'Jeonwolse 신고제'... Strengthening Jeonse Market Monitoring and Enhancing Tenant Rights
Confusion Over Reporting Responsibility and Applicability for Rental Business Operators
Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki is delivering opening remarks at the 19th Real Estate Market Inspection Meeting of Related Ministers held on the 8th at the Government Seoul Office in Jongno-gu, Seoul. Photo by Hyunmin Kim kimhyun81@
[Asia Economy Reporter Jang Sehee] As complaints surged ahead of the implementation of the Jeonwolse (monthly rent and deposit) reporting system, the government decided to review the details. There is also an interpretation that concerns exist that it could further worsen the already deteriorated real estate sentiment.
On the 11th, a government official stated, "The Jeonwolse transaction prices disclosed through the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system were only information collected during the process of tenants obtaining a fixed date, making transparent management difficult," adding, "Through this system, monitoring of the Jeonse market can be strengthened, and tenants' rights can also be improved."
The Jeonwolse reporting system, which will be implemented from June 1, requires mandatory reporting of lease contracts within 30 days from the contract date. The report must include contract amount, contract date, area, floor, renewal status, contract period, etc. Failure to report will result in a fine of up to 1 million won.
Recently, the Anti-Corruption and Civil Rights Commission has received various complaints regarding the Jeonwolse reporting system, including issues about the reporting party and whether rental businesses are subject to the reporting requirement. They point out that without specific guidelines on the reporting system and only imposing fines, the burden on citizens will increase.
As related complaints continue, the government has decided to specify the details. On the 9th, Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki convened a green room meeting (ministerial meeting) with Minister of Land, Infrastructure and Transport Byun Chang-heum and Financial Services Commission Chairman Eun Sung-soo to discuss measures to prepare the lease reporting system without any issues. While the position is to clearly define the subjects to prevent market confusion, it was clearly stated that the policy will be implemented without modification for now.
Meanwhile, some netizens have shown strong reactions regarding the implementation of the Jeonwolse reporting system, such as "Repeal the Three Lease Laws" and "Please do nothing." The National Assembly passed the Three Lease Laws, including amendments to the Housing Lease Protection Act introducing the right to request contract renewal and the Jeonwolse rent cap system, at the plenary session on July 30 last year.
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