South Korea’s ruling party proposed a new bill to establish a centralized real estate agency. This body directly targets illegal and speculative investments which drive market overheating. Consequently, the Democratic Party of Korea announced the legislation during a Tuesday press briefing.
Representative Kang Jun-hyeon framed the urgent need for this regulatory action immediately. He stated South Korea bears the stigma of a “real estate republic.” Moreover, over seventy percent of household assets remain tied directly to property values.
Therefore, the proposed Real Estate Supervisory Service would function as a powerful control tower. It would effectively consolidate oversight currently scattered across multiple ministries. Furthermore, the agency would operate directly under the Prime Minister’s Office for maximum authority.
Specifically, the agency’s mandate includes conducting direct investigations into suspected violations. Additionally, its employees would receive special judicial police status. As a result, they could investigate breaches of real estate laws without any intermediary bodies.
The agency could also request transaction records from financial institutions directly. Under the bill, financial firms must provide this data without a warrant. This requirement specifically includes details on bank accounts for property deals.
Democratic Party spokesperson Kim Hyun-jung emphasized the goal of eliminating monitoring blind spots. He stated the principle that illicit real estate gains cannot be tolerated. Accordingly, the party aims to firmly establish this through the powerful new agency.
However, the main opposition People Power Party strongly criticized the proposed legislation. Representative Choi Eun-seok argued sufficient institutional mechanisms already exist. Conversely, he warned the bill represents excessive state surveillance over personal data.
The opposition further contends the approach treats the general public as potential criminals. It argues that broadly inspecting sensitive information constitutes surveillance, not enforcement. Thus, this criticism sets the stage for a heated legislative debate ahead.
In response, the Democratic Party defended the bill’s cross-verification powers as essential. Comparing contract, tax, and financial data would strengthen responses to crimes. However, the party also noted that data obtained without a warrant has strict usage limits.
For instance, once a case becomes a formal criminal probe, that specific data becomes inadmissible. The party aims to pass the legislation and subsequently launch the agency in November. An initial workforce of approximately one hundred employees is currently planned.
This legislative push aligns closely with President Lee Jae Myung’s broader housing policy agenda. He recently called real estate a malignant problem blocking social progress. Simultaneously, his administration is preparing several other measures to cool the market.
Another key measure involves reinstating heavier capital gains taxes very soon. Authorities initially introduced this tax on multiple homeowners back in 2021. However, its implementation faced delays over concerns about freezing transactions.
Ultimately, the proposed agency represents a significant escalation in the regulatory approach. It specifically seeks to deter speculative investments through enhanced scrutiny and consequences. Nevertheless, its success depends entirely on effective implementation and legal precision.
The bill’s passage remains uncertain given the opposition’s strong stated objections. Consequently, the coming months will involve intense negotiation and potential revisions. The final outcome will significantly impact South Korea’s housing market dynamics.
In conclusion, the government is attempting to reshape long-standing investment behaviors directly. Reducing speculative investments remains central to achieving broader price stability. This initiative will thoroughly test the balance between market regulation and personal privacy.
