Article 1 (Purpose) The purpose of this Ordinance is to support tenants of commercial buildings to enable them to perform business activities in a stable manner by forming fair and sustainable relationship between landlords and tenants of commercial buildings and by making it possible to promptly settle disputes related to commercial building lease. <Amended by Ordinance No. 7133, May 16, 2019>

Article 2 (Scope of Application) (1) This Ordinance shall apply to commercial buildings referred to in the main sentence of Article 2 (1) of the Commercial Building Lease Protection Act (hereinafter referred to as the "Act") irrespective of the amount of security deposit or rent. <Amended by Ordinance No. 7133, May 16, 2019>
(2) Except as otherwise provided in other statutes, this Ordinance shall apply where any property possessed by an institution which Seoul Metropolitan Government has invested in, contributed for or funded (hereinafter referred to as "property possessed by an affiliated institution") is intended to be provided as leasehold property.

Article 3 (Definitions) The terms used in this Ordinance shall be defined as follows:
1. The term "win-win agreement on the lease of a commercial building" means an agreement concluded between a landlord and a tenant to promote their mutual benefit in the relationship of the lease of a commercial building;
2. The term "long-term carefree commercial building" means a commercial building for which a contract for long-term lease is available for a period of at least five years without excessive increase of rent;
3. Deleted; <by Ordinance No. 7133, May 16, 2019>
4. The term "merchants' organization" means an organization comprised of at least two merchants on the basis of conducting business in a same commercial building or a specific area.

Article 4 (Mayor's Responsibility) (1) The Mayor of the Seoul Metropolitan Government (hereinafter referred to as the "Mayor") shall strive to create an environment in which tenants can perform their business with ease through stabilization of the relationship between landlords and tenants of commercial buildings.
(2) The Mayor shall strive to stabilize rents by taking such measures as conducting a fact-finding survey of relationship of lease in the area where commercial activities have become invigorated and by inducing the increase of rents within a fixed limit.

Article 5 (Recommendation and Support for Concluding Win-Win Agreements) (1) In any of the following cases where commercial activities become invigorated irrespective of the intent of tenants, the Mayor may recommend to conclude win-win agreement on the lease of a commercial building (hereinafter referred to as "win-win agreement") and provide support therefor through budgetary support:
1. Implementation of measures for the protection of shop lessees and shop occupants of public markets under Article 24 of the Special Act on the Development of Traditional Markets and Shopping Districts and measures to protect shop occupants subjected to a market improvement project under Article 49 of the same Act;
2. Projects eligible to receive subsidies under Article 27 (1) of the Special Act on Promotion of and Support for Urban Regeneration;
3. Other regional development projects, etc. which accompany directly or indirectly the element of invigoration of commercial activities through budgetary support provided under related statutes or regulations or municipal ordinances.
(2) The Mayor shall ensure that each win-win agreement referred to in paragraph (1) shall contain all the matters required for the stability of a contract for the lease of a commercial building, such as rent, increase rate of rent, lease period, right to request renewal of the contract, and guarantee of opportunity to take premium back.
(3) The Mayor may take into consideration the project cost and expenses required to support the conclusion of win-win contracts under paragraph (1) within the budget.

Article 6 (Creation of Long-Time Carefree Commercial Buildings) (1) The Mayor may create Seoul Metropolitan Government long-time carefree commercial buildings to enable the tenants to operate their businesses for a long term with ease.
(2) In order to create long-time carefree commercial buildings, the Mayor may provide the following support:
1. Subsidization of expenses for remodeling of the building, etc.;
2. Reduction or exemption of local taxes or charges within the extent prescribed by statutes or regulations, or municipal ordinances;
3. Other administrative support necessary for the creation of long-term carefree commercial buildings.
(3) Where a merchant or a merchants' organization such as a cooperative intends to purchase a commercial building, funds necessary for the purchase may be loaned or subsidized.

Article 7 (Lease Contracts for Property Possessed by Affiliated Institutions) (1) The period of a lease contract for property possessed by an affiliated institution shall be at least two years: Provided, That where the contract period is less than 10 years, the tenant's right to request a renewal of the contract may be exercised only within the extent that the total lease period including the initial lease period does not exceed 10 years. In such cases, the same shall not apply to cases falling under any subparagraph of Article 10 (1) of the Act. <Amended by Ordinance No. 7133, May 16, 2019>
(2) A sublessee who has concluded a sublease contract with the approval of such landlord may exercise a right to request renewal of lease against such landlord subrogating such tenant under paragraph (1). <Amended by Ordinance No. 7133, May 16, 2019>
(3) Either party to a lease contract may request the increase or decrease of rent or security deposit under Article 11 (1) of the Act: Provided, That in cases of the increase or a renewal contract, the amount of increase shall be adjusted by aggregating the producer price indexes announced by the Bank of Korea from the time of the increase of the rent or security deposit or the time of conclusion of the previous contract, whichever is later, until the time of the increase or renewal thereof, but it shall not exceed the rate referred to in Article 11 of the Act.
(4) Other detailed matters related to the lease of property possessed by affiliated institutions shall be governed by the operational regulations of the managing institution of the relevant leasehold property.

Article 8 (Recommendation for Use of Standard Form Contract) In order to protect tenants' rights, the Mayor shall recommend to use a standard lease contract form and a standard premium contract form prepared by the Ministry of Justice and the Ministry of Land, Infrastructure and Transport.

Article 9 (Operation of Counseling Center for Lease of Commercial Buildings) (1) The Mayor may operate the Seoul Metropolitan Government Counseling Center for Lease of Commercial Buildings (hereinafter referred to as the "Counseling Center") to provide counseling services related to the lease of commercial buildings. <Amended by Ordinance No. 7133, May 16, 2019>
(2) The Counseling Center shall provide the following counseling services:
1. Provision of information on the lease of commercial buildings;
2. Matters concerning the preparation of lease contracts for commercial buildings;
3. Matters concerning legal advice, such as relationship of rights and duties related to commercial buildings;
4. Matters concerning the return of a security deposit and the premium at the time a contract is terminated;
5. Other matters related to the lease of commercial buildings.
(3) The Mayor shall take into consideration expenses required for the installation and operation of the Counseling Center within the budget each year.
(4) The Mayor may provide administrative support to the tenants and sublessees of a commercial building for whom it is deemed difficult to manage his or her business to convert a business, to reestablish a business, etc., in the course of providing counseling under paragraph (2). <Amended by Ordinance No. 7133, May 16, 2019>
(5) Where any mediation or intercession is requested in the course of counseling, the Mayor may notify the Dispute Mediation Committee on Lease of Commercial Buildings prescribed in Article 10 thereof and have it conduct mediation.

Article 10 (Dispute Mediation Committee on Lease of Commercial Buildings) (1) In order to deliberate on and mediate the disputes related to the lease of commercial buildings governed by the Act, the Mayor shall establish the Dispute Mediation Committee on Lease of Commercial Buildings of the Seoul Metropolitan Government (hereinafter referred to as the "Mediation Committee). <Amended by Ordinance No. 7133, May 16, 2019>
(2) The Mediation Committee shall deliberate on and mediate the following disputes at the request of a party to the dispute: <Amended by Ordinance No. 7133, May 16, 2019>
1. Matters concerning the increase or decrease of the rent or security deposit;
2. Matters concerning the period of lease;
3. Matters concerning the hand-over of a commercial building and return of security deposit;
4. Matters concerning the execution of maintenance and repair of a commercial building;
5. Matters concerning a premium;
6. Other matters concerning disputes on the lease of commercial buildings.
(3) The Mediation Committee shall have one executive secretary and one clerk to handle the affairs of the Mediation Committee, and a Grade V public official in charge of supervising the affairs of the lease of commercial buildings shall be the executive secretary and a Grade VI public official in charge of settling disputes on the lease of commercial buildings shall be the clerk. <Amended by Ordinance No. 7133, May 16, 2019>

Article 11 (Composition of the Mediation Committee) (1) The Mediation Committee shall be comprised of not more than 30 members including one chairperson and a particular gender shall not exceed 6/10 of the number of members commissioned in accordance with the main sentence of Article 21 (2) of the Framework Act on Gender Equality: Provided, That the foregoing shall not apply where any unavoidable cause, such as lack of professional workforce of a particular gender in the relevant field, is deemed to exist, and the gender equality working committee adopts a resolution thereon in accordance with the proviso to the same paragraph. <Amended by Ordinance No. 6851, Mar. 22, 2018>
(2) Members of the Mediation Committee shall be the following persons, having extensive knowledge about, and experience in, the lease of commercial buildings. In such cases, at least one person referred to in each of subparagraphs 1 through 4 shall be commissioned, and at least 2/5 of the members shall be those falling under subparagraph 2:
1. A person who has majored in law, economics, or real estate, and worked at a university or college, or an accredited research institute as at least an associate professor or equivalent thereto;
2. A person with at least six-years' experience as a judge, public prosecutor or attorney-at-law;
3. A person with at least six-years' experience in the affairs related to the lease of commercial buildings as a certified public appraiser, certified public accountant, certified judicial scrivener, or licensed real estate agent;
4. A person with at least six-years' experience in counseling on disputes over the lease of commercial buildings at a social welfare foundation established under the Social Welfare Services Act or any other non-profit corporation;
5. A public official of Grade IV or higher, in charge of the affairs related to the lease of commercial buildings;
6. Any other person having extensive knowledge about, and experience in the lease of commercial buildings.
(3) The chairperson of the Mediation Committee shall be commissioned by the Mayor from among the members thereof. Where the chairperson is unable to perform his or her duties due to any unavoidable cause, a person elected from among and by the members of the Mediation Committee shall act on behalf of the chairperson.
(4) The term of office of a member shall be three years and the member may consecutively serve, and the term of office of a member elected to fill a vacancy shall be the remaining term of his or her predecessor.
(5) Matters necessary for the composition, operation, etc. of the Mediation Committee shall be prescribed by rule of the Seoul Metropolitan Government.
[This Article Wholly Amended by Ordinance No. 7133, May 16, 2019]

Article 12 (Composition and Operation of Mediation Division) (1) To efficiently settle disputes, the Mediation Committee may establish a mediation division comprised of three members of the Mediation Committee.
(2) A mediation division shall have at least one person falling under Article 11 (2) 2, and the chairperson of the Mediation Committee shall appoint the head of the mediation division from among the members of the mediation division.
(3) The resolution by a mediation division shall require the attendance of a majority of all incumbent members, including the head of the mediation division and the affirmative vote of a majority of those present.
(4) Resolutions passed by a mediation division under paragraph (3) shall be deemed passed by the Mediation Committee.
[This Article Wholly Amended by Ordinance No. 7133, May 16, 2019]

Article 13 (Grounds for Disqualification as Member of Mediation Committee) None of the persons referred to in the subparagraphs of Article 33 of the State Public Officials Act, may be a member of the Mediation Committee.
[This Article Wholly Amended by Ordinance No. 7133, May 16, 2019]

Article 14 (Guarantee of Status of Member of Mediation Committee) (1) A member of the Mediation Committee shall perform his or her duties independently and shall not be bound by any instruction with respect to the examination of and judgment on disputes over the lease of commercial buildings.
(2) No member of the Mediation Committee shall be removed or dismissed from office against his or her will unless he or she falls under any of the following cases:
1. Where he or she falls under Article 13;
2. Where he or she becomes unable to perform his or her duties due to a long-term mental or physical debility.
[This Article Wholly Amended by Ordinance No. 7133, May 16, 2019]

Article 15 (Disqualification, etc. of Member of Mediation Committee) (1) A member of the Mediation Committee shall be disqualified from performing his or her duties in any of the following cases:
1. Where the member of the Mediation Committee or his or her current or former spouse becomes a party to the dispute;
2. Where the member of the Mediation Committee is a current or former relative of a party to the dispute;
3. Where the member of the Mediation Committee has made a statement, or provided appraisal services or legal advice, with respect to the dispute;
4. Where the member of the Mediation Committee is or was involved in the dispute as an agent of a party to the dispute.
(2) Where any ground for disqualification arises with respect to a member of the Mediation Committee in charge of a case, the Mediation Committee shall, ex officio or upon request of a party, make a decision to disqualify the member of the Mediation Committee.
(3) If any ground arises making it impracticable to expect the impartial performance of duties of a member of the Mediation Committee in charge of a case, a party to the case may file a request to challenge the member thereof with the Mediation Committee.
(4) A decision on an application for challenge shall be made by the Mediation Committee, and neither the relevant member of the Mediation Committee nor the both parties shall file any objection to such decision.
(5) Where an application for challenge is filed under paragraph (3), a Mediation Committee shall suspend mediation until the decision is made on the application.
(6) If paragraph (1) or (3) applies to a member of the Mediation Committee, the member of the Mediation Committee may refrain from the performance of his or her duties with respect to the relevant dispute, without permission from the Mediation Committee.
[This Article Wholly Amended by Ordinance No. 7133, May 16, 2019]

Article 16 (Applications for Mediation and Process Therefor) (1) An application for mediation may be filed in writing or verbally.
(2) In receipt of an application for mediation, the chairperson of the Mediation Committee shall serve the fact thereof by means of mail, etc.
(3) The mediation process shall commence when the respondent served with an application for mediation under paragraph (2) notifies the Mediation Committee of his or her intention to accede to the mediation by phone or mail.
[This Article Wholly Amended by Ordinance No. 7133, May 16, 2019]

Article 17 (Effect of Mediation) In any of the following cases, the chairperson of the Mediation Committee shall reject an application. In such cases, he or she shall give notice of the grounds for rejection to the applicant:
1. Where a lawsuit over matters under dispute has been filed with the court, or where a lawsuit has been filed after an application for mediation was submitted;
2. Where an application for mediation has been submitted under the Judicial mediation of Civil Disputes Act with respect to matters under dispute; or where an application for mediation has been submitted under the same Act after an application for mediation was submitted;
3. Where an application for mediation has been submitted to the Mediation Committee under this Act with respect to matters under dispute; or where the mediation has been completed after an application for mediation was submitted;
4. Where it is evident that an application for mediation, itself, is unrelated to a dispute over the lease of a commercial building;
5. Where the respondent gives notice of his or her intention not to participate in the mediation process;
6. Where the applicant fails to respond to an inquiry without good cause or fails to comply with the request for attendance on two or more occasions.
[This Article Wholly Amended by Ordinance No. 7133, May 16, 2019]

Article 18 (Processing Period) (1) The Mediation Committee shall complete mediating a dispute within 60 days from the date of receipt of an application for mediation: Provided, That such period may be extended by up to 30 days after resolution by the Mediation Committee with compelling reasons.(2) Where the Mediation Committee extends the period under the proviso to paragraph (1), it shall notify the parties of the grounds for the extension and other matters related to extension.[This Article Newly Inserted by Ordinance No. 7133, May 16, 2019]

Article 19 (Inspections) (1) The Mediation Committee shall take a lease contract between the parties to the dispute as a basis for mediation and, where deemed necessary for mediation, may request an applicant for, a respondent of, or an interested party to the dispute, or a witness, to appear and make a comment or statement in the Committee or to submit materials, etc. necessary for the mediation.
(2) Where deemed necessary for mediation, the Mediation Committee may authorize a member of the Mediation Committee or a competent public official to gather materials through on-site inspections, etc. In such cases, the member of the Mediation Committee or the competent public official shall carry a certificate indicating his or her authority and present it to the relevant persons. Where such materials are used for mediation, the Mediation Committee shall hear opinions of the parties to the dispute.
(3) Where deemed necessary for mediation, the chairperson of the Mediation Committee may request materials for lease contracts and transactions, etc. to use reference for the mediation affairs.
[This Article Newly Inserted by Ordinance No. 7133, May 16, 2019]

Article 20 (Decision without Mediation) (1) Where a dispute is deemed improper for mediation, considering the nature of the dispute, or a party is deemed to have filed an application for mediation for an improper purpose, the Mediation Committee need not mediate.(2) When the Mediation Committee decides not to mediate under paragraph (1), it shall give notice of the decision to the parties to the dispute.[This Article Newly Inserted by Ordinance No. 7133, May 16, 2019]

Article 21 (Completion of Mediation) (1) Upon deciding a proposal for mediation, a Mediation Committee shall give notice of such proposal to each party without delay.
(2) Where a party in receipt of notice of the proposal for mediation given under paragraph (1), fails to express its intention in writing, etc. to accept within seven day of receipt of the notice, the party shall be deemed to have rejected the mediation.(3) Where each party signs or puts his or her name and seal on a proposal for mediation under paragraph (2), agreement shall be deemed reached as stated in the proposal for mediation.
[This Article Newly Inserted by Ordinance No. 7133, May 16, 2019]

Article 22 (Duty to Maintain Confidentiality) No current or former member of the Mediation Committee or no person involved in the mediation affairs shall divulge any confidential information he or she becomes aware of in the course of performing his or her duties, or use such information for any purpose other than for performing his or her duties.
[This Article Newly Inserted by Ordinance No. 7133, May 16, 2019]

Article 23 (Application Mutatis Mutandis of other Acts) Except as otherwise provided in this Ordinance, the Judicial mediation of Civil Disputes Act shall apply mutatis mutandis to the operation of the Mediation Committee and the mediation process.
[This Article Newly Inserted by Ordinance No. 7133, May 16, 2019]

Article 24 (Allowances and Travel Expenses) Allowances, travel expenses, etc. may be paid to the members who attend meetings of the Mediation Committee, the relevant experts, etc. within the budget in accordance with the Seoul Metropolitan Government Ordinance on the Payment of Committee Allowances and Travel Expenses: Provided That, this shall not apply where a public official attends a meeting in direct connection with his or her duty.
[This Article Newly Inserted by Ordinance No. 7133, May 16, 2019]

Article 25 (Legal Fiction as Public Official in Application of Penalty Provisions) Members of the Mediation Committee who are not public officials, shall be deemed public officials for the purposes of applying Articles 127 and 129 through 132 of the Criminal Act, in accordance with Article 22 of the Act.[This Article Newly Inserted by Ordinance No. 7133, May 16, 2019]

Article 26 (Formulation of Standards for Dispute Mediation) (1) The Mayor may formulate the standards for dispute mediation by each matter requiring mediation under Article 10 (2) and conduct research for such purpose.
(2) In order to collect information on the increase or decrease of rents of commercial buildings, appraisal of premiums, etc. necessary for the dispute mediation, the Mayor may conduct a fact-finding survey of the lease of commercial buildings every two years and announce the result thereof.

Article 27 (Enforcement Rule) Matters necessary for the enforcement of this Ordinance shall be prescribed by rule of the Seoul Metropolitan Government.

ADDENDA
Article 1 (Enforcement Date)
This Ordinance shall enter into force on the date of its promulgation.
Article 2 (Applicability)
(1) Notwithstanding Article 1, the Mediation Committee may conduct mediation of disputes occurred before this Ordinance enters into force.
(2) The provisions of Article 7 regarding lease contracts for property possessed by affiliated institutions shall apply beginning with a contract concluded after this Ordinance enters into force.
ADDENDUM <Ordinance No. 6851, Mar. 22, 2018>
This Ordinance shall enter into force on the date of its promulgation.
ADDENDA <Ordinance No. 7044, Mar. 28, 2019>
Article 1 (Enforcement Date)
This Ordinance shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Ordinance No. 7133, May 16, 2019>
Article 1 (Enforcement Date)
This Ordinance shall enter into force on the date of its promulgation.
Article 2 (Applicability to Period of Request for Contract Renewal)
The amended provisions of Article 7 (1) shall begin to apply to the first lease contract signed or renewed on or after the enforcement date (referring to October 16, 2018) of the Commercial Building Lease Protection Act (Act No. 15791).
ADDENDUM <Ordinance No. 7423, Dec. 31, 2019>
This Ordinance shall enter into force on the date of its promulgation.
ADDENDUM <Ordinance No. 7541, Mar. 26, 2020>
This Ordinance shall enter into force on the date of its promulgation.