Today's Invest Guide : Cautions Relating to Lease

Types of Real Estate Lease

- Deposit and monthly rent : widely used type for business and residence. Deposit is refundable upon expiry and a rent is relatively cheap.

- Deposit Basis Lease (Jeonse) : specific to Korea and involves depositing a large sum of money, which is generally about the half of the house value (refundable) and trusted to a lessor for the lease period

Matters to be Considered before Leasing

a Real Estate for Business


- Check how many free parking vehicles and paid parking vehicles are available and whether visitor's vehicles are possible to park.

- Check whether central or individual cooling·heating systems are available and are included in the management expense.

- Check whether mutual signboards are designated and legally allowed.

- In case there is a premium or goodwill, it is cautious as it may not be legally protected.

- Check whether rent and management expenses have been

continuously increased.

Matters to be Considered before Leasing

a Real Estate for Business


- In case of selecting a real estate broker, please check whether the broker is

the global public broker, who speaks foreign language and is selected by

Seoul city, and is legally registered.

- Foreign residents might need a lot of help during their stay due to the

language barrier. It is recommended to check whether after-service from the broker is

provided during the period of stay.

Lease Agreement

Required Documents


Lessee : foreigner registration certificate (in case of individual transaction)

Lessor : registration certificate, ID card, seal

Broker : original registry (housing land/house), land ledger, building ledger,

land utilization plan confirmation letter, lease agreement, brokerage

target confirmation & description letter, and copy of certified real estate registration

Lease Agreement



Be careful not to enter directly into a contract between a lessor and a sublessee.

A relocation company is not a real estate broker registered in

Korea. To avoid possible disputes, it is recommended to enter into a contract with

a registered broker to secure the transactional safety.

In case of the renewal of an agreement, such

renewal conditions shall be made in a written form and notified to the lessor.

It is recommended to obtain the necessary advice on any unclear part from


Lease Agreement

Cautions in making a lease agreement


Check whether a lessor is the right owner by confirming their actual resident (corporate) registration number is the same as the one stated in the registration certificate and check the real estate register whether there is any excessive loan.

Before paying the balance, check the registration certificate once again.

Confirm monthly maintenance fees and security maintenance fees.

If a lessor allows establishment of the right to collateral security or leasehold rights, make sure it is written as special conditions of the contract.