Lee Jae-myung Seeks Public Opinion on Land Transaction Permission System...

[Suwon Ilbo=Reporter Park No-hun] As Gyeonggi Province considers introducing the 'land transaction permission system' to block real estate speculation and stabilize housing prices, opinions are split, and Governor Lee Jae-myung has sought the views of collective wisdom.

According to Gyeonggi Province on the 12th, the province is reviewing plans to implement a land transaction permission system that blocks real estate speculation and permits only housing purchases for actual residence purposes. If the land transaction permission system is implemented, when purchasing real estate, approval must be obtained from the relevant city, county, or district office before signing a contract, and even after obtaining approval, one must move in immediately and reside there for two years.
However, opinions are sharply divided over the justification and effectiveness of the land transaction permission system, and the province is also being cautious. The province plans to make a decision on implementation after conducting a careful review from various perspectives.

Supporters argue that it is the most powerful and necessary measure for stabilizing the real estate market. They contend that public interest should be prioritized, and public regulation of land transactions should be strengthened to address concentrated land ownership and indiscriminate use, prevent irrational land price formation due to speculation, and control unjust unearned income.
In the past, the Constitutional Court also ruled that the land transaction permission system is a restriction rather than a negation of private property, and that transaction restrictions to suppress speculative land transactions are inevitable and do not constitute a substantial infringement of property rights. Supporters predict that the land transaction permission system had a significant effect in suppressing the rampant real estate speculation prevalent in the 1970s and 1980s, and that in Gyeonggi Province, only actual residents will acquire housing, reducing gap investments and showing practical speculation suppression effects.
In particular, there are expectations that if the land transaction permission system is implemented only for foreigners and corporations, it will help block malicious speculation demand within Gyeonggi Province and restore market health.

On the other hand, opponents of the land transaction permission system argue it constitutes an excessive violation of basic rights. They view the land transaction permission system implemented by Gyeonggi Province as in fact a 'housing transaction permission system,' and argue that unlike land as a finite resource, houses are buildings and thus lack justification and grounds for government control.
Consequently, there are arguments that it restricts freedom of residence and relocation, constitutes a fundamental infringement of disposal rights over private property land, violates the Constitution, and is no different from communism or socialism.
There are also concerns that implementation of the land transaction permission system in Gyeonggi Province will further fuel current purchasing sentiment and panic demand, and through a balloon effect, increase speculative demand in areas outside Gyeonggi Province such as Seoul.

Regarding this, Governor Lee posted a message titled 'Land Transaction Permission System, I Want to Hear Your Opinion' on his social media this morning, seeking the views of residents.
Governor Lee stated, "Opinions are sharply divided regarding the 'land transaction permission system' that Gyeonggi Province is reviewing," and after explaining the logic of both supporters and opponents, said, "I seek the valued opinions of you, the sovereign people of Gyeonggi Province."
He added, "Please send various thoughts, from pros and cons on the land transaction permission system to creative ideas and suggestions. Through the power of collective wisdom, we will complete Gyeonggi Province's real estate policy."

The following is the full text of Governor Lee Jae-myung's social media post.

<Land Transaction Permission System, I Want to Hear Your Opinion>

Opinions are sharply divided on the 'land transaction permission system' that Gyeonggi Province is reviewing to block real estate speculation and permit only housing purchases for actual residence purposes.

Supporters argue that it is the most powerful and necessary measure for stabilizing the real estate market.

They contend that public interest should be prioritized, and public regulation of land transactions should be strengthened to address concentrated land ownership and indiscriminate use, prevent irrational land price formation due to speculation, and control unjust unearned income.

Land, which faces supply limitations, has strong public goods characteristics due to its special qualities such as finiteness, immobility, and continuity, and thus must necessarily face broader restrictions compared to other property rights.

The Constitutional Court also previously ruled that the land transaction permission system is a restriction rather than a negation of private property, and that transaction restrictions to suppress speculative land transactions are inevitable and do not constitute a fundamental infringement of property rights.

Experts predict that the land transaction permission system had significant effects in suppressing rampant real estate speculation in the 1970s and 1980s, and that in Gyeonggi Province, only actual residents will acquire housing, reducing gap investments and showing practical speculation suppression effects.

In particular, if the land transaction permission system is implemented only for foreigners and corporations, it is expected to help block malicious speculation demand within Gyeonggi Province and restore market health.

On the other hand, opponents argue it constitutes an excessive violation of basic rights.

They view the land transaction permission system implemented by Gyeonggi Province as a 'housing transaction permission system,' and argue that unlike land as a finite resource, houses are buildings and thus lack justification and grounds for government control.

Furthermore, some opposition parties and conservative economic media argue that it restricts freedom of residence and relocation, constitutes a fundamental infringement of disposal rights over private property land, violates the Constitution of the Republic of Korea, and is no different from communism or socialism.

They also argue that implementation of the land transaction permission system in Gyeonggi Province will lead to heightened publicity, further fueling current purchasing sentiment and panic demand. Additionally, there are concerns that if only Gyeonggi Province implements the land transaction permission system, speculative demand in areas outside Gyeonggi Province such as Seoul will increase through a balloon effect.

I seek the valued opinions of you, the sovereign people of Gyeonggi Province. Please send various thoughts, from pros and cons on the land transaction permission system to creative ideas and suggestions. Through the power of collective wisdom, we will complete Gyeonggi Province's real estate policy.