Business · Markets · 18 hrs ago
South Korean Farmland Auctions Hit Record Lows in October
In October, South Korean farmland auctions reached record lows: 15.2% of listed plots sold, and the average sale price was 38.7% of appraised value.
The sale rate has fallen for five straight months since the government began a nationwide farmland survey in May.
The survey focuses mainly on land acquired since 1996, and 27% of the plots checked were flagged for possible violations of farmland law.
The survey raised concern about possible orders to dispose of land, particularly over unused plots and rental arrangements.
The government says it will seek a special law to exempt farmland not linked to speculation from disposal orders, allowing owners to regularize their land or entrust it to the public farmland bank.
The field investigation is still under way, with 85% of its on-site checks completed and 94% progress including checks awaiting review by local officials.
South Korean farmland auctions recorded their lowest-ever auction rate and sale-price ratio in October.
Of 4,536 farmland plots put up for court auction, 690 were sold, an auction rate of 15.2%.
The average sale price was 38.7% of assessed value, the lowest monthly figure since data collection began in 2001.
The auction rate fell for five consecutive months after the government began a nationwide farmland survey in May.
The government and an auction-market expert pointed to different factors behind falling farmland prices and auction results.
- Who
- South Korean farmland sellers and bidders, alongside the government and auction-market analysts.
- What
- Farmland auction rates and sale prices fell to record lows in October.
- When
- October 2026; the results were reported on November 8.
- Where
- Nationwide in South Korea.
- Why
- The article links the decline to weaker demand and concerns connected to the government’s farmland survey; the government also cites a weak property market in most regions outside Seoul.
Government
Auction-market expert
Causes of falling farmland prices
Government
The government says the decline is not entirely due to the survey and points to weak property markets across most regions outside Seoul.
Auction-market expert
Jiji Auction expert Lee Ju-hyeon said reduced buying in the sales market leads to falling auction rates and sale-price ratios.
The government began a nationwide survey focused mainly on farmland acquired since 1996.
The agriculture ministry and the Democratic Party announced measures to let certain inherited, elderly farmers’ and customary leasehold farmland be regularized rather than uniformly ordered for disposal.
The agriculture ministry announced plans for special legislation to exempt all farmland not involved in speculation from disposal under the survey.
Court auctions took place for 4,536 farmland plots nationwide, with 690 sold.
Yonhap reported October’s record-low auction rate and sale-price ratio.
- Auctioned plots
- 4,536
- Plots sold
- 690
- Auction rate
- 15.2%
- Average sale-price ratio
- 38.7% of assessed value
- Data series began
- 2001
1 source
What people are saying
Farmland is a market with limited demand.
The real estate market is not good in most regions outside Seoul.