He acquired a closed hotel in downtown Seoul and released it for rent and lease

The government and ruling party are considering a rental housing supply plan by acquiring hotels in central Seoul as part of the monthly rent and jeon measures. It is promising that Korea Land and Housing Corporation (LH) will take over a hotel for sale in central Seoul. It is interpreted as an “emergency prescription” to respond immediately to the jeonse crisis. On the 19th, the government plans to announce measures for jeon and monthly rent with these details.

A key Democratic Party official said on the 17th: “LH is considering taking over a hotel for sale in Seoul and providing it as a home.” “It is possible with the financial power of LH.”

Lee Nak-yeon, the Democratic Party representative, also said in a discussion meeting hosted by the Kwanhoon Club held at the Sejong-daero press center, Seoul, that “some hotels have come out (for sale) due to the shrinking of the ‘tourism industry”. I know it’s included. “

In the industry, the Crown Tourist Hotel in Itaewon-dong, Seoul and Le Meridien Seoul in Yeoksam-dong, for sale on the market, are mentioned as promising candidates for acquisition. These hotels have suffered a sharp decline in foreign tourists due to the spread of the new coronavirus infection (Corona 19).

The reason the government and ruling party are considering providing hotels in downtown Seoul as rental accommodation is because it is possible to provide immediate supplies using existing hotels. Since the tourist hotels are mainly located in the center of Seoul, they can actually be used as a personalized residence for one person. President Moon Jae-in also showed his will in a revised budget speech for next year at the National Assembly on the 28th of last month, saying, “I will definitely stabilize the jeonse market.”

It was analyzed that the political reflection that the demand for “ one person’s families ” was neglected in pursuing the three rental laws, such as the jeon / month ratio system, the jeon / month ceiling system and the right to request renewal of the contract, which caused the crisis cheonsei. The government and ruling party have diagnosed that the rise of single-person households in Seoul has aggravated the jeonse crisis. The proportion of single-person households in Seoul’s total household was 33.4 percent last year, an increase of 1.4 percentage points.

Rep Lee said, “If you look at the statistics over the past year, Seoul’s population has decreased by 40,000, but the number of families has increased by 96,000,” he said. “It means that the number of one-person families is exploding.” He stressed: “It was the defeat of the government and the city of Seoul that there was not enough preparation for it.”

However, the market predicts that a hotel with only 100 to 300 rooms will not be able to sufficiently meet the demand for families rented for one person. There is also a limitation that it is not an effective measure for families with three or more children. Consequently, it is noteworthy whether this measure will include the provision of medium and large rental housing, which President Moon mentioned in his municipal speech.

It is known that the government and the ruling party will also include measures to convert commercial real estate such as offices and shopping malls into homes.

Reporter Mi-Hyun Cho [email protected]

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