Since the private rental housing registered by a rental business entity (hereinafter referred to as "registered rental housing") can increase rents only within five percent per annum during the mandatory rental period, it may be helpful to the residential stability of the lessee, but the current Act needs to be improved because it does not provide a system to check whether a house for which a lessee enters into the rental contract is the registered rental house.
On the other hand, since there are increasing cases in which rental business entities discretionally transfer private rental housing or violate the rental conditions such as the limitation of rent increase, the Act aims to strengthen the sanction measures by raising the related fine.
Also, at the revisions of the previous Rental Housing Act and the current Act in August 2015 and January 2018, respectively, they required the housing which is registered in accordance with the previous Act to comply with the previous Act, reorganizing the registration type of private rental housing, but confusions are arising because the applicable Act is different according to the type of rental housing; therefore, the Act aims to improve and complement a number of weaknesses that have emerged in the operation of such current system.

Details

A. The Act requires rental business entities to additionally record that registered lease housing shall comply with the mandatory rental period and the criteria of rent increase in the ownership registration (Article 5-2 newly inserted).
B. The Act requires rental business entities to receive lessees’ consent if they apply for the cancellation of registration before one month has passed from the date of registration of the registered rental housing whose rent contract has not yet expired (Article 6 (1) 4).
C. The Act adds the Korea Appraisal Board as one of the agencies that is able to perform tasks such as the recruitment/selection and transfer/vacating of tenants for public support of private rental housing (Article 59-2 (1)).
D. The Act strengthens sanctions on the violation, etc., of obligations of rental business entities.
(1) Increasing the fine, from not more than 10 million won to not more than 50 million won, imposed on those who did not rent or transferred private rental housing (Article 67 (1) 1, Article 67 (5) 2).
(2) Imposing a fine of not more than 50 million won on anyone who transferred private rental housing to whom is not a rental business entity without the permission of the head of Si/Gun/Gu during the mandatory rental period (Article 67 (1) 2 newly inserted).
(3) Increasing the fine, from not more than 10 million won to not more than 30 million won, imposed on anyone who does not set the initial rent of public assistance private rental housing under the criteria prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport or anyone who requests an increase in rent exceeding the permissible rate of rent increase (Article 67 (2) 1 and 2; Article 67 (5) 3).
(E) The Act introduces a regard system of the acceptance of a report such as notifying the applicant whether the report is accepted within the period specified in this Act when the head of Si/Gun/Gu receives a report of registration/change of the rental business entity and housing rental management business (Article 5 (4) and (5), Article 7 (4) and (5), Article 26 (6) and (7), Article 42 (5) and (6), Article 43 (3) and (4), and Article 46 (3)).
(F) Revision of the previous Addenda
(1) The quasi-public rental housing and the 10-year rental housing registered under the previous Rental Housing Act shall be deemed as quasi-public rental housing and short-term rental housing, respectively, according to the current Act, but a part of provisions such as the mandatory rental period shall be subject to the previous Rental Housing Act (Article 3 (3) of Addenda of wholly amended Act, the Special Act on Private Rental Housing, Act No. 13499, newly inserted).
(2) The commercial rental housing or the quasi-public rental housing registered under the previous provisions at the time this Act enters into force shall be deemed as a long-term general private rental housing under this Act (Article 5 (4) of Addenda of wholly amended Act, the Special Act on Private Rental Housing, Act No. 15356, newly inserted).