Noh Hyung-wook "Concerns Over Policy Trust Decline if Registered Rental System Abolished"

National Assembly Confirmation Hearing Response Materials

Nomhyunguk, nominee for Minister of Land, Infrastructure and Transport, is arriving at the personnel hearing preparation office set up at the Seoul Regional Land Management Office in the Government Gwacheon Complex on the morning of the 30th of last month.
[Image source=Yonhap News]

[Asia Economy Reporter Moon Jiwon] Nominee for Minister of Land, Infrastructure and Transport, Noh Hyung-wook, expressed a negative stance on calls to abolish the registered rental housing system. He explained that abolishing the registered rental system could worsen tenants' housing instability and reduce policy trust.

In response to a question from Park Sang-hyuk, a member of the Democratic Party of Korea, about his position on abolishing the registered rental system, Noh stated in his written answers submitted to the National Assembly on the 2nd, "If the registered rental housing system is abolished, there are concerns about the deterioration of housing stability for tenants living in private rentals."

Regarding recent discussions led by the Democratic Party of Korea on abolishing the registered rental system, he said, "We will ensure a balanced approach that maintains tenants' housing stability while providing benefits to landlords."

He explained, "If this system is abolished, tenants will find it difficult to reside long-term in the same housing, and it will be challenging to control landlords' excessive rent increase demands."

The registered rental system grants landlords tax benefits such as acquisition tax and property tax reductions, and imposes corresponding public obligations during the rental obligation period (10 years or more), including prohibitions on transfer, refusal of contract renewal, and restrictions on rent increases.

The government initially encouraged the registered rental system to stabilize tenants' housing, but as housing prices began to surge, it changed its stance, identifying it as a main cause of real estate market instability and strengthened regulations.

Noh pointed out, "The current government has made efforts to enhance tenants' housing stability through registered rentals, including announcing measures to activate rental registration," and added, "Abolishing the registered rental system could undermine trust in the policies the government is pursuing."

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