SPECIAL ACT ON PRIVATE RENTAL HOUSING
Wholly Amended by Act No. 13499, Aug. 28, 2015
Amended by Act No. 13805, Jan. 19, 2016
Act No. 13782, Jan. 19, 2016
Act No. 14480, Dec. 27, 2016
Act No. 14542, Jan. 17, 2017
Act No. 14532, Jan. 17, 2017
Act No. 14912, Oct. 24, 2017
Act No. 15309, Dec. 26, 2017
Act No. 15319, Dec. 26, 2017
Act No. 15356, Jan. 16, 2018
Act No. 15460, Mar. 13, 2018
Act No. 15730, Aug. 14, 2018
Act No. 16000, Dec. 18, 2018
Act No. 16386, Apr. 23, 2019
Act No. 16630, Nov. 26, 2019
Act No. 17091, Mar. 24, 2020
Act No. 17171, Mar. 31, 2020
Act No. 17219, Apr. 7, 2020
Act No. 17453, jun. 9, 2020
Act No. 17452, jun. 9, 2020
Act No. 17482, Aug. 18, 2020
CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to promote the supply of private rental housing and to ensure housing stability for people, by prescribing matters necessary to construct, supply, and manage private rental housing and to foster private housing rental business entities.
The terms used in this Act are defined as follows: <Amended on Jan. 19, 2016; Jan. 17, 2017; Jan. 16, 2018; Mar. 13, 2018; Aug. 18, 2020>
| 1. | The term "private rental housing" means housing supplied for rent [including quasi-housing prescribed by Presidential Decree, such as an officetel and housing constructed on leasehold land (hereinafter referred to as "quasi-housing"), and housing, only part of which prescribed by Presidential Decree is rented; hereinafter the same shall apply] which is registered by a rental business entity under Article 5; and shall be classified into privately constructed rental housing and buy-to-rent private housing; |
| 2. | The term "privately constructed rental housing" means private rental housing that falls within either of the following two categories: |
| (a) | Housing constructed by a rental business entity for renting; |
| (b) | Housing rented out because it remains unsold by the time for inspection for use, of those houses constructed by a housing construction project operator registered under Article 4 of the Housing Act with approval of a project plan pursuant to Article 15 of the same Act; |
| 3. | The term "buy-to-rent private housing" means private rental housing leased out by a rental business entity after acquisition of ownership thereof by purchase, etc.; |
| 4. | The term "publicly-funded private rental housing" means any of the following private rental housing that is acquired by a rental business entity for renting it for at least 10 years and is rented with restrictions on rents, eligibility of lessees, etc.: |
| (a) | Private rental housing constructed or bought with investment from the Housing and Urban Fund (hereinafter referred to as the "Housing and Urban Fund") under the Housing and Urban Fund Act; |
| (b) | Public housing site under subparagraph 24 of Article 2 of the Housing Act or land supplied by free contract or the like under Article 18 (2) of this Act; private rental housing constructed after purchasing or renting previous real estate (hereinafter referred to as "previous real estate") under subparagraph 6 of Article 2 of the Special Act on the Construction and Development of Innovation Cities; |
| (d) | Private rental housing constructed in a district for promoting publicly-funded private rental housing designated under Article 22; |
| (e) | Other private rental housing constructed or purchased after receiving public support prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport; |
| 5. | The term "long-term private rental housing" means private rental housing (excluding buy-to-rent private housing where the rental property is an apartment), other than publicly-funded private rental housing, acquired by a rental business entity for the purpose of leasing them out for at least 10 years; |
| 6. | Deleted; <Aug. 18, 2020> |
| 7. | The term "rental business entity" means a person other than a public housing business entity defined in Article 4 (1) of the Special Act on Public Housing (hereinafter referred to as "public housing business entity") that is registered under Article 5 to engage in the business of acquiring and renting at least one unit of private rental housing; |
| 8. | Deleted; <Jan. 16, 2018> |
| 9. | Deleted; <Jan. 16, 2018> |
| 10. | The term “housing rental management business" means a business managing leasing housing under outsourcing from the owner, which falls within either of the following two categories: |
| (a) | In-house managed housing rental management business: A type of business subletting a house under one’s own liability after renting it from the owner thereof; |
| (b) | Entrusted-management housing rental management business: A type of business imposing and collecting rents, maintaining and managing facilities, etc. in return for fees received from the housing owner; |
| 11. | The term "housing rental management business entity" means a person registered under Article 7 (1) to run a housing rental management business; |
| 12. | The term "district for promoting publicly-funded private rental housing" means a district designated under Article 22 to promote the supply of publicly-funded private rental housing; |
| 13. | The term "station’s sphere of influence, etc." means an area located within one kilometer from any of the following. In such cases, the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor, or a Special Self-Governing Province Governor (hereinafter referred to as the "Mayor/Do Governor") may reduce or increase the distance by at least 50 percent by ordinance of the local government concerned: |
| (e) | Other facilities prescribed by ordinance of a relevant local government; |
| 14. | The term "those entitled to residential support" means those who need residential support such as the youth and newlyweds, who meet requirements prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport; |
| 15. | The term "mixed-support facility" means facilities supporting economic activities and everyday lives of lessees, etc. living in publicly-funded private rental housing, which are prescribed by Presidential Decree. |
| Article 3 (Relationship to Other Statutes) |
| Article 4 (Support by the State) |
| 1. | To increase the supply of private rental housing; |
| 2. | To improve and enhance quality of private rental housing; |
| 3. | To encourage participation of non-profit organizations, such as social enterprises and social cooperatives, in supply of private rental housing; |
| 4. | To develop housing rental management business. |
| (2) | The State and a local government may provide necessary administrative support to rental business entities and lessees to promote shared private rental housing (referring to private rental housing in which at least two unrelated lessees reside, sharing at least one space such as the living room or kitchen based on a rental agreement signed by each lessee). <Newly Inserted on Jan. 16, 2018> |
CHAPTER II RENTAL BUSINESS ENTITIES AND HOUSING RENTAL MANAGEMENT BUSINESS ENTITIES
| Article 5 (Registration of Rental Business Entities) |
| (1) | Any person who intends to rent housing may apply for registration thereof with the Special Self-Governing City Mayor, the Special Self-Governing Province Governor, or the head of a Si/Gun/Gu (in cases of the head of a Gu, referring to the head of an autonomous Gu; hereinafter referred to as the "head of a Si/Gun/Gu"). |
| (2) | Registration under paragraph (1) shall be classified as follows: <Amended on Jan. 16, 2018; Aug. 18, 2020> |
| 1. | Deleted; <Jan. 16, 2018> |
| 2. | Privately constructed rental housing and buy-to-rent private housing; |
| 3. | Publicly-funded private rental housing and long-term private rental housing. |
| (3) | Each person registered under paragraph (1) who intends to change any matter registered shall submit a report thereon to the head of the competent Si/Gun/Gu: Provided, That he or she need not report minor matters prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, such as expansion of the area of a rental house by an extent not exceeding 10 percent of the area. <Amended on Jun. 9, 2020> |
| (4) | Upon receiving a report under paragraph (3), the head of the Si/Gun/Gu shall notify the reporting person of whether the report is accepted within seven days of receipt. <Newly Inserted on Jun. 9, 2020> |
| (5) | If the head of a Si/Gun/Gu fails to notify the person who has filed a report of whether the report is accepted within the period provided in paragraph (4) or of the extension of a processing period under statutes and regulations relating to the processing of civil petitions, the relevant report shall be deemed to have been filed on the day immediately following the end of the processing period (referring to the corresponding processing period if the processing period has been extended or re-extended under statutes and regulations relating to the processing of civil petitions). <Amended on Aug. 18, 2020> |
| (6) | Matters necessary for the criteria, procedures, etc. for registration and reporting under paragraphs (1) through (5) shall be prescribed by Presidential Decree. <Amended on Jun. 9, 2020> |
| (7) | The head of a Si/Gun/Gu in receipt of the application for registration under paragraph (1) may reject the application in any of the following cases: <Newly Inserted on Aug. 18, 2020> |
| 1. | Where it is deemed to be substantially impracticable to purchase guarantee for rental security deposit under Article 49 when taking into account the credit rating of the applicant, the debt ratio of the rental housing covered by the application (where there is a rental agreement existing at the time of registration, the debt ratio shall be calculated by including the relevant rental security deposit; and whereas there is no rental agreement, it shall be calculated by including the intended ceiling amount of rental security deposit under a rental agreement to be entered after registration, which shall be notified by the person filing for registration) and other factors; |
| Article 5-2 (Supplementary Registration of Registered Private Rental Housing) |
| (1) | A rental business entity shall file a supplementary registration for the ownership register, stating that the private rental house registered under Article 5 is a property required to abide by the mandatory rental period under Article 43 and the standards for increasing rent under Article 44. |
| (2) | A supplementary registration under paragraph (1) shall be filed without delay after the registration of the rental business entity: Provided, That where the registration of preservation of ownership is filed after the registration as a rental business entity, the supplementary registration shall be filed simultaneously with the registration of preservation of ownership. |
| (3) | Matters necessary for, among other things, the details of statement to be included in a supplementary registration under paragraphs (1) and (2) and cancellation shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Jun. 9, 2020]
[Previous Article 5-2 moved to Article 5-3 <Jun. 9, 2020>]
| Article 5-3 (Report on Recruitment of Members of Housing Cooperative and Open Invitation) |
| (1) | Where a cooperative or social cooperative under the Framework Act on Cooperatives established for the purpose of supplying houses in such number, not less than 30 including the number of privately constructed rental houses supplied to members, as prescribed by Presidential Decree (hereinafter referred to as "private rental cooperative") or a promoter thereof intends to recruit members for the cooperative, he, she or it shall report to the head of the competent Si/Gun/Gu having jurisdiction over the construction site for the private rental housing and recruit members by means of public invitation. |
| (2) | Notwithstanding paragraph (1), where any vacancy needs to be filled due to a death, disqualification, withdrawal of membership, etc. of a housing cooperatives' member or where an insufficient number of members have been recruited after an open invitation, members of the housing cooperative may be recruited on a first-come, first-served basis, without filing a report. |
| (3) | The head of a Si/Gun/Gu in receipt of a report under paragraph (1) shall accept the report where the reported matters are in compliance with this Act and notify the reporting person of such acceptance. |
| (4) | In any of the following cases, the head of a Si/Gun/Gu shall not accept a report on recruitment of members of a housing cooperative: |
| 1. | Where the housing cooperative has failed to secure the title to use land that constitutes at least 80 percent of the construction site for the relevant private rental housing; |
| 2. | Where the construction site overlaps, in whole or in part, with the project site already reported; |
| 3. | Where no housing may be built by the private rental cooperative on the relevant construction site for the private rental housing, in accordance with an urban or Gun plan already formulated or to be formulated, a land use plan already formulated, or the standards for construction, restriction on construction, etc. under this Act or related statutes or regulations; |
| 4. | Where it is intended to recruit members who are not entitled to the supply of the relevant private rental housing; |
| 5. | Where any reported matter is different from the fact. |
| (5) | Matters necessary for filing a report on recruitment of members of a housing cooperative, such as the timing of recruitment and methods, procedures, etc. of recruitment under paragraph (1), open invitations, disclosure of information on persons who have filed an application to join a private rental cooperative (hereinafter referred to as "applicants for cooperative membership"), etc. shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
[This Article Newly Inserted on Nov. 26, 2019]
[Moved from Article 5-2; Previous Article 5-3 moved to Article 5-4 <Jun. 9, 2020>]
| Article 5-4 (Obligation to Provide Explanation When Recruiting Members of Housing Cooperatives) |
| (1) | When entering into a membership agreement of a private rental cooperative (including agreements for establishing a private rental cooperative; hereinafter the same shall apply), a private rental cooperative that recruits members after filing a report on recruiting members of the cooperative pursuant to Article 5-3 and promoters thereof (hereinafter referred to as "recruiting entity") shall explain the following matters to the applicant for the cooperative membership and obtain confirmation: <Amended on Jun. 9, 2020> |
| 1. | Matters concerning the rights and duties of cooperative members; |
| 2. | Location and size of the construction site for the relevant private rental housing, and the status of securing the right to use, or ownership of, the construction site |
| 3. | Matters regarding funds plan of the private rental housing cooperative; |
| 4. | Matters regarding the eligibility of members to be supplied with the private rental housing; |
| 5. | Matters regarding the procedures, etc. for withdrawal or expulsion from a private rental cooperative or for returning money paid, such as contributions; |
| 6. | Matters regarding the withdrawal of subscription, deposit of money, refund of up-front fees, etc. under Article 5-5; |
| 7. | Other matters necessary for promoting projects of private rental cooperatives and operation thereof, as prescribed by Presidential Decree. |
| (2) | Matters regarding methods and procedures of explanation and confirmation under paragraph (1) and the like shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Nov. 26, 2019]
[Moved from Article 5-3; previous Article 5-4 moved to Article 5-5 <Jun. 9, 2020>]
| Article 5-5 (Withdrawal of Subscription and Refund of Up-Front Fees) |
| (1) | Where any applicant for cooperative membership enters into a membership agreement of a private rental cooperative, the recruiting entity shall require the applicant to deposit all of the money payable (hereinafter referred to as "up-front fees, etc.") with an institution prescribed by Presidential Decree (hereinafter referred to as "depository institution"). |
| (2) | An applicant for cooperative membership may withdraw his or her subscription for membership of a private rental cooperative within 30 days from the date of concluding the agreement on membership of the private rental cooperative. |
| (3) | When an applicant for membership of a cooperative withdraws a subscription in writing, such withdrawal shall become effective on the date the document expressing his or her intention to withdraw the subscription is sent. |
| (4) | Where an applicant for cooperative membership withdraws the subscription, the recruiting entity shall request the head of a depository institution to refund the up-front fee, etc. within seven days from the date the intention of withdrawal of the subscription arrives. |
| (5) | Upon receipt of a request for the refund of up-front fees, etc. under paragraph (4), the head of the depository institution shall return up-front fees, etc. to an applicant for cooperative membership within 10 days from the date of such request. |
| (6) | Where an applicant for cooperative membership withdraws the subscription within the period specified in paragraph (2), the recruiting entity shall not request the applicant to pay a penalty or compensation for damage on the ground of the withdrawal. |
| (7) | Matters necessary for, among other things, the management, payment, and return of up-front fees, etc. under paragraph (1) shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Nov. 26, 2019]
[Moved from Article 5-4 <Jun. 9, 2020>]
| Article 5-6 (Grounds for Disqualification for Rental Business Entities) |
None of the following persons may register as a rental business entity under Article 5. The same shall apply to a corporation if the corporation has any of the following persons as an executive officer: | 2. | A person in whose case two years have not passed since the cancellation of his or her registration in its entirety under Article 6 (1) 1, 4 and 7 through 9. |
[This Article Newly Inserted on Aug. 18, 2020]
| Article 5-7 (Restrictions on Additional Registration of Rental Housing by Rental Business Entities) |
Any person in whose case two years have not passed since the partial cancellation of registration of a rental business entity under Article 6 (1) 1, 4, and 7 through 9 may not register any change or addition of rental housing (including any change or addition of a house excluded from the rental housing due to partial cancellation), other than the rental housing already registered, through the report on changes in registered matters under the main clause of Article 5 (3). [This Article Newly Inserted on Aug. 18, 2020]
| Article 6 (Cancellation of Registration of Rental Business Entities) |
| (1) | Where a rental business entity falls under any of the following cases, the head of the Si/Gun/Gu may cancel the relevant registration in whole or in part: Provided, That in cases falling under subparagraph 1, the registration shall be canceled in whole or in part: <Amended on Jun. 9, 2020; Aug. 18, 2020> |
| 1. | Where he or she has registered by fraud or other improper means; |
| 2. | Where he or she fails to acquire private rental housing within the period prescribed by Presidential Decree after being registered under Article 5; |
| 3. | Where he or she applies for cancellation of registration before three months pass from the date of registration (limited to cases where the lessee consents if there is a rental agreement entered after the registration as a rental house) under Article 5 (1) or after the expiration of the mandatory rental period referred to in Article 43; |
| 4. | Where he or she fails to meet the criteria for registration referred to in Article 5 (6); |
| 5. | Where he or she transfers private rental housing under Article 43 (2) or (6); |
| 6. | Where he or she transfers private rental housing under Article 43 (4); |
| 7. | Where he or she violates any of the terms of rental provided for in Article 44; |
| 8. | Where he or she revokes, terminates, or refuses to renew, a rental agreement in violation of Article 45; |
| 9. | Where he or she violates any restriction on uses of quasi-housing specified in Article 50. |
| 10. | He or she has provided explanation or information under Article 48 (1) 2 by fraud or other improper means; |
| 11. | Notwithstanding Article 43, the previous Special Act on Private Rental Housing (referring to the Act before it is partially amended by the Special Act on Private Rental Housing (Act No. 17482); hereafter in this Article, the same shall apply) shall apply where a rental business entity files an application for the cancellation of registration within the mandatory rental period with respect to a buy-to-rent private house where the rental property is an apartment, from among long-term private rental housing defined in subparagraph 5 of Article 2, or a short-term private rental house defined in subparagraph 6 of Article 2 (limited to where the lessee consents if a rental agreement exists at the time of the application); |
| 12. | Where it is prescribed by Presidential Decree that the loss of the lessee is clearly incurred by the rental business entity's delay in returning the deposit; |
| 13. | Other cases prescribed by Presidential Decree, in which it is deemed impracticable to continue to lease private rental housing. |
| (2) | In canceling registration under paragraph (1), the head of a Si/Gun/Gu shall hold a hearing: Provided, That this shall not apply to cases falling under paragraph (1) 3, 5 or 6. |
| (3) | Where the head of a Si/Gun/Gu cancels registration under paragraph (1), he or she shall publicly announce necessary matters, such as the name of the relevant rental business entity and grounds for cancellation. |
| (4) | Upon filing an application for cancellation of registration under paragraph (1) 3 or receipt of notice on holding of a hearing under paragraph (2), the rental business entity shall notify each lessee of such fact within seven days. |
| (5) | Registration shall be canceled on the date of expiry of the mandatory rental period with respect to a buy-to-rent private house where the rental property is an apartment from among long-term private rental housing defined in subparagraph 5 of Article 2 of the previous Special Act on Private Rental Housing or a short-term private rental house defined in subparagraph 6 of Article 2. <Amended on Aug. 18, 2020> |
| (6) | Where registration is canceled under the subparagraphs of paragraph (1) (excluding cases where a private rental house is transferred to another rental business entity under Article 43 (2) among cases referred to in subparagraph 5) and paragraph (5), the rental business entity (referring to the transferee where the relevant house is transferred) shall be deemed the rental business entity under this Act in the context of the relationship with the lessee until the existing rental agreement expires. <Amended on Aug. 18, 2020> |
| Article 7 (Registration of Housing Rental Management Business) |
| (1) | Each person who intends to run a housing rental management business may apply for registration thereof with the head of the competent Si/Gun/Gu: Provided, That a person who intends to run a housing rental management business in a scale of not less than the scale prescribed by Presidential Decree within the extent of at least 100 housing units, shall register its business (excluding the State, local governments, public institutions defined in Article 4 (1) of the Act on the Management of Public Institutions (hereinafter referred to as "public institutions"), and local government-invested public corporations incorporated under Article 49 (1) of the Local Public Enterprises Act (hereinafter referred to as "local public corporations"). |
| (2) | Registration under paragraph (1) shall be made by classifying between self-management type housing rental management business and entrusted-management type housing rental management business. In such cases, registration of self-management type housing rental management business shall be deemed to include registration of entrusted-management type housing rental management business. |
| (3) | If a person registered under paragraph (1) intends to change or cancel any registered matter, he or she shall submit a report thereon to the head of the competent Si/Gun/Gu: Provided, That he or she need not report minor matters prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, such as capital increase. |
| (4) | The head of a Si/Gun/Gu shall notify the reporting person of whether the report is accepted within five days of receiving the report under paragraph (3). <Newly Inserted on Jun. 9, 2020> |
| (5) | Where the head of a Si/Gun/Gu fails to notify the reporting person of receipt of a report or of an extension of the processing period under statutes or regulations related to treatment of civil petitions within a period specified in paragraph (4), the report shall be deemed received on the day following the expiry date of such period (referring to the relevant processing period if the processing period is extended or re-extended pursuant to statutes or regulations related to treatment of civil petitions). <Newly Inserted on Jun. 9, 2020> |
| (6) | Matters necessary for, among other things, procedures for registration and reporting under paragraphs (1) through (5) shall be prescribed by Presidential Decree. <Amended on Jun. 9, 2020> |
| Article 8 (Criteria for Registration of Housing Rental Management Business) |
A person who intends to register its business under Article 7 shall meet the following requirements: | 1. | He or she shall have paid-in capital (referring to the assessed value of assets, in cases of an unincorporated entity) of at least 100 million won, which shall exceed the amount prescribed by Presidential Decree; |
| 2. | He or she shall have professional manpower prescribed by Presidential Decree, such as a housing manager; |
| 3. | He or she shall have facilities prescribed by Presidential Decree, such as an office. |
| Article 9 (Disqualification from Conducting Housing Rental Management Business) |
None of the following persons shall be eligible to have a housing rental management business registered. The same shall also apply to a corporation which has any of the following persons as its executive officer: <Amended on Jan. 19, 2016>
| 1. | A person declared bankrupt by the court, and not yet reinstated; |
| 2. | A person under adult guardianship or a person under limited guardianship; |
| 3. | A person for whom two years have not passed since cancellation of his or her housing rental management business under Article 10. In such cases, if the person whose registration is canceled is a corporation, a person who has committed an offense resulting in the cancellation and the representative thereof shall also be included; |
| Article 10 (Cancellation of Registration of Housing Rental Management Business) |
| (1) | Where a housing rental management business entity falls under any of the following cases, the head of the competent Si/Gun/Gu may cancel registration of the relevant business or partially or entirely suspend the business for a prescribed period not exceeding one year: Provided, That in cases falling under paragraph 1, 2 or 6, the registration shall be canceled: |
| 1. | Where he or she is registered by fraud or other improper means; |
| 2. | Where he or she carries on the housing rental management business during the period of business suspension, or a person who is subject to a disposition to suspend business on at least two occasions during the recent three years and the total period of such dispositions exceeds 12 months; |
| 3. | Where he or she causes damage to property of a lessor or lessee by improperly managing housing for rent by intention or gross negligence; |
| 4. | Where he or she has no record of outsourcing contract for at least one year from the day following the expiration date of the last outsourcing contract without just cause; |
| 5. | Where he or she fails to meet the criteria for registration referred to in Article 8: Provided, That this shall not apply where prescribed by Presidential Decree, such as temporary failure to meet the criteria for registration; |
| 6. | Where he or she allows a third person to run the business or affairs prescribed by this Act by using his or her name or trade name or lends his or her registration certificate, in violation of Article 16 (1); |
| 7. | Where he or she refuses, interferes with, or evades to give reports or data or to receive inspections under Article 61, or gives false reports. |
| (2) | Where a housing rental management business entity falls under any of paragraph (1) 3 through 5 and 7, the head of the competent Si/Gun/Gu may impose a penalty surcharge not exceeding 10 million won in lieu of business suspension. |
| (4) | Criteria for cancellation of registration and disposition to suspend business under paragraph (1), and necessary matters relating to the amount, etc. of penalty surcharges based on the types and severity of violations subject to the imposition of penalty surcharge under paragraph (2) shall be prescribed by Presidential Decree. |
| Article 11 (Scope of Business of Housing Rental Management Business Entities) |
| (1) | A housing rental management business entity shall perform the following affairs regarding housing for rent: |
| 1. | Conclusion, revocation, termination, renewal, rejection of renewal, etc. of a rental agreement; |
| 2. | Charging, collection, etc. of rents; |
| (2) | A housing rental management business entity may perform the following incidental affairs regarding housing for rent: |
| 1. | Maintenance, repair, and improvement of facilities, and other affairs related to housing management; |
| 2. | Other affairs prescribed by Presidential Decree as necessary for the residential convenience of lessees. |
| Article 12 (Reporting on Current Status of Housing Rental Management Business Entities) |
| (1) | A housing rental management business entity shall file a quarterly report on the information prescribed by Presidential Decree, such as paid-in capital, professional manpower, number of units he or she manages, etc., with the head of the competent Si/Gun/Gu within the month following the end of the relevant quarter. In such cases, the head of the Si/Gun/Gu in receipt of such report shall report it to the Minister of Land, Infrastructure and Transport. |
| (2) | Matters necessary for filing reports, etc. under paragraph (1) shall be prescribed by Presidential Decree. |
| (3) | The Minister of Land, Infrastructure and Transport may disclose the following information as prescribed by Presidential Decree, such as the rental housing information system referred to in Article 60 (1): |
| 1. | Information reported under the latter part of paragraph (1); |
| Article 13 (Outsourcing Contracts) |
| (1) | A housing rental management business entity to whom the affairs listed in Article 11 are outsourced, shall prepare an outsourcing contract, deliver it to the relevant housing owner, and retain a copy thereof. |
| (2) | An outsourcing contract under paragraph (1) shall include matters prescribed by Presidential Decree, such as the contract period and obligations of the housing rental management business entity. |
| (3) | The Minister of Land, Infrastructure and Transport may prepare, disseminate, and make available a standard form outsourcing contract necessary for the conclusion of an outsourcing contract under paragraph (1). |
| Article 14 (Purchase of Guarantee Instruments) |
| (1) | A housing rental management business entity carrying on the in-house management type housing rental management business shall purchase a guarantee instrument to protect the rights of lessors and lessees. |
| (2) | Types of guarantee instruments referred to in paragraph (1) and matters necessary for the procedures to purchase them, etc. shall be prescribed by Presidential Decree. |
| Article 15 (Obligations of In-House Management Type Housing Rental Management Business Entities) |
Where a lessor who is a rental business entity outsources the rental management to an in-house management type housing rental management business entity, the housing rental management business entity shall perform the obligations of a rental business entity under this Act within the scope outsourced to him or her. In such cases, a housing rental management business entity shall be deemed a rental business entity for the purpose of Chapter VII. <Amended on Jun. 9, 2020>
| Article 16 (Prohibition of Lending of Registration Certificates) |
| (1) | No housing rental management business entity shall allow any third person to perform the affairs prescribed by this Act by using his or her name or trade name or lend his or her registration certificate. |
| (2) | No person, other than a housing rental management business entity, shall use the name of housing rental management business or similar. |
CHAPTER III CONSTRUCTION OF PRIVATE RENTAL HOUSING
| Article 17 (Construction of Private Rental Housing) |
| Article 18 (Preferred Supply of Land) |
| (1) | Where the State, a local government, a public institution, or a local public corporation supplies (referring to sale or lease; hereafter the same shall apply in this Article) land it owns or develops, it may preferentially supply such land to a rental business entity who intends to construct private rental housing, notwithstanding Article 30 (1) of the Housing Act. <Amended on Jan. 19, 2016> |
| (2) | Where the State, a local government, a public institution, or a local public corporation supplies land for construction of publicly-funded private rental housing, or where a public institution [including a purchasing public institution defined in Article 43 (3) of the same Act (hereinafter referred to as "purchasing public institution")] holding previous real estate sells the previous real estate for the construction of publicly-funded private rental housing, the land may be supplied in accordance with the methods and conditions prescribed by Presidential Decree, such as ballot, restriction on eligibility, and free contract, notwithstanding the Housing Site Development Promotion Act, the Special Act on the Construction and Development of Innovation Cities, and other related statutes or regulations. <Amended on Dec. 26, 2017; Jan. 16, 2018> |
| (3) | The State, a local government, the Korea Land and Housing Corporation, or a local public corporation shall preferentially supply land developed by it to a rental business entity (including employers registered as a rental business entity (limited to corporations) who intends to construct private rental housing for rent to its employees) in a ratio of not less than that prescribed by Presidential Decree, which shall be at least one percent of such land: Provided, That the relevant land shall be at least the size prescribed by Presidential Decree and include sites for at least two multi-family housing complexes. <Amended on Jan. 17, 2017> |
| (4) | A person supplied with land and previous real estate under paragraphs (1) through (3) (hereafter referred to as "land, etc." in this Article) shall construct private rental housing within the period prescribed by Presidential Decree, which shall not exceed four years from the date on which he or she is supplied with the land, etc. |
| (5) | Where no private rental housing is constructed notwithstanding paragraph (4), a person who has supplied land, etc. may repurchase such land, etc. under the criteria and procedures prescribed by Presidential Decree or revoke or terminate the relevant rental agreement. |
| (6) | Where a project undertaker defined in Article 54 of the Housing Act supplies housing, it may preferentially supply all the houses (excluding houses subject to application of the upper limit system for selling prices referred to in Article 57 of the same Act) to rental business entities seeking to operate the housing as publicly-funded private rental housing or long-term private rental housing, notwithstanding paragraph (1) of the same Article. <Amended on Jan. 19, 2016; Jan. 16, 2018> |
| Article 19 (Preferential Installation of Arterial Facilities) |
A person who installs arterial facilities pursuant to Article 28 of the Housing Act shall install such arterial facilities required for a construction project of private rental housing or a housing site development project for the construction of private rental housing in preference to other housing construction projects or housing site development projects. <Amended on Jan. 19, 2016>
| Article 20 (Special Cases concerning the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects) |
| (1) | Where a rental business entity has purchased at least 80 percent of land (including where the consent of owners on the purchase of land has been obtained) for a project to construct private rental housing with at least 100 units exceeding the number of units prescribed by Presidential Decree in an area not exceeding 85 square meters for exclusive use, and significant difficulty will be caused in implementing such project unless he or she acquires the remainder of the land, he or she may request the Mayor/Do Governor to grant a designation under subparagraph 5 of Article 4 of the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects. In such cases, necessary matters relating to the procedures for such request, documents to be submitted, etc. shall be prescribed by Presidential Decree. <Amended on Jan. 16, 2018> |
| Article 21 (Special Cases concerning the National Land Planning and Utilization Act) |
Where a rental business entity applies for approval of a project plan under Article 15 of the Housing Act or for granting of building permission under Article 11 of the Building Act, to construct publicly-funded private rental housing, the authority to grant approval of project plans under Article 15 of the Housing Act or the authority to grant permission under Article 11 of the Building Act (hereinafter referred to as "approval authority, etc.") may apply the following lenient standards, notwithstanding relevant statutes or regulations: Provided, That where publicly-funded private rental housing and other facilities are constructed as one and same building, the above provision shall apply only where the ratio of floor area of the publicly-funded private rental housing to the total floor area exceeds the ratio prescribed by Presidential Decree by no less than 50 percent: <Amended on Jan. 19, 2016; Jan. 16, 2018>
| Article 21-2 (Supply of Houses Constructed Based on Relaxed Floor Area Ratios) |
| (1) | Where approval authority, etc. applies to the floor area ratio prescribed by ordinance of a relevant local government under the National Land Planning and Utilization Act or the floor area ratio under subparagraph 2 of Article 21 (hereinafter referred to as "relaxed floor area ratio"), which is more relaxed than one prescribed by a district unit plan (hereinafter referred to as "base floor area ratio") regarding a project for building publicly-funded private rental housing with at least 30 units, the number of units prescribed by Presidential Decree, at the time of approval of a project plan or building permission granted to a rental business entity, the approval authority, etc. may issue any of the following orders to a rental business entity in consultation with the relevant Mayor/Do Governor and the renal business entity: Provided, That where other statutes or regulations have imposed obligations on the rental business entity, the measures prescribed in the main clause shall be reduced or exempted: <Amended on Apr. 7, 2020> |
| 1. | A rental business entity shall construct rental housing, the area of which corresponds to the area increased by subtracting the base floor area ratio from the relaxed floor area ratio, and multiplying a ratio, which is not more than 50 percent of the calculated ratio, by the ratio prescribed by ordinance of a relevant local government; and shall supply such housing to the Mayor/Do Governor. In such cases, the price for supplying housing shall be construction expenses determined based on the criteria for calculating prices for conversion for sale of public rental housing units under Article 50-3 (1) of the Special Act on Public Housing; and the land attached thereto shall be deemed transferred by donation to the Mayor/Do Governor; |
| 2. | A rental business entity shall pay in cash the price of land attached to the house, the area of which is increased by subtracting the base floor area ratio from the relaxed floor area ratio and multiplying a ratio, which is not more than 50 percent of the calculated ratio, by the ratio prescribed by ordinance of a relevant local government to the Mayor/Do Governor. In such cases, the price of land shall be the amount appraised by an appraisal corporation defined in subparagraph 4 of Article 2 of the Act on Appraisal and Certified Appraisers (hereinafter referred to as "appraisal corporation, etc.") based on the standards for the publicly announced price of representative land at the time of application for approval of a project plan or of building permission; |
| 3. | A rental business entity shall construct rental housing supplied to those entitled to residential support or mixed-support facilities, the area of which corresponds to the area increased by subtracting the base floor area ratio from the relaxed floor area ratio and multiplying a ratio, which is not more than 100 percent of the calculated ratio, by the ratio prescribed by ordinance of a relevant local government; |
| 4. | A rental business entity shall construct rental housing, the area of which corresponds to the area increased by subtracting the base floor area ratio from the relaxed floor area ratio and multiplying a ratio, which is not more than 50 percent of the calculated ratio, by the ratio prescribed by ordinance of a relevant local government and supply such housing to those entitled to residential support in the form of private rental housing for at least 20 years. |
| (2) | The cash paid by a rental business entity under paragraph (1) 2 shall escheat to the special account for national housing projects set up in accordance with Article 84 of the Housing Act. |
| (3) | Except as otherwise provided in paragraphs (1) and (2), procedures for supplying housing to the Mayor/Do Governor, procedures for calculating land prices, methods for cash payment, operation of mixed-support facilities built, and other necessary matters shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Jan. 16, 2018]
| Article 21-3 (Supply of Housing Constructed following Changes in Special-Purpose Areas) |
Article 21-2 shall apply mutatis mutandis to the construction and supply of rental housing, payment in cash of land attached thereto, and building of mixed-support facilities, and other matters with respect to the decision to change a relevant special-purpose area to a special-purpose area subject to relaxed floor area ratios under Article 30 of the National Land Planning and Utilization Act and granting approval of a project plan or building permission. In such cases, the "base floor area ratio" shall be construed as the "floor area ratio determined according to an ordinance or a district unit plan before a change in special-purpose areas"; and the "relaxed floor area ratio" as the "floor area ratio approval authority, etc. apply at the time of approval of a project plan or of building permission after a change in special-purpose areas". [This Article Newly Inserted on Jan. 16, 2018]
CHAPTER IV DISTRICTS FOR PROMOTING PUBLICLY-FUNDED PRIVATE RENTAL HOUSING
| Article 22 (Designation of Promotion Districts) |
| (1) | Each Mayor/Do Governor may designate a district for promoting publicly-funded private rental housing (hereinafter referred to as "promotion district") to facilitate supply of publicly-funded private rental housing. In such cases, the promotion district shall meet the following requirements: <Amended on Jan. 16, 2018; Apr. 23, 2019> |
| 1. | At least 50 percent of the total number of housing units constructed and supplied within a promotion district shall be for publicly-funded private rental housing; |
| 2. | The area of the promotion district shall be at least 5,000 square meters, the size of which exceeds that prescribed by Presidential Decree: Provided, That in cases of designation of a promotion district within station’s sphere of influence, etc., the area shall be at least the one prescribed by ordinance of a relevant local government, which shall be at least 1,000 square meters; |
| 3. | The area of a site supplied in the form of land for housing construction out of the area of a site supplied with compensation (referring to the area excluding areas for public facilities to be vested in the management authority, such as roads and parks; hereafter the same shall apply in this subparagraph) shall not exceed 50 percent of the area of the land supplied with compensation. |
| (2) | Deleted. <Jan. 16, 2018> |
| (3) | Notwithstanding paragraph (1), the Minister of Land, Infrastructure and Transport may designate a promotion district where it is necessary to construct and supply publicly-funded private rental housing for people's residential stability. <Amended on Jan. 17, 2017; Jan. 16, 2018> |
| (4) | Necessary matters such as the standards and procedures for designation of a promotion district under paragraphs (1) and (3), shall be prescribed by Presidential Decree. <Amended on Jan. 17, 2017; Jan. 16, 2018> |
| Article 23 (Project Implementers) |
| (1) | A person authorized to designate a promotion district under Article 22 (hereinafter referred to as "designation authority") shall designate a person who will undertake a project for developing publicly-funded private rental housing (hereinafter referred to as "project implementer"), among the following persons: <Amended on Jan. 17, 2017; Jan. 16, 2018> |
| 1. | A rental business entity who owns at least 50 percent of the area of land in the promotion district excluding State-owned or public land; |
| (2) | The scope of a project for developing publicly-funded private rental housing that can be undertaken by the project implementer shall be as follows: Provided, That a person who falls under paragraph (1) 2 shall not undertake a project for construction of publicly-funded private rental housing among housing construction projects prescribed in subparagraph 2 of this paragraph: <Newly Inserted on Jan. 16, 2018> |
| 1. | A project for development of a promotion district; |
| 2. | Housing construction project such as a project for construction of publicly-funded private rental housing. |
| (3) | In designating the project implementer of a project for development of a promotion district, a designation authority may designate a person falling under each subparagraph of paragraph (1) as a joint-implementer. <Amended on Jan. 16, 2018> |
| (4) | A person who falls under any subparagraph of paragraph (1) or a person who has obtained consent of the owners of at least 50 percent of land in a promotion district excluding the State-owned or public land, may propose that the designation authority designate the promotion district. In such cases, if the person who has proposed the designation meets the requirements prescribed in paragraph (1) 1, the designation authority may prioritize designating him or her as a project implementer. <Amended on Jan. 17, 2017; Jan. 16, 2018> |
| (5) | A designation authority may replace a project implementer in any of the following cases: <Newly Inserted on Jan. 17, 2017; Jan. 16, 2018> |
| 2. | Where the project implementer needs to be replaced by a public institution or a local government-invested public corporation, because it is impractical to implement the promotion district project due to the bankruptcy or insolvency of the project implementer or other similar reasons. |
| (6) | Where a person prescribed in paragraph (1) 2 is the project implementer, a designation authority may request him or her to construct and operate a mixed-support facility in a promotion district. In such cases, the project implementer shall formulate a plan for building and operating a mixed-support facility as prescribed by Presidential Decree. <Newly Inserted on Jan. 16, 2018> |
| (7) | Matters necessary for the procedures for proposing designations, changes, or revocation of promotion districts, documents to be submitted, method of calculating persons who have given consent, procedures for giving consent and other matters shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Jan. 17, 2017; Jan. 16, 2018> |
| Article 24 (Procedures for Designation of Promotion Districts) |
| (1) | In designating a promotion district under Article 22, a designation authority shall consult with the heads of the relevant central administrative agencies and the head of the competent local government. The same shall also apply to alteration of a promotion district. <Amended on Jan. 17, 2017> |
| (2) | In holding consultation under paragraph (1), the following consultations shall be held separately. In such cases, no consultation period may exceed 30 days: <Amended on Oct. 24, 2017> |
| (3) | Where a designation authority intends to designate a promotion district, it shall undergo deliberation by the Central Urban Planning Committee established under Article 106 of the National Land Planning and Utilization Act (hereinafter referred to as the "Central Urban Planning Committee") or a City/Do Urban Planning Committee established under Article 113 of the same Act (hereinafter referred to as a "City/Do Urban Planning Committee"), and in such cases Articles 8 and 9 shall not apply: Provided, That minor matters prescribed by Presidential Decree, such as increasing or decreasing the size of a promotion district by not more than 10 percent, may be exempt from the deliberation. |
| Article 25 (Hearing Opinions of Residents) |
| (1) | In designating a promotion district, a designation authority shall hear the opinions of residents, relevant experts, etc. as prescribed by Presidential Decree. The same shall also apply to modification of important matters prescribed by Presidential Decree, such as the area of a promotion district. <Amended on Jan. 17, 2017> |
| Article 26 (Public Notice of Designation of Promotion Districts) |
| (1) | Upon designating a promotion district, the designation authority shall publicly notify in the Official Gazette or public gazette as prescribed by Presidential Decree, its location and area, project implementer, project type, detailed items of the land, goods and rights prescribed in Article 3 of the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects (hereinafter referred to as "land, etc.") to be expropriated or used, and other relevant matters and shall send copies of the relevant documents to the head of the competent Si/Gu/Gun and publicly notify topographical drawings pursuant to Article 8 of the Framework Act on the Regulation of Land Use. The same shall also apply to alteration of a promotion district. <Amended on Jan. 17, 2017> |
| (2) | The head of a Si/Gun/Gu in receipt of copies of the relevant documents sent under paragraph (1) shall make them available to the general public for perusal. |
| (3) | A person who intends to engage in activity prescribed by Presidential Decree, such as construction of a building, in an area where public announcement for hearing the opinions of residents, etc. on the designation or alteration of a promotion district under Article 25 (1) is made or in a promotion district, shall obtain permission from the head of the competent Si/Gun/Gu. The same shall also apply to modification of any permitted matter. <Amended on Jan. 17, 2017> |
| (4) | Notwithstanding paragraph (3), the following activities are permissible without obtaining permission: |
| 1. | Emergency management activities necessary for disaster relief or management; |
| 2. | Other activities prescribed by Presidential Decree, such as changing the form and quality of land for farming. |
| (5) | A person who has already obtained permission for any activity which requires permission under paragraph (3) or commenced works or a project as at the time public announcement of hearing opinions under Article 25 (1) or designation and public notice of the promotion district is made, may continue such activity after filing a report thereon with the head of the competent Si/Gun/Gu as prescribed by Presidential Decree. <Amended on Jan. 17, 2017> |
| (6) | The head of a Si/Gun/Gu may issue an order for reinstatement to a person who has violated paragraph (3). In such cases, if a person in receipt of such order fails to perform any of his or her obligations, the head of the Si/Gun/Gu may conduct vicarious execution, as prescribed by the Administrative Vicarious Execution Act. |
| Article 27 (Revocation of Designation of Promotion Districts) |
| (1) | A designation authority may revoke the designation of a promotion district in either of the following cases: <Amended on Jan. 16, 2018> |
| 1. | Where no application is filed for approval of a district plan under Article 28 within two years from the date of designation and public notice of the promotion district; |
| 2. | Where a project for the development of publicly-funded private rental housing is completed. |
| (2) | Where the designation of a promotion district is revoked under paragraph (1), the designation authority shall publicly notify such fact in the Official Gazette or public gazette as prescribed by Presidential Decree, and shall take the following measures: |
| 1. | The Minister of Land, Infrastructure and Transport shall notify it to the heads of the relevant central administrative agencies and the competent Mayor/Do Governor. In such cases, the Mayor/Do Governor in receipt of the notice shall notify it to the head of the competent Si/Gun/Gu, and the head of the Si/Gun/Gu in receipt of such notice shall make copies of the relevant documents available to the general public for perusal; |
| 2. | The Mayor/Do Governor shall notify it to the Minister of Land, Infrastructure and Transport. In such cases, the Special Self-Governing City Mayor, the Special Self-Governing Province Governor, and the head of the Si/Gun/Gu in receipt of the notice shall make copies of the relevant documents available to the general public for perusal. |
| (3) | Where public notice for the revocation of a promotion district is made on the ground prescribed in paragraph (1) 1, the special-purpose area, special-purpose district, special-purpose zone, district-unit planning zone, and urban or Gun planning facilities designated under the National Land Planning and Utilization Act shall be respectively deemed reinstated to the state as at the time the designation was made: Provided, That a project or construction works for urban or Gun planning facilities separately determined by a public notice for revocation, such as those that have already commenced as at the time the revocation is made, may be executed continuously. |
| Article 28 (Approval of District Plans) |
| (1) | A project implementer shall prepare a district plan for promoting supply of public support rental housing including the following matters (hereinafter referred to as "district plan") and obtain approval of the designation authority. The same shall also apply to modification of an approved district plan (excluding modification of any insignificant matters prescribed by Presidential Decree): <Amended on Jan. 17, 2017; Jan. 16, 2018> |
| 1. | Outline of the district plan; |
| 2. | Name or title of the project implementer (including address and the representative's name); |
| 3. | Project implementation period and fund-raising plans; |
| 4. | Land-use plans and outline designs and specifications; |
| 5. | Plans for accommodation of residents and houses; |
| 6. | Infrastructure installation plans, including transport, public, and cultural and sports facilities; |
| 7. | Environmental plans for environmental conservation, reduction of carbon emissions, etc.; |
| 8. | Other matters prescribed by Presidential Decree, including district-unit plans. |
| (2) | A designation authority may impose on a project implementer all or some of the site or installation costs necessary for securing infrastructure facilities specified in the district plan. In such cases, the amount of the site or installation costs for infrastructure facilities to be borne by the project implementer shall not exceed the increased portion of land value generated from the lenient building restrictions (referring to the difference of land values appraised by an appraisal corporation before and after the relaxation of building restrictions, respectively). <Amended on Jan. 19, 2016; Jan. 16, 2018; Apr. 7, 2020> |
| (3) | In approving a district plan by a designation authority under paragraph (1), if requested by the project implementer, the district plan shall undergo deliberation by the committee for integrated deliberation of publicly-funded private rental housing established under Article 32. <Amended on Jan. 16, 2018> |
| (4) | Upon approving a district plan under paragraph (1), the designation authority shall publicly notify the details thereof in the Official Gazette or public gazette and send copies of the relevant documents to the head of the competent Si/Gu/Gun, and the head of the Si/Gun/Gu in receipt of them shall make them available to the general public for perusal. |
| Article 28-2 (Supervision of Construction Works for Projects for Development of Promotion Districts) |
| (1) | The head of the competent Si/Gun/Gu who has received copies of the documents detailing district plans under Article 28 (4) shall designated a construction technology service business entity under the Construction Technology Promotion Act or a certified architect under the Certified Architects Act to supervise construction works for the project for development of a promotion district; and shall guide and oversee them: Provided, That this shall not apply where the project implementer falls under Article 23 (1) 2. |
| (2) | Notwithstanding paragraph (1), where the project for developing a promotion district is implemented together with construction works subject to approval of housing construction project plans under Article 15 of the Housing Act or construction works subject to supervision under the Building Act, relevant statutes or regulations, including the Housing Act, shall apply. |
[This Article Newly Inserted on Jan. 16, 2018]
| Article 29 (Constructive Authorization and Permission under Other Statutes) |
| (1) | Where an approval or public notice of an approval, or an approval of modification or public notice of an approval of modification, of a district plan is made under Article 28, the following approval, permission, authorization, decision, reporting, designation, license, consultation, consent, revocation, deliberation, etc. (hereinafter referred to as "authorization, permission, etc.") shall be deemed obtained; and where a public notice on approval of a district plan is made, a public notice or announcement of authorization, permission, etc. shall be deemed made under the following statutes: <Amended on Dec. 27, 2016; Jan. 17, 2017; Jan. 16, 2018> |
| 5. | Permission to use administrative property under Article 30 of the State Property Act (the permission period shall expire when the project for developing publicly-funded private rental housing is completed); |
| (2) | A project implementer who intends to be deemed to have obtained authorization, permission, etc. listed in paragraph (1) shall submit documents prescribed by the relevant statutes |
| (3) | A designation authority who intends to approve a district plan that contains a matter falling under any subparagraph of paragraph (1) shall consult in advance with the head of the relevant administrative agency by appending the related documents submitted by the project implementer. In such cases, the head of the relevant agency shall present his or her opinion within 30 days from the receipt of the request for consultation, and if no opinion is presented within such period, he or she shall be deemed to have no opinion. |
| Article 29 (Authorization and Permission Deemed Granted under Other Statutes) |
| (1) | Where an approval or public notice of an approval, or an approval of modification or public notice of an approval of modification, of a district plan is made under Article 28, the following approval, permission, authorization, decision, reporting, designation, license, consultation, consent, revocation, deliberation, etc. (hereinafter referred to as "authorization, permission, etc.") shall be deemed obtained; and where a public notice on approval of a district plan is made, a public notice or announcement of authorization, permission, etc. shall be deemed made under the following statutes: <Amended by Dec. 27, 2016; Jan. 17, 2017; Jan. 16, 2018; Mar. 31, 2020> |
| 5. | Permission to use administrative property under Article 30 of the State Property Act (the permission period shall expire when the project for developing publicly-funded private rental housing is completed); |
| 23. | Authorization for or reports on the plan to construct an electric facility for private use pursuant to Article 8 of the Electric Safety Management Act; |
| 29. | Permission to perform river conservation works and approval of an implementation plan of river conservation works under Article 30 of the River Act, permission to occupy and use a river under Article 33 of said Act, permission to use river water under Article 50 of said Act. |
| (2) | A project implementer who intends to be deemed to have obtained authorization, permission, etc. listed in paragraph (1) shall submit documents prescribed by the relevant statutes. |
| (3) | A designation authority who intends to approve a district plan that contains a matter falling under any subparagraph of paragraph (1) shall consult in advance with the head of the relevant administrative agency by appending the related documents submitted by the project implementer. In such cases, the head of the relevant agency shall present his or her opinion within 30 days from the receipt of the request for consultation, and if no opinion is presented within such period, he or she shall be deemed to have no opinion. |
[Enforcement Date: Jan. 1, 2021] Article 29
| Article 30 (Special Cases concerning Related Statutes) |
| (1) | Where it is necessary to modify a basic urban or Gun plan defined in subparagraph 3 of Article 2 of the National Land Planning and Utilization Act to designate a promotion district proposed by the person falling under Article 23 (1) 1, the Mayor/Do Governor shall hold a public hearing and gather the opinions of the local council, etc. at the same time and determine whether to modify such plan before the expiration of the period prescribed by Presidential Decree within 90 days. <Amended on Jan. 16, 2018> |
| (2) | Where it is necessary to modify a basic urban or Gun plan to designate, modify or cancel the promotion district proposed by the person falling under Article 23 (1) 2 and where a designation authority publicly notifies such designation, modification or cancellation of the promotion district, modification to the basic urban or Gun plan shall be deemed finalized or approved by the competent Do Governor under Articles 18, 22, and 22-2 of the National Land Planning and Utilization Act. <Newly Inserted on Jan. 16, 2018> |
| (3) | When a district plan is approved under Article 28, the Minister of Land, Infrastructure and Transport, the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Special Self-Governing Province Governor, or the head of a Si or Gun (excluding the head of a Gun in a Metropolitan City; hereafter the same shall apply in this Article) shall prioritize reflecting it in the framework plan for sewerage management referred to in Article 4 of the Sewerage Act. In such cases, the Minister of Environment shall approve the framework plan for sewerage management within 30 days from receipt of the application for the approval thereof from the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Special Self-Governing Province Governor, or the head of a Si or Gun, whoever is competent, in the absence of good cause to the contrary. <Amended on Jan. 16, 2018> |
| (4) | When a district plan is approved under Article 28, the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Special Self-Governing Province Governor, or the head of a Si or Gun shall prioritize reflecting it in the framework plan for sewerage management referred to in Articles 5 and 6 of the Sewerage Act. In such cases, the Minister of Environment shall approve the framework plan for sewerage management within 40 days from receipt of the application for the approval thereof from the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Special Self-Governing Province Governor, or the head of a Si or Gun, whoever is competent, in the absence of good cause to the contrary. <Amended on Jan. 16, 2018> |
| Article 31 (Special Cases concerning Development Restriction Zones) |
| (1) | If it is necessary to designate a promotion district in a development restriction zone, the designation of which must be released under Article 3 (1) of the Act on Special Measures for Designation and Management of Development Restriction Zones, the project implementer falling under Article 23 (1) 2 may propose the designation authority to modify the urban or Gun management plan to release the designation as the development restriction zone. In such cases, the designation authority may proceed with procedures for the release of designation as the development restriction zone together with procedures for the designation of a promotion district or request relevant institutions to take such procedures. <Amended on Jan. 16, 2018> |
| (2) | In either of the following cases, an area released from designation as a development restriction zone shall be deemed to be reinstated to a development restriction zone: |
| 1. | Where no district plan referred to in Article 28 is established and publicly notified within two years from the date an urban or Gun management plan relating to the release from designation as a development restriction zone under paragraph (1) is determined and publicly notified; |
| 2. | Where designation as a promotion district is released under Article 27 (1) 1. |
| (3) | The Minister of Land, Infrastructure and Transport shall publicly notify the fact of reinstatement to a development restriction zone under paragraph (2), as prescribed by Presidential Decree, and notify the details thereof to the Mayor/Do Governor having jurisdiction over the relevant area. |
| Article 32 (Committee for Integrated Deliberation of Publicly-Funded Private Rental Housing) |
| (1) | In order to examine and deliberate on the following matters related to approval of district plans, including urban plans, construction, environment, transportation, and disasters, a designation authority shall establish a committee for integrated deliberation of publicly-funded private rental housing (hereinafter referred to as "Integrated Deliberative Committee"): <Amended on Oct. 24, 2017; Jan. 16, 2018> |
| 2. | Measures to improve transportation systems in a metropolitan area under the Special Act on the Management of Intercity Transport in Metropolitan Areas; |
| 9. | Deliberation on construction of buildings under the Building Act; |
| 10. | Other matters referred to the Integrated Deliberative Committee as deemed necessary by the designation authority. |
| (2) | The Integrated Deliberative Committee shall consist of not more than 24 members, including one chairperson and one vice chairperson. |
| (3) | The following persons shall be members of the Integrated Deliberative Committee, and the chairperson shall be elected by members from among those falling under subparagraph 2: <Amended on Jan. 17, 2017; Oct. 24, 2017; Jan. 16, 2018> |
| 1. | The heads of relevant departments belonging to the Ministry of Land, Infrastructure, relevant administrative agencies (referring to agencies with which prior consultation is to be held under Article 24 (1)) or the designation authority, who are public officials prescribed by Presidential Decree; |
| 2. | Persons commissioned by the designation authority from among experts in the fields of urban planning, construction, transport, environment, disasters, etc., who have extensive knowledge on and experience in the development of housing sites and housing projects; |
| 3. | Persons recommended by the chairpersons of the Central Urban Planning Committee (limited to where the Minister of Land, Infrastructure and Transport has designated a promotion district) or a City/Do Urban Planning Committee, including at least one person each from among urban planning experts, design experts, and environment experts who are members thereof; |
| 4. | Persons recommended by the chairperson of the National Transport Commission or a local transport committee established under the National Transport System Efficiency Act, from among members thereof; |
| 6. | Persons recommended by the chairperson of the mountainous district management committee having authority to deliberate on plans to use mountainous districts which belong to the relevant housing zone under the Mountainous Districts Management Act, from among members thereof; |
| 7. | Persons recommended by the chairperson of the committee having authority to deliberate on energy-use plans under the Energy Use Rationalization Act, from among members thereof; |
| 9. | Persons recommended by the chairperson of the City/Do Educational Environment Protection Committee established under the Educational Environment Protection Act, from among members thereof; |
| 10. | Persons recommended by the chairperson of the Landscape Committee established under the Landscape Act, from among members thereof; |
| 11. | Persons recommended by the chairperson of a building committee established under the Building Act, from among members thereof. |
| (4) | A majority of the members of the Integrated Deliberative Committee shall constitute a quorum, and any decision thereof shall require the concurring vote of a majority of those present. |
| (5) | The Integrated Deliberative Committee shall tape-record the details of meetings and prepare minutes. |
| (6) | A project implementer who intends to undergo an integrated deliberation shall submit the documents related to the matters specified in the subparagraphs of paragraph (1), as prescribed by Presidential Decree, and may submit his or her final opinion to the Integrated Deliberative Committee. |
| (7) | The Integrated Deliberative Committee shall comprehensively examine and deliberate on matters concerning approval of a district plan, project implementer's final written opinion, written opinions of the relevant institutions, etc. In such cases, the designation authority shall approve the district plan reflecting the result of the deliberation unless there is good cause not to do so. |
| (8) | Where any matter has undergone examination and deliberation by the Integrated Deliberative Committee, it shall be deemed to have undergone examinations and deliberations of the following committees: <Amended on Oct. 24, 2017; Jan. 16, 2018> |
| 1. | The Central Urban Planning Committee (limited to where the Minister of Land, Infrastructure and Transport has designated a promotion district) and a City/Do Urban Planning Committee; |
| 9. | The Central Building Committee established under the Building Act: Provided, That the same shall only apply where approval of a district plan and approval of a project plan (including building permission) are simultaneously processed with the designation of a promotion district under Article 33. |
[Title Amended on Jan. 16, 2019]
| Article 33 (Special Cases concerning Procedures for Designation of Promotion Districts) |
| (1) | Where a promotion district does not exceed the size prescribed by Presidential Decree within 100 thousand square meters, the project implementer may, in applying for the designation as a promotion district, file an application including the following approval or permission. In such cases, the designation authority shall grant the approvals or permission in line with the designation of the promotion district: <Amended on Jan. 19, 2016> |
| (2) | Where a designation authority has undergone deliberation of the Integrated Deliberative Committee to grant the approval of a district plan in line with the designation of a promotion district under paragraph (1) in an urban area, instead of a green area under Article 36 (1) of the National Land Planning and Utilization Act, an area prescribed by Presidential Decree, it may omit the deliberation of the Central Urban Planning Committee or a City/Do Urban Planning Committee under Article 24 (3). <Newly Inserted on Jan. 16, 2018> |
| (3) | Where a designation authority seeks to designate or modify a promotion district, the surface area of which does not exceed that prescribed by Presidential Decree, up to 100,000 square meters, in a residential area defined in Article 36 (1) 1 (a) of the National Land Planning and Utilization Act, it may omit the deliberation of the Central Urban Planning Committee or a City/Do Urban Planning Committee. <Amended on Jan. 16, 2018> |
| (4) | A proposal for designation or modification of a promotion district submitted by a project implementer under paragraph (3) shall include a land use plan and other matters prescribed by Presidential Decree. <Amended on Jan. 16, 2018> |
| Article 34 (Expropriation of Land) |
| (1) | Where a project implementer has obtained consent from persons who own at least 2/3 of the area of the land of a promotion district and the number of such persons is at least 1/2 of the total number of landowners, he or she may expropriate or use the remaining land, etc.: Provided, That if a person falling under Article 23 (1) 2 is a project implementer, he or she may expropriate or use it without applying the requirements of the main clause hereof. |
| (4) | With regard to an expropriation or use of land, etc. under paragraph (1), necessary matters, such as the base date of computation of requirements for consent and the methods of computing the number of persons who have consented, shall be prescribed by Presidential Decree; and except as otherwise expressly provided in this Act, the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects shall apply mutatis mutandis thereto. <Amended on Jan. 17, 2017> |
| Article 35 (Special Cases concerning Construction of Public Support Private Rental Housing in Promotion Districts) |
| (1) | In order to ensure the smooth construction of public support publicly-funded private rental housing in a promotion district, the designation authority shall apply the following lenient standards: <Amended on Jan. 17, 2017; Jan. 16, 2018> |
| 1. | Notwithstanding restrictions on the use, types, scale, etc. of buildings within special-purpose areas under Article 76 of the National Land Planning and Utilization Act, it shall be permitted to install buildings except facilities prescribed by Presidential Decree, such as recreational facilities and general accommodation facilities, among buildings other than publicly-funded private rental housing: Provided, That where it is intended to designate a promotion district in a residential area pursuant to Article 33 (3), exceeding the scope permitted by special-purpose area, the designating authority shall submit the case to the Integrated Deliberative Committee for deliberation; |
| (2) | In order to ensure the smooth construction of publicly-funded private rental housing in a promotion district, the designation authority shall apply the following lenient standards within the scope prescribed by Presidential Decree, notwithstanding the relevant provisions set out below: <Amended on Jan. 19, 2016; Jan. 16, 2018> |
| (3) | Where a district-unit plan is modified to construct publicly-funded private rental housing on the land developed by the State, a local government, the Korea Land and Housing Corporation, or a local public corporation, paragraphs (1) and (2) shall apply even where no promotion district is designated. <Amended on Jan. 16, 2018> |
[Title Amended on Jan. 26, 2018]
| Article 35-2 (Supply of Housing Resulting from Relaxation of Floor Area Ratios in Promotion Districts) |
Where a project plan is approved or building permission is granted in a promotion district with relaxed floor area ratios to promote the supply of publicly-funded private rental housing, Article 21-2 shall apply mutatis mutandis to the construction and supply of rental housing, cash payment for the land attached thereto, building of mixed-support facilities and other matters. In such cases, "approval authority, etc." shall be construed as "designation authority or approval authority, etc.", and "district unit plan" as "district unit plan before designation of a promotion district", respectively. [This Article Newly Inserted on Jan. 16, 2018]
| Article 36 (Special Cases concerning the State Property Act) |
| (1) | Notwithstanding the State Property Act, the Public Property and Commodity Management Act, and other relevant statutes, the State and a local government may grant a project implementer permission to use State property or public property, or sell or lease them by free contract. In such cases, the State and local government may determine the period of validity of the permission for use or lending within 50 years. |
| (2) | The State property referred to in paragraph (1) shall be limited to the railroads, reservoirs, or parking lots that have undergone consultation with the Minister of Economy and Finance for use to the extent that serves their original functions, of the administrative property managed by the Minister of Land, Infrastructure and Transport. |
| (3) | Notwithstanding the State Property Act and the Public Property and Commodity Management Act, the State and a local government may allow a project implementer to install a permanent facility on the State property or public property for which permission for use or lending has been granted under paragraph (1). In such cases, the ownership of the relevant permanent facility shall be vested in the project implementer until such State property or public property is returned, unless any separate agreement is made between the State, the local government or any other relevant institution and the project implementer. |
| Article 37 (Modification of Utilization Plans for Previous Real Estate of Relocated Public Institutions) |
| (1) | Where a purchasing public institution intends to sell any of its previous real estate for which utilization plan is established under Article 43 (5) of the Special Act on the Construction and Development of Innovation Cities for construction of publicly-funded private rental housing, it may request that the Minister of Land, Infrastructure and Transport modify the utilization plan for such previous estate. <Amended on Dec. 26, 2017; Jan. 16, 2018> |
| (2) | The Minister of Land, Infrastructure and Transport in receipt of a request under paragraph (1), may modify the utilization plan for the previous real estate following the deliberation of the Seoul Metropolitan Area Readjustment Committee established under Article 21 of the Seoul Metropolitan Area Readjustment Planning Act, after holding consultation with the Mayor/Do Governor or the head of the Si/Gun/Gu having jurisdiction over the location of the relevant previous real estate. |
| Article 38 (Utilization of Unsold Sites in Completed Project Districts) |
Where any land developed by the State, a local government, a public institution, or a local public corporation is not sold until after the completion thereof, the designation authority may designate all or part of the relevant land as a promotion district.
| Article 39 (Supply of Developed Land) |
| (1) | A project implementer shall supply land developed by a project for development of a promotion district (excluding the land directly used by the project implementer) as specified in the district plan. |
| (2) | Matters necessary for the use of land supplied under paragraph (1), procedures, methods, and subjects for the supply thereof, and the terms and conditions of the supply, etc. shall be prescribed by Presidential Decree. |
| Article 39-2 (Completion Inspection) |
| (1) | Where a project implementer completes construction works for a project for developing a promotion district, he or she shall prepare a construction completion report and undergo a completion inspection by the head of a Si/Gun/Gu, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That where a project implementer is the Korea Land and Housing Corporation, or a local public corporation, the authority of completion inspection granted to the head of a Si/Gun/Gu may be entrusted to the Korea Land and Housing Corporation or a relevant local public corporation. |
| (2) | The head of a Si/Gun/Gu may request a State agency, local government, or the head of a public institution which will acquire or manage the public facilities included in details of a construction completion report (including infrastructure prescribed in Article 28 (2)) to participate in a completion inspection. In such cases, the head of an institution or organization shall comply with such request except in an extenuating circumstance. |
| (3) | Where a completion inspection shows that the project for the construction of publicly-funded private rental housing is completed in accordance with an implementation plan, the head of a Si/Gun/Gu shall issue a certificate for completion inspection to the project implementer; and where an inspection shows that the construction is not completed in accordance with the implementation plan, he or she shall, without delay, issue an order to take necessary measures, such as supplementary construction. |
| (4) | Where a project implementer has undergone a completion inspection, he or she shall be deemed to have undergone a completion inspection or authorization for completion for the relevant project in accordance with the authorization, permission, etc. deemed granted under Article 29. |
| (5) | Except as otherwise provided in paragraphs (1) through (4), matters necessary for undergoing completion inspection, such as public notice of construction completion, procedures for applying for completion inspection and other matters shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
[This Article Newly Inserted on Jan. 16, 2018]
| (1) | Where a project implementer falls under any of the following cases, the designation authority may revoke permission or approval granted under this Chapter or issue an order to suspend or alter the relevant construction works or to alter, modify, relocate, etc. facilities or goods: <Amended on Jan. 16, 2018> |
| 1. | Where he or she obtains permission or approval under this Chapter by fraud or other improper means; |
| 2. | Where he or she implements the project in violation of any of the details of the approval or approval of modification of a district plan granted under Article 28 (1); |
| 3. | Where it becomes impossible to continuously execute a promotion district development plan or a housing construction project due to a change in circumstance; |
| 4. | Where he or she fails to undergo a completion inspection under Article 39-2. |
| (2) | Where a designation authority intends to revoke permission or approval under paragraph (1), it shall hold a hearing. |
| (3) | When a designation authority issues a disposition or order under paragraph (1), it shall publicly notify such fact as prescribed by Presidential Decree. |
| Article 41 (Application Mutatis Mutandis of Relevant Statutes) |
The Urban Development Act shall apply mutatis mutandis to those matters not prescribed in this Act concerning the designation of a promotion district, implementation of a project, vesting of a public facility, the supervision, completion inspection and others of a development project. <Amended on Jan. 16, 2018>
| Article 41-2 (Application Mutatis Mutandis to Projects outside Promotion Districts) |
Articles 25, 26 (3) through (6), 28, 28-2, 29 through 31, 34, 36, 39, 39-2, 40, and 62 shall apply mutatis mutandis to projects for building infrastructure outside a promotion district and other matters to facilitate execution of a project for developing publicly-funded private rental housing. [This Article Newly Inserted on Jan. 16, 2018]
CHAPTER V SUPPLY, RENTAL AGREEMENTS, AND MANAGEMENT OF PRIVATE RENTAL HOUSING
| Article 42 (Supply of Private Rental Housing) |
| (1) | A rental business entity shall supply private rental housing in accordance with the following standards on the eligibility and selection methods of lessees, etc.: <Amended on Jan. 16, 2018; Aug. 18, 2020> |
| 1. | In cases of publicly-funded private rental housing: Based on standards prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport to ensure residential stability for those entitled to residential support; |
| 2. | In cases of long-term private rental housing: Based on the standards prescribed by a rental business entity. |
| (2) | A lessee of publicly-funded private rental housing shall meet the eligibility prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport; and shall not obtain publicly-funded private rental housing by fraud or other improper means. <Amended on Jan. 16, 2018> |
| (3) | Articles 20, 54, 55, and 57 through 63, 64 and 65 of the Housing Act shall not apply to the supply of private rental housing: Provided, That some of the provisions may apply as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport in order to facilitate the process of recruiting and managing lessees, including checking eligibility of lessees. <Newly Inserted on Jan. 16, 2018; Apr. 23, 2019> |
| (4) | Where a rental business entity which has constructed or purchased at least 30 units of private rental housing supplies the private rental housing for the first time, he or she shall file a report thereon to the head of the competent Si/Gun/Gu, as prescribed by Presidential Decree. <Newly Inserted on Jan. 17, 2017; Jan. 16, 2018> |
| (5) | Upon receiving a report on supplying publicly-funded private rental housing under paragraph (4), the head of a Si/Gun/Gu shall review the details and accept it if it deems the report complies with this Act. <Newly inserted on Jun. 9, 2020> |
| (6) | The head of a Si/Gun/Gu shall notify the reporting person of whether his or her report on supplying long-term private rental housing or short-term private rental housing is accepted within seven days of receiving the report under paragraph (4). <Newly Inserted on Jun. 9, 2020> |
| (7) | Where the head of a Si/Gun/Gu fails to notify the reporting person of receipt of a report or of an extension of the processing period under statutes or regulations related to treatment of civil petitions within a period specified in paragraph (6), the report shall be deemed received on the day following the expiry date of such period (referring to the relevant processing period if the processing period is extended or re-extended pursuant to statutes or regulations related to treatment of civil petitions). <Newly Inserted on Jun. 9, 2020> |
| Article 42-2 (Verification of Taking Occupancy of Publicly-Funded Private Rental Housing and Another Housing Unit) |
| (1) | The Minister of Land, Infrastructure and Transport and the head of a local government may ascertain whether there is any lessee (referring to the party to a rental agreement; hereafter the same shall apply in this Article) who has taken occupancy of both publicly-funded private rental housing and public rental housing under subparagraph 1 (a) of Article 2 of the Special Act on Public Housing (hereinafter referred to as "public rental housing") or who has signed two separate agreements. |
| (2) | A rental business entity shall notify the agency designated and publicly notified by the Minister of Land, Infrastructure and Transport (hereafter in this Article referred to as "designated agency for computerized management") of information regarding a lessee of publicly-funded private rental housing: |
| 2. | Resident registration number of the lessee; |
| 3. | Type of private rental housing; |
| 4. | Address of the area of residence; |
| (3) | A designated agency for computerized management shall electronically manage the information prescribed in paragraph (2); and shall formulate measures necessary to secure stability in order to protect such information from loss, theft, alteration, or corruption. |
| (4) | Methods and procedures for ascertaining those taking occupancy of both publicly-funded private rental housing and public rental housing, signing of both agreements, measures against those who have moved into two separate housing units, measures against the contractors, etc. shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
[This Article Newly Inserted on Jan. 16, 2018]
| Article 42-3 (Verification of Eligibility of Lessees) |
Where necessary for verifying the eligibility of a lessee (including a person who applies for taking occupancy and a lessee under agreement; hereafter the same shall apply in this Article, and Articles 42-4 and 42-6), a rental business entity may verify income data after receiving them from the lessee, his or her spouse, and a member of the same household as the lessee or his or her spouse (hereinafter referred to as "lessee, etc."). <Amended on Apr. 23, 2019> [This Article Newly Inserted on Jan. 16, 2018]
[Title Amended on Apr. 23, 2019]
| Article 42-4 (Requests for Verifying Eligibility of Lessees) |
| (1) | A rental business entity may request the Minister of Land, Infrastructure and Transport to verify the eligibility of a lessee in accordance with Articles 42-5 through 42-7, if necessary for verifying the eligibility of a lessee. <Newly Inserted on Apr. 23, 2019> |
| (2) | Where the Minister of Land, Infrastructure and Transport deems it necessary to verify the eligibility of a lessee, as requested by a rental business entity under paragraph (1), for the residential stability, etc. of a lessee, he or she may request the lessee, etc. to submit a written consent necessary to receive the following information or data: <Amended on Apr. 23, 2019> |
| 1. | Data or information regarding the balance, installment, and amount paid of deposits, installment deposits, savings and the value of securities or certificates of financial assets such as securities among data or information regarding financial assets and financial transactions under subparagraphs 2 and 3 of Article 2 of the Act on Real Name Financial Transactions and Confidentiality (hereinafter referred to as "financial information, etc."); |
| 3. | Premiums paid for insurance policies referred to in the subparagraphs of Article 4 of the Insurance Business Act, refunds, and amount paid (hereinafter referred to as "insurance information"). |
| (3) | Where the Minister of Land, Infrastructure and Transport requests the submission of written consent pursuant to paragraph (2), the relevant lessee, etc. shall submit written consent. <Newly Inserted on Apr. 23, 2019> |
| (4) | Matters necessary for the methods of requesting verification, methods of obtaining consent, procedures therefor, etc. under paragraphs (1) through (3), and specific data or information shall be prescribed by Presidential Decree. <Amended on Apr. 23, 2019> |
[This Article Newly Inserted on Jan. 16, 2018]
[Title Amended on Apr. 23, 2019]
| Article 42-5 (Provision of Financial Information) |
| (1) | Notwithstanding Article 4 (1) of the Act on Real Name Financial Transactions and Confidentiality and Article 32 (1) of the Credit Information Use and Protection Act, the Minister of Land, Infrastructure and Transport may request the head of a financial institution, etc. (referring to financial companies, etc. under subparagraph 1 of Article 2 of the Act on Real Name Financial Transactions and Confidentiality and credit information collection agency under Article 25 of the Credit Information Use and Protection Act; hereinafter the same shall apply) to provide financial information, credit information or insurance information (hereinafter referred to as "financial information, etc.") by written consent submitted by a lessee, etc., in electronic form, a switch from paper form, if it is deemed necessary to verify the eligibility of a lessee under Article 42-4 (2). <Amended on Apr. 23, 2019> |
| (4) | Financial information, etc. under paragraphs (1) and (2) shall be requested and provided via the information and communications network under Article 2 (1) 1 of the Act on Promotion of Information and Communications Network Utilization and Information Protection: Provided, That this shall not apply in extenuating circumstances, such as where the information and communications network malfunctions. |
| (5) | Requests for, and provision of, financial information, etc. under paragraphs (1), (2), and (4) and other necessary matters shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Jan. 16, 2018]
| Article 42-6 (Request for Data) |
| (1) | If it is deemed necessary to verity the eligibility of a lessee under Article 42-4 (2), the Minister of Land, Infrastructure and Transport may request the head of a relevant institution to provide the following data regarding lessee, etc. In such cases, the head of a relevant institution requested to provide such data shall comply with such request unless there is a compelling reason not to do so: <Amended on Apr. 23, 2019> |
| 2. | Data on national taxes and local taxes; |
| 3. | Data on various types of pension, insurance and benefits, such as national pension, public official pension, military pension, pension for private school teachers and staff, special post offices pension, pension for persons with disabilities, health insurance, employment insurance, industrial accident compensation insurance, and veterans benefits; |
| (2) | Data provided to the Minister of Land, Infrastructure and Transport under paragraph (1) and to the institution to which business affairs are delegated or entrusted under Article 62 shall be exempt from use fees, commissions, etc. |
[This Article Newly Inserted on Jan. 16, 2018]
| Article 42-7 (Collection of Data and Information) |
| (1) | The Minister of Land, Infrastructure and Transport, the designated agency for computerized management under Article 42-2, a rental business entity and the head of an institution to whom the business affairs prescribed in Articles 42-4 through 42-6 are delegated or entrusted under Article 62 may collect, maintain, retain or utilize the data and information provided for the supply of private rental housing under Articles 42-2 through 42-6 within the scope of the purposes for which the data and information are provided. <Amended on Apr. 23, 2019> |
| (3) | Any person who formerly or currently engaged in the affairs under Articles 42-2 through 42-6 shall neither use any data and information obtained under Articles 42-2 through 42-6 for any purposes other than those prescribed in this Act nor provide or divulge the same to any third person or institution. <Amended on Apr. 23, 2019> |
[This Article Newly Inserted on Jan. 16, 2018]
| Article 43 (Mandatory Rental Periods and Transfers) |
| (1) | A rental business entity shall continue to lease a private rental house from the time prescribed by Presidential Decree, such as the date of registration as a rental business entity, until a period set under subparagraph 2, 4, or 5 (hereinafter referred to as a "mandatory rental period"), and shall not transfer it before the expiration of such period. <Amended on Aug. 18, 2020> |
| (2) | Notwithstanding paragraph (1), a rental business entity may transfer a private rental house to another rental business entity after filing a report thereon with the head of the competent Si/Gun/Gu even during the mandatory rental period, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. In such cases, the transferee shall succeed to the transferor's status as a rental business entity by the universal title of the transferor, and such purport shall be specified in the acquisition contract. |
| (3) | Where a rental business entity intends to transfer a private rental housing after the mandatory rental period expires, he or she shall report to the head of a Si/Gun/Gu as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. In such cases, the latter part of paragraph (2) shall apply where the transferee registers as a rental business entity. <Amended on Jun. 9, 2020> |
| (4) | Notwithstanding paragraph (1), where a rental business entity falls under any of the following cases, he or she may discontinue leasing and cancel the registration or transfer such private rental house to a person who is not a rental business entity, with approval from the head of the competent Si/Gun/Gu, as prescribed by Presidential Decree even during the mandatory rental period: <Amended on Aug. 18, 2020> |
| 1. | Where he or she is unable to continue to lease a private rental house due to bankruptcy, insolvency, or any other financial condition, etc. prescribed by Presidential Decree; |
| 2. | Where he or she sells any of the houses he or she originally intended to continue to lease for at least 20 years under Article 21-2 (1) 4 after 10 years of lease to raise operating expenses, etc. necessary for continuing to lease publicly-funded private rental housing for at least 20 years; |
| 3. | Where he or she cancels registration pursuant to Article 6 (1) 11. |
| (5) | Where a rental business entity files a report to transfer a private rental house to another rental business entity during a mandatory rental period under paragraph (2) or a publicly-funded private rental house after the mandatory rental period expires under paragraph (3), the head of a Si/Gun/Gu shall review the details of the report and accept it if it conforms with this Act. <Newly Inserted on Jun. 9, 2020; Aug. 18, 2020> |
| (6) | A rental business entity may transfer a long-term private rental house reported under paragraph (3) and a publicly-funded private rental house for which a report is accepted under paragraph (5). <Amended on Jun. 9, 2020; Aug. 18, 2020> |
| (1) | Where a rental business entity leases out a private rental house, the initial rent (including rental security deposit and monthly rent; hereinafter the same shall apply) shall be as follows: <Amended on Jan. 16, 2018; Apr. 23, 2019; Aug. 18, 2020> |
| 1. | Publicly-funded private rental housing: Rents determined by the rental business entity according to standards prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport to ensure residential stability for those entitled to residential support and the like; |
| 2. | Long-term private rental housing: Rents determined by the rental business entity: Provided, That the rents prescribed by the previous rental agreement where there is an existing rental agreement (hereinafter referred to as "previous rental agreement") as at the time the private rental house is registered under Article 5. |
| (2) | Where a rental business entity requests rent increase during the rental period, he or she shall charge rent at a rate not exceeding five percent of the rent, with a rate of increase not exceeding that prescribed by Presidential Decree, taking into account the house price index, fluctuations of rental rates in the adjacent area, number of rental households, etc. <Amended on Jan. 16, 2018; Aug. 14, 2018; Apr. 23, 2019> |
| (3) | A rental business entity shall not charge increased rent under paragraph (2) within one year from the conclusion of a rental agreement or agreed rent increase. <Newly Inserted on Aug. 14, 2018> |
| (4) | The applicable standards for mutual conversion of rental security deposit and monthly rents when a rental business entity requests an increase in rents pursuant to paragraph (2) shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Newly Inserted on Jan. 16, 2018; Aug. 14, 2018> |
| Article 44-2 (Claim for Refund of Overpaid Rents) |
Where a lessee has paid rent exceeding the rate of increase prescribed in Article 44 (2), he or she may claim a refund of the amount overpaid. [This Article Newly Inserted on Aug. 14, 2018]
| Article 45 (Revocation and Termination of Rental Agreements) |
| (1) | A rental business entity may revoke, terminate, or refuse to renew a rental agreement even during the mandatory rental period, when the lessee violates any of his or her obligations, it is impossible to continue the relevant lease, or any other cause prescribed by Presidential Decree occurs. <Amended on Aug. 14, 2018> |
| (2) | A lessee may revoke or terminate a rental agreement in cases prescribed by Presidential Decree, such as where a serious defect is deemed to exist in rental housing, making it impracticable to reside therein. <Newly Inserted on Aug. 14, 2018> |
| Article 46 (Reporting of Rental Agreements) |
| (1) | A rental business entity shall report matters regarding a rental agreement prescribed by Presidential Decree, such as the rental period, rents, and the lessee of the private rental house (limited to quasi-housing units), to the head of the competent Si/Gun/Gu within three months from the date a rental agreement is concluded (referring to the date of registering as a private rental house where there is a previous rental agreement) or the date a change is made to a rental agreement. <Amended on Jan. 16, 2018; Apr. 23, 2019> |
| (2) | Notwithstanding paragraph (1), where a rental business entity who rents out multi-family housing units to at least 100 households intends to report any change of any matters regarding a rental agreement, he or she shall report it by not later than one month before a scheduled date of change. <Newly Inserted on Jan. 16, 2018> |
| (3) | The head of a Si/Gun/Gu may recommend that rent be adjusted where the rent reported under paragraph (2) has increased by more than the rate of increase prescribed in Article 44 (2) or where changed economic circumstances of a relevant region are deemed to necessitate adjustment. <Newly Inserted on Jan. 16, 2018; Aug. 14, 2018> |
| (4) | A rental business entity requested to make adjustment under paragraph (3) shall report it again within 10 days from the date he or she is notified of recommendations. <Newly Inserted on Jan. 16, 2018> |
| (5) | Where the head of a Si/Gun/Gu receives a report under paragraph (1) or an adjusted report under paragraph (4) or where he or she does not recommend adjustment after receiving a report under paragraph (2), he or she shall accept the report after review if it complies with this Act. <Newly Inserted on Aug. 14, 2018; Jun. 9, 2020> |
| (6) | Matters necessary for reporting procedures, etc. under paragraphs (1), (2), and (4) shall be prescribed by Presidential Decree. <Amended on Jan. 16, 2018; Aug. 14, 2018> |
| Article 47 (Standard Form Rental Agreement) |
| (1) | A rental business entity who intends to enter into a rental agreement for a private rental house shall use a standard form rental agreement prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
| (2) | A standard form rental agreement referred to in paragraph (1) shall include the following information: <Amended on Aug. 14, 2018; Aug. 18, 2020> |
| 1. | Matters concerning the rent and restrictions on increases thereof under Article 44; |
| 2. | Contract rental period; |
| 3. | Matters concerning guarantee for rental security deposit under Article 49; |
| 4. | Matters concerning the title relationship of the private rental house, such as senior security and delinquency in payment of the national tax or local tax; |
| 5. | Matters concerning the rights and obligations of the rental business entity and the lessee; |
| 6. | Matters concerning the repair, management, and maintenance of the private rental house; |
| 7. | Matters concerning the remainder of a mandatory rental period and revocation or termination of a rental agreement under Article 45; |
| 8. | Other matters prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
| Article 48 (Rental Business Entity's Obligation to Provide Explanation) |
| (1) | A rental business entity who intends to conclude a rental agreement or modify any provision thereof, such as conversion of payment method from monthly rent to rental security deposit, shall explain the following to the lessee and procure his or her consent: <Amended on Jan. 16, 2018; Aug. 14, 2018; Aug. 18, 2020> |
| 1. | Matters prescribed by Presidential Decree, such as the guarantee period for rental security deposit under Article 49; |
| 2. | Matters concerning the title relationship of the private rental house, such as senior security and delinquency in payment of the national tax or local tax. In this regard, a certified transcript of the register and a tax payment certificate shall be presented; |
| 3. | Matters concerning the remainder of a mandatory rental period and revocation or termination of a rental agreement under Article 45; |
| 4. | Matters concerning limits on rent increase under Article 44 (2). |
| (2) | Where at least two rental agreements exist for private rental housing or in any other cases prescribed by Presidential Decree, a rental business entity shall provide the persons who intend to enter into a rental agreement with information on the rent and rental security deposit of the housing recorded in the fixed date register under Article 3-6 (2) of the Housing Lease Protection Act. <Newly Inserted on Aug. 18, 2020> |
| (3) | Matters necessary for the methods, procedures, etc. for explanation and confirmation under paragraph (1) the scope of provided information and the methods of providing information shall be prescribed by Presidential Decree. <Amended on Aug. 18, 2020> |
[Title Amended on Nov. 26, 2019]
| Article 49 (Guarantee for Rental Security Deposit) |
| (1) | A rental business entity shall purchase a guarantee for rental security deposit when leasing out any of the following private rental housing:<Amended on Apr. 23, 2019; Aug. 18, 2020> |
| 1. | Privately constructed rental housing; |
| 2. | Buy-to-rent private housing leased out after getting a preferred supply of all housing units sold in lots under Article 18 (6); |
| 3. | Buy-to-rent private housing (excluding buy-to-rent private housing falling under subparagraph 2) which leases out housing units of such number, not less than 100, as prescribed by Presidential Decree within the same housing complex; |
| 4. | Buy-to-rent private housing other than those prescribed in subparagraphs 2 and 3. |
| (2) | In purchasing a guarantee under paragraph (1), the amount of guarantee coverage shall be the full amount of rental security deposit: Provided, That where a rental business entity recruits lessees before receiving an inspection for use, the amount of guarantee coverage from the date of recruitment of lessees until the date of receiving the inspection for use shall be the amount obtained by deducting the amount of rental security deposit to be paid after receiving the inspection for use from the amount of rental security deposit. <Amended on Jan. 17, 2017> |
| (3) | In cases falling under all of the following cases, notwithstanding paragraph (2), the guarantee coverage may be in such amount, not less than the value of security rights plus the aggregate of rental security deposits minus the amount corresponding to 60/100 of the housing price, as prescribed by Presidential Decree: <Amended on Apr. 23, 2019> |
| 1. | Where revolving mortgage is separately established for each housing unit (where a revolving mortgage is established on a housing complex, the joint security for the mortgage may be canceled and registration of the alteration of the mortgage which reduces the maximum amount of related claims may be made); |
| 2. | Where the rental business entity has cleared restricted real rights (excluding revolving mortgage separately established for each housing unit under subparagraph 1), seizure, provisional seizure, provisional disposition, etc. taking priority over the rental security deposit; |
| 3. | Where the right to lease on a deposit basis is established upon a lessee's demand for the establishment of the right to lease on a deposit basis and the rental business entity's consent thereto; |
| 4. | Other cases prescribed by Presidential Decree, which are similar to the cases described in subparagraphs 1 through 3. |
| (4) | The subscription period of guarantee under paragraph (1) shall be from the time specified in the following subparagraphs until the date the mandatory rental period expires (where the lease is still in effect on the date the mandatory rental period expires, it shall be the date the rental agreement expires). In such cases, the rental business operator may re-assess the fees for guarantee under paragraph (1) on an annual basis and pay them in installments: <Amended on Jan. 17, 2017; Apr. 23, 2019; Aug. 18, 2020> |
| 1. | Private rental housing falling under paragraph (1) 1 and 2: Date on which a pre-use inspection is conducted (Where lessees are recruited before a pre-use inspection, referring to the recruitment date); |
| 2. | Where there is a rental agreement existing on the date of registration, from among private rental housing except for those specified in subparagraph 1: The date of registration of the private rental house; |
| 3. | Where there is no rental agreement existing on the date of registration, from among private rental housing except for those specified in subparagraph 1: The date the first rental agreement commences after the date of registration of the private rental house. |
| (5) | Where a rental business entity who has purchased a guarantee under paragraph (1) fails to pay the guarantee fee recalculated under paragraph (4) when one year has passed after purchasing the guarantee, the company providing such guarantee may terminate the guarantee contract: Provided, That this shall not apply where a lessee pays the guarantee fee. |
| (6) | Upon terminating a guarantee contract under paragraph (5), a guarantee company shall inform the head of the Si/Gun/Gu of the fact that the guarantee contract is terminated. <Newly Inserted on Aug. 18, 2020> |
| (7) | , Matters necessary for, among other things, the methods of payment of a guarantee fee when purchasing a guarantee under paragraph (1), the apportion ratio of incurred expenses, scope of rental security deposit to be covered by the guarantee, and the purchase and maintenance of, and withdrawal from, the guarantee shall be prescribed by Presidential Decree. <Amended on Aug. 18, 2020> |
| Article 50 (Restrictions on Use of Quasi-Housing) |
| (1) | No quasi-housing registered as private rental housing may be used for any non-residential purpose. |
| (2) | Where necessary to verify whether any quasi-housing registered as private rental housing is used for residential purpose, the head of the competent Si/Gun/Gu may require the rental business entity and the lessee thereof to submit necessary documents, etc. and direct a public official under his or her supervision to access the relevant quasi-housing unit to conduct an inspection or make necessary inquiries of related persons. In such cases, the rental business entity and the lessee shall comply with such request unless there is good cause not to do so. |
| Article 50-2 (Special Cases concerning Operation of Home-Based Child-Care Centers) |
| (1) | Where necessary to meet child care demand, a rental business entity of private rental housing may lease part of the relevant private rental housing to a person who intends to operate a home-care center under subparagraph 5 of Article 10 of the Child Care Act. |
| (2) | Notwithstanding Articles 42 and 44 (1), a rental business entity may set eligibility and selection methods of lessees and rents differently, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, when he or she leases private rental housing pursuant to paragraph (1). |
[This Article Newly Inserted on Nov. 26, 2019]
| Article 51 (Management of Private Rental Housing) |
| (1) | Matters necessary for the preparation, keeping, and other management of financial statements relating to privately constructed rental housing and buy-to-rent private housing prescribed by Presidential Decree shall be governed by the Multi-Family Housing Management Act, as prescribed by Presidential Decree. <Amended on Aug. 28, 2015> |
| (2) | Where the scale of private rental housing exceeds the scale prescribed by Presidential Decree, such as multi-family housing with not less than 300 households, a rental business entity shall entrust the management thereof to a housing management business entity defined in Article 2 (1) 15 of the Multi-Family Housing Management Act or perform in-house management thereof. <Amended on Aug. 28, 2015> |
| (3) | Where a rental business entity intends to perform in-house management of private rental housing pursuant to paragraph (2), he or she shall have necessary technical personnel and equipment prescribed by Presidential Decree and obtain approval from the head of the competent Si/Gun/Gu, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
| (4) | Where a rental business entity (including at least two rental business entities) manages private rental housing in the same Si (including the Special Metropolitan City, a Metropolitan City, a Special Self-Governing City, and a Special Self-Governing Province) or Gun, he or she may manage such housing jointly, as prescribed by Presidential Decree. |
| (5) | A private rental business entity may collect fees from lessees to cover expenses incurred in the management of private rental housing, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
| Article 52 (Council of Lessees' Representatives) |
| (1) | Lessees who live in a multi-family housing complex where a rental business entity supplies private rental houses in a number exceeding the number of households prescribed by Presidential Decree within at least 20 households may organize a council of lessees' representatives: Provided, That lessees who take occupancy in a multi-family housing complex prescribed by Presidential Decree among multi-family housing complexes, in which at least 150 units are supplied in the form of private rental housing, shall organize a council of lessees’ representatives. <Amended on Aug. 14, 2018> |
| (2) | When more than half of the expectant occupants have taken occupancy in rental houses, the rental business entity shall notify the lessees who have taken occupancy in the rental houses of the current status of occupancy and the fact that they can or shall organize a council of lessees' representatives, within 30 days from the date a majority of lessees have taken occupancy in the rental houses: Provided, That where the rental business entity fails to give notice as provided for in the main clause, the head of the competent Si/Gun/Gu may notify the lessees to enable them to form a council of lessees' representatives. <Amended on Aug. 14, 2018> |
| (3) | Where a lessee who shall organize a council of lessees’ representatives under the proviso of paragraph (1) fails to do so, a rental business entity shall assist him or her in organizing a council of lessees’ representatives as prescribed by Presidential Decree. <Newly Inserted on Aug. 14, 2018> |
| (4) | When a council of lessees' representatives is organized under paragraph (1), a rental business entity shall consult with the council on the following matters: <Amended on Aug. 14, 2018> |
| 1. | Formulating and revising the management regulations for the private rental housing; |
| 3. | Maintaining and repairing common areas, incidental facilities, and welfare facilities of the private rental housing; |
| 4. | Increasing and decreasing rents; |
| 5. | Other matters prescribed by Presidential Decree as necessary for maintaining, repairing, managing, etc. the private rental housing. |
| (5) | Matters necessary for organizing, operating, etc. a council of lessees' representatives under paragraph (1) shall be prescribed by Presidential Decree. <Amended on Aug. 14, 2018> |
| Article 53 (Accumulation of Reserves for Appropriations for Special Repairs) |
| (1) | A rental business entity of private rental housing under Article 51 (2) shall accumulate reserves for appropriations for special repairs necessary to cover expenses incurred in the replacement and repairs of main facilities (hereinafter referred to as "reserves for appropriations for special repairs"). <Amended on Jan. 17, 2017> |
| (2) | Where a rental business entity transfers private rental housing under Article 51 (2), he or she shall deliver the reserves for appropriations for special repairs accumulated to the council of occupants' representatives organized for the first time pursuant to Article 11 of the Multi-Family Housing Management Act. <Amended on Aug. 28, 2015; Jan. 17, 2017> |
| (3) | Matters necessary for, among other things, the rates, procedures for use, follow-up management and methods of accumulation, of reserves for appropriations for special repairs shall be prescribed by Presidential Decree. |
| (4) | Matters necessary for, among other things, the scope, timing, and methods of replacement and repairs, of main facilities referred to in paragraph (1) shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
| Article 54 (Special Cases concerning Quasi-Housing) |
None of Articles 51 through 53 shall apply to quasi-housing registered as private rental housing.
| Article 55 (Rental Housing Dispute Mediation Committee) |
| (1) | The head of a Si/Gun/Gu shall organize a rental housing dispute mediation committee (hereinafter referred to as "mediation committee") with persons who have abundant knowledge of and experience in rental housing (referring to private rental housing and public rental housing; hereinafter the same shall apply). <Amended on Jan. 17, 2017> |
| (2) | A mediation committee shall consist of not more than 10 members, including one chairperson, and matters necessary for operating a mediation committee as well as other procedural matters, shall be prescribed by Presidential Decree. <Amended on Aug. 14, 2018> |
| (3) | The head of the relevant local government shall serve as the chairperson. |
| (4) | Members other than the chairperson shall be appointed or commissioned by the head of a relevant Si/Gun/Gu from among any of the following persons; at least one person shall be chosen for each subparagraph; and at least six of the members shall be other than public officials: <Newly Inserted on Aug. 14, 2018> |
| 1. | Those majoring in laws, economics, real estate, and other academics related to housing and with at least one year experience working as an assistant professor at the schools prescribed in subparagraph 1, 2 or 5 of Article 2 of the Higher Education Act; |
| 2. | Lawyers, certified public accountants, certified public appraisers, or tax accountants, with at least one year’s experience in business affairs related to the relevant qualifications; |
| 4. | Public officials of at least Grade V performing affairs related to authorization, permission, etc. for private rental housing or public rental housing in the State or other local governments and who are recommended for membership by the head of a relevant institution; or public officials of at least Grade V performing affairs related to authorization, permission, etc. for private rental housing or public rental housing at a relevant local government; |
| 5. | An executive officer or employee of the Korea Land and Housing Corporation or a local public corporation who engages in business affairs related to private rental housing or public rental housing and who is recommended by the head of a relevant institution; |
| 6. | Those recommended by a civic group or consumer group related to rental housing. |
| (5) | Members who are not public officials shall serve a term of two years, and such term may be renewed only twice. <This Article Newly Inserted on Aug. 14, 2018> |
| Article 56 (Applications for Mediation of Disputes) |
| (1) | A rental business entity and a council of lessees' representatives may apply for mediation of any of the following disputes to a mediation committee: <Amended on Aug. 14, 2018> |
| 4. | Other matters prescribed by Presidential Decree. |
| (2) | A public housing business entity and a council of lessees' representatives may apply to a mediation committee for mediation of any of the following disputes: |
| 1. | Matters listed in the subparagraphs of paragraph (1); |
| 2. | Prices for conversion of public rental housing into housing sold in lots: Provided, That matters concerning approval for the conversion into housing sold in lots shall be excluded. |
| Article 57 (Effect of Mediation) |
If a rental business entity and a council of lessees' representatives accept a mediation proposal of the relevant mediation committee, it shall be deemed that an agreement on the terms, the same as a mediation protocol, has been concluded between the relevant parties.
CHAPTER VI SUPPLEMENTARY PROVISIONS
| Article 58 (Establishment of Association) |
| (1) | Rental business entities may establish a rental business trade association to promote the sound development of private rental business. |
| (2) | Housing rental management business entities may establish a housing rental management business trade association to efficiently perform the tasks of housing rental management business. |
| (3) | Each association established under paragraphs (1) and (2) (hereinafter referred to as "association") shall be a corporation. |
| (4) | An association shall be duly formed upon the completion of registration for its incorporation at the seat of its main office. |
| (5) | The rights and obligations of an association member to whom a disposition to suspend business operations is imposed by the Minister of Land, Infrastructure and Transport, the Mayor/Do Governor or the head of a Si/Gun/Gu, shall be suspended during the period of suspension of his or her business operations and qualifications, and he or she shall be disqualified from membership in the association, when his or her registration as a rental business entity is canceled. |
| Article 59 (Authorization to Incorporate Association) |
| (1) | In order to incorporate an association, promoters of at least five persons in excess of the number prescribed by Presidential Decree shall draft the articles of association and obtain authorization for such incorporation from the Minister of Land, Infrastructure and Transport after a resolution to incorporate is passed at the inaugural general meeting. |
| (2) | Upon granting authorization under paragraph (1), the Minister of Land, Infrastructure and Transport shall publicly announce such fact without delay. |
| Article 59-2 (Support for Rental Business) |
| (1) | The Minister of Land, Infrastructure and Transport or the head of a local government may have the Korea Land and Housing Corporation, a local public corporation or the Korea Real Estate Board under the Korea Real Estate Board Act (hereinafter referred to as the "Korea Real Estate Board") perform the following duties to facilitate the supply of private rental housing: Provided, That the Korea Real Estate Board may perform only the duties specified in subparagraphs 1, 4 and 5: <Amended on Apr. 23, 2019; Jun. 9, 2020> |
| 1. | Consultation on a project plan for publicly-funded private rental housing and feasibility analysis; |
| 2. | Consultation on plans to set up infrastructure in formulating a project plan; |
| 3. | Support for the construction of publicly-funded private rental housing, financing, etc.; |
| 4. | Support for the invitation and selection of lessees and the surrender and eviction thereof; |
| 5. | Support for such duties as the imposition and collection of rents. |
| (2) | Where necessary for verifying eligibility of lessees under paragraph (1) 4, the Korea Land and Housing Corporation, a local public corporation or the Korea Real Estate Board may request the data or information under Articles 42-3 through 42-7 from a relevant agency to utilize the said data or information. <Amended on Jun. 9, 2020> |
| (3) | An executive officer or employee of the Korea Land and Housing Corporation, a local public corporation or the Korea Real Estate Board shall neither use the data or information he or she has received under paragraph (2) for any purpose other than that prescribed by this Act, nor provide or divulge the said data or information to a third person or institution. <Amended on Jun. 9, 2020> |
[This Article Newly Inserted on Jan. 16, 2018]
| Article 60 (Rental Housing Information System) |
| (1) | The Minister of Land, Infrastructure and Transport may build and operate a rental housing information system (hereinafter referred to as the "Information System") for the purposes of enabling people to have easy access to information on rental housing, enhancing the relevant statistical accuracy and using it for real estate policies or the like. <Amended on Aug. 18, 2020> |
| (2) | The head of a Si/Gun/Gu and a public housing business entity shall provide the Minister of Land, Infrastructure and Transport with data prescribed by Presidential Decree, including data on rental housing, rental business entities (including project implementers), lessees (limited to public rental housing), and rental agreements, in accordance with the procedures and methods prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
| (3) | In order to enhance the accuracy of the data on rental housing registered on the Information System and statistics of rental housing, the Minister of Land, Infrastructure and Transport may request the head of any relevant institution to provide data prescribed by Presidential Decree, such as resident registration, national taxes, and local taxes. In such cases, the head of the relevant institution shall examine the purpose and method of the use of the data, the safety of the use of the data, etc. and comply with such request in the absence of good cause to the contrary. <Newly Inserted on Dec. 26, 2017> |
| (4) | The head of a local government may utilize data provided by the Information System in order to manage rental housing efficiently. In such cases, the Minister of Land, Infrastructure and Transport may limit the types and content of information to be provided if any extraordinary circumstance exits for the operation of the Information System or when such limitation is deemed necessary to protect personal information. <Amended on Dec. 26, 2017> |
| (5) | No person currently or formerly engaged in affairs described in paragraphs (1) through (4), shall use any information or data he or she has received pursuant to paragraphs (2) through (4) for any purpose other than that provided for in this Act, or provide or divulge such information or data to any other person or institution: Provided, That if otherwise provided in other statutes, he or she may provide the information or data received under paragraphs (2) through (4). <Amended on Dec. 26, 2017; Aug. 18, 2020> |
| (6) | In using information contained in the Information System pursuant to this Act, the Minister of Land, Infrastructure and Transport shall protect the information in order not to breach the privacy of individuals. <Newly Inserted on Aug. 18, 2020> |
| (7) | Matters necessary for building and operating the Information System shall be prescribed by Presidential Decree. <Amended on Dec. 26, 2017; Aug. 18, 2020> |
| Article 61 (Reporting and Inspection) |
| (1) | If deemed necessary, the Minister of Land, Infrastructure and Transport or the head of a local government may require a rental business entity, a housing rental management business entity, or any other person who has obtained authorization, approval, or registration under this Act to report necessary matters, or may direct relevant public officials to access their place of business and conduct necessary inspections. |
| (2) | In conducting an inspection under paragraph (1), a person to undergo such inspection shall be notified of an inspection plan stating the date and time of the inspection, ground for the inspection, matters to be inspected, etc. by no later than seven days before the inspection: Provided, That this shall not apply in emergency or where it is deemed difficult to attain the objective of the inspection if evidence, etc. is destroyed or treated otherwise due to prior notice. |
| (3) | A public official conducting an inspection under paragraph (1) shall carry a document indicating his or her authority and produce it to related persons. |
| (4) | The head of a local government shall submit a quarterly report to the Minister of Land, Infrastructure and Transport on the matters prescribed by Presidential Decree, such as the current status of registration of rental housing under Article 5 and the terms of rental provided for in Article 46, within the month following the end of the relevant quarter. |
| Article 62 (Delegation of Authority) |
| (1) | The Minister of Land, Infrastructure and Transport may delegate part of his or her authority vested under this Act to Mayors/Do Governors. <Amended on Aug. 28, 2015; Jan. 19, 2016; Aug. 14, 2018> |
| (2) | The Mayors/Do Governors to whom authority has been delegated pursuant to paragraph (1) may partially re-delegate such authority to the heads of Sis (including the Mayors of administrative Sis)/Guns/Gus with approval from the Minister of Land, Infrastructure and Transport. |
| (3) | The Mayors/Do Governors may partially delegate or entrust his or her authority vested under this Act to the heads of Sis/Guns/Gus or project implementers, as prescribed by Presidential Decree. |
| (4) | The Minister of Land, Infrastructure and Transport may delegate or entrust the following duties: <Newly Inserted on Jan. 16, 2018; Aug. 14, 2018; Jun. 9, 2020> |
| 1. | Duties regarding submitting written consent under Article 42-4: A rental business entity; |
| 2. | Duties regarding requesting data to the head of a relevant agency under Articles 42-5 and 42-6: The Minister of Health and Welfare or the head of a local government; |
| 3. | Building and operating a rental housing information system under Article 60: The Korea Land and Housing Corporation or the Korea Real Estate Board. |
| (1) | The Minister of Land, Infrastructure and Transport may impose spread, within one percentage point per annum, on a loan from the National Housing Urban Fund for any of the following rental business entities: <Amended on Jan. 17, 2017; Apr. 23, 2019> |
| 1. | A person who fails to purchase a guarantee under Article 49 or pay a guarantee fee (including the amount of installment payments thereof); |
| 2. | A person who fails to accumulate the appropriation reserve for special repairs for at least six months from the date of imposition of an administrative fine pursuant to Article 67 (2) 8. |
| (2) | Methods, procedures, etc. for imposing spread under paragraph (1) shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
| Article 64 (Legal Fiction as Public Officials in Application of Penalty Provisions) |
CHAPTER VII PENALTY PROVISIONS
| Article 65 (Penalty Provisions) |
| (1) | A person who misappropriates, provides, or divulges any information or data in violation of Articles 42-7 (3), 59-2 (3), and 60 (5), shall be punished by imprisonment with labor for at least five years or by a fine not exceeding 50 million won. <Amended on Dec. 26, 2017; Jan. 16, 2018> |
| (2) | Any of the following persons shall be punished by imprisonment with labor for at least two years or by a fine not exceeding 20 million won: <Amended on Nov. 26, 2019; Jun. 9, 2020> |
| 1. | A person who recruits members of a cooperative without filing a report or without open invitation in violation of the proviso of Article 5-3 (1); |
| 2. | A person who fails to make members deposit up-front fees, in violation of Article 5-5 (1); |
| 3. | A person who fails to request refund of up-front fees, etc., in violation of Article 5-5 (4); |
| 4. | A person who runs a housing rental management business without registration under Article 7 or a person who obtains registration by fraud or other improper means; |
| 5. | A person who runs a housing rental management business during the period of business suspension imposed under Article 10; |
| 6. | A housing rental management business entity who fails to purchase a guarantee instrument provided for in Article 14; |
| 7. | A housing rental management business entity who allows a third person to perform the business or affairs prescribed by this Act by using his or her name or trade name, or lends the relevant certificate, in violation of Article 16 (1); |
| 8. | A person who is not a housing rental management business entity but uses the word "housing rental management business" or similar in his or her trade name, in violation of Article 16 (2); |
| 9. | A rental business entity who is liable to purchase a guarantee for rental security deposit under Article 49, but fails to purchase it. |
| (3) | Any of the following persons shall be punished by imprisonment with labor for at least one year or by a fine not exceeding 10 million won: <Amended on Jan. 17, 2017; Jan. 16, 2018> |
| 1. | A person who is designated as or replaced for a project implementer under Article 23 by fraud or other improper means; |
| 2. | A person who is engaged in construction, etc. of a building in a promotion district without obtaining permission from the head of a Si/Gun/Gu, in violation of Article 26 (3), or obtains permission by fraud or other improper means; |
| 3. | A person who obtains approval of a district plan under Article 28 (including cases applied mutatis mutandis under Article 41-2) by fraud or other improper means; |
| 4. | A person who executes a project in violation of the details of the approval of a district plan or the approval of modification thereof granted under Article 28 (1) (including cases applied mutatis mutandis under Article 41-2); |
| 5. | A person who is supplied with publicly-funded private rental housing in violation of Article 42 (2); |
| 6. | A person who manages private rental housing in violation of Article 51. |
| Article 66 (Joint Penalty Provisions) |
| (1) | If the representative of a corporation, an agent, an employee and any other employee of the corporation commits a violation provided for in Article 65 in connection with the duties of such corporation, not only shall the violator be punished, but the corporation shall also be punished by the fines set under the relevant provisions: Provided, That this shall not apply where the corporation has not been negligent in giving due attention to and supervision over the relevant duties to prevent such violation. |
| (2) | If an agent, an employee and any other employee of an individual commits a violation provided for in Article 65 in connection with the duties of such individual, not only shall the violator be punished, but the private individual shall also be punished by the fines set under the relevant provisions: Provided, That this shall not apply where the individual has not been negligent in giving due attention to and supervision over the relevant duties to prevent such violation. |
| Article 67 (Administrative Fines) |
| (1) | Any of the following persons shall be subject to an administrative fine not exceeding 30 million won: <Newly Inserted on Apr. 23, 2019; Jun. 9, 2020; Aug. 18, 2020> |
| 1. | A person who fails to lease out a private rental house during the mandatory rental period, in violation of Article 43 (1); |
| 2. | A person who transfers a private rental house to a person who is not a rental business entity during the mandatory rental period without permission from the head of a Si/Gun/Gu, in violation of Article 43 (4); |
| 3. | A person who fails to set the initial rent of publicly-funded private rental housing in accordance with the standards prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, in violation of Article 44 (1) 1; |
| 4. | A person who requests an increase in rent in excess of the rate of increase in rent prescribed in Article 44 (2). |
| (2) | Any of the following persons shall be subject to an administrative fine not exceeding 10 million won: <Amended on Jan. 17, 2017; Jan. 16, 2018; Apr. 23, 2019> |
| 1. | A rental business entity who fails to file a report, in violation of Article 42 (4); |
| 2. | Deleted; <Apr. 23, 2019> |
| 3. | Deleted; <Apr. 23, 2019> |
| 4. | A rental business entity who revokes, terminates, or refuses to renew a rental agreement, in violation of Article 45; |
| 5. | A person who fails to file a report on a rental agreement provided for in Article 46 or files a false report; |
| 6. | A rental business entity who fails to use a standard form rental agreement provided for in Article 47; |
| 7. | A person who uses a quasi-housing unit for a non-residential purpose, in violation of Article 50; |
| 8. | A person who fails to accumulate, or fails to deliver to the council of occupants' representatives, the reserves for appropriations for special repairs provided for in Article 53 (1) and (2). |
| (3) | Any of the following persons shall be subject to an administrative fine not exceeding five million won: <Amended on Aug. 14, 2018; Apr. 23, 2019; Nov. 26, 2019; Jun. 9, 2020; Aug. 18, 2020> |
| 1. | A person who fails to make supplementary registration under Article 5-2; |
| 2. | A person who fails to provide explanation or to obtain confirmation regarding matters explained, in violation of Article 5-4; |
| 3. | A housing rental management business entity who fails to report a change or cancellation of any registered matter, in violation of Article 7; |
| 4. | A housing rental management business entity who fails to report current status provide for in Article 12; |
| 5. | A rental business entity who violates the obligation to provide explanation and obtain confirmation under Article 48 (1) or the obligation to provide information under Article 48 (2); |
| 6. | A person who refuses, interferes with, or evades to give reports or data or to receive inspections under Article 50 (2), 60 or 61, or gives false reports; |
| 7. | A rental business entity who fails to consult with a council of lessees' representatives about the formulation, revision, etc. of the management regulations, in violation of Article 52 (4). |
| 8. | Where no rental agreement exists as at the time of filing an application for registration under Article 5 (7), a rental business entity who fails to comply with the maximum limit of the rental security deposit reported at that time of registration in a rental agreement made thereafter; |
| (4) | Any of the following persons shall be subject to an administrative fine not exceeding one million won: <Amended on Aug. 14, 2018; Apr. 23, 2019> |
| 1. | Deleted; <Jun. 9, 2020> |
| 2. | A housing rental management business entity who neglects the obligation to prepare, issue, and keep an outsourcing contract provided for in Article 13 (1) and (2); |
| 2-2. | A person who transfers a private rental house without filing a report on the transfer thereof, in violation of Article 43 (2) or (3); |
| 3. | A rental business entity who fails to notify lessees that they can or shall organize a council of lessees' representatives, in violation of Article 52 (2). |
| (5) | The administrative fines set forth in this Article shall be imposed and collected by the Minister of Land, Infrastructure and Transport or the head of a Si/Gun/Gu, as prescribed by Presidential Decree. <Amended on Apr. 23, 2019> |
ADDENDA <Act No. 13474, Aug. 11, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 36 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.
Article 2 (General Applicability)
| (1) | The amended provisions of this Act concerning privately constructed rental housing shall begin to apply to the first application for approval of a project plan filed after this Act enters into force. |
| (2) | The amended provisions of this Act concerning buy-to-rent private housing shall begin to apply to the first buy-to-rent private housing registered and supplied after this Act enters into force. |
Article 3 (Special Cases concerning Rental Housing Already Registered)
| (1) | Where any other statute or regulation cites privately constructed rental housing, buy-to-rent private housing, or quasi-public rental housing registered by a rental business entity under the amended provisions of Article 5 as at the time this Act enters into force, the citation shall include privately constructed rental housing, buy-to-rent private housing, or quasi-public rental housing registered under subparagraph 2-3, 3 or 3-3 of Article 2 of the previous Rental Housing Act. |
| (2) | Deleted. <Jun. 9, 2020> |
| (3) | Any of the following housing shall be deemed rental housing under this Act according to the classification of the following subparagraphs: Provided, That the previous Rental Housing Act shall apply to the mandatory rental period, the requirements and procedures for sale within the mandatory rental period, restrictions on the establishment of mortgages, etc., restrictions on sublease of rental housing, granting the lessee a preemptive right to purchase the leased house at auction, and accumulating the special repair reserve. <Newly Inserted on Aug. 18, 2020> |
| 2. | Privately constructed rental housing for which the period of the rental agreement is reported to be at least 10 years pursuant to Article 16 (1) 3 of the previous Rental Housing Act: Quasi-public rental housing under subparagraph 5 of Article 2; |
| 3. | Privately constructed rental housing or buy-to-rent housing (excluding the rental housing that fall under subparagraph 1) under Article 16 (1) 4 of the previous Rental Housing Act: Short-term rental housing under subparagraph 6 of Article 2. |
Article 4 (Special Cases concerning Privately Constructed Rental Housing)
Where a rental business entity (limited to a real estate investment company invested by the National Housing Urban Fund) registered under Article 6 of the previous Rental Housing Act applies for, or obtains, approval of a project plan as privately constructed rental housing as at the time this Act enters into force, the National Housing Urban Fund may provide financial assistance to the business entity by applying the amended provisions of Article 4. Article 5 (General Transitional Measures concerning Dispositions)
Any act done by, or in relation to, an administrative agency under the previous provisions as at the time this Act enters into force shall be deemed conducted by, or in relation to, an administrative agency corresponding thereto under this Act.
Article 6 (Transitional Measures concerning Publicly Constructed Rental Housing)
| (2) | Any of the following has been constructed by a person who is not a public housing business entity under the Special Act on Public Housing as at the time this Act enters into force, shall be governed by the previous provisions, deeming it is publicly constructed rental housing under subparagraph 2-2 of Article 2 of the previous Rental Housing Act: Provided, That the same shall not apply to an increase in rent, report on a rental agreement, report on a change thereof and recommendation of adjustment. <Amended on Jan. 16, 2018; Aug. 14, 2018; Apr. 23, 2019> |
| 1. | Housing that has been, or is being, constructed as publicly constructed rental housing as at the time this Act enters into force with finances of the State or a local government or funds received from the National Housing Urban Fund; |
| 2. | Housing that has been, or is being, constructed as at the time this Act enters into force with approval of a project plan as publicly constructed rental housing in accordance with Article 16 of the Housing Act on a site developed under a public project; |
| 3. | Housing constructed after this Act enters into force on a site developed by a public project as at the time this Act enters into force and supplied for use as publicly constructed rental housing. |
Article 7 (Transitional Measures concerning Rental Housing on Leasehold Land)
[Enforcement Date: Dec. 10, 2020] Article 7
Article 8 (Transitional Measures concerning Insolvency)
Insolvent rental housing, etc. defined in subparagraph 8 of Article 2 of the previous Rental Housing Act, existing as at the time this Act enters into force shall be governed by Articles 21-2, 22 through 25 and 30 of the previous Rental Housing Act. The same shall also apply where insolvency, etc. defined in subparagraph 7 of the same Article occurs to housing constructed by a person who is not a public housing business entity, of the publicly constructed rental housing defined in subparagraph 2-2 of Article 2 of the previous Rental Housing Act after this Act enters into force. <Amended on Jun. 9, 2020> [Enforcement Date: Dec. 10, 2020] Article 8
Article 9 (Transitional Measures concerning Rental Business Entities)
A rental business entity (excluding a public housing business entity) registered under Article 6 of the previous Rental Housing Act as at the time this Act enters into force, shall be deemed a general rental business entity under this Act. In such cases, he or she may be registered as a commercial rental business entity if he or she meets the registration criteria prescribed in the amended provisions of Article 5 (4). Article 10 (Transitional Measures concerning Rental Housing Cooperatives)
A rental housing cooperative organized under Article 7 of the previous Rental Housing Act as at the time this Act enters into force, shall be deemed a rental business entity under this Act, but shall be governed by Articles 7 through 9 of the previous Rental Housing Act. <Amended on Jun. 9, 2020> [Enforcement Date: Dec. 10, 2020] Article 10
Article 11 (Transitional Measures concerning Registration of Housing Rental Management Business)
| (1) | A housing rental management business registered under the Housing Act as at the time this Act enters into force, shall be deemed registered under this Act. |
| (2) | A person under adult guardianship and a person under limited guardianship under the amended provisions of subparagraph 2 of Article 9 shall be deemed to include persons on whom a declaration of incompetency or quasi-incompetency remains in effect under Article 2 of the Addenda to the Civil Act (Act No. 10429). |
| (3) | The amended provisions of Article 10 concerning the cancellation of registration of housing rental management business shall also apply to housing rental management business registered under Article 53-2 of the Housing Act. |
Article 12 (Transitional Measures concerning Traffic Impact Analysis and Measures for Improvement)
"Traffic impact assessments" and "Traffic Impact Assessment Deliberative Committee" in the amended provisions of Article 32 (1) 3, (3) 5 and (8) 3 shall be construed as “traffic impact analysis and improvement measures" and "Deliberative Committee of Traffic Impact Analysis and Improvement Measures", respectively, until January 24, 2016. Article 13 (Transitional Measures concerning Rental Housing Dispute Mediation Committee)
A rental housing dispute mediation committee organized under Article 33 of the previous Rental Housing Act as at the time this Act enters into force shall be deemed organized under this Act. Article 14 (Transitional Measures concerning Penalty Provisions or Administrative Fines)
Imposition of a penalty or an administrative fine for an act committed before this Act enters into force shall be governed by the previous provisions.
Article 15 Omitted.
Article 16 (Relationship to Other Statutes or Regulations)
Where the previous Rental Housing Act or any provision thereof has been cited by another statute or regulation as at the time this Act enters into force, if any provision in this Act corresponds to such provision, it shall be deemed that this Act or the relevant provision of this Act, has been cited in lieu of the previous Rental Housing Act or said provision thereof.
ADDENDA <Act No. 13782, Jan. 19, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on September 1, 2016.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 13805, Jan. 19, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on August 12, 2016.
Articles 2 through 22 Omitted.
ADDENDA <Act No. 14480, Dec. 27, 2016>
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. 14532, Jan. 17, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation: Provided, That the amendments to the statutes to be amended pursuant to Article 6 of the Addenda, which were promulgated before this Act enters into force but the enforcement dates of which have yet to arrive, shall enter into force on the enforcement date of the relevant statute. Articles 2 through 7 Omitted.
ADDENDA <Act No. 14542, Jan. 17, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Preferential Supply of Land)
The amended provisions of the proviso to Article 18 (3) shall begin to apply to the first case of formulating a plan for supplying multi-family housing after this Act enters into force. Article 3 (Applicability to Special Cases concerning Designation of Promotion Districts and Installation of Facilities in Promotion Districts)
The amended provisions of Articles 22 (2) and 35 (1) 1 shall begin to apply to the first case of approving a district plan after this Act enters into force. Article 4 (Applicability to Report on Supply of Private Rental Housing)
The amended provisions of Article 42 (3) shall begin to apply to the first case of recruiting lessees after this Act enters into force. Article 5 (Applicability to Guarantee for Rental Security Deposit)
The amended provisions of Article 49 shall begin to apply to the first case of recruiting lessees after this Act enters into force.
ADDENDA <Act No. 14912, Oct. 24, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 15309, Dec. 26, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDUM <Act No. 15319, Dec. 26, 2017>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 15356, Jan. 16, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Supply of Housing Constructed Based on Relaxed Floor Area Ratios)
| (2) | Where the ratio required to be set by ordinance of a relevant local government based on the amended provisions of Article 21-2 (including cases applied mutatis mutandis under Articles 21-3 and 35-2) after this Act enters into force has not been determined, a base ratio prescribed in the said amended provisions shall apply. |
Article 3 (Applicability to Integrated Approval of Promotion Districts)
The amended provisions of Article 33 shall also apply to a promotion district which has applied for designation of a promotion district, along with approval of a district plan before this Act enters into force. Article 4 (Applicability to Rental Business Entities’ Obligation to Provide Explanation)
The amended provisions of Article 48 (1) 4 shall apply begin to apply to the conclusion of the first rental agreement with a lessee or a change of the terms of the first agreement after this Act enters into force. Article 5 (Transitional Measures concerning Private Rental Housing Already Registered)
| (1) | Where publicly-funded private rental housing registered by a rental business entity under the amended provisions of Article 5 after this Act enters into force is cited by other statutes or regulations, it shall include commercial rental housing registered under the previous provisions. |
| (2) | Where long-term private rental housing registered by a rental business entity under the amended provisions of Article 5 after this Act enters into force is cited by other statutes or regulations, it shall include quasi-public rental housing registered under the previous provisions. |
| (3) | Where short-term private rental housing registered by a rental business entity under the amended provisions of Article 5 after this Act enters into force is cited by other statutes or regulations, it shall include short-term rental housing registered under the previous provisions. |
| (4) | Corporate rental housing or quasi-public rental housing registered under the previous provisions as at the time this Act enters into force or after this Act enters into force (including housing deemed as quasi-public rental housing under Article 3 (3) 1 and 2 of the Addenda to the wholly amended Rental Housing Act (Act No. 13499)) shall be deemed long-term private rental housing under this Act: Provided, That the previous provisions shall apply to the mandatory rental periods of housing deemed quasi-public rental housing under Article 3 (3) 1 and 2 of the Addenda to the wholly amended Rental Housing Act (Act No. 13499), requirements and procedures for sale within the mandatory rental period, restrictions on the establishment of mortgages, restrictions on sublease of rental houses, granting the lessee a preemptive right to purchase the leased house at auction and accumulating special repair reserves. <Amended on Aug. 18, 2020> |
| (5) | Short-term rental housing registered under the previous provisions as at the time this Act enters into force (including housing deemed short-term rental housing under Article 3 (3) 3 of the Addenda to the wholly amended Rental Housing Act (Act No. 13499)) shall be deemed short-term private rental housing under this Act: Provided, That the previous provisions shall apply to the mandatory rental periods of housing deemed short-term rental housing under Article 3 (3) 3 of the Addenda to the wholly amended Rental Housing Act (Act No. 13499), requirements and procedures for sale within the mandatory rental period, restrictions on sublease of rental houses, granting the lessee a preemptive right to purchase the leased house at auction and accumulating special repair reserves. <Amended on Aug. 18, 2020> |
| (6) | A commercial rental business entity and a general rental business entity registered under the previous provisions as at time this Act enters into force shall be deemed rental business entities under the amended provisions of Article 5. |
Article 6 (Transitional Measures concerning Those Given Priority in Supply of Land)
Those who have been supplied with land, etc. under Article 18 or those who have been supplied with public housing sites for the purpose of operating rental housing before this Act enters into force shall be governed by the previous provisions. Article 7 (Transitional Measures concerning Special Cases Such as the National Land Planning and Utilization Act) Article 8 (Transitional Measures concerning Districts Designated as Promotion Districts)
A district designated as a district for promoting commercial rental housing under the previous provisions as at the time this Act enters into force shall be deemed a promotion district under the amended provisions of Article 22: Provided, That notwithstanding Article 5 (4) of the Addenda, a promotion district for which application for approval of a project plan for building commercial rental housing has been filed, shall be governed by the previous provisions. Article 9 (Transitional Measures concerning Special Cases of Development Restriction Zones)
Where an application to lift development restriction zone has been filed before this Act enters into force to be seek designation as a promotion district, where the procedures for lifting development restriction zones are underway, or where lifting is completed under the previous Article 31, the previous provisions shall apply, notwithstanding the amended provisions of Article 31. Article 10 (Transitional Measures concerning Modification of Utilization Plans for Previous Real Estate)
Where modification of utilization plans for previous real estate is underway as at the time this Act enters into force, the previous provisions shall apply, notwithstanding the amended provisions of Article 37. Article 11 (Transitional Measures concerning Supply of Public Housing Sites)
Where a real estate investment company under Article 2 of the Real Estate Investment Company Act (limited to where the National Housing Urban Fund or a real estate investment company invested by the National Housing Urban Fund or a collective investment scheme invests at a rate above 50 percent of its total share) applies for authorization for business under Article 9 of the same Act as at the time this Act enters into force in order to be supplied with a public housing site for constructing commercial rental housing. Article 12 Omitted.
Article 13 (Transitional Measures following Amendment of Other Statutes)
ADDENDA <Act No. 15460, Mar. 13, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 15730, Aug. 14, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 62 (4) 3 shall enter into force on the date of its promulgation. Article 2 (Applicability to Increase in Rent)
The amended provisions of Article 44 (2) and (3) shall begin to apply to the conclusion of the first rental agreement between a rental business entity and a lessee or the first renewal of a rental agreement in effect. Article 3 (Applicability to Rental Business Entities’ Obligation to Provide Explanation)
The amended provisions of Article 48 shall begin to apply to the conclusion of the first rental agreement between a rental business entity and a lessee or the first renewal of a rental agreement in effect.
ADDENDA <Act No. 16000, Dec. 18, 2018>
This Article shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 16386, Apr. 23, 2019>
Article 1 (Enforcement Date)
This Article shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Eligibility of Lessees)
The amended provisions concerning eligibility of lessees in this Act shall begin to apply to the private rental housing for which a rental business entity verifies the eligibility of a lessee after this Act enters into force.
Article 3 (Applicability to Area when Designating Promotion Districts within Station's Sphere of Influence)
Where no minimum area is prescribed by ordinance of the relevant local government, which is supposed to be prescribed by such ordinance under Article 22 (1) after this Act enters into force, the area referred to in the main clause of Article 22 (1) 2 shall apply. Article 4 (Applicability to Initial Rents and Reports of Rental Agreements)
The amended provisions of Article 44 (1) and Article 46 (1) shall begin to apply to the private rental housing registered after this Act enters into force. Article 5 (Applicability to Guarantee for Rental Security Deposit)
The amended provisions of Article 49 (1) 3 shall begin to apply where a rental business entity registers at least the number of housing units determined under Article 49 (1) 3 after this Act enters into force.
ADDENDA <Act No. 16630, Nov. 26, 2019>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Articles 5-3 (1) 6 and 5-4 shall enter into force one year after the date of its promulgation. Article 2 (Applicability to Report on Recruitment of Members of Housing Cooperative and Open Invitation)
The amended provisions of Article 5-2 shall also apply where a private rental cooperative established under the Framework Act on Cooperatives before this Act enters into force recruits its members after this Act enters into force.
ADDENDA <Act No. 17091, Mar. 24, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 17171, Mar. 31, 2020.>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 17219, Apr. 7, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 17452, Jun. 9, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Reporting or Reporting on Change)
The amended provisions of Articles 5 (4) and (5), 7 (4) and (5), 42 (5) through (7), 43 (4) and (5) and 46 (5) shall begin to apply to a report or report on a change made after this Act enters into force. Article 3 (Applicability to Increase in Rent, Reporting of Rental Contracts and Recommendation of Adjustment)
The amended provisions of Article 3 (3) of the Addenda to the wholly amended Rental Housing Act (Act No. 13499) and Article 5 (4) and (5) of the Addenda to the Special Act on Private Rental Housing (Act No. 15356) shall begin to apply where a rental business entity enters into a rental agreement with a lessee or renews an existing rental agreement after this Act enters into force. Article 4 (Transitional Measures concerning Supplementary Registration)
In cases of private rental housing registered for preservation of ownership before this Act enters into force, supplementary registration shall be made within two years after this Act enters into force pursuant to the amended provisions of Article 5-2.
ADDENDUM <Act No. 17453, Jun. 9, 2020>
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDA <Act No. 17482, Aug. 18, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 6 (1) 12, 48 (2), and Articles 5, 5-6, 5-7, 6, 43, and 67 of the Special Act on Private Rental Housing (Act No. 17452), shall enter into force on December 10, 2020. Article 2 (Applicability to Grounds for Disqualification)
| (1) | The amended provisions of subparagraph 1 of Article 5-6 of the Special Act on Private Rental Housing (Act No. 17452) shall begin to apply to a rental business entity registered or where a rental house is changed or reported additionally by reporting on the change of registered matters under the main clause of Article 5 (3) after the same amended provisions enter into force. |
Article 3 (Applicability to Restriction on Additional Registration of Rental Housing)
Article 4 (Applicability to Guarantee for Rental Security Deposit)
Notwithstanding the amended provisions of Article 49, in the case of a private rental house registered as at the time this Act enters into force which does not fall under any of those specified in subparagraphs 1 through 3, the amended provisions shall begin to apply where a rental agreement is made after one year from the date this Act enters into force. In such cases, the start date of the rental agreement shall be the time of opening the guarantee under Article 49 (4). Article 5 (Special Cases concerning Types of Private Rental Housing Abolished)
| (1) | A rental business entity who has registered a buy-to-rent private house where the rental property is an apartment from among long-term private rental housing or a short-term private rental house under the previous provisions at the time this Act enters into force and his or her private rental house shall be deemed a rental business entity and long-term private rental housing under this Act until the registration of the rental business entity and the relevant private rental housing is canceled: Provided, That the mandatory rental period shall be governed by the previous provisions. |
| (2) | No change of registration from a short-term private rental housing registered under the previous provisions as at the time this Act enters into force to a long-term private rental housing or publicly-funded private rental housing shall be allowed after this Act enters into force. |
Article 6 (Special Cases concerning Extension of Mandatory Rental Periods)
| (1) | The extension of a mandatory rental period under the amended provisions of subparagraphs 4 and 5 of Article 2 and the amended provisions of Article 43 (4) 2 shall begin to apply to private rental housing registered after this Act enters into force. |
| (2) | Notwithstanding paragraph (1), the mandatory rental period under the previous provisions shall apply to publicly-funded private rental housing supplied by a project that has made a public announcement to invite private business entities for investment in the Housing and Urban Fund as at the time this Act enters into force. |
Article 7 (Transitional Measures concerning Automatic Cancellation of Registration)
Notwithstanding the amended provisions of Article 6 (5), where the mandatory rental period of a private rental house where the rental property is an apartment, from among short-term private rental housing under the previous subparagraph 6 of Article 2 or long-term rental housing under subparagraph 5 of Article 2, expires before this Act enters into force, the registration of the rental house shall be deemed canceled on the enforcement date of this Act.