ABSTRACT
This study analyzes the structural causes of the rapid increase in vacant houses in rural Korea and examines the transition in government policy responses. As the demographic cliff and rural extinction intensify, vacant houses have evolved from temporary vacancies into structural, irreversible spatial problems. This paper reviews the legislative changes, specifically the amendments to the Agricultural and Fishing Villages Improvement Act and the proposed Special Act on Rural Vacant House Maintenance (2025). It further investigates the shift from government-led demolition to data-driven management and rural community partnership. The policy paradigm concerning rural vacant housing in Korea has definitively shifted from "protecting private property rights" to "prioritizing public safety and community sustainability."
Keywords: Rural vacant house, Rural vacant housing policy
INTRODUCTION
Korea is currently facing an unprecedented demographic cliff and the crisis of local extinction. These macroscopic changes - low birth rates and an aging population - are most acute in rural areas, spatially manifesting as an explosive increase in rural vacant housing. Unlike the temporary vacancies caused by rural-to-urban migration during the industrialization era, the vacant houses of the 2020s represent "structural and irreversible vacancies" resulting from natural population decline, the passing of elderly residents, and physical obsolescence (Jung et al., 2020).
According to the Housing Census by Statistics Korea, the rural population decreased from 16 million in the early 1980s to 9.61 million in 2022. Paradoxically, the total number of housing units increased from 2.85 million to 4.16 million during the same period (Population and Housing Census in Korea, each year). This indicates a continued housing supply despite population decline, coupled with the accumulation of non-marketable, aging housing stock. As of 2023, the number of vacant houses nationwide reached approximately 1.535 million, a 43.6% increase from 2015 (Han et al., 2025).
A critical distinction lies in the heterogeneity between urban and rural vacancies. The vacancy rate in rural areas is approximately 13%, double that of urban areas (6.4%) (Sim et al., 2024). These vacant lots not only pose safety hazards (collapse, fire) but also serve as a mechanism for further population outflow by degrading the landscape and settlement conditions.
This report highlights that the issue of vacant houses in rural areas has emerged beyond a simple issue of personal asset mismanagement, threatening the sustainability of the nation and rural areas. Therefore, this report closely tracks the paradigm shift in vacant house policies recently pursued by the Korean government and local governments and closely analyzes the process of establishing legal and institutional frameworks for the management and utilization of vacant houses in rural areas.
The purpose of this report is to illuminate the process of systematizing institutional measures to address and resolve the vacant house problem in Korea's rural areas and to suggest future institutional and policy challenges.
LEGAL FRAMEWORK AND SYSTEMATIZATION FOR RURAL VACANT HOUSE MANAGEMENT
The dual legal structure and amendments to the Agricultural and Fishing Villages Improvement Act
Korea’s vacant house policy has developed through a dual structure: the Act on Special Cases Concerning Unoccupied House or Small-scale Housing Improvement for urban areas, and the Agricultural and Fishing Villages Improvement Act for rural areas. This dichotomy, while intended to tailor policies to specific spatial needs, has historically led to fragmentation.
- Urban areas: Governed by the Act on Special Cases Concerning Unoccupied House or Small-scale Housing Improvement.
- Rural areas: Governed by the Agricultural and Fishing Villages Improvement Act.
This separation often leads to confusion in "Urban-Rural Composite Cities," where administrative boundaries do not neatly align with the landscape's physical reality. However, focusing on the rural context, the evolution of the Agricultural and Fishing Villages Improvement Act provides a clear timeline of the government's awakening to the severity of the issue. Focusing on the rural context, the government’s response has intensified through three distinct phases.
Phase 1: Recognition and passive support (2008–2009)
In the late 2000s, the legal framework was in its infancy.
- Key developments: The Act was amended to include a definition of "Vacant House" (2008) and established grounds for financial support, such as demolition costs (2009).
- Implication: The policy stance was fundamentally passive. The state viewed vacant houses as private property issues and offered limited subsidies (e.g., demolition costs) only when owners voluntarily sought assistance. There was no mechanism to compel action against negligent owners.
Phase 2: Systematization and obligation (2020–2021)
As the number of vacant houses surged in the 2010s, it became evident that voluntary measures were insufficient. The government began laying the foundation for systematic management.
- 2020: Amendments introduced the concept of "Specific Unoccupied Houses" (houses posing safety or hygiene risks) and established reporting and action protocols. It also allowed local governments to formulate maintenance plans and conduct status surveys, though these were initially discretionary.
- 2021: A critical turning point occurred. The establishment of "Vacant House Maintenance Plans" and the conduct of "Fact-finding Surveys" became mandatory for local governments.
- Implication: This marked the shift toward "Evidence-Based Policy." The central government effectively mandated that every rural municipality must identify exactly how many vacant houses exist, where they are, and their condition. This forced local administrations to move beyond anecdotal management to data-driven administration.
Phase 3: Enforcement and spatial intervention (2024)
The most aggressive evolution occurred with the amendment enforced on July 3, 2024.
- Introduction of Charges for Compelling Compliance: Previously, if an owner ignored a demolition order for a dangerous house, the local government had to rely on cumbersome "Administrative Vicarious Execution" procedures. The 2024 amendment granted the power to impose fines of up to KRW 5 million (approximately equivalent to USD 3,400, at an exchange rate of KRW 1,470 per USD as of January 2026) on owners of "Specific Unoccupied Houses" who fail to comply with remediation orders. This provided a direct financial leverage to force compliance.
- Priority Maintenance Zones: The amendment allowed heads of local governments to designate areas with high concentrations of vacant houses as "Priority Maintenance Zones."
- Ex Officio demolition: The powers for direct demolition by the authorities (Ex Officio) were strengthened.
- Implication: The policy paradigm has definitively shifted from "protecting private property rights" to "prioritizing public safety and community sustainability." The introduction of the "Priority Maintenance Zone" concept is particularly significant, as it signals a shift from managing individual buildings (dots) to managing entire areas (planes), enabling "Selection and Concentration" in resource allocation.
Table 1. Key amendments to the Agricultural and Fishing Villages Improvement Act regarding vacant houses
|
Year
|
Key amendments & changes
|
Policy implication
|
|
2008
|
• Definition of 'Vacant House' established
|
First legal recognition as a management target
|
|
2009
|
• Procedures for maintenance and support
|
Legal basis for public intervention (demolition support)
|
|
2020
|
• Maintenance plans & fact-finding surveys (Optional)
• Reporting of 'Specific Vacant Houses.'
|
Recognition of the need for systematic management
|
|
2021
|
• Mandatory maintenance plans & surveys
|
Strengthened accountability; shift to data-driven administration
|
|
2024
|
• Introduction of Performance Fines
• Designation of Priority Maintenance Zones
• Strengthened ex officio demolition
|
Secured enforcement means against owners; introduction of area-based focused maintenance.
|
Source: The Agricultural and Fishing Villages Improvement Act
Future legislation: The Special Act on Rural Vacant House Maintenance (2025)
Current laws cover broad rural issues, limiting the focus on vacant houses. Consequently, the enactment of the Special Act on Rural Vacant House Maintenance is being pursued for 2025. This proposed legislation aims to sever the vacant house provisions from the general act, creating a standalone, powerful legal tool comparable to the urban sector's Act on Urban Unoccupied House. Key legislative proposals include:
- Clarification of definition: Defining vacant houses as "rural housing unoccupied or unused for more than one year (excluding unsold housing)" to align with urban laws.
- State responsibility: Mandating the establishment of policies and financial support by the state.
- Deregulation and incentives: To attract the private sector—which has largely shunned rural vacant houses due to low profitability—the Special Act introduces drastic exceptional cases. These include tax reductions (specific exemptions for acquisition and property taxes for entities revitalizing vacant homes), exemption from charges (relief from various statutory burdens that increase development costs) andprivate contracts for public land (allowing the sale or lease of state/public land via private contract if necessary for a vacant house maintenance project).
This legislative effort demonstrates a commitment to elevating the vacant house issue to a strategic level for rural survival.
STATUS OF POLICY RESPONSE: DATA, INCENTIVES, AND GOVERNANCE
Policy content and tools: Data integration and incentives
The Ministry of Agriculture, Food and Rural Affairs (MAFRA) is advancing policies based on data-driven management and a Policy Mix of incentives and penalties (MAFRA, 2024).
- Data standardization and integration: Previously, discrepancies existed between Statistics Korea (232,000 units) and MAFRA (66,000 units) due to differing criteria (MAFRA, 2024). The government has now established "Integrated Guidelines for National Vacant House Surveys" and designated the Korea Real Estate Board (REB) to unify standards and grading (Grades 1-3). This allows for a triage approach: Grade 1 houses might be immediately habitable, while Grade 3 houses are earmarked for demolition. This standardization creates a reliable "Common Data Layer" upon which all other policies can be built.
- Tax and financial support: Incentives include low-interest loans for remodeling, and acquisition/property tax reductions. Notably, from 2025, multi-homeowners acquiring an additional vacant house in depopulation areas will be treated as single-home owners for tax purposes, aiming to attract urban demand ("Second House"). For example, if a person who already owns one home in a city buys an additional house (including a vacant one) in a designated "Population Decrease Area" (Depopulation Area), they will still be treated as single-home owner for tax purposes. This prevents punitive taxation (Capital Gains Tax, Comprehensive Real Estate Holding Tax) that is usually applied to multi-home owners. It is a powerful incentive designed to unleash urban capital into the rural housing market, promoting the "Dual Life" (5 days in the city, 2 days in the country) lifestyle.
Shift in delivery mechanism: Restoring market functions
Policy execution is shifting from government-led demolition to revitalizing market functions via private platforms.
- Rural Empty House Bank: This project, set for 2025, links public vacant house data with private real estate web-portals (e.g., NAVER Real Estate, Zigbang) to reduce information asymmetry. The government funds the creation of "marketable information" (repair costs, legal status) to facilitate transactions. This involves taking the raw data from fact-finding surveys and - with owner consent - enhancing it with details on internal conditions, rights/title analysis, and estimated repair costs.
- Rural vacant house revitalization project (started in 2024): Launched by MAFRA, this project aims to support private and third-sector businesses, in partnership with rural communities to develop and implement innovative business models by renovating vacant rural housing. These business models encompass a wide range of areas, including eco-tourism leveraging rural heritage, providing community care services and village hotel accommodations, giving remote workspaces for urban office workers, and revitalizing rural hubs.
- Digital platforms: Systems like "Vacant House Info e-Notification"(operated by the Korea Real Estate Board: REB) and "Green Road"(a platform for return-to-farm information, operated by the Korea Agency of Education, Promotion and Information Service in Food, Agriculture, Forestry and Fisheries: EPIS) provide GIS-based monitoring of vacant house locations and grades.
Governance: From vertical hierarchy to multi-layered cooperation
The governance structure is shifting from a top-down directive model to a collaborative ecosystem.
- National level: The silo effect is being dismantled. Since September 2024, MAFRA, Ministry of Land, Infrastructure and Transport (MOLIT), and Ministry of the Interior and Safety (MOIS) have operated a joint "Vacant House Maintenance TF." This inter-ministerial body is crucial for harmonizing the conflicting regulations of the Urban and Rural Acts, especially in hybrid regions.
- Local and community governance: Local governments are increasingly partnering with the third sector - social enterprises, NPOs, and rural communities.
Also, local governments are evolving from simple executors of demolition subsidies to Comprehensive Space Managers.
- Spatial analysis capabilities: Utilizing GIS to analyze vacancy patterns and designate "Priority Maintenance Zones." For instance, Sangju City differentiates strategies (demolition vs. utilization) based on its own grading system.
- Active administration: Exercising authority to issue safety orders and impose performance fines on "Specific Vacant Houses," requiring high conflict management skills regarding private property rights.
- Platform operation: Local governments act as "Market Makers" by operating their own Empty House Banks where the private market fails.1
CONCLUSION: LIMITATIONS and CHALLENGES
Since 2020, rural vacant house policy in Korea has transitioned to a systematic approach involving mandatory surveys and the 2025 Special Act. The introduction of data-based systems and a mix of penalties (fines) and incentives (tax breaks) marks significant progress.
Despite these advances, however, the policy's impact on rural communities remains limited. The primary reasons are a mismatch between systems and a lack of impetus for implementation. The contradiction in the tax system, where demolition of vacant homes actually increases taxes, is a major barrier to voluntary participation by owners. Furthermore, there are no legal exceptions to address complex ownership issues, and local governments' administrative capacity and budgets are inadequate to handle the vast number of vacant homes. Above all, the challenge of overcoming the trend of regional extinction, the root cause of vacant dwellings, remains. These integrated solutions to rural problems must be linked to policies and systems for the maintenance and utilization of vacant homes.
By combining the coercive power of the new laws with the soft power of market incentives and community governance, Korea aims to transform these "ruins of extinction" into "resources for regeneration." The path forward requires unwavering political will to reform tax laws and a sophisticated, data-driven approach to spatial restructuring.
REFERENCES
Moonsoo Jung, Sihyeon Park, Namhoon Kim, Minseok Kim (2020). The Current Status of Rural Vacant Houses and Policy Tasks. Korea Rural Economic Institute.
Jaehun Sim, Booyoung Kim, Sangjin Ma (2024). A Study on Systematizing Rural Vacant House Policies to Attract Agricultural and Rural Populations. Korea Rural Economic Institute.
Sukyoung Han, Sunhye Bae, Teseung Jin (2025). A Study on a Regionally Tailored Vacant House Management System to Address Rural Extinction. Architecture & Urban Research Institute.
Ministry of Agriculture, Food and Rural Affairs (2024). Rural Vacant House Improvement Work Manual.
Ministry of Land, Infrastructure and Transport, Ministry of Agriculture, Food and Rural Affairs, Ministry of Oceans and Fisheries. (2023). Integrated Guidelines for the National Vacant House Survey.
Population and Housing Census in Korea, each year.
Recent Trends and Challenges in Policy for the Maintenance and Utilization of Rural Vacant Housing in Korea
ABSTRACT
This study analyzes the structural causes of the rapid increase in vacant houses in rural Korea and examines the transition in government policy responses. As the demographic cliff and rural extinction intensify, vacant houses have evolved from temporary vacancies into structural, irreversible spatial problems. This paper reviews the legislative changes, specifically the amendments to the Agricultural and Fishing Villages Improvement Act and the proposed Special Act on Rural Vacant House Maintenance (2025). It further investigates the shift from government-led demolition to data-driven management and rural community partnership. The policy paradigm concerning rural vacant housing in Korea has definitively shifted from "protecting private property rights" to "prioritizing public safety and community sustainability."
Keywords: Rural vacant house, Rural vacant housing policy
INTRODUCTION
Korea is currently facing an unprecedented demographic cliff and the crisis of local extinction. These macroscopic changes - low birth rates and an aging population - are most acute in rural areas, spatially manifesting as an explosive increase in rural vacant housing. Unlike the temporary vacancies caused by rural-to-urban migration during the industrialization era, the vacant houses of the 2020s represent "structural and irreversible vacancies" resulting from natural population decline, the passing of elderly residents, and physical obsolescence (Jung et al., 2020).
According to the Housing Census by Statistics Korea, the rural population decreased from 16 million in the early 1980s to 9.61 million in 2022. Paradoxically, the total number of housing units increased from 2.85 million to 4.16 million during the same period (Population and Housing Census in Korea, each year). This indicates a continued housing supply despite population decline, coupled with the accumulation of non-marketable, aging housing stock. As of 2023, the number of vacant houses nationwide reached approximately 1.535 million, a 43.6% increase from 2015 (Han et al., 2025).
A critical distinction lies in the heterogeneity between urban and rural vacancies. The vacancy rate in rural areas is approximately 13%, double that of urban areas (6.4%) (Sim et al., 2024). These vacant lots not only pose safety hazards (collapse, fire) but also serve as a mechanism for further population outflow by degrading the landscape and settlement conditions.
This report highlights that the issue of vacant houses in rural areas has emerged beyond a simple issue of personal asset mismanagement, threatening the sustainability of the nation and rural areas. Therefore, this report closely tracks the paradigm shift in vacant house policies recently pursued by the Korean government and local governments and closely analyzes the process of establishing legal and institutional frameworks for the management and utilization of vacant houses in rural areas.
The purpose of this report is to illuminate the process of systematizing institutional measures to address and resolve the vacant house problem in Korea's rural areas and to suggest future institutional and policy challenges.
LEGAL FRAMEWORK AND SYSTEMATIZATION FOR RURAL VACANT HOUSE MANAGEMENT
The dual legal structure and amendments to the Agricultural and Fishing Villages Improvement Act
Korea’s vacant house policy has developed through a dual structure: the Act on Special Cases Concerning Unoccupied House or Small-scale Housing Improvement for urban areas, and the Agricultural and Fishing Villages Improvement Act for rural areas. This dichotomy, while intended to tailor policies to specific spatial needs, has historically led to fragmentation.
This separation often leads to confusion in "Urban-Rural Composite Cities," where administrative boundaries do not neatly align with the landscape's physical reality. However, focusing on the rural context, the evolution of the Agricultural and Fishing Villages Improvement Act provides a clear timeline of the government's awakening to the severity of the issue. Focusing on the rural context, the government’s response has intensified through three distinct phases.
Phase 1: Recognition and passive support (2008–2009)
In the late 2000s, the legal framework was in its infancy.
Phase 2: Systematization and obligation (2020–2021)
As the number of vacant houses surged in the 2010s, it became evident that voluntary measures were insufficient. The government began laying the foundation for systematic management.
Phase 3: Enforcement and spatial intervention (2024)
The most aggressive evolution occurred with the amendment enforced on July 3, 2024.
Table 1. Key amendments to the Agricultural and Fishing Villages Improvement Act regarding vacant houses
Year
Key amendments & changes
Policy implication
2008
• Definition of 'Vacant House' established
First legal recognition as a management target
2009
• Procedures for maintenance and support
Legal basis for public intervention (demolition support)
2020
• Maintenance plans & fact-finding surveys (Optional)
• Reporting of 'Specific Vacant Houses.'
Recognition of the need for systematic management
2021
• Mandatory maintenance plans & surveys
Strengthened accountability; shift to data-driven administration
2024
• Introduction of Performance Fines
• Designation of Priority Maintenance Zones
• Strengthened ex officio demolition
Secured enforcement means against owners; introduction of area-based focused maintenance.
Source: The Agricultural and Fishing Villages Improvement Act
Future legislation: The Special Act on Rural Vacant House Maintenance (2025)
Current laws cover broad rural issues, limiting the focus on vacant houses. Consequently, the enactment of the Special Act on Rural Vacant House Maintenance is being pursued for 2025. This proposed legislation aims to sever the vacant house provisions from the general act, creating a standalone, powerful legal tool comparable to the urban sector's Act on Urban Unoccupied House. Key legislative proposals include:
This legislative effort demonstrates a commitment to elevating the vacant house issue to a strategic level for rural survival.
STATUS OF POLICY RESPONSE: DATA, INCENTIVES, AND GOVERNANCE
Policy content and tools: Data integration and incentives
The Ministry of Agriculture, Food and Rural Affairs (MAFRA) is advancing policies based on data-driven management and a Policy Mix of incentives and penalties (MAFRA, 2024).
Shift in delivery mechanism: Restoring market functions
Policy execution is shifting from government-led demolition to revitalizing market functions via private platforms.
Governance: From vertical hierarchy to multi-layered cooperation
The governance structure is shifting from a top-down directive model to a collaborative ecosystem.
Also, local governments are evolving from simple executors of demolition subsidies to Comprehensive Space Managers.
CONCLUSION: LIMITATIONS and CHALLENGES
Since 2020, rural vacant house policy in Korea has transitioned to a systematic approach involving mandatory surveys and the 2025 Special Act. The introduction of data-based systems and a mix of penalties (fines) and incentives (tax breaks) marks significant progress.
Despite these advances, however, the policy's impact on rural communities remains limited. The primary reasons are a mismatch between systems and a lack of impetus for implementation. The contradiction in the tax system, where demolition of vacant homes actually increases taxes, is a major barrier to voluntary participation by owners. Furthermore, there are no legal exceptions to address complex ownership issues, and local governments' administrative capacity and budgets are inadequate to handle the vast number of vacant homes. Above all, the challenge of overcoming the trend of regional extinction, the root cause of vacant dwellings, remains. These integrated solutions to rural problems must be linked to policies and systems for the maintenance and utilization of vacant homes.
By combining the coercive power of the new laws with the soft power of market incentives and community governance, Korea aims to transform these "ruins of extinction" into "resources for regeneration." The path forward requires unwavering political will to reform tax laws and a sophisticated, data-driven approach to spatial restructuring.
REFERENCES
Moonsoo Jung, Sihyeon Park, Namhoon Kim, Minseok Kim (2020). The Current Status of Rural Vacant Houses and Policy Tasks. Korea Rural Economic Institute.
Jaehun Sim, Booyoung Kim, Sangjin Ma (2024). A Study on Systematizing Rural Vacant House Policies to Attract Agricultural and Rural Populations. Korea Rural Economic Institute.
Sukyoung Han, Sunhye Bae, Teseung Jin (2025). A Study on a Regionally Tailored Vacant House Management System to Address Rural Extinction. Architecture & Urban Research Institute.
Ministry of Agriculture, Food and Rural Affairs (2024). Rural Vacant House Improvement Work Manual.
Ministry of Land, Infrastructure and Transport, Ministry of Agriculture, Food and Rural Affairs, Ministry of Oceans and Fisheries. (2023). Integrated Guidelines for the National Vacant House Survey.
Population and Housing Census in Korea, each year.