Examining Sub-Tenure Choice of Renter Households Amid the Expansion of Rental Deposit Loans: Focus on Changing Roles of Economic Characteristics and Publicly Supported Deposit Loans

Since the 2000s, the rental market in South Korea has undergone a structural shift, characterized by a decline in Jeonse (deposit-only renting) households and a rise in Wolse (monthly-paying renting) households. In this context, government-backed loans for rent deposits have significantly expanded as a policy tool to reduce housing cost burdens. However, previous studies have focused on socioeconomic determinants of tenure choice, with limited attention paid to the role of deposit loans in shaping sub-tenure choice. To address this gap, this study examines whether income, assets, and policy-supported loans for deposit significantly influence the sub-tenure choice between Wolse and Jeonse, and if so, how the magnitude of the influence changed over time. Using data from the Korea Housing Survey, the analysis reveals that households with higher incomes, lower assets, and without access to policy-supported loans are more likely to choose Wolse over Jeonse and to reduce the proportion of rent paid as a deposit. Notably, the effect of utilizing deposit loans has increased over time, weakening the association between household income and both tenure choice and deposit proportions. These findings underscore the growing impact of financialization in the rental market, particularly through the expansion of deposit loans. They also highlight the need for protective measures for households reliant on such financial instruments, especially amid structural shifts in the housing market, such as rising interest rates or declining housing prices.