Eviction Lawsuits Take an Average of 4 Months... Both Time and Costs Are Burdensome
Including Lawyer Fees, Costs Often Exceed 10 Million Won
On December 21 last year, when social distancing measures were further strengthened due to the rapid increase in COVID-19 cases, a rental notice was posted on a store located in Daehak-ro, Jongno-gu, Seoul. Photo by Jinhyung Kang aymsdream@
Due to the side effects of the rapid surge in housing prices and various regulations, many predict that instability in the monthly rental housing market will continue this year. The commercial property market, still affected by the COVID-19 pandemic, is in a similar situation. Amid this, conflicts related to lease agreements caused by rent arrears have significantly increased, causing growing concerns among landlords.
"The tenant has fallen behind on rent for three months and has notified me of the termination of the lease contract. The tenant says they will vacate the building if I provide moving expenses. Filing an eviction lawsuit is costly, but paying moving expenses feels like an unnecessary expense. Which option is better?"
There are two ways to respond in such cases: either pay the moving expenses as requested by the tenant or proceed with an eviction lawsuit. An eviction lawsuit refers to a legal action initiated by the landlord to remove the tenant when grounds for lease termination arise, such as rent arrears or expiration of the contract period.
The problem is that eviction lawsuits involve considerable time and financial burdens.
To proceed with an eviction lawsuit, one must pay attorney fees and court costs. If the tenant does not leave even after the judgment, forced eviction must be carried out, which incurs significant additional costs. According to industry sources, when forced eviction follows an eviction lawsuit, even for a small area, costs easily exceed 5 million KRW. Including variables during forced eviction and attorney fees, the total can surpass 10 million KRW.
According to statistics from the Legal Eviction Lawsuit Center, which provides specialized legal consultations on eviction lawsuits, the longest case took 21 months, the shortest took 2 months, and the average duration was 4 months.
Experts suggest a benchmark of "1 million KRW for moving expenses" to landlords who are debating whether to spend time and money on an eviction lawsuit or simply pay moving expenses. If the moving expenses are around 1 million KRW, paying the moving expenses is considered a more practical choice.
Real estate attorney Um Jeong-sook (Beopdo Comprehensive Law Office) said, "Before filing an eviction lawsuit, various cost-related considerations must be made. Although tenants have no legal obligation to receive moving expenses, in reality, it is often more efficient to provide them."
Meanwhile, if the tenant remains silent regarding the three months of rent arrears separate from moving expenses, an eviction lawsuit should be pursued. According to the "2021 Judicial Yearbook" released by the Supreme Court, among last year's eviction lawsuit rulings (19,479 cases), the plaintiff (landlord) won or partially won in 18,760 cases, accounting for 96% of the total.
Attorney Um said, "Eviction lawsuits are based on the landlord's clear rights, so unless there are major variables, the landlord usually wins. There is no need to automatically comply with tenants' demands when their fault is obvious."
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