Seoul's Jeonse Market Faces Supply Crisis as Demand Soars Seoul's jeonse market is rapidly facing a supply crisis. While the number of jeonse listings is decreasing, demand remains high, exacerbating the supply-demand imbalance. In some areas of North Seoul, pressure is approaching a level described as a "jeonse crisis." As of June 9, KB Real Estate reported that Seoul's monthly jeonse supply index reached 182.67. An index above 100 indicates that demand exceeds supply, and a reading above 180 typically signifies a severe jeonse shortage. The situation in North Seoul is even more severe. The jeonse supply index for the region hit 187.78 last month, the highest level since 2020. This figure surpasses the citywide average, indicating that the shortage of jeonse listings is spreading beyond favored complexes throughout North Seoul. North Seoul has seen a steady demand for jeonse as potential buyers, burdened by high purchase prices, opt to remain renters. Existing tenants are also reluctant to move due to increased housing costs, resulting in fewer new jeonse listings and concentrated demand for the remaining properties. This supply-demand imbalance is leading to rising prices. According to KB Real Estate, jeonse prices in Gangbuk District increased by 1.86%, with Seongbuk District (1.36%), Nowon District (1.35%), and Dobong District (1.33%) also experiencing price hikes. The pressure to raise jeonse prices is becoming widespread across North Seoul. The overall number of jeonse listings is also declining. Real estate big data firm Asil reported that as of today, there are 18,574 jeonse listings for Seoul apartments, a decrease of over 26% from 25,240 listings a year ago. While demand for jeonse remains, the shrinking supply is intensifying the sense of crisis in the market. The decline in listings is attributed to a reduction in new rental units and a shift toward monthly rent. A decrease in the number of apartments available for occupancy leads to fewer new jeonse listings and slows the turnover of existing rental properties. The transition to monthly rent is a key factor in reducing jeonse supply. According to the Ministry of Land, Infrastructure and Transport, from January to May this year, monthly rent accounted for 54.2% of new lease contracts for Seoul apartments, up from 45.9% during the same period last year. Landlords are increasingly favoring monthly rent or half-monthly rent over traditional jeonse, further diminishing the availability of pure jeonse listings. An increase in contract renewals is also contributing to the shortage of new jeonse listings. When existing tenants renew their leases due to concerns over housing costs, the number of available listings decreases further. The interplay of declining jeonse listings, the shift to monthly rent, and increased contract renewals is creating a structural supply shortage in Seoul's jeonse market. The challenge is that the jeonse shortage is unlikely to be resolved in the short term. To increase jeonse supply, sufficient new rental units must be secured, but this is difficult to achieve quickly. Additionally, new financial regulations, such as restrictions on jeonse loans for non-resident homeowners, may reduce speculative demand but could also exacerbate the decline in jeonse supply and encourage further shifts to monthly rent. Kim In-man, head of Kim In-man Real Estate Research Institute, stated, "With the low supply of jeonse in the housing market centered around Seoul, landlords have little incentive to lower prices. If prices remain high and jeonse loans are unavailable, tenants will have to consider purchasing or switching to monthly rent, which will not help stabilize housing prices." 2026-06-09 16:21:00

Debate Over Minimum Wage Application for Contract Workers Intensifies On June 9, the Minimum Wage Commission held its fourth plenary meeting at the Government Sejong Center, where discussions focused on expanding minimum wage applications for special types of workers and platform workers. Many delivery riders, parcel delivery drivers, and designated drivers are often classified as independent contractors, which excludes them from minimum wage protections.During the meeting, employer representatives argued that discussing minimum wage applications for special types of workers and platform workers falls outside the commission's authority. Ryu Ki-jung, executive director of the Korea Employers Federation, stated, "Determining minimum wage for individuals not recognized as employees is neither the role nor the authority of the Minimum Wage Commission. Special types of workers, except for a few recognized by the courts, are essentially self-employed individuals."He further noted, "The way labor representatives are demanding minimum wage is unprecedented globally," adding that it could be perceived as an attempt to selectively benefit from both employer and employee statuses.Yang Ok-seok, head of the Human Resources Policy Department at the Korea Federation of Small and Medium Enterprises, emphasized, "Contract agreements are made on the condition of completing a job, and no country treats contract agreements under minimum wage laws." He warned that imposing unreasonable minimum wage standards on contract workers could disrupt the distribution systems of small businesses reliant on contracts and platforms, urging a swift transition to discussions on industry-specific applications.Conversely, labor representatives contended that it is possible to apply minimum wage standards to special types of workers and platform workers within the current system. Ryu Gi-seop, secretary-general of the Korean Confederation of Trade Unions, argued, "The Minimum Wage Commission's task is not to reassess the employment status of contract workers but to decide how to apply minimum wage standards. Delaying this decision is no longer acceptable."He asserted that the Ministry of Employment and Labor's surveys, statistics, international examples, and the special provisions in the minimum wage law regarding contract and similar forms provide sufficient grounds for applying minimum wage to contract workers.Ryu also pointed to the minimum wage calculation methods for delivery riders in New York and Seattle, as well as the fair pricing system in the UK and the experience of safety freight rates for domestic cargo transport workers, demonstrating that a separate minimum wage calculation method suitable for contract work is feasible.Lee Mi-sun, vice-chairperson of the Korean Public Service and Transport Workers' Union, highlighted that delivery riders, designated drivers, and private tutors suffer from unpaid labor due to waiting times, travel times, and time lost from customer cancellations. She argued that applying minimum wage standards to special types of workers would also aid in preventing industrial accidents and strengthening social safety nets.Sung Jae-min, a member of the public interest committee and deputy director of the Korea Labor Institute, remarked, "Through previous meetings, we confirmed that this issue encompasses various complexities and real-world conditions that require comprehensive examination. I hope today's meeting allows for a deeper discussion of the raised issues and ample listening to each other's opinions and concerns."* This article has been translated by AI. 2026-06-09 16:15:00

Financial Supervisory Service Targets Forex Market Speculation, Urges Banks to Curb Dollar Marketing Financial Supervisory Service (FSS) has urged banks to refrain from aggressive dollar deposit marketing and to strengthen management of foreign exchange positions in response to increased volatility in the forex market. The FSS will also enhance inspections of speculative forex trading and market disruption activities.According to the financial sector on June 9, the FSS held a meeting on "Stabilizing the Forex Market" led by Kim Sung-wook, Deputy Director of the Banking and Small Finance Division. The meeting included executives responsible for foreign currency and funding from major commercial banks and foreign bank branches.The meeting aimed to review trends in the banking sector and the foreign currency funding market, as well as to discuss specific responses to the heightened volatility in the forex market.The FSS first advised banks to avoid excessive dollar deposit events or marketing competitions in the current environment of high exchange rate volatility and to enhance consumer guidance regarding the risks of foreign exchange losses.Additionally, the FSS urged banks to refrain from engaging in speculative forex trading that could lead to excessive exchange rate increases and indicated that strict measures would be taken against market disruption activities such as price fluctuations.In particular, the FSS requested banks to actively cooperate to prevent offshore non-deliverable forward (NDF) derivative trading from exacerbating volatility and concentration in the domestic forex market.Furthermore, the FSS decided to shorten the inspection cycle for foreign exchange positions at major banks from monthly to weekly for temporary management and to extend the suspension of enhanced foreign currency liquidity stress test supervision until the end of this year.The FSS plans to jointly inspect speculative trading and market disruption activities that exploit the weakening of the won in collaboration with the Bank of Korea and other relevant agencies.Kim Sung-wook, Deputy Director of the FSS, stated, "I urge the banking sector to adhere to trading norms in the forex market and to strengthen internal controls to prevent market disruption activities. We will closely monitor market conditions and implement necessary measures in a timely manner."* This article has been translated by AI. 2026-06-09 16:12:00

Kakao Bank Introduces AI Model for Detecting Financial Fraud Kakao Bank has launched an artificial intelligence (AI)-based financial fraud detection model that analyzes behavioral patterns before and after transactions to predict the risk of fraud. The initiative aims to enhance the detection of financial scams, including voice phishing.On June 9, Kakao Bank announced the development of the 'Sequence Detection Model,' which has been integrated into its fraud detection system (FDS).The Sequence Model comprehensively analyzes not only individual transaction outcomes, such as transfers and withdrawals, but also the behavioral patterns surrounding these transactions to assess the risk of financial fraud.Utilizing an 'attention mechanism' that allows AI to understand the relationships and flow between data, the model examines various behavioral cues, including the order of transactions, time intervals between actions, and whether devices have changed.For instance, it can analyze patterns where transactions are initiated after a period of inactivity following app access. This pattern of pausing and resuming transactions is often seen in voice phishing schemes, where scammers persuade victims to make additional transfers. The Sequence Model detects these patterns to help prevent fraud.The results have been promising. Since the pilot introduction of the Sequence Model in November of last year, the number of fraud prevention cases monitored through the FDS has increased by an average of 4.4 times compared to before its implementation. In the first quarter of this year, the Sequence Model accounted for 49.8% of all suspected fraudulent transactions that Kakao Bank prevented.Kakao Bank plans to further enhance the Sequence Model to refine its FDS system. A company representative stated, "We have moved beyond detecting unusual transactions at specific points in time to predicting risks based on behavioral flows before and after transactions. We will continue our research and development to proactively respond to increasingly sophisticated financial crimes."* This article has been translated by AI. 2026-06-09 16:12:00

CJ Olive Young Expands Membership Benefits with New Partnerships CJ Olive Young is diversifying the benefits of its membership program, "Olive Members," through experiential content and partnerships with external platforms. On June 9, Olive Young announced that it is accepting applications for the "Olive Class" in collaboration with the skincare brand Clinique until June 14. The Clinique Olive Class will take place on June 25 at the Olive Members Lounge in Central Gangnam, focusing on "Summer Skin Solutions." A dermatologist will provide skin assessments, and participants will have the opportunity to try the brand's signature products. The Olive Class is a small-scale experiential program operated in partnership with both in-store and external brands. Gold and Black Olive members can enter monthly through the mobile application. Classes include beauty sessions on personal color makeup and customized hairstyling, as well as wellness classes like creating aromatic roll-ons. In addition to Clinique, a variety of classes are scheduled for this month. On June 15, a wellness class with the brand Aromatica will allow participants to create personalized roll-ons themed around "Small Wellness in Daily Life." Roll-ons are products applied to the skin using a rollerball, often containing perfumes or essential oils. On June 17, the dermacosmetic brand Rejuda EX will host a class where participants can experience the brand's products and receive personalized recommendations based on their skin concerns. Partnership benefits with external platforms are also increasing. Until July, all membership tiers will receive discount coupon packs for the online lecture platform Tal-ing on a first-come, first-served basis, available before 10 a.m. daily. Gold and Black Olive members will also have access to offline classes and a one-month subscription to online VOD courses in collaboration with Tal-ing, covering topics like makeup and self-massage. On June 11 and 21, points for the content platform Ridi will be distributed on a first-come, first-served basis. Pink and Baby Olive members will receive 1,000 points, while Gold, Black, and Green Olive members will receive 2,000 points. On the same days, discount coupons worth up to 20,000 won for the household service platform Cheongyeon will also be given out on a first-come, first-served basis. The Olive Members program operates with five tiers based on cumulative purchases over the past six months: Baby (under 100,000 won), Pink (100,000 to under 400,000 won), Green (400,000 to under 700,000 won), Black (700,000 to under 1,000,000 won), and Gold (over 1,000,000 won). A representative from Olive Young stated, "We will continue to expand differentiated experiential content and Olive Members benefits to foster our fan base, and we plan to introduce additional benefits that can be accessed both online and offline for consumers outside the metropolitan area." * This article has been translated by AI. 2026-06-09 16:09:00

Behind the Scenes of 'Wild Thing': Kang Dong-won, Um Tae-goo, and Park Ji-hyun Become 'Triangle' Every production has numerous perspectives. Although the director and actors share the same space and time, their experiences may differ greatly. 'Behind the Scenes' focuses on the vivid realities beyond the 'A-cut' captured on screen. It reconstructs the moments of the 'B-cut' that were even more intense than the completed frames through interviews with the director and actors. (Editor’s Note)The film 'Wild Thing' tells the story of 'Triangle,' a mixed-gender dance group that once dominated the music scene but disbanded due to an unexpected incident. Now, 20 years later, they are given a chance at a comeback. Kang Dong-won, Um Tae-goo, and Park Ji-hyun portray the group's leader Hyun-woo, rapper Sang-goo, and center Domi, respectively.In 'Wild Thing,' the stage is not just a backdrop. The three actors were required to act and perform simultaneously. Memorizing choreography and coordinating movements was not enough; they had to sing, dance, and engage with the audience while being aware of the camera. What they faced in front of the camera was not just the 'singer' persona but the reality of being on stage."Seeing myself dance was incredibly satisfying. Especially towards the last performance, I thought, 'Wow, I'm really doing well.' I practiced hard, even after filming, going to practice at night. As we continued filming the stage scenes, I gained more stage experience. By the end, I felt like I had developed a stage presence. At first, I was so focused on not missing the choreography, but as it became second nature, I could pay more attention to the lines. Initially, I was overwhelmed with singing, dancing, engaging the audience, and watching the camera, but as I got used to it, my dance lines improved," said Kang Dong-won.Park Ji-hyun, who plays the center Domi, identified confidence as the most crucial quality needed on stage. She noted that the center position was unfamiliar and burdensome for an actress with limited stage experience."I thought I needed confidence because I was the center. I was worried since I didn't have much stage experience and there were so many visually stunning people around. But I decided to approach it with a fresh perspective and confidence. I watched many artists perform to try to eliminate self-consciousness and just enjoy the moment. Initially, I focused on not making mistakes in the choreography, but I realized I should immerse myself in the performance," Park Ji-hyun explained.For Um Tae-goo, who plays the rapper Sang-goo, the stage represented a different kind of unfamiliarity. Sang-goo is more of an aspiring rapper than a polished one. Um Tae-goo trained for five months at JYP Entertainment, learning rap and dance, mastering vocalization, rhythm, and gestures."With rap, I relied 100% on my teacher. I followed their instructions closely. My character wasn't a skilled rapper, but I thought that if I worked hard for five months, I could make it work even if I wasn't perfect. I practiced vocalization and rhythm with my teacher, and eventually, I found myself unconsciously mimicking their gestures and speech patterns. It felt great when that came out naturally. There’s no end to it, so I just kept working hard without thinking about limits," Um Tae-goo shared.While the three actors approached the stage differently, their focus in the practice room converged. Kang Dong-won's dedication left a strong impression on his colleagues. Park Ji-hyun recalled being amazed by Kang Dong-won's practice of breakdancing and headspins."Dong-won was truly impressive when it came to dance. I saw him practicing breakdancing and headspins in the studio, and I couldn't believe how quickly he mastered them. It was incredible. I wondered how much effort he must have put in to achieve that in such a short time. He would arrive at the studio three to four hours early, drenched in sweat. He practiced individually and then spent another three to four hours with us, so it seemed like he was practicing for six to seven hours a day. It’s not just about effort; he really knows how to use his body, and I thought he would have excelled in dance if he had pursued that path," Park Ji-hyun remarked.Kang Dong-won's goal was not to mimic but to create a genuine performance. While 'Wild Thing' is a comedy, his approach to the stage was serious."For the first performance, my goal was to do so well that it would be funny. I aimed to showcase my dance lines so that those who were dancers before becoming singers wouldn’t feel embarrassed. I wanted them to think, 'Yeah, I used to do that.' I hoped the audience would find it amusing, thinking, 'Why is he doing so well? Why is it funny?'" Kang Dong-won explained.To make Triangle's stage appear authentic, each actor needed their own references. Kang Dong-won recalled the charm and seriousness of first-generation idols he had seen on TV during high school, while Park Ji-hyun drew inspiration from Fin.K.L and Lee Hyori to express Domi's freshness and intensity."I wanted to recreate the image I saw on TV when I was in high school. It was so cool back then. I had never thought about becoming a dance singer, but I wanted to replicate that feeling. The script matched that sentiment, and I wanted to capture the essence of first-generation idols. I wanted them to think, 'That’s how we were,'" Kang Dong-won said."I liked both g.o.d and Fin.K.L when I was younger, but I focused on Lee Hyori. The character Domi in the film, as well as Triangle's transition from a fresh and pure concept in their first album to a bold and flashy performance in their second, reminded me of her. When she was with Fin.K.L, her image was similar to the first album, but in her solo career, she adopted a sexy and intense concept. I thought it would be great for Domi to embody both aspects," Park Ji-hyun added.After accumulating references and practice, the real variable emerged on stage. Um Tae-goo, who had revealed little during rehearsals, showcased a completely different persona once the cameras were rolling. Park Ji-hyun described that moment as feeling like she had been blindsided."Tae-goo was someone who didn’t show much during practice, but once he was on stage, he transformed into a different person. Dong-won said I was a natural on stage, but I think Tae-goo is the true stage natural. I felt blindsided. I thought I would just wink from my part, but he winked a million times during the rap part. I felt like, 'He took my moment.' He was flying on stage, and his cuteness rivaled that of active idols," Park Ji-hyun said."That part was something that changed on the spot. I was discussing with the teacher about making it cuter, but I had no gestures prepared, so I was worried. I thought, 'If it’s not cute, I might as well not do it.' It was terrifying because it would be strange for someone who had never made that expression to suddenly do so. But I think I just went for it. I did everything I could think of that was cute. The actions themselves weren’t prepared at all," Um Tae-goo reflected.Kang Dong-won aimed to create a 'funny yet impressive' performance based on his memories of first-generation idols, while Park Ji-hyun infused confidence into Domi, and Um Tae-goo added Sang-goo's awkwardness and unexpected charm. The song, dance, expressions, and gestures crafted by the three actors brought the fictional group Triangle to life on stage. The humor in 'Wild Thing' was built upon their serious preparation.* This article has been translated by AI. 2026-06-09 16:09:00

Post-Election Changes in South Korea: A Call for an Active National Assembly Following the June 3 local elections, significant political, economic, and industrial transformations are anticipated in South Korea, one year after the inauguration of the Lee government. With no nationwide elections scheduled for the next two years, the government can focus on its national agenda without political constraints. There is a growing consensus among lawmakers and analysts that an active National Assembly must lead these changes. According to political sources on June 9, the national balanced growth policy, known as '5 Geuk 3 Teuk,' is expected to gain momentum with the establishment of new local governments next month. This policy aims to promote balanced development centered around five super-regional areas (Seoul, Southeast, Daegu-Gyeongbuk, Central, and Honam) and three special autonomous provinces (Jeju, North Jeolla, and Gangwon). The '5 Geuk 3 Teuk' initiative was a key topic in the recent local elections. The Gwangju and Jeonnam regions elected a unified mayor, and discussions on administrative integration in Daegu and Gyeongbuk, as well as the creation of a mega-city encompassing Busan, Ulsan, and Gyeongnam, are likely to materialize following the elections. Emerging issues such as artificial intelligence (AI) and semiconductors have also become critical concerns for lawmakers, as competition to secure manufacturing hubs intensifies across regions. The central and local governments are expected to act swiftly to attract businesses in line with the national balanced growth policy. Attention is also focused on potential shifts in the direction of tax authorities, competition authorities, and labor authorities regarding the overall economic policy of the country. The recent remarks by Kim Yong-beom, head of the Presidential Policy Office, regarding the distribution of excess profits by companies carry significant implications in this context. The business community is closely monitoring the possibility of changes in the regulatory framework by relevant authorities. There is increasing support for the argument that an active National Assembly must lead the national transformation. Many policies need to be institutionalized through legislation, necessitating diligent lawmaking and amendments in the Assembly. The ruling Democratic Party's claim to dominate the standing committees in the second half of the National Assembly is related to this issue. Within the party, there is a growing sentiment that it is essential to secure economic-related standing committees (such as the Political Affairs Committee, the Finance Committee, and the Industry Committee), which were criticized for being largely inactive during the first half of the Assembly. Experts also advise that the 22nd National Assembly must end the 'political time.' Kim Jong-seok, a distinguished professor at the State University of New York at Korea and former chair of the Regulatory Reform Committee, stated in a conversation with Aju Economy that "there have been populist elements ahead of elections," emphasizing the need for difficult yet necessary reforms that would enhance the long-term soundness of the national economy, such as stabilizing financial markets, addressing real estate market polarization, and labor reform. He further noted, "The National Assembly should prioritize economic issues and legislate swiftly without conflicts, considering the upcoming general election schedule. This year's regular session is the right time to achieve results." Political analyst Park Sang-byeong suggested that if cooperation between the ruling and opposition parties proves difficult, the ruling party should utilize its majority to deliver results. He stated, "The Democratic Party is the majority party, and it cannot claim that it was unable to act because of opposition resistance. If cooperation is impossible, it should resolve issues using its majority and then be evaluated in the next general election." He added, "About 60% of national governance should focus on the livelihood economy. The Democratic Party will also prepare for the next general election based on its achievements in this area." 2026-06-09 16:06:00

CJ CheilJedang Expands Special Food Support for Rare Disease Patients to Adults CJ CheilJedang is expanding its support for special foods for patients with congenital metabolic disorders, such as phenylketonuria (PKU), to include adults. On June 9, CJ CheilJedang announced that it has signed a memorandum of understanding (MOU) with the Korea Disease Control and Prevention Agency and the Korea Rare & Intractable Diseases Association to establish a support system for purchasing special foods for rare disease patients. The agreement aims to create a public-private partnership that ensures patients who require special diets throughout their lives can reliably access HaeBban low-protein rice even after reaching adulthood. PKU is a rare disorder caused by a congenital deficiency of an enzyme that breaks down phenylalanine, an amino acid found in protein. It occurs in approximately one in every 60,000 newborns, and without proper dietary management, it can lead to neurological and mental health issues. Patients must limit their intake of phenylalanine for life, making it difficult to consume regular rice. Previously, patients under 19 years old could receive government support for special foods, but adults were excluded from this assistance, forcing them to purchase remaining supplies individually or rely on expensive foreign products. Under the new agreement, patients aged 19 and older will be able to apply for special foods quarterly through an online portal called the 'Rare Disease Helpline.' This support system is set to begin operations on July 1. HaeBban low-protein rice has a protein content reduced to one-tenth that of regular HaeBban rice. The production process, which removes the protein from the rice, takes over 24 hours, making the production time more than ten times longer and the manufacturing cost more than double that of standard products. CJ CheilJedang began developing HaeBban low-protein rice in March 2009, following a suggestion from an employee with a child suffering from a congenital metabolic disorder. After investing 800 million won and conducting seven months of research, the company established its own technology and manufacturing facilities, launching the product in October of the same year. Despite its low profitability, production has continued as part of the company's social contribution efforts for rare disease patients. To date, the cumulative production has reached approximately 2.9 million units. Kim Chan-ho, head of CJ CheilJedang's Strategic Support Division, stated, "This agreement lays the foundation for a stable supply of HaeBban low-protein rice to patients over 19 years old. We will continue to do our best to ensure smooth production and supply."* This article has been translated by AI. 2026-06-09 16:06:00

Government to Enhance Marriage Incentives with Housing Benefits for Newlyweds Newlyweds will see relaxed income criteria for public rental housing, along with increased opportunities for special housing supply applications. The government aims to make marriage economically beneficial by significantly revising housing and asset formation support systems.On June 9, the Ministry of Economy and Finance unveiled its "marriage-friendly policy reform plan" during the third Youth Policy Ministerial Meeting. Key initiatives include housing support, tax benefits, and asset formation assistance.The income criteria for public rental housing will be eased for married young couples. Currently, the income requirements for newlyweds are stricter than those for single-person households, which could lead to denial of housing applications after marriage registration, even if the couple qualified beforehand. To expand access, the income threshold for newlyweds will be raised to double that of single young adults.Additionally, unmarried young individuals living in public rental housing will be allowed to renew their contracts once, even if their income and asset levels exceed the limits after marriage. To alleviate loan burdens, newlyweds extending their jeonse loans will receive a 50% reduction in the additional interest rate, applying a rate of 0.15% regardless of combined income.This month, a new special supply program will be introduced for families with newborns (children under two years old), regardless of the seven-year marriage requirement, allowing for a 10% allocation of private housing.Tax benefits will also be expanded. Previously, homeowners without property could only receive a 40% income deduction on repayments for jeonse loans. However, since this support was limited to the head of the household, couples who registered their marriage would lose benefits previously available to each partner. The government is considering extending the income deduction to spouses in cases of weekend couples or relocations of public institutions.Married couples owning two compact cars will be eligible for a fuel tax refund for one vehicle per household. A comprehensive evaluation of the compact car fuel tax refund system will determine whether to extend its expiration and make necessary adjustments.To assist young people in asset formation, the government will introduce a "marriage incentive." The income threshold for joining the Youth Future Savings Plan will be significantly increased to double that of single-person households (up to 117.9 million won annually). Additionally, support for settling in agriculture and fisheries will be raised, and couples operating independent households will see expanded loan support for agricultural startups after marriage registration.A ministry official stated, "We will promptly implement feasible measures in next year's budget, while those requiring coordination with other policies, such as real estate market conditions and household debt management, will be thoroughly reviewed as medium- to long-term projects."* This article has been translated by AI. 2026-06-09 16:03:00

End of Jeonse? Restrictions on Non-Resident Homeowners' Jeonse Loans Loom As the proportion of monthly rent in Seoul's apartment rental market surpasses 50% and the number of jeonse listings rapidly declines, there are concerns that additional restrictions on jeonse loans for non-resident homeowners could accelerate this trend. The government aims to curb leveraged investments such as gap investments, but there are fears that further regulations could heighten instability in the rental market, which is already experiencing a decrease in supply.According to industry sources, President Lee Jae-myung stated at a press conference the previous day that "jeonse is a form of private finance unique to South Korea" and that "the extensive provision of jeonse loans has been a primary cause of rising housing prices." He emphasized the need to prevent speculation using other people's money, indicating a strong commitment to blocking leveraged investments. His direct attribution of the jeonse loan issue to rising housing prices suggests that discussions on tightening regulations may gain momentum.Financial authorities are also reviewing related regulations. The Financial Services Commission announced in April its plans to introduce loan restrictions for non-resident homeowners for speculative purposes as part of its "2026 Household Loan Management Plan." On May 21, Financial Services Commission Chairman Lee Ok-won mentioned the need to continue examining regulations on loans for non-resident homeowners, emphasizing the separation of real estate and finance. The authorities have also begun investigating jeonse loans secured by homeowners in regulated areas of the metropolitan area since late April.Market analysts predict that the government’s tax reform plans could lead to stringent measures, such as applying the total debt service ratio (DSR) to jeonse loans. Currently, under the October 15 measures from last year, only the interest on loans for homeowners in regulated areas is subject to DSR calculations.If jeonse loan regulations are tightened, it is expected to effectively block the inflow of financial resources into speculative demands like gap investments. According to a Financial Services Commission survey, the estimated amount of jeonse loans obtained by homeowners in regulated areas of the metropolitan area is approximately 9.2 trillion won, with around 59,000 cases recorded. The government believes that without blocking the structure of home purchases utilizing jeonse deposits, it will be challenging to enhance the effectiveness of loan regulations.Lee Eun-hyung, a researcher at the Korea Construction Policy Institute, noted that "jeonse loans were originally introduced to support vulnerable groups during periods of low interest rates, but the scope and application have expanded excessively over time." He added that it is essential to consider how to address both supply expansion and demand suppression simultaneously.The issue is that the jeonse market is already rapidly contracting. According to statistics from the Ministry of Land, Infrastructure and Transport, the proportion of monthly rent in new rental contracts for Seoul apartments reached 54.2% from January to May this year, up from 45.9% during the same period last year. This marks an increase of over 8 percentage points in the share of monthly rent in the new rental market for Seoul apartments within a year.The decline in jeonse listings continues. As of today, real estate big data firm Asil reports that the number of jeonse listings for Seoul apartments stands at 18,574, down more than 26% from 25,240 a year ago. There are expectations that additional restrictions on jeonse loans for non-resident homeowners could further accelerate the shift to monthly rent.The reduction in jeonse is also a result of changing choices among both landlords and tenants. With rising interest rates and concerns over deposit accidents, tenants find large jeonse deposits burdensome, while landlords prefer monthly rent or half-jeonse arrangements due to loan regulations and tax burdens.The government and financial authorities already reduced the jeonse loan limit for homeowners to 200 million won through the September 7 measures last year. If additional regulations are implemented, while the demand for investment in homes with jeonse may decrease, there are concerns that this could simultaneously lead to a reduction in jeonse supply and an increase in monthly rent burdens.Choi Kyung-ho, head of the Housing Neutrality Research Institute, stated, "Jeonse is a system based on the premise of leveraging investment returns, that is, price increases. If prices stabilize, it will naturally shrink. However, if it shrinks not because of stabilization but due to the aggressive push for a one-household, one-home policy, the burden on tenants will increase significantly." He further emphasized that to artificially reduce jeonse, a proactive approach is needed to transition to affordable monthly rent through supplier financing, alleviating housing cost burdens. 2026-06-09 16:03:00