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| How to Exercise the Renewal Right (Landlord · Tenant · Agent)

In simple terms, the statutory right to request lease renewal allows the tenant to request one more 2-year term. Many people, however, misunderstand this as a “guaranteed 4-year system (2+2)”, or assume that “any re-contract automatically means the renewal right was used.”

Based on the Korean Housing Lease Protection Act, the basic framework is as follows:

• Timing: The tenant must request renewal within the window from 6 months to 2 months before the end of the current lease.
• Frequency: The tenant may exercise this right only once, and that exercise guarantees an additional 2 years.
• Exceptions: Landlords may refuse renewal on limited grounds, such as 2 months’ rent arrears, unauthorized subletting, intentional or grossly negligent damage, legitimate reconstruction/demolition, self-occupancy by the landlord or direct family members, and other statutory reasons.
• Conditions: The renewed lease generally follows the same terms as the previous one, but rent and deposit may be adjusted within the scope of Article 7.

Even when reading the same law, tenants, landlords, and agents focus on different points. Below is a practical breakdown for each role.

| Tenant’s View: “When and how should I request renewal?”

• Keep the deadline: Request renewal within the 6-to-2-month window before expiry.
• Leave a record: Use text message, KakaoTalk, email, or registered mail so you can later prove when and what you requested.
• Clarify whether you are using the renewal right: When signing a new contract, clearly state whether it is based on exercising the renewal right or just a voluntary re-contract.
• If the landlord claims “self-occupancy,” record that: It may later become important for claiming damages if the landlord actually rents to a third party instead.

| Landlord’s View: “When can I legitimately refuse?”

• Check if the reason fits one of the statutory grounds: Simply wanting higher rent or a different tenant is usually not enough.
• Be careful with “self-occupancy” as a reason: If you later rent the property to someone else, you may be liable for damages.
• Use clear clauses in re-contracts: For example, “This contract is a renewed lease based on the tenant’s exercise of the renewal right.”
• Keep evidence of arrears, unauthorized subletting, or damage: Bank statements, photos, and written communications can become critical in disputes.

| Agent’s View: “What should I explain and document?”

• Explain that it is a “one-time right,” not an unconditional 4-year guarantee.
• Propose neutral special clauses that clarify whether the renewal right has been used or not.
• Record that explanations were given: A short note like “The parties have been informed of the timing and one-time nature of the renewal right” can help prevent later complaints.

The agent’s role is not to “pick a winner,” but to prevent disputes in the first place by helping both sides share the same understanding of the renewal system.

| 7 Legal Reasons a Landlord May Refuse Renewal

Even if a tenant exercises the right to renew the lease, the landlord may refuse it only on legitimate statutory grounds as listed in Article 6-3 (1) of the Korean Housing Lease Protection Act. The seven key grounds are as follows:

• 1. Self-occupancy by the landlord or immediate family — The landlord, spouse, parents, or children intend to reside in the property.
• 2. Self-occupancy by the new owner — A buyer who completes ownership transfer at least two months before expiry may refuse renewal for personal residence.
• 3. Tenant’s rent arrears equivalent to two months’ rent — Continuous or cumulative arrears reaching two months’ worth.
• 4. Unauthorized sublease — The tenant sublets without the landlord’s prior consent.
• 5. Damage caused by intent or gross negligence — Significant damage or structural alteration caused by the tenant.
• 6. Reconstruction plan disclosed at contract signing — A redevelopment or demolition plan informed to the tenant at the start of the lease.
• 7. Safety-related demolition — Building deterioration or legal redevelopment requiring demolition.

Any refusal outside these grounds is legally invalid. If a landlord falsely claims self-occupancy and later rents to a third party, they may be liable for damages up to two years’ rent difference under Article 6-3 (5)–(6).

| Implied Renewal & Recontracting Cautions

When neither party expresses intent before the lease expires, the lease is automatically renewed (“implied renewal”) under Article 6-2 of the Act, for another two years on the same terms.

The key question then becomes whether this counts as “use of the renewal right” or simply an automatic extension. This distinction determines whether the tenant still retains the right to request one more term.

| Comparison Table

As shown, whether the renewal right was explicitly stated makes all the difference. Without clarity, both sides risk future disputes.

| Sample Clauses

• Landlord-friendly: “This contract is a renewed lease based on the tenant’s exercise of the renewal right.”
• Tenant-friendly: “This contract is a re-contract made by mutual agreement without exercising the renewal right.”

The agent should ensure both sides understand which clause applies, and keep a signed record to prevent future conflict.

| Q&A | Frequently Asked Questions

| Summary & Key Takeaways

The lease renewal right is not just a “two-year extension.” It guarantees the tenant’s one-time right to request renewal while defining legitimate reasons for the landlord to refuse. The goal is not about who’s right, but about ensuring both sides understand their rights and limits clearly.

| For Tenants

• 📆 Request renewal between 6 and 2 months before expiration.
• 📩 Keep evidence—text, email, or registered mail.
• 📄 Include a clause clarifying whether the renewal right is being used.
• ⚖ If the landlord refuses citing self-occupancy, note that false claims can lead to damages.

| For Landlords

• 🧾 Refusal must fall within Article 6-3 (1) legal grounds.
• 🏠 If you claim self-occupancy, you must actually reside there.
• 📑 Add the clause “This contract is based on the tenant’s exercise of the renewal right.”
• 📷 Keep documentation for arrears, damages, or other valid reasons.

| For Agents

• 💡 Clearly explain that the renewal right is a one-time entitlement.
• 📋 Suggest neutral clauses and have both sides sign them.
• 🗂 Record explanations to protect against later disputes.

Ultimately, clear records and mutual understanding are the best protection. If both sides handle renewals transparently, most lease conflicts can be prevented before they start.
Thank you for reading—this was MoneyLog. 🐝