Extending a lump-sum deposit lease contract might or might not require rewriting the lease agreement, depending on whether the lump-sum deposit remains unchanged or if there are alterations. If the lump-sum deposit remains the same, rewriting the agreement is unnecessary. The initial contract's effective date remains valid, eliminating the need for a new confirmation date.
If the lump-sum deposit amount changes, it can be divided into scenarios where it decreases or increases compared to the original amount. If the deposit decreases, drafting a new agreement isn't mandatory. However, many opt to include the reduced deposit amount in the agreement for clarity, typically noting the extension period and altered deposit, and both the landlord and tenant's signatures are required.
In such cases, an updated effective date isn't necessary. Many individuals might experience situations where the lump-sum deposit increases. In this case, an amended agreement reflecting the altered amount is required. For example, if the deposit increases from 100 million KRW to 120 million KRW, an amendment is necessary for the increased 20 million KRW.
While the initial effective date might have been set for 100 million KRW, a separate effective date for the added 20 million KRW is needed. Consequently, when extending a lump-sum deposit lease contract with an increased deposit, it's advisable to thoroughly review documents like property ownership records and building registers, comparing any changes that might have occurred since the initial contract.
Implicit renewal implies the contract term naturally extends. For landlords, intentions to renew or end the lease term must be communicated to the tenant between 6 and 2 months before the contract's expiration. Similarly, tenants need to communicate their intentions to the landlord at least 2 months before expiration. Failure to do so implies both parties agree to a 2-year extension under the existing terms if the communication period has passed.