The Deputy Prime Minister caught in the leasing law trap

Hong Nam-ki, Deputy Prime Minister of Economy and Minister of Strategy and Finance, speaks at a meeting of ministers related to the inspection of the real estate market held at the Seoul Government Complex on the 14th. Newsis

It was confirmed that the apartment in Uiwang City, Gyeonggi Province, which was signed by Hong Nam-ki, Deputy Prime Minister of Economy and Minister of Strategy and Finance, to avoid disputes for people with multiple households, was in a situation in which the sale was unsuccessful due to the exercise of the right to request the renewal of the contract by the existing tenants. Vice Premier Hong is in a difficult situation where he has to get rid of his current home. It is evaluated as a representative example of the extent to which real estate policy can be twisted in the real field, such as the 2nd Leasing Law (the right to request renewal of the contract, the cheonsei limit system).

According to the Ministry of Finance and Real Estate Industry, on the 14th, Vice Premier Hong signed a contract in early August to sell an apartment in Uiwang, Gyeonggi-do (97.1m² exclusive area) for 920 million won. As pressure mounted on senior multi-household officials in the government due to the increase in house prices, they decided to sell apartments in Uiwang-si, which was generally called “second hometown.” Vice Premier Hong decided on the sale and expressed his affection for Uiwang City on his Facebook page, saying, “I thought I would go back to Uiwang’s house when my office was done.”

Despite Vice Premier Hong’s ‘decision’, the sale procedure remains difficult. This is because the existing tenant has exercised the right to request renewal of the lease and the buyer has not yet completed registration. The tenant initially decided to vacate the house, but when he learned about the new house, it was reported that the rent for the original 570 million won went up to 730 million won and he decided to sit down because there was no sale. Uiwang-si was designated as an overheated area for speculation in real estate countermeasures 6-17, so those who buy an apartment with a home loan must move out within six months. The buyer is said to be unable to receive the mortgage loan because the existing tenant has not vacated the house, and thus the balance is not paid to Vice Premier Hong.

An official from a nearby real estate agency said: “Both the people who buy and sell the house are suffering damage” and said: “These disputes are common and some contractors are considering litigating.” According to the Korea Legal Aid Corporation, after the new lease protection law came into effect on July 31, the number of inquiries about lease disputes in August and September was 17,839, an increase of 61% with compared to the same period last year. To make matters worse, Vice Premier Hong found himself in a situation where he had to empty his apartment in Yeomni-dong, Mapo-gu, Seoul. Vice Premier Hong has been living in an apartment in Yeomni-dong for a 630 million won deposit in his wife’s name since January last year, and the owner requested that the house be emptied, saying that he would move in. The rental price of this apartment has risen by 200 million to 300 million won in two years, and there is no sale, so Vice Premier Hong has yet to find a new rented house. Even if you try to find a new home paying a higher rent than the house you live in, the situation is not easy. Last year, through the real estate countermeasures on 12/16, the government prevented people who own houses with a market price of 900 million won or more from receiving jeonse loans. Since Vice Premier Hong is registered as an apartment owner in Uiwang-si, to find a rented house near Yeomni-dong, Mapo-gu, where he currently resides, he has to raise hundreds of millions of won with his own money without renting it. . As a result, Vice Premier Hong is experiencing the side effects of many real estate policies announced by the current government, such as restrictions on home loans, strengthening of requirements for royal residence and strengthening of tenant rights.

Despite these personal circumstances, Vice Premier Hong said at the meeting of ministers concerned about the inspection of the housing market held at the Seoul Government Complex on the same day, “the effect of the stability of tenants’ housing is showing. existing “.

Sejong = Song Chung-hyun [email protected] / Reporter Jeong Soon-gu