The Impact of Real Estate Policy on the Korean Housing Sales Market and the Jeonse Market

Abstract

Over the course of history, Korean government’s policies have affected both housing sales market and Jeonse market in different. This paper analyzes the past regime’s real estate policies and time-series data on real estate prices and Jeonse deposit prices to investigate how each government policies affected both the real estate market and the Jeonse market. Post-policies implemented by Korean government had been ineffective. Macroeconomic factors affected the housing market more than government policies. Although government policies do impact the housing market in the long-term, these were also influenced by market environments.