홍남기 "전월세 전환율 2.5%로 하향조정…9월 공공재개발 공모"<br /><br />More government efforts are being unveiled to help tenants who are struggling to make ends meet.<br />South Korea's finance ministry on Wednesday revised yet another housing law...this time regarding the country's unique Jeonse system.<br />Kim Dami reports.<br />In a bid to lift the burden off tenants in South Korea, the nation's finance chief Hong Nam-ki has lowered the conversion rate for Jeonse-to-monthly rent...from the current four percent to two-point-five percent.<br />Under the old rules, a homeowner was required to receive four percent of a Jeonse contract as monthly rental fees if the owner wanted to switch the agreed Jeonse contract into a monthly rental or 'Wolsae' contract.<br />Hong's decision was reached Wednesday after the ministry's third housing market meeting.<br />"The current four percent conversion rate for Jeonse-to-monthly rent only expedites tenants converting to rent and increases the burden on tenants who don't own their own home."<br />Jeonse is a rental system unique to South Korea where the tenant gives the homeowner a lump sum of money, which is returned in full after the lease expires, usually after two years.<br />The lower conversion rate means lower rent for tenants.<br />For instance, a homeowner lowers the lump sum from 5-hundred thousand U.S. dollars to 3-hundred thousand dollars and takes the rest through monthly rent.<br />With the four percent conversion rate, the rent becomes around 660 dollars a month.<br />But with two-point-five percent rate, it's only 420 dollars.<br />Thus, the new measures are aimed at deterring homeowners switching from Jeonse to monthly rent.<br />Experts hope the revised rate will alleviate the Jeonse to rent converting trend, but they also express the need for stronger government controls and monitoring.<br />On top of that, the government will expand public access to moving-in notifications.<br />That's to prevent homeowners refusing to extend leases to rent their homes to others for a higher amount.<br />Hong also pledged to speed up a government plan to start building more housing units in the capital area as early as September.<br />Noting the latest measures are slowly cooling down South Korea's overheated housing market, the finance ministry vowed to closely monitor the market situation.<br />Kim Dami, Arirang News.<br /><br />
