Rent is Free in South Korea. What’s the Catch?

I hate click bait titles like this one. Unsubscribed

The question then is: why can't you just invest the money yourself and use your gains to pay monthly rent?

Still better than living in North Korea…

It’s not free, your opportunity cost and lost interest is your rental cost.

You can make this video in half the time.

This video is so dumb, I'm actually questioning all your videos that I've watched.

I couldn't afford to purchase a million dollar apartment but I was able to deposit nearly a million cash with no interest😂😂😂😂😂

What dishonest clickbait video and the way you speak is annoying af. Please just stop

It’s also like 20m from a McDonalds

Wow polymatter, i think this is the first thumbs down from me on your videos. Nice!

They have to pay interest on those loans each month and, presumably, can't get other loans as a result. Or: they can't otherwise deploy that capital to invest it and so lose value to inflation.

It looks like an individualised version of China’s institution-level housing crisis.

Just wanted to say that you did a great job on the video. My husband is from South Korea, he is fluent in both Korean and English, and he thought you explained it quite well. Please make more videos on Korea and other international events too!

Sounds like a bubble 🫧

Investing money back in your business (services, handyman, tutor of various types of abilities, anything that you can add more services to grow) is that much less taxable income. Pay close to no tax. Finding many ways your family or you or friends can use anything possible related to the business, small business, or partnership business.

Same as many grandparents teachings help yourself and oftentimes others 😊
My ('unofficial' architecture and) handyman services avoid paying taxes by staying a smaller non registered service, but others are allowed to be temporary day helpers.

Also, various shared partnerships - or friends - can lend things to help your abilities to help more families cheap or free for years.

My handyman services include technical drawings (basic sketches or architectural) for explaining how things are made for women and families to be more confident how to add value to the property 'curb appeal' which is the top collective goal of any real estate.

Please prioritize family traditions and virtues, which proves best life-long results. 🙏 😊 Because we really need to improve our lives and promote modernization and developments 😊

Short the SK Gov

Oh so that's why so many Koreans often rent out airbnbs. I stayed in one in Seoul and the person has an AirBnb account with units in the same building and I was just trying to figure out how you could afford to buy so many houses in the same building and furnish them all lol

Nothing in this world is free.

'Miwwions'

Only in Korea, new type of Ponzi scheme for you to take advantage of!!!!

Me, a 28 year old hoping to buy a single family hole with a white picket fence and a two car garage: this is strangely relatable all of a sudden

Urghh its a scam... nothing is free

Land Lord, my toilet pipe is leaking.

: Your loan is doing bad. I can't afford it.

Nothings free

This also goes a long way to explain why couples aren't having kids there. It requires couples to both be working. No time for babies and rearing children.

We have a very similar deposit system in Iran called "rahn" often for a mere %10-%20 of the value of the propety in Tehran.. This kind of system usually happens in high-interest, high-inflation environments. Where money now is worth a lot more than money in the future because it can be invested in asset bubbles not only retaining it's original purchasing power but sometimes surpassing it! Theoretically, a house should be worth exactly as much as it produces rent. Any more and it's due to speculation which is a lot less in US than in Korea or Iran. what goes up must eventually come down. Making this system necessarily unstable without continual government Intervention.

So basically instead of renting you are taking on a short term mortgage from a bank and depositing with the landlord. This is a dumb system and rent is not free. That’s like saying owning a house is free because you don’t pay rent. This is prob the worst espisode I’ve seen on this channel

Thats incredible, here in my country Bolivia, have a very similar option, we call it "anticretico" and touhgt nobody else in the world had it.

That’s a Ponzi scheme

So the answer is the opportunity cost (interest) of a loan to the landlord. This is exactly same as elite schools in Hong Kong who require parents pay huge bonds while their kids go to their school, again to get around school fee caps.

Technically, the rent is not free. They paid one lump sum to live for several years. They may not get back the full amount if the landlord want them to pay for "wear and tear".

The catch: A ponzi scheme with extra steps.

Instead of the government subsidizing loans, wouldn’t it be better to subsidize construction of housing? Treat the cause, not the symptoms

Super risky to give all ur life savings just to live in a place for 2 years and hoping they would give back to u when u move out

Bros made rent a gacha game

i like that idea!!

the catch is that you have to live in south korea with south koreans
this message was brought to you by the japan gang

Catch: forever working

As soon as I heard the slow narration, I was thinking this is a clickbait. Then I saw the Nebula ad and thought maybe you have some credibility. Then you started talking about the history of the beginning of Korea. I knew this was a waste of time.

ITT: People dont know time value of money.

They are paying rent by tying up their assets.

so much for not giving a dime ..

That's impossible, they are like Japan everything is expensive for locals

can you please consider talking more normally and less constantly surprised and in awe?
interesting content but jesus, talk differently ffs

so basically, the "risk" is now with the bank instead of the landlord. lol

so why not get rid of this system?

excuse me how about inflation and interest payments? 2% for inflation and 5% for the jeonse interest. So in the end of the day you still pay around 5-8% of the 70% property value, the money which you never have had at your disposal at first place and are beyond your means. Those 5-8% of a house value per year will average out to 30% or more of your monthly income.