South Korea Commercial Lease Laws: Complete Guide to the Commercial Building Lease Protection Act

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

Explore Commercial Topics

• Commercial Security Depositsไม่มีตัวอย่าง
• Commercial Eviction Processไม่มีตัวอย่าง
• Commercial Required Disclosuresไม่มีตัวอย่าง
• Commercial Rent Increasesไม่มีตัวอย่าง
• Commercial Lease Requirementsไม่มีตัวอย่าง
• Commercial Maintenance Obligationsไม่มีตัวอย่าง
• Commercial Late Feesไม่มีตัวอย่าง