A Suggest for Reforms on Residential Tenant Law

This paper aims to identify the fundamental institutional reforms necessary for Korea’s residential tenant protection law and transactions. Main objectives for reforming Korea’s residential lease legislation are summarized as: ① stabilization of lease and ② assurance of the return of lease deposits. With respect to the assurance of lease deposit returns, recent issues such as Jeonse fraud and ‘negative equity’ housing underscore the urgent need for legislative supplementation. This article examines the most pressing problems and possible solutions for effectively securing the return of lease deposits. In particular, the paper addresses: ① so-called “next day” provision, ② improving the legal framework for guarantee insurance and the obligation to provide credit information, and ③ the dispute resolution system to allow for expedited resolution and enforceable execution in lease disputes. The rationalization of residential lease transactions cannot be achieved by amending the Residential Lease Protection Act. In this context, the article proposes: ① the duty of care owed by licensed real estate agents and the activation of exclusive agency and multiple listing service (MLS) systems; and ② the mandatory use of written offers in lease contracts and the obligation to return the deposit in advance upon lease termination. This article presents draft amendments to the Residential Lease Protection Act and the Licensed Real Estate Agents Act.