South Korea Commercial Maintenance Obligations: Landlord and Tenant Responsibilities for Commercial Properties

Commercial property maintenance in South Korea is governed by the Civil Act and established Supreme Court precedents. Under Civil Act Article 623, the landlord (lessor) is legally bound to maintain the leased property in a condition suitable for the intended use and profit of the tenant (lessee) throughout the lease term. While the Commercial Building Lease Protection Act (상가건물 임대차보호법) provides specific protections for tenure and rent, it does not supersede the Civil Act's fundamental repair and maintenance framework.

Cost Allocation

The following allocations reflect standard commercial leasing practices and legal requirements in South Korea. While the lease contract is a primary reference, certain obligations are non-waivable.

Landlord Responsibilities (Major and Structural Repairs)

Per Supreme Court Precedents (94Da34692, 94Da34708), the landlord remains liable for large-scale repairs even if a comprehensive repair waiver exists in the lease.

Tenant Responsibilities (Minor Repairs and Fit-outs)

Parties may contractually agree that the tenant handles minor repairs (e.g., consumables or small-scale fixes that do not impede the overall use of the property).

Common Area Management

Fire Safety Obligations

Commercial buildings must comply with the Act on Fire Prevention and Safety Management. Building owners or managers are required to conduct "In-house Inspections" (자체점검):

HVAC Considerations

Remedies When Repairs Are Not Made

Special Clause Limits

• "All repairs are tenant's responsibility" — Per Supreme Court Precedent (94Da34692), comprehensive waivers do not cover major structural repairs or basic building infrastructure.
• "Landlord bears no liability for building aging" — Structural defect waivers are generally unenforceable for large-scale repairs required to maintain the property's intended use.

Best Practices for Landlords

1. Define repair scope specifically in the lease — Distinguish between "minor repairs" (tenant) and "major structural repairs" (landlord).
2. Maintain a regular inspection schedule — Conduct mandatory In-house Inspections for fire safety as required by law.
3. Respond promptly to repair requests — Failure to maintain the property can lead to rent reduction claims under Civil Act Art. 627.
4. Itemize management fees transparently — Show how common area costs and maintenance fees are calculated.
5. Appoint a fire safety manager — Non-compliance with fire safety management results in administrative fines.

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