Hong Nam-ki: "Disaster Situations Like COVID-19 Also Included in Rent Reduction Requests" (Update)

7th Real Estate Market Inspection Meeting of Relevant Ministers

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is delivering opening remarks while presiding over the "7th Real Estate Market Inspection Meeting of Related Ministers" held on the 23rd at the Government Seoul Office in Gwanghwamun, Seoul.

[Sejong=Asia Economy Reporter Joo Sang-don] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated on the 23rd, "Currently, tenants can request a rent reduction if there are changes in economic conditions, but we will clarify that disaster situations such as the novel coronavirus infection (COVID-19) are also included in the amendment to the Commercial Lease Protection Act."

On this day, Deputy Prime Minister Hong made these remarks while presiding over the '7th Real Estate Market Inspection Meeting of Related Ministers' held at the Government Seoul Office.

Hong said, "Regarding the calculation of the rent delinquency period (3 months) under the Commercial Lease Protection Act, discussions are underway to exclude the first six months after the amendment takes effect from the delinquency period," adding, "Since the difficulties on the ground are significant, once this amendment is finalized, we plan to ensure it operates smoothly in practice."

Regarding the progress of the 'August 4 Housing Supply Plan,' he explained, "In the case of public redevelopment, since the public contest for selecting pilot project operators began on the 21st, dozens of associations have expressed their intention to participate," and "Among the applicant associations, we will carefully select pilot project sites starting in December, focusing on those with sufficient resident consent and urgent redevelopment needs."

He assessed that the real estate market is showing signs of stabilization. Hong said, "A calming trend in sales sentiment, which precedes housing market prices, has recently appeared," adding, "The supply-demand trend index by the Korea Real Estate Board is 102.9, gradually approaching the balance level of 100, and KB Real Estate's sales dominance index is 92.1, indicating a seller's market for two consecutive weeks."

Hong added, "This reflects some calming on the demand side as well, such as a decrease in the number and proportion of Seoul apartment purchases outside Seoul," and said, "The stabilization of the housing sales market is expected to contribute to the stabilization of the monthly rent market along with the establishment of the three lease laws and the expansion of supply in the fourth quarter."