Starting in 2027, as the maturities of Seoul's long-term jeonse dwellings begin in earnest, resident backlash is growing. Residents who have lived there for nearly 20 years are demanding guaranteed renewals and opportunities to convert to ownership. On the other hand, some argue that "these were the terms set from the outset," fueling a widening controversy.
Long-term jeonse dwellings are public rental dwellings introduced by Seoul in 2007 to stabilize the jeonse market. They were designed to allow residency for up to 20 years with a deposit at about 20% to 30% of surrounding market prices. The city has maintained a policy to supply recovered units after maturity as "My Home in Advance" for newlyweds and others. The plan is to supply an annual average of 400 households from 2027 to 2031, for a total of 2,000 households.
According to the real estate industry on the 26th, a notice titled "A message to residents of Gangil River Park and Gangil N Park" has recently spread on online real estate communities. The document, drafted on the 24th by long-term jeonse residents of Gangil River Park and Gangil N Park in Gangdong District, Seoul, proposes a joint response to prepare measures for after the long-term jeonse maturities.
Gangil River Park is a large complex of 6,756 households across sections 1 to 11, with some supplied as long-term jeonse units. Nearby Gangil N Park also has 7,048 households. In the notice, residents said, "We are not rental beggars; we are neighbors of 20 years who elected the same building representatives and raised our children together," adding, "Let's form the 'Gangil-dong long-term jeonse Shift countermeasure committee' together with representatives of both ownership and jeonse buildings."
They made four core demands to the city of Seoul and the Seoul Housing and Urban Development Corporation (SH): ▲ guarantee of renewal for end-user households without homes ▲ opportunities to convert to ownership for those who have lived 20 years ▲ support linking low-interest relocation loans and public jeonse ▲ guaranteed resident participation in the process of establishing new policies. In particular, they asked to be allowed to continue living there in exchange for adjusting the deposit to 80% of market prices upon renewal.
Residents argue that "from 2007 to 2009, Seoul promised '20 years of stable residency with a deposit at 20% of market prices,' and we settled in Gangil-dong based on that." They added, "When maturity comes in 2027, households living in dwellings currently priced around 1 billion won will have to leave after getting back only a 300 million won deposit," and said, "It is realistically difficult to find another jeonse home in the same area."
In fact, according to the Ministry of Land, Infrastructure and Transport's actual transaction disclosure system, an 84-square-meter exclusive unit in Gangil River Park Section 10 was rented on jeonse for 650 million won on the 13th. Residents argue, "If hundreds of households vacate at once, it could not only unsettle the local jeonse market but also lead to hollowing out of the complex and even a drop in home prices."
Market reaction, however, has been tepid. On social media and online communities, criticism is mounting that "they enjoyed housing benefits far below market rates for 20 years and are now asking for additional benefits," and that "long-term jeonse was originally a housing ladder for self-reliance, not a de facto permanent right to reside."
Some in political circles, meanwhile, say a "soft-landing measure" is needed. Ahead of local elections, some politicians in areas such as Gangdong District are calling for reviewing measures to ensure housing stability for long-term jeonse residents. Lee Soo-hee of the People Power Party, a candidate for Gangdong district chief, even pledged "preparing measures for converting long-term jeonse dwellings to ownership and for housing stability for those wishing to remain."
The controversy is likely to grow. Starting next year with "Magok Sumeongsan Park" in the Balsan district of Gangseo District and "Songpa Pine Town" in the Jangji district of Songpa District, major long-term jeonse complexes will reach maturity one after another: Eunpyeong New Town in 2028, Sangam World Cup Park in 2030, Segok N Park in 2031, Seocho Nature Hill in 2033, and Seocho Foresta in 2035.
Seoul, however, is drawing a line for now against conversion to ownership. In a 2023 Seoul Metropolitan Council question session, Mayor Oh Se-hoon said of calls to introduce a right of first refusal for long-term jeonse residents, "Long-term jeonse dwellings are a system that provides an opportunity for self-reliance for 20 years with low housing expenses," adding, "We should be cautious about directions that undermine the original purpose."