Jeonse and Wolse Reporting System Postponed to June Next Year... Ministry of Land, Infrastructure and Transport Says "No Issues"

Outline of the 'Lease 3 Laws'... Passed by the National Assembly Land, Infrastructure and Transport Committee
Jeonwolse Rent Cap and Contract Renewal Request Right to be Implemented First

Minister of Land, Infrastructure and Transport Kim Hyun-mi attended the full meeting of the Land, Infrastructure and Transport Committee held at the National Assembly on the 29th and is talking with Cho Eung-cheon, the Democratic Party of Korea's secretary./Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Moon Jiwon] The Jeonwolse 신고제, which forms the basis for implementing the 'Lease 3 Acts,' is scheduled to be enforced starting June next year. Although the timing has been delayed compared to initial expectations, concerns have arisen that implementing the Jeonwolse Price Cap System and the Right to Request Contract Renewal first could lead to various side effects. However, the Ministry of Land, Infrastructure and Transport maintains that there is "no problem."

According to the National Assembly and the Ministry of Land, Infrastructure and Transport on the 29th, unlike other Lease 3 Acts such as the Jeonwolse Price Cap System or the Right to Request Contract Renewal, the Jeonwolse 신고제 will not be implemented immediately but will take effect on June 1 next year. Initially, the ruling party and government planned to push all Lease 3 Acts simultaneously, but the implementation of the Jeonwolse 신고제 was delayed due to the time required to build the system.

According to the amendment to the 'Real Estate Transaction 신고 Act' by Park Sanghyuk, a member of the Democratic Party, which passed the National Assembly Land, Infrastructure and Transport Committee the day before and moved to the Legislation and Judiciary Committee, from June next year, when a Jeonwolse transaction occurs, the lease contract details must be 신고ed to the local government within 30 days. The same applies when changing or terminating a contract.

The 신고 details are expected to include the contracting parties, rent, and lease period. If the tenant files a move-in 신고, it will be considered as 신고ing the Jeonwolse as well, and if the lease contract is submitted during 신고, a confirmed date will be automatically assigned. The bill stipulates that the areas and housing subject to the Jeonwolse 신고제 will be designated through enforcement ordinances, but it is highly likely to be implemented not only in the metropolitan area but also in most regions and housing nationwide.

Considering the opposition from licensed real estate agents, the 신고 obligation is imposed only on the contracting parties. A method to 신고 online without visiting the district office is being promoted. Failure to fulfill the obligation will result in a fine of 50,000 KRW, and false 신고s will incur a fine of up to 1,000,000 KRW. Considering initial confusion in the system, fines are set low but are expected to increase later.

Once the Jeonwolse Price Cap System is implemented, all regional Jeonwolse market price information will be disclosed, and rental income tax bases can be verified to prevent tax evasion. However, since the implementation timing has been delayed, concerns have been raised that the earlier-implemented Right to Request Contract Renewal and Jeonwolse 신고제 may face difficulties.

If the price of Jeonwolse is not transparently disclosed, implementing the price cap system may easily lead to disputes between parties. There is also a concern about the creation of blind spots in the system.

The Ministry of Land, Infrastructure and Transport holds the position that since the parties already have existing Jeonwolse contracts, even if the 신고제 is implemented somewhat late, there is no significant problem in preventing fraud. A ministry official said, "Assigning confirmed dates requires linking data between the Ministry of the Interior and Safety and the Ministry of Land, Infrastructure and Transport, which takes time to build the system," adding, "Since the parties have already concluded contracts, implementing the price cap system and the right to request renewal first is not problematic."

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