Offshore Wind Worldwide 2022 edition - Flipbook - Page 167
Offshore Wind Worldwide 2022
VI. Real estate
A. Rights over land to be secured
The developer of an OWF in Korea will be
required to secure title to or usage rights
over all lands to be included in the project
site and all lands necessary to install
transmission lines from the wind farm to the
assigned KEPCO substation.
The terms for acquiring title, use or lease
rights to private lands are generally freely
negotiable with the private landowner.
On the other hand, the process for acquiring
title, use, or lease rights to land owned by the
government is regulated by statute. If the
land is classified as an “administrative
property”, then title thereto may not be
acquired. In this case, the developer must
obtain a use permit from the national or local
government in order to develop electric
facilities such as interconnection facilities
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thereon. If the land is classified as a “general
property”, then title, lease, or usage rights
thereto may be acquired from the national or
local government, as applicable. For leases
entered into on or after October 1, 2020,
government owned lands may be leased for a
maximum initial term of 10 years. The initial
term is renewable up to two occasions for an
additional 10-year period, in each case (i.e.,
government owned lands may now be leased
for maximum periods of 30 years).
B. Costs and risk of legal challenges
Costs for land rights vary from case to case
depending on the value of the relevant land
and the price negotiated with the land owner
(or the applicable governmental authority in
the case of publicly owned lands). There is
very little risk of a developer’s legitimate title
to or usage rights over applicable lands being
challenged.