Partial Amendment to the Housing Lease Protection Act for 'Jeonse Fraud Prevention' Passes Cabinet Meeting

[Asia Economy Reporter Kim Hyung-min] The Ministry of Justice announced that the "Partial Amendment to the Housing Lease Protection Act," which allows prospective tenants to request information about prior-ranking tenants before signing a lease contract and enables swift registration of lease rights in emergencies, passed the Cabinet meeting on the 14th.

This amendment strengthens tenants' rights to access information, expedites lease rights registration, expands and raises the scope and amount of tenants eligible for priority repayment.

Prime Minister Han Duck-soo is attending the Cabinet meeting held at the Seoul Government Complex on the 14th and delivering opening remarks. Photo by Yoon Dong-joo doso7@

First, prospective tenants will have the new right to request a tax payment certificate from the landlord. The tax payment certificate is a document proving that there are no other outstanding tax arrears except for extended payment deadlines or deferred seizure and sale amounts. If the landlord refuses, the prospective tenant can directly verify the tax delinquency status through a consent procedure at the tax office. This measure aims to prevent potential damages that could arise because prospective tenants cannot know about tax delinquencies unless the landlord discloses them.

If a prospective tenant requests the landlord’s consent to view housing information such as prior-ranking deposits, the landlord is obligated to agree. Under current law, if the landlord refuses, the information cannot be obtained, but this amendment makes it mandatory.

In cases where the landlord has passed away, provisions have been made to allow tenants to promptly register their lease rights. This is a government measure to prevent incidents like the recent public outrage over the "Villa King" case.

Under current law, to request lease rights registration, the landlord must first be notified of the lease rights registration order. Therefore, if the landlord dies and inheritance matters are unsettled, or if the landlord’s address is unknown or delivery is evaded, timely lease rights registration is difficult. Accordingly, the government plans to add a clause from the Civil Execution Act stating that "provisional seizure execution can be carried out before the debtor is served with the judgment" to the lease rights registration order provision in the Housing Lease Protection Act.

Villa King

This will allow lease rights registration even before the landlord is notified of the lease rights registration order decision. Without performing subrogation inheritance registration, the lease rights registration order can be issued naming the landlord’s heir as the respondent, and lease rights registration can proceed. The notification procedure to the landlord after the court’s lease rights registration order will also be eliminated.

The scope of small-amount tenants eligible for priority repayment will be uniformly raised by 15 million KRW, and the priority repayment amount will be increased to 5 million KRW. For housing located in Seoul Special City, tenants eligible for priority repayment will be those with amounts up to 165 million KRW, and the priority repayment amount will be up to 55 million KRW.