Tuesday, May 23, 2017

In Korea, there is a form of housing rentals called jeonse. Instead of paying a monthly rent, the tenant pays a large rental deposit all at once. The landlord can collect the interest from the deposit. A typical jeonse lease lasts for 2 years. When the lease is up, the tenant gets the money back. This rental system was popular when the interest rate was high. These days, however, monthly rentals are becoming more common. Homeowners prefer them because interest rates are low. Rental fees are becoming very expensive on the whole. This is a major financial burden for the middle class and low-income families. Housing loans take up a large portion of household debt, which is at an all-time high.

Did you like the apartment you saw yesterday?

Yeah, it was great.

Are you thinking of living there?

It costs an arm and a leg. I can't afford to live there.