The Commercial Building Lease Protection Act does not apply to all leases, but only applies to cases where the converted deposit is less than the standard amount. However, in some cases, the Commercial Building Lease Protection Act applies even if the converted deposit is more than the standard amount (Article 2, Paragraph 3 of the Commercial Building Lease Protection Act). Therefore, there is no need to think that you cannot receive any protection just because you rent a commercial space with a high rent or security deposit.
Below, we will look at the first part of the information that applies regardless of the amount of the conversion deposit, the counterattacking power.
concept of counterforce
If a commercial space is leased and the building owner later sells the commercial space to someone else, does the lessee have to vacate the building?
Under civil law, a lease contract is valid only between the contracting parties. Therefore, a person other than the contracting party, that is, the new building owner, cannot claim rights under the lease contract, and according to the principles of civil law, the building must be vacated. However, because this is too harsh a result for commercial tenants, the Commercial Building Lease Protection Act has special provisions to protect commercial tenants.
In other words, when a commercial lessee takes delivery of a leased building and applies for business registration, he or she can claim rights under the lease contract from the next day to a third party (Article 3, Paragraph 1 of the Commercial Building Lease Protection Act), and in this case, the leased building can be claimed. The person who purchased the property (including those who inherited other rights to lease) is deemed to have inherited the status of the lessor (Article 3, Paragraph 2 of the Commercial Building Lease Protection Act).
Therefore, from the day after receiving the leased building and completing the application for business registration, even if the building owner disposes of the leased building, the leased building can be used as before. This effect is called the opposing force of the lease.
Whether or not countervailing power is recognized in cases where the conversion deposit amount stipulated in the Enforcement Decree is exceeded?
As we have seen, the Commercial Building Lease Protection Act stipulates that a lessee can claim the right to lease against a third party if the lessee satisfies the requirements of [delivery of the building + application for business registration].
The problem is that the Commercial Building Lease Protection Act stipulates that it only applies when the amount of the converted deposit is less than a certain amount, and if the amount of the converted deposit exceeds the amount set by the enforcement ordinance, the Commercial Building Lease Protection Act does not apply, so in principle, opposition arises. There is a problem with not doing it.
In order to solve this problem, the Commercial Building Lease Protection Act stipulates that opposition occurs only if certain requirements are met, regardless of the amount of the converted deposit (Article 2, Paragraph 3 of the Commercial Building Lease Protection Act).
Therefore, even if the amount of the converted deposit is large, such as when the rent of the building you are renting exceeds 10 million won, the right to oppose is recognized as long as the requirements of [delivery of the building + application for business registration] are met, and the building owner changes. Even so, there is no need to worry about vacating the building.
Attorney Sunjin Kim has been mediating franchise disputes based on coexistence for the past 10 years and is working to restore the franchise to its original state. KLF handles nearly 100 franchise lawsuits every year and is Korea's top franchise-specialized law firm that serves as an advisor to several franchise companies.
KLF Franchise Law Firm Room 205, 2nd floor, 151 Seochojungang-ro, Seocho-gu, Seoul 02-738-9600
