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In relation to the rent increase for existing tenants of rental companies registered before October 23, 2019, media reports that the court made a judgment that overturned the interpretation of the authority of the Ministry of Land, Infrastructure and Transport and the Ministry of Justice, the rental companies and tenants are shaken. However, the government’s position is that the judicial judgment of the court is not a specified’judgment’ but a’mediation’ based on an agreement between the parties, and in terms of content, it is not contrary to the existing authoritative interpretation. ♣️H4s①The court overturned?♣️]=To sum up the coverage on the 21st, the judgment related to the increase in rent for rental business owners recently issued by the Seoul Southern District Court was not’judgment’ by’civil suit’, but’civil adjustment’. It is’adjustment’. In connection with the reported case, lawyer Kim Seong-ho (law firm property) said, “Since a civil lawsuit takes six to ten months or more, we applied for a civil arbitration that can obtain results within three months.” Civil mediation is different from the procedure for obtaining a judgment by the court, and refers to the mediation committee established in the court to listen to the arguments from the parties to the dispute according to a simple procedure compared to the judgment, and to find and mediate concessions and compromise points. For this reason, the results of civil mediation are not comparable to the’judgment’ of a civil lawsuit in which victory and loss are divided according to the judge’s judicial judgment. On that day, the Ministry of Land, Infrastructure and Transport and the Ministry of Justice also said, “Because the court’s mediation is based on the agreement of the parties, the court’s mediation decision cannot be regarded as a judgment based on the judicial interpretation of the judiciary. It is difficult to say that it was judged that there was or was contradicted.” However, attorney Kim, who represented the rental business, said, “The judgment result is in a different form, but if it is smoothly adjusted, it is not different from the judgment because the reconciliation in the judgment, that is, the final judgment becomes effective. ♣️H4s② Interpretation and arrangement of government authority?♣️]= The reported case was that the lessor B, the tenant B, raised the lease contract signed for a rent of 500 million won in December 2018 to 800 million won two years later in December 2018. It is a case that entered into civil mediation, confronting that the’renewal contract’ cannot be increased by more than 5% under the Housing Lease Protection Act. However, according to the adjustment result, it is known that the tenant did not use the right to request renewal under the Housing Lease Protection Act, which can apply the ‘5% rule’ to the increase in rent. The tenant did not use the renewal request right to tie up the rent increase by 5%, but instead used the renewal request right to extend the lease period by two more years after the lease obligation ends. Attorney Kim on the rental business side said, “The rental business unit wanted to receive the rental fee appropriate to the market price, and the lessee would raise it to the amount equivalent to the market price this time. However, when the rental period expires, use the renewal request right guaranteed by the Housing Lease Protection Act for up to 10 years. It seems that I put importance on the rental period that I can live until.” In fact, there are cases in which the Housing Lease Dispute Mediation Committee agreed to increase the rent by more than 5% instead of securing an additional two years by delaying the exercise of the renewal request right to the next contract. An official from the Ministry of Justice said, “The interpretation of the right is that the 5% rule will be applied if the right to request renewal is exercised in accordance with the Housing Lease Protection Act in effect on July 31 of last year. If the adjustment resulted as a result of the tenant’s later reservation of the exercise of the right to renew, the government It is not contrary to the interpretation of the voter’s right.” From the perspective of rental companies, it is more important that rental companies registered before October 23, 2019 can increase their rent beyond the ‘5% rule’ through mediation, rather than whether or not they are contradicted by the interpretation of votes. Attorney Kim said, “The 5% increase limit is not a mandatory regulation, but an agreement between the parties through the mediation result, and through this, the court indirectly confirmed that even if the rent increases by more than 5%, it is not invalid.” . In addition, he said, “This does not apply to all rental companies, but only to some rental companies who registered as rental companies before October 23, 2019. It should not be mistaken as it applies to all rental companies.” Said. ♣️H4s③Why was the controversy so controversial?♣️]=What does lawyer Kim mean that this mediation was limited to rental business owners before October 23, 2019? The Special Private Lease Act governing rental business owners, through an amendment that went into effect on October 24, 2019, prevents a lease increase by more than 5% from the time of renewing a lease contract with the relevant tenant if there was a lease relationship when registering a rental business entity. The problem is the rental business owners and their tenants who registered before October 23, 2019, before such amendment took effect. Because the amendment was not applied retroactively to them, these rental companies were able to set their rent at will. In this case, Mr. A, the rental business operator, was also registered as a rental business in January 2019, so the amendment is not applied. However, from July 31 of last year, the Housing Lease Protection Act, which introduced the right to request contract renewal and the ceiling on rent for cheonsei, was enforced. In the early stages of implementation, confusion over whether the Civil Act or the Housing Lease Protection Act came first, the Ministry of Land, Transport and Maritime Affairs and the Ministry of Justice said through a vote interpretation that the 5% rule applies if the tenant exercises the right to request renewal under the Housing Lease Protection Act. Done. By Jin Myeong-seon, staff reporter [email protected]