[Favorable Judgment Case of a Suseong-gu Attorney] Suseong-gu Attorney Recovers a Deposit of 350 Million Won

The client in this case entered into a lease contract with a deposit of 350 million won and a lease term of two years, and in accordance with the contract paid the down payment and the balance to the defendant.

The lease term in this case lapsed and ended, and the client accordingly requested that the defendant return the deposit, but the defendant only said to wait.

After six months had passed without recovering the deposit, the client came to the Suseong-gu attorney to respond to the defendant with the assistance of a specialized attorney.

■ Return of the Leased House and Return of the Lease Deposit

▶ When a lease terminates, the lessee assumes obligations such as the duty to return the leased house in accordance with the terms of the lease contract, and the lessor assumes the duty to return the lease deposit. (“Civil Act,” Article 536)

▶ Where a lessee terminates a lease contract midway, it is not easy to recover the lease deposit, and where the lessor does not return the deposit even though the lease has terminated, the lessee should not move out until the deposit is returned, in order to maintain opposing power and the right to preferential reimbursement. (Supreme Court Judgment of March 13, 2008, 2007Da54023)

▶ Even when a lease terminates, the lease relationship is deemed to continue until the lessee recovers the deposit, so the lessor and the lessee retain their rights and obligations under the lease contract. (“Housing Lease Protection Act,” Article 4 (2))

▶ The lessee bears the obligation to pay rent while also holding a defense of simultaneous performance to refuse delivery of the leased house until the deposit is returned, and the lessor holds the right to claim rent while also holding a defense of simultaneous performance to refuse payment of the deposit until the leased house is delivered. However, even if the lessee does not perform the counter-obligation of delivering the leased house, the lessee may commence compulsory execution once an enforceable title is obtained. (“Housing Lease Protection Act,” Article 3-2 (1) and “Civil Execution Act,” Article 41)

■ The Suseong-gu attorney emphasized that, because the client did not recover the deposit, the client took out a loan of 350 million won to pay the interim and balance payments on a new apartment, that monthly loan interest of approximately 4.35% on the principal was accruing as a result, and that the client was additionally bearing management fees of about 250,000 to 300,000 won for the property in this case.

■ The Suseong-gu attorney emphasized that the client had requested the return of the deposit for six months, but the defendant only said to wait and did not accept the client's request.

■ The Suseong-gu attorney emphasized that, in light of the defendant's continued delay in returning the deposit, voluntary performance could not be expected even when the time for future performance arrived.

Accepting the Suseong-gu attorney's opinion, the court ruled “The defendant shall pay the plaintiff 350,000,000 won. The litigation costs shall be borne by the defendant.”

Through the assistance of the Suseong-gu attorney, the client was able to succeed in recovering the deposit.

If, like the case above, you are at a loss because you have not recovered a lease deposit, you may come to a Suseong-gu attorney at any time.

A Suseong-gu attorney with numerous resolved cases and accumulated know-how will work alongside you on your case.