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SPECIAL ACT ON THE PROTECTION OF LESSEES OF INSOLVENT CONSTRUCTED PUBLIC RENTAL HOUSING

Act No. 8252, Jan. 19, 2007

Amended by Act No. 8852, Feb. 29, 2008

Act No. 8966, Mar. 21, 2008

Act No. 8973, Mar. 21, 2008

Act No. 9511, Mar. 20, 2009

Act No. 9864, Dec. 29, 2009

Act No. 10220, Mar. 31, 2010

Act No. 11690, Mar. 23, 2013

Act No. 11802, May 22, 2013

Act No. 12251, Jan. 14, 2014

Act No. 12989, Jan. 6, 2015

Act No. 13498, Aug. 28, 2015

Act No. 13499, Aug. 28, 2015

 Article 1 (Purpose)
The purpose of this Act is to protect lessees and support the stabilization of residence by purchasing constructed public rental housing which have gone into bankruptcy, etc. under subparagraph 7 of Article 2 of the Rental Housing Act (referring to the Act before the amendment by the Act No. 13499; hereinafter the same shall apply) and supplying public housing, etc. <Amended by Act No. 8966, Mar. 21, 2008; Act No. 9511, Mar. 20, 2009; Act No. 12251, Jan. 14, 2014; Act No. 13499, Aug. 28, 2015>
 Article 2 (Objects of Application)
(1) This Act shall only apply to rental housing which have gone into bankruptcy, etc. under subparagraph 7 of Article 2 of the Rental Housing Act (hereafter referred to as "bankruptcy, etc." in this Article) before this Act enters into force, as constructed public rental housing. <Amended by Act No. 11802, May 22, 2013>
(2) A lease contract which is the standard of the recovery of a leasehold deposit of a lessee pursuant to Article 7 shall be limited to a contract entered into by and between a leasing service business operator and a lessee before the day bankruptcy, etc. has occurred: Provided, That a lease contract first concluded after bankruptcy, etc. of a lessee has occurred may be recognized where the day of occupying the rental housing such as the fixed date is proved. <Amended by Act No. 11802, May 22, 2013>
[This Article Wholly Amended by Act No. 9864, Dec. 29, 2009]
 Article 3 (Formulation of Measures for Protection of Lessees)
The State and local governments shall formulate measures for protection referred to in the following subparagraphs for lessees (including lessees who vacated insolvent rental housing in accordance with auction procedures before this Act enters into force, but have not been refunded a leasehold deposit) of insolvent rental housing, etc. referred to in subparagraph 8 of Article 2 of the Rental Housing Act (hereinafter referred to as "insolvent rental housing"): <Amended by Act No. 8966, Mar. 21, 2008; Act No. 9511, Mar. 20, 2009; Act No. 12251, Jan. 14, 2014>
1. Measures for purchasing insolvent rental housing and for conversion into supply, etc. of the same as public housing;
2. Measures for support of funds required for conversion into sale in lots, participation in auction, etc. of lessees, and the conditions of support, etc.;
3. Other measures deemed necessary for the protection of lessees.
 Article 4 (Implementor of Purchasing Project of Insolvent Rental Housing)
A public housing business operator under Article 4 of the Special Act on Public Housing (hereinafter referred to as "house-purchasing project implementor") shall execute a purchasing project of insolvent rental housing. <Amended by Act No. 9511, Mar. 20, 2009; Act No. 12251, Jan. 14, 2014; Act No. 13498, Aug. 28, 2015>
 Article 5 (Purchasing Method)
Insolvent rental housing shall be purchased only by method of auction under the Civil Execution Act: Provided, That this shall not apply to cases where a house-purchasing project implementor and lessees have so agreed.
 Article 6 (Request for Purchasing)
(1) The representatives' conference of lessees (hereinafter referred to as the "representatives' conference of lessees") of insolvent rental housing, etc., the establishment of which has been reported under the provisions of Article 30 of the Rental Housing Act, may request a house-purchasing project implementor to purchase insolvent rental housing: Provided, That where the representatives' conference of lessees is not been formed or neglects to request purchasing, a lessee who falls under the requirements prescribed by Presidential Decree may request the house-purchasing project implementor to purchase insolvent rental housing. <Amended by Act No. 8966, Mar. 21, 2008>
(2) Where the representatives' conference of lessees or a lessee (hereinafter referred to as "representatives' conference of lessees, etc.") under the provisions of paragraph (1) requests purchasing the relevant insolvent rental housing, it or he/she shall submit a request for purchasing, accompanied with the following documents: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
1. A request for purchasing;
2. A lease contract concluded by and between a leasing service business operator and a lessee;
3. Documentary evidence which can confirm that a lessee has paid a leasehold deposit;
4. The current status of payment of rent and management expenses and documentary evidence thereof;
5. The current status of payment of rental fees and maintenance fees and documentary evidence therof;
6. Other matters determined by the Ministry of Land, Infrastructure and Transport.
(3) Matters necessary for procedures for and methods of request for purchasing, etc. under the provisions of paragraphs (1) and (2) shall be determined by the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(4) A house-purchasing project implementor may ascertain whether documents submitted by the representatives' conference of lessees, etc. under the provisions of paragraph (2) are true and correct, and where a dispute arises in connection therewith, he/she may request a rental housing dispute mediation committee (hereinafter referred to as the "Rental Housing Dispute Mediation Committee") established under the provisions of Article 33 of the Rental Housing Act to mediate the dispute. <Amended by Act No. 8966, Mar. 21, 2008>
 Article 7 (Recovery of Leasehold Deposit of Lessees, etc.)
(1) Where a house-purchasing project implementor has acquired insolvent rental housing by method of auction, etc. under the provisions of Article 5, he/she shall pay lessees the amount after deducting an amount referred to in the following subparagraphs from leasehold deposits of lessees confirmed and mediated by the house-purchasing project implementor or the Rental Housing Dispute Mediation Committee: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
1. An amount allotted to a lessee by an executing court;
2. Unpaid rent of a lessee;
3. A lessee's unpaid rental fee and maintenance fee on part for common use;
4. Other expenses determined by the Ministry of Land, Infrastructure and Transport.
(2) Paragraph (1) shall apply mutatis mutandis to a case where a person who resides in the housing, which a small and medium enterprise under Article 2 of the Framework Act on Small and Medium Enterprises, a corporation for an intra-company labor welfare fund incorporated under the Framework Act on Labor Welfare, or other corporate prescribed by Presidential Decree held a lease, completed a resident registration. <Newly Inserted by Act No. 11802, May 22, 2013>
(3) In cases of insolvent rental housing on which a person entrusted with affairs regarding employment and management of the Housing Urban Fund pursuant to Article 10 (2) and (3) of the Act on Housing Urban Fund (hereinafter referred to as "trustee of the fund") has collected loans and interest thereon of the Housing Urban Fund under the Act on Housing Urban Fund (hereinafter referred to as "Housing Urban Fund") by means of an auction, etc., the trustee of the fund may pay the collected money of interest on the loans of the National Housing Fund to a house-purchasing project implementor who has acquired the relevant insolvent rental housing as the recovery of leasehold deposits of lessees (including corporations pursuant to paragraph (2); hereinafter the same shall apply in this Article) calculated under the provisions of paragraph (1). <Amended by Act No. 8973, Mar. 21, 2008; Act No. 11802, May 22, 2013; Act No. 12989, Jan. 6, 2015>
(4) Where a house-purchasing project implementor has been paid the collected money of interest of loans of the Housing Urban Fund by a trustee of the fund pursuant to paragraph (3), the house-purchasing project implementor shall use it as the recovery for leasehold deposits of lessees of the relevant insolvent rental housing pursuant to paragraph (1). <Amended by Act No. 11802, May 22, 2013; Act No. 12989, Jan 6, 2015>
(5) Any lessee who intends to have a leasehold deposit referred to in paragraph (1) recovered shall request an executing court to allot the leasehold deposit in a period stipulated by Article 84 of the Civil Execution Act. <Amended by Act No. 11802, May 22, 2013>
 Article 8 (Investigation of Conditions of Facilities)
Where a house-purchasing project implementor investigates, by request for purchasing insolvent rental housing, the conditions of facilities, repaired items, etc. of the relevant insolvent rental housing, the head of the competent Si/Gun/Gu, a leasing service business entity, the representatives' conference of lessees, etc. or a trustee of the fund shall cooperate with the house-purchasing project implementor so that the insolvent rental housing is purchased smoothly.
 Article 9 (Designation and Announcement of Houses subject to Purchase)
(1) Where a house-purchasing project implementor intends to purchase insolvent rental housing, he/she shall request the Ministry of Land, Infrastructure and Transport to designate it as housing subject to purchase. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(2) The Ministry of Land, Infrastructure and Transport may formulate a yearly purchasing plan, and designate and announce insolvent rental housing which a house-purchasing project implementor has requested in order to purchase as housing subject to purchase. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(3) Matters necessary for procedures for and methods of request for designation of housing subject to purchase, formulation of a yearly purchasing plan, etc. pursuant to paragraphs (1) and (2) shall be determined by the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
 Article 10 (Supply, etc as Public Housing, etc.)
(1) Where a house-purchasing project implementor has purchased insolvent rental housing pursuant to Article 5, he/she may supply it as public housing, etc. In such cases, housing supplied as housing, other than public housing, shall be deemed constructed rental housing referred to in subparagraph 2 of Article 2 of the Rental Housing Act. <Amended by Act No. 8973, Mar. 21, 2008; Act No. 9511, Mar. 20, 2009; Act No. 12251, Jan. 14, 2014>
(2) Where a house-purchasing project implementor has supplied housing as public housing pursuant to paragraph (1), he/she shall preferentially select lessees of insolvent rental housing as occupants, as prescribed by the Rules on Housing Supply. <Amended by Act No. 9511, Mar. 20, 2009; Act No. 12251, Jan. 14, 2014>
(3) Where a house-purchasing project implementor provides insolvent rental housing as public housing, etc. pursuant to the former part of paragraph (1) and converses it for sale in lots under the Rental Housing Act, the first day of reckoning an obligatory rental period pursuant to Arti22le 16 of the same Act shall be the first date of beginning leases of insolvent rental housing. <Newly Inserted by Act No. 11802, May 22, 2013; Act No. 13498, Aug. 28, 2015>
(4) In cases of supplying housing as public housing, etc. pursuant to paragraph (1), matters necessary for qualifications for residence, conditions of lease, etc. shall be prescribed by Presidential Decree. <Amended by Act No. 9511, Mar. 20, 2009; Act No. 11802, May 22, 2013; Act No. 13498, Aug. 28, 2015>
(5) Where any person, other than a house-purchasing project implementor, has purchased insolvent rental housing, he/she shall lease housing to lessees (limited to lessees not in violation of Article 19 of the Rental Housing Act and wishes to continuously reside in the same rental housing) of the relevant insolvent rental housing for a period prescribed by Presidential Decree within three years on the previous conditions of lease agreed by and between lessees and a leasing service business entity. <Amended by Act No. 8973, Mar. 21, 2008; Act No. 11802, May 22, 2013>
 Article 11 (Offer of Financial Support and Housing Urban Fund)
(1) Where a house-purchasing project implementor purchases insolvent rental housing, the State and local governments may offer, at the level of support for construction funds for public housing, financial support and the Housing Urban Fund to the h1use-purchasing project implementor for purchasing expenses and incidental expenses falling under the following subparagraphs: <Amended by Ac11111t No. 9511, Mar. 20, 2009; Act No. 11802, May 22, 2013; Act No. 12251, Jan. 14, 2014; Act No. 12989, Jan. 6, 2015>
1. The purchase price under the Civil Execution Act (the sale price in cases of purchasing pursuant to the proviso to Article 5);
2. Repair expenses of houses and incidental facilities;
3. Recovery expenses for leasehold deposits paid to lessees pursuant to Article 7 (1) (where a house-purchasing project implementor is paid the collected money of interest of loans of the Housing Urban Fund by a trustee of the fund pursuant to Article 7 (3), the same amount shall be deducted).
(2) Matters necessary for procedures for and methods of offer of financial support and the Housing Urban Fund pursuant to paragraph (1) shall be prescribed by Presidential Decree. <Amended by Act No. 12989, Jan 6, 2015>
 Article 12 (Transfer of Preemptive Right)
Where the representatives' conference of lessees, etc. has requested purchasing pursuant to Article 6, the preemptive right given to lessees (where the representatives' conference of lessees has requested purchasing, referring to lessees who are the members thereof) pursuant to Article 22 of the Rental Housing Act shall be deemed to have been transferred to a house-purchasing project implementor. In such cases, the house-purchasing project implementor may report the exercise of preemptive rights without offering security prescribed by Article 113 of the Civil Execution Act. <Amended by Act No. 8966, Mar. 21, 2008>
 Article 13 (Postponement of Deadline of Sale)
Where a house-purchasing project implementor or the representatives' conference of lessees, etc. requests, a trustee of the fund shall request the competent court to postpone the deadline of sale of an auction on houses subject to purchase.
 Article 14 (Prohibition of Seizure of Recovery Amount of Leasehold Deposit)
A leasehold deposit recovered pursuant to Article 7 shall not be seized pursuant to Article 246 of the Civil Execution Act applicable mutatis mutandis thereto.
 Article 15 (Reduction and Exemption of National Taxes and Local Taxes)
Where a house-purchasing project implementor purchases insolvent rental housing under this Act, the State and local governments may reduce or exempt acquisition tax or registration and license tax, as prescribed by the Restriction of Special Local Taxation Act, and may reduce or exempt gross real estate tax, corporate tax, acquisition tax, registration and license tax or property tax imposed on insolvent rental housing, as prescribed by the Restriction of Special Taxation Act and the Restriction of Special Local Taxation Act. <Amended by Act No. 10220, Mar. 31, 2010>
 Article 16 (Relationship with other Acts)
(1) Matters not prescribed in this Act in connection with purchasing insolvent rental housing shall be as prescribed by the Housing Act, the Rental Housing Act, the Special Act on Public Housing or such. <Amended by Act No. 9511, Mar. 20, 2009; Act No. 12251, Jan 14, 2014; Act No. 13498, Aug. 28, 2015>
(2) The definition of terms used in this Act, such as constructed public rental housing and public housing, shall be in accordance with the Rental Housing Act and the Special Act on Public Housing. <Amended by Act No. 9511, Mar. 20, 2009; Act No. 12251, Jan 14, 2014; Act No. 13498, Aug. 28, 2015>
 Article 17 (Penalty Provisions)
Any person who has submitted documents pursuant to the subparagraphs of Article 6 (2), such as a lease contract concluded by and between a leasing service business operator and lessees, which are falsified, shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 20 million won.
ADDENDUM
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 8966, Mar. 21, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 13 Omitted.
ADDENDA <Act No. 8973, Mar. 21, 2008>
(1) (Enforcement Date) This Act shall enter into force three months after the date of its promulgation.
(2) (Applicability to Duties of Lease of Insolvent Rental Housing Purchased) The amended provisions of Article 10 (4) shall begin applying to the first insolvent rental house purchased by a person, other than a house-purchasing project implementor, after this Act enters into force.
ADDENDA <Act No. 9511, Mar. 20, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force one month after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 9 Omitted.
ADDENDA <Act No. 9864, Dec. 29, 2009>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Transitional Measures concerning Lease Contract) In cases of constructed public rental housing which has gone into bankruptcy, etc. before April 20, 2007, a lease contract which is the standard of the recovery of a leasehold deposit of a lessee pursuant to Article 7 shall, notwithstanding the amended provisions of Article 2 (2), be in accordance with the previous provisions.
ADDENDA <Act No. 10220, Mar. 31, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2011.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) Omitted.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 11802, May 22, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability concerning Objects subject to Purchase)
The amended provision of Article 2 (1) shall begin applying to insolvent rental housing that a house-purchasing project implementor first purchases after this Act enters into force, for constructed public rental housing which has gone into bankruptcy, etc. before this Act enters into force.
ADDENDA <Act No. 12251, Jan. 14, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 12989, Jan. 6, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2015.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 13498, Aug. 28, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force four months after the date of its promulgation. (Proviso Omitted)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 13499, Aug. 28, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force four months after the date of its promulgation.
Articles 2 through 16 Omitted.