Seoul: The ruling Democratic Party (DP) has introduced a new bill aimed at establishing a state regulator to enhance oversight of the property markets and address unfair trading practices within the real estate industry. This development marks a significant step in the DP's ongoing efforts to regulate the sector and curb speculative activities.
According to Yonhap News Agency, the bill, sponsored by DP's Rep. Kim Hyun-jung, seeks to create a real estate watchdog with the authority to oversee and investigate irregularities in the market. The proposed agency, to be housed under the prime minister's office, would have access to individuals' credit information, financial transaction records, and loan statuses without requiring a court warrant. However, the exercise of this authority would be subject to deliberation by a separate supervisory council within the agency.
The intent behind the bill, as stated by Rep. Kim, is to ensure greater market transparency and safeguard the public's constitutional right to housing. Additionally, Kim has put forth a separate bill to grant special judicial police powers to officials within the supervisory body to aid in investigations.
During a party floor meeting, DP floor leader Han Byung-do underscored the importance of the proposed agency in combating "destructive" real estate speculation. Han emphasized that the service would function similarly to the Financial Supervisory Service, ensuring that illegal speculators are kept out of the market through constant monitoring and targeted crackdowns.
The proposal has faced criticism from the main opposition, the People Power Party (PPP), which argues that the new regulator would possess excessive authority and infringe on privacy rights. PPP deputy floor leader Yoo Sang-bum voiced concerns about the agency becoming a "mega-regional" power, potentially disrupting the balance among existing authorities like the prosecution, police, National Tax Service, and financial regulators. Yoo advocated for addressing housing market issues through supply, tax, finance, and rental policies rather than creating a new investigative body.
The Lee Jae Myung administration has been actively working to curb real estate speculation, including plans to remove tax exemptions for owners of multiple homes in an effort to stabilize the heated property market in the Seoul metropolitan area.