Democratic Party: "All Legislation Including Comprehensive Real Estate Tax Law and Jeonse Rent Cap to Be Enacted This Month"

[Image source=Yonhap News]

[Asia Economy Reporter Park Cheol-eung] The Democratic Party of Korea announced on the 10th that it will pass tenant protection bills such as the rent increase cap system along with measures to stabilize the housing market, including strengthening the comprehensive real estate tax, at this month's extraordinary session of the National Assembly.

Cho Jung-sik, the Democratic Party's Policy Committee Chair, said to reporters after the Supreme Council meeting on the same day, "Through yesterday's party-government consultation, we have prepared taxation measures to reduce the burden on low-income earners and actual buyers, expand housing supply, and strengthen tax burdens on multi-homeowners and speculative housing," adding, "We will handle related legislation such as real estate tax laws at the July National Assembly."

He continued, "To protect the monthly rent market and tenants, the 'Three Lease Laws'?which introduce the monthly rent reporting system, the right to request contract renewal, and the rent increase cap?will also be passed at the July National Assembly."

This means pursuing two-way legislation that reduces demand from multi-homeowners and speculative buyers while strengthening tenant rights for low-income households without homes. It is known that the Democratic Party proposed stronger regulations than the government's plan during recent party-government consultations. With an overwhelming majority in the National Assembly, the Democratic Party is showing its intention to take the lead in policy and practice 'responsible politics' to stabilize the real estate market.

In particular, this appears to take into account the worsening public opinion as not only housing prices but also the rise in jeonse (long-term deposit lease) prices, especially in the metropolitan area, have accelerated recently. As government regulatory measures are introduced, demand is shifting from buying to jeonse, and due to historically low interest rates, landlords prefer monthly rent or semi-monthly rent, leading to a decrease in jeonse supply.

Once the Three Lease Laws are passed, landlords will not be able to raise jeonse prices by more than 5% at contract renewal, and tenants will be guaranteed a minimum residence period of four years through contract renewal.

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