‘LH Prevents Nominee Speculation’ Park Ju-min Proposes Amendment to Real Estate Real-Name Act

Increasing Risks of Nominee Trusts... Preventing Proxy Speculation
Assemblyman Park Jumin Proposes Amendment to Real Estate Real-Name Act

[Image source=Yonhap News]

[Asia Economy Reporter Koo Chae-eun] Amid the escalation of the LH scandal, the ruling party has proposed a bill to prevent the nominal ownership of real estate. The core of the bill is to prevent nominal ownership as much as possible by ensuring that nominal owners cannot claim rights to real estate held in trust under another person's name.

On the 17th, Park Jumin, a member of the Democratic Party of Korea, held a press conference and introduced the "Real Estate Nominal Ownership Prevention Act Amendment." Park emphasized the necessity of the bill, stating, "Despite the existence of the Real Name Real Estate Act that prohibits nominal ownership, the situation where courts recognize the ownership rights of nominal owners in lawsuits must be corrected."

The current "Act on Registration of Real Rights of Real Estate Owners" prohibits name trust and declares any change of real rights based on name trust agreements invalid. However, precedents have effectively recognized nominal ownership contrary to the intent and purpose of the Real Name Real Estate Act.

Accordingly, the "Real Estate Nominal Ownership Prevention Act" proposed by Park Jumin removes the legal certainty that a nominal owner can reclaim the property after entrusting the name. It stipulates that if the property is not registered under one's own name, one cannot claim rights to the real estate. This increases the risk of name trust and is expected to eradicate nominal ownership of real estate.

Park said, "The public's sense of deprivation is very high due to the LH scandal. We will definitely prevent nominal ownership and name trusts used for speculation, tax evasion, or other illegal purposes."

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