Increase in Rent or Deposit
Request for increase- If the stipulated rent or deposit becomes unreasonable due to an increase in taxes, public utility charges, and other charges on the leased house, or a change in economic circumstances during the term of a lease contract, the lessor may demand any increase thereof prospectively (Former part of Article 7(1) of the Housing Lease Protection Act).
Limit of increase- No request for an increase shall be made within 1 year after a lease contract is concluded or rent or deposit is increased (Latter part of Article 7(1) of the Housing Lease Protection Act).
- Neither the rent nor the security deposit for lease may be increased more than 1/20 of the agreed-upon amount. However, special cities, metropolitan cities, special self-governing cities, provinces, and special self-governing provinces may, by ordinance, set a maximum increase differently within the scope of 1/20 shown above, considering circumstances such as the regional rental market conditions within their jurisdiction (Article 7(2) of the Housing Lease Protection Act).
- The limit on the increase is also applied to leases that have been in existence since before July 31, 2020 (Article 2(1) of the Addenda of the Housing Lease Protection Act <No. 17470>). However, this does not apply if the lessor refused to renew the lease and entered into a lease contract with a third party before July 31, 2020 (Article 2(2) of the Addenda of the Housing Lease Protection Act <No. 17470>).
Acquisition of opposing power and preferential payment right for the increased amount- If a lessee has increased the rent or deposit upon request or by renewing a contract, he/she needs to prepare a written lease contract for the increased rent or deposit and obtain the fixed date on the written contract in order to receive the repayment of the increased rent or deposit in preference to any junior obligees from that day on.