https://en.wikipedia.org/wiki/JeonseMostly an academic topic since I hadn't heard of this way of renting before and it was interesting...
It seems to benefit the renter, they would be out the inflation/opportunity cost of investing it, but if the place you are renting at 80% of value, you may get enough out of house to be worth it? not too sure my math is right, but for example a $150k house, you could invest for 8% and rent the house for $1000/month, or give $120k to landlord and get 1-2 years "rent free" and get the money back at end of contract. And "save" $30k to invest for yourself. The landlord would get the same benefit as taking out a HELOC without the fees.
Is the entire reason the system doesn't work is in the US is the 1%/month rule, the landlord makes more renting? Does the 1% rule not apply in S Korea? $150k = $18k/year with 1% rule vs $9.6k (8% on $120k). But then again, I'm using 8% investment return because I don't know what S Korea's returns are... so it might favor the landlord to lump sum invest?
