Gosiwon and Shantytowns... Virtually the Entire Country Subject to Jeonse and Monthly Rent Reporting System

Q&A on the Jeonwolse Reporting System

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyemin] The Jeonwolse Reporting System, which will be implemented from June, is expected to cover most rental housing transactions in urban areas. Not only new contracts but also renewal contracts must be reported if the deposit or monthly rent amount changes. The details are summarized in a Q&A format.

- Which housing is subject to the Jeonwolse Reporting System?

▲ All housing subject to the Housing Lease Protection Act. This includes apartments, multi-family houses, quasi-housing such as goshiwon and dormitories, housing within factories or commercial buildings, and non-housing such as shanties.

- What are the regions subject to reporting?

▲ The entire Seoul metropolitan area, metropolitan cities, Sejong City, and city areas of provinces are designated, effectively covering the whole country. However, county areas in provinces excluding Gyeonggi-do are excluded.

- What are the reporting amount criteria?

▲ Reporting is required if the lease deposit exceeds 60 million KRW or the monthly rent exceeds 300,000 KRW. In the case of half-rent (banjeonse), if either the deposit or the monthly rent exceeds these criteria, it must be reported.

- How to report?

▲ Applications can be made at existing integrated civil service centers such as the local town, township, or neighborhood offices that have jurisdiction over the leased housing. It is principle that both the lessor and lessee fill out the report form and sign jointly before reporting, but if the lease contract is presented, either party can report. Documents proving the contract details or bank deposit statements can also be submitted.

- Is online reporting possible?

▲ Yes. You can report by accessing the government real estate transaction management system (rtms.molit.go.kr). In this case, a photo of the contract must be attached.

- Must renewal contracts also be reported?

▲ Renewals must also be reported. However, if there is no change in the contract amount, reporting is exempted.

- Is a fine of 1 million KRW always imposed for non-reporting?

▲ No. The fine varies from 40,000 KRW to 1 million KRW depending on the case. 40,000 KRW applies if the lease contract is under 100 million KRW and reported within 3 months. After 2 years from the contract date, the maximum fine of 1 million KRW is imposed.