@article{ART002943510},
author={KIM, Hyunseok and Park, Sung Kyu},
title={Just Compensation in Korea’s Land Takings},
journal={Korea Real Estate Review},
issn={2092-5395},
year={2023},
volume={33},
number={1},
pages={7-22},
doi={10.35136/krer.33.1.1}

TY - JOUR
AU - KIM, Hyunseok
AU - Park, Sung Kyu
TI - Just Compensation in Korea’s Land Takings
JO - Korea Real Estate Review
PY - 2023
VL - 33
IS - 1
PB - korea real estate research institute
SP - 7
EP - 22
SN - 2092-5395
AB - This paper reviews grounds for just compensation and the market value standard in compulsory land acquisition, and then identifies limitations in the Korea’s practices on compensation appraisal. In addition, the actual compensation level in Korea is empirically examined using available data. Results show that the appraisal of land compensation tend to fall short of the level of market-value-based compensation. The main reasons in terms of methods are two-fold. First, compensation is calculated on the basis of Officially Assessed Land Prices (OALP), which is estimated to be 40~50% of observed market price. Second, the compensation amount is set at the ‘past’ and not the ‘current’ market value by excessively excluding development surplus arising from the project to be promoted. As an ultimate remedy, this paper discusses a change in land compensation appraisal method, that utilizes market transaction prices more directly rather than relying on the OALP. As a supplementary measure in the transition period, an institutional framework is recommended to allow active adjustments to the primary compensation appraisal according to circumstances of the target land.
KW - Takings;Compensation for Land;Under-compensation Bias;Compensation Appraisal
DO - 10.35136/krer.33.1.1
ER -

KIM, Hyunseok and Park, Sung Kyu. (2023). Just Compensation in Korea’s Land Takings. Korea Real Estate Review, 33(1), 7-22.

KIM, Hyunseok and Park, Sung Kyu. 2023, "Just Compensation in Korea’s Land Takings", Korea Real Estate Review, vol.33, no.1 pp.7-22. Available from: doi:10.35136/krer.33.1.1

KIM, Hyunseok, Park, Sung Kyu "Just Compensation in Korea’s Land Takings" Korea Real Estate Review 33.1 pp.7-22 (2023) : 7.

KIM, Hyunseok, Park, Sung Kyu. Just Compensation in Korea’s Land Takings. 2023; 33(1), 7-22. Available from: doi:10.35136/krer.33.1.1

KIM, Hyunseok and Park, Sung Kyu. "Just Compensation in Korea’s Land Takings" Korea Real Estate Review 33, no.1 (2023) : 7-22.doi: 10.35136/krer.33.1.1

KIM, Hyunseok; Park, Sung Kyu. Just Compensation in Korea’s Land Takings. Korea Real Estate Review, 33(1), 7-22. doi: 10.35136/krer.33.1.1

KIM, Hyunseok; Park, Sung Kyu. Just Compensation in Korea’s Land Takings. Korea Real Estate Review. 2023; 33(1) 7-22. doi: 10.35136/krer.33.1.1

KIM, Hyunseok, Park, Sung Kyu. Just Compensation in Korea’s Land Takings. 2023; 33(1), 7-22. Available from: doi:10.35136/krer.33.1.1

KIM, Hyunseok and Park, Sung Kyu. "Just Compensation in Korea’s Land Takings" Korea Real Estate Review 33, no.1 (2023) : 7-22.doi: 10.35136/krer.33.1.1