How to Apply for an Entrusted Lease Through the Farmland Bank — Inherited Farmland, Farmland Under a Disposal Obligation and a Trust Period of at Least 5 Years

Procedure

1. 1. Check the basis of ownership and the risk of a disposal obligation

   Check how the farmland was acquired, such as inheritance, leaving farming or purchase, the ownership period, the total area of inherited or post-farming farmland, and its current cultivation status. An heir who does not farm may own up to 10,000㎡ of inherited farmland, and a person who left farming after at least 8 years of farm management may also own up to 10,000㎡ of the farmland owned at that time. If a fact-finding survey or hearing notice has already been received, the grounds and deadlines in the notice are organized first.

2. 2. Check whether the farmland can be entrusted

   Farmland an individual has owned for at least 3 years can be entrusted for lease under Article 23, Paragraph 1, Subparagraph 6 of the Farmland Act, and the part of inherited or post-farming farmland exceeding 10,000㎡ under Subparagraph 7 of the same paragraph. The Korea Rural Community Corporation cannot accept farmland in residential, commercial or industrial areas, farmland with a conversion permit or conversion report, or farmland designated and announced for development use. The use zone and conversion status are checked against the land use plan and the farmland register.

3. 3. Prepare and submit the entrustment application

   An application for lease entrustment is filed with the Korea Rural Community Corporation with identification, documents confirming the farmland such as the land register and certified copy of the land register, and documents showing the inheritance or the circumstances of leaving farming. The lease trust period is set at 5 years or more, and the trust commission is up to 12% of the total rent (up to 200,000 won per contract for a free-use loan trust). The Corporation's application form and any additional documents are confirmed before applying.

4. 4. Selection of the tenant and the lease contract

   The Korea Rural Community Corporation, as trustee, finds a tenant to cultivate the farmland and concludes the lease contract. Farmland leases are in principle made in writing for at least 3 years, and at least 5 years for land used to grow perennial plants or with fixed greenhouses or vinyl greenhouses. The method of settling rent and the termination conditions are checked in the entrustment contract.

5. 5. Managing the trust period and responding to a disposal obligation

   The mayor, county head or district head must hold a hearing before giving notice of a disposal obligation, so the justifiable reason is explained with the entrustment contract and lease records. Once a disposal obligation is notified, the farmland must be disposed of within 1 year, and if it is not, a disposal order requiring disposal within 6 months may be issued. The grounds for deferring a disposal order are farming the land directly and concluding a sale entrustment contract with the Korea Rural Community Corporation, and a deferral postpones the disposal order for 3 years from the day after the disposal obligation period ends.

Required documents

• Farmland lease entrustment application (no statutory form; the form set by the Korea Rural Community Corporation Farmland Bank)
• Identification
• Documents confirming the farmland to be entrusted, such as the land register and certified copy of the land register
• Documents confirming the inheritance relationship (for inherited farmland, such as a family relation certificate)
• Documents confirming farm management history and leaving farming (for farmland of a person who left farming)
• Hearing notice or disposal notice for the disposal obligation (if received)
• Letter of authorization (when submitted by a representative)

Fees

Typically several hundred thousand won in the industry · We advise after consultation depending on the number of parcels, the volume of documents on the inheritance or leaving farming, and whether an opinion statement for the disposal obligation hearing is also prepared. The Korea Rural Community Corporation trust commission (up to 12% of total rent) and the cost of issuing certificates are separate.

See fees and official charges for this service →

Legal basis and review date

• Farmland Act, Article 6
• Farmland Act, Article 7
• Farmland Act, Article 10
• Farmland Act, Article 11
• Farmland Act, Article 12
• Farmland Act, Article 23
• Farmland Act, Article 24
• Farmland Act, Article 24-2
• Farmland Act, Article 55
• Farmland Act, Article 63
• Farmland Act, Addenda (Act No. 21798), Articles 1 and 3
• Enforcement Decree of the Farmland Act, Article 4
• Enforcement Decree of the Farmland Act, Article 9
• Enforcement Decree of the Farmland Act, Article 24-2
• Korea Rural Community Corporation and Farmland Management Fund Act, Article 24-4
• Enforcement Decree of the Korea Rural Community Corporation and Farmland Management Fund Act, Article 19-7
• Enforcement Decree of the Korea Rural Community Corporation and Farmland Management Fund Act, Annex 1

Checked against the statutes on 2026-10-12

Statutes and public notices change, so each case needs to be checked individually. Statute titles are given in English for reference. The Korean statutes are the authoritative text.

Check these first

• Once a disposal obligation arises, the farmland must be disposed of within 1 year, and failing to comply with a disposal order results in an annual charge for compelling compliance of 25% of the higher of the appraised value or the individual officially assessed land price, so if direct farming is difficult, decide on entrustment before a fact-finding survey.
• The amended Farmland Act taking effect on June 17, 2028 limits the lease of inherited and post-farming farmland not farmed directly to entrustment to the Korea Rural Community Corporation and others, so farmland inherited after that date should be planned on the premise of entrustment.

Frequently asked questions