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South Korea will tighten some rules on home lease contracts to stabilize "jeonse" deals, as more homeowners prefer to receive monthly rental fees.
Currently, a homeowner gets four percent of a jeonse contract as monthly rental fees if the tenant seeks to convert the jeonse into a monthly rental deal.
According to Finance Minister Hong Nam-ki, the South Korean government will lower the ratio to 2.5 percent to encourage homeowners to keep their jeonse contracts.
Last month, the government announced it would further rein in soaring housing prices, as other steps such as tax hikes and loan regulations failed to provide a remedy.
The government would supply 132,000 homes, including 110,000 homes in Seoul and neighboring areas, by 2028 by easing restrictions on residential building construction.
The eased rules allow redevelopment projects of aging apartment complexes to increase their floor area ratio to between 300 and 500 from the current 250 percent and build 50-story apartment buildings in the greater Seoul area, from the current 35-story height restriction.
