Supreme Court rules on jeonse useful expense claims

The Supreme Court dismissed an appeal concerning the right of jeonse holders to claim reimbursement for useful expenses incurred during their tenancy.

The dispute arose after a local government, having received state subsidies to fully remodel a building subject to a jeonse lease, sought reimbursement from the owners upon the lease's expiration. The core question was whether the holder needed to satisfy requirements under both Article 310 and Article 741 of the Civil Code.

Article 310 stipulates that a jeonse holder may request reimbursement for improvement expenses only to the extent that the increase in value currently exists, with the amount determined by the owner's choice between expenditure cost or increased value. The court characterized this provision as a special regulation regarding unjust enrichment.

Consequently, the court determined that a holder exercising this right need only fulfill Article 310 requirements, not the conditions defined in Article 741 governing general unjust enrichment claims. The decision confirms that even when renovation costs are covered by government subsidies, the right to claim reimbursement remains valid provided Article 310 conditions are met.

In its ruling on case 2026Da200201 delivered May 8, the court stated that because Article 310 acts as a special rule, claimants are not required to prove the separate elements of general unjust enrichment.