LH to Fully Implement Electronic Contract System for Lease Agreements

[Asia Economy Reporter Lee Chun-hee] Korea Land and Housing Corporation (LH) announced on the 25th that it will fully implement real estate electronic contracts for lease agreements of construction rental housing such as national rental, permanent rental, and Happy Housing to prevent the spread of COVID-19 and enhance customer convenience.

Real estate electronic contracts are a system established by the Ministry of Land, Infrastructure and Transport to ensure transparency and convenience in real estate transactions. With only a certified digital certificate, contracts can be easily concluded through electronic signatures using a PC, smartphone, or tablet.

Since the end of 2016, LH has gradually expanded the scope of its electronic contract pilot project, which initially targeted Happy Housing tenants. As of last month, the usage rate of electronic contracts for Happy Housing reached 76.4%, showing a strong preference among young people such as youth and newlyweds.

By utilizing electronic contracts, contracts can be concluded regardless of time and place during the contract period. Convenience is also enhanced as the confirmed date is automatically assigned without visiting the community service center. Additionally, economic benefits can be obtained, such as an additional 0.1 percentage point reduction in the interest rate for the Buttimgok loan and preferential interest rates for jeonse deposit loans applied by some commercial banks. However, LH plans to continue offering on-site contracts for tenants unfamiliar with electronic contracts, such as the elderly.

Specific details such as eligibility for electronic contracts and usage methods can be confirmed through tenant recruitment announcements posted on the LH Application Center or contract guidance letters sent by the regional headquarters in charge. Detailed information on electronic contracts and preferential loan interest rates can be found on the Ministry of Land, Infrastructure and Transport’s real estate transaction electronic contract system.

Jo In-su, Director of Housing Welfare Planning at LH, said, “Since real estate electronic contracts are a system that allows tenants to use it more conveniently and economically, we plan to actively promote and expand support for greater customer convenience.”

This content was produced with the assistance of AI translation services.