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Unaware of Lease Contract Reporting Period, Fined...Kwonikwi Urges Local Governments to "Provide Proper Guidance"

"Passive Administration Causing Public Inconvenience Even When Following the Law... First Improvement Recommendation"

Unaware of Lease Contract Reporting Period, Fined...Kwonikwi Urges Local Governments to "Provide Proper Guidance" A view of the villa neighborhood from a building in Yangcheon-gu, Seoul, where villa transaction volumes are increasing. Photo by Mun Ho-nam munonam@


[Sejong=Asia Economy Reporter Moon Chaeseok]


#Mr. A applied for a rental business registration in Samcheok-si, Gangwon-do in June last year. The responsible public official sent Mr. A a notice by mail within 3 months, including guidance on rental contract reporting and precautions, as well as a license tax bill. It was marked "Delivery completed (recipient)" along with the registration number. About 9 months after the rental business registration date, Mr. A visited the city in March this year to report the rental contract, but the city informed him that he was subject to a fine because the contract reporting period had passed by 3 months. Mr. A filed a passive administration report to the Anti-Corruption and Civil Rights Commission (ACRC), stating that "the rental contract reporting procedure was not properly informed, causing inconvenience such as being fined and having to go through a court trial for the fine due to an objection." The ACRC recommended the city and the Ministry of Land, Infrastructure and Transport to improve deficiencies such as sending guidance letters.


On the 14th, the ACRC announced that even if administrative agencies send business registration certificates and contract reporting notices through proper procedures when registering rental businesses, if the business operator misunderstands and fails to report within the period, the related agencies are recommended to take responsibility and strengthen prior guidance. This is the first 'passive administration improvement recommendation' related to such civil complaints. The message is that even if the law is followed, inconvenience to the public should not occur, so improvements are necessary.


The ACRC explained that although Mr. A filed a passive administration report, the city did not violate the law. According to the Special Act on Private Rental Housing, rental business operators must report or update the rental contract details such as rental period, rent, and tenant to the mayor, county governor, or district head within 3 months from the date of contract conclusion or modification. The ACRC judged that it is difficult to see that the city official violated laws, infringed on Mr. A’s rights, or caused financial losses to the state or local governments.


However, considering the inconvenience Mr. A experienced when the court canceled the fine on the grounds of "non-compliance due to misunderstanding," and the continuous occurrence of such cases, the ACRC recommended the city and the Ministry of Land to improve deficiencies in the private rental registration system, such as spreading cases, conducting education, and sending prior notices before the rental contract reporting due date.


Lee Jeonghee, Vice Chairman of the ACRC, said, "We have supplemented the system so that if passive administration reports do not resolve public inconvenience or if there are objections to the handling results, a re-examination can be requested to the ACRC," adding, "We will carefully monitor to encourage proactive administration by public officials and eradicate passive administration so that the public does not experience inconvenience."


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