Song Seok-jun "Closely Watching Pre-Lunar New Year Supply Policy... Hong Nam-gi Prevention Act Shifts Risk to Private Sector"

Song Seok-jun, Chairman of the Real Estate Normalization Special Committee of the People Power Party
Mandatory Specification of Contract Renewal Request Rights "Shifts Risk to the Private Sector"

[Image source=Yonhap News]

[Asia Economy Reporter Koo Chae-eun] Regarding the so-called 'Hong Nam-gi Prevention Act' to be introduced on the 13th of next month, Song Seok-jun, a member of the People Power Party, pointed out that it is an "irresponsible policy that shifts market risks to the private sector" and that it "could become a game of hot potato."

Song Seok-jun, chairman of the People Power Party's 'Real Estate Market Normalization Special Committee,' criticized in a phone interview with Asia Economy on the evening of the 24th that the mandatory specification of the right to request contract renewal is "an act of shifting (the failure of real estate policy) onto certain private professionals such as licensed real estate agents" and that it "exceeds the bounds of irresponsibility."

The amendment, known as the 'Hong Nam-gi Prevention Act' in the real estate market, requires that when selling a house with a jeonse (long-term deposit lease), it must be indicated whether the existing tenant has exercised the right to request contract renewal. However, it also includes a provision that obligates licensed real estate agents to verify this and explain it to the buyer, which has drawn criticism from opposition parties for imposing excessive risk burdens on the private sector.

Song said, "If it is an ideological policy and a flawed system (related to the three lease laws), the policymakers themselves should take responsibility for it," adding, "From the start, it is an act of passing the hot potato to certain private professionals in society regarding a flawed bill, and this is something the government should not do."

Song, who is also a former Ministry of Land, Infrastructure and Transport official, pointed out that the bureaucratic group also bears responsibility for the failed real estate policies. He emphasized, "If real estate policies (such as the three lease laws) are wrong, they should admit the mistake and correct it, but the bureaucratic group, which should correct the behavior of the political sphere, is doing things they should not be doing," and added, "Bureaucrats need to make efforts by putting their bodies on the line to resolve this."

Regarding the 'special real estate supply measures' that President Moon Jae-in mentioned would be announced before the Lunar New Year holiday, Song said, "We will watch closely." He stated, "As soon as the supply measures are announced, we will hold a meeting of the Real Estate Normalization Special Committee and express our position," adding, "Depending on the content, we will discuss countermeasures and prepare bills at the party and special committee levels."

Meanwhile, the People Power Party announced a 'Real Estate Normalization Plan' on the 13th, ahead of the April 7 Seoul mayoral by-election, focusing on easing reconstruction and redevelopment regulations and securing urban housing sites. Supplementary legislation on the right to request contract renewal is also ongoing. Bills such as the amendment to the Income Tax Act (proposed by Representative Bae Hyun-jin), which exempts capital gains tax for temporary two-homeowners during the contract renewal request period, and the amendment to the Housing Lease Protection Act (proposed by Representative Kim Eun-hye), which includes the right to refuse contract renewal, are also pending in the National Assembly.

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