Is the Single Prime Home Strategy Over? Why Northern Seoul and the Semiconductor Belt Are Rising as Gangnam Slows

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

What Comparing Rent with Mortgage Interest Alone Leaves Out

In an independent example, borrow KRW 400,000,000 for 30 years with equal monthly principal-and-interest payments and no grace period. Dividing an annual rate of 4% into monthly rates gives a payment of about KRW 1,909,661; applying 5% to the same balance and remaining term gives about KRW 2,147,286, an increase of KRW 237,625. Interest alone in the first month is about KRW 1,333,333 and KRW 1,666,667 respectively, but payments also include principal, so comparing rent with interest alone understates required cash. Conversely, principal repayment reduces debt and should not all be classified as an unrecoverable housing expense. Record monthly cash requirements separately from economic costs, then add acquisition, ownership, repair and equity opportunity costs when comparing purchase and rental alternatives.

Check for yourself

1. Can income excluding bonuses cover repayments and living costs?
2. What will the actual balance and remaining term be when the rate resets?
3. Have the opportunity cost of rental deposits and taxes and repairs after purchase been included consistently on both sides?

Limits of application

This calculates neither a particular household in the video nor a loan that would actually be approved. It compares separate assumptions of unchanged rates to maturity and does not imply that an existing contract necessarily resets this way. Actual payments depend on amortization, day counts, fees and contract and loan terms; eligibility under LTV, income assessment and product limits is not calculated.