President Lee: 'Excessive Jeonse Loans Are One Cause of Surging Housing Prices... Regulations Must Be Strengthened'

President Lee Jae-myung pointed out that "excessive jeonse loans have become one of the causes of surging housing prices," mentioning the need to strengthen loan regulations.

Presiding over the National Public Debate on Real Estate Policy this morning (the 23rd), President Lee stated, "Jeonse loans have the aspect of being a support policy for stabilizing the housing of ordinary citizens, but they have become a major cause of soaring housing prices, so it is 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 accessible, jeonse loans were provided almost without limit," and added, "Because it became too easy to lease properties out on jeonse, housing prices went up."

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

He went on to ask, "There are even cases where people say 'I need to get a jeonse loan to move to a larger house.' Why must we go out of our way to finance loans for people who already own homes to rent jeonse properties elsewhere?"

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

Regarding loans for the return of jeonse deposits, 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, "To prevent housing prices from skyrocketing, regulations on jeonse loans must be strengthened. However, for young adults, newlywed couples, first-time homebuyers, and ordinary housing needs where it is strictly necessary, we must provide 'pinpoint' support with concrete validity," adding, "This is most likely the right answer."

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