"Easy Jeonse Loans Need Adjustment"... Emphasis on Speed for Housing Supply

[Anchor]

President Lee Jae-myung also emphasized the need to overhaul jeonse (lump-sum housing rental) loans. He stated that excessively accessible jeonse loans are a cause of soaring housing prices and that it is time to make adjustments. He also promised swift measures regarding supply, such as shortening the construction period for the third-generation new towns.

Next is reporter Kang Cheongwan.

[Reporter]

At a real estate forum held today (July 23), President Lee Jae-myung mentioned the need for policy adjustments, noting that jeonse loans are too easily accessible, which has led to skyrocketing housing prices and even jeonse fraud.

[President Lee Jae-myung : Jeonse loans have the aspect of being a support policy for housing stability of ordinary citizens, but at the same time, they have become a main cause of soaring housing prices. I think it is time to adjust this.]

In particular, he asked the attendees for their opinions on whether jeonse loans even need to be provided to people who already own homes.

[President Lee Jae-myung : If you think we should not provide them, please raise your hand.]

However, he added a caveat that "targeted support" is necessary for the housing of young adults, newlywed couples, and ordinary citizens who are in genuine need of jeonse loans.

The discussion grew heated regarding the reality of supply measures.

[Koh Jong-wan / Private Real Estate Expert : Supply shortage is the biggest cause. There is a concern that crazy housing prices and crazy jeonse prices could recur for the next three or four years if we are not careful...]

[Chae Sang-wook / Private Real Estate Expert : There are no details at all regarding how many units of private rental housing will be built, in which regions, and in what types during the five-year term of the Lee Jae-myung administration.]

[President Lee Jae-myung : It is not that we are indifferent, and existing systems do exist in their own way. But they probably are not working well. The fundamental problem is that there is almost no land available for new construction.]

[Chae Sang-wook / Private Real Estate Expert : There is not only residential land within the city center; there is also plenty of non-residential land, idle land, and land whose usage can be converted.]

[President Lee Jae-myung : Well, those kinds of sites need to be discovered.]

While expressing that the limits of supply are clear in Seoul because it is difficult to find housing sites, President Lee also promised a speed battle, such as shortening the construction period for the third-generation new towns.

[President Lee Jae-myung : (Since the construction period for the third-generation new towns) takes around 60-odd months, I am telling you that we are currently reviewing internal plans to cut that down to less than half.]

Regarding the difficulty of securing new housing sites, President Lee mentioned that he plans to board a helicopter himself to survey the metropolitan area, noting that they are exploring additional sites to the maximum extent possible to increase housing supply.

(Photo: Yonhap News / Video reporting: Jung Sang-bo, Ha Ryong / Video editing: Nam Il)
※ Please note: This article was translated by AI and may contain errors.