"Aftermath of Mortgage Loan Regulations Intensifies Instability in Jeonse and Monthly Rental Markets"
"It's Time to Stop Self-Congratulation and Introduce Policies Focused on Ordinary People"
On July 6, Joo strongly criticized the government's decision, announced on June 27, to limit mortgage loans to 600 million won in the Seoul metropolitan area and other regulated regions, saying it could worsen housing insecurity for ordinary people. He made these remarks on his Facebook page.
He warned that this policy could lead to a sharp decline in jeonse listings and accelerate the shift to monthly rentals, stating, "The side effects of the 6·27 loan regulation?if jeonse is converted to monthly rent, only ordinary people will suffer a fatal blow." He further commented, "This is a d?j? vu of the failed real estate policies under former President Moon Jaein, which focused on suppressing demand."
Joo also criticized President Lee Jaemyung for praising a senior official at the Financial Services Commission, questioning, "What is so commendable about the 6·27 loan regulation that only allows the wealthy with cash to buy homes?" He added, "The real problems start now."
He emphasized that the loan regulations are blocking genuine homebuyers from entering the market and forcing demand into the rental sector. "A surge in demand for jeonse and monthly rentals is now inevitable. There are concerns about the worst-case 'balloon effect,' with a mass conversion from jeonse to monthly rent," he said. "Genuine buyers are being pushed into the rental market because they can't purchase homes, and even those who managed to buy a home now have to evict tenants by June."
Joo also mentioned the decline in jeonse listings. He explained, "A supply cliff for jeonse and monthly rentals has begun. There are only about 54,000 jeonse apartment listings in the Seoul metropolitan area. That's a decrease of more than 13,000 in just June."
He argued that the policy direction itself is out of touch with market realities. "When demand surges, jeonse prices will rise, and more properties will be converted to monthly rentals," he said, criticizing, "The 6·27 regulation, which completely missed the mark, has only fueled the fire."
He also pointed out that household loan regulations could create a double burden for citizens. "If jeonse is converted to monthly rent, it will be difficult for ordinary people to endure," he argued. "Because the government suddenly forced household loans to be reduced by as much as 50%, people are now in a situation where they have to both repay their debts and pay monthly rent."
Joo issued a further warning that the jeonse and monthly rental markets could fall into chaos ahead of the autumn moving season, when demand typically surges. "There are growing concerns about a crisis in the jeonse and monthly rental markets during the autumn moving season," he said. "This is not the time for self-congratulation; even now, policy should be shifted to focus on ordinary people, not just the wealthy with cash."
Previously, at the end of last month, the government introduced a regulation limiting mortgage loans to 600 million won in the Seoul metropolitan area and other regulated regions. On July 4, President Lee Jaemyung personally praised Kwon Daeyoung, Secretary General of the Financial Services Commission who planned the policy, during the 'Chungcheong Town Hall Meeting,' saying, "Well done."
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