LH Freezes Rent for Nationwide Rental Housing for 2 Years... Indirect Support Effect of 32 Billion Won
[Asia Economy Reporter Moon Jiwon] Korea Land and Housing Corporation (LH) announced on the 28th that it will freeze the rental deposits and rents of all LH rental housing nationwide for two years starting January next year. The rent reduction period for rental stores and daycare centers within rental housing complexes will also be extended until the end of this year.
This decision to freeze and reduce rents aims to alleviate the housing cost burden on residents amid the economic downturn caused by the novel coronavirus disease (COVID-19).
The LH rental housing rent freeze will be applied sequentially starting from the renewal contracts of the first move-in households in each complex after January 1 next year. All households living in a total of 970,000 LH construction and purchased rental units will benefit.
To support small business owners and others struggling due to COVID-19, the rent reduction for rental stores and daycare centers within complexes, which has been in effect since March, will be extended from the original August deadline to the end of the year. A uniform reduction rate of 25% will be applied nationwide.
LH expects this measure to indirectly support approximately 32 billion KRW to vulnerable residential groups and small business owners nationwide.
For rental housing, the deposit per household will be reduced by 450,000 KRW and rent by 86,000 KRW, while rental stores and daycare centers are expected to see rent reductions of approximately 400,000 KRW and 740,000 KRW, respectively.
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Byun Changhoom, LH President, said, "I hope this freeze and reduction measure will provide some relief to residents of rental housing who are facing difficulties due to the national crisis." He added, "LH will continue to fulfill its role and responsibility as a public institution to realize housing stability for the people."
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