<Anchor> If the



lessee wishes, he can request for a contract renewal for two more years, and the lease law, which prohibits rent increase by more than 5%, will soon enter into force for one year. The government self-proclaimed that the tenant's housing has been stabilized thanks to this law, but critics are criticizing it for being self-contained.



Reporter Hyung-woo Hyung.



<Reporter>



One year after the lease law came into force, the government said that when it looked at 100 apartments in Seoul, the renewal rate of lease contracts rose from 57.2% to 77.7%.



The average tenure of tenants increased from an average of 3.5 years to 5 years.



[Hong Nam-ki / Deputy Prime Minister of Economy: It is evaluated that the stability of the tenant's housing has been greatly improved.] It



is pointed out that only the position of the tenant who succeeded in extending the contract was emphasized.



Although some tenants have benefited from positive benefits, it has become more difficult to find a house as many buyers looking for a jeonse are locked out.



The nationwide apartment jeonse price rose only 5% in the year before the law came into force, while it increased by a whopping 11% in the year after the law came into force.



Seoul Jeonse prices have been on the rise for the 107th week.



An increasing number of landlords are turning their jeonse into semi-jeonse or monthly rent, and there have been many cases in which tenants become jeonsei refugees because the landlords said they would come in to evade the lease law.



[Mr A/Jeonse tenant: It is due in October, but on July 9th, I received a text message from the landlord (to leave). I have to prepare to move suddenly, and it is difficult to see the



properties for

sale right now because of the corona.] The

double price phenomenon, where the difference between the deposit amount of hundreds of millions of won between the existing Jeonse house, which rose by 5%, and the new Jeonse house, which is not regulated by 5%, has also intensified.



[Song In-ho / Director of Economic Strategy Research, KDI: Because it is a structure that has no choice but to converge to the market price after 2 or 4 years. It is necessary to find a way to harmonize the practical regulations of the Lease Protection Act in the market (necessary.)]



Recently, when we decided to remove the two-year real residence requirement for reconstructed complexes, in some complexes, Jeonse

properties were sold within a

week. It was released and the price went down.



While there are evaluations that it is evidence that regulations that do not take market conditions into account can have different effects than intended, there are many voices that not only some tenants but also the entire consumer group should think about measures that will lead to stable deposit prices and expansion of properties.



(Video editing: Hongmyeong Lee)