"Landlord Property Rights Infringement" vs "Tenant Rights": What Do You Think About the Lease 3 Laws?

Some Landlords Say "Is the Country Yours?" Criticize Government Real Estate Measures
"Oppose Retroactive Application of Lease Laws That Could Undermine Rule of Law" Blue House Petition Also Submitted

On the afternoon of the 25th, participants of the "Candlelight Rally Against the Retroactive Application of Real Estate Regulation Policies and Nationwide Tax Resistance Movement" held in front of the Korea Deposit Insurance Corporation in Jung-gu, Seoul, are shouting slogans. / Photo by Yonhap News

[Asia Economy Reporter Han Seung-gon] "Now it seems like homeowners have to be cautious," "Will the sorrow of tenants without homes ease a bit?"

Following the June 17 and July 10 real estate measures, the government announced it will pass the so-called 'Lease 3 Acts' to stabilize the rental (jeonse and monthly rent) market during the July extraordinary session of the National Assembly, sparking ongoing dissatisfaction among some landlords.

The Lease 3 Acts promoted by the government and ruling party include △ the rent ceiling system △ the right to request contract renewal △ and the introduction of a rent reporting system. The plan, known as '2+2,' allows tenants to extend their existing 2-year contract once for an additional 2 years. Regarding rent increases upon renewal, the basic rule is that the increase should not exceed 5% of the existing rent, but local governments may set a lower cap within 5% through ordinances if they wish.

Summarizing the main points of the bill, the lease period will effectively increase from 2 years to 4 years, and rent increases will be limited. This is expected to have a stabilizing effect on housing for the homeless.

Additionally, the right to request contract renewal will apply to existing tenants whose contracts were signed before the law takes effect and are still ongoing.

Although there is controversy over retroactive legislation, the Democratic Party and the government argue that there is precedent in the amendment of the Commercial Lease Protection Act, so there is no problem. Accordingly, existing tenants can exercise the right to request contract renewal regardless of how many times they have extended their contracts before the law takes effect.

Photo by Cheongwadae National Petition Board capture

The issue lies in the infringement on landlords' property rights. On the Blue House's public petition board, petitions opposing this have been posted daily. The argument is that retroactive application of the bill effectively restricts landlords' property rights and is therefore unconstitutional.

As of 10 a.m. on the 28th, a petition titled "Opposition to the Retroactive Application of the Lease 3 Acts That Could Shake the Foundation of the Rule of Law," posted on the 9th, had 25,814 supporters. The petitioner appealed for protection of landlords' property rights in accordance with Article 13, Paragraph 2 of the Constitution, which states that property rights shall not be deprived by retroactive legislation.

Some landlords and rental business operators held a candlelight rally on the 25th in front of the Korea Deposit Insurance Corporation in Jung-gu, Seoul, condemning the government's real estate measures including the Lease 3 Acts.

Groups such as the "Citizens' Group for Relief of Victims of the June 17 Regulation Retroactive Application" and the "Victims' Group of the July 10 Acquisition Tax Retroactive Application" held rallies in front of the Korea Deposit Insurance Corporation in Jung-gu, Seoul, opposing the government's real estate measures. The organizers estimated about 5,000 participants.

On the afternoon of the 25th, participants of the "Candlelight Rally Against the Retroactive Application of Excessive Real Estate Regulation Policies, Nationwide Tax Resistance Movement" held in front of the Korea Deposit Insurance Corporation in Jung-gu, Seoul, are shouting slogans. Photo by Yonhap News

Participants on the podium criticized, saying, "They raised housing prices themselves, so why do they call us speculators? Why should landlords be discriminated against?" and "In 2018, registering as a rental business was considered patriotic, but now they call us speculators." Some participants held placards reading, "Are only tenants citizens? Landlords are citizens too," and "It's a fine, not a tax."

At the rally, signatures opposing the 'Lease 5 Acts' were also collected. The organizers, aiming for 200,000 signatures, announced plans to file a constitutional complaint challenging the constitutionality of the government's measures.

The group leading the rally also pushed the phrase "Is the country yours?" into the real-time search rankings on portal sites through a "real-time search challenge."

However, among some tenants, the bill is seen as establishing tenant rights. One tenant said, "There are many so-called good landlords, but there are also many 'bad landlords.' The phrase 'the sorrow of being homeless' among tenants is not just talk."

Meanwhile, the Ministry of Land, Infrastructure and Transport stated in a press release on the 27th, "If the homeowner wishes to reside directly in the house at the time of lease contract renewal, they can do so without any restrictions," and added, "During the upcoming National Assembly discussions, the Lease 3 Acts will be legislated as a balanced system between landlords' property rights and tenants' housing rights."

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