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A Study on the Improvement Direction of the Conversion Deposit System for Stable Business of Commercial Building Tenants

  • Korea Real Estate Review
  • 2015, 25(2), pp.113-130
  • Publisher : korea real estate research institute
  • Research Area : Social Science > Law > Law of Special Parts > Law of Real Estate

정주희 1

1한국부동산연구원

Accredited

ABSTRACT

This study aims at drawing issues that are directly or indirectly related to the conversion deposit system of 「Commercial Building Lease Protection Act」, and suggesting the direction for the improvement of stable business of commercial building tenants. In a middle and long term, the focus should be on the protection of their business activities, for example, by abolishing the conversion deposit system. However, once the conversion deposit system has to be maintained, relevant regulations need to be reformed. The main results are as follows. First, as for the maximum conversion deposit, it must be legislated that 90% of the total commercial building tenants can be protected. Second, the conversion rate of deposit should be adjusted from 1 over 100 to 1 over 70, or improved to be linked with the Bank of Korea base rate. Third, the maximum rate to increase the rent has to be reformed to be linked with the consumer inflation rate, and the maximum increase rate of rent should be regulated differently between the case of below the standard of the conversion deposit(7% a year) and the case over it(12% a year). Fourth, the conversion rate of monthly rent must be revised from fixed rate of 12% a year to 10% a year. Besides, it's necessary to improve the researches on the actual conditions of commercial building lease, to make a local government's efforts to solve dispute over commercial building rental through the surveying, to need a reasonable mediation plan in case of dispute over rent and to introduce the regulations about punishment in case of abolition of the law, and etc.

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