Concerns Over 'Jeonse Crisis'... Seoul and People in Their 30s Shut Down 문

In One Month, President Moon's Core Support Shaken... Real Estate Anxiety is the Cause, Public Opinion Shifts Following the Impact of the Three Lease Laws

[Asia Economy Reporter Ryu Jeong-min] Confusion surrounding real estate policies has emerged as a variable factor continuously shaking President Moon Jae-in's momentum in state affairs.

In addition to the immediate task of 'stabilizing housing prices,' there is a need to alleviate concerns about the 'jeonse crisis.' The reason the Blue House must take this seriously is that, regionally, Seoul, and generationally, people in their 30s, are turning their backs on President Moon.

According to Gallup Korea on the 3rd, a public opinion survey was conducted from June 28 to 30 targeting 1,001 people nationwide aged 18 and older. The approval rating for President Moon's performance in Seoul was 38%, while the disapproval rating reached 51%.

On the 30th, a widespread surge in jeonse prices and a shortage of jeonse properties have been observed, especially in Seoul, due to real estate regulations such as the Three Lease Laws. The photo shows the city center view from the 63 Building in Yeouido, Seoul. Photo by Mun Ho-nam munonam@

Compared to the survey a month ago, a 'reversal of figures' phenomenon appeared. When Gallup Korea conducted a survey from June 23 to 25 targeting 1,001 people nationwide aged 18 and older for the 4th week of June, the approval rating for President Moon's performance in Seoul was 51%, and the disapproval rating was 38%. For detailed information on Gallup Korea's public opinion surveys, refer to the Central Election Poll Deliberation Commission website.

The sharp decline in President Moon's approval rating in Seoul over the past month is not unrelated to real estate issues. In the 5th week of July survey, when asked about reasons for disapproving of President Moon's performance, 30% cited real estate policies, overwhelmingly the highest.

The sensitivity of real estate issues stems from the fact that landlords and tenants, as well as generations and regions, have differing interests, making it difficult to find a definitive solution. Whatever solution the government proposes, dissatisfaction is inevitable, which becomes a burden on state governance.

The right to request contract renewal and the rent ceiling system for monthly and yearly rents, aimed at protecting tenants, passed the temporary Cabinet meeting on the 31st and went into effect immediately. There are forecasts that a surge in jeonse prices and a shortage of jeonse will widely occur, especially in Seoul. The photo shows a real estate agency in Gangseo-gu, Seoul on that day. Photo by Mun Ho-nam munonam@

In fact, the downward trend in President Moon's approval rating among people in their 30s is a significant point. The approval rating for President Moon's performance among those in their 30s was 57% in the 4th week of June survey but dropped to 48% in the 5th week of July survey. The disapproval rating reached 44%, indicating a possible reversal between approval and disapproval ratings.

Although the ruling party led the passage of the three lease laws in the National Assembly, it has encountered a 'scratching a sore' situation. The jeonse crisis has emerged as the focal point of controversy, and some landlords have exploited loopholes in the law to undermine the amended three lease laws. On the 3rd, Democratic Party lawmaker Shin Dong-geun said in an interview with YTN Radio's 'Starting Morning,' "There is currently no way to control rent increases for those newly seeking jeonse or monthly rent."

Despite enacting legislation for tenants and announcing real estate measures, the ruling party is troubled by the lack of suitable additional cards to play. This is why attention is focused on the effects of the three lease laws passed by the National Assembly. Um Kyung-young, director of the Era Spirit Research Institute, diagnosed, "The market's reaction to the three lease laws is a matter of utmost interest and will be a gauge of the success or failure of the Moon Jae-in administration's real estate policies."