One-Year Extension of the Guidance Period for Housing Lease Reporting

Songpa-gu Extends Guidance Period Without Fines from May 31 This Year to May 31 Next Year

[Asia Economy Reporter Jongil Park] Songpa-gu (Mayor Park Seong-su) announced on the 5th that the grace period for the housing lease reporting system will be extended by one year from the original deadline of May 31 this year to May 31 next year.

The housing lease reporting system requires the government to report contract details such as lease period and rent, and has been in effect since June 1 last year. It applies to contracts in Songpa-gu where the deposit exceeds 60 million won or the monthly rent exceeds 300,000 won.

Also, for renewed contracts after the system implementation, if there is a change in rent, reporting is required; however, for tacit renewals or renewals without rent changes, reporting is not required.

With this extension of the grace period, no fines will be imposed until May 31, 2023, but since the obligation to report leases is not exempted, reporting must be done without fail.

Furthermore, from June 1, 2023, fines will be imposed for failure to report or delayed reporting of lease contracts.

Reporting can be done by the parties involved in the transaction (lessor and lessee) visiting the local community service center in the area where the real estate is located within 30 days from the contract date, or online through the Real Estate Transaction Management System. Lessors under the ‘Private Rental Housing Act’ can report to the district office’s Housing Division (Rental Business Team) or RentHome.

From the system’s implementation date to May 31 this year, a total of 67,097 lease contracts have been reported in the district, and efforts will be focused on guiding the system and encouraging voluntary reporting to prevent residents from suffering disadvantages due to unreported contracts.

Park Seong-su, Mayor of Songpa-gu, stated, “The housing lease reporting system is not intended to impose fines but to ensure transparent information disclosure in the lease market and protect tenants,” adding, “We will do our best to protect residents’ rights by actively promoting the system and fostering a voluntary reporting culture.”