A bipartisan group of National Assembly lawmakers introduced a bill Thursday that would cap realtor commissions on jeonse lease renewals at 0.3 percent of the deposit value, down from negotiated rates that often hit 0.5 percent when landlords reset keys before Chuseok travel.
What the bill changes
The measure amends the Brokerage Act to treat renewals with unchanged tenants as a distinct category, prohibiting side payments labeled “documentation fees.” Landlords could still hire agents for new tenants at market rates, but automatic renewals would face the cap unless square footage or deposit amounts change by more than ten percent. Violations would trigger fines up to five million won and suspension from the Korea Association of Realtors listing system.
Sponsors from the People Power Party and Democratic Party of Korea said the cap targets September churn, when families extend two-year jeonse contracts before holiday trips. They cited Seoul Metropolitan Government survey data showing average renewal commissions near 1.2 million won on deposits around 300 million won—cash many tenants pay on top of lump-sum deposits.
Whip count and committee path
The bill heads to the Land, Infrastructure and Transport Committee, where chair staff expect a hearing in early October. ruling party leadership has not whipped the vote; tenant groups pack more electoral weight in capital districts than realtor associations do in provincial strongholds. Opposition lawmakers from Gyeonggi pledged support if a grandfather clause protects small brokerages in rural counties where renewal volume is thin.
Realtor lobbyists argue renewals still require market comparisons and lien checks; they want a 0.4 percent compromise with inflation indexing. Ministry of Land officials remained neutral publicly but briefed lawmakers that jeonse fraud cases often hide in renewal paperwork—a risk if caps push agents underground.
What happens next
If committee markup survives filibuster threats, floor action could land before the November budget session. Tenant unions plan rallies at Yeouido if leadership delays; realtors threaten constitutional challenge on fee-setting. For now, the calendar—not the whip—is the story: Chuseok leases signed this month will still pay old rates unless the bill races through an extraordinary session lawmakers have not yet called.
Market reaction
Online listing platforms briefly advertised “renewal packages” bundling legal review with brokerage; consumer agencies warned that bundling could evade the cap if priced as separate SKUs. Lawmakers added language clarifying that itemized fees above the threshold count toward the cap—a drafting fix tenant lawyers demanded after reviewing early drafts.
Landlords in Gangnam said they may shift to shorter jeonse terms to keep agents on new-tenant commissions, a loophole sponsors vowed to monitor through ministry reporting. The politics are messy because housing is both shelter and savings vehicle; the bill does not touch deposit interest, only the friction tax on staying put.
