President Lee: 'Jeonse' system distorted market, needs normalization

South Korean President Lee Jae-myung has declared that the country's unique 'jeonse' rental system has distorted the housing market, necessitating a process of normalization. Speaking at a press conference marking his first anniversary in office, Lee addressed the ongoing concerns surrounding rental prices and availability.

"Jeonse has distorted the market, and a normalization process is needed," Lee stated in response to a reporter's question about the rental crisis. The 'jeonse' system, where tenants pay a large lump sum deposit instead of monthly rent, has long been a cornerstone of Korean housing. However, recent market fluctuations have intensified debates about its sustainability and impact.

Lee's comments signal a potential shift in housing policy, aiming to create a more stable and predictable market. The administration's focus on normalization suggests a move away from the traditional 'jeonse' model, though specific details of the proposed changes remain to be elaborated.

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Jeonse has distorted the market, and a normalization process is needed.