Jeonse

Reading the Economist newspaper the other day I stumbled upon an article about an interesting practice, called Jeonse, which happens in South Korea.

Rather than pay rent fees to the landlord, rent is a sum of money paid to the landlord for living in an apartment/residence they own which generally cant be recouped, they pay a fixed sum of money (typically between 50-100% of the market value of the property) to the landlord. The landlord then invests this money, and when the lease on the property has expired, pays the renters back their fixed sum.

This way the renters can save up to afford their own house whilst the landlord lives off the interest he accumulates by investing the lump sum. [...]