Seoul City has reaffirmed that residents of long-term lease housing must vacate their units after the maximum 20-year residency period, denying any possibility of contract extensions or alternative rental housing.
On August 25, the city announced on its website that it is not considering securing alternative rental housing for residents whose 20-year lease terms are expiring.
This statement follows a report from last month indicating that the city was exploring options for alternative rental housing for residents facing lease expirations. At that time, a media outlet reported that Seoul City had requested the Seoul Housing and Communities Corporation (SH) to consider securing alternative housing for residents whose leases would expire starting next year.
Seoul City emphasized that once the 20-year lease period for long-term housing ends, residents are required to vacate in accordance with existing lease agreements and relevant laws. The city also stated that it will not offer any contract extensions or conversion to ownership options.
Long-term lease housing is a public housing program that allows residents to live for up to 20 years by paying a deposit lower than the market rate, with contracts renewed every two years. This program was introduced during the tenure of former Mayor Oh Se-hoon in 2007, and starting next year, the initial residents will begin to reach the end of their lease terms. Approximately 9,500 units are expected to reach expiration over the next five years.
The affordable deposits for long-term leases are a key feature of the program. According to Seoul City, the average deposit for long-term leases is about 54% of the average rental price for apartments in Seoul. Notably, the initial deposits for residents who moved in 2007 are only about 23% of the current average rental price in the city.
Seoul City explained that long-term lease housing serves as a means of residential stability for long-term living while also acting as a ladder for residents to transition to home ownership. According to the city, among the 14,902 households that have vacated long-term lease housing, 1,171 households, or 7.9%, have moved on to purchase their own homes. Their average length of stay was recorded at 9.92 years.
The city has also stated that the recruitment announcements for long-term lease housing specify that these are 'public housing that will not be converted to ownership,' emphasizing that these units are not supplied with the expectation of conversion. Therefore, even if residents maintain their eligibility, the city holds that they cannot extend their contracts beyond the maximum residency period of 20 years.
A city official stated, 'The information specified in the recruitment announcement is the principle,' adding that they are currently informing residents about the eviction policy following the expiration of their leases.
As the expiration of initial long-term lease residents begins next year, it is expected that discussions surrounding evictions will continue.
* This article has been translated by AI.
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