Up to 300,000 Won Fine for Failing to Report Jeonse or Monthly Lease Contracts Starting in June

End of Four-Year Grace Period for the Monthly and Jeonse Lease Reporting System

Starting in June, failure to report monthly or jeonse lease contracts will result in a fine of up to 300,000 won.

The Ministry of Land, Infrastructure and Transport announced on April 28 that it will end the grace period for the "housing lease contract reporting system," which has been in effect since June 2021, on May 31. From June, fines will be imposed in earnest for non-compliance.

A flyer for sale and jeonse listings is posted at a real estate agency in Gangnam, Seoul. Photo by Kang Jinhyung

The lease contract reporting system requires landlords and tenants to report contracts with a deposit exceeding 60 million won or a monthly rent exceeding 300,000 won to the local government within 30 days. Failure to do so will result in a fine. Until now, the ministry had not imposed fines during a grace period of about four years, taking into account the potential burden on the public.

However, as the lease contract reporting rate rose to 95.8% last year, and with the institutional foundation now in place through the advancement of the Real Estate Transaction Management System (RTMS) and the introduction of mobile reporting features, the ministry decided to begin imposing fines starting June 1.

Fines will range from a minimum of 20,000 won to a maximum of 300,000 won. Originally, the range was from 40,000 won to 1 million won, but the ministry revised the Enforcement Decree of the Act on Report of Real Estate Transactions, etc. to lower the fine levels ahead of the end of the grace period.

From May, the ministry will also send text message notifications to individuals who have only obtained a fixed date at local administrative welfare centers without reporting their contracts, informing them that they are required to report. Active online and offline publicity efforts will also be made.

Kim Heonjeong, Director of Housing Policy at the ministry, said, "The implementation of fines is an unavoidable decision to ensure the stabilization of the housing lease contract reporting system," adding, "We will further improve reporting convenience and reduce the number of people subject to fines through intensive publicity." He continued, "We will also continue to enhance the positive functions of the system, such as automatic assignment of fixed dates and alleviating information asymmetry, to strengthen tenant rights protection."