South Korea's ruling People Power Party on Wednesday sharply criticized government regulations on multi-home owners and rental business operators, saying the policies have contracted the rental housing supply and distorted the real estate market ahead of the peak moving season.
"Cries of 'vanishing listings' are emerging from the capital region's rental market ahead of the March moving season," Choi Bo-yoon, chief spokesperson for the People Power Party, said. "A bizarre phenomenon has occurred where a large apartment complex with 1,800 units has zero monthly rental listings, while jeonse prices have risen continuously for over a year."
"The Lee Jae-myung government has claimed that strengthening regulations alone would stabilize the market, but reality has proven the opposite," she added.
According to the party, jeonse and monthly rental listings in Seoul have fallen to approximately 37,000 units despite the onset of moving season, down 21% from a year ago. Jeonse listings alone have plunged more than 32%.
Choi attributed the shortage to policies that have blocked market flexibility. "By uniformly classifying purchases with existing jeonse tenants as speculation and blocking such transactions, the foundation for new jeonse and monthly rental supply entering the market has been undermined," she said.
She argued that pressure on multi-home owners has ultimately been passed on to tenants. "Excessive pressure on multi-home owners through heavy capital gains taxes and restrictions on loan extensions for rental business operators has either driven landlords out of the market or created side effects where increased burdens are reflected in rental prices," Choi said. "Punitive taxation and financial pressure on landlords only contracts rental supply and creates a structure that ultimately shifts the burden to tenants."
Choi emphasized that the solution lies in supply. "What the market demands now is not additional regulations but a clear and credible supply signal that housing will increase," she said. "The government must immediately conduct a comprehensive review of its rigid regulatory stance and present realistic measures that allow the market to function, including expanding urban housing supply and revitalizing reconstruction projects."