From Kim Sang-jo to Park Ju-min... Public Sentiment Boils Over Over Ruling Party's Real Estate 'Double Standards'

Park Jumin Raised Rent by 9% One Month Before Passing the Three Lease Laws
Opposition: "Daily Hypocrisy," "How Will You Atonement to the People?"
Ruling Party: "Give the Democratic Party Another Chance"
Experts: "Likely to Negatively Affect the April 7 By-Election"

Democratic Party lawmaker Park Ju-min is giving a proposal explanation on the Act on the Punishment of Stalking Crimes at the plenary session held at the National Assembly in Yeouido, Seoul, on the 24th of last month. [Image source=Yonhap News]

[Asia Economy Reporter Heo Midam] "Did you say you were for the common people and the vulnerable, but it was all a lie?"

As it was revealed that ruling party figures who emphasized 'real estate stabilization' raised rents one after another before the passage of the so-called 'Lease 3 Acts,' a controversy over real estate 'Naeronambul' (double standards: romance if I do it, adultery if others do) has erupted. Two days after former Blue House Policy Chief Kim Sangjo was dismissed over the controversy of rising jeonse prices, Democratic Party lawmaker Park Jumin also got caught up in a controversy over rent increases, prompting citizens to raise their voices of criticism over the ruling party's successive real estate controversies.

In particular, since Rep. Park emphasized housing stability by proposing the amendment to the Housing Lease Protection Act, which includes a 5% cap on jeonse and monthly rent and the right to request contract renewal, as the first bill of the 21st National Assembly, citizens' anger is even greater. As the controversy grew, the ruling party issued a public statement and said, "We will return to our original intention." Experts pointed out that the ruling party's successive real estate-related setbacks could inevitably have a negative impact on the April 7 by-elections.

Rep. Park drew criticism for significantly raising the rent of an apartment he owned about a month before the passage of the Lease 3 Acts on July 30 last year.

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 of last month, Rep. Park signed a contract on July 3 last year for an apartment (84.95㎡) in Sindang-dong, Jung-gu, Seoul, with a deposit of 100 million won and monthly rent of 1.85 million won. The previous rent was a deposit of 300 million won and monthly rent of 1 million won. Applying the jeonse-to-monthly rent conversion rate (4%) at that time, it means he raised the rent by 9%.

The contract in question was a new contract and legally was not subject to the jeonse and monthly rent cap. However, there was criticism of 'inconsistency between words and actions' because it was at odds with the legislative intent of the Lease 3 Acts, which limited the rent increase to 5% to minimize the tenant's burden. Especially since Rep. Park was the leading proposer of the Lease 3 Acts, the criticism was even stronger.

Former Chief Policy Officer Kim Sang-jo of the Presidential Secretariat is giving a farewell address at a briefing held at the Blue House Chunuchwan on the 29th of last month. [Image source=Yonhap News]

Kim, a 20-something office worker living in Eunpyeong-gu, Seoul, said, "I am really disappointed in Rep. Park. He prevented others from raising rents by more than 5%, but he raised his rent by 9%. Especially, it is despicable that he raised the rent just before the Lease 3 Acts were implemented," expressing frustration, "In the end, didn't he secure his own benefits and pass the bill?"

Voices criticizing him are also high in real estate communities. One netizen said, "Those who made the Lease 3 Acts do not follow the laws they made themselves. The whole nation is tired of the laws passed by lawmakers who lack self-reflection." Another netizen also criticized, "There seems to be no politician for the common people. I thought Park Jumin was at least somewhat a politician for the common people, but I feel betrayed."

As the controversy grew, Rep. Park explained, "It was not an extension of the existing contract but a new contract, so it does not violate the (jeonse and monthly rent cap) law."

He added, "Since it was a new contract, it was not subject to the jeonse-to-monthly rent conversion rate under the Housing Lease Protection Act, so the market price had to be the standard," and said, "The real estate agency owner said he was contracting at a price much cheaper than the market price, and I have known it that way until now."

In the opposition camp, following former Policy Chief Kim, Rep. Park's successive real estate controversies led to a sharp remark, "One Naeronambul a day is bewildering." Earlier, former Policy Chief Kim was revealed to have raised the jeonse price by 14.1% two days before the implementation of the Lease 3 Acts and was dismissed from the Blue House on the 29th of last month.

Former Democratic Party lawmaker Geum Taeseop pointed out on Facebook, "The criticism raised against Rep. Park is that he, who led the jeonse and monthly rent cap, raised the rent significantly before the law was passed, so isn't it a case of the pot calling the kettle black?" He added, "However, Rep. Park distorts the questions directed at him and gives unrelated answers."

He emphasized, "Whether it is higher than the market price or not is not the point. The point is, 'Why did you raise it by 9% while preventing others from raising it by more than 5%?'"

Kim Eunhye, spokesperson for the People Power Party, also sharpened her words, saying, "Is the Democratic Party's hypocrisy so blatant that it cannot be hidden?" She criticized Rep. Park, saying, "What is he different from the 'Cheongdam-dong Kim (Sangjo) Chief,' who pretended to be clean and righteous but secretly took advantage?" and added, "This time, the 'real estate agency owner' excuse newly appeared."

She also said, "Former Chief Kim at least left the Blue House, but how will Rep. Park atone to the people?" and sharply criticized, "One Naeronambul a day, it's bewildering."

Kim Tae-nyeon, Acting President of the Democratic Party of Korea, is delivering a public statement at the National Assembly in Yeouido, Seoul on the 1st.
[Image source=Yonhap News]

As criticism continued, the ruling party stated on the 1st, "Please give the Democratic Party another chance," and "We will return to our original intention, which declared equality of opportunity, fairness of process, and justice of results."

Kim Tae-nyeon, acting leader of the Democratic Party, issued a public statement to the nation in the party leader's meeting room at the National Assembly that morning, saying, "Based on the investigation results of the Joint Special Investigation Headquarters, public officials found to be at fault will be severely punished regardless of their rank," and emphasized, "We will also reform the Naeronambul attitude. If problems are found, political and legal responsibilities will be held without exception."

Experts pointed out that the recent real estate-related setbacks of the ruling party would cause public discontent. Political commentator Lee Jonghoon said, "The double standards of progressives have been continuously controversial recently. The cases of former Chief Kim and Rep. Park revealed this time cannot escape criticism of progressive double standards," and added, "Especially, both raised rents just before the passage of the Lease 3 Acts. This can only be seen as using prior knowledge of the law's passage to gain personal benefits."

He continued, "In particular, Rep. Park had an image of being honest and modest to the public. But as this controversy arose, the public's sense of betrayal is significant."

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