[단독] Kim Sang-jo, head of Naero Nambul, drastically raises the total rent before the lease law enforcement

An apartment in Cheongdam-dong, Seoul, which was given to Jeonse by Kim Sang-jo, the head of the Blue House Policy Office. [유준호 기자]

picture explanationAn apartment in Cheongdam-dong, Seoul, which was given to Jeonse by Kim Sang-jo, the head of the Blue House Policy Office. [유준호 기자]

It was confirmed that Kim Sang-jo, the head of the Blue House Policy Office, renewed his own Gangnam apartment world drug on July 29 last year, two days before the enforcement of the 3rd Lease Act, and significantly increased the deposit for jeonse.

According to the status of property reports of high-ranking public officials in 2021 published in the electronic gazette on the 28th, Kim reported that the second rental deposit of Hanshin Opera House, which is jointly owned by him and his spouse, in Cheongdam-dong, Gangnam-gu, Seoul, increased from 850 million won to 970 million won. did. The rent increase rate was 14.1%, significantly exceeding the 5% upper limit set by the cheonsei limit system. The contract date for the jeonse confirmed in the actual transaction price system of the Ministry of Land, Infrastructure and Transport is July 29 last year. The Housing Lease Protection Act, which contains the right to apply for renewal of contracts and the whole-month limit system, came into force immediately after passing the National Assembly on July 30 of last year and the State Council meeting on the following day, the 31st.

As a result of the Maeil Economic Daily report, it was confirmed that Kim’s global medicine was not a new contract but renewed the contract with the existing tenant. It signed a new contract so that tenants would pay all the 14% increase in jeon tax two days before the enforcement of the lease law, which was subject to a 5% upper limit on the rent increase rate. There are also suspicions that the timing of the contract was advanced before the expiration of the jeonse period to avoid the upper limit. I contacted him several times to hear Mr. Kim’s specific position on this, but he did not reach him.

In July of last year, the Blue House, the government, and the ruling Democratic Party enforced the three-legal lease treatment at a speed reminiscent of military operations. Despite fierce opposition from the market and experts, it passed the 3rd lease law without even going through the so-called legal review, limiting the increase in rent for drugs worldwide to 5%. The chaos in the rental market was obvious, but the party government pushed ahead with the bill. However, Kim, who plays the role of a policy control tower at the Blue House, signed a contract to significantly increase the rent of his own house just before the bill was processed. It is not illegal two days before the enforcement of the law, but it seems difficult to avoid moral and emotional criticism of Kim, who is in a position to lead the policy.

Other landlords, like Mr. Kim, raised the jeonse before the enforcement of the law, and the jeonse price skyrocketed after the new lease law was enforced, and the jeonse was dried up and the tenant rolled their feet. According to KB Real Estate Liveon, the average jeonse price for apartments nationwide, which was 255.54 million won in July last year, rose 17% to 301 million won in February this year. The average jeonse price for apartments in Seoul rose by 100 million won from 499.22 million won to 598.29 million won over the same period. Even after Mr. Kim said, “If it’s uncomfortable for the people, please wait a bit” (as of the end of October), the average price for apartment rentals across the country rose by 28.45 million won, and the average price for apartments in Seoul rose by 62.2 million won.

Since June 2019, Kim has been leading the government’s various real estate policies by playing the role of the’policy control tower’ at the Blue House. In June of last year, in celebration of the 1st anniversary of his inauguration, he announced the position that “the most important principle in real estate measures is to protect end users.” In August, immediately after the lease law enforcement, “There is no gap between the Blue House and the real estate public sentiment, and the cheonsei market is due to system changes.” He also diagnosed that he is in a state of transitional instability.” Members of the Democratic Party, including Congressman Jin Seong-jun, said, “We should introduce a price ceiling system for new global drugs to limit the amount of increase.”

One real estate expert criticized, “According to market logic, it is a natural response that Mr. Kim raised the jeon tax by 14.1%. The problem is that he did this by taking the lead while preventing the public from raising the jeon tax.”

Kim is not the only high-ranking public official who has significantly increased the jeon tax. As a result of analyzing the property disclosures of 759 central government officials, including high-ranking public officials, university presidents, and heads of public service-related organizations belonging to the Maeil Business Department, a total of 34 people increased the rent for their apartments and buildings last year. There were also five people who set up an unprecedented charter or bought a new building and gave it to the charter. The total amount of the jeonse of these 39 people was 16.144.95 million won, an increase of 3.84.86 million won (30.62%) from the total amount of 12.36 billion won in 2019. Excluding the five newly set up jeonse, the total amount of jeonse for 34 people last year was 15,899.5 million won, up 22.09% from 2019.

Only 7 out of 39 high-ranking public officials increased their jeon tax within 5%. It is estimated that most of the public officials made a worldwide drug before the third lease law came into effect in July of last year. In particular, a number of increases in deposits for high-ranking public officials who have apartments in Seoul have been confirmed. Daegu District Prosecutor’s Office, Cho Jae-yeon, raised the deposit for the charter of Trapalace, Seocho-gu, Seoul, which was 500 million won, by 72.7% to 950 million won, and Gwang-jun Jeon, Deputy General Manager of the Audit Office, also increased the deposit by 40% from 1 billion won to 1.4 billion won. . Experts pointed out that the government’s excessive real estate regulation policy has put high-ranking officials in a situation of’self-sufficiency’. Professor Kwon Dae-jung of the Department of Real Estate at Myongji University said, “If we only put up a policy of one-sided regulation, the situation where policy makers will eventually take their footsteps will continue to unfold.”

[김동은 기자 / 유준호 기자]
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