Vice Minister Kim Itak: "Stabilizing the Rental Market Is Key... Safe Trust Expected to Be an Advanced Housing Model"

Launch of Jeonse and Monthly Rent Safe Trust Center under HUG

Kim: "Benefits for Both Landlords and Tenants

Need for Public Domain Statistics on Jeonse and Monthly Rent"

Kim Itak, First Vice Minister of the Ministry of Land, Infrastructure and Transport, expressed his expectations regarding the Jeonse and Monthly Rent Safe Trust system, which directly manages landlords’ jeonse deposits and returns profits to them. He stated, "It will become an advanced housing virtuous cycle model that will promote housing supply."

Vice Minister Kim made these remarks on September 22 at the launch event of the Jeonse and Monthly Rent Safe Trust Center, under the Housing and Urban Guarantee Corporation (HUG). The event was attended by Choi Inho, President of HUG, Kim Seongeun, Chairman of the Korea Housing Builders Association, Kim Joungho, Chairman of the Korea Association of Realtors, and Kim Hwantae, Executive Director of the Korea Financial Investment Association, among others.

Kim Itak, First Vice Minister of the Ministry of Land, Infrastructure and Transport, is delivering a greeting at the launch ceremony held on the 22nd at the Jeonse and Monthly Rent Saem Trust Center of the Housing and Urban Guarantee Corporation in Yeongdeungpo-gu, Seoul. Photo by Yonhap News

The Jeonse and Monthly Rent Safe Trust system involves a tripartite contract among HUG, landlords, and tenants. HUG manages the landlord’s deposit and pays a fixed annual return of 5 percent. The newly established Jeonse and Monthly Rent Safe Trust Center provides comprehensive support by guiding landlords and tenants, accepting participation applications, and reviewing contract terms.

Vice Minister Kim stated, "As the transition from jeonse to monthly rent accelerates, it is a key task for the government to reduce the housing cost burden of citizens and create a safe rental environment." He continued, "We plan to manage jeonse properties currently available for rent through a public jeonse stabilization agency and supply them to tenants."

He further explained that the Jeonse and Monthly Rent Safe Trust system benefits both landlords and tenants. Vice Minister Kim added, "Tenants are protected from the risk of jeonse fraud, while landlords can receive stable monthly income beyond simple deposit entrustment through the Jeonse and Monthly Rent Stabilization Agency."

He also called for active participation from the industry. Vice Minister Kim emphasized, "Cooperation among related organizations is essential in order to vitalize the Jeonse and Monthly Rent Safe Trust initiative." He continued, "We hope the Korea Housing Builders Association will support participation from construction leasing businesses and the Korea Financial Investment Association will also encourage asset management companies to join the fund managers for housing supply vitalization."

Kim Itak, 1st Vice Minister of the Ministry of Land, Infrastructure and Transport (left), and Choi Inho, President of the Housing and Urban Guarantee Corporation (HUG), are unveiling the launch plaque at the Housing and Urban Guarantee Corporation Jeonwolse Ansim Trust Center in Yeongdeungpo-gu, Seoul, on the 22nd. Photo by Yonhap News Agency

Meanwhile, during the event Vice Minister Kim also expressed the need for statistics on jeonse and monthly rent to be gathered in the public domain. He pointed out that, apart from statistics provided by private companies such as the real estate big data platform Asil, there is currently no official statistical data on jeonse or monthly rent properties.

Vice Minister Kim stated, "I believe we need to accurately manage statistics on the jeonse market." He added, "Although such (jeonse) properties are being listed on online platforms like Asil, I think it is necessary to provide timely statistical information on available jeonse and monthly rent properties in the market."

This content was produced with the assistance of AI translation services.