TRANSITION COMMITTEE REVIEWS LEASING LAWS

[Anchor Lead]

The presidential transition committee is reviewing to abolish or scale back the so-called three leasing laws, a signature real estate policy of the current administration. The committee believes the laws cause market confusion. Sharp price hikes could also occur when tenants' rights to request a renewal of their lease end in July for some rental homes.

[Pkg]

Of all policy briefings provided by current government agencies, President-elect Yoon Suk-yeol only attended the one by the land ministry. He called for a review of existing real estate regulations. During the briefing, some participants expressed the need for the three lease laws to be scrapped or scaled back.

[Soundbite] Won Il-hee(Transition Committee Deputy Spokesperson) : "We reiterate that the 3 laws cause considerable confusion in the market and our strong resolve to make improvements."

The laws give tenants the right to renew contracts on monthly rental or deposit rental homes known as jeonse for one time, to assure at least four years of residency. During this time, rent increases are also limited to 5 percent. They were introduced by the ruling Democratic Party in July 2020 but jeonse prices still soared. Starting July this year, some jeonse contracts can no longer be renewed, spurring concerns of a price rise.

[Soundbite] Yoon Suk-yeol(President-Elect(TV debate, Feb.)) : "The lease period expires in July which can push up Jeonse prices. So I promise to first revise the 3 lease laws."

However considering that the DP holds a majority in parliament, the transition team seeks to gradually amend the lease system in phases. The team will also step up state responsibility in compensating people who suffer side effects from COVID-19 vaccines. Yoon also met with Japanese Ambassador to Seoul Aiboshi Koichi and called for establishing future-oriented cooperative relations based on a correct view of history. Yoon also urged closer coordination between Seoul, Tokyo and Washington to convince Pyongyang that it has nothing to gain from nuclear weapons.