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50). Any other losses from sales, losses suffered by the land owner or party concerned from the expropriation or use of other lands, loss from rent due to moving buildings must be compensated (Act, Article 51). When expropriating or using stage 1 of land belonging to the same owner, even if the execution of project expropriating or using the said lands causes the prices of the remaining land to increase or results in other income, this profit may not offset the losses suffered from expropriation or use (Act, Article 53).
(4) Effect of Expropriation
The land owner, party concerned, or any other party with rights over lands to be expropriated or used, or objects in the land must deliver or hand over the land or objects in the land to the entrepreneur by the expropriation or use period (Act, Article 63). If the person to deliver or move the land or object cannot fulfill that responsibility without intention or negligence, or the entrepreneur does not know a person to deliver or move the land or object without negligence, then the mayor, district governor or head of autonomous borough must execute the project instead handle the delivery or movement of land or object at the request of the entrepreneur (Act, Article 64). If the expenses for the execution are not paid, then the head of borough, city, district may withhold the amount according to the disposition for failure in the national tax payment (Act, Article 78).
The entrepreneur who acquired ownership of the lands or objects, then loses other rights over those lands or objects on the date of expropriation (Act, Article 67, Paragraph 1). When the usage period for the land has passed or if there is no need for usage due to cancellation, changes in the project or other reasons, then entrepreneur must return the land to the land owner or successor without delay (Act, Article 70, Paragraph 1). If all or part of the expropriated land is no longer needed due to cancellation or change in the project within 10 days of the agreement or expropriation, then the land owner at the time or his successor may repurchase the land by paying the amount equivalent to the compensation for lands or rights other than ownership over the land to the undertaker within 1 year of the land no longer being needed and within 10 years of the date of agreement or expropriation (Act, Article 71, Paragraph 1). When there is land that may be repurchased, the undertaker shall notify the repurchase right holder without delay (Act, Article 72, Paragraph 1).
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works must be compensated by the project executor (Act on Special Cases concerning Acquisition of or Compensation for Public Lots15) Article 3, Paragraph 1). In this Act, the acquisition of land, etc. refers to the acquisition or discharge of land needed in public works by the project executor through the agreement, rather than by procedures stipulated in the Land Expropriation Act (Act, Article 2 Clause 4), The use of land, etc. refers to use or restriction of land needed in public works by the project executor through the agreement, rather than by procedures stipulated in the Land Expropriation Act (Act, Article 2, Clause 5). Compensation is to be paid in cash with the exception of cases specially stipulated in other acts (Act, Article 3, Paragraph 2). Compensation should be made individually to the owners of land, etc. (Act, Article 3, Paragraph 3).
If the project executor is of the national or local government, then the national or local government, the Korea Land and Housing Corporation, other government-invested institution or public entity, owner or land, etc. may choose to be paid in bonds issued by the said the project executor (Act, Article 3, Paragraph 2 proviso). When compensating with bonds, the project executor must decide the maturity date and yield for the bond so that the compensation is fair. In this case, the maturity period may not exceed five years and the bond yield must be equal or above the interest rate for a 1-year time deposit at the time of bond issuance (Act, Article 3, Paragraph 4).
The government may issue public land compensation bonds to compensate for losses suffered by owners of the land, etc.; from acquisition or use of land, etc.; for road construction by the Road Act; the industrial complex development project by the Industrial Site and Development Act; the public railway construction and improvement project by the Public Railway Construction Promotion Act; port construction by the Port Act or other public works at the cost of the general account;
special accounts for transportation facilities; and special accounts for railway projects (Act, Article 3-2, Paragraph 1). Public land compensation bonds are issued by the Minister of Finance and Economy at the request of the head of the central government agency managing national accounts (Act, Article 3-2, Paragraph 2). When issuing bonds, the Minister of Finance and Economy must obtain the vote of the National Assembly for each account (Act, Article 3-2, Paragraph 4). Bonds are issued to the owner of the land, etc., and they may be transferred or provided as security (Act, Article 3-2, Paragraphs 5 and 6). With the exception of special regulations stipulated in this Act, the State Bond Act should be followed regarding the issuance of bonds (Act, Article 3-2, Paragraph 7).
Compensation amount is calculated based on the price at the time of the signing of the contract on acquisition or use of land, etc. (Act, Article 4, Paragraph 1). For the land to be acquired, compensation value shall be based on the official price according to the Act on Price Announcement and Valuation of Land, etc. Compensation is calculated by considering the usage plan for the said
15) Act on Special Cases concerning Acquisition of or Compensation for Public Lots(amended 1999. 2. 8, Act No.5906) is abbreviated as “Act”
hereinafter.
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lands according to other laws from the base date of public notice until an agreement is reached or decision is made. Other factors to place under consideration include the land price volatility rate for the appropriate region with no volatility in price due to said public works; or increase in wholesale prices, location and shape of the land, environment, and usage situation, etc. (Act, Article 4, Paragraph 2, Clause 1). For the land to be used, a reasonable price that considers the rent fee of that land or similar nearby land is set as the compensation amount (Act, Article 4, Paragraph 2, Clause 2). With regard to buildings, trees, objects fixed in the land; and rights other than ownership including mining rights, fishing rights, water usage rights (also pertaining to the industrial water system) thereof; and soil, sand, gravel belonging to the land; the compensation amount shall be calculated at a reasonable price by considering the transaction price, cost price, profitability, etc (Act, Article 4, Paragraph 2, Clause 3). The officially assessed land price will be known as the officially assessed land price on the base date before project recognition announcement. The officially assessed land price that is announced most recently to the announcement of recognition of the said project shall be selected as the officially assessed land price. However, if the land price is recognized as having changed due to the announcement of the public works plan or its execution, or in the condition that the officially assessed land price has an announcement date or period before the announcement of its base date, then the officially assessed land price that is announced closer to the announcement date of the said public works is considered the officially assessed land price (Act, Article 4, Paragraph 3).
With regard to farming crops, nursery fields, sericulture, moving costs, etc, the related ordinances of the Ministry of Construction and Transportation will be decided by considering factors such as profitability, investment costs, necessary expenses, etc (Act, Article 4, Paragraph 5). If it becomes difficult for the remaining land to be used for its original purpose due to part of the land belonging to one owner, then the remaining lands may be acquired at the request of the land owner, and it shall follow the aforementioned compensation calculation method (Act, Article 4, Paragraph 6). A local Compensation Review Committee may be established to review matters regarding compensation for the acquisition or use of land, etc., and more than 3/10 of the committee should be owners of land, etc. (Act, Article 4, Paragraph 7).
When acquiring or using land, etc. for the execution of public works, if the project executor is paying the compensation and there is land, etc. with no preservation registration or transfer registration of ownership, then the compensation is paid to the head of borough or mayor (restricted to cities for urban-rural complex types) or to the legitimate right holder confirmed by the head of the respective town or township (Act, Article 5, Paragraph 1).
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The necessary cost for division of lands, etc. used in the execution of public works is borne by the project executor (Act, Article 7). The project executor must establish and implement relocation measures for those losing their homes to public works (Act, Article 8, Paragraph 1). If all or part of the expropriated lands is no longer needed due to cancellation or changes in the project within 10 days of the agreement or expropriation, then the land owner at the time or his successor may repurchase the land by paying an amount that is equivalent to the compensation for said lands or rights other than the ownership over the land to the undertaker within 1 year of the land no longer being needed and within 10 years of the date of agreement or expropriation (Act, Article 9, Paragraph 1). This condition is applicable even after a period of 5 years has passed from the acquisition date if the entirety of acquired lands was not used in the public works, and in this case, the repurchasing right must be exercised within 6 years from the acquisition date (Act, Article 9, Paragraph 2). If the price of the land, etc. has changed significantly since the acquisition, the project executor or repurchase right holder must consult on the amount, and if an agreement is not reached, a decision by the Land Expropriation Committee in the location of the said lands, etc. may be requested (Act, Article 9, Paragraph 3).
The project executor may request from the national or local government issuance of documents necessary for the transfer registration to be completed of the lands, etc.; and subsequently the national or local government must comply with the aforementioned request (Act, Article 10, Paragraph 1). Also, charges related to the above situation are waived for documents issued by the national or local government at this time (Act, Article 10, Paragraph 2).
7. AnnounCeMent AnD vALuAtion of LAnD PriCe (1973 - 2005)
1) Significance and Major Changes
Land valuation is essential when the national or local government buys or expropriates land in the process of various tax operations or public works execution. The officially assessed land price refers to the officially assessed price per surface unit of the standard land surveyed and valuated by the Minister of Construction and Transportation; according to a certain procedure to set an appropriate price which serves as a standard for land price calculation by valuating and announcing the appropriate price for said lands (Act, on Public Notice of Land Price and Appraisal of Land, etc.16) Article 1; Article 2, Paragraph 1). The officially assessed land price provides land price information of
16) Act on Public Notice of Land Price and Appraisal of Land, etc. (amended 2002. 2. 4, Act No.6655) is abbreviated as “Act” hereinafter.
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the land market and is a general index of land transaction. The land price is calculated by institution such as the national or local government or when an appraiser appraises the land individually, and therefore the calculation or appraisal becomes the basis for land price (Act, Article 3). The basic land price, which can be seen as the first public land price in Korea, was adopted with the enactment of the Act on Utilization and Management of National Territory in 1972 to efficiently promote the Comprehensive Plan on Construction on National Territory, and smoothly implement public development projects such as heavy chemical industries.
The Act on Utilization and Management of National Territory was amended in 1978 to expand the announcement of standard land prices nationwide, and use it as part of measures to control real estate speculation. The enactment of the Act on Public Notice of Land Price and Appraisal of Land, etc. in 1989 saw the adoption of officially assessed land prices, which lead to integration of public land prices. The officially assessed land prices adopted by this Act were an improvement of the standard land prices according to the Act on Utilization and Management of National Territory. The government sought to systematize the multiple land appraisal system by selecting annually standard land from land all over the country; and surveying, appraising, and announcing the appropriate price for said lands so that each relevant institute would be able to base their land appraisals on that standard price index. The Public Notice of Values and Appraisal of Real Estate Act was enacted in 2005, including public notice of real estate as part of the land appraisal system.
Figure 9 Changes in applicable Law for Officially assessed Land price