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Shortly after President Moon Jae-in mentioned the pain of rent for small business owners and the self-employed whose business was restricted due to quarantine measures, reports followed about the claim that “ the rent reduction is unconstitutional. because it is a violation of private property rights. ” The aggressive reporting also faded as the Democratic Party leadership drew a line on rent cuts. Instead of leading a policy discussion, it has been repeated again to determine the direction key.
On the 14th, President Moon’s comments at the Blue House chiefs and assistants meeting on the 14th set the catalyst for the rent discussion. President Moon said: “It sounds very painful to ask whether it is fair to bear the burden of rent and the sharp drop in sales if the business is restricted or prohibited according to quarantine guidelines.” “All of society shares the burden of pain and government. We need to bring together diverse solutions and knowledge to find ways to increase our responsibility and our role.” On the same day, Democratic Party lawmaker Dong-joo Lee proposed the “mental suspension method,” and the Justice Party leadership insisted that the government, tenants and tenants share the pain. Representative Yong Hye-in of the Basic Income Party recently issued an amendment to the Disaster Security Law in which tenants are also partially or fully exempted when they order to suspend or restrict the business of commercial buildings.
This is not the first time a claim has been filed to resolve the rent issue for small business owners and the self-employed. Following the amendment to the Commercial Lease Protection Act in September, a higher level of rental support has been consistently demanded. Since September, Participation Solidarity has argued that “there is a need to legislate emergency relief for reduction ‘beyond’ postponement ‘of commercial rental rates.” The ‘Shared Emergency Pain Legislation in which the government or local governments reduce the rent of commercial tenants suffering losses or suffering enormous pain due to enforced business restrictions through administrative measures equivalent to an emergency tax order, and the government shares part of the reduction or exemption. It’s an argument to review. ‘ Democratic Party lawmaker Lee Seong-man proposed the ‘Half Price Rent Law’ in September, in which a special disaster area is declared in accordance with the Disaster Safety Law, and when it is declared a special disaster area, the rent increases or decreases. In local governments, Goyang Mayor Lee Jae-joon has filed a petition on the Blue House National Petition website, stating that “I will immediately urge small business owners to reduce rent.” .
So far, the results of Korea’s initial quarantine have caused a delay in the response to the rental. Small business owners and the self-employed appealed for the need for additional supplemental measures even after the Commercial Leasing Law was revised in September, but the government and ruling party began to move only after distancing measures were taken. of the third stage.
However, even before the debate began in earnest, some media called it “unconstitutional.” The proportion of related reports is clearly prominent in the business magazine. On the 16th, the Korea Economic Daily (in a word … the mall rental is also controlled) and the Maeil Economy (let’s say a word from the president … 與, promoting the mall rental discount) discussed the discussion of rent reductions as a “private property infringement controversy”. Conservative newspapers stipulated the discussion of rent reduction or exemption as a “ struggle ” and a “ division of camps ” between landlords and tenants. △ The Chosun Ilbo “How to stop renting” ‘Dispute about tenants and tenants’ controversy “△ The JoongAng Ilbo (private)” Relieving the burden of rent should not be on the sidelines. “
At the time, the government and ruling party did not reveal specific instructions. First of all, President Moon, who released the buzzword, as well as the next day, the next day, Kim Tae-nyeon, the representative of the House, only said, “I will find a fair rental solution.” It was not reasonable to analyze government policy in detail or to conclude that it was “unconstitutional.” Therefore, it could not go beyond criticisms such as “the government’s willingness to actively intervene in the private sector” or “the idea itself is unconstitutional.”
Song Gi-chun, a professor at Chonbuk National University School of Law, said: “Depending on the content, the rental policy can sometimes be a violation of the private property system or a communist idea. I tweaked it. The media The media must meticulously demonstrate how landlord and tenant can find the best place to live together It was also the responsibility of the media to present specific cases abroad and suggest addresses that fit the Korean reality.
Overseas countries have already implemented policies such as rent support for small business owners and freelancers. In the United States, even if a tenant does not pay rent since March, they will not be evicted for up to 120 days, and a landlord who has not paid the loan will not be garnished for non-payment of the loan. Canada requires landlords to reduce their rent by at least 75%, the government pays 50%, and renters up to 25%. Homeowners receive benefits like tax cuts and loan delays.
Australia (New South Wales) requires rents to be adjusted through landlord-tenant negotiations. The landlord must reduce the rent as much as land taxes, utility bills, and insurance premiums have been reduced. In the case of the tenant, in case of damage due to ‘stop’, etc., the tenant must declare the fact of the damage and provide the relevant evidence. Both landlord and tenant can request renegotiation and, if landlord and tenant do not agree, mediation proceeds.
Professor Song said: “It will be necessary to consider all interrelated parties, rather than view (rent) only as a matter between the landlord and the tenant. It is true that the self-employed and small business owners are having difficulties in the midst of Covid 19, but this difficulty is a chain, so it seems that they are not only enjoying profits in the middle of being called a landlord. It would be nice to do it in a way that conserves a certain portion or percentage. ” For example, to receive the government rental guarantee, the landlord reduces the rent by 10-20% and in this case, the government compensates the tenant directly with 30% of the rent.
Han Sang-hee, a professor at Konkuk University School of Law, also stressed that what is important is the question of how the rent cut works. Professor Han said: “The most important thing is whether there is a system that can consider individual equity. It is possible that the owner of the building had a good business and had a very large and cheap store. In that case, it may be wrong to ask them to reduce. ”“ I think the purpose of (how to stop renting, etc.) should be totally consensual and constitutional, but you have to pay attention to details and details. It would be nice to set up a rent adjustment deliberative committee in the basic unit of local government, listen to the opinions of the tenant and the tenant, and adjust it in units like district, county, city, etc. through public hearings “.
However, the possibility of realization as the president’s request for the issuance of an emergency economic order was considered low. Professor Han said: “If the Korean National Assembly finally breaks out, it is impossible without knowing it. He added: “If the power of the people leaves the field and it is not a unit that refuses to attend the National Assembly, it cannot be exercised,” he added. “The ruling party now has 180 seats, but would it be necessary to invoke the emergency economic order?”
The government and the ruling party have stepped up to provide direct rent to tenants. In chronological order, the ruling party leadership said that the Democratic Party was concerned about the “possibility of unconstitutionality” or that there was a controversy within the Party. However, the ruling party has not even specified what is unconstitutional. The media that instigated the controversy about the unconstitutionality in the discussion of the reduction and exemption of rents have defended the unconstitutionality of the Third Leasing Law, but will they not respond to this? Now they are criticizing how useful a one-time support plan can be. Politicized reporting that puts the constitution before necessity is also a problem, but the reason is that the government and ruling party are also swayed by public opinion rather than elaborate discussions and are overlooking fundamental measures.
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