President Lee: "Excessive Jeonse Loans Fueled Housing Price Surges... Regulations Must Be Strengthened"

President Lee Jae-myung remarked that jeonse (lump-sum housing deposit) loans have "become one of the causes of skyrocketing housing prices due to being overly excessive," mentioning the need to tighten loan regulations.

Presiding over the National Public Debate on Real Estate Policy this morning (the 23rd), President Lee stated, "While jeonse loans have the aspect of being a support policy for stabilizing the housing of ordinary citizens, they have become a primary cause of skyrocketing housing prices, making it time to make adjustments," adding, "Loan regulations must be strengthened."

President Lee pointed out, "Under the pretext of supporting ordinary citizens to make jeonse easily obtainable, jeonse loans were provided almost without limit," and noted, "Because providing jeonse became too easy, housing prices went up."

He also criticized, "Eventually, even in cases where people obtained jeonse worth 100 percent of the home value, guarantees or loans were provided, which led to jeonse fraud."

He further asked rhetorically, "There are even cases saying, 'I need to get a jeonse loan to move to a larger house.' Why should we bother providing loans even for people who already own a house to obtain a jeonse elsewhere?"

President Lee also asked for the opinions of the debate participants regarding this matter.

Regarding jeonse deposit return loans, he asked, "This has also become one of the causes driving up housing prices. What do you think about the point that we need to strengthen [regulations]?"

President Lee stated, "Regulations on jeonse loans must be strengthened to prevent housing prices from skyrocketing. However, for young adults, newlywed couples, first-time homebuyers, and ordinary housing needs where it is strictly necessary, we must provide tailored, 'pinpoint' support with concrete validity," adding, "This is most likely the correct answer."

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.