The meaning of "the first lease term" under Article 10 (2) of the Commercial Building Lease Protection Act;

Article 10(2) of the Commercial Building Lease Protection Act

Plaintiff

Defendant

Seoul Central District Court Decision 2005Na10455 Decided November 25, 2005

The appeal is dismissed. The costs of appeal are assessed against the defendant.

The grounds of appeal are examined.

Article 10(2) of the Commercial Building Lease Protection Act provides that "a lessee's right to request the renewal of a contract may be exercised only within the extent that the whole period of the lease, including the initial period of the lease, does not exceed five years." In light of the language and text of the above Act and the legislative intent that recognized the lessee's right to request the renewal of the contract within the extent of five years of the total period of the lease, the term "the initial lease period" means a lease contract concluded after the above Act enters into force, or a renewed lease contract after the enforcement of the above Act, which was concluded before and after the above Act enters into force.

The court below held that the defendant cannot demand the renewal of the contract to the plaintiff any longer at the time five years have elapsed since the date of renewal of the lease contract which was renewed after the enforcement of the above Act, and that the lease contract of this case was lawfully renewed by the exercise of the right to request renewal of the contract which was executed within the above period. Since the defendant continued to occupy and use the real estate of this case for the first time in around 1993, the defendant cannot demand renewal of the contract to the plaintiff any longer at the time when five years have passed since the above first lease date was just and there is no error in the misapprehension of legal principles as to the omission of judgment or the lease of commercial buildings, as otherwise alleged in the ground of appeal.

Therefore, the appeal is dismissed, and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Yang Sung-tae (Presiding Justice)