{"id":1891,"date":"2026-08-19T22:52:23","date_gmt":"2026-08-19T22:52:23","guid":{"rendered":"https:\/\/atlaw.kr\/en-blog\/commercial-lease-rent-arrears-termination-south-korea\/"},"modified":"2026-08-19T22:58:14","modified_gmt":"2026-08-19T22:58:14","slug":"commercial-lease-rent-arrears-termination-south-korea","status":"publish","type":"post","link":"https:\/\/atlaw.kr\/en-blog\/commercial-lease-rent-arrears-termination-south-korea\/","title":{"rendered":"Commercial Lease Termination for Rent Arrears and Rent-Waiver Enforceability in South Korea"},"content":{"rendered":"<p><!-- ATLAS_HREFLANG_START -->\n<link rel=\"alternate\" hreflang=\"ko\" href=\"https:\/\/atlaw.kr\/kr-blog\/commercial-lease-arrears-rent-waiver-kr\/\" \/>\n<link rel=\"alternate\" hreflang=\"en\" href=\"https:\/\/atlaw.kr\/en-blog\/commercial-lease-rent-arrears-termination-south-korea\/\" \/>\n<link rel=\"alternate\" hreflang=\"x-default\" href=\"https:\/\/atlaw.kr\/kr-blog\/commercial-lease-arrears-rent-waiver-kr\/\" \/>\n<!-- ATLAS_HREFLANG_END --><\/p>\n<p><!-- ATLAS_SEO_BLOCK_START --><br \/>\n<script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"Article\",\"@id\":\"https:\/\/atlaw.kr\/en-blog\/commercial-lease-rent-arrears-termination-south-korea\/#article\",\"mainEntityOfPage\":{\"@type\":\"WebPage\",\"@id\":\"https:\/\/atlaw.kr\/en-blog\/commercial-lease-rent-arrears-termination-south-korea\/#webpage\"},\"headline\":\"Commercial Lease Termination for Rent Arrears and Rent-Waiver Enforceability in South Korea\",\"description\":\"Two Supreme Court of Korea rulings issued in June 2026 clarify when a landlord may terminate a commercial lease for three periods of rent arrears, and why a rent waiver that is not disclosed through a business registration amendment cannot be asserted against a buyer of the building.\",\"datePublished\":\"2026-08-20T09:00:00+09:00\",\"dateModified\":\"2026-08-20T09:00:00+09:00\",\"inLanguage\":\"en-US\",\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/atlaw.kr\/taejin-kim\/#person\",\"name\":\"Taejin Kim\",\"alternateName\":\"\uae40\ud0dc\uc9c4\",\"jobTitle\":\"Managing Partner\",\"worksFor\":{\"@id\":\"https:\/\/atlaw.kr\/#legalservice\"}},\"publisher\":{\"@type\":\"LegalService\",\"@id\":\"https:\/\/atlaw.kr\/#legalservice\",\"name\":\"Atlas Legal\",\"url\":\"https:\/\/atlaw.kr\"},\"about\":[\"Commercial Building Lease Protection Act Article 10-8 rent arrears termination\",\"Timing of the three-period arrears requirement in South Korea\",\"Business registration as the statutory disclosure method for commercial leases\",\"Enforceability of a rent waiver against a transferee of the building\",\"Supreme Court of Korea 2024Da320215\",\"Supreme Court of Korea 2026Da201494\"]}<\/script><br \/>\n<script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"@id\":\"https:\/\/atlaw.kr\/en-blog\/commercial-lease-rent-arrears-termination-south-korea\/#faqpage\",\"inLanguage\":\"en-US\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"When may a landlord in South Korea terminate a commercial lease for unpaid rent?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Article 10-8 of the Commercial Building Lease Protection Act allows the landlord to terminate once the tenant's rent arrears reach three periods of rent. The Supreme Court of Korea treats that threshold as the event that creates the right of termination, so the right arises immediately when arrears reach three periods (Supreme Court of Korea, June 24, 2026, 2024Da320215). The landlord must still declare termination, and that declaration takes effect when it reaches the tenant.\"}},{\"@type\":\"Question\",\"name\":\"Can a tenant stop the termination by paying the arrears before the complaint is served?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"No. The Supreme Court of Korea held that where three or more periods of arrears existed at the time the landlord exercised the right, the right of termination is not extinguished merely because the tenant unilaterally paid rent, without the landlord's consent, before the copy of the complaint containing the declaration of termination was served, absent special circumstances (Supreme Court of Korea, June 24, 2026, 2024Da320215).\"}},{\"@type\":\"Question\",\"name\":\"What if the tenant pays first and the landlord declares termination afterward?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The termination is likely to fail. The 2024Da320215 ruling is expressly conditioned on three or more periods of arrears existing at the time the right was exercised. The Supreme Court of Korea has stated that Article 10-8 requires the arrears to reach three periods of rent at the time of termination (Supreme Court of Korea, May 27, 2021, 2020Da263635 and 2020Da263642), and it reversed a lower court that had upheld a termination where the arrears fell short of three periods as of the termination date (Supreme Court of Korea, October 26, 2023, 2023Da247399). No ruling has addressed this exact sequence head-on.\"}},{\"@type\":\"Question\",\"name\":\"Does accepting the late payment destroy the landlord's right of termination?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"It can. The Supreme Court of Korea held long ago that where the landlord did not exercise the right and accepted the rent without objection, the landlord may no longer terminate or refuse renewal on that ground (Supreme Court of Korea, October 22, 1991, 91Da22902). In the 2024Da320215 case the appellate court found that the landlord could not be said to have accepted the rent without objection, and the Supreme Court of Korea upheld that finding. Landlords should therefore reserve their objection in writing when late payments arrive.\"}},{\"@type\":\"Question\",\"name\":\"A landlord waived our rent by side letter. The building was sold at auction. Can we assert the waiver against the buyer?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Not unless the change was disclosed. The Supreme Court of Korea held that even where the lease terms were changed in the tenant's favor, such as a rent waiver, the tenant cannot assert that change against the new landlord who acquired the building unless the change was disclosed, for example by being recorded in the Commercial Building Lease Status Certificate through an amendment to the business registration (Supreme Court of Korea, June 25, 2026, 2026Da201494).\"}},{\"@type\":\"Question\",\"name\":\"The business registration certificate does not show the deposit or the rent. How does it disclose anything?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"What is disclosed is not the certificate itself but the copy of the lease agreement filed with the district tax office and the Commercial Building Lease Status Certificate compiled from it. A tenant registering a leased business premises must attach a copy of the lease agreement to the application, and must file an amendment report when the deposit, rent, or lease term changes. An interested party may then ask the competent head of the district tax office to inspect or issue the status certificate (Supreme Court of Korea, June 25, 2026, 2026Da201494; Supreme Court of Korea, June 9, 2016, 2013Da215676).\"}},{\"@type\":\"Question\",\"name\":\"What exactly must a tenant file after a rent waiver in South Korea?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"File a business registration amendment report with the district tax office having jurisdiction over the business premises, attaching the amended lease agreement or the waiver memorandum, and apply for a new fixed date stamp on the amended agreement. Only then does the rent field of the Commercial Building Lease Status Certificate change. Keeping the memorandum in a drawer changes nothing that a third party can see.\"}},{\"@type\":\"Question\",\"name\":\"Does the disclosure system apply to leases above the converted deposit ceiling?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"No. Article 2(3) of the Commercial Building Lease Protection Act lists the provisions that still apply to leases above the ceiling, namely Article 3, Article 10(1), (2) and the main text of (3), Articles 10-2 through 10-9, Article 11-2, and Article 19. Article 4, which governs fixed date stamps and the provision of lease information, is not on that list. Opposability under Article 3 and termination for three periods of arrears under Article 10-8 still apply, but the fixed date and status certificate system does not, so buyers must verify the lease terms directly with the landlord and the tenant.\"}}]}<\/script><br \/>\n<script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":[\"LegalService\",\"LocalBusiness\"],\"@id\":\"https:\/\/atlaw.kr\/#legalservice\",\"name\":\"Atlas Legal\",\"alternateName\":[\"\ubc95\ubb34\ubc95\uc778 \uc544\ud2c0\ub77c\uc2a4\",\"Atlas Law Firm\"],\"url\":\"https:\/\/atlaw.kr\/en\/home-en\/\",\"telephone\":\"+82-32-864-8300\",\"email\":\"info@atlaw.kr\",\"priceRange\":\"$$$\",\"address\":{\"@type\":\"PostalAddress\",\"streetAddress\":\"B-2901, 323 Incheon Tower-daero\",\"addressLocality\":\"Yeonsu-gu, Incheon\",\"addressRegion\":\"Incheon Metropolitan City\",\"postalCode\":\"22007\",\"addressCountry\":\"KR\"},\"geo\":{\"@type\":\"GeoCoordinates\",\"latitude\":37.399438,\"longitude\":126.629812},\"openingHoursSpecification\":[{\"@type\":\"OpeningHoursSpecification\",\"dayOfWeek\":[\"Monday\",\"Tuesday\",\"Wednesday\",\"Thursday\",\"Friday\"],\"opens\":\"09:00\",\"closes\":\"18:00\"}],\"areaServed\":[{\"@type\":\"Country\",\"name\":\"South Korea\"},{\"@type\":\"Place\",\"name\":\"Songdo International Business District\"},{\"@type\":\"Place\",\"name\":\"Cheongna International City\"},{\"@type\":\"Place\",\"name\":\"Yeongjong International City\"},{\"@type\":\"Place\",\"name\":\"Incheon\"},{\"@type\":\"Place\",\"name\":\"Seoul Metropolitan Area\"},{\"@type\":\"Place\",\"name\":\"Incheon Free Economic Zone (IFEZ)\"}],\"knowsAbout\":[\"Commercial Lease Law in South Korea\",\"Commercial Building Lease Protection Act of South Korea\",\"Rent Arrears and Lease Termination in South Korea\",\"Business Registration and Lease Disclosure in South Korea\",\"Real Estate Acquisition and Auction Purchases in South Korea\",\"Corporate Disputes in South Korea\",\"Incheon Free Economic Zone (IFEZ) Legal Services\"],\"serviceType\":[\"Commercial Lease Disputes\",\"Real Estate Litigation\",\"Corporate Dispute Resolution\",\"Corporate Counseling\",\"Foreign Direct Investment Legal Services\"]}<\/script><br \/>\n<!-- ATLAS_SEO_BLOCK_END --><\/p>\n<style>@import url('https:\/\/cdn.jsdelivr.net\/gh\/orioncactus\/pretendard@v1.3.9\/dist\/web\/static\/pretendard.css'); 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} \/* \uc800\uc790 \ubc15\uc2a4 *\/ .author-box { display: flex; align-items: center; gap: 14px; padding-top: 40px; margin-top: 40px; border-top: 1px solid var(--rule); } .author-avatar { width: 56px; height: 56px; border-radius: 50%; object-fit: cover; flex-shrink: 0; align-self: flex-start; } .author-text { flex: 1; } .author-name { font-size: 18px; font-weight: 600; color: var(--navy); } .author-meta { font-size: 13px; color: var(--text); margin-top: 2px; } .author-link { display: inline-block; margin-top: 8px; font-size: 15px; font-weight: 600; color: var(--wine); text-decoration: none; } .author-link:hover { text-decoration: underline; } .author-section-label { font-size: 15px; font-weight: 700; letter-spacing: 1px; text-transform: uppercase; color: var(--muted); margin-bottom: 8px; } .author-detail { font-size: 16px; color: var(--text); line-height: 1.7; margin-bottom: 1px; } @media (max-width: 640px) { body { font-size: 15px; } p { font-size: 15px; } li { font-size: 15px; } .hero { padding: 32px 14px 24px; } .hero h1 { font-size: 22px; } .hero-title { font-size: 22px; } .hero-info { font-size: 12px; } .content { padding: 28px 0 60px; } .toc-nav { margin-left: -14px; margin-right: -14px; border-radius: 0; border-left: none; border-right: none; padding: 12px 4px; margin-bottom: 28px; } .toc-label { font-size: 16px; } .toc-nav ol li { font-size: 14px; padding: 3px 0; } h2 { font-size: 20px; margin: 44px 0 10px; } h3 { font-size: 15px; margin: 24px 0 8px; } .lead-text { font-size: 16px; } .summary-text { font-size: 15px; } .context-text { font-size: 14px; } .formula { flex-direction: column; padding: 16px 12px; } .f-num { font-size: 18px; } th { font-size: 13px; padding: 8px 10px; } td { font-size: 13px; padding: 8px 10px; } .faq-q { font-size: 14px; } .faq-item p:not(.faq-q) { font-size: 14px; } .author-box { display: block; overflow: hidden; } .author-avatar { float: left; width: 36px; height: 36px; margin-right: 10px; border-radius: 50%; } .author-section-label { display: inline; font-size: 11px; letter-spacing: 0; margin: 0 3px 0 0; } .author-name { display: inline; font-size: 14px; } .author-detail { clear: both; font-size: 13px; line-height: 1.55; margin-top: 8px; margin-bottom: 1px; } .author-detail ~ .author-detail { clear: none; margin-top: 2px; } .author-link { clear: both; display: block; font-size: 13px; margin-top: 8px; } p.closing { font-size: 14px; } }<\/style>\n<div class=\"hero\">\n  <span class=\"category-tag\">Commercial Lease<\/span><\/p>\n<div class=\"hero-title\">Paying Off Arrears May Not Save the Lease<br \/>And a Rent Waiver May Not Bind the Next Owner<\/div>\n<div class=\"hero-meta\">\n<div class=\"hero-info\">\n      <strong>Taejin Kim<\/strong> \u00b7 Managing Partner, Atlas Legal<br \/>\n      Supreme Court of Korea, June 24, 2026, 2024Da320215 &nbsp;\u00b7&nbsp; Supreme Court of Korea, June 25, 2026, 2026Da201494\n    <\/div>\n<\/p><\/div>\n<\/div>\n<div class=\"content\">\n<div class=\"direct-answer\">\n    <strong>Key answer:<\/strong> On June 24, 2026 the Supreme Court of Korea treated the three-period rent arrears threshold in Article 10-8 of the Commercial Building Lease Protection Act as the event that <strong>creates<\/strong> the right of termination, so a tenant who unilaterally pays rent after the landlord has declared termination but before the complaint is served does not revive the lease (2024Da320215). Because the reference point is <strong>the moment the landlord declares termination<\/strong>, the opposite sequence \u2014 payment first, declaration afterward \u2014 may leave no ground for termination at all. One day later the Court held that a <strong>rent waiver that is not disclosed through a business registration amendment<\/strong> cannot be asserted against a buyer of the building (2026Da201494).\n  <\/div>\n<div class=\"toc-nav\">\n<p class=\"toc-label\">Contents<\/p>\n<ol>\n<li><a href=\"#sec-1\">1. What did the Supreme Court of Korea settle in June 2026?<\/a><\/li>\n<li><a href=\"#sec-2\">2. At what moment are three periods of arrears measured?<\/a><\/li>\n<li><a href=\"#sec-3\">3. What if the tenant pays after the notice but before service?<\/a><\/li>\n<li><a href=\"#sec-4\">4. What if the tenant pays first and the notice comes later?<\/a><\/li>\n<li><a href=\"#sec-5\">5. Does accepting the payment destroy the right of termination?<\/a><\/li>\n<li><a href=\"#sec-6\">6. Does a history of arrears also block a renewal request?<\/a><\/li>\n<li><a href=\"#sec-7\">7. Does a rent waiver bind a buyer of the building?<\/a><\/li>\n<li><a href=\"#sec-8\">8. Why is business registration the disclosure method?<\/a><\/li>\n<li><a href=\"#sec-9\">9. How is a lease amendment actually disclosed in practice?<\/a><\/li>\n<li><a href=\"#sec-10\">10. What should landlords, tenants, and buyers check?<\/a><\/li>\n<li><a href=\"#sec-faq\">11. Frequently asked questions<\/a><\/li>\n<\/ol><\/div>\n<p class=\"lead-text\">A landlord sues a tenant who is three months behind on rent. Days before the complaint reaches the tenant, part of the arrears lands in the landlord&#8217;s account. Is the lease terminated, or has the problem quietly gone away?<\/p>\n<p class=\"summary-text\">A different situation sits on the other side. A tenant supplied machinery to the building owner on credit. Unable to pay, the owner signed a memorandum saying no rent would be collected. Years later the building went to auction, and the successful bidder demanded the unpaid rent. The tenant produced the memorandum.<\/p>\n<p class=\"context-text\">Both scenarios look favorable to the tenant. Yet in two rulings handed down one day apart, on June 24 and June 25, 2026, the Supreme Court of Korea sided with the landlord and the buyer. The first concerns <strong>when a right of termination arises and when it disappears<\/strong>. The second concerns <strong>how the content of a lease must be disclosed before it can bind a third party<\/strong>. For foreign companies leasing space in the Incheon Free Economic Zone (IFEZ) \u2014 Songdo International Business District, Cheongna International City, and Yeongjong International City \u2014 both points bear directly on how leases are negotiated, documented, and inherited when a building changes hands.<\/p>\n<p><\/p>\n<h2 id=\"sec-1\">What did the Supreme Court of Korea settle in June 2026?<\/h2>\n<p>Two propositions. First, three periods of rent arrears are the <strong>condition that creates<\/strong> the right of termination, so the arrears need not still be outstanding when the declaration of termination reaches the tenant. Second, a change to the lease that favors the tenant cannot be asserted against a buyer of the building unless it has been disclosed through an amendment to the tenant&#8217;s business registration.<\/p>\n<table>\n<thead>\n<tr>\n<th>Item<\/th>\n<th>2024Da320215<\/th>\n<th>2026Da201494<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Date and subject<\/td>\n<td>June 24, 2026 \u2014 delivery of building<\/td>\n<td>June 25, 2026 \u2014 rent<\/td>\n<\/tr>\n<tr>\n<td>Issue<\/td>\n<td>Timing of the three-period arrears test<\/td>\n<td>Enforceability of a rent waiver against a transferee<\/td>\n<\/tr>\n<tr>\n<td>Statutory basis<\/td>\n<td>Commercial Building Lease Protection Act, Article 10-8<\/td>\n<td>Commercial Building Lease Protection Act, Article 3(1)<\/td>\n<\/tr>\n<tr>\n<td>Outcome<\/td>\n<td>Appeal dismissed \u2014 termination valid<\/td>\n<td>Reversed and remanded \u2014 disclosure must be examined<\/td>\n<\/tr>\n<tr>\n<td>Who benefits<\/td>\n<td>Landlords<\/td>\n<td>Buyers and auction purchasers<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/p>\n<h2 id=\"sec-2\">At what moment are three periods of arrears measured?<\/h2>\n<p>At the moment the arrears reach three periods. The test is not reapplied when the declaration of termination arrives.<\/p>\n<p>Article 10-8 of the Commercial Building Lease Protection Act provides that &#8220;if the amount of rent in arrears of the lessee reaches the amount of rent for three periods, the lessor may terminate the contract.&#8221; The Supreme Court of Korea characterized the threshold as a <strong>condition for the creation of the right of termination<\/strong>. Once the condition is met, the right exists, and what happens afterward is a separate question.<\/p>\n<p>In the Court&#8217;s words, &#8220;whether the lessee&#8217;s rent in arrears has reached the amount of rent for three periods is a requirement for the creation of the right of termination, so once the rent in arrears reaches the amount for three periods the right of termination arises immediately, and it is not to be judged as of the time the declaration of termination reaches the lessee, that is, the time the exercise of the right of termination takes effect&#8221; (Supreme Court of Korea, June 24, 2026, 2024Da320215).<\/p>\n<p>Article 10-8 was added to the statute in 2015. Before that, termination for arrears in a commercial lease ran through Article 640 of the Civil Act on a <strong>two-period<\/strong> threshold, and the Supreme Court of Korea confirmed that Article 640 applies to commercial leases governed by the Act (Supreme Court of Korea, July 24, 2014, 2012Da28486). The threshold moved from two periods to three, but the character of the remedy \u2014 a strong right given to the landlord \u2014 did not change.<\/p>\n<p><\/p>\n<h2 id=\"sec-3\">What if the tenant pays after the notice but before service?<\/h2>\n<p>The termination stands. This is the practical core of 2024Da320215.<\/p>\n<p>In Korean litigation a landlord frequently declares termination <strong>inside the complaint<\/strong> rather than by separate notice. Termination then takes effect when the copy of the complaint is served on the tenant. Weeks usually pass between filing and service, and tenants often use that window to push the arrears below the threshold.<\/p>\n<p>That is exactly what happened here. According to the appellate judgment below (Busan District Court, November 28, 2024, 2024Na46880), the landlord filed the complaint on December 13, 2022 stating that arrears as of November 2022 had reached three periods of rent and that the lease was terminated; the tenant paid KRW 8 million on December 26, 2022; and the copy of the complaint was served the next day, December 27, 2022.<\/p>\n<p>The Supreme Court of Korea addressed the sequence directly: &#8220;where the lessor exercises the right to terminate the lease on the ground of arrears of three or more periods, so long as arrears of three or more periods existed at the time of exercise, even if rent was paid unilaterally without the lessor&#8217;s consent before the copy of the complaint containing the declaration of termination was served on the lessee, so that the rent in arrears no longer reached the amount for three periods, it cannot be said that the lessor&#8217;s right of termination is extinguished, absent special circumstances&#8221; (Supreme Court of Korea, June 24, 2026, 2024Da320215).<\/p>\n<p>The phrase to notice is <strong>&#8220;unilaterally without the lessor&#8217;s consent.&#8221;<\/strong> Undoing the landlord&#8217;s right appears to require something on the landlord&#8217;s side. A wire transfer sent by the tenant alone does not erase a right that has already arisen. The appeal was dismissed and the landlord prevailed.<\/p>\n<p><\/p>\n<h2 id=\"sec-4\">What if the tenant pays first and the notice comes later?<\/h2>\n<p>Reverse the order and the outcome is likely to reverse with it. The holding in 2024Da320215 sits under the express condition <strong>&#8220;so long as arrears of three or more periods existed at the time of exercise.&#8221;<\/strong> It answers only the case where the declaration precedes the payment.<\/p>\n<table>\n<thead>\n<tr>\n<th>Item<\/th>\n<th>Sequence 1 \u2014 notice first<\/th>\n<th>Sequence 2 \u2014 payment first<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Order of events<\/td>\n<td>Arrears reach three periods \u2192 <strong>declaration<\/strong> \u2192 payment \u2192 service<\/td>\n<td>Arrears reach three periods \u2192 payment \u2192 <strong>declaration<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Reference point<\/td>\n<td colspan=\"2\" style=\"text-align:center\">Both measured at <strong>the moment of declaration<\/strong>, not at service<\/td>\n<\/tr>\n<tr>\n<td>Arrears at that moment<\/td>\n<td>Three periods or more<\/td>\n<td>Below three periods<\/td>\n<\/tr>\n<tr>\n<td>Result<\/td>\n<td>Termination <strong>valid<\/strong> (2024Da320215)<\/td>\n<td>No statutory ground \u2014 <strong>likely invalid<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>No ruling of the Supreme Court of Korea addresses Sequence 2 head-on. The direction, however, is already visible. Contrasting the two provisions while analyzing a renewal refusal, the Court stated that &#8220;Article 10-8 of the former Commercial Building Lease Protection Act provides that &#8216;if the amount of rent in arrears of the lessee reaches the amount of rent for three periods, the lessor may terminate the contract,&#8217; thereby making <strong>the arrears reaching the amount for three periods at the time of terminating the contract<\/strong> a requirement. In this way the former Act distinguishes termination of a contract from refusal of contract renewal and prescribes different grounds for each&#8221; (Supreme Court of Korea, May 27, 2021, 2020Da263635 and 2020Da263642).<\/p>\n<p>The Court has applied that reference point. Where the tenant had made payment and the landlord declared termination afterward, the Court recalculated the appropriation of payments and held that &#8220;as of May 10, 2022, the rent in arrears serving as the basis for the lessor&#8217;s exercise of the right of termination amounts to only KRW 2.3 million, which falls short of the rent for three periods, the ground for termination under Article 10-8 of the Commercial Building Lease Protection Act,&#8221; and reversed the judgment below (Supreme Court of Korea, October 26, 2023, 2023Da247399).<\/p>\n<p>Lower courts point the same way. The Cheongju District Court held that to terminate under Article 10-8 the arrears must reach three periods of rent <strong>&#8220;at the time of termination,&#8221;<\/strong> excluded a payment the tenant made the day after receiving a demand, and denied the termination because the arrears at that point fell short (Cheongju District Court, October 29, 2021, 2020Gahap589).<\/p>\n<p>Read together, 2024Da320215 tells courts <strong>not to push the reference point later<\/strong>; it does not authorize pushing it earlier. The line remains the moment of declaration, and unilateral payments made after that moment are disregarded. If the arrears were already cured <strong>before<\/strong> that moment, the statutory condition was never satisfied.<\/p>\n<p>The area is not fully settled. The appellate court in 2024Da320215 framed a general rule in language indifferent to sequence, stating that &#8220;so long as the defendant&#8217;s rent in arrears reached the amount for three periods and the right of termination arose in favor of the plaintiff, even if the defendant thereafter paid part of the rent so that the arrears no longer reached the amount for three periods, unless the plaintiff can be regarded as having impliedly waived the right of termination, such as by accepting subsequent rent without objection, the plaintiff&#8217;s right of termination cannot be said to be extinguished,&#8221; citing Supreme Court of Korea, October 22, 1991, 91Da22902 (Busan District Court, November 28, 2024, 2024Na46880). Taken alone, that sentence would keep the right alive in Sequence 2. The Supreme Court of Korea, however, attached the condition <strong>&#8220;so long as arrears of three or more periods existed at the time of exercise,&#8221;<\/strong> which makes it hard to read the ruling as endorsing cases lacking that condition.<\/p>\n<p>The practical lesson is blunt. A landlord should never let matters drift into Sequence 2: <strong>declare termination the moment arrears reach three periods.<\/strong> A tenant, conversely, should clear the arrears below the threshold <strong>before any notice arrives<\/strong>.<\/p>\n<p><\/p>\n<h2 id=\"sec-5\">Does accepting the payment destroy the right of termination?<\/h2>\n<p>If accepted without objection, it can. This is where cases are actually won and lost in both sequences.<\/p>\n<p>The Supreme Court of Korea held that even where a tenant was three or more months in arrears, &#8220;if the lessor, without exercising such right, accepted the rent in question without objection, thereafter the lessor may not terminate the lease or refuse renewal of the lease on that ground&#8221; (Supreme Court of Korea, October 22, 1991, 91Da22902). Applying that rule to the facts, the same judgment confirmed that where &#8220;while the plaintiff lessor was not terminating the contract on that ground, the defendant lessee paid all the rent in arrears and the plaintiff lessor accepted it, the plaintiff may no longer terminate the contract or refuse renewal on that ground.&#8221; One qualification matters: that case arose under the enforcement rules of the former Rental Housing Construction Promotion Act, not under the Civil Act or the Commercial Building Lease Protection Act.<\/p>\n<p>It is precisely this precedent that the appellate court relied on in 2024Da320215, finding that &#8220;in this case the plaintiff cannot be regarded as having accepted rent without any objection after the arrears reached the amount for three periods, so the plaintiff&#8217;s right of termination cannot be said to be extinguished.&#8221; The Supreme Court of Korea upheld that reasoning. The converse follows: where a landlord did pocket the late rent <strong>without objection<\/strong>, the result changes.<\/p>\n<p>Landlords should therefore handle incoming funds carefully.<\/p>\n<ul>\n<li>On confirming the deposit, <strong>notify the tenant in writing that the declaration of termination stands<\/strong>.<\/li>\n<li>State that the money is received not as payment of rent under a continuing lease but as <strong>appropriation toward unjust enrichment for occupation after termination<\/strong>.<\/li>\n<li>Keep the record in a <strong>dated form<\/strong> \u2014 certified mail or a court brief \u2014 rather than an oral exchange.<\/li>\n<\/ul>\n<p>Tenants should recognize that transferring the arrears late is not, by itself, a defense. Curing the arrears <strong>before<\/strong> the threshold is reached, or obtaining a written deferral or installment agreement, is the substantive protection.<\/p>\n<p><\/p>\n<h2 id=\"sec-6\">Does a history of arrears also block a renewal request?<\/h2>\n<p>It does, and it lasts longer than the termination remedy.<\/p>\n<p>Article 10(1)1 of the Commercial Building Lease Protection Act lets a landlord refuse renewal where &#8220;the lessee <strong>has a record of<\/strong> failing to pay rent up to an amount equivalent to the rent for three periods.&#8221; The wording differs from the termination provision, which speaks of arrears that &#8220;reach&#8221; three periods.<\/p>\n<p>The Supreme Court of Korea gave that difference weight: &#8220;in light of the language and purport of the above provisions, if at any time during the lease term the rent was in arrears up to an amount equivalent to three periods, the trust required to accept an extension of the contractual relationship with that lessee has been broken, so the lessor may refuse the request for contract renewal, and it is not necessarily required that rent equivalent to three periods be in arrears at the time the lessee exercises the right to request renewal&#8221; (Supreme Court of Korea, May 13, 2021, 2020Da255429).<\/p>\n<p>Arrears also carry across a renewal. The Court treated arrears that began before renewal and reached the threshold after renewal as a ground for termination (Supreme Court of Korea, July 24, 2014, 2012Da28486). In short, once a tenant has hit the three-period mark, <strong>the blemish follows the tenancy for its remaining life<\/strong>.<\/p>\n<p><\/p>\n<h2 id=\"sec-7\">Does a rent waiver bind a buyer of the building?<\/h2>\n<p>Not if it was never disclosed. The facts of 2026Da201494 are a pattern seen often in practice.<\/p>\n<p>In April 2013 the tenant leased part of a two-story factory building in Siheung for a deposit of KRW 30 million and monthly rent of KRW 400,000, then completed a business registration. In June 2013 the parties revised the lease to a deposit of KRW 100 million, monthly rent of KRW 400,000, and a total leased area of 392.62 square meters. The lease was renewed on two-year cycles.<\/p>\n<p>The problem lay in two memoranda. In August 2013 the owner signed a memorandum promising that, until the outstanding balance on machinery purchased from the tenant on credit was reduced to KRW 120 million, the monthly rent of KRW 400,000 would not be collected from September 2013 but treated as part of the interest on the machinery price. In January 2018 a second memorandum stated that all authority over the factory was entrusted to the tenant without rent. The building was later sold at auction, and the purchaser, having acquired ownership in September 2020, demanded rent.<\/p>\n<p>The appellate court held that the two memoranda had changed the lease into a rent-free lease and that the tenant could assert the waiver against the purchaser, who had succeeded to the landlord&#8217;s position. The Supreme Court of Korea reversed.<\/p>\n<p>The Court held that &#8220;even if the content of a commercial building lease has been changed in the lessee&#8217;s favor, such as by rent being waived through an agreement between lessee and lessor, unless the change has been disclosed, for instance by being recorded in the Commercial Building Lease Status Certificate through an amendment report of the business registration, the lessee cannot assert that change against the new lessor who has acquired the commercial building&#8221; (Supreme Court of Korea, June 25, 2026, 2026Da201494).<\/p>\n<p>The Court added a point worth noting for drafters. As to the August 2013 memorandum, it observed that the document amounted to no more than an agreement to extinguish, to the extent of equal amounts, the owner&#8217;s rent claim and the tenant&#8217;s claim for the machinery price \u2014 claims arising from <strong>different contracts<\/strong> \u2014 and that it was difficult to regard the lease itself as thereby amended. A settlement arrangement resembling set-off is not easily recharacterized as an amendment waiving rent. Memoranda that bundle several transactions together invite exactly this problem.<\/p>\n<p>Because the ruling reverses and remands, the case returns to the Suwon District Court for examination of whether the change was disclosed. The final outcome awaits that decision.<\/p>\n<p><\/p>\n<h2 id=\"sec-8\">Why is business registration the disclosure method?<\/h2>\n<p>Because in a Korean commercial lease the business registration (<em>saeopja deungnok<\/em>) substitutes for a real estate registration as the device that makes the tenancy visible to outsiders.<\/p>\n<p>Article 3(1) of the Commercial Building Lease Protection Act provides that even without registration of the lease, a lease takes effect against third parties from the day after the tenant takes delivery of the building and applies for a business registration. In exchange for granting third-party effect without a registered interest, the statute channels the lease through a public window.<\/p>\n<p>The Supreme Court of Korea has explained that structure consistently. A business registration is &#8220;a method of public notice established so that, for the safety of transactions, third parties may clearly recognize the existence and <strong>content<\/strong> of a lease,&#8221; and whether a given business registration has the effect of giving notice of a particular lease is judged by whether, under general social norms, the existence and content of the lease of that building can be recognized through it (Supreme Court of Korea, June 9, 2016, 2013Da215676). The 2026 ruling cites that precedent directly.<\/p>\n<p>The 2016 ruling went one step further: &#8220;this legal principle applies equally where the lease has been changed or renewed but the lessee failed to file an amendment report of the business registration, so that the content disclosed in the registration status certificate and the like differs from the content of the actual lease.&#8221; Where the record and reality diverge, <strong>the record governs<\/strong>.<\/p>\n<p><\/p>\n<h2 id=\"sec-9\">How is a lease amendment actually disclosed in practice?<\/h2>\n<p>One objection deserves a direct answer. <strong>A Korean business registration certificate does not state the deposit or the rent at all.<\/strong> So how can a business registration disclose the content of a lease?<\/p>\n<p>The answer is that the certificate is not the thing being disclosed. What third parties actually inspect is the <strong>copy of the lease agreement filed with the district tax office<\/strong> and the <strong>Commercial Building Lease Status Certificate<\/strong> (<em>sangga geonmul imdaecha hyeonhwangseo<\/em>) compiled from those filings. The business registration is the channel that causes those documents to accumulate at the tax office.<\/p>\n<h3>The amended agreement must be filed again<\/h3>\n<p>The Supreme Court of Korea set out the statutory basis in the 2026 ruling: under Article 8 of the Value-Added Tax Act and its Enforcement Decree, &#8220;a business operator who has leased business premises must submit, to the head of the tax office, an application for business registration <strong>with a copy of the lease agreement attached<\/strong>, and where there is a change in the deposit, rent, or lease term, must submit a <strong>business registration amendment report<\/strong>&#8221; (Supreme Court of Korea, June 25, 2026, 2026Da201494).<\/p>\n<p>The 2016 ruling spells out the inspection side. An interested party may request from the competent head of the district tax office &#8220;the date the lease was changed or renewed and the deposit, rent, and lease term as changed accordingly,&#8221; and may accordingly &#8220;inspect the relevant items among the business registration application, the business registration amendment report and their attachments, and the book recording fixed dates, or obtain a certified copy of the registration status certificate&#8221; (Supreme Court of Korea, June 9, 2016, 2013Da215676).<\/p>\n<h3>Three steps in practice<\/h3>\n<table>\n<thead>\n<tr>\n<th>Step<\/th>\n<th>What to do<\/th>\n<th>Statutory basis<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>1. Amendment report<\/td>\n<td>File a <strong>business registration amendment report<\/strong> with the registration certificate and a <strong>copy of the amended lease agreement<\/strong><\/td>\n<td>Value-Added Tax Act Article 8(8); Enforcement Decree Article 14(1)7 and (2), Article 11(3)<\/td>\n<\/tr>\n<tr>\n<td>2. Fixed date<\/td>\n<td>Apply for a <strong>new fixed date stamp<\/strong> on the amended agreement (may be requested together with the amendment report)<\/td>\n<td>Commercial Building Lease Protection Act Enforcement Decree Article 3(3); Fixed Date Rules Article 2(3)<\/td>\n<\/tr>\n<tr>\n<td>3. Verification<\/td>\n<td>Request inspection or issuance of the <strong>Commercial Building Lease Status Certificate<\/strong><\/td>\n<td>Commercial Building Lease Protection Act Article 4(3); Enforcement Decree Article 3-3; Fixed Date Rules Article 6(1)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Article 14(1)7 of the Value-Added Tax Act Enforcement Decree lists as a ground for an amendment report the case where &#8220;the lessor, the leased object and its area, the deposit, the rent, or the lease term is changed,&#8221; and Article 14(2) requires the attachments under Article 11(3) to be submitted again with that report. Those attachments include the <strong>copy of the lease agreement<\/strong>, plus a floor plan of the leased portion where only part of a building is leased. The tax office reissues the corrected registration certificate within two days of the filing.<\/p>\n<p>The fixed date is refreshed as well. Enforcement Decree Article 3(3) provides that &#8220;where a lease has been changed or renewed, the competent head of the tax office shall grant a new fixed date upon the lessee&#8217;s application,&#8221; and the application may be made together with the amendment report. Rule 6(1) of the Fixed Date Rules then provides that &#8220;the provision of lease information shall be effected by the competent head of the tax office allowing inspection of, or issuing, the Commercial Building Lease Status Certificate in the form of Attached Form No. 6.&#8221; That certificate is the window third parties actually look through.<\/p>\n<p>If the parties agree to waive rent outright, the amendment report must attach the <strong>amended agreement or the waiver memorandum<\/strong> before the rent field on the certificate changes. A memorandum kept in a drawer changes nothing visible from outside.<\/p>\n<h3>One missed filing turned a favorable deal into a loss<\/h3>\n<p>That is precisely what happened in the 2016 case. The tenant agreed in October 2007 to a rent waiver but never filed an amendment report. The registration status certificate continued to show <strong>monthly rent of KRW 2 million<\/strong>, and the deposit converted from those figures came to KRW 350 million, exceeding the then-applicable ceiling of KRW 240 million. Opposability was denied.<\/p>\n<p>The sting lies in the counterfactual. Had the amendment been filed, the rent would have been zero, the converted deposit would have dropped to KRW 150 million, and the tenant would have fallen within the statute&#8217;s protection. <strong>A single missed filing turned an agreement made in the tenant&#8217;s favor into the reason the tenant lost.<\/strong><\/p>\n<h3>Leases above the converted deposit ceiling are different<\/h3>\n<p>A trap deserves attention here. <strong>Where the converted deposit exceeds the statutory ceiling, the fixed date and status certificate system described above does not apply at all.<\/strong><\/p>\n<p>The proviso to Article 2(1) of the Commercial Building Lease Protection Act excludes leases exceeding a deposit amount prescribed by Presidential Decree, and Enforcement Decree Article 2 sets those ceilings at <strong>KRW 900 million in Seoul, KRW 690 million in overconcentration control regions outside Seoul and in Busan, KRW 540 million in other metropolitan cities, Sejong, Paju, Hwaseong, Ansan, Yongin, Gimpo, and Gwangju, and KRW 370 million elsewhere<\/strong>. The converted deposit (<em>hwansan bojeunggeum<\/em>) is the deposit plus <strong>one hundred times the monthly rent<\/strong>.<\/p>\n<p>Article 2(3) then lists the provisions that still apply above the ceiling: <strong>&#8220;Article 3, Article 10(1), (2) and the main text of (3), Articles 10-2 through 10-9, Article 11-2, and Article 19.&#8221;<\/strong> <strong>Article 4 is not on that list.<\/strong><\/p>\n<table>\n<thead>\n<tr>\n<th>Provision<\/th>\n<th>Subject<\/th>\n<th>Above the ceiling<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Article 3<\/td>\n<td>Opposability (delivery plus business registration)<\/td>\n<td><strong>Applies<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Article 10-8<\/td>\n<td>Termination for three periods of arrears<\/td>\n<td><strong>Applies<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Article 4<\/td>\n<td>Fixed date and provision of lease information<\/td>\n<td><strong>Does not apply<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>So for a lease above the ceiling, <strong>opposability still exists and the disclosure reasoning of 2026Da201494 can still bite, yet the route to obtain a fixed date or inspect the Commercial Building Lease Status Certificate is closed.<\/strong> What remains is the <strong>copy of the lease agreement attached to the business registration application or amendment report and held at the tax office<\/strong>. The Supreme Court of Korea has noted that &#8220;where a business operator has leased business premises, a copy of the lease agreement is required to be attached to the business registration application, so that inspection or provision of matters concerning the lease is to be made by reference to the entries in the attached lease agreement&#8221; (Supreme Court of Korea, September 25, 2008, 2008Da44238).<\/p>\n<p>That said, <strong>we found no ruling of the Supreme Court of Korea or authoritative interpretation addressing head-on how a lease amendment must be disclosed where the converted deposit exceeds the ceiling.<\/strong> The 2026Da201494 case itself fell within the ceiling, with a deposit of KRW 100 million and monthly rent of KRW 400,000 producing a converted deposit of KRW 140 million. Practical responses are as follows.<\/p>\n<ul>\n<li><strong>Tenants<\/strong> \u2014 regardless of the ceiling, file the <strong>amendment report and leave a copy of the amended agreement at the tax office<\/strong>. Even where no fixed date is available, the attachment remains on file.<\/li>\n<li><strong>Buyers and auction purchasers<\/strong> \u2014 where no status certificate is available, <strong>demand the complete original lease documents and every amendment or side agreement from the seller<\/strong>, and obtain a written confirmation of lease terms from the tenant directly.<\/li>\n<li><strong>Landlords<\/strong> \u2014 before a sale, compile any side arrangements with the tenant and <strong>disclose them to the buyer in writing<\/strong> to reduce the risk of a later dispute.<\/li>\n<\/ul>\n<p><\/p>\n<h2 id=\"sec-10\">What should landlords, tenants, and buyers check?<\/h2>\n<p>Both rulings converge on a single question: <strong>was it put on the record?<\/strong><\/p>\n<table>\n<thead>\n<tr>\n<th>Party<\/th>\n<th>Checklist<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Landlord<\/td>\n<td>Calculate and record the date arrears reached three periods, and <strong>declare termination at that moment<\/strong>, since payment made first can remove the statutory ground. Use a method that proves receipt. Reserve objection when accepting later deposits.<\/td>\n<\/tr>\n<tr>\n<td>Tenant<\/td>\n<td>Cure arrears before they reach three periods, and in any event <strong>before a notice arrives<\/strong>. Put deferral or installment arrangements in writing. File a business registration amendment immediately when deposit, rent, or term changes.<\/td>\n<\/tr>\n<tr>\n<td>Buyer or auction purchaser<\/td>\n<td>Before closing, inspect the Commercial Building Lease Status Certificate for the disclosed deposit, rent, term, and amendment history. Undisclosed side agreements are, in principle, not inherited. Above the ceiling, verify directly with both parties.<\/td>\n<\/tr>\n<tr>\n<td>All parties<\/td>\n<td>Do not mix settlements from separate transactions into a single memorandum. Say plainly whether the rent is being <strong>waived<\/strong> or <strong>set off<\/strong> against another claim.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>For foreign-invested companies in the Incheon Free Economic Zone (IFEZ) \u2014 Songdo International Business District, Cheongna International City, and Yeongjong International City \u2014 the third row carries real weight. Buildings in these districts change hands often, and our attorneys handling commercial lease delivery and rent claims have repeatedly seen the same outcome: however clear a side agreement may be between the original parties, it loses its force in front of a new owner if it was never disclosed.<\/p>\n<p><\/p>\n<h2 id=\"sec-faq\">Frequently asked questions<\/h2>\n<div class=\"faq-item\">\n<p class=\"faq-q\">Q. When may a landlord in South Korea terminate a commercial lease for unpaid rent?<\/p>\n<p>A. Article 10-8 of the Commercial Building Lease Protection Act allows the landlord to terminate once the tenant&#8217;s rent arrears reach three periods of rent. The Supreme Court of Korea treats that threshold as the event that creates the right of termination, so the right arises immediately when arrears reach three periods (Supreme Court of Korea, June 24, 2026, 2024Da320215). The landlord must still declare termination, and that declaration takes effect when it reaches the tenant.<\/p>\n<\/p><\/div>\n<div class=\"faq-item\">\n<p class=\"faq-q\">Q. Can a tenant stop the termination by paying the arrears before the complaint is served?<\/p>\n<p>A. No. The Supreme Court of Korea held that where three or more periods of arrears existed at the time the landlord exercised the right, the right of termination is not extinguished merely because the tenant unilaterally paid rent, without the landlord&#8217;s consent, before the copy of the complaint containing the declaration of termination was served, absent special circumstances (Supreme Court of Korea, June 24, 2026, 2024Da320215).<\/p>\n<\/p><\/div>\n<div class=\"faq-item\">\n<p class=\"faq-q\">Q. What if the tenant pays first and the landlord declares termination afterward?<\/p>\n<p>A. The termination is likely to fail. The 2024Da320215 ruling is expressly conditioned on three or more periods of arrears existing at the time the right was exercised. The Supreme Court of Korea has stated that Article 10-8 requires the arrears to reach three periods of rent at the time of termination (Supreme Court of Korea, May 27, 2021, 2020Da263635 and 2020Da263642), and it reversed a lower court that had upheld a termination where the arrears fell short of three periods as of the termination date (Supreme Court of Korea, October 26, 2023, 2023Da247399). No ruling has addressed this exact sequence head-on.<\/p>\n<\/p><\/div>\n<div class=\"faq-item\">\n<p class=\"faq-q\">Q. Does accepting the late payment destroy the landlord&#8217;s right of termination?<\/p>\n<p>A. It can. The Supreme Court of Korea held long ago that where the landlord did not exercise the right and accepted the rent without objection, the landlord may no longer terminate or refuse renewal on that ground (Supreme Court of Korea, October 22, 1991, 91Da22902). In the 2024Da320215 case the appellate court found that the landlord could not be said to have accepted the rent without objection, and the Supreme Court of Korea upheld that finding. Landlords should therefore reserve their objection in writing when late payments arrive.<\/p>\n<\/p><\/div>\n<div class=\"faq-item\">\n<p class=\"faq-q\">Q. A landlord waived our rent by side letter. The building was sold at auction. Can we assert the waiver against the buyer?<\/p>\n<p>A. Not unless the change was disclosed. The Supreme Court of Korea held that even where the lease terms were changed in the tenant&#8217;s favor, such as a rent waiver, the tenant cannot assert that change against the new landlord who acquired the building unless the change was disclosed, for example by being recorded in the Commercial Building Lease Status Certificate through an amendment to the business registration (Supreme Court of Korea, June 25, 2026, 2026Da201494).<\/p>\n<\/p><\/div>\n<div class=\"faq-item\">\n<p class=\"faq-q\">Q. The business registration certificate does not show the deposit or the rent. How does it disclose anything?<\/p>\n<p>A. What is disclosed is not the certificate itself but the copy of the lease agreement filed with the district tax office and the Commercial Building Lease Status Certificate compiled from it. A tenant registering a leased business premises must attach a copy of the lease agreement to the application, and must file an amendment report when the deposit, rent, or lease term changes. An interested party may then ask the competent head of the district tax office to inspect or issue the status certificate (Supreme Court of Korea, June 25, 2026, 2026Da201494; Supreme Court of Korea, June 9, 2016, 2013Da215676).<\/p>\n<\/p><\/div>\n<div class=\"faq-item\">\n<p class=\"faq-q\">Q. What exactly must a tenant file after a rent waiver in South Korea?<\/p>\n<p>A. File a business registration amendment report with the district tax office having jurisdiction over the business premises, attaching the amended lease agreement or the waiver memorandum, and apply for a new fixed date stamp on the amended agreement. Only then does the rent field of the Commercial Building Lease Status Certificate change. Keeping the memorandum in a drawer changes nothing that a third party can see.<\/p>\n<\/p><\/div>\n<div class=\"faq-item\">\n<p class=\"faq-q\">Q. Does the disclosure system apply to leases above the converted deposit ceiling?<\/p>\n<p>A. No. Article 2(3) of the Commercial Building Lease Protection Act lists the provisions that still apply to leases above the ceiling, namely Article 3, Article 10(1), (2) and the main text of (3), Articles 10-2 through 10-9, Article 11-2, and Article 19. Article 4, which governs fixed date stamps and the provision of lease information, is not on that list. Opposability under Article 3 and termination for three periods of arrears under Article 10-8 still apply, but the fixed date and status certificate system does not, so buyers must verify the lease terms directly with the landlord and the tenant.<\/p>\n<\/p><\/div>\n<p class=\"closing\">This article explains general principles drawn from published rulings of the Supreme Court of Korea. The outcome of any particular matter turns on the wording of the lease, the record of arrears and payments, and what has been disclosed. For a commercial lease delivery or rent dispute in South Korea, please contact Atlas Legal.<\/p>\n<div class=\"author-box\">\n    <img decoding=\"async\" class=\"author-avatar\" src=\"https:\/\/atlaw.kr\/wp-content\/uploads\/2022\/12\/\uae40\ud0dc\uc9c4-1.png\" alt=\"Taejin Kim, Managing Partner \u2014 Atlas Legal\"><\/p>\n<div class=\"author-text\">\n<div class=\"author-section-label\">About the Author<\/div>\n<div class=\"author-name\">Taejin Kim | Managing Partner<\/div>\n<div class=\"author-detail\">Corporate Counseling, Corporate Disputes, White-Collar Crime<\/div>\n<div class=\"author-detail\">Former Public Prosecutor | Judicial Research and Training Institute, 33rd Class<\/div>\n<div class=\"author-detail\">Korea University LL.B. &amp; LL.M. (Criminal Law), University of California, Davis LL.M.<\/div>\n<div class=\"author-detail\">Atlas Legal | Incheon Songdo, South Korea<\/div>\n<p>      <a class=\"author-link\" href=\"https:\/\/atlaw.kr\" target=\"_blank\" rel=\"noopener noreferrer\">Visit Atlas Legal Homepage \u2192<\/a>\n    <\/div>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Two Supreme Court of Korea rulings from June 2026 explain when a landlord may terminate a commercial lease for three periods of rent arrears, and why a rent waiver never disclosed through a business registration amendment cannot bind a buyer of the building.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_kadence_starter_templates_imported_post":false,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[17],"tags":[909,906,727,908,907],"class_list":["post-1891","post","type-post","status-publish","format-standard","hentry","category-civil","tag-business-registration","tag-commercial-lease","tag-korean-real-estate","tag-lease-termination","tag-rent-arrears"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Commercial Lease Rent Arrears in South Korea | Atlas 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