"More Disappointment Because It's Park Jumin" Rent Increase of 9%, Ruling Party Anxious Over 'Real Estate Public Sentiment'

Park Ju-min, Democratic Party of Korea lawmaker [Image source=Yonhap News]

[Asia Economy Reporter Han Seung-gon] "It's even more disappointing because it's Park Jumin, not just anyone."

Park Jumin, a member of the Democratic Party of Korea who has been popular among supporters and the public for his humble demeanor, has recently been met with growing disappointment after it was confirmed that he raised the rent on an apartment he owns by more than 9%.

Earlier, Park proposed the first bill of the 21st National Assembly, an amendment to the Housing Lease Protection Act, which included a 5% cap on rent increases and the right to request contract renewal. The rent increase occurred before the bill was passed. As a result, there are criticisms that Park's recent actions contradict the image he has shown so far. The People Power Party immediately issued a statement and launched harsh criticism.

Kim, a company employee in his 40s who said he works in Seoul, said, "Considering the image Park Jumin has shown so far, taking care of the socially vulnerable and all, I am quite disappointed after seeing this rent increase controversy."

Another office worker in his 30s, Lee, said, "I think rent increases are possible," but added, "The timing seems problematic. It looks like the rent was raised before the rent cap bill was passed. Regardless of the reason, I think it was a blameworthy act."

While some citizens continue to criticize, there is also an argument that Park's case does not violate the purpose of the 5% rent cap law since it involved signing a new contract rather than renewing an existing one. However, some view this as another incident that has fueled the critical 'real estate public sentiment' directed at the government and ruling party amid the current Korea Land and Housing Corporation (LH) scandal.

Park Ju-min, Democratic Party of Korea lawmaker [Image source=Yonhap News]

Regarding this, Park explained through some media outlets, "Since it was a new contract, not a renewal of an existing one, it did not violate the (rent cap) law." He added, "Because it was a new contract, the rent-to-deposit conversion rate under the Housing Lease Protection Act did not apply, so the market price had to be the standard. The real estate agency owner said the contract was made at a price much lower than the market price, and I have believed that until now." He also said, "Although I advocated for housing stability, I regret not being more meticulous and failing to sign the contract at a price significantly lower than the market price."

In response, the People Power Party criticized this as the epitome of the Democratic Party's 'double standards.' Before Park's controversy, former Blue House Policy Chief Kim Sang-jo resigned abruptly on the 29th after it was revealed he raised his jeonse (long-term deposit lease) by more than 14% ahead of the passage of the three lease laws, and now a similar incident has occurred.

Kim Eun-hye, spokesperson for the People Power Party, said in a statement, "What is the difference between 'Cheongdam-dong Kim Director' (former Blue House Policy Chief Kim Sang-jo), who pretended to be clean and righteous but secretly took advantage, and Park Jumin?" She criticized, "After blaming former spokesperson Kim Eui-gyeom's wife and former Director Kim's landlord for rent hikes, now the blame has shifted to the real estate agency owner."

Spokesperson Kim said, "I want to ask if the public is sorry because they were caught being meticulous or because they were not meticulous enough," and added, "Former Director Kim at least packed up and left the Blue House. How will Park atone to the public?"

Meanwhile, according to official gazettes and political circles, Park signed a lease contract in early July last year for his apartment in Sindang-dong, Jung-gu, Seoul, with a deposit of 100 million KRW and monthly rent of 1.85 million KRW. The apartment is known to be where Park lived during his time as a lawyer.

Park moved to Eunpyeong-gu in 2016 after receiving the Democratic Party's nomination and rented a monthly lease. When moving to Eunpyeong-gu, Park signed a lease contract for the Sindang-dong apartment with a deposit of 300 million KRW and monthly rent of 1 million KRW. Based on the previous rent-to-deposit conversion rate (4%), the rent was raised by more than 9%. According to the revised conversion rate (2.5%) implemented in September last year, the increase was over 25%.

Regarding this, Park's claim and explanation are consistent with the regulation that the rent-to-deposit conversion rate applies only when renewing an existing lease contract, so it cannot be seen that Park signed the lease contract in advance to avoid the rent cap law.

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