“You only pay for the amount of water you need, and for electricity you only pay for the amount you use, so why do you have to sign a contract for a house for the entire two years?”
This is what CEO Park Hyeong-jun thought when he decided to start a business while working in the real estate brokerage business and seeing that the demand for short-term rentals was continuously increasing but there was no supply.
When you need a temporary place to stay for a month-long business trip, a project for a few weeks, a semester-long internship, or a move-in period that doesn’t work out, or a place to stay for 2-3 weeks for home interior renovation, it’s not easy to find a suitable place to live in these situations. Hotels are expensive, goshiwon are uncomfortable, and jeonse (long-term lease) or annual contracts are burdensome. Even if you want to rent a house for a short period, there is almost no supply outside of some areas like Gangnam or Itaewon. Real estate agents are not interested in short-term contracts either. Many people have lived with this inconvenience.
“Short-term rentals were an area that was only traded in certain areas such as Gangnam or Itaewon. When I worked as a broker in the provinces, I discovered that there was demand but no supply, so contracts were not being concluded.”
CEO Park Hyung-jun, whom we met at Space V, continued his conversation by making gestures with his hands as if he was drawing a space. He runs the short-term rental brokerage platform ‘Samsam M2 (33㎡)’ and is innovating the domestic housing market based on his 13 years of experience in the real estate field.
The introduction of SamSamM2 has drastically changed the short-term housing market. People can easily sign a contract for a house for the desired period of time through an app. Regardless of the transaction amount, the deposit is set at 330,000 won, and the deposit is managed on the platform and returned to the tenant if there is no problem with moving out, so it is safe. The contract process is also conducted online, eliminating complexity. This change is especially welcomed by young single-person households and office workers who need to move frequently.
Market discovery born from real estate brokerage experience
“When I started my brokerage business in Gangnam, I didn’t think short-term rentals were a special form of transaction. But as I moved to other areas like Suwon, Pyeongtaek, and Sejong, I realized that there were almost no short-term rental contracts. The imbalance between supply and demand was clear.”
Pointing to the monitor in the conference room, CEO Park Hyung-jun explained the market imbalance. To solve this problem, SamSamM2 introduced an online contract system and a unified deposit system of 330,000 won. This is because, due to the nature of short-term rentals, it was inefficient to search for a house by walking around in a situation where one had to find a house in a hurry. It was especially difficult to find a house in a different area.
Short-term rentals change the living environment
“The reason there was a shortage of supply for short-term rentals was because the inconvenience of frequent contracts was felt to be greater than the additional income from short-term rentals. I thought about how to relieve landlords’ fatigue.”
CEO Park Hyung-jun continued his explanation by showing the growth graph of SamSamM2. The transaction amount increased by more than 3.2 times from KRW 26 billion in 2023 to KRW 84 billion in 2024. The number of contracts increased to 70,000.
“The secret to growth is continuous improvement. Rather than one big event, it’s about constantly improving what you’re doing and making sure that your direction is focused on increasing customer value.”
There were crises. Right after the service was launched, demand plummeted as travel between cities and countries was blocked due to the coronavirus outbreak. There was even a moment when I considered quitting the business due to uncertainty about the future.
“The moments of crisis have become turning points for our current growth. The end of COVID has actually presented us with greater opportunities.”
Short-term rentals as a new housing alternative for young single-person households
Another strength of SamSamM2 is its high contract completion rate. The statistic that on average, 1 out of 2.2 people interested in a property will sign a contract is a very high figure in the market.
“The key to closing a contract is transparency of information. One of the reasons why real estate brokerage is not trusted by the public is the incompleteness and asymmetry of information. We have made it so that landlords provide tenants with the most detailed and honest room information possible.”
CEO Park Hyung-jun showed the real-time listing information. However, the small deposit of 330,000 won was a source of anxiety for landlords. This was because there were concerns about damage to the property or non-payment of management fees. Accordingly, Space V introduced the first tenant compensation liability insurance in Korea called ‘SamSam Care’ in 2024.
“My first job was at an insurance company, which helped me solve the problem. Through SamSamCare, landlords are covered for damages such as breakage, fire, and special cleaning.”
Looking out of the conference room at the dense forest of apartments in Seoul, CEO Park Hyung-jun sketched out the future of the short-term rental market.
“It has been reported that single-person households do not live in one house for a long time. For them, it is more important to find a house in the area they need for the period they need than a stable house they can live in for a long time.”
Changes in values about jobs and workplaces are also factors that increase the demand for short-term rentals. This is because the younger generation today is choosing to move around to an environment where they can demonstrate their abilities rather than working at one workplace for a long time.
As the interview went on for over an hour, CEO Park Hyung-jun leaned back in his chair and changed the topic to the social value of short-term rentals.
“There are many people looking for short-term housing, but the fact that they were unable to sign a contract for a house is a social loss. They had to stay in more expensive hotels, uncomfortable motels, or goshiwon for a long time.”
CEO Park Hyung-jun also suggested a way to utilize empty houses in local cities. 'If empty houses are repaired at minimal cost and used as short-term rental housing, urban environment improvement projects can be carried out even with a small budget.'
“If we provide a period of consideration for those who dream of returning to farming or rural life to live in the area of their choice and make a final decision, short-term rentals will have great social significance.”
Park Hyung-jun left his final words as he stood up and walked to the window. “Just like a faucet that only turns on when needed, shouldn’t the house be able to be rented only for the period of time needed? Changing the way homes and people are connected is what we do.”
We return to the question we asked at the beginning of the interview. It is a simple question: why do we have to sign a contract for a house for two years when we only pay for the amount of water and electricity we use? CEO Park Hyung-jun and SamSamM2 are looking for an answer.
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