[Summary] "Tenant Suffering Is Great" Ruling Party Promotes 'Fair Rent' Debate...Political Circles Divided

Democratic Party Lawmaker Dongju Lee Proposes 'Rent Freeze Act'
Partial or Full Rent Reduction Proposed for Business Suspension or Restrictions
People Power Party: "Dividing Landlords and Tenants Again"

Kim Tae-nyeon, the floor leader of the Democratic Party of Korea, is speaking at the party strategy meeting held at the National Assembly on the morning of the 15th. Photo by Yonhap News

[Asia Economy Reporter Kim Suwan] As the Democratic Party of Korea initiates a public discussion on fair rent to reduce the rental burden on self-employed business owners, opinions within the political sphere are divided. Some even argue that "President Moon Jae-in should invoke the emergency financial order to forcibly reduce rents," which is expected to intensify the controversy.

Kim Tae-nyeon, the floor leader of the Democratic Party, stated at the party's floor strategy meeting on the 15th, "Tenants are suffering greatly due to the gathering bans and restrictions caused by the novel coronavirus (COVID-19)," adding, "We will gather opinions from stakeholders, civil society, and experts to devise a fair rent solution."

Earlier, on the 14th, President Moon Jae-in, during a senior secretaries and aides meeting at the Blue House, addressed the difficulties faced by self-employed business owners due to strengthened quarantine measures amid the third wave of COVID-19. He said, "It is deeply painful to hear the question of whether it is truly fair for small business owners and self-employed individuals to bear the full burden of rent amid a sharp drop in sales when their business operations are restricted or prohibited according to government quarantine guidelines." He also expressed hope for "strengthening policy fund support to expand the 'Good Landlord Movement' and increasing tax and financial support efforts to alleviate business burdens caused by COVID-19."

President Moon emphasized, "We should not stop here but take a step further in our considerations," adding, "In this national crisis where everyone must share the pain, we must not force sacrifices only on the vulnerable but rather share the weight of suffering across society and gather various measures and wisdom to enhance government responsibility and roles."

In response, the ruling party has proposed related legislation. On the 14th, Democratic Party lawmaker Lee Dong-joo introduced a revision bill to the Commercial Lease Protection Act (nicknamed the 'Rent Stop Act'), which would prohibit landlords from collecting rent during business suspension periods for industries subject to gathering bans.

At a press conference that afternoon, Lee explained the purpose of the bill, saying, "If business stops, rent should also stop." He pointed out, "To prevent infectious diseases, 12 industries in the metropolitan area have been subject to gathering bans, and many others have faced gathering restrictions. However, small business owners and self-employed individuals still have to bear fixed costs such as rent and maintenance fees even when all means of livelihood are cut off. Cases of business closures due to inability to bear these costs are increasing."

He continued, "In September, the National Assembly amended the law to allow rent reduction claims based on changes in economic circumstances during infectious disease outbreaks. However, landlords lack incentives to accept tenants' reduction claims, and disputes often have to go through mediation committees," adding, "More drastic measures are necessary."

Democratic Party lawmaker Woo Sang-ho, who officially declared his candidacy for Seoul mayor, also appeared on YTN Radio's 'Hwang Bo-seon's Start of a New Morning' on the 15th, advocating for the introduction of rent control laws. He said, "In foreign countries, there are systems that mandate rent reductions for those unable to pay rent due to external causes," and called for the introduction of rent limitation laws.

He added, "Currently, this is being reviewed at the National Assembly and government levels, and consultations with the opposition party are necessary," and said, "Since business operators are experiencing decreased income due to COVID-19, I believe there should be some virtue in reducing part of the rent."

Democratic Party lawmaker Lee Seong-man also said on BBS Radio's 'Park Kyung-soo's Morning Journal' that "there is a growing consensus within the party," and "we plan to discuss this issue and work towards legislation as soon as possible."

Photo by Yonhap News

Some voices have even called for the president to invoke the emergency financial order to forcibly reduce rents. Lee Dong-joo, the main proposer of the so-called 'Rent Stop Act,' stated on MBC Radio's 'Kim Jong-bae's Focus' on the 15th, "If COVID-19 accelerates further, we need to keep the option of the president's emergency financial order open and consider it."

The Justice Party proposed a plan where landlords, the government, and tenants all share the rent burden. Kim Jong-cheol, leader of the Justice Party, said at a party leadership meeting held at the National Assembly that morning, "There is a method where landlords, tenants, and the state each bear one-third of the financial burden only in regions and periods where COVID-19 quarantine level 2 or higher is applied," adding, "If the ruling and opposition parties agree, the president can proceed with implementation through an emergency economic order."

Kim pointed out, "The revised Commercial Lease Act from last September allows rent reduction claims due to economic changes caused by infectious disease prevention, but the reduction is not mandatory, and the process is lengthy, making it difficult to be of much help in the current situation."

Justice Party spokesperson Jang Tae-soo said in a statement, "Let us seek measures including immediate rent reduction through the president's emergency financial order and financial support for landlords via a meeting between the president and leaders of ruling and opposition parties."

Meanwhile, the People Power Party criticized the ruling party's proposed Rent Stop Act. Bae Jun-young, spokesperson for the People Power Party, said in a statement, "Is the president's remark an unspoken pressure not to collect rent?" and criticized, "At a time when the entire nation should unite to overcome difficulties, they are dividing landlords and tenants again."

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