Jeonsae leases are those in which tenants make a very large deposit, which is then returned, in full, at the end of the contract. Very few are being offered now, and one rental apartment complex has announced it will discontinue all jeonse contracts from next month. Joseph Kim has more.
The rise in population here has also been leading to a sharp rise in real estate transactions.

The high demand is leading to a rise in prices for new housing, with premiums often added to the initial price.

Leasing under the ‘jeonse’ (전세) system is also becoming increasingly rare, as most homeowners these days prefer monthly rent due to low interest rates.

For the majority of people paying monthly rent, the recent trend is unwelcome news.

[INTERVIEW]
Choe Man-soon / Ido-dong, Jeju City
Household spending differs greatly from when you own a place to when you’re paying monthly rent. Whether it’s through jeonse or buying your own house, it’s good to have a stable place to live.
<인터뷰 : 최만순/제주시 이도동>
"집이 있을 때와 월세 나갈 때 생활비가 많이 차이 나요.
어쨌든 전세든 집을 사든 집이 유지되는 게 좋죠."

[INTERVIEW]
Jeon Ae-ja / Yongdam-dong, Jeju City
It’s okay for the haves but it’s hard for the have nots.
<인터뷰 : 전애자/제주시 용담동>
"있는 사람은 괜찮은데 살자고 하는 사람들은 어렵죠."

Meanwhile, a company that owns several large rental apartment complexes in the Samhwa District has announced it will discontinue jeonse (전세) contracts from next month.

<타가>
The current jeonse (전세) contract at one of these apartment complexes gives renters the eligibility to own the house they leased after 10 years if they pay around 130 million won as a jeonse (전세) deposit.

The same house is also available at 380 thousand won a month plus a deposit of about 66 million won. If you calculate the monthly expense for one year, it comes up to 4.5 million won… for 10 years, that’s 45.6 million won.
<타가>

This company owns over 3,100 apartment units in the Samhwa District.
With the possibility of monthly rent going up in the future, critics question whether the rental apartments are really meant to be for commoners.

[INTERVIEW]
Apartment resident
All we can do is follow the new rules. We have no power. We just do as we’re told.
It’s a burden for people like us. It’s probably not an issue for people who came to live here with a lot of money...
<인터뷰 : ○○아파트 입주자>
"저희들이야 따라가야 하는 입장이니까. 힘이 없잖아요. 하라는 대로 해야죠.
서민층은 부담이 되죠. 여유가 있어서 입주한 사람이야 상관없겠지만..."

The company has stated that even though it let out apartments on jeonse (전세) leases in the past, they will not be signing further jeonse (전세) contracts since the apartments were made to be rental housing units primarily for monthly rent.

SYNC
Apartment staff
Whether you’ve been living here or are planning to live here, the new rule will go into effect October 1st. No jeonse leases will be available. These are rental apartments, so it’s only right that renters pay monthly rent.
<씽크 : 부영아파트 관계자>
"기존 계약자나 새로 들어오는 분이든 10월 1일부터 전환도 안되고 신규 (전세)계약도 안 돼요. 임대 아파트니까 임대료를 내면서 지내는 게 맞죠."

[REPORTER]
Joseph Kim

The slogan of this apartment complex is “with love”... but it seems things are being run more “with money” in mind… further distancing the people’s dreams of owning their own place one day.

Joseph Kim KCTV