South Korea's unique jeonse rental system is facing a crisis as deposits and rents surge in Seoul, making homeownership increasingly difficult for ordinary households. This instability is linked to tax policies affecting multi-home owners.
Gimje City in North Jeolla Province announced on the 13th that it will support interest on Jeonse (lump-sum deposit) loans for young and newlywed couples in the first half of the year. The support, up to 1 million won for six months, is for residents aged 18-39 and newlyweds within seven years of marriage, with incomes below 180% of the median income.
HUG's jeonse guarantee claims fell 53.1% YoY to 269.3 billion won in Jan-Apr 2024. Debt recovery exceeded claims for the first time, reaching 156%, leading to a net profit of 1.57 trillion won in 2023.
Busan's apartment sale prices remained stable this week, showing no change after a period of fluctuations. However, jeonse (lump-sum deposit) prices continued their 22-month upward trend, increasing by 0.08%. Experts predict similar trends until the fall moving season, with potential for further increases in desirable areas.
