Reasons for Proposal and Major Provisions

Article 64 of the current Housing Act prohibits the resale of housing constructed and supplied in a high speculation area or area subject to adjustment, housing subject to the sales price ceiling system, housing constructed and supplied in a non-public housing site, and housing constructed and supplied under a public redevelopment project, and the resale of a selected resident’s right, entitlement, status, etc. to reside in the housing. It stipulates that non-compliance is punishable by imprisonment with labor for up to three years and a fine of up to 30 million won.

However, although Article 65 of the same Act prescribes penalties against illegal subscriptions and other disturbances to the supply order, the Act does not contain separate provisions on contract cancellation in the event of a violation committed during the period for restrictions on resale. Rather, it allows a project operator to acquire the status of being selected as a resident in the event of a resale in violation of the period for restrictions on resale. This has resulted in several instances where the intent of legislating the period for restrictions on resale has been disregarded.

Accordingly, the Amendment newly inserts provisions to invalidate the status of being selected as a resident or nullifying a housing supply contract in the event of a resale in violation of the period for restrictions on resale, thereby aiming to establish a healthy housing supply market and contribute to the residential stability of the people (Article 64).