who receive a disposal order can request the Korea Rural Community Corporation to purchase the land.
In addition, a system for paying rewards for reporting illegal leases will be established, strengthening surveillance over violations of the Farmland Act.
Article 121 of the Constitution of the Republic of Korea stipulates the 'farmer-owner principle,' which states that only those who farm can own farmland, and the 'prohibition of tenancy farming,' which prohibits the tenancy system where one borrows another's land for farming.
This revised Farmland Act strengthens law enforcement in a direction that emphasizes the practical use of farmland based on the basic principles of the Constitution, strictly verifying actual cultivation beyond mere formal ownership.
The revised Farmland Act mandates the disposal of farmland within 6 months after a disposal order, changing what was previously at the discretion of local governments to an obligation. As compulsory sale orders for uncultivated farmland become possible, there is a possibility that similar enforcement fines could be imposed on non-residential homes in the housing market, effectively forcing their sale.
Following a general trend of 'leftward shift' in the housing market and strengthening residence-focused policies, it is predicted that regulations on non-residential homes may also intensify.
Currently, there is no direct order like 'if you don't live there, sell it,' but a policy direction to differentiate between residents and non-residents is already apparent. The land transaction permit system is a prime example that limits ownership of homes for non-residential purposes by imposing a residency obligation.
Furthermore, there have been several attempts to differentiate tax burdens between residents and non-residents during tax reform. This could lead to scenarios of strengthening property tax penalties for non-residential homes and reducing capital gains tax deductions.
As the gap between the 'farmer-owner principle' and reality widens due to the deepening aging population in rural areas, points where existing constitutional provisions contradict contemporary circumstances are emerging. Discussions to amend the Constitution to resolve these practical contradictions may arise.
This revision of the Farmland Act can be seen as preparatory work for such constitutional discussions.
Furthermore, a scenario of constitutional amendment to stipulate the 'one household, one home principle' in the housing market is predicted, which could bring about fundamental changes in real estate policy.
Answers come from the transcript, with the exact spot cited.
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