Park Jumin, "Sorry for not being able to sign monthly rent contracts significantly below market price"
[Asia Economy Reporter Oh Ju-yeon] Park Ju-min, a member of the Democratic Party of Korea, responded to allegations that he raised the monthly rent about a month before the passage of the so-called 'Lease 3 Act' last year by saying, "I regret that I was not meticulous enough and failed to sign the contract at a price significantly lower than the market rate."
According to the National Assembly Public Relations Office and the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system on the 31st, Park signed a new contract on July 3 last year for an apartment (84.95㎡) in Sindang-dong, Jung-gu, Seoul, raising the rent from the previous deposit of 300 million KRW and monthly rent of 1 million KRW to a deposit of 100 million KRW and monthly rent of 1.85 million KRW.
Some pointed out that applying the then rent-to-deposit conversion rate of 4% meant the rent was increased by 9.1%, and applying the 2.5% conversion rate from the enforcement decree implemented in September of the same year, the increase reached 26.6%.
Although it is a new contract and legally not subject to the rent ceiling system, it was considered inappropriate given the legislative intent of the 'Lease 3 Act,' which capped rent increases at 5% to minimize tenant burdens.
On the same day, Park said on Facebook, "Since it is a new contract, it is not subject to the rent-to-deposit conversion rate under the Housing Lease Protection Act, so the market price had to be the standard."
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He added, "The real estate agency owner told me that the contract was made at a price much cheaper than the market price, so I had believed so until now, but after inquiries from reporters recently, I found out that the contract was only about 200,000 KRW lower per month than the market price. While advocating for housing stability, I regret that I was not more meticulous and failed to sign the contract at a price significantly lower than the market price. I will be more careful in the future to ensure this does not happen again."
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