<Anchor> Since the

Lease Protection Act came into effect, there has been an increasing movement to change the jeonse into monthly rent or reverse tax. So, the government came up with another measure. We have decided to lower the jeon-to-month conversion rate, which is used as a standard when converting cheonsei into monthly rent.

This is Park Chan-geun.

<Reporter> The

government has decided to reduce the current 4% conversion rate to cheonsei and monthly rent to 2.5%.

We accepted the criticism that the rent conversion could accelerate and the burden on tenants could be increased in the aftermath of the amendment of the Lease Protection Act, which limits the rate of rent to cheonsei and monthly rent.

It is expected to be implemented around October after revision of the enforcement ordinance.

Taking an apartment in Jamsil, Seoul, as an example, I calculated how the monthly rent burden changes when converting from cheonsei to monthly rent.

On the 18th of the most recent transaction, this 85-square-meter apartment was traded for a deposit of 800 million won.

If you convert to monthly rent, the current standard monthly rent is up to 2 million won, but when the conversion rate decreases, it goes down to up to 1.25 million won.

For every 100 million won converted to monthly rent, the monthly rent is reduced by 125,000 won, which greatly reduces the tenant burden.

However, there is also an expectation that the landlord will change the rent to monthly rent when the new contract is made.

[Seoul Songpa-gu official brokerage: 2.5%, 4% are meaningless. There is a

reaction that it is difficult to reverse the trend of converting rent to rent because there is no such thing as a major benefit to the tenant because the rent for rent goes up .

[Seoul Yangcheon-gu Realtor: Renters with ample funds will naturally try to convert to monthly rent. The market interest rate is almost zero now.]

There is currently no penalties for the rent to cheonsei ratio, but it may be enforced through legislation.

A bill has already been proposed in the National Assembly that imposes a fine of up to 20 million won if a monthly rent contract is signed higher than the conversion rate.

(Video coverage: Han Il-sang, video editing: Park Jin-hoon, CG: Lee Kyung-moon, Seo Seung-hyun)