Frithjof Kuhnen (1996):
Synthesis of Current State of and Trends in Land Tenure and Land Policy in Asia

1.1.3 Korea

The stalemate of 1953 left the republic in a state of devastation, with no basic industry and infrastructure. Exogenous factors, (Japan's defeat, the Korean war, fear of communism and support by the USA) allowed a rapid egalitarian land reform, but it took some time before a real development of agriculture could start. It was only in the 60s that, in view of the increasing difficulties to feed the population, a broad-based upgrading policy for the rural areas was launched to increase the purchasing power within the country and build a market for the emerging industry. Farm operation technology was improved by irrigation schemes, electrification and mechanization were introduced and the use of HYVs, fertilizer and pesticides was promoted. This was combined with a well-organized cooperative system and probably the best extension service in Asia. At the end of the 60s, the result was a fivefold increase in grain production and a two-and-a-half-fold increase in paddy production as compared with 1946.

Private ownership combined with intensive production improved the living conditions of a broad part of the rural population and created purchasing power for the emerging industry. Industrial development followed the neoclassical development model and was soon furthered by the Vietnamese War. The US chose to produce the requirements for their war in the proximity of Vietnam and with cheap labour, as in Korea, instead of transporting them from overseas. This gave a quick uplift to the industrial sector and caused the rural areas to be somewhat neglected.

At the end of the Vietnamese War, the Korean industry was able, after a very short time, to organize mass export to European mail order firms and department stores, and, later on, to the oil-producing countries as well. Industry was, to quite an extent, of a large-scale nature and was located round a few large cities, leaving the rural areas untouched. The consequence was massive urbanization, and villages became the residence places of aged people and of their grandchildren, whom parents left with them in order to save expensive urban housing. In 1993, 78 % of the total population of Korea was urban population.

To counterbalance this urbanization, the government launched some drives, especially a 'universities into the province' scheme and a highly successful community development (SAE MEAUL UNDONG) programme which considerably improved the living conditions in the rural areas. Despite these efforts, agriculture developed in the shadow of industry, and quite a number of development planners advocated giving up agriculture and living on imports. While this policy was never accepted, the ever-increasing income gap between agriculture and industry led to outmigration, and, nowadays, agriculture consists, to quite an extent, of part-time farming, usually managed by elderly people and women. It is only in the few plains where mechanization is easy that there are full-time farmers operating in a highly productive way.

The differentiation between urban-industrial and rural-agricultural areas caused strong regional income disparities, leading to a continuous population migration. In the wake of this process, small terraces are left fallow in remote areas because of the high labour requirements as compared to the possible output. Some areas are now used for fodder production instead of that of field crops.

Despite the prevailing economic situation, there is little tendency to increase farm size. While the ceiling is 3 ha, most farms are of a size of 1 - 2 ha. This is because there is a greater trend towards part-time farming than towards large full-time holdings. According to the land reform law, leasing is forbidden, but this has never been enforced. It is estimated that 20 to 30 % of the land is actually leased and cultivated by persons other than the owners. The contracts are termed 'labour against share wage,' and, as this is an old tradition, especially in the south of the country ('Chonse', 'Ko-ji'), these contracts can hardly be exposed as being illegal.

Korea is still looking for a new man-land relation which guarantees a rapid increase in productivity in a mostly hostile environment, but which ascertains, at the same time, that the rural labour force can reap an income which is attractive enough to meet their expectations. This is mainly a question of land operation and land management. The active extension service has successfully introduced the possibilities of new technologies to the farmers, and marketing, at least for staples, is well organized by cooperatives. At present, experiments are being made with cooperation in production, especially among full-time farmers (who own the machinery) and part-time farmers, who enlarge the cultivated area on which this machinery is used and, who supply manual labour. This means reaping economies of scale without tackling the ownership structure.

There is a slow increase in land markets - selling as well as renting - and there is a need to regulate this new market. The regulation to that effect may include the abolishment of the 3 ha ceiling, at least for genuine farmers, to enable a smooth adaptation of farm sizes to the varying technological requirements in different regions. As well, it is necessary to legalize tenancy as a buffer and means of adjustment for the varying availability of land and labour. Today's illegality of tenancy has consequences: neither the landlord nor the tenant takes the risk of investing in land, and the rent is influenced by the need to disguise the contract.

As well, the 'land-to-the-tiller' policy is in danger because urban capitalists and institutions invest in land. Even if this is due to speculation, tax evasion, risk reduction, or investment in agriculture as a commercial enterprise (or a mixture of all these), it is questionable whether this is in the interest of agriculture and of society. In places located near cities, the transfer of agricultural land to non-agricultural uses demands a land policy that hardly exists or is not enforced.

Pattern East Asia

A strict egalitarian reform including the provision of services resulted in great increases in agricultural production and income. This higher purchasing power caused linkage effects: rural industries developed with labour-intensive production, at first for the local market, later for export as well. A large share of the agricultural income has been invested in these small-scale enterprises which provided non-agricultural jobs to the surplus population. In time, non-agricultural incomes exceeded more and more the farming income and led to mass transition to non-agricultural jobs, while the land was cultivated within the framework of part-time farming. The illegality of tenancy caused difficulties in transferring land to those who are still interested in farming. The search for new, appropriate man-land relations is still being pursued.

Under the conditions prevailing in East Asia, traditional land tenure problems no longer play an important role. The more so do other problems such as land use planning, city planning, taxation of windfall profits from selling agricultural land for other use, controlling misuse of land and chemicals in agriculture, protection of landscape, use of land for recreational purpose, etc., come to the forefront.