Kim Hyun-ah "Lease 3 Laws, Laws Warned of 'Jeonse Sharp Decline' Risk Since 10 Years Ago"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] Kim Hyun-ah, Emergency Response Committee member of the United Future Party, pointed out that the ruling party's 'Lease 3 Acts' is a law that raised concerns about the rapid decline of Jeonse about 10 years ago, starting from the 18th National Assembly.

On the 3rd, Kim appeared on CBS Radio's 'Kim Hyun-jung's News Show' and said, "These (Lease 3 Acts) have been discussed continuously since the 18th National Assembly, but there is a reason why they were not passed."

He said, "When such policies were implemented, there were concerns about short-term rent surges and that this system could trigger a shift from Jeonse to monthly rent in the current structural situation where Jeonse is disappearing," adding, "The government judged that it would be very difficult to politically and economically handle these issues, which is why the bills had not been passed until now."

Kim pointed out, "If you look at the bill review contents, it was not only the opposition party that opposed it, but government ministries were also very hesitant," and added, "While purchase demand can be speculative or for investment purposes in places one does not need, Jeonse demand is mostly concentrated in areas where people need to live, such as school districts and workplaces, causing a concentration phenomenon in those areas."

He expressed doubt that the Lease 3 Acts would benefit "people currently living in Jeonse simply for four years, but those newly entering Jeonse or those whose lease contracts change drastically after four years," and defended Rep. Yoon Hee-sook's criticism as "a statement that can be made as an opposition lawmaker who did not have enough time for thorough review in the standing committee."

Earlier, Rep. Yoon warned in a National Assembly speech that the Lease 3 Acts could lead to the disappearance of the Jeonse market. Kim also said, "I don't think it will be like that nationwide (disappearance of the Jeonse market), but since this system is being implemented indiscriminately nationwide without distinction between the metropolitan area and provinces, the damage will naturally be greatest in the metropolitan area where Jeonse demand and Jeonse deposits are high."

Regarding Rep. Yoon Jun-byung of the Democratic Party of Korea saying, "Whether you pay interest to the bank (Jeonse) or pay monthly rent every month, isn't that basically the same?" and that the Jeonse system will eventually disappear, Kim rebutted, "Theoretically, that is true, but considering only the advantages of the current Jeonse and monthly rent systems, no one in Korea prefers the monthly rent system," adding, "We often cite foreign cases regarding lease contract renewals and rent caps, but foreign countries do not have the Jeonse system."

He also criticized the forced promotion of the bill without a Jeonse and monthly rent reporting system. Kim said, "Without a Jeonse and monthly rent reporting system, I have many doubts about what basis we can use to control rent caps," and criticized, "They are trying to introduce the reporting system now, but more side effects are expected next year than this year, and even more the year after next."

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