Seoul: The ruling Democratic Party (DP) is set to propose a bill Tuesday to establish a state regulator that would supervise the property markets and boost oversight into unfair trading in the real estate industry. The bill, sponsored by Rep. Kim Hyun-jung of the DP, calls for the creation of the real estate watchdog that would oversee and, if necessary, conduct investigations into irregularities that arise in the real estate market.
According to Yonhap News Agency, the agency is to be set up under the prime minister's office and will be granted the authority to access credit information of individuals, including their financial transaction records and loan status, without a court warrant. However, it will be required to undergo deliberation by a separate supervisory council within the agency to exercise that authority.
Kim stated that the bill aims to ensure market transparency and "realize the constitutional value of protecting the public's right to housing." The lawmaker is also set to propose a separate bill that will grant special judicial police powers to officials at the supervisory body to facilitate investigations.
During the party's floor meeting, DP floor leader Han Byung-do vowed to root out what he described as "destructive" real estate speculation through the proposed agency. He emphasized the need for constant monitoring and precise crackdowns to prevent illegal speculators from entering the market, likening the service to the Financial Supervisory Service for real estate.
The main opposition People Power Party (PPP) criticized the DP's move, arguing that the regulator will wield excessive authority and infringe upon people's privacy. PPP deputy floor leader Yoo Sang-bum expressed concerns about the regulator being a "mega-regional" power with authority for both supervision and direct investigation, which he believes undermines the system of checks and balances among various authorities.
Yoo stressed that the housing market's issues should be addressed through supply, tax, finance, and rental policies rather than by creating an investigative body to crack down on real estate activities. The Lee Jae Myung administration has been seeking to rein in real estate speculation, with the government set to end tax exemptions for owners of multiple homes to cool the overheated property market in the Seoul metropolitan area.