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🇰🇷 South Korea /Economy & Trade

Govt. real estate policy approval plummets to 26%, 54% say jeonse system is advantageous

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • A recent poll shows a significant drop in public approval for the South Korean government's real estate policies, with negative evaluations rising to 46% from 27% in March.
  • The decline in positive sentiment is particularly sharp among younger demographics and moderates, while concerns about rising housing prices and loan restrictions are cited as reasons for dissatisfaction.
  • Despite policy concerns, a majority of respondents expect housing prices and rents to increase over the next year, and 54% view the current jeonse (lump-sum deposit) rental system as having more advantages and being necessary.

Public approval for the South Korean government's real estate policies has plummeted, with negative evaluations soaring to 46% in early July, a stark increase from 27% in March, according to a Korea Gallup poll. The survey, conducted from June 30 to July 2 among 1,005 adults nationwide, revealed that only 26% approved of the government's housing measures, while 28% remained undecided.

The sharp decline in positive sentiment marks a reversal from March, when approval stood at 51%. The negative sentiment was most pronounced among those in their 30s (56%), followed by those under 20 and over 70 (51% each). Moderates showed a significant drop in approval, falling from 55% to 24% in just four months. Progressive and conservative groups also saw declines.

The government's real estate policy is not being done well.

— Korea Gallup Poll RespondentReason for negative evaluation of government's real estate policy.

When asked for reasons behind their negative assessment, respondents cited the government's inability to curb rising housing prices (21%), loan restrictions (10%), and excessive regulations (8%). Looking ahead, 55% of respondents anticipate housing prices will rise in the next year, a shift from earlier in the year when a majority expected prices to fall. Similarly, 65% foresee an increase in rental prices (jeonse and monthly rent) over the coming year, a trend that has persisted since 2024.

Despite the concerns surrounding the real estate market, a majority of South Koreans (54%) believe the current jeonse system, a unique rental arrangement involving large lump-sum deposits, has more advantages and remains a necessary component of the housing market. Only 28% viewed it as having more disadvantages and needing to be abolished.

The jeonse system has more advantages and is a necessary system for the future.

— Korea Gallup Poll RespondentOpinion on the future of the jeonse rental system.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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