- Benefit
- Converted deposit = deposit + monthly rent × 100. Limits (Enforcement Decree Article 2): Seoul KRW 900 million / overcrowding control zones (excluding Seoul) and Busan KRW 690 million / metropolitan cities, Sejong, Paju, Hwaseong, Ansan, Yongin, Gimpo and Gwangju KRW 540 million / elsewhere KRW 370 million (unchanged since 2019.4). Leases above the limit are still protected for opposing power against third parties, renewal demand (10 years) and premium recovery opportunity (the 5% increase cap does not apply). The renewal demand is made 6 to 1 months before expiry; three months of overdue rent, etc. are grounds for refusal or termination.
- Who is eligible
- Tenants of commercial buildings who have registered a business (full application within the converted deposit limit; some provisions apply above it)
- When to apply
- Open all year · renewal demand from 6 months to 1 month before contract expiry · opposing power from the day after handover + business registration
- How to apply
- Confirmed date: tax office or Hometax (홈택스) · disputes: apply for mediation to the Commercial Building Lease Dispute Mediation Committee (branches of the Korea Legal Aid Corporation, LH, Korea Real Estate Board)
- Important notes
- If the renewal demand period passes, the lease is renewed tacitly (1 year). The claim for damages for premium is subject to a 3-year limitation after the lease ends.
- Note
- Rent increase demands are capped at 5%, and no further increase within 1 year after an increase. Priority repayment for small tenants (Enforcement Decree Articles 6 and 7): if the converted amount is KRW 65,000,000 or below in Seoul, KRW 55,000,000 in overcrowding control zones, KRW 38,000,000 in metropolitan cities, etc., and KRW 30,000,000 elsewhere, the deposit is repaid with priority up to KRW 22,000,000, KRW 19,000,000, KRW 13,000,000 and KRW 10,000,000 respectively.
Based on official sources as of 2026년 10월. Amounts and requirements may change, so please confirm with the official guide before applying.