"Lease Renewal" Disputes Surge as Landlords Move In; Already Surpass Last Year's Total

131 Mediation Requests Filed by July
Seoul Sees 3.7-Fold Surge; Increases Across the Capital Area
Contract Renewal Request Rate Drops to 40% Range This Year
Tenants Opt to Hold Out Instead of Moving Amid Jeonse Shortage

Due to policies tightening the requirements for actual residence in real estate and the impact of tax reforms, the number of landlord-tenant disputes had already surpassed the total figure for last year by July 2026, as more landlords have opted to move into their properties. With the supply of jeonse rental listings dwindling, tenants are running out of relocation options and are holding on to their current homes, resulting in a sharp increase in disputes over contract renewals. Cases where lease extensions occur through mutual agreement between landlord and tenant, rather than exercising the official lease renewal right, are also on the rise.

According to the Korea Real Estate Board on September 16, the number of dispute mediation requests relating to "lease renewal and termination" reached 131 between January and July this year, exceeding the total of 122 for all of last year. Compared with 46 cases in 2021, the figure has nearly tripled over the past five years. By region, the increase is especially pronounced in Seoul and Gyeonggi Province: mediation requests in Seoul jumped 3.7 times, while those in Gyeonggi Province nearly doubled.

The most common issue among lease disputes is whether tenants use their right to request contract renewal. Under current tenancy laws, tenants can invoke this right once to demand a two-year extension, and landlords may only raise rents by up to 5% if this right is exercised. However, if tenants and landlords agree to renew outside this official right, the rent cap does not apply.

Kim Junhyung, Professor of Real Estate at Myongji University, stated, "With the simultaneous rise in property purchase prices, jeonse deposits, and monthly rents—the so-called 'triple increase'—jeonse prices have climbed to levels that make it difficult for tenants to find available housing nearby, so disputes are inevitable."

Recently, with the much stricter actual residence requirement for long-term holding special tax deductions on the sale of a single home, more landlords are trying to move in themselves to gain tax benefits, resulting in the eviction of existing tenants and a surge in disputes. In the face of a shrinking supply of jeonse units, tenants are choosing to hold out and avoid moving as much as possible. Tensions have especially risen in cases where tenants, having implicitly renewed with no written contract, are suddenly told at the end of the term—or after the landlord claims intent to move in—that the property will instead be leased to a third party. Additionally, with fewer jeonse properties available, it has become more common for tenants and landlords to renegotiate and renew contracts through mutual agreement—thus avoiding the 5% rent cap of the official renewal right. This trend is being attributed to tenants' preference to stay put and endure the shortage.

Based on the transaction disclosure system of the Ministry of Land, Infrastructure and Transport, in Seoul, the use of the official contract renewal request in apartment lease renewals hovered around 50% in November last year but has dropped to the low 40% range in 2026. In contrast, the share of general (mutual agreement) renewals has risen, reaching 60% last month and 60.7% as of September 15.

The underlying reason for the shift from exercising the official renewal right—with its 5% rent increase cap—to general mutual renewals, is the acute shortage of jeonse properties. According to real estate big data platform Asil, as of this day, Seoul had 20,357 listed jeonse apartments, down 12.2% from 23,164 a year earlier. With new jeonse listings so hard to find, even tenants who have already used up their official renewal right are increasingly seeking to stay in their homes by directly negotiating the rent with the landlord.

The atmosphere is much the same among real estate professionals. An employee at a real estate agency in Dongdaemun District, Seoul, noted, "Over the past year, we've noticed a clear decline in the use of contract renewal rights." A licensed broker in Nowon District also commented, "Since jeonse supply is extremely limited, those who've already used their renewal right tend to opt for general renewals to remain in their homes."

In the market, this dynamic is expected to further deplete available jeonse listings and intensify conflicts between landlords and tenants. One local real estate agent observed, "As current occupants try to stay longer, jeonse units are becoming even scarcer, creating a vicious cycle," adding, "Unless there's a compelling reason, tenants will try to stay on—by any means, whether it's the official renewal right or a mutual agreement."

Kim Deokrae, Head of the Housing Research Division at the Housing Industry Research Institute, commented, "Mobility constraints are extremely high right now. If tenants could move out and find many available rental choices, they might carefully consider whether or not to exercise their renewal right. But in the current situation, they're saving it instead." Kim explained that tenants perceive it as safer to hold onto their right to request renewal so they can use it two years later if circumstances remain the same.

Kim Jekyung, Director of Toome Real Estate Consulting, added, "Tenants trying to remain in their existing homes means there is little incentive for new listings to emerge, stalling market turnover. As a result, tension between landlords and tenants is rising." Kim continued, "Fearing rapid price hikes, some tenants are willing to accept modest rent increases now and save their official renewal right for later. A true surge in jeonse prices is likely to hit during the autumn moving season."

This content was produced with the assistance of AI translation services.