This Week's Jeonse Measures to Be Announced... "No Introduction of Standard Rent"

Government Announces Additional Jeonse Measures This Week
Deputy Prime Minister Hong: "No Consideration Given to Expanding Standard Rent or Jeonse Rent Cap"

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] As the government plans to announce additional measures for the Jeonse market this week, it has decided not to include anti-market policies such as the Standard Rent System and the Jeonse and Monthly Rent Cap System.

According to the government on the 25th, additional real estate measures to stabilize the Jeonse market will be announced this week.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated at the National Assembly Planning and Finance Committee’s audit on the 22nd, "We are currently discussing among related ministries whether there are additional measures to stabilize the Jeonse market." However, he made it clear that the existing policy direction will not be changed.

Deputy Prime Minister Hong said, "We have reviewed Jeonse measures over the past 10 years, but there are not many sharp short-term measures," adding, "It is important to consistently implement the policies announced so far rather than creating additional measures unconditionally."

Some expect that measures to increase supply volume, the biggest cause of the Jeonse shortage, will be introduced. However, since the supply volume in the metropolitan area has already been increased through existing real estate measures, it seems difficult to find additional measures.

In this regard, the government drew a line, stating that policies such as expanding the Standard Rent or the Jeonse and Monthly Rent Cap System have not been considered. Deputy Prime Minister Hong said that both the Standard Rent and the Jeonse and Monthly Rent Cap System "have never been reviewed."

The Standard Rent is a kind of Jeonse and monthly rent guideline where local governments set a standard housing unit annually and present rent criteria.

Meanwhile, the ruling party has already proposed the 'Housing Lease Protection Act Amendment.' The bill, primarily proposed by Yoon Ho-jung of the Democratic Party of Korea in July, includes the Standard Rent System, which allows the mayor or governor to set the standard rent for cities, counties, and districts, announce it annually, and restrict the deposit and monthly rent increases within a certain upper limit.