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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Commercial property leasing in South Korea is governed by the Commercial Building Lease Protection Act, 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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