Demand for ‘Shopping Rental Discount’ becomes possible when infectious diseases such as corona

[땅집고] The National Assembly is moving forward with a revision of the law that allows tenants of shopping centers that have been damaged by the new coronavirus infection (Corona 19) to demand rent reductions from owners.

The Legislative Judicial Committee of the National Assembly held the first legal review subcommittee on the 23rd and dealt with the ‘Amendment of the Law for the Protection of Leasing of Commercial Buildings’, which grants the right to demand rent reductions to tenants shopping malls affected by infectious diseases. The subcommittee created an alternative that combined three bills that were initiated by Democratic Party Representative Min Hyung-bae and Lee Yong-ki, along with Representative Gyeong-ho Chu, and passed it to the plenary meeting. The bill is expected to be handled in the plenary session of the National Assembly scheduled for the 24th.

The revised bill revised the rent increase or decrease requirement from existing ‘change in financial situation’ to ‘change in financial situation due to first-class infectious disease, etc. according to the method of prevention of infectious diseases’. The top-notch legal infectious disease, Corona 19, has laid the groundwork for small business owners and freelancers who have been affected by demanding rent reductions from building owners.

There is a 5% limit on the amount of increase according to current laws and regulations on the right to request an increase or decrease, but there is no separate lower limit when requesting a reduction. Even in this amendment, the lower limit was not specified. However, if the landlord agrees to the tenant’s request for a reduction, the ‘5% upper limit’ rule does not apply to the reduced rent.

Under the amendment, the landlord is not required to accept a reduction claim. In the existing right to request an increase or decrease, if the landlord refuses to claim the reduction, a lawsuit is filed for a rent reduction. If the lawsuit is won, the rent is considered to have been adjusted as of the date the reduction is requested.

Additionally, the amendment provided special provisions to prevent the tenant from canceling the lease or refusing to renew the lease, even if the tenant owes rent for six months after the law is applied. This means that they will not be temporarily evicted for late rentals during the six months that Corona 19’s aftermath continues. Current law recognizes that the tenant can terminate the lease or refuse to renew the lease if the rent is delayed for three months.

The bill entered into force upon enactment and a supplemental provision was also prepared that applies to leases that existed at the time of execution. The judicial commission plans to process the amendment in the plenary session on the afternoon of that day and present it to the plenary session to be held on the 24th. /Reporter Jeon Hyun-hee [email protected]