(1) Reasons for Proposal

This proposal seeks to improve some inadequate provisions that have been made apparent in the operation of the current system, such that there will be prior consent by the lessee in cases where the lessor is mutually converting the rental deposit and monthly rent, and that changes in rental agreements will be reported even if the renewal of the agreement was done implicitly.

(2) Major Provisions

A. Ensure prior consent by lessee in cases of mutual conversion of rental deposit and monthly rents (Article 18)

If the lessor is requesting an increase in monthly rents and mutually converting the rental deposit and monthly rents, require that he/she acquires prior consent from the lessee

B. Impose reporting obligations of changes in rental agreements even in cases of implicit agreement (Article 19)

To confirm compliance with rent increase standards, specify that changes in rental agreements shall be reported even if the renewal of the agreement was implicit

C. Amend standard rental agreement (attached Form 24)

Unify the two Standard Rental Agreement forms, and amend the provisions so that the Standard Rental Agreement form will reflect the amended provisions in the Act such as criteria for rental fee increase, rescission/termination of rental agreement due to lessee’s request, etc.