Abstract
It is a very natural phenomenon in the capitalist economic system for the tenant to move to another area because the commercial building owner, the lender, imposed a rent increase. However, if such occurrence causes the movements of tenants in the area to greatly accelerate or the existing commercial area to experience a decline, it will eventually bring negative consequences to the local community, or even the whole country.<BR> The study on the phenomenon of gentrification began while taking into consideration the residential move. As the movement of commercial areas gradually increased, commercial gentrification has recently become a significant issue that the central government or local governments have to resolve.<BR> The phenomenon of gentrification found in the past in Western society is also currently occurring in Korea. Whether it be the central region or local regions, the commercial areas of the regions are displaying the pattern of remaining stagnant for a while with the increase of rent, and then rapidly declining.<BR> To find a solution, the central government tried to protect tenants by inducing the easing of rent increases by making amendments to the Residential Building Lease Protection Act and enacting the Act on Win-Win Growth and Revitalization of Local Commercial Areas. Local governments are also enacting various bylaws to promote cooperation between the parties involved in local economic activities.<BR> However, institutional measures with high degrees of completion against gentrification are yet to be prepared. Gentrification is a phenomenon that always appears as the global concentration of wealth becomes more severe. This is because it is an issue that can be resolved only under the premise that there is a mindset of understanding and concession among the competing agents of economic activity.<BR> The central government and the local governments need to make the following efforts in order to establish reliable measures against gentrification.<BR> First, indicators must be prepared in order to effectively understand the current status of gentrification. Second, based on the information from the indicators, a measure must be prepared in order to induce the lenders and tenants to enter into a win-win agreement and carry it out. Third, detailed goals or standards should be incorporated in order to prevent institutional flaws or conflicts between parties from occurring during the process of creating and managing the so-called win-win cooperation mall established by each of the local governments.<BR> However, the countermeasures against gentrification should never impose sacrifice or concession to only one side of the interested parties. Also, providing severe one-sided benefits through the implementation of the countermeasures should never be accepted. One should always avoid attempting to find a solution to the gentrification phenomenon only within the scope of the relationship between the lender and the tenant. This is because it creates a vicious cycle in which only short-term, short-sighted solutions are pursued.
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