SH Corporation Refutes Economic Justice Network: "Only Long-Term Rentals Over 20 Years Are 'Real' Rental Housing"

Kyungsillyeon: Half of 230,000 Public Rental Houses Owned by SH Are 'Fake' Rental Houses
SH Corporation Issues Rebuttal, Calling It "Inappropriate Classification, Arbitrary Interpretation"

[Asia Economy Reporter Kim Hyemin] Seoul Housing and Communities Corporation (SH) has rebutted the claim by the Citizens' Coalition for Economic Justice (CCEJ) that half of the approximately 230,000 housing units supplied over the past 30 years are "fake public housing." SH argued that classifying only long-term rentals of over 20 years as "real public housing" is inappropriate.

In an explanatory statement on the 10th, SH stated, "Simply classifying rental housing with low rent and a long-term lease period of over 20 years as 'real rental housing,' and categorizing Happy Housing, purchased rental, and jeonse rental?which serve as a housing ladder by income and social class?as 'fake rental housing' is an inappropriate classification, especially for the 50,000 households currently residing."

The types of rental housing that CCEJ labeled as fake or counterfeit are Happy Housing, purchased rental, and jeonse rental. CCEJ pointed out that these rental housing units account for 132,000 of the 233,000 public housing units owned by SH. The long-term public rental housing classified as "real" by CCEJ includes ▲Permanent 20,300 units ▲50-year 17,000 units ▲National 28,000 units ▲Long-term jeonse 33,000 units, making up 43% of the total.

Happy Housing is rental housing built near workplaces and schools or in areas with convenient public transportation to ensure housing stability for university students and newlyweds. SH explained, "To provide housing opportunities to many young people and newlywed couples, the residence period is set between 6 to 10 years. It targets income groups with up to 100% of the average urban worker's monthly income, which is higher than the National and Permanent rental housing targeting those with 70% or less, and rents are supplied at 60-80% of the surrounding market price, so the rent cannot be considered expensive."

Purchased rental housing is public rental housing where newly built homes in urban areas are purchased and rented out at 30-50% of the surrounding market price. SH stated, "The target residents are low-income groups such as basic livelihood security recipients. Unlike land development, which requires a long time from development to supply and where available land is depleted, this is a method to supply intensively in the short term within urban areas." SH plans to expand policy beneficiaries to include youth, newlyweds, and some middle-class groups to ensure smooth supply.

Regarding jeonse rental housing, SH claims it is "public rental housing with higher public interest than long-term jeonse." SH said, "It is rental housing where residents can live for 20 years, similar to long-term jeonse, but the eligibility targets those who need public support more urgently, such as basic livelihood security recipients. Unlike long-term jeonse where residents must fully prepare the jeonse deposit, the public covers 95% of the deposit in jeonse rental, so the resident's burden is only 5%."

SH also responded to CCEJ's claim that jeonse rental is "housing that only lends the deposit," stating, "As a contracting party, SH bears all related costs such as brokerage fees, move-in repair costs, and fire insurance premiums, and provides financial support for lease management." Furthermore, SH explained, "Since public land is not required, an increase in jeonse rental housing does not reduce Permanent or National rental housing. The increase in jeonse rental is SH's proactive response to the worsening jeonse market."

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