민간임대주택에 관한 특별법

Article 1Purpose

The purpose of this Act is to promote the supply of private rental housing and to ensure housing stability for people, by prescribing matters necessary to construct, supply, and manage private rental housing and to foster private housing rental business entities.

Article 2Definitions

The terms used in this Act are defined as follows: <Amended on Jan. 19, 2016; Jan. 17, 2017; Jan. 16, 2018; Mar. 13, 2018; Aug. 18, 2020; Mar. 16, 2021; Dec. 3, 2024>1. The term "private rental housing" means housing supplied for rent [including quasi-housing prescribed by Presidential Decree, such as an officetel and housing constructed on leasehold land (hereinafter referred to as "quasi-housing"), and housing, only part of which prescribed by Presidential Decree is rented; hereinafter the same shall apply] which is registered by a rental business entity under Article 5; and shall be classified into privately constructed rental housing and buy-to-rent private housing;

2. The term "privately constructed rental housing" means private rental housing that falls within either of the following two categories:a. Housing constructed by a rental business entity for renting;b. Housing rented out because it remains unsold by the time for inspection for use, of those houses constructed by a housing construction project operator registered under Article 4 of the Housing Act with approval of a project plan pursuant to Article 15 of that Act;

3. The term "buy-to-rent private housing" means private rental housing leased out by a rental business entity after acquisition of ownership thereof by purchase, etc.;

4. The term "publicly-funded private rental housing" means any of the following private rental housing that is acquired by a rental business entity for renting it for at least 10 years and is rented with restrictions on rents, eligibility of lessees, etc.:a. Private rental housing constructed or bought with investment from the Housing and Urban Fund (hereinafter referred to as the "Housing and Urban Fund") under the Housing and Urban Fund Act;b. Public housing site under subparagraph 24 of Article 2 of the Housing Act or land supplied by free contract or the like under Article 18(2) of this Act; private rental housing constructed after purchasing or renting previous real estate (hereinafter referred to as "previous real estate") under subparagraph 6 of Article 2 of the Special Act on the Construction and Development of Innovation Cities;c. Private rental housing constructed after being granted relaxed floor area ratios under subparagraph 2 of Article 21 of this Act or after being granted relaxed floor area ratios as a result of a change in special-purpose areas under Article 30 of the National Land Planning and Utilization Act;d. Private rental housing constructed in a district for promoting publicly-funded private rental housing designated under Article 22;e. Other private rental housing constructed or purchased after receiving public support prescribed by Decree of the Ministry of Land, Infrastructure and Transport;

5. The term "long-term private rental housing" means private rental housing [excluding buy-to-rent private housing where the rental property is an apartment (referring to one other than urban residential housing defined in subparagraph 20 of Article 2 of the Housing Act)] other than publicly-funded private rental housing, acquired by a rental business entity for the purpose of leasing them out for at least 10 years;

6. Deleted; <Aug. 18, 2020>6-2. The term "short-term private rental housing" means private rental housing [excluding apartments (referring to one other than urban residential housing under subparagraph 20 of Article 2 of the Housing Act)] acquired and rented by a rental business entity for the purpose of renting for at least 6 years;

7. The term "rental business entity" means a person other than a public housing business entity defined in Article 4(1) of the Special Act on Public Housing (hereinafter referred to as "public housing business entity") that is registered under Article 5 to engage in the business of acquiring and renting at least one unit of private rental housing;

8. Deleted; <Jan. 16, 2018>9. Deleted; <Jan. 16, 2018>10. The term "housing rental management business" means a business managing leasing housing under outsourcing from the owner, which falls within either of the following two categories:a. In-house managed housing rental management business: A type of business subletting a house under one’s own liability after renting it from the owner thereof;b. Entrusted-management housing rental management business: A type of business imposing and collecting rents, maintaining and managing facilities, etc. in return for fees received from the housing owner;

11. The term "housing rental management business entity" means a person registered under Article 7(1) to run a housing rental management business;

12. The term "district for promoting publicly-funded private rental housing" means a district designated under Article 22 to promote the supply of publicly-funded private rental housing;

13. The term "station’s sphere of influence, etc." means an area located within one kilometer from any of the following. In such cases, the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor, or a Special Self-Governing Province Governor (hereinafter referred to as the "Mayor/Do Governor") may reduce or increase the distance by at least 50 percent by ordinance of the local government concerned:a. Railroad stations constructed and operated under the Act on Railroad Construction and Railroad Facilities Management, the Framework Act on Railroad Industry Development, and the Urban Railroad Act;b. Transit facilities under subparagraph 3c of Article 2 of the Special Act on the Construction and Operation of Bus Rapid Transit System;c. An industrial complex under subparagraph 8 of Article 2 of the Industrial Sites and Development Act;d. Population-concentrating facilities under subparagraph 3 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act, which are prescribed by Presidential Decree;e. Other facilities prescribed by ordinance of a relevant local government;

14. The term "those entitled to residential support" means those who need residential support such as the youth and newlyweds, who meet requirements prescribed by Decree of the Ministry of Land, Infrastructure and Transport;

15. The term "mixed-support facility" means facilities supporting economic activities and everyday lives of lessees, etc. living in publicly-funded private rental housing, which are prescribed by Presidential Decree.

Article 3Relationship to other statutes

Except as otherwise provided in this Act, the Housing Act, the Building Act, the Multi-Family Housing Management Act, and the Housing Lease Protection Act, shall apply to the construction, supply, management, etc. of private rental housing. <Amended on Aug. 28, 2015>

Article 4Support by the State

(1) The State and a local government may prioritize providing the Housing and Urban Fund and other funds for the following purposes; and may reduce or exempt taxes as prescribed by the Act on Restriction on Special Cases concerning Taxation, the Act on Restriction on Special Cases concerning Local Taxation, and municipal ordinances: <Amended on Jan. 16, 2018>1. To increase the supply of private rental housing;

2. To improve and enhance quality of private rental housing;

3. To encourage participation of non-profit organizations, such as social enterprises and social cooperatives, in supply of private rental housing;

4. To develop housing rental management business.

(2) The State and a local government may provide necessary administrative support to rental business entities and lessees to promote shared private rental housing (referring to private rental housing in which at least two unrelated lessees reside, sharing at least one space such as the living room or kitchen based on a rental agreement signed by each lessee). <Added on Jan. 16, 2018>

Article 5Registration of rental business entities

(1) A person who intends to rent housing may apply for registration thereof with a Special Self-Governing City Mayor, a Special Self-Governing Province Governor, or the head of a Si/Gun/Gu (in cases of the head of a Gu, referring to the head of an autonomous Gu; hereinafter referred to as the "head of a Si/Gun/Gu"); provided, a foreigner may apply for registration only when he or she stays in the Republic of Korea and holds the status of stay prescribed by Presidential Decree in consideration of the scope of activities by type of status of stay under Article 10 of the Immigration Control Act. <Amended on Mar. 28, 2023>(2) Registration under paragraph (1) shall be classified as follows: <Amended on Jan. 16, 2018; Aug. 18, 2020; Dec. 3, 2024>1. Deleted; <Jan. 16, 2018>2. Privately constructed rental housing and buy-to-rent private housing;

3. Publicly-funded private rental housing, long-term private rental housing, and short-term private rental housing;

(3) Each person registered under paragraph (1) who intends to change any matter registered shall submit a report thereon to the head of a Si/Gun/Gu; provided, he or she need not report minor matters prescribed by Decree of the Ministry of Land, Infrastructure and Transport, such as expansion of the area of a rental house by an extent not exceeding 10 percent of the area. <Amended on Jun. 9, 2020>(4) Upon receiving a report under paragraph (3), the head of a Si/Gun/Gu shall notify the reporting person of whether the report is accepted within seven days of receipt. <Added on Jun. 9, 2020>(5) If the head of a Si/Gun/Gu fails to notify the person who has filed a report of whether the report is accepted within the period provided in paragraph (4) or of the extension of a processing period under statutes and regulations relating to the processing of civil petitions, the relevant report shall be deemed to have been filed on the day immediately following the end of the processing period (referring to the corresponding processing period if the processing period has been extended or re-extended under statutes and regulations relating to the processing of civil petitions). <Amended on Aug. 18, 2020>(6) Matters necessary for the criteria, procedures, etc. for registration and reporting under paragraphs (1) through (5) shall be prescribed by Presidential Decree. <Amended on Jun. 9, 2020>(7) Upon receipt of the application for registration under paragraph (1), the head of a Si/Gun/Gu may reject the application in any of the following cases: <Added on Aug. 18, 2020; Mar. 28, 2023; Jun. 1, 2023>1. Where it is deemed to be substantially impracticable to purchase a guarantee for rental security deposit under Article 49 when taking into account the credit rating of the applicant, the debt ratio of the rental housing covered by the application (where there is no rental agreement at the time of registration, the debt ratio shall be calculated by including the intended ceiling amount of rental security deposit under a rental agreement to be entered after registration, which shall be notified by the person filing for registration) and other factors;

2. Where it is deemed that the relevant housing is likely to be destroyed during the mandatory rental period referred to in Article 43 due to an improvement project defined in subparagraph 2 of Article 2 of the Act on the Improvement of Urban Areas and Residential Environments or a small-scale housing improvement project defined in Article 2(1)3 of the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement;

3. Cases prescribed by Presidential Decree where it is substantially impracticable to fulfill the obligation to return the security deposit to the lessee, taking into account the period, amount, etc. of the relevant applicant's delinquency in national taxes or local taxes.

Article 5-2Supplementary registration of registered private rental housing

(1) A rental business entity shall file a supplementary registration for the ownership register, stating that the private rental house registered under Article 5 is a property required to abide by the mandatory rental period under Article 43 and the standards for increasing rent under Article 44.

(2) A supplementary registration under paragraph (1) shall be filed without delay after the registration of the rental business entity; provided, where the registration of preservation of ownership is filed after the registration as a rental business entity, the supplementary registration shall be filed simultaneously with the registration of preservation of ownership.

(3) Matters necessary for, among other things, the details of statement to be included in a supplementary registration under paragraphs (1) and (2) and cancellation shall be prescribed by Presidential Decree.[This Article Added on Jun. 9, 2020][Previous Article 5-2 moved to Article 5-3 <Jun. 9, 2020>]

Article 5-3Report on recruitment of members of housing cooperative and open invitation

(1) Where a cooperative or social cooperative under the Framework Act on Cooperatives established for the purpose of supplying houses in such number, not less than 30 including the number of privately constructed rental houses supplied to members, as prescribed by Presidential Decree (hereinafter referred to as "private rental cooperative") or a promoter thereof intends to recruit members for the cooperative, he, she or it shall report to the head of the competent Si/Gun/Gu having jurisdiction over the construction site for the private rental housing and recruit members by means of public invitation.

(2) Notwithstanding paragraph (1), where any vacancy needs to be filled due to a death, disqualification, withdrawal of membership, etc. of a housing cooperatives' member or where an insufficient number of members have been recruited after an open invitation, members of the housing cooperative may be recruited on a first-come, first-served basis, without filing a report.

(3) The head of a Si/Gun/Gu in receipt of a report under paragraph (1) shall accept the report where the reported matters are in compliance with this Act and notify the reporting person of such acceptance.

(4) In any of the following cases, the head of a Si/Gun/Gu shall not accept a report on recruitment of members of a housing cooperative:

1. Where the housing cooperative has failed to secure the title to use land that constitutes at least 80 percent of the construction site for the relevant private rental housing;

2. Where the construction site overlaps, in whole or in part, with the project site already reported;

3. Where no housing may be built by the private rental cooperative on the relevant construction site for the private rental housing, in accordance with an urban or Gun plan already formulated or to be formulated, a land use plan already formulated, or the standards for construction, restriction on construction, etc. under this Act or related statutes or regulations;

4. Where it is intended to recruit members who are not entitled to the supply of the relevant private rental housing;

5. Where any reported matter is different from the fact.

(5) Matters necessary for filing a report on recruitment of members of a housing cooperative, such as the timing of recruitment and methods, procedures, etc. of recruitment under paragraph (1), open invitations, disclosure of information on persons who have filed an application to join a private rental cooperative (hereinafter referred to as "applicants for cooperative membership"), etc. shall be prescribed by Decree of the Ministry of Land, Infrastructure and Transport.[This Article Added on Nov. 26, 2019][Moved from Article 5-2; Previous Article 5-3 moved to Article 5-4 <Jun. 9, 2020>]

Article 5-4Obligation to provide explanation when recruiting members of housing cooperatives

(1) When entering into a membership agreement of a private rental cooperative (including agreements for establishing a private rental cooperative; hereinafter the same shall apply), a private rental cooperative that recruits members after filing a report on recruiting members of the cooperative pursuant to Article 5-3 and promoters thereof (hereinafter referred to as "recruiting entity") shall explain the following matters to the applicant for the cooperative membership and obtain confirmation: <Amended on Jun. 9, 2020>1. Matters concerning the rights and duties of cooperative members;

2. Location and size of the construction site for the relevant private rental housing, and the status of securing the right to use, or ownership of, the construction site3. Matters regarding funds plan of the private rental housing cooperative;

4. Matters regarding the eligibility of members to be supplied with the private rental housing;

5. Matters regarding the procedures, etc. for withdrawal or expulsion from a private rental cooperative or for returning money paid, such as contributions;

6. Matters regarding the withdrawal of subscription, deposit of money, refund of up-front fees, etc. under Article 5-5;

7. Other matters necessary for promoting projects of private rental cooperatives and operation thereof, as prescribed by Presidential Decree.

(2) Matters regarding methods and procedures of explanation and confirmation under paragraph (1) and the like shall be prescribed by Presidential Decree.[This Article Added on Nov. 26, 2019][Moved from Article 5-3; previous Article 5-4 moved to Article 5-5 <Jun. 9, 2020>]

Article 5-5Withdrawal of subscription and refund of up-front fees

(1) Where any applicant for cooperative membership enters into a membership agreement of a private rental cooperative, the recruiting entity shall require the applicant to deposit all of the money payable (hereinafter referred to as "up-front fees, etc.") with an institution prescribed by Presidential Decree (hereinafter referred to as "depository institution").

(2) An applicant for cooperative membership may withdraw his or her subscription for membership of a private rental cooperative within 30 days from the date of concluding the agreement on membership of the private rental cooperative.

(3) When an applicant for membership of a cooperative withdraws a subscription in writing, such withdrawal shall become effective on the date the document expressing his or her intention to withdraw the subscription is sent.

(4) Where an applicant for cooperative membership withdraws the subscription, the recruiting entity shall request the head of a depository institution to refund the up-front fee, etc. within seven days from the date the intention of withdrawal of the subscription arrives.

(5) Upon receipt of a request for the refund of up-front fees, etc. under paragraph (4), the head of the depository institution shall return up-front fees, etc. to an applicant for cooperative membership within 10 days from the date of such request.

(6) Where an applicant for cooperative membership withdraws the subscription within the period specified in paragraph (2), the recruiting entity shall not request the applicant to pay a penalty or compensation for damage on the ground of the withdrawal.

(7) Matters necessary for, among other things, the management, payment, and return of up-front fees, etc. under paragraph (1) shall be prescribed by Presidential Decree.[This Article Added on Nov. 26, 2019][Moved from Article 5-4 <Jun. 9, 2020>]

Article 5-6Grounds for disqualification of rental business entities

None of the following persons shall be registered as a rental business entity under Article 5; and the same shall also apply to a corporation if the corporation has any of the following persons as an executive officer: <Amended on Sep. 14, 2021; Mar. 28, 2023; Jun. 1, 2023; Dec. 3, 2024>1. Minors;

2. A person for whom 2 years have not passed since the cancellation of his or her registration in its entirety under Article 6(1)1, 4, 7 through 10, 12, 12-2, 13, 14, and 16;

3. A person for whom three years have not passed since his or her imprisonment without labor or heavier punishment declared by a court was completely executed (including where it is deemed to have been completely executed) or exempted for committing a crime specified in Article 347 of the Criminal Act in relation to the fulfillment of the obligation to return the security deposit to the lessee;

4. A person who is under suspension of the execution of the punishment for committing a crime specified in subparagraph 3.[This Article Added on Aug. 18, 2020]

Article 5-7Restrictions on additional registration of rental housing by rental business entities

None of persons for whom two years have not passed since the partial cancellation of registration of a rental business entity under Article 6(1)1, 4, 7 through 10, 12, 12-2, 13, 14, and 16 shall file for registration of any change or addition of rental housing (including any change or addition of a house excluded from the rental housing due to partial cancellation), other than the rental housing already registered, through the report on changes in registered matters under the main sentence of Article 5(3). <Amended on Sep. 14, 2021; Mar. 28, 2023; Jun. 1, 2023; Dec. 3, 2024>[This Article Added on Aug. 18, 2020]

Article 6Cancellation of registration of rental business entities

(1) Where a rental business entity falls under any of the following cases, the head of a Si/Gun/Gu may fully or partially cancel the relevant registration; provided, in cases falling under subparagraph 1, the registration shall be fully or partially canceled: <Amended on Jun. 9, 2020; Aug. 18, 2020; Mar. 16, 2021; Sep. 14, 2021; Mar. 28, 2023; Dec. 3, 2024>1. Where he or she has filed for registration by fraud or other improper means;

2. Where he or she fails to acquire private rental housing within the period prescribed by Presidential Decree after being registered under Article 5;

3. Where he or she applies for cancellation of registration before three months pass from the date of registration (limited to cases where the lessee consents if there is a rental agreement entered after the registration as a rental house) under Article 5(1) or after the expiration of the mandatory rental period referred to in Article 43;

4. Where he or she fails to meet the criteria for registration referred to in Article 5(6);

5. Where he or she transfers private rental housing under Article 43(2) or (6);

6. Where he or she transfers private rental housing under Article 43(4);

7. Where he or she violates any of the terms of rental provided for in Article 44;

8. Where he or she revokes, terminates, or refuses to renew, a rental agreement in violation of Article 45;

9. Where he or she violates any restriction on uses of quasi-housing specified in Article 50;

10. Where he or she has provided explanation or information under Article 48(1)2 by fraud or other improper means;

11. Notwithstanding Article 43, the previous Special Act on Private Rental Housing (referring to the Act before it is partially amended by the Special Act on Private Rental Housing (Act No. 17482); hereafter in this Article, the same shall apply) shall apply where a rental business entity files an application for cancellation of registration within the mandatory rental period with respect to a buy-to-rent private house where the rental property is an apartment (referring to one other than urban residential housing defined in subparagraph 20 of Article 2 of the Housing Act), from among long-term private rental housing defined in subparagraph 5 of Article 2, or a short-term private rental house defined in subparagraph 6 of Article 2 (limited to where the lessee consents if a rental agreement exists at the time of the application);

12. Where it is prescribed by Presidential Decree that the loss of the lessee is clearly incurred by the rental business entity's delay in returning the deposit;12-2. Where a company providing guarantee fails to fully repay a guarantee obligation because the rental business entity fails to repay the deposit to the lessee, even after 6 months have elapsed since the company providing such guarantee performed the guarantee obligation by subrogation at least twice, and the company providing such guarantee has notified the head of a Si/Gun/Gu thereof in any of the following cases:a. Where he or she has no record of discretionary repayment for 1 year after the performance of the guarantee obligation by subrogation;b. Where the total amount of unrecovered claims of the company providing guarantee is at least 200 million won;

13. Where the head of a Si/Gun/Gu requires that a person who fails to file a report on a rental agreement or a report on any change pursuant to Article 46 file a report under Article 61(1), but he or she files a false report or does not comply therewith at least three times;

14. Cases prescribed by Presidential Decree where a rental business entity fails to purchase a guarantee for rental security deposit under Article 49(1);

15. Cases prescribed by Presidential Decree where it is clearly expected that his or her delinquency in national taxes or local taxes would cause damage to the lessee in relation to the fulfillment of the obligation to return the security deposit;

16. Where he or she was sentenced to imprisonment without labor or heavier punishment (including suspension of the execution) for committing a crime specified in Article 347 of the Criminal Act in relation to the fulfillment of the obligation to return security deposit to the lessee and such sentence has become final;

17. Other cases prescribed by Presidential Decree, in which it is deemed impracticable to continue to lease private rental housing.

(2) In canceling registration under paragraph (1), the head of a Si/Gun/Gu shall hold a hearing; provided, this shall not apply to cases falling under paragraph (1)3, 5 or 6.

(3) Where the head of a Si/Gun/Gu cancels registration under paragraph (1), he or she shall publicly announce necessary matters, such as the name of the relevant rental business entity and grounds for cancellation.

(4) Upon filing an application for cancellation of registration under paragraph (1)3 or receipt of notice on holding of a hearing under paragraph (2), the rental business entity shall notify each lessee of such fact within seven days.

(5) Registration shall be canceled on the date of expiry of the mandatory rental period with respect to a buy-to-rent private house where the rental property is an apartment (referring to one other than urban residential housing defined in subparagraph 20 of Article 2 of the Housing Act) from among long-term private rental housing defined in subparagraph 5 of Article 2 of the previous Special Act on Private Rental Housing or a short-term private rental house defined in subparagraph 6 of Article 2. <Amended on Aug. 18, 2020; Mar. 16, 2021>(6) Where registration is canceled under the subparagraphs of paragraph (1) (excluding cases where a private rental house is transferred to another rental business entity under Article 43(2) among cases referred to in subparagraph 5) and paragraph (5), the rental business entity (referring to the transferee where the relevant house is transferred) shall be deemed the rental business entity under this Act in the context of the relationship with the lessee until the existing rental agreement expires. <Amended on Aug. 18, 2020>

Article 7Registration of housing rental management business

(1) Each person who intends to run a housing rental management business may apply for registration thereof with the head of the competent Si/Gun/Gu; provided, a person who intends to run a housing rental management business in a scale of not less than the scale prescribed by Presidential Decree within the extent of at least 100 housing units, shall register its business [excluding the State, local governments, public institutions defined in Article 4(1) of the Act on the Management of Public Institutions (hereinafter referred to as "public institutions"), and local government-invested public corporations incorporated under Article 49(1) of the Local Public Enterprises Act (hereinafter referred to as "local government-invested public corporations")].

(2) Registration under paragraph (1) shall be made by classifying between self-management type housing rental management business and entrusted-management type housing rental management business. In such cases, registration of self-management type housing rental management business shall be deemed to include registration of entrusted-management type housing rental management business.

(3) If a person registered under paragraph (1) intends to change or cancel any registered matter, he or she shall submit a report thereon to the head of the competent Si/Gun/Gu; provided, he or she need not report minor matters prescribed by Decree of the Ministry of Land, Infrastructure and Transport, such as capital increase.

(4) The head of a Si/Gun/Gu shall notify the reporting person of whether the report is accepted within five days of receiving the report under paragraph (3). <Added on Jun. 9, 2020>(5) Where the head of a Si/Gun/Gu fails to notify the reporting person of receipt of a report or of an extension of the processing period under statutes or regulations related to treatment of civil petitions within a period specified in paragraph (4), the report shall be deemed received on the day following the expiry date of such period (referring to the relevant processing period if the processing period is extended or re-extended pursuant to statutes or regulations related to treatment of civil petitions). <Added on Jun. 9, 2020>(6) Matters necessary for, among other things, procedures for registration and reporting under paragraphs (1) through (5) shall be prescribed by Presidential Decree. <Amended on Jun. 9, 2020>

Article 8Criteria for registration of housing rental management business

A person who intends to register its business under Article 7 shall meet the following requirements:

1. He or she shall have paid-in capital (referring to the assessed value of assets, in cases of an unincorporated entity) of at least 100 million won, which shall exceed the amount prescribed by Presidential Decree;

2. He or she shall have professional manpower prescribed by Presidential Decree, such as a housing manager;

3. He or she shall have facilities prescribed by Presidential Decree, such as an office.

Article 9Disqualification from conducting housing rental management business

None of the following persons shall be eligible to have a housing rental management business registered. The same shall also apply to a corporation which has any of the following persons as its executive officer: <Amended on Jan. 19, 2016>1. A person declared bankrupt by the court, and not yet reinstated;

2. A person under adult guardianship or a person under limited guardianship;

3. A person for whom two years have not passed since cancellation of his or her housing rental management business under Article 10. In such cases, if the person whose registration is canceled is a corporation, a person who has committed an offense resulting in the cancellation and the representative thereof shall also be included;

4. A person for whom three years have not passed from the date the execution of his or her imprisonment without labor or heavier punishment for reason of violating this Act, the Housing Act, the Special Act on Public Housing, or the Multi-Family Housing Management Act (including where such execution is deemed completed) was completed or exempted;

5. A person who is subject to a suspended sentence of punishment declared by the court for reason of violating, this Act, the Housing Act, the Special Act on Public Housing, or the Multi-Family Housing Management Act.

Article 10Cancellation of registration of housing rental management business

(1) Where a housing rental management business entity falls under any of the following cases, the head of the competent Si/Gun/Gu may cancel registration of the relevant business or partially or entirely suspend the business for a prescribed period not exceeding one year; provided, in cases falling under paragraph 1, 2 or 6, the registration shall be canceled:

1. Where he or she is registered by fraud or other improper means;

2. Where he or she carries on the housing rental management business during the period of business suspension, or a person who is subject to a disposition to suspend business on at least two occasions during the recent three years and the total period of such dispositions exceeds 12 months;

3. Where he or she causes damage to property of a lessor or lessee by improperly managing housing for rent by intention or gross negligence;

4. Where he or she has no record of outsourcing contract for at least one year from the day following the expiration date of the last outsourcing contract without just cause;

5. Where he or she fails to meet the criteria for registration referred to in Article 8; provided, this shall not apply where prescribed by Presidential Decree, such as temporary failure to meet the criteria for registration;

6. Where he or she allows a third person to run the business or affairs prescribed by this Act by using his or her name or trade name or lends his or her registration certificate, in violation of Article 16(1);

7. Where he or she refuses, interferes with, or evades to give reports or data or to receive inspections under Article 61, or gives false reports.

(2) Where a housing rental management business entity falls under any of paragraph (1)3 through 5 and 7, the head of the competent Si/Gun/Gu may impose a penalty surcharge not exceeding 10 million won in lieu of business suspension.

(3) Where a housing rental management business entity fails to pay a penalty surcharge imposed under paragraph (2) by the deadline, the head of the competent Si/Gun/Gu shall collect it in accordance with the Act on the Collection of Local Administrative Penalty Charges. <Amended on Mar. 24, 2020>(4) Criteria for cancellation of registration and disposition to suspend business under paragraph (1), and necessary matters relating to the amount, etc. of penalty surcharges based on the types and severity of violations subject to the imposition of penalty surcharge under paragraph (2) shall be prescribed by Presidential Decree.

Article 11Scope of business of housing rental management business entities

(1) A housing rental management business entity shall perform the following affairs regarding housing for rent:

1. Conclusion, revocation, termination, renewal, rejection of renewal, etc. of a rental agreement;

2. Charging, collection, etc. of rents;

3. Taking occupancy, surrender, vacating, etc. of a lessee (excluding brokerage business defined in subparagraph 3 of Article 2 of the Licensed Real Estate Agents Act).

(2) A housing rental management business entity may perform the following incidental affairs regarding housing for rent:

1. Maintenance, repair, and improvement of facilities, and other affairs related to housing management;

2. Other affairs prescribed by Presidential Decree as necessary for the residential convenience of lessees.

Article 12Reporting on current status of housing rental management business entities

(1) A housing rental management business entity shall file a quarterly report on the information prescribed by Presidential Decree, such as paid-in capital, professional manpower, number of units he or she manages, etc., with the head of the competent Si/Gun/Gu within the month following the end of the relevant quarter. In such cases, the head of the Si/Gun/Gu in receipt of such report shall report it to the Minister of Land, Infrastructure and Transport.

(2) Matters necessary for filing reports, etc. under paragraph (1) shall be prescribed by Presidential Decree.

(3) The Minister of Land, Infrastructure and Transport may disclose the following information as prescribed by Presidential Decree, such as the rental housing information system referred to in Article 60(1):

1. Information reported under the latter part of paragraph (1);

2. Information reported under Article 61.

Article 13Outsourcing contracts

(1) A housing rental management business entity to whom the affairs listed in Article 11 are outsourced, shall prepare an outsourcing contract, deliver it to the relevant housing owner, and retain a copy thereof.

(2) An outsourcing contract under paragraph (1) shall include matters prescribed by Presidential Decree, such as the contract period and obligations of the housing rental management business entity.

(3) The Minister of Land, Infrastructure and Transport may prepare, disseminate, and make available a standard form outsourcing contract necessary for the conclusion of an outsourcing contract under paragraph (1).

Article 14Purchase of guarantee instruments

(1) A housing rental management business entity carrying on the in-house management type housing rental management business shall purchase a guarantee instrument to protect the rights of lessors and lessees.

(2) Types of guarantee instruments referred to in paragraph (1) and matters necessary for the procedures to purchase them, etc. shall be prescribed by Presidential Decree.

Article 15Obligations of In-House Management Type Housing Rental Management Business Entities

Where a lessor who is a rental business entity outsources the rental management to an in-house management type housing rental management business entity, the housing rental management business entity shall perform the obligations of a rental business entity under this Act within the scope outsourced to him or her. In such cases, a housing rental management business entity shall be deemed a rental business entity for the purpose of Chapter VII. <Amended on Jun. 9, 2020>

Article 16Prohibition of lending of registration certificates

(1) No housing rental management business entity shall allow any third person to perform the affairs prescribed by this Act by using his or her name or trade name or lend his or her registration certificate.

(2) No person, other than a housing rental management business entity, shall use the name of housing rental management business or similar.

Article 17Construction of private rental housing

The construction of private civil housing shall be governed by the Housing Act or the Building Act. In such cases, where any related Act provides for application mutatis mutandis with regard to the approval of a project plan under Article 15 of the Housing Act, granting of building permission under Article 11 of the Building Act, etc., such Act shall also be complied with. <Amended on Jan. 19, 2016>

Article 18Preferred supply of land

(1) Where the State, a local government, a public institution, or a local government-invested public corporation supplies (referring to sale or lease; hereafter the same shall apply in this Article) land it owns or has developed, it may preferentially supply such land to a rental business entity who intends to construct private rental housing, notwithstanding Article 30(1) of the Housing Act. <Amended on Jan. 19, 2016>(2) Where the State, a local government, a public institution, or a local government-invested public corporation supplies land for construction of publicly-funded private rental housing, or where a public institution [including a purchasing public institution defined in Article 43(3) of that Act (hereinafter referred to as "purchasing public institution")] holding previous real estate sells the previous real estate for the construction of publicly-funded private rental housing, the land may be supplied in accordance with the methods and conditions prescribed by Presidential Decree, such as ballot, restriction on eligibility, and free contract, notwithstanding the Housing Site Development Promotion Act, the Special Act on the Construction and Development of Innovation Cities, and other related statutes or regulations. <Amended on Dec. 26, 2017; Jan. 16, 2018>(3) The State, a local government, the Korea Land and Housing Corporation, or a local government-invested public corporation shall preferentially supply land it has developed to a rental business entity [including an employer registered as a rental business entity (limited to corporations) who intends to construct private rental housing for rent to its employees] in a ratio of not less than that prescribed by Presidential Decree, which shall be at least one percent of such land; provided, the relevant land shall be at least the size prescribed by Presidential Decree and include sites for at least two multi-family housing complexes. <Amended on Jan. 17, 2017>(4) A person supplied with land and previous real estate under paragraphs (1) through (3) (hereafter referred to as "land, etc." in this Article) shall construct private rental housing within the period prescribed by Presidential Decree, which shall not exceed four years from the date on which he or she is supplied with the land, etc.

(5) Where no private rental housing is constructed notwithstanding paragraph (4), a person who has supplied land, etc. may repurchase such land, etc. under the criteria and procedures prescribed by Presidential Decree or revoke or terminate the relevant rental agreement.

(6) Where a project undertaker defined in Article 54 of the Housing Act supplies housing, it may preferentially supply all the houses (excluding houses subject to application of the upper limit system for selling prices referred to in Article 57 of that Act) to rental business entities seeking to operate the housing as publicly-funded private rental housing or long-term private rental housing, notwithstanding paragraph (1) of that Article. <Amended on Jan. 19, 2016; Jan. 16, 2018>

Article 19Preferential installation of arterial facilities

A person who installs arterial facilities pursuant to Article 28 of the Housing Act shall install such arterial facilities required for a construction project of private rental housing or a housing site development project for the construction of private rental housing in preference to other housing construction projects or housing site development projects. <Amended on Jan. 19, 2016>

Article 20Special cases concerning the Act on Acquisition of and Compensation for Land for Public Works Projects

(1) Where a rental business entity has purchased at least 80 percent of land (including where the consent of owners on the purchase of land has been obtained) for a project to construct private rental housing with at least 100 units exceeding the number of units prescribed by Presidential Decree in an area not exceeding 85 square meters for exclusive use, and significant difficulty will be caused in implementing such project unless he or she acquires the remainder of the land, he or she may request the Mayor/Do Governor to grant a designation under subparagraph 5 of Article 4 of the Act on Acquisition of and Compensation for Land for Public Works Projects. In such cases, necessary matters relating to the procedures for such request, documents to be submitted, etc. shall be prescribed by Presidential Decree. <Amended on Jan. 16, 2018>(2) Where a rental business entity who has obtained designation pursuant to paragraph (1) obtains approval of a project plan pursuant to Article 15 of the Housing Act, he or she shall be deemed to have obtained authorization for the project under Article 20(1) of the Act on Acquisition of and Compensation for Land for Public Works Projects; provided, notwithstanding Articles 23(1) and 28(1) of the Act on Acquisition of and Compensation for Land for Public Works Projects, an application for adjudication may be filed within the period for implementation of the housing construction project, the project plan for which has been approved. <Amended on Jan. 19, 2016>

Article 21Special cases concerning the National Land Planning and Utilization Act

Where a rental business entity applies for approval of a project plan under Article 15 of the Housing Act or for granting of building permission under Article 11 of the Building Act, to construct publicly-funded private rental housing, the authority to grant approval of project plans under Article 15 of the Housing Act or the authority to grant permission under Article 11 of the Building Act (hereinafter referred to as "approval authority, etc.") may apply the following lenient standards, notwithstanding relevant statutes or regulations; provided, where publicly-funded private rental housing and other facilities are constructed as one and same building, the above provision shall apply only where the ratio of floor area of the publicly-funded private rental housing to the total floor area exceeds the ratio prescribed by Presidential Decree by no less than 50 percent: <Amended on Jan. 19, 2016; Jan. 16, 2018>1. Notwithstanding the building-to-land ratios prescribed by municipal ordinances pursuant to Article 77 of the National Land Planning and Utilization Act, the building-to-land ratio shall be made lenient to the upper limit prescribed by that Article and relevant statutes or regulations;

2. Notwithstanding the floor area ratios determined according to a district-unit planning under Article 52 of the National Land Planning and Utilization Act and prescribed by municipal ordinances under Article 78 of that Act, the floor area ratio shall be relaxed to the upper limit prescribed by that Article and relevant statutes or regulations;

3. Restriction on the number of floors of a building under Article 2(2) of the Building Act shall be relaxed as prescribed by Presidential Decree.

Article 21-2Supply of houses constructed based on relaxed floor area ratios

(1) Where approval authority, etc. applies to the floor area ratio prescribed by ordinance of a relevant local government under the National Land Planning and Utilization Act or the floor area ratio under subparagraph 2 of Article 21 (hereinafter referred to as "relaxed floor area ratio"), which is more relaxed than one prescribed by a district unit plan (hereinafter referred to as "base floor area ratio") regarding a project for building publicly-funded private rental housing with at least 30 units, the number of units prescribed by Presidential Decree, at the time of approval of a project plan or building permission granted to a rental business entity, the approval authority, etc. may issue any of the following orders to a rental business entity in consultation with the relevant Mayor/Do Governor and the renal business entity; provided, where other statutes or regulations have imposed obligations on the rental business entity, the measures prescribed in the main clause shall be reduced or exempted: <Amended on Apr. 7, 2020>1. A rental business entity shall construct rental housing, the area of which corresponds to the area increased by subtracting the base floor area ratio from the relaxed floor area ratio, and multiplying a ratio, which is not more than 50 percent of the calculated ratio, by the ratio prescribed by ordinance of a relevant local government; and shall supply such housing to the Mayor/Do Governor. In such cases, the price for supplying housing shall be construction expenses determined based on the criteria for calculating prices for conversion for sale of public rental housing units under Article 50-3(1) of the Special Act on Public Housing; and the land attached thereto shall be deemed transferred by donation to the Mayor/Do Governor;

2. A rental business entity shall pay in cash the price of land attached to the house, the area of which is increased by subtracting the base floor area ratio from the relaxed floor area ratio and multiplying a ratio, which is not more than 50 percent of the calculated ratio, by the ratio prescribed by ordinance of a relevant local government to the Mayor/Do Governor. In such cases, the price of land shall be the amount appraised by an appraisal corporation defined in subparagraph 4 of Article 2 of the Act on Appraisal and Certified Appraisers (hereinafter referred to as "appraisal corporation, etc.") based on the standards for the publicly announced price of representative land at the time of application for approval of a project plan or of building permission;

3. A rental business entity shall construct rental housing supplied to those entitled to residential support or mixed-support facilities, the area of which corresponds to the area increased by subtracting the base floor area ratio from the relaxed floor area ratio and multiplying a ratio, which is not more than 100 percent of the calculated ratio, by the ratio prescribed by ordinance of a relevant local government;

4. A rental business entity shall construct rental housing, the area of which corresponds to the area increased by subtracting the base floor area ratio from the relaxed floor area ratio and multiplying a ratio, which is not more than 50 percent of the calculated ratio, by the ratio prescribed by ordinance of a relevant local government and supply such housing to those entitled to residential support in the form of private rental housing for at least 20 years.

(2) The cash paid by a rental business entity under paragraph (1)2 shall escheat to the special account for national housing projects set up in accordance with Article 84 of the Housing Act.

(3) Except as provided in paragraphs (1) and (2), procedures for supplying housing to the Mayor/Do Governor, procedures for calculating land prices, methods for cash payment, operation of mixed-support facilities built, and other necessary matters shall be prescribed by Presidential Decree.[This Article Added on Jan. 16, 2018]

Article 21-3Supply of housing constructed following changes in special-purpose areas

`Article 21-2 shall apply mutatis mutandis to the construction and supply of rental housing, payment in cash of land attached thereto, and building of mixed-support facilities, and other matters with respect to the decision to change a relevant special-purpose area to a special-purpose area subject to relaxed floor area ratios under Article 30 of the National Land Planning and Utilization Act and granting approval of a project plan or building permission. In such cases, the "base floor area ratio" shall be construed as the "floor area ratio determined according to an ordinance or a district unit plan before a change in special-purpose areas"; and the "relaxed floor area ratio" as the "floor area ratio approval authority, etc. apply at the time of approval of a project plan or of building permission after a change in special-purpose areas".[This Article Added on Jan. 16, 2018]