Ministry of Justice Submits Amendment to the Housing and Commercial Building Lease Protection Act to the National Assembly

[Asia Economy Reporter Choi Seok-jin] The Ministry of Justice has submitted a related bill to the National Assembly to expand the Lease Dispute Mediation Committee, which deliberates and mediates disputes related to residential or commercial building leases, and to have the standard contract forms determined through consultation between the Minister of Justice and the Minister of Land, Infrastructure and Transport.

On the 17th, the Ministry of Justice announced that it had submitted partial amendments to the Housing Lease Protection Act and the Commercial Building Lease Protection Act containing these provisions to the National Assembly.

First, the Ministry of Justice has allowed the Lease Dispute Mediation Committees currently established at the Seoul Central, Suwon, Daejeon, Daegu, Busan, and Gwangju branches of the Korea Legal Aid Corporation to be additionally established at branches or offices of the Korea Land and Housing Corporation (LH) and the Korea Appraisal Board.

Additionally, the Ministry of Justice has established a Commercial Building Lease Committee chaired by the Vice Minister of Justice. This committee will deliberate on criteria such as the deposit amount that determines the scope of application of the Commercial Lease Act, the tenants entitled to priority repayment, and the range of priority repayment amounts.

The amendment also includes provisions for the Minister of Justice and the Minister of Land, Infrastructure and Transport to jointly determine the forms of the standard lease contract and the standard key money contract for residential and commercial building leases.

A Ministry of Justice official stated, “This amendment is due to the joint jurisdiction of the Housing and Commercial Lease Protection Acts with the Ministry of Land, Infrastructure and Transport,” adding, “Going forward, the Ministry of Justice will continue to seek reasonable improvements to lease legislation through close consultation with related ministries such as the Ministry of Land, Infrastructure and Transport and strive to create a stable residential and business environment for tenants.”