On May 15, Eunpyeong-gu in Seoul announced that, with the end of the guidance period for the "Housing Lease Contract Reporting System" on May 31, a fine will be imposed if contracts signed after June 1 are not reported within 30 days or are falsely reported.
The "Housing Lease Contract Reporting System" is a policy that requires both landlords and tenants to report housing lease contracts within 30 days of signing if the deposit exceeds 60 million won or the monthly rent exceeds 300,000 won.
This system has been in effect since June 2021 with the aim of transparently disclosing actual transaction information in the housing lease market and overcoming information asymmetry between landlords and tenants. To ensure the system’s stable settlement and to ease the burden on citizens and administrative conditions, a four-year guidance period with no fines was implemented, which is set to end on May 31.
In addition, a revision to the Enforcement Decree of the Act on Report of Real Estate Transactions, which eases the standards for imposing fines, was promulgated on April 29. As a result, starting in June, the maximum fine for delayed reporting of housing lease contracts will be significantly reduced from 1 million won to 300,000 won.
Both landlords and tenants are required to report lease contracts, and if either party submits a signed or sealed contract, it is considered a joint report. Applications can be made by visiting the local community center or online through the Real Estate Transaction Management System website.
Kim Mikyung, Mayor of Eunpyeong-gu, said, "With the end of the guidance period, I urge both landlords and tenants to be cautious to prevent any unintended damage when entering into housing lease contracts," and added, "I hope that the district office, community centers, and other related institutions will do their utmost to prevent confusion following the end of the guidance period."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
