Strengthening Tenant Protection and Reforming Subscription System... Ministry of Land, Infrastructure and Transport "Establishing a Fair Real Estate Order"

Ministry of Land Announces '2020 Comprehensive Housing Plan' Today
Creating a Rental Market Where Landlords and Tenants Coexist
Accelerating Public Price Realization Focused on High-Value Homes

Minister of Land, Infrastructure and Transport Kim Hyun-mi is responding to questions at the Land, Infrastructure and Transport Committee plenary meeting held at the National Assembly in Yeouido, Seoul, on the afternoon of the 8th. (Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] The government is accelerating efforts to establish a fair and transparent real estate market order by introducing a lease reporting system and setting up a reporting center for illegal activities related to registered rental properties.

The Ministry of Land, Infrastructure and Transport (MOLIT) announced the '2020 Comprehensive Housing Plan' containing these measures on the 20th. First, MOLIT plans to make greater efforts to create a lease market where landlords and tenants coexist harmoniously.

To this end, the lease reporting system will be introduced next month, and tenants of single-family and multi-family houses will be allowed to subscribe to guarantee insurance without the landlord's consent. The guarantee fee rate system will also be improved to reduce the burden on tenants. Through this, the ministry aims to actively protect tenants, who are in a subordinate position in relation to landlords.

Additionally, MOLIT will strengthen management of registered rental housing operators who receive various tax benefits but fail to fulfill tenant protection obligations. A nationwide joint inspection by related agencies will be conducted in July to verify compliance with public obligations by rental operators, and sanctions will be imposed if violations are detected.

To enhance tenant protection, a reporting center for illegal activities related to registered rental properties will also be established next month. To help tenants find rental properties more easily, the ministry will promote the indication of whether rental listings on private real estate platforms are registered rentals. For publicly supported private rental housing, efforts will be made to strengthen tenant representative meetings and improve bidding for housing management companies.

This year, MOLIT will accelerate the realization of official property prices, focusing on high-priced housing. The aim is to reduce the gap between official prices and market prices to rationalize the burden of property taxes. The ministry explained that it will prepare a roadmap for the realization of official prices by October and promote consistent improvement in realization rates.

Furthermore, MOLIT will reform the real estate subscription system, which has been criticized for many issues. It will provide housing ownership information in advance before subscription applications to minimize ineligible applicants. The number of preliminary winners will be increased to expand supply opportunities for genuine demanders. After winning, a mandatory residence period will be imposed to encourage genuine demanders rather than speculative forces to apply for subscriptions.

In particular, the government will focus on strengthening transparency in redevelopment projects, where speculative demand is high. Prohibited acts such as guaranteeing sale prices will be specified, and punishment standards will be established. Mandatory rental housing through redevelopment projects will be supplied as public rental housing to stably guarantee tenants' residence periods.

This content was produced with the assistance of AI translation services.