[2026 Audit] Minister Hong Jiseon Predicts Home Price Stabilization by Year-End... "Jeonse Disappearance Is a Megatrend"

"Reversal in Gangnam 3 Districts' Housing Prices
Growth Rate Expected to Slow by Year-End
Jeonse's Decline Seen as a Megatrend"

Minister of Land, Infrastructure and Transport Hong Jiseon stated that housing prices in the Gangnam 3 Districts as well as the Hangang Belt have turned downward, and predicted that home prices will stabilize by the end of the year.

On October 7, in response to a question from Kim Jungjae, lawmaker of the People Power Party, who pointed out the increase in Seoul's housing prices during the National Assembly Land, Infrastructure and Transport Committee’s audit, Minister Hong said, "In the Gangnam 3 Districts and Yongsan District, housing prices have already shifted to the negative or declined to some extent."

Hong Jiseon, Minister of Land, Infrastructure and Transport, is responding to a lawmaker's question at the National Assembly Land, Infrastructure and Transport Committee hearing on the Ministry of Land, Infrastructure and Transport held on the 7th. Photo by Yonhap News.

She further forecasted, "By the end of this year, the rate of increase in housing prices will decrease, which will likely lead to stabilization."

When asked whether she expects the jeonse rental system to disappear, she replied, "I see it as a megatrend," explaining, "The number of single-person households is increasing, and there are concerns about fraud related to jeonse."

However, she added that measures have been put in place to alleviate the housing burden for tenants resulting from the conversion of jeonse to monthly rental systems. Minister Hong explained, "Through the Jeonse and Monthly Rent Security Trust system operated by the Korea Housing & Urban Guarantee Corporation (HUG), landlords can stably earn income and tenants can safely deposit their guarantee money, and the government is implementing this system."

Regarding whether the duration or areas covered by the land transaction permission system would be extended or expanded, she commented, "Since we consider factors such as subscription competition rates comprehensively, this is not something I can give a definitive answer on here," and added, "We are closely monitoring the housing market."

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