According to data published by Statistics Korea last year, 8.745 million (43.8%) out of 19.979 million households in Korea do not own their own houses, and 50.9% of the households in Seoul do not own their own houses.

Furthermore, according to the latest 2019 Korea Housing Survey, the lessee’s average period of residence is just 3.2 years, and monthly rent accounts for 16.1% of the lease household’s monthly income (20.0% in the Seoul Metropolitan Area). Rising deposit costs make it difficult for working-class people without their own houses to pay rent and pose a serious challenge to residential stability as it forces them to take out a loan or give up extending their lease contract.

In this regard, this Act aims to introduce the right to renew the lease contract and an upper limit on rent/deposit increases to protect the lessor’s property rights and the lessee’s right to housing.

Allow the contract period to be extended for at least 4 years including the initial lease period and the lessor to notify a rejection of contract renewal only if there is a reason set by law (Article 6)

For housing lease contract renewal, allow deposit or rent to increase within 5/100 of the previous deposit or rent (Article 7)

Introduce the right to renew the lease contract and upper limit of the rent/deposit increase (Article 6)