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Lucy lee
Professional TeacherKorea's rising house prices can be attributed to several factors, including the unique 전세 (jeonse) system. In this system, tenants pay a large deposit—around 50-60% of the house price—rather than monthly rent. Landlords can use these deposits to finance house purchases, which increases demand for housing and drives up prices. Additionally, the large deposits make 전세 an attractive investment, further fueling the market.
Government measures, such as sanctions on house contracts and restrictions on buyers, aim to stabilize the market by encouraging homeownership among residents and reducing speculative buying. These policies are designed to curb excessive price increases and promote more sustainable housing affordability.
Overall, the combination of high deposits involved in 전세, speculative demand, and government interventions contribute to the ongoing rise in Korea's house prices, especially in Seoul.
Oct 20, 2025 1:12 PM
Lucy lee
Language Skills
English, Korean, Other
Learning Language
Other
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