Kim Jong-in "Extension of Short Selling Ban? Will It Prolong Overheating in the Securities Market?"

Kim Jong-in, Emergency Response Committee Chairman of the People Power Party, holds a press conference on real estate normalization measures at the National Assembly on the 13th. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporters Kim Hyemin and Im Chunhan] Kim Jong-in, the Emergency Committee Chairman of the People Power Party, said on the 13th that regarding the demands in the political circle to extend the ban on short selling, "The securities authorities should carefully consider whether extending it might overheat the securities market."

At the real estate policy announcement on the same day, when asked about the party's stance on the resumption of short selling, Chairman Kim stated, "The securities market is showing signs of excessive overheating." He added, "The conclusion will be made based on the judgment of the securities authorities," and emphasized, "We need to analyze sharply how to handle short selling to stabilize the market." This appears to support the Financial Services Commission's position, which has effectively announced a plan to resume in March.

Although Chairman Kim announced an amendment to the Lease Protection Act as part of the real estate measures, when pointed out that the feasibility is low due to the limitation in the number of seats, he said, "The current difficulties in monthly rent and lease are surely recognized properly by the government and the ruling party," and added, "The ruling party cannot ignore the inconveniences felt by the public. We will observe how the Democratic Party of Korea responds to our demands."

Regarding how much housing can be secured by utilizing relocatable vehicle depots and upper land sites, he explained, "There are many subway lines currently requesting extensions," and "The vehicle depots located on those lines requesting extensions can be relocated." Chairman Kim added, "Based on today's announcement, the candidate running for Seoul mayor will present a concrete plan."

Kim Heeguk, the lawmaker leading the People Power Party's real estate measures, said about the amendment to the Lease Protection Act, "The party's position is to introduce the 'just cause' system adopted in foreign countries," and explained, "This system allows landlords and tenants to discuss and negotiate autonomous decision-making, and if no compromise is reached, the issue is resolved through a mediation body." He further explained, "If agreement is still not reached after this stage, the law-enforced contract renewal for 4 years and the 5% rent ceiling will apply."

He also proposed, "Public rental housing supply is mainly focused on public rentals, but it is impossible to solve the problem with public rentals alone. Naturally, the law should be supplemented to expand private rental housing," and added, "However, private rental housing should also be supplemented in the Lease Protection Act by attaching conditions such as mandatory 10-year rental to tenants, guarantee of contract renewal rights, application of rent ceiling, and new rental conditions."

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