"Is the Landlord the Villain?" 'Lease 3 Acts' Passes National Assembly, Criticism Grows Louder

Passage of 'Lease 3 Laws' Including Contract Renewal Request Rights
Enforcement After Cabinet Meeting Approval... Jeonse and Monthly Rent Reporting System Expected to Pass on the 4th of Next Month

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

[Asia Economy Reporter Han Seung-gon] "I don't know much about politics, but I know that the real estate policy has failed."

On the afternoon of the 30th, the National Assembly held a plenary session and passed the so-called three lease laws, including the amendment to the Housing Lease Protection Act. The remaining bill, the Jeonwolse Reporting System, is expected to be processed at the plenary session on the 4th of next month. However, there are voices opposing this bill, and social conflicts surrounding it are anticipated. The opposition party is

In particular, citizens opposing the Moon Jae-in administration's real estate policy have been continuously holding online and offline rallies centered around online cafes such as the "Meeting for the Relief of Victims of the Retroactive Application of the June 17 Regulation" and the "Committee for Opposing the Three Lease Laws."

They claim to have suffered infringements on property rights due to recent government real estate policies such as the △ June 17 measures, △ July 10 measures, loan regulations, and the three lease laws. They announced that at the rally to be held on the weekend (the 1st) of next month, they will even visit the Democratic Party headquarters to protest.

Earlier on the 25th, members of these groups held a rally in front of the Korea Deposit Insurance Corporation in Jung-gu, Seoul, condemning the Moon Jae-in administration's real estate measures. According to the organizers' estimate, about 5,000 people participated, filling the 170-meter road and sidewalk on the south side of Cheonggyecheon.

They shouted slogans such as "Absolutely oppose the retroactive application of the July 10 acquisition tax" and "Are only tenants citizens? Landlords are citizens too." Some voices criticized the government for treating homeowners as criminals and imposing punitive taxation.

A representative of a "citizens' group" internet cafe took the stage and questioned, "In a free market economy, why is it illegal and a deep-rooted evil for someone to buy a house with their hard-earned money and receive monthly rent?" and "You (the government and ruling party) were the ones who speculated, not us."

Another participant at the rally expressed frustration, saying, "I have paid all the acquisition tax, property tax, and comprehensive real estate tax that the country requires," and "I have never evaded taxes." They strongly criticized the government, adding, "In 2018, registering as a rental business was considered patriotic, but now they call us speculators."

At the rally on the 1st, after the protest, they plan to march to the Democratic Party headquarters and submit a request for a meeting to Kim Tae-nyeon, the Democratic Party floor leader, Jin Sun-mi, the chairperson of the National Assembly Land, Infrastructure and Transport Committee, and others.

[Image source=Yonhap News]

Meanwhile, ahead of the passage of the three lease laws in the National Assembly plenary session, some landlords are reportedly resorting to loophole contracts to avoid renewal requests.

According to the three lease laws, the right to request contract renewal applies to existing tenants who signed contracts before the law's enforcement. However, if the landlord expresses refusal to extend the contract six months before expiration and accepts a new tenant before the law's enforcement, the landlord can exceptionally refuse the renewal request of the existing tenant to protect the new tenant.

Given this situation, landlords whose leases are about to expire are rushing to sign contracts with new tenants. This is because they can set rent increases exceeding 5% with new contracts. The Jeonwolse rent ceiling system applies only to individual contracts, not new contracts.

The problem is that if the new tenant is actually an acquaintance or relative of the landlord, it is practically difficult to disclose this. As a result, there are reports spreading mainly through some online cafes that landlords are using new tenants as a pretext to terminate contracts. This is a kind of blind spot in tenant protection under the three lease laws.

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

Regarding these controversies, Lee Won-wook, a Democratic Party lawmaker who appeared on CBS Radio's "Kim Hyun-jung's News Show" that day, explained, "A law cannot regulate everything. No matter what law you make, there will always be loopholes."

He added, "Although the government's real estate measures have passed the National Assembly with quite strong content, there are various possibilities for abuse and loopholes. If such loopholes are found, we plan to continuously prepare supplementary measures as high-intensity means."

Amid various criticisms and the exposure of legal blind spots surrounding the bill, Choi Hyung-doo, floor spokesperson of the United Future Party, appeared on MBC morning radio and said, "Historically, the most certain way to paralyze a city is to control rent," adding, "It is a responsibility of the Democratic Party, but what about the pain the people will suffer while the Democratic Party takes responsibility?"

Also, after a party meeting, floor leader Joo Ho-young told reporters, "The amendment to the Housing Lease Protection Act that passed the Legislation and Judiciary Committee yesterday has huge procedural problems and many issues in its content."

Emergency Response Committee Chairman Kim Jong-in of the United Future Party is speaking at the Emergency Response Committee meeting held at the National Assembly on the 30th. / Photo by Yonhap News

Yoon Hee-sook, a United Future Party lawmaker and former professor at the Korea Development Institute (KDI), criticized the three lease laws on her Facebook post that day, calling them "laws that push landlords outside the protection of the law."

Yoon said, "This law declares landlords as enemies and tenants as friends," and "It means that the true purpose of the bill is not to make the policy actually work." She added, "I am filled with anger at the ignorance and shamelessness of those who made such absurd laws, but politically, since it is a self-inflicted wound of the ruling party, there is no need to get angry, which is a complicated feeling."

On the other hand, Kim Tae-nyeon, floor leader of the Democratic Party, said at the policy coordination meeting that day, "The United Future Party, aiming to take advantage of the confusion in the real estate market, has consistently stalled," and "Starting with the Housing and Commercial Lease Protection Act today, the remaining real estate legislation will be processed in this extraordinary session."

He continued, "It will have a definite effect on eradicating speculation and stabilizing the market," and "The party and government’s determination to eradicate speculation and stabilize the market is firm. If necessary, stronger additional measures will also be prepared."

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