South Korea Commercial Landlord Disclosures: Key Money, Agents
Guide to commercial lease disclosure requirements in South Korea including property registry review, converted deposit information, key money, and the agent'...
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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 lease transactions in South Korea, governed primarily by the Commercial Building Lease Protection Act (effective 29 December 2001), require landlords and real estate agents to disclose specific information to prospective tenants. In addition to the standard property disclosures, commercial leases involve unique considerations around converted deposits, permitted uses, and key money.
Landlord Disclosure Obligations (Upon Request)
Under the Commercial Building Lease Protection Act and tax collection statutes, commercial landlords do not have a broad, proactive "material fact" disclosure duty in the same manner as licensed agents. However, they are legally required to provide or consent to the following specific information:
Note: Prospective tenants may request to view tax arrears with the landlord's consent. However, if the deposit exceeds 10 million KRW, the tenant has the right to view these arrears without the landlord's consent from the date the contract is signed until the lease commencement date.
Commercial-Specific Considerations
While not strictly statutory proactive disclosures for the landlord, these items are critical for commercial leases and are typically negotiated or disclosed during contracting:
Property Confirmation and Explanation Document (Agent's Duty)
When a licensed real estate agent brokers the transaction, the agent—not the landlord—has the statutory obligation under Article 25 of the Licensed Real Estate Agents Act to prepare and deliver a detailed "Property Confirmation and Explanation Document" (중개대상물 확인·설명서) covering:
| Rights | Ownership, mortgages, seizures, liens | | Use restrictions | Zoning, urban planning limitations | | Facilities | Electricity, water, gas, HVAC, fire safety | | Transaction terms | Expected deposit and rent |
Commercial-Specific Agent Obligations
- Business type restrictions — notify if building rules or zoning prohibit certain businesses
- Business licensing feasibility — whether the location supports required permits
- Illegal construction status — unauthorized additions or use changes
- Nearby development plans — redevelopment or reconstruction projects
Key Money Disclosures
A separate key money agreement specifying the type (facility, business, location) and amount is recommended. Note that key money is typically a private agreement between outgoing and incoming tenants; landlords have no statutory duty to disclose interference history or prior key money amounts.
Best Practices for Landlords
- Verify building register status — business registration may be denied for illegal constructions
- Explain converted deposit implications — affects the scope of tenant protections
- Disclose permitted use restrictions — prevents post-contract disputes
- Itemize management fees transparently — distinguish common charges from individual charges
- Address reconstruction and key money clearly — document 10-year renewal period, reconstruction plans, and key money recovery rights
Frequently Asked Questions
▶What are the key landlord-tenant laws in South Korea?
South Korea\'s rental market features the unique Jeonse (lump-sum deposit) and Wolse (monthly rent) systems. The Housing Lease Protection Act (HLPA) provides powerful statutory protections, including the "2+2" renewal right. This guide covers the essential compliance requirements for property owners and landlords.
Read the complete guide▶What is the legal eviction process for landlords in South Korea?
The eviction process in South Korea requires landlords to follow formal legal procedures. Valid grounds typically include non-payment of rent, lease violations, or the landlord's personal use of the property. Landlords must provide proper written notice, allow any required cure periods, and may need to obtain a court or tribunal order. Self-help evictions are generally prohibited.
Read the complete guide▶What are the rent increase limits and caps in South Korea?
South Korea has specific rules governing when and how landlords can increase rent. These rules may include caps on the percentage of increase, minimum notice periods, and restrictions on frequency. Landlords must comply with all applicable regulations when raising rent on existing tenancies.
Read the complete guide▶What are the security deposit rules and return deadlines in South Korea?
South Korea has rules governing how much landlords can charge as a security deposit, how deposits must be held or protected, and the timeline for returning deposits after a tenancy ends. Landlords must provide itemized statements of any deductions and comply with all statutory deadlines to avoid penalties.
Read the complete guide▶What are the mandatory lease requirements in South Korea?
Lease agreements in South Korea must comply with applicable national and local laws. Required elements typically include the names of both parties, property description, rent amount and payment terms, deposit details, lease duration, and maintenance responsibility allocation. Written leases may be required for certain tenancy types or durations.
Read the complete guide▶What are the landlord maintenance and repair obligations in South Korea?
Landlords in South Korea are generally required to maintain rental properties in a habitable condition, keeping the structure, plumbing, electrical systems, and essential services in proper working order. The specific allocation of maintenance responsibilities between landlord and tenant should be clearly documented in the lease agreement.
Read the complete guide▶What are the late fee and penalty rules for rental properties in South Korea?
South Korea has specific rules regarding late fees and penalties for overdue rent. These may include mandatory grace periods, caps on late fee amounts, and restrictions on interest charges. Late fee provisions should be clearly stated in the lease agreement and must comply with local regulations to be enforceable.
Read the complete guide▶What property disclosures are landlords required to make in South Korea?
Landlords in South Korea must disclose relevant information about the property to prospective tenants before the lease is signed. Required disclosures typically include known material defects, environmental hazards, previous damage history, and any conditions that could affect the tenant's use and enjoyment of the property.
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