[2020 National Audit] Kim Hyun-mi "Hong Nam-gi, Should First Look for a New House"

On the afternoon of the 16th, Kim Eun-hye, a member of the People Power Party, questioned Kim Hyun-mi, Minister of Land, Infrastructure and Transport, regarding the recent jeonse crisis during the National Assembly Land, Infrastructure and Transport Committee's audit of the Ministry of Land, Infrastructure and Transport, the Administrative City Construction Agency, and the Saemangeum Development Agency held at the Government Complex Sejong in Sejong City.
[Photo by Yonhap News]

[Asia Economy Reporter Chunhee Lee] "Jeonse prices are skyrocketing. The government is neglecting 45% of the people living in others' homes and is neglecting its national duties." (2015 Kim Hyun-mi, New Politics Alliance for Democracy member)

"First, it would be best to look for a new home." (Kim Hyun-mi, Minister of Land, Infrastructure and Transport)

At the National Assembly audit of the Ministry of Land, Infrastructure and Transport held at the Sejong Government Complex on the 16th, Minister Kim Hyun-mi maintained her existing stance of upholding measures such as the introduction of the right to request contract renewal, emphasizing that the purpose of the Housing Lease Protection Act is primarily to protect tenants.

In response to a question from Kim Eun-hye, a member of the People Power Party, Minister Kim said, "As I have repeatedly stated, the Lease Protection Act was created to ensure the residential stability of tenants," adding, "Since the law was amended only a few months ago, there are various cases arising during its application, so I believe we will adapt and improve. We will clarify guidelines to minimize confusion."

Starting her inquiry by quoting Minister Kim Hyun-mi's words from five years ago?"Jeonse prices are skyrocketing. The government is neglecting 45% of the people living in others' homes and is neglecting its national duties"?Kim Eun-hye asked whether real estate policies are functioning, describing the situation as a comedy where people have to secure their family homes by playing rock-paper-scissors or drawing lots.

Minister of Land, Infrastructure and Transport Kim Hyun-mi is listening to a question from Kim Eun-hye, a member of the People Power Party, regarding the recent jeonse crisis during the National Assembly Land, Infrastructure and Transport Committee's audit of the Ministry of Land, Infrastructure and Transport, the Administrative City Construction Agency, and the Saemangeum Development Agency held at the Government Sejong Complex in Sejong City on the afternoon of the 16th.
[Image source=Yonhap News]

Kim Eun-hye then cited the case of Mr. A as "an example easily found around us."

Mr. A, who was renting near his workplace, was notified to move out early next year. He hurriedly looked for a jeonse but found it too expensive, and jeonse mortgage loans were not available because the house he owned exceeded 900 million won. Since the house was too far from his workplace to live in, Mr. A decided to sell it.

After great difficulty, he signed a sales contract. However, the tenant exercised the right to request contract renewal, putting Mr. A in a situation where he could not even sell his own house. The buyer must move into the house within six months if they take out a mortgage loan, but since the tenant wants to stay, the buyer cannot pay the balance with the mortgage loan, leaving all three parties in a difficult situation.

In response to Kim Eun-hye's question about what Mr. A should do, Minister Kim replied, "First, it would be best to look for a new home." When Kim Eun-hye said, "This is the story of Mr. Hong Nam-gi living in Mapo," Minister Kim responded, "It seems so." Kim Eun-hye continued her criticism, saying, "For people at risk of being homeless on the streets, the minister's words probably sound frivolous."

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is delivering opening remarks at the "8th Real Estate Market Inspection Meeting of Related Ministers" held on the 14th at the Government Seoul Office in Jongno-gu, Seoul. Deputy Prime Minister Hong is currently being asked to vacate his apartment in Mapo-gu by the owner, citing actual residence as the reason. Furthermore, it has been confirmed through Asia Economy's investigation that the sale of his apartment in Uiwang, which he owns, is facing difficulties due to the tenant exercising the right to renew the lease despite a sales contract being signed. Photo by Kang Jin-hyung aymsdream@

On the same day, Kim Eun-hye revealed an absurd response from the call center operated by the government for consultations on the Lease Protection Act. When a citizen, who was in a predicament because the existing tenant of a house they purchased for actual residence exercised the right to request contract renewal, asked, "Then do I have to become homeless?" a call center employee replied, "According to the current law, it seems so," as recorded in a disclosed audio recording. When the citizen expressed disbelief and asked, "Are you telling me to do gap investment?" the call center employee coldly responded, "Yes," or said, "Whether to do gap investment or not is up to each individual."

Regarding this reality, Kim Eun-hye pointed out, "The law is neither clear nor predictable, causing confusion only among the people," and criticized, "The law was made without discretion and applied retroactively without a grace period, which I believe has a high risk of being unconstitutional." Minister Kim replied, "Since the law was amended only a few months ago, there are various cases arising during its application, so I believe we will adapt and improve," adding, "We will clarify guidelines to minimize confusion."