Real Estate Forum Criticized for Ignoring Tenant Plight Amid Soaring Rents

A recent national real estate policy forum, attended by President Lee Jae-myung and over 140 participants, has drawn criticism for neglecting the critical issue of soaring rental prices. While the three-hour event focused on various aspects of real estate policy, attendees and observers noted a distinct lack of discussion on stabilizing the jeonse (lump-sum deposit) and monthly rent market, leaving many tenants feeling anxious.

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The government seems to ignore the rental market.

Kim A-mye, a 32-year-old office worker living in a villa on jeonse in Seoul, expressed her frustration, stating, "The government seems to ignore the rental market." She lamented the absence of measures to address the rising housing costs for young people and those in urgent need of a place to live. Despite policies aimed at stabilizing housing prices, the situation has inadvertently fueled the rental crisis, yet practical solutions remain elusive.

An analysis of the forum's discussions revealed a heavy emphasis on keywords related to property sales, such as 'housing' (209 times), 'supply' (133 times), and 'loans' (101 times). Tax-related discussions centered on 'property tax' (51 times), 'capital gains tax' (44 times), and 'comprehensive real estate holding tax' (23 times), primarily focusing on the tax burdens of property owners and measures to increase sales volume. In stark contrast, 'monthly rent' (including jeonse) was mentioned only 11 times, 'tenants' (9 times), and 'renters' (8 times) were mentioned fewer than 10 times. The term 'rental' (11 times) also predominantly referred to policies benefiting landlords, such as easing loan-to-value ratios for rental business owners and tax benefits for those with multiple properties.

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The lack of discussion on the rental market, which is an urgent issue and closely affected by the upcoming property tax increase, was the most disappointing aspect.

Experts echoed these concerns. One real estate specialist, who requested anonymity, found the lack of discussion on the urgent issue of rental prices, which are closely linked to upcoming property tax increases, to be the most disappointing aspect of the forum. Ahn Myung-sook, CEO of Real Estate Marketing Solution Production Office Ojirap, noted that the government's limited policy options make immediate solutions for rental demand difficult. She felt the forum focused too much on broad discussions rather than addressing the immediate suffering of the people.

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There were no concrete measures to immediately satisfy the rental demand... The forum spoke only in broad terms without addressing the immediate pain people feel.

During the forum, when asked about tenant protection measures in light of potential property tax increases, President Lee Jae-myung emphasized the necessity of raising property taxes without directly addressing the concerns. Later, when a participant pointed out that "young people have nowhere to move right now. There's no jeonse, no monthly rent," the President offered no specific response. This lack of attention to the rental market comes at a time when Seoul's housing jeonse price index rose 6.3% and its monthly rent price index rose 6.4% year-on-year in July, according to the Korea Real Estate Board. Experts stress the need for the government to announce at least minimal housing welfare measures for landless tenants.

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Young people have nowhere to move right now. There's no jeonse, no monthly rent.