South Korea Commercial Lease Laws: Complete Guide to the Commercial Building Lease Protection Act
Comprehensive overview of South Korea's commercial property lease regulations including converted deposit thresholds, 10-year renewal rights, key money prote...
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This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.Information last verified: May 2026.
Commercial property leasing in South Korea is governed by the Commercial Building Lease Protection Act (effective 29 December 2001), which provides tenant protections distinct from those available under the residential Housing Lease Protection Act. With longer renewal periods, key money (gwolligeum) protection, and unique converted deposit thresholds, commercial landlords must navigate a specialized regulatory landscape.
Key Regulations at a Glance
Converted Deposit (Hwansan Bojeunggeum)
Calculation
Some protections under the Act apply only when the converted deposit falls below regional thresholds. The formula is:
Converted Deposit = Security Deposit + (Monthly Rent × 100)
Regional Thresholds
Rights That Apply Regardless of Converted Deposit
Even when the converted deposit exceeds the regional threshold, the following rights are guaranteed to all commercial tenants:
- Opposing power (delivery + business registration)
- Contract Renewal Request Right (10 years)
- Key money recovery protection
- Rent increase/decrease request rights
Key Differences from Residential Leases
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Sources & Official References
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