"Should We Introduce the Land Transaction Permission System?"... Lee Jae-myung Seeks Opinions from Gyeonggi Residents

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Lee Jae-myung, Governor of Gyeonggi Province, sought opinions (collective intelligence) from 13.7 million Gyeonggi residents regarding the 'Land Transaction Permission System' currently under consideration for introduction.

On the 12th, Governor Lee stated on Facebook, "Opinions are sharply divided over the 'Land Transaction Permission System' that Gyeonggi Province is reviewing to block real estate speculation and allow only the purchase of homes for actual residence."

He continued, "Supporters say it is the strongest and most necessary measure to stabilize the real estate market, while opponents argue that it is an excessive infringement on basic rights."

Accordingly, Governor Lee promised, "Please send various thoughts, from opinions for and against the Land Transaction Permission System to creative ideas and suggestions. With the power of the collective intelligence of Gyeonggi residents, we will complete Gyeonggi Province's real estate policy."

Earlier, Gyeonggi Province has been considering implementing the Land Transaction Permission System to prevent real estate speculation and allow only the purchase of homes for actual residence. If the system is implemented, buyers must obtain permission from the relevant city, county, or district office before signing a contract, and even with permission, they must move in immediately and reside for two years.

This has led to a fierce debate between supporters and opponents.

Supporters argue that the permission system is necessary to correct the concentration and unregulated use of land ownership, prevent irrational land price formation caused by speculation, and strengthen public regulation of land transactions to control unfair unearned income.

They also claim that land, which is subject to supply restrictions, has special characteristics such as finiteness, immobility, and continuity, giving it a strong public good nature, and thus it inevitably faces broader restrictions compared to other property rights.

In particular, they cite the Constitutional Court's ruling that the introduction of the Land Transaction Permission System is a form of restriction, not denial, of private property, and that restrictions on disposition to suppress speculative land transactions are unavoidable and do not constitute an essential infringement of property rights, as grounds for introducing the permission system.

Experts note that the Land Transaction Permission System was highly effective in curbing rampant real estate speculation in the 1970s and 1980s, and in the case of Gyeonggi Province, it is expected to reduce gap investments by allowing only actual residents to acquire homes, thereby producing a real speculative suppression effect. Furthermore, if the system is applied only to foreigners and corporations, it is expected to block malicious speculative demand within the province and help restore market soundness.

However, many oppose the introduction of the Land Transaction Permission System, arguing that it is an excessive infringement on basic rights.

They view the system implemented by Gyeonggi Province as a 'Housing Transaction Permission System' and argue that unlike land, which is a finite resource, houses are buildings, so there is no justification or basis for government control.

Additionally, opposition parties and some media outlets contend that the Land Transaction Permission System restricts freedom of residence and movement and infringes on the right to dispose of privately owned land, violating the constitution and equating the policy to communism or socialism.

Moreover, there are concerns that the implementation of the Land Transaction Permission System in Gyeonggi Province may instead lead to increased issue awareness, further fueling current purchasing psychology and panic demand, and that once fully implemented, the system could cause a balloon effect, spreading speculative demand to the outskirts of Gyeonggi.

Meanwhile, Gyeonggi Province plans to carefully review the introduction of the Land Transaction Permission System from various perspectives before making a final decision.

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