"Save 3.3 million won a month just by breathing?"... 3040s in 'mental breakdown' over 80 million won surge in Seoul apartment Jeonse [House Signal]

[Financial News] How much harder must our daily lives become to save 2 million won a month? What about saving 3 million won? After deducting the food and education expenses for a rapidly growing seven-year-old, along with the ceaseless stream of utility bills and living costs, from our monthly salary, our bank balance is never at peace. It is money that can only be barely scraped together by managing our household budget as if squeezing every last penny out of it, and by hesitating to dine out or indulge in a hobby just once.
However, reality mocks the fierce struggle we endured. Looking at the extent to which the average jeonse price of apartments in Seoul has risen over the past two years—as my lease contracts have come to expire—a sense of despair washes over me, extending beyond mere disillusionment. It amounts to a staggering 80 million won. To save this amount over two years, one would have to dedicate at least 3.3 million won every month, totaling 40 million won a year, without spending a single penny. Forget the grand dream of owning a home; we have entered an era where it is overwhelming simply to secure a jeonse house to shelter our family from the wind and rain.
Statistics reflect our reality coldly and clearly. According to the Korea Real Estate Board (KREB)'s National Housing Price Trend Survey, the average jeonse price for apartments in Seoul recorded 636.62 million won last month. This is a jump of a whopping 82.68 million won, or approximately 14.9%, compared to two years ago (553.94 million won).
Of course, this figure of 80 million won is likely not the bill that every tenant will have to pay tomorrow morning. The perceived temperature may vary depending on the neighborhood, the complex, and the contract terms. However, for ordinary heads of households facing lease renewal, this "rise in the average" is a heavy reality that is strangling them.
Even if you save 2 million won every month with blood, sweat, and tears, it takes a full 40 months to reach 80 million won. The moment you make up for the shortfall with a loan, the pressure of needing a lump sum transforms into the agony of monthly expenses that drain your blood. Let's assume you borrow 80 million won at an annual interest rate of 5%. Without even being able to repay the principal, the interest alone that must be paid to the bank each month amounts to approximately 330,000 won.
This 330,000 won is not just a number. It is the money that must be given up for the soccer class the child so desperately wanted to attend, and the money that must be forgone for a warm meal out during a weekend outing. While one can take comfort in the fact that the jeonse deposit will eventually be returned, the interest that vanishes into thin air remains as a direct drain on the household budget.

What is even more cruel is that just because housing prices are burdensome, we cannot simply change the foundation of our family's life overnight.
To find a more affordable home within the security deposit, one must either downsize or be pushed far to the outskirts. At that moment, the head of the household’s commute lengthens, and the time to play with the child while making eye contact and working up a sweat slips away helplessly on the bus or subway. The child’s kindergarten, school, and childcare environment are completely disrupted. Incidental costs of millions of won, such as moving expenses and brokerage fees, are an added burden. Relocating a family home is by no means a simple shopping trip that can be decided based solely on a price tag.
The problem is that the situation ahead is unlikely to be easy either. As the autumn moving season approaches, rental demand is increasing, particularly in school districts, but the supply of jeonse properties entering the market is becoming scarce and drying up.
For us, having returned to our exhausting daily lives after the holiday break, home should be the most comfortable sanctuary in the world. However, at some point, home became a massive 'bill' that makes us check our bank balances, calculate loan limits, and worry about interest costs.
I want to ask the countless heads of households in South Korea who, late tonight, are searching for Jeonse loan interest rates on their phones while gazing at their sleeping children: When will we ever be able to stretch out our legs and rest with peace of mind in the space called our homes? Why is our autumn so cold and biting?
[email protected] Jeon Sang-il Reporter