Reasons for Proposal
The recent findings that some of the employees of Korea Land and Housing Corporation had used undisclosed information to purchase land in a prearranged area for the housing development project have evoked public outcry and indignation, and thus, many argue that it is necessary to strengthen the management and supervision of real estate speculators who exploit the real estate market.
However, since the authority to manage and supervise the real estate market is distributed among the Ministry of Land, Infrastructure and Transport, the National Police Agency, local governments, and the National Tax Service, and the comprehensive management of information on real estate transactions is not in place, no timely response has been made to such real estate speculation.
Therefore, experts argue that in order to establish a sound real estate transaction order and to create a fair and transparent real estate market, it is vital to establish an organization fully dedicated to managing and investigating real estate transaction information and engage in the management affairs of the real estate market. In addition, given the nature of the duties of organizations that require to access and utilize sensitive personal information, and the necessity of cooperation and flexible organizational management through seamless workforce sharing among relevant ministries, some point out that it is desirable to establish a central administrative agency under the Prime Minister.
Therefore, the Act aims to lay the legal grounds to establish the Real Estate Transaction Supervision Committee as a central administrative agency under the Prime Minister, thereby contributing to housing stability of the people.
Details
A. This Act aims to establish the Real Estate Transaction Supervision Committee to restore the sound real estate transaction order and create a fair and transparent real estate market, thus contributing to the housing stability of the people (Article 1).
B. Organize the Real Estate Transaction Supervision Committee under the Prime Minister to perform affairs in connection with the management and investigation of the real estate market and transaction information (Article 3).
C. Organize the Committee to have 9 members including the chairperson and vice-chairperson, the Vice Minister of Land, Infrastructure and Transport, the head of the Financial Supervisory Service, the head of the National Tax Service, and one real estate expert recommended by the chairperson whose term of office is 3 years with the possibility of being consecutively renewed only once (Articles 4 and 6).
D. Enable the Real Estate Transaction Supervision Committee to manage, supervise, and monitor the real estate market and manage, investigate, and share real estate transaction information, and establish a secretariat to handle the affairs of the Committee (Articles 11 and 14).
E. In order to establish a transparent and sound real estate transaction order, allow the Real Estate Transaction Supervision Committee to install and operate the Real Estate Market Distortion Report Center (Article 16).
F. Grant the chairperson the authority to request data prescribed by Presidential Decree, such as data on national and local taxes, data on income and property as well as financial information and credit information, to the head of the relevant administrative agency or financial institution, etc. (Article 17).
G. If there is a probable cause to believe that a crime is suspected to have been committed in relation to real estate as a result of the investigation on real estate transactions, grant the chairperson the duty to file a report to the competent investigation agency and the authority to request an investigation by the investigation agency if the suspected crime is deemed reasonably probable during the investigation (Article 18).
