The Constitutional Court on Wednesday upheld the constitutionality of a law enacted in 2020 to better protect tenants in lease contracts amid the then runaway rents and housing prices.

Led by the then ruling Democratic Party, the National Assembly passed the revision of the Housing Lease Protection Act, allowing tenants the right to demand an additional two-year extension of their basic two-year housing leases.

Under the revision, the maximum rent increase was also capped at 5 percent for contract renewals.

The legislation was enacted amid a growing need to protect tenants due to runaway housing prices at that time. But more than 10 petitions have since been filed against the legislation, claiming it infringes upon the property rights of landlords.

The Constitutional Court on Wednesday unanimously ruled to reject the petitions, concluding that the legislation is just in its purpose and methodology to ensure stable housing for tenants.

“Stable housing is an essential element needed to lead a life as a hu
man, and a nation has duties to protect tenants who are socially underprivileged and to strive to increase social welfare,” the court said.

The additional two-year contract, guaranteed by the legislation, does not significantly restrain landlords’ freedom and property rights, because it’s a relatively short period of time, the court added.

Source: Yonhap News Agency