ENFORCEMENT DECREE OF THE COMMERCIAL BUILDING LEASE PROTECTION ACT
Presidential Decree No. 19507, jun. 12, 2006
Amended by Presidential Decree No. 20970, Aug. 21, 2008
Presidential Decree No. 21988, Jan. 11, 2010
Presidential Decree No. 22151, May 4, 2010
Presidential Decree No. 22283, Jul. 21, 2010
Presidential Decree No. 17757, Oct. 14, 2010
Presidential Decree No. 23488, Jan. 6, 2012
Presidential Decree No. 23807, May 23, 2012
Presidential Decree No. 25036, Dec. 30, 2013
Presidential Decree No. 26637, Nov. 13, 2015
Presidential Decree No. 28611, Jan. 26, 2018
Presidential Decree No. 29671, Apr. 2, 2019
The purpose of this Decree is to prescribe matters mandated by the Commercial Building Lease Protection Act and matters necessary for enforcement thereof. <Amended by Presidential Decree No. 20970, Aug. 21, 2008; Presidential Decree No. 22283, Jul. 21, 2010>
| Article 2 (Scope of Application) |
| (1) | "Amount of security deposit ... prescribed by Presidential Decree” in the proviso to Article 2 (1) of the Commercial Building Lease Protection Act (hereinafter referred to as the "Act") means the following amounts: <Amended by Presidential Decree No. 20970, Aug. 21, 2008; Presidential Decree No. 22283, Jul. 21, 2010; Presidential Decree No. 25306, Dec. 30, 2013; Presidential Decree No. 28611, Jan. 26, 2018; Presidential Decree No. 29671, Apr. 2, 2019> |
| 1. | Seoul Metropolitan City: 900 million won; |
| 3. | Metropolitan city (excluding areas included in the overpopulation control areas prescribed in the Seoul Metropolitan Area Readjustment Planning Act; Guns; and Busan Metropolitan City), Sejong Special Self-Governing City, Paju city, Hwaseong city, Ansan city, Yongin city, Gimpo city and Gwangju city: 540 million won; |
| 4. | Other areas: 370 million won. |
| (2) | Where any rent exists other than deposits, as described in Article 2 (2) of the Act, the rental amount shall be calculated on a monthly basis. |
| (3) | "Rate prescribed by Presidential Decree" in Article 2 (2) of the Act means 1/100. <Amended by Presidential Decree No. 22283, Jul. 21, 2010> |
| Article 3 (Matters to Be Entered in the Fixed Date Register) |
| (1) | Any lessee who possesses the original document of the lease contract certificate of commercial buildings may apply for assigning the fixed date with the head of a tax office having the jurisdiction over the commercial buildings pursuant to Article 4 (1) of the Act: Provided, That in cases of business entities to whom per-business unit taxation is imposed pursuant to Article 8 (3) of the Value-Added Tax Act, they may apply for assignment of a fixed date with the head of a tax office having jurisdiction over the headquarters or main office of the relevant business entities. |
| (2) | The fixed date shall be assigned in such a manner that the head of a tax office (hereinafter referred to as "the head of the competent tax office"), upon receipt of an application for assignment of the fixed date pursuant to paragraph (1), indicates the number of the fixed date, the date when the fixed date is assigned and the head of the competent tax office in the original document of a lease contract certificate of commercial buildings and affixes an official seal thereon. |
| (3) | The head of the competent tax office shall assign a new fixed date, depending on the application filed by a lessee, where a lease contract is revised or renewed. |
| (4) | The head of the competent tax office shall enter the following matters in the fixed date register pursuant to Article 4 (2) of the Act: |
| 1. | Number of the fixed date; |
| 2. | The date when the fixed date is assigned; |
| 3. | Personal information of the lessor and the lessee: |
| (a) | In cases of natural persons: Name or resident registration number (foreign registration number in cases of foreigners); |
| (b) | In cases of corporations: Name of the corporation, name of the representative or the corporate registration number; |
| (c) | In cases of groups, other than corporations: Name of the group, name of the representative, business registration number or identification number; |
| 5. | The location of the commercial building, subject-matter of the lease and the size thereof; |
| (5) | Except as prescribed in paragraphs (1) through (4), matters necessary for assigning the fixed date shall be prescribed by Ordinance of the Ministry of Justice. |
[This Article Wholly Amended by Presidential Decree No. 26637, Nov. 13, 2015]
| Article 3-2 (Scope of Interested Parties) |
Parties interested in the lease of commercial buildings who can request information (hereinafter referred to as "interested parties") pursuant to Article 4 (3) of the Act shall be any of the following: | 1. | Lessor or lessee of a lease contract of the relevant commercial building; |
| 2. | Owner of the relevant commercial building; |
| 3. | Persons prescribed by Ordinance of the Minister of Justice, from among rightful claimants recorded in the register of the relevant commercial building or the land thereof; |
| 4. | Financial institutions, etc. which have succeeded to the preferential payment right pursuant to Article 5 (7) of the Act; |
| 5. | Any person who has the status or right corresponding to that of a person specified in subparagraphs 1 through 4, who has received the judgement of a court with regard to the provision of the lease information. |
[This Article Newly Inserted by Presidential Decree No. 26637, Nov. 13, 2015]
| Article 3-3 (Scope of Information which can be Requested by Interested Parties) |
| (1) | The party to a lease contract prescribed in subparagraph 1 of Article 3-2 may apply for the perusal or delivery of a document in which the following matters are entered, with the head of the competent tax office: |
| 1. | Personal information of a lessor or lessee (referring to information prescribed in Article 3 (4) 3: Provided, That in cases of resident registration numbers or foreign registration numbers, it is limited to the first six numbers); |
| 2. | Location of the commercial building, subject-matter of the lease or size thereof; |
| 3. | The date when the application for business registration is filed; |
| 4. | Deposits, rents or period of the lease; |
| 5. | The date when the fixed date is assigned; |
| 6. | Where the lease contract is revised or renewed, the date when the lease contract is revised or renewed, the date when a new fixed date is assigned, revised deposits or rents or the period of the lease; |
| 7. | Other matters prescribed by Ordinance of the Minister of Justice. |
| (2) | Interested parties, other than the parties to a lease contract, or any person who intends to conclude a lease contract may apply for the perusal or delivery of a document, in which the following matters are entered, with the head of the competent tax office: |
| 1. | Location of the commercial building, subject-matter of the lease or the size thereof; |
| 2. | The date when an application for business registration is filed; |
| 3. | Deposits, rents or the period of the lease; |
| 4. | The date when the fixed date is assigned; |
| 5. | Where the lease contract is revised or renewed, the date when the lease contract is revised or renewed, the date when a new fixed date is assigned, revised deposits or rents or the period of the lease; |
| 6. | Other matters prescribed by Ordinance of the Ministry of Justice. |
| (3) | Except as prescribed in paragraphs (1) and (2), matters necessary for provision of information on lease, etc. shall be prescribed by Ordinance of the Ministry of Justice. |
[This Article Newly Inserted by Presidential Decree No. 26637, Nov. 13, 2015]
| Article 4 (Standards for Requests for Increase of Rents) |
A request for increasing rents or deposits prescribed in Article 11 (1) of the Act shall not exceed 5/100 of the rents or deposits as at the time when the request is made. <Amended by Presidential Decree No. 20970, Aug. 21, 2008; Presidential Decree No. 28611, Jan. 26, 2018>
| Article 5 (Calculation Rate in Cases of Change into Monthly Rates) |
| (1) | "Rate prescribed by Presidential Decree" prescribed in subparagraph 1 of Article 12 of the Act means 12 percent per annum. |
| (2) | "Multiple prescribed by Presidential Decree" prescribed in subparagraph 2 of Article 12 of the Act means 4.5 times. |
[This Article Wholly Amended by Presidential Decree No. 25036, Dec. 30, 2013]
| Article 6 (Scope of Lessees Subject to Preferential Payment) |
Any lessee subject to preferential payment pursuant to Article 14 of the Act shall be a lessee for whom the total of sums converted pursuant to Article 2 (2) of the Act is not more than the following amounts, where there are deposits and rents: <Amended by Presidential Decree No. 20970, Aug. 21, 2008; Presidential Decree No. 22283, Jul. 21, 2010; Presidential Decree No. 25036, Dec. 30, 2013> | 1. | Seoul Metropolitan Area: 65 million won; |
| 4. | Other areas: 30 million won. |
| Article 7 (Scope of Deposits subject to Preferential Payment) |
| (1) | The scope of the fixed amount, from among deposits subject to preferential payment, pursuant to Article 14 of the Act shall not exceed the following amounts: <Amended by Presidential Decree No. 20970, Aug. 21, 2008; Presidential Decree No. 22283, Jul. 21, 2010; Presidential Decree No. 25036, Dec. 30, 2013> |
| 1. | Seoul Metropolitan Area: 22 million won; |
| 4. | Other areas: 10 million won. |
| (2) | Where the fixed amount, from among deposits of lessees, exceeds 1/2 of the value of a commercial building, the preferential payment right is valid only for the amount corresponding to 1/2 of the value of the commercial building. <Amended by Presidential Decree No. 25036, Dec. 30, 2013> |
| (3) | Where at least two lessees are leasing in a commercial building and the total of the fixed amounts, from among respective deposits, exceeds 1/2 of the value of the commercial building, the amount remaining after dividing the amount corresponding to 1/2 of the value of the commercial building by the ratio of the fixed amount, among deposits of each lessee, to the total sum of the fixed amount, among such respective deposits, shall be deemed the fixed amount among deposits of each lessee. <Amended by Presidential Decree No. 25036, Dec. 30, 2013> |
| Article 8 (Establishment of Commercial Building Dispute Conciliation Committees) |
| (1) | Pursuant to the former part of Article 20 (1) of the Act, a commercial building dispute conciliation committee (hereinafter referred to as "conciliation committee") shall be established in each of the following branches of the Korea Legal Aid Corporation established under Article 8 of the Legal Aid Act (hereinafter referred to as the "Corporation"): |
| 1. | Seoul Central Chapter; |
| (2) | The jurisdictional areas of each conciliation committee established in the branches of the Corporation pursuant to paragraph (1) shall be as specified in the attached Table. |
[This Article Newly Inserted by Presidential Decree No. 29671, Apr. 2, 2019]
| Article 9 (Matters to Be Deliberated on and Mediated by Conciliation Committees) |
"Disputes over the lease of commercial buildings, as prescribed by Presidential Decree" in Article 20 (2) 6 of the Act means the following disputes: | 1. | Disputes over fulfillment of a lease contract and interpretation of the terms and conditions of a lease contract; |
| 2. | Disputes over renewal and termination of a lease contract; |
| 3. | Disputes over claims for damages due to the nonfulfillment of a lease contract; |
| 4. | Disputes over burden of expenses, including the remuneration of a licensed real estate agent; |
| 5. | Disputes over use of a written standard contract on a commercial building lease under Article 19 of the Act; |
| 6. | Other disputes corresponding to those referred to in subparagraphs 1 through 5, the conciliation of which is deemed necessary by the chairperson of a conciliation committee (hereinafter referred to as "chairperson"). |
[This Article Newly Inserted by Presidential Decree No. 29671, Apr. 2, 2019]
| Article 10 (Secretariat of Conciliation Committee Established in Each Chapter of Corporation) |
| (1) | The secretariat of a conciliation committee established in each branch of the Corporation pursuant to Article 20 (3) of the Act (hereinafter referred to as "secretariat") shall have an executive secretary, and one examiner and one investigator under the executive secretary. |
| (2) | The executive secretary shall be appointed by the president of the Corporation and may concurrently serve as a member of the conciliation committee. |
| (3) | The examiner and the investigator shall be appointed by the president of the Corporation. |
| (4) | The executive secretary shall exercise overall control of the affairs of the secretariat, and shall direct and supervise personnel under his or her jurisdiction. |
| (5) | The examiner shall take charge of the following affairs: |
| 1. | Identification of the issues and legal review of cases applied for dispute conciliation; |
| 2. | Direction on and supervision of the affairs under the examiner's responsibility; |
| 3. | Other affairs deemed necessary by the chairperson to deal with the affairs of the conciliation committee. |
| (6) | The investigator shall take charge of the following affairs: |
| 1. | Receipt of applications for dispute conciliation; |
| 2. | Guidance on civil petitions related to the application for dispute conciliation; |
| 3. | Service and notification to the parties to the conciliation; |
| 4. | Investigation of facts necessary for the conciliation of disputes; |
| 5. | Other affairs deemed necessary by the chairperson to deal with the affairs of the conciliation committee. |
| (7) | The executive secretary and the examiner shall have the qualifications of an attorney-at-law. |
[This Article Newly Inserted by Presidential Decree No. 29671, Apr. 2, 2019]
| Article 11 (Secretariat of City/Do Conciliation Committee) |
Where any of the Special Metropolitan City, Metropolitan Cities, the Special Self-Governing City, Dos, or the Special Self-Governing Province establishes a conciliation committee pursuant to the latter part of Article 20 (1) of the Act, matters concerning the organization, operation, etc. of its secretariat shall be prescribed by municipal ordinance of the relevant local government taking its actual circumstances into consideration. [This Article Newly Inserted by Presidential Decree No. 29671, Apr. 2, 2019]
| Article 12 (Management of Personally Identification Information) |
[This Article Newly Inserted by Presidential Decree No. 23488, Jan. 6, 2012]
ADDENDA
| (1) | (Enforcement Date) This Decree shall enter into force on November 1, 2002. |
| (2) | (Transitional Measures concerning Application for Fixed Date by Existing Lessees) Anyone who intends to file an application for a fixed date in a lease contract pursuant to paragraph (3) of the Addenda to the Act after this Decree is promulgated shall present a business registration certificate along with a lease contract. |
ADDENDUM <Presidential Decree No. 19507, Jun. 12, 2006>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 20970, Aug. 21, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures)
A commercial building lease contract which exists as at the time this Decree enters into force shall be governed by the former provisions: Provided, That this shall not apply to the amended provisions of Article 4.
ADDENDUM <Presidential Decree No. 21988, Jan. 11, 2010>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 22151, May 4, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 5, 2010.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 22283, Jul. 21, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 26, 2010: Provided, That the amended provisions of attached Form No. 2 shall enter into force on September 26, 2010.
Article 2 (Transitional Measures)
| (1) | A commercial building lease contract which exists as at the time this Decree enters into force shall be governed by the former provisions. |
| (2) | Anyone who has acquired the actual right granted by way of security against a leased building before this Decree enters into force shall be governed by the former provisons. |
ADDENDA <Presidential Decree No. 23488, Jan. 6, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation (Proviso Omitted).
Article 2 Omitted.
ADDENDA <Presidential Decree No. 23807, May 23, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation
Article 2 (Transitional Measures concerning Change of Forms)
The form made pursuant to the former provisions as at the time this Decree enters into force may be used along with forms pursuant to this Decree by not later than August 31, 2012.
ADDENDA <Presidential Decree No. 25036, Dec. 30, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2014.
Article 2 (Applicability to Scope of Application)
The amended provisions of Article 2 shall begin to apply from the first commercial building lease contract which is concluded or renewed after this Decree enters into force. Article 3 (Applicability to Restrictions on Calculation Rate in Cases of Change into Monthly Rates)
The amended provisions of Article 5 shall also apply to a commercial building lease contract which exists as at the time when this Decree enters into force, and they shall begin to apply from the first change of the whole or part of deposits into monthly rents after this Decree enters into force. Article 4 (Applicability to Protection of Small Amount of Deposit)
The amended provisions of Articles 6 and 7 shall also apply to a commercial building lease contract which exists as at the time when this Decree enters into force, and any person who has acquired the real right granted by way of security before this Decree enters into force shall be governed by the former provisions.
ADDENDUM <Presidential Decree No. 26637, Nov. 13, 2015>
This Decree shall enter into force on November 14, 2015.
ADDENDA <Presidential Decree No. 28611, Jan. 26, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Scope of Application)
The amended provisions of Article 2 shall begin to apply from the first commercial building lease contract which is concluded or renewed after this Decree enters into force. Article 3 (Applicability to Standards for Requests for Increase of Rents)
The amended provisions of Article 4 shall also apply to commercial building lease contracts existing as at the time this Decree enters into force.
ADDENDA <Presidential Decree No. 29671, Apr. 2, 2019>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 8 through 11 shall enter into force on April 17, 2019. Article 2 (Applicability to Scope of Application)
The amended provisions of Article 2 (1) shall begin to apply from the first commercial building lease contract which is concluded or renewed after this Decree enters into force.