Plan agreement timing and compensation payments together
This calculator covers land included in a designated development project under the Korean Special Act on Expansion of the National Backbone Power Grid.
It uses the notified appraisal compensation to compare an early agreement incentive, a lump sum and installments under Korean rules verified for 2026.
The payment schedule uses notified acquisition or use compensation B for an agreement without a purchase request, or the separate purchase price Q for a purchase request.
Negotiated acquisition of substation sites is also within scope; when comparing use compensation with purchase, B must contain the actual use-compensation amount.
All amounts are in Korean won (KRW); this is a Korea-specific system, including when the calculator is used in English.
Use the result to prepare an informed discussion
Check evidence of receiving the compensation negotiation request, agree a contract timetable and discuss any purchase request before selecting a payment plan.
Article 21 permits the project operator to pay the additional compensation and offer payment arrangements; the estimate does not establish approval or a guaranteed entitlement.
Scope and exclusions
Confirm the applicable project
The land must be within the relevant national backbone power grid development area and acquired or used through agreement.
Enter the notified appraisal amount calculated under Article 68 of the Korean Land Compensation Act.
The calculator does not create an appraisal from area, an official land price or a land-use impairment ratio.
Other compensation systems
General transmission-line neighborhood support, ordinary overhead-line land compensation, nearby substation housing purchases and residential improvement payments are outside this scope.
Tax liabilities, inheritance shares and the prospects of winning a compensation dispute require separate assessment.
National or local government property and property owned by public institutions, local public corporations or local public agencies are excluded from the early agreement incentive by the Enforcement Rule annex.
An uncertain project designation or ownership category should be checked with the operator before treating any result as payable compensation.
Documents and inputs to prepare
- Receipt date: Use the date the compensation negotiation request actually reached the owner, supported by delivery evidence, rather than its issue or mailing date.
- Contract completion date: Enter the date the acquisition or use contract is expected to be completed, rather than a meeting date.
- Notified compensation: Separate the underlying appraisal amount from an incentive already included in a notice to avoid adding the incentive twice.
- Purchase request and purchase price: Confirm that this is land included for an overhead transmission line; a proposed purchase valuation may differ from the use compensation.
- Initial lump-sum payment date: This determines the first installment month and need not be the contract date.
- Rates by year: Prepare the initial published interest and local land-price rates, subsequent April rates or explicitly hypothetical assumptions, and a separate comparison discount rate.
The incentive has two compensation bands and three timing outcomes
Split the appraisal compensation at KRW 100,000,000 before applying the rates.
The percentage for the amount above this threshold applies only to that excess, rather than the entire compensation.
Within two months of receipt
First KRW 100,000,000 × 75% + excess × 45%
The higher timing band is available for the eligible agreement scenario completed within the two-month period.
After two months, within three months
First KRW 100,000,000 × 50% + excess × 30%
Passing two months does not by itself remove the entire incentive if the agreement remains within the three-month period.
After three months or an excluded scenario
The standard comparison uses zero incentive after the applicable period, for adjudication, for an Article 21(3) purchase request or for an excluded owner.
Exceptional circumstances recognized by the project operator, such as relevant overseas absence, are not automatically granted by this calculator.
Worked example: KRW 150,000,000 appraisal compensation
For an eligible owner without another exclusion, an agreement within two months gives KRW 100,000,000 × 75% + KRW 50,000,000 × 45% = KRW 97,500,000 incentive.
The compensation plus incentive is KRW 247,500,000.
For an agreement after two months but within three months, the incentive is KRW 100,000,000 × 50% + KRW 50,000,000 × 30% = KRW 65,000,000.
The combined amount is KRW 215,000,000, giving an incentive difference of KRW 32,500,000 between these timing bands.
Giving up the early KRW 97,500,000 incentive for adjudication would require a 65% increase over the original KRW 150,000,000 compensation to offset that incentive alone.
This simple break-even increase excludes time value, tax, legal expenses and uncertainty about the adjudication outcome; it does not predict an increase or recommend a dispute.
Two or three months are calendar periods
Do not replace the periods with 60 or 90 days.
The basic Korean Civil Act approach excludes the receipt day and starts the period the following day, using calendar months under Articles 157, 159 and 160.
A period starting on the first day of a month ends on the final day of the relevant number of months.
For a start within a month, it normally ends the day before the corresponding date in the final month; when that corresponding date does not exist, the final day of that month applies.
Month-end receipt example
Receipt on 2026-02-28 means counting from 2026-03-01.
The nominal two-month end is 2026-04-30 and the nominal three-month end is 2026-05-31, before any holiday extension.
Simply retaining the receipt day number would incorrectly produce April 28 in this example.
Civil Act Article 161 provides for extension when the last day is Saturday or a public holiday.
Holiday extensions, recognized exceptional circumstances and the actual contract completion time require confirmation with the project operator.
A nominal calendar end shown on screen is not a declaration that all rights have expired after that date; distinguish it from the confirmed operational deadline.
Land-use compensation and a purchase request have different ownership outcomes
Article 21(3) concerns land included in the development area to install a transmission line in the overhead space.
Enforcement Decree Article 26 requires a purchase request within three months of receiving the negotiation request, subject to recognized special circumstances.
Subdivision restrictions, restrictions on land transactions and comparable obstacles can prevent purchase; filing a request does not guarantee a sale.
The purchase request itself affects the incentive
The statutory exclusion refers to an owner who has requested purchase, rather than only an owner whose sale has already completed.
The cash comparison is purchase price minus use compensation and its eligible incentive.
Because use compensation may leave ownership with the owner while purchase transfers it, this difference is not automatically a net profit.
Consider retained land value, use restrictions and future disposal before deciding.
Notice Article 4(2) also permits an installment application for compensation paid following a purchase request.
Exclusion from the incentive and eligibility to apply for installments are separate questions.
Choose an initial percentage and installment term
The lump-sum compensation basis is the appraisal compensation plus the eligible incentive.
The owner selects an initial payment in 10% increments and an installment period of one to ten years, in whole years.
Selecting 100% initially leaves no installment principal.
Installment principal = compensation + eligible incentive − initial lump sum
Monthly principal = installment principal ÷ installment months
A larger initial percentage provides more immediate cash, while a smaller percentage allocates more principal to later payments.
A longer term does not guarantee a fixed monthly payment or adequate living expenses.
Compare immediate funding needs and monthly spending, then complete the required installment application and agreement with the operator.
Accumulate interest and land-price changes separately
Notice Article 7 requires conversion of the annual interest and land-price rates to monthly compound rates.
For an annual rate r expressed as a decimal, the monthly rate is (1+r)^(1/12)−1 rather than r divided by 12.
Cumulative interest = (1 + previous cumulative interest) × (1 + monthly interest) − 1
Cumulative land-price change = (1 + previous cumulative land-price change) × (1 + monthly land-price change) − 1
Monthly payment = monthly principal × (1 + cumulative interest + cumulative land-price change)
In the first payment month, each previous cumulative rate is zero, so the current monthly rate is included from the first payment.
Do not combine both rates into one compound rate or multiply the two cumulative growth factors together.
Displayed won amounts are estimates allocated using differences between rounded cumulative amounts.
Each monthly payment equals the rounded exact cumulative payment through that month minus the rounded exact cumulative payment through the preceding month; principal is allocated cumulatively in the same way.
This preserves small totals that could otherwise disappear when each month is rounded independently, but the actual operator policy for fractional won must still be checked against the agreement and settlement statement.
Separate published annual rates from future assumptions
The notice defines interest by reference to the January ten-year Korean government bond yield published annually by the Bank of Korea, using the rate the operator posts to the national power grid information system.
The land-price rate is the posted annual local rate for the city, county or district where the land lies.
A national average or a rate from another district is not the confirmed rate for this land.
The normal rate period runs from April 1 through the following March 31, using rates posted as of April 1.
For the initial year, check the latest posted rates as of the agreement date.
For later years, enter the applicable published rates or clearly identified future assumptions, retaining the accumulated rates rather than resetting them each year.
An example such as 3% annual interest is hypothetical, not a verified official rate for a particular year or district.
Future rates throughout a ten-year schedule cannot be known today, so the projected total is not a guaranteed future receipt.
Zero-rate example and the risk of falling land prices
A simple zero-rate check
With KRW 12,000,000 compensation, no incentive, 0% initially, a one-year term and both annual rates at 0%, the payment is KRW 1,000,000 per month.
The nominal total is KRW 12,000,000, and the present value is identical when the discount rate is also zero.
A hypothetical negative land-price rate
For KRW 1,000,000 monthly principal, zero monthly interest and −1% monthly land-price change, the first payment is KRW 990,000.
The equivalent annual land-price rate is approximately −11.36151282838708%, used only to illustrate the formula.
Negative land-price changes can reduce payments; do not assume an automatic floor that removes this loss.
Read nominal totals alongside present value
The nominal total adds the initial payment and all monthly payments.
Present value converts later payments using a separate user-selected discount rate, with the initial lump-sum payment date as time zero.
It is not the value as of the contract date.
Present value = initial payment + sum of each monthly payment ÷ (1 + annual discount rate)^(elapsed months/12)
A larger nominal installment total can still have a lower present value when discounted more heavily.
The discount rate expresses a comparison assumption and personal funding preference, rather than the interest paid by the operator or a promised investment return.
Compare scenarios using consistent assumptions and consider the timing of actual cash needs.
From the calculation to an application
- Confirm the development area and ownership category, and preserve evidence of receiving the request.
- Compare the two-month and three-month incentive bands and the incentive forgone if adjudication is chosen.
- Before an overhead-line land purchase request, review incentive exclusion, ownership transfer and the possibility that purchase is refused.
- Apply for installments when the acquisition or use contract is concluded, using Enforcement Rule Form 11, and review the separate installment agreement.
- Confirm the initial payment date and applicable published rates before comparing the monthly plan with spending and funding needs.
Notice Article 9 requires the initial payment within two weeks after the relevant ownership, surface or sectional surface right is established, with installments beginning the following month.
Rights may be established after the contract date, so immediate payment on signing should not be assumed.
Confirm actual payment dates and early termination
The verified notice contains inconsistent holiday wording: Article 9(2) refers to the previous business day, while attached Agreement Form 1, Article 1(4), refers to the next business day for a bank holiday.
The schedule therefore identifies payment months rather than automatically asserting an exact deposit date.
Confirm the applicable date with the operator and the actual agreement.
Under Notice Article 10, death during the term stops installments and triggers a lump-sum settlement to the heirs.
The remaining installment principal is adjusted by cumulative interest and land-price changes at termination; a deposit procedure may apply when the heirs cannot be identified.
Article 12 also provides for termination at the request of the recipient and payment of the remaining compensation as a lump sum.
This calculator does not determine individual inheritance shares, deductions for improper payments or a binding early-termination settlement.
Frequently asked questions
Does 45% apply to the entire amount above the threshold?
Within two months, 75% applies to the first KRW 100,000,000 and 45% only to the excess.
Is every incentive lost after two months?
The later band generally remains available for an agreement within three months, at 50% for the first KRW 100,000,000 and 30% for the excess, subject to eligibility and confirmed deadlines.
What if the purchase request has been filed but the sale is unfinished?
Article 21(1) excludes an owner who has requested purchase, so check incentive exclusion before the sale has completed.
Can purchase-request compensation be paid in installments?
Notice Article 4(2) permits an installment application in that situation, with the relevant application and agreement still required.
Does this include ordinary transmission-line resident support?
No, it covers compensation negotiation for land within a national backbone power grid development project, excluding ordinary neighborhood support and nearby housing support calculations.
Is 3% the official interest rate?
An example 3% is hypothetical; enter the initial and annual rates published for the relevant period and location.
Is the first installment paid without a rate adjustment?
No, the previous cumulative rates start at zero and the current monthly rates are included in the first payment calculation.
Does a larger installment total make installments preferable?
Present value, immediate funding needs, unknown future rates and falling land-price risk can change the comparison, so a nominal total alone cannot settle the choice.
Are taxes determined by the monthly receipt dates?
This tool does not determine capital-gains recognition, relief or filing deadlines, and installment dates alone do not establish the tax treatment.
Did the installment notice start in June 2026?
The effective date is 2025-09-26; the 2026-06-16 creation date in the source record is not its commencement date.
Official sources and verification date
The current Korean legislation, notice and Article 8 formula image were checked through the National Law Information OPEN API on 2026-11-08.
Recheck amendments, project designation and published local rates before contracting.
- Special Act on Expansion of the National Backbone Power Grid, Article 21 — verified version effective 2026-09-18, MST 284293
- Enforcement Decree, Article 26 — effective 2026-07-01, MST 287267
- Enforcement Rule, Articles 12 and 13, incentive annex and Form 11 — effective 2025-10-01, MST 278875
- Installment Payment Standards for National Backbone Power Grid Land Compensation, Notice 2025-162, Articles 2, 4–10 and 12 — effective 2025-09-26
- Korean Civil Act, Articles 155, 157, 159, 160 and 161 — basic period calculation rules, MST 284415
- National power grid information system — project information and applicable published rates
Compare the estimate with the notice and agreement
Review the incentive band, purchase-request status, initial cash requirement and term, then confirm deadlines, rates, won rounding and deposit dates with the operator.
Use the land compensation calculator for a separate tax-oriented comparison, and obtain an individual answer on tax recognition for installment compensation.
Treat this result as a planning estimate for the discussion; actual payments depend on the applicable notice, review and agreement.