Seoul Metropolitan Council Rental Deposit Protection Amendment to Alter Tenant Costs in 25 Districts

The Seoul Metropolitan Council passed the Rental Deposit Protection Amendment on 7 July 2026. It shortens the maximum period landlords may hold deposits after lease end from 30 days to 14 days and sets a 5 percent cap on deductions for minor repairs. The change applies to all standard jeonse and wolse contracts in the city’s 25 districts.

Seoul’s rental market has faced repeated delays in deposit returns during the past two years, according to filings with the Seoul Housing and Urban Guarantee Corporation. The amendment responds to those records and takes effect for contracts renewed or signed after 1 October. Local government offices in each district will handle enforcement through existing mediation centres.

Direct Effects on Household Budgets

Residents in districts such as Nowon, Gwanak and Yangcheon will see faster access to funds when moving. A typical two-year jeonse deposit of 200 million won must now be returned within two weeks, reducing reliance on short-term loans that currently carry average interest rates of 6.8 percent. Families with school-age children in Songpa and Seocho can plan moves around the academic calendar without waiting a full month for cash.

The legislation states that disputes over repair deductions will route through district-level dispute resolution panels within seven days. Tenants who previously paid out of pocket for contested items can file claims with documented photos and receipts. Policy analysts note that the 5 percent deduction limit applies only to items listed in the move-in inspection report.

Next Steps for Implementation

The Seoul Metropolitan Government will publish updated contract templates by 15 August and begin training sessions for real-estate agents in each district office. Landlords must update their standard forms to reflect the new timelines, and non-compliant contracts will face administrative fines starting at 2 million won. Residents can check the status of their filings through the city’s online portal once the system update is complete in September.

City budget documents for fiscal year 2026 allocate 8.4 billion won for expanded mediation staff and digital tracking tools. The government projects that 92 percent of deposit returns will clear within the new 14-day window once the panels operate at full capacity. Further adjustments will be reviewed after the first six months of data collection from district offices.