Liberalism constitution based on liberalism and individualism was made according to early capitalism ideology which nation doesn’t intervene individual economic activities and inhere to noninterference policy. However capitalism advanced so highly t...
Liberalism constitution based on liberalism and individualism was made according to early capitalism ideology which nation doesn’t intervene individual economic activities and inhere to noninterference policy. However capitalism advanced so highly that made the gulf between the poor and the rich. Therefore most nations revised the constitution for establishing the fair economic order. Korea’s constitution has the regulations which preamble and article 119, etc.
We have various real estate speculation restriction system. For example, Land Transaction Permit System, Sale-price Ceiling System on the Apartment building, System of Overheated Speculation Zone, Housing Transaction Report System, System of Restitution of Development Gain, System of Restitution of Reconstruction Gain, Housing Speculation System, Capital Gain Tax, Loan to Value Ratio, Debt to Income.
Among of them I’m going to review legally on the sale-price ceiling system of the apartment building and land transaction system. The sale-price ceiling system of the apartment building has been controversial over the violation of constitution from the committee of construction and transportation of congress and the academic world since the adoption of 2005. Also in spite of major view of Constitutional Court of Korea, the Land Transaction Permit System has been controversial over the violation of constitution from minor view of Constitutional Court of Korea and the academic world.
The sale-price ceiling system of the apartment building in relation to Property Rights, Freedom of Career Choices and Rights to Equality, because construction companies can not be received for cost of investment at apartment construction, it can be violated for no less restrictive alternatives of the principle of proportionality. It is desirable that the sale-price ceiling system of the apartment building will apply to below 85㎡ apartments which are supplied in the public land for housing.
The Land Transaction Permit System is considered a rational system, thinking stronger restriction on the land and Korea’s unique land speculation phenomenon. But It is needed to adopt the compulsory buying-claim right and the private construction companies must be included the buying-organ to be effective.