South Korea Landlord-Tenant Laws: Complete Guide for Property Owners

South Korea's rental market features the unique Jeonse (lump-sum deposit) and Wolse (monthly rent) systems. The Housing Lease Protection Act (HLPA), enacted 5 March 1981, provides powerful statutory protections, including the "2+2" renewal right.

1. The Jeonse and Wolse Systems

• Jeonse (Lump-sum): The tenant pays a large deposit (50-80% of property value) and no monthly rent. The landlord returns the full principal at the end of the term.
• Wolse (Monthly): A smaller deposit plus monthly rent payments.
• Ban-Jeonse (Hybrid): A moderate deposit combined with reduced monthly rent.

2. Statutory Renewal Rights (2+2)

Tenants have a one-time right to request a 2-year extension after their initial 2-year lease (totaling 4 years). Landlords can only refuse if they or their immediate family (lineal ascendants or descendants) intend to move into the property, the tenant is in arrears for two months or more, or for other serious tenant breaches.

3. Rent Increase Caps (5%)

For contract renewals (including the 2+2 extension), rent or deposit increases are capped at 5%. Landlords cannot implement another increase within one year of a prior adjustment. This cap does not apply to new contracts with different tenants.

4. Eviction and Arrears

Landlords can terminate a lease if rent is two months or more in arrears (Civil Act Art. 640). Termination also applies for unauthorized subletting or serious property damage. Self-help evictions (changing locks) are strictly illegal; all eviction procedures must be exclusively pursued through formal court orders.

5. Maintenance and Repair

• Landlord: Responsible for structural integrity, boiler systems, plumbing, and major electrical.
• Tenant: Responsible for consumables (filters, bulbs) and minor damages caused by negligence.