<Anchor> The



authorities have set the rate of conversion to cheonsei so that when the deposit in the form of jeonse is converted into monthly rent, it is not converted higher than a certain percentage. It should not exceed 2% plus the Bank of Korea's base rate, but in practice, it is not well observed.



Reporter Im Tae-woo reports why.



<Reporter>



Last August, a 115㎡ apartment in Yeongdeungpo, Seoul was sold for 150 million won as a deposit and 3 million won for monthly rent.



The average jeonse price for the same area is 1 billion won, and the rent to cheonsei conversion rate for this apartment is 4.2%.



In October last year, the government lowered the legal rent to cheonsei ratio to 2% plus the base interest rate to ease the burden on tenants.



Even with the recently increased base rate, the upper limit is 3%, which is far beyond the statutory upper limit.



The national average conversion rate reached 5.6% last September.



The reason why the rent to cheonsei ratio regulation has become ineffective is because the regulation is applied only when renewing an existing contract and not to a new contract.



[Accredited real estate agent: Because things have become more precious, in the past, we were talking about a deposit of 100 million won (monthly rent) up to 250,000 won, but recently,



you agree to a

full 300,000 won contract.] Even if the

landlord does not comply with the legal rent conversion rate, the tenant Another problem is that there are no special sanctions for the degree that the company is claiming a refund.



It is difficult for tenants to reject the landlord's excessive monthly rent demand, and the amendment bill to impose a fine on such landlords has been pending in the National Assembly for one year.



As a result, the purpose of the regulation to prevent the conversion of jeonse to monthly rent has disappeared.



From January to November this year, the proportion of monthly rental transactions was 36.4%, an all-time high, and the national average monthly rent jumped more than 10% in one year.



[Kwon Dae-jung/Professor of Real Estate Department, Myongji University: In the market, applying the interest rate works more than the government's cheonsei conversion rate.

It is less effective.] As the



government failed to catch the rent to cheonsei ratio, the housing instability and burden on tenants increased.



(Video coverage: Jang Woon-seok, video editing: Kim Jun-hee)