He acquired a closed hotel in central Seoul and put it up for rent and rental.

The government and the ruling party are considering a plan to supply rental housing by acquiring hotels in central Seoul as part of the monthly rent and jeon measures. It is a proposal that the Korea Land and Housing Corporation (LH) take over a hotel for sale in downtown Seoul. On the 19th, the government plans to announce measures of jeon and monthly income with these details.

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

Lee Nak-yeon, a representative of the Democratic Party, also told a discussion meeting organized by the Kwanhoon Club held at the Press Center in Sejong-daero, Seoul, that “some hotels have gone (for sale) due to the contraction of the tourist industry “. I know it’s included. “

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

The reason why the government and the ruling party are considering supplying hotels in central Seoul as rental housing is because the use of existing hotels can provide immediate supply. 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 in the National Assembly on the 28th of last month, saying, “I will surely stabilize the jeonse market.”

This political reflection is analyzed that the demand for ‘single-person homes’ was ignored when promoting the three rental laws, such as the jeon / month reporting system, the jeon / month roof system and the right to request the renewal of the contract . The government and ruling party diagnose that the rise of one-person households in Seoul has exacerbated the jeonse crisis. The share of one-person households in Seoul’s total household was 33.4% last year, an increase of 1.4 percentage points.

Representative Lee said, “If you look at last year’s statistics, Seoul’s population has decreased by 40,000, but the number of households has increased by 96,000,” he said. “It means that the number of single-person households is exploding.” He noted: “It was the defeat of the government and the city of Seoul that there was not enough preparation for this.”

However, the market predicts that a hotel with only 100 to 300 rooms will not be able to sufficiently meet the demand for licensed housing for one person. In addition, there is a limit that it is not an effective measure for households with three or more children. Consequently, it is worth noting whether this measure will include the supply of medium to large-size rental housing, which President Moon mentioned in his municipal address.

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

Reporter Mi-Hyun Cho [email protected]

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