Choo Mi-ae "5% Cap on 2+2 Year Lease Terms"... Jeon Ju-hye "Highly Likely Unconstitutional" (Summary)

Full Committee Meeting of the Legislative and Judiciary Committee Heated by 'Real Estate' Issue

[Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] Justice Minister Choo Mi-ae stated regarding the contract renewal request system, "We are considering a plan to set the contract period to 2+2 years (one extension) and allow local governments to decide the renewal increase rate within 5%." The United Future Party opposed this, saying, "There is a possibility of unconstitutionality."

Minister Choo appeared at the National Assembly Legislation and Judiciary Committee plenary session on the 27th and responded to a question from Kim Jin-ae, a member of the Open Democratic Party, saying, "We have decided to review in the mid-to-long term whether to apply this to new contractors as well."

She added, "There has been much discussion about this law, so I hope it passes quickly," and said, "The rent ceiling system is already showing signs of soaring prices, so passing it quickly would send an appropriate signal to the market." On this day, the Legislation and Judiciary Committee received multiple bills on the Housing Lease Protection Act, which mainly propose renewing the contract period from 2+2 years up to unlimited and setting the rent ceiling at 5% compared to the existing rate.

When Representative Kim asked, "The jeonse (key money deposit) market is already shaking. I think there is an issue that this law should apply to existing leases," Minister Choo replied, "If the contract is ongoing and the tenant is living there, applying this law is considered a non-retroactive law and is generally permitted," adding, "I believe there is room for adjustment by setting exceptional clauses by the legislator, but it is necessary to apply it to ongoing contracts."

Jeon Ju-hye, a proportional representative from the United Future Party, said, "There are many issues with the Housing Lease Protection Act amendment, so I ask for in-depth review," pointing out, "The three laws including the rent ceiling system, the reporting system, and the contract renewal request system, but the rent reporting system increases the burden on landlords, raising concerns about reduced supply and rising jeonse prices, and the contract renewal request system excessively infringes on landlords' property."

She added, "The 5% rent ceiling will rather fuel the rise in jeonse prices," and said, "The amendment to the three lease laws contains some retroactive application, so there is a high possibility of unconstitutionality."

Regarding the prosecution reform issue, the opposition also sharpened their criticism. On this day, United Future Party lawmaker Jang Je-won said, "Looking at the government and the Ministry of Justice, democratic control over the Prosecutor General is good, but they are strangling and suffocating him so he cannot work," and criticized, "There is an attempt to make the Prosecutor General an honorary position."

He also criticized the amendment to the Prosecutors' Office Act proposed by Kim Nam-guk of the Democratic Party of Korea as "typical over-legislation" and said, "It is an unnecessary bill made to strangle the Prosecutor General." The amendment proposed by Representative Kim guarantees the independence and priority of duties of the prosecutors in charge of inspection at the Supreme Prosecutors' Office. In response, Representative Kim rebutted, "There seems to be a misunderstanding about the proposed bill," saying, "It was said that the bill strangles the Prosecutor General, but that is not true. Is ensuring human rights and lawful investigation in prosecution strangling the prosecution?"

Minister Choo also responded to a question from Democratic Party lawmaker Kim Jong-min, who mentioned fundamental reform plans, saying, "Currently, the Prosecutor General acts as a monarch-like figure, approving only cases of interest and taking all the authority of the original authority holders, commanding the prosecution chain of command under the Prosecutor General," adding, "Former Minister of Justice Park Sang-ki recently pointed out through the media that he acts more like a chief investigator involved in individual cases than a Prosecutor General."

United Future Party lawmaker Jo Su-jin said, "Listening to the ruling party lawmakers and Minister Choo, I confirmed once again the true meaning of the prosecution reform the government and ruling party are shouting. In short, it is called prosecution reform but means taming the prosecution," and said, "In 1996, during the civilian government, Minister Choo and 16 others jointly proposed a bill to abolish the investigative authority of the Minister of Justice, but the Democratic Party, the successor of the New Politics Alliance for Democracy, and Minister Choo, who now sits in the Ministry of Justice minister's seat, do not want to acknowledge this law."

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