Geonsanyeon "Moon Administration Caused Life Difficulties for Both Tenants and Landlords"

Publication of the Next Government's '4 Major Construction Policy Issues'
Proposals Including Deregulation of Redevelopment and Reconstruction, and Reform of the Subscription System

As strong government loan regulations reduce apartment transactions and buying demand in the Seoul metropolitan area, the housing market is unsettled over the comprehensive real estate tax imposed from the end of this month. The photo shows a real estate agency in downtown Seoul on the morning of the 7th.

The Moon Jae-in administration's real estate policies have caused pain for both tenants and landlords, and on the 9th, the construction industry argued that the Lease 2 Acts (the rent ceiling system and the right to request contract renewal) should be postponed or revised, while systems such as the rental business operator system should be maintained.

On the same day, the Korea Research Institute for Construction Industry Policy (KRICIP) published "Policy Tasks for the New Government," summarizing four construction policy issues that the new government launching next year should pay attention to, and made these statements.

First, KRICIP emphasized "stabilizing the quality of life for the people," stating, "The next government's real estate policy should be accompanied by the supply of private and public rental housing and policy support tailored to income levels and life cycles."

At the same time, emphasizing a "rental system for both tenants and landlords," they proposed revising the current Lease Protection Act into a "Lease Act" to create an environment where rental housing supply can continue.

KRICIP said, "The Lease 2 Acts, which are currently causing market instability such as the jeonse (key money deposit) crisis, need to have their application postponed until conditions for system operation are established." They added, "When applied thereafter, long-term stabilization of the private rental market should be pursued through market-friendly revisions such as excluding new housing from application and limiting rent increases based on market-linked rates."

They also stated, "To resolve the continuously increasing related disputes, it is necessary to grant binding mediation authority to the Housing Lease Dispute Mediation Committee."

Besides stabilizing the "quality of life for the people," KRICIP presented "gap reduction," "industrial advancement," and "safe infrastructure and sites" as major tasks for the next government.

Focusing on "reducing gaps across generations, regions, and industries," KRICIP prepared and presented 10 tasks including ▲support for asset formation through home ownership, ▲infrastructure enjoyed by all citizens, and ▲mitigation of vertical and horizontal disparities in the construction industry.

KRICIP pointed out that there is strong opposition from residents to public-led projects and that local governments and residents are also resisting in idle land areas, stating, "There is a need to consider supply methods that can secure market trust." They proposed tasks such as expanding public-private partnership sales volumes, easing redevelopment and reconstruction regulations, diversifying housing products, developing alternative sales products, and reforming the subscription system.

Regarding industrial advancement, aiming for "advancement of residential facilities, infrastructure, systems, technology, and manpower," they proposed 11 tasks including ▲restoring and advancing housing and real estate market functions, ▲innovation in public procurement, ▲fostering a smart construction industry, and ▲investment in human resources to promote the smartification of the construction industry.

Finally, in the "safe infrastructure and sites" sector, as measures to support a safe society through securing safety in infrastructure and construction sites, they presented six tasks including ▲transitioning from old and dangerous infrastructure to safe, advanced smart infrastructure, and ▲realizing safe construction sites.

Choi Seok-in, senior research fellow at KRICIP, said, "This report is a plan to solve national economic growth and various current social issues from the perspective of the construction industry," adding, "I hope it will serve as a foundation for the next government's construction policies."

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