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TitleAmendments to the Commercial Building Lease Protection Act, Mandatory Disclosure of Management Fees2025-10-27 16:05
Writer Level 10

Blocking Rent Increase Controversy and Strengthening Transparency in Commercial Management Fees

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On the 26th, the National Assembly passed the amendment to the Commercial Building Lease Protection Act with unanimous approval from all 258 members present. The core of this amendment is the requirement that management fees be clearly disclosed in commercial lease agreements. Recently, there have been a series of cases in which some commercial buildings have raised rents in the name of management fees, and conflicts between tenants and landlords have been growing.


The National Assembly has pushed for institutional reform to prevent such indirect rent increase practices and to strengthen the transparency of the standards for charging commercial management fees.


Management fee details are mandatory upon request… even specified in the contract.


According to the amendment, landlords must provide detailed information when tenants request management fee details. Furthermore, the amendment requires that management fee items be specifically stated in the standard lease agreement prepared by the Ministry of Justice. Accordingly, the standards for calculating management fees when signing a commercial lease contract are expected to become clearer, and the controversy over rent increases is expected to decrease.


However, there is talk in the industry that “the lack of legal enforcement may reduce effectiveness.” There is no separate penalty provision for not disclosing management fee details, so it remains to be seen whether the system will function properly in the field.


Experts say, “This revision is the first step toward establishing a trust-based contract culture for both landlords and tenants.” He emphasized that “as important as the legal system is the establishment of transparent management practices in the field.”



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