Both leading presidential candidates, Minjoo Party's Moon Jae-in and People's Party Ahn Cheol-soo, have offered that they would introduce schemes to strengthen the rights of tenants vis-à-vis landlords including ceilings on monthly and upfront deposit rental contracts and the tenant's rights to ask contract renewal.
Moon of the Minjoo Party recently promised that he would push for a scheme to allow tenants to demand renewal of one-year rental contracts once or twice while introducing a rent control by which landlords can raise rental price up to a certain percentage every year. In addition, he pledged that the government will give a tax break on rental income below a certain level while giving subsidies to those homeowners who initiate renovation on their rental properties.
In his book of pledges published on April 24, Ahn also said he would introduce schemes to protect tenants, including the lengthening of rental contracts up to four years from current two years while limiting the annual growth rate of rental price to 5 percent.
Hong Joon-pyo, contender for the Korea Liberal Party, has not made any pledges in relation to tenant protection. He is of the opinion that such matters must be determined by market mechanism and the government shouldn't meddle into them.
Shim Kyo-un, professor of real estate at Konkuk University, said, "The presidential candidates' pledges to protect tenants may backfire and rather increase the rental price in the short run and reduce the number of properties on the market in the long run."