Politics · South Korea · 3 hrs ago
South Korea housing minister says more homes are key to easing rent rises
South Korea's housing minister says fewer new homes are driving rent rises.
Hong Ji-sun said weak construction starts have reduced the number of homes becoming available.
She described the shift from deposits to monthly rent as a lasting change, linked to more single-person households and the effects of rental fraud.
The government says construction permits and starts in Seoul rose by more than 40% in the first eight months of this year compared with the same period last year.
About 100,000 public homes are due to open in the capital region by the end of next year, and the government also plans to expand long-term private and public rentals.
Eligible renters can claim a tax credit on part of their rent, while young people can receive up to 200,000 won a month in support.
The government says it will keep expanding housing supply and looking for ways to ease rent costs.
South Korea’s land and transport minister Hong Ji-seon said increasing housing supply is the fundamental way to ease rent rises.
Hong said the main cause of rising jeonse and monthly rents is fewer homes becoming available after a decline in construction starts.
He said Seoul housing permits and construction starts rose by more than 40% year on year in January-August.
Hong said about 100,000 public homes in the Seoul metropolitan area are expected to be completed by the end of next year.
He also described the shift from jeonse to monthly rent as a structural change linked to more single-person households and the impact of rental fraud.
- Who
- Hong Ji-seon, South Korea’s land and transport minister.
- What
- He said increasing housing supply is the fundamental solution to rising rents.
- When
- He posted his remarks on the night of October 21.
- Where
- On X; the post concerned South Korea’s housing and rental market.
- Why
- He said fewer homes becoming available after weak construction starts are the main cause of rent rises.
This story does not have two clearly opposing sides.
Hong posted on X about rent concerns, housing supply and support for renters.
Yonhap published its report on Hong’s remarks.
- Minister
- Hong Ji-seon
- Seoul housing permits and construction starts
- Rose by more than 40% year on year in January-August
- Public homes
- About 100,000 in the Seoul metropolitan area expected to be occupied by the end of next year
- Monthly rent tax deduction
- 15%-17%, capped at 10 million won a year for eligible workers with annual salaries up to 80 million won
1 source
What people are saying
The fundamental solution is supply.
I hear your concerns about the burden of monthly rent, and take them seriously.
The shift from jeonse to monthly rent is a structural change in the rental market caused by the increase in single-person households and the aftermath of jeonse fraud.