Fine for Late Jeonse and Wolse Reporting to Be Lowered from 1 Million Won to 300,000 Won

Fines for Late Reporting under Lease Law to Be Lowered
Government Considering Extension of Grace Period for Penalties
Notification System to Remind Tenants of Reporting Obligation Planned

The government has decided to lower the maximum fine for delayed reporting under the Jeonse and Wolse Reporting System, one of the three major lease laws, from 1 million won to 300,000 won when the delay is simply due to late reporting. The guidance period, during which fines are not imposed even if the rules are violated, will end at the end of May. The government is currently considering whether to further extend the grace period for imposing fines after that.

On February 11, the Ministry of Land, Infrastructure and Transport announced that it will pre-announce a revision to the Enforcement Decree of the Act on Report of Real Estate Transactions, which will partially ease the criteria for imposing fines under the housing lease transaction reporting system. The Jeonse and Wolse Reporting System requires landlords and tenants to report the details of their contracts to the local government within 30 days if the deposit exceeds 60 million won or the monthly rent exceeds 300,000 won.

Currently, if a report is not filed within the deadline or if false information is reported, a fine ranging from 40,000 won to 1 million won is imposed depending on the contract amount and the length of the delay. The Ministry of Land, Infrastructure and Transport considers it excessive to set the maximum fine for simple late reporting (not false reporting) at 1 million won, and has decided to lower the upper limit to 300,000 won. For false reporting, the maximum fine will remain at 1 million won.

A notice related to the Jeonse and Wolse Reporting System is posted at Yongsan District Office in Seoul in June 2021, when the housing lease reporting system (Jeonse and Wolse reporting system) was fully implemented. Photo by Kang Jinhyung aymsdream@

Since the implementation of the Jeonse and Wolse Reporting System in June 2021, the government has only imposed the reporting obligation for four years, without actually imposing fines, considering the need for public awareness. Whether to further extend or end the guidance period will be decided later.

Jeonse and Wolse contract reports can be filed at the local community center with jurisdiction over the property or on the real estate transaction reporting website. The Ministry of Land, Infrastructure and Transport plans to establish a notification system within the first half of the year that will automatically send an AlimTalk message to tenants who apply for a fixed date at the community center but fail to report their lease transaction, informing them that they are subject to the reporting requirement.