Minister Park Sang-woo: "The Housing Rental Market Must Shift from Jeonse and Wolse to Corporate Long-term Leasing"

15th 'Meeting for the Introduction of Corporate Long-term Lease'

Park Sang-woo, Minister of Land, Infrastructure and Transport, stated that corporate long-term rental housing should be revitalized. This is because the private monthly rent system increases housing instability due to issues such as jeonse fraud and reverse jeonse.

On the 15th, at a meeting held at the Taeheung Building in Seoul titled 'Meeting for the Introduction of Corporate Long-term Rental Housing,' Minister Park emphasized that the paradigm of the housing rental market must shift from private monthly rent to corporate long-term rental housing.

Park Sang-woo, Minister of Land, Infrastructure and Transport, speaking at the "Meeting for the Introduction of Corporate Long-term Lease" held at Taeheung Building in Seoul on the 15th.
[Photo by Ministry of Land, Infrastructure and Transport]

Minister Park pointed out the problems of the monthly rent system, saying, "More than 60% of South Korea's housing rental market consists of non-institutional private monthly rent contracts, exposing tenants to housing instability." He added, "Unlike public rental and private registered rental housing, general monthly rent contracts are exposed to the risk of voluntary eviction within 2 to 4 years, and recently, housing instability has been exacerbated by reverse jeonse and jeonse fraud." He further stated, "The jeonse system induces gap speculation, causing periodic instability in the real estate market."

He then emphasized the activation of corporate rental housing as an alternative. He said, "If corporate long-term rental housing is revitalized, citizens will be provided with a new housing choice where they can live stably by paying reasonable rent while receiving high-quality housing and superior residential services."

To this end, he also announced plans to ease regulations. Minister Park said, "We will relax rent regulations to allow rent adjustments reflecting market prices when tenants change during the mandatory rental period." He continued, "We will rationally reform financial and tax support to suit the characteristics of long-term rental operations to reduce the burden on corporate rental operators."