South Korea’s Residential Tenancy Protection Act provides that the landlord can increase the rent during the term by reason of a change of circumstances and that the increase should not exceed 5%. Except this provision, the Act imposes no restrictio...
South Korea’s Residential Tenancy Protection Act provides that the landlord can increase the rent during the term by reason of a change of circumstances and that the increase should not exceed 5%. Except this provision, the Act imposes no restriction on the rent level. In Korea most residential tenancies have a fixed term of two years. If the landlord requests an excessive rise in rent as the condition of renewal, the tenant has to move to another house unless she can afford the rent increase. In view of the current interest in residential instability in South Korea, this article reviews various aspects of current French law and practice relating to residential leases. It points out that the positions of the landlord and tenant in France are different from those in South Korea: every lease to which the law of 6 July 1989 applies must be for a term of not less than three years if the lessor is a private individual or six years if the lessor is a company; the lessee may leave the property at any time during the term after having notified the landlord by registered AR post at least three months in advance of the tenant’s intended departure date; leases with rents 20% above the average for the location at the time of signing could face a reduction though this applies only to premises in the areas with shortages of affordable housing; rent can be increased only once a year and only if a revision clause is included in the contract; increases are calculated on the base of a rent reference index published annually by the government; in the event that landlord and tenant agree to renew the tenancy at the expiry of the initial term, ordinarily, the rent can be increased on renewal through the normal process set out in the law of 1989 but the rent on renewal is capped. Since the revision of the Rental Housing Act in 2000, tenant associations have been established in many public housing estates. However the foundation of tenant associations is unstable yet.