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HOUSING LEASE PROTECTION ACT

311 (Supp. 46)

HOUSING LEASE PROTECTION ACT

Act No. 3379, Mar. 5, 1981

Amended by Act No. 3682, Dec. 30, 1983

Act No. 4188, Dec. 30, 1989

Act No. 5454, Dec. 13, 1997

Act No. 5641, Jan. 21, 1999

Act No. 6541, Dec. 29, 2001

Act No. 6627, Jan. 26, 2002

Act No. 7358, Jan. 27, 2005

Act No. 8583, Aug. 3, 2007

Act No. 8923, Mar. 21, 2008

Act No. 9653, May 8, 2009

Article 1 (Purpose)

The purpose of this Act is to secure stability in the residential life of national citizens, by providing for special cases to the Civil Act, with respect to the lease of buildings for residence.

[This Article Wholly Amended by Act No. 8923, Mar. 21, 2008] Article 2 (Scope of Application)

This Act shall apply to lease of the whole or part of buildings for residence (hereinafter referred to as house ). This provision shall also apply in cases where a part of a leased house is used for any purpose other than resi dence. [This Article Wholly Amended by Act No. 8923, Mar. 21, 2008] Article 3 (Opposing Power)

(1) Even though it is not registered, if the lessee has completed delivery of a house and the resident registration, the lease shall take effect against the third person from the following day thereof. In such cases, the resident registration shall be considered to have been made at the time of the moving-in report.

(2) Paragraph (1) shall apply mutatis mutandis to cases where any corporation, that provides low-income citizens without house ownership with rental housing on a deposit basis in order to promote stability in their resident life with national housing fund as financial resources, leased a house, and then a resident, who was selected by the head of a local government or such corporation, finished delivery of such house and resident registration HOUSING LEASE PROTECTION ACT

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against the relevant housing. In such cases, corporations for which opposing power is recognized shall be prescribed by Presidential Decree. (3) The transferee (including the person who has succeeded to the right to lease) of a leased house shall be deemed to have succeeded to the status of the lessor.

(4) The provisions of Articles 575 (1) and (3) and 578 of the Civil Act shall apply mutatis mutandis to cases where a house, an object of the lease under this Act, is the object of a sale or public auction. (5) The provisions of Article 536 of the Civil Act concerning a right of defense to simultaneous performance shall apply mutatis mutandis to the cases as provided for in paragraph (4).

[This Article Wholly Amended by Act No. 8923, Mar. 21, 2008] Article 3-2 (Recovery of Deposit)

(1) In cases where the lessee (including corporations referred to in Ar ticle 3 (2); hereinafter the same shall apply) has filed an application for the auction of the leased house based on the irrevocable judgment on the lawsuit demanding the repayment of deposit or execution title corresponding to it, the fulfillment or provision of opposite obligations shall not be the requirements for the commencement of enforcement, notwithstanding Article 41 of the Civil Execution Act concerning the requirements for the commencement of enforcement.

(2) Any lessee who has met the requirements for opposing power as pre- scribed in Article 3 (1) or (2) and obtained the fixed date on the lease contract document (in cases of Article 3 (2), lease contract documents between a corporation and a lessor), shall be entitled to receive the repayment of the deposit from the converted price of the leased house (including the site thereof), in preference to any junior obligors and other creditors, at the time of an auction as provided by the Civil Execution Act and a public sale as prescribed by the National Tax Collection Act.

(3) Any lessee shall not be permitted to receive the deposit as provided in paragraph (2) without delivering the leased house to the transferee thereof. (4) Any interested person who has any objection to the order in the pref- erential repayment and the deposit, as provided in paragraph (2), may file an objection with the court of auction or the agency which has ordered the disposition for arrears.

(5) The provisions of Articles 152 through 161 of the Civil Execution Act 10

313 (Supp. 46)

shall apply mutatis mutandis to cases where an objection is filed with the court of auction under paragraph (4).

(6) If the interested person establishes that he has instituted a lawsuit against the lessee within seven days after filing the objection, the agency which has ordered the disposition for arrears shall, upon receiving the ob- jection under paragraph (4), withhold the repayment of the deposit to the lessee to the extent that the objection is filed, until the lawsuit is closed, and distribute the balance. In such cases, the withheld deposit shall be dis- tributed in accordance with the result of the lawsuit. [This Article Wholly Amended by Act No. 8923, Mar. 21, 2008] Article 3-3 (Order of Lease Registration)

(1) The lessee who has failed to receive the refund of deposit after the termination of lease may file an application for the order of lease registra- tion to the district court, the branch of the district court, or the Si/Gun court having jurisdiction over the location of the leased house. (2) The matters falling under the following subparagrahs shall be stated on the application for the order of lease registration, and the reasons for application and the facts constituting the reasons for the lease registration shall be clearly explained:

1. Purport and reasons for the application;

2. The house which is an object of the lease (in cases where the object of the lease is a part of the house, the drawing plot shall be attached thereto);

3. The facts constituting the reasons for the lease registration (the fact, in case where the lessee has obtained the opposing power as referred to in Article 3 (1) or (2) or the preferential repayment right as referred to in Article 3-2 (2));

4. Other matters determined by the Supreme Court Regulations. (3) The provisions of Articles 280 (1), 281, 283, 285, 286, 288 (1) and the main sentence of paragraph (2), 289, part concerning 288 (1) of 290 (2), 291 and 293 of the Civil Execution Act shall apply mutatis mutandis to matters under the following subparagraphs. In such cases, a provisional seiz- ure shall be deemed to be registration of a right to lease, a creditor to be a lessee and a debtor to be a lessor:

1. A trial on application for an order for registration of a right to lease;

2. An application for an objection by a lessor against a decision of an order HOUSING LEASE PROTECTION ACT

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for registration of a right to lease and a trial thereof;

3. An application for cancellation of an order for registration of a right to lease and a trial thereof;

4. The execution of an order for registration of a right to lease. (4) The lessee may appeal against a ruling to reject an application for the order of lease registration.

(5) Where the lease registration is completed due to the execution of the order of lease registration, the lessee shall obtain the opposing power as referred to in Article 3 (1) or (2) and the preferential repayment right as referred to in Article 3-2 (2): Provided, That in cases where the lessee has already obtained the opposing power or the preferential repayment right before the registration of lease, the opposing power or the preferential repay- ment right shall be maintained as it is, and even if he has lost the require- ments for opposing power as referred to in Article 3 (1) or (2) after the registration of lease, the opposing power or the preferential repayment right which he has already obtained shall not be lost.

(6) The lessee who has leased the house, for which the lease registration is completed due to the execution of the order of lease registration (in cases where the object of the lease is limited to a part of the house, it shall be limited to the relevant part) thereafter, shall not have the right to receive the preferential repayment as referred to in Article 8. (7) The matters necessary for the execution of the order of lease registration such as the entrustment of lease registration, and the writing of the lease registration by a registration official shall be determined by the Supreme Court Regulations.

(8) The lessee may request the lessor to pay the expenses of an application for the order of lease registration as referred to in paragraph (1) and the lease registration effected as a result thereof.

[This Article Wholly Amended by Act No. 8923, Mar. 21, 2008] Article 3-4 (Validity, etc. of House Lease Registration Pursuant to Provi- sions of Civil Act)

(1) The provisions of Article 3-3 (5) and (6) shall apply mutatis mutandis to the validity of the house lease registration pursuant to Article 621 of the Civil Act.

(2) The lessee shall, in cases where he files an application for the lease registration with the opposing power or the preferential repayment right 10

315 (Supp. 46)

and the lessor s cooperation as referred to in Article 621 (1) of the Civil Act, state the matters falling under the following subparagraphs other than the matters as referred to in Article 156 of the Registration of Real Estate Act on the written application, and the document capable of verifying them (including a drawing plot of the relevant in cases where the objective of lease is limited to a part of house) shall be attached thereto:

1. The completion date of resident registration;

2. The occupation date of the leased house;

3. The date obtaining the fixed date on the lease contract document. [This Article Wholly Amended by Act No. 8923, Mar. 21, 2008] Article 3-5 (Extinction of Lease by Auction)

The right of lease shall, in cases where an auction has been held on the leased house as referred to in the Civil Execution Act, become extinct by a knock-down of the leased house: Provided, That this shall not apply to the right of lease possessing the opposing power for which the entire amount of deposit is not repaid.

[This Article Wholly Amended by Act No. 8923, Mar. 21, 2008] Article 4 (Term of Lease)

(1) With respect to a lease, of which the term is not fixed, or is fixed for less than two years, the term of such lease shall be deemed to be two years: Provided, That the lessee may claim that the term fixed for less than two years shall be valid.

(2) Even though the period for lease has expired, the relations of lease shall be deemed to continue until a deposit is repaid to a lessee. [This Article Wholly Amended by Act No. 8923, Mar. 21, 2008] Article 5 Deleted. Article 6 (Renewal of Contract)

(1) If the lessor fails to notify the lessee of a refusal of the renewal, or to give notification to the lessee to the effect that he/she would not renew the contract without any change in the condition, six months to one month before the term of the lease expires, the lease shall be deemed to have been renewed under the same conditions as the former one at the time the term expires. The same shall apply to cases where the lessee has not notified by one month before the term of the lease expires.

(2) In cases of paragraph (1), the term of the lease shall be deemed to be two years. (3) With respect to a lessee who has failed to pay the rent by up to two installments thereof, or who violates remarkably obligations under the lease HOUSING LEASE PROTECTION ACT

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contract, the provisions of paragraph (1) shall not be applicable. [This Article Wholly Amended by Act No. 8923, Mar. 21, 2008] Article 6-2 (Termination of Contracts in Cases of Implied Renewal) (1) In cases where a contract has been renewed pursuant to Article 6 (1), notwithstanding paragraph (2) of the same Article, the lessee may notify at any time the lessor of termination of the contract.

(2) The termination referred to in paragraph (1) shall enter into force upon the lapse of three months from the date when the lessor has received the notification.

[This Article Wholly Amended by Act No. 8923, Mar. 21, 2008] Article 7 (Requests for Increase or Decrease of Rent) If the stipulated rent or deposit becomes unreasonable due to increase or decrease of taxes, public charges and other burdens on the leased house, or a change in the economic circumstances, the party concerned may demand any increase or decrease thereof in the future: Provided, That in cases of an increase, it shall not exceed the ratio set in accordance with the criteria prescribed by Presidential Decree.

[This Article Wholly Amended by Act No. 8923, Mar. 21, 2008] Article 7-2 (Restriction on Computation Ratio in Cases of Conversion into Monthly Rent)

When the whole or part of the deposit is converted into the rent of monthly unit, it shall not exceed the limit of monthly rent calculated by multiplying the relevant converted amount by the rate prescribed by Presidential Decree, taking account of the loan interest applied by financial institutions under the Banking Act and the economic conditions in the relevant region. [This Article Wholly Amended by Act No. 8923, Mar. 21, 2008] Article 8 (Protection of Specified Amount of Deposit) (1) The lessee shall be entitled to receive a repayment of a specified amount of the deposit in preference to other persons having the security rights in the leased house. In such cases, the lessee shall satisfy requirements provided for in Article 3 (1) before an application for auction of the house is registered.

(2) The provisions of Article 3-2 (4) through (6) shall apply mutatis mu- tandis to cases under paragraph (1).

(3) The extent and standard of a specified amount of the deposit, and a lessee who is entitled to receive a preferential repayment under paragraph (1), shall be prescribed by Presidential Decree through deliberation of the 10

317 (Supp. 46)

Housing Lease Committee under Article 8-2: Provided, That the extent and standard of a specified amount of the deposit shall not exceed a half of the price of a house (including the price of a site).

[This Article Wholly Amended by Act No. 8923, Mar. 21, 2008] Article 8-2 (Housing Lease Committee)

(1) The Housing Lease Committee (hereinafter referred to as the Committee ) shall be established in the Ministry of Justice to deliberate on a lessee who is entitled to receive a preferential repayment and the extent and standard of a specified amount of the deposit pursuant to Article 8. (2) The Committee shall be comprised of members not less than nine persons but not more than 15 persons including one chairperson. (3) The Vice Minister of Justice shall be the chairperson of the Committee. (4) The members of the Committee shall be commissioned by the chairperson from among persons falling under any of the following subparagraphs; not less than one person falling under each of the following subparagraphs 1 through 5 shall be commissioned, and not less than a half of the members shall be commissioned from among persons falling under subparagraph 1, 2 or 6:

1. Persons who have served in an authorized research institution as an assistant professor or higher, or in a position equivalent thereto not less than five years as those who majored in law, economics or real estate or such and have expert knowledge related to housing lease;

2. Persons, as a lawyer, certified public appraiser, certified public accountant, tax accountant or certified real estate broker, who have been engaged in the relevant fields not less than five years and have much experience in affairs related to housing lease;

3. Public officials belonging to the Senior Civil Service and in charge of affairs related to prices of commodities in the Ministry of Strategy and Finance;

4. Public officials belonging to the Senior Civil Service and in charge of affairs related to housing lease in the Ministry of Justice (including public officials in special service equivalent thereto);

5. Public officials belonging to the Senior Civil Service and in charge of affairs related to housing projects or residential welfare in the Minister of Land, Transport and Maritime Affairs;

6. Other persons prescribed by Presidential Decree as those who have profound knowledge and much experience related to housing lease. (5) Other matters necessary for formation and operation of the Committee HOUSING LEASE PROTECTION ACT

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shall be prescribed by Presidential Decree.

[This Article Newly Inserted by Act No. 9653, May 8, 2009] Article 9 (Succession to Right of Lease of House) (1) If a lessee dies without a successor, any person who has a de facto marital relationship and has lived together with the lessee as a member of the family in his/her house, shall succeed to the rights and obligations of the lessee. (2) When a lessee is dead, in cases where a successor has not lived together with the lessee as a member of the family in his/her house, any person having the de facto marital relationship with the lessee, and the relatives within the second degree of relationship therewith, who have lived together with him/her in his/her house, shall jointly succeed to the rights and obligations of the lessee.

(3) In cases provided for in paragraphs (1) and (2), this shall not apply in cases where a person to succeed under paragraphs (1) and (2) gives a dissenting opinion of the succession to the rights and obligations of a lessee to a lessor within one month after the lessee died. (4) In cases provided for in paragraphs (1) and (2), any claim and obligation created by the relation of lease shall be reverted to a person who has succeeded to the rights and obligations of the lessee. [This Article Wholly Amended by Act No. 8923, Mar. 21, 2008] Article 10 (Mandatory Provisions)

Any agreement contrary to this Act and unfavorable to the lessee shall be ineffective.

[This Article Wholly Amended by Act No. 8923, Mar. 21, 2008] Article 11 (Lease for Temporary Use)

If it is obvious that the lease is for a temporary use, this Act shall not be applicable.

[This Article Wholly Amended by Act No. 8923, Mar. 21, 2008] Article 12 (Application to Unregistered Lease of House on Deposit Basis) This Act shall apply mutatis mutandis to a contract for lease of a house on a deposit basis, which is not registered. In such cases, money for lease of a house on a deposit basis shall be deemed deposit for lease . [This Article Wholly Amended by Act No. 8923, Mar. 21, 2008] Article 13 (Application Mutatis Mutandis of Trial of Small Claims Act) Articles 6, 7, 10 and 11-2 of the Trial of Small Claims Act shall apply mutatis mutandis to the lawsuit of an application for the repayment of deposit instituted by the lessee against the lessor. [This Article Wholly Amended by Act No. 8923, Mar. 21, 2008] 10

319 (Supp. 46)

ADDENDA

(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.

(2) (Transitional Measures) This Act shall be applicable to any lease concluded or renewed after this Act enters into force: Provided, That the provisions of Article 3 shall be applicable even to a lease in existence at the time this Act enters into force, but ineffective to a third person who has acquired a real right in relation to the relevant house before this Act enters into force. ADDENDA

(1) (Enforcement Date) This Act shall enter into force on January 1, 1984. (2) (Principle of Transitional Measures) Except as otherwise provided for in this Act, the provisions of this Act shall also be applicable to any matters which have taken place before this Act enters into force: Provided, That it shall not affect the effect created pursuant to the former provisions. (3) (Transitional Measures concerning Request for Increase of Rent, etc.) The amended provisions of the proviso to Article 7 shall not be applicable, if an increase of the rent is requested before this Act enters into force. (4) (Transitional Measures concerning Protection of Small Deposit) The amended provisions of Article 8 shall not be applicable to any person who has acquired the security rights in the leased house, before this Act enters into force.

ADDENDA

(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.

(2) (Transitional Measures concerning Existing and Continuing Lease) Except as otherwise provided for in this Act, this Act shall be applicable to existing and continuing leases at the time this Act enters into force. (3) (Transitional Measures concerning Persons having Security Rights) Any person who has acquired any security right in a leased house before this Act enters into force shall be subject to the former provisions. (4) (Transitional Measures concerning Term of Lease) The term of lease which is existing and continuing at the time this Act enters into force shall be subject to the former provisions.

(5) (Transitional Measures concerning Small Deposit) Any case falling under the definition of small deposit as provided in the former Article 8 at the time when this Act enters into force, shall be subject to the former provisions. HOUSING LEASE PROTECTION ACT

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ADDENDUM

This Act shall enter into force on January 1, 1998. (Proviso Omitted.) ADDENDA

(1) (Enforcement Date) This Act shall enter into force on March 1, 1999. (2) (Transitional Measures Pertaining to Lease in Duration) Except as other- wise prescribed in this Act, this Act shall apply to the lease in duration at the time this Act enters into force.

(3) (Transitional Measures Pertaining to Lease Registration) The amended provisions of Article 3-4 shall not apply to the lease registration which has been completed before this Act enters into force. ADDENDUM

This Act shall enter into force six months after the date of its promulgation. ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force on July 1, 2002.

Articles 2 through 7 Omitted.

ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation. Articles 2 through 4 Omitted.

ADDENDUM

This Act shall enter into force three months after the date of its promulgation. ADDENDUM

This Act shall enter into force on the date of its promulgation. ADDENDUM

This Act shall enter into force three months after the date of its promulgation.