Legislation targets investors who buy protected forestland cheaply at auction, then resell it to the government at a profit
Legislation is being put forward to reform the private forest acquisition system and prevent state funds earmarked for forest conservation and the public good from becoming a target for speculators.
Rep. Yun Jun-byeong of the National Assembly's Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee — a Democratic Party of Korea lawmaker representing Jeongeup and Gochang-gun in North Jeolla Province — introduced the bill Tuesday. The legislation, dubbed the "Forest Speculation Eradication Act," aims to stamp out a practice in which investors acquire protected forestland cheaply at auction and then sell it back to the government through its private forest purchase program to pocket short-term gains.
Under current law, the state and local governments operate a private forest acquisition system that allows them to purchase privately owned forestland — including protected forest areas — that meets certain criteria, using public funds to enhance forests' public functions and improve the management of national forests. The program is a key national policy for forest protection and ecosystem conservation.
In recent years, however, concerns have grown that some actors in the real estate auction market and the forestry sector are exploiting the program. Speculators and some real estate planning firms acquire protected forestland — land that cannot be developed — at low prices through auctions, then apply to the government's private forest purchase program on the grounds that the land serves a public purpose, generating large profits in a short period.
Such practices drain the state's limited fiscal resources and waste public funds, while also depriving law-abiding forest owners of the chance to sell their land to the government for legitimate conservation purposes. Critics have also argued that the scheme corrupts national policy by turning it into a vehicle for private gain, undermining fairness.
The proposed amendment would allow the Korea Forest Service commissioner to restrict eligibility for the government's forest purchase program based on how the land was acquired and how long it has been held, with specific criteria to be set by presidential decree. The measure is intended to block speculative transactions in which land is acquired cheaply at auction and immediately offered to the government, and to strengthen the integrity and public credibility of the private forest acquisition system.
"The private forest acquisition system is a national policy designed to enhance forests' public functions and preserve ecosystems — it is absolutely unacceptable for some speculators to exploit it for enormous profits," Yun said. "We must put the system on the right footing so that public funds meant for forest conservation do not become prey for speculators."
He added that the amendment was "the minimum measure needed to uphold the original purpose of the system — forest conservation and the public good — and to ensure that law-abiding forest owners have a fair chance," and pledged to continue working on reforms to prevent forest policy from being abused as a tool for speculation.
kwonhl@heraldcorp.com
