Fines Imposed for Unreported Contracts Starting June 1
For Deposits Over 60 Million Won or Monthly Rent Over 300,000 Won
Gwangju City has urged residents to exercise special caution, announcing that starting June 1, anyone who fails to report a residential lease contract will be subject to a fine of up to 300,000 won.
This is because, under the amended "Act on Report of Real Estate Transactions, etc.," the grace period for the residential lease contract reporting system will end on May 31, and from June 1, fines will be imposed on those who fail to report.
The "Residential Lease Contract Reporting System" was introduced in August 2020 and implemented from June 2021. Its purpose is to transparently disclose actual transaction information in the residential lease market and to overcome information asymmetry between landlords and tenants.
The reporting requirement applies to residential lease contracts entered into after June 2021 for residential purposes, where the deposit exceeds 60 million won or the monthly rent exceeds 300,000 won. This applies to the Seoul metropolitan area, metropolitan cities and provinces (excluding county-level areas), Sejong City, and Jeju Island. All areas within Gwangju City are included.
Both landlords and tenants are obligated to report the lease contract within 30 days of signing. If either party submits a signed and sealed contract, it is considered a joint report.
To report, residents must visit the administrative welfare center with jurisdiction over the property's location. Online reporting is also available through the Real Estate Transaction Management System. If the report is not filed within the designated period, both landlord and tenant may be fined between 20,000 won and 300,000 won. Submitting a false report will result in a fine of 1 million won.
The required documents are the Residential Lease Contract Report Form and the residential lease contract itself. If the contract is attached when reporting, the contract is automatically assigned a fixed date. Renewals that are tacitly extended or do not involve rent changes after June 1 are not subject to the reporting requirement, provided the initial report has been completed.
Gwangju City is actively promoting the reporting requirement to prevent residents from facing disadvantages due to non-compliance. Promotional materials have been posted on the city and district websites, and posters and leaflets are available at local administrative welfare centers. The city is also cooperating with the Gwangju branch of the Korea Association of Realtors to disseminate information through licensed real estate agencies.
Kim Giho, Director of the Land Information Division, stated, "As the grace period ends, fines will be imposed starting in June if residential lease contracts are not reported within 30 days. We ask for the special attention and active cooperation of all citizens."
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