[Ryu Taemin's Real Estate A to Z] If Contracted Before June 1, Is Jeonse/Wolse Report Not Required?

If the contract is signed before June 1, reporting is not required
Housing rental business operators are not subject
No need to report if the deposit amount remains unchanged

[Asia Economy Reporter Ryu Tae-min] As the last bill of the Three Lease Laws, the ‘Housing Lease Reporting System (Jeon-Wolse Reporting System)’ is set to be implemented next month, and market confusion is intensifying.

The Jeon-Wolse Reporting System mandates that parties to a housing lease contract must report the contract details to the local community service center within 30 days from the contract date. In real estate-related online communities, landlords and tenants who are about to enter into new or renewal contracts soon are debating whether contracts signed before June 1 must comply with the reporting obligation. Questions regarding the lease reporting system are summarized in a Q&A format.

▲ If a contract expires after June and the contract is signed before June 1, is there no reporting obligation?

- Yes. The lease reporting system is based on the contract signing date. According to an official from the Ministry of Land, Infrastructure and Transport, if the contract date on the contract is before June 1, there is no need to report. The same applies to new contracts signed before June 1, which are not subject to the reporting system.

▲ Are registered housing lease business operators also subject to the lease reporting system?

- No. Registered housing lease business operators are required to report lease changes within 90 days, so no separate reporting is necessary. If you are not a registered housing lease business operator, you must report the lease within 30 days.

▲ If a property is purchased with a Jeonse (key money deposit) lease, must the lease be reported?

- No. When purchasing a property, a real estate sales report must be submitted, which includes submitting the Jeon-Wolse contract (guaranteed succession sale). Therefore, no separate reporting is required.

▲ Must all contracts signed after June 1 be reported?

- Not necessarily. Renewal contracts without changes in contract amount do not need to be reported. Also, if the housing deposit is less than 60 million KRW or the monthly rent is less than 300,000 KRW, it is not subject to reporting. ‘Ultra-short-term’ lease contracts with a contract period of less than one month are also excluded from reporting.

▲ For an ‘ultra-short-term’ lease contract of less than one month, but with monthly rent exceeding 300,000 KRW, is reporting required?

- Since the contract period does not exceed one month, there is no reporting obligation. However, voluntarily reporting the lease does not cause any issues.

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