Yoon orders measures to improve “three housing lease laws”

Jun 21, 2022, 09:30 am

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President Yoon Suk-yeol answers reporters’ questions on his way to the presidential office in Yongsan District, Seoul, on June 20, 2022./ Source: Yonhap

AsiaToday reporter Kim Na-ri

President Yoon Suk-yeol has ordered officials Monday to come up with measures to improve the so-called “three lease laws” by analyzing the effects of the implementation.

“It has been two years since the enactment of the three housing lease laws, which could lead to uncertainties in the rental market,” Yoon said during a meeting with his top aides at his Yongsan office. The president then ordered officials to check what needs to be improved by analyzing the effect of the implementation, according to a presidential official.

Yoon also instructed “to expand benefits for landlords who keep rent hikes to a minimum and more support for tenants to ease their burden.”

The three housing lease laws were implemented under the Moon Jae-in administration. Under the laws, landlords are required to report information on contracts to the government, and cannot raise jeonse prices or rents by more than 5 percent when they renew contracts. Tenants can renew two-year contracts once if they want, unless landlords move into their rented houses. When Yoon was a presidential candidate, he pledged to abolish the three lease laws, claiming that they brought confusion to the housing lease market.

When asked whether Yoon ordered the abolition of the three lease laws, the presidential official said, “Rather than making big policy announcement, it was more of giving direction.” The official added that the relevant ministries will follow up on the president’s stated policy direction.

The government will announce a set of measures on Tuesday aimed at improving the lease system to stabilize the rental market and revamping the cap rule on pre-sale home prices.

Yoon also ordered to come up with measures to protect vulnerable groups from rising interest rates worldwide. “The financial authorities and financial organizations must work together to ensure the interest rate burden on financial consumers does not increase sharply at this time of rate hikes,” Yoon said.

The president also instructed to either merge or renovate committees under government ministries that either perform or function poorly.

Yoon Suk-yeol’s presidential transition committee had decided to consolidate and abolish government committees with poor performance in order to form a small yet efficient government. The transition committee had revealed that 7,186 local government committees, which had not held a meeting once a year, were subject to consolidation and abolition.

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