The Anti-Corruption and Civil Rights Commission: "SH's full compensation demand from rental tenants for fire of unknown cause is excessive"

SH recommends "Applying Depreciation Rate and Withdrawing Contract Termination"

[Sejong=Asia Economy Reporter Moon Chaeseok] The Anti-Corruption and Civil Rights Commission has judged that Seoul Housing and Communities Corporation (SH) demanding full compensation from tenants for damages caused by a fire of unknown origin in public rental housing, and proceeding with contract termination and eviction lawsuits, is excessive.

According to the Commission on the 30th, a fire broke out last October in an SH public rental apartment where Mr. A resided. Mr. A was away from home at the time, and the cause of the fire was not determined.

Nevertheless, SH notified Mr. A that he must bear the entire repair cost of 35 million won for fire restoration, terminated the lease contract citing 'failure to restore to original condition,' and proceeded with an eviction lawsuit.

Mr. A is unable to rent another house due to financial difficulties and is living in a jjimjilbang, while his spouse is residing at a relative's home.

The Commission judged that "the rental housing where Mr. A lived is about 24 years old, and most of the finishing materials have been used without replacement, so the property value is already low; demanding the full repair cost for replacement with new items from Mr. A is unfair."

Unlike Korea Land and Housing Corporation (LH), which fully insures against fire damages, SH has only partial insurance and shifts the compensation burden to tenants, which is inconsistent with SH’s founding purpose of 'stabilizing housing for low-income citizens.'

Accordingly, the Commission recommended SH to apply depreciation rates to calculate an appropriate fire restoration compensation amount and to withdraw the lease contract termination.

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