Seoul City Conducts 'Study on Review and Analysis of Land Transaction Permission System Operation',
Councilor Lee Seong-bae: "Residents Have Suffered Greatly Due to the System, Will Thoroughly Review and Correct Issues Through In-Depth Research"
Seongbae Lee, a member of the Seoul Metropolitan Council (People Power Party, Songpa 4), requested the Seoul Metropolitan Government to thoroughly identify the problems of the land transaction permit system through the 'Review and Analysis Study on the Operation of the Land Transaction Permit System' commissioned by Seoul and to prepare alternatives.
He stated that if alternatives are not prepared, the council will respond strongly at the city council level.
The land transaction permit system refers to a system where parties involved in land and housing transactions within a designated area must specify the purpose of use, scale, price, etc., and obtain permission from the competent local government.
The government and Seoul designated major areas in Seoul, including Jamsil-dong in Songpa-gu and Daechi-dong, Cheongdam-dong, and Samseong-dong in Gangnam-gu, as land transaction permit zones to stabilize real estate prices. However, controversies over the system's effectiveness have persisted due to side effects such as infringement of private property rights and balloon effects, as well as doubts about its effect on stabilizing real estate prices.
Seongbae Lee, a member of the Seoul Metropolitan Council, said, “I have continuously raised issues regarding the effectiveness of the land transaction permit system, which was introduced to stabilize Seoul's housing prices,” and added, “As the system has been prolonged, the infringement of citizens' private property rights has worsened day by day, so I have continuously requested Seoul to conduct an in-depth analysis of the system's purpose, the rationality of zone designation, and overall system operation.”
In particular, Councilor Lee strongly criticized Seoul, saying, “Seoul has vigorously implemented the land transaction permit system, but real estate prices in Seoul have rather surged,” and “Despite only the side effects remaining, Seoul shows no willingness to improve, and even if alternatives are prepared, it is questionable how Seoul will execute an exit strategy under the current circumstances.”
He also said, “Since the system has been prolonged, various data comparing before and after the designation of land transaction permit zones inside and outside the zones have been accumulated, so I believe it is possible to conduct an in-depth analysis of the system by utilizing this data,” and added, “Through this study, not only should the effectiveness of the system be verified, but alternatives that can achieve the goal of stabilizing the real estate market should also be sought.”
He continued, “This commissioned study should not end as a research by experts alone but should collect diverse opinions through citizen opinion gathering and perception surveys,” and said, “In particular, the opinions of citizens who feel harmed by the system should be sufficiently reflected to derive alternatives for residents suffering from the land transaction permit system.”
Finally, Councilor Lee said, “The results of this study are expected to be released in December, and I plan to continuously monitor the progress of the study. If Seoul fails to prepare alternatives and the situation does not improve, I intend to respond strongly even through collective action at the Seoul Metropolitan Council level,” and added, “I will continuously raise issues against unfair regulations and ensure that local residents no longer suffer.”
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