(1) Where the lessee (including corporations referred to in Article 3(2) and (3); hereinafter the same shall apply) files an application for auction of the leased house based on the final and conclusive judgment on the lawsuit demanding the repayment of deposit or execution title corresponding thereto, the fulfillment or provision of opposite obligations shall not be the requirements for the commencement of enforcement, notwithstanding Article 41 of the Civil Execution Act concerning the requirements for the commencement of enforcement. <Amended on Aug. 13, 2013>
(2) Any lessee who has met the requirements for opposing power prescribed in Article 3(1), (2), or (3), and obtained the fixed date on the lease contract document (referring to lease contract documents between a corporation and a lessor in cases falling under Article 3(2) and (3)), shall be entitled to receive the repayment of the deposit from the converted price of the leased house (including the site thereof), in preference to any junior creditors and other creditors, at the time of an auction conducted under the Civil Execution Act and a public sale under the National Tax Collection Act. <Amended on Aug. 13, 2013>
(3) No lessee shall be permitted to receive the deposit under paragraph (2) without delivering the leased house to the transferee thereof.
(4) Any interested person who has an objection to the order in the preferential repayment and the deposit as provided for in paragraph (2) or (7) may file an objection with the court of auction or the agency which has ordered the disposition for arrears. <Amended on Aug. 13, 2013>
(5) Articles 152 through 161 of the Civil Execution Act shall apply mutatis mutandis where an objection is filed with the court of auction under paragraph (4).
(6) If the interested person establishes that he or she has instituted a lawsuit against the lessee or financial institution, etc. that succeeded the preferential repayment right pursuant to paragraph (7) within seven days after filing an objection, the agency which has ordered the disposition for arrears shall, upon receipt of the objection filed under paragraph (4), withhold the repayment of the deposit to the lessee or financial institutions, etc. that succeeded the preferential repayment right pursuant to paragraph (7) to the extent that the objection is filed, until the lawsuit is closed, and distribute the balance. In such cases, the withheld deposit shall be distributed in accordance with the result of the lawsuit. <Amended on Aug. 13, 2013>
(7) Where any of the following financial institutions, etc. acquires by contract the claim for repayment of deposit of a lessee who has acquired the preferential repayment right pursuant to paragraph (2), Article 3-3(5), or 3-4(1), it shall succeed the preferential repayment right within the limits of the amount it has acquired: <Added on Aug. 13, 2013; Jan. 6, 2015; May 29, 2016>
1. A bank established under the Banking Act;
2. The Industrial Bank of Korea established under the Industrial Bank of Korea Act;
3. The Korea Development Bank established under the Korea Development Bank Act;
4. The NongHyup Bank established under the Agricultural Cooperatives Act;
5. The SuHyup Bank established under the Fisheries Cooperatives Act;
6. A postal service agency established under the Postal Savings and Insurance Act;
7. The Korea Housing Finance Corporation established under the Korea Housing Finance Corporation Act;
8. An insurance company that holds a license for surety insurance referred to in Article 4(1)2d of the Insurance Business Act as the type of insurance business;
9. The Korea Housing and Urban Guarantee Corporation established under the Housing and Urban Fund Act;
10. Any other institution prescribed by Presidential Decree, which is equivalent to those referred to in subparagraphs 1 through 9.
(8) No financial institutions, etc., which have succeeded the preferential repayment right pursuant to paragraph (7) (hereinafter referred to as "financial institutions, etc."), shall exercise the preferential repayment right in any of the following circumstances: <Added on Aug. 13, 2013>
1. Where the lessee has lost the requirements for opposing power prescribed in Article 3 (1), (2), or (3);
2. Where the lease registration prescribed in Article 3-3(5) is canceled;
3. Where the registration of lease prescribed in Article 621 of the Civil Act is canceled.
(9) No financial institutions, etc. shall terminate any lease on behalf, or in subrogation of, the lessee to exercise the preferential repayment right. <Added on Aug. 13, 2013>[This Article Wholly Amended on Mar. 21, 2008]