NEW REAL ESTATE LAW CREATES CONFLICT

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It's been less than a week since the new real estate law was passed. But conflict between landlords and tenants over the renewal of apartment rental contracts and rental fees is escalating by the day. The government has vowed to enact supplementary measures, but both tenants and landlords seem to be unhappy about the current situation.

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​This man who rents an apartment in southern Seoul was notified by his landlord just two months prior to the end of his lease that his apartment deposit would be raised. The landlord wanted to raise the deposit by 350 million won. The tenant asked that the deposit be only increased by 5 percent in line with the new real estate law, but his landlord's response was quite unexpected.

[Soundbite] (APARTMENT TENANT(VOICE MODIFIED)) : "The landlord said her immediate family wanted to move in. She promised to cover my moving expenses and asked me to set the moving date."

If what the landlord said was untrue, then the tenant would have every right to demand compensation. However, it is difficult to find out if the landlord was telling the truth. The government has pledged to revise the law so that tenants can find out who is going to move into their apartment. But critics say it would be too late.

[Soundbite] (APARTMENT TENANT(VOICE MODIFIED)) : "Tenants can demand compensation only after being kicked out of the apartment. I'll have to move out anyway."

Landlords also find the current situation cumbersome. One apartment owner signed a contract with a new tenant because the previous one wanted to move out. But right after the new real estate law was enacted, the previous tenant all of a sudden demanded the lease contract be extended. Although landlords are allowed to refuse contract renewals in this situation, this landlord decided to just let the previous tenant go by covering the tenant's moving expenses.

[Soundbite] (LANDLORD(VOICE MODIFIED)) : "To file an eviction suit, you need to pay a deposit of at least five million won, plus damages for breach of contract to a new tenant. The lawsuit also takes a lot of time."

The conflict between landlords and tenants keeps escalating. Members of one real estate online community even share tips on how to get rid of tenants. The government acknowledged that these conflicts due to the new law were inevitable, but pledged to enact supplementary measures.