For New Jeonse and Monthly Rent, Exercise Your Renewal Request Right Up to Two Months Before Contract Expiration

Starting from the 10th, new and renewed Jeonwolse contracts will apply
Not retroactive to contracts previously signed

In July, the National Assembly plenary session passed the Housing Lease Protection Act, which introduces the rent ceiling system and the right to request contract renewal.
[Image source=Yonhap News]

[Asia Economy Reporter Lee Chun-hee] From now on, newly signed housing lease contracts must exercise the right to request contract renewal at least two months before the contract expires.

According to the Ministry of Land, Infrastructure and Transport on the 10th, the amended Housing Lease Protection Act, which includes this provision, came into effect on the same day. The amendment changes the period for exercising the right to request contract renewal from six months to one month before the contract expires to six months to two months before the contract expires.

This amendment was separately revised in June before the government and ruling party pushed through the two lease laws, including the right to request contract renewal, in July. It concerns tacit renewal. Under the previous law, if the landlord did not express refusal to renew the lease contract by one month before the lease period ended, the contract was tacitly renewed; this period has now been changed to two months before expiration.

As the government and ruling party decided to apply the tacit renewal period to the exercise period of the right to request contract renewal during the amendment process of the two lease laws, the exercise period for the right to request contract renewal has also changed to six months to two months before the contract expires.

A view of a licensed real estate office in Mapo-gu, Seoul. [Image source=Yonhap News]

However, the new lease law applies only to contracts signed from this day forward. After the amendment was announced, the industry interpreted that contracts expiring between January 10 and February 9 next year must request contract renewal before December 9. But the Ministry of Land, Infrastructure and Transport dismissed this, stating, "The amended regulation applies only to contracts first signed or renewed after the 10th," and that it is not retroactive. For example, if the contract expires on January 14 next year, the landlord only needs to receive the renewal request by the 13th, one month prior, according to the original regulation.

However, there is a point to be cautious about: the basic principle of civil law called 'Choilbulsanip' (excluding the first day from counting the contract period). For example, if a lease contract starts on January 1 next year, counting the first day would mean the contract ends on December 31, 2022. But according to the Choilbulsanip principle, the contract ends on January 1, 2023. This is why the exercise period for the right to request contract renewal ends at 0:00 on November 1, 2022, not at 0:00 on October 31, 2022.

Tenants who wish to renew the contract should express their intention to renew to the landlord within the designated exercise period. This intention can be communicated verbally. However, since the introduction of the right to request contract renewal under the recent two lease laws has increased the potential for legal disputes, if the landlord denies having received the notice, proving it may become difficult. Therefore, tenants are advised to communicate their intention via phone calls or text messages to leave evidence.

If the landlord cannot be contacted, tenants can send a certified letter through the post office. In case of a lawsuit later, if the landlord claims they did not receive the certified letter and thus did not receive the notice, the landlord must present a valid reason for not receiving the certified letter.

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