South Korea Commercial Eviction Process: 3-Month Arrears, Key Money Obligations, and Court Procedures
Guide to commercial tenant eviction in South Korea including the 3-month arrears threshold, renewal refusal grounds, key money recovery duties, and eviction ...
Juridisk ansvarsfraskrivelse
Dette innholdet er kun for generell informasjon og opplæring. Det utgjør ikke juridisk rådgivning og bør ikke stoles på som sådan. Lover endres ofte – verifiser alltid gjeldende forskrifter og konsulter en lisensiert advokat i din jurisdiksjon for råd spesifikt for din situasjon. Landager er en eiendomsforvaltningsplattform, ikke et advokatfirma.Informasjon sist verifisert: March 2026.
Evicting a commercial tenant in South Korea follows similar procedural requirements to residential eviction but with a higher arrears threshold and additional obligations around key money (gwolligeum) protection.
Commercial Eviction Process in national
Issue Breach Notice
Serve a formal written breach notice specifying the default and cure period.
Allow Remedy Period
Give the tenant opportunity to fix the breach within the specified time.
Terminate Lease
Issue a termination notice if the breach remains unresolved.
Court Action
Apply to Housing Lease Dispute Mediation Committee / Civil Court for a possession order if the tenant refuses to vacate.
Legal Grounds for Termination
Key difference: Commercial leases require 3 months of cumulative rent arrears for termination, compared to 2 months for residential leases.
Renewal Refusal Grounds
When a tenant exercises the Contract Renewal Request Right, the landlord may refuse only for:
- 3 or more months of rent arrears
- Obtaining the lease by fraud or improper means
- Unauthorized subletting
- Serious property damage through willful or gross negligence
- Planned demolition or reconstruction (with compensation or equivalent offer)
- Material breach of tenant obligations after reasonable cure period
- Other statutory grounds
Key Money and Eviction
Landlord's Obligation
From 6 months before lease termination through the termination date, the landlord must not interfere with the tenant's ability to recover key money from an incoming tenant.
Prohibited Interference
- Refusing to contract with a prospective tenant introduced by the outgoing tenant without just cause
- Demanding significantly higher rent or deposit from the prospective tenant
- Demanding significantly higher key money from the prospective tenant
- Other acts that obstruct key money recovery
Key Money Protection After 10 Years
Per Supreme Court precedent, key money recovery protection continues even after the 10-year renewal period has expired. This is a significant consideration for landlords.
Damages for Interference
Landlords who interfere with key money recovery face damages liability, calculated based on the lower of the agreed key money or the market-rate key money at lease termination.
Eviction Procedure
Step 1: Certified Notice
Send formal termination and vacate notice via certified mail.
Step 2: Preliminary Injunction
File for an order preventing possession transfer during litigation.
Step 3: Eviction Lawsuit
Step 4: Forced Execution
After final judgment, apply for court-supervised forced vacating.
Deposit and Eviction Relationship
- Deposit return and premises surrender are simultaneous obligations
- An eviction without offering deposit return may be dismissed
- Overdue rent may be deducted from the deposit
Best Practices for Landlords
- Track the 3-month arrears threshold carefully — cumulative, not necessarily consecutive
- Understand key money obligations — interference exposes you to significant damages
- Verify renewal refusal grounds before sending notice
- Define restoration scope upfront — especially for tenant-installed interiors
- Engage specialized legal counsel — commercial disputes tend to involve large sums
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