The average cost in renting apartment houses under the so - called jeonse system in Korea has risen for 59 consecutive weeks , reaching 65 . 2 % of the actual home price , the highest level in 11 years . The prices are showing signs of rising faster recently as people prefer renting to buying homes for fear of further falls in home prices , but experts say the higher jeonse ration attracts people to buy a home . Jeonse is a unique home rental system in the country , under which a tenant pays a large lump - sum deposit to lease a home instead of paying monthly rent for usually two years . According to KB Bank on Thursday , the jeonse ratio of apartment houses across the nation stood at 65 . 2 % on average last month , up 0 . 7 % point from the previous month . By region , the figure was 59 . 1 % in Seoul and 60 . 2 % in the area that surrounds Seoul . The figure in regional large cities was higher with 68 . 7 % in six major metropolitan cities . Jeonse prices in Gwangju ( 77 %), Daegu ( 74 . 2 %), Ulsan ( 72 . 2 %), Gyeongbuk ( 73 %) and Jeonbuk ( 72 . 8 %) are close to the price of purchasing . Still , the jeonse ratio shows no signs of easing . According to Korea Appraisal Board , jeonse prices of apartment houses across the nation grew 0 . 26 % in the latest week , posting a 59 straight week rise . It was up 5 . 59 % from the end of last month . Experts said rising jeonse prices stand out in transactions of small - sized apartment houses and this trend will be maintained for the time being . [ 매일경제 모바일 서비스 | 페이스북 ] [ 매일 경제 구독 신청 ] [ 오늘 의 매일 경제 ] [ ⓒ Maeil Business Newspaper & mk . co . kr , All rights reserved ]