2024-07-10 12:54:51
Sung Tae-yoon, the chief of staff for policy at the presidential office, said on the 10th, “The jeonse market has become quite unstable recently,” and “The ‘2 lease laws’ should be abolished immediately.” The contract renewal request system that guarantees an additional 2 years after a 2-year lease contract and the monthly rent cap system that limits rent increases to 5% of the previous contract, implemented by the Moon Jae-in administration, will be in its 4th year at the end of this month. The government plans to begin discussions on abolishing the 2 lease laws in earnest in the 22 National Assembly.
In a phone call with the Dong-A Ilbo on the same day, Director Sung emphasized, “We reaffirmed the principle of immediate abolition because it could have a negative impact on the real estate market around the 30th of this month.” He also said, “If the National Assembly situation is not favorable due to opposition from the opposition party, we plan to simultaneously proceed with a plan to increase additional housing supply at the government level.” It has been reported that the government will hold a high-ranking ruling and opposition party council as early as this month to discuss and announce legislative activities for the abolition of the two lease laws and measures to expand housing supply. In May, Minister of Land, Infrastructure and Transport Park Sang-woo also claimed, “The two lease laws should be restored to their original state.”
However, the Democratic Party dismissed the possibility of revising the 2nd Lease Act on the same day. A Democratic Party policy committee member said, “The rise in jeonse prices is due to situational factors such as an increase in jeonse demand instead of real estate sales due to high interest rates, and has nothing to do with the 2nd Lease Act,” adding, “We believe that abolishing the law will actually reduce the jeonse effect.”
On this day, Director Sung also mentioned the need to adjust the speed of the differential insurance premium increase between generations in order to reduce the burden on the younger generation during the government’s pension reform process. He said he would consider ways to increase the insurance premium rate for young people less or increase it slowly. Director Sung said, “We are trying to carry out structural reforms, not simply adjusting numbers, through the ruling and opposition party consultative body,” and “The key is to resolve the issue of intergenerational equity.”
Reporter Shin Na-ri [email protected]
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2024-07-10 12:54:51