“I am a tenant”… Hee-suk Yoon’s five-minute speech about the incitement of a theater company became a reality.

On July 31, the post-storm of the Housing Lease Protection Act (the right to apply for contract renewal and the upper limit on monthly rent), which was passed and implemented like a lightning bolt in 3 days by the National Assembly, sweeping the real estate market. A chartered property disappeared in an apartment complex across the country where thousands of households live. At the time, the government and the ruling party pushed for the passage of the bill, saying, “The 3rd Lease Act was sufficiently discussed in the 20th National Assembly, and speed is more important than further discussions.”

Member of the Future Integration Party Yoon Hee-sook makes a free speech at the 7th plenary session of the 380th National Assembly (temporary assembly) held at the Yeouido National Assembly in Seoul on the afternoon of July 30.[News 1]

At the time, one person’s speech became a hot topic at the scene of the plenary session of the National Assembly without breaks. This is a five-minute speech by Rep. Yoon Hee-suk, who criticized the 3rd Law on Lease. As Congressman Yoon’s speech brought out public sympathy, Democrats along with the Democrats criticized him, saying, “It was extremely inflammatory.”

However, Congressman Yoon’s five-minute speech, which is extreme and inflammatory, has now become a reality. Yes, he was right. Even Deputy Prime Minister Hong Nam-ki, the head of the economy in the pre-generation column, became a jeonse refugee and was ridiculed by the public, and it has become a country that has never been experienced. I would like to revisit the original text of Congressman Yoon’s speech, who pointed out the aftermath of the rental law more sharply than anyone else.

“I’m a tenant, but I’m not happy”

I am a tenant. I moved in last May, and from the moment I moved to now, I am living with anxiety about what to do if the landlord tells me to leave after two years. But did I feel good while watching the bill voted today? It’s not like that.

▶ The Housing Lease Protection Act came into effect the day after it was resolved at the plenary session of the National Assembly on the 30th. If the tenant wishes, the main point is the right to request a contract renewal that guarantees a lease for 4 years (2 years + 2 years), and the jeon/month rent ceiling system that limits the rent increase to 5%. Amid opposition’s opposition, the Democratic Party passed the bill with a standing vote. At the time, the ruling party ignored the opposition’s opposition, saying, “We need to verify the effect of how it will affect the jeon and monthly rent market through simulation.” “We should decide and implement a demonstration area and expand it nationwide”.

▶ Rep. Yoon is both a tenant and a landlord. It is a common type of housing where you rent your own house (Seongbuk-gu, Seoul), and you live in another house (Seocho-gu, Seoul). However, two months after the lease law came into force, the law turned the common lease market into a battlefield. Deputy Prime Minister Hong Nam-ki, a tenant and lessor, emerged as a representative example. Deputy Prime Minister Hong, a tenant, was recently asked to evict from a private house in Mapo, Seoul, saying that he would live with the landlord, and he has not yet found a new private house. Mapo-gu area has soared billions of dollars. Deputy Prime Minister Hong, who is also a landlord, is on the verge of a misfire in the sale of his apartment in Uiwang, Gyeonggi Province. This is because the tenant exercised the right to apply for contract renewal. The contractor I bought to live in Uiwang apartment could not move in, so the mortgage loan was blocked and I could not pay the balance. Is Hong, caught up in government policy, a bad speculator that the government will catch?

“There must be no more charter”

My thoughts were that after four years, I would go into rent without moving. There must be no more charter now. That is my personal concern. The rental market is very complex, so the lessor and the tenant can only coexist and maintain. If you put the landlord at a disadvantage to side with the tenant, as a landlord, you raise the price or go out of the market.

▶The chartered property has disappeared nationwide. As a result of a total survey of apartment complexes with 1,000 or more households nationwide through the real estate big data company’Asil’ (apartment transaction price), 72% (1299) of a total of 1798 complexes found that there were 5 or less for rent. Among the nationwide apartment complexes, 22% (390 complexes) of’Zero Rentals for Sale (0)’ complexes. There are many jars that cannot be entered even after raising the total price because there is no sale. Lotte Castle First, Gangdong, Amsa-dong, Gangdong-gu, Seoul, where 3226 households reside, has no charter for sale in 40 apartments.

There is no charter for sale in this grand apartment.  Lotte Castle Apartment in Amsa-dong, Gangdong-gu, Seoul on the afternoon of the 15th.  Reporter Jang Jin-young

There is no charter for sale in this grand apartment. Lotte Castle Apartment in Amsa-dong, Gangdong-gu, Seoul on the afternoon of the 15th. Reporter Jang Jin-young

▶ Like the anecdote of Deputy Prime Minister Hong, who became a’laughing’ case of refugees from Jeonse, the win-win relationship between the tenant and the lessor has cracked. According to the Korea Legal Aid Corporation, the number of consultations on lease disputes from August to September was 17,839, up 61% from the same period last year. Tens of thousands of won of condolence money may be requested on the condition that the tenant does not exercise the right to apply for contract renewal to the landlord. The landlord has a tough interview, saying that he will cover the tenant. Tenants have also appeared, trying to grab a chartered property even after giving more than the money to the brokerage in a shortage of charters. In the end, the government’s policy of catching bad speculators has brought about the struggle for all.

“The whole generation is beginning”

Then, am I against protecting the tenant? I absolutely agree. Then what should I do? The government has to pay. The moment it frightens the landlord to rent a house, the market is about to collapse.

The cheonsei system in Korea, as you all know, is a unique system that does not exist in the world. In the era of high growth, interest rates were used by landlords to make use of wooden money and interest, and tenants to save money and to prepare a home. The balance is coming so far, but since the era of low interest rates, the jeonse system has already entered the path of extinction. Still, many people prefer to charter.

▶The number of apartment charter transactions has decreased significantly. According to the Seoul Metropolitan Government, the number of apartment charter transactions in Seoul last month was 5262, a 57% drop from July (12,090) before the lease law was enforced. Even compared to September last year (9300 cases), it is half the level. According to KB Kookmin Bank, the Seoul Jeonse Demand and Demand Index in the first week of October was 192, the highest since September 2013. It is a story of a shortage of supply. As the tenant renews the contract with the right to request renewal, the chartered property is locked, and the property itself is decreasing as the landlords go live. As the tenant eviction debate sparked, the price of a property that could be rented without a tenant became more expensive than a property with a tenant. As the number of landlords who want to convert to half-month rent or monthly rent instead of cheonsei through the low interest rate and the three lease laws is increasing, and the number of apartment occupants is also decreasing, the jeonse section will become worse in the future.

“The jeonse contract is increased by one year, but the rent has risen by 30%”

What I’m trying to say here is, can you say that it was really force majeure when this problem appeared. Can you say you didn’t predict it?

When the lease contract was increased from one to two years ago 30 years ago, it only increased by one year, but from the previous year, from the end of 89, the rent began to rise, up 30% from the previous year. 1990 was up 25% from the previous year. There was confusion like this.

But this time I tied it at 5%, so would it be okay? Now the interest rate is less than 2%. Even if I’m a landlord, I’m not going to rent, but I’ll tell my son and daughter to come in and live. I’m going to tell my nephew to come in and live, and pay the maintenance fee.

▶Seoul apartment rental prices are on high altitude. According to the Korea Appraisal Board, the rate of increase in apartment rental prices in Seoul in the second week of this month rose by 0.08% for 68 consecutive weeks. The increase in the rented price experienced in the field is recording billions. Lotte Castle First in Gangdong, Amsa-dong, Gangdong-gu, Seoul, where there are 0 items for rent, is said to cost 850 million won (84㎡). Just three months ago, the total price was around 600 million won. The message of one major brokerage is that even if the price jumps in the billions, there are many waiting groups, and the contract is made before it is even uploaded to online sales.

▶ Deputy Prime Minister Hong, who became a Jeonse refugee, praised himself at a recent meeting of ministers related to the real estate market inspection, saying, “Existing tenants have shown the effect of stabilizing housing.” However, the effect of the existing tenant’s housing stability is until the renewal period. The surge in jeonse prices, promoted by the Leasing Act, shook even the stable reconstruction apartment rental market. Due to the fact that they are old apartments, rents for reconstruction complexes that are relatively cheap and do not rise well are rising unprecedentedly. The rent for 3,710 households in Seongsan Municipal Apartment in Mapo-gu, Seoul, has remained at 200 million units for several years, but since the lease law enacted, there have been 400 million units for rent (only 59㎡).

“It controls the lives of 10 million, but I don’t even deliberate.”

It was force majeure, and it was completely unpredictable. Let’s say yes by making a hundred concessions. Then, when making a law that governs the lives of 10 million people in our country, we need to check what problems we haven’t thought of. That is why there is a process of construction review by the standing committee.

If there was this construction review process, what would we have checked? If it were me, what incentives would I give my landlords so they wouldn’t be afraid, how would I be considerate of an elderly landlord who lives on rental income alone, and how would I protect the rich tenants who live in billions of dollars in the same way? You must have checked these points and so on.

▶Congratulatory deliberation (逐條審議, discussing clause by clause) is a deliberation method in which a decision is made while reading the legal text one by one. Although it takes a long time, it is possible to review detailed parts, so that small changes and side effects due to legislation and amendments can be checked. It is mainly used by the Standing Committee of the National Assembly, especially the Legal and Judicial Committee.

▶However, it took only 2 hours for the lease protection law to be submitted to the judiciary committee and to review and decide. It took 28 hours from the assumption of the entire judiciary committee meeting to the passing of the plenary session. According to the National Assembly Act, the agenda such as the proposal of the bill is determined through consultation between the secretaries of the bargaining organization in the hospital, and after the bill is proposed, the procedures for explaining the proposal, reviewing and reporting by expert committee members, alternative discussions, subcommittee review, construction review, pros and cons, and votes. It is common to go through. But all were omitted. The Democratic Party passed the bill with a standing vote.

▶The law was enforced in a hurry, and as a result, the people stood in a long line to find a private house. Recently, a photo of 10 people lined up to see a private house in an apartment hall in Gayang-dong, Gangseo-gu, Seoul became a hot topic. Finding a charter has become the star picking of the sky. Eventually, the house’s charter contractor was decided by lot. Minshim, angered by this absurd line-up and draw lots, put the face of Deputy Prime Minister Hong on the line in the photo, and used it as a mockery.

“The guts and arrogance… It will be remembered for a long time in the history of public welfare”

What kind of guts and arrogance do you make this by law without checking this?

The people who made this law, and the Democrats, and the Democrats who took this process without careful consideration, will be remembered for a long time. It will be remembered for a long time in the history of Korea’s jeonse and real estate policies and people’s livelihoods. Thank you for your attention.

▶ At the State Administration Audit of the Ministry of Land, Infrastructure and Transport held on the 16th, the whole generation column was definitely a hot topic. In response, the Minister of Land, Infrastructure and Transport Kim Hyun-mi said, “We will take close care so that the 3rd Lease Act can be settled in the market early.” However, the methodology of the government and the ruling party is still a change in regulation. It is a situation where additional measures have been announced to resolve the pre-generational problem. In a recent interview with this magazine, Rep. Yoon said, “There is no country that has macro-regulation for all classes in order to set the price of a house in a specific area.” “It is not because of a few evil motives that the price is rising like this. The majority of the people are moving. It is the responsibility of the policy that made it move.”

Reporter Han Eun-hwa [email protected]


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