Choo Kyung-ho Proposes Five Bills Including the 'Special Act on Private Rental Housing' to Stabilize Jeonse and Monthly Rent

On the 3rd, Chu Kyung-ho, the Senior Deputy Floor Leader of the People Power Party, is speaking at a meeting between press organizations regarding the amendment to the Press Arbitration Act held at the Senior Deputy Floor Leader's Office of the People Power Party in the National Assembly. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Hyunju Lee] Rep. Choo Kyung-ho of the People Power Party has introduced five bills, including the "Special Act on Private Rental Housing," as measures to stabilize the jeonse and monthly rent market. If the bills related to rental business and tax systems are passed, the systems and benefits will be restored to the state before the implementation of the "September 13 Housing Market Stabilization Measures" announced by the Moon Jae-in administration in 2018.

According to Rep. Choo's office on the 5th, starting from the Moon administration's "September 13 Housing Market Stabilization Measures," tax benefits for rental business operators began to be abolished or reduced. Last year, the "July 10 Housing Market Stabilization Supplementary Measures" abolished the long-term and short-term apartment rental housing systems, as well as the 4-year short-term rental housing and 8-year long-term rental housing systems. As a result, the supply of rental housing listings sharply decreased, and the jeonse prices have been hitting record highs daily, according to Rep. Choo's office analysis. According to the Korea Real Estate Board, the average jeonse price increased by 200 million won in July this year compared to July 2017.

To reverse this, Rep. Choo is pushing for amendments to the "Special Act on Private Rental Housing," the "Comprehensive Real Estate Tax Act," the "Income Tax Act," the "Restriction of Special Taxation Act," and the "Local Tax Act." The bills include restoring the apartment short-term and long-term rental housing systems and the 4-year short-term rental housing system, as well as restoring the benefit of excluding rental housing from the comprehensive real estate tax aggregation. Additionally, the bills aim to reinstate the exemption from the application of the increased capital gains tax rate, restore tax reduction benefits on rental income, and return the special deduction benefits on capital gains tax for long-term rental housing to their original state. The amendment to the Local Tax Act is designed to restore the 4-year short-term rental housing and apartment rental housing systems, and, similar to the current 10-year long-term rental housing, impose a penalty by reclaiming the tax reduction amount if the rental obligation period is not fulfilled for these two types of rental housing.

Rep. Choo pointed out, "The abolition of major private rental housing systems such as apartments has caused a jeonse and monthly rent crisis," emphasizing, "We intend to restore the rental housing systems abolished by the Moon Jae-in administration to stabilize the jeonse and monthly rent market."

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