Kim Hyun-mi: "It Is Difficult to Say That the Jeonse Crisis Is Due to the Lease 3 Laws and the Right to Request Contract Renewal"

Minister of Land, Infrastructure and Transport Kim Hyun-mi is responding at the plenary meeting of the Special Committee on Budget and Accounts held at the National Assembly in Yeouido, Seoul on the 9th. Photo by Yonhap News

[Asia Economy Reporter Kim Ga-yeon] Kim Hyun-mi, Minister of Land, Infrastructure and Transport, recently addressed the deepening jeonse (long-term lease) crisis, stating, "There are various factors behind the recent difficulties in jeonse, but it is difficult to say it is because of the 'right to request contract renewal' or the 'Three Lease Laws'."

On the morning of the 9th, during the plenary session of the National Assembly's Special Committee on Budget and Accounts, Kim responded to the criticism by Yoon Sang-beom, a member of the People Power Party, who claimed that "the jeonse crisis is a phenomenon caused by the implementation of the Three Lease Laws," saying, "It is hard to see it as the sole cause."

Kim explained, "When the right to request renewal is exercised, the supply of jeonse decreases, but since existing tenants continue to reside in their homes, demand also decreases simultaneously," adding, "We are reviewing various causes and will announce corresponding measures as soon as they are ready."

Regarding some media reports suggesting that public institutions such as the Korea Land and Housing Corporation (LH) and the Seoul Housing and Communities Corporation (SH) are likely to provide jeonse rental support as a related measure, Kim dismissed the claims, saying, "We are reviewing several options, but nothing has been finalized yet."

She further added, "The government budget for jeonse rental support is already secured, and LH has sufficient financial capacity to carry out such projects," emphasizing, "We are focusing on reviewing measures that do not take much time."

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