Ruling Party and Government to Follow Up Real Estate Measures Next Month... "Cash Settlement Is Not Unconstitutional"

Cho Eung-cheon, member of the Democratic Party of Korea. [Image source=Yonhap News]

[Asia Economy Reporter Koo Chae-eun] The Democratic Party of Korea and the government have decided to finalize the follow-up legislation related to the real estate measures announced on the 4th as early as next month.

On the 9th, the party and government held a closed-door working-level meeting at the National Assembly regarding the February 4 real estate measures and set this policy. Cho Eung-cheon, the Democratic Party floor leader of the Land, Infrastructure and Transport Committee, said after the meeting, "It is better to complete the legislation as soon as possible because the public will feel the government's determination once the legislation is completed and the supply plan is implemented," adding, "The Ministry of Land, Infrastructure and Transport wants legislation and enforcement in March, and we will consult with the opposition party to do it as soon as possible."

Regarding concerns that the current measures, which do not grant priority supply rights (pre-sale rights) for houses purchased after February 4 and instead require cash settlement, may infringe on property rights, he stated that there is no problem.

Cho explained, "The Ministry of Land, Infrastructure and Transport received prior legal advice and was informed that if cash settlement is properly conducted, it does not constitute an infringement of property rights," adding, "Granting pre-sale rights is an additional benefit, and not granting them is neither unconstitutional nor illegal."

He said, "We are aware that some people are expressing hardship. We will listen carefully and examine whether this conflicts with other laws and how much it restricts the exercise of property rights."

Regarding the market reaction to the current measures, he mentioned, "Overall, it seems to be one of the better responses among the measures taken so far." The meeting was attended by Jin Sun-mi, chairperson of the National Assembly Land, Infrastructure and Transport Committee, other committee members, and Byeon Chang-heum, Minister of Land, Infrastructure and Transport.

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