September 14, 2018 09:54 The snowballing cost of housing and student-loan debt are fueling disenchantment and frustration among young people. Saddled with debt before they have even started their working life, they see less and less hope of ever getting on the property ladder without facing a lifetime of mortgage repayments.Some 90.9 percent of people in their 20s and 30s in the Seoul metropolitan area are renting their home. The average deposit lease for a studio in Seoul in August was W19.46 million and the average monthly rental W774,000 (US$1=W1,123). A 2015 survey by the Ministry of Employment and Labor showed that average monthly earnings for those in their 20s were W1.72 million, with those on permanent contracts making W2.07 million and those on temporary contracts just W1.06 million. And they spend half their earnings on housing, as against the recommended proportion of one-third. One newly-wed couple in Seoul sold their studio for W200 million three years ago and took an apartment on a Korean-style deposit lease for W400 million with a loan of W150 million. The apartment, which was worth W550 million at the time, is now going for W700 million. “Our lump sum deposit remains the same, but… Read full this story
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