Joeunhee: "Hotel Jeonwolse Measures Absurd... Already Failed Policy"

"Even Lee Nak-yeon, whom I trusted, why is he like this... I sigh"

Lee Nak-yeon, leader of the Democratic Party of Korea, is delivering a greeting at the special advisory group appointment ceremony held at the National Assembly on the 18th. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Kim Ga-yeon] Amid growing controversy over the government's real estate policy to convert hotels into rental housing for jeonse and monthly rent, Cho Eun-hee, Mayor of Seocho District in Seoul, criticized, "They have messed up the perfectly functioning private rental market with misguided intervention, and the measures proposed by Representative Lee are simply absurd."

On the 18th, Cho posted on her Facebook under the title "Representative Lee Nak-yeon's misguided remarks on hotel jeonse and monthly rent! Have you given up on Seoul's tourism industry? The fundamental paradigm of real estate policy must be changed," stating, "I can overlook the incompetent Ministry of Land, Infrastructure and Transport, but why is even the trusted Representative Lee acting like this? It makes me sigh."

Referring to Representative Lee's statement about "preparing a plan to purchase hotels and commercial buildings in Seoul to supply them as jeonse and monthly rental housing," Cho said, "I can overlook the incompetent Ministry of Land, Infrastructure and Transport, but why is even the trusted Representative Lee acting like this? It makes me sigh," and criticized, "Converting hotels into housing is a failed policy, as demonstrated by last May's experiment when Seoul City converted the former Benikea Hotel in Sungin-dong, Jongno-gu, into youth housing near Sungin-dong station."

She continued, "You surely know that 87% of the 207 households selected canceled their contracts due to high rents and hotel-type services that tenants did not want. No matter how desperate the situation, rehashing a policy that failed because of tenant rejection is unacceptable," and added, "Hotels are located in commercial areas, so I want to ask if you have ever considered this from the perspective of parents raising children."

She further pointed out, "Which parent in the world would want to raise their child not in a residential area but in a noisy commercial district? Does this mean that rental policies for parents raising children are unnecessary? I am curious whether the Representative has completely given up on Seoul's tourism industry," she questioned.

On the morning of the 19th, Lee Nak-yeon, leader of the Democratic Party of Korea, visited the Seoul Metropolitan Child Counseling and Treatment Center in Dongdaemun-gu, Seoul, to mark Child Abuse Prevention Day and held a meeting with officials. Photo by Yonhap News

Cho said, "Although the hotel industry is struggling due to the recent novel coronavirus outbreak, when this situation ends and hotel demand increases, will you convert them back into hotels? It is simply absurd to come up with such short-sighted measures," and criticized, "Most tourist accommodation facilities are located near public transportation hubs and downtown areas, so if they are converted into rental housing, it will be difficult to secure alternative sites when tourist accommodation demand rises in the future."

She added, "If you had listened to the voices from the field even once, there would be no desk-bound policy planning or patchwork measures," and said, "The measures the government is preparing are merely an extension of the failed three lease laws in terms of cost and effectiveness."

She then urged for measures including △amending the three lease laws that sever the link between jeonse/monthly rent and home ownership by the government and ruling party △lifting redevelopment and reconstruction regulations to expand housing supply △normalizing the private rental market.

Cho emphasized, "The reason why 24 real estate policies have repeatedly failed is because the policy goals were driven by anger and ideological approaches aimed at punishing 'speculative forces' rather than focusing on the people's housing stability, and because there is reluctance to admit mistakes or trial and error," adding, "Representative Lee, who has acknowledged the failures, should take the lead and ask the people to please let them live comfortably in their own homes. To make up for the 'painful mistakes,' a major shift in real estate policy is necessary."

Earlier, on the 17th, Representative Lee said at the Kwanhun Club debate, "(It is) hard to say the real estate policy was a success. It was a painful misstep," and mentioned, "We are preparing a plan to purchase hotels and commercial buildings in Seoul to supply them as jeonse and monthly rental housing."

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