Yoo Yoon-byeong: "Jeonse to Monthly Rent Conversion Happening Regardless of Policy"

"Jeonse System Naturally Disappears as Income Levels Rise"
"Eventually, an Era Where All Citizens Pay Monthly Rent Will Come"

Yoon Joon-byung, Member of the Democratic Party of Korea / Photo by Yonhap News

[Asia Economy Reporter Lim Juhyung] Yoon Junbyung, a member of the Democratic Party of Korea, argued that concerns about the so-called 'Lease 3 Acts,' which passed the National Assembly plenary session, causing a decrease in jeonse (long-term deposit lease) and an increase in monthly rent, are "not a bad phenomenon."

On the 1st, Yoon posted on his Facebook under the title "Is the conversion from jeonse to monthly rent a bad phenomenon?" stating, "A five-minute speech by a United Future Party lawmaker, suggesting that extending the lease contract period from the existing 2 years by an additional 2 years will lead to jeonse converting to monthly rent, is receiving favorable reviews on the internet," and added, "However, the conversion from jeonse to monthly rent is not a bad phenomenon."

Earlier, on the 30th of last month, United Future Party lawmaker Yoon Heesook pointed out issues with the Lease 3 Acts during a five-minute speech at the National Assembly. At that time, she argued, "Because of the Lease 3 Acts, jeonse will inevitably head toward rapid extinction," and "The moment landlords become afraid to rent out their houses, the market will collapse."

Yoon Hee-sook, a member of the United Future Party, expressed concerns during a 5-minute free speech at the National Assembly plenary session on the 30th of last month, after the Housing Lease Protection Act, which includes the introduction of the rent ceiling system and the right to request contract renewal, was passed. / Photo by Yonhap News

In response to these claims, Yoon Junbyung stated, "Although jeonse is a unique system operated in our country, the jeonse system is destined to naturally disappear as income levels increase," and "A world where everyone lives on monthly rent is approaching, and this is not a bad phenomenon."

Yoon explained, "People who buy houses with bank loans are in the position of monthly tenants paying interest on the loan to the bank as monthly rent," and "Those living under jeonse also pay the landlord monthly rent equivalent to the interest on the jeonse deposit."

He added, "Over time, individuals lose in competition with institutions, so eventually, an era will come when all citizens pay monthly rent to institutions (banks)."

Regarding the existing jeonse system, he explained, "It provides temporary comfort to tenants and rent-seeking opportunities to landlords but requires a large lump sum of money," and "For ordinary people in a low-interest era who cannot prepare a lump sum, monthly rent is an easier method of housing rental than jeonse."

He further pointed out, "Regardless of policy, jeonse is disappearing and converting to monthly rent," and "Those who regret the disappearance of the jeonse system seem to have a consciousness stuck in the past development era."

This content was produced with the assistance of AI translation services.