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The special rental system; “전세” Korea has achieved a very rapid economic development over the last several decades. At the same time, the price was raised rapidly. Naturally the value of money fell down. So, at that time, the rich man wanted to invest money in real estate. Because they had too much money in their pocket, and they know that the value of real estate will be grow up. Their prediction was right; the house price became more expensive. Many people bought new house for investment purpose. Now, in this small country, there are too many houses. In here, house owner and tenant found agreed point. That is that tenant gives more deposit money under the condition of no pay the monthly rental fee. Of course when tenant moved, the house owner must to return the deposit money. House owner agree their suggestion, because they want to invest again another areas by making large sum of money. The rapid economic development of Korea made this special system. We called this “Jeonse(전세)”

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The special rental system; “전세”

Korea has achieved a very rapid economic development over the last several decades.
At the same time, the price was raised rapidly. Naturally the value of money fell down. During that period of time, inflation was high, and naturally, the currency depreciated along with it. 
So,
at that time,
the rich man wanted to invest money in real estate.  Because they had too much money in their pocket, and they know that the value of real estate will be grow up. During that period of time, with a lot of cash at hand, and the foresight predicting rising property prices, wealthy people saw a huge investment opportunity open up in real estate.
Their prediction was right; the house price became more expensive. house prices did inflate. 
Many people bought new houses for investment purpose.
Now, in this small country, there are too many houses.

In Here, house owner and tenant found agreed point. (not sure what you mean by "agreed point")
That is that tenant gives more deposit money under the condition of no pay the monthly rental fee. Of course when tenant moved, the house owner must to return the deposit money. (I don't really understand how this scheme works either.)
House owner agree their suggestion, because they want to invest again another areas by making large sum of money. (How is this related to not paying the monthly rent?)
The rapid economic development of Korea made this special system. witnessed the development of this system. 
We called this “Jeonse(전세)”

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Ahh, I see now. 

 

Here's how I would summarise it:

 

In South Korea, it is unusual for families to own properties, because mortgages are rare due to the economic environment here. 

 

Instead, families usually rent and as tenants, they rent, but instead of paying a monthly rent per the market rent rate, they pay a deposite per the market sell rate of the property in a lump sum for the duration of the contract, which typically lasts for two to three years. 

 

At the end of the period, the landlord must then return the deposit in full. 

 

So, what are the advantages of this scheme?

 

After receiving the lump sum payment, the landlords are then free to use this money however they want - with the pretext that they can repay the deposit to the tenant at the end of the rental period. Most landlords tend to use this for alternative investments. 

 

Hope this helps. :)

 

Cheers

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The special rental system; “전세”

Korea has achieved a very rapid economic development over the last several decades.
At the same time, the price was raised rapidly. Naturally the value of money fell down.
So,
at that time,
the rich man wanted to invest money in real estate. Because they had too much money in their pocket, and they know that the value of real estate will be grow up.
Their prediction was right; the house price became more expensive.
Many people bought new house for investment purpose.
Now, in this small country, there are too many houses.

In here, house owner and tenant found agreed point.
That is that tenant gives more deposit money under the condition of no pay the monthly rental fee. Of course when tenant moved, the house owner must to return the deposit money.
House owner agree their suggestion, because they want to invest again another areas by making large sum of money.
The rapid economic development of Korea made this special system.
We called this “Jeonse(전세)”

 

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Here is the article about 전세 for your reference:

 

Jeonse (전세:傳貰) is a real estate term unique to South Korea that refers to the way apartments are leased. Instead of paying monthly rent, a renter will make a lump-sum deposit on a rental space, at anywhere from 50% to 100% of the market value.

At the end of the contract, usually two or three years, the landlord returns the amount in its entirety to the renter. This practice is especially used during times of high interest rates, where landlords can make alternative investments during lease periods to make their profits. The homeowner is free to invest the deposit wanted, as long as the same amount of money is returned to the tenant at the end of the contract.

This system is popular for two main reasons. First, there are very few mortgages in South Korea, so it is difficult for consumers to own a home. Also, real estate prices continue to increase so fast that some see the situation as a housing bubble.

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