National property is divided into administrative property and general property (Article 6 of the National Property Act). Land used for public purposes, such as roads and drainage channels, is administrative property, and administrative property cannot be disposed of (Article 27). Administrative property, including public property, is not eligible for lease or sale (Article 19 of the Public Property and Goods Management Act). Purchase is also possible only with general property.
Check the ownership (national, city, or district) using the land ledger and certificate of registration, and confirm the property classification and managing agency. Even land in the same neighborhood may have different responsible parties, such as the road managing agency, waterway manager, or Korea Asset Management Corporation.
## Requesting Discontinuation of Unused Roads and Drainage Channels
National administrative property must be discontinued without delay if it has ceased to be used for administrative purposes or has been decided not to be used for 5 years (Article 40 of the National Property Act). Public property can also be discontinued by the head of the local government if it is actually not used for administrative purposes (Article 11 of the Public Property and Goods Management Act).
According to the Road Act, if it is a road, the road management agency must discontinue the road area after the notice of route discontinuation, and announce it beforehand to hear the opinions of residents (Articles 25 and 26 of the Road Act). If it is a registered agricultural waterway, the manager must obtain the approval of the mayor, military commander, or district office chief to discontinue it, and the reason may be that farmland has been changed to another use or alternative facilities have been prepared (Article 24 of the Rural Development Act). The application must include site photos, a statement that the passage or drainage function is absent, and the current use of surrounding land. National administrative property that has been discontinued is, in principle, handed over to the supervising agency, and its management and disposal are entrusted to the Korea Asset Management Corporation (Article 40(2) of the National Property Act, Article 38(3) of the Enforcement Decree of the same Act).
## Buildings on National Land: Considering Negotiated Purchase
General public property sales are based on competitive bidding and are only conducted through negotiated contracts in specific cases (Article 43 of the National Property Act). Common reasons seen in relation to land with unauthorized buildings are as follows (Article 40, Paragraph 3 of the Enforcement Decree of the same law).
- Sale of state-owned land with no use value, occupied by buildings owned by entities other than the state since December 31, 2012, to the building owner within twice the building’s floor area (Item 14)
- Sale of jointly owned property to the co-ownership rights holder (Item 13)
- In cases where it is difficult to put up for competition due to location, form, or intended use (Item 27)
Properties with potential for dispute are disposed of through competitive bidding (Article 6 of the same article). The estimated price is the arithmetic average of two appraisals if it is 30 million won or more than the ledger price, and the amount of one appraisal if it is less than that. If the appraisal is withdrawn without justifiable reason after the appraisal, the applicant may be required to bear the appraisal and surveying costs (Article 42 of the Enforcement Decree). The sale price can be paid in installments with interest for 3 years for amounts exceeding 5 million won but not exceeding 30 million won, and within 5 years for amounts exceeding 30 million won (Article 55 of the Enforcement Decree).
## Land Owned by Incheon City and Yeonsu-gu Follows Ordinance Standards
Some of the reasons for public property contract negotiations are determined by local government ordinances (Article 38, Paragraph 1, Item 23 of the Enforcement Decree of the Public Property and Goods Management Act). The Incheon City Public Property Management Ordinance Article 40 and the Yeongsu-gu Public Property Management Ordinance Article 39 stipulate the following:
- When a narrow, long abandoned channel, abandoned drain, or abandoned embankment is located between or surrounded by a single person's land, and more than half of the boundary line touches that person's land.
- For a parcel of land within Incheon City with an area of 1,000㎡ or less, and which was occupied by a private building before the standard date, sale to the building owner within twice the floor area (limited to 200㎡ for detached houses). The standard date is December 31, 2012 for Incheon City, and January 24, 1989 for Yeongsu-gu, and the Incheon City ordinance designates the target building as a building according to the Special Measures Act for the Disposal of Specific Buildings.
Even in Incheon, the criteria differ depending on whether it is city land or district land.
## If it's difficult to buy immediately, receive a lease first
A compensation fee of 120% of the usage fee or lending fee will be imposed for unauthorized use (National Property Act Article 72, Public Property and Goods Management Act Article 81). National land can be leased by negotiated method if it is for residential purposes or for cultivation by a real cultivator (National Property Act Enforcement Decree Article 27 Paragraph 3, Article 51). The land lease period is within 5 years, and a renewal application is submitted 1 month before expiration (National Property Act Article 46). The lending fee is calculated by multiplying the property value based on individual public disclosure price by 5 per mille annually, with lower rates such as 20 per mille for residential and 10 per mille for cultivation (Enforcement Decree Article 29). Shared land has reasons for negotiated lease such as a plot surrounded by the private land of the same person (Public Property and Goods Management Act Enforcement Decree Article 29), and the land lease period shall not exceed 5 years (same law Article 31).
If you have already received a compensation payment notice, you should separate the issue of disputing the notice from the issues of purchase and lease. Disputing compensation payments is covered in the "Guide to Disputing Unauthorized Occupation Compensation Payments for National and Public Land." The permissibility and price of purchase and lease are determined by the managing agency and vary depending on the time of occupation and the condition of the building, so individual verification is required for each case.
Hwang Yun-sang Administrative Agent Office handles verifying whether the occupied land is national land or public land, confirming the managing agency, reviewing the possibility of purchase and lease, drafting requests for abandonment and applications for purchase and lease, organizing documents showing the period of occupation, submitting to the managing agency, and providing supplementary responses. Costs will be provided after consultation.