Yoon Joon-byung: "Conversion from Jeonse to Monthly Rent Is Not a Bad Phenomenon"…Refuting Yoon Hee-sook's Claim

[Image source=Yonhap News]

[Asia Economy Reporter Kang Nahum] Yoon Jun-byeong, a member of the Democratic Party of Korea, rebutted Rep. Yoon Hee-sook of the United Future Party's claim that the "Three Lease Laws" would accelerate the conversion of jeonse (long-term lease) to monthly rent, stating that "the conversion of jeonse to monthly rent is not a bad phenomenon."

On the 1st, Rep. Yoon said on his Facebook, "Although jeonse is a unique system operating in our country, it is a system destined to naturally disappear as income levels increase."

He continued, "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 explained, "Those living under jeonse also pay the landlord monthly rent equivalent to the interest on the jeonse deposit."

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

Regarding the jeonse system, Rep. Yoon emphasized, "It provides temporary convenience to tenants and rent-seeking opportunities to landlords but requires a large lump sum. For ordinary people in a low-interest era who cannot prepare a large sum, monthly rent is an easier method of housing lease than jeonse. Regardless of policy, it is normal for jeonse to disappear and convert to monthly rent."

This statement by Rep. Yoon was a rebuttal to Rep. Yoon Hee-sook's criticism of the government's and ruling party's passage of the Housing Lease Protection Act amendment during her five-minute free speech at the plenary session on the 30th. Rep. Yoon Hee-sook began her speech by saying, "I am a tenant," and stated, "Looking at the passed bill, I thought, 'In four years, I will inevitably have to move into monthly rent,'" and argued, "The moment landlords become afraid to rent out their houses, the market collapses."

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