Residence lease contract for foreigners will be introduced starting from next year. This new turn will greatly improve residence conditions for foreigners by modifying the previous full payment in advance to money deposit of 3 months. 
According to the Korea Investment Service Center and MOCIE (Ministry of Commerce, Industry and Energy) on Oct. 23, 7 improvement plans have been established during a meeting for residence conditions. 
The residence lease culture in Korea is that a new resident has to be move in for the previous resident to receive his/her deposit money, regardless of the expiration of the lease contract. This kind of lease method relies on customs and has a higher risk of dispute than contracts. 
To improve the existing custom of the resident owner receiving 2 years worth of rent in advance, a standard lease contract will include matters of depositing only 3~6 months and then paying rent as in advanced countries. 
Real estate agencies that demand excessive commission will be pressed by administrative measures. 
Real estates accorded with specific conditions such as the ability to communicate in English and are subscribed to indemnity insurance will be chosen to take charge of foreign resident matters. 
Applications for lease guarantee insurance for foreigners will be extended from the current 165m2 to 330m2 and to prevent resident owners from loss by rent delays, a loss mortgage loan will also be established. 
In addition, a tax law to promote foreigners’ rental house construction for nongovernmental organs will be amended sometime next year and a construction project plan will be established for to build rental houses for foreigners to start moving into in 2008. 
Source : Yonhap News Agency, Oct. 23, 2003