The Jeonse and Monthly Rent Cap System and Contract Renewal Request Right System Pass the National Assembly Plenary Session... Opposition Party Abstains from Voting

The Partial Amendment to the Housing Lease Protection Act passed the National Assembly plenary session on the 30th with 185 votes in favor and 2 abstentions out of 187 members present. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporters Kang Nahum and Jeon Jinyoung] The amendments to the Housing Lease Protection Act and the Commercial Building Lease Protection Act, which introduce the rent ceiling system and the right to request contract renewal, have passed the plenary session of the National Assembly.

On the afternoon of the 30th, the National Assembly held a plenary session and processed these bills. The amendment to the Housing Lease Protection Act was approved with 185 votes in favor out of 187 members present, and the amendment to the Commercial Building Lease Protection Act was approved with 186 votes in favor out of 187 members present.

The amendment to the Housing Lease Protection Act includes the introduction of the rent ceiling system and the contract renewal request system. It guarantees tenants a '2+2 year' term, allowing them to extend their existing 2-year contract by an additional 2 years, and limits rent increases to within 5% of the previous contract rent, with local governments setting the ceiling through ordinances.

Landlords may refuse contract renewal requests if they or their direct ascendants or descendants intend to reside in the property. However, if they do not actually reside, the existing tenant can claim damages.

The amendment to the Commercial Building Lease Protection Act stipulates that the Ministry of Justice will jointly oversee commercial building lease matters with the Ministry of Land, Infrastructure and Transport, which is the department responsible for real estate policy.

Many members of the United Future Party did not participate in the vote during the plenary session. United Future Party lawmaker Jo Sujin criticized in an alternative debate, saying, "The Housing Lease Protection Act was processed according to the ruling party's plan," and questioned, "Is it appropriate to process a law that has a tremendous impact on people's lives in just two days?"

On the other hand, Democratic Party lawmaker Song Kiheon pointed out in a supporting debate, "At first, the United Future Party raised issues about the committee members, and later delayed the committee formation by demanding the chairmanship of the Budget and Accounts Committee subcommittee," adding, "It is not right for the United Future Party to claim procedural defects after that."

Meanwhile, among the three lease-related laws, the remaining rent reporting system is expected to be processed at the plenary session on the 4th of next month.

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