Lee Jun-seok: Abolish Real-Demand Obligation to Normalize Jeonse Market

Lee Jun-seok, leader of the Reform Party, has called on the government to abolish the real-demand obligation for homes subject to the fixed housing price system, arguing it is a key measure to normalize the jeonse (long-term rental) market. Speaking at a party meeting, Lee stated that this change could be implemented through legislation without requiring any government budget.

“

The only way the government can immediately resolve the jeonse crisis without spending a penny of the budget is by abolishing the real-demand obligation for homes subject to the fixed housing price system.

Lee criticized the current administration's real estate policies, asserting they bear little difference from those of the Moon Jae-in administration. He pointed to similar approaches in rental regulations and a "arrogant stance" of suppressing demand while hindering supply. He highlighted that over 49,000 households in the Seoul metropolitan area are currently bound by the real-demand obligation for homes under the fixed housing price system.

“

Whether it's pro-Lee Myung-bak or pro-Moon Jae-in factions, when it comes to real estate, it's hard to find differences between the two governments.

"We must not forget that when the real-demand deferral was introduced, it led to the supply of thousands of jeonse units in just one complex," Lee said, referencing past market responses. He argued that concerns about speculative gains are already addressed by existing regulations like resale restrictions and capital gains taxes. Lee contended that the real-demand obligation, applied inconsistently, primarily restricts the availability of jeonse homes for young people rather than curbing profits.

“

We must not forget that when the real-demand deferral was introduced, it led to the supply of thousands of jeonse units in just one complex.

Lee urged the government to move away from rigid regulations, stating that real estate issues have historically led to voters punishing incumbent governments, regardless of political leaning. "If the Lee administration is to avoid becoming Moon administration 2.0, let's start by abolishing the real-demand obligation," he concluded, directly challenging the government to differentiate its policies and address pressing housing concerns.

“

If the Lee administration is to avoid becoming Moon administration 2.0, let's start by abolishing the real-demand obligation.