Forgotten Lease Report... Ministry of Land, Infrastructure and Transport to Postpone Fine Imposition for 1 Year

[Asia Economy Reporter Kim Min-young] The Ministry of Land, Infrastructure and Transport announced on the 26th that it will extend the guidance period for the lease reporting system by one more year, considering the burden on the general public and the administrative conditions of local governments.

Accordingly, the guidance period for the lease reporting system will be operated for a total of two years, from June 1 of last year to May 31 of next year. No fines will be imposed during the guidance period.

The lease reporting system is a system implemented since June 1 of last year to transparently provide actual transaction information in the lease market and to protect tenants' rights.

From June of last year to March of this year, a total of 1,223,000 lease contracts were reported. The monthly number of reports has steadily increased, with 68,000 cases in June last year, 104,000 cases in September of the same year, and 173,000 cases in March of this year.

New contracts accounted for 968,000 cases (79%), and renewal contracts accounted for 254,000 cases (21%). Among the renewal contracts, 135,000 cases (53.2% of renewal contracts) exercised the right to request renewal. The total amount of monthly rent and lease transaction information combined with confirmed dates up to March after the lease reporting system was 2,089,000 cases, an increase of 13.0% compared to the same period last year.

In particular, the amount of information on monthly rent and non-apartment units, which had relatively fewer confirmed date reports, has increased, enabling more accurate market monitoring.

However, considering that the typical lease contract period is two years, the Ministry of Land, Infrastructure and Transport judged that most people have not yet experienced the reporting system due to lack of publicity and the contract timing not yet arriving, so it seems that more time is needed for the system to settle. Therefore, the guidance period was extended by one year until May next year to align with the typical lease contract period.

Additionally, at the meeting with local government officials in charge of the lease reporting system, many opinions were presented that the guidance period should be extended and operated uniformly nationwide.

To increase the reporting rate, the Ministry plans to strengthen life-oriented publicity such as notification talk services and local government巡回 education, and from the end of next month, provide notification talk services through the Ministry of the Interior and Safety’s National Secretary (Guppi) service to guide lease reporting obligations and contract precautions. Furthermore, promotional packages on lease precautions targeting university students, young workers, and the elderly will also be promoted.

Kim Young-han, Director of Housing Policy at the Ministry of Land, Infrastructure and Transport, said, "Since the lease reporting system is not intended to impose fines, we plan to continue informing the general public about the system and foster a voluntary reporting atmosphere through improved reporting convenience and various publicity efforts."

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