The Ministry of Land, Infrastructure and Transport will end the grace period for the housing lease contract reporting system and begin imposing fines from June 1.
The lease contract reporting system was introduced in August 2020 to increase transparency of real estate transaction information, and it has been in effect since June 2021. Lease contracts with a deposit exceeding 10 million won or a monthly rent exceeding 300,000 won must be reported within 30 days.
Up until now, no fines were imposed for violations during the grace period. However, with the end of the grace period on May 31, fines will be levied on any contracts concluded after June 1 that are not reported or falsely reported.
The Ministry has revised the Enforcement Decree on the Act on Report of Real Estate Transactions to reduce the burden of fines. The maximum fine for delayed reporting has been reduced from 1 million won to 300,000 won.
Fines are imposed progressively based on the unreported period and contract amount. Contracts under 100 million won are fined up to 100,000 won, 100 million to 300 million won up to 150,000 won, 300 million to 500 million won up to 250,000 won, and over 500 million won up to 300,000 won.
The Ministry of Land has designated May as an ‘Intensive Promotion Period,’ conducting education for local governments and certified real estate agents nationwide. Active promotion is being carried out both online and offline.
From June, notifications will be sent via messaging alerts if a contract has not been reported, even if only a fixed date was obtained at the administrative welfare center.
Both landlords and tenants are required to report lease contracts. If a signed contract is submitted, a report by one party is recognized as a joint report.
Reports can be submitted by visiting a local administrative welfare center or through the real estate transaction management system on PC and mobile.
Kim Heon-jeong, head of the Housing Policy Division of the Ministry of Land, said, “This measure is an unavoidable decision for the establishment of the housing lease contract reporting system,” and promised, “We will enhance reporting convenience and reduce the number of those subject to fines while strengthening tenant rights protection through promotion.”