Urgent Call for Comprehensive Measures Against Jeonse Fraud... Also Improvement of Comprehensive Real Estate Tax

Ryu Seong-geol "Request to Adjust Special Boomingjari Loan Interest Rates"
Discussions on Revised Jechohwan Act and Others Expected to Continue

[Asia Economy Reporters Hyunju Lee and Youngwon Kim] The People Power Party's Special Committee on Economic Stability (Gyean Special Committee) urged the government on the 27th to prepare fundamental measures to improve real estate taxation, including comprehensive real estate tax and capital gains tax, and to prevent the recurrence of Jeonse fraud.

Ryu Seong-geol, a member of the People Power Party and chairman of the Gyean Special Committee, stated after concluding the 5th meeting that day, "There were parts where real estate taxation was excessively utilized, so we strongly demanded the Ministry of Strategy and Finance to rationalize the excessive tax burden to an appropriate level and continuously improve the overall tax system under the principle of normalization."

Ryu also said, "We strongly demanded the Ministry of Land, Infrastructure and Transport to promptly support victims of the recent malicious Jeonse fraud issues and to comprehensively announce measures to prevent recurrence."

Ryu Seong-geol, Chairman of the Economic Stability Special Committee of the People Power Party, is attending the plenary meeting of the Economic Stability Special Committee held at the National Assembly on the 27th and delivering an opening remark. Photo by Yoon Dong-joo doso7@

Additionally, regarding unsold housing, he said, "Since the impact on related industries such as construction companies is not insignificant, we requested the preparation of a proactive response system, including the expansion of guarantees by the Housing and Urban Guarantee Corporation (HUG)." HUG plans to supply a total of 15 trillion won by improving the existing PF guarantee system to provide 10 trillion won and newly establishing 5 trillion won in support for pre-completion unsold housing loan guarantees.

During the meeting, discussions were also held on adjusting the interest rate of the special Bogeumjari loan, expanding the operation of the Jeonse Damage Support Center, and the amendment of the Reconstruction Excess Profit Recovery Act.

Ryu said, "We requested the Financial Services Commission to adjust the interest rates related to the special Bogeumjari loan as much as possible in a way that can reduce the interest burden," adding, "At a time when Jeonse prices are falling, we asked that the special Bogeumjari loan be available to landlords who are having difficulty returning Jeonse deposits, and that active promotion be made so that no landlords miss out on using this due to lack of awareness."

He also stated, "The People Power Party will make every effort to amend related bills such as the Reconstruction Excess Profit Recovery Act and the Housing Act amendment, and we will revise them in the National Assembly as soon as possible."

Attending the meeting were Gyean Special Committee members Lee In-seon, Jeong Hee-yong, and Choi Seung-jae, as well as Lee Won-jae, 1st Vice Minister of the Ministry of Land, Infrastructure and Transport, and Lee Hyung-il, Deputy Minister of the Ministry of Strategy and Finance.