"30-Pyeong Apartment in Gangnam Increased by 1.4 Billion Won During Roh Moo-hyun and Moon Jae-in Governments"

Analysis and Announcement of Major Apartment Sale and Jeonse Prices in Seoul by Regime Since 1993 by Kyungsillyeon
"Park Geun-hye Government's Jeonse Price Surge Originated from Previous Governments' House Price Increase"
"Moon Jae-in Government's House Price Rise Will Ultimately Heighten Rental Market Instability"

[Asia Economy Reporter Onyu Lim] The price of 30-pyeong apartments in the Gangnam area of Seoul has risen by 1.39 billion KRW during the Roh Moo-hyun and Moon Jae-in administrations alone. This amount is more than four times the 340 million KRW increase during the Lee Myung-bak and Park Geun-hye administrations. Since the rise in apartment prices leads to an increase in jeonse (long-term lease) prices, concerns are growing that the Moon Jae-in administration's housing price surge will further destabilize the rental market in the future.

On the 14th, the Citizens' Coalition for Economic Justice (CCEJ) held a press conference at the CCEJ auditorium in Jongno-gu, Seoul, stating, "An analysis of the prices of 30-pyeong apartments in major Seoul apartment complexes since 1993 shows that the prices increased the most during the Roh Moo-hyun and Moon Jae-in administrations." This analysis surveyed the prices as of January each year for 30 major complexes, including 14 in the Gangnam area (Gangnam, Seocho, Songpa, Gangdong) and 16 outside Gangnam. Data from KB Kookmin Bank and other real estate market information were utilized.

First, the price of Gangnam apartments rose from 220 million KRW in 1993 to 2.1 billion KRW this year, an increase of 1.88 billion KRW, of which 630 million KRW occurred during the Roh Moo-hyun administration and 760 million KRW during the Moon Jae-in administration, totaling 1.39 billion KRW.

Similarly, the price of non-Gangnam apartments increased from 210 million KRW in 1993 to 940 million KRW this year, a rise of 730 million KRW, with 280 million KRW during the Roh Moo-hyun administration and 330 million KRW during the Moon Jae-in administration, totaling 610 million KRW.

Apartment price increases during the Lee Myung-bak and Park Geun-hye administrations were relatively modest. Gangnam apartment prices actually fell by 200 million KRW during the Lee Myung-bak administration and rose by 320 million KRW during the Park Geun-hye administration.

Non-Gangnam apartment prices also decreased by 40 million KRW during the Lee Myung-bak administration and increased by only 70 million KRW during the Park Geun-hye administration. A CCEJ official explained, "It took 10 years for non-Gangnam apartment prices to rise by 100 million KRW since 1993, but after 2003, prices rose sharply, especially during the Roh Moo-hyun and Moon Jae-in administrations."

The pattern of jeonse prices differed from apartment prices. Gangnam apartment jeonse prices rose from 80 million KRW in 1993 to 730 million KRW this year, with 340 million KRW of the increase occurring during the Lee Myung-bak (140 million KRW) and Park Geun-hye (200 million KRW) administrations. Non-Gangnam apartment jeonse prices rose from 80 million KRW in 1993 to 450 million KRW this year, with the largest increase of 140 million KRW during the Park Geun-hye administration.

In contrast, during the Moon Jae-in administration, Gangnam and non-Gangnam apartment jeonse price increases were the lowest among all administrations, at 100 million KRW and 30 million KRW respectively.

However, CCEJ argued that the sharp rise in jeonse prices during the Park Geun-hye administration was caused by the housing price increases following the Roh Moo-hyun administration. CCEJ stated, "When apartment prices rise, jeonse prices inevitably follow. If housing prices had stabilized after the Participatory Government, the steep rise in jeonse prices would not have occurred."

Accordingly, CCEJ expressed concern that the rapid rise in housing prices during the Moon Jae-in administration could lead to instability in the jeonse market in the future. CCEJ claimed, "If apartment price increases are not curbed as they are now, jeonse price increases cannot be avoided. The new rental protection laws, such as the right to request contract renewal and the rent ceiling system, will not be sufficient to protect tenants."

As an alternative to stabilize housing prices, CCEJ proposed the full implementation of the pre-sale price ceiling system. CCEJ argued, "Since the introduction of the pre-sale price ceiling system in 1970, housing prices have been stabilized for decades. However, after the system was abolished in 2000, apartment prices skyrocketed. After the system was reinstated in 2008, apartment prices fell, but rose again after its abolition in 2014."

Additionally, to prevent increasing damages related to rental deposits, CCEJ emphasized the need to introduce a mandatory deposit guarantee system, requiring landlords to compulsorily subscribe to deposit return guarantee insurance.

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