Korea Housing & Urban Guarantee Corporation (HUG) said on the 17th that if a rental business operator signs a lease electronically through the Ministry of Land, Infrastructure and Transport real estate transaction electronic contract system (IRTS) and applies for lease deposit guarantee, the guarantee fee will be discounted by 10%.
An electronic contract is a system in which real estate transaction and lease agreements are concluded online in an electronic manner instead of on paper, and in the case of electronic lease contracts, the affixing of a fixed date and the lease report are processed automatically.
When rental business operators use electronic contracts, in addition to the guarantee fee discount, they can omit submitting documents such as the "status of fixed-date assignment," which had to be submitted to verify whether the lease agreement was falsified.
Tenants also see their guarantee fee burden eased. Under relevant laws and regulations, tenants must bear 25% of the guarantee fee for lease deposit guarantees.
The guarantee fee discount will apply to applications for lease deposit guarantees filed on or after the 29th of this month.
Acting President Yun Myeong-gyu of HUG said, "Through the implementation of this guarantee fee discount system, we will work to reduce the burden on rental business operators, including reducing guarantee fees and omitting document submission, and to foster a transparent lease market," adding, "Going forward, the corporation will continue to take the lead in providing convenience to rental business operators and promoting electronic contracts."