"Is It Wrong to Buy a House with Hard-Earned Sweat"?... Citizens Take to the Streets Over Stricter Real Estate Regulations

On the 25th, a protest against the 7·10 Measures and the Three Lease Laws was held at Cheonggyecheon

[Asia Economy Reporter Lim On-yu] "Is it a crime to buy a house with money earned through hard work? Why should homeowners be discriminated against?"

On the 25th, a candlelight rally opposing the government's stringent real estate regulations was held in front of the Korea Deposit Insurance Corporation in Jung-gu, Seoul. As the government and ruling party unleashed strong regulations such as the June 17 measures, July 10 measures, and the Three Lease Laws under the pretext of blocking speculative demand, a space was created for multi-homeowners and rental business operators to protest.

The rally was hosted by groups including the "Citizens' Group for Relief of Victims of the Retroactive Application of the June 17 Regulations" and the "Victims' Group of the Retroactive Application of the July 10 Acquisition Tax." Participants gathered to fill about 170 meters of road and sidewalk on the south side of Cheonggyecheon. The organizers estimated the number of participants at 5,000.

Participants held candles and shouted slogans such as "Landlords are also citizens," "Repeal the Three Lease Laws," "Repeal the June 17 Real Estate Measures," "Are homeowners slaves?" and "President, step down."

A middle-aged woman who introduced herself as the representative of the 'Citizens' Group' internet cafe took the stage and received applause by asking, "In a free market economy, why is it illegal and a social ill to buy a house with your own sweat and tears and receive monthly rent?" and "You (the government and ruling party) are the ones who speculated, not us."

She said, "I am a multi-family building owner in a provincial city," and lamented, "Because of a child with a congenital illness, I bought an apartment pre-sale right near a university hospital to move, but the designation of the area as a regulated zone disrupted my moving plans." She added that she faced great difficulties in securing the balance of the loan, saying, "In my province, real estate transactions have disappeared, so I can't even dispose of the property, and when I try to lease it, I have to pay acquisition tax amounting to tens of millions of won."

Next, a member in his 40s from the Rental Business Association Promotion Committee spoke, raising his voice, "I have paid all acquisition tax, property tax, and comprehensive real estate tax that the country requires, and I have never evaded taxes but lived diligently. In 2018, registering as a rental business was considered patriotic, but now they call us speculators." He said, "I was planning to move for my children's education, but since I am a multi-homeowner and run a rental business, I have to pay 12% acquisition tax."

A woman complained that she became a temporary three-homeowner because the sale date of her house was delayed by a few days, and due to the new regulations, the taxes she has to pay suddenly increased by about 80 million won. Another participant who runs a small apartment rental business in a provincial area said, "With the increased supply of nearby apartments, I am in a situation where I receive a deposit of 20 million won and monthly rent of 100,000 won," and lamented, "Now they want me to pay 6% comprehensive real estate tax; it's like a bolt from the blue on a clear day."