ENFORCEMENT DECREE OF THE COMMERCIAL BUILDING LEASE PROTECTION ACT
Presidential Decree No. 19507, jun. 12, 2006
Amended by Presidential Decree No. 20970, Aug. 21, 2008
Presidential Decree No. 21988, Jan. 11, 2010
Presidential Decree No. 22151, May 4, 2010
Presidential Decree No. 22283, Jul. 21, 2010
Presidential Decree No. 17757, Oct. 14, 2010
Presidential Decree No. 23488, Jan. 6, 2012
Presidential Decree No. 23807, May 23, 2012
Presidential Decree No. 25036, Dec. 30, 2013
Presidential Decree No. 26637, Nov. 13, 2015
Presidential Decree No. 28611, Jan. 26, 2018
Presidential Decree No. 29671, Apr. 2, 2019
Presidential Decree No. 31117, Oct. 20, 2020
Presidential Decree No. 31243, Dec. 8, 2020
Presidential Decree No. 33106, Dec. 20, 2022
| Article 2 (Scope of Application) |
| 1. | Seoul Metropolitan City: 900 million won; |
| 3. | Metropolitan city (excluding areas included in the overpopulation control areas prescribed in the Seoul Metropolitan Area Readjustment Planning Act; Guns; and Busan Metropolitan City), Sejong Special Self-Governing City, Paju city, Hwaseong city, Ansan city, Yongin city, Gimpo city and Gwangju city: 540 million won; |
| 4. | Other areas: 370 million won. |
| (2) | Where any rent exists other than deposits, as described in Article 2 (2) of the Act, the rental amount shall be calculated on a monthly basis. |
| Article 3 (Matters to Be Entered in the Fixed Date Register) |
| (1) | Any lessee who possesses the original document of the lease contract certificate of commercial buildings may apply for assigning the fixed date with the head of a tax office having the jurisdiction over the commercial buildings pursuant to Article 4 (1) of the Act: Provided, That in cases of business entities to whom per-business unit taxation is imposed pursuant to Article 8 (3) of the Value-Added Tax Act, they may apply for assignment of a fixed date with the head of a tax office having jurisdiction over the headquarters or main office of the relevant business entities. |
| (2) | The fixed date shall be assigned in such a manner that the head of a tax office (hereinafter referred to as "the head of the competent tax office"), upon receipt of an application for assignment of the fixed date pursuant to paragraph (1), indicates the number of the fixed date, the date when the fixed date is assigned and the head of the competent tax office in the original document of a lease contract certificate of commercial buildings and affixes an official seal thereon. |
| (3) | The head of the competent tax office shall assign a new fixed date, depending on the application filed by a lessee, where a lease contract is revised or renewed. |
| (4) | The head of the competent tax office shall enter the following matters in the fixed date register pursuant to Article 4 (2) of the Act: |
| 1. | Number of the fixed date; |
| 2. | The date when the fixed date is assigned; |
| 3. | Personal information of the lessor and the lessee: |
| (a) | In cases of natural persons: Name or resident registration number (foreign registration number in cases of foreigners); |
| (b) | In cases of corporations: Name of the corporation, name of the representative or the corporate registration number; |
| (c) | In cases of groups, other than corporations: Name of the group, name of the representative, business registration number or identification number; |
| 5. | The location of the commercial building, subject-matter of the lease and the size thereof; |
| (5) | Except as prescribed in paragraphs (1) through (4), matters necessary for assigning the fixed date shall be prescribed by Ordinance of the Ministry of Justice. |
[This Article Wholly Amended on Nov. 13, 2015]
| Article 3-2 (Scope of Interested Parties) |
Parties interested in the lease of commercial buildings who can request information (hereinafter referred to as "interested parties") pursuant to Article 4 (3) of the Act shall be any of the following: | 1. | Lessor or lessee of a lease contract of the relevant commercial building; |
| 2. | Owner of the relevant commercial building; |
| 3. | Persons prescribed by Ordinance of the Minister of Justice, from among rightful claimants recorded in the register of the relevant commercial building or the land thereof; |
| 4. | Financial institutions, etc. which have succeeded to the preferential payment right pursuant to Article 5 (7) of the Act; |
| 5. | Any person who has the status or right corresponding to that of a person specified in subparagraphs 1 through 4, who has received the judgment of a court with regard to the provision of the lease information. |
[This Article Newly Inserted on Nov. 13, 2015]
| Article 3-3 (Scope of Information which can be Requested by Interested Parties) |
| (1) | The party to a lease contract prescribed in subparagraph 1 of Article 3-2 may apply for the perusal or delivery of a document in which the following matters are entered, with the head of the competent tax office: |
| 1. | Personal information of a lessor or lessee (referring to information prescribed in Article 3 (4) 3: Provided, That in cases of resident registration numbers or foreign registration numbers, it is limited to the first six numbers); |
| 2. | Location of the commercial building, subject-matter of the lease or size thereof; |
| 3. | The date when the application for business registration is filed; |
| 4. | Deposits, rents or period of the lease; |
| 5. | The date when the fixed date is assigned; |
| 6. | Where the lease contract is revised or renewed, the date when the lease contract is revised or renewed, the date when a new fixed date is assigned, revised deposits or rents or the period of the lease; |
| 7. | Other matters prescribed by Ordinance of the Minister of Justice. |
| (2) | Interested parties, other than the parties to a lease contract, or any person who intends to conclude a lease contract may apply for the perusal or delivery of a document, in which the following matters are entered, with the head of the competent tax office: |
| 1. | Location of the commercial building, subject-matter of the lease or the size thereof; |
| 2. | The date when an application for business registration is filed; |
| 3. | Deposits, rents or the period of the lease; |
| 4. | The date when the fixed date is assigned; |
| 5. | Where the lease contract is revised or renewed, the date when the lease contract is revised or renewed, the date when a new fixed date is assigned, revised deposits or rents or the period of the lease; |
| 6. | Other matters prescribed by Ordinance of the Ministry of Justice. |
| (3) | Except as prescribed in paragraphs (1) and (2), matters necessary for provision of information on lease, etc. shall be prescribed by Ordinance of the Ministry of Justice. |
[This Article Newly Inserted on Nov. 13, 2015]
| Article 4 (Standards for Requests for Increase of Rents) |
A request for increasing rents or deposits prescribed in Article 11 (1) of the Act shall not exceed 5/100 of the rents or deposits as at the time when the request is made. <Amended on Aug. 21, 2008; Jan. 26, 2018>
| Article 5 (Calculation Rate in Cases of Change into Monthly Rates) |
| (1) | "Rate prescribed by Presidential Decree" in subparagraph 1 of Article 12 of the Act means 12 percent per annum. |
| (2) | "Multiple prescribed by Presidential Decree" in subparagraph 2 of Article 12 of the Act means 4.5 times. |
[This Article Wholly Amended on Dec. 30, 2013]
| Article 6 (Scope of Lessees Subject to Preferential Payment) |
Any lessee subject to preferential payment pursuant to Article 14 of the Act shall be a lessee for whom the total of sums converted pursuant to Article 2 (2) of the Act is not more than the following amounts, where there are deposits and rents: <Amended on Aug. 21, 2008; Jul. 21, 2010; Dec. 30, 2013> | 1. | Seoul Metropolitan Area: 65 million won; |
| 4. | Other areas: 30 million won. |
| Article 7 (Scope of Deposits subject to Preferential Payment) |
| (1) | The scope of the fixed amount, from among deposits subject to preferential payment, pursuant to Article 14 of the Act shall not exceed the following amounts: <Amended on Aug. 21, 2008; Jul. 21, 2010; Dec. 30, 2013> |
| 1. | Seoul Metropolitan Area: 22 million won; |
| 4. | Other areas: 10 million won. |
| (2) | Where the fixed amount, from among deposits of lessees, exceeds 1/2 of the value of a commercial building, the preferential payment right is valid only for the amount corresponding to 1/2 of the value of the commercial building. <Amended on Dec. 30, 2013> |
| (3) | Where at least two lessees are leasing in a commercial building and the total of the fixed amounts, from among respective deposits, exceeds 1/2 of the value of the commercial building, the amount remaining after dividing the amount corresponding to 1/2 of the value of the commercial building by the ratio of the fixed amount, among deposits of each lessee, to the total sum of the fixed amount, among such respective deposits, shall be deemed the fixed amount among deposits of each lessee. <Amended on Dec. 30, 2013> |
| Article 7-2 (Composition of Commercial Building Lease Committee) |
| 1. | The head of a competent office or bureau in charge of commercial building policies or real estate-related affairs in the Special Metropolitan City, a Metropolitan City, a Special Self-Governing City, a Do, or a Special Self-Governing Province (hereinafter referred to as "City/Do"); |
| 2. | A certified judicial scrivener who has engaged in the relevant field for at least five years, with extensive work experience in commercial building lease. |
[This Article Newly Inserted on Oct. 20, 2020]
| Article 7-3 (Term of Office of Member) |
| (1) | The term of office of a member of the Commercial Building Lease Committee established under Article 14-2 of the Act (hereinafter referred to as the "Committee") shall be two years, and may be renewed only once: Provided, That the term of office of a member who is a public official shall be the period during which he or she remains in the position. <Amended on Mar. 31, 2016> |
| (2) | Where any commissioned member falls under any of the following cases, the chairperson of the Committee (hereinafter referred to as "chairperson") may dismiss the member: |
| 1. | Where the member becomes unable to perform his or her duties due to a mental or physical disorder; |
| 2. | Where the member has been prosecuted in a criminal case in relation to his or her duties; |
| 3. | Where the member is deemed unsuitable as a member due to neglect of duty, injury to dignity, or any other reason; |
| 4. | Where the member voluntarily declares that it is impracticable to perform his or her duties. |
[This Article Newly Inserted on Oct. 20, 2020]
| Article 7-4 (Duties of Chairperson) |
| (1) | The chairperson shall represent the Committee and exert general control over the affairs of the Committee. |
| (2) | Where the chairperson of the Committee is unable to perform his or her duties for unavoidable reasons, a member designated in advance by the chairperson shall act on behalf of the chairperson. |
[This Article Newly Inserted on Oct. 20, 2020]
| Article 7-5 (Executive Secretary) |
| (1) | The Committee shall have one executive secretary, who shall be appointed by the chairperson of the Committee, from among public officials in general service of the Senior Executive Service of the Ministry of Justice (including corresponding public officials in special or extraordinary civil service) who are engaged in commercial building lease-related affairs. |
| (2) | The executive secretary shall assist the Committee in its operation and handle the affairs related to the preparation and retention of the records of the Committee's meetings and other documents. |
| (3) | The executive secretary may attend a meeting of the Committee, explain matters to be deliberated on, or make other necessary statements. |
[This Article Newly Inserted on Oct. 20, 2020]
| Article 7-6 (Meetings of Committee) |
| (1) | Meetings of the Committee are classified into regular meetings convened once annually or extraordinary meetings convened when deemed necessary by the chairperson or upon a request by at least 1/3 of all members. |
| (2) | The chairperson shall convene and preside over meetings of the Committee. |
| (3) | A majority of the members of the Committee shall constitute a quorum, and any decision thereof shall require the concurring vote of a majority of those present. |
| (4) | No Committee meeting shall be open to the public. |
| (5) | The chairperson may have a person who is not a member of the Committee attend its meeting to present his or her opinion, or may request that the relevant institutions and organizations submit necessary data or opinions, or provide other cooperation. |
[This Article Newly Inserted on Oct. 20, 2020]
| Article 7-7 (Working Committee) |
| (1) | A working committee shall be established under the Committee to efficiently assist the Committee in the discussion of agenda items to be deliberated on. |
| (2) | The working committee shall discuss and mediate the following matters: |
| 1. | Agenda items to be deliberated on and matters delegated by the Committee in relation thereto; |
| 2. | Other matters on which working-level discussions are required by the chairperson or members. |
| (3) | The working committee shall be chaired by the executive secretary, and its members shall be appointed by the heads of the agencies with which they are affiliated, from among the following persons: |
| 1. | State public officials of Grade V or higher in charge of price control at the Ministry of Economy and Finance; |
| 2. | State public officials of Grade V or higher in charge of commercial building lease at the Ministry of Justice; |
| 3. | State public officials of Grade V or higher in charge of commercial building lease at the Ministry of Land, Infrastructure and Transport; |
| 4. | State public officials of Grade V or higher in charge of micro enterprises at the Ministry of SMEs and Startups; |
| 5. | Local public officials of Grade V or higher in charge of micro enterprises, or the economy and livelihood of residents at a City/Do. |
[This Article Newly Inserted on Oct. 20, 2020]
| Article 7-8 (Expert Member) |
| (1) | The Committee may have up to five expert members to perform specialized surveys or research in relation to the matters to be deliberated on by the Committee. |
| (2) | Expert members shall be commissioned by the Minister of Justice, from among persons of learning and experience in the fields of law, economics, real estate, etc., and the term of office of such expert members shall be two years. |
[This Article Newly Inserted on Oct. 20, 2020]
The members of the Committee or the working committee may be paid an allowance within budgetary limits: Provided, That excluded are cases in which a member who is a public official attends a meeting of the Committee in direct connection with his or her duties.
[This Article Newly Inserted on Oct. 20, 2020]
| Article 7-10 (Detailed Guidelines for Operation) |
Except as provided in this Decree, matters necessary for the operation of the Committee shall be determined by the Minister of Justice.
[This Article Newly Inserted on Oct. 20, 2020]
| Article 8 (Establishment of Commercial Building Dispute Conciliation Committee) |
[This Article Wholly Amended on Oct. 20, 2020]
| Article 9 (Matters Subject to Deliberation and Mediation by Conciliation Committee) |
"Disputes over the lease of commercial buildings, as prescribed by Presidential Decree" in Article 20 (2) 6 of the Act means the following disputes: <Amended on Oct. 20, 2020> | 1. | Disputes over fulfillment of a lease contract and interpretation of the terms and conditions of a lease contract; |
| 2. | Disputes over renewal and termination of a lease contract; |
| 3. | Disputes over claims for damages due to the nonfulfillment of a lease contract; |
| 4. | Disputes over burden of expenses, including the remuneration of a licensed real estate agent; |
| 5. | Disputes over use of a written standard contract on a commercial building lease under Article 19 of the Act; |
| 6. | Other disputes corresponding to those referred to in subparagraphs 1 through 5, the conciliation of which is deemed necessary by the chairperson of the conciliation committee. |
[This Article Newly Inserted on Apr. 2, 2019]
| Article 10 (Secretariat of Conciliation Committee Established in Each District Office of Corporation) |
| (1) | The secretariat of a conciliation committee required to be established in each district office, branch office, and office of the Corporation, LH, or the Real Estate Board pursuant to Article 20 (3) of the Act (hereinafter referred to as “secretariat”) shall have one executive secretary under whom examiners and investigators are placed. <Amended on Oct. 20, 2020; Dec. 8, 2020> |
| (2) | The executive secretary shall be appointed by the president of the Corporation, the CEO of LH, and the CEO of the Real Estate Board and may concurrently serve as a member of the conciliation committee. <Amended on Oct. 20, 2020; Dec. 8, 2020> |
| (3) | Examiners and investigators shall be appointed by the president of the Corporation, the CEO of LH, and the CEO of the Real Estate Board, respectively. <Amended on Oct. 20, 2020; Dec. 8, 2020> |
| (4) | The executive secretary shall exercise overall control of the affairs of the secretariat, and shall direct and supervise personnel under his or her jurisdiction. |
| (5) | The examiner shall take charge of the following affairs: <Amended on Oct. 20, 2020> |
| 1. | Identification of the issues and legal review of cases applied for dispute conciliation; |
| 2. | Direction on and supervision of the affairs under the investigator's responsibility; |
| 3. | Other affairs deemed necessary by the chairperson of the conciliation committee to deal with the affairs of the conciliation committee. |
| (6) | The investigator shall take charge of the following affairs: <Amended on Oct. 20, 2020> |
| 1. | Receipt of applications for dispute conciliation; |
| 2. | Guidance on civil petitions related to the application for dispute conciliation; |
| 3. | Service and notification to the parties to the conciliation; |
| 4. | Investigation of facts necessary for the conciliation of disputes; |
| 5. | Other affairs deemed necessary by the chairperson of the conciliation committee to deal with the affairs of the conciliation committee. |
| (7) | The executive secretary and the examiner shall have the qualifications of an attorney-at-law. |
[This Article Newly Inserted on Apr. 2, 2019]
[Title Amended on Oct. 20, 2020]
| Article 11 (Secretariat of City/Do Conciliation Committee) |
Where any City/Do establishes a conciliation committee pursuant to the latter part of Article 20 (1) of the Act, matters concerning the organization, operation, etc. of its secretariat shall be prescribed by municipal ordinance of the relevant local government taking its actual circumstances into consideration. <Amended on Oct. 20, 2020> [This Article Newly Inserted on Apr. 2, 2019]
| Article 12 (Processing of Personally Identification Information) |
[This Article Newly Inserted on Jan. 6, 2012]
[Moved from Article 8 <Dec. 2, 2019>]
ADDENDA <Presidential Decree No. 17757, Oct. 14, 2002>
| (1) | (Enforcement Date) This Decree shall enter into force on November 1, 2002. |
| (2) | (Transitional Measures concerning Application for Fixed Date by Existing Lessees) Anyone who intends to file an application for a fixed date in a lease contract pursuant to paragraph (3) of the Addenda to the Act after this Decree is promulgated shall present a business registration certificate along with a lease contract. |
ADDENDUM <Presidential Decree No. 19507, Jun. 12, 2006>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 20970, Aug. 21, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures)
A commercial building lease contract which exists as at the time this Decree enters into force shall be governed by the former provisions: Provided, That this shall not apply to the amended provisions of Article 4.
ADDENDUM <Presidential Decree No. 21988, Jan. 11, 2010>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 22151, May 4, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 5, 2010.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 22283, Jul. 21, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 26, 2010: Provided, That the amended provisions of attached Form No. 2 shall enter into force on September 26, 2010.
Article 2 (Transitional Measures)
| (1) | A commercial building lease contract which exists as at the time this Decree enters into force shall be governed by the former provisions. |
| (2) | Anyone who has acquired the actual right granted by way of security against a leased building before this Decree enters into force shall be governed by the former provisons. |
ADDENDA <Presidential Decree No. 23488, Jan. 6, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation (Proviso Omitted).
Article 2 Omitted.
ADDENDA <Presidential Decree No. 23807, May 23, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation
Article 2 (Transitional Measures concerning Change of Forms)
The form made pursuant to the former provisions as at the time this Decree enters into force may be used along with forms pursuant to this Decree by not later than August 31, 2012.
ADDENDA <Presidential Decree No. 25036, Dec. 30, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2014.
Article 2 (Applicability to Scope of Application)
The amended provisions of Article 2 shall begin to apply from the first commercial building lease contract which is concluded or renewed after this Decree enters into force. Article 3 (Applicability to Restrictions on Calculation Rate in Cases of Change into Monthly Rates)
The amended provisions of Article 5 shall also apply to a commercial building lease contract which exists as at the time when this Decree enters into force, and they shall begin to apply from the first change of the whole or part of deposits into monthly rents after this Decree enters into force. Article 4 (Applicability to Protection of Small Amount of Deposit)
The amended provisions of Articles 6 and 7 shall also apply to a commercial building lease contract which exists as at the time when this Decree enters into force, and any person who has acquired the real right granted by way of security before this Decree enters into force shall be governed by the former provisions.
ADDENDUM <Presidential Decree No. 26637, Nov. 13, 2015>
This Decree shall enter into force on November 14, 2015.
ADDENDA <Presidential Decree No. 28611, Jan. 26, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Scope of Application)
The amended provisions of Article 2 shall begin to apply from the first commercial building lease contract which is concluded or renewed after this Decree enters into force. Article 3 (Applicability to Standards for Requests for Increase of Rents)
The amended provisions of Article 4 shall also apply to commercial building lease contracts existing as at the time this Decree enters into force.
ADDENDA <Presidential Decree No. 29671, Apr. 2, 2019>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 8 through 11 shall enter into force on April 17, 2019. Article 2 (Applicability to Scope of Application)
The amended provisions of Article 2 (1) shall begin to apply from the first commercial building lease contract which is concluded or renewed after this Decree enters into force.
ADDENDUM <Presidential Decree No. 31117, Oct. 20, 2020>
This Decree shall enter into force on November 1, 2020.
ADDENDA <Presidential Decree No. 31243, Dec. 8, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 10, 2020.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 33106, Dec. 20, 2022>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2023.
Article 2 (Transitional Measures Concerning Matters for Which Application for Conciliation Is Filed with Conciliation Committee Established in Incheon Regional Headquarters of Corporation)
An application for conciliation filed with a conciliation committee established in the regional headquarters specified in the left section of the following table pursuant to the previous attached Table as at the time this Decree enters into force shall be deemed filed with a conciliation committee established in the branch office specified in the right of the following table pursuant to the amended attached Table:
| Incheon Regional Headquarters of the Corporation | Incheon branch office of the Real Estate Board | | Gyeongnam Regional Headquarters of the Corporation | Changwon branch office of the Real Estate Board | | Gyeonggi Regional Headquarters of the Corporation | Seongnam branch office of the Real Estate Board | | Busan Ulsan Regional Headquarters of the Corporation | Ulsan branch office of the Real Estate Board |
|
Article 3 (Transitional Measures Concerning Conciliation Committee Established in Western Gyeonggi Branch Office of Real Estate Board)
| (1) | A conciliation committee established in the Western Gyeonggi branch office of the Real Estate Board under the previous attached Table as at the time this Decree enters into force shall be deemed a conciliation committee established in the Goyang branch office of the Real Estate Board under the amended attached Table. |
| (2) | Persons commissioned or elected as the chairperson or members of a conciliation committee established in the Western Gyeonggi branch office of the Real Estate Board under the previous attached Table as at the time this Decree enters into force shall be deemed persons commissioned or elected as the chairperson and members of a conciliation committee established in the Goyang branch office of the Real Estate Board under the amended attached Table. In such cases, the term of office shall be the remaining period of the previous term of office. |