How to Draft a Premium (Gwonrigeum) Contract — Separating Facility, Business and Location Premiums and Essential Clauses

Procedure

1. 1. Check the rights on the property before the contract

   Use the certified copy of the property register to check for a maximum-amount mortgage (geun-jeodang) or provisional attachment, and the building register to check whether the building is recorded as a building in violation. If it is a building in violation, a later business report may be blocked, and you could pay the premium and still be unable to operate.

2. 2. List each type of premium separately

   Distinguish the location premium (the site), the facility premium (fixtures and interior) and the business premium (know-how and business contacts), and state the amount and what each one covers. Make a list of the facilities and equipment being transferred and attach it to the contract.

3. 3. Set out the essential clauses

   Include the scope of the premium and the payment timing, the conditions for refund if the contract is cancelled, the performance guarantee, and the business period and the conditions for maintaining the business rights. Whether the lease is succeeded to or a new lease is signed must be set clearly and separately from the premium contract.

4. 4. Confirm the lessor's cooperation

   Article 10-4 of the Commercial Building Lease Protection Act provides that a lessor must not obstruct a lessee from recovering the premium. Obtaining the lessor's commitment on the terms of the new lease in advance reduces the chance of a dispute.

Required documents

• No submission form (a contract between the parties with no filing to a government office; use of the standard premium contract form of the Ministry of Land, Infrastructure and Transport is recommended, Commercial Building Lease Protection Act, Article 10-6)
• Premium contract (transferor and transferee)
• List of facilities and equipment transferred and handover schedule
• Certified copy of the property register for the building (deunggibu deungbon) and building register (geonchukmul daejang)
• Existing lease contract, and copies of the business report certificate and the business registration certificate
• Lessor's written commitment (terms of the new lease, if applicable)

Fees

There is no government fee. Contract drafting services in the industry are generally priced at several hundred thousand won and vary with the size of the premium and the scope of organizing the transfer list. We will advise after a consultation, based on the case.

See fees and official charges for this service →

Legal basis and review date

• Commercial Building Lease Protection Act, Article 10-3
• Commercial Building Lease Protection Act, Article 10-4
• Commercial Building Lease Protection Act, Article 10-6
• Licensed Administrative Agent Act, Article 2

Checked against the statutes on 2026-09-30

Statutes and public notices change, so each case needs to be checked individually. Statute titles are given in English for reference. The Korean statutes are the authoritative text.

Check these first

• The premium contract and the lease contract are separate. Decide separately whether the lease is succeeded to.
• If the building is a building in violation, the business report may be blocked, so check the building register before paying the down payment.

Frequently asked questions