While the current Act defines implicit renewal for a housing lease, it cannot necessarily guarantee the lessee’s occupancy period. Hence, it is necessary to introduce the “right to renewal claim” under the Commercial Building Lease Protection Act. While a rent increase/decrease is prescribed by Presidential Decree, it is needed to explicitly state the upper limit in law.

In an effort to promote residential stability for the lessee, this Act aims to allow the lessee to exercise the right to renew a lease contract one time and specify the annual rent increase upper limit as 5% (Articles 6-3 and 7)

Obligate the lessor to not reject the lessee's right to renew their contract without justifiable reasons (Article 6-3)