The Democratic Party of Korea was said on the 11th to be set to push for the National Assembly's passage of the amendments to the Act on Report on Real Estate Transaction, etc., and the Urban and Residential Environment Maintenance Act. In political circles, some said, "As soon as the local elections ended, the ruling party effectively moved to seize the lead on real estate policy with bills that would neutralize the 'Seoul mayor's authority over real estate development and regulation.'"
The amendment to the Real Estate Transaction Report Act was introduced last September by Chun Joon-ho, a senior deputy floor leader for operations in the Democratic Party. Currently, within a single city or province, only mayors and provincial governors have the authority to designate land transaction permit zones, and the amendment would give that authority to the Minister of Land, Infrastructure and Transport (MOLIT) as well.
Designating a land transaction permit zone is a powerful real estate regulatory authority. In the area, only purchases for actual residence are allowed for two years, and gap investment is prohibited. A person in the real estate industry said, "If the Minister also obtains the authority to designate land transaction permit zones, the government and the ruling party would, in effect, be able to bypass opposition-party mayors and provincial governors and tighten real estate regulations."
The amendment to the Urban and Residential Environment Maintenance Act was introduced in January by Democratic Party lawmaker An Tae-jun. It would broaden the authority to designate maintenance zones where redevelopment and reconstruction are permitted from the current "mayors and provincial governors" to "mayors, provincial governors, etc." After the amendment passes the National Assembly, the enforcement decree could include the Minister of Land, Infrastructure and Transport (MOLIT) among the "mayors, provincial governors, etc."
If that happens, even if a mayor or provincial governor designates redevelopment or reconstruction areas, the Minister would be able to designate them differently. In a review report on the amendment to the Urban and Residential Environment Maintenance Act, the Ministry of Land, Infrastructure and Transport (MOLIT) said, "If the Minister and local government heads exercise overlapping authority to designate maintenance zones, administrative confusion could actually delay projects." The Seoul Metropolitan Government also said, "Because it is based on the incorrect claim that the authority to designate maintenance zones being concentrated in mayors and provincial governors creates bottlenecks, there is no practical benefit to the legislation."
With President Lee Jae-myung mentioning "stabilizing the real estate market" at a press conference on May 8 marking his first year in office, the Democratic Party is also expected to accelerate real estate-related legislative amendments. A floor official in the Democratic Party said, "Given the purpose behind the party's introduction of the amendments and the government's intent, our position is that the bills should be handled swiftly."
By contrast, Seoul Mayor Oh Se-hoon, elected in the June 3 local elections, holds that housing supply should be increased through redevelopment and reconstruction while real estate regulations should be eased. In political circles, some said, "With real estate issues concentrated in Seoul, the government and ruling party's push for regulatory legislation on real estate can be interpreted as effectively targeting Seoul Mayor Oh Se-hoon."