Housing in Redevelopment and Reconstruction Zones Faces Increased Difficulty in Rental Registration

Jinseongjun Proposes Partial Amendment to Private Housing Special Act
Local Government Heads Can Reject If Rental Registration Period Within 8 Years Faces Risk of Loss

Rejection Also Possible If Housing Debt Ratio Including Rent Is High
Expected Rent Must Be Submitted If No Tenant Present

Jin Seong-jun, a member of the Democratic Party of Korea, is attending the Supreme Council meeting held at the National Assembly on the 17th. On the 16th, Jin made a controversial remark during a TV debate on real estate measures, saying, "Even if you do it like that, housing prices will not fall." / Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Chunhee Lee] In the future, it is expected to become difficult to register rental housing within redevelopment and reconstruction zones where demolition is anticipated within eight years. Additionally, to register a vacant house as rental housing, the expected rent must be reported to the basic local government.

According to the National Assembly on the 23rd, Jin Seong-jun, a member of the Democratic Party of Korea, officially proposed the "Partial Amendment to the Special Act on Private Rental Housing" containing these provisions on the 17th.

The most notable point in this bill is the specification of reasons for which the head of the relevant basic local government can refuse the registration application during the registration process of long-term general private rental housing. The applicant's creditworthiness, the debt ratio of the rental housing applied for, and the risk of demolition due to redevelopment projects are the criteria.

The amendment allows local government heads to refuse rental registration applications for houses at risk of demolition within the mandatory eight-year rental period due to redevelopment or reconstruction. According to Seoul City's "2025 Seoul Metropolitan City Urban and Residential Environment Maintenance Basic Plan," it takes an average of 4 years and 5 months from designation of the maintenance zone to the start of construction. Based on this, it appears that it will be difficult to apply for rental registration for houses within redevelopment project zones.

The amendment also allows refusal of registration if the debt ratio of the rental housing applied for is high. When calculating the debt ratio, rental deposits are also included. The intention is to sanction and exclude from the market irresponsible rental operators who indiscriminately register and become unable to return deposits.

When registering without tenants, the upper limit of the deposit must be submitted by the applicant for calculation. The bill allows local government heads to refuse registration considering the debt ratio and the applicant's creditworthiness.

The bill also mandates subscription to rental deposit guarantee insurance for all registered rental housing. In addition, it includes provisions to abolish short-term private rental housing and long-term general purchase rental housing types for apartments, as well as to extend the mandatory rental period for newly registered rental housing.

Representative Jin explained the reason for proposing the bill, stating, "With the promotion of the rent ceiling system, the right to request renewal of lease contracts, and the rental contract reporting system, it became necessary to reform the existing registered rental system to ensure consistency among these systems."

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