MoneyLog｜부동산·경제 인사이트

When closing an apartment transaction, everyone checks the utility fee settlement, but many people overlook the Long-term Repair Reserve Fund. 

 This fund is usually paid monthly by tenants as part of utility bills, but it must be refunded by the landlord at the end of the lease or upon closing. 

 In hectic situations—such as direct deals—it is often forgotten.

Legally, this reserve is the landlord’s obligation, but since tenants commonly prepay it, failing to settle means unnecessary loss.

 Therefore, it is best to apply for settlement at the management office in advance and specify it in the contract to prevent disputes.

The Long-term Repair Reserve Fund is a monthly fee collected in apartment complexes to cover major repairs or replacements (e.g., elevators, roofing, exterior walls). 

  Legally, the obligation lies with the owner (landlord), but in practice, tenants often pay it as part of utility fees. 

 Upon lease termination, tenants are entitled to a refund from the landlord.

• Payer: Apartment owner (landlord)
• Practice: Paid by tenant via monthly utility fees → refunded at contract end
• Calculation: Based on unit size, facility lifespan, and repair plan
• Penalty: Up to 5 million KRW fine for non-payment

The Long-term Repair Reserve Fund is not just savings—it is a vital resource for major apartment repairs and replacements. Without proper use, residents could face significant financial burdens later. This is why monitoring management office reports and residents’ meeting minutes is important.

• Replacement of major facilities (elevators, roofing, exterior walls)
• Scheduled repairs under the Long-term Repair Plan
• Defect inspection & dispute resolution costs (with majority approval)

When buying/selling or ending a lease, you must settle not only utility fees but also the Long-term Repair Reserve Fund.

 Although it is legally the landlord’s duty, it is often overlooked in practice, so adding a clause in the contract is the safest approach.

① In Sales

• Utility fees: Seller covers up to closing; buyer covers afterward
• Repair Fund: Paid during seller’s ownership → settled with buyer/tenant
• Tip: Add “Repair Fund Settlement” clause in the contract

② In Lease Termination

• Tenant-paid fund → must be refunded by landlord
• Attach statement from management office when requesting refund
• Keep documents, especially in direct deals

Settling the Long-term Repair Reserve Fund is not optional—it’s a right. Even if tenants paid it during the lease, landlords are legally obliged to return it. Don’t stop at utility fee settlement; always check for repair fund settlement as well.

Do you know someone preparing for a sale or lease contract? Sharing this post could protect their deposit and their rights. 💌 Knowledge shared is safety multiplied.