Residential tenant's demand for renewal of a lease and termination of the renewed lease - Focused on Supreme Court Decision 2023Da258672 Decided January 11, 2024 -

The subject judgment concluded that if a notice to terminate a renewed contract based on a residential tenant's demand of a lease for renewal reaches the landlord before the commencement of the renewed contract's rental period, the effective date of the termination is three months after the notice of termination. To examine the validity of the ruling, the court first examined the provisions relating to the right to renew and termination under the Civil Code and the Residential Tenancy Protection Act, and also examined the validity of the lower court's ruling that the tenant's right to terminate is restricted if there is an agreement between the landlord and the tenant regarding the rental period of the renewed contract. Regarding the effective date of the renewal, the tenant's right to renew the contract is in the nature of a right of formation, which means that the renewal is effective when the notice of intention to renew reaches the landlord. However, the time at which the renewal becomes effective and the time at which the renewal period begins to run should be determined differently, with the time at which the renewal period begins to run being the day after the expiration of the term of the original lease. In addition, if the tenant gives notice of termination of the renewal and the notice reaches the landlord before the start of the renewal term, it is reasonable to assume that the termination is not effective until three months after the start of the renewal term. If the termination is effective three months after the tenant's notice of termination reaches the landlord, it is contrary to the plain meaning of the provisions of the Residential Tenancy Protection Act, unduly harsh on the landlord, and leaves room for other problems in practice. In conclusion, while the target judgment aims to achieve the purpose of the Housing Lease Protection Act, which guarantees the tenant's right to live, it is difficult to fully agree with the conclusion, and protecting the interests and trust of not only tenants but also landlords should not be overlooked.