If a landlord refuses to renew a lease saying they will live there themselves, then lets the home to someone else without good reason before the renewed term would have ended, they must compensate the tenant. That is Article 6-3(5) of the Housing Lease Protection Act. Unless an amount was agreed at the time of refusal, damages are the largest of: (1) 3 months of converted monthly rent, (2) 2 years of the difference from what the new tenant pays, and (3) the actual loss (para. 6). Even a pure jeonse with no monthly rent counts — the deposit is converted, at 5% a year with the Bank of Korea base rate of 3.00% we checked on 4 November 2026. A ₩500 million jeonse refused, then let at ₩600 million, gives ₩10,000,008 (our example). The calculator is below.
1. Conditions: refusal for own use (para. 1, item 8) + re-let within the would-be renewed term + no good reason.
2. Damages = the largest of converted rent × 3, difference × 24, actual loss — or the agreed figure if there is one.
3. Converted monthly rent = rent + deposit × (lower of 10% and base rate + 2%) ÷ 12 (Art. 7-2, Decree Art. 9).
Calculator
Updates as you type. The deposit is turned into monthly rent at the lower of 10% a year and the base rate plus 2% (Art. 7-2, Decree Art. 9), divided by 12, won fractions dropped (our rounding). If the parties agreed a damages figure at the time of refusal, that figure applies instead.
Article 6-3 — as written
| Type | What the source says | Worth noting (ours) |
|---|---|---|
| Para. 1, item 8 | The landlord (including their parents or children) intends to live in the home — a ground to refuse renewal | Covers a parent or child moving in |
| Para. 2 | The renewal right can be used once; the renewed term is 2 years | The “would-be renewed term” is usually these 2 years (ours) |
| Para. 5 | If, after refusing under item 8, the landlord lets the home to a third party without good reason before the would-be renewed term ends, they compensate the tenant | — |
| Para. 6 | Unless the parties agreed liquidated damages at the time of refusal, the largest of the items below | An agreed figure comes first |
| Para. 6, item 1 | 3 months of the monthly rent at refusal, with any deposit converted to monthly rent at the lower Art. 7-2 rate (“converted monthly rent”) | Not zero even for jeonse |
| Para. 6, item 2 | 2 years of the difference between the converted rent from the third party and that at refusal | Zero if the new deal is cheaper (ours) |
| Para. 6, item 3 | The loss the tenant suffered from the refusal | Must be shown, we read |
The conversion rate — Art. 7-2 and Decree Art. 9 (as written)
| Type | What the source says | Worth noting (ours) |
|---|---|---|
| Act Art. 7-2, item 1 | A rate set by decree considering bank lending rates and local conditions — Decree Art. 9(1): 10% a year | — |
| Act Art. 7-2, item 2 | The Bank of Korea base rate plus a rate set by decree — Decree Art. 9(2): 2% a year | Base rate + 2% |
| Which applies | The lower of the two | Item 2 unless the base rate tops 8% |
Base rate — Bank of Korea (as published)
| Changed on | Base rate (BOK) | Conversion rate (ours) |
|---|---|---|
| 29 May 2025 | 2.50% | 2.50 + 2 = 4.5% |
| 16 July 2026 | 2.75% | 4.75% |
| 27 August 2026 | 3.00% | 5% (latest on the list we checked on 4 November 2026) |
The article says converted rent at the time of refusal, so the calculator wants the base rate when you were told, not today’s (ours). Refused in June 2026 means 2.50%; in September, 3.00%.
Three sums — our examples (base rate 3.00%)
| Case (ours) | Damages | Worth noting (ours) |
|---|---|---|
| ₩500M jeonse; home re-let at ₩500M | Converted rent ₩2,083,333 × 3 = ₩6,249,999 | 3 months stand even with no difference |
| ₩500M jeonse; home re-let at ₩600M | Difference ₩416,667 × 24 = ₩10,000,008 | More than the 3 months |
| ₩100M deposit + ₩1M rent → new tenant pays ₩1.3M | ₩1,416,666 → ₩1,716,666; ₩300,000 × 24 = ₩7,200,000 | 3 months would be ₩4,249,998 |
₩500M × 5% ÷ 12 = ₩2,083,333.3; the calculator drops won fractions (our rounding), so 3 months come to ₩6,249,999 rather than ₩6.25 million.
What the calculator does not decide
- Whether there was “good reason” — the Act gives the words, not a test. We did not read case law.
- Item 3, actual loss — if moving costs or brokerage fees exceed the other two, that figure governs; the calculator can’t judge what counts, so you enter it.
- An agreed figure — if one was agreed at refusal, it replaces the para. 6 sums.
Timing the renewal request and the 5% cap are in using the lease renewal right and the 5% rent increase calculator; deposit-to-rent conversion in the jeonse to monthly rent converter.
Checklist
- ☐ Keep the refusal notice showing “own use” (item 8)
- ☐ Note the deposit, rent and base rate at refusal
- ☐ Check whether someone else moved in within the would-be term (usually 2 years)
- ☐ Even a cheaper re-let leaves the 3 months
- ☐ Keep receipts for moving and other real costs
Questions that remain
How do I find the new tenant’s terms?
We did not read the information-access provisions for this piece. The calculator only does the sums with figures you have.
What if the landlord sold the home?
Para. 5 speaks of letting the home to a third party; a sale is not mentioned (our reading).
What if the base rate goes above 8%?
Then 10% (item 1) is lower and applies; the calculator caps it that way.
Sources
- Korea Law Information Center — Housing Lease Protection Act Arts. 6, 6-3, 7-2 — source (current text, effective 2 January 2026, Act No. 21065; checked 4 November 2026). Art. 6-3(1) items (item 8, own use), (2) once and 2 years, (5) damages, (6) items (3 months, 2 years of difference, actual loss; agreed figure first), Art. 7-2 lower rate.
- Korea Law Information Center — Enforcement Decree Art. 9 — source (current text, effective 1 July 2026, Decree No. 36423; checked 4 November 2026). Para. 1: 10% a year; para. 2: 2% a year.
- Bank of Korea — Base rate history — source (list page; checked 4 November 2026). 29 May 2025 2.50%, 16 July 2026 2.75%, 27 August 2026 3.00%.
- Not read. Case law on “good reason”, information-access provisions, how loss is assessed in practice, local advice services.
- What we added. The “worth noting” column and the Korean everyday gloss.
Where to check further
- Housing Lease Dispute Mediation Committee — disputes over the amount.
- Bank of Korea website — the base rate on the refusal date.
Written on 4 November 2026. The content is from the source; the glosses are ours.
