South Korea’s Defense Ministry said Wednesday it has reached an agreement to acquire a Lotte Group-owned plot of land as the site for the upcoming deployment of an advanced US missile defense system.

According to the agreement, the ministry will exchange state-owned land in Namyangju, Gyeonggi Province, for the Lotte Skyhill Country Club and its surrounding land. The golf resort sits in the southeastern county of Seongju, North Gyeongsang Province, which was designated on Sept. 30 as the spot for the Terminal High Altitude Area Defense anti-missile system.

“(The ministry) agreed with Lotte Skyhill CC to each conduct an assessment on the values of the lands that will be exchanged,” said a ministry official. The State Property Acts stipulates that state-owned property cannot be sold, but can be exchanged for privately owned property.

The Seoul-Washington alliance in July decided to deploy the THAAD system in the peninsula against North Korea’s nuclear and missile threats.

The Namyangju property, located adjacent to Seoul, is currently being used by troops under the Army’s 2nd Logistical Support Command.

The market value of the land is about 140 billion won ($200 million).

The military said the market price for the Lotte Skyhill CC land is around 45 billion won, and the club’s book value is about 85 billion won.

The golf resort and surrounding land owned by Lotte is about 1.48 million square meters, while the military’s asset is about 200,000 square meters.

The swap will require no additional expenditures and will not require parliamentary approval, according to the ministry.

Officials said they would provide parts of the Namyangju land in accordance to the estimated market price of the golf resort, as they expect the military land to be valued at a much higher price.

They said much of the resort’s facilities will be maintained to be used by US Forces Korea.

But Rep. Woo Sang-ho of the main opposition Democratic Party of Korea has accused the ministry of undervaluing the golf resort, saying its current value should be closer to 150 billion won. Lotte reportedly acquired the golf resort between 2008 and 2009 at around 70 billion won.

While the ministry has maintained the deal would not require the National Assembly’s consent, the opposition has countered the argument.

Rep. Kim Jong-dae of the minor Justice Party said Wednesday that the government is wasting money by buying a piece of land much larger than the 116,500 square meters needed to station THAAD.

Under the Status of Forces Agreement, South Korea provides the land and infrastructure -- such as electricity, water and roads -- for the base, while the US pays for internal facilities.

The ministry said they will continue negotiating with the US about the details on construction costs and providing the land.

It has been negotiating with Lotte on the acquisition since the original plan to station the THAAD in Seongsan-ri, Gyeongsang Province, backfired after locals protested over the system’s environmental effects.

A THAAD battery consists of six launchers, 48 interceptor missiles, a fire control system and an AN-TYP-2 radar. Locals have complained the electromagnetic wave emissions from the radars may have negative effects on their health, although the government has denied such claims.

Citizens in Gimcheong, adjacent to the new site, have been protesting against the decision, although the Seoul-Washington alliance has made it clear the deployment will continue according to schedule.

By Yoon Min-sik (minsikyoon@heraldcorp.com)