Won Hee-ryong "Abolition of the 3 Lease Laws Needed... The Special Act for 1st Generation New Towns Must Be Linked with the Master Plan"

On the morning of the 29th, at the Press Center in Jung-gu, Seoul, Won Hee-ryong, Minister of Land, Infrastructure and Transport, is speaking at a discussion invited by the Gwanhun Club. (Photo by Ministry of Land, Infrastructure and Transport)

[Asia Economy Reporter Ryu Tae-min] Won Hee-ryong, Minister of Land, Infrastructure and Transport, expressed the necessity to abolish the right to request contract renewal and the rent ceiling system for jeonse and monthly rent. Regarding the ‘1st Generation New Town Special Act,’ he emphasized the need to link it with the Ministry of Land’s master plan.

Minister Won said at a Kwanhun Club invitation debate held at the Press Center in Jung-gu, Seoul on the morning of the 29th, “It was true that there were concerns about a jeonse crisis occurring when many contracts with a 2+2 year extension period end in August, causing a simultaneous increase in four years’ worth of jeonse prices,” adding, “However, as interest rates continue to rise and the new government’s sale and lease policies are continuously announced, I believe the possibility of an explosive jeonse crisis is low.”

He also commented on the rent ceiling system for jeonse and monthly rent, saying, “Forcibly capping jeonse prices caused the side effect of rising house prices,” and stated, “It is necessary to abolish this system and prepare alternatives that guarantee tenants’ housing rights in a new way.”

Regarding the right to request contract renewal, Minister Won said, “The biggest issue is whether the lease duration should be designed in connection with incentives,” and added, “It doesn’t have to be exactly three years; if the 2+2 year extension is applied five times, there could be progressive incentive tax reductions so that property tax becomes zero.” He further noted, “There are many incentives that can be provided related to taxes, loans, and various guarantee issues with tenants.”

Regarding the ‘1st Generation New Town Special Act,’ he emphasized the need to link it with the Ministry of Land’s master plan. He said, “There are many issues to solve for the recreation of new towns looking 50 to 100 years ahead,” and stressed, “It is desirable to quickly establish a master plan to solve various problems of the 1st generation new towns and to legislate a special act that supports it.”

Minister Won added, “The more the master plan and the special act are linked, the more specific the special act can be,” and said, “Creating a thorough master plan is the primary mission of the private-public joint task force (TF), and whether a high-quality law can be produced is the responsibility of the National Assembly.”

The Ministry of Land plans to hold a Housing Policy Deliberation Committee meeting on the 30th to discuss whether to lift regulation zones. Minister Won said, “There is a principle that regulation zones should be eased according to the situation,” but added, “There is still a need to stabilize the overheated market because some expect the market to stir by excessively high asking prices or high sale prices.”