Seoul City Provides First 'On-site Commercial Lease Dispute Mediation Service'... Held at Gangnam District Office on 19th

Active Administration Visits to Ease Inconvenience for Small Business Owners Unable to Leave Their Shops for Long
Dispute Mediation Held in Local District After Scheduling with Landlords and Tenants Upon Application

[Asia Economy Reporter Lim Cheol-young] The Seoul Metropolitan Government announced on the 16th that it will hold the first "Visiting Commercial Building Lease Dispute Mediation Committee" at Gangnam District Office on the 19th to alleviate the inconvenience of small business owners who find it difficult to leave their business premises unattended for long periods.

The "Visiting Commercial Building Lease Dispute Mediation Committee" is an active service for small business owners who hesitate to apply due to the long time required to attend the committee, despite disputes arising related to contract termination, rent increases, key money refunds, and other issues.

At the "Visiting Commercial Building Lease Dispute Mediation Committee" held at Gangnam District Office on the 19th, three professional mediation committee members, including lawyers and appraisers, will attend to review and mediate dispute cases. Additionally, the "Commercial Lease Consultation Center," where various questions related to key money recovery, contract renewal, rent, and other commercial lease matters can be resolved, will operate on the same day from 2 PM to 6 PM at the Gangnam District Office General Civil Service Office. Landlords and tenants who visit the site can receive consultations from two professional counselors without prior reservation or application.

Currently, the "Seoul Commercial Building Lease Dispute Mediation Committee" consists of 30 experts from various fields, including lawyers, appraisers, architects, and licensed real estate agents. When a dispute mediation application is received, the committee coordinates dates when both the landlord and tenant can attend, and three committee members conduct legal reviews and on-site investigations before holding the mediation committee for each case. Until now, the committee was held at Seoul City Hall, but starting with Gangnam District, the committee will be held directly in the applicant’s local district if requested.

Since its establishment in 2016, the Seoul Metropolitan Government has resolved 424 disputes through the committee, and the average mediation initiation rate over the past three years exceeds 86%. Common disputes include rent adjustments, contract terminations, key money recovery, and repair costs. The mediation committee not only conducts legal reviews but also performs on-site investigations and calculates the "Seoul-type Fair Rent," which is used as mediation material, thereby deliberating and mediating based on objective standards. Furthermore, the city plans to enhance mediation success rates and activate dispute mediation by establishing cooperative systems with organizations such as the Korea Legal Aid Corporation, which currently operates commercial lease dispute mediation committees, through collaboration among affiliated professional mediators.

Lee Byung-wook, Director of Fair Economy at Seoul City, said, "To respond promptly to commercial lease dispute cases, we have added a visiting dispute mediation committee that goes directly to the relevant area," and added, "We will activate the commercial lease dispute mediation committee and consultation center to quickly remedy the damages suffered by landlords and tenants struggling with commercial lease disputes."