"How Are Commercial Management Fees Used?"... Detailed Breakdown Disclosure Now Mandatory Starting Today

Implementation of Amendments to the Act on the Protection of Commercial Building Lease and Its Enforcement Decree

From now on, commercial building tenants will be able to verify exactly how the management fees they pay are being used.

The Ministry of Justice announced that it will implement amendments to the Act on the Protection of Commercial Building Lease and its Enforcement Decree, containing these provisions, starting from May 12, 2026.

Previously, there had been a series of cases in which some commercial building owners used management fees in a non-transparent manner or raised them without justification, resulting in damages to tenants. The recent amendment aims to prevent such incidents by requiring landlords to provide tenants with a detailed breakdown of management fees. According to the amendment, landlords who collect management fees from tenants must provide a breakdown across 14 categories, including general management, cleaning, security, and disinfection costs.

However, for small-scale commercial units, the reporting requirements have been simplified to reduce the burden. In cases where the management fee paid by each tenant is less than 100,000 won per month, the landlord is only required to notify which items are included in the management fee, rather than specifying the amount for each category.

Additionally, the Ministry of Justice published and distributed the revised 'Standard Lease Contract for Commercial Buildings,' which now lists the detailed categories of management fees, in line with the amendments to the Enforcement Decree and the law's effective date.

Justice Minister Jeong Seong-ho stated, "With these institutional improvements and the revision of the standard contract, the details used to calculate management fees will now be transparently disclosed, providing a foundation to prevent the longstanding practice of unfair management fee charges."

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