'Lease 3 Laws' Submitted to Legislation Committee... Tenant Contract Renewal Made Easier

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[Asia Economy Reporter Lee Ji-eun] The amendment to the Housing Lease Protection Act, which includes some parts of the 'Lease 3 Acts' promoted by the government and the ruling party, was submitted to the Legislation and Judiciary Committee on the 27th. If the Lease Act is passed, tenants will be able to request contract renewal regardless of the number of previous renewals. The government and the ruling party plan to process the bill by the plenary session on the 4th of next month.

According to the Legislation and Judiciary Committee on the 27th, among the Lease 3 Acts (Jeonwolse Reporting System, Jeonwolse Rent Cap System, and Contract Renewal Request Right System), the amendment to the Housing Lease Protection Act including the Contract Renewal Request Right System and the Jeonwolse Rent Cap System was submitted in multiple forms.

The Contract Renewal Request Right System is a law that guarantees tenants the right to request contract renewal. The bill jointly proposed by Yoon Hu-deok, Park Hong-geun, and Baek Hye-ryeon of the Democratic Party allows one extension (2 years + 2 years extension), the bill proposed by Kim Jin-ae of the Open Democratic Party allows two extensions, and the bill proposed by Park Ju-min of the Democratic Party allows unlimited extensions. Regarding the Jeonwolse Rent Cap System, the main point is that the increase in deposit and rent at contract renewal cannot exceed 5% compared to the existing amount.

This is intended to prevent a sharp rise in Jeonwolse prices and ensure tenants' housing stability. The government plans to allow existing tenants who signed contracts before the law's enforcement to request contract renewal after the law takes effect. Additionally, the ruling party and government are considering not only guaranteeing a 4-year contract period but also unconditionally recognizing one contract renewal. If this is implemented, tenants will be able to extend their contracts once more regardless of the number of previous renewals. However, considering landlords' opposition, if the landlord proves that they need to move into the leased house themselves, they can refuse the tenant's contract renewal request.

The ruling party and government intend to ensure that the bills submitted to the Legislation and Judiciary Committee on this day are processed within the July extraordinary session, which ends on the 4th of next month. Since the possibility of the August National Assembly session opening is low, if the bills do not pass the plenary session by then, the processing will be delayed until the regular September session.

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