Seoul City has reaffirmed its policy that residents of long-term lease housing must vacate their units once the maximum 20-year lease period expires, denying any possibility of contract extensions or alternative rental housing.
On August 25, the city stated on its website, "We are not considering securing alternative rental housing for residents whose 20-year lease period for long-term lease housing is expiring." This clarification follows a report from last month that suggested the city was exploring options for alternative housing for residents facing lease expiration.
Seoul emphasized that once the 20-year lease period ends, residents must vacate in accordance with existing rental contracts and relevant laws. The city also stated that it will not offer any contract extensions or conversion to ownership.
Long-term lease housing allows residents without homes to pay a lower deposit than the market rate and renew their contracts every two years for up to 20 years. This public housing program was introduced during the tenure of former Mayor Oh Se-hoon in 2007, and starting next year, the initial residents will begin to reach the end of their lease terms. Approximately 9,500 households are expected to face lease expiration over the next five years.
The affordable deposits associated with long-term leases are a key feature of the program. According to the city, the average deposit for long-term lease housing is about 54% of the average rental price for apartments in Seoul. Notably, the initial deposits for residents who moved in 2007 were only about 23% of the current average rental price.
Seoul City explained that long-term lease housing serves as a means of residential stability for long-term living while also acting as a stepping stone toward home ownership. Among the 14,902 households that have vacated long-term lease housing, 1,171 households, or 7.9%, have successfully purchased homes. Their average length of stay was recorded at 9.92 years.
The city has also made it clear in its recruitment announcements for long-term lease housing that these are "public housing units that will not be converted to ownership," emphasizing that these units are not supplied with the expectation of conversion. Therefore, even if residents maintain their eligibility, they cannot extend their contracts beyond the maximum 20-year period.
A city official stated, "The information specified in the recruitment announcement is the principle," adding that they are currently informing residents about the eviction policy following the expiration of their leases.
As the expiration of initial long-term lease residents begins next year, discussions surrounding evictions are expected to continue.
* This article has been translated by AI.
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