According to Article 618 of Korean Civil Code, a lease 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. The lease of business build...
According to Article 618 of Korean Civil Code, a lease 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. The lease of business building is generally accompanied with premium. The premium is given and received between lessee and sub-lessee, sub-lessor and sub-lessee. Even though there must be a natural and lawful
agreement between a lessor and a lessee, there still remains the need to secure the position of the lessee who is said to be economically weak party, compared to that of lessor.
According to relevant Supreme court cases, the lessor have no liability for a premium. But, lease stipulation of the Civil Code has lack in protection for the lessees of the real estate when it comes to the payment of premium in addition to key money. Especially for the lease of business building, current Business Building Lease Protection Act has no protection for the lessee who paid the premium entering the lease. Therefore, the study in this paper is focused on the protection for the lessees of the business building lease, especially the strong argument that the lessor received the premium must refund the lessee, if the lessor rescind the contract during the lease period.