Rep. Lee Kwang-jae of the Democratic Party of Korea [provided by the lawmaker's office]
Rep. Lee Kwang-jae of the Democratic Party of Korea [provided by the lawmaker's office]

Rep. Lee Kwang-jae of the Democratic Party of Korea, who represents Hanam-gap in Gyeonggi Province and chairs the National Assembly's Budget and Accounts Committee, said Wednesday he had introduced three bills collectively dubbed the "state asset activation package" — a special act on support for areas surrounding returned USFK land, an amendment to the State Property Special Exceptions Restriction Act, and an amendment to the State Property Act.

The three bills are Lee's first sponsored legislation since joining the 22nd National Assembly. South Korea has grown into a top-10 economy by GDP, yet many citizens feel their quality of life has not kept pace — a gap that has drawn persistent criticism. Lee identified one solution as the "active use of dormant state assets," arguing that returned USFK sites and idle state- and military-owned land across the country have been left neglected, tied up by longstanding regulations and poor development viability.

"If state assets are not used to improve people's lives, those assets might as well not exist," Lee said. "It is the state's role to actively invest national property in raising the quality of life for its citizens." He added that he would "lower the institutional barriers so that land owned by the state becomes an asset for communities and their people."

Hanam in Gyeonggi Province is where the limits of idle state property are most starkly visible. Some 71.85 percent of the city's total area is locked within a development-restriction zone — the greenbelt — and state- and public-owned land, including USFK sites such as Camp Colbern and the Seongnam Golf Course, amounts to about 30.2 million square meters.

Under current law, when the state sells returned USFK land to local governments, the installment repayment period is capped at between five and 20 years, making it difficult to attract large-scale, long-term investment. The proposed amendment would extend that ceiling to 50 years and allow long-term leases of state and public land within returned zones to project developers for up to 50 years, renewable once.

The bill would also permit the construction of permanent structures on leased land and lower the lease-rate formula to ease upfront investment costs. It would abolish restrictions on the types of factories that can be newly established, opening the door to a wider range of industrial facilities, and prioritize development in zones that do not require soil decontamination or other remediation work.

If passed, the legislation is expected to unlock medium- and long-term investment in returned USFK sites, including the Seongnam Golf Course in Wirye-dong and the Camp Colbern site in Cheonhyeon-dong, both of which have drawn attention for their development potential.

For the long-term installment and lease provisions introduced through the USFK land amendment to function effectively, the legal basis for state property special exceptions must also be updated. The bill adds the relevant exceptions to the annex of the State Property Special Exceptions Restriction Act, completing the institutional framework needed to develop public-purpose facilities — including advanced-industry education facilities, research facilities, and cultural and sports facilities — on returned USFK land.

The package also introduces a new provision allowing local governments to exchange state-owned general property they need to build and operate public facilities, community welfare facilities, and regional strategic or advanced-industry infrastructure for locally owned public property.

Current law strictly limits such exchanges to cases where the state itself needs the property or where the exchange would enhance the asset's utility — conditions centered on the state's own needs — making it difficult for local governments to secure sites for pressing local projects in a timely manner. The amendment would let local governments swap land without a fiscal burden, and is seen as particularly useful for municipalities with limited available land.

For a city like Hanam, which holds about 30.2 million square meters of state and public land, the land-swap mechanism would allow strategically located state property to be used for facilities serving local residents.

"Returned USFK land is ground that was sacrificed for national security for decades — and it is now land of opportunity that can raise the quality of life for citizens and serve as a hub for regional development," Lee said. "I will push for swift passage so that the state's land becomes the future of our communities."


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