Seoul Metropolitan Government to Crack Down on Unfair Lease Brokerage Practices, Strengthening Protection of Tenants' Rights

[Financial News] #. Tenant A was forced to change a two-year lease agreement into a new one-year contract to raise the monthly rent.
Seoul Metropolitan Government will strengthen oversight of real estate brokerage practices that infringe on tenants' rights.
According to Seoul Metropolitan Government on the 22nd, it will eliminate practices that induce tenants to enter into one-sidedly unfavorable contracts during housing lease agreements and work to establish a fair brokerage culture.
Some cases have continued to emerge in which licensed real estate agents represented only landlords' interests, blocking or restricting tenants' legitimate rights.
When complaints related to housing leases are received, Seoul Metropolitan Government plans to examine each case, including whether unfavorable contract terms for tenants were determined by mutual agreement and whether a licensed real estate agent unfairly restricted a tenant's rights during the brokerage process.
If a contract includes provisions that violate the Housing Lease Protection Act, authorities will determine whether unfair brokerage occurred based on the agent's brokerage process and explanations.
Licensed real estate agents who fail to properly fulfill their duty to verify and explain information about the property being brokered may be fined up to 5 million won. Those who provide false or misleading explanations may face a business suspension or criminal punishment.
Alongside enforcement by administrative agencies, the brokerage industry's self-regulatory efforts will also be strengthened. Seoul Metropolitan Government plans to convey to the Korea Association of Realtors, which recently obtained statutory organization status, its policy of taking stern action against unfair brokerage practices that restrict tenants' rights. It will also request that the association develop self-regulatory measures to improve improper transaction practices.
In particular, the city plans to call for improvements in the on-site brokerage culture so that tenants are not pressured into accepting unfavorable terms by taking advantage of their lack of knowledge about their rights during the contracting process.
Preventive education for tenants will also be expanded. Seoul Metropolitan Government operates a 'Customized On-Site Real Estate Education' program for young people and those new to the workforce, who generally have less experience with real estate transactions, providing guidance on safe contracting methods and housing support programs. So far this year, 708 people have received training through six sessions.
Regular training will also be held in November, providing information on how to verify rights and obligations during the lease process and respond to unfair contracts.
Kim Chang-gyu, head of Seoul Metropolitan Government's Urban Space Bureau, said, "Because real estate contracts directly affect citizens' housing and property, neither party's rights should be unfairly restricted during the contracting process." He added, "While responding firmly to unfair brokerage practices that restrict tenants' rights, we will also strengthen education and information provision so that citizens can understand their legitimate rights and enter into contracts safely, thereby establishing a fair brokerage culture."

[email protected] Choi A-young Reporter