Studio buildings with 5 or more floors can now be registered for long-term lease

Amendment to the Special Act on Private Rental Passed by the National Assembly Standing Committee
Representative Proposal by Kim Gyoheung of the Democratic Party

[Image source=Yonhap News]

[Asia Economy Reporter Jo Gang-wook] Studio-type buildings classified as apartments with more than five floors are also expected to be allowed for rental registration.

According to the National Assembly and the Ministry of Land, Infrastructure and Transport on the 20th, the amendment to the "Special Act on Private Rental Housing," which includes this content, passed the National Assembly Land, Infrastructure and Transport Committee on the 19th. The bill was jointly proposed by Kim Gyo-heung, a member of the Democratic Party of Korea.

The amendment specifies that studio-type housing is excluded from the definition of "apartment" under the Private Rental Housing Act, allowing rental registration of studio-type housing and making only general apartments subject to regulation.

There was controversy over the concept of apartments when the government abolished the apartment purchase rental type among 4-year short-term and 8-year long-term rentals through the July 10 measures last year.

The Ministry of Land, Infrastructure and Transport judged buildings with five or more floors as apartments based on the Building Act. Even if it is a studio-type housing classified as urban lifestyle housing, if it exceeds five floors, it was considered the same as an apartment, making long-term rental impossible.

Once the amendment is passed, multi-home rental business owners who own studio buildings with more than five floors will continue to receive comprehensive real estate tax benefits.

This bill is scheduled to be enforced two months after its promulgation. If the bill passes the National Assembly quickly, rental business owners will be able to continue registering these types of housing as rental housing and receive tax benefits before the comprehensive real estate tax calculation in June this year.

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