Korea Rural Community Corporation Overhauls Farmland Bank Rules to Protect Tenant Rights

The Korea Rural Community Corporation (KRC) has implemented a comprehensive overhaul of its farmland bank regulations, focusing on enhancing support for farmers and safeguarding tenant rights. These updated internal operating standards, which cover customized farmland support, management recovery assistance, and farmland leasing trusts, began implementation this month.

The reforms were developed based on feedback gathered from young farmers and agricultural organizations. A key objective is to alleviate financial pressures for young farmers and those facing management crises. The KRC also aims to formalize and protect the rights of tenants involved in informal leasing practices that have been common in the agricultural sector.

One significant new initiative is the "lease first, then buy" program. Under this system, the KRC purchases farmland requested by young farmers seeking to cultivate it. The corporation then leases the land to the farmer for a set period before eventually selling it to them. To further support these young farmers, the KRC will offer an 80% rent reduction for those cultivating crops other than rice. Additionally, interest accrued during the initial two years of repayment under a principal-and-interest installment plan will be fully waived.

The KRC is also expanding its purchase list to include land used for pipe-frame vinyl greenhouses, which were previously excluded from support due to land designation or facility status. Furthermore, the "management recovery support project," where farmers lease back land they transferred for debt repayment to continue farming before repurchasing it, has been revised to ensure clearer terms and protections.