Modeling the Korean Chonsei Lease Contract
研究了韩国特有的全税租赁合同，租户支付高额押金（房产价值的40%-80%）但无需月租，到期后房东返还押金。通过期权定价模型和1986-2000年月度数据验证，发现该合同是对韩国经济条件的本土市场回应。
Chonsei is a unique Korean lease contract in which the tenant pays an up–front deposit, typically about 40 to 80% of the value of the property, with no requirement for periodic rent payments. At the contract maturation, the landlord then returns the nominal value of the deposit. Since there is no legal obligation on the part of the landlord to deposit the money in an escrow account, the principal default risk associated with the chonsei contract falls on the tenant. We discuss the development and popularity of this contractual agreement in the context of the public policy initiatives, historical and institutional settings surrounding the Korean housing and housing finance market. We develop a contingent–claims model that recognizes the compound options embedded in the chonsei contract. Theoretical predictions are confirmed by an empirical analysis using monthly data from 1986 to 2000. Our analysis shows that the chonsei contract is an indigenous market response to economic conditions prevalent in Korea.