'10·15 Real Estate Policy' Heads to Court...Regulations to Be Lifted If Opposition Wins

Reform New Party Files Administrative Lawsuit and Request for Suspension of Effect
Former Board of Audit and Inspection Chairman Choi Jaehyung Joins Legal Team
Cheon Haram: "If the Lawsuit Is Lost, Minister Kim Yoonduk Must Step Down"

Cheon Haram, floor leader of the Reform New Party, filed a lawsuit on November 11 at the Seoul Administrative Court seeking to cancel the 10·15 real estate policy and suspend its effect. The main argument is that the government used inappropriate housing price statistics to formulate the policy, rendering it invalid. The legal team for the lawsuit includes Choi Jae-hyung, a former member of the People Power Party and former Chairman of the Board of Audit and Inspection.

Cheon Haram, floor leader of the Reform New Party, is visiting the Seoul Administrative Court in Seocho-gu, Seoul on the 11th to file an administrative lawsuit and request a suspension of the 10.15 real estate policy. Photo by Yonhap News

Speaking with reporters in front of the Seoul Administrative Court in Seocho-gu, Seoul that morning, Floor Leader Cheon said, "The September statistics clearly exist, yet the government concealed them from the public, lied with political intent, and illegally issued the 10·15 real estate policy. I have come here to submit an administrative lawsuit and a request for suspension of effect in order to rein in the runaway actions of the Lee Jaemyung administration, even if it must be through the courts."

The core issue in this administrative lawsuit is whether the government appropriately used real estate statistics. According to the Enforcement Decree of the Housing Act, an area can be designated as a regulated zone if the housing price increase rate over the previous three months exceeds 1.3 times the inflation rate (1.5 times for speculative zones).

When announcing the 10·15 policy, the government used statistics from June to August. However, the opposition argues that since the Ministry of Land, Infrastructure and Transport had already checked the September statistics on October 14, the day before the Housing Policy Deliberation Committee meeting, the statistics from July to September should have been used. If the July to September statistics had been applied, districts such as Jungnang, Gangbuk, Dobong, and Geumcheon in Seoul, as well as Uiwang City, Jangan and Paldal Districts of Suwon, and Jungwon District of Seongnam in Gyeonggi Province, would not have been included as regulated areas.

Earlier, Kim Eunhye, Senior Deputy Floor Leader for Policy of the People Power Party, also stated the previous day, "It has been confirmed that the Ministry of Land, Infrastructure and Transport received the September housing price statistics from the Korea Real Estate Board on October 13, two days before the announcement of the 10·15 policy, but did not reflect them in the policy," and announced plans to file an administrative lawsuit. The People Power Party is expected to gather victims of the regulation and file a lawsuit within this month. Floor Leader Cheon commented on the People Power Party, saying, "If they agree with the cause of the Reform New Party, we can cooperate at any time."

If the court rules that the government acted illegally, it is expected that there will be significant turmoil in the real estate market due to the reversal of regulations. Kim Yoonduk, Minister of Land, Infrastructure and Transport, stated at the National Assembly Special Committee on Budget and Accounts the previous day, "If we lose the administrative lawsuit, I believe lifting the regulations is only natural." Floor Leader Cheon criticized, "Minister Kim should not just say, 'If we lose the lawsuit, we will cancel the policy.' He should step down. He is not qualified to serve as Minister of Land, Infrastructure and Transport."

Meanwhile, the Reform New Party announced that on this day, former lawmaker Choi and Kang Myunghoon, managing partner of Hajeong Law Firm, joined the legal team for the administrative lawsuit. Former lawmaker Choi is a former judge who served as Chief Judge of the Seoul Family Court and as chairman of the Innovation Committee of the People Power Party.