@article{ART003353375},
author={Bae Se Young},
title={Why Do Apartment Housing Policies Fail in Korea? Jeonse-Driven Leverage and Policy Ineffectiveness},
journal={Journal of Asia-Pacific Studies},
issn={1225-8539},
year={2026},
volume={33},
number={2},
pages={185-216},
doi={10.18107/japs.2026.33.2.006}
TY - JOUR
AU - Bae Se Young
TI - Why Do Apartment Housing Policies Fail in Korea? Jeonse-Driven Leverage and Policy Ineffectiveness
JO - Journal of Asia-Pacific Studies
PY - 2026
VL - 33
IS - 2
PB - Institute of Global Affairs
SP - 185
EP - 216
SN - 1225-8539
AB - This study investigates howjeonse-based leverage influences apartment prices andcontributestotheineffectivenessofhousingpoliciesinSouthKorea.Employing aNonlinearAutoregressiveDistributedLag(NARDL)modelandtheOaxaca–RIF decomposition within a control-function framework, the analysis uses monthly data for three regional groups: (i) the Seoul area, (ii) the Seoul metropolitan area, and (iii) the five other major metropolitan cities, covering the period from January 2012 to December 2025. The empirical results show that apartment pricedynamicsdiffersubstantiallyacrossregions.Jeonsedeposits,interestrates, CPI,andsupply-sidevariablesexertheterogeneouslong-runeffects.Thefindings also suggest that common explanatory variables become less effective outside Seoul, providing evidence of policy ineffectiveness in Korea’s real estate market.
Therefore, this paper suggests that the government refrain from relying on uniform, short-term demand-suppressing policies, ineffective supply regulations, andtaxpoliciesthatdiscouragehomeownersfromsellingtheirproperties.Instead, housing policies require more long-term oriented and region-specific designs that explicitly account for jeonse-based leverage.
KW - Jeonseleverage;policyineffectiveness;NonlinearAutoregressiveDistrib uted Lag (NARDL) model;Oaxaca-RIF decomposition method;and control-function approach.
DO - 10.18107/japs.2026.33.2.006
ER -
Bae Se Young. (2026). Why Do Apartment Housing Policies Fail in Korea? Jeonse-Driven Leverage and Policy Ineffectiveness. Journal of Asia-Pacific Studies, 33(2), 185-216.
Bae Se Young. 2026, "Why Do Apartment Housing Policies Fail in Korea? Jeonse-Driven Leverage and Policy Ineffectiveness", Journal of Asia-Pacific Studies, vol.33, no.2 pp.185-216. Available from: doi:10.18107/japs.2026.33.2.006
Bae Se Young "Why Do Apartment Housing Policies Fail in Korea? Jeonse-Driven Leverage and Policy Ineffectiveness" Journal of Asia-Pacific Studies 33.2 pp.185-216 (2026) : 185.
Bae Se Young. Why Do Apartment Housing Policies Fail in Korea? Jeonse-Driven Leverage and Policy Ineffectiveness. 2026; 33(2), 185-216. Available from: doi:10.18107/japs.2026.33.2.006
Bae Se Young. "Why Do Apartment Housing Policies Fail in Korea? Jeonse-Driven Leverage and Policy Ineffectiveness" Journal of Asia-Pacific Studies 33, no.2 (2026) : 185-216.doi: 10.18107/japs.2026.33.2.006
Bae Se Young. Why Do Apartment Housing Policies Fail in Korea? Jeonse-Driven Leverage and Policy Ineffectiveness. Journal of Asia-Pacific Studies, 33(2), 185-216. doi: 10.18107/japs.2026.33.2.006
Bae Se Young. Why Do Apartment Housing Policies Fail in Korea? Jeonse-Driven Leverage and Policy Ineffectiveness. Journal of Asia-Pacific Studies. 2026; 33(2) 185-216. doi: 10.18107/japs.2026.33.2.006
Bae Se Young. Why Do Apartment Housing Policies Fail in Korea? Jeonse-Driven Leverage and Policy Ineffectiveness. 2026; 33(2), 185-216. Available from: doi:10.18107/japs.2026.33.2.006
Bae Se Young. "Why Do Apartment Housing Policies Fail in Korea? Jeonse-Driven Leverage and Policy Ineffectiveness" Journal of Asia-Pacific Studies 33, no.2 (2026) : 185-216.doi: 10.18107/japs.2026.33.2.006
