Hong Nam-ki "Monthly Rent Conversion Rate Lowered from 4% to 2.5%... Prompt Review of Statistical Improvements" (Comprehensive)

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is delivering opening remarks at the '3rd Real Estate Market Inspection Meeting of Related Ministers' held on the 19th at the Government Seoul Office in Jongno-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Kwangho Lee] The government will lower the current monthly rent (jeonse-to-wolse) conversion rate of 4% to 2.5%.

On the 19th, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, presided over the '3rd Real Estate Market Inspection Meeting of Related Ministers' at the Government Seoul Office and stated, "Considering concerns that the current 4% jeonse-to-wolse conversion rate may accelerate tenants' shift to monthly rent and increase their burden, we have decided to pursue a downward adjustment." He added, "The level will be set at 2.5%, taking into account the opportunity costs of both parties, such as tenants' jeonse loan interest rates, landlords' investment product yields, and mortgage loan interest rates."

According to the Ministry of Economy and Finance, as of June, the average market jeonse loan interest rate is 2.26%, the one-year fixed deposit interest rate is 1.40%, and the mortgage loan interest rate is 2.49%.

Deputy Prime Minister Hong expressed, "We plan to promptly review measures to supplement statistical surveys so that jeonse market statistics can comprehensively cover both new and renewal contracts."

At the meeting, measures to smoothly resolve various disputes that may arise during the transitional period following the implementation of the Three Lease Laws were also discussed.

Deputy Prime Minister Hong mentioned, "Currently, there are six dispute mediation committees; we will add six more within this year and continue to expand further."

He also added, "To protect tenants from false contract renewal refusals, we will expand the right to access information so that tenants can view the status of housing move-in registrations and fixed dates for a certain period even after eviction."

Deputy Prime Minister Hong further explained, "We will complete research on major contents of large-scale projects based on new housing sites such as Taereung Golf Course within this year and aim to finalize them through the Metropolitan Area Wide-area Transportation Committee's review in the first quarter of next year."

Deputy Prime Minister Hong also plans to closely monitor disruptive activities in the real estate market. He emphasized, "Currently, we are conducting additional planned investigations on about 400 suspicious transactions involving minors among high-priced transactions over 900 million KRW and about 150 suspicious transactions in land transaction permission zones and major overheated areas in the metropolitan area." He added, "Starting from the enforcement of the revised Real Estate Agent Act on the 21st, we will monitor unfair representations and advertisements by real estate agents through the Korea Internet Advertising Foundation and will firmly respond to illegal activities."

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