Residents of Seoul's long-term jeonse dwellings are set to formally demand contract extensions and conversion to ownership as their leases near expiration. Because they have lived for up to 20 years on deposits below market levels and are now seeking title transfer, critics say this could deprive people without homes who are waiting to move in of their chance.
◇"Ahead of the 20-year maturity, demanding contract extensions and conversion to ownership"
According to the industry on the 7th, the Songpa Pine Town chapter of the Seoul Public Rental Housing Tenants' Rights Promotion Committee will hold a briefing for Songpa Pine Town tenants on the 11th.
At the briefing, the organizers plan to officially ask the city for two things: "long-term contract extensions for Seoul's public rental dwellings, including long-term jeonse dwellings and national rental dwellings," and "individual and phased sales (title transfer) of Seoul's public rental dwellings."
Through a related notice, the organizers described it as "a briefing to secure housing stability and housing rights for public rental housing tenants." They also encouraged participation, noting that it is "a very important matter directly related to tenants living in long-term jeonse."
A post titled "Not attending this briefing means consent to eviction—death" also appeared on a real estate forum. Citing the Special Act on Public Housing, the writer said, "Tenants of public rental housing are not evicted without justifiable reason and are guaranteed priority when converting to ownership, so it goes against the purpose of the law for the Seoul city government to unilaterally demand eviction."
The Seoul Public Rental Housing Tenants' Rights Promotion Committee is a group formed in May by representatives of Seoul's public rental housing tenants. It is reported that 30 public rental housing complexes in Seoul are currently participating.
They appear to be mounting an organized response as the expiration of long-term jeonse contracts approaches. The city introduced the long-term jeonse dwelling system in 2007 to stabilize the jeonse market. It was designed to allow residents to live for up to 20 years on deposits set at about 20% to 30% of surrounding market levels.
◇Seoul city: "Resupply as Mirinae Home"… residents object on fairness grounds
The city plans to supply these dwellings as "Mirinae Home (long-term jeonse dwellings II)" for newlyweds and others once existing long-term jeonse tenants' contracts end. The city maintains that it is not considering conversion to ownership for the existing long-term jeonse dwellings.
But existing residents are raising concerns about fairness. They say they must move out after 20 years, while Mirinae Home residents can receive benefits such as long-term residence and priority purchase upon childbirth. They argue that, having established their lives over a long period, separate measures such as contract extensions or phased conversion to ownership are needed.
Earlier, long-term jeonse residents of Gangil River Park and Gangil N Park in Gangdong District also demanded conversion to ownership based on appraised value and contract extensions, saying, "When contracts expire in 2027, it will be difficult to resettle in nearby areas with the existing deposit alone because market prices will have risen sharply." Residents of Goduk N Park, Gangil River Park, Gangnam Shindonga Familier, and Magok M Valley also held a public hearing last month urging countermeasures.
◇Criticism that opportunities for people without homes will shrink… maturities line up starting in 2027
On the other hand, some say the residents' demands are excessive. Because long-term jeonse dwellings were supplied from the outset as rental dwellings guaranteeing residence for up to 20 years, demanding additional extensions or even title transfer after contracts expire runs counter to the purpose of the system, they say.
In particular, critics say that if existing residents' occupancy periods are extended or units are converted to ownership, opportunities will inevitably decrease for people without homes who are waiting to move in.
The controversy is likely to grow. Starting with "Magok Sumeongsan Park" in the Balsan District of Gangseo in 2027 and "Songpa Pine Town" in the Jangji District of Songpa, 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.
A Seoul city official said, "The existing long-term jeonse dwellings and Mirinae Home have different design purposes," and "we maintain the position that we are not considering conversion to ownership for the existing long-term jeonse."