[Free Pass Farmland Qualification⑦] Even if Suspected as a 'Fake Farmer', Forced Farmland Disposal and Punishment Are Not Easy

Experts commonly point out that even if farmland purchases are suspected to be for speculative purposes, it is not easy for the government to forcibly dispose of or penalize such farmland.

According to Article 7 of the Enforcement Decree of the Farmland Act, to obtain a certificate of qualification for farmland acquisition, one must submit an application form for the certificate along with an agricultural management plan to the city, district, town, or township where the farmland is located.

In this process, the applicant's farming ability, intention to farm, residence, occupation, and other farming conditions are comprehensively considered to verify whether the contents of the agricultural management plan are deemed feasible. If it is judged that the land can be used as intended after acquisition, the certificate is issued. However, in practice, farmland acquisition has gone beyond being easily done and has almost become a target for speculation.

According to data obtained on the 24th by Kim Eun-hye, a member of the National Assembly Land, Infrastructure and Transport Committee from Gyeonggi Province, titled 'Number of Applications and Issuances of Farmland Acquisition Qualification Certificates by Year in Gyeonggi Province over the Last 5 Years,' from 2017 to March 2021, the total number of applications for farmland acquisition qualification certificates in 48 cities and counties of Gyeonggi Province was 335,008, of which 329,215 certificates were issued. This corresponds to an issuance rate of 98.27%, which is practically close to 100%.

Regarding the land speculation scandal involving employees of the Korea Land and Housing Corporation (LH) in March, which was the starting point of the recent real estate corruption case, it was confirmed that most of the land they purchased (98.6%) was farmland.

The government has announced that it will pursue 'forcible disposal of farmland' in relation to speculation allegations in the 3rd phase new town projects, drawing attention to the feasibility of this measure.

The legal basis for forcible disposal of farmland includes Article 6 of the Farmland Act, which states, "Farmland may not be owned unless it is used or intended to be used for one's own agricultural management." Article 10 of the Farmland Act also states that "If it is found that farmland was acquired for speculative purposes using insider information, the head of the local government may impose an obligation on the farmland owner to dispose of the land." If the owner does not dispose of the land within the mandatory disposal period (one year), a penalty of 20% of the land value is imposed annually as a compliance fine until the disposal order is followed.

However, experts point out that it is not easy to determine farmland ownership by non-farmers and whether the land is actually cultivated. The agricultural field is highly outsourced and subdivided, making it difficult to identify the 'real farmer.'

Professor Sadongcheon of the Department of Law at Hongik University explained, "In paddy farming, even farmers themselves actually farming the land account for less than 10%," adding, "Pesticides and fertilizers are often applied by external companies such as drones, and the farmer only manages irrigation." Determining 'speculative purposes using insider information' is a matter for professional investigation, and proving it is also difficult.

Even if grounds for forcible disposal are established through 'confession' or other means, the disposal process is complicated. All lands suspected of speculation are designated as land transaction permission zones, making voluntary disposal through transactions practically impossible.

It is also difficult to sanction discrepancies between the contents reported in the agricultural management plan and the actual cultivation.

A Gyeonggi Province official explained, "An LH employee suspected of land speculation in a new town area recently submitted an agricultural management plan stating that rice would be cultivated after purchasing farmland, but in reality, willow trees were planted. From the perspective of farmland use, this is considered agricultural activity, so it cannot be punished as a violation of the Farmland Act."