Part 1. Vocabulary
|
speculation |
/ˌspekyəˈlāSH(ə)n/ n. Example: “…the company's move into property speculation.” |
|
assets |
/ˈaset/ n. - a useful or valuable thing, person, or quality: Example: An asset can be thought of as something that, in
the future, can generate cash flow… |
|
gap |
/ɡap/ n. - an unfilled space or interval; a break in continuity: |
|
in lieu of |
/ ˈɪn ˈlu ɒv / idiom - in place of something |
|
tough |
/ˈtʌf/ adj. - very difficult to do or deal with Example: It's been a tough year for our family. |
Part 2.
Comprehension Questions
What raised the concern of the
lawmaker in South Korea over apartment purchases?
How many apartment purchases have been
made by children since 2017?
What have parents of the young
homeowners been doing on their financial assets?
What is a “jeonse” tenant?
What is your opinion about the real estate speculation among young
South Koreans?
Part 3.
Article Reading
A growing number of South Koreans
under the age of 10 have purchased apartments with financial support from their
parents, a lawmaker said Oct. 4, raising concerns over real estate speculation
and financial misconduct.
The number of apartment purchases by children under 10 totaled 552 from
September 2017 to last month, and their combined value amounted to 104.7
billion won ($88.2 million), according to data from the Ministry of Land,
Infrastructure, and Transport submitted to Rep. Kim Hoi-jae of the ruling Democratic
Party of Korea.
The young homeowners’ parents appeared to have transferred financial assets to
their children to buy the apartments as part of a “gap investment” strategy,
Kim said.
This involves purchasing homes with “jeonse” tenants, who pay large lump-sum
deposits in lieu of monthly rent.
Using a jeonse deposit, a gap investor can buy a home with a modest down
payment -- the difference between the deposit and the price of the home.
More than 80 percent of the apartment purchases in the analysis involved rental
homes. Nearly 67 percent were financed by rental deposits paid to the young
landlords’ parents. Those backed by inherited cash accounted for 59 percent,
data showed.
Apartments sold to 8-year-old children were worth a combined 18.2 billion won,
while the corresponding figures were 18.19 billion won for 9-year-olds and 12.8
billion won for 7-year-olds.
“Real estate speculation among young South Koreans is widening inequality of
assets and wealth. Calls are rising for tougher measures to supervise any
possible illegal inheritance for speculative purposes,” Kim said.
from an article written by
Choi Jae-hee (cjh@heraldcorp.com)
http://www.theinvestor.co.kr/view.php?ud=20211005000237