Deputy Prime Minister Choo Kyung-ho: "Jeonse Deposit Return Loans, DSR to Increase by July at the Latest"

Deputy Prime Minister Choo Kyung-ho at Kwanhun Debate on the 8th
"Limited Relaxation Only Where Necessary"

Deputy Prime Minister for Economy Choo Kyung-ho is delivering opening remarks at the Economic Deputy Prime Minister Invitation Kwanhoon Debate held at the Press Center in Jung-gu, Seoul on the 8th. Photo by Dongju Yoon doso7@

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho said on the 8th, "We are considering easing loan regulations limited to the purpose of returning jeonse deposits, and we are working to implement this by July at the latest."

On the same day, Deputy Prime Minister Choo stated at the Kwanhun Forum held at the Press Center in Jung-gu, Seoul, "Relevant authorities and institutions are hearing many stories from the field. Wouldn't raising the DSR slightly help with liquidity?"

Deputy Prime Minister Choo pointed out, "The reverse jeonse problem arose when the so-called three lease laws were unilaterally passed in 2020. At that time, monthly rent prices surged, and tenants struggled," adding, "Afterwards, the media reported scenes of people lining up to find jeonse houses in Seoul, and jeonse prices skyrocketed, leading to the current nationwide situation."

He continued, "These landlords need to secure 20 to 30 million won immediately but do not have the money right now," explaining, "Regarding the difficulty in properly settling contracts, we intend to ease loan regulations related to the return of jeonse deposits."

However, Deputy Prime Minister Choo emphasized, "This will be done temporarily and only for a certain period," adding, "It is not a permanent measure." He also said, "Since new tenants may feel uneasy, we will prepare measures to ensure there are no difficulties when they move out next time."

Regarding the scale of DSR adjustment, he said, "Basically, each party resolves it through private transactions, and we will only selectively open it for cases where liquidity is needed," adding, "It is very difficult to predict the scale at this moment."

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