Measures Against 'About One Jeonse Fraud per Day'... Concerns Over Premature Policies

Since the launch of the new leadership, the People Power Party has increased policy consultations with the government. Although the intention is to gather public opinion through party-government consultations before announcing government policies that are distant from public sentiment, such as the '69-hour workweek' that sparked backlash from the MZ generation, there are criticisms that half-baked measures aimed at next year's parliamentary election voter sentiment are pouring out.

According to political circles on the 25th, out of the 24 party-government consultation meetings held this year, 17 were concentrated after the launch of the Kim Gi-hyeon leadership. The party and government have met 11 times this month alone, as public demand for countermeasures surged following the heating cost bomb controversy and a series of extreme choices due to jeonse fraud.

The People Power Party demanded measures such as 'auction suspension' related to jeonse fraud damage at the party floor countermeasure meeting on the 18th, and immediately established an in-party task force (TF) to respond to jeonse fraud the next day. Then, on the 20th, they called Minister of Land, Infrastructure and Transport Won Hee-ryong and others to the National Assembly for a party-government consultation meeting, and on the 21st, they met with the policy chiefs of the Democratic Party and the Justice Party to prepare legislative measures. On the 23rd, a closed party-government meeting was held to decide on enacting a 'Jeonse Fraud Special Act.'

The ruling party and government added countermeasures at a rate of 'one per day,' and in the process, showed inconsistent stances on the utilization of rental housing. Park Dae-chul, the policy chief, said to reporters right after the first meeting of the in-party jeonse fraud TF on the 19th, "Some have proposed that the state purchase or utilize rental housing, but whether the Korea Land and Housing Corporation (LH) or the government purchases it, the primary benefit goes to the creditors," adding, "Since it does not go to the relief or compensation of victims but to creditors, it is not being considered."

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However, after the party-government consultation meeting on the 20th proposed a tenant's right of first refusal and low-interest loans for housing auction funds, the special law announced on the 23rd included 'utilization of rental housing.' The special law allows tenants to exercise the right of first refusal to purchase auctioned properties with financial support. If tenants do not wish to purchase or lack funds, LH exercises the right of first refusal on their behalf, purchases the property, and allows tenants to continue living as public renters at below-market rates. Minister of Land, Infrastructure and Transport Won Hee-ryong drew a line by saying it is "different from public purchase" proposed by the opposition because it does not return the jeonse deposit to the affected tenants, but there are criticisms that financial input for LH to purchase the affected housing is inevitable.

For this reason, voices are emerging that the government should purchase jeonse fraud houses through supplementary budgets (추경) to rescue victims. Justice Party lawmaker Shim Sang-jung said, "It is fortunate that the ruling party and government have shifted their stance from outright opposition to public purchase without sufficient initial review," but added, "Budget allocation through supplementary budgets should follow to secure sufficient quantities." The National Countermeasures Committee for Jeonse Fraud Victims also stated on the 23rd, "If the government purchases jeonse fraud houses with existing budgets, it will cause controversy by pitting vulnerable groups who need rental housing against jeonse fraud victims," and "Separate supplementary budgets should be allocated."

Kim Gi-hyeon, the leader of the People Power Party, and the party leadership were elected at the March 8 party convention last month, emphasizing 'party-government unity,' meaning the party and government are one. With a party leadership dominated by the pro-Yoon Seok-yeol faction, they showed a unified front with the government through party-government consultations on various issues. However, some worry that if the political circles hold the key to policy ahead of next year's general election, populist measures may emerge. For example, in the four party-government consultations on heating costs held this year, the People Power Party and the government agreed on the necessity of raising electricity and gas rates but postponed the increase due to concerns over public opinion deterioration. Jang Sung-chul, director of the Public Opinion Center, said, "The ruling party seems quite confused between populism and realistic aspects," adding, "They criticized the Moon Jae-in administration for not raising rates in time, but now they are reluctant to raise them themselves because it might negatively affect next year's general election, so they are struggling between reality and justification."

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