Purpose to Prevent Damage to Tenant Farmers Due to Oral Contracts… ‘Priority Support from Farmland Bank’ in Case of Illegal Termination
In Seoul, May 13 (Yonhap News) – Reporter Kim Se-rin reports that the Ministry of Agriculture, Food and Rural Affairs announced on the 13th that it will operate a “Special Rectification Period for Farmland Lease and Rent” from the 18th to July 31st to normalize the farmland lease market and protect tenant farmers.
The Ministry explained that this rectification period is intended to convert orally conducted contracts into written ones to bring them into the system.
Under current farmland laws, the leasing and renting of farmland is principally prohibited. However, exceptions such as inherited farmland or land acquired before 1996 are allowed for private leases or delegations to the Farmland Bank.
When leasing between individuals, if a written contract is reported to the relevant township office, the tenant obtains third-party opposition rights and can be guaranteed a minimum lease period of three years. In the case of perennial plants, the period is guaranteed for more than five years.
Failure to apply for a change of the farmland register within 60 days of contract signing may result in a fine of up to 3 million won.
Particularly, inherited farmland exceeding 1 hectare (about 3,025 pyeong) must be delegated to the Farmland Bank to ensure ownership. Leasing delegations through the Farmland Bank can be done via PC or mobile phone.
If entrusted to the Farmland Bank for eight years or more, the heavy taxation on capital gains is exempted, and farmers are exempt from the service fee (5% of the annual rent).
To prevent landlords from unilaterally terminating contracts to avoid a full-scale farmland investigation, the Ministry is also operating a “Tenant Farmer Protection Reporting Center.”
The online reporting center on the Farmland Space Portal will open on the 18th, and from the 1st of the following month, consultations via a dedicated phone number (1811-8852) will also commence.
Reported farmland will be categorized for in-depth investigation during a full-scale farmland survey.
The Ministry plans to prioritize the supply of entrusted farmland to the Farmland Bank for tenants who suffer from unilateral contract termination.
Kwon Ki-hwan, head of the Ministry’s Farmland Division, said, “I hope this rectification period will serve as an opportunity to bring informal oral contracts into the legal system,” adding, “Tenants will have their legal rights guaranteed, and landlords will have the opportunity to prove a legitimate lease before the farmland investigation.”