So-called "gap investment," in which homes are bought while leaving the jeonse deposit in place, appears to have been concentrated among people in their 30s and 40s in Seoul this year.
An analysis on 12th by the office of Rep. Cha Kyu-geun of the Rebuilding Korea Party, using this year's funding plans received from the Ministry of Land, Infrastructure and Transport, found that among 5,673 suspected gap investment transaction cases in Seoul (lease deposit + loans from financial institutions + for leasing purposes), people in their 30s and 40s accounted for 78% (4,430 cases).
Breaking down funding methods into own funds and borrowing fund, own funds totaled 2.48 trillion won and borrowing fund 4.29 trillion won, meaning 63.4% of the total dwellings purchase funds came from borrowing fund. Among suspected gap investment transaction cases, there were also 67 instances of buying a home with 100% borrowing fund.
For own funds, proceeds from real estate disposals made up the largest share at 1.02047 trillion won. Next were ▲ deposits at financial institutions (944.259 billion won) ▲ gifts and inheritances (239.926 billion won) ▲ proceeds from sales of stocks and bonds (227.137 billion won) ▲ cash and other funds (51.592 billion won), in that order.
Cha said, "The main age group for gap investment is concentrated in people in their 30s and 40s. In March this year, when Seoul reversed its land transaction permit system, borrowing fund increased by 3.8 times compared with January," adding, "A hasty policy sent the wrong signal to real estate."