Land development projects inevitably result in land use changes. When a development project related to the placement of land or structures on the ground is completed, the land designation is changed accordingly.

Let’s take a simple example of a country house.

First, buy farmland as land for a country home. If this farmland is converted to agricultural land and a country house is built, the land on which the house will be built will be reclassified as land.

The entrance road or part of the road within the complex is converted into a road. When land use changes like this, the land category changes to a different land category according to the changed use. Land designation is determined according to the main purpose or use. This is called zonalism.

The area that those involved in development projects are most interested in is land use change. The reasons can be summarized in two.

First, most land use changes occur during the process of using or developing land.

A development project is the use of land, and land use is divided into two types: when the use of the land is changed without a building and when the use is made by building a building. All of these require land use changes, and land use changes occur after completion.

Examples of the former include reclaiming mountainous land to create farmland, or diverting agricultural land from rice paddies to use it as a parking lot for a country cafe.

When a mountainous land is reclaimed, the forest land is changed to a field, and when a rice field is turned into a parking lot, the rice field is converted into mixed land or a parking lot. At this time, a land use change occurs because the main use of the land is permanently changed.

When building a building or structure on land, after the building is completed, the land designation of the land on which the building is built changes depending on the main use of the building.

If a field (farmland) is converted into farmland to create a logistics warehouse, the field becomes warehouse land, and if the mountainous land along local roads is cut down and converted to produce a gas station, the forest becomes a gas station site.

In this way, when the use of land changes, the land use will be changed later, but the principle is that the land use cannot be changed first without any change of use or building.

The second reason for changing land use is to increase the value of the land one owns. In other words, land use is changed for the purpose of increasing land use or raising land prices.

Land has different uses depending on its type, and these uses are regulated in detail in various land construction laws. Utilization and land prices vary greatly depending on the land type.

In general, land and mixed land are the most expensive, but in the metropolitan area, gas station land, factory land, and warehouse land are sometimes more expensive than land.

On the other hand, agricultural fields and rice paddies are generally cheap, costing less than one-third of the land. Also, forest land is usually less than half of farmland. So, if you change farmland to land, you can get more than three times the land price.

It is calculated that if the forest land is changed to land or warehouse land, the land price will increase by more than six times. This is the main reason for changing the name. 

Original link: http://www.newsway.co.kr/view.php?tp=1&ud=2014090614545808194