Yun Ho-jung, chairman of the Democratic Party’s emergency countermeasures committee (left), talks with floor leader Park Hong-geun at a non-commissioned meeting held at the National Assembly on the 30th. By Kim Byung-eon, staff reporter
The Democratic Party of Korea criticized the Presidential Takeover Committee’s review of the abolition of the lease 3 law, saying, “It could be a mistake to buy a bridge.” He also argued that the side effects of the law, such as increased jeonse and monthly rent, should be addressed by introducing new regulations. There are speculations that the 3 Lease Act will become a new ‘prime’ for the National Assembly after the new government is launched.
Yoon Ho-joong, chairman of the Democratic Party’s emergency countermeasures committee, appeared on a radio broadcast on the 30th and said, “The takeover committee is saying that the 3 rental law will be abolished or greatly reduced, but there will probably be great confusion in the rental market.” A strong stabilization policy is needed to prevent this from happening.” The main point of the 3rd Law on Leases is to change the right to apply for contract renewal from 2 years to 4 years (2+2) and prohibit the rent increase by more than 5% when renewing the contract.
Chairman Yoon said, “It is necessary to apply the upper limit system to the monthly rent (even for new contracts) or implement a comparative price system.” This means that side effects such as rising jeonse and monthly rent must be addressed with new regulations. This conflicts with the leasing market policy of the Transition Committee, which says that the 3rd Law on Leases is ‘overregulation’ and should be reviewed.
Considering the opposition of the Democratic Party, the transition committee is focusing on supplementation rather than immediate abolition. While maintaining the 3 Lease Act, a plan to lower the rent or grant a separate tax benefit to the lessor who converts the monthly rent to cheonsei is being discussed.
The adjustment of the lease obligation period for ‘2+2 years’ and the adjustment of the limit of the monthly rent increase are also mentioned.
However, amendments to the law also require the consent of the Democratic Party.
Reporter Ko Eun-i koko@hankyung.com
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