Kim Hyun-mi: "Jeonse Market Will Stabilize in a Few Months... Transaction Volume Is Not Small"

Minister of Land, Infrastructure and Transport Kim Hyun-mi is responding to questions from lawmakers at the Land, Infrastructure and Transport Committee plenary meeting held at the National Assembly on the 11th. (Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] Kim Hyun-mi, Minister of Land, Infrastructure and Transport, recently commented on the rapidly rising jeonse prices centered around apartment complexes in the Seoul metropolitan area, saying, "It will stabilize in a few months."

On the 11th, during the plenary session of the National Assembly Land, Infrastructure and Transport Committee, in response to a related question from Kim Sang-hoon, a member of the People Power Party, Minister Kim said, "In the past, when the lease period was extended from 1 year to 2 years in 1989, there was market confusion with rent prices rising for about 4 to 5 months."

Minister Kim explained, "If both landlords and tenants wisely come together to overcome these difficulties, the jeonse prices will stabilize after a few months."

Regarding the criticism that the supply of jeonse has decreased since the implementation of the Lease Protection Act, she explained, "The volume of jeonse transactions is different from what is reported in the media," adding, "Although the volume of jeonse transactions in Seoul has decreased, it is still a considerable number compared to previous years."

Minister Kim expressed regret over Eastar Jet notifying 605 employees of layoffs following the failed acquisition and merger (M&A) with Jeju Air.

In response to Justice Party lawmaker Shim Sang-jung's question holding Lee Sang-jik, founder of Eastar Jet and a member of the Democratic Party of Korea, accountable, Minister Kim pointed out, "I think there are significant issues regarding Eastar Jet's governance structure and the conduct after deciding on the M&A."

Eastar Jet notified 605 employees of layoffs on the 7th. Some labor unions and opposition parties criticize Lee, who owns assets worth 21.2 billion KRW, for not even paying 50 million KRW in employment insurance premiums and not taking any responsibility for maintaining jobs.

Regarding this, Minister Kim said, "Before the M&A fell through, I met with Representative Lee Sang-jik twice in his office," adding, "I told him twice that he should take responsible measures regarding this issue."

She continued, "Our aviation office at the Ministry of Land, Infrastructure and Transport repeatedly told the company's CEO and others that taking a responsible attitude is a priority, but we are very regretful that there has been no progress so far."

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