Call
Book a Visit
Blog
YouTubePRACTICE AREASLaw Firm Yulmaru
Commercial key money in Busan: protecting your chance to recover it
From 6 months before the lease ends until it ends, the landlord may not obstruct the tenant from receiving key money from a new tenant the tenant found (Commercial Building Lease Protection Act, Article 10-4). A tenant harmed by obstruction must claim damages within 3 years from the end of the lease.
Even if the landlord blocks it, the law protects your chance to recover key money
From 6 months before the lease expires until it ends, the landlord may not obstruct the tenant from receiving key money from a new tenant the tenant has found. If the landlord did, you can claim damages.
The questions are whether the landlord's conduct was obstruction and whether there was a valid ground to refuse. We also handle key money disputes between outgoing and incoming tenants, and a Law Firm Yulmaru attorney handles the case personally from the start.
To consult in Changwon or Seoul: Changwon Office · Seoul Office
How your case proceeds
Check timing
We confirm the expiry date and protection period from the contract
Introduce a new tenant
After signing the key money contract, notify the landlord
Secure evidence
Keep the refusal on record by text or certified letter
Claim damages
File within 3 years from the end of the lease
Key money protection at a glance
| Item | Standard |
|---|---|
| Protection period | From 6 months before the lease expires until it ends |
| Cap on damages | The lower of the agreed key money and the key money at the end of the lease |
| Claim deadline | 3 years from the date the lease ended |
| Excluded from protection | Grounds for refusing renewal such as 3 periods of unpaid rent; premises that are part of a large-scale or quasi-large-scale store |
Basis: Commercial Building Lease Protection Act, Articles 10, 10-4, and 10-5
Key Money Frequently Asked Questions
QDo I have to bring in a new tenant before a busan commercial key money lawyer can file a claim?
As a rule, damages can be claimed when the tenant introduces a new tenant and the landlord refuses or obstructs a lease with that person (Commercial Building Lease Protection Act, Article 10-4(1)). Even if the landlord said they would not sign with anyone you bring, the basic step is to record that statement by text or certified letter and keep records of introducing a new tenant.
QThe landlord refuses the new tenant, saying the building will be rebuilt. Do I lose my key money?
Following a reconstruction plan whose timing and duration were specifically disclosed at signing, a risk of safety accidents, or demolition or reconstruction under other laws are grounds for refusing renewal, and key money protection does not apply (Commercial Building Lease Protection Act, Article 10(1)7 and the proviso to Article 10-4(1)). Other reconstruction plans are not such a ground, so we check the contract for what was disclosed at signing.
QThe landlord rejects the person I brought, saying they lack the means. Is that a valid reason?
If the new tenant lacks the means to pay the deposit or rent, the landlord's refusal is treated as having a valid reason (the same Act, Article 10-4(2)1). The tenant must give the landlord the information they know about the new tenant's means and ability to perform (the same Article, paragraph 5), so records of passing the new tenant's income and funding documents to the landlord matter in the dispute.
QHow is the key money amount decided? Is it the amount in my contract with the new tenant?
The cap on damages is the lower of the key money the new tenant agreed to pay and the key money at the end of the lease (the same Act, Article 10-4(3)). The court sets the key money at the end of the lease by appraising tangible and intangible value such as business facilities, customers, and location advantages (the same Act, Article 10-3), so keep sales records, facility investment records, and the key money contract.
QDo shops in traditional markets or inside department stores get key money protection?
Premises that are part of a large-scale or quasi-large-scale store, and premises that are state or public property, are excluded from key money protection (the same Act, Article 10-5). Traditional markets, however, are an exception and are protected even if they qualify as large-scale stores, while for shops inside department stores or large supermarkets we check the lease and the building registration to see whether the exclusion applies.
QI heard my lease is outside the Commercial Building Lease Protection Act because the deposit is large. Is my key money unprotected too?
It is protected. Even for leases whose converted deposit exceeds the Enforcement Decree threshold, opposability, the renewal request, key money protection, and termination for 3 periods of unpaid rent still apply (Commercial Building Lease Protection Act, Article 2(3)). What does not apply are rules such as the minimum term, the cap on rent increases, and the priority repayment right, so the size of the deposit is not an obstacle for a busan commercial key money lawyer bringing a key money claim.