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Enter 2020.12.16 11:00
Due to the rapid increase in confirmed cases of the novel coronavirus (Corona 19) infection, the limitation and ban period of the meeting is prolonged, requiring rental charges among small business owners and freelancers facing limitations and says, “Please implement the bill as soon as possible.” On the other hand, landlords criticized the government and the ruling party for creating a ‘bad owner (building owner)’ framework, saying that it is unfair to enforce rent cuts.
There are many voices of concern even among industry experts. Another side effect could occur, such as the possibility of infringement of property rights and “living owners” that become difficult to live in if the monthly rent is cut. It was also pointed out that the shopping center market could only contract through revision of the law.
According to political circles on the 16th, Dong-ju Lee, a member of the Democratic Party’s Democratic Party, representatively proposed Amendment 14 to the Shopping Center Lease Protection Act. In Article 11 of the Commercial Building Lease Protection Act (Right to Request Rent Increase or Decrease, etc.), a “ special case for rent due to infectious disease damage ” was recently established. When the business is restricted due to the crown, the lessor can claim the rent of the prohibited business. The main point is that no more than half of the claims can be made to the group-restricted industry. On that day, President Moon Jae-in said, “It sounds very painful to ask whether it is fair that (small business owners and the self-employed) have to bear the burden of rent and the sharp drop in sales.”
Tenants are welcomed by the political movement. A (50), who runs a restaurant in Haengsin-dong, Goyang-si, Gyeonggi-do at 6:30 pm on the 15th, was sitting alone in an empty store. “A student from part-time work, who saw that there were no clients because of the crown, voluntarily said, ‘Do I take a week off?’ He continued: “I could only sell one bowl at night, and today is in the middle of dinner, but there are no customers yet,” he said. “I’ve been in the business for decades, but it was the first time I had a hard time thinking about closing the business.”
Regarding the fair rent promoted by the ruling party, he said: “It is very good to see that the government promotes the history of rent cuts that tenants cannot get first,” he said. “I think it would be right for everyone to share the pain when it is difficult.” “He said.
At the same time of day, the situation was similar for the first-floor pub in the Wangsim-ri shopping district in Seongdong-gu, Seoul. Last year, it was a restaurant that had been waiting for customers all year, but there were no customers after work, just the boss and the part-time workers. The monthly rent that Mr. Kim (56), the president who took over this store in November last year, has to pay 4.5 million won (excluding VAT). Due to the Corona 19 incident, the local merchants association made a “ good tenant move ” last summer and lowered the monthly rent for 3 months by 1 million won, but the recent spread of the crown caused sales decreased and the rent burden increased.
Mr. Kim said, “There were no customers today and sales closed after 9pm and sales decreased more than in the last two or three months.” It would be great, “he said.
◇ Building owner “Half is too much … Is it a joint venture?”
On the other hand, among the owners of the building, a voice exploded saying: ‘We are also having a bad time’. There are also criticisms that the government and the ruling party are creating a “bad owner” framework.
Ryu Mo (56), owner of a three-story shopping center in Suseong-gu, Daegu, said: “The Landers also have to pay with a bank loan or a jeonse deposit, but if the rent is lowered, they are in the double high school “. “Wouldn’t that be like enduring all the tenant’s pain?” He said: “If you cut the rent by 50%, the landlord can also be destroyed,” he said. “The building owners also want to narrow their minds, but I can’t be willing because my pain is doubled.”
In particular, there is strong opposition to the regulation that “the rental fee must be paid less than half”. It is argued that the range of rent cuts is excessive.
Mr. Kwon Mo (69), owner of a 7-story shopping center in Jongno-gu, Seoul, who rents a computer room, beauty salon, medical institution and cafe, said: “There are fixed costs like taxes, building management and cleaning staff expenses, etc. ” I understand, but there is a problem with the law that requires that you do not accept the rent, make it less than half. ”
He said: “Taking into account the impact of the coronavirus, we are reducing rent by more than 20% for renters by industry,” he said. “I think the range of responsibilities for tenants is around 20%. A joint venture between the government, the landlord and the tenant is right?” He added.
The implementation of the rent stop method raises the possibility of reducing the labor required for building management or intensifying the preference of only good tenants. It was said that ‘if the rate of return deteriorates, the number of employees employed, such as guards and cleaners, will be reduced or their working hours will be shortened to reduce expenses. Mr. Kwon said: “Not only is this law likely to make the mall lease more unstable, it could cause further harm to the socially disadvantaged that the government seeks to protect.”
Landlords argue that if the rent is lowered, it is necessary to make up for the loss of the owner or the incentive. Ryu, a building owner in Suseong-gu, Daegu, said: “Since the coronavirus is difficult for tenants, it is necessary to take measures such as granting government tax benefits or paying about half of the reduced rent to tenants,” he said . “If so, many building owners will respond.” Said.
◇ Experts “Excessive infringement of property rights … We need to be rescued to endure together”
Experts pointed out that if the rent stop law is applied, property rights can be excessively infringed and if the monthly rent is cut, ‘living owners’ who have difficulty living can be harmed.
“The government seems to consider all owners to be rich,” said Shim Gyo-eon, a professor in the Department of Real Estate at Konkuk University. “However, many of them are living tenants who receive little rent,” he said. “Additionally, institutional investors are also investing with ordinary people’s funds or REITs.” “The damage will be passed on to ordinary people.”
He added: “Rent control may be considered in the City of Corona, but we need to approach the landlord in a way that we can support it with a balance of tax benefits, etc., rather than pass on the damage.” There is also the concern that it could generate mistrust that it is a country that steals money ”.
There is also concern that there is a possibility that the mall market will contract simply with the creation of a law. Hyeon-taek Cho, a researcher at the Mall Information Research Institute, said: “People who plan to invest in shopping malls will consider it because the rate of return will deteriorate if the rent is lowered.” did.
He said: “To apply this law in the field, several complementary measures are needed together,” he said. “It is necessary to differentiate according to standards for tenants, and measures are also necessary to prevent conflicts and disputes caused by changes in leases and reinstatement of rents. Do,” he added.
