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An Analysis of the Problem in Business Building Lease Protection Act

  • Korea Real Estate Review
  • 2011, 21(3), pp.109-126
  • Publisher : korea real estate research institute
  • Research Area : Social Science > Law > Law of Special Parts > Law of Real Estate

yim yoon-soo 1,  Choi Wanho 2

1서일대학
2서일대학교

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ABSTRACT

The Business Building Lease Protection Act used contribute to a stable business of petty merchants by setting a standard for protection of their rights. However, their rights are not actually protected due to unstable position of the tenant and several problems are raised in the process of enforcement. In addition, other problems to be supplemented are appearing according to rapidly changing contemporary request such as a redevelopment of urban downtown. Authors analyzed these problems and present following improvements under this situation in this study. First, the Business Building Lease Protection Act limits its application scope but it is desirable to apply this act to all building leases other than residential purpose. The Act should be applied to all building leases except those for residential purpose regardless of any application under the Building Act, such as profit or nonprofit and corporate or noncorporate. Second, the opposition power needs to have a reliability. Article 3.1 of the act requires an application of business registration under article 5 of the Law of Delivery of Building and Value Added Tax Law but the authenticity of the lease contract to be submitted when applying business registration could be a problem. In reality, securing the reliability through system arrangement of business registration is the most important, and a supplement to ensure the reliability and responsibility of officials in charge and arrangement of provisions of the tax law should be required. Third, a new original list of business building lease registration for business registration announcement should be computerized in order to supplement the public announcing system, and it is reasonable to introduce the commercial registration system as an opposition requirement against business building lease. Fourth, Article 10.1 defines that the leaser should not refuse the renewal request of the lease contract from 6 months prior to expiry till 1 month after expiry date without a good reason. This provision should be revised because it limits a property right of the leaser excessively. Fifth, the leaser is entitled to refuse the renewal request for 5 years when it needs to recover the occupation of the building in order to demolish or rebuild a part or the whole of the building under article 10.1.7 of the Act. However, this limits a right of the tenant to claim the premium against the leaser.

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