Korea Farmland Recovery Sale, Lease & Repurchase Ledger

Plan beyond the sale that pays off the debt

South Korea’s farmland recovery purchase program allows Korea Rural Community Corporation, or KRC, to purchase land from a farmer or agricultural entity in temporary financial difficulty and lease it back to that operator.
The former owner can request repurchase before the lease ends, subject to the governing rules.
Debt relief at sale and the money needed to regain the land therefore belong in the same plan.

This Korean 2026 calculator connects a purchase proposal, actual debt repayment, annual rent, regular savings and separate funding in one cash ledger.
It is useful when a farm family needs to decide how much sale cash can be reserved for repurchase after allowing for living costs, farming costs and payments on remaining debt.

Separate the 2026 rules from personal contract terms

Three independent program reference checks

MAFRA’s 2026 agricultural program guide, printed page 59, describes disaster loss of at least 50%, or debt of at least KRW 40 million with a debt-to-assets reference of 40%.
This calculator compares the three figures independently and does not combine them into an eligibility decision.
KRC must review the recognized assets and debts, agricultural status, recovery prospects and qualifying land.

Debt-to-assets is total debt divided by assets, and is withheld if assets are zero.
The disaster check remains withheld until the disaster-evidence checkbox is selected.
The KRC review field records an outcome you have actually obtained from the agency; the calculator does not approve it.
A figure below one reference does not by itself settle all disaster pathways, exceptions or application possibilities.

Evidence states follow the saved ledger

Profile, sale, lease, repurchase and funding each carry evidence.
If several documents support a stage, list them in the note and check that they cover every entry.
Assumed and confirmed states require a valid date and a nonempty evidence name, dated no later than the input as-of date.
An evidence date is a documentation reference, not a sale date or calculated legal repurchase deadline.

Enter funds without counting the same money twice

Formulas connecting repurchase and cash balances

Step-by-step use

1. Enter assets and debts on a consistent basis, record disaster evidence and the KRC eligibility review.
   Leave the profile unconfirmed if the documents are not available.
   
2. Transfer the separate land and facility amounts from the proposal, then enter repayment, sale costs and the cash actually allocated to repurchase.
   The entire remaining sale proceeds are not allocated automatically.
   
3. Select the horizon, check extension needs and enter annual rent and deposits.
   Prepare a separate monthly calendar when due dates and incoming cash occur at different times.
   
4. Enter KRC’s quoted full-repurchase total or compare an explicit land appraisal and rate under simple or compound assumptions.
   If the method is unknown, leave repurchase unconfirmed and organize the other stages first.
   
5. Remove overlaps among sale allocations, existing savings, regular saving and one-off receipts.
   Check evidence dates and correct any validation errors.
   
6. Review the gaps and annual balances, then save TXT or print to PDF.
   Update the figures and evidence states after confirming personal terms with KRC.
   

A fictional seven-year funding example

Assume land proceeds of KRW 300,000,000, no facilities, total debt of KRW 250,000,000, repayment of KRW 240,000,000 and sale costs of KRW 10,000,000.
Net sale cash is KRW 50,000,000; allocate KRW 30,000,000 of it and add KRW 20,000,000 of independent existing savings to open the repurchase account at KRW 50,000,000.
Remaining debt is KRW 10,000,000 and unallocated sale cash is KRW 20,000,000.

For seven years, assume annual rent of KRW 2,000,000, regular saving deposits of KRW 24,000,000 and no one-off receipts.
The balance rises by KRW 22,000,000 per year, with total rent of KRW 14,000,000 and regular deposits of KRW 168,000,000.

Reducing only the appraisal to KRW 320,000,000 makes the repurchase price KRW 320,000,000 and the gap KRW 119,000,000.
Keeping the KRW 360,000,000 appraisal and choosing annual compounding at 2% gives a land-price assumption of KRW 344,605,700.
Adding original facility proceeds of KRW 10,000,000 separately makes the simple-assumption repurchase price KRW 352,000,000; facilities are not mixed into the land-appraisal comparison.

Interpret three different shortfalls

If the monthly target exceeds realistic income, reconsider the planned repurchase timing, unallocated sale cash, confidence in one-off receipts and farming cash flow.
Annual netting does not establish whether rent due early in a year can be met by cash arriving late in that year.
Even positive balances at every year end do not guarantee the absence of a monthly liquidity gap.

Practical scenarios and limits

• Family saving discussions: vary annual deposits and enter a promised contribution only once.
  An expected family transfer can remain assumed until its evidence is confirmed.
  
• Seven years versus extension: an unconfirmed extension withholds rent and balances from year 8.
  Distinguish a hypothetical extension from actual approval; a statutory maximum is not your personal contract end date.
  
• Rate and appraisal sensitivity: compare simple interest, annual compounding and different appraisals, then check the actual formula and period basis with KRC.
  This is a complete-year plan from sale to full repurchase, without monthly or daily contractual interest proration.
  
• Complex payment histories: historical partial repurchases, installments and prepayments are not automatically credited.
  Partial repurchase has an appraisal-based statutory branch, so the full-repurchase lower-price comparison must not be reused for it.
  

Amounts and notes are not stored on the server; save TXT or print before closing the page.
Exports contain raw inputs, evidence names, dates and states, so avoid account numbers and personal identifiers.
Tax refunds, future market prices, loan approval and repayments, investment returns and final program selection are outside the model.

Frequently asked questions