Choo Mi-ae: "5% Increase Rate for 2+2 Year Lease Renewal Requests... Decided by Local Governments"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] On the 27th, Minister of Justice Choo Mi-ae stated regarding the contract renewal claim system, "We are considering a plan to set the contract period to 2+2 years (one extension) and allow local governments to decide the renewal increase rate within 5%."

Minister Choo appeared at the plenary meeting of the National Assembly's Legislation and Judiciary Committee on the same day and responded to a question from Kim Jin-ae, a member of the Open Democratic Party, saying, "We have decided to review in the mid to long term whether this will also apply to new contractors."

She added, "There has been much discussion about this law, so I hope it will pass quickly," and said, "The rent ceiling system for jeonse and monthly rent is showing signs of soaring even now, so passing it quickly would send an appropriate signal to the market."

Meanwhile, at the Judiciary Committee on the same day, the Housing Lease Protection Act, which proposes contract renewal periods from 2+2 years up to unlimited and a rent ceiling increase of 5% compared to the existing rate, was submitted by a majority.

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