How to Apply for an Entrusted Lease Through the Farmland Bank

Procedure

Procedure

1. 01

   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. 02

   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. 03

   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. 04

   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. 05

   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.

Filing route

Filing route

Deadlines & processing notes

Deadlines & processing notes

Fees & official charges

Fees & official charges

Included in the basic fee — Initial document review, required-document guidance, basic form preparation, one filing support and one ordinary supplement.

Conditional success fee — For this service, any conditional success fee may be separately agreed within the lawful service scope and stated in a written engagement agreement. No outcome is guaranteed.

Displayed amounts are starting estimates, not statutory or standard rates. The final fee is confirmed after consultation and document review in the engagement agreement. Government fees and actual expenses may change.

Basic documents

Basic documents

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.