Starting Tomorrow: Jeonwolse Reporting System Implemented... Completion of the 'Lease 3 Laws'

One-Year Guidance Period... No Fines Imposed
Report Within 30 Days from Contract Date
Reporting Available at Community Centers and Online

Real estate agencies in the Mapo-gu area of Seoul [Image source=Yonhap News]

[Asia Economy Reporter Moon Jiwon] Starting from the 1st of next month, the 'Jeonwolse Reporting System' will be fully implemented. Accordingly, all three rental laws, including the Jeonwolse Contract Renewal Request System and the Jeonwolse Rent Cap System introduced last year, will be enforced. Failure to comply with the Jeonwolse reporting obligation will result in fines, but the government has decided to operate a one-year guidance period to prevent confusion during the initial phase of the system's introduction.

The Ministry of Land, Infrastructure and Transport announced on the 31st that it has completed the revision of subordinate regulations under the 'Real Estate Transaction Reporting Act' and will implement the Jeonwolse Reporting System starting June 1st.

According to the Ministry, the Jeonwolse reporting target includes new and renewal (excluding renewals without rent changes) lease contracts concluded from the enforcement date of June 1st. Nationwide, except for counties in provinces other than Gyeonggi-do, all Jeonwolse contracts with a deposit exceeding 60 million KRW or monthly rent exceeding 300,000 KRW must be reported.

The government set the reporting threshold considering the minimum amount of Jeonwolse deposits eligible for priority repayment without a fixed date, as well as the average monthly rent of lodging houses and non-residential tenant households, which may lack reporting capability.

The report content consists of personal information of the contracting parties, housing type, address, and other information about the leased property, as well as lease contract details such as rent and contract period. These are the same as the main items in the lease contract form. Both landlords and tenants can report by visiting the local community service center with jurisdiction over the leased housing or online via the Real Estate Transaction Management System within 30 days from the lease contract date.

It is principle that the report form is jointly submitted by the contracting parties. However, for the convenience of the reporter, joint reporting is possible if either the landlord or tenant submits the lease contract signed by both parties. Agents authorized by the reporter, such as licensed real estate agents, can also report in person or online by attaching a power of attorney. The power of attorney form will be registered as a sample on the Real Estate Transaction Reporting System.

The Ministry will operate a one-year guidance period until May 31st next year, considering the general public's adaptation period to the new system. During the guidance period, no fines will be imposed for failure to comply with the reporting obligation. Even after the guidance period, voluntary reporting before the initiation of fine imposition procedures will exempt the reporter from fines, minimizing the burden on the general public.

The government expects that the introduction of the Jeonwolse Reporting System will significantly strengthen tenant rights protection. When a contract is reported, a fixed date will be automatically assigned without a fee, and the effect of the fixed date will apply from the date of report receipt. Since online reporting is available 24 hours regardless of holidays, the inconvenience of visiting community centers to obtain a fixed date will be reduced.

In particular, the Jeonwolse Reporting System can greatly increase information on rental prices, durations, renewal rates, and other rental market data. Previously, rental information was insufficient compared to sales transactions, but with public disclosure, tenants can check surrounding new and renewal rent information before signing contracts, enabling rational decision-making.

This information is planned to be piloted for public release around November. The disclosed data is expected to include estimated rental property volumes by region, contract renewal rates by region, and rent fluctuation rates.

The government reflected various opinions before implementing the Jeonwolse Reporting System. First, school dormitories are classified as school facilities under relevant laws and do not take the form of general residential lease contracts. Since dormitory fees are publicly announced on the university e-Alimi system, they are excluded from the reporting target. However, company dormitories are included in the reporting target.

Also, short-term lease contracts with clear temporary residence due to reasons such as temporary business trips or 'one-month living in Jeju Island,' where the main residence is registered for moving-in, are excluded from the reporting target.

Kim Susang, Director of the Housing and Land Office at the Ministry of Land, Infrastructure and Transport, said, "In the future, we will prepare linkage plans with systems related to lease contracts such as moving-in registration and Jeonwolse loans to establish this as a convenient system essential to the public."

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