This study examines problems with the Korean house lease system, and seeks achievable measures to improve the system in the mid- and long-term.
The house lease is a residential lease unique to Korea. The house lease fee had doubled in price from 1988 to 1992. In 1986, the small house lease price increased by 6.4 percent, almost the same rate as large and medium-sized house leases. In 1992, large and medium-sized house lease prices increased by 2.5 percent, and small house lease prices increased by 9.4 percent, demonstrating a rapid price increase. An increase in house lease pricing is causing some problems. For example, it is encouraging consumers to buy small houses by spending little more than the amount required for the lease, which increases informal banking and engenders speculation.
The trend of buying small houses due to an increase in house lease prices will lead to an increase in savings before the purchase of the house, and assist consumers in securing permanent residences. To further examine the house lease system, a simulation that used a lifecycle model to determine trends in residential types was tried. The simulation results show the house lease system has only a marginal effect on forced savings. To improve the system, financial transactions for house leases should be included in formal banking, so that financing can be enhanced and lessee rights can be protected. In addition, a variety of housing types such as permanently rented housing, long-term rented housing, and employee-rented housing should be constructed in the mid- and long-term. Additionally, pooling house lease deposits and using them as housing finance by creating a house leasing fund should be considered.
전세의 경제적 효과와 개선방안(Economic effects of house lease and ways to improve them)
|Series Title; No||정책포럼 / 제16호(9316)|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Territorial Development < National Land Development|
|Holding||KDI; KDI School|