[Summary] Ruling Party's Review of 'Hotel Jeon-Wolse Measures'... Opposition Criticizes as "Elementary School-Level Idea"

Hataekyung "Hotel and Apartment Structures Are Fundamentally Different"
Yuseungmin "Reconsider Real Estate Measures from the Beginning"

On the afternoon of the 18th, ahead of the government's real estate jeonse measures announcement to resolve the jeonse housing shortage, a view of an apartment complex seen from Lotte World Tower Seoul Sky in Songpa-gu, Seoul. / Photo by Yonhap News

[Asia Economy Reporter Lim Juhyung] As the ruling party is reportedly considering a plan to stabilize jeonse prices by purchasing hotels in Seoul and offering them as jeonse or monthly rent, criticism is pouring in from the opposition. The public desires 'residential facilities' for resting and childcare, but it is pointed out that hotel rooms cannot satisfy such needs.

Kim Yeryeong, spokesperson for the People Power Party, issued a statement on the 18th saying, "It is absurd to remodel non-residential buildings such as commercial buildings, factories, and offices into rental housing and convert hotel rooms into residential use," and criticized, "After showing baseless optimism and confidence that 'waiting will solve it,' is this the best they could come up with?"

She continued, "The ridiculous idea of utilizing commercial buildings and hotels as housing to secure jeonse and monthly rental units is already receiving cold responses from the public," and pointed out, "With measures at the level of an elementary school class meeting, the current real estate chaos can never be controlled."

On the same day, Ha Tae-kyung, a lawmaker from the same party, wrote on his Facebook, "Converting hotels into jeonse housing is utterly absurd," and pointed out, "What the public wants is a comfortable residential space where they can raise children and rest peacefully, not a single-room hotel with no ventilation. Hotels and residential apartments have completely different basic structures and living environments."

On the afternoon of the 18th, former People Power Party lawmaker Yoo Seung-min is giving a lecture on the topic of "The Future of Our Economy and the Role of the Social Economy" at Natural Dream Park in Goesan-gun, Chungbuk. / Photo by Yonhap News

Former Future United Party (formerly People Power Party) lawmaker Yoo Seung-min also raised his voice criticizing this policy on the 17th. Yoo wrote on Facebook, "It is outrageous to present converting hotel rooms into residential use as a measure," and urged, "Reexamine the 23 real estate measures that caused painful mistakes from scratch."

He added, "Prepare measures to dramatically increase housing supply in the metropolitan area by easing redevelopment and reconstruction regulations and supplying land," and said, "The government should step in for public rental housing to help those in severe economic hardship who find it difficult to secure jeonse or monthly rent." This is interpreted as a demand for policies focused on easing real estate regulations that have suppressed housing supply and increasing supply.

Meanwhile, Lee Nak-yeon, leader of the Democratic Party of Korea, responded to a question about the government's real estate measures at a Kwanhun Club invitation debate held at the Korea Press Center in Jung-gu, Seoul, saying, "The plan includes converting officetels, commercial buildings, and hotels into residential use and offering them as jeonse or monthly rent."

Lee Nak-yeon, Leader of the Democratic Party of Korea / Photo by Yonhap News

The plan is to purchase non-residential buildings such as commercial buildings and offices, remodel them into rental housing, and supply them to the market, and to renovate hotel rooms that have come onto the market due to economic downturn caused by the COVID-19 pandemic for residential use.

It also includes a plan for Korea Land and Housing Corporation and Seoul Housing and Communities Corporation to secure vacant houses in the metropolitan area and offer them as jeonse or monthly rent. The ruling party and government plan to announce a comprehensive jeonse measure including these plans on the 19th.

Regarding this policy, Democratic Party lawmaker Kim Min-seok explained in an interview with CBS Radio on the 18th, "I understand it as a way to explore all possible methods because measures are needed for such a very short-term situation," and said, "You can see that the authorities are reviewing various measures to the extent of considering such things (hotel jeonse and monthly rent measures)."

He added, "There are foreign cases of hotel jeonse," and questioned, "Isn't it impossible to suddenly create houses in just a few days when some demand arises?"