Seong Chang-yeop, president of the Korea Housing Rental Association, warned that if the current government's regulations on rental businesses continue, the rental market could face unprecedented difficulties in the next two to three years. He argued that pressuring landlords to sell properties in the sales market could lead to a decrease in existing rental housing, resulting in instability in the rental market.
In an interview with Aju Economy on August 21, Seong stated, "If the policy direction, such as the recent tax reform plan, continues, the rental market will face unprecedented challenges in two to three years," adding, "We may encounter a situation where existing rental housing stock diminishes."
He expressed concern that as the government encourages multi-homeowners to sell their properties, registered rental housing may be sold or removed from the market, and some may be converted into owner-occupied homes, reducing the available rental housing.
Seong emphasized, "The instability in the rental market is bound to accelerate in the future," and noted, "Someone must have rental homes available." He argued that rental businesses should not be viewed merely as subjects of regulation but as essential contributors to the supply of private rental housing.
He identified the need to reconsider the reduction or elimination of tax benefits for registered rental housing in designated adjustment areas as a priority. He also pointed out the need to address the increased burden of comprehensive real estate tax on multi-homeowners and the reduction of deductions.
The Korea Housing Rental Association was established in 2020, a year when significant changes were made to the rental business system. At that time, the government abolished short-term private rentals and long-term general purchase rental types through the 7-10 measures, and existing registered housing was restructured to be automatically removed from registration once the mandatory rental period ended. The introduction of the right to request contract renewal and the rental price ceiling also strengthened tenant rights during this period.
Seong, who was a registered rental business operator at the time, felt the need for an organization to convey landlords' perspectives amid these policy changes. He explained, "There was no organization for landlords to gather and discuss these issues," and he founded the association at the end of 2020 with the belief that a platform was needed to consolidate and communicate their voices.
Seong stressed that even in a situation where tenant rights and housing stability are emphasized, the fact that landlords are stakeholders in the rental market must also be considered. He warned that if the system changes retroactively for operators who have complied with government policies, including registration and mandatory rental periods, it could undermine trust in the policies.
He remarked, "Looking at the current regulations, it seems like we are repeating 2020," and pointed out that the issues of regulating multi-homeowners and maintaining rental housing suppliers must be addressed together.
* This article has been translated by AI.
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