"Stop Making the Homeless Cry"... Ruling Party's Repeated Real Estate Gaffes [Han Seung-gon's Political Notebook]

Jang Ha-sung, Yoon Joon-byung, Jin Sun-mi... Ruling Party Figures' Repeated Misstatements on Housing Issues Cause Embarrassment
Jin Sun-mi: "Must Abandon Apartment Fantasies... Confident Rental Housing Can Ensure Quality Living"
Opposition: "Reminds Us of 'If You Don't Have Bread, Eat Cookies'"
After Controversy, "Apologies to Those Struggling with Housing Shortage"
Criticism Arises Over Alleged Disconnect from 'Real Estate Public Sentiment'

Jang Ha-sung, former Chief of Policy Office at the Blue House Photo by Yonhap News

[Asia Economy Reporter Han Seung-gon] As the real estate market experiences turmoil due to the jeonse and monthly rent crisis, the suffering of the homeless?those without houses?is increasing, while a series of gaffes by government and ruling party officials have sparked controversy. Representative remarks include "Not all citizens need to live in Gangnam," "A world where everyone rents monthly is coming," "Abandon the illusion of apartments," "Turning hotels into jeonse and monthly rentals...," and "The Three Lease Laws are growing pains." Consequently, criticism has arisen suggesting that these officials either do not understand or completely fail to empathize with the public sentiment on real estate.

◆ Jang Ha-sung: "There is no reason for all citizens to live in Gangnam"

On September 5, 2018, Jang Ha-sung, former Blue House Policy Chief, said in a radio interview, "Not all citizens are trying to live in Gangnam. There is no reason to live there, nor is it a place where life is rooted," adding, "I say this because I live there myself."

Some interpreted Jang's remarks as meaning, "I live in Gangnam, so I say there is no need for everyone to live there," which sparked controversy.

At the time, Kim Sung-tae, former floor leader of the Liberty Korea Party (now People Power Party), criticized at an emergency committee meeting, saying, "This is a typical silver spoon mindset and leftist thinking that deliberately divides Gangnam and non-Gangnam areas," and added, "The immature Marie Antoinette-like remark, 'If there is no bread, then eat cake,' should stop."

Yoon Jun-byeong, a member of the Democratic Party of Korea, giving a press briefing during his tenure as the First Deputy Mayor of Seoul. Photo by Yonhap News

◆ Yoon Joon-byung: "A world where everyone rents monthly is coming"

On August 1, Yoon Joon-byung, a member of the Democratic Party, posted on his Facebook page an article titled "Is the conversion from jeonse to monthly rent a bad phenomenon?" He argued, "Although jeonse is a unique system operating in our country, it is a system destined to naturally disappear as income levels rise. This is also true in advanced countries like the United States," and claimed, "A world where everyone rents monthly is approaching, and this is not a bad phenomenon," which sparked controversy.

Immediately after Yoon's remarks, posts criticizing him appeared on real estate-related online forums, such as "Yoon criticizes the homeless saying monthly rent is better," and "Will the disappearance of jeonse really happen?" Another real estate community posted, "This is sophistry. Isn't this admitting that the market failed to respond and is ultimately shifting to monthly rent?"

In response, Joo Ho-young, floor leader of the People Power Party, pointed out, "Former Blue House Policy Chief Jang Ha-sung said, 'Not everyone needs to live in Gangnam. I know because I live there,' and then a Democratic Party lawmaker (Yoon Joon-byung) says this without knowing how much monthly renters suffer and struggle."

Facing controversy, Yoon appeared on a radio show on the 3rd and explained, "Both landlords and tenants may prefer jeonse or monthly rent depending on their given circumstances," adding, "It is inappropriate to say jeonse is good and monthly rent is evil, so I wanted to caution against such expressions."

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

◆ Lee Nak-yeon: "Converting hotels into residential use for jeonse and monthly rent..."

Recently, plans to convert hotels into residential units for jeonse and monthly rent have been revealed, leading to criticism that this also shows a lack of understanding of the suffering of those enduring the jeonse crisis. Additionally, social infrastructure such as schools, shopping areas, and transportation near hotels is relatively lacking compared to residential areas, which is also problematic.

On the 17th, Lee Nak-yeon, leader of the Democratic Party, stated at a Kwanhun Club discussion held at the Korea Press Center in Jung-gu, Seoul, in response to a question about government measures for the jeonse and monthly rent crisis, "The plan includes converting officetels, commercial buildings, and hotels into residential units for jeonse and monthly rent."

The explanation was that buildings previously used for commercial or office purposes would be remodeled into rental housing and supplied to the market, and hotel rooms that have come onto the market due to the COVID-19 impact and economic downturn would be renovated for residential use.

However, citizens have expressed incomprehension toward this plan. They argue that a home means more than just a place to eat and sleep, and the idea of converting hotels into residences is hard to accept.

A man in his 40s, Kim, who lives in Seoul on a jeonse contract, criticized, "It seems the government only thinks of a house as a physical space to eat and sleep," adding, "A home is a place where you want to rest after work and invite friends over for a meal." He continued, "Also, converting hotels means remodeling studio units, which ultimately means very small two-room units."

A college student in their 20s, Park, said, "No matter how much you convert a hotel, a hotel is still a hotel," and added, "It’s not about whether it’s a single-person or four-person household moving in." Park criticized, "Those suffering from the jeonse crisis are literally homeless, and this must be very miserable for them. I hope the homeless stop being made to suffer."

On the 20th, Jin Sun-mi, head of the Future Housing Promotion Team of the Democratic Party of Korea, along with lawmakers, listened to explanations about rental housing at the LH purchased rental housing Elim House located in Dongdaemun-gu, Seoul, during an on-site meeting for the housing welfare project.
[Image source=Yonhap News]

◆ Jin Sun-mi: "Abandon the illusion of apartments"

Meanwhile, Jin Sun-mi, head of the Democratic Party’s Future Housing Promotion Team, said on the 20th, "If we abandon the illusion of apartments, I am confident that we can secure quality housing through rental housing," which also drew criticism for ignoring the pain of those living in rental apartments or the homeless.

After a field discussion held at the Korea Land and Housing Corporation (LH) Seoul Headquarters, Jin told reporters, "I realized anew that we have distorted prejudices about rental housing."

Before the discussion, Jin toured LH’s purchased rental housing in Dongdaemun-gu’s Elim House and Gangdong-gu’s Seodo Hyuville, commenting, "There are three rooms, so there is no difference compared to the apartment I currently live in," and added, "We need to provide accurate perceptions and information." She also said, "Good apartments will be supplied in three years," and "We will do our best to provide more comfortable living spaces during this period."

Regarding calls to supplement the Three Lease Laws, she said, "The goal is to guarantee housing rights even through rentals, and I always feel sorry for those who face difficulties in the process," but also expressed opposition, saying, "However, the system needs time to settle and show effects."

However, Jin’s remarks were met with fierce criticism. Online real estate forums were flooded with comments like "You should live in rental housing first." Jin, known to hold a lease on a high-end brand apartment, was criticized for making an inconsiderate suggestion to "abandon the illusion of apartments."

On the morning of the 18th, ahead of the government's announcement of real estate jeonse measures to resolve the jeonse crisis, a real estate brokerage office in Songpa-gu, Seoul. / Photo by Yonhap News

◆ Ministry of Land, Infrastructure and Transport 1st Vice Minister: "The Three Lease Laws are growing pains our economy must endure once"

Yoon Sung-won, 1st Vice Minister of the Ministry of Land, Infrastructure and Transport, appeared on MBC Radio's "Kim Jong-bae’s Focus" and said, "The Three Lease Laws are growing pains that our economy must endure once as national income per capita surpasses $30,000," sparking controversy.

Yoon strongly denied accusations that the Three Lease Laws triggered the jeonse crisis. He said, "Jeonse prices have been rising since the second half of last year when interest rates were falling, and the current rise is due to multiple complex factors," adding, "Although the Three Lease Laws are often blamed as the culprit of the jeonse crisis, we do not agree."

Minister Kim Hyun-mi also apologized to citizens struggling to find new jeonse homes during a briefing on the 19th but stated that the Three Lease Laws are not a cause of the jeonse crisis.

Kim said, "The Three Lease Laws are a precious achievement based on social consensus that a house is a place where people live," emphasizing, "The way to spread the positive effects of tenant housing stability throughout the lease market is to stabilize jeonse supply and demand so that the Three Lease Laws can settle early."

◆ People Power Party: "Ridiculous remarks detached from public sentiment"

The opposition party immediately criticized. Kim Ye-ryeong, spokesperson for the People Power Party, said in a statement, "Ridiculous remarks detached from public sentiment continue as they try to justify wrong policies with sophistry," and asked, "If rental housing is no different from apartments, why does Representative Jin live in an apartment instead of rental housing?"

Kim Geun-sik, professor at Kyungnam University and head of the Seoul Songpa-byeong district party committee of the same party, wrote on his Facebook, "It is like the absurd remark of Marie Antoinette in France, 'If there is no bread, then eat cookies,' to hungry crowds."

Yoon Hee-sook, a People Power Party lawmaker, criticized Jin Sun-mi’s remark "Abandon the illusion of apartments" on Facebook as "intellectually lazy." She added, "It is truly disappointing that someone responsible for the legislative and ruling party’s housing policy is so intellectually lazy."

She pointed out, "After touring multi-family housing, Jin said, 'There are three rooms, so there is no difference compared to the apartment I currently live in,' which is intellectual laziness in making hasty judgments based only on the number of rooms."

She continued, "What is even more bleak is the arrogant attitude of dismissing long-accumulated public perceptions as mere 'illusions or prejudices' without any basis," and criticized, "It is the greatest irony of our modern history that those from the democratization generation are immersed in totalitarian thinking and neglect the basics."

Facing controversy, Jin said, "I intended to say that looking at quality rental housing could help overcome immediate difficulties," and added, "I am deeply sorry to everyone struggling with housing issues."