Hongseong farmland transactions drop 28% following land survey

A comprehensive government survey of agricultural land has led to a significant decline in farmland transactions in Hongseong County. Following the investigation, approximately 18.7% of the targeted land parcels in the region were flagged as suspected violations of the Agricultural Land Act, involving issues such as illegal leasing, unauthorized fallow land, and improper land use.

Data from Hongseong County indicates that between May and September this year, the total area of traded farmland decreased by approximately 28.3% compared to the same period last year. The decline was particularly pronounced in paddy fields, where transaction area dropped by 36%.

Local real estate experts and agricultural cooperatives have expressed concerns that the survey is stifling buyer sentiment and causing farmland prices to fall. This trend threatens to reduce the asset value of farmers and could lead to a liquidity crisis as the collateral value of farmland diminishes, potentially impacting the broader rural economy.