Yoon Jun-byeong "Not All Monthly Rents Are Bad" vs Kim Hyun-ah "No One Prefers Monthly Rent"

Conflicting Views on the 'Imdaecha 3 Laws'

Yoon Joon-byung, member of the Democratic Party of Korea./Photo by Yonhap News

[Asia Economy Reporter Han Seung-gon, Intern Reporter Kim Seul-gi] Yoon Jun-byeong, a member of the Democratic Party of Korea, has faced public criticism for saying, "Not all monthly rents are bad" in relation to the 'Three Lease Laws.' In response, Kim Hyun-ah, a member of the Future United Party's Emergency Committee, pointed out, "No one in Korea prefers the monthly rent system."

In an interview with CBS Radio's 'Kim Hyun-jung's News Show,' Kim said regarding the opinion of Future United Party lawmaker Yoon Hee-sook, who warned that "the Jeonse market will rapidly disappear," "I don't think that will happen nationwide," but added, "I agree. Since this system is being implemented indiscriminately nationwide without distinction between the metropolitan area and provinces, the damage is expected to be greatest in the metropolitan area where Jeonse demand and Jeonse deposits are high."

Earlier, Democratic Party lawmaker Yoon said, "Not all monthly rents are bad. Whether you pay interest to a bank or pay it monthly as rent, isn't it basically the same thing?"

In response, Kim said, "If you can prepare a lump sum, Jeonse is much more advantageous. Since foreign countries do not have the Jeonse system, they do not need to consider lease contract renewals or caps on Jeonse and monthly rent like we do. If we acknowledge that the Jeonse system is unique to our country, then this aspect should have been carefully considered and prepared for."

Kim Hyun-ah, Emergency Committee Member of the United Future Party. / Photo by Yonhap News

On that day, Democratic Party lawmaker Yoon argued, "The legal conversion rate between Jeonse and monthly rent is 4%, but in market function, it is about 6%. We need to adjust it to comply with 4%. There should be a market function where Jeonse amounts align with interest rates, and the gap between monthly rent and Jeonse is mandated to be much lower than before under the Three Lease Laws. We must continue efforts to reduce the gap through this conversion rate."

However, Kim opposed, saying, "What Democratic Party lawmaker Yoon thinks is really theoretical calculation. In reality, for example, if Jeonse needs to increase by about 30 million won next year compared to this year, it will be received as monthly rent instead of a lump sum. If this gradually accumulates and monthly rent conversion occurs, controlling the conversion rate cannot solve the problem."

Regarding Yoon's claim that "After four years, the situation will improve, and tenants will be strongly protected, forming a market structure more favorable to tenants than now," Kim criticized, "I don't know on what basis you say that. I doubt whether housing supply will directly increase as announced after four years. The government's judgment and statements on housing supply have been very inconsistent."

Meanwhile, on the 1st, Yoon posted on his Facebook, claiming, "The Jeonse system is destined to naturally disappear as income levels rise."

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