Residential Lease Contracts... Must Be Reported Within 30 Days

In Five Cities Including Mokpo, Residential Leases
With Deposits Over 60 Million KRW or Monthly Rent Over 300,000 KRW
Violations Subject to Fines Up to 300,000 KRW
To Be Applied to Contracts Signed From June 1

Notice on Reporting Residential Lease Contracts. Provided by Jeonnam Province

Jeonnam Province announced that the grace period for imposing fines on violations of the mandatory residential lease contract reporting, which has been in effect for four years since June 2021, will end on May 31. Starting from contracts signed on June 1, fines will be actively imposed for violations of this obligation.

The residential lease contract reporting system requires that lease contracts for residential buildings in five cities?Mokpo, Yeosu, Suncheon, Naju, and Gwangyang?with a deposit exceeding 60 million KRW or a monthly rent exceeding 300,000 KRW must be reported within 30 days of signing.

Until now, fines were supposed to be imposed for lease contracts not reported within 30 days. However, considering the early stage of implementation, the fines were deferred. For lease contracts signed after June 1, reporting within 30 days is mandatory. Violations will result in fines ranging from a minimum of 20,000 KRW to a maximum of 300,000 KRW.

Reporting must be done jointly by both the landlord and the tenant. If the contract is submitted, a report by either party will be processed as a joint report. The main contract details, such as rent, can be reported by visiting the local administrative welfare center in the jurisdiction of the property's location or by accessing the real estate transaction management system. Since October last year, reporting via mobile devices (smartphones and tablets) has also been available, greatly improving the convenience of lease contract reporting.

Reporting a lease contract is considered as assigning a fixed date, which allows tenants to secure the right of residence and priority repayment of the deposit. This provides substantial help in preventing tenant damages such as Jeonse fraud or non-return of deposits.