In Korea, premium for occupancy is widespread, while a recent verdict in Korea has it that the tenant cannot claim it from the landlord unless its amount has been specified in the lease contract. In this paper, I analyzed legal aspect of premium for occupancy to find out discrepancy between business practice and legal characteristics of it. Also international comparison underscores unique status of premium for occupancy in Korea.
Analyzing survey result, I showed that the most determinant factor in level of premium is profit level of rented space. The tenants tend to find premium for occupancy necessary in order to facilitate economic activity, while they feel it desirable to make premium redemption guaranteed. This implies unstability of premium transaction for the rights to take over the rented space.
Economic model was utilized to investigate the effect of guarantee for premium. Contrast to the common perception, it was revealed that the level of investment could be less with full guarantee for premium, if risk attitude of tenant along with riskiness of business was considered.
권리금에 대한 법경제학적 접근(Economic approach to premium for occupancy)
|Series Title; No||정책연구시리즈 / 2011-04|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Macroeconomics|
|Holding||KDI; KDI School of Public Policy and Management|