Advances in Economics, Management and Political Sciences

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Proceedings of the 2nd International Conference on Financial Technology and Business Analysis

Series Vol. 56 , 01 December 2023


Open Access | Article

The Influence That Jeonse Rental System Brought to the Housing Bubble in Korea

Lancheng Fei * 1
1 Panyaden International School, Chiangmai, 50230, Thailand

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 56, 15-20
Published 01 December 2023. © 01 December 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Lancheng Fei. The Influence That Jeonse Rental System Brought to the Housing Bubble in Korea. AEMPS (2023) Vol. 56: 15-20. DOI: 10.54254/2754-1169/56/20231046.

Abstract

The bubble burst, and the South Korean property market plummeted. Thousands of Koreans should not be able to afford their debts and choose to commit suicide. Prior to this, South Korea’s real estate market soared rapidly, and no one noticed the abnormality and the future direction of the real estate market. That was a miracle, but it only lasted for a while, and one of the most important factors that accelerated its destruction was a rental system called Jeonse. The purpose of this paper is to explore the impact of Jeonse, a unique rental system, on the Korean real estate market. Housing prices in South Korea have soared amidst the global pandemic. By studying macroeconomics, the global capital chain, and policy-related factors that affect the market, it seems necessary for the government to understand the importance of controlling leverage and properly using quantitative easing. Those methods can theoretically prevent the economic crisis, slow down the creation of bubbles, or decrease the influence made by the contagions it creates.

Keywords

South Korea, housing market, Jeonse, leverage, capital chain

References

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2. Yoon, J. (2003). Structural changes in south korea’s rental housing market: The rise and fall of the jeonse system. The Journal of Comparative Asian Development, 2(1), 151–168. https://doi.org/10.1080/15339114.2003.9678376

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Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
ISBN (Print)
978-1-83558-159-9
ISBN (Online)
978-1-83558-160-5
Published Date
01 December 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/56/20231046
Copyright
01 December 2023
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated