Ruling and Opposition Parties, Are They Ready to Prevent the Jeonse Crisis in July and August?

Delay in Organizational Formation with No Discussion on Lease Protection Act
Concerns Grow Over Rental Crisis Due to Legislative Gaps
Freight Solidarity General Strike and Other Economic and Livelihood Issues Pile Up

On the 8th, as the second half organization of the National Assembly faces difficulties and concerns about a parliamentary vacuum arise, the plenary hall of the National Assembly is empty with the lights on. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Koo Chae-eun] As the deadlock in the National Assembly shows signs of prolonged continuation, criticism is rising that the political sphere will fail to properly respond to the expected "Jeonse crisis" starting in July.

According to political circles on the 16th, the only bill related to the "July-August Jeonse crisis" currently in the National Assembly is the bill to extend the right to request contract renewal (3+3 years, total 6 years guaranteed) proposed by Park Kwang-on of the Democratic Party of Korea (amendment to the Housing Lease Protection Act). The three lease laws will mark their 2-year enforcement next month, and as the contracts expire, landlords who have been bound by the rent ceiling system will find it difficult to significantly raise rents again for another 2+2 years, totaling 4 years, if they sign contracts this time. If this continues, a sharp rise in Jeonse and monthly rent prices is inevitable.

Minister of Land, Infrastructure and Transport Won Hee-ryong has promised to present supplementary measures, but since it is ultimately a legislative matter, it must pass through the National Assembly. In particular, the People Power Party is pushing for a complete revision of the three lease laws, while the Democratic Party is focusing on maintaining and supplementing the system, so considerable difficulties are expected during the bill passage process.

Along with this, a bill related to the "Delivery Price Linkage System," a safety measure to prepare for the continued surge in raw material prices expected in the second half of the year, is also urgent. Democratic Party lawmaker Kim Kyung-man proposed the "Amendment to the Act on Promotion of Mutual Growth between Large and Small-Medium Enterprises" (Mutual Growth Act) and the "Amendment to the Act on Fair Transactions in Subcontracting" (Subcontracting Act) last year. In the People Power Party, lawmakers Han Moo-kyung and Kim Jung-jae included related content in the Mutual Growth Act in April.

The problem is that with the Democratic Party's party leadership competition intensifying ahead of the August party convention, the legislative function of the National Assembly related to lawmaking may weaken further. Political commentator Park Sang-byeong said, "Since the economic situation is not good, the National Assembly must quickly resolve issues directly related to people's livelihoods."