Follow-up Measures to the Commercial Lease Protection Act 'One After Another'... Establishment of Lease Dispute Committee, Expansion of Dispute Mediation Committee

On July 30th, the partial amendment bill of the Commercial Building Lease Protection Act passed the plenary session of the National Assembly. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Lee Chun-hee] Following the recent amendment of the "Commercial Building Lease Protection Act," which includes provisions prohibiting forced eviction even if tenants delay rent payments for up to six months under special circumstances such as the novel coronavirus infection (COVID-19), subsequent procedures related to the bill are underway.

On the 13th, the Ministry of Land, Infrastructure and Transport and the Ministry of Justice announced that a revised enforcement decree containing the establishment of the Commercial Building Lease Committee and the nationwide expansion of the Dispute Mediation Committee to enhance the effectiveness of the amended Commercial Building Lease Protection Act was passed at the Cabinet meeting held that day.

The revised decree is scheduled to be implemented from the 1st of next month after the President's approval and promulgation.

Accordingly, the Commercial Building Lease Committee is expected to be established starting next month. This committee will deliberate on the scope of the deposit amount, which serves as the standard for applying the Commercial Building Lease Act, as well as the scope and criteria for tenants who are prioritized for repayment and certain amounts of deposits.

Currently, the Housing Lease Committee also deliberates on the scope and criteria of tenants prioritized for repayment and certain deposit amounts for housing leases. The contents deliberated by both committees are finalized by Presidential Decree.

The revised decree stipulates that specific matters necessary for the composition and operation of the committees will be detailed through Presidential Decree.

The Dispute Mediation Committee, which facilitates faster and more convenient resolution of disputes between landlords and tenants in commercial leases, will also be expanded. Currently, six Dispute Mediation Committees are installed only at the Korea Legal Aid Corporation, but with the addition of the Korea Land and Housing Corporation (LH) and the Korea Appraisal Board as operating agencies, six Dispute Mediation Committees will be established at each of LH and the Appraisal Board.

A government official stated, "We plan to do our best to ensure the early settlement of the Commercial Building Lease Protection Act by promptly establishing Dispute Mediation Committees following this enforcement decree revision."

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