Hong Ji-sun: No Plans to Expand Lease Renewal Rights Amid Caution on Land Transaction Permits

Hong Ji-sun, the Minister of Land, Infrastructure and Transport, stated that there are currently no plans to expand lease renewal rights. She refrained from giving a direct answer regarding the lifting of land transaction permit areas.

During a comprehensive audit at the National Assembly's Land, Infrastructure and Transport Committee on the 23rd, Minister Hong responded to a question from Kim Jeong-jae, a member of the People Power Party, about plans to expand lease renewal rights, saying, "I think we need to hear various opinions," indicating that it is not under consideration at this time.

Regarding demands for the swift lifting of land transaction permit areas, she said, "It is difficult to say here whether we will do it or not."

Kim pointed out that the strengthening of actual residence obligations and regulations on private rental businesses are contributing to a decrease in jeonse availability and an increase in monthly rent. He specifically noted that the prolonged enforcement of the land transaction permit system is placing a burden on the rental market.

In response, Minister Hong explained that the trend of converting jeonse to monthly rent is occurring not only in the metropolitan area but also in rural regions. She stated, "The phenomenon of jeonse converting to monthly rent is appearing in rural areas that are not subject to regulatory zones or land transaction permit areas, similar to the metropolitan area."

However, she clarified that this does not mean that rental prices in rural areas are rising to the same level as those in the metropolitan area. Minister Hong emphasized, "Rental prices have not risen as much as in the metropolitan area," adding that there is a tendency for jeonse to convert to monthly rent.

She also announced plans to establish support measures for the Housing and Urban Guarantee Corporation's rental assurance trust project by the end of the year. Minister Hong stated, "We will review various support directions to ensure that the rental assurance trust can settle well in the market," and pledged to finalize these matters by the end of the year.