[2024 National Audit] Minister of Land, Infrastructure and Transport Apologizes for Didimdol Loan Confusion, Announces Improvement Plan Soon (Comprehensive)

Ministry of Land, Infrastructure and Transport Comprehensive Audit
"If not the tenant's responsibility, HUG guarantee cancellation should not prevent returning jeonse deposit"
Criticism over exclusive celebrity entrance met with "We are thoroughly reviewing alternative options"

[Image source=Yonhap News]

On the 24th, Park Sang-woo, Minister of Land, Infrastructure and Transport, apologized for the Ministry's inconsistent stance regarding the reduction of the Didimdol loan limit during the national audit, stating, "There was no unified guideline, and we did not provide sufficient notice before implementing the measure, causing confusion and inconvenience to the public, for which we are very sorry."

The Didimdol loan is a policy financial product for home purchases, and the Ministry of Land, Infrastructure and Transport had reduced the loan limit on the 14th. However, after backlash from actual buyers, the implementation was postponed on the 18th. Then, on the 23rd, the Ministry announced plans to implement the limit reduction with a grace period only in the metropolitan area. As the Ministry changed its position three times in ten days, criticism arose at the comprehensive national audit session of the National Assembly's Land, Infrastructure and Transport Committee on the 24th, accusing the Ministry of only fueling market confusion.

Minister Park explained the reason for reducing the Didimdol loan, saying, "Considering that the recent continuous increase in policy loan volume could burden the stable management of the housing market and household debt, and the need to support more people with limited fund resources, we requested banks to refrain from excessive loan expansion."

He added, "Taking into account the differing housing market conditions by region, target group, and housing type, we will announce a customized improvement plan, including excluding non-metropolitan areas, as soon as possible. We promise that this measure will not apply to loans already applied for, and we will provide sufficient prior notice to prevent any inconvenience to the public when implementing supplementary measures." The Ministry plans to set a grace period for the limit reduction, but the loanable amount for Didimdol loan applicants in the metropolitan area is expected to decrease by tens of millions of won.

Regarding protection measures for tenants affected by the cancellation of rental guarantees by the Housing and Urban Guarantee Corporation (HUG), Minister Park stated, "We will revise HUG's internal regulations and terms to protect good-faith tenants without fault, and if necessary, pursue legal amendments." This means that in the future, if it is not the tenant's responsibility, HUG guarantees will not be canceled, preventing tenants from failing to recover their jeonse deposits.

Last year, during HUG's screening process for rental guarantee applications by landlords, forged contracts were not properly filtered, resulting in guarantee cancellations and tenants being unable to recover their jeonse deposits from HUG.

Regarding excessive restoration cost claims between landlords and tenants, Minister Park said, "We will create guideline-like instructions to allow repair cost claims based on specific standards and consider ways to apply them." This was in response to a question from Kim Do-eup of the People Power Party, who pointed out that Booyoung might be inflating the conversion price and repair costs of rental housing.

There were also criticisms from lawmakers that Incheon International Airport Corporation made a 'sly' announcement regarding celebrity access within the airport to avoid the national audit.

Jeon Yong-gi of the Democratic Party said, "Right after the national audit ended, Incheon International Airport Corporation sent an official letter titled 'Request for Cooperation When Artists Depart' to entertainment agencies, stating that a dedicated entrance for celebrities would be provided for their use. During the audit, when issues like 'excessive security' and 'emperor-style security' were pointed out, there was no response, but as soon as the audit ended, they quietly made this announcement."

He also mentioned that most recipients of the letter were major entertainment agencies and criticized, "The letter was not sent to small agencies like the one representing Lim Young-woong, so does that mean actor Byun Woo-seok can use it but Lim Young-woong cannot?"

In response, Lee Hak-jae, President of Incheon International Airport Corporation, said, "We will encourage quiet departures of celebrities or athletes and establish procedures for using the dedicated entrance to ensure there are no controversies over special treatment and that the public can use it safely." Minister Park also said, "We will thoroughly review whether there are other methods besides this one."