(MENAFN) South Korea's cost of rent climbed to record high levels in the second quarter as homeowners moved from accepting 'jeonse' to monthly rent from their tenants, and so the national average for rent totaled USD62 in this period.
Jeonse is a local property lease system in which tenants pay a large deposit in place of monthly rent. It usually involves two-year contracts, with the homeowner paying back the principal when lease is terminated.
Rent increased by 21.8 percent on-year in the second quarter, with numbers progressing steadily from last year's third quarter, reaching USD60 in the January-March period of 2014.
However, the rise in rent, is badly affecting spending in general, and it's worth mentioning that 43.4 percent of the rental contracts signed in the first half were monthly rent arrangements, up 9.5 percentage points from 2012.
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