Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
Series Vol. 56 , 01 December 2023
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The Influence That Jeonse Rental System Brought to the Housing Bubble in Korea
* Author to whom correspondence should be addressed.
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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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