I. Legal basis

• The 2024 Law on Land

II. Amendment to the authority to issue Land use Rights Certificates

Pursuant to Clause 33, Article 1 of the Draft Law on Amendments, it is proposed to amend and supplement Clause 1, Article 136 of the 2024 Land Law regarding the authority to issue, for the first time, the Certificate of Land Use Rights and Ownership of Assets Attached to Land (commonly referred to as the “Land Use Rights Certificate” or “Red Book”) in cases of first-time registration where the applicant requests the issuance of such Certificate, as well as in the case specified in Point b, Clause 7, Article 219 of the 2024 Land Law, as follows:

• The provincial-level land administration authority shall issue Certificates of Land Use Rights and Ownership of Assets Attached to Land to land users and owners of assets attached to land as specified in Clauses 1, 2, 5, and 7 of Article 4 of the 2024 Land Law, excluding those falling under Point b of this clause, except for the cases prescribed in Point b of this clause;
• The Chairperson of the commune-level People’s Committee shall issue Certificates of Land Use Rights and Ownership of Assets Attached to Land to land users and owners of assets attached to land as specified in Clauses 3, 4, and 6 of Article 4 of the 2024 Land Law, as well as to those falling under Clauses 1, 2, 5, and 7 of Article 4 who are allocated land, leased land, or granted recognition of land use rights by the State under the forms prescribed in Article 118, Clause 3 of Article 120, or Article 119 and Clause 2 of Article 120, and who are exempt from the full amount of land use levy or land rent for the entire lease term.

Accordingly, compared with the current law, the Draft Law proposes changes to the authority responsible for issuing Certificates of Land Use Rights and Ownership of Assets Attached to Land (“Red Books”). Specifically, it proposes assigning such authority to the provincial-level land administration authority in place of the provincial-level People’s Committee, and to the Chairperson of the commune-level People’s Committee in place of the district-level People’s Committee.

III. Amendments to the regulations on land valuation

Article 158 of the 2024 Land Law on the principles, bases, and methods of land valuation is proposed to be amended and supplemented as follows:

• Land valuation shall be conducted in accordance with the following principles:
  • Ensuring the State’s role as the representative of land ownership and its authority to determine land prices;
  • The land value determined through land valuation methods shall serve as reference information for the State in making decisions on land prices;
  • Compliance with the prescribed order and procedures for land valuation;
  • Ensuring consistency with the requirements of state management and the actual conditions of the locality.
• The bases for land valuation include:
  • The intended use of the land subject to valuation;
  • The land use term. In the case of agricultural land allocated by the State to households or individuals within the agricultural land allocation quota, and agricultural land acquired through transfer within the land acquisition quota, the land use term shall not be taken as a basis for land valuation;
  • Input data used for land valuation in accordance with the applicable land valuation methods;
  • Other factors affecting land prices;
  • Relevant legal provisions in force at the time of land valuation.

IV. Expansion of two cases of land recovery for socio-economic development purposes

Under the current provisions of the 2024 Land Law, enterprises may obtain access to land for project implementation through two principal mechanisms.

First, the State land recovery mechanism: an enterprise submits a project proposal, and if the project falls within the categories eligible for State land recovery as prescribed in Article 79, the competent authority shall carry out the land recovery and subsequently allocate or lease the land to the investor.

Second, the land use rights agreement mechanism: this mechanism applies to projects that do not fall within the categories subject to State land recovery. In such cases, the enterprise must directly negotiate with land users for the transfer, capital contribution, or lease of land use rights in accordance with civil law principles.

The current Draft Law amending the Land Law introduces a noteworthy provision whereby, if an investor has successfully reached agreements covering more than 75% of the land area within the project site or has obtained the consent of more than 75% of the land users, but is unable to secure agreements for the remaining portion, the State may consider recovering such remaining land and allocating or leasing it to the investor for project implementation.

V. Conclusion

The current Draft Law amending the Land Law proposes a number of notable revisions aimed at further improving the legal framework governing land administration and land use, while addressing difficulties and challenges that have arisen in the implementation of the 2024 Land Law. Among these, the proposed changes to the authority for issuing Certificates of Land Use Rights and Ownership of Assets Attached to Land, the amendments to the principles and bases for land valuation, and the expansion of cases in which the State may recover land for socio-economic development purposes are expected to contribute to the simplification of administrative procedures, enhance the effectiveness of state management, and create a more favorable environment for investment activities.

In particular, the proposed provision allowing the State to consider recovering the remaining land area where an investor has successfully reached agreements covering more than 75% of the land area or has obtained the consent of more than 75% of the land users within the project area is regarded as a measure to address situations in which projects are delayed or stalled due to the inability to finalize agreements with a small number of remaining land users. However, this proposal also warrants careful consideration to ensure an appropriate balance between the requirements of socio-economic development and the protection of the lawful rights and interests of land users.

As the aforementioned proposals are currently still under consultation and subject to further refinement during the legislative drafting process, individuals, organizations, and enterprises are advised to closely monitor the progress of the law-making process in order to promptly update any changes that may affect their rights and obligations in relation to land matters.

VI. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

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