A tenant running a business in rented commercial premises in Korea has a right to ask for renewal as the lease nears its end. Article 10 of the Commercial Building Lease Protection Act says that if the tenant asks between 6 months and 1 month before the term ends, the landlord cannot refuse without just cause, and the right applies only while the whole term, including the first, stays within 10 years. The Act lists eight grounds for refusal, from rent arrears of three periods to reconstruction.
1. Ask between 6 months and 1 month before expiry; the landlord can’t refuse without just cause.
2. Up to 10 years in total, counting the first term.
3. If the landlord says nothing in that window, the lease is deemed renewed on the same terms for 1 year.
The core of the renewal right — Art. 10(1)–(3)
| Type | What the source says | Worth noting (ours) |
|---|---|---|
| When (1) | From 6 months to 1 month before the term ends | A request outside this window reads as outside this article |
| Effect (1) | Landlord can’t refuse without just cause | The eight grounds below |
| Limit (2) | Only while the whole term, first one included, stays within 10 years | A 2-year lease: up to 4 renewals (our sum) |
| Terms (3) | Renewed on the same terms; rent and deposit may change within Art. 11 | Increase cap is 5% — see the calculator post |
Eight grounds for refusal — proviso to Art. 10(1)
| Item | Ground (summary) | Worth noting (ours) |
|---|---|---|
| 1 | Rent arrears reaching three periods’ rent | An amount, not three missed payments |
| 2 | Leased by deception or other wrongful means | — |
| 3 | By agreement, the landlord gave adequate compensation | — |
| 4 | Sublet all or part without consent | — |
| 5 | Intentionally or through gross negligence damaged all or part | — |
| 6 | All or part destroyed so the lease’s purpose fails | — |
| 7 | Possession needed to demolish or reconstruct all or most of the building, where (a) a concrete plan (timing, duration) was disclosed at signing and is followed, (b) age or damage creates a safety risk, or (c) other laws require it | Must fit one of the three |
| 8 | Other serious breach of the tenant’s duties or a grave reason the lease can’t continue | — |
Item 7 isn’t met just by mentioning reconstruction. The text requires one of (a), (b) or (c), and (a) needs the concrete plan to have been disclosed when the lease was signed. A plan announced mid-lease doesn’t read as fitting (a) (our reading).
If nobody says anything — implied renewal, Art. 10(4)–(5)
If the landlord gives no notice of refusal or of changed terms in the same window, the lease is deemed renewed on the same terms when it ends, for 1 year. The tenant can then give notice at any time; it takes effect 3 months after the landlord receives it.
Counting to 10 years — our example
| Lease shape (our example) | How far renewals reach | Worth noting (ours) |
|---|---|---|
| First term 2 years | 2 + 2 × 4 renewals = 10 years | Assumes renewals keep the 2-year term |
| First term 5 years | 5 + 5 × 1 = 10 years | — |
| First term 3 years | 3 + 3 + 3 = 9, 1 year left | The article doesn’t say how the last stretch works — get legal advice |
The table applies “same terms” (para. 3) to the length too; that is our sum. Implied renewal is fixed at 1 year and counted separately.
Does it apply above the deposit threshold? — Art. 2(3)
The Act generally doesn’t apply to leases above the Decree threshold (converted deposit), but Article 2(3) still applies Art. 10(1), (2) and the main text of (3) (renewal and 10 years) and the premium rules (Arts. 10-2 to 10-9) to them. Art. 10(4), implied renewal, isn’t on that list. Regional thresholds and the conversion are in commercial rent 5% increase calculator.
Checklist
- ☐ Mark the dates 6 months and 1 month before expiry
- ☐ Ask in a way that leaves a dated record (our tip)
- ☐ Check the total since the first lease stays within 10 years
- ☐ No arrears reaching three periods’ rent
- ☐ If refused for reconstruction, which of 7(a)–(c) applies
Questions that remain
Can rent go up on renewal?
Same terms is the rule, but rent and deposit can change within Article 11. The cap is 5/100 under Decree Article 4.
How does the premium fit in?
After 10 years you can’t ask for renewal, but premium protection is separate. See commercial lease premium protection.
Sources
- Korean law database (law.go.kr) — Commercial Building Lease Protection Act Arts. 2, 10 — source (current text, effective 12 May 2026, Act No. 21083; checked 19 October 2026). Request window, refusal grounds 1–8 and 7(a)–(c), the 10-year limit, same terms, implied 1-year renewal and 3-month notice, the Art. 2(3) list.
- Not read. Case law; the form of refusal notices.
- What we added. The “worth noting” column and the Korean everyday gloss.
Where to check further
- Korea Legal Aid Corporation or a lawyer — disputes over refusal grounds.
- Regional commercial lease dispute mediation committee — mediation (we didn’t read its guidance this time).
Written on 19 October 2026. The content is from the source; the glosses are ours.
