President Yoon Suk-yeol of South Korea recently addressed the issues surrounding the purchase rental property system, which allows individuals to register as rental property owners without necessarily constructing new housing. His remarks centered on the problem of individuals accumulating hundreds of properties, raising a fundamental question about whether the existing system, which is meant to stabilize the rental market, inadvertently encourages property hoarding instead. Yoon argued that the effectiveness of building new homes would be undermined if the current system facilitates excessive accumulation of existing homes, leading to potential housing shortages despite increased supply.

The purchase rental program was introduced as part of a framework aimed at securing stable housing for tenants, with obligations for registered landlords to adhere to rental periods and limitations on rent increases. However, the program has experienced criticism for not contributing to the overall housing stock, and some have argued it allows for abuse by wealthy landlords, who can stockpile homes without necessarily providing new building. This has sparked a renewed debate regarding the need for regulatory reforms to mitigate potential negative impacts of the program on the housing market.

As the mandatory rental period for many properties registered under the previous administration's policies comes to an end this year, there are expectations that a significant number of apartments will enter the market. This could lead to changes in the dynamics of the purchase rental market, particularly as the government re-examines its tax benefits for non-apartment purchase rental operators. Yoon's statement highlights a crucial issue in South Korea's ongoing struggle with housing supply, affordability, and the effectiveness of current rental programs to meet the needs of both landlords and tenants.