ENGLISH

- A “lease agreement” refers to an agreement that becomes effective when one of the parties has agreed to allow the other party to use an object and take profits therefrom, and the latter has agreed to pay rent for it (Article 618 of the Civil Act).

- For a lease, the period of which has not been determined or period of which has been determined for not more than 1 year, such period shall be deemed 1 year. However, a tenant may assert that such period determined for less than 1 year is valid (Article 9(1) of the Commercial Building Lease Protection Act).

- Even after the lease is terminated, the relationship of lease is deemed to continue to exist until a tenant's security deposit is returned (Article 9(2) of the Commercial Building Lease Protection Act).

- A lease shall become effective against third parties on the day following the date on which a tenant files an application for the transfer of the relevant building and business registration even when no registration of the lease exists (Article 3(1) of the Commercial Building Lease Protection Act).

- The term "franchise business" refers to a continuous business relationship in which a franchiser allows its franchisees to use its own trademarks, service marks, trade names, signs, or any other business marks (hereinafter referred to as "business marks;" hereinafter the same shall apply) in selling goods (including raw materials and auxiliary materials) or services in compliance with certain quality standards or business methods, and supports, trains, and controls its franchisees in regards to their management, business activities, etc., and in which franchisees pay franchise fees to their franchiser in return for the use of business marks, and the support and training provided for their management, business activities, etc. (Subparagraph 1 of Article 2 of the Fair Transactions in Franchise Business Act).