Land on which we live is an invaluable asset. In some countries, for example, it is illegal for anyone to own land because they think land belongs to everybody who lives on it. So, any kind of trade of land is strongly prohibited by the law. They also...
Land on which we live is an invaluable asset. In some countries, for example, it is illegal for anyone to own land because they think land belongs to everybody who lives on it. So, any kind of trade of land is strongly prohibited by the law. They also think that even when their government plans to develop its land, it should be for betterment of the whole nation. This idea applies not only to communist countries but also to some democratic societies.
Based on this idea, policies regarding the land in Korea have gone through many changes. Since the first cornerstone of land policy established in the 1960s, they have evolved with the needs of the times. Taking a brief look at the history of land policy in Korea, it was probably in 1960s when the policy was first designed in recent history after the independence from Japanese colony. The purpose of the policy then was to pave the way for economic development and growth by controlling the land price. In 1970s, "Plans for National Development" was announced by government, and national land project began. Then, in 1980s it was necessary to redefine land policy to promote fair distribution of land development throughout the nation focusing on regional balance. Thus in 1990s, efforts were made to solve the imbalance of regional gaps and local autonomy was finally adopted to give power to local governments consequently. Land policy in 2000s was in line with the previous period with more focus on national competitiveness in the global era.
However, 40 years of policy change have not been without problems. Problems involved in land policies may include those regarding land markets and social and economic factors combined along with too strict regulations which may hurt proper use of land and its development. Procedures for getting approval from the authority, in particular, are too complicated and take a long time thus impeding prompt performance of development projects severely. This can also undermine national competitiveness in the long run.
From these perspectives, this paper examines the problems of land policies and then tries to provide right solutions to these problems perceived. To do so, this paper first looks briefly at the history of land policy in Korea as a whole and then extract problems of each policy through the history, finally suggesting the best remedies which also fit ever changing needs of the times.
A general survey of the history of land policies and their drawbacks gave the author a clue for the direction of future land policies in Korea. First, regulations regarding land transaction should be made more simple for private developers or investors to participate in the project more freely. This will be likely to promote proper land development eventually through an invisible hand of demand and supply in land market. Second, the authorities of approval of land projects should be transferred to local governments. If local governments have the power to permit those projects, more projects will be provided and completed which fit the specific needs of the regions. This will also result in appropriate as well as balanced development of land.
Tax systems as another key factor in land development have several problems hindering smooth land trade and development. Tax may serve as a righteous means to secure revenue, but at the same time it can prevent national development and growth thus hurting the general welfare of the citizens. Instead of functioning as a right means to redistribute national wealth, impractical and unreasonable taxes designed for specific purposes such as speculative taxes, and retention and transaction taxes may considerably block free trade of land which can be followed by right development.
From these findings of this research, it can be suggested that there should be a sustainable policy concerning land. That is, the future as well as the present should be considered in making land policies. Furthermore, the ultimate goal of land development should be to promote national wealth and welfare. Therefore, there should be more emphasis on the concept of the public goods in arranging and developing land policy.