How Key Money Recovery Works in Commercial Leases
Lease key money (gwonlligeum) is a lump sum paid by a business tenant to a previous tenant or property owner to acquire the right to occupy a commercial space, along with its customer base, location value, and business goodwill. Unlike a jeonse deposit, key money is not refunded by the landlord — it is typically recovered by finding a new incoming tenant who agrees to pay for these intangible assets.
Under Korean commercial lease law (Korean Commercial Building Lease Protection Act), tenants with at least 6 months remaining on their lease have the right to seek a new tenant and transfer the key money. If the landlord unjustly refuses or interferes with this process, the tenant may claim compensation equal to the lost key money. This calculator estimates the recoverable amount based on your remaining lease time.
Frequently Asked Questions
If your lease expires without a new tenant, you lose the right to transfer key money. It's important to start the process early — at least 3–6 months before expiry — to maximize recovery.
Not entirely. The law protects your right to seek recovery, but the actual amount depends on market conditions and the new tenant's willingness to pay. Legal protection only applies if the landlord unjustly blocks the transfer.