"Failed to Control Housing Prices and Only Raised Jeonse and Wolse Rates"... Outpouring of Complaints

[Anchor]

At a real estate debate hosted by the Seoul Metropolitan Government, complaints poured out regarding the real estate tax reform proposals. Tenants expressed that their biggest concern is landlords saying they will move in themselves to reduce their tax burdens.

Reporter Yun Nara has the details.

[Reporter]

Around 50 people, including citizens, realtors, and experts, attended the Seoul Metropolitan Government's real estate policy debate.

Attendees unanimously agreed that the government's tax reform proposals did not fully consider the impact they would have on the jeonse (lump-sum deposit lease) and wolse (monthly rent) markets.

A person in their 20s who recently started working in Seoul said that they have become anxious even about the monthly rent they managed to secure after struggling to find jeonse.

[Kim Min-jung / Entry-level worker: If the landlord decides to move in and live here myself, I am very worried about whether I will have to move out and go through the hardship of finding a place all over again.]

Realtors diagnosed that following the announcement of the tax reform proposals, which increase the tax burden on non-resident single-home owners, jeonse and wolse listings have visibly decreased because landlords actually intend to move in themselves.

[Park Jun / Songpa-gu, Seoul (Realtor): Because owners who used to lease their properties are trying to move in themselves, we used to have about 50 to 80 jeonse and wolse listings, but now they have dropped to under 10, and prices have risen sharply.]

They also pointed out that housing purchase prices are rising significantly.

[Kim Yong-hyeok / Gangseo-gu, Seoul (Realtor): If there are no jeonse or wolse properties available, people who intended to rent have to buy homes instead. Apartment prices seem to have gone up by 100 million won over the past month or two.]

Mayor Oh Se-hoon sharpened his criticism against government policies, stating that housing issues should be solved through supply rather than taxes and regulations.

[Oh Se-hoon / Mayor of Seoul: How can the jeonse and wolse issues be resolved by imposing heavy taxes on people who already own homes? (We need to) provide business incentives to private rental suppliers so they can invest and supply more.]

Regarding the proposal to supply housing on the site of the Yongsan Children's Garden, Mayor Oh drew a line, stating that maintaining green spaces in Seoul is the duty of the Mayor of Seoul and that it is "absolutely out of the question."

(Camera footage: Joo Bum, Kim Heung-ki | Video editing: Yu Mi-ra)

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