Choo Kyung-ho: "The Three Lease Laws, Sudden Changes Cause Market Confusion... Will Supplement"

Choo Kyung-ho, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance Nominee / Photo by Moon Ho-nam munonam@

[Asia Economy Sejong=Reporter Son Seon-hee] Choo Kyung-ho, the nominee for Deputy Prime Minister and Minister of Economy and Finance, stated that he would "consider multifaceted supplementary measures" regarding the 'Lease 3 Acts (right to request contract renewal, rent ceiling system, lease reporting system)'. Following President-elect Yoon Seok-yeol's campaign promise to fully review the Lease 3 Acts, there was significant market expectation that these laws would be abolished after the new government takes office. However, the direction has shifted towards 'modification and supplementation' rather than abolition.

In a written response submitted on the 26th to the office of Park Hong-geun, a member of the National Assembly's Planning and Finance Committee from the Democratic Party of Korea, Choo said, "If we seek rapid institutional changes in the short term for the Lease 3 Acts, which the market has already adapted to over a considerable period, it could cause further market confusion." However, he reaffirmed his previous stance that "the Lease 3 Acts are direct price control policies not based on supply and demand conditions, inevitably causing market distortions, and thus are not a desirable approach," emphasizing that "the priority policy direction will be to promote market-friendly lease market supply-demand stabilization through increased supply."

Regarding real estate loan regulations such as the Loan-to-Value ratio (LTV), it is expected that adjustments will be limited to 'refinements' rather than rapid easing. In response to the International Monetary Fund's (IMF) recent recommendation to strengthen LTV regulations further to ensure macroprudential stability, Choo said, "I basically agree," adding, "Within the broader policy goal of stable household debt management, we will comprehensively consider the housing stability of low-income real demanders and the impact on the real estate market, and consult with related ministries to devise reasonable refinement measures."

On the real estate tax reform plan, he stated, "The current heavy taxation system on multiple homeowners needs normalization in terms of appropriate tax burden and real estate market stabilization," but refrained from commenting on specific measures.

Additionally, he identified 'price stability' as the top priority after the new government takes office. Choo said, "The issue of prices is more important and serious than any other current issue, and we plan to respond accordingly," adding, "Under the recognition that all ministries are responsible for price management, we will promote this as the new government's top priority through inter-ministerial cooperation."

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