Korean apartments face a complete reshuffle; next year’s home prices may be alarming (Full interview with SNU Professor Kim Kyung-min)

An independent exercise, not a statement by the video creator or verification of every claim in the video.

A higher deposit increases both cash and the repayment obligation

Using the same arbitrary monetary unit throughout, suppose a hypothetical home is worth 100, its bank loan is 20 and the jeonse deposit is 50. The owner’s net assets are 30. If the next contract raises the deposit to 60 with the property value and loan unchanged, cash increases by 10, but so does the repayment liability. Property of 100 plus cash of 10, less the loan of 20 and deposit of 60, still leaves net assets of 30; the cash receipt of 10 is not investment profit. At the following maturity, 60 is owed back. If the next deposit is 45, the repayment gap is 15. Even retaining all the earlier cash of 10 leaves a shortfall of 5; if that cash was spent, another 15 must be found. Separate cash extracted through deposit increases from cumulative profits and identify funding if the next tenant is delayed or the deposit falls.

Check for yourself

1. Have you increased the deposit liability on the same ledger as the extra cash received?
2. Can current cash cover the difference between the amount due back and the next deposit?
3. How will loan and deposit repayments be funded if a new tenant is delayed or the sale price falls?

Limits of application

This hypothetical calculation does not reproduce a real property price or contract. Property value and loan balance are fixed; interest, taxes, brokerage, repairs, legal priority and guarantee-payment delays are excluded. Legal protections do not unconditionally guarantee the amount and timing of recovery; actual title, senior claims and guarantee eligibility require separate checks. The calculation does not assume that the deposit is an absolute floor under the sale price.